Bill
HB 3071
Illinois bans political spending by foreign-influenced firms and requires a CEO-signed certification within 7 days of any contribution; penalties apply for violations.
Status: Enacted (filed without Governor’s signature 2025-06-20). Effective: immediate (official bill text originally listed July 1, 2025; final legislative status records show effective 2025-06-20).
Purpose
- To restrict political contributions and expenditures by business entities that are subject to meaningful foreign ownership or control, and to create a certification and enforcement framework to limit foreign-influenced money from being used for Illinois political activity.
What the bill does — key provisions
- Adds new definitions to the Illinois Election Code (Sections 9-1.16 through 9-1.19) for:
- Chief executive officer (corporate officer with highest authority over entity affairs).
- Foreign national (non‑U.S. citizens/residents, foreign governments, political parties, and entities organized or principally based in foreign countries).
- Foreign investor (includes foreign governments, foreign political parties, foreign-organized entities, non‑U.S. individuals who are not lawful permanent residents, and entities majority‑owned (50%+) by such actors).
- Foreign-influenced business entity (as defined by thresholds of beneficial ownership).
- Triggers include: a single foreign investor owning ≥1% of equity/voting shares/membership units; or 2+ foreign investors holding, in aggregate, ≥5% — with calculation rules tied to Business Corporation Act and SEC beneficial‑ownership rules (17 CFR 240.13d-3 and 240.13d-5). Mutual fund holdings based in the U.S. are excluded from these calculations.
- New Section 9-8.7: Prohibits a foreign-influenced business entity from making contributions, donations, expenditures (including independent expenditures), offers/agreements to contribute, electioneering communications, or support/opposition for ballot initiatives, if the contribution/expenditure is made with the express or implied condition that funds be used for political purposes.
- Certification requirement: Within 7 days after making a contribution/expenditure, a for‑profit business entity must:
- File a certification with the State Board of Elections signed by the CEO stating the entity was not foreign‑influenced on the date of the contribution/expenditure (under penalty of perjury).
- Provide a copy of that certification to the recipient after reasonable inquiry.
- Enforcement and penalties:
- State Board of Elections may assess a civil penalty equal to the amount of the prohibited contribution or expenditure.
- The statute states it does not create liability for candidates or political committees that reasonably rely on a provided certification; candidates/committees may rely in good faith on a certification.
- Edits to Section 9-28.5 (injunctive relief): Authorizes the Attorney General or local State’s Attorney (and certain political committees) to seek injunctions to stop electioneering communications when registration/disclosure requirements have not been met.
Who or what is affected
- Primary: for‑profit business entities meeting the “foreign‑influenced” ownership thresholds; their CEOs (responsible for certifications); foreign investors as defined.
- Secondary: political candidates, political committees, ballot initiative campaigns, vendors producing electioneering communications, State Board of Elections, Attorney General and State’s Attorneys (enforcement roles).
Potential impacts and considerations
- Intended to reduce or block political spending tied to foreign ownership or control.
- Imposes new due‑diligence and reporting obligations on businesses to determine beneficial ownership consistent with corporate and SEC rules.
- Creates exposure to civil penalties for noncompliant entities; provides safe‑harbor language for recipients who rely on certifications in good faith.
- May increase administrative burden and could deter contributions where ownership questions remain unresolved.
Legislative timeline (selected)
- Introduced: 2/6/2025. Multiple committee actions, amendments, and conference committee steps in spring 2025. Enrolled and signed by both chambers late May/early June 2025. Filed without Governor’s signature and recorded effective 6/20/2025.
Compiled from official sources — confirm details with the bill’s official record.
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