GOVERNMENT AFFAIRS
------------Report

January 13, 2023


This Week in Illinois

Session Update


Constitutional Officers were sworn-in on Monday, January 9th at a ceremony taking place at the Bank of Springfield Center. The 103rd General Assembly was inaugurated on January 11th.

 

The 102nd General Assembly was in session throughout the day last Friday and Sunday-Tuesday. Like the earlier portion of the lame duck session, much of the discussion and action was focused on firearms and reproductive healthcare/abortion rights. However, this week also saw the passage of legislation providing the Governor a "deal closing fund" that also made changes to some of the state's economic incentive programs. Paid leave and an energy package were also voted upon. Legislation of note has been highlighted in a section below.


Including ceremonial activities, the 103rd GA was in session on Wednesday and Thursday. Much of the business conducted by the new GA has been organizational in nature. Over 1100 House bills have already been filed in the 103rd General Assembly. However, most of these are shell bills. New bills of interest will be highlighted in next week's newsletter.

 

House Democrats and Republicans have announced their full leadership teams. 


House Democrats Leadership: Speaker Chris Welch

 

Representative Robyn Gabel – Majority Leader

 

Representative Jehan Gordon-Booth – Speaker Pro Tempore / Chief Budgeteer

 

Representative Mary E. Flowers – Deputy Majority Leader / Dean of the Caucus

 

Representative Elizabeth Hernandez – Deputy Majority Leader

 

Representative Jay Hoffman – Assistant Majority Leader

 

Representative Natalie Manley – Assistant Majority Leader

 

Representative Kam Buckner – Assistant Majority Leader

 

Representative Aaron Ortiz – Assistant Majority Leader

 

Representative Barbara Hernandez – Assistant Majority Leader

 

Representative Marcus Evans – Assistant Majority Leader

 

Representative Robert “Bob” Rita – Assistant Majority Leader

 

Representative Kelly Burke – Assistant Majority Leader

 

Representative Theresa Mah – Majority Conference Chair

 

Representative Nick Smith – Majority Officer / Sergeant at Arms

 

 

House Republican Leadership: Republican Leader Tony McCombie

 

Representative Norine Hammond - Deputy Minority Leader

 

Representative Ryan Spain -Deputy Minority Leader (One of only two returning members of House Republican leadership from 102nd GA)

 

Representative Jeff Keicher - Conference Chair

 

Representative John Cabello - Assistant Minority Leader

 

Representative CD Davidsmeyer - Assistant Minority Leader (One of only two returning members of House Republican leadership from 102nd GA)

 

Representative Charlie Meier - Assistant Minority Leader

 

Representative Brad Stephens - Assistant Minority Leader

 

Representative Mike Marron - Assistant Minority Leader

 

Representative Jackie Haas - Assistant Minority Leader

 

Representative Patrick Windhorst - Floor Leader

 

View the Senate session calendar for 2023. View the House 2023 calendar.


The terms of each of the newly-elected Senators has been released. View the document here to see the term length for each member of the upper chamber.


Mandated Paid Leave


The Illinois Chamber and other business groups negotiated a compromise that requires all Illinois employers provide up to 5 paid days (40 hours) off to all employees (including part-time and seasonal) that accrue at 1 hour per 40 hours worked. SB 208 is being sent to the Governor for his signature. It will have a January 1, 2024 effective date. A full analysis of the new law is being prepared and will be shared with Illinois Chamber members in the next few days. Legislative sponsors were Sen. Robert Martwick (D-Chicago) and Rep. Jehan Gordon-Booth (D-Peoria).


Further questions relating to this matter, please contact Aaron Harris at adharris@michaelbeststrategies.com or David Ramirez dsramirez@michaelbeststrategies.com


Legislative Update


HB 240 Hospitals passed the Senate by a vote of 32-15-0 and passed the House by a vote of 85-24-0. This bill contains numerous healthcare changes relating to such things as hospital construction, nursing home staffing ratios and reimbursement, inpatient care for those accused of criminal activity, ground ambulance services and the State’s medical assistance program, and ARPA funding for health services.  


HB 268, Tourism Districts passed the Senate by a vote of 48-6-0 and passed the House on concurrence by a vote of 73-30-0. This bill creates the Tourism Preservation and Sustainability District Act. Provides that hotel owners can petition a governmental unit (a municipality, county, or township) to create a tourism preservation and sustainability district if the hotel owners believe their businesses would represent more than 50% of transaction charges collected inside the district. Requires the owners to create a district plan. Provides for the governmental unit to pass a resolution of intent to create the district within 60 days after the filing of the petition if the governmental unit wants to proceed with the district. Provides that, in certain circumstances, a governmental unit must enter into an intergovernmental agreement with another governmental unit if territory of the other governmental unit is included within the territory of the district. Requires a public hearing with the opportunity for hotel owners to object to the formation. Provides that, if not enough objections are received by the governmental unit's clerk, then the governing body of the governmental unit may form the district. Provides that transaction charges (charged either on a fixed dollar or percentage rate per hotel room per night) collected by a governmental unit shall be transferred to the local tourism and convention bureau included in formation ordinance which shall use the moneys for improvements and services within the district. Includes requirements for annual reports; modification; renewal, and termination of the district; and contesting the formation of the district or transaction charges in court. Contains other provisions relating to the operation of the district.


HB 969Supplemental FY23 Appropriations passed the Senate by a vote of 30-21-1 and passed the House 71-36-0. This is the corresponding appropriations for the second FY23 BIMP (SB1720) passed earlier during lame duck session.


HB 1563, Boards/Location of State Employment passed the Senate by a vote of 37-17-0. Among other things, this bill amends the Blue-Ribbon Commission on Transportation Infrastructure and Policy Act. Provides that: (i) members shall be appointed to the Commission by January 31, 2023 (rather than May 31, 2022); (ii) the Commission shall hold its first meeting by February 15, 2023 (rather than within 2 months from the Act's effective date); (iii) the Commission shall report a summary of its activities and produce a final report to the General Assembly by September 15, 2023 (rather than January 31, 2023); and (iv) the Commission is dissolved, and the Act is repealed, on September 30, 2023 (rather than February 1, 2023). 


HB 2870, Regional Water Commissions passed the House on concurrence by a vote of 104-2-0. This bill amends the Regional Water Commissions Division of the Illinois Municipal Code. Allows a regional water commission to provide for credits against amounts due to the commission from a municipality as a means to repay a municipality for specified costs incurred by the municipality relating to the regional water commission. Allows amendment or extension of specified contracts beyond 101 years by agreement of the parties. Provides that an owner of a bond issued under the Division, a trustee under a master trust indenture or supplemental trust indenture, or, in certain circumstances, both may enforce and compel performance relating to the bonds (now, only a holder of a bond issued under the Division has that right). Allows a commission to use alternate project delivery methods, establish goals or requirements for the procurement of goods and services and for construction contracts, and accept assignment of municipal waterworks system contracts or other public improvement contracts. Gives commissions the authority to enter into design-build contracts and use a design-build delivery system. Includes definitions and requirements for the design-build delivery system. Makes other changes. Effective immediately.


HB 4412Energy Policy passed out of the House on concurrence by a vote of 73-36-0. Among other things, this bill provides that there shall be at least one public hearing during which public comment shall be taken regarding the application for siting approval or a special use permit for a commercial wind energy facility or commercial solar energy facility. Provides that the public hearing shall be conducted in accordance with the Open Meetings Act and shall be held not more than 45 days after the filing of an application for siting approval or a special use permit for a commercial wind energy facility or commercial solar energy facility. Provides that the county shall make its decision not more than 30 days after the conclusion of the public hearing. Removes a provision that allows any part of a county zoning ordinance pertaining to wind farms that was in effect before August 16, 2007 to continue in effect notwithstanding the provision. Provides that a county with an existing zoning ordinance in conflict with the provisions shall amend such zoning ordinance to be in compliance within 120 days after the effective date of the amendatory Act. Specifies setback requirements, restrictions on blade tip height, sound limitations, and other restrictions on and regulations for commercial wind energy facilities and commercial solar energy facilities. Includes other provisions limiting a county's ability to regulate commercial wind energy facilities and commercial solar energy facilities, and grants counties certain other powers in the regulation of commercial wind energy facilities and commercial solar energy facilities. Also provides that upon receipt of notice from the Commission, the Department shall transfer $200,000,000 to the eligible electric utility serving adversely impacted residential and small commercial customers. Provides that each electric utility providing a monthly rebate credit to its customers shall include a statement as part of a bill insert reflecting a monthly rebate credit to customers. Provides that an electric utility with a tariff shall be entitled to recover the reasonable and prudent expenses incurred and shall have an obligation to provide monthly rebate credits to customers only to the extent there are funds available to the utility to provide monthly rebate credits. 


SB 208Paid Leave passed the House by a vote of 78-30-0 and passed the Senate on concurrence by a vote of 38-16-0. This bill creates the Paid Leave for All Workers Act. Requires employers to provide paid leave to employees for any purpose. Sets forth provisions regarding employer responsibilities, unlawful employer practices, and other matters. Provides that an employee who works in this State is entitled to earn and use a minimum of 40 hours of paid leave during a 12-month period. Makes it unlawful for an employer to interfere with, restrain, deny, change scheduled work days or hours to avoid paid leave, or discipline an employee for the exercise of any right under the Act. Authorizes the Department of Labor to administer and enforce the Act. Provides for the imposition of civil penalties. Authorizes individuals to file civil actions with respect to violations.


SB 1720 BIMP was signed into law. Among other things, this bill establishes the Second FY 2023 Budget Implementation Act. Creates the Warehouse Safety Standards Task Force Act to study warehouse safety standards. Provides that the Illinois Toll Highway Authority shall contribute, for a specified class of Authority employees, an amount determined by the Director of the Department of Central Management Services to represent the average employer's share of the cost of retiree coverage per participating employee in the State Employees Group Insurance Program. Provides for transfers from the General Revenue Fund to the Budget stabilization Fund, the Large Business Attraction Fund, and the Disaster Response and Recovery Fund. Increases the cap on the Budget Stabilization Fund from 5% to 7.5% of total general funds estimated for the fiscal year. Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Directs the Department of Commerce and Economic Opportunity to establish a program to award grants to local chambers of commerce. Amends the Illinois Lottery Law. Makes changes concerning the distribution of proceeds of lottery sales. Amends the Illinois Procurement Code. Provides that, if and only if House Bill 4285 of the 102nd General Assembly becomes law, then the small purchase limit in the Code is reduced from $250,000 to $100,000. Grants the Department of Human Rights the power to design grant programs and award grants to eligible recipients. Amends the State Officials and Employees Ethics Act. Provides that, for terms of office beginning on or after July 1, 2023, each Executive Inspector General shall receive, on July 1 of each year, beginning on July 1, 2024, an increase in salary based on a cost of living adjustment as authorized by Senate Joint Resolution 192 of the 86th General Assembly.  Increases the salaries of executive branch officials. Amends the General Assembly Compensation Act. Increases the compensation of General Assembly members beginning in the 103rd General Assembly. Authorizes each chamber of the General Assembly to have additional officers under certain circumstances. The Warehouse Task Force explicitly named the Illinois Chamber as a member.


SB 1836Nursing passed the House by a vote of 109-0-0 and passed the Senate by a vote of 54-0-0. This bill provides that nurses or certified nurse aides employed, assigned, or referred to a health care facility by a nurse agency may only be terminated by the nurse agency for cause. Provides that nurse agencies are prohibited from entering into covenants not to compete with a nurse or a certified nurse aide if the nurse is employed, assigned, or referred by a nurse agency to a health care facility on a temporary basis or the certified nurse aide is employed, assigned, or referred by a nurse agency to a health care facility on a temporary basis. Provides that a covenant not to compete entered into on or after July 1, 2022 between a nurse agency and a nurse or a certified nurse aide is illegal and void if (i) the nurse is employed, assigned, or referred by a nurse agency to a health care facility on a temporary basis or (ii) the certified nurse aide is employed, assigned, or referred by a nurse agency to a health care facility on a temporary basis. In any contract on a temporary basis with any nurse, certified nurse aide, or health care facility, prohibits a nurse agency from requiring the payment of liquidated damages, conversion fees, employment fees, buy-out fees, placement fees, or other compensation if the nurse or certified nurse aide is hired as a permanent employee of a health care facility. Provides that beginning on the effective date of the amendatory Act and ending on December 31, 2027, a nurse agency may enter into a covenant not to compete with a nurse or a certified nurse aide if the nurse is employed, assigned, or referred by a nurse agency to a health care facility on a long-term basis or the certified nurse aide is employed, assigned, or referred by a nurse agency to a health care facility on a long-term basis. Provides that if a covenant not to compete that was entered into on or before December 31, 2027 expires on or after January 1, 2028, the covenant not to compete shall remain in effect until its expiration date. Provides that to be enforceable, the term of a covenant not to compete entered into must be concurrent with the term of initial employment, assignment, or referral of the nurse or certified nurse aide to a health care facility. Provides that a contract on a long-term basis between any nurse, certified nurse aide, or health care facility and a nurse agency may provide for the payment of actual damages, conversion of fees, employment fees, buy-out fees, placement fees, or other reasonable expenses resulting from a violation of the contract that occurred during the initial employment, assignment, or referral term. Provides that provisions concerning contracts between nurse agencies and health care facilities do not apply to contracts on a long-term basis between a nurse agency and a health care facility providing for the employment, assignment, or referral of nurses or certified nurse aides to the health care facility.


SB 2801, UI Trust Fund Debt Appropriations passed out of the House by a vote of 103-0-0. This bill states that the sum of $1,370,000,000, or so much thereof as may be necessary, is appropriated from the General Revenue Fund to the Department of Employment Security for payment to the Illinois Unemployment Insurance Trust Fund for repayment of all outstanding advances pursuant to Title XII of the federal Social Security Act, including prior year costs.  The sum of $450,000,000 is appropriated from the General Revenue Fund to the Department of Employment Security as a loan for payment to the Illinois Unemployment Insurance Trust Fund solely for purposes of paying unemployment insurance benefits, without the accrual of interest, to be repaid pursuant to the provisions of the Unemployment Insurance Act.


SB 2951 Economic Incentives passed the House 86-23-0 and passed the Senate by a vote of 40-15-0. This bill creates the Invest in Illinois Act. Provides that the Department of Commerce and Economic Opportunity may make non-competitive economic incentive awards, including, but not limited to, grants and loans, to assist applicants that pledge to make capital investments and create new jobs in this State or retain jobs in this State. Provides that certain businesses that are engaged in manufacturing, processing, assembling, warehousing, or distributing products, conducting research and development, providing tourism services, or providing commercial services in office industries or agricultural processing are eligible for those incentives. Amends the Illinois Enterprise Zone Act. Increases the required geographic area of the enterprise zone. Amends the Reimagining Electric Vehicles in Illinois Act. Changes the name of the Act to the Reimagining Energy and Vehicles in Illinois Act. Provides that renewable energy manufacturers are also eligible for credits under the Act. Provides that agreements under the Act may be renewed for an additional 15-year term. Provides that business enterprises certified under the Reimagining Electric Vehicles in Illinois Act or the Manufacturing Illinois Chips for Real Opportunity (MICRO) Act are exempt from the Telecommunications Infrastructure Maintenance Fee Act and the Simplified Municipal Telecommunications Tax Act. Amends the Film Production Services Tax Credit Act of 2008. Makes changes concerning the conditions under which nonresident wages are considered Illinois labor expenditures. Provides that a taxpayer shall not be awarded any new credits under the Act for tax years beginning on or after January 1, 2033 (currently, January 1, 2027). Amends the Use Tax Act and the Service Use Tax Act. Creates a Sustainable Aviation fuel credit in the amount of $1.50 per gallon of sustainable aviation fuel purchased. 

GAP Call - No Call Monday, January 16th (non-session week)


This is a notice that the Illinois Chamber will host a Government Affairs Professionals (GAP) call Monday, January 23rd at 3:00 pm. We will provide you updates on scheduling and what legislation we are watching during the latter part of the lame duck session. GAP Call in information is provided below.


Throughout the Spring, GAP calls will take place every Monday afternoon when either the House or Senate is in session. We will make you aware of scheduling changes as they occur.


Please send any questions in advance to ckaericher@ilchamber.org.


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If you have questions about the Government Affairs Report, contact Clark Kaericher at ckaericher@ilchamber.org. Do not reply to this email.