Key Chamber Issues
SB 1922 (Raoul; Madigan) – This bill contained the City of Chicago's public employee pension reform legislation. It was signed into law by Governor Quinn as Public Act 98-641. SB 1922 was strongly supported by the Chamber.
SB 68 (Lightford) – Introduced last year as a vehicle bill to increase Illinois’ minimum wage, this legislation had several amendments filed by its sponsor. The version that passed out of the Senate Executive Committee in March and was pending on the Senate Floor at the end of session would have increased the Illinois minimum wage to $9.25 per hour on October 1, 2014, $10 per hour on July 1, 2015, and $10.65 per hour on July 1, 2016. The Chamber, along with a coalition of business groups, opposes raising the state's minimum wage. Currently, the minimum wage in Illinois is $8.25 per hour, a full $1.00 higher than all of our neighboring states, and the fourth highest in the nation.
HB 3814 (Madigan; Lightford) places a statewide advisory public question to be submitted to the voters at the November 4, 2014 general election asking whether the minimum wage in Illinois for adults over the age of 18 should be raised to $10 per hour by January 1, 2015. HB 3814 passed both houses and was sent to the governor.
SB 3287 (Raoul; Bradley) – This legislation amends the Workers' Compensation Act to provide changes regarding the right to recover damages for injury or death from a service organization that is wholly owned by the employer or the employer's insurer or broker. The Chamber was opposed to this legislation which would eliminate the workers’ compensation exclusive remedy/immunity enjoyed by many companies that provide safety consulting services. Although there was a sizable coalition of business and construction groups opposed to SB 3287, the bill was a priority of the Illinois Trial Lawyers Association and passed both houses. It was signed by the governor and became Public Act 98-633.
HB1154 (Madigan; Raoul) – Amended in the Senate late in the session to include a reform of Cook County’s public employee pensions, HB 1154 passed the Senate, but failed to advance in the House. The pension plan was negotiated by the Cook County Board with some of its employee unions and included provisions similar to those contained in the City’s pension reform legislation, although the COLA’s would still be calculated on a compounded basis. The Chamber supported HB 1154.
House Bill 4609 (Feigenholtz) – This bill would have required the Illinois General Assembly to approve any fire sprinkler mandate by the state fire marshal and would have created a task force to review fire safety procedures and practices. The Chamber was a strong supporter of HB 4609. In separate legislation (SJR 70), Senate President John Cullerton proposed the creation of the task force, but did not include the prohibition of a statewide mandate. Ultimately, Cullerton and Feigenholtz decided not to call their respective legislation for a vote in their chambers. Instead, they met with State Fire Marshal Larry Matkaitis on May 29 (Chamber representatives were also present at that meeting), and Matkaitis released a public statement on May 30 stating that he would consult with local officials and state legislators before proposing any new fire sprinkler laws.
House Revenue and Finance/State Government Joint Committee – After months of hearings, testimony and comprehensive documentation of the tax and economic development climate in Illinois, including that provided by Chamber Taxation Forum Chairman James Kane, the Joint Committee issued a report on May 28 which included recommendations regarding the Illinois corporate franchise tax, corporate income tax, income tax credits, Illinois EDGE program, and Manufacturer's Purchase Credit. The Joint Committee did not propose any implementing legislation. Instead, a separate proposal to make significant changes to the EDGE program was put forward by Speaker Madigan, first in HB 3890, and on the last day of the session, in SB 346. The latter bill passed the House, but not the Senate. (Although the Chamber participated in the Joint Committee’s hearings and deliberations, it did not support the separate EDGE proposal.)
Other Issues: Senate
SB 352 (Hutchinson; Currie) – The so-called Amazon bill, SB 352 provides that a retailer or serviceman who has a contract with a person located in Illinois under which the person provides to the potential customers certain services and purchases would create a rebuttable presumption that the retailer or serviceman is a retailer or serviceman doing business in the state. The Chamber was neutral on this bill which passed both houses and is pending action by the governor.
SB 649 (Haine; Madigan) – House amendments proposed by Rep. John Bradley at the end-of-session would have placed a moratorium on hydraulic fracking in parts of the state until the proposed rule-making process that implements last year’s fracking authorization legislation (SB 1715) could be expedited. Opposed by the Chamber, the amended SB 649 did not advance in the House.
SB 1739 (Link; Rita) – Passed by the Senate in 2013, this bill creates the Chicago Casino Development Authority Act and expands gaming to include many of the same provisions of previous legislation: a Chicago land-based casino and four new riverboats; additional gaming positions at existing casinos, which can become land-based; new gaming positions at the state’s six racetracks (racinos); additional revenue earmarked for certain state programs; and new ethics measures including stronger regulatory control by the Illinois Gaming Board and the prohibition of campaign contributions from gaming interests. Rep. Bob Rita held separate hearings before the House Executive Committee on April 16 to review amendments to the bill, including one that contains a stand-alone Chicago casino. The Chamber has been a longtime advocate of a Chicago casino and testified in this hearing. There was no further action on this legislation in the House during the session.
SB 2612 (Kotowski; Currie) – SB2612 creates the Use and Occupation Tax Reform Task Force for the purpose of conducting a study on modernizing Illinois’ sales tax system; it also includes sales tax sourcing provisions for over-the-counter, vending machine, and mineral sales. The Chamber was neutral on this bill which passed both houses and is awaiting the governor’s action.
SB 2758 (Biss; Currie) – This legislation creates the Illinois Secure Choice Savings Program Act. It would have established a retirement savings program in the state treasury in the form of an automatic enrollment payroll deduction IRA with the intent of promoting retirement savings for private-sector employees. Opposed by the Chamber and a coalition of businesses because of the mandate on employers, SB 2758 was amended numerous times in both chambers; it passed the Senate but did not get called for a vote in the House.
SB 2776 (Steans; Mautino) – Supported by the Chamber, this legislation would have reduced the limited liability company fee collected by the Secretary of State for the filing of articles of organization, applications for admission, and restated articles of organization from $500 to $39. Championed early on by the governor as part of a change in the overall tax structure, SB 2776 passed the Senate unanimously on April 1, but was never called for a vote in the House.
SB 2789 (Munoz) and HB 4420 (Berrios) – Both of these bills would have created the Earned Sick Time Act to provide that all employers that employ 20 or more employees shall provide paid sick time to their employees. The Chamber opposed both of these measures, neither of which was called for a vote in their respective committees.
SB 3038 (Raoul; Sandack) – This legislation changes the definitions and the type of remedy available under the Workplace Violence Act and modifies sections concerning the employer's right to a workplace protection restraining order and remedies. The Chamber was neutral on this legislation which passed both houses and awaits the governor’s action.
SB 3401 (Hutchinson) – This bill contained three business tax increases. It decouples Illinois from the federal domestic production activities deduction, ends the dividends received deduction, and repeals the non-combination rule for those that apportion income to Illinois. The Chamber opposed SB 3401 which was not called for a vote by the sponsor in the Senate Revenue Committee.
SB 3524 (Hunter) – This proposal would have put a penny-per-ounce tax on bottled sugar-sweetened beverages; it did not advance in the Senate. At the end of session, an attempt to amend an attempt to amend HB 397 (Gabel) with the same provision failed in the House Revenue and Finance Committee. The Chamber opposed both bills.
Other Issues: House
HB 397 (Gabel) with the same provision failed in the House Revenue and Finance Committee. The Chamber opposed both bills.
HB 924 (Hoffman; Harmon) – Pending in the Senate since it was approved by the House last year, this bill was opposed by the Chamber because it would have amended the state's prevailing wage act requiring contractors and subcontractors to report the hours worked by minorities and females. A Senate amendment filed late in May would have re-inserted many of the original provisions, but the bill was not called for a vote before adjournment.
HB 2378 (Mayfield; Hunter) – This bill removes the prohibition on sealing of records of qualified probation on certain misdemeanor offenses and of arrests or charges not initiated by arrest which result in a conviction for a misdemeanor crime of violence. The Chamber was neutral on HB 2378, which passed both houses and is awaiting action by the governor.
HB 2453 (Bradley; Cullerton) – This legislation provides for the statewide 9-1-1 administrator to develop, implement, and oversee a uniform statewide 9-1-1 system for all areas of Illinois outside of Chicago. The bill also allows the City of Chicago to impose a prepaid wireless 9-1-1 surcharge not to exceed 9% per retail transaction until July 1, 2015 (worth approximately $50 million). The Chamber did not take a position on HB2453 which passed both houses and became Public Act 98-634.
HB 2846 (Golar) – HB 2846 created the Best Candidate for the Job Act which provides that private and public employers shall properly consider for employment and licenses persons previously convicted of one or more criminal offenses. It would have prohibited discrimination against such persons unless there is a direct relationship between the offense and the specific license or employment sought. The Chamber opposed HB 2846 which eventually had several amendments, but was not called for a vote in the House.
HB 4211 (Franks) – HB 4211 would have prohibited an electronic system as the only method for payment of rent in residential real estate. It would not have allowed property owners and managers to charge a reasonable fee for the administrative burdens associated with processing rent payments received by check or another electronic means. The Chamber opposed this bill which was defeated in the House 46-65.
HB 4465 (Thapedi) – The so-called carbon tax, HB 4465 would have capped greenhouse gas emissions in industrial facilities. The bill was strongly opposed by a coalition of business groups, including the Chamber, and did not get called for a vote in the House Environment Committee.
HB 4479 (Madigan) – Proposed by Speaker Madigan early in the session, HB 4479 would have reduced the state's income tax rate on corporate profits to 3.5 percent. The current rate is 7 percent which is scheduled to be reduced to 5.25 percent when the income tax increase approved in 2011 expires at the end of the year. The Chamber was supportive of the idea to cut corporate taxes as a way to make Illinois more competitive with surrounding states. Under the Speaker's proposal, Illinois effective rate when combined with the personal property replacement tax would have been 6 percent, giving Illinois the lowest corporate tax rate in the region. The bill did not advance out of the House Rules Committee after its introduction.
HB 5563 (K. Burke; Martinez) – Amends the Equal Pay Act of 2003 to provide that the Department of Labor may refer for investigation a complaint alleging a violation of the Act to the Department of Human Rights if the complaint also alleges a violation of the Illinois Human Rights Act. HB 5563 passed both houses unanimously and is pending action by the governor. The Chamber did not take a position on this bill.
HB 5638 (Mitchell) – HB 5638 prevents employers from conducting criminal history checks until after the employer has received an application from and interviews an applicant. The Chamber opposed this bill which was not was not called for a vote in the House Labor and Commerce Committee.
HB 5701 (Mayfield; Munoz) – The Job Opportunities for Qualified Applicants Act, this bill provides that, with the exception of positions where employers are required to exclude applicants with certain criminal convictions from employment due to federal or state law, an employer may not inquire about or into, consider, or require disclosure of the criminal record or criminal history of an applicant until the applicant has been determined qualified for the position and notified that the applicant has been selected for an interview; or, if there is not an interview, until after a conditional offer of employment is made to the applicant. Employer groups worked with the sponsor to make changes to this bill, which passed both houses and awaits the governor’s action. The Chamber did not take a position on HB 5701.
Other Issues: Constitutional Amendments
HJRCA 51 (Madigan) – A proposed constitutional amendment to tax incomes above $1 million, this legislation passed the House Executive Committee but was not called for a vote in the full House. Instead, an advisory referendum (House Bill 3816, sponsored by Madigan and Noland) will be on the ballot in November; it provides for each school district to receive additional revenue, based on their number of students, from an additional 3% tax on income greater than $1,000,000. HB 3816 passed both houses and was sent to the governor. The Chamber opposed both of these measures.
SJRCA 40 (Harmon) – The Chamber opposed this proposal to put a constitutional amendment on the ballot that would permit a graduated rate for the state income tax on individuals and corporations. It would have provided that there may be one tax on the income of individuals and corporations, that this may be a tax where lower rates apply to lower income levels and higher rates apply to higher income levels. SJRCA 70 was passed by the Senate Executive Committee, but did not advance out of the full Senate.
Employment Law Issues
The Chamber monitored dozens of bills that dealt with workers compensation, unemployment insurance and other wage issues. Listed below are a few of note:
SB 3037 (Althoff) – This bill sought to exempt certain employees regarding overtime provisions of the Illinois Minimum Wage law. It was supported by the Chamber, but was not called by the sponsor for a vote in the Senate Labor and Commerce Committee.
SB 3530 (Stadelman; Madigan-Mautino) – Makes numerous changes to the state’s Unemployment Insurance Act as developed by the Illinois Department of Employment Security and its advisory committee as part of the agreed bill process. Supported by the Chamber, the bill passed the House but was still pending in the Senate when the session adjourned.
HB 3740 (Kay) – HB 3740 would have made comprehensive changes to the Workers’ Compensation Act that were supported by the employer community. Supported by the Chamber, the bill was not called for a vote in the House Labor and Commerce Subcommittee.
HB 6218 (Durkin) – Supported by the Chamber, this bill would have amended the Workers' Compensation Act by establishing a new causation standard. In addition to defining the terms "accident" and "injury," the bill provided that "injury" includes the aggravation of a pre-existing condition by an accident arising out of and in the course of the employment, but only for so long as the aggravation of the pre-existing condition continues to be the major contributing cause of the disability. Supported by most of the House Republican caucus, HB 6218 was not released from the House Rules Committee and did not advance.
Prepared by Joan Parker, Joan A. Parker Government Affairs, for the Chicagoland Chamber of Commerce
