ISACo News and Views Newsletter for May 17, 2019

May 17, 2019

ISACo News and Views

This Illinois State Association of Counties (ISACo) weekly News and Views newsletter discusses issues that remain unresolved ahead of the scheduled May 31 spring session adjournment date, reports on a meeting of ISACo's Large County Board Caucus (LCBC), provides an update on ISACo's efforts to prevent pending IMRF employer contribution increases, offers a "save the date" for a White House visit opportunity for county officials, announces the launch of ISACo's Corporate Partner Program, includes bills of interest to counties that advanced during the week, provides links to ISACo's social media platforms, looks at key upcoming dates on the legislative calendar and invites counties to join ISACo.

Previously published News and Views newsletters are available via this link.

Please visit our website (www.isacoil.org) for additional resources and information.

Scheduled Adjournment Rapidly Approaching - Unfinished Business Remains

The scheduled adjournment date for the 2019 spring legislative session is two weeks away and significant legislative work has yet to be accomplished.

First and foremost, the General Assembly must approve a State Fiscal Year (SFY) 2020 budget. At this time there is no reason to believe a budget will not be approved by the end of May.

Other major issues appear more problematic. Legislators and the Governor have not yet reached agreement on capital infrastructure, gaming expansion and sports betting. Legislation to legalize recreational cannabis has been introduced, but uncertainty surrounds whether there are sufficient votes for passage through both chambers.

It was announced on Friday that legislators have been briefed on Governor Pritzker's preliminary capital infrastructure plan. The draft proposes a six-year, $41.5 billion plan. Additional information will be provided when available.

A proposed constitutional amendment allowing for graduated income tax rates passed the Senate but awaits consideration in the House, along with bills to actually establish the graduated income tax rates and provide tax relief. While these tax measures do not need to be approved this year, they are nonetheless major issues that await further action by the General Assembly.

When the General Assembly returns to Springfield on Monday, May 20, both chambers are scheduled to remain in session every day through the May 31 adjournment deadline. There's still time to address some of the more substantial issues that remain, but in the words of the incomparable Yogi Berra, it gets late early around here.

ISACo Holds Large County Board Caucus Meeting

ISACo's bylaws provide for the formation of three different caucuses based upon geography and/or population. These caucuses include the Cook and Collar County Caucus (CCCC), the Large County Board Caucus (LCBC) and the Rural Action Caucus (RAC). Each caucus operates under the ISACo umbrella and provides action forums where counties of similar size and interests work together to identify and solve common problems.

In addition to providing platforms to address county issues, the ISACo caucus system was created to answer the following question: What happens when there is a significant disagreement among ISACo members on how to approach a legislative or policy issue?

When confronting such a disagreement, ISACo will not take an official position on the issue in question. Rather, each of the three caucuses are authorized to act independently and take whatever position their caucus chooses following a vote in accordance with its own bylaws. A caucus can then instruct its caucus lobbyist to advocate for that position before the General Assembly and Governor.

Large County Board Caucus Meeting

The inaugural meeting of the LCBC was held on Friday, May 10, 2019, in Kane County. Membership in the LCBC is available to ISACo member counties with populations of 100,000 or more residents. The meeting was organized by Tazewell County Board Chairman (and ISACo Board Member) David Zimmerman. Meeting participants reviewed and offered amendments to proposed bylaws and elected Lake County Board Chairwoman Sandy Hart as the first chair of the LCBC. Selection of a vice chair was deferred until a future meeting.

Following this basic organizational work, LCBC participants discussed transportation infrastructure funding legislation, county taxation and regulatory authority under the recently introduced legislation to legalize recreational cannabis and how proposed graduated income tax legislation would impact state revenues shared with counties. The caucus also discussed the expected rise in employer contribution payments resulting from a decision by the Illinois Municipal Retirement Fund (IMRF) Board of Trustees to reduce the Fund's assumed investment return.

While discussing the above issues, LCBC members identified agreed-upon policy outcomes that the caucus could support.

If your county is interested in becoming involved within ISACo's governance and policy decision making structure, please contact Executive Director Joe McCoy at jmccoy@isacoil.org or at 217/679-3368.

County Officials Address IMRF Board

On Friday, May 17, ISACo staff joined a group of county officials at a meeting of the Illinois Municipal Retirement Fund (IMRF) Board of Trustees.

At issue is a prior decision by the IMRF Board to reduce the Fund’s assumed investment return rate from 7.5% to 7.25%. This change will result in an increase in required employer contributions to IMRF. The ability to keep millions of dollars available for county operational expenses is at stake.

Of particular relevance is that IMRF is over 90% funded. Considering IMRF’s already strong financial condition, many county leaders object to sending additional local tax dollars to the Fund when these tax dollars are needed for other local purposes.

During Friday's IMRF Board meeting, Kane County Chairman Chris Lauzen (pictured) delivered a presentation making the case against the reduction to the investment rate assumption and urging the IMRF Board to reverse its decision. Other county officials who spoke in support of this position included Kendall County Board Chairman Scott Gryder, DeKalb County Board Chairman Mark Pietrowski and Will County Board Member Mimi Cowan.

The IMRF Board was not scheduled to take any action on the annual investment return assumption during this particular meeting. ISACo will provide further updates on the issue when new information becomes available.

ISACo thanks each of these county officials for providing leadership in an effort to keep more tax dollars available for local needs. We also extend appreciation to the IMRF Board and staff for the opportunity to express our concerns.

ISACo previously reported about this issue in the March 29, 2019, News and Views e-newsletter ( available via this link ).

A March 18, 2019, letter from Executive Director Joe McCoy to IMRF Executive Director Brian Collins is available via this link.

White House County Day

Newly-elected Illinois county officials are invited to attend a White House County Day tentatively scheduled for Tuesday, August 20, 2019, in Washington, DC. The event will offer opportunities to interact with, and receive briefings from, White House officials on federal issues important to counties.

This is intended as a preliminary notification of the event so interested county officials can mark the date on their calendars. ISACo will make additional details available once they are released. If you are interested in participating in the event, please contact Executive Director Joe McCoy at jmccoy@isacoil.org or at 217/679-3368.

ISACo Launches Corporate Partner Program

ISACo is pleased to announce the creation of our Corporate Partner Program.

ISACo's Corporate Partner program was established to provide a forum for companies and organizations to build relationships with county officials while supporting the important work of ISACo.

The program offers five options for corporations and organizations to become associate members of ISACo while receiving benefits for this status.

Additional information about the program is available via this link.

Legislation Advanced This Week

The following bills of interest to counties were advanced during the week of May 13-17.

Bills Approved by Senate Committees

Hospital Report Card Act (Representative Flowers, D-Chicago/Senator Collins, D-Chicago)

House Bill 3 ( available via this link ) would amend the Hospital Report Card Act to require that each hospital include in its quarterly report instances of preterm infants, infant mortality, and maternal mortality. Requires the reporting of racial and ethnic information of the infants' mothers, along with the disparity of occurrences across different racial and ethnic groups. The bill was approved by the Senate Public Health Committee.

Nursing Home - Offset Fines (Representative Unes, R-Pekin/Senator Steans, D-Chicago)

House Bill 3035 ( available via this link ) would amend the Nursing Home Care Act to provide that if a licensee has a civil monetary penalty imposed (rather than having paid a civil monetary penalty that has been imposed) pursuant to the Medicare and Medicaid Certification Program for the equivalent federal violation giving rise to a fine under specified provisions of the Act, the Department of Public Health shall offset the fine by the amount of the civil monetary penalty. The bill was approved by the Senate Public Health Committee.

Revenue - Plastic Bags (Senator Link, D-Gurnee)

Senate Bill 1240 ( avail able via this link ) as introduced would c reate the Checkout Bag Tax Act to impose a tax of $0.07 on each checkout bag used by a customer at a retail establishment in the State. The bill provides that proceeds from the tax shall be distributed as follows: (1) the retailer shall retain $0.02 per bag; (2) the wholesaler shall retain $0.02 per bag; and (3) $0.03 per bag shall be deposited into the Checkout Bag Tax Fund. Amends the State Finance Act to create the Checkout Bag Tax Fund. Provides that moneys in the Fund shall be remitted to counties and municipal joint action agencies. Amends the Counties Code and the Illinois Municipal Code to preempt certain actions by counties and municipalities concerning auxiliary containers or checkout bags. The bill was approved by the Senate Assignments Committee and sent to the Senate Floor. Amendments have been filed for the bill but not yet adopted on the Senate Floor.

Bills Approved by House Committees

County Recorder - Expired Liens (Senator Castro, D-Elgin/Representative Costa Howard, D-Lombard)

Senate Bill 62 ( available via this link ) would amend t he Recorder Division of the Counties Code to modify how a county recorder determines if a lien is an expired lien under a county's demand and referral program by providing that a lien is expired if a suit to enforce the lien has not been commenced or a counterclaim has not been filed by the lienholder within 2 years after the completion date of the contract as specified in the recorded mechanics lien. Provides that the 2-year period shall be increased to the extent that an automatic stay under specified provisions of the United States Bankruptcy Code stays a suit or counterclaim to foreclose the lien or, if a work completion date is not specified in the recorded lien, then the work completion date is the date of recording of the mechanics lien. The bill was approved by the House Executive Committee.

Contract Prompt Pay Retainage (Senator Mulroe, D-Chicago/Representative Arroyo, D-Chicago)

Senate Bill 1636 ( available via this link ) would amend the Contractor Prompt Payment Act to provide that a retainage of 10% of the payment may be withheld from a payment under a construction contract prior to the completion of 50% of the contract. Provides that after 50% of the contract is completed, the amount of retainage for any subsequent payment may not exceed 5%. The bill was approved by the House Executive Committee.

Bill Approved by the Senate

Human Rights - Employer - Definition (Representative Guzzardi, D-Chicago/Senator Castro, D-Elgin)

House Bill 252 ( available via this link ) would amend the Illinois Human Rights Act to provide that "employer" includes any person employing one (instead of 15) or more employees within Illinois during 20 or more calendar weeks within the calendar year of or preceding the alleged violation. Provides that "employer" does not include any place of worship with respect to the employment of individuals of a particular religion to perform work connected with the carrying on by the place of worship of its activities. The bill was approved by the Senate and must return to the House for consideration.

Bills Approved By Both Chambers

Workers' Comp - Ability To Pay (Representative Hoffman, D-Belleville/Senator Holmes, D-Aurora)

House Bill 269 ( available via this link ) would amend the Workers' Compensation Act to permit a single commissioner to approve of enforcement actions under provisions of the Act concerning insuring an employer's ability to pay compensation, replacing the current requirement of a panel of 3 commissioners. Permits the Illinois Workers' Compensation Commission to, if an employer's business is declared to be extra hazardous, issue a work-stop order while awaiting a ruling from the Commission or while awaiting proof of insurance by the employer. Provides that investigative actions must be acted upon within 90 days of the issuance of a complaint. Raises the maximum allowable penalty for noncompliance with certain insurance requirements from $2,000 to $10,000. Doubles the maximum allowable penalties, to $1,000 per day, with a minimum penalty of $20,000, for employers found to be in noncompliance more than once. Provides that an employer with 2 or more violations may no longer self-insure or purchase an insurance policy from a private broker for one year or until all penalties are paid, during which time the employer must purchase insurance from the Assigned Risk Pool through the National Council on Compensation Insurance. This bill was approved by both chambers and will next be considered by the Governor. ISACo Opposes

Horse Racing - Local Share (Representative Carroll, D-Northbrook/Senator Link, D-Gurnee)

House Bill 1552 ( available via this link ) would amend the Illinois Horse Racing Act of 1975 to provide that inter-track wagering location licensees must pay their parimutuel handle percentage to the municipality and county no later than the 20th of the month following the month the handle was generated. Provides that inter-track wagering location licensees must pay the admission fees to the municipality and county no later than the 20th of the month following the month the admission fees were imposed (rather than remitting the admission fees to the Illinois Racing Board within 48 hours and the Illinois Racing Board remitting the admission fees to the municipality or county). This bill was approved by both chambers and will next be considered by the Governor. ISACo Supports

Hospital - Blood Pressure (Representative Flowers, D-Chicago/Senator Belt, D-East St. Louis)

House Bill 2433 ( available via this link ) would amend the Hospital Licensing Act and the University of Illinois Hospital Act to require every hospital to ensure that it has the proper instruments available for taking a pregnant woman's blood pressure. Provides that the Department of Public Health shall adopt rules for the implementation of the requirement. This bill was approved by both chambers and will next be considered by the Governor.

Public Construction Bonds (Representative Gong-Gershowitz, D-Glenview/Senator Mulroe, D-Chicago)

House Bill 2722 ( available via this link ) would amend the Public Construction Bond Act to provide for bonds issued under the Act to be used for, among other conditions, the payment of apparatus, fixtures, and machinery used in the completion of a contract. Provides that the terms "material", "labor", "apparatus", "fixtures", and "machinery" include those rented items that are on the construction site and those rented tools that are used or consumed on the construction site in the performance of the contract on account of which the bond is given. This bill was approved by both chambers and will next be considered by the Governor.

Raffles and Poker Runs (Representative Rita, D-Blue Island/Senator Syverson, R-Rockford)

House Bill 3334 ( available via this link ) would amend the Raffles and Pokers Runs Act to provide that raffles shall be licensed by the governing body of the municipality with jurisdiction over the location where the winning chances in the raffle are determined. If no municipality has jurisdiction, than the county shall be the licensing authority. Provides that a license shall authorize the holder of such license to sell raffle chances throughout the State, including beyond the borders of the licensing municipality or county. Provides that sponsoring organizations may contract with third parties to provide certain services to the sponsoring organization in connection with the operation of a raffle and may pay reasonable compensation for such services. Makes changes in provisions concerning licenses, applications, issuance, restrictions, and ineligible persons; conduct of raffles and poker runs; managers and bonds; records; and political committees. Incorporates provisions concerning raffles by law enforcement agencies and statewide associations that represent law enforcement officials into the rest of the Act. Makes corresponding changes in the Criminal Code of 2012. This bill was approved by both chambers and will next be considered by the Governor.

Hospital - Health Insurance Post (Representative Ortiz, D-Chicago/Senator Martinez, D-Chicago)

House Bill 3487 ( available via this link ) would amend the University of Illinois Hospital Act and Hospital Licensing Act. Provides that each hospital shall post, in each facility that has an emergency room, a notice in a conspicuous location in the emergency room with information about how to enroll in health insurance through the Illinois health insurance marketplace. This bill was approved by both chambers and will next be considered by the Governor.

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Looking Ahead...

When the General Assembly returns to session on Monday, May 20, both chambers are scheduled to remain in session every day until adjournment.

The deadline to move House bills out of the Senate and Senate bills out of the House is May 24.

Both chambers are scheduled to adjourn on May 31.

The Key to ISACo's Success is YOU!

Is your county a member of ISACo? If not, why not?

ISACo is a statewide association whose mission is to empower county officials to provide excellent service to their residents.

ISACo member counties are comprised of forward-thinking public servants who recognize that the challenges confronting county governments require new and innovative ideas, collaborative solutions and collective advocacy at the state and federal levels of government.

Members of the association will benefit from education and training opportunities, peer-to-peer networking, shared resources and robust representation before policymakers at various levels of government. ISACo creates and connects county officials to these opportunities and successfully equips them to make counties ideal places to live, work and play.

If your county is interested in discussing membership in ISACo, please contact Executive Director Joe McCoy at (217) 679-3368 or jmccoy@isacoil.org. Thank you for your consideration.

News and Views is a service provided by ISACo for county officials and staff. Please feel welcome to share with interested parties. You can contact ISACo Executive Director Joe McCoy at jmccoy@isacoil.org or (217) 679-3368 if we can be of service. Thank you for your support of ISACo.