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90_HB0075 New Act 10 ILCS 5/9-25.5 new 10 ILCS 5/9-25.10 new 30 ILCS 105/5.449 new 35 ILCS 5/507R new 35 ILCS 5/509 from Ch. 120, par. 5-509 35 ILCS 5/510 from Ch. 120, par. 5-510 Creates the Clean Election Act and amends the Election Code, the State Finance Act, and the Illinois Income Tax Act. Establishes a voluntary campaign financing program for candidates and nominees for constitutional offices and the General Assembly beginning in 2000. Provides for a Governor-appointed Clean Election Commission to administer the program under which candidates agree to accept no contributions and make no expenditures other than from moneys from a Clean Election Fund distributed in amounts based on average expenditures in previous elections. Establishes qualifications for and restrictions upon participation. Funds the Clean Election Fund through an income tax checkoff, appropriations, and contributions. Awards matching funds to candidates and permits candidates to accept other contributions under certain circumstances. Makes violation a Class A misdemeanor and permits the commission to impose fines. Limits campaign contributions to candidates for constitutional offices and the General Assembly to $1,000 per entity and subjects those candidates to certain reporting requirements. LRB9000512MWpcA LRB9000512MWpcA 1 AN ACT concerning campaign financing. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 1. Short title. This Act may be cited as the 5 Clean Election Act. 6 Section 5. Definitions. As used in this Act: 7 "Certified candidate" means a candidate running for a 8 constitutional office or the General Assembly who chooses to 9 participate in this Act and who is certified as a Clean 10 Election candidate under Section 40. 11 "Commission" means the Clean Election Commission 12 established by this Act. 13 "Constitutional office" means the office of Governor, 14 Lieutenant Governor, Attorney General, Secretary of State, 15 Comptroller, and Treasurer. 16 "Contribution" is defined as in Article 9 of the Election 17 Code. 18 "Fund" means the Clean Election Fund established by this 19 Act. 20 "Nonparticipating candidate" means a candidate running 21 for a constitutional office or the General Assembly who does 22 not choose to participate in this Act and who is not seeking 23 to be certified as a Clean Election candidate under Section 24 40. 25 "Participating candidate" means a candidate running for a 26 constitutional office or the General Assembly who is seeking 27 to be certified as a Clean Election candidate under Section 28 40. 29 "Qualifying contribution" means a donation: 30 (1) of $20 in the form of a check or a money order 31 payable to the Clean Election Fund in support of a -2- LRB9000512MWpcA 1 candidate; 2 (2) made during the designated qualifying period 3 and obtained with the knowledge and approval of the 4 candidate; and 5 (3) acknowledged by a written receipt that 6 identifies the name and address of the donor on forms 7 provided by the commission. 8 "Qualifying period" means the period beginning with the 9 circulation of general primary candidates' nominating 10 petitions and ending with the general primary. 11 "Seed money contribution" means a contribution of no more 12 than $1,000 per individual made to a candidate, including 13 contributions from the candidate and his or her family. 14 Seed money contributions may be collected and spent 15 subsequent to becoming a candidate as defined by Article 9 of 16 the Election Code and throughout the qualifying period. Seed 17 money contributions may not be collected or spent after 18 certification as a Clean Election candidate. Seed money 19 contributions are for the primary purpose of enabling 20 participating candidates to collect qualifying contributions 21 and shall be reported according to procedures developed by 22 the commission. 23 Section 10. Purpose. This Act provides an alternative 24 campaign financing option available to candidates running for 25 a constitutional office or the General Assembly. This Act is 26 available to candidates for elections to be held in 2000 and 27 thereafter. The commission shall administer this Act and the 28 Clean Election Fund. Candidates participating in this Act 29 must also comply with all other applicable election and 30 campaign laws and rules. 31 Section 15. Commission. The Clean Election Commission 32 shall consist of 5 members appointed by the Governor with the -3- LRB9000512MWpcA 1 advice and consent of the Senate. Members shall be selected 2 from nominations submitted by the public during a nominating 3 period established jointly by the Governor, the President and 4 Minority Leader of the Senate, and the Speaker and Minority 5 Leader of the House of Representatives. No more than 2 6 members may be of the same political party. 7 Initial commission members shall serve terms as follows: 8 2 for one-year terms, 2 for 2-year terms, and one for a 9 3-year term as determined by lot. Subsequent members shall 10 serve 4-year terms. Members may be reappointed but shall 11 serve no more than 2 consecutive terms. A vacancy shall be 12 filled by appointment of the Governor for the remainder of 13 the unexpired term. 14 The commission shall select a chairperson from among its 15 number to serve a 2-year term. Members shall receive no 16 compensation but shall be reimbursed for expenses incurred in 17 the performance of their duties. 18 Section 20. The Clean Election Fund. 19 (a) The Clean Election Fund is established to finance 20 the election campaigns of certified Clean Election candidates 21 running for a constitutional office or the General Assembly 22 and to pay administrative and enforcement costs of the 23 commission related to this Act. The fund is created outside 24 the State treasury, and any interest generated by the fund is 25 credited to the fund. The commission shall administer the 26 fund. 27 (b) Money received from the following sources must be 28 deposited into the fund: 29 (1) Qualifying contributions; 30 (2) Appropriations; 31 (3) Transfers from the Clean Election Checkoff 32 Fund; 33 (4) Seed money collected by a candidate remaining -4- LRB9000512MWpcA 1 unspent upon certification as a Clean Election candidate; 2 (5) Clean Election Fund moneys distributed to Clean 3 Election candidates remaining unspent after a candidate's 4 general primary loss and after the general election; 5 (6) Other unspent Clean Election Fund moneys 6 distributed to any Clean Election candidate who does not 7 remain a candidate throughout a general primary or 8 general election cycle; 9 (7) Voluntary donations made directly to the fund; 10 and 11 (8) Fines collected under this Act. 12 (c) By September 1 before each general election year, 13 the commission shall publish an estimate of moneys in the 14 fund available for distribution to certified candidates 15 during the upcoming year's general primary and general 16 election. 17 Section 25. Terms of participation. 18 (a) An individual choosing to participate in this Act 19 shall first file with the commission a declaration of intent 20 to participate as a candidate for a stated office. The 21 declaration of intent must be filed with the commission prior 22 to or during the qualifying period, except as provided by 23 commission rule adopted under Section 85, according to forms 24 and procedures developed by the commission. A candidate 25 choosing to participate must submit a declaration of intent 26 prior to collecting any qualifying contributions under this 27 Act. 28 A candidate who files a declaration of intent shall swear 29 or affirm that the candidate has complied with and will 30 continue to comply with this Act's contribution and 31 expenditure limits and will comply with all other 32 requirements set forth in this Act. 33 (b) Subsequent to becoming a candidate as defined in -5- LRB9000512MWpcA 1 Article 9 of the Election Code and prior to certification, 2 participating candidates must not accept contributions, 3 except for seed money contributions. A participating 4 candidate must limit his or her seed money contributions to 5 $1,000 per contributor. 6 Section 30. Qualifying contributions. Participating 7 candidates must obtain qualifying contributions as follows: 8 (1) For a candidate for a constitutional office, at 9 least 2,500 verified registered voters must have 10 supported the candidacy by providing a qualifying 11 contribution to that candidate. 12 (2) For a candidate for the Senate, at least 150 13 verified registered voters from the candidate's district 14 must have supported the candidacy by providing a 15 qualifying contribution to that candidate. 16 (3) For a candidate for the House of 17 Representatives, at least 50 verified registered voters 18 from the candidate's district must have supported the 19 candidacy by providing a qualifying contribution to that 20 candidate. 21 No payment, gift, or anything of value shall be given in 22 exchange for a qualifying contribution. 23 Section 35. Filing with commission. All 24 participating candidates must file qualifying contributions 25 with the commission during the qualifying period according to 26 procedures developed by the commission, except as provided by 27 commission rule adopted under Section 85. 28 Section 40. Certification of candidates. Upon receipt of 29 a final submission of qualifying contributions by a 30 participating candidate, the commission shall determine 31 whether or not the candidate has: -6- LRB9000512MWpcA 1 (1) Signed and filed a declaration of intent to 2 participate in this Act; 3 (2) Submitted the appropriate number of valid 4 qualifying contributions; 5 (3) Qualified as a candidate by petition or other 6 means; 7 (4) Complied with seed money contribution 8 restrictions; and 9 (5) Otherwise met the requirements for 10 participation in this Act. 11 The commission shall certify candidates complying with 12 the requirements of this Act as Clean Election candidates as 13 soon as possible and no later than 3 days after final 14 submission of qualifying contributions. 15 Upon certification, candidates must transfer to the fund 16 any unspent seed money contributions. Certified candidates 17 must comply with all requirements of this Act after 18 certification and throughout the general primary and general 19 election periods. Failure to do so is a violation of this 20 Act. 21 Section 45. Restrictions on contributions and 22 expenditures for certified candidates. Subsequent to 23 certification, a candidate must limit his or her campaign 24 expenditures and debts to the moneys distributed to the 25 candidate from the fund and may not accept any contributions 26 unless specifically authorized by the commission. All moneys 27 distributed to certified candidates from the fund must be 28 used for campaign related purposes. The commission shall 29 publish guidelines outlining permissible campaign related 30 expenditures. 31 Section 50. Timing of fund distribution. The commission 32 shall distribute to certified candidates moneys from the fund -7- LRB9000512MWpcA 1 in amounts determined under Section 55 in the following 2 manner: 3 (1) Within 3 days after certification, for 4 candidates certified prior to February 28 of the general 5 election year, moneys from the fund as if the candidates 6 are in an uncontested general primary; 7 (2) Within 3 days after February 28 of the general 8 election year, for general primary certified candidates, 9 moneys from the fund according to whether the candidate 10 is in a contested or uncontested general primary, reduced 11 by any amounts previously distributed under paragraph 12 (1); and 13 (3) Within 3 days after the general primary, for 14 general election certified candidates, moneys from the 15 fund according to whether the candidate is in a contested 16 general election. No funds shall be distributed for 17 uncontested general elections. 18 Funds may be distributed to certified candidates under 19 this Section by any mechanism that is expeditious, ensures 20 accountability, and safeguards the integrity of the fund. 21 Section 55. Amount of fund distribution. Within 18 22 months of the effective date of this Act, and no less 23 frequently than every 4 years thereafter, the commission 24 shall determine the amount of funds to be distributed to 25 participating candidates based on the type of election and 26 office as follows: 27 (1) For a contested general primary, the amount of 28 moneys to be distributed is the average amount of 29 campaign expenditures made by each candidate during all 30 contested general primary races for the immediately 31 preceding 2 general primaries, as reported under Article 32 9 of the Election Code in the initial filing period 33 subsequent to the general primary for the respective -8- LRB9000512MWpcA 1 constitutional offices of and adjusted for inflation by 2 the commission; 3 (2) For an uncontested general primary, the amount 4 of moneys distributed is the average amount of campaign 5 expenditures made by each candidate during all 6 uncontested general primary races, or for contested races 7 if that amount is lower, for the immediately preceding 2 8 general primaries, as reported under Article 9 of the 9 Election Code in the initial filing period subsequent to 10 the general primary for the respective constitutional 11 offices and adjusted for inflation by the commission; 12 (3) For a contested general election, the amount of 13 moneys distributed is the average amount of campaign 14 expenditures made by each candidate during all contested 15 general election races for each of the immediately 16 preceding 2 general elections, as reported under Article 17 9 of the Election Code in the initial filing period 18 subsequent to the general election for the respective 19 constitutional offices and adjusted for inflation by the 20 commission; and 21 (4) For an uncontested general election, no moneys 22 shall be distributed. 23 If the immediately preceding 2 election cycles do not 24 contain sufficient electoral data, the commission shall use 25 information from the most recent applicable elections. For 26 only the initial computations under paragraphs (1), (2), and 27 (3), to be conducted within 18 months of the effective date 28 of this Act, the commission shall reduce the amounts to be 29 distributed by 25%. 30 Section 60. Matching funds. When any campaign, finance, 31 or election report shows that the sum of a candidate's 32 expenditures or obligations made or funds raised or borrowed, 33 whichever is greater, alone or in conjunction with -9- LRB9000512MWpcA 1 independent expenditures reported under Article 9 of the 2 Election Code exceeds the distribution amount under Section 3 55, the commission shall issue immediately to any opposing 4 Clean Election candidate an additional amount equivalent to 5 the reported excess. Matching funds are limited to 2 times 6 the amount originally distributed under the applicable 7 paragraph of Section 55. 8 Section 65. Independent candidates. Independent 9 candidates certified by February 28 preceding the general 10 primary shall be eligible for moneys from the fund in the 11 same amounts and at the same time as uncontested general 12 primary candidates and general election candidates as 13 specified in Sections 50 and 55. For independent candidates 14 not certified by February 28 at 5:00 p.m., the deadline for 15 filing qualifying contributions is 5:00 p.m. on June 15 16 preceding the general election. Independent candidates 17 certified after February 28 at 5:00 p.m. shall be eligible 18 for moneys from the fund in the same amounts as general 19 election candidates, as specified in Sections 50 and 55. 20 Section 70. Reports; return of unspent moneys. 21 Notwithstanding any other provision of law, participating and 22 certified candidates shall report any money collected, all 23 campaign expenditures, obligations, and related activities to 24 the commission according to procedures developed by the 25 commission. Upon the filing of a final report for a lost 26 general primary or a general election, each candidate who has 27 moneys from the fund remaining unspent shall return all 28 moneys to the commission. In developing these procedures, the 29 commission shall use existing campaign reporting procedures 30 whenever practicable. The commission shall ensure timely 31 public access to campaign finance data and may use electronic 32 means of reporting and storing information. -10- LRB9000512MWpcA 1 Section 75. Disbursements not to exceed amount in fund. 2 The commission may not distribute moneys to certified 3 candidates in excess of the total amount of money deposited 4 into the fund. Notwithstanding other provisions of this Act, 5 if the commission determines that the moneys in the fund are 6 insufficient to meet disbursements under Section 55 and 60, 7 the commission may permit certified candidates to accept and 8 spend contributions in the amount of $1,000 per donor up to 9 the applicable amounts set forth in Sections 55 and 60 10 according to rules adopted by the commission. 11 Section 80. Appeals. The procedure for challenging a 12 certification decision by the commission is as follows: 13 (1) A person aggrieved by a certification decision 14 may appeal to the full commission within 3 days of the 15 certification decision. The appeal must be in writing and 16 must set forth the reasons for the appeal. 17 (2) Within 5 days after an appeal is properly made 18 and after due notice is given to the parties, the 19 commission must hold a hearing. The appellant has the 20 burden of providing evidence to demonstrate that the 21 commission decision was improper. The commission must 22 rule on the appeal within 3 days after the completion of 23 the hearing. 24 (3) The challenger or a candidate may appeal the 25 decision of the commission by commencing an action in 26 circuit court according to the Administrative Review Law. 27 (4) A candidate whose certification by the 28 commission as a Clean Election candidate is revoked on 29 appeal must return to the commission any unspent moneys 30 distributed from the fund. If the commission or court 31 finds that an appeal was made frivolously or to result in 32 delay or hardship, the commission or court may sanction 33 the moving party by requiring the party to pay costs of -11- LRB9000512MWpcA 1 the commission, court, and opposing parties, if any. 2 Section 85. Rules. The commission shall adopt rules to 3 ensure effective administration of this Act. Rules shall 4 include but not be limited to procedures for obtaining 5 qualifying contributions, certification as a Clean Election 6 candidate, addressing circumstances involving vacancies, 7 recounts, candidate withdrawals, or candidate replacements, 8 collection of moneys for the fund, distribution of fund 9 moneys to certified candidates, return of unspent fund 10 disbursements, and compliance with this Act. 11 Section 90. Violations. 12 (a) In addition to any other penalties that may be 13 applicable, any person who violates any provision of this Act 14 is subject to a fine of up to $10,000 per violation. In 15 addition to any fine, for good cause shown, a candidate found 16 in violation of this Act may be required to return to the 17 fund all amounts distributed to the candidate from the fund. 18 If the commission makes a determination that a violation of 19 this Act has occurred, the commission shall impose a fine or 20 transmit the finding to the Attorney General for prosecution. 21 Fines paid under this Section must be deposited into the 22 fund. In determining whether or not a candidate is in 23 violation of the expenditure limits of this Act, the 24 commission may consider as a mitigating factor any 25 circumstances out of the person's control. 26 (b) A person who willfully or knowingly violates this 27 Act or rules of the commission or who willfully or knowingly 28 makes a false statement in any report required by this Act is 29 guilty of a Class A misdemeanor and, if certified as a Clean 30 Election candidate, must return to the fund all amounts 31 distributed to the candidate. -12- LRB9000512MWpcA 1 Section 95. Study report. By January 30, 2002 and every 2 4 years thereafter, the commission shall prepare for the 3 General Assembly a report documenting, evaluating, and making 4 recommendations relating to the administration, 5 implementation, and enforcement of the Clean Election Fund 6 and this Act. 7 Section 100. Clean Election Checkoff Fund; 8 appropriations. 9 (a) The Clean Election Checkoff Fund is created as a 10 special fund within the State treasury. Proceeds of a $5 per 11 return income tax checkoff shall be deposited into the Clean 12 Election Checkoff Fund as provided in the Illinois Income Tax 13 Act. At the beginning of each fiscal year, the State 14 Treasurer and State Comptroller shall transfer the balance of 15 the Clean Election Checkoff Fund to the Clean Election Fund 16 for use by the commission as provided in this Act. The Clean 17 Election Checkoff Fund may not be used for any purpose except 18 as provided in this subsection. 19 (b) The General Assembly annually shall appropriate to 20 the commission for deposit into the Clean Election Fund an 21 amount sufficient to assure distribution to certified 22 candidates of moneys in amounts provided in Sections 55 and 23 60. 24 Section 985. The Election Code is amended by adding 25 Sections 9-25.5 and 9-25.10 as follows: 26 (10 ILCS 5/9-25.5 new) 27 Sec. 9-25.5. Contribution limit. No political committee 28 of a candidate for the a constitutional office or the General 29 Assembly shall accept contributions from any one entity in an 30 aggregate amount in excess of $1,000 during the period 31 beginning with the circulation of a candidate's nominating -13- LRB9000512MWpcA 1 petitions and ending with the general primary and in excess 2 of $1,000 during the period from the general primary until 3 the general election. 4 (10 ILCS 5/9-25.10 new) 5 Sec. 9-25.10. Expedited reports. In addition to other 6 reports required by this Article, a candidate for a 7 constitutional office or the General Assembly who is not 8 certified as a Clean Election candidate under the Clean 9 Election Act and who receives, spends, or obligates more than 10 1% in excess of the general primary or general election 11 disbursement amounts for a Clean Election candidate in the 12 same race shall report within 48 hours of that event to the 13 Clean Election Commission. The report shall detail the 14 candidate's total campaign contributions, expenditures, and 15 obligations to date. Thereafter, the candidate shall comply 16 with an expedited reporting schedule established by the Clean 17 Election Commission. The Clean Election Commission shall 18 provide forms for compliance with this Section. 19 Section 990. The State Finance Act is amended by adding 20 Section 5.449 as follows: 21 (30 ILCS 105/5.449 new) 22 Sec. 5.449. The Clean Election Checkoff Fund. 23 Section 995. The Illinois Income Tax Act is amended by 24 changing Sections 509 and 510 and adding Section 507R as 25 follows: 26 (35 ILCS 5/507R new) 27 Sec. 507R. Clean Election Checkoff Fund. The Department 28 shall print on its standard individual income tax form a 29 provision indicating that if the taxpayer wishes to -14- LRB9000512MWpcA 1 contribute to the Clean Election Checkoff Fund, as authorized 2 by this amendatory Act of 1997, he or she may do so by 3 stating the amount of the contribution (not less than $5) on 4 the return and that the contribution will reduce the 5 taxpayer's refund or increase the amount of payment to 6 accompany the return. Failure to remit any amount of 7 increased payment shall reduce the contribution accordingly. 8 This Section shall not apply to any amended return. 9 (35 ILCS 5/509) (from Ch. 120, par. 5-509) 10 Sec. 509. Tax checkoff explanations. All individual 11 income tax return forms shall contain appropriate 12 explanations and spaces to enable the taxpayers to designate 13 contributions to the Child Abuse Prevention Fund, to the 14 Community Health Center Care Fund, to the Illinois Wildlife 15 Preservation Fund as required by the Illinois Non-Game 16 Wildlife Protection Act, to the Alzheimer's Disease Research 17 Fund as required by the Alzheimer's Disease Research Act, to 18 the Assistance to the Homeless Fund as required by this Act, 19 to the Heritage Preservation Fund as required by the Heritage 20 Preservation Act, to the Child Care Expansion Program Fund as 21 required by the Child Care Expansion Program Act, to the Ryan 22 White AIDS Victims Assistance Fund, to the Assistive 23 Technology for Persons with Disabilities Fund, to the 24 Domestic Violence Shelter and Service Fund, to the United 25 States Olympians Assistance Fund, to the Youth Drug Abuse 26 Prevention Fund, to the Persian Gulf Conflict Veterans Fund, 27 to the Literacy Advancement Fund, to the Ryan White Pediatric 28 and Adult AIDS Fund, to the Illinois Special Olympics 29 Checkoff Fund, to the Breast and Cervical Cancer Research 30 Fund, to the Korean War Memorial Fund, to the Heart Disease 31 Treatment and Prevention Fund, to the Hemophilia Treatment 32 Fund, to the Women in Military Service Memorial Fund, to the 33 Clean Election Checkoff Fund, and to the Meals on Wheels -15- LRB9000512MWpcA 1 Fund. Each form shall contain a statement that the 2 contributions will reduce the taxpayer's refund or increase 3 the amount of payment to accompany the return. Failure to 4 remit any amount of increased payment shall reduce the 5 contribution accordingly. 6 If, on October 1 of any year, the total contributions to 7 any one of the funds made under this Section do not equal 8 $100,000 or more, the explanations and spaces for designating 9 contributions to the fund shall be removed from the 10 individual income tax return forms for the following and all 11 subsequent years and all subsequent contributions to the fund 12 shall be refunded to the taxpayer. 13 (Source: P.A. 88-85; 88-130; 88-459; 88-666, eff. 9-16-94; 14 88-670, eff. 12-2-94; 89-230, eff. 1-1-96; 89-324, eff. 15 8-13-95.) 16 (35 ILCS 5/510) (from Ch. 120, par. 5-510) 17 Sec. 510. Determination of amounts contributed. The 18 Department shall determine the total amount contributed to 19 each of the following: the Child Abuse Prevention Fund, the 20 Illinois Wildlife Preservation Fund, the Community Health 21 Center Care Fund, the Assistance to the Homeless Fund, the 22 Alzheimer's Disease Research Fund, the Heritage Preservation 23 Fund, the Child Care Expansion Program Fund, the Ryan White 24 AIDS Victims Assistance Fund, the Assistive Technology for 25 Persons with Disabilities Fund, the Domestic Violence Shelter 26 and Service Fund, the United States Olympians Assistance 27 Fund, the Youth Drug Abuse Prevention Fund, the Persian Gulf 28 Conflict Veterans Fund, the Literacy Advancement Fund, the 29 Ryan White Pediatric and Adult AIDS Fund, the Illinois 30 Special Olympics Checkoff Fund, the Breast and Cervical 31 Cancer Research Fund, the Korean War Memorial Fund, the Heart 32 Disease Treatment and Prevention Fund, the Hemophilia 33 Treatment Fund, the Women in Military Service Memorial Fund, -16- LRB9000512MWpcA 1 the Clean Election Checkoff Fund, and the Meals on Wheels 2 Fund; and shall notify the State Comptroller and the State 3 Treasurer of the amounts to be transferred from the General 4 Revenue Fund to each fund, and upon receipt of such 5 notification the State Treasurer and Comptroller shall 6 transfer the amounts. 7 (Source: P.A. 88-85; 88-130; 88-459; 88-666, eff. 9-16-94; 8 88-670, eff. 12-2-94; 89-230, eff. 1-1-96; 89-324, eff. 9 8-13-95.)