HB3541 102ND GENERAL ASSEMBLY

LRB102 13488 SMS 18835 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3541

Introduced 2/22/2021, by Rep. Kelly M. Cassidy

SYNOPSIS AS INTRODUCED:

10 ILCS 5/9-1.8	from Ch. 46, par. 9-1.8
10 ILCS 5/9-6	from Ch. 46, par. 9-6

Amends the Election Code. Includes in the definitions of "political action committee", "ballot initiative committee", and "independent expenditure committee" an organization organized for tax-exempt status under the Internal Revenue Code. Provides that an organization that qualifies for tax-exempt status under the Internal Revenue Code may, in order to comply with the specific reporting provisions that are required of political committees, establish a separate political committee in which the exclusive function is to receive or make contributions, make expenditures, or any combination thereof, to support or oppose candidates or questions of public policy. Allows the nonprofit organizations to create a separate segregated fund in which contributions shall be deposited or made and from which expenditures shall be disbursed. Provides that if the nonprofit organization chooses the option, the disclosure of any deposits of money into the segregated fund shall report the original sources of the money and not the name of the parent nonprofit organization. Effective immediately.

A BILL FOR

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 9-1.8 and 9-6 as follows:

(10 ILCS 5/9-1.8) (from Ch. 46, par. 9-1.8)

Sec. 9-1.8. Political committees.

(a) "Political committee" includes a candidate political committee, a political party committee, a political action committee, a ballot initiative committee, and an independent expenditure committee.

(b) "Candidate political committee" means the candidate himself or herself or any natural person, trust, partnership, corporation, or other organization or group of persons designated by the candidate that accepts contributions or makes expenditures during any 12-month period in an aggregate amount exceeding $5,000 on behalf of the candidate.

(c) "Political party committee" means the State central committee of a political party, a county central committee of a political party, a legislative caucus committee, or a committee formed by a ward or township committeeperson of a political party. For purposes of this Article, a "legislative caucus committee" means a committee established for the purpose of electing candidates to the General Assembly by the person elected President of the Senate, Minority Leader of the Senate, Speaker of the House of Representatives, Minority Leader of the House of Representatives, or a committee established by 5 or more members of the same caucus of the Senate or 10 or more members of the same caucus of the House of Representatives.

(d) "Political action committee" means any natural person, trust, partnership, committee, association, corporation, or other organization, including one organized for tax-exempt status under Section 501(c)(4), 501(c)(5), or 501(c)(6) of the Internal Revenue Code, or group of persons, other than a candidate, political party, candidate political committee, or political party committee, that accepts contributions or makes expenditures during any 12-month period in an aggregate amount exceeding $5,000 on behalf of or in opposition to a candidate or candidates for public office. "Political action committee" includes any natural person, trust, partnership, committee, association, corporation, or other organization, including one organized for tax-exempt status under Section 501(c)(4), 501(c)(5), or 501(c)(6) of the Internal Revenue Code, or group of persons, other than a candidate, political party, candidate political committee, or political party committee, that makes electioneering communications during any 12-month period in an aggregate amount exceeding $5,000 related to any candidate or candidates for public office.

(e) "Ballot initiative committee" means any natural person, trust, partnership, committee, association, corporation, or other organization, including one organized for tax-exempt status under Section 501(c)(4), 501(c)(5), or 501(c)(6) of the Internal Revenue Code, or group of persons that accepts contributions or makes expenditures during any 12-month period in an aggregate amount exceeding $5,000 in support of or in opposition to any question of public policy to be submitted to the electors. "Ballot initiative committee" includes any natural person, trust, partnership, committee, association, corporation, or other organization, including one organized for tax-exempt status under Section 501(c)(4), 501(c)(5), or 501(c)(6) of the Internal Revenue Code, or group of persons that makes electioneering communications during any 12-month period in an aggregate amount exceeding $5,000 related to any question of public policy to be submitted to the voters. The $5,000 threshold applies to any contributions or expenditures received or made with the purpose of securing a place on the ballot for, advocating the defeat or passage of, or engaging in electioneering communication regarding the question of public policy, regardless of the method of initiation of the question of public policy and regardless of whether petitions have been circulated or filed with the appropriate office or whether the question has been adopted and certified by the governing body.

(f) "Independent expenditure committee" means any trust, partnership, committee, association, corporation, or other organization or group of persons formed for the exclusive purpose of making independent expenditures during any 12-month period in an aggregate amount exceeding $5,000 in support of or in opposition to (i) the nomination for election, election, retention, or defeat of any public official or candidate or (ii) any question of public policy to be submitted to the electors. "Independent expenditure committee" also includes any trust, partnership, committee, association, corporation, or other organization, including one organized for tax-exempt status under Section 501(c)(4), 501(c)(5), or 501(c)(6) of the Internal Revenue Code, or group of persons that makes electioneering communications that are not made in connection, consultation, or concert with or at the request or suggestion of a public official or candidate, a public official's or candidate's designated political committee or campaign, or an agent or agents of the public official, candidate, or political committee or campaign during any 12-month period in an aggregate amount exceeding $5,000 related to (i) the nomination for election, election, retention, or defeat of any public official or candidate or (ii) any question of public policy to be submitted to the voters.

(Source: P.A. 100-1027, eff. 1-1-19.)

(10 ILCS 5/9-6) (from Ch. 46, par. 9-6)

Sec. 9-6. Accounting for contributions.

(a) A person who collects or accepts a contribution for a political committee shall, within 5 days after receipt of such contribution, submit to the treasurer a detailed account of the contribution, including (i) the amount, (ii) the name and address of the person making such contribution, (iii) the date on which the contribution was received, and (iv) the name and address of the person collecting or accepting the contribution for the political committee. A political committee shall disclose on the quarterly statement the name, address, and occupation of any person who collects or accepts contributions from at least 5 persons in the aggregate of $3,000 or more outside of the presence of a candidate or not in connection with a fundraising event sanctioned or coordinated by the political committee during a reporting period. This subsection does not apply to a person who is an officer of the committee, a compensated employee, a person authorized by an officer or the candidate of a committee to accept contributions on behalf of the committee, or an entity used for processing financial transactions by credit card or other means.

(b) Within 5 business days of contributing goods or services to a political committee, the contributor shall submit to the treasurer a detailed account of the contribution, including (i) the name and address of the person making the contribution, (ii) a description and market value of the goods or services, and (iii) the date on which the contribution was made.

(c) All funds of a political committee shall be segregated from, and may not be commingled with, any personal funds of officers, members, or associates of such committee.

(d) An organization that qualifies for tax-exempt status under Section 501(c)(4), 501(c)(5), or 501(c)(6) of the Internal Revenue Code may, in order to comply with the specific reporting provisions that are required of political committees, establish a separate political committee in the manner described in Section 9-3 in which the exclusive function is to receive or make contributions, make expenditures, or any combination thereof, to support or oppose candidates or questions of public policy.

To facilitate this option, nonprofit organizations may create a separate segregated fund in which contributions shall be deposited or made pursuant to Section 9-1.4 and from which expenditures shall be disbursed pursuant to Section 9-1.5.

If a nonprofit organization chooses this option, the disclosure of any deposits of money into the segregated fund shall report the original sources of the money and not the name of the parent nonprofit organization.

(Source: P.A. 96-832, eff. 1-1-11.)

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