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General Assembly Update - Education Funding Reform Approved
Back in May few would predicted that the Illinois General Assembly session would continue to the end of August, but it did. On August 27th, the four legislative leaders announced they had reached a compromise on an education funding plan that had seen many ups and downs prior to the compromise. Clearly, the stakes were high. Although all schools were expected to open on time, many faced shrinking cash reserves that would only allow them to remain open for a few months, so it was imperative that an agreement be reached and legislation approved.
At the end of regular session on May 31st, the Illinois General Assembly passed SB1 with the new evidence-based funding model. The Governor vetoed this bill and the House was not able to override the veto. After a summer of negotiations and several attempts to reach compromise, SB 1 was set aside and
SB1947 (Rep. Davis, D-Chicago; Sen. Manar, D-Bunker Hill) was passed and signed into law.
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The biggest differences in SB1947 from SB1 include: 1) the addition of a private school scholarship income tax credit; 2) a new provision for a school property tax extension reduction provision, and; 3) Chicago Public School teacher pension provisions and mandate relief. For a complete summary of SB1947, contact CAA.
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Other Substantive Legislation
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House Bill 3528 (Rita, D/Blue Island and Weaver, R/Peoria)
As originally introduced at the suggestion of the Illinois Realtors and IDFPR,
HB3528 would have made several changes to the Leasing Agent License Act which were strongly objected to by CAA. Following several productive discussions, CAA's concerns were removed and the bill passed both houses. With no opposition, the Governor signed the bill into law and becomes effective on January 1, 2018. In the end, CAA supported the bill. HB 3528 will make the following minor changes to leasing agent licensing:
Requires a temporary leasing agent permit holder to enroll in a pre-license education course no later than 60 days after beginning to engage in leasing activity.
Prohibits leasing agents from engaging in activity requiring a broker's license or managing a broker's license including selling, offering, negotiating for sale, listing or showing for sale, or referring for sale or commercial lease real estate
Increases the Real Estate Administration and Disciplinary Board membership from 6 to 12, and CAA will strongly urge inclusion of a property management professional
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House Bill 2430 (Guzzardi, D/Logan Square)
When the sponsor introduced
this bill to repeal the Rent Control Pre-Emption Act, he generated statewide media attention. If enacted, HB2430 would have allowed every community, regardless of home rule status, to implement rent control. CAA strongly opposed this legislation. Economic research clearly shows that rent control is not an effective public policy for creating affordable housing; more often, the opposite result occurs. Further, studies indicate that rent control discourages investment in new and existing rental housing, erodes property values, and leads to a shortage of quality affordable rental housing. CAA and other organizations worked diligently against this legislation. The bill remained in the House Committee and the sponsor had hoped to see a summer legislative committee hearing be held on the issue, but instead smaller community gatherings were held. CAA will continue to watch this issue closely.
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Senate Bill 1331 (Bush, D/Grayslake)
This bill would have added "Source of Income" as a protected class in all real estate transactions. CAA strongly opposed this legislation. The majority of CAA members voluntarily choose to participate in the Housing Choice Voucher (HCV) program, but believe this should be continued as a voluntary program and not a state mandate. The Housing Assistance Payment Program (HAP) contains many provisions which property owners find objectionable and do not fit into their current business decisions. Some of these include: local Public Housing Authorities are permitted to terminate HAP contracts when funds are insufficient, change payments, and prohibits assignment of the HAP contract to the new owner without prior written consent. This bill remained in the Senate with the sponsor's pledge to re-introduce this legislation next year.
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Senate Bill 1735 (Munoz, D/Chicago)
Introduced at the suggestion of HomeAway (owned by Expedia), the bill would have prevented all municipalities from prohibiting short term rentals in their communities. In addition, the bill allowed for a registry to be maintained and taxation on short term rentals. Numerous municipalities had strong concerns that the bill would erode their authority. After numerous meetings, the bill remained on hold in the Senate with the promise of additional meetings and a possible hearing at a later date. CAA was neutral on SB1735 and very much a part of the discussions.CAA continues to be involved with this bill.
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House Bill 3359 (Sims, D/Chicago and Hastings, D/Orland Hills)
Following a national trend, the Chicago Bar Association proposed changing the term "Forcible Entry and Detainer" to "Eviction Notice" in the statutes. After much consideration, CAA took a neutral position on this bill which passed both houses and was signed into law by the Governor.
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House Bill 3773 (Willis, D/Addison and Sandoval, D/Cicero)
For a second year this bill was introduced to amend the Smoke Detector Act. This year the bill passed both houses and was signed into law. HB 3773 will require devices with "self-contained, long term, non-removable batteries" be installed by January 1, 2023. Failure to do so will result in a fine if not rectified within 90 days of the effective date of this Act. CAA was neutral on this bill.
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Senate Bill 1334 (Bush, D/ Grayslake)
Similar to HB 2430 (state-wide rent control), this bill would have mandated rent control in manufactured housing communities. CAA joined the Illinois Realtors, the City of Chicago, and the Illinois Association of Manufactured Housing to oppose this bill. After much committee testimony was offered, several attempts were made to pass the bill in the Senate, but all were unsuccessful.
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VETO SESSION DATES:
October 24, 25, 26
November 7, 8, 9
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Please contact CAA EVP Michael Mini with questions or comments about any of these items.
Content contributed by Betsy Mitchell, Betsy D. Mitchell & Associates, CAA contract lobbyist
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