Transparency Needed in Legislators’ Loans from Political Committees
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via REBOOT Illinois
“Due to the ongoing effects of last year’s state budget impasse, some legislators have expressed difficulties dealing with delayed paychecks. Loans from candidate committees have been used as a way to tide them over until they are compensated in a more timely manner. While political committees in Illinois are able to give and receive loans at any time, this aspect of campaign finance law is rarely studied in detail in our state.ICPR’s research team examined this topic to better understand best practices for improving transparency in the process.
In June, Representative Chad Hays brought this topic to the forefront when taking out a loan from his own candidate committee. Representative Hays (R-Catlin), in an abundance of caution, was very careful throughout the process to ensure no laws were broken. He clearly stated that his loan’s purpose was “to cover delayed legislative salary,” and paid it back within one month at market interest rate.
This type of interaction between a political committee and an individual, including between candidates and their own committees, is considered legal in Illinois. Loans are included in the definitions for contributions and expenditures, and are held to the same disclosure standards. However, current state law allows for areas of vagueness and confusion on terms for repayment, interest, and purpose.”
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