Illinois General Assembly - Full Text of HB2537
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Full Text of HB2537  102nd General Assembly

HB2537 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2537

 

Introduced 2/19/2021, by Rep. Denyse Stoneback

 

SYNOPSIS AS INTRODUCED:
 
10 ILCS 5/9-13  from Ch. 46, par. 9-13

    Amends the Election Code. Provides that a political committee selected to conduct an audit shall only be required to conduct the audit if it was required to file at least one quarterly report during the period to be covered by the audit and has a fund balance of $10,000 or more, an average closing fund balance of $10,000 or more on quarterly reports, or average total receipts of $4,000 or more on quarterly reports. Requires a political committee owing unpaid fines at the time of its random selection to conduct an audit.


LRB102 14079 SMS 19431 b

 

 

A BILL FOR

 

HB2537LRB102 14079 SMS 19431 b

1    AN ACT concerning elections.
 
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
5Section 9-13 as follows:
 
6    (10 ILCS 5/9-13)  (from Ch. 46, par. 9-13)
7    Sec. 9-13. Audits of political committees.
8    (a) The Board shall have the authority to order a
9political committee to conduct an audit of the financial
10records required to be maintained by the committee to ensure
11compliance with Sections 9-8.5 and 9-10. Audits ordered by the
12Board shall be conducted as provided in this Section and as
13provided by Board rule.
14    (b) The Board may order a political committee to conduct
15an audit of its financial records for any of the following
16reasons: (i) a discrepancy between the ending balance of a
17reporting period and the beginning balance of the next
18reporting period, (ii) failure to account for previously
19reported investments or loans, or (iii) a discrepancy between
20reporting contributions received by or expenditures made for a
21political committee that are reported by another political
22committee, except the Board shall not order an audit pursuant
23to this item (iii) unless there is a willful pattern of

 

 

HB2537- 2 -LRB102 14079 SMS 19431 b

1inaccurate reporting or there is a pattern of similar
2inaccurate reporting involving similar contributions by the
3same contributor. Prior to ordering an audit, the Board shall
4afford the political committee due notice and an opportunity
5for a closed preliminary hearing. A political committee shall
6hire an entity qualified to perform an audit; except, a
7political committee shall not hire a person that has
8contributed to the political committee during the previous 4
9years.
10    (c) In each calendar year, the Board shall randomly select
11order no more than 3% of registered political committees to
12conduct an audit. The Board shall establish a standard,
13scientific method of selecting the political committees that
14are to be audited so that every political committee has an
15equal mathematical chance of being selected. A political
16committee selected to conduct an audit through the random
17selection process shall only be required to conduct the audit
18if it was required to file at least one quarterly report during
19the period to be covered by the audit and has: (1) a fund
20balance of $10,000 or more as of the close of the most recent
21reporting period; (2) an average closing fund balance of
22$10,000 or more on quarterly reports occurring during the
232-year period to be covered by the audit; or (3) average total
24receipts of $4,000 or more on quarterly reports occurring
25during the 2-year period to be covered by the audit.
26Notwithstanding any other provision of this subsection, a

 

 

HB2537- 3 -LRB102 14079 SMS 19431 b

1political committee owing unpaid fines at the time of its
2random selection shall be ordered to conduct an audit.
3    (d) Upon receipt of notification from the Board ordering
4an audit, a political committee shall conduct an audit of the
5financial records required to be maintained by the committee
6to ensure compliance with the contribution limitations
7established in Section 9-8.5 and the reporting requirements
8established in Section 9-3 and Section 9-10 for a period of 2
9years from the close of the most recent reporting period or the
10period since the committee was previously ordered to conduct
11an audit, whichever is shorter. The entity performing the
12audit shall review the amount of funds and investments
13maintained by the political committee and ensure the financial
14records accurately account for any contributions and
15expenditures made by the political committee. A certified copy
16of the audit shall be delivered to the Board within 60 calendar
17days after receipt of notice from the Board, unless the Board
18grants an extension to complete the audit. A political
19committee ordered to conduct an audit through the random
20selection process shall not be required to conduct another
21audit for a minimum of 5 years unless the Board has reason to
22believe the political committee is in violation of Section
239-3, 9-8.5, or 9-10.
24    (e) The Board shall not disclose the name of any political
25committee ordered to conduct an audit or any documents in
26possession of the Board related to an audit unless, after

 

 

HB2537- 4 -LRB102 14079 SMS 19431 b

1review of the audit findings, the Board has reason to believe
2the political committee is in violation of Section 9-3, 9-8.5,
3or 9-10 and the Board imposed a fine.
4    (f) Failure to deliver a certified audit in a timely
5manner is a business offense punishable by a fine of $250 per
6day that the audit is late, up to a maximum of $5,000.
7(Source: P.A. 100-784, eff. 8-10-18.)