Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1354 Compare Versions

Only one version of the bill is available at this time.

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1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1354 Introduced 1/28/2025, by Sen. Michael E. Hastings SYNOPSIS AS INTRODUCED: New Act Creates the Tax Increment Financing and Zoning Ethics and Political Contributions Prohibition Act. Prohibits certain political contributions from those who receive a benefit from a TIF district or a benefit from a zoning variance. Requires corporate disclosure of directors, employees, investors, and family who receive a benefit from a TIF district or a benefit from a zoning variance. Establishes penalties for violations. Exempts certain unrelated persons and unrelated contributions. Defines terms. Effective September 1, 2025. LRB104 07863 BDA 17909 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1354 Introduced 1/28/2025, by Sen. Michael E. Hastings SYNOPSIS AS INTRODUCED: New Act New Act Creates the Tax Increment Financing and Zoning Ethics and Political Contributions Prohibition Act. Prohibits certain political contributions from those who receive a benefit from a TIF district or a benefit from a zoning variance. Requires corporate disclosure of directors, employees, investors, and family who receive a benefit from a TIF district or a benefit from a zoning variance. Establishes penalties for violations. Exempts certain unrelated persons and unrelated contributions. Defines terms. Effective September 1, 2025. LRB104 07863 BDA 17909 b LRB104 07863 BDA 17909 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1354 Introduced 1/28/2025, by Sen. Michael E. Hastings SYNOPSIS AS INTRODUCED:
3	3	New Act New Act
4	4	New Act
5	5	Creates the Tax Increment Financing and Zoning Ethics and Political Contributions Prohibition Act. Prohibits certain political contributions from those who receive a benefit from a TIF district or a benefit from a zoning variance. Requires corporate disclosure of directors, employees, investors, and family who receive a benefit from a TIF district or a benefit from a zoning variance. Establishes penalties for violations. Exempts certain unrelated persons and unrelated contributions. Defines terms. Effective September 1, 2025.
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7	7	LRB104 07863 BDA 17909 b
8	8	A BILL FOR
9	9	SB1354LRB104 07863 BDA 17909 b SB1354 LRB104 07863 BDA 17909 b
10	10	SB1354 LRB104 07863 BDA 17909 b
11	11	1 AN ACT concerning ethics.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 1. Short title. This Act may be cited as the Tax
15	15	5 Increment Financing and Zoning Ethics and Political
16	16	6 Contributions Prohibition Act.
17	17	7 Section 5. Purpose. The purpose of this Act is to promote
18	18	8 transparency, prevent conflicts of interest, and protect the
19	19	9 integrity of the democratic process by prohibiting directors,
20	20	10 employees, investors, and their immediate family members from
21	21	11 making political contributions to candidates, political
22	22	12 organizations, political action committees (PACs), or
23	23	13 independent expenditure committees associated with taxing
24	24	14 districts that benefit from tax increment financing (TIF)
25	25	15 districts and zoning variances. This prohibition aims to
26	26	16 ensure that political donations are not influenced by
27	27	17 financial or other interests derived from public funds, TIFs,
28	28	18 or zoning decisions.
29	29	19 Section 10. Definitions. In this Act:
30	30	20 "Benefit from a TIF district" means a financial or other
31	31	21 material benefit from a TIF district, including, but not
32	32	22 limited to, grants, loans, tax rebates, property tax
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36	36	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1354 Introduced 1/28/2025, by Sen. Michael E. Hastings SYNOPSIS AS INTRODUCED:
37	37	New Act New Act
38	38	New Act
39	39	Creates the Tax Increment Financing and Zoning Ethics and Political Contributions Prohibition Act. Prohibits certain political contributions from those who receive a benefit from a TIF district or a benefit from a zoning variance. Requires corporate disclosure of directors, employees, investors, and family who receive a benefit from a TIF district or a benefit from a zoning variance. Establishes penalties for violations. Exempts certain unrelated persons and unrelated contributions. Defines terms. Effective September 1, 2025.
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41	41	LRB104 07863 BDA 17909 b
42	42	A BILL FOR
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48	48	New Act
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67	67	1 abatements, infrastructure improvements, or other funding from
68	68	2 a TIF district.
69	69	3 "Benefit from a zoning variance" means permission to use
70	70	4 or develop land in a manner not permitted under existing
71	71	5 zoning laws, which may include the ability to increase
72	72	6 property value, increase development potential, or receive
73	73	7 other benefits from the zoning variance decision.
74	74	8 "Director" means an individual serving as a director or
75	75	9 officer or in a similar position in any corporation,
76	76	10 organization, or entity receiving a benefit from a TIF
77	77	11 district or a benefit from a zoning variance.
78	78	12 "Employee" means an individual employed by a corporation,
79	79	13 organization, or entity receiving a benefit from a TIF
80	80	14 district or a benefit from a zoning variance, including
81	81	15 full-time, part-time, and contractual employees.
82	82	16 "Immediate family member" means a spouse, child, parent,
83	83	17 sibling, or any other relative residing in the same household
84	84	18 as the individual.
85	85	19 "Independent expenditure" has the meaning ascribed to that
86	86	20 term in 11 CFR 100.16.
87	87	21 "Independent expenditure committee" or "IEC" means one or
88	88	22 more persons that make independent expenditures or that
89	89	23 collect funds from one or more persons for the purpose of
90	90	24 making an independent expenditure.
91	91	25 "Investor" means any individual or entity who holds
92	92	26 ownership, equity interest, or shares in a corporation,
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103	103	1 organization, or entity receiving a benefit from a TIF
104	104	2 district or a benefit from a zoning variance.
105	105	3 "Political action committee" or "PAC" means a tax-exempt
106	106	4 organization (i) that is organized under Section 527 of the
107	107	5 U.S. Internal Revenue Code, (ii) that is created primarily to
108	108	6 influence the selection, nomination, election, appointment or
109	109	7 defeat of candidates to federal, state or local public office,
110	110	8 and (iii) that pools campaign contributions from members and
111	111	9 donates those funds to campaigns for or against candidates,
112	112	10 ballot initiatives, or legislation.
113	113	11 "Tax Increment Financing district" or "TIF district" means
114	114	12 a designated area within a county, municipality, park
115	115	13 district, library district, or school district in which
116	116	14 property taxes are captured and diverted to fund improvements,
117	117	15 infrastructure, and development in that area.
118	118	16 "Zoning variance" means a legal exception granted by a
119	119	17 municipality or unit of local government that allows a
120	120	18 property to be used or developed in a manner not otherwise
121	121	19 permitted by existing zoning laws or regulations.
122	122	20 Section 15. Prohibition of political contributions.
123	123	21 (a) No director of, employee of, or investor in any
124	124	22 corporation, organization, or entity that directly or
125	125	23 indirectly receives a benefit from a TIF district or a benefit
126	126	24 from a zoning variance or immediate family member of such a
127	127	25 person shall:
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138	138	1 (1) donate or otherwise contribute money, goods, or
139	139	2 services to any candidate for public office, political
140	140	3 organization, political action committee (PAC), or
141	141	4 independent expenditure committee seeking to influence
142	142	5 elections for offices in the county, municipality, park
143	143	6 district, library district, or school district from which
144	144	7 the TIF district or zoning variance originates; or
145	145	8 (2) make contributions to any political organization
146	146	9 or committee formed to influence elections for taxing
147	147	10 districts, including county, municipal, park district,
148	148	11 library district, or school district that receives taxes
149	149	12 from the same TIF district or whose jurisdiction
150	150	13 intersects with the boundaries of the TIF district or the
151	151	14 area benefiting from the zoning variance.
152	152	15 (b) No director of, employee of, or investor in any
153	153	16 corporation, organization, or entity that directly or
154	154	17 indirectly receives a benefit from a zoning variance or
155	155	18 immediate family member of such a person shall contribute to
156	156	19 any political action committee or independent expenditure
157	157	20 committee for 10 years after the zoning variance is voted on by
158	158	21 the corporate authorities of the municipality or unit of local
159	159	22 government. This prohibition extends to any individual or
160	160	23 entity that benefits, directly or indirectly, from a zoning
161	161	24 variance decision by contributing to or supporting political
162	162	25 action committees or independent expenditure committees that
163	163	26 seek to influence elections related to the same municipality
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174	174	1 or unit of local government, taxing district, or political
175	175	2 office affected by the zoning variance.
176	176	3 (c) The prohibitions in this Section apply to both direct
177	177	4 and indirect contributions made to candidates, political
178	178	5 parties, political action committees, independent expenditure
179	179	6 committees, or other political organizations that may impact
180	180	7 elections at the local level within any taxing district
181	181	8 associated with the TIF district or zoning variance.
182	182	9 Section 20. Disclosure of benefits from TIF districts and
183	183	10 zoning variances.
184	184	11 (a) Any corporation, organization, or entity receiving a
185	185	12 benefit from a TIF district or a benefit from a zoning variance
186	186	13 shall be required to disclose the names of directors,
187	187	14 employees, investors, and their immediate family members who
188	188	15 receive the benefit from a TIF district or the benefit from a
189	189	16 zoning variance to the appropriate governmental body
190	190	17 administering the TIF district or zoning variance. This
191	191	18 disclosure shall be made annually and shall be available for
192	192	19 public inspection.
193	193	20 (b) Political organizations, candidates, political action
194	194	21 committees, and independent expenditure committees shall also
195	195	22 be required to maintain records and disclose contributions
196	196	23 from individuals or entities that are subject to the
197	197	24 provisions of this Act.
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208	208	1 Section 25. Enforcement and penalties.
209	209	2 (a) Any person found to have violated the provisions of
210	210	3 this Act by making political contributions prohibited under
211	211	4 Section 15 shall be guilty of a Class A misdemeanor and subject
212	212	5 to the following penalties:
213	213	6 (1) a fine of up to $100,000 for each violation;
214	214	7 (2) an order of ineligibility to receive future
215	215	8 benefits from the relevant TIF district or zoning variance
216	216	9 for a period of up to 5 years; and
217	217	10 (3) imprisonment for up to one year.
218	218	11 (b) This Act may be enforced by the State's Attorney for
219	219	12 the county in which the violation occurred or the Attorney
220	220	13 General.
221	221	14 Section 30. Applicability. This Act does not apply to
222	222	15 persons making political contributions to candidates or
223	223	16 political organizations that are unrelated to the taxing
224	224	17 district from which the TIF district or zoning variance
225	225	18 originates, and it does not apply to political contributions
226	226	19 made at the State or federal level.
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