Illinois Amends Campaign Finance Law To Address Independent Expenditures By 'Super PACs'

Illinois Governor Pat Quinn recently approved amendments to the state's campaign finance law intended to address independent campaign expenditures by so-called "Super PACs." The law, Public Act 97-766 (the "Act"), took effect on July 6, 2012.

Illinois's current campaign finance system, which took effect on January 1, 2011, requires political committees to register with, and disclose campaign finance activity to, the Illinois State Board of Elections. The law also imposes limits on campaign contributions, which are summarized in the table in Appendix A. The law generally applies to elections for state and local office in Illinois and to Illinois referenda, but not to elections for federal office.

The Act creates a new type of political committee, known as an "independent expenditure committee" (and commonly referred to as a "Super PAC"), which makes campaign expenditures—such as public advertisements advocating for or against particular candidates—that are not coordinated with any candidate in that election. Consistent with the US Supreme Court's decision in Citizens United v. FEC, independent expenditures are protected by the First Amendment. Earlier this year, the US District Court for the Northern District of Illinois ruled that Illinois's campaign finance limits cannot be applied to independent expenditure committees.

Under the Act, an independent expenditure committee must register with the Illinois State Board of Elections whenever it makes expenditures in an aggregate amount exceeding $3,000 in any 12-month period in support or opposition of a candidate for state or local office or a public referendum. As a registered political committee, the independent expenditure committee must file periodic disclosure reports with the Illinois State Board of Elections. An independent expenditure committee is not subject to any fundraising or expenditure limits. It may not, however, hold joint fundraisers with any Illinois candidate or political party committee.

In addition, a natural person acting alone may personally fund independent expenditures without forming a committee. That natural person must, however, report all expenditures to the Illinois State Board of Elections, continuously in $1,000-increments.

The Act also lifts the general fundraising limits applicable to candidates if there are significant independent expenditures made in that race. Specifically, the Act provides that if a natural person or an independent expenditure committee...