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Transportation Network Providers Act Given Extension
The Transportation Network Providers Act (TNPA) is the enabling statute, which allows ridesharing companies like Lyft and Uber to operate in Illinois. Ridesharing companies are vital for the state’s economy. They create tens of thousands of well-paid jobs. They help both business travelers and tourists get around Illinois. More importantly, they are public safety tools, having kept thousands of potential drunk drivers off the roadways.
The TNPA was scheduled to expire on January 1st of next year. This would have been a disaster for Illinois. While an extension should've been expected. the trail lawyers sought to remove essential liability protections.
The Illinois Chamber sought a one year, clean (i.e. unaltered) extension of the TNPA. We drafted a letter to the legislative leaders to that end and you can read the letter HERE.
The Illinois business community got three-quarters of what was requested. HB 2406 (Stuart-Hunter) contained several sunset extensions, including for the TNPA for a period of nine months.
The Chamber expects this to be a major issue this Spring.
Illinois Chamber Signs Letter Urging Congressional Action to Avert Rail Strike
Earlier this week, the Illinois Chamber signed onto a national coalition letter urging Congressional action to avoid a national rail strike while warning of its potentially devastating effects on the US economy.
In part, the letter said the following.
We write in concern of the potential for a devastating nationwide rail strike in early December and call on Congress to ensure this worst-case scenario is averted.
A rail stoppage would cost at least $2 billion per day in lost economic output across the U.S., according to inflation-adjusted damage estimates from the Federal Railroad Administration (FRA). Rail service is critical to all industry—from manufacturing and trade to construction and agriculture. Trains serve business at every stage, from moving the raw materials necessary for production to the finished products ready for consumers or export. It would take almost 470,000 additional long-haul trucks every day to carry the displaced rail freight resulting from a stoppage, a feat that’s not even possible today given driver shortages.
A rail network shutdown of any duration would also lead to plant shutdowns and job losses. An FRA model showed that a two-week, nationwide strike in 1992 would have caused some 570,000 layoffs in rail-served industries—a number that would be higher today given our more robust supply chains.
Take the implications for international trade, to which about half of all rail intermodal volumes are connected. The American Association of Port Authorities said, “a network shutdown of any length would have far-reaching effects.” The Retail Industry Leaders Association similarly wrote that a network disruption would be “devastating” to the businesses that rely on rail.
Read the full letter here.
On Wednesday, the US House of Representatives passed H.J. Res.100 by a vote of 290-137. The resolution was passed yesterday in the Senate by a vote of 80-15-0. This joint resolution requires the parties to the disputes between certain railroads and labor organizations to accept the most recent tentative agreements, side letters, and local carrier agreements entered into by the parties that have not been ratified before the date of enactment of this joint resolution.
The US Chamber strongly urged for the passage of this resolution to avert the rail strike. This resolution is expected to be signed by President Biden.
Legislative Action
HB 1095, SAFE-T Trailer Bill passed the Senate by a vote of 38-17-0 and passed the House by a vote of 71-40-0. This is is the trailer bill that made various changes to the implementation of the SAFE-T Act originally passed last Spring.
HB 1293, Russia Divestiture passed the House on concurrence by a vote of 109-0-0. This bill, among many other things, prohibits the investment of State moneys and public funds in certain investments or institutions tied to Russia or Belarus. This bill unanimously passed the House in April but received some cleanup in Senate Amendment 1 and passed the Senate in the first week of veto session.
HB 2406, Sunset Date Extensions passed out of the Senate by a vote of 96-0-4 and passed the House on Concurrence by a vote of 96-04. This bill, as amended, extends various sunset dates. Including an amendment to the Illinois Power Agency Act, which provides that language that states that the authorization to impose any new taxes or fees specifically related to generation of electricity by, the capacity to generate electricity by, or the emissions into the atmosphere by electric generating facilities is an exclusive power and function of the State is repealed on January 1, 2024 (instead of January 1, 2023). This bill also extends the Transportation Network Providers Act repeal date to September 1, 2023. This is the enabling act for rideshare companies like Uber and Lyft. The extension of this repeal date to September means this issue will be continued in the Spring.
HB 3080, Autoimmune Disorder Coverage passed the Senate by a vote of 55-0-0. This bill, as amended, provides that no group or individual policy of accident and health insurance or managed care plan shall deny or delay coverage for medically necessary treatment because the insured, enrollee, or beneficiary previously received any treatment, including the same or similar treatment, for pediatric autoimmune neuropsychiatric disorders associated with streptococcal infections or pediatric acute onset neuropsychiatric syndrome, or because the insured, enrollee, or beneficiary has been diagnosed with or receives treatment for an otherwise diagnosed condition. This is unless the patient is no longer benefiting from treatment. During the committee hearing yesterday, the sponsor committed to amending the bill to address the concerns of opponents. After Senate Amendment 2, there was no opposition.
HB 5049, SOS Rulemaking/Age-related Study passed the Senate by a vote of 52-1-0 and the House by a vote of 80-14-1.. This bill changes the repeal date of provisions concerning emergency rulemaking by the Secretary of State from January 1, 2023 to October 1, 2023. Requires the Secretary of State to conduct a study, by October 1, 2023, on age-related changes in vision, physical functioning, and the ability to reason and remember, as well as any other diseases and medications that might affect safe driving abilities. Provides that upon completion of the study, if the study shows that there is no immediate risk to public safety, the Secretary of State may adopt administrative rules to raise or lower the age requirement for actual demonstrations, provided that the required age shall be no lower than the minimum age required under a specified provision of the Illinois Vehicle Code concerning the re-examination of certain driver's license applicants.
HB 5189 Tax Changes passed out of the Senate and House. This bill provides that a deduction for contributions to a qualified ABLE account applies for taxable years beginning prior to January 1, 2028 (currently, January 1, 2023). Creates a deduction for amounts that are included in the taxpayer's federal adjusted gross income as discharge of indebtedness attributable to student loan forgiveness. Amends the Live Theater Production Tax Credit Act. Provides that, for State Fiscal Year 2023, "accredited theater production" also includes any commercial Broadway touring show. Provides that the amount of tax credits awarded pursuant to the Act for the State fiscal year ending on June 30, 2023 shall not exceed $4,000,000 (currently, $2,000,000). Provides that, for the State fiscal year ending on June 30, 2023, no more than $2,000,000 in credits may be awarded to accredited theater productions that are not commercial Broadway touring shows, and no more than $2,000,000 in credits may be awarded to commercial Broadway touring shows. Provides that commercial Broadway touring shows are not required to show that the applicant's accredited theater production would not occur in Illinois without the credit. Amends the Property Tax Code. Provides that, in Cook County, the estimated first installment of unpaid taxes for tax year 2022 shall be deemed delinquent after March 1, 2023 and shall bear interest after April 1, 2023 at the rate of 1.5% per month or portion thereof until paid or forfeited. Amends the Reimagining Electric Vehicles in Illinois Act. Among other things, this bill provides that, if a project ceases to qualify as a REV Illinois project because the taxpayer is no longer an electric vehicle manufacturer, an electric vehicle component manufacturer, an electric vehicle power supply equipment manufacturer, a battery recycling and reuse manufacturer, or a battery raw materials refining service provider, the project may still receive certain tax credit awards, as long as the project continues to meet other requirements. Specifies that certain agreements may be renewed. Increases the maximum amount of specified credits.
SB 1595, TIF Extensions passed the House by a vote of 93-11-5 and passed the Senate on concurrence by a vote of 52-0-0. This bill amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Extends the estimated dates of completion of redevelopment projects and the retirement of obligations issued to finance redevelopment project costs for various ordinances adopted by the City of Chicago, the Village of Elkhart, the City of Robinson, the Village of Valmeyer, and the City of McHenry. Creates tax increment allocation financing extensions to the 47th year (currently, the 35th year) for ordinances adopted by the City of Pontiac if the City of Pontiac adopts a specified ordinance and provides notice to the taxing bodies that would otherwise constitute the joint review board of each redevelopment project area.
SB 1698 UI Agreement Bill passed out of the House by a vote of 95-8-2 and passed the Senate by a vote of 45-8-0. This bill provides that, with respect to any benefit year beginning on or after January 1, 2025 (rather than 2023) and before January 1, 2026 (rather than 2024), "maximum weekly benefit amount" with respect to each week beginning within a benefit period means 40.6% (rather than 42.4%) of the statewide average weekly wage, rounded to the next higher dollar. Provides that, with respect to any benefit year beginning on or after January 1, 2025 (rather than 2023) and before January 1, 2026 (rather than 2024), any otherwise eligible individual shall be entitled, during such benefit year, to a maximum total amount of benefits equal to 23 (rather than 24) times his or her weekly benefit amount plus dependents' allowances, or to the total wages for insured work paid to such individual during the individual's base period, whichever is smaller. In provisions concerning solvency adjustments, makes specified changes to what balance the trust fund needs to meet for the rate adjustments to apply. Provides that the target balance in calendar year 2023 and each calendar year thereafter is $1,750,000,000. Provides that if an appropriation is made in calendar year 2023 to this State's account in the Unemployment Trust Fund, as a loan solely for purposes of paying unemployment insurance benefits under this Act and without the accrual of interest, from a fund of the State treasury, the Director shall take all necessary action to transfer 10% of the total amount of the appropriation from this State's account in the Unemployment Trust Fund to the State's Budget Stabilization Fund prior to July 1 of each year or as soon thereafter as practical. Makes other changes. Provides that if funds from the State treasury are not appropriated on or before January 31, 2023, then previously described provisions are inoperative. Instead, reinserts certain provisions previously described but changes the benefit years described to 2024 and 2025. Makes other changes. Effective January 1, 2023. This is the agreement on unemployment insurance trust fund debt.
SB 1794, Local Government/Utility Taxes passed the House by a vote of 97-0-1. Among other things, In provisions amending the Local Government Taxpayers' Bill of Rights Act, this bill provides that a notice of determination of tax due or assessment (removing the limitation in the engrossed bill to utility taxes) may be issued more than 5 years (rather than 7 years in the engrossed bill) after the end of the calendar year for which the return or the period was filed or the end of the calendar year in which the return for the period was due, whichever occurs later.
SB 2324, Tourism District passed out of the Senate Revenue Committee by a vote of 9-1-0. This bill creates the Tourism Marketing and Recovery District Law. Provides that a governmental unit (a municipality, county, township, or any combination thereof) may, by ordinance, initiate proceedings to create a tourism marketing and recovery district that would allow a transaction charge to be imposed upon customer transactions entered into by tourism businesses in the district and such charges may be based on revenue, sales, or any other business-related factor deemed appropriate by the governing body. Provides that the transaction charge collected by the governmental unit shall be remitted to a tourism and convention bureau to be used for marketing, promotions, sales efforts, events, and other activities that are reasonably related to the enhancement of tourism. The sponsor answered numerous questions on concerns with the bill and said she will introduce an amendment with expected action in the lame duck session.
SB 2801, UI Trust Fund Debt Appropriations passed the Senate by a vote of 46-9-0. 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.
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