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90_HB2458
10 ILCS 5/9-2 from Ch. 46, par. 9-2
Amends the Election Code. Provides that the funds of a
political committee controlled by an office holder or by a
candidate may be used only for certain specified expenses.
Prohibits other specified expenditures. Provides that the
State Board of Elections may investigate violations and may
levy a fine against violators. Effective immediately.
LRB9008754MWgc
LRB9008754MWgc
1 AN ACT to amend the Election Code by changing Section
2 9-2.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Election Code is amended by changing
6 Section 9-2 as follows:
7 (10 ILCS 5/9-2) (from Ch. 46, par. 9-2)
8 Sec. 9-2. Political committees; contributions and
9 expenditures.
10 (a) Chairman and treasurer of political committee.
11 Every political committee shall designate a chairman and a
12 treasurer. The same person may serve as both chairman and
13 treasurer of any political committee. A candidate who
14 administers his own campaign contributions and expenditures
15 shall be deemed a political committee for purposes of this
16 Article and shall designate himself as chairman, treasurer,
17 or both chairman and treasurer of such political committee.
18 The treasurer of a political committee shall be responsible
19 for keeping the records and filing the statements and reports
20 required by this Article.
21 No contribution and no expenditure shall be accepted or
22 made by or on behalf of a political committee at a time when
23 there is a vacancy in the office of chairman or treasurer
24 thereof. No expenditure shall be made for or on behalf of a
25 political committee without the authorization of its chairman
26 or treasurer, or their designated agents.
27 (b) Use of political committee funds. The funds of a
28 political committee controlled by an officeholder or by a
29 candidate may be used only for:
30 (1) expenditures which would be treated as
31 deductions or exempt functions under Section 527 of the
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1 Internal Revenue Code and the regulations promulgated
2 under that Section;
3 (2) defraying the ordinary and necessary expenses
4 of an officeholder;
5 (3) donations to organizations described in Section
6 170(c) of the Internal Revenue Code; or
7 (4) transfers to any national, State, or local
8 political committee, subject to the laws governing that
9 political committee.
10 (c) Prohibited expenditures. A political committee
11 shall not make expenditures:
12 (1) in violation of any law of the United States or
13 of this State;
14 (2) clearly in excess of the fair market value of
15 the services, materials, facilities, or other things of
16 value received in exchange;
17 (3) for satisfaction or repayment of any debts
18 other than loans made to the committee or repayment of
19 goods and services purchased under a credit agreement.
20 The repayments shall be made by check written to the
21 person who made the loan or credit agreement. The terms
22 and conditions of any loan or credit agreement to a
23 committee shall be set forth in a written agreement,
24 including but not limited to the method and amount of
25 repayment, that shall be executed by the chairman or
26 treasurer of the committee at the time of the loan or
27 credit agreement. The loan or agreement shall also set
28 forth the rate of interest for the loan, if any, which
29 may not substantially exceed the prevailing market
30 interest rate at the time the agreement is executed;
31 (4) for clothing or laundry expenses, except
32 clothing items rented by the candidate for his or her own
33 use exclusively for a specific campaign-related event,
34 provided that committees may purchase costumes, novelty
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1 items, or other accessories worn primarily to advertise
2 the candidacy;
3 (5) for the travel expenses of a candidate, public
4 official, committee officer, campaign worker, staff
5 member, or a family member of any such person, to or from
6 a destination outside the State of Illinois, including
7 room, board, and entertainment expenses incurred outside
8 the State of Illinois, unless the travel is necessary for
9 fulfillment of political or governmental duties;
10 (6) for membership or club dues charged by
11 organizations, clubs, or facilities that are primarily
12 engaged in providing health, exercise, or recreational
13 services. Provided, however, that funds received under
14 this Article may be used to rent the clubs or facilities
15 for a specific campaign-related event;
16 (7) in payment for anything of value or for
17 reimbursement of any expenditure for which any person has
18 been reimbursed by the State or any person;
19 (8) for the purchase of or installment payment for
20 a motor vehicle. A political committee may lease a motor
21 vehicle if the vehicle will be used primarily for
22 campaign purposes or for the performance of governmental
23 duties. A committee shall keep detailed records of the
24 use of any leased vehicle, and shall not make
25 expenditures for use of the vehicle for non-campaign or
26 non-governmental purposes. Persons using vehicles not
27 leased by a political committee may be reimbursed for
28 actual mileage for the use of the vehicle for campaign
29 purposes or for the performance of governmental duties.
30 The mileage reimbursements shall be made at a rate not to
31 exceed the standard mileage rate method for computation
32 of business expenses under the Internal Revenue Code;
33 (9) for purchase or lease of anything of value
34 owned by the candidate or by a corporation owned by,
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1 managed by, or employing the candidate, unless the thing
2 of value is purchases or leased at its cost, without
3 profit to its owner.
4 (d) Enforcement. The Board shall have the authority to
5 investigate, upon its own motion or receipt of a complaint,
6 violations of the provisions of this Section. The Board may
7 levy a fine on any person who knowingly makes expenditures in
8 violation of this Section. The fine shall not exceed $500
9 for each expenditure of $500 or less, and shall not exceed
10 the amount of the expenditure plus $500 for each expenditure
11 greater than $500. The Board shall also have the authority
12 to render rulings and issue opinions relating to compliance
13 with this Section.
14 (e) Definitions. For the purposes of this Section:
15 (1) "exempt function" has the same meaning as in
16 Section 527 of the Internal Revenue Code and the
17 regulations promulgated thereunder;
18 (2) "ordinary and necessary expenses of an
19 officeholder" means expenses for which public funds may
20 be used; and
21 (3) "immediate family" means a candidate's or
22 officeholder's spouse, siblings, parents, children, and
23 the candidate's or officeholder's spouse's siblings,
24 parents, and children.
25 (Source: P.A. 80-756.)
26 Section 99. Effective date. This Act takes effect upon
27 becoming law.