HB3551 102ND GENERAL ASSEMBLY

LRB102 14542 SMS 19895 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3551

Introduced 2/22/2021, by Rep. Tim Butler

SYNOPSIS AS INTRODUCED:

10 ILCS 5/9-7	from Ch. 46, par. 9-7
10 ILCS 5/9-13	from Ch. 46, par. 9-13

Amends the Election Code. Beginning on January 1, 2022, requires the treasurer of a political committee to preserve certain records and accounts required by the Code for a period of 7 years (rather than a period of 2 years). Includes in the reasons the State Board of Elections may order a political committee to conduct an audit of its financial records: (1) sworn testimony or sentence entered upon a plea of guilty by a candidate or political committee officer admitting to certain conduct constituting a violation of the Code, (2) conviction of a candidate or political committee officer for a crime relating to misuse of political committee funds or for certain violations of the Code, (3) failure to comply with a Board order requiring certain filings, or (4) filing of a statement of organization by a political committee composed of one or more officers of, or formed for the same purpose as, or for the support of the candidacy of the same person as, a former political committee that was administratively terminated by the Board in the last 24 months. Provides that for certain audits the audit period shall be within the discretion of the Board but may not exceed 7 years from the close of the most recent reporting period. 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 9-7 and 9-13 as follows:

(10 ILCS 5/9-7) (from Ch. 46, par. 9-7)

Sec. 9-7. Records and accounts.

(1) Except as provided in subsection (2), the treasurer of a political committee shall keep a detailed and exact account of-

(a) the total of all contributions made to or for the committee;

(b) the full name and mailing address of every person making a contribution and the date and amount thereof;

(c) the total of all expenditures made by or on behalf of the committee;

(d) the full name and mailing address of every person to whom any expenditure is made, and the date and amount thereof;

(e) proof of payment, stating the particulars, for every expenditure made by or on behalf of the committee.

Before January 1, 2022, the treasurer shall preserve all records and accounts required by this Section for a period of 2 years. Beginning on January 1, 2022, the treasurer shall preserve all records and accounts required by this Section for a period of 7 years.

The treasurer shall preserve all records and accounts required by this section for a period of 2 years.

(2) The treasurer of a political committee shall keep a detailed and exact account of the total amount of contributions made to or for a committee at an event licensed under Section 8.1 of the Raffles and Poker Runs Act. For an event licensed under Section 8.1, the treasurer is not required to keep a detailed and exact account of the full name and mailing address of a person who purchases tickets at the event in an amount that does not exceed $150.

(Source: P.A. 97-766, eff. 7-6-12; 98-644, eff. 6-10-14.)

(10 ILCS 5/9-13) (from Ch. 46, par. 9-13)

Sec. 9-13. Audits of political committees.

(a) The Board shall have the authority to order a political committee to conduct an audit of the financial records required to be maintained by the committee to ensure compliance with Sections 9-8.5 and 9-10. Audits ordered by the Board shall be conducted as provided in this Section and as provided by Board rule.

(b) The Board may order a political committee to conduct an audit of its financial records for any of the following reasons:

(i) a discrepancy between the ending balance of a reporting period and the beginning balance of the next reporting period,

(ii) failure to account for previously reported investments or loans, or

(iii) a discrepancy between reporting contributions received by or expenditures made for a political committee that are reported by another political committee, except the Board shall not order an audit pursuant to this item (iii) unless there is a willful pattern of inaccurate reporting or there is a pattern of similar inaccurate reporting involving similar contributions by the same contributor, .

(iv) sworn testimony or sentence entered upon a plea of guilty by a candidate or political committee officer admitting to conduct constituting a violation of Article 9,

(v) conviction of a candidate or political committee officer for a crime relating to misuse of political committee funds or for a violation of Article 9,

(vi) failure to comply with a Board order requiring filing or amendment of any report contemplated by Article 9, or

(vii) filing of a statement of organization pursuant to Section 9-3 by a political committee composed of one or more officers of, or formed for the same purpose as, or for the support of the candidacy of the same person as, a former political committee that was administratively terminated by the Board in the last 24 months.

Prior to ordering an audit, the Board shall afford the political committee due notice and an opportunity for a closed preliminary hearing. A political committee shall hire an entity qualified to perform an audit; except, a political committee shall not hire a person that has contributed to the political committee during the previous 4 years.

(c) In each calendar year, the Board shall randomly order no more than 3% of registered political committees to conduct an audit. The Board shall establish a standard, scientific method of selecting the political committees that are to be audited so that every political committee has an equal mathematical chance of being selected.

(d) Upon receipt of notification from the Board ordering an audit, a political committee shall conduct an audit of the financial records required to be maintained by the committee to ensure compliance with the contribution limitations established in Section 9-8.5 and the reporting requirements established in Section 9-3 and Section 9-10 for a period of 2 years from the close of the most recent reporting period or the period since the committee was previously ordered to conduct an audit, whichever is shorter, except that for committees ordered to conduct an audit under subsection (b), the audit period shall be within the discretion of the Board but may not exceed 7 years from the close of the most recent reporting period. The entity performing the audit shall review the amount of funds and investments maintained by the political committee and ensure the financial records accurately account for any contributions and expenditures made by the political committee. A certified copy of the audit shall be delivered to the Board within 60 calendar days after receipt of notice from the Board, unless the Board grants an extension to complete the audit. A political committee ordered to conduct an audit through the random selection process shall not be required to conduct another audit for a minimum of 5 years unless the Board has reason to believe the political committee is in violation of Section 9-3, 9-8.5, or 9-10.

(e) The Board shall not disclose the name of any political committee ordered to conduct an audit or any documents in possession of the Board related to an audit unless, after review of the audit findings, the Board has reason to believe the political committee is in violation of Section 9-3, 9-8.5, or 9-10 and the Board imposed a fine.

(f) Failure to deliver a certified audit in a timely manner is a business offense punishable by a fine of $250 per day that the audit is late, up to a maximum of $5,000.

(Source: P.A. 100-784, eff. 8-10-18.)

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