Bill Text: IL SB1477 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Election Code. Requires loan agreements to be included in certain campaign filings. Requires loans made to the committee to have an interest rate, which must be at the prevailing market interest rate at the time the agreement is executed. Makes conforming changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2019-01-09 - Session Sine Die [SB1477 Detail]

Download: Illinois-2017-SB1477-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 SB1477 Introduced 2/9/2017, by Sen. Melinda Bush SYNOPSIS AS INTRODUCED:
10 ILCS 5/9-8.10
10 ILCS 5/9-11 from Ch. 46, par. 9-11
Amends the Election Code. Requires loan agreements to be included in certain campaign filings. Requires loans made to the committee to have an interest rate, which must be at the prevailing market interest rate at the time the agreement as executed. Makes conforming changes. Effective immediately.
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A BILL FOR
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AN ACT concerning elections.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Election Code is amended by changing
Sections 9-8.10 and 9-11 as follows:
(10 ILCS 5/9-8.10)
Sec. 9-8.10. Use of political committee and other reporting
organization funds.
(a) A political committee shall not make expenditures:
(1) In violation of any law of the United States or of
this State.
(2) Clearly in excess of the fair market value of the
services, materials, facilities, or other things of value
received in exchange.
(3) For satisfaction or repayment of any debts other
than loans made to the committee or to the public official
or candidate on behalf of the committee or repayment of
goods and services purchased by the committee under a
credit agreement. Nothing in this Section authorizes the
use of campaign funds to repay personal loans. The
repayments shall be made by check written to the person who
made the loan or credit agreement. The terms and conditions
of any loan or credit agreement to a committee shall be set

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forth in a written agreement, which shall be included in
the quarterly report covering the time period during which
such an agreement was made and all subsequent quarterly
reports until the loan and applicable interest is repaid,
including but not limited to the method and amount of
repayment, that shall be executed by the chairman or
treasurer of the committee at the time of the loan or
credit agreement. The loan or agreement shall also set
forth the rate of interest for the loan, which must be at
if any, which may not substantially exceed the prevailing
market interest rate at the time the agreement is executed.
(4) For the satisfaction or repayment of any debts or
for the payment of any expenses relating to a personal
residence. Campaign funds may not be used as collateral for
home mortgages.
(5) For clothing or personal laundry expenses, except
clothing items rented by the public official or candidate
for his or her own use exclusively for a specific
campaign-related event, provided that committees may
purchase costumes, novelty items, or other accessories
worn primarily to advertise the candidacy.
(6) For the travel expenses of any person unless the
travel is necessary for fulfillment of political,
governmental, or public policy duties, activities, or
purposes.
(7) For membership or club dues charged by

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organizations, clubs, or facilities that are primarily
engaged in providing health, exercise, or recreational
services; provided, however, that funds received under
this Article may be used to rent the clubs or facilities
for a specific campaign-related event.
(8) In payment for anything of value or for
reimbursement of any expenditure for which any person has
been reimbursed by the State or any person. For purposes of
this item (8), a per diem allowance is not a reimbursement.
(9) For the purchase of or installment payment for a
motor vehicle unless the political committee can
demonstrate that purchase of a motor vehicle is more
cost-effective than leasing a motor vehicle as permitted
under this item (9). A political committee may lease or
purchase and insure, maintain, and repair a motor vehicle
if the vehicle will be used primarily for campaign purposes
or for the performance of governmental duties. A committee
shall not make expenditures for use of the vehicle for
non-campaign or non-governmental purposes. Persons using
vehicles not purchased or leased by a political committee
may be reimbursed for actual mileage for the use of the
vehicle for campaign purposes or for the performance of
governmental duties. The mileage reimbursements shall be
made at a rate not to exceed the standard mileage rate
method for computation of business expenses under the
Internal Revenue Code.

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(10) Directly for an individual's tuition or other
educational expenses, except for governmental or political
purposes directly related to a candidate's or public
official's duties and responsibilities.
(11) For payments to a public official or candidate or
his or her family member unless for compensation for
services actually rendered by that person. The provisions
of this item (11) do not apply to expenditures by a
political committee in an aggregate amount not exceeding
the amount of funds reported to and certified by the State
Board or county clerk as available as of June 30, 1998, in
the semi-annual report of contributions and expenditures
filed by the political committee for the period concluding
June 30, 1998.
(b) The Board shall have the authority to investigate, upon
receipt of a verified complaint, violations of the provisions
of this Section. The Board may levy a fine on any person who
knowingly makes expenditures in violation of this Section and
on any person who knowingly makes a malicious and false
accusation of a violation of this Section. The Board may act
under this subsection only upon the affirmative vote of at
least 5 of its members. The fine shall not exceed $500 for each
expenditure of $500 or less and shall not exceed the amount of
the expenditure plus $500 for each expenditure greater than
$500. The Board shall also have the authority to render rulings
and issue opinions relating to compliance with this Section.

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(c) Nothing in this Section prohibits the expenditure of
funds of a political committee controlled by an officeholder or
by a candidate to defray the customary and reasonable expenses
of an officeholder in connection with the performance of
governmental and public service functions.
(d) Nothing in this Section prohibits the funds of a
political committee which is controlled by a person convicted
of a violation of any of the offenses listed in subsection (a)
of Section 10 of the Public Corruption Profit Forfeiture Act
from being forfeited to the State under Section 15 of the
Public Corruption Profit Forfeiture Act.
(Source: P.A. 96-1019, eff. 1-1-11.)
(10 ILCS 5/9-11) (from Ch. 46, par. 9-11)
Sec. 9-11. Financial reports.
(a) Each quarterly report of campaign contributions,
expenditures, and independent expenditures under Section 9-10
shall disclose the following:
(1) the name and address of the political committee;
(2) the name and address of the person submitting the
report on behalf of the committee, if other than the
chairman or treasurer;
(3) the amount of funds on hand at the beginning of the
reporting period;
(4) the full name and mailing address of each person
who has made one or more contributions to or for the

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committee within the reporting period in an aggregate
amount or value in excess of $150, together with the
amounts and dates of those contributions, and, if the
contributor is an individual who contributed more than
$500, the occupation and employer of the contributor or, if
the occupation and employer of the contributor are unknown,
a statement that the committee has made a good faith effort
to ascertain this information;
(5) the total sum of individual contributions made to
or for the committee during the reporting period and not
reported under item (4);
(6) the name and address of each political committee
from which the reporting committee received, or to which
that committee made, any transfer of funds in the aggregate
amount or value in excess of $150, together with the
amounts and dates of all transfers;
(7) the total sum of transfers made to or from the
committee during the reporting period and not reported
under item (6);
(8) each loan to or from any person, to or from any
political committee, or to or from any financial
institution within the reporting period by or to the
committee in an aggregate amount or value in excess of
$150, together with the full names and mailing addresses of
the lender and endorsers, if any; the dates and amounts of
the loans; the written agreement or promissory note

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describing the terms of the loan, including the interest
rate and maturity date of the loan; and, if a lender or
endorser is an individual who loaned or endorsed a loan of
more than $500, the occupation and employer of that
individual or, if the occupation and employer of the
individual are unknown, a statement that the committee has
made a good faith effort to ascertain this information;
(9) the total amount of proceeds received by the
committee from (i) the sale of tickets for each dinner,
luncheon, cocktail party, rally, and other fund-raising
events; (ii) mass collections made at those events; and
(iii) sales of items such as political campaign pins,
buttons, badges, flags, emblems, hats, banners,
literature, and similar materials;
(10) each contribution, rebate, refund, income from
investments, or other receipt in excess of $150 received by
the committee not otherwise listed under items (4) through
(9) and, if the contributor is an individual who
contributed more than $500, the occupation and employer of
the contributor or, if the occupation and employer of the
contributor are unknown, a statement that the committee has
made a good faith effort to ascertain this information;
(11) the total sum of all receipts by or for the
committee or candidate during the reporting period;
(12) the full name and mailing address of each person
to whom expenditures have been made by the committee or

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candidate within the reporting period in an aggregate
amount or value in excess of $150; the amount, date, and
purpose of each of those expenditures; and the question of
public policy or the name and address of, and the office
sought by, each candidate on whose behalf that expenditure
was made;
(13) the full name and mailing address of each person
to whom an expenditure for personal services, salaries, and
reimbursed expenses in excess of $150 has been made and
that is not otherwise reported, including the amount, date,
and purpose of the expenditure;
(14) the value of each asset held as an investment, as
of the final day of the reporting period;
(15) the total sum of expenditures made by the
committee during the reporting period; and
(16) the full name and mailing address of each person
to whom the committee owes debts or obligations in excess
of $150 and the amount of those debts or obligations.
For purposes of reporting campaign receipts and expenses,
income from investments shall be included as receipts during
the reporting period they are actually received. The gross
purchase price of each investment shall be reported as an
expenditure at time of purchase. Net proceeds from the sale of
an investment shall be reported as a receipt. During the period
investments are held they shall be identified by name and
quantity of security or instrument on each semi-annual report

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during the period.
(b) Each report of a campaign contribution of $1,000 or
more required under subsection (c) of Section 9-10 shall
disclose the following:
(1) the name and address of the political committee;
(2) the name and address of the person submitting the
report on behalf of the committee, if other than the
chairman or treasurer; and
(3) the full name and mailing address of each person
who has made a contribution of $1,000 or more.
(c) Each quarterly report shall include the following
information regarding any independent expenditures made during
the reporting period: (1) the full name and mailing address of
each person to whom an expenditure in excess of $150 has been
made in connection with an independent expenditure; (2) the
amount, date, and purpose of such expenditure; (3) a statement
whether the independent expenditure was in support of or in
opposition to a particular candidate; (4) the name of the
candidate; (5) the office and, when applicable, district,
sought by the candidate; and (6) a certification, under penalty
of perjury, that such expenditure was not made in cooperation,
consultation, or concert with, or at the request or suggestion
of, any candidate or any authorized committee or agent of such
committee. The report shall also include (I) the total of all
independent expenditures of $150 or less made during the
reporting period and (II) the total amount of all independent

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expenditures made during the reporting period.
(d) The Board shall by rule define a "good faith effort".
The reports of campaign contributions filed under this
Article shall be cumulative during the reporting period to
which they relate.
(e) Each report shall be verified, dated, and signed by
either the treasurer of the political committee or the
candidate on whose behalf the report is filed and shall contain
the following verification:
"I declare that this report (including any accompanying
schedules and statements) has been examined by me and, to the
best of my knowledge and belief, is a true, correct, and
complete report as required by Article 9 of the Election Code.
I understand that willfully filing a false or incomplete
statement is subject to a civil penalty of up to $5,000.".
(f) A political committee may amend a report filed under
subsection (a) or (b). The Board may reduce or waive a fine if
the amendment is due to a technical or inadvertent error and
the political committee files the amended report, except that a
report filed under subsection (b) must be amended within 5
business days. The State Board shall ensure that a description
of the amended information is available to the public. The
Board may promulgate rules to enforce this subsection.
(Source: P.A. 96-832, eff. 1-1-11.)
Section 99. Effective date. This Act takes effect upon
becoming law.