103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2349
 
Introduced , by Rep. Kelly M. Cassidy
 
SYNOPSIS AS INTRODUCED:



  
10 ILCS 5/9-25.1 from Ch. 46, par. 9-25.1; formerly  Ch. 46, pars. 102, 103 and 104
10 ILCS 5/Art. 9A heading new
10 ILCS 5/9A-5 new
10 ILCS 5/9A-10 new
10 ILCS 5/9A-15 new
10 ILCS 5/9A-20 new
10 ILCS 5/9A-25 new
10 ILCS 5/9A-30 new
10 ILCS 5/9A-35 new
10 ILCS 5/9A-40 new
10 ILCS 5/9A-45 new
10 ILCS 5/9A-50 new
10 ILCS 5/9A-55 new
10 ILCS 5/9A-60 new
10 ILCS 5/9A-65 new
10 ILCS 5/9A-70 new
10 ILCS 5/9A-75 new
30 ILCS 105/5.990 new

 Amends the Election Code. Provides that the amendatory Act may be referred to as the Small Donor Democracy Matching System for Fair Elections Act. Creates a small donor campaign contribution matching system for candidates for the offices of Governor, Lieutenant Governor, Attorney General, State Comptroller, State Treasurer, Secretary of State, State Senator, and State Representative. Creates the Small Donor Democracy Matching Fund as a special fund in the State treasury. Sets forth requirements for accessing the small donor matching system. Sets forth provisions for the funding of the matching contributions. Imposes limits on the access to matching funds. Allows the General Assembly to increase various amounts, subject to public referendum. Provides for penalties for violations of the provisions. Sets forth disclosure requirements. Creates the Campaign Finance Board within the State Board of Elections to implement the campaign contribution matching system. Includes severability provisions. Effective immediately.



LRB103 26407 BMS 52770 b


 
 
A BILL FOR
 


HB2349LRB103 26407 BMS 52770 b



1 AN ACT concerning elections.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



4 Section 1. This Act may be referred to as the Small Donor 
5Democracy Matching System for Fair Elections Act.

6 Section 5. The Election Code is amended by changing 
7Section 9-25.1 and by adding Article 9A as follows:




8 (10 ILCS 5/9-25.1) (from Ch. 46, par. 9-25.1; formerly Ch. 
9  46, pars. 102, 103 and 104)



10 Sec. 9-25.1. Election interference. 

11 (a) As used in this Section, "public funds" means any 
12funds appropriated
by the Illinois General Assembly or by any 
13political subdivision of the
State of Illinois.

14 (b) No public funds shall be used to urge any elector to 
15vote for or
against any candidate or proposition, or be 
16appropriated for political or
campaign purposes to any 
17candidate or political organization. This Section
shall not 
18prohibit the use of public funds for dissemination of factual

19information relative to any proposition appearing on an 
20election ballot,
or for dissemination of information and 
21arguments published and distributed
under law in connection 
22with a proposition to amend the Constitution
of the State of 
 
 
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1Illinois. However, this Section does not apply to funds 
2expended in connection with the campaign contribution matching 
3program established in Article 9A of this Code or similar 
4systems of public financing for elections established by a 
5home rule unit of government. 

6 (c) The first time any person violates any provision of 
7this Section, that
person shall be guilty of a Class B 
8misdemeanor. Upon the second or any
subsequent violation of 
9any provision of this Section, the person violating
any 
10provision of this Section shall be guilty of a Class A 
11misdemeanor.

12(Source: P.A. 87-1052.)


13 (10 ILCS 5/Art. 9A heading new)
14
ARTICLE 9A.  CAMPAIGN CONTRIBUTION MATCHING


15 (10 ILCS 5/9A-5 new)
16 Sec. 9A-5. Legislative findings. The General Assembly 
17finds that the current campaign finance system:
18  (1) discourages many otherwise qualified candidates 
19 from running for office because of the need to raise 
20 substantial sums of money to be competitive and to enable 
21 them to adequately get their message out to voters;
22  (2) forces candidates to raise larger and larger 
23 percentages of money from interest groups that have a 
24 specific financial stake in matters before State 
 
 
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1 government to keep pace with rapidly increasing campaign 
2 costs;
3  (3) diminishes elected officials' accountability to 
4 their constituents by compelling them to be 
5 disproportionately accountable to the relatively small 
6 group of contributors who finance their election 
7 campaigns;
8  (4) diminishes the rights of all citizens to equal and 
9 meaningful participation in the democratic process;
10  (5) disadvantages challengers, because campaign 
11 contributors tend to give their money to incumbents, thus 
12 causing elections to be less competitive;
13  (6) burdens candidates with the incessant rigors of 
14 fundraising and thus decreases the time available to carry 
15 out their public responsibilities; and
16  (7) necessitates the creation of a Fair Elections 
17 Small Donor Democracy Matching System to address these 
18 concerns.

19 (10 ILCS 5/9A-10 new)
20 Sec. 9A-10. Scope. The program created under this Article 
21applies to candidates for the offices of Governor, Attorney 
22General, State Comptroller, State Treasurer, Secretary of 
23State, State Senator, and State Representative. Candidates for 
24these offices are eligible to participate in the matching 
25funds program established by this Article.

 
 
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1 (10 ILCS 5/9A-15 new)
2 Sec. 9A-15. Definitions. As used in this Article:
3 "Board" means the Campaign Finance Board of the State 
4Board of Elections created under this Article.
5 "Candidate" means any person who seeks nomination for 
6election, election to, or retention in public office as a 
7Constitutional State Officer or a member of the Illinois 
8Senate or General Assembly. A person seeks nomination for 
9election, election, or retention if he or she (1) takes the 
10action necessary under the laws of this State to attempt to 
11qualify for nomination for election, election to, or retention 
12in public office or (2) receives contributions or makes 
13expenditures, or gives consent for any other person to receive 
14contributions or make expenditures with a view to bringing 
15about his or her nomination for election or election to or 
16retention in public office.
17 "Contribution" has the meaning ascribed to it in Section 
189-1.4 of this Code, but does not include anything deemed an 
19independent expenditure under this Article.
20 "Coordination" means an expenditure made in cooperation, 
21consultation, or concert with or at the request or suggestion 
22of a candidate, an authorized committee of a candidate, a 
23political committee of a political party, or agents of the 
24candidate or candidate political committee, or any payment for 
25any communication which republishes, disseminates, or 
 
 
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1distributes, in whole or in part, any broadcast or any 
2written, graphic, or other form of campaign material prepared 
3by the candidate or his or her candidate political committee 
4or their agents.
5 "Election cycle" means the time beginning on the January 1 
6following a general election and ending on the December 31 
7following the next general election.
8 "Expenditure" means:
9  (1) a payment, distribution, purchase, loan, advance, 
10 deposit, gift of money, or anything of value, in 
11 connection with the nomination for election, election, or 
12 retention of any person to or in public office or in 
13 connection with any question of public policy; or
14  (2) a payment, distribution, purchase, loan, advance, 
15 deposit, gift of money, or anything of value that 
16 constitutes an electioneering communication made in 
17 concert or cooperation with or at the request, suggestion, 
18 or knowledge of a candidate, a political committee, or any 
19 of their agents; or a transfer of funds by a political 
20 committee to another political committee.
21 However, "expenditure" does not include:
22  (A) the use of real or personal property and the cost 
23 of invitations, food, and beverages, voluntarily provided 
24 by an individual in rendering voluntary personal services 
25 on the individual's residential premises for 
26 candidate-related activities; provided the value of the 
 
 
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1 service provided does not exceed an aggregate of $150 in a 
2 reporting period as the Board may further define; or
3  (B) sale of any food or beverage by a vendor for use in 
4 a candidate's campaign at a charge less than the normal 
5 comparable charge, if such charge for use in a candidate's 
6 campaign is at least equal to the cost of such food or 
7 beverage to the vendor.
8 "Fund" means the Small Donor Democracy Matching Fund 
9established under this Article.
10 "Immediate family" means a person's parents, siblings, 
11spouse, and children.
12 "Independent expenditure" means an expenditure by anyone, 
13including, but not limited to, any individual, corporation, 
14partnership, political action committee, association, or 
15party, that would otherwise constitute a contribution or 
16expenditure under this Article, but that is made without any 
17cooperation, consultation, or agreement with any political 
18candidate.
19 "Initial qualifying contribution" means a qualified 
20contribution used for the purpose of determining whether a 
21candidate has raised the minimum number of contributions to 
22participate in the small donor matching funds system under 
23this Article.
24 "Matching funds" means funds paid to a participating 
25candidate under this Article.
26 "Matching funds program" means the campaign donation 
 
 
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1matching funds program created under this Article.
2 "Nomination period" means the period specified under this 
3Code during which candidates must submit nomination papers for 
4any of the State offices covered by this Article.
5 "Non-participating candidate" means any candidate who is 
6not a participating candidate, including any candidate who has 
7not qualified for matching funds or who has elected not to 
8participate in the matching funds program.
9 "Participating candidate" means a candidate who qualifies 
10for matching funds under this Article and opts to participate 
11in the matching funds program created under this Article.
12 "Qualified contribution" means a monetary contribution not 
13less than $25 and not greater than the initial $150 of any 
14contribution made by a qualified contributor.
15 "Qualified contributor" means a natural person resident in 
16the State who will be eligible to vote within the current 
17election cycle other than the candidate, members of the 
18candidate's immediate family, and any political action 
19committee controlled by the candidate.
20 "Qualifying period" means the period beginning the day 
21after the date of the most recent general election for the 
22specific office or seat that a candidate is seeking and ending 
23on the day prior to the election (whether primary or general 
24election) for which the matching funds are sought.

25 (10 ILCS 5/9A-20 new)
 
 
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1 Sec. 9A-20. Small Donor Democracy Matching Fund.
2 (a) There is created a Small Donor Democracy Matching Fund 
3as a special fund in the State treasury. The Fund is 
4established for the purposes of:
5  (1) providing public financing for the election 
6 campaigns of participating candidates under this Article; 
7 and
8  (2) paying for the administrative and enforcement 
9 costs of the Board related to the matching funds program 
10 created by this Article.
11 (b) The General Assembly shall annually appropriate either 
12$1 per resident of this State or one-twentieth of 1% of the 
13State's annual budget, whichever is greater, to the Fund. The 
14General Assembly shall appropriate no more than $50,000,000 to 
15the Fund in any election cycle.
16 (c) Other revenue that shall be deposited into the Fund 
17includes:
18  (1) any funds returned by any participating candidate 
19 that remain unspent by a participating candidate following 
20 the date of the election for which they were distributed, 
21 in accordance with subsection (c) of Section 9A-55 of this 
22 Code;
23  (2) fines levied by the Board or courts against 
24 candidates for violations of this Code, except as 
25 otherwise provided by this Code; and
26  (3) voluntary donations made directly to the Fund.

 
 
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1 (10 ILCS 5/9A-25 new)
2 Sec. 9A-25. Eligibility for matching funds.
3 (a) To be eligible to be certified as a participating 
4candidate, a candidate must:
5  (1) During the qualifying period for the election 
6 involved, choose to participate in the matching funds 
7 program by filing with the Board a written application for 
8 certification as a participating candidate in such form as 
9 may be prescribed by the Board, containing the identity of 
10 the participating candidate, the office that the 
11 participating candidate seeks, and the participating 
12 candidate's signature, under penalty of perjury, 
13 certifying that:
14   (A) the participating candidate has complied since 
15 the last election or the effective date of this 
16 amendatory Act of the 103rd General Assembly, 
17 whichever is most recent, and will continue to comply, 
18 with the restrictions of this Article during the 
19 applicable election cycle; a candidate who has 
20 accepted impermissible contributions prior to filing 
21 to participate in this program shall return any such 
22 impermissible contributions prior to filing to 
23 participate in this matching funds program to the 
24 extent practical, as determined by the Board in 
25 adopted rules; and
 
 
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1   (B) the participating candidate's campaign 
2 committee has filed all campaign finance reports 
3 required by law during the applicable election cycle 
4 to date and that they are complete and accurate.
5  (2) Sign a participating candidate contract signifying 
6 the candidate's prior compliance and continuing commitment 
7 to comply with the requirements of this Article, to comply 
8 with the contribution limits set forth in this Article and 
9 in that contract, and to comply with any other 
10 requirements set forth in that contract.
11  (3) Meet all requirements of applicable law to be 
12 listed on the ballot.
13  (4) Before the close of the qualifying period, collect 
14 at least the following number of initial qualifying 
15 contributions for the following offices: 1,000 for 
16 candidates for Governor; 500 for candidates for Lieutenant 
17 Governor, Attorney General, State Comptroller, State 
18 Treasurer, and Secretary of State; 200 for candidates for 
19 State Senator; and 100 for candidates for State 
20 Representative.
21  Each initial qualifying contribution shall:
22   (A) have the initial qualified contributor's 
23 signature, or an electronic equivalent for any 
24 donations received on-line, signifying that the 
25 initial qualified contributor understands that the 
26 purpose of the initial qualifying contribution is to 
 
 
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1 help the candidate qualify for the matching funds 
2 program and that the contribution is made without 
3 coercion or reimbursement; and
4   (B) be acknowledged by a written receipt, or the 
5 electronic equivalent for any donation received 
6 on-line, to the initial qualified contributor, with a 
7 copy retained by the candidate; the receipt shall 
8 include the initial qualified contributor's signature, 
9 printed name, home address, and telephone number, if 
10 any, and the name of the candidate on whose behalf the 
11 contribution is made.
12  A contribution for which a candidate has not obtained 
13 a signed and fully completed receipt, or its electronic 
14 equivalent, shall not be counted as an initial qualifying 
15 contribution for the purpose of satisfying this 
16 qualification requirement.
17 (b) In addition to the requirements of subsection (a) of 
18this Section, in order for a candidate for Governor or 
19Lieutenant Governor to be eligible to be certified as a 
20participating candidate, the other member of the team of 
21candidates for the offices of Governor and Lieutenant Governor 
22must also be a participating candidate. 
23 (c) To remain eligible to continue to receive matching 
24funds under this Article, a candidate must:
25  (1) maintain records of all contributions, receipts, 
26 and expenditures as required by the Board;
 
 
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1  (2) obtain and furnish to the Board any information it 
2 may request relating to his or her campaign expenditures, 
3 contributions, and qualified contributions and furnish any 
4 documentation and other proof of compliance with this 
5 Article as may be requested by the Board; and
6  (3) remain in compliance with the requirements set 
7 forth in this Article.
8 (d) At the earliest practicable time after a candidate 
9files a written application for certification as a 
10participating candidate with the Board, in no event more than 
1110 business days, the Board shall certify in writing that the 
12candidate is or is not eligible. Eligibility may be revoked if 
13the Board determines, after appropriate due process, that a 
14candidate has committed a substantial violation of the 
15requirements of this Article, in which case all matching funds 
16granted to the candidate shall be repaid to the Fund. A 
17determination shall be made by the Board after an appropriate 
18hearing, affording due process to the aggrieved party, under 
19rules adopted by the Board that further define what 
20constitutes a "substantial violation" and that set forth the 
21procedures to be followed in connection with any such hearing.

22 (10 ILCS 5/9A-30 new)
23 Sec. 9A-30. Matching funds payments.
24 (a) A candidate who is certified as a participating 
25candidate shall receive payment of matching funds equal to 6 
 
 
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1times the amount of qualified contributions received by the 
2participating candidate during the election cycle with respect 
3to a single election subject to the aggregate limit on the 
4total amount of matching funds payments to a participating 
5candidate specified in subsection (b) of this Section, unless 
6the candidate has no opposition on the ballot. Unopposed 
7candidates shall not be eligible to receive matching funds 
8unless and until they cease to be unopposed; however, any 
9candidate who had already received matching funds under this 
10Article prior to becoming unopposed shall be entitled to 
11retain those funds and spend those funds in accordance with 
12Section 9A-50 of this Code.
13 (b) Subject to the requirements of subsection (a) of 
14Section 9A-40 of this Code, the aggregate amount of matching 
15funds payments that may be made to a participating candidate 
16during an election cycle may not exceed the following:
17  (1) $5,000,000 for candidates for Governor;
18  (2) $1,000,000 for candidates for Lieutenant Governor, 
19 Attorney General, State Comptroller, State Treasurer, and 
20 Secretary of State;
21  (3) $300,000 for candidates for State Senator; and
22  (4) $150,000 for candidates for State Representative.
23 (c) A participating candidate's application for matching 
24funds, including an initial request submitted with an 
25application for certification as a participating candidate, 
26shall be made using a form prescribed by the Board and shall be 
 
 
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1accompanied as necessary by initial qualifying contribution 
2receipts and any other information the Board requires by rule. 
3This application shall be accompanied by a signed statement 
4from the participating candidate indicating that all 
5information on the initial qualifying contribution receipts is 
6complete and accurate to the best of the participating 
7candidate's knowledge. The Board shall verify that a 
8participating candidate's qualified contributions meet all of 
9the requirements and limitations of this Article prior to the 
10disbursement of matching funds to the participating candidate.
11 (d) The Board shall make an initial payment of the 
12matching funds within 10 business days of the Board's 
13certification of a participating candidate's eligibility in 
14accordance with the provisions of this Article, or as soon 
15thereafter as is practicable.
16 (e) The Board shall establish a schedule for the 
17submission of matching funds payment requests, permitting a 
18participating candidate to submit a matching funds payment 
19request at least once per month, in accordance with a schedule 
20established by the Board.
21 (f) When 90% of the existing Fund has been distributed, 
22the Board shall give notice within 24 hours to all candidates 
23that only 10% of the Fund remains. Thereafter, the Board shall 
24make no further matching funds payments until after election 
25day and it shall only pay any requests submitted after notice 
26has been distributed under this subsection (f) proportionally, 
 
 
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1spread over all candidates and requests equally, in a manner 
2to be determined in greater detail pursuant to rules adopted 
3by the Board.

4 (10 ILCS 5/9A-35 new)
5 Sec. 9A-35. Limits on contributions.
6 (a) Subject to the requirements of subsection (a) of 
7Section 9A-40 of this Code, no candidate shall accept, 
8directly or indirectly, any contribution (or combination of 
9contributions) from the same person, corporation, partnership, 
10political party, political action committee, or other legal 
11entity in excess of $500. However, if a candidate in the 
12participating candidate's race exceeds the self-funding 
13thresholds established in subsection (h) of Section 9-8.5 of 
14this Code for that race, the limitation under this subsection 
15(a) is increased to $2,500.
16 (b) No participating candidate shall accept any 
17contribution (or combination of contributions) from any 
18person, corporation, partnership, or other legal entity who 
19lobbies members of the State executive or legislative 
20branches, within the meaning of the Lobbyist Registration Act, 
21or does business with the State. No participating candidate 
22shall encourage, support, cooperate, or coordinate with any 
23independent expenditure committee or any individual engaging 
24in independent expenditures, whether in support of the 
25candidate or in opposition to the candidate's opponent. The 
 
 
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1Board may adopt additional rules defining who constitutes a 
2"lobbyist" and who is deemed to be "doing business" with the 
3State within the meaning of this Article.
4 (c) No participating candidate shall make expenditures 
5from or use his or her own personal funds or the personal funds 
6or property held jointly with members of his or her immediate 
7family in connection with his or her nomination for election 
8or election, except as a contribution to his or her political 
9committee in an amount that does not exceed 10 times the 
10maximum contribution applicable under subsection (a) of this 
11Section. No participating candidate shall make expenditures 
12from or use other personal funds or property of his or her 
13immediate family in furtherance of his or her own campaign.

14 (10 ILCS 5/9A-40 new)
15 Sec. 9A-40. Adjustment.
16 (a) The Board shall revise the limits on contributions and 
17on overall contributions at least one year prior to the next 
18general primary election. The Board shall adjust them by an 
19amount equal to the change in the Consumer Price Index for all 
20Urban Consumers for all items published by the United States 
21Department of Labor for the 12-month calendar year preceding 
22readjustment. Amounts shall be rounded to the nearest $10. The 
23revised overall limits shall be published no later than one 
24year prior to the date of the next general primary election.
25 (b) The General Assembly shall review the amounts and 
 
 
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1numbers of required initial qualifying contributions, the 
2ratio of matching funds, the additional limits on 
3contributions, and the limits on overall contributions in the 
46-month period following each general election to determine if 
5they shall stay the same, after any adjustment for inflation 
6under subsection (a) of this Section, or be increased for the 
7next general primary election and general election.
8 (c) If the General Assembly determines that any of the 
9figures specified in subsection (b) of this Section should 
10change, then any proposed change, other than an adjustment for 
11inflation under subsection (a) of this Section, shall be 
12adopted for the next general election by a majority vote of 
13each chamber of the General Assembly and shall also be 
14submitted to the voters via a binding referendum for 
15ratification at the next consolidated election for approval or 
16rejection with respect to any future general elections.

17 (10 ILCS 5/9A-45 new)
18 Sec. 9A-45. Campaign accounts for participating 
19candidates. During an election cycle, each participating 
20candidate shall conduct all campaign financial activities 
21through a single political action committee, consistent with 
22subsection (b) of Section 9-2 of this Code, and shall comply 
23with any additional recordkeeping requirements imposed under 
24this Article by the Board.

 
 
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1 (10 ILCS 5/9A-50 new)
2 Sec. 9A-50. Expenditures of matching funds.
3 (a) A participating candidate shall use matching funds 
4only for direct campaign purposes. The Board may further 
5define the phrase "direct campaign purposes" by rule.
6 (b) Neither a participating candidate nor anyone acting on 
7his or her behalf shall use matching funds for:
8  (1) costs of legal defense in any campaign law 
9 enforcement proceeding;
10  (2) indirect campaign purposes, including, but not 
11 limited to:
12   (A) the participating candidate's personal support 
13 or compensation to the participating candidate or the 
14 participating candidate's immediate family;
15   (B) clothing, haircuts, and other items related to 
16 the participating candidate's personal appearance;
17   (C) a contribution or loan to the campaign 
18 committee of another candidate, a party committee, or 
19 other political committee;
20   (D) an independent expenditure;
21   (E) automobile purchases, tuition payments, or 
22 childcare costs;
23   (F) dues, fees, or gratuities at a country club, 
24 health club, recreational facility, or other 
25 nonpolitical organization unless part of a specific 
26 fundraising event that takes place on the 
 
 
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1 organization's premises;
2   (G) admission to a sporting event, theater, 
3 concert, or other entertainment event not part of a 
4 specific campaign activity; or
5   (H) gifts, except for brochures, buttons, signs, 
6 and other campaign materials and token gifts valued at 
7 not more than $50 that are for the purpose of 
8 expressing gratitude, condolences, or congratulations.

9 (10 ILCS 5/9A-55 new)
10 Sec. 9A-55. Disclosure requirements and procedures; return 
11of funds.
12 (a) Each participating candidate shall file reports of 
13contribution receipts and of expenditures of matching funds 
14and other campaign funds at such times and in such manners as 
15the Board may prescribe by rule, including, but not limited 
16to, reports containing information necessary to verify that 
17the qualified contributions received by participating 
18candidates and that the matching funds spent by participating 
19candidates comply with the restrictions and requirements of 
20this Article.
21 (b) The Board by rule shall adopt procedures for auditing 
22any reports filed with it as well as related reports filed with 
23the State Board of Elections and issuing a public report 
24summarizing the election results, the campaign expenditures 
25made in connection with offices covered by this Article, and 
 
 
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1the level and amount of matching funds provided to each 
2campaign.
3 (c) Within 90 days after the consolidated or general 
4election, every participating candidate who received matching 
5funds under this Article shall repay the Fund any unused 
6matching funds, calculated as follows: any unused campaign 
7funds shall be multiplied by a ratio consisting of the total 
8amount of matching funds received by the campaign in the 
9numerator and the total amount of campaign funds raised by the 
10campaign in the denominator. The amount of any repayment under 
11this subsection (c) shall not exceed the total amount of 
12matching funds paid to the campaign.

13 (10 ILCS 5/9A-60 new)
14 Sec. 9A-60. Joint campaign contributions and expenditures. 
15Where multiple candidates are otherwise permitted under State 
16law to engage in joint efforts to raise campaign contributions 
17or in joint campaign expenditures, any contribution received 
18at a joint fundraising event and any joint campaign 
19expenditures shall be appropriately allocated among the 
20participating candidates in a reasonable manner to be agreed 
21upon by those candidates participating in the activity. The 
22Board may review the reasonableness of any allocation under 
23this Section.

24 (10 ILCS 5/9A-65 new)
 
 
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1 Sec. 9A-65. Application of contribution and expenditure 
2limitations to certain political activities. Nothing in this 
3Article shall be construed to restrict candidates or their 
4agents from making appearances at events sponsored or paid for 
5by persons, political committees, or other entities that are 
6not in any way affiliated with the candidate or any agent of 
7the candidate. The costs of these events shall not be 
8considered contributions to or expenditures by the candidate 
9for purposes of this Article simply because the candidate or 
10agent appears at such an event. However, this provision does 
11not apply to events at which contributions are solicited on 
12behalf of the participating candidate.

13 (10 ILCS 5/9A-70 new)
14 Sec. 9A-70. Campaign Finance Board; general powers and 
15duties.
16 (a) A Campaign Finance Board is created within the State 
17Board of Elections, consisting of 5 members appointed by the 
18Governor with the advice and consent of the Senate. Each party 
19or caucus represented in the General Assembly shall have at 
20least one member on the Board. However, the Chairperson of the 
21Board shall not be affiliated with any political party. The 
22initial appointments required under this subsection (a) shall 
23be made within 6 months of the effective date of this 
24amendatory Act of 103rd General Assembly, and their terms 
25shall commence on the January 1 following appointment. The 
 
 
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1terms of office for the initial appointees shall be, except 
2for the Chairperson, determined by lot as follows:
3  (1) one member shall serve a term of one year;
4  (2) one member shall serve a term of 2 years;
5  (3) one member shall serve a term of 3 years;
6  (4) one member shall serve a term of 4 years; and
7  (5) the initial Chairperson shall serve a term of 5 
8 years.
9 Thereafter, each member shall be appointed for a term of 5 
10years, according to the original manner of appointment. In the 
11case of a vacancy in the office of a member, a member shall be 
12selected to serve the remainder of the unexpired term in the 
13same manner the vacating member was selected. Members shall 
14serve no more than 3 consecutive terms. No member of the Board 
15may be removed from office except for cause, after notice and a 
16hearing by the Senate.
17 (b) To be eligible to serve as a member of the Board, an 
18individual must meet all of the following qualifications 
19throughout the period of his or her service:
20  (1) the member must be a resident of Illinois, 
21 eligible and registered to vote;
22  (2) the member must agree that he or she and any 
23 members of his or her immediate family will not make any 
24 contributions to any candidate for any of the offices 
25 eligible to receive matching funds during his or her term 
26 of service;
 
 
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1  (3) the member must agree not to (i) serve as an 
2 officer of a political party or (ii) be a candidate or 
3 participate in any capacity in a campaign by a candidate 
4 for any of the offices eligible to receive public matching 
5 funds under this Article during his or her term of 
6 service;
7  (4) the member may not otherwise be an officer or 
8 employee of the State, nor a lobbyist engaged in lobbying 
9 any elected officials of the State; and
10  (5) the member must agree to undergo training under 
11 the supervision of the Chairperson of the Board.
12 (c) Subject to appropriations, the members of the Board 
13shall be compensated at a rate specified by law while 
14performing the work of the Board.
15 (d) The Board may employ necessary staff, including 
16attorneys and accountants, and may utilize the services of 
17employees of the State Board of Elections to assist the Board 
18in carrying out its duties. Subject to appropriations, the 
19total budget for the Board's operations shall not be less than 
20.01% of the overall State budget.
21 (e) The Board shall have the authority to adopt rules and 
22provide forms as it deems necessary to administer the matching 
23funds system created by this Article. The Board shall adopt 
24rules concerning the form in which contributions and 
25expenditures are to be reported, the periods during which such 
26reports must be filed, the measures for auditing and reporting 
 
 
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1on campaign contributions and expenditures, and the 
2verification required.
3 (f) The Board shall have the power to investigate all 
4matters relating to the performance of its functions and any 
5other matter relating to the proper administration of this 
6Article. It shall have the power to require the attendance of 
7witnesses, to examine and take testimony under oath of any 
8persons as it shall deem necessary, and to require the 
9production of books, accounts, papers, and any other relevant 
10evidence relative to such investigation.
11 (g) The Board shall develop a program for informing 
12candidates and the public about the small donor matching funds 
13system created by this Article. The Board may prepare and make 
14available educational materials, including compliance manuals 
15and summaries of the relevant provisions of this program. The 
16Board shall prepare and make available materials including, to 
17the extent feasible, computer software, to facilitate the task 
18of compliance with the disclosure and recordkeeping 
19requirements under this Article.
20 (h) The Board shall have the power to render advisory 
21opinions with respect to questions arising under this Article. 
22These opinions may be requested in writing by any candidate, 
23political committee, or member of the general public. The 
24Board shall adopt rules regarding submissions and responses to 
25such requests, including response times. The Board shall make 
26public its response to any such requests, as well as to any 
 
 
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1other formal rulings or interpretations it makes, including by 
2posting them on its website, if practicable.
3 (i) The Board shall have the authority to implement any 
4system established for the regulation of inauguration and 
5transition donations and expenditures, including any related 
6penalties. It shall also have the authority to adopt and 
7implement a system for handling the transition from the 
8existing campaign finance system and any pre-existing 
9political committees and contributions to the small donor 
10matching funds system implemented by this Article.
11 (j) The Board may take such other actions as are necessary 
12and proper to carry out its functions and the purposes of 
13adoption of a small donor matching funds system. The specific 
14grants of power under this Section do not constitute and shall 
15not be construed as limitations on the other proper and 
16necessary powers of the Board.
17 (k) All final administrative decisions under this Article 
18are subject to judicial review under the Administrative Review 
19Law.

20 (10 ILCS 5/9A-75 new)
21 Sec. 9A-75. Public campaign financing program penalties.
22 (a) If a participating candidate knowingly accepts or 
23spends matching funds in violation of this Article, then the 
24candidate shall repay to the Fund a civil fine in an amount 
25equal to twice the value of the funding unlawfully accepted or 
 
 
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1spent.
2 (b) The Board shall, after a hearing affording the 
3aggrieved party due process, have the authority to impose the 
4fine created by this Section, to order repayment of 
5overpayments that were not knowingly received, and to take any 
6other appropriate action, pursuant to any additional rules 
7concerning such hearings as the Board shall adopt.
8 (c) Any member of the public, as well as the Board on its 
9own initiative, shall have standing to file a complaint with 
10the Board alleging a violation of this Article. If a complaint 
11is filed by an opposing candidate, or in coordination with an 
12opposing candidate's campaign, the Board shall have the option 
13of awarding costs and attorneys' fees if the complaint is 
14found to have been lacking a reasonable basis.
15 (d) The Board shall adopt appropriate rules guaranteeing 
16notice and due process to anyone accused of violating this 
17Article and setting forth the process the Board will follow in 
18investigating and adjudicating any such complaint. 

19 Section 10. The State Finance Act is amended by adding 
20Section 5.990 as follows:

21 (30 ILCS 105/5.990 new)
22 Sec. 5.990. The Small Donor Democracy Matching Fund.

23 Section 97. Severability. The provisions of this Act are 
 
 
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1severable under Section 1.31 of the Statute on Statutes.


2 Section 99. Effective date. This Act takes effect upon 
3becoming law.