HB4561 96TH GENERAL ASSEMBLY

LRB096 12634 JAM 26106 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB4561

Introduced 5/14/2009, by Rep. John A. Fritchey

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 105/5.719 new
35 ILCS 5/507SS new
730 ILCS 5/5-9-1.17 new
740 ILCS 175/3	from Ch. 127, par. 4103
740 ILCS 175/8	from Ch. 127, par. 4108

Creates the Illinois Public Financing Program Act. Establishes an alternative campaign financing mechanism for candidates for the office of Governor or Illinois Supreme Court Judge. Provides for various funding sources. Amends the State Finance Act, the Illinois Income Tax Act, the Unified Code of Corrections, and the Whistleblower Reward and Protection Act to make conforming changes. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning elections.

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 Illinois Public Financing Program Act.

Section 5. Definitions. As used in this Act:

"Contribution" has the same meaning as in Article 9 of the Election Code.

"Fund" means the Illinois Public Financing Program Fund established in Section 15.

"Nonparticipating candidate" means a candidate running for Governor or Judge of the Illinois Supreme Court in a primary or general election who does not choose to participate in this Act and who is not seeking to be an Illinois Public Financing Program Act candidate.

"Participating candidate" means a candidate who is running for Governor or Judge of the Illinois Supreme Court in a primary or general election who is seeking to be an Illinois Public Financing Program Act candidate.

"Qualifying contribution" means a donation:

(1) of $5 in the form of a check or a money order payable to the Fund in support of a candidate;

(2) made by a registered voter within the district for the office a candidate is seeking;

(3) made during the designated qualifying period and obtained with the knowledge and approval of the candidate; and

(4) that is acknowledged by a written receipt that identifies the name and address of the donor on forms provided by the State Board.

"Qualifying period" means the following:

For a participating candidate for Governor or Judge of the Illinois Supreme Court, the qualifying period begins August 1st immediately preceding the election year and ends at 5:00 p.m. on June 2nd of the election year.

"Seed money contribution" means a contribution of no more than $100 per individual. To be eligible for participation in the Illinois Public Financing Program, a candidate may collect and spend only seed money contributions subsequent to becoming a candidate as defined by Article 9 of the Election Code and throughout the qualifying period. A participating candidate who has accepted contributions or made expenditures that do not comply with the seed money restrictions under this Act may petition the State Board to remain eligible for participation as an Illinois Public Financing Program candidate in accordance with rules of the State Board if the failure to comply was unintentional and does not constitute a significant infraction of these restrictions. Prior to participation, a candidate may obligate an amount greater than the seed money collected if the value of the goods and services received from a vendor does not exceed the amount paid to the vendor. A candidate may not collect or spend seed money contributions after participation as an Illinois Public Financing Program candidate. A seed money contribution must be reported according to procedures developed by the State Board.

"State Board" means the State Board of Elections.

Section 10. Alternative campaign financing option. This Act establishes an alternative campaign financing option available to candidates running for Governor and Judge of the Illinois Supreme Court. This alternative campaign financing option is available to candidates for elections to be held beginning in the year 2010. The State Board shall administer this Act and the Fund. Candidates participating in this Act must also comply with all other applicable election and campaign laws and regulations.

Section 15. The Illinois Public Financing Program Fund established; sources of funding.

(a) The Illinois Public Financing Program Fund is established as a special fund in the State treasury to finance the election campaigns of participating Illinois Public Financing Program Act candidates running for Governor and Judge of the Illinois Supreme Court and to pay administrative and enforcement costs of the State Board related to this Act. Any interest generated by the Fund is credited to the Fund. The State Board shall administer the Fund.

(b) The following must be deposited into the Fund:

(1) The qualifying contributions required under Section 20 when those contributions are submitted to the State Board.

(2) Revenue from a tax checkoff program allowing a resident of the State who files a tax return with the Department of Revenue to designate that an amount of at least $3 be paid into the Fund. If a husband and wife file a joint return, each spouse may designate that at least $3 be paid. The Department of Revenue shall report annually the amounts designated for the Fund to the State Treasurer, who shall transfer that amount to the Fund.

(3) Seed money contributions remaining unspent after a candidate has enrolled as an Illinois Public Financing Program Act candidate.

(4) Fund revenues that were distributed to an Illinois Public Financing Program Act candidate and that remain unspent after the candidate has lost a primary election or after all general elections.

(5) Other unspent Fund revenues distributed to any Illinois Public Financing Act candidate who does not remain a candidate throughout a primary or general election cycle.

(6) Voluntary donations made directly to the Fund.

(7) Fines collected under this Act.

(8) Surcharges on fines paid under Section 5-9-1.17 of the Unified Code of Corrections.

(9) Surcharges on fines paid under Section 3 of the Whistleblower Reward and Protection Act.

(c) By August 1st preceding each election year, the State Board shall publish an estimate of revenue in the Fund available for distribution to participating candidates during the upcoming year's elections and an estimate of the likely demand for publicly financed elections funding during that election. The State Board may submit legislation to request additional funding.

(d) Notwithstanding any other law to the contrary, the State Board is authorized to use funds in the State Police Whistleblower Reward and Protection Fund for elections held in 2010 and until such time as the Board determines that the funds in the Illinois Public Financing Program Fund are sufficient to support the Illinois Public Financing Program.

Section 20. Terms of participation.

(a) A participating candidate must file a declaration of intent to participate as an Illinois Public Financing Program Act candidate and to comply with the requirements of this Act. The declaration of intent must be filed with the State Board prior to or during the qualifying period, except as provided in subsection (l), according to forms and procedures developed by the State Board. A participating candidate must submit a declaration of intent within 5 business days after collecting qualifying contributions under this Act or the qualifying contributions collected before the declaration of intent has been filed will not be counted toward the eligibility requirement in subsection (c).

(b) Subsequent to becoming a candidate and prior to participation, a participating candidate may not accept contributions, except for seed money contributions. A participating candidate must limit the candidate's seed money contributions to the following amounts:

(1) $50,000 for a gubernatorial candidate.

(2) $25,000 for a candidate for Judge of the Illinois Supreme Court.

The State Board may, by rule, revise these amounts to ensure the effective implementation of this Act.

(c) Participating candidates must obtain qualifying contributions during the qualifying period as follows:

(1) For a gubernatorial candidate, at least 2,500 verified registered voters of this State must support the candidacy by providing a qualifying contribution to that candidate.

(2) For a candidate for Judge of the Illinois Supreme Court, at least 1,000 verified registered voters from the candidate's district must support the candidacy by providing a qualifying contribution to that candidate.

A payment, gift, or anything of value may not be given in exchange for a qualifying contribution. A candidate may pay the fee for a money order in the amount of $5, which is a qualifying contribution, as long as the donor making the qualifying contribution pays the $5 amount reflected on the money order. Any money order fees paid by a participating candidate must be paid for with seed money and reported in accordance with State Board rules.

(d) A participating candidate must submit qualifying contributions to the State Board during the qualifying period according to procedures developed by the State Board, except as provided under subsection (l).

(e) Upon receipt of a final submittal of qualifying contributions by a participating candidate, the State Board shall determine whether or not the candidate has:

(1) Signed and filed a declaration of intent to participate in this Act.

(2) Submitted the appropriate number of valid qualifying contributions.

(3) Qualified as a candidate by petition or other means.

(4) Not accepted contributions, except for seed money contributions, and otherwise complied with seed money restrictions.

(5) Not run for the same office as a nonparticipating candidate in a primary election in the same election year.

(6) Otherwise met the requirements for participation in this Act.

The State Board shall declare a candidate as complying with the requirements of this Section as an Illinois Public Financing Program Act candidate as soon as possible and no later than 3 business days after final submittal of qualifying contributions. Upon declaration, a candidate must transfer to the Fund any unspent seed money contributions. A participating candidate must comply with all requirements of this Act after participation and throughout the primary and general election periods. Failure to do so is a violation of this Act.

(f) After declaration, a candidate must limit the candidate's campaign expenditures and obligations, including outstanding obligations, to the revenues distributed to the candidate from the Fund and may not accept any contributions unless specifically authorized by the State Board. Candidates may also accept and spend interest earned on bank accounts. All revenues distributed to a participating candidate from the Fund must be used for campaign-related purposes. The candidate, the treasurer, the candidate's political committee, or any agent of the candidate and committee may not use these revenues for any but campaign-related purposes. The State Board shall publish guidelines outlining permissible campaign-related expenditures.

(g) The State Board shall distribute to participating candidates revenues from the Fund in amounts determined under subsection (i) in the following manner.

(1) Within 3 days after declaration by the Board, revenues from the Fund must be distributed.

(2) For candidates in primary elections receiving a distribution under paragraph (1), revenues from the fund must be distributed within 3 days.

(3) Within 3 days after the primary election results are certified, for general election certified candidates, revenues from the Fund must be distributed according to whether the candidate is in a contested or uncontested general election.

Funds may be distributed to participating candidates under this Section by any mechanism that is expeditious, ensures accountability, and safeguards the integrity of the Fund as determined by the participating candidate in accordance with the rules of the Board.

(h) The candidate or committee shall deposit all revenues from the Fund into a campaign account with a bank or other financial institution. The campaign funds must be segregated from, and may not be commingled with, any other funds.

(i) Within 90 days after the effective date of this Act, and at least every 4 years after that date, the State Board shall determine the amount of funds to be distributed to participating candidates based on the type of election and office as follows:

(1) For gubernatorial primary elections, the amount of revenues distributed is up to $2,000,000 per candidate in the primary election.

(2) For gubernatorial general elections, the amount of revenues distributed is up to $4,000,000 per candidate in the general election.

(3) For contested primary elections for Judge of the Illinois Supreme Court, the amount of revenues distributed is up to $300,000 per candidate in the primary election.

(4) For the general election for Judge of the Illinois Supreme Court, the amount of funds distributed per candidate is up to $600,000.

(5) For any uncontested primary or general election for the office of Governor or Judge of the Illinois Supreme Court, the amount of funds distributed shall be 40% of those otherwise distributed in a contested primary or general election.

(j) When any campaign, finance, or election report shows that the sum of a candidate's expenditures or obligations, or funds raised or borrowed, whichever is greater, alone or in conjunction with independent reported expenditures, exceeds the distribution amount under subsection (i), the State Board shall issue immediately to any opposing Illinois Public Financing Program Act candidate an additional amount equivalent to the reported excess.

(k) Funds issued under subsection (j) are limited to 2 times the amount originally distributed under subsection (i).

(l) The State Board shall establish by rule procedures for qualification, declaration, disbursement of Fund revenues, and return of unspent Fund revenues for races involving special elections, recounts, vacancies, withdrawals, or replacement candidates.

(m) Notwithstanding any other provision of law, participating candidates shall report any money collected, all campaign expenditures, obligations, and related activities to the State Board according to procedures developed by the State Board. Upon the filing of a final report for any primary election in which the candidate was defeated and for all general elections that candidate shall return all unspent Fund revenues to the State Board. In developing these procedures, the State Board shall use existing campaign reporting procedures whenever practical. The State Board shall ensure timely public access to campaign finance data and may use electronic means of reporting and storing information.

(n) The treasurer shall obtain and keep:

(1) Bank or other account statements for the campaign account covering the duration of the campaign.

(2) A vendor invoice stating the particular goods or services purchased for every expenditure of $50 or more.

(3) A record proving that a vendor received payment for every expenditure of $50 or more in the form of a cancelled check, receipt from the vendor, or bank or credit card statement identifying the vendor as the payee.

The treasurer shall preserve the records for 2 years following the candidate's final campaign finance report for the election cycle. The candidate and treasurer shall submit photocopies of the records to the State Board upon its request.

(o) The State Board may not distribute revenues to participating candidates in excess of the total amount of money deposited into the Fund as set forth in Section 15.

Notwithstanding any other provisions of this Act, if the State Board determines that the revenues in the Fund are insufficient to meet distributions under subsections (h) or (i), the State Board may permit participating candidates to accept and spend contributions, reduced by any seed money contributions, aggregating no more than $500 per donor per election for gubernatorial candidates and $250 per donor per election for Judge of the Supreme Court candidates, up to the applicable amounts set forth in subsections (h) and (i) according to rules adopted by the State Board.

(p) A candidate who has been denied as an Illinois Public Financing Program Act candidate, the opponent of a candidate who has been declared as an Illinois Public Financing Program Act candidate, or other interested persons may challenge a decision by the State Board as follows:

(1) A challenger may appeal to the full State Board within 7 days after the decision. The appeal must be in writing and must set forth the reasons for the appeal.

(2) Within 5 days after an appeal is properly made and after notice is given to the challenger and any opponent, the State Board shall hold a hearing. The appellant has the burden of providing evidence to demonstrate that the State Board's decision was improper. The State Board must rule on the appeal within 3 days after the completion of the hearing.

(3) A challenger may appeal the decision of the State Board in paragraph (2) by commencing an action in circuit court.

(4) A candidate whose status as an Illinois Public Financing Program Act candidate is revoked on appeal must return to the State Board any unspent revenues distributed from the Fund.

If the State Board or court finds that an appeal was made frivolously or to cause delay or hardship, the State Board or court may require the moving party to pay costs of the State Board, court, and opposing parties, if any.

Section 25. Rules. The State Board shall adopt rules to ensure effective administration of this Act. These rules must include, but must not be limited to, procedures for obtaining qualifying contributions, declaration as an Illinois Public Financing Program Act candidate, circumstances involving special elections, vacancies, recounts, withdrawals or replacements, collection of revenues for the Fund, distribution of Fund revenue to certified candidates, return of unspent Fund disbursements, disposition of equipment purchased with Public Financing Program Funds, and compliance with this Act.

Section 30. Violations.

(a) In addition to any other penalties that may apply, a person who violates any provision of this Act or rules of the State Board adopted pursuant to Section 25 is subject to a fine not to exceed $10,000 per violation payable to the Fund. The State Board may assess a fine of up to $10,000 for a violation of reporting requirements if it determines that the failure to file a timely and accurate report resulted in the late payment of matching funds. This fine is recoverable in a civil action. In addition to any fine, for good cause shown, a candidate, treasurer, consultant, or other agent of the candidate or the committee authorized by the candidate found in violation of this Act or rules of the State Board may be required to return to the Fund all amounts distributed to the candidate from the Fund or any funds not used for campaign-related purposes. If the State Board makes a determination that a violation of this Act or rules of the State Board has occurred, the State Board shall assess a fine or transmit the finding to the State's Attorney for prosecution. Fines paid under this Section must be deposited into the Fund. In determining whether or not a candidate is in violation of the expenditure limits of this Act, the State Board may consider as a mitigating factor any circumstances out of the candidate's control.

(b) A person who willfully or knowingly violates this Act or rules of the State Board or who willfully or knowingly makes a false statement in any report required by this Act commits a business offense punishable by a fine of at least $1,001 and not more than $5,000 and, if certified as an Illinois Public Financing Program Act candidate, must return to the Fund all amounts distributed to the candidate.

Section 35. Study report. By January 30, 2011 and every 4 years after that date, the State Board shall prepare for the General Assembly and the Governor a report documenting, evaluating, and making recommendations relating to the administration, implementation, and enforcement of this Act and the Illinois Public Financing Program Act Fund.

Section 50. The State Finance Act is amended by adding Section 5.719 as follows:

(30 ILCS 105/5.719 new)

Sec. 5.719. The Illinois Public Financing Program Fund.

Section 75. The Illinois Income Tax Act is amended by adding Section 507SS as follows:

(35 ILCS 5/507SS new)

Sec. 507SS. The Illinois Public Financing Program Fund checkoff. For taxable years ending on or after December 31, 2009, the Department must print on its standard individual income tax form a provision indicating that if the taxpayer wishes to contribute to the Illinois Public Financing Program Fund, as authorized by the Illinois Public Financing Program Act, he or she may do so by stating the amount of the contribution (not less than $3) on the return and that the contribution will reduce the taxpayer's refund or increase the amount of payment to accompany the return. Failure to remit any amount of increased payment shall reduce the contribution accordingly. This Section does not apply to any amended return.

Section 80. The Unified Code of Corrections is amended by adding Section 5-9-1.17 as follows:

(730 ILCS 5/5-9-1.17 new)

Sec. 5-9-1.17. Additional fine to support Illinois Public Financing Program. There shall be added to every penalty imposed in sentencing under this Article an additional fine of $50 payable to the clerk. The fine shall be imposed upon the entry of a judgment of conviction. This additional fine shall be remitted by the clerk to the State Treasurer within 60 days after receipt for deposit into the Illinois Public Financing Program Fund. This additional fee of $50 shall not be considered a part of the fine for purposes of any reduction in the fine for time served either before or after sentencing. Not later than March 1 of each year the circuit clerk shall submit a report of the amount of funds remitted to the State Treasurer under this Section during the preceding calendar year. All moneys collected by the circuit clerk under this Section and remitted to the State Treasurer shall be deposited into the Illinois Public Financing Program Fund for distribution as provided under the Illinois Public Financing Program Act.

Section 85. The Whistleblower Reward and Protection Act is amended by changing Sections 3 and 8 as follows:

(740 ILCS 175/3) (from Ch. 127, par. 4103)

Sec. 3. False claims.

(a) Liability for certain acts. Any person who:

(1) knowingly presents, or causes to be presented, to an officer or employee of the State or a member of the Guard a false or fraudulent claim for payment or approval;

(2) knowingly makes, uses, or causes to be made or used, a false record or statement to get a false or fraudulent claim paid or approved by the State;

(3) conspires to defraud the State by getting a false or fraudulent claim allowed or paid;

(4) has possession, custody, or control of property or money used, or to be used, by the State and, intending to defraud the State or willfully to conceal the property, delivers, or causes to be delivered, less property than the amount for which the person receives a certificate or receipt;

(5) authorized to make or deliver a document certifying receipt of property used, or to be used, by the State and, intending to defraud the State, makes or delivers the receipt without completely knowing that the information on the receipt is true;

(6) knowingly buys, or receives as a pledge of an obligation or debt, public property from an officer or employee of the State, or a member of the Guard, who lawfully may not sell or pledge the property;

(7) knowingly makes, uses, or causes to be made or used, a false record or statement to conceal, avoid or decrease an obligation to pay or transmit money or property to the State;

(8) knowingly takes adverse employment action against an employee for disclosing information to a government or law enforcement agency, if the employee has reasonable cause to believe that the information discloses a violation of State or federal law, rule, or regulation; or

(9) knowingly retaliates against an employee who has disclosed information in a court, an administrative hearing, before a legislative commission or committee, or in another proceeding and discloses information, if the employee has reasonable cause to believe that the information discloses a violation of State or federal law, rule, or regulation,

is liable to the State for a civil penalty of not less than $5,500 and not more than $11,000, plus 3 times the amount of damages which the State sustains because of the act of that person. A person violating this subsection (a) shall also be liable to the State for the costs of a civil action brought to recover any such penalty or damages. In addition to any penalty assessed under this Section, a person violating this Act shall also be assessed a surcharge of $50 to be paid into the Illinois Public Financing Program Fund.

(b) Knowing and knowingly defined. As used in this Section, the terms "knowing" and "knowingly" mean that a person, with respect to information:

(1) has actual knowledge of the information;

(2) acts in deliberate ignorance of the truth or falsity of the information; or

(3) acts in reckless disregard of the truth or falsity of the information, and no proof of specific intent to defraud is required.

(c) Claim defined. As used in this Section, "claim" includes any request or demand, whether under a contract or otherwise, for money or property which is made to a contractor, grantee, or other recipient if the State provides any portion of the money or property which is requested or demanded, or if the State will reimburse such contractor, grantee, or other recipient for any portion of the money or property which is requested or demanded. A claim also includes a request or demand for money damages or injunctive relief on behalf of an employee who has suffered an adverse employment action taken in violation of paragraphs (8) or (9) of subsection (a).

(d) Exclusion. This Section does not apply to claims, records, or statements made under the Illinois Income Tax Act.

(Source: P.A. 94-1059, eff. 7-31-06; 95-128, eff. 1-1-08.)

(740 ILCS 175/8) (from Ch. 127, par. 4108)

Sec. 8. Funds; Grants.

(a) There is hereby created the Whistleblower Reward and Protection Fund as a special fund in the State Treasury. All proceeds of an action or settlement of a claim brought under this Act shall be deposited in the Fund, except the $50 surcharge for the Illinois Public Financing Program Fund assessed under Section 3.

(b) Monies in the Fund shall be allocated, subject to appropriation, as follows: One-sixth of the monies shall be paid to the Attorney General and one-sixth of the monies shall be paid to the Department of State Police for State law enforcement purposes. The remaining two-thirds of the monies in the Fund shall be used for payment of awards to Qui Tam plaintiffs, for attorneys' fees and expenses, and as otherwise specified in this Act. The Attorney General shall direct the State Treasurer to make disbursement of funds as provided in court orders setting those awards, fees, and expenses. The State Treasurer shall transfer any fund balances in excess of those required for these purposes to the General Revenue Fund.

(Source: P.A. 87-662.)

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