98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3256

 

Introduced , by Rep. Elaine Nekritz

 

SYNOPSIS AS INTRODUCED:
 
10 ILCS 5/9-1.15
10 ILCS 5/9-7.6 new
10 ILCS 5/9-10  from Ch. 46, par. 9-10
10 ILCS 5/9-11  from Ch. 46, par. 9-11

    Amends the Disclosure and Regulation of Campaign Contributions and Expenditures Article of the Election Code. Provides that there is a rebuttable presumption that specified expenditures do not qualify as independent expenditures. Requires a nonprofit organization, except for a labor union, that accepts contributions, makes contributions, or makes expenditures during any 12-month period in an aggregate amount exceeding $5,000 on behalf of or in opposition to public officials, candidates for public office, or a question of public policy or for electioneering communications to register with the State Board of Elections in accordance with the Board's rules and file contribution and expenditure reports and imposes certain requirements regarding the reports. Changes requirements for reports filed by a political committee that makes independent expenditures and provides that the Board shall impose a civil penalty for failure to file a report. Provides that quarterly report of campaign contributions, expenditures, and independent expenditures shall disclose the beneficial owner of any entity that contributes more than $10,000 to a ballot initiative committee or an independent expenditure committee during any election period. Effective immediately.


LRB098 10735 HLH 41079 b

 

 

A BILL FOR

 

HB3256LRB098 10735 HLH 41079 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Election Code is amended by changing
5Sections 9-1.15, 9-10, and 9-11 and by adding Section 9-7.6 as
6follows:
 
7    (10 ILCS 5/9-1.15)
8    Sec. 9-1.15. Independent expenditure. "Independent
9expenditure" means any payment, gift, donation, or expenditure
10of funds (i) by a natural person or political committee for the
11purpose of making electioneering communications or of
12expressly advocating for or against the nomination for
13election, election, retention, or defeat of a clearly
14identifiable public official or candidate or for or against any
15question of public policy to be submitted to the voters and
16(ii) that is not made in connection, consultation, or concert
17with or at the request or suggestion of the public official or
18candidate, the public official's or candidate's designated
19political committee or campaign, or the agent or agents of the
20public official, candidate, or political committee or
21campaign. There shall be a rebuttable presumption that the
22following expenditures do not qualify as independent
23expenditures:

 

 

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1        (1) an expenditure made by a person in cooperation,
2    consultation, or concert with, at the request, suggestion
3    or direction of, or pursuant to a general or particular
4    understanding with (A) a candidate, candidate political
5    committee, political action committee, or political party
6    committee, or (B) a consultant or other agent acting on
7    behalf of a candidate, candidate political committee,
8    political action committee, or political party committee;
9        (2) an expenditure made by a person for the production,
10    dissemination, distribution, or publication, in whole or
11    in substantial part, of any broadcast or any written,
12    graphic, or other form of political advertising or campaign
13    communication prepared by (A) a candidate, candidate
14    political committee, political action committee, or
15    political party committee, or (B) a consultant or other
16    agent acting on behalf of a candidate, candidate political
17    committee, political action committee, or political party
18    committee;
19        (3) an expenditure made by a person based on
20    information about a candidate's, political action
21    committee's, or political party committee's plans,
22    projects, or needs, provided by (A) a candidate, candidate
23    political committee, political action committee, or
24    political party committee, or (B) a consultant or other
25    agent acting on behalf of a candidate, candidate political
26    committee, political action committee, or political party

 

 

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1    committee, with the intent that such expenditure be made;
2        (4) an expenditure made by an individual who, in the
3    same election cycle, is serving or has served as the
4    chairman or treasurer of a candidate, candidate political
5    committee, political action committee, or political party
6    committee, benefiting from such expenditure, or in any
7    other executive or policymaking position, including as a
8    member, employee, fundraiser, consultant, or other agent
9    of a candidate, candidate political committee, political
10    action committee, or political party committee;
11        (5) an expenditure made by a person whose officer,
12    director, member, employee, fundraiser, consultant, or
13    other agent who serves the person in an executive or
14    policymaking position also serves as or has served in the
15    same election cycle as the candidate or the chairman or
16    treasurer of a candidate political committee, political
17    action committee, or political party committee, benefiting
18    from such expenditure, or in any other executive or
19    policymaking position of a candidate political committee,
20    political action committee, or political party committee;
21        (6) an expenditure made by a person for fundraising
22    activities (A) with or for a candidate, candidate political
23    committee, political action committee, or political party
24    committee, or a consultant or other agent acting on behalf
25    of a candidate, candidate political committee, political
26    action committee, or political party committee, or (B) for

 

 

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1    the solicitation or receipt of contributions on behalf of a
2    candidate, candidate political committee, political action
3    committee, or political party committee, or a consultant or
4    other agent acting on behalf of a candidate, candidate
5    political committee, political action committee, or
6    political party committee;
7        (7) an expenditure made by a person based on
8    information about a candidate's campaign plans, projects,
9    or needs that is directly or indirectly provided by a
10    candidate, the candidate's candidate political committee,
11    political action committee, or political party committee,
12    or a consultant or other agent acting on behalf of such
13    candidate, candidate political committee, political action
14    committee, or political party committee, to the person
15    making the expenditure or such person's agent, with an
16    express or tacit understanding that such person is
17    considering making the expenditure;
18        (8) an expenditure made by a person for a communication
19    that clearly identifies a candidate during an election
20    campaign, if the person making the expenditure, or such
21    person's agent, has informed the candidate who benefits
22    from the expenditure, that candidate's candidate political
23    committee, political action committee, or political party
24    committee, or a consultant or other agent acting on behalf
25    of the benefiting candidate, candidate political
26    committee, political action committee, or political party

 

 

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1    committee, concerning the communication's contents, or of
2    the intended audience, timing, location, or mode or
3    frequency of dissemination;
4        (9) an expenditure made by a person or an entity for
5    consultant or creative services, including, but not
6    limited to, services related to communications strategy or
7    design or campaign strategy, to be used to promote or
8    oppose a candidate's election to office if the provider of
9    such services is also providing consultant or creative
10    services to such candidate, such candidate's candidate
11    political committee, or to any opposing candidate in the
12    same primary or election, or to such opposing candidate's
13    candidate political committee. For purposes of this
14    subdivision, communications strategy or design does not
15    include the costs of printing or costs for the use of a
16    medium for the purpose of communications;
17        (10) an expenditure made by a person or an entity on or
18    after January 1 in the year of an election in which a
19    candidate is seeking office that benefits such candidate
20    when such person or entity has hired an individual as an
21    employee or consultant and such individual was an employee
22    of or consultant to such candidate during any part of the
23    18-month period preceding such expenditure; and
24        (11) an expenditure made by a person or an entity on or
25    after January 1 in the year of an election in which a
26    candidate is seeking office that benefits such candidate

 

 

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1    when such person or entity making the expenditure has hired
2    a campaign-related vendor that has been hired by such
3    candidate during the same election cycle. For purposes of
4    this subdivision, "campaign-related vendor" includes, but
5    is not limited to, vendors that provide the following
6    services: polling, mail design, mail strategy, political
7    strategy, general campaign advice, or telephone banking.
8(Source: P.A. 96-832, eff. 7-1-10; 97-766, eff. 7-6-12.)
 
9    (10 ILCS 5/9-7.6 new)
10    Sec. 9-7.6. Nonprofit organization registration and
11disclosure.
12    (a) Each nonprofit organization, except for a labor union,
13that accepts contributions, makes contributions, or makes
14expenditures during any 12-month period in an aggregate amount
15exceeding $5,000 (i) on behalf of or in opposition to public
16officials, candidates for public office, or a question of
17public policy or (ii) for electioneering communications shall
18register with the State Board of Elections. The Board by rule
19shall prescribe the registration procedure and form. The
20registration form shall require the following information:
21        (1) The registrant's name, address, and purpose.
22        (2) The name, address, and position of each custodian
23    of the registrant's financial books, accounts, and
24    records.
25        (3) The name, address, and position of each of the

 

 

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1    registrant's principal officers.
2    (b) Each nonprofit organization required to register under
3subsection (a) shall file contribution and expenditure reports
4with the Board. The Board by rule shall prescribe the form,
5which shall require the following information:
6        (1) The organization's name, address, and purpose.
7        (2) The amount of funds on hand at the beginning of the
8    reporting period.
9        (3) The full name and address of each person who has
10    made one or more contributions to or for the organization
11    within the reporting period in an aggregate amount or value
12    in excess of $150, together with the amount and date of the
13    contributions, and if a contributor is an individual who
14    contributed more than $500, the occupation and employer of
15    the contributor or, if the occupation and employer of the
16    contributor are unknown, a statement that the organization
17    has made a good faith effort to ascertain this information.
18        (4) The total sum of individual contributions made to
19    or for the organization during the reporting period and not
20    reported in item (3).
21        (5) The name and address of each organization and
22    political committee from which the reporting organization
23    received, or to which that organization made, any transfer
24    of funds in an aggregate amount or value in excess of $150,
25    together with the amounts and dates of the transfers.
26        (6) The total sum of transfers made to or from the

 

 

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1    organization during the reporting period and not reported
2    in item (5).
3        (7) Each loan to or from any person within the
4    reporting period by or to the organization in an aggregate
5    amount or value in excess of $150, together with the full
6    names and mailing addresses of the lender and endorsers, if
7    any, and the date and amount of the loans, and if a lender
8    or endorser is an individual who loaned or endorsed a loan
9    of more than $500, the occupation and employer of the
10    individual or, if the occupation and employer of the
11    individual are unknown, a statement that the organization
12    has made a good faith effort to ascertain this information.
13        (8) The total amount of proceeds received by the
14    organization from (i) the sale of tickets for each dinner,
15    luncheon, cocktail party, rally, and other fundraising
16    event, (ii) mass collections made at those events, and
17    (iii) sales of items such as buttons, badges, flags,
18    emblems, hats, banners, literature, and similar materials.
19        (9) Each contribution, rebate, refund, or other
20    receipt in excess of $150 received by the organization not
21    otherwise listed under items (3) through (8), and if a
22    contributor is an individual who contributed more than
23    $500, the occupation and employer of the contributor or, if
24    the occupation and employer of the contributor are unknown,
25    a statement that the organization has made a good faith
26    effort to ascertain this information.

 

 

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1        (10) The total sum of all receipts by or for the
2    organization during the reporting period.
3        (11) The full name and mailing address of each person
4    to whom expenditures have been made by the organization
5    within the reporting period in an aggregate amount or value
6    in excess of $150, the amount, date, and purpose of each
7    expenditure, and the question of public policy on behalf of
8    which the expenditure was made.
9        (12) The full name and mailing address of each person
10    to whom an expenditure for personal services, salaries, and
11    reimbursed expenses in excess of $150 has been made and
12    which is not otherwise reported, including the amount,
13    date, and purpose of the expenditure.
14        (13) The total sum of expenditures made by the
15    organization during the reporting period.
16        (14) The full name and mailing address of each person
17    to whom the organization owes debts or obligations in
18    excess of $150 and the amount of the debts or obligations.
19    The State Board by rule shall define a "good faith effort".
20    (c) The reports required under subsection (b) shall be
21filed at the same times and for the same reporting periods as
22reports of campaign contributions and semi-annual reports of
23campaign contributions and expenditures required by this
24Article of political committees. The reports required under
25subsection (b) shall be available for public inspection and
26copying in the same manner as reports filed by political

 

 

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1committees. The Board may charge a fee that covers the costs of
2copying and distribution, if any.
3    (d) An organization required to file reports under
4subsection (b) shall include a statement on all literature and
5advertisements soliciting funds stating the following:
6    "A copy of our report filed with the State Board of
7Elections is (or will be) available for purchase from the State
8Board of Elections, Springfield, Illinois".
 
9    (10 ILCS 5/9-10)  (from Ch. 46, par. 9-10)
10    Sec. 9-10. Disclosure of contributions and expenditures.
11    (a) The treasurer of every political committee shall file
12with the Board reports of campaign contributions and
13expenditures as required by this Section on forms to be
14prescribed or approved by the Board.
15    (b) Every political committee shall file quarterly reports
16of campaign contributions, expenditures, and independent
17expenditures. The reports shall cover the period January 1
18through March 31, April 1 through June 30, July 1 through
19September 30, and October 1 through December 31 of each year. A
20political committee shall file quarterly reports no later than
21the 15th day of the month following each period. Reports of
22contributions and expenditures must be filed to cover the
23prescribed time periods even though no contributions or
24expenditures may have been received or made during the period.
25The Board shall assess a civil penalty not to exceed $5,000 for

 

 

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1failure to file a report required by this subsection. The fine,
2however, shall not exceed $1,000 for a first violation if the
3committee files less than 10 days after the deadline. There
4shall be no fine if the report is mailed and postmarked at
5least 72 hours prior to the filing deadline. When considering
6the amount of the fine to be imposed, the Board shall consider
7whether the violation was committed inadvertently,
8negligently, knowingly, or intentionally and any past
9violations of this Section.
10    (c) A political committee shall file a report of any
11contribution of $1,000 or more electronically with the Board
12within 5 business days after receipt of the contribution,
13except that the report shall be filed within 2 business days
14after receipt if (i) the contribution is received 30 or fewer
15days before the date of an election and (ii) the political
16committee supports or opposes a candidate or public question on
17the ballot at that election or makes expenditures in excess of
18$500 on behalf of or in opposition to a candidate, candidates,
19a public question, or public questions on the ballot at that
20election. The State Board shall allow filings of reports of
21contributions of $1,000 or more by political committees that
22are not required to file electronically to be made by facsimile
23transmission. The Board shall assess a civil penalty for
24failure to file a report required by this subsection. Failure
25to report each contribution is a separate violation of this
26subsection. The Board shall impose fines for willful or wanton

 

 

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1violations of this subsection (c) not to exceed 150% of the
2total amount of the contributions that were untimely reported,
3but in no case shall it be less than 10% of the total amount of
4the contributions that were untimely reported. When
5considering the amount of the fine to be imposed for willful or
6wanton violations, the Board shall consider the number of days
7the contribution was reported late and past violations of this
8Section and Section 9-3. The Board may impose a fine for
9negligent or inadvertent violations of this subsection not to
10exceed 50% of the total amount of the contributions that were
11untimely reported, or the Board may waive the fine. When
12considering whether to impose a fine and the amount of the
13fine, the Board shall consider the following factors: (1)
14whether the political committee made an attempt to disclose the
15contribution and any attempts made to correct the violation,
16(2) whether the violation is attributed to a clerical or
17computer error, (3) the amount of the contribution, (4) whether
18the violation arose from a discrepancy between the date the
19contribution was reported transferred by a political committee
20and the date the contribution was received by a political
21committee, (5) the number of days the contribution was reported
22late, and (6) past violations of this Section and Section 9-3
23by the political committee.
24    (d) For the purpose of this Section, a contribution is
25considered received on the date (i) a monetary contribution was
26deposited in a bank, financial institution, or other repository

 

 

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1of funds for the committee, (ii) the date a committee receives
2notice a monetary contribution was deposited by an entity used
3to process financial transactions by credit card or other
4entity used for processing a monetary contribution that was
5deposited in a bank, financial institution, or other repository
6of funds for the committee, or (iii) the public official,
7candidate, or political committee receives the notification of
8contribution of goods or services as required under subsection
9(b) of Section 9-6.
10    (e) A political committee that makes independent
11expenditures at any time of $1,000 or more for goods to be
12delivered or services to be performed during (i) a quarterly
13disclosure the period that contains 30 days or fewer before an
14election or (ii) during the first quarter of the calendar year,
15if made in relation to a candidate seeking election in the
16consolidated election in that same year, shall electronically
17file a report with the Board within 5 business days after
18making the independent expenditure. The report shall contain
19the information required in Section 9-11(c) of this Article.
20The Board shall assess a civil penalty for failure to file a
21report required by this subsection. Failure to report each
22expenditure is a separate violation of this subsection. The
23Board shall impose fines for willful or wanton violations of
24this subsection (e) not to exceed 150% of the total amount of
25the expenditures that were untimely reported, but in no case
26shall it be less than 10% of the total amount of the

 

 

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1expenditures that were untimely reported. When considering the
2amount of the fine to be imposed for willful or wanton
3violations, the Board shall consider the number of days the
4expenditure was reported late and past violations of this
5Section and Section 9-3. The Board may impose a fine for
6negligent or inadvertent violations of this subsection not to
7exceed 50% of the total amount of the expenditures that were
8untimely reported, or the Board may waive the fine. When
9considering whether to impose a fine and the amount of the
10fine, the Board shall consider the following factors: (1)
11whether the political committee made an attempt to disclose the
12expenditure and any attempts made to correct the violation, (2)
13whether the violation is attributed to a clerical or computer
14error, (3) the amount of the expenditure, (4) the number of
15days the expenditure was reported late, and (5) past violations
16of this Section and Section 9-3 by the political committee.
17    (e-5) An independent expenditure committee that makes an
18independent expenditure supporting or opposing a public
19official or candidate that, alone or in combination with any
20other independent expenditure made by that independent
21expenditure committee supporting or opposing that public
22official or candidate during the election cycle, equals an
23aggregate value of more than (i) $250,000 for statewide office
24or (ii) $100,000 for all other elective offices must file a
25written disclosure with the State Board of Elections within 2
26business days after making any expenditure that results in the

 

 

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1independent expenditure committee exceeding the applicable
2threshold. The Board shall assess a civil penalty against an
3independent expenditure committee for failure to file the
4disclosure required by this subsection equal to 5% of the
5unreported expenditure for each day the report is filed late,
6but not to exceed 150% of the unreported expenditure not to
7exceed (i) $500 for an initial failure to file the required
8disclosure and (ii) $1,000 for each subsequent failure to file
9the required disclosure.
10    (f) A copy of each report or statement filed under this
11Article shall be preserved by the person filing it for a period
12of two years from the date of filing.
13(Source: P.A. 96-832, eff. 1-1-11; 97-766, eff. 7-6-12.)
 
14    (10 ILCS 5/9-11)  (from Ch. 46, par. 9-11)
15    Sec. 9-11. Financial reports.
16    (a) Each quarterly report of campaign contributions,
17expenditures, and independent expenditures under Section 9-10
18shall disclose the following:
19        (1) the name and address of the political committee;
20        (2) the name and address of the person submitting the
21    report on behalf of the committee, if other than the
22    chairman or treasurer;
23        (3) the amount of funds on hand at the beginning of the
24    reporting period;
25        (4) the full name and mailing address of each person

 

 

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1    who has made one or more contributions to or for the
2    committee within the reporting period in an aggregate
3    amount or value in excess of $150, together with the
4    amounts and dates of those contributions, and, if the
5    contributor is an individual who contributed more than
6    $500, the occupation and employer of the contributor or, if
7    the occupation and employer of the contributor are unknown,
8    a statement that the committee has made a good faith effort
9    to ascertain this information;
10        (5) the total sum of individual contributions made to
11    or for the committee during the reporting period and not
12    reported under item (4);
13        (6) the name and address of each political committee
14    from which the reporting committee received, or to which
15    that committee made, any transfer of funds in the aggregate
16    amount or value in excess of $150, together with the
17    amounts and dates of all transfers;
18        (7) the total sum of transfers made to or from the
19    committee during the reporting period and not reported
20    under item (6);
21        (8) each loan to or from any person, political
22    committee, or financial institution within the reporting
23    period by or to the committee in an aggregate amount or
24    value in excess of $150, together with the full names and
25    mailing addresses of the lender and endorsers, if any; the
26    dates and amounts of the loans; and, if a lender or

 

 

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1    endorser is an individual who loaned or endorsed a loan of
2    more than $500, the occupation and employer of that
3    individual or, if the occupation and employer of the
4    individual are unknown, a statement that the committee has
5    made a good faith effort to ascertain this information;
6        (9) the total amount of proceeds received by the
7    committee from (i) the sale of tickets for each dinner,
8    luncheon, cocktail party, rally, and other fund-raising
9    events; (ii) mass collections made at those events; and
10    (iii) sales of items such as political campaign pins,
11    buttons, badges, flags, emblems, hats, banners,
12    literature, and similar materials;
13        (10) each contribution, rebate, refund, income from
14    investments, or other receipt in excess of $150 received by
15    the committee not otherwise listed under items (4) through
16    (9) and, if the contributor is an individual who
17    contributed more than $500, the occupation and employer of
18    the contributor or, if the occupation and employer of the
19    contributor are unknown, a statement that the committee has
20    made a good faith effort to ascertain this information;
21        (11) the total sum of all receipts by or for the
22    committee or candidate during the reporting period;
23        (12) the full name and mailing address of each person
24    to whom expenditures have been made by the committee or
25    candidate within the reporting period in an aggregate
26    amount or value in excess of $150; the amount, date, and

 

 

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1    purpose of each of those expenditures; and the question of
2    public policy or the name and address of, and the office
3    sought by, each candidate on whose behalf that expenditure
4    was made;
5        (13) the full name and mailing address of each person
6    to whom an expenditure for personal services, salaries, and
7    reimbursed expenses in excess of $150 has been made and
8    that is not otherwise reported, including the amount, date,
9    and purpose of the expenditure;
10        (14) the value of each asset held as an investment, as
11    of the final day of the reporting period;
12        (15) the total sum of expenditures made by the
13    committee during the reporting period; and
14        (16) the full name and mailing address of each person
15    to whom the committee owes debts or obligations in excess
16    of $150 and the amount of those debts or obligations; and .
17        (17) the beneficial owner of any entity, other than a
18    political committee or a natural person, that contributes
19    more than $10,000 to a ballot initiative committee or an
20    independent expenditure committee during any election
21    period; if the entity does not have a beneficial owner, the
22    recipient shall so declare.
23    For purposes of reporting campaign receipts and expenses,
24income from investments shall be included as receipts during
25the reporting period they are actually received. The gross
26purchase price of each investment shall be reported as an

 

 

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1expenditure at time of purchase. Net proceeds from the sale of
2an investment shall be reported as a receipt. During the period
3investments are held they shall be identified by name and
4quantity of security or instrument on each semi-annual report
5during the period.
6    (b) Each report of a campaign contribution of $1,000 or
7more required under subsection (c) of Section 9-10 shall
8disclose the following:
9        (1) the name and address of the political committee;
10        (2) the name and address of the person submitting the
11    report on behalf of the committee, if other than the
12    chairman or treasurer; and
13        (3) the full name and mailing address of each person
14    who has made a contribution of $1,000 or more.
15    (c) Each quarterly report shall include the following
16information regarding any independent expenditures made during
17the reporting period: (1) the full name and mailing address of
18each person to whom an expenditure in excess of $150 has been
19made in connection with an independent expenditure; (2) the
20amount, date, and purpose of such expenditure; (3) a statement
21whether the independent expenditure was in support of or in
22opposition to a particular candidate; (4) the name of the
23candidate; (5) the office and, when applicable, district,
24sought by the candidate; and (6) a certification, under penalty
25of perjury, that such expenditure was not made in cooperation,
26consultation, or concert with, or at the request or suggestion

 

 

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1of, any candidate or any authorized committee or agent of such
2committee. The report shall also include (I) the total of all
3independent expenditures of $150 or less made during the
4reporting period and (II) the total amount of all independent
5expenditures made during the reporting period.
6    (d) The Board shall by rule define a "good faith effort".
7    The reports of campaign contributions filed under this
8Article shall be cumulative during the reporting period to
9which they relate.
10    (e) Each report shall be verified, dated, and signed by
11either the treasurer of the political committee or the
12candidate on whose behalf the report is filed and shall contain
13the following verification:
14    "I declare that this report (including any accompanying
15schedules and statements) has been examined by me and, to the
16best of my knowledge and belief, is a true, correct, and
17complete report as required by Article 9 of the Election Code.
18I understand that willfully filing a false or incomplete
19statement is subject to a civil penalty of up to $5,000.".
20    (f) A political committee may amend a report filed under
21subsection (a) or (b). The Board may reduce or waive a fine if
22the amendment is due to a technical or inadvertent error and
23the political committee files the amended report, except that a
24report filed under subsection (b) must be amended within 5
25business days. The State Board shall ensure that a description
26of the amended information is available to the public. The

 

 

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1Board may promulgate rules to enforce this subsection.
2(Source: P.A. 96-832, eff. 1-1-11.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.