ILLINOIS CAMPAIGN DISCLOSURE Presented by Andrew M. Raucci

1. ILLINOIS CAMPAIGN DISCLOSURE Presented by Andrew M. Raucci

2. Illinois Campaign Disclosure Act 10 ILCS 5/9-1 et seq. State Board of Elections www.elections.il.gov

3. Introduction • Brief overview of Illinois campaign disclosure 1974-2010 • Overview of 2010 changes & introduction to new contribution limits

4. 2010 Amendments • 2010 Amendments providedcontribution limits for first time • Scrapped old political committee definitions • Established four new political committee definitions • Established “election cycles” for receipt of campaign contributions • Established contribution limits • Defined & required reporting for independent expenditures • Established procedures for auditing of political committees • Established on-line database of founded campaign finance complaints

5. Types of Political Committees • Candidate Political Committees • Political Party Committees • Political Action Committees • Ballot Initiative Committees • Does not apply to Federal offices

6. Candidate Political Committees • Candidate or another person(s) or entities • Receives contributions or expends $3,000 in 12 month period • “Public Official” appears to be “Candidate” • Only candidate’s committee can have candidate’s name • Limited to one committee for each office sought • Committee opposed to a candidate is a political action committee

7. Political Party Committees • State Central Committees • County Central Committees • Legislative Caucus Committees • Committee established for purpose of electing persons to the General Assembly • Established by President of Senate or Speaker of the House or Minority Leader of either House or 5 or more members of Senate or 10 or more members of the Senate • Ward or Township Committee • No $3,000 threshold necessary for political party committees

8. Political Action Committees • Persons (other than a candidate) or entities • Receives contributions or expends $3,000 in 12 month period in support of or opposition to candidates • Expends $3,000 in independent expenditures in any 12 month period in relation to candidate(s) • Informal group shall include names of persons responsible

9. Ballot Initiative Committees • Person(s) or entity(ies) • Must have name that reflects ballot initiative issue • Receives contributions or expends $3,000 in 12 month period in support of or opposition to ballot initiatives • Expends $3,000 in independent expenditures in any 12 month period in support of or in opposition to ballot initiatives • $3,000 threshold applies even if ballot initiative is not on ballot • Statement of Organization must contain verification that committee formed to support or oppose ballot initiative, all contributions & expenditures will be used for that purpose, and the committee will accept unlimited contributions from any source provided it does not make contributions or expenditures related to any candidate

10. Electioneering Communications & Independent Expenditures (Effective July 1, 2010)

11. Electioneering Communications • Any broadcast advertisement or communication that1) refers to a clearly identified candidate, political party or public policy question, 2) is made in the 60 days before a general [even-numbered year] election or consolidated [odd-numbered year] election or primary election, 3) is targeted to the relevant electorate, and 4) is clearly an appeal to vote for or against the candidate or ballot initiative

12. Independent Expenditures • Any payment or expenditure made for election communications or expressly advocating for or against a candidate provided that the spending is not made in connection (in any way) with a candidate or his committee • Is not considered to be a contribution and should not be reported as such • If more than $3,000 in 12 month period supporting or opposing a candidate(s): • An entity (including 2 or more persons) making expenditure must organize and file as political committee • A single person must file a written disclosurewith the State Board of Elections within 2 business days of exceeding the $3,000 threshold • Identifying the person • The person’s employer & occupation • The public official or candidate supported or opposed • The date(s), amount(s) and nature of each Independent Expenditure

13. Date of Receipt of Campaign Contributions • Cash or check-date of deposit in bank • Credit card-date notice received by political committee that funds were deposited • In-kind contribution-date notification of contribution of goods or services received (contributor is to notify political committee within 5 business days of making in-kind contribution)

14. Statements of Organization (Form D-1) • To be filed within 10 business days (2 business days if formed within 30 days of an election) with State Board of Elections • Required to show name, address, date of creation, amount of funds available at creation, type of political committee, area of operation, purpose, candidate(s) supporting or opposing, officers, custodian of books & records, repositories of committee’s funds, name of any sponsoring entity, disposition of residual funds • “sponsoring entity” is any person or entity that contributes at least 33% of the committee’s total funding • Any change to be reported within 10 calendar days

15. Quarterly Reports • Now filed quarterly and not semi-annually • January-March, April-June, July-September, October-December • Filed by Midnight of 15th Day after end of quarter (April 15, July 15, October 15, January 15) or 5 p.m. if on paper • Required even if no activity in quarter • Detailed accounting of all receipts or expenditures made during quarter • Itemization of receipts or expenditures over $150

16. Bundlers • New reporting requirement • Bundler defined: • Collects or accepts at least $3,000 in quarter • From at least 5 persons or entities outside the presence of the candidate or not in conjunction with a candidate’s sanctioned fundraiser • Not an officer, compensated employee, authorized by an officer of committee or candidate • Not an entity used for processing financial transactions by credit card or other means

17. Electronic Filing • Required if political committee during quarter either • At any time had balance or accumulation of contributions of $10,000 or more • Made aggregate expenditures of $10,000 or more • Received loans of an aggregate of $10,000 or more • Once in electronic filing committee is in forever • Any committee can voluntarily file electronically

18. Nonparticipation Reports • Applies only to political party committees • If not participating in primary election • May receive unlimited contributions from other political party committees and candidate political committees

19. Year-Round Reporting of Contributions of $1,000 or More • Filed within 5 business days (2 business days if received within 30 days before an election and committee supports or opposes a candidate or ballot initiative on ballot or makes expenditures in excess of $500 on behalf of or in opposition to a candidate(s) or ballot initiative)

20. Reporting Name & Address of Person Filing Report • If not the Chairman or Treasurer of committee • No exemption even if person is employee, staff member or volunteer, of Chairman, Treasurer or committee

21. Conduit • Corporation, labor organization, association or a political action committee established by one of those three is allowed to act as a conduit to accept and deliver contributions made through dues, levies or similar assessments • Must maintain list of persons contributing • Reported as coming from group or PAC, provided that none of the contributions exceeds the normal contribution limits

22. Election Cycles • New concept effective January 1, 2011 • Established based on type of political committee receiving contributions

23. Candidate Committees for Even-year General Primary and General Election Contests (two cycles) • For primary election, period beginning January 1 following general election for office to which candidate seeks nomination or election and ending on day of general primary election for that office • Example: Beginning January 1, 2011 and ending on March 20, 2012 • For general election, period beginning a day after general primary election and through December 31 • Example: Beginning March 21, and ending December 31, 2012 • New primary election cycle would begin January 1, 2013

24. State Senate Candidate Committees • For candidate committees for candidates for the State Senate • In a ten year period following redistricting, State Senators are elected for three terms • Years of terms are distributed equally by district as follows: • 4-4-2 • 4-2-4 • 2-4-4 • Notwithstanding 4 year terms, State Senate offices have the election cycles attributable to State Representatives and have 10 cycles over ten years

25. Judicial Retention Candidate Committees • Circuit judges have 6 year terms, Appellate & Supreme Court judges have 10 year terms • For incumbent judges seeking retention at even-year general election (two cycles) • Beginning January 1 following general election when judge was elected through the day (deadline is 6 months before November Election) judge files declaration of intent to seek retention • Beginning day after judge files declaration of intent and ending on December 31 following retention election • Example: A circuit judge was elected in November 2010 and files for retention in May of 2016. The period from January 1, 2011 until the day in May 2016 that he files his declaration of intent constitutes the first cycle. The second cycle begins the day after his filing of the declaration of intent and ends on December 31, 2016. • New cycle would begin on January 1, 2017

26. Candidate Committees for Odd-year Consolidated Primary and Consolidated Elections (2 Cycles) • Township, municipal, community college, school, park district, library and special district elections • Beginning July 1 following consolidated election and ending on the day of the consolidated primary election • Example: Beginning July 1, 2011 and ending February 19, 2013 • Beginning day after consolidated primary election and ending on June 30 following consolidated election • Example: Beginning February 20, 2013 and ending June 30, 2013

27. Political Party Committee (1 Cycle) • Beginning January 1 and ending on December 31 of each calendar year • Example: Beginning on January 1, 2011 and ending on December 31, 2011

28. Political Action Committee (1 Cycle) • Beginning January 1 and ending on December 31 of each calendar year • Example: Beginning on January 1, 2011 and ending on December 31, 2011

29. Ballot Initiative Committee (1 Cycle) • Beginning January 1 and ending on December 31 of each calendar year • Example: Beginning on January 1, 2011 and ending on December 31, 2011

30. Contribution Limits By Recipient Committee Types • New to Illinois, Effective January 1, 2011 • Limits are for each election cycle • No limitation on total amount can receive • No limitation on total amount that can be donated to various political committees

31. Candidate Political Committee (Recipient of Contributions) (I) • Individuals $5,000 • Corporation, union or association $10,000 • Other candidate political committees $50,000 • Political action committee $50,000 • Political party committee (Candidate’s general election cycle) Unlimited • Political party committee (Statewide candidate’s primary election cycle) $200,000 • Political party committee (State Senate, Supreme or Appellate Court in Cook County,or Cook County county-wide officers’ primary election cycle) $125,000

32. Candidate Political Committee (Recipient of Contributions) (II) • Political party committee (State Representative, Supreme or Appellate Court outside Cook County, county officers outside Cook County, municipal offices in Cook County, county officers in Cook County elected by less than all county voters [primary election cycle]) $75,000 • Any other office primary election cycle $50,000 • Candidate political committee of candidate for General Assembly can accept contributions from only one legislative caucus committee No contributions from ballot initiative committee

33. Political Party Committee(Recipient of Contributions) • Individual $10,000 • Corporation, union or association $20,000 • Political action committee $50,000 • Candidate political committee or political party committee • During petition circulation through primary $50,000 • Any other time Unlimited • If recipient political party committee has filed statement of nonparticipation in next primary, it can accept unlimited contributions in period from first day to circulate petitions through day of primary election, e.g., September 6, 2011-March 20, 2012 • Legislative caucus committee cannot accept contributions from another legislative caucus committee • No contributions from ballot initiative committee

34. Political Action Committee (Recipient of Contributions) • Individual $10,000 • Corporation, union or association $20,000 • Political candidate committee $50,000 • Political action committee $50,000 • No contributions from ballot initiative committee

35. Ballot Initiative Committee (Recipient of Contributions) • No limits on contributions

36. Limits By Type of Contributor (I) Individual (Maker of Contribution) • Candidate political committee $5,000 • Political party committee $10,000 • Political action committee $10,000 • Ballot initiative committee None

37. Limits By Type of Contributor (II) Corporation, Union or Association (Maker of Contribution) • Candidate political committee $10,000 • Political party committee $20,000 • Political action committee $20,000 • Ballot initiative committee None

38. Limits By Type of Contributor (III) Candidate Political Committee (Maker of Contribution) • Candidate political committee $50,000 • Political party committee • Not participating in primary Unlimited • Participating in primary $50,000 (Limit repealed July 1, 2013) • Political action committee $50,000 • Ballot initiative committee None

39. Limits By Type of Contributor (IV) Political Party Committee (Maker of Contribution) • Candidate political committee $50,000 • Political party committee • If recipient committee not participating in primary Unlimited • If participating in primary $50,000 (Limit repealed July 1, 2013) • Political action committee $50,000 • Ballot initiative committee None • No transfers between legislative caucus committees • No limits on transfers between state political committee and federal political committee

40. COLA ADJUSTMENT • On January 1 of each odd-numbered year, the State Board of Elections shall adjust the contribution limits by using the Consumer Price Index and rounding the numbers to the nearest $100

41. Disposal of Excess Contributions • Excess contributions to either be returned to contributor or donated to charity • If not done within 15 days of receipt, excess contribution is escheated to State and political committee is subject to civil penalty of up to 150% of excess contribution

42. Self-Funding Candidates • Defined as candidate, spouse or child • Can make unlimited contributions to that candidate’s political committee • If during 12 months prior to an election, the designated persons contribute, loan or make independent expenditures for the benefit of the candidate, in aggregate, of more than • $250,000 for statewide constitutional officers • $100,00 for all other offices • To the candidate’s committee or to other committees that transfer funds to the candidate’s committee • Once threshold is reached, candidate must file within 1 day with State Board of Elections a Notification of Self-Funding detailing each such contribution or loan • Limits are removed for other candidates for same office

43. Disclaimer Notice • All fundraising solicitations to have the following disclosure: • A copy of our report filed with the State Board of Elections is (or will be) available on the Board’s website (www.elections.il.gov) or for purchase from the State Board of Elections, Springfield, Illinois

44. What is a Contribution? • Money or anything of value knowingly received in connection with the election, nomination or retention to Illinois public office, or in connection with any ballot initiative • “Anything of value” includes all things, services or goods • includes an electioneering communication made in concert or cooperation with the recipient candidate or committee • services of an employee donated by an employer, unless the services are providedvoluntarily and without promise or expectation of compensation from any source

45. What is Not a Contribution? • Voluntary unpaid services • Use of individual’s real or personal property & the cost of invitations, food & beverages provided on individual’s residential premises for candidate-related activities, provided the value provided does not exceed $150 in a reporting period • The sale of food or beverage by a vendor as long as vendor charges at least the cost to the vendor of the food or beverage • Communications by a corporation or association to its members, stockholders or executive or administrative personnel or their families • Voter registration or other campaigns that make no mention of a clearly identified candidate, ballot initiative, political party, group, or combination thereof • Independent expenditures • Interest or other investment income or refunds or returns of a committee’s previous expenditures (but they do have to be reported as “Other Income”)

46. Anonymous Contributions Prohibited • Anonymouscontribution, or contribution made by one person in the name of another, are prohibited • Funds escheat to the State of Illinois • Treasurer to “immediately” forward to the State Treasurer

47. Unauthorized Solicitation of Campaign Funds • Another political committee must be authorized in writing to solicit contributions or make expenditures on behalf of a candidate • If not authorized, soliciting committee must include disclaimer on all literature and advertising that mentions candidate • Disclaimer must state that producing committee is not authorized by candidate, and that candidate is not responsible for activities of the committee

48. IRS Notice • The Internal Revenue Service requires political committees and organizations whose gross annual receipts normally exceed $100,000 to include a clear and easily recognizable statement on fund solicitations that contributions to the committee are not deductible as charitable contributions for federal income tax purposes

49. Employer & Occupation Information • In cases of contributions, including loans or endorsement of loans, in the aggregate of more than $500 in a quarterly reporting period by an individual, the committee is to report the person’s employer and occupation • Committee is required to make a “good faith effort” to obtain the information

50. Report of Receipt of Contribution • Every person who receives a contribution must provide the amount, name and address of the contributor and the date it was received. • Must be provided to the treasurer of the committee within five days of the receipt of the contribution, or on demand of the treasurer.