Bill Text: IL HB1416 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: Creates the Public Corruption Profit Forfeiture Act and amends the Election Code. Provides for the forfeiture to the State of Illinois of proceeds and profits derived through violations of the statutes concerning intimidation by public officials, bribery, or providing, attempting, offering to provide or soliciting, accepting, or attempting to accept a kickback, or including, directly or indirectly, the amount of any kickback prohibited in the contract price charged by a subcontractor to a prime contractor or a higher tier subcontractor or in the contract price charged by a prime contractor to any unit of State or local government for a public contract a kickback. Provides for distribution of the proceeds from forfeited property. Includes a continuing appropriation to the Department of State Police.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2015-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB1416 Detail]

Download: Illinois-2015-HB1416-Introduced.html

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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB1416 Introduced , by Rep. John D. Cavaletto SYNOPSIS AS INTRODUCED:
New Act
10 ILCS 5/9-8.10
Creates the Public Corruption Profit Forfeiture Act and amends the Election Code. Provides for the forfeiture to the State of Illinois of proceeds and profits derived through violations of the statutes concerning intimidation by public officials, bribery, or providing, attempting, offering to provide or soliciting, accepting, or attempting to accept a kickback, or including, directly or indirectly, the amount of any kickback prohibited in the contract price charged by a subcontractor to a prime contractor or a higher tier subcontractor or in the contract price charged by a prime contractor to any unit of State or local government for a public contract a kickback. Provides for distribution of the proceeds from forfeited property. Includes a continuing appropriation to the Department of State Police.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning criminal law.
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 Public
Corruption Profit Forfeiture Act.
Section 5. Legislative declaration. Public corruption is a
far reaching, continuing and extremely profitable criminal
enterprise, which diverts significant amounts of public money
for illicit purposes. Public corruption-related schemes
persist despite the threat of prosecution and the actual
prosecution and imprisonment of individual participants
because existing sanctions do not effectively reach the money
and other assets generated by those schemes. It is therefore
necessary to supplement existing sanctions by mandating
forfeiture of money and other assets generated by public
corruption-related activities. Forfeiture diminishes the
financial incentives which encourage and sustain public
corruption, restores public moneys which have been diverted by
public corruption, and secures for the people of the State of
Illinois assets to be used for enforcement of laws governing
public corruption.
Section 10. Penalties; forfeiture.

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(a) A person who is convicted of a violation of any of the
following Sections, subsections, and clauses of the Criminal
Code of 2012:
(1) clause (a)(6) of Section 12-6 (intimidation by a
public official),
(2) Section 33-1 (bribery), or
(3) subsection (a) of Section 33E-7 (kickbacks),
shall forfeit to the State of Illinois:
(A) any profits or proceeds and any property or
property interest he or she has acquired or maintained in
violation of any of the offenses listed in clauses (1)
through (3) of this subsection (a) that the court
determines, after a forfeiture hearing under subsection
(b) of this Section, to have been acquired or maintained as
a result of violating any of the offenses listed in clauses
(1) through (3) of this subsection (a); and
(B) any interest in, security of, claim against, or
property or contractual right of any kind affording a
source of influence over, any enterprise which he or she
has established, operated, controlled, conducted, or
participated in the conduct of, in violation of any of the
offenses listed in clauses (1) through (3) of this
subsection (a) that the court determines, after a
forfeiture hearing under subsection (b) of this Section, to
have been acquired or maintained as a result of violating
any of the offenses listed in clauses (1) through (3) of

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this subsection (a) or used to facilitate a violation of
one of the offenses listed in clauses (1) through (3) of
this subsection (a).
(b) The court shall, upon petition by the Attorney General
or State's Attorney, at any time after the filing of an
information or return of an indictment, conduct a hearing to
determine whether any property or property interest is subject
to forfeiture under this Act. At the forfeiture hearing the
State shall have the burden of establishing, by a preponderance
of the evidence, that property or property interests are
subject to forfeiture under this Act. There is a rebuttable
presumption at the hearing that any property or property
interest of a person charged by information or indictment with
a violation of any of the offenses listed in clauses (1)
through (3) of subsection (a) of this Section or who is
convicted of a violation of any of the offenses listed in
clauses (1) through (3) of subsection (a) of this Section is
subject to forfeiture under this Section if the State
establishes by a preponderance of the evidence that:
(1) the property or property interest was acquired by
the person during the period of the violation of any of the
offenses listed in clauses (1) through (3) of subsection
(a) of this Section or within a reasonable time after that
period; and
(2) there was no likely source for the property or
property interest other than the violation of any of the

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offenses listed in clauses (1) through (3) of subsection
(a) of this Section.
(c) In an action brought under this Act, in which any
restraining order, injunction or prohibition or any other
action in connection with any property or property interest
subject to forfeiture under this Act is sought, the circuit
court which shall preside over the trial of the person or
persons charged with any of the offenses listed in clauses (1)
through (3) of subsection (a) of this Section shall first
determine whether there is probable cause to believe that the
person or persons charged have committed a violation of any of
the offenses listed in clauses (1) through (3) of subsection
(a) of this Section and whether the property or property
interest is subject to forfeiture under this Act.
In order to make the determination, prior to entering the
order, the court shall conduct a hearing without a jury, in
which the State shall establish that there is: (i) probable
cause that the person or persons charged have committed any of
the offenses listed in clauses (1) through (3) of subsection
(a) of this Section and (ii) probable cause that any property
or property interest may be subject to forfeiture under this
Act. The hearing may be conducted simultaneously with a
preliminary hearing, if the prosecution is commenced by
information or complaint, or by motion of the State, at any
stage in the proceedings. The court may accept a finding of
probable cause at a preliminary hearing following the filing of

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a charge for violating any of the offenses listed in clauses
(1) through (3) of subsection (a) of this Section or the return
of an indictment by a grand jury charging any of the offenses
listed in clauses (1) through (3) of subsection (a) of this
Section as sufficient evidence of probable cause as provided in
item (i) above.
Upon that finding, the circuit court shall enter the
restraining order, injunction or prohibition, or shall take any
other action in connection with the property or property
interest subject to forfeiture under this Act, as is necessary
to insure that the property is not removed from the
jurisdiction of the court, concealed, destroyed, or otherwise
disposed of by the owner of that property or property interest
prior to a forfeiture hearing under subsection (b) of this
Section. The Attorney General or State's Attorney shall file a
certified copy of the restraining order, injunction, or other
prohibition with the recorder of each county where any property
of the defendant subject to forfeiture may be located. An
injunction, restraining order, or other prohibition issued
under this Act shall not affect the rights of any bona fide
purchaser, mortgagee, judgment creditor, or other lien holder
arising prior to the date of the filing.
The court may, at any time, upon verified petition by the
defendant, conduct a hearing to release all or portions of any
property or interest which the court previously determined to
be subject to forfeiture or subject to any restraining order,

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injunction, or prohibition or other action. The court may
release the property to the defendant for good cause shown and
within the sound discretion of the court.
(d) Prosecution under this Act may be commenced by the
Attorney General or a State's Attorney.
(e) Upon an order of forfeiture being entered under
subsection (b) of this Section, the court shall authorize the
Attorney General to seize any property or property interest
declared forfeited under this Act and under the terms and
conditions as the court shall deem proper. Any property or
property interest that has been the subject of an entered
restraining order, injunction, or prohibition or any other
action filed under subsection (c) shall be forfeited unless the
claimant can show by a preponderance of the evidence that the
property or property interest has not been acquired or
maintained as a result of a violation of any of the offenses
listed in clauses (1) through (3) of subsection (a) of this
Section or has not been used to facilitate a violation of any
of the offenses listed in clauses (1) through (3) of subsection
(a) of this Section.
(f) The Attorney General or his or her designee is
authorized to sell all property forfeited and seized under this
Act, unless the property is required by law to be destroyed or
is harmful to the public, and, after the deduction of all
requisite expenses of administration and sale, shall
distribute the proceeds of the sale, along with any moneys

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forfeited or seized, in accordance with subsection (g).
(g) All moneys and the sale proceeds of all other property
forfeited and seized under this Act shall be distributed as
follows:
(1) An amount equal to 50% shall be distributed to the
unit of local government whose officers or employees
conducted the investigation into a violation of any of the
offenses listed in clauses (1) through (3) of subsection
(a) of this Section and caused the arrest or arrests and
prosecution leading to the forfeiture. Amounts distributed
to units of local government shall be used for enforcement
of laws governing public corruption, or for other law
enforcement purposes. In the event, however, that the
investigation, arrest, or arrests and prosecution leading
to the forfeiture were undertaken solely by a State agency,
the portion provided under this subsection (g) shall be
paid into the State Asset Forfeiture Fund in the State
treasury to be used by that State agency in accordance with
law.
(2) An amount equal to 12.5% shall be distributed to
the county in which the prosecution resulting in the
forfeiture was instituted, deposited in a special fund in
the county treasury and appropriated to the State's
Attorney for use in accordance with law.
(3) An amount equal to 12.5% shall be distributed to
the Office of the State's Attorneys Appellate Prosecutor

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and deposited in the State Asset Forfeiture Fund, to be
used by the Office of the State's Attorneys Appellate
Prosecutor for additional expenses incurred in prosecuting
appeals arising under this Act. Any amounts remaining in
the Fund after all additional expenses have been paid shall
be used by the Office to reduce the participating county
contributions to the Office on a prorated basis as
determined by the board of governors of the Office of the
State's Attorneys Appellate Prosecutor based on the
populations of the participating counties.
(4) An amount equal to 25% shall be paid into the State
Asset Forfeiture Fund in the State treasury to be used by
the Department of State Police for the funding of the
investigation of public corruption activities. Any amounts
remaining in the Fund after full funding of the
investigations shall be used by the Department in
accordance with law to fund its other enforcement
activities.
(h) All moneys deposited under this Act in the State Asset
Forfeiture Fund are appropriated, on a continuing basis, to the
Department of State Police to be used in the manner set forth
in this Section.
Section 15. Forfeiture of political contribution. Whenever
any person pleads guilty to, or is found guilty of, any offense
under subsection (a) of Section 10 of this Act, in addition to

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any other penalty imposed by the court, all contributions (as
defined by Section 9-1.4 of the Election Code) or other
receipts held at the time of forfeiture by a political
committee (as defined by Section 9-1.9 of the Election Code) or
an organization subject to Section 9-7.5 of the Election Code,
which is controlled by that person shall be paid to the State
within 30 days from the date of the entry of the guilty plea or
conviction. Payments received by the State under this Section
shall be deposited into the General Revenue Fund.
Section 20. Fines.
(a) Whenever any person pleads guilty to or is found guilty
of an offense under this Act, a fine may be levied in addition
to any other penalty imposed by the court.
(b) In determining whether to impose a fine under this
Section and the amount, time for payment, and method of payment
of any fine so imposed, the court shall:
(1) consider the defendant's income, regardless of
source, the defendant's earning capacity, and the
defendant's financial resources, as well as the nature of
the burden the fine will impose on the defendant and any
person legally or financially dependent upon the
defendant;
(2) consider the proof received at trial, or as a
result of a plea of guilty, concerning any profits or other
proceeds derived by the defendant from the violation of

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this Act;
(3) take into account any other pertinent equitable
considerations; and
(4) give primary consideration to the need to deprive
the defendant of illegally obtained profits or other
proceeds from the offense.
(c) As a condition of a fine, the court may require that
payment be made in specified installments or within a specified
period of time, but the period shall not be greater than the
maximum applicable term of probation or imprisonment,
whichever is greater. Unless otherwise specified, payment of a
fine shall be due immediately.
(d) If a fine for a violation of this Act is imposed on an
organization, it is the duty of each individual authorized to
make disbursements of the assets of the organization to pay the
fine from assets of the organization.
(e) (1) A defendant who has been sentenced to pay a fine,
and who has paid part but not all of the fine, may petition the
court for an extension of the time for payment or modification
of the method of payment.
(2) The court may grant a petition made under this
subsection (e) if it finds that:
(i) the circumstances that warranted payment by
the time or method specified no longer exist; or
(ii) it is otherwise unjust to require payment of
the fine by the time or method specified.

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Section 25. Distribution of proceeds of fines.
(a) The proceeds of all fines received under the provisions
of this Act shall be transmitted to and deposited in the
treasurer's office at the level of government as follows:
(1) If the seizure was made by a combination of law
enforcement personnel representing differing units of
local government, the court levying the fine shall
equitably allocate 50% of the fine among these units of
local government and shall allocate 50% to the county
general corporate fund. In the event that the seizure was
made by law enforcement personnel representing a unit of
local government from a municipality where the number of
inhabitants exceeds 2,000,000, the court levying the fine
shall allocate 100% of the fine to that unit of local
government. If the seizure was made by a combination of law
enforcement personnel representing differing units of
local government, and at least one of those units
represents a municipality where the number of inhabitants
exceeds 2,000,000, the court shall equitably allocate 100%
of the proceeds of the fines received among the differing
units of local government.
(2) If the seizure was made by State law enforcement
personnel, then the court shall allocate 50% to the State
treasury and 50% to the county general corporate fund.
(3) If a State law enforcement agency in combination

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with a law enforcement agency or agencies of a unit or
units of local government conducted the seizure, the court
shall equitably allocate 50% of the fines to or among the
law enforcement agency or agencies of the unit or units of
local government which conducted the seizure and shall
allocate 50% to the county general corporate fund.
(b) The proceeds of all fines allocated to the law
enforcement agency or agencies of the unit or units of local
government under subsection (a) shall be made available to that
law enforcement agency as expendable receipts for use in the
enforcement of laws regulating public corruption and other
laws. The proceeds of fines awarded to the State treasury shall
be deposited in the State Asset Forfeiture Fund. Moneys from
this Fund may be used by the Department of State Police in the
enforcement of laws regulating public corruption and other
laws; and all other moneys shall be paid into the General
Revenue Fund in the State treasury.
Section 30. Preventing and restraining violations.
(a) The circuit courts of the State shall have jurisdiction
to prevent and restrain violations of this Act by issuing
appropriate orders, including, but not limited to: ordering any
person to divest himself or herself of any interest, direct or
indirect, in any enterprise; imposing reasonable restrictions
on the future activities or investment of any person,
including, but not limited to, prohibiting any person from

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engaging in the same type of endeavor as the enterprise engaged
in, the activities of which affect business in this State; or
ordering dissolution or reorganization of any enterprise,
making due provision for the rights of innocent persons.
(b) The Attorney General or the State's Attorney may
institute proceedings under this Section. In any action brought
under this Section, the court shall proceed as soon as
practicable to the hearing and determination of the action.
Pending that determination, the court may at any time enter any
temporary restraining orders, preliminary or permanent
injunctions, or prohibitions, or take any other actions
including the acceptance of satisfactory performance bonds by a
defendant, as it shall deem proper.
(c) Any person directly injured in his or her business,
person, or property by reason of a violation of this Act may
sue the violator in any appropriate circuit court and shall
recover threefold the damages he or she sustains and the cost
of the action, including a reasonable attorney's fee.
(d) A final judgment entered in favor of the People of the
State of Illinois in any criminal proceeding brought under this
Act shall estop the defendant in the criminal case from denying
the essential allegations of the criminal offense in any
subsequent civil proceeding brought under this Act.
Section 35. Venue. Any civil action or proceeding under
this Act against any person may be instituted in the circuit

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court of any county in which the person resides, is found, has
an agent, transacts his or her affairs, or in which property
that is the subject of these proceedings is located.
Section 40. Intent. It is the intent of the General
Assembly that this Act be liberally construed so as to effect
the purposes of this Act and be construed in accordance with
similar provisions contained in the Narcotics Profit
Forfeiture Act.
Section 45. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
Section 900. The Election Code is amended by changing
Section 9-8.10 as follows:
(10 ILCS 5/9-8.10)
Sec. 9-8.10. Use of political committee and other reporting
organization funds.
(a) A political committee shall not make expenditures:
(1) In violation of any law of the United States or of
this State.
(2) Clearly in excess of the fair market value of the
services, materials, facilities, or other things of value
received in exchange.
(3) For satisfaction or repayment of any debts other

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than loans made to the committee or to the public official
or candidate on behalf of the committee or repayment of
goods and services purchased by the committee under a
credit agreement. Nothing in this Section authorizes the
use of campaign funds to repay personal loans. The
repayments shall be made by check written to the person who
made the loan or credit agreement. The terms and conditions
of any loan or credit agreement to a committee shall be set
forth in a written agreement, including but not limited to
the method and amount of repayment, that shall be executed
by the chairman or treasurer of the committee at the time
of the loan or credit agreement. The loan or agreement
shall also set forth the rate of interest for the loan, if
any, which may not substantially exceed the prevailing
market interest rate at the time the agreement is executed.
(4) For the satisfaction or repayment of any debts or
for the payment of any expenses relating to a personal
residence. Campaign funds may not be used as collateral for
home mortgages.
(5) For clothing or personal laundry expenses, except
clothing items rented by the public official or candidate
for his or her own use exclusively for a specific
campaign-related event, provided that committees may
purchase costumes, novelty items, or other accessories
worn primarily to advertise the candidacy.
(6) For the travel expenses of any person unless the

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travel is necessary for fulfillment of political,
governmental, or public policy duties, activities, or
purposes.
(7) For membership or club dues charged by
organizations, clubs, or facilities that are primarily
engaged in providing health, exercise, or recreational
services; provided, however, that funds received under
this Article may be used to rent the clubs or facilities
for a specific campaign-related event.
(8) In payment for anything of value or for
reimbursement of any expenditure for which any person has
been reimbursed by the State or any person. For purposes of
this item (8), a per diem allowance is not a reimbursement.
(9) For the purchase of or installment payment for a
motor vehicle unless the political committee can
demonstrate that purchase of a motor vehicle is more
cost-effective than leasing a motor vehicle as permitted
under this item (9). A political committee may lease or
purchase and insure, maintain, and repair a motor vehicle
if the vehicle will be used primarily for campaign purposes
or for the performance of governmental duties. A committee
shall not make expenditures for use of the vehicle for
non-campaign or non-governmental purposes. Persons using
vehicles not purchased or leased by a political committee
may be reimbursed for actual mileage for the use of the
vehicle for campaign purposes or for the performance of

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governmental duties. The mileage reimbursements shall be
made at a rate not to exceed the standard mileage rate
method for computation of business expenses under the
Internal Revenue Code.
(10) Directly for an individual's tuition or other
educational expenses, except for governmental or political
purposes directly related to a candidate's or public
official's duties and responsibilities.
(11) For payments to a public official or candidate or
his or her family member unless for compensation for
services actually rendered by that person. The provisions
of this item (11) do not apply to expenditures by a
political committee in an aggregate amount not exceeding
the amount of funds reported to and certified by the State
Board or county clerk as available as of June 30, 1998, in
the semi-annual report of contributions and expenditures
filed by the political committee for the period concluding
June 30, 1998.
(b) The Board shall have the authority to investigate, upon
receipt of a verified complaint, violations of the provisions
of this Section. The Board may levy a fine on any person who
knowingly makes expenditures in violation of this Section and
on any person who knowingly makes a malicious and false
accusation of a violation of this Section. The Board may act
under this subsection only upon the affirmative vote of at
least 5 of its members. The fine shall not exceed $500 for each

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expenditure of $500 or less and shall not exceed the amount of
the expenditure plus $500 for each expenditure greater than
$500. The Board shall also have the authority to render rulings
and issue opinions relating to compliance with this Section.
(c) Nothing in this Section prohibits the expenditure of
funds of a political committee controlled by an officeholder or
by a candidate to defray the customary and reasonable expenses
of an officeholder in connection with the performance of
governmental and public service functions.
(d) Nothing in this Section prohibits the funds of a
political committee which is controlled by a person convicted
of a violation of any of the offenses listed in subsection (a)
of Section 10 of the Public Corruption Profit Forfeiture Act
from being forfeited to the State under Section 15 of the
Public Corruption Profit Forfeiture Act.
(e) Nothing in this Section prohibits the funds of a
political committee, or an organization subject to Section
9-8.6 of this Code, which is controlled by a person convicted
of a violation of any of the offenses listed in subsection (a)
of Section 10 of the Public Corruption Profit Forfeiture Act
from being forfeited under Section 15 of the Public Corruption
Profit Forfeiture Act.
(Source: P.A. 96-1019, eff. 1-1-11.)