GOVERNMENT AFFAIRS
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March 4th, 2022
This Week in Illinois
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Chamber Day 2022 Recap
On March 2nd the Illinois Chamber of Commerce held its’ 5th Annual Chamber Day at the Abraham Lincoln Hotel where we were honored to welcome the House Speaker, Emanuel “Chris” Welch, House Republican Leader Jim Durkin and finally, Mayor of Springfield, Jim Langfelder to the event. Senate President Harmon and Senate Republican Leader McConchie gave brief virtual addresses as they were not in town for Session this week.
We thank the 100+ attendees from across the state for their participation throughout the day.
Each of the guest speakers engaged our attendees on various topics including unemployment insurance, Governor Pritzker’s proposed budget, and discussions on crime. Illinois Chamber President and CEO Todd Maisch provided a presentation on the status of the Unemployment Insurance Trust Fund, while the Chamber Executive Council Directors gave a legislative update from their field of expertise. The U.S. Chamber of Commerce informed attendees on the latest federal happenings, both politically and legislatively. Illinois Sherriff’s Executive Director, Jim Kaitschuk informed our attendees on the public safety in our surrounding communities.
House Speaker Welch gave a speech that touched on his willingness to work with others who sometimes hold different policy positions than himself and his caucus. He also added that he was willing to take tough questions from the crowd even if that meant giving answers that some may not like. We appreciated his openness.
Speaker Welch took questions from attendees on far ranging topics from small business grants to criminal justice reform. President & CEO Maisch and Speaker Welch held a short public dialogue as well.
House Republican Leader Jim Durkin provided the attendees insight into the 2022 legislative session by touting his support for UI trust fund deficit assistance and the efforts of his members to achieve lasting economic reforms. Leader Durkin also touched on the issue of crime and BIPA. Leader Durkin also participated in a Q&A session with President& CEO Maisch. We appreciate Leader Durkin’s continued work on behalf of the Illinois business community.
Speaking of BIPA...
Daily Herald Op-Ed on BIPA Security Dangers
This morning, the Daily Herald ran an Op-Ed by Senior Vice President of Government Affairs Clark Kaericher on the immediate need for a security exception to Illinois’ dangerous BIPA law. A portion of the op-ed is provided here:
Despite a worrisome increase in crime, Illinois is the only state in the nation with statutory restrictions that have the effect of preventing private entities from leveraging these safety and security tools. Illinois Biometric Information Privacy Act (BIPA) was passed in 2008 and has never been amended. Its failure to keep up with technology -- and with efforts to use the court system to extend the law to target any private entity using facial recognition technology -- have endangered the public's safety...
...Addressing Illinois' issues with crime will be challenging, but there are ways we can make big improvements. Updating a dangerously outdated law would be a great start. The Illinois Chamber of Commerce and Security Industry Association urge our elected officials to pass SB 3782 to help prevent the next tragedy before it's too late. Technology can help us, but our laws have to let it.
This law is a litigation nightmare but it also endangers the health and safety of countless Illinoisans. Read the entire article HERE.
Illinois Chamber President and CEO Todd Maisch alongside IERG's Executive Director Alec Davis, penned an op-ed to raise awareness on a troubling precedent for the business community. Provided below is the op-ed in part:
Last week, the City of Chicago, in apparent coordination with the U.S. Environmental Protection Agency, issued synchronized press releases touting the denial of a permit. The permit at issue was the last piece of the complicated puzzle of bureaucracy and red tape required of Reserve Management Group (RMG) to operate its new state-of-the-art scrap shredding facility in the Southeast Side and has now left them scrambling with what to do with their fancy new paperweight, while the rest of Illinois’ business community watches in shock...
...The Illinois business community is not falling for this sham process. The multiyear process that RMG was subjected to as it sought to “work cooperatively” with the mayor’s office now appears to have been a cruel joke on the company — the city got what it wanted – the General Iron scrap yard out of Lincoln Park — then scrambled for time even, enlisting the help of U.S. EPA to delay, until they could contrive an excuse to deny the permit. After watching this process play out, the city and U.S. EPA have a lot of work to do to rebuild the trust of the business community.
Read the full article here.
Session Update
The House returned to Springfield on Tuesday for a busy week of session. Floor Action in the House was extensive this week as today, March 4th , is the 3rd reading deadline for House bills. The House adjourned on Friday afternoon after working well into the night on Thursday. The House returns on Monday, March 7th for five days of scheduled action. The Senate will return on March 7th as well.
View the Senate Committee schedule for next week here. View the House committee schedule here. Rail report subscribers will continue to get daily updates.
Bills of Interest with Floor Action:
HB209, Latex Gloves passed out of the House by a vote of 100-5-0. This bill creates the Latex Glove Ban Act. Provides that, on and after January 1, 2023 a food service establishment may not permit employees to use latex gloves in the preparation and handling of food. Provides that, if latex gloves must be used in the preparation of food due to a crisis that interrupts a food service establishment's ability to source nonlatex gloves, a sign shall be prominently placed at the point of order or point of purchase clearly notifying the public of the temporary change. Provides that, to encourage compliance, the Department of Public Health shall send a notice of warning to a food service establishment for its first violation of specified provisions. Prohibits the use of latex gloves by (1) EMS personnel on and after January 1, 2023 and (2) health care facility personnel on and after January 1, 2024. Provides that, if a crisis exists that interrupts their ability to reliably source nonlatex gloves, EMS personnel and health care facility personnel may use latex gloves upon a patient, but shall prioritize, to the extent possible, using nonlatex gloves for the treatment of specified patients.
HB 1847, Pretreated Seeds passed out of the House by a vote of 70-44-0. This bill provides that, notwithstanding any other provision of law, pretreated seeds shall not be used in the production of ethanol.
HB 3089, Farming passed out of the House by a vote of 107-0-0. This bill provides that it shall be the goal of the State that at least 10% (rather than 20%) of all food and food products purchased by State agencies shall be local farm fresh produce or food products produced by socially disadvantaged farmers.
HB 3125, EV Charging passed out of the House by a vote of 68-35-0. This bill creates the Electric Vehicle Charging Act. Provides that the Act applies to new single-family homes and newly constructed or renovated multi-unit residential buildings that have parking spaces and are constructed or renovated after the effective date of the Act. Defines terms. Provides that a new single-family residence or a small multi-family residence shall have at least one electric vehicle capable parking space for each residential unit that has dedicated parking, unless any subsequently adopted building code requires additional electric vehicle capable parking spaces or installed EVSE. Includes electric vehicle parking space requirements for a new, large multi-family residential building or a large multi-family residential building being renovated by a developer converting the property to an association. Includes electric vehicle parking space requirements for affordable housing and for an existing multi-unit residential building subject to an association that undertakes renovation.
HB 3820, Illinois/Domestic Procurement passed the House by a vote of 102-3-2. This bill requires construction agencies procuring construction and construction-related professional services to make reasonable efforts to contract with Illinois businesses. Requires each construction agency to submit a report to the Governor and the General Assembly by September 1 of each year concerning Illinois businesses procured for construction projects by the construction agency. Provides that in procuring construction and construction-related professional services for projects with a total construction cost valued at greater than $100,000, construction agencies shall provide bid preference to a responsible bidder that is an Illinois business. Provides that it is the public policy of the State of Illinois for each purchasing agency to use the terms and conditions of State financial assistance awards and State procurements to maximize the use of goods, products, and materials produced in Illinois. Provides a penalty for a contractor who is awarded a contract through the use of a preference for Illinois products but knowingly supplies procured products under that contract that are not manufactured in Illinois.
HB 4093, EPA/EJ passed out of the House by a vote of 64-38-0. This bill requires the Environmental Protection Agency to annually review and update the underlying data for, and use of, indicators used to determine whether a community is designated as an environmental justice community and to establish a process by which communities not designated as environmental justice communities may petition for such a designation. Provides that an applicant for a permit for the construction of a new source that will become a major source subject to the Clean Air Act Permit Program to be located in an environmental justice community or a new source that has or will require a federally enforceable State operating permit and that will be located in an environmental justice community must conduct a public meeting prior to submission of the permit application and must submit with the permit application an environmental justice assessment identifying the potential environmental and health impacts to the area associated with the proposed project. Provides requirements for the environmental justice assessment. Provides that a supplemental fee of $200,000 for each construction permit application shall be assessed if the construction permit application is subject to the requirements regarding the construction of a new source located in an environmental justice community. Contains provisions regarding public participation requirements for permitting transactions in an environmental justice community. Provides that a third party may petition the Pollution Control Board if the Agency grants a permit to construct, modify, or operate a facility that emits air pollutants and is classified as a minor source. Requires the Agency to conduct an evaluation of a prospective CAAPP permit owner's or operator's prior experience in owning and operating sources of air pollution. Provides that the Agency may deny such a permit if the prospective owner or operator or any employee or officer of the prospective owner or operator or any employee or board member has a history of specified criminal actions.
HB 4281, Utility Logo passed out of the House by a vote of 105-0-1. This bill provides that it is an unlawful practice within the meaning of the Act for any company to use the name or logo of a public utility company in any manner to market and sell any type of home insurance, maintenance, or service product.
HB 4433, Health Savings passed out of the House by a vote of 104-0-0. This bill in provisions concerning a requirement that a health care plan shall apply any third-party payments, financial assistance, discount, product vouchers, or any other reduction in out-of-pocket expenses made by or on behalf of an insured for prescription drugs toward a covered individual's deductible, copay, cost-sharing responsibility, or out-of-pocket maximum associated with the individual's health insurance, provides that if application of that requirement would result in ineligibility of a health savings account under federal law, the requirement applies to health savings account-qualified high deductible health plans with respect to the deductible of a plan after the enrollee has satisfied a specified minimum deductible, except with respect to specified items or services, in which case the requirement applies regardless of whether the minimum deductible has been satisfied.
HB 4501, Dentistry passed out of the House by a vote of 92-7-2. This bill, as amended, provides that a dental assistant who has completed training and is an expanded function dental assistant, may place, carve, and finish amalgam restorations, and place, pack, and finish composite restorations as allowed under provisions concerning acts constituting the practice of dentistry. Provides that a dental assistant who has completed training and is an expanded function dental assistant may perform coronal scaling as allowed under provisions concerning acts constituting the practice of dentistry and intracoronal temporization of a tooth. Provides that an order to a hygienist on which services are necessary to be performed on the patient who is unable to travel to a dental office shall be implemented within 30 (rather than 120) days. Provides that without the supervision of a dentist, a dental hygienist may perform dental health education functions, including instruction in proper oral health care and dental hygiene in either a school setting or a long-term care facility. Provides that a dental hygienist may record care (instead of case) histories and oral conditions observed at any time prior to a clinical exam by a dentist.
HB 4595, 340B passed out of the House by a vote of 104-0-1. This bill provides that a contract between a pharmacy benefit manager or third-party payer and a 340B entity or 340B pharmacy shall not contain specified provisions. Provides that a violation by a pharmacy benefit manager constitutes an unfair or deceptive act or practice in the business of insurance, and that a provision that violates the prohibition on certain provisions in a contract between a pharmacy benefit manager or a third-party payer and a 340B entity that is entered into, amended, or renewed after July 1, 2022 shall be void and unenforceable. In provisions concerning pharmacy benefit managers, provides that the provisions apply to contracts entered into or renewed on or after July 1, 2022 (rather than July 1, 2020). Defines terms. Amends the Illinois Public Aid Code. In provisions concerning pharmacy benefits, provides that a Medicaid managed care organization or pharmacy benefit manager administering or managing benefits on behalf of a Medicaid managed organization shall not include specified provisions in a contract with a 340B entity or 340B pharmacy. Provides that a provision that violates the prohibition on certain provisions in a contract between a Medicaid managed care organization or its pharmacy benefit manager and a 340B entity entered into, amended, or renewed after July 1, 2022 shall be void and unenforceable.
HB 4600, One Day of Rest Penalties passed out of the House by a vote of 65-42-2. This bill provides that every employer covered by the Act shall post and keep posted, in one or more conspicuous places on the premises of the employer where notices to employees are customarily posted, a notice, to be provided by the Director of Labor, summarizing the requirements of the Act and information pertaining to the filing of a complaint. Provides that the Director of Labor shall provide copies of summaries and rules to employers upon request without charge. Provides that an employer with employees who do not regularly report to a physical workplace, and instead work remotely or travel for work, shall also provide the notice by email to its employees or on a website, regularly used by the employer to communicate work-related information, that all employees are able to regularly access, freely and without interference. Provides that an employee who works in excess of 7 1/2 continuous hours shall be entitled to an additional 20-minute meal period for every additional 4 1/2 continuous hours worked. Provides that any employer who violates specified provisions of the Act shall be subject to a civil penalty. Provides that for an employer with fewer than 25 employees, the civil penalty shall not exceed $250 per offense, payable to the Department of Labor, and damages of up to $250 per offense, payable to the employee or employees affected. Provides that for an employer with 25 or more employees, the civil penalty shall not exceed $500 per offense, payable to the Department, and damages of up to $500 per offense, payable to the employee or employees affected.
HB 4604, Equal Pay Act Certificate passed out of the House by a vote of 112-0-0. This bill amends the Equal Pay Act. In provisions concerning equal pay registration certificate requirements, provides that the term "business" means any private employer who has 100 or more employees (rather than more than 100 employees) in the State of Illinois and is required to file an Annual Employer Information Report EEO-1 with the Equal Employment Opportunity Commission. Makes the changes made to the Equal Pay Act of 2003 effective immediately.
HB 4703, Insurance Billing passed out of the House by a vote of 105-0-0. This bill provides that when an insured receives emergency services or covered ancillary services from a nonparticipating provider or a nonparticipating facility, the health insurance issuer shall ensure that cost-sharing requirements are applied as though the services had been received from a participating provider or facility, and that the insured or any group policyholder or plan sponsor shall not be liable to or billed by the health insurance issuer, the nonparticipating provider, or the facility beyond the cost-sharing amount. Contains provisions concerning a notice and consent process for out-of-network coverage; billing for reasonable administrative fees; assignment of benefits to nonparticipating providers; and cost-sharing amounts and deductibles. Amends the Illinois Insurance Code and the Health Maintenance Organization Act to make a change in provisions concerning disclosure of nonparticipating provider benefits. Amends the Network Adequacy and Transparency Act. Provides that a beneficiary who receives care at a participating health care facility shall not be required to search for participating providers under certain circumstances. Amends the Managed Care Reform and Patient Rights Act. Provides that prior authorization or approval by the plan shall not be required for post-stabilization services that constitute emergency services. Amends the Health Maintenance Organization Act and the Voluntary Health Services Plans Act to provide that health maintenance organizations and voluntary health services plans are subject to provisions of the Illinois Insurance Code concerning billing and cost sharing. In provisions concerning cost sharing for emergency services and cost sharing for non-emergency services, provides that if the cost sharing for the same item or service furnished by a participating provider would have been a flat-dollar copayment, that amount shall be the cost-sharing amount unless the provider has billed a lesser total amount. Provides that upon receipt of the provider's bill or facility's bill, the health insurance issuer shall provide the nonparticipating provider or the facility with a written explanation of benefits (rather than the health insurance issuer shall provide the nonparticipating provider or the facility with a written explanation of benefits). Provides that the arbitrator shall not establish a rebuttable presumption that the qualifying payment amount should be the total amount owed to the provider or facility by the combination of the issuer and the insured, beneficiary, or enrollee.
HB 4850, Employers/Gender Violence Act passed out of the House by a vote of 69-39-0. This bill provides that an employer shall only be liable for gender-related violence committed in the work environment by an employee or agent of the employer. Provides specific instances in which an employer is liable for gender-related violence.
HB 4922, Nurse Anesthetist passed out of the House by a vote of 102-0-0. This bill provides that the Department of Financial and Professional Regulation may issue a certified registered nurse anesthetist license to an advanced practice registered nurse who does not have a graduate degree, applies for licensure before July 1, 2028 (instead of July 1, 2023), and submits the other required information to the Department.
HB 5035, Bond passed out of the House by a vote of 106-0-3. This bill provides that the Department of Transportation may implement a 5-year pilot program to allow a contractor to provide a non-diminishing irrevocable bank letter of credit in lieu of specified bond requirements on contracts under $500,000. Provides that projects selected by the Department of Transportation for the pilot program must be classified by the Department as low-risk scope of work contracts. Provides for the adoption of rules concerning the criteria for pilot project selection and implementation of the pilot program.
HB 5069, Illinois Lottery passed out of the House by a vote of 102-4-0. This bill provides that all subcontractor purveyors of and subcontractor bidders for installation, repair, wiring, and maintenance services to Illinois lottery machines and equipment shall pay no less than the prevailing rate of wages for like work and services.
HB 5205, IDOT passed out of the House by a vote of 108-0-0. This bill allows the Department of Transportation to sell land, dedications, easements, access rights, or any interest in the real estate that it holds, or other properties acquired but no longer needed for highway purposes for fair market value (rather than for less than the appraised value). Provides that the fair market value may be based on one or more appraisals. Provides that the Department shall justify a sale below the fair market value. Provides that the Department shall develop a policy to assign a monetary value of all considerations. Provides for the order of priority in which the Department shall offer the real property.
HB 5334, INS Coverage passed out of the House by a vote of 104-0-0. This bill provides that a group or individual policy of accident and health insurance that is amended, delivered, issued, or renewed on or after January 1, 2024 shall provide coverage for the cost of the genetic testing of the BRCA1 and BRCA2 genes to detect an increased risk for breast and ovarian cancer if recommended by a health care provider in accordance with the United States Preventive Services Task Force's recommendations for testing.
HB 5412, Contractors passed out of the House by a vote of 62-36-0 after consideration was postponed earlier in the night This bill as amended, provides that, for all contracts entered into on or after July 1, 2022, a primary contractor making or taking a contract in the State for the erection, construction, alteration, or repair of a building, structure, or other private work in the State, shall assume, and is liable for, any debt owed to a claimant incurred pursuant to the Act by a subcontractor at any tier acting under, by, or for the primary contractor for the wage claimant's performance of labor included in the subject of the contract between the primary contractor and the owner. Provides exemption from liability for a property owner who acts as a primary contractor related to the erection, construction, alteration, or repair of his or her primary residence. Provides that the primary contractor's liability under the new provisions shall extend only to any unpaid wages or fringe or other benefit payments or contributions, including interest owed, penalties assessed by the Department, and reasonable attorney's fees, but shall not extend to liquidated damages. Provides that a primary contractor or any other person shall not evade or commit any act that negates the requirements of the new provisions. Provides that the obligations and remedies provided in the new provisions shall be in addition to any obligations and remedies otherwise provided by law, except that nothing in the new provisions shall be construed to impose liability on a primary contractor for anything other than unpaid wages, fringe or other benefit payment contributions, penalties assessed by the Department of Labor, interest owed, and reasonable attorney's fees. In provisions concerning primary contractor responsibility for wage claims in construction industry, provides that nothing shall supersede or modify the express terms contained in any collective bargaining agreement relating to the primary contractor's liability to pay the wages of its subcontractor's employees. Provides that prior to the commencement of any civil action, a claimant or a representative of a claimant shall provide written notice to the employer and to the primary contractor detailing the nature and basis for the claim. Provides that failure of the employer or the primary contractor to resolve the claim within 10 days after receipt of this notice, or during any agreed upon period extending this deadline, may result in the filing of a civil action to enforce the provisions of the Act. Provides that nothing shall supersede or modify the obligations and liability that any primary contractor, subcontractor, or property owner may bear as an employer under the Act or any other applicable law. Provides that primary contractors who are parties to a collective bargaining agreement on the project where the work is being performed shall be exempt from specified provisions.
View the Chamber's full 102nd GA Key Bills List here.
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Weekly GAP Call
The Chamber will host a Government Affairs Professionals (GAP) call on Monday, March 7th at 3:00 pm. We will provide you the latest updates on what legislation we are watching this Spring. Call in information is provided below.
Microsoft Teams meeting
Join on your computer or mobile app
Or call in (audio only)
Phone Conference ID: 463 563 254#
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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.
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