Transcript ILLINOIS CAMPAIGN CONTRIBUTION LIMITS EFFECTIVE …

Illinois Campaign Disclosure Act
10 ILCS 5/9-1 et seq.
State Board of Elections
www.elections.il.gov
Introduction
 Brief overview of Illinois campaign disclosure
1974-2010
 Overview of 2010 changes & introduction to
new contribution limits
2010 Amendments
 2010 Amendments provided contribution limits for first
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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
Types of Political Committees
 Candidate Political Committees
 Political Party Committees
 Political Action Committees
 Ballot Initiative Committees
 Does not apply to Federal offices
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
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
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
Ballot Initiative Committees
 Person(s) or entity(ies)
 Must have name that reflects ballot initiative issue
 Receives contributions or expends $3,000 in 12 month period in
support of or opposition to ballot initiatives
 Expends $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
 Statement 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
Electioneering Communications
& Independent Expenditures
(Effective July 1, 2010)
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 [evennumbered year] election or consolidated [oddnumbered 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
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
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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
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)
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
Quarterly Reports
 Now filed quarterly and not semi-annually
 January-March, April-June, July-September,
October-December
 Filed by Midnight of 15th 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
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
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
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
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)
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
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
Election Cycles
 New concept effective January 1, 2011
 Established based on type of political
committee receiving contributions
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
State Senate Candidate Committees
 For candidate committees for candidates for the
State Senate
 In a ten year period following redistricting, State Senators
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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
Judicial Retention Candidate Committees
 Circuit judges have 6 year terms, Appellate & Supreme Court
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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
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
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
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
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
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
Candidate Political Committee
(Recipient of Contributions) (I)
Individuals
Corporation, union or association
Other candidate political committees
Political action committee
Political party committee
(Candidate’s general election cycle)
 Political party committee
(Statewide candidate’s primary election cycle)
 Political party committee
(State Senate, Supreme or Appellate Court
in Cook County, or Cook County county-wide officers’
primary election cycle)
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$5,000
$10,000
$50,000
$50,000
Unlimited
$200,000
$125,000
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
Political Party Committee
(Recipient of Contributions)
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Individual
Corporation, union or association
Political action committee
Candidate political committee or political
party committee
 During petition circulation through primary
 Any other time
$10,000
$20,000
$50,000
$50,000
Unlimited
 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, 2011March 20, 2012
 Legislative caucus committee cannot accept contributions
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
Ballot Initiative Committee
(Recipient of Contributions)
 No limits on contributions
Limits By Type of Contributor (I)
Individual (Maker of Contribution)
 Candidate political committee
 Political party committee
 Political action committee
 Ballot initiative committee
$5,000
$10,000
$10,000
None
Limits By Type of Contributor (II)
Corporation, Union or Association
(Maker of Contribution)
 Candidate political committee
 Political party committee
 Political action committee
 Ballot initiative committee
$10,000
$20,000
$20,000
None
Limits By Type of Contributor (III)
Candidate Political Committee
(Maker of Contribution)
 Candidate political committee
 Political party committee
 Not participating in primary
 Participating in primary
(Limit repealed July 1, 2013)
 Political action committee
 Ballot initiative committee
$50,000
Unlimited
$50,000
$50,000
None
Limits By Type of Contributor (IV)
Political Party Committee
(Maker of Contribution)
 Candidate political committee
 Political party committee
 If recipient committee not participating in primary
 If participating in primary
(Limit repealed July 1, 2013)
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$50,000
Unlimited
$50,000
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
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
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
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
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 (www.elections.il.gov) or for purchase
from the State Board of Elections, Springfield,
Illinois
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
What is Not a Contribution?
 Voluntary unpaid services
 Use of individual’s real or personal property & the cost of invitations,
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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”)
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
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
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
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
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.
 Must be provided to the treasurer of the
committee within five days of the receipt of
the contribution, or on demand of the
treasurer.
Fundraising Prohibitions
 Committee cannot accept contributions or make expenditures if
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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
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
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
Audits (II)
 In each calendar year, Board to randomly order no
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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
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
Public Hearing
 Occurs if 5 (of 8) members of Board determine that the complaint was
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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
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
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If subsequent violation within 2 years, payment of both fines will
be required
 Citing letter sent approximately a week after filing deadline
 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
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
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
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
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
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Does not include entity prohibited by federal law from making
contributions or expenditures in connection with federal, state
or local elections
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
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Does not include persons prohibited by federal law
from making contributions or expenditures in
connection with federal, state or local elections
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