Bill Text: IL HB2537 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Election Code. Provides that a political committee randomly selected to conduct an audit shall only be required to conduct the audit if it was required to file at least one quarterly report during the period to be covered by the audit and has a fund balance of $10,000 or more, an average closing fund balance of $10,000 or more on quarterly reports, or average total receipts of $4,000 or more on quarterly reports. Requires a political committee owing unpaid fines at the time of its random selection to conduct an audit.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB2537 Detail]

Download: Illinois-2021-HB2537-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB2537 Introduced , by Rep. Denyse Stoneback SYNOPSIS AS INTRODUCED:
10 ILCS 5/9-13 from Ch. 46, par. 9-13
Amends the Election Code. Provides that a political committee selected to conduct an audit shall only be required to conduct the audit if it was required to file at least one quarterly report during the period to be covered by the audit and has a fund balance of $10,000 or more, an average closing fund balance of $10,000 or more on quarterly reports, or average total receipts of $4,000 or more on quarterly reports. Requires a political committee owing unpaid fines at the time of its random selection to conduct an audit.
LRB102 14079 SMS 19431 b
A BILL FOR
HB2537 LRB102 14079 SMS 19431 b
AN ACT concerning elections.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Election Code is amended by changing
Section 9-13 as follows:
(10 ILCS 5/9-13) (from Ch. 46, par. 9-13)
Sec. 9-13. Audits of political committees.
(a) The Board shall have the authority to order a
political committee to conduct an audit of the financial
records required to be maintained by the committee to ensure
compliance with Sections 9-8.5 and 9-10. Audits ordered by the
Board shall be conducted as provided in this Section and as
provided by Board rule.
(b) The Board may order a political committee to conduct
an audit of its financial records for any of the following
reasons: (i) a discrepancy between the ending balance of a
reporting period and the beginning balance of the next
reporting period, (ii) failure to account for previously
reported investments or loans, or (iii) a discrepancy between
reporting contributions received by or expenditures made for a
political committee that are reported by another political
committee, except the Board shall not order an audit pursuant
to this item (iii) unless there is a willful pattern of

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inaccurate reporting or there is a pattern of similar
inaccurate reporting involving similar contributions by the
same contributor. Prior to ordering an audit, the Board shall
afford the political committee due notice and an opportunity
for a closed preliminary hearing. A political committee shall
hire an entity qualified to perform an audit; except, a
political committee shall not hire a person that has
contributed to the political committee during the previous 4
years.
(c) In each calendar year, the Board shall randomly select
order no more than 3% of registered political committees to
conduct an audit. The Board shall establish a standard,
scientific method of selecting the political committees that
are to be audited so that every political committee has an
equal mathematical chance of being selected. A political
committee selected to conduct an audit through the random
selection process shall only be required to conduct the audit
if it was required to file at least one quarterly report during
the period to be covered by the audit and has: (1) a fund
balance of $10,000 or more as of the close of the most recent
reporting period; (2) an average closing fund balance of
$10,000 or more on quarterly reports occurring during the
2-year period to be covered by the audit; or (3) average total
receipts of $4,000 or more on quarterly reports occurring
during the 2-year period to be covered by the audit.
Notwithstanding any other provision of this subsection, a

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political committee owing unpaid fines at the time of its
random selection shall be ordered to conduct an audit.
(d) Upon receipt of notification from the Board ordering
an audit, a political committee shall conduct an audit of the
financial records required to be maintained by the committee
to ensure compliance with the contribution limitations
established in Section 9-8.5 and the reporting requirements
established in Section 9-3 and Section 9-10 for a period of 2
years from the close of the most recent reporting period or the
period since the committee was previously ordered to conduct
an audit, whichever is shorter. The entity performing the
audit shall review the amount of funds and investments
maintained by the political committee and ensure the financial
records accurately account for any contributions and
expenditures made by the political committee. A certified copy
of the audit shall be delivered to the Board within 60 calendar
days after receipt of notice from the Board, unless the Board
grants an extension to complete the audit. A political
committee ordered to conduct an audit through the random
selection process shall not be required to conduct another
audit for a minimum of 5 years unless the Board has reason to
believe the political committee is in violation of Section
9-3, 9-8.5, or 9-10.
(e) The Board shall not disclose the name of any political
committee ordered to conduct an audit or any documents in
possession of the Board related to an audit unless, after

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review of the audit findings, the Board has reason to believe
the political committee is in violation of Section 9-3, 9-8.5,
or 9-10 and the Board imposed a fine.
(f) Failure to deliver a certified audit in a timely
manner is a business offense punishable by a fine of $250 per
day that the audit is late, up to a maximum of $5,000.
(Source: P.A. 100-784, eff. 8-10-18.)