GOVERNMENT AFFAIRS
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November 10, 2023
This Week in Illinois
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Session Update
The House and Senate both returned to Springfield this Tuesday for the beginning of three scheduled days of veto session. Activity for the week wrapped up on Thursday afternoon. There was some floor and committee action of note that is highlighted in a section below.
Per HJR 45, both chambers will return to Springfield on January 16th at the call of the Speaker and Senate President. The 2024 Spring session calendar is now available. Click to view the House and Senate calendars.
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Message from Board Chair Ann Deters: Lou Sandoval Named President and CEO of Illinois Chamber of Commerce
On behalf of the Board of Directors, I am thrilled to inform you that Lou Sandoval has been selected as the next President and CEO of the Illinois Chamber of Commerce.
Lou’s appointment follows a national search led by Koya Partners, an executive recruiting firm focused on mission-driven leadership. As the search process unfolded, it became increasingly clear to our Search Committee that Lou would be the ideal person to lead the Chamber in this next chapter.
Lou comes to us after a successful career in the private sector, as both a business owner and a consultant across a variety of industries in Illinois. As President and Managing Partner of the Halo Advisory Group, Sandoval has advised both early-stage growth companies and Fortune 500 clients on go-to-market strategies, scalability, change management, and mergers and acquisitions. Previously he held executive leadership roles at NAUTIC-ON, a Brunswick Corporation brand focused on providing technology and business solutions to the recreational boating industry. For nearly 20 years, Sandoval founded and led his marine dealership, which served customers throughout the Western Great Lakes Region.
Lou is an Independent Board Director for Wintrust Bank N.A. In addition, he is a member of the Board of Trustees of Epic Academy, the Executive Board of Pathway to Adventure Council, and the Board of Advisors for DePaul University and Kognitive Networks. Previously, he led the Chicago Yacht Club’s Board of Directors as its Commodore. He is a proud Eagle Scout and served on the Northeast Council Board of the Boy Scouts of America. He also was appointed by Governor Bruce Rauner to the Illinois River Coordinating Council and co-chaired the Latino Advisory Committee for U.S. Senator Mark Kirk.
Lou is a graduate of DePaul University and is an adjunct faculty member for Hispanic & Latino Executive Leadership in McKinsey & Company’s Connect Leaders Program.
As a business leader and former business owner, Lou understands first-hand what it takes to lead and build successful enterprises in our state. He’s passionate about making Illinois a vibrant place for all business to thrive and is dedicated to working with business leaders and policy makers across our state to drive a new wave of growth and innovation. That combination of experience and vision make him an ideal person to lead our next chapter.
His first official day as our new CEO & President will be Monday, November 27th.
We look forward to welcoming Lou to the Chamber and to introducing him to all of you in the days ahead. As we do so, we also want to express our gratitude to you for your dedication to our work – and for your patience as we have worked through our selection process. We are grateful for your continued commitment to our mission.
Please join me in welcoming Lou as our new CEO.
We look forward to the important work ahead and to a bright future for Illinois businesses under his leadership.
All the best,
Ann Deters
Chair, Board of Directors
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Illinois Chamber Opposes Efforts to Curtail Illinois’ Growing Logistics Industry (HB 2547)
On Wednesday morning, Illinois Chamber Senior Vice President of Government Affairs, Clark Kaericher, and ELC Executive Director Aaron Harris testified in the Senate Labor Committee subject matter hearing on HB 2547, the "Warehouse Worker Protection Act."
Kaericher delivered the following remarks to the committee.
I am here today to emphasize the importance of warehousing to the Illinois economy and to highlight some of our concerns with the proposed legislation. Warehousing has seen 600% growth nationally since 1998, representing an annual rate of 11.9%, nearly six times the rate of growth for business in general. Illinois has been at the forefront of this expansion. Indeed, warehousing is an important component of the Illinois economy. The Federal Reserve Bank research reveals Illinois warehousing has grown from a gross domestic product of $3.4 billion in 2012 to an estimated $4.7 billion in 2022.
Illinois Department of Employment Security numbers show a total of 65,000 warehouse employees in 2020 and they expect that number to grow to 82,000 by 2030. These numbers are triple their projected rate of job growth as a whole which makes warehousing one of the fastest-growing industries in our state. Jobs supporting this industry, including trucking, account for 350,000 total jobs and are expected to grow by an additional 50,000 over that same time period.
These are good jobs. Amazon alone employs 38,000 people in Illinois with a starting rate of pay of $19 an hour in addition to benefits that begin on day one. Online job site Indeed shows nearly 4,000 job openings for full-time warehouse work in Illinois.
HB 2547 would hinder the growth of the logistics industry in Illinois. Some of the Chamber's concerns relate to the sharing of proprietary data, response times for requests in as little as 3 calendar days (as opposed to 14 business days in other states), and the lack of definition of an “adverse employment action” which will lead to confusion and litigation. Speaking of litigation, the inclusion of a private right of action outsources a key duty of the state, unlike other states that use enforcement from the state’s attorney general.
Last year the General Assembly convened a task force on Warehousing. That group has started to meet, and the Illinois Chamber takes its inclusion in that group very seriously. We’d like to see the recommendations of that task force in its written report before legislation is enacted. Short of that, we wanted you to know that this industry is critical to Illinois, and we did not want proponents of the legislation to leave lawmakers with the impression that no one was concerned about legislative proposals that were not the product of serious discussions or negotiated solutions.
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US Chamber State Antitrust Program
Lori Poppe Hiltabrand, COO and General Counsel of the Illinois Chamber, had the honor this week of attending a coalition meeting with 15 states where it is expected that legislation will be proposed to broaden the scope of antitrust lawsuits. States such as New York, Minnesota, and Maine have already introduced legislation, and the business community is forming their own coalitions to oppose these antitrust litigation expansions, which could have a significant impact on how all businesses, large and small, compete in the open market.
The Illinois Chamber appreciates the invitation to take part in these important conversations.
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IACCE Fall Conference: Illinois Chamber Staff Present on Critical Legislative Topics
The Illinois Association of Chamber of Commerce Executives (IACCE) Fall Conference is being held from November 8-10 in Northbrook, IL. There was once again a large crowd with attendees representing local chambers from across the state of Illinois.
Keith Staats, Executive Director of the Tax Institute, gave local chambers an update on the Spring legislative session. He specifically discussed what laws may affect businesses in the coming months.
Clark Kaericher, Senior VP of Government Affairs, spoke during a breakout session on how the Biometric Information Privacy Act (BIPA) is affecting Illinois businesses. He stressed the importance of ensuring businesses are in compliance and how it can be costly for those who are not.
Like always, the conference covered a variety of topics and new ideas for attendees to take back and better serve their local business community.
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The Illinois Chamber Announces the Retirement of Jeanette Anderson after 40 Dedicated Years of Service
It is with both sadness and applause that we announced the official retirement of Jeanette Anderson from the Illinois Chamber of Commerce on November 7th, after 40 dedicated years of service. If you have had the opportunity to meet Jeanette, you know what a sincere and genuine person she is. She always has a smile on her face and has always been willing to help the organization where she can.
Jeanette retires as the Chamber’s Administration and Membership Manager in our downtown Chicago office, where she had previously served in numerous other roles.
In her early years, Jeanette attended Simeon High School in Chicago for two years before going on to Jones Commercial High School, where she graduated in 1976. She learned how to work in an office setting while attending Jones Commercial High School, which led Jeanette down her successful professional path for 40 years.
Jeanette started at the Illinois Chamber in 1983 as the Receptionist, a position she held for 15 years. She was later appointed Supervisor of Financial Transactions for the Finance Department. She was then advanced to Office Manager in 2001. In 2015, Jeanette was promoted to Assistant to the Chief Operating Officer while continuing as the Office Manager.
In typical Jeanette fashion, she let us know she is still willing to help at the Chamber’s quarterly board meetings and our annual meeting held in the fall. While we are all going to miss seeing her smiling face at our annual events, we know she is just a phone call away.
In retirement, Jeanette plans to enjoy time with her family and friends and said that she may return to sewing clothing again.
Jeanette, thank you for your many years here at the Illinois Chamber of Commerce, you will be greatly missed.
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Bill Action of Note:
HB 2394, Licensing-Support passed the House on concurrence 107-0-0. This bill provides that, if the Secretary of Professional Regulation finds that there is a significant operational need to do so or that it is necessary to do so to avoid undue hardship on a class of individuals whose professional licenses, registrations, or certificates are issued by the Department, then the Secretary shall extend the expiration date or renewal period of those licenses, registrations, or certificates of those individuals for a period not to exceed the standard renewal period of those licenses, registrations, or certificates. Provides that the Secretary may consider specified factors when determining whether to extend the expiration date or renewal period of the license, registration, or certificate of those individuals. Amends the Illinois Procurement Code. Provides that the Department of Financial and Professional Regulation shall identify a method of source selection that will make it possible to implement a software solution to support the Department's mandates to enforce the professional licensing Acts that it administers and rules adopted under those Acts. Provides that the software solution selected by the Department shall satisfy specified criteria. Provides for additional requirements concerning the source selection process. Amends the Illinois Administrative Procedure Act to provide for emergency rulemaking.
HB 2473, Nuclear-Support passed the House 98-8-0 on concurrence. This bill makes changes concerning the circumstances under which construction may commence on nuclear power plants and nuclear power reactors. Removes the definition of "high-level nuclear waste". Amends the Nuclear Safety Law of 2004. Requires the Illinois Emergency Management and Office of Homeland Security to adopt rules for the regulation of small modular reactors, including rules regarding decommissioning, emergency preparedness, and fees. Sets forth provisions concerning inspections of small modular reactors. Authorizes the Governor to commission a study on regulatory gaps for the development of small modular reactors in the State. Requires the Illinois Emergency Management Agency and Office of Homeland Security to lead the study by researching and developing small modular reactors. Provides that the Agency shall finalize the study and publish a publicly available copy on its website and submit a copy to the General Assembly. Sets forth the requirements of the study. Repeals the provision requiring the study on January 1, 2027. Provides that the Illinois Nuclear Safety Preparedness Act and the Illinois Nuclear Facility Safety Act do not apply to small modular reactors.
HB 2878, Procurement Omnibus amendatory veto was accepted by a vote in the House and Senate. This bill had passed unanimously in the Senate and with a large majority in the House in late May. The bill Received an amendatory veto for the public-private partnership (p3) expansion provisions of the bill. The numerous other procurement provisions in the legislation including changes to the VOSB program, diversity reporting requirements, public construction bonds and more will not be affected by the acceptance of this amendatory veto.
SB 384, EV Charging passed the House 73-40-0. This bill amends the Electric Vehicle Charging Act. Provides that for provisions related to EV-capable parking space requirements and residential requirements, the Act applies to newly constructed single-family homes and multifamily (rather than multi-unit) residential buildings that have parking spaces and are constructed after the effective date of the Act. Provides that for provisions related to electric vehicle charging system policies for unit owners and renters, the Act applies to unit owners, tenants, landlords, and associations of both newly constructed and existing single-family homes and multifamily residential buildings that have parking spaces. Effective January 1, 2024.
SB 508, E-Verify-Neutral passed the Senate 41-13-0. This bill amends the Right to Privacy in the Workplace Act. Provides that unless otherwise required by State or federal law, an employer shall not voluntarily enroll in the E-Verify program or a similar Electronic Employment Verification System. Provides that an employer shall not impose work authorization verification or re-verification requirements greater than those required by federal law. Provides that if an employer is required to participate in the E-Verify program or a similar Electronic Employment Verification System and receives notification from the Social Security Administration of a discrepancy between an employee's name or social security number and the Social Security Administration's records, the employer must provide the employee with specified documents. Provides for additional rights and protections granted to an employee following the notification from the Social Security Administration of a discrepancy. Provides that an employer shall provide notice to current employees, by posting in the language the employer normally uses to communicate employment-related information to the employee, of any inspections of I-9 Employment Eligibility Verification forms or other employment records conducted by the inspecting entity within 72 hours after receiving notice of the inspection. Provides for additional notice requirements concerning obligations of the employer and the employee. The Illinois Chamber Employment Law Council testified in committee on this legislation after negotiating numerous changes.
SB 765, Farm Mutual Insurance-Support passed the House 114-0-0. This bill provides that, until the date that is 5 years after the effective date of the amendatory Act, a farm mutual insurance company insuring against the perils of wind or hail must have and maintain adequate catastrophic reinsurance (instead of catastrophic reinsurance which limits the company's exposure on any one loss occurrence to 20% of its policyholders' surplus). Defines "adequate catastrophic reinsurance" as reinsurance in an amount no less than that required for a 500-year event, based on an actuarially sound catastrophe model that limits the company's exposure on any one loss occurrence to (i) 20% of its policyholders' surplus or (ii) an amount authorized by the Director of Insurance. Provides that a farm mutual insurance company must additionally have and maintain aggregate reinsurance coverage in an amount no less than that required for a 250-year event, based on an actuarially sound catastrophe model. Provides that the reinsurance permitted or required under the provisions must be provided by (i) a farm mutual insurance company, (ii) an insurance company authorized to write the kinds of insurance described in the Illinois Insurance Code pertaining to casualty, fidelity, surety, fire, marine, and other types of insurance, or (iii) a reinsurer and reinsurance program meeting the standards set forth in the Illinois Insurance Code that permit a domestic company to take credit for reinsurance. Requires a farm mutual insurance company converting from unlimited catastrophic reinsurance to adequate catastrophic reinsurance to provide notice of the change to policyholders in a form approved by the Director of Insurance.
SB 805, Capital Contributions-Support passed out of the House 106-01. This bill creates the Master Development Plan Recognition Act. Provides that certain contributions made by the State or units of local government are considered made pursuant to a master development plan within the meaning of Section 118 of the Internal Revenue Code of 1986. Amends the Illinois Income Tax Act. Creates a deduction for capital contributions that are made pursuant to a master development plan and that are included in the taxpayer's federal taxable income for the taxable year under Section 118 of the Internal Revenue Code.
SB 1769, Govt. Zero Emissions Vehicles passed the Senate on concurrence by a vote of 37-18-0. This bill, as amended, provides that, notwithstanding any other provision of law, beginning on January 1, 2030, all passenger vehicles, except law enforcement vehicles, purchased or leased by a governmental unit must either be a manufactured zero-emissions vehicle or a converted zero-emissions vehicle. Provides that "passenger vehicle" does not include vehicles purchased by the Department of Transportation as part of their consolidated vehicle procurement program.
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Save the Date: 10th Annual Illinois Chamber New Laws Forum
The New Laws Forum focuses on the new laws and legal developments that will affect ALL Illinois employers in 2024 and beyond. The forum features Illinois attorneys and experts speaking about Illinois laws – as well as representatives from government agencies talking about the latest changes and your peers, a panel of Senior HR professionals discussing how the laws have and will affect their businesses. It's already been a busy year, and more regulation is coming.
When: December 5, 2023 | 8:30 am – 4:30 pm
Where: Doubletree Hilton l 3003 Corporate West Drive
Lisle, IL 60532
Register Here.
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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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