SB1354 104TH GENERAL ASSEMBLY

LRB104 07863 BDA 17909 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB1354

Introduced 1/28/2025, by Sen. Michael E. Hastings

SYNOPSIS AS INTRODUCED:

New Act

Creates the Tax Increment Financing and Zoning Ethics and Political Contributions Prohibition Act. Prohibits certain political contributions from those who receive a benefit from a TIF district or a benefit from a zoning variance. Requires corporate disclosure of directors, employees, investors, and family who receive a benefit from a TIF district or a benefit from a zoning variance. Establishes penalties for violations. Exempts certain unrelated persons and unrelated contributions. Defines terms. Effective September 1, 2025.

A BILL FOR

AN ACT concerning ethics.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Tax Increment Financing and Zoning Ethics and Political Contributions Prohibition Act.

Section 5. Purpose. The purpose of this Act is to promote transparency, prevent conflicts of interest, and protect the integrity of the democratic process by prohibiting directors, employees, investors, and their immediate family members from making political contributions to candidates, political organizations, political action committees (PACs), or independent expenditure committees associated with taxing districts that benefit from tax increment financing (TIF) districts and zoning variances. This prohibition aims to ensure that political donations are not influenced by financial or other interests derived from public funds, TIFs, or zoning decisions.

Section 10. Definitions. In this Act:

"Benefit from a TIF district" means a financial or other material benefit from a TIF district, including, but not limited to, grants, loans, tax rebates, property tax abatements, infrastructure improvements, or other funding from a TIF district.

"Benefit from a zoning variance" means permission to use or develop land in a manner not permitted under existing zoning laws, which may include the ability to increase property value, increase development potential, or receive other benefits from the zoning variance decision.

"Director" means an individual serving as a director or officer or in a similar position in any corporation, organization, or entity receiving a benefit from a TIF district or a benefit from a zoning variance.

"Employee" means an individual employed by a corporation, organization, or entity receiving a benefit from a TIF district or a benefit from a zoning variance, including full-time, part-time, and contractual employees.

"Immediate family member" means a spouse, child, parent, sibling, or any other relative residing in the same household as the individual.

"Independent expenditure" has the meaning ascribed to that term in 11 CFR 100.16.

"Independent expenditure committee" or "IEC" means one or more persons that make independent expenditures or that collect funds from one or more persons for the purpose of making an independent expenditure.

"Investor" means any individual or entity who holds ownership, equity interest, or shares in a corporation, organization, or entity receiving a benefit from a TIF district or a benefit from a zoning variance.

"Political action committee" or "PAC" means a tax-exempt organization (i) that is organized under Section 527 of the U.S. Internal Revenue Code, (ii) that is created primarily to influence the selection, nomination, election, appointment or defeat of candidates to federal, state or local public office, and (iii) that pools campaign contributions from members and donates those funds to campaigns for or against candidates, ballot initiatives, or legislation.

"Tax Increment Financing district" or "TIF district" means a designated area within a county, municipality, park district, library district, or school district in which property taxes are captured and diverted to fund improvements, infrastructure, and development in that area.

"Zoning variance" means a legal exception granted by a municipality or unit of local government that allows a property to be used or developed in a manner not otherwise permitted by existing zoning laws or regulations.

Section 15. Prohibition of political contributions.

(a) No director of, employee of, or investor in any corporation, organization, or entity that directly or indirectly receives a benefit from a TIF district or a benefit from a zoning variance or immediate family member of such a person shall:

(1) donate or otherwise contribute money, goods, or services to any candidate for public office, political organization, political action committee (PAC), or independent expenditure committee seeking to influence elections for offices in the county, municipality, park district, library district, or school district from which the TIF district or zoning variance originates; or

(2) make contributions to any political organization or committee formed to influence elections for taxing districts, including county, municipal, park district, library district, or school district that receives taxes from the same TIF district or whose jurisdiction intersects with the boundaries of the TIF district or the area benefiting from the zoning variance.

(b) No director of, employee of, or investor in any corporation, organization, or entity that directly or indirectly receives a benefit from a zoning variance or immediate family member of such a person shall contribute to any political action committee or independent expenditure committee for 10 years after the zoning variance is voted on by the corporate authorities of the municipality or unit of local government. This prohibition extends to any individual or entity that benefits, directly or indirectly, from a zoning variance decision by contributing to or supporting political action committees or independent expenditure committees that seek to influence elections related to the same municipality or unit of local government, taxing district, or political office affected by the zoning variance.

(c) The prohibitions in this Section apply to both direct and indirect contributions made to candidates, political parties, political action committees, independent expenditure committees, or other political organizations that may impact elections at the local level within any taxing district associated with the TIF district or zoning variance.

Section 20. Disclosure of benefits from TIF districts and zoning variances.

(a) Any corporation, organization, or entity receiving a benefit from a TIF district or a benefit from a zoning variance shall be required to disclose the names of directors, employees, investors, and their immediate family members who receive the benefit from a TIF district or the benefit from a zoning variance to the appropriate governmental body administering the TIF district or zoning variance. This disclosure shall be made annually and shall be available for public inspection.

(b) Political organizations, candidates, political action committees, and independent expenditure committees shall also be required to maintain records and disclose contributions from individuals or entities that are subject to the provisions of this Act.

Section 25. Enforcement and penalties.

(a) Any person found to have violated the provisions of this Act by making political contributions prohibited under Section 15 shall be guilty of a Class A misdemeanor and subject to the following penalties:

(1) a fine of up to $100,000 for each violation;

(2) an order of ineligibility to receive future benefits from the relevant TIF district or zoning variance for a period of up to 5 years; and

(3) imprisonment for up to one year.

(b) This Act may be enforced by the State's Attorney for the county in which the violation occurred or the Attorney General.

Section 30. Applicability. This Act does not apply to persons making political contributions to candidates or political organizations that are unrelated to the taxing district from which the TIF district or zoning variance originates, and it does not apply to political contributions made at the State or federal level.

Section 99. Effective date. This Act takes effect September 1, 2025.