SPRINGFIELD ROUNDUP

The Illinois General Assembly adjourned on the evening of May 7 but lawmakers will come back to Springfield later in the month to finish their legislative work before the traditional adjournment date of May 31.  The late May session is expected to focus primarily on the FY 2011 budget and other fiscal issues (see list of pending budget bills below) and the difficult task of resolving a $13 billion budget deficit.  This update highlights other bills of interest to Chicagoland Chamber members. These have either passed both houses and are headed to the governor, or have been amended and are pending in the House or Senate, with possible action when the session reconvenes.

Note: For information on specific bills, visit www.ilga.gov and click on “Bills and Resolutions” and find the bill number. Click on “enrolled” version if it has passed both houses, or click on the appropriate amendment as indicated in the bill description.

(Also, for information on the seven percent assessment cap - SB 3638, McPier reform – SB 28, and telecom modernization – SB 107, see Chicagoland Chamber’s May 10 Springfield Roundup)

State Budget (Pending Legislation)

House Bill 859, Senate Amendments #1-3, 6-8 (Hannig, Trotter). The Senate passed this $26 billion state operations spending plan on May 7, shortly after midnight.  The amendments are pending on concurrence in the House. 

House Bill 2428, Senate Amendment #1-2 (May, Cullerton).  Grants discretionary budget-cutting authority to the governor and authorizes the securitization of the tobacco settlement fund, as well as mandating furlough days for state employees. The amendments passed the Senate and are pending on concurrence in the House. Senate Bill 3660, House Amendment #3 (Demuzio, Currie) and Senate Bill 1211, House Amendment #1 (Trotter, Madigan) contain most of the same provisions, but neither has been called for a vote in the House. House Amendment #2 to SB 1211, which would have deeply cut state spending across the board, lost 15-99 on May 7.

Senate Bill 3514, House Amendment #3 (Schoenberg, Currie) - Authorizes $4 billion in borrowing through state bonding plans. House Amendment #3 garnered only 59 “yes” votes on May 7 (it needed 72 votes) and was put on postponed consideration. Senate Bill 49, House Amendment #3 (Forby, Currie) contains a similar borrowing provision but was not voted on by the House.

Senate Bill 3662, House Amendment #2, (Noland, Currie) – Authorizes transfers out of specific state funds for FY 2011. Amendment #2 was filed on May 7 and has not been voted upon in the House

Taxes

House Bill 5833, Senate Amendment #1 (Currie, Bond) – Contains the Illinois Department of Revenues administrative changes.  Among its provisions: a taxpayer who has an annual tax liability of $20,000 (instead of $200,000) or more shall make all payments of that tax by electronic funds transfer.  HB5833 has passed the Senate and is pending in the House on concurrence. (The House passed an earlier version of this bill.)

Senate Bill 44, House Amendment #5 (Schoenberg,Yarbrough) - Provides for a two-year phase-in of a $1 per pack increase in the state tax on cigarettes;  a 50 cent increase in the state tax in September with another 50 cent increase taking effect in 2011.  An earlier version of SB 44 passed the Senate in 2009; House Amendment # 5 has been approved by a House committee and is pending on the House floor.

Senate 1826 (Sullivan, Mautino) – Provides that taxable income for cooperatives shall be computed without regard to the prohibition in the Internal Revenue Code against offsetting losses from patronage activities against income from nonpatronage activities. SB 1826 passed both houses.

Senate Bill 2093, House Amendment #4 (Forby, Bradley) - Creates  provisions concerning the establishment of STAR (state tax and revenue) bond districts and the approval of STAR co-developers and sub developers of STAR bond projects; the initial project is slated for Marion with sales tax proceeds to be used for bond debt. Amendment #4 also contains the income tax credit for angel investors and raises the cap on new market developments tax credit from $10 to $20 million. (The Chicagoland Chamber has been supportive of the latter two provisions, but has not taken a position on the STAR bonds.)  SB 2093, as amended, passed the House and is pending in the Senate.

Senate Bill 3152 (Link, Froelich)   - Makes changes to existing TIF laws including accountability and status reports to the appropriate state and local authorities. A product of the Property Tax Task Force chaired by Sen. Link, SB 3152 passed both houses.

Senate Bill 3646 (Holmes, Currie) - In income tax provisions concerning a deduction for income distributable to an entity subject to the Personal Property Tax Replacement Income Tax, removes language providing that the deduction is not allowed to publicly traded partnerships for taxable years ending on or after December 31, 2009. SB 3646 passed both houses.

Senate Bill 3655 (Kotowski, Currie) – Corrects an administrative interpretation by the Illinois Department of Revenue that the investment tax credit for research and development expired at the end of 2009, instead of 2010.  (The Chicagoland Chamber has joined in advocating for legislative clarification and restoration of this important business tax incentive.)  SB 3655 passed both houses.

Senate Bill 3658, House Amendment #2 (Demuzio, Farnham) – Creates a state sales tax “holiday” on school items from August 6, 2010 through August 15, 2010, and each year thereafter beginning on the first Friday in August and ending on the Sunday occurring 9 days thereafter through August 2013.  The state sales tax imposed on clothing and school supplies shall be at the rate of 1.25% (instead of 6.25%). SB 3568, as amended, passed the House and is pending in the Senate.

Senate Bill 3710, House Amendment #2 (Kotowski, Currie) - Creates income tax credits for amounts invested by a taxpayer in a qualified new business venture; provides that the credit shall be equal to 25% of the amount invested and that the credits may be carried forward for a period of 5 years. Also raises the cap on new markets development tax credit from $10 million to $20 million.  An earlier version passed the Senate; the House Amendment #2 has not yet been voted on in the House.  (See also SB 2093)

Miscellaneous

House Bill 4927, Senate Amendments #1-3 (Lang, Link) – Makes changes to certain licensing and location provisions of the video gaming law passed in 2009.  HB 4927 passed the Senate and is pending in the House on concurrence.

House Bill 5873, Senate Amendment #3 (Flider, Link) – Makes substantial changes to the police and fire pension codes.  HB 5873, as amended, is pending in the Senate.

House Bill 6202, Senate Amendment #3 (Burns, Harmon)   - Provides that, of the renewable energy resources procured using moneys in the Illinois Power Agency Renewable Energy Resources Fund and those renewable energy resources procured to meet the renewable portfolio standard, certain specified percentages shall come from photovoltaics.  HB 6202 passed the Senate and is pending in the House on concurrence.

House 6208 (Nekritz, Silverstein) - Provides that all third-party sales representatives engaged in the marketing of retail electricity supply must, prior to the customer signing a contract, make certain disclosures, on or after July 1, 2011. HB 6208 passed both houses.

Senate Bill 1526 (Schoenberg, Currie) – Makes numerous changes to the lobbyist registration act approved in 2009 and found unconstitutional earlier this year. Among the changes:  the registration fees are changed to $300. SB 1526 passed both houses.

Senate Bill 3576 (Schoenberg, Currie) – Makes changes to the Illinois procurement Code, including clarification of provisions in Senate Bill 51, Public Act 96-795; includes some provisions advocated by the state Chamber and other business groups. SB 3576 passed both houses.

Senate Resolution 806 (Sandoval) - Creates the Illinois and Midwest High-Speed Rail Commission to prepare and issue a report to the governor and legislature by December 31, 2010, recommending the best governmental structure for a public-private partnership to design, build, operate, maintain, and finance a high-speed rail system for Illinois and the Midwest. SR 806 passed the Senate; it does not require the governor’s signature.

Other Business Issues

House Bill 4658, House Amendments #1, 2; Senate Amendments #1, 2 (Franks, Harmon) – Sets up an employee credit privacy act, with numerous provisions regarding an employee’s credit history. HB 4658 passed the Senate and is pending in the House on concurrence.

Senate Bill 1118, (Harmon, Bradley) - Provides that for purposes of certain provisions concerning loans made to corporations or for certain business purposes, an annual interest rate may be lawfully computed over a year based on 360 days. (The Chicagoland Chamber supports SB 1118, which passed both houses.)

Previously Enacted Laws (See April 19 Springfield Roundup)

Senate Bill 1578 (Noland, Madigan) – contains the small business jobs tax credit and was signed into law by the governor on April 13 as Public Act 96-888.

Senate Bill 1946 (Cullerton, Madigan) –changes certain public employees’ pension systems and was signed into law by the governor on April 14 as Public Act 96-889.

For a complete bill file, or if you have questions, please contact the Government Relations Division. 

Prepared by Joan Parker, Joan A. Parker Government Affairs, for the Chicagoland Chamber of Commerce

GOVERNMENT RELATIONS STAFF

Michael Mini, Director
312.494.6787
mmini@chicagolandchamber.org