August 11, 2023

This Week in Illinois

Employment Law Council Update on HB 2862, Day Labor Services

Earlier this week with the signing of HB 2862 into law, the Illinois Chamber Employment Law Council released the following to its members:

If you use Day Labor Services to meet your workforce needs, you will want to be aware of the new law that creates new responsibilities and obligations as a third-party client of those services.

In response to the Governor's signing of HB 2862 into law as PA 103-437, the Illinois Department of Labor (IDOL) has issued emergency rules effective August 4, 2023. The new law and regulation are effective August 4, 2023.

The emergency rule makes extensive changes that affect the responsibilities and obligations of employers who use day and temporary labor services. In general, the emergency rule:

• clarifies day and temporary labor services agencies’ responsibilities to pay certain laborers wages and benefits equal to those of direct-hire employees of the third-party client;
• increases fees and fines per the law for third-party clients; 
• authorizes laborers to refuse assignment to the site of a labor dispute; 
• outlines for procedures for an interested party to pursue a whistleblower action against third-party clients; 
• clarifies parties’ responsibilities when IDOL, the Office of the Attorney General, or another party are pursing related actions at the same time; and
• clarifies the obligation of day and temporary labor service agencies and third-party clients to inform and train laborers regarding work site hazards.

CLICK HERE to view a copy of the emergency rule. The Illinois Chamber will be providing comments on the proposed rule that eventually will be replacing the emergency rule. If you have comments that you would like the Chamber to include, please contact us.

Brandt Hosts Representative Budzinski, Business Leaders for Ag Forum

Yesterday, Illinois Chamber Interim President & CEO Keith Staats was pleased to join US Representative Nikki Budzinski (D-13th) at the Brandt Consolidated facility in Springfield for an agricultural forum.

Budzinski, a member of the US House Committee on Agriculture, emphasized the importance of sound agriculture policy in Washington and shared valuable insight into the current discussions on Ag policy and the Farm Bill in DC.

Thank you to Brandt, the Greater Springfield Chamber and the US Chamber for making this event possible. Thank you Representative Budzinski for taking time to be with members of the business community.

CGFA: General Funds Base Receipts Look Promising For FY 2024, However the Lack of Federal Reimbursements Results in Overall Decline in July

In its latest publication of the monthly briefing, CGFA staff write on the promising outlook of the general funds base receipts for the new fiscal year, however the absence of federal reimbursements have created an overall decline in the month of July. Below is an excerpt from the publication with the full article HERE.

Base revenues into the State’s General Funds performed quite well to start off FY 2024 with yearover-year growth of $396 million. However, when last July’s $584 million deposit of ARPA reimbursements are included in the calculation, the overall change is a decline of $188 million to start the fiscal year. July had the same number of receipting days as the same month the prior fiscal year. The increase in base receipts was spurred by notable improvement from income tax receipts. Personal Income Taxes rose $184 million in July, a net increase of $153 million when removing distributions to the Refund Fund and the Local Government Distributive Fund (LGDF). Similarly, Corporate Income Taxes rose a solid $117 million, or $95 million on a net basis.

As provided by P.A. 103-0008, the annual percentage of personal income tax revenues that are to go to the Income Tax Refund Fund was lowered from 9.25% in FY 2023 to 9.15% in FY 2024. The percentage of corporate income tax revenues that are to go to the Income Tax Refund Fund was also reduced, from 14.5% to 14.0%. Reduced refund fund percentages mean that more available funds could go into the State’s General Funds. However, the gain in net receipts due to these percentage changes will be more than offset by an increase in the portion distributed to the LGDF. Public Act 103-0008 also provided that 6.47% (instead of 6.16%) of personal income tax revenues (net of refunds) shall go to the LGDF in FY 2024. The amount of net corporate receipts to the LGDF did not change and remains at 6.85%.

Bills of Interest Signed Into Law

HB 1076, County Lease/Farmland signed into law. This bill upon three-fourths vote by the full county board, the county board may lease farmland acquired or held by the county for any term not exceeding 5 years, provides that the lease may be made via a cash lease, crop-sharing arrangement, or custom farming arrangement, adds requirements relating to the bid process for farmland leases, and provides that counties shall not acquire farmland for the sole purpose of entering into a cash lease, crop-sharing arrangement, or custom farming arrangement or other speculative purpose.

HB 1120, Charter Schools-Neutral signed into law. This bill provides that any renewal of a certified charter must include a union neutrality clause. Requires a union neutrality clause to be included in a charter school proposal.

HB 1122, Freelance Workers-Neutral signed into law. As amended, this bill creates the Freelance Worker Protection Act. Provides that, except as otherwise provided by law, a freelance worker shall be paid the contracted compensation amount no later than 30 days after the freelance worker provides the product or completes the services under the contract. Provides that once a freelance worker has commenced preparation of the product or performance of the services under the contract, a contracting entity shall not require as a condition of timely payment that the freelance worker accept less compensation than the amount of the contracted compensation. Requires written contracts for services or products provided by a freelance worker. Sets forth the information such written contracts must include. Provides that a contracting entity must make the contract available to the Department of Labor upon request. Requires the Department to make model contracts available on its website for use by the general public at no cost. Prohibits a contracting entity from taking any action that penalizes a freelance worker for, or is reasonably likely to deter a freelance worker from, exercising or attempting to exercise any right guaranteed under the Act. Sets for the procedure for freelance workers to file a complaint alleging a violation of the Act. Provides that complaints shall be reviewed by the Department to determine whether there is cause for the Department to initiate the process of facilitating the exchange of information between the parties. Contains provisions concerning notification and response requirements. Authorizes the Attorney General to initiate or intervene in a civil action if the Attorney General has reasonable cause to believe that any person or entity is engaged in a pattern and practice prohibited under the Act. Contains provisions concerning Attorney General investigations; civil penalties; and other enforcement matters. Provides that, subject to appropriation, the Department may conduct a public awareness campaign regarding the Act that, at a minimum, includes making information available on its website, otherwise informing contracting entities of the provisions of this Act, and establishing a means for assistance by a natural person through phone or email. Requires the Department to submit a report every 5 years to the General Assembly on freelance contracting and payment practices, the number of complaints received by the Department alleging a violation of the Act, and other matters. Requires the Department to publish each report on its website. Grants the Director rulemaking authority. Provides that except as otherwise provided by law, a freelance worker shall be paid the contracted compensation amount on or before the date the compensation is due under the terms of the contract. Provides that if the contract does not specify when the hiring party must pay the contracted compensation or the mechanism by which the date will be determined, compensation shall be due no later than 30 days after the completion of the freelance worker's services under the contract. Provides that the definition of "freelance worker" does not include an individual performing construction services. 

HB 1565, Insurance Coverage/Estrogen signed into law. This bill provides that a group or individual policy of accident and health insurance or a managed care plan that is amended, delivered, issued, or renewed on or after January 1, 2025 (rather than January 1, 2024) and that provides coverage for prescription drugs shall include coverage for one or more therapeutic equivalent versions of vaginal estrogen in its formulary.

HB 2089, Insurance signed into law. This bill amends the Illinois Insurance Code. Changes fee amounts for failure of an industrial insured or surplus line producer to file a tax return or report. Removes provisions added by Public Act 94-677, which has been held unconstitutional. In provisions concerning coverage for medically necessary treatment of mental, emotional, nervous, or substance use disorders or conditions, removes language that provides that a request for expedited external review must be initiated within 24 hours following the adverse determination notification by the insurer, and failure to request an expedited external review within 24 hours shall preclude a covered person or a covered person's authorized representative from requesting an expedited external review. Makes other changes. Amends the Small Employer Health Insurance Rating Act. Provides that the provisions shall not apply to any health benefit plan for a small employer that is delivered, issued, renewed, or continued in the State on or after January 1, 2022, unless specified federal law is repealed. Amends the Health Maintenance Organization Act. Provides that health maintenance organizations shall be subject to specified provisions of the Illinois Insurance Code mandating coverage for certain services. Amends the Managed Care Reform and Patient Rights Act. Changes the definition of "health care plan" to include specified not-for-profit voluntary health services plans.

HB 2189, Insulin signed into law. This bill provides that an insurer that provides coverage for prescription insulin drugs under the terms of a health coverage plan the insurer offers shall limit the total amount that an insured is required to pay for a 30-day supply of covered prescription insulin drugs at an amount not to exceed $35 (rather than $100).

HB 2862, Day and Temporary Labor-Oppose signed into law. This bill provides that no day and temporary labor service agency may send a day or temporary laborer to a place where a strike, a lockout, or other labor trouble exists without providing, at or before the time of dispatch, a statement, in writing and in a language that the day and temporary laborer understands, informing the day or temporary laborer of the labor dispute and the day or temporary laborer's right to refuse the assignment without prejudice to receiving another assignment. Provides that a day or temporary laborer who is assigned to work at a third party client for more than 90 calendar days shall be paid not less than the rate of pay and equivalent benefits as the lowest paid directly hired employee of the third party client with the same level of seniority at the company and performing the same or substantially similar work on jobs the performance of which requires substantially similar skill, effort, and responsibility, and that are performed under similar working conditions. Provides that upon a reasonable belief that a day and temporary labor service agency or a third party client is in violation of any part of the Act, an interested party may initiate a civil action in the county where the alleged offenses occurred or where any party to the action resides. Provides that before the assignment of an employee to a worksite employer, a day and temporary labor service agency must: (i) inquire about the client company's safety and health practices and hazards at the actual workplace where the day or temporary laborer will be working; (ii) provide training to the day or temporary laborer for general awareness safety training for recognized industry hazards the day or temporary laborer may encounter at the client company's worksite; (iii) transmit a general description of the training program; (iv) provide the Department of Labor's hotline number for the employee to call to report safety hazards and concerns as part of the employment materials provided to the day or temporary laborer; and (v) inform the day or temporary laborer who the day or temporary laborer should report safety concerns to at the workplace. Makes changes to the monetary amounts of registration fees and penalties. 

HB 3030, Insurance/Billing signed into law. This bill amends the Illinois Insurance Code. In provisions concerning billing for services provided by nonparticipating providers or facilities, provides that if attempts to negotiate reimbursement for services provided by a nonparticipating provider do not result in a resolution of the payment dispute within 30 days after receipt of written explanation of benefits by the health insurance issuer, then the health insurance issuer, nonparticipating provider, or the facility may initiate binding arbitration to determine payment for services provided on a per-bill or a batched-bill basis (instead of only a per-bill basis).

HB 3202, Insurance/Testing signed into law. This bill provides that an individual or group policy of accident and health insurance that is amended, delivered, issued, or renewed on or after January 1, 2025 shall cover a medically necessary home saliva cancer screening every 24 months if the patient is asymptomatic and at high risk for the disease being tested for or demonstrates symptoms of the disease being tested for at a physical exam.

HB 3563, DOIT-AI Task Force signed into law. This bill provides that the Department of Innovation and Technology shall establish the Generative AI and Natural Language Processing Task Force investigate and provide a report on generative artificial intelligence software and natural language processing software. Sets forth the members to serve on the Task Force. Provides that the Task Force shall hold at least 5 meetings, and specifies the format and the location of those minimum amount of meetings.

HB 3631, PBM signed into law. This bill amends the Pharmacy Benefit Managers Article of the Illinois Insurance Code. Provides that a pharmacy benefit manager may not retaliate against a pharmacist or pharmacy for disclosing information in a court, in an administrative hearing, before a legislative commission or committee, in any other proceeding, or to a government or law enforcement agency, if the pharmacist or pharmacy has reasonable cause to believe that the disclosed information is evidence of a violation of a State or federal law, rule, or regulation. Provides that a pharmacist or pharmacy shall make commercially reasonable efforts to limit the disclosure of confidential and proprietary information. Provides that retaliatory actions against a pharmacy or pharmacist include specified actions. Provides that the provisions apply to contracts entered into or renewed on or after July 1, 2022 (rather than July 1, 2023).

SB 684, Central IL Regional Airport Authority signed into law. This bill creates the Central Illinois Regional Airport Authority. Provides that the territory of the Authority shall be the corporate limits of McLean County and that any existing airport authority located within McLean County is dissolved upon the establishment of the Authority. Provides that the new Authority shall assume the rights to all property, assets, and liabilities of any dissolved authority. Provides that, of the 3 commissioners appointed by the county board chairman, 2 shall reside in rural municipalities with a population less than 5,000 and one shall reside in an unincorporated area of McLean County. 

SB 849, Blue-Ribbon Commission signed into law. This bill reenacts the Blue-Ribbon Commission on Transportation Infrastructure Funding and Policy Act. Makes changes to the dates by which the Commission's members must be appointed, hold their first meeting, and report their findings to the General Assembly. Extends the Act's repeal date to February 1, 2024.

SB 851, Broadband signed into law. This bill provides that the Broadband Advisory Council shall evaluate the expansion of the Illinois Century Network to Illinois public schools, public libraries, and State-owned correctional institutions or facilities, including issuing recommendations for increasing agency staffing, infrastructure development, price modeling, and providing download speeds of at least one gigabyte per second and upload speeds of at least one gigabyte per second. Requires the Council to study the feasibility of connecting all Illinois public schools, public libraries, and State-owned correctional institutions or facilities to the Illinois Century Network by January 1, 2030. Provides that the Office of Broadband within the Department of Commerce and Economic Opportunity shall support and assist the Council in the development of the study. Provides that the Council shall issue a report on its findings, recommendations, options for expansion, and any recommended legislation to the General Assembly by January 1, 2024.

SB 1570, Design Build signed into law. This bill creates the Municipal Design-build Contracts Division in the Illinois Municipal Code, which may be cited as the Municipal Design-build Authorization Act. Provides that a municipality may enter into design-build contracts. Includes scope and performance criteria for design-build contracts, a two-phase procedure for selection of contracts, requirements for submission of proposals, procedures for awarding contracts, and requirements of reports and evaluation of contracts. Provides that, if the total overall cost of a project is estimated to be less than $12,000,000, the municipality may combine the two-phase procedure for selection into one phase. Provides that, after a response to a request for qualifications or a request for proposal has been submitted, a design-build entity may not replace, remove, or otherwise modify any firm identified as a member of the proposer's team unless authorized to do so by the municipality. Provides that a school district may enter into design-build contracts.

SB 2014, IDOT Safety Improvements signed into law. This bill requires the Department of Transportation to develop a policy which ensures the safety of pedestrians and cyclists on roadways within the State. Establishes that improvements will be made during routine maintenance and within a distance of 500 feet of the maintenance work on any State road within a municipality to include high visibility signage, crosswalk improvements, curb bump outs, barrier protected bike lanes, and bus shelters. Requires the Department to submit a semi-annual report on pedestrian and bicycle safety improvements on non-highway State routes that have been initiated, are in progress, or are recently completed. 

SB 2034, Child Extended Bereavement-Neutral signed into law. This bill provides that an employee of a large employer that employs 250 or more full-time employees is entitled to use a maximum of 12 weeks of unpaid leave if the employee experiences the loss of a child by suicide or homicide. Provides that an employee of a small employer that employs at least 50 but fewer than 250 full-time employees is entitled to use a maximum of 6 weeks of unpaid leave if the employee experiences the loss of a child by suicide or homicide. Provides that leave may be taken in a single continuous period or intermittently in increments of no less than 4 hours, but leave must be completed within one year after the employee notifies the employer of the loss. Permits an employer to require reasonable advance notice of the employee's intention to leave and reasonable documentation. Provides that an employee who takes leave under the Act is entitled to be restored to the position of employment held by the employee when the leave commenced or to be restored to an equivalent position. Provides that nothing in the Act shall be construed to entitle any restored employee the accrual of any seniority or employment benefits during any period of leave. Provides that the Act does not extend the maximum period of leave to which an employee is entitled under the federal Family and Medical Leave Act of 1993 or under any other paid or unpaid leave provided under federal, State or local law, a collective bargaining agreement, or an employment benefits program or plan. Prohibits an employer from taking any adverse action against an employee who exercises his or her rights under the Act. Requires the Department of Labor to enforce the Act. Provides that a person who uses leave under either the Child Bereavement Leave Act or the Child Extended Bereavement Leave Act may not take leave under the other Act, and amends the Child Bereavement Leave Act accordingly. Provides that the "Employee" does not include full-time employees of the State of Illinois, except for those employees who are not otherwise eligible for family responsibility leave or a leave of absence without pay.

SB 2368, Building Codes signed into law. This bill amends the Capital Development Board Act. In provisions about occupying a newly constructed commercial building in a non-building code jurisdiction, modifies the standards by which a qualified inspector must file a certification of inspection with a municipality. Provides that, once a building permit is issued or construction begins when no building permit is needed, the code in effect on January 1 of that calendar year applies for the duration of the permit or construction. Modifies provisions limiting applicability, modifies definitions, and makes other changes. Modifies how municipalities with a population of less than 1,000,000 and all counties must identify local building codes. Provides that provisions concerning certification for inspection shall apply to a substantially improved commercial building. Provides that specified amendatory changes to the Capital Development Board Act shall apply beginning January 1, 2025.

SB 2424, Land Acquisition signed into law. This bill provides that the definition of "project" includes any land acquisition that is conducted by either the Department of Transportation or Illinois Toll Highway Authority and that requires architectural, engineering, or land surveying services.

Session Update

The General Assembly adjourned in the early morning of Saturday, May 27th. Per SJR 42, the House and Senate have adjourned until the call of the Speaker and the Senate President. The 2023 fall veto session has been announced for October 24th-26th and November 7th-9th. View the calendar here.

Illinois Chamber Membership Survey: Your Participation Requested

Membership in the state's largest advocacy group is an instrumental method to unite the voice of Illinois business leaders. We are pleased with the work we have done and continue to do on behalf of our members and all businesses across the state.

Please take a brief survey sharing your experiences as a member of the Illinois Chamber as we seek to continuously improve our product and better advocate for you!

Click HERE to participate in the survey

Secure Choice Expansion Update

Per State law, employers with 5 or more Illinois employees that have been in business for at least 2 years and that don’t offer a tax-qualified retirement plan are required to register for and facilitate Illinois Secure Choice or adopt their own qualified plan.

Through Illinois Secure Choice, Illinois workers can save for retirement through Individual Retirement Accounts (IRAs) funded by payroll deductions. The program is facilitated by the State of Illinois and administered by a professional financial services firm. Employers do not pay any fees, make contributions, or have any fiduciary responsibility – they simply facilitate employee payroll deductions and keep their employee rosters current.

The registration/exemption deadline for businesses that had an average of 5-15 Illinois employees in 2022 is November 1, 2023. Businesses in this enrollment group will receive correspondence directly from Illinois Secure Choice via mailed letters, and in some cases, emails as well, starting this summer. Correspondence will outline next steps.

In the meantime, business owners can learn more about the program and access resources by:

• Visiting the program website ilsecurechoice.com;

• Watching a recorded Employer Overview; or

• Attending a live employer overview webinar.

If you have any questions, please contact Christine Cheng, Director of Illinois Secure Choice, at ccheng@illinoistreasurer.gov or (312) 515-7566.

Illinois Chamber 2023 Annual Luncheon - Register Today!

We at the Illinois Chamber are thrilled as we look forward to our 2023 annual meeting taking place on September 28th in Oak Brook. As every year, we invite you to join us for a wonderful lineup of speakers and activity in support of the Illinois business community.

We are thrilled that Illinois State Comptroller Susana Mendoza will help us kick off the annual meeting with a fireside chat with Secretary of the Chamber Board, Kelly Edwards - State Counsel for Illinois and Indiana at State Farm Insurance Companies. After lunch has been plated, our keynote speaker, Vice Chair of Inland Real Estate Group and President of Inland Real Estate Acquisitions, Joe Cosenza will address attendees. The event will conclude with a time of remembrance and a tribute to Illinois Chamber President and CEO Todd Maisch who we sadly lost earlier this summer. 

When

• Sep. 28th, 10:30am - 2:00pm

Where

• Doubletree by Hilton Hotel Chicago in Oak Brook

Register HERE - we can't wait to see you at the luncheon!

Local Chambers: 2023 Legislative Presentation Opportunity

The Illinois Chamber is pleased to offer in-person and virtual legislative recap presentations to local chambers across the state. This opportunity, offered exclusively as a benefit to local chambers within our membership, provides insight into the major legislative action that occurred this spring at the statehouse and what it means for Illinois businesses.

If you are putting together programming for the rest of this summer and fall we are happy to offer our services on this topic to keep your members legislatively informed.

For any questions please contact Andrew Cunningham, at acunningham@ilchamber.org

Illinois Sales Tax: Exemptions and Incentives

Date/Time: August 31, 2023 | 1:30 pm – 2:30 pm

We will provide practical advice for claiming and documenting sales tax exemptions; including a discussion of exemptions and documentation requirements for sellers and purchasers. Plan to join Keith Staats, Executive Director of Illinois Chamber's Tax Institute for this presentation!



Registration Link: HERE