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Illinois Campaign Disclosure Act 10 ILCS 5/9-1 et seq. State Board of Elections

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Presentation on theme: "Illinois Campaign Disclosure Act 10 ILCS 5/9-1 et seq. State Board of Elections"— Presentation transcript:


2 Illinois Campaign Disclosure Act 10 ILCS 5/9-1 et seq. State Board of Elections

3 Introduction Brief overview of Illinois campaign disclosure 1974-2010 Overview of 2010 changes & introduction to new contribution limits

4 2010 Amendments 2010 Amendments provided contribution limits for first time Scrapped old political committee definitions Established four new political committee definitions Established “election cycles” for receipt of campaign contributions Established contribution limits Defined & required reporting for independent expenditures Established procedures for auditing of political committees Established on-line database of founded campaign finance complaints

5 Types of Political Committees Candidate Political Committees Political Party Committees Political Action Committees Ballot Initiative Committees Does not apply to Federal offices

6 Candidate Political Committees Candidate or another person(s) or entities Receives contributions or expends $3,000 in 12 month period “Public Official” appears to be “Candidate” Only candidate’s committee can have candidate’s name Limited to one committee for each office sought Committee opposed to a candidate is a political action committee

7 Political Party Committees State Central Committees County Central Committees Legislative Caucus Committees Committee established for purpose of electing persons to the General Assembly Established by President of Senate or Speaker of the House or Minority Leader of either House or 5 or more members of Senate or 10 or more members of the Senate Ward or Township Committee No $3,000 threshold necessary for political party committees

8 Political Action Committees Persons (other than a candidate) or entities Receives contributions or expends $3,000 in 12 month period in support of or opposition to candidates Expends $3,000 in independent expenditures in any 12 month period in relation to candidate(s) Informal group shall include names of persons responsible

9 Ballot Initiative Committees Person(s) or entity(ies) Must have name that reflects ballot initiative issue R eceives contributions or expends $3,000 in 12 month period in support of or opposition to ballot initiatives E xpends $3,000 in independent expenditures in any 12 month period in support of or in opposition to ballot initiatives $3,000 threshold applies even if ballot initiative is not on ballot S tatement of Organization must contain verification that committee formed to support or oppose ballot initiative, all contributions & expenditures will be used for that purpose, and the committee will accept unlimited contributions from any source provided it does not make contributions or expenditures related to any candidate

10 Electioneering Communications & Independent Expenditures (Effective July 1, 2010)

11 Electioneering Communications Any broadcast advertisement or communication that 1) refers to a clearly identified candidate, political party or public policy question, 2) is made in the 60 days before a general [even- numbered year] election or consolidated [odd- numbered year] election or primary election, 3) is targeted to the relevant electorate, and 4) is clearly an appeal to vote for or against the candidate or ballot initiative

12 Independent Expenditures Any payment or expenditure made for election communications or expressly advocating for or against a candidate provided that the spending is not made in connection (in any way) with a candidate or his committee Is not considered to be a contribution and should not be reported as such If more than $3,000 in 12 month period supporting or opposing a candidate(s): An entity (including 2 or more persons) making expenditure must organize and file as political committee A single person must file a written disclosure with the State Board of Elections within 2 business days of exceeding the $3,000 threshold Identifying the person The person’s employer & occupation The public official or candidate supported or opposed The date(s), amount(s) and nature of each Independent Expenditure

13 Date of Receipt of Campaign Contributions Cash or check-date of deposit in bank Credit card-date notice received by political committee that funds were deposited In-kind contribution-date notification of contribution of goods or services received (contributor is to notify political committee within 5 business days of making in-kind contribution)

14 Statements of Organization (Form D-1) To be filed within 10 business days (2 business days if formed within 30 days of an election) with State Board of Elections Required to show name, address, date of creation, amount of funds available at creation, type of political committee, area of operation, purpose, candidate(s) supporting or opposing, officers, custodian of books & records, repositories of committee’s funds, name of any sponsoring entity, disposition of residual funds “sponsoring entity” is any person or entity that contributes at least 33% of the committee’s total funding Any change to be reported within 10 calendar days

15 Quarterly Reports Now filed quarterly and not semi-annually January-March, April-June, July-September, October-December Filed by Midnight of 15 th Day after end of quarter (April 15, July 15, October 15, January 15) or 5 p.m. if on paper Required even if no activity in quarter Detailed accounting of all receipts or expenditures made during quarter Itemization of receipts or expenditures over $150

16 Bundlers New reporting requirement Bundler defined: Collects or accepts at least $3,000 in quarter From at least 5 persons or entities outside the presence of the candidate or not in conjunction with a candidate’s sanctioned fundraiser Not an officer, compensated employee, authorized by an officer of committee or candidate Not an entity used for processing financial transactions by credit card or other means

17 Electronic Filing Required if political committee during quarter either At any time had balance or accumulation of contributions of $10,000 or more Made aggregate expenditures of $10,000 or more Received loans of an aggregate of $10,000 or more Once in electronic filing committee is in forever Any committee can voluntarily file electronically

18 Nonparticipation Reports Applies only to political party committees If not participating in primary election May receive unlimited contributions from other political party committees and candidate political committees

19 Year-Round Reporting of Contributions of $1,000 or More Filed within 5 business days (2 business days if received within 30 days before an election and committee supports or opposes a candidate or ballot initiative on ballot or makes expenditures in excess of $500 on behalf of or in opposition to a candidate(s) or ballot initiative)

20 Reporting Name & Address of Person Filing Report If not the Chairman or Treasurer of committee No exemption even if person is employee, staff member or volunteer, of Chairman, Treasurer or committee

21 Conduit Corporation, labor organization, association or a political action committee established by one of those three is allowed to act as a conduit to accept and deliver contributions made through dues, levies or similar assessments Must maintain list of persons contributing Reported as coming from group or PAC, provided that none of the contributions exceeds the normal contribution limits

22 Election Cycles New concept effective January 1, 2011 Established based on type of political committee receiving contributions

23 Candidate Committees for Even-year General Primary and General Election Contests (two cycles) For primary election, period beginning January 1 following general election for office to which candidate seeks nomination or election and ending on day of general primary election for that office Example: Beginning January 1, 2011 and ending on March 20, 2012 For general election, period beginning a day after general primary election and through December 31 Example: Beginning March 21, and ending December 31, 2012 New primary election cycle would begin January 1, 2013

24 State Senate Candidate Committees For candidate committees for candidates for the State Senate In a ten year period following redistricting, State Senators are elected for three terms Years of terms are distributed equally by district as follows: 4-4-2 4-2-4 2-4-4 Notwithstanding 4 year terms, State Senate offices have the election cycles attributable to State Representatives and have 10 cycles over ten years

25 Judicial Retention Candidate Committees Circuit judges have 6 year terms, Appellate & Supreme Court judges have 10 year terms For incumbent judges seeking retention at even-year general election (two cycles) Beginning January 1 following general election when judge was elected through the day (deadline is 6 months before November Election) judge files declaration of intent to seek retention Beginning day after judge files declaration of intent and ending on December 31 following retention election Example: A circuit judge was elected in November 2010 and files for retention in May of 2016. The period from January 1, 2011 until the day in May 2016 that he files his declaration of intent constitutes the first cycle. The second cycle begins the day after his filing of the declaration of intent and ends on December 31, 2016. New cycle would begin on January 1, 2017

26 Candidate Committees for Odd-year Consolidated Primary and Consolidated Elections (2 Cycles) Township, municipal, community college, school, park district, library and special district elections Beginning July 1 following consolidated election and ending on the day of the consolidated primary election Example: Beginning July 1, 2011 and ending February 19, 2013 Beginning day after consolidated primary election and ending on June 30 following consolidated election Example: Beginning February 20, 2013 and ending June 30, 2013

27 Political Party Committee (1 Cycle) Beginning January 1 and ending on December 31 of each calendar year Example: Beginning on January 1, 2011 and ending on December 31, 2011

28 Political Action Committee (1 Cycle) Beginning January 1 and ending on December 31 of each calendar year Example: Beginning on January 1, 2011 and ending on December 31, 2011

29 Ballot Initiative Committee (1 Cycle) Beginning January 1 and ending on December 31 of each calendar year Example: Beginning on January 1, 2011 and ending on December 31, 2011

30 Contribution Limits By Recipient Committee Types New to Illinois, Effective January 1, 2011 Limits are for each election cycle No limitation on total amount can receive No limitation on total amount that can be donated to various political committees

31 Candidate Political Committee (Recipient of Contributions) (I) Individuals$5,000 Corporation, union or association$10,000 Other candidate political committees$50,000 Political action committee$50,000 Political party committee (Candidate’s general election cycle) Unlimited Political party committee (Statewide candidate’s primary election cycle)$200,000 Political party committee (State Senate, Supreme or Appellate Court in Cook County, or Cook County county-wide officers’ primary election cycle)$125,000

32 Candidate Political Committee (Recipient of Contributions) (II) Political party committee (State Representative, Supreme or Appellate Court outside Cook County, county officers outside Cook County, municipal offices in Cook County, county officers in Cook County elected by less than all county voters [primary election cycle]) $75,000 Any other office primary election cycle $50,000 Candidate political committee of candidate for General Assembly can accept contributions from only one legislative caucus committee No contributions from ballot initiative committee

33 Political Party Committee (Recipient of Contributions) Individual$10,000 Corporation, union or association$20,000 Political action committee$50,000 Candidate political committee or political party committee During petition circulation through primary$50,000 Any other timeUnlimited If recipient political party committee has filed statement of nonparticipation in next primary, it can accept unlimited contributions in period from first day to circulate petitions through day of primary election, e.g., September 6, 2011- March 20, 2012 Legislative caucus committee cannot accept contributions from another legislative caucus committee No contributions from ballot initiative committee

34 Political Action Committee (Recipient of Contributions) Individual$10,000 Corporation, union or association$20,000 Political candidate committee$50,000 Political action committee$50,000 No contributions from ballot initiative committee

35 Ballot Initiative Committee (Recipient of Contributions) No limits on contributions

36 Limits By Type of Contributor (I) Individual (Maker of Contribution) Candidate political committee $5,000 Political party committee $10,000 Political action committee $10,000 Ballot initiative committee None

37 Limits By Type of Contributor (II) Corporation, Union or Association (Maker of Contribution) Candidate political committee $10,000 Political party committee $20,000 Political action committee $20,000 Ballot initiative committee None

38 Limits By Type of Contributor (III) Candidate Political Committee (Maker of Contribution) Candidate political committee $50,000 Political party committee Not participating in primary Unlimited Participating in primary $50,000 (Limit repealed July 1, 2013) Political action committee $50,000 Ballot initiative committee None

39 Limits By Type of Contributor (IV) Political Party Committee (Maker of Contribution) Candidate political committee $50,000 Political party committee If recipient committee not participating in primary Unlimited If participating in primary $50,000 (Limit repealed July 1, 2013) Political action committee $50,000 Ballot initiative committee None No transfers between legislative caucus committees No limits on transfers between state political committee and federal political committee

40 COLA ADJUSTMENT On January 1 of each odd-numbered year, the State Board of Elections shall adjust the contribution limits by using the Consumer Price Index and rounding the numbers to the nearest $100

41 Disposal of Excess Contributions Excess contributions to either be returned to contributor or donated to charity If not done within 15 days of receipt, excess contribution is escheated to State and political committee is subject to civil penalty of up to 150% of excess contribution

42 Self-Funding Candidates Defined as candidate, spouse or child Can make unlimited contributions to that candidate’s political committee If during 12 months prior to an election, the designated persons contribute, loan or make independent expenditures for the benefit of the candidate, in aggregate, of more than $250,000 for statewide constitutional officers $100,00 for all other offices To the candidate’s committee or to other committees that transfer funds to the candidate’s committee Once threshold is reached, candidate must file within 1 day with State Board of Elections a Notification of Self-Funding detailing each such contribution or loan Limits are removed for other candidates for same office

43 Disclaimer Notice All fundraising solicitations to have the following disclosure: A copy of our report filed with the State Board of Elections is (or will be) available on the Board’s website ( or for purchase from the State Board of Elections, Springfield,

44 What is a Contribution? Money or anything of value knowingly received in connection with the election, nomination or retention to Illinois public office, or in connection with any ballot initiative “Anything of value” includes all things, services or goods includes an electioneering communication made in concert or cooperation with the recipient candidate or committee services of an employee donated by an employer, unless the services are provided voluntarily and without promise or expectation of compensation from any source

45 What is Not a Contribution? Voluntary unpaid services Use of individual’s real or personal property & the cost of invitations, food & beverages provided on individual’s residential premises for candidate-related activities, provided the value provided does not exceed $150 in a reporting period The sale of food or beverage by a vendor as long as vendor charges at least the cost to the vendor of the food or beverage Communications by a corporation or association to its members, stockholders or executive or administrative personnel or their families Voter registration or other campaigns that make no mention of a clearly identified candidate, ballot initiative, political party, group, or combination thereof Independent expenditures Interest or other investment income or refunds or returns of a committee’s previous expenditures (but they do have to be reported as “Other Income”)

46 Anonymous Contributions Prohibited Anonymous contribution, or contribution made by one person in the name of another, are prohibited Funds escheat to the State of Illinois Treasurer to “immediately” forward to the State Treasurer

47 Unauthorized Solicitation of Campaign Funds Another political committee must be authorized in writing to solicit contributions or make expenditures on behalf of a candidate If not authorized, soliciting committee must include disclaimer on all literature and advertising that mentions candidate Disclaimer must state that producing committee is not authorized by candidate, and that candidate is not responsible for activities of the committee

48 IRS Notice The Internal Revenue Service requires political committees and organizations whose gross annual receipts normally exceed $100,000 to include a clear and easily recognizable statement on fund solicitations that contributions to the committee are not deductible as charitable contributions for federal income tax purposes

49 Employer & Occupation Information In cases of contributions, including loans or endorsement of loans, in the aggregate of more than $500 in a quarterly reporting period by an individual, the committee is to report the person’s employer and occupation Committee is required to make a “good faith effort” to obtain the information

50 Report of Receipt of Contribution Every person who receives a contribution must provide the amount, name and address of the contributor and the date it was received. M ust be provided to the treasurer of the committee within five days of the receipt of the contribution, or on demand of the treasurer.

51 Fundraising Prohibitions Committee cannot accept contributions or make expenditures if vacancy in offices of Chairman or Treasurer Contributions cannot be made or accepted on State property unless rented or leased to private person or entity Officers or candidates for statewide offices or the General Assembly, or caucuses of the General Assembly may not hold fundraising events in Sangamon County (Springfield) on any day either house of the General Assembly is in session between February 1 and adjournment (usually May 31) or during the entire fall Veto Session (usually six days spread over two weeks) Between June 1 and the Veto Session, this provision does not apply to General Assembly members or candidates whose districts are entirely in Sangamon County Illegal to promise any government benefit, employment or appointment for a contribution Illegal to coerce contribution

52 Use of Funds Committee cannot pay: Funds for purpose in violation of federal or state law More than fair value For debts other than committee’s debts In cash For expenses of personal residence For clothing or laundry except for campaign For purchase of motor vehicle unless more cost-effective than leasing vehicle used primarily for campaign purposes or performance of governmental duties For mileage expenses at a rate in excess of IRS standard mileage rate For educational expenses except for governmental or political purposes directly related to candidate’s or public official’s duties and responsibilities Compensation to public official or candidate or his family members unless for services actually rendered to committee

53 Audits (I) State Board of Elections to order audit if: Discrepancy between ending balance of reporting period and beginning balance of next reporting period Failure to account for previously reported investments or loans Discrepancy between reporting contributions received by or expenditures made for a political committee that are reported by another political committee, except that no audit shall be ordered for this item unless there is a willful pattern of inaccurate reporting involving similar contributions by the same contributor Prior to ordering audit, political committee has right to closed preliminary hearing to explain error Political committee shall hire (and pay for) an entity “qualified” to conduct the audit, provided that the entity has not contributed to the political committee in the last 4 years

54 Audits (II) In each calendar year, Board to randomly order no more than 3% of committees to be audited Audit to ensure that contribution limits and reporting requirements have been met for last two years Committee has 60 days to conduct audit unless extended by Board No more than one random audit in 5 years unless Board has reason to believe the committee has violated certain provisions of statute Subject to fine of $250 per day that audit is late, up to maximum of $5,000

55 Enforcement of Act by State Board of Elections Complaint may be filed by any person who believes a violation of Act has occurred Complaint filed on Form D-4, Complaint for Violation of the Campaign Disclosure Act Must be signed & verified Directed to candidate or officers of political committee or anyone alleged to have violated Act Closed preliminary hearing conducted by hearing officer Purpose is to determine whether any substance to complaint & whether it has basis in fact & law Closed preliminary hearing could result in settlement or in offending committee coming into compliance

56 Public Hearing Occurs if 5 (of 8) members of Board determine that the complaint was filed on justifiable grounds If less than 5 members vote for public hearing, complaint is dismissed Board may determine public hearing not necessary if offender is going to correct violation Public hearing conducted by hearing officer and resembles an administrative trial Hearing officer makes recommendation which may be adopted, modified or rejected by Board Board may enter order compelling compliance with Act or that violator cease & desist from violating Act Violation of Board order may result in a civil penalty not to exceed $5,000 (or $10,000 for statewide committees) Board is to act within 60 days of filing of complaint If complaint filed within 7 days of election, Board to decide before election, if possible

57 Staff Initiated Enforcement Delinquent Filing of Reports Staff has procedure for review of all reports filed, and for determining that reports have been filed Automatic penalties assessed for failure to file or late filing of reports Penalty based upon type of report filed, number of days late, whether violation was committed inadvertently, negligently, knowingly or intentionally, whether the committee has past violations and any other relevant factors For first violation, fine will be stayed unless subsequent violation within 2 years If subsequent violation within 2 years, payment of both fines will be required Citing letter sent approximately a week after filing deadline

58 Assessment letter sent approximately a month later Includes exact fine, how fine calculated, and forms for appealing the penalty Civil penalties for late report filing range from $25 to $5,000 for statements of organization and quarterly reports For late reports of contributions of $1,000 or more where the Board finds the failure to be willful or wanton, the Board may impose a civil penalty of no less than 10% and no more than 150% of the contributions delinquently reported Appeal process Must be filed with Board within 30 days of the date of the Assessment letter Consists of appeal affidavit explaining grounds for appeal, and either request for hearing before hearing officer or a waiver of appearance Hearing officer makes recommendation to Board Committee may argue before Board Board decision subject to judicial review to Appellate Court If only 1 civil penalty in 2 years, then considered as having none

59 Judicial Review Any party adversely affected by Board action (or inaction), may file for judicial review pursuant to the Administrative Review Law Appeal is directly to Appellate Court Must be filed within 7 days of Board order May be waived with consent of all parties Board order not stayed unless ordered by Appellate Court

60 Ballot Forfeiture Any candidate whose committee has not paid a civil penalty imposed by the State Board of Elections shall not be certified for ballot

61 Database of Complaints Filed State Board of Elections to maintain searchable Internet database of each complaint filed which the Board has found justifiable, including all Board actions and penalties imposed, if any If complaint was found not to be justifiable, then it is not in database

62 Business Entity Registration for Procurement [I] Registration with State Board of Elections required if business has existing contracts, bids on contracts not yet awarded, or combination thereof, in excess of $50,000 Disclosure of the name of entity, names of affiliated businesses, and names of affiliated persons Affiliated business is corporate parent or subsidiary of entity, subsidiary of the corporate entity, IRS 501(c) organization established by entity or affiliated entity or affiliated person Does not include entity prohibited by federal law from making contributions or expenditures in connection with federal, state or local elections

63 Business Entity Registration for Procurement [II] Affiliated person is one with ownership interest in excess of 7.5%, or executive employees of entity (President, Chairman, CEO, employee) whose compensation is determined by attaining State contracts Does not include persons prohibited by federal law from making contributions or expenditures in connection with federal, state or local elections

64 Contributions Prohibited Affected BEREP, affiliated entities, and affiliated persons are prohibited from making contributions to political committee In case of awarded contracts in excess of $50,000, to contracting officer or candidate for that office. Duration of prohibition is longer of the incumbent’s term or 2 years In case of proposed contracts in excess of $50,000, to contracting officer. Duration is period from date bid is submitted and ending on date contract is awarded Governor is considered officer for contracts with agencies directly controlled by him

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