Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”

Chamber members:

House lawmakers finally approved the state budget for fiscal year ’25 in the early hours today after brief floor action yesterday afternoon and committee hearings into the evening. Final action was taken just shy of 5:00 am. Extensive debate was held over the budget bills before the final votes. The Senate had finished approval on Sunday and adjourned. With the House now adjourned, business has officially concluded for the 2024 spring session.

For tracking purposes on major legislative topics, HB4582 is the bond authorization. SB 251 is the FY25 budget appropriations bill. HB 4959 is the budget implementation bill (BIMP). HB 4951 is the revenue omnibus. Happy reading for those interested!


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Illinois Budget Recap

HB 4582, Bond Authorization passed the House 72-38-0 on concurrence. This bill, among other things, increases the State’s total general obligation bond authorization from $79,440,839,969 to $81,789,839,969. Increases the amount of bond funds that may be used for various purposes. Specifies that bonds issued under the Act during fiscal year 2025 may be issued with principal or mandatory redemption amounts in unequal amounts.

SB 251, FY25 State Budget passed the House 65-45-0 and has now passed both chambers. This bill contains the FY25 Operating and Capital appropriations. The FY25 budget will be $53.1 billion.

HB 4959, BIMP passed the 62-46-0 on concurrence. This bill creates the Fiscal Year 2025 Budget Implementation Act. Adds, deletes, and makes changes to various statutory provisions as needed to implement the State budget for Fiscal Year 2025. Effective immediately, except some provisions take effect July 1, 2024, and some provisions take effect January 1, 2025.

HB 4951, Tax Omnibus passed the House 60-47-0 on concurrence. This was after drama ensued at around 4 am when the bill failed to pass verification twice as not enough of those voting in the affirmative were in the chamber. After much parliamentary maneuvering, the bill passed on a third vote.

The budget was supposed to be finalized by Friday, but negotiations extended through the weekend. With the economy growing at a slower pace, such last-minute haggling is likely to become a recurring scenario. The era of exponential growth, which left extra funds for lawmakers to allocate, has ended.

The Illinois House was set to return on Tuesday to finalize the state budget, which plans to allocate over $53 billion. The initial adjournment was delayed due to unresolved budget details, extending the session into contingency days. The Senate stayed through the weekend and approved the budget late Sunday. House Speaker Chris Welch indicated that representatives would reconvene after Memorial Day to complete the process.

Here are the key aspects of the final budget, each will be explained in further detail below:

  • Education
  • Infrastructure
  • Public Safety
  • Migrant Spending
  • Grocery Tax
  • Salary Increase for Lawmakers
  • Social Services / Homeless Prevention
  • Cap on Business Operating Net Loss
  • Graduated Tax on Sports Gaming
  • Increased Tax on Video Gaming
  • Retailer Discount Cap on Sales Tax Collection
  • Child Tax Credit for Age 12 & Under

Rep. Jehan Gordon-Booth, a Peoria Democrat and the lead budget negotiator in the House, highlighted the state’s nine credit upgrades over the past four years and noted that the backlog of unpaid bills, which had reached nearly $17 billion seven years ago under Republican Gov. Bruce Rauner, has now been reduced to a bill payment cycle of just “mere days.” Democrats also emphasized that despite a tight fiscal year, the budget would contribute $198 million to the state’s “rainy day” fund and fulfill the legally required payment into the state’s pension systems.

Governor Pritzker announced he will sign the plan for the fiscal year starting July 1, which allocates about $400 million more than his February budget address requested. Following its passage, the governor stated that the budget’s investments will boost Illinois’ economy and uphold a “track record of fiscal responsibility” while prioritizing working families. “For the sixth consecutive year, the General Assembly and I have a balanced budget that uplifts the working families of Illinois, saves more money in our Rainy-Day fund, creates jobs, lowers taxes on small businesses, grows our economy, and continues our track record of fiscal responsibility,” Pritzker said. “From expectant mothers and their newborn babies to people with disabilities to veterans to seniors who need our care, we’re keeping our promises to all Illinoisans and the most vulnerable among us.”

Overall, state spending grew by about 5 percent from last year’s enacted plan, or about 1.6 percent above expected end-of-year expenditures following a supplemental spending plan’s inclusion in the budget package this week.

Despite $1.1 billion in tax hikes and record spending, the 2025 budget continues Illinois’ long-standing tradition of failing to make an actuarially sufficient pension payment. Appropriations to the five statewide pension funds will fall $4.5 billion below what the plans’ own actuaries have determined is required to actually begin paying off the state’s pension debt. Lawmakers ultimately chose not to include Pritzker’s plan to extend Illinois’ pension funding ramp through 2048 in order to increase the state’s funding target from 90% to 100%. Illinois’ pension systems should be targeting 100% funding to be fully funded. In addition to continuing to target a lower funding ratio, the budget ignores the basic fact Illinois’ pension contributions, while statutorily sufficient, remain insufficient on an actuarial basis – meaning they won’t meet real-world needs.

The state’s funding schedule will not contribute above current actuarially determined contribution levels until 2039, but that figure will climb each year the state fails to make an actuarially sufficient payment. In fiscal year 2023, actuarially determined contributions were less than $14.9 billion, more than $1.1 billion below today’s actuarially determined contribution.

Democrats emphasized a $50 million allocation for a child tax credit targeting children under 12 in households qualifying for the state’s Earned Income Tax Credit. Additionally, the plan earmarks $200 million for after-school and summer youth programs, alongside $45 million for grants under the Reimagine Public Safety Act aimed at reducing violence.

However, Republicans criticized Democrats for their alleged misplaced priorities, particularly highlighting the allocation of hundreds of millions of dollars for programs catering to noncitizens. The budget includes $182 million to support recently arrived migrants with shelter, healthcare, and other services, many of whom have been relocated to the state from Texas. Furthermore, it allocates $440 million from the General Revenue Fund (GRF) for two programs offering state-funded Medicaid-like benefits to noncitizens, supplemented by an additional $189 million from other state funds.

In order to address a shortfall of over $1.1 billion and balance the budget, lawmakers implemented various revenue-raising measures. These included extending an expiring cap on corporate net operating losses, preventing the loss of $526 million in tax revenue in FY25, and introducing a $25 million tax on “re-renters” of hotel rooms. Because the state operates on a fiscal year that runs from July-June and Illinois corporate income taxes are paid quarterly, this tax hike could effectively be doubled in the 2026 fiscal year, resulting in a tax hike of more than $1 billion if current projections hold.

Illinois introduced the current cap on net operating losses starting in the 2021 tax year to mitigate significant declines in corporate income tax revenue amid the pandemic-induced economic challenges. Initially set to expire at the end of the 2024 tax year, the budget extends the cap through tax year 2027 and raises the threshold from $100,000 to $500,000. This means that businesses in Illinois experiencing substantial losses will continue to contribute corporate income taxes.

Net operating loss provisions play a crucial role in ensuring fairness in business taxation, regardless of fluctuations in profitability. Capping these provisions may result in companies facing significantly higher effective tax rates compared to the state’s statutory corporate income tax rate. Consequently, both state and federal tax codes include net operating loss provisions. Notably, only two other states, Pennsylvania and New Hampshire, impose caps on the amount of losses a business can claim. This adds to the burden for Illinois, where the corporate income tax rate ranks as the second highest in the nation.

Additionally, sportsbooks will face a newly graduated tax structure on profits, projected to generate about $200 million for the state’s General Revenue Fund. The budget included a significant revision to Illinois’ sports gambling tax structure, transitioning from a fixed 15% of gross revenues to a progressive system with rates varying from 20% to 40% based on operators’ gross revenues.

Although this adjustment deviated from Governor Pritzker’s proposal of a flat 35% rate, it is anticipated to impose an additional $200 million burden on sportsbooks in Illinois. Consequently, Illinois’ sports betting tax rate would become the fourth-highest nationwide.

While revenues from sports gambling currently support infrastructure projects, the new tax revenue would directly contribute to the state’s general revenue fund. Industry leaders have cautioned that the tax hike may drive customers towards illegal bookies.

In addition to the large increase in the sports wagering tax, Illinois’ video gaming tax will also be increased by 1% from 34% to 35%. The change is expected to bring in an additional $35 million for the state.

Additional business tax increases were sanctioned by imposing limits on the amount businesses can retain for collecting sales and use taxes for state and local governments. This move is set to effectively raise taxes by $186 million on retailers.

Previously, retailers were entitled to retain 1.75% of the sales taxes they collected and remitted to the government, provided they filed and paid their applicable sales taxes punctually. However, under the new regulation, the value of this tax credit will be capped at $1,000 per month, with no prior limit on the retailer’s discount.

The anticipated outcome of this tax hike is an additional $186 million in revenue for state and local governments, with $101 million allocated for the state and $85 million for local governments. Illinois already imposes the highest sales taxes in the Midwest, with a combined state and average local sales tax rate of 8.86%, ranking seventh highest nationwide. The imposition of a cap on the retailer’s discount will further burden businesses within the state. Notably, both the Illinois Chamber of Commerce and the Illinois Retail Merchants Association initially opposed this proposal when it was suggested by Governor Pritzker in February.

While retailers have historically resisted proposals to cap sales tax discounts from governors like Pritzker, the Illinois Retail Merchants Association acquiesced this time due to a negotiated deal eliminating credit card fees on transaction portions involving sales tax and tips. Rob Karr, president of the retailer’s group, viewed this change as fostering a fairer system, noting that banks levy numerous other fees.

However, financial institutions reacted strongly to the sudden move, learning of it only days before legislative approval. Ben Jackson, executive vice president of government relations at the Illinois Bankers Association, criticized the proposal, deeming it disruptive to the global payment system for minimal merchant benefit.

The credit card proposal faced staunch opposition from banking associations, the Illinois Credit Union League, and major airlines like American, Southwest, and United, which operate airline credit cards. They argued that it would introduce cumbersome and costly implementation processes, ultimately worsening the consumer experience.

In a letter to Pritzker, Senate President Don Harmon, and House Speaker Emanuel “Chris” Welch, the airlines asserted that the legislation would make Illinois an outlier in payment treatment, complicating transactions by separating merchandise, sales tax, and gratuity payments.

Jackson characterized the credit card proposal as a hastily introduced measure, underscored by its last-minute inclusion in legislative bills. Despite lobbying efforts for further study, lawmakers rejected delay proposals. Opponents foresee constitutional challenges, particularly regarding interstate commerce, potentially leading to legal action if the measure becomes law.

Despite these measures, some legislators expressed dissatisfaction, highlighting concerns over overlooked spending controls and voting against the bill. The budget also reallocates approximately $200 million in revenue by redirecting funds from the Road Fund and the Leaking Underground Storage Fund to public transit, sparking opposition from organized labor.

Additionally, there were accusations of partisan favoritism in the allocation of infrastructure projects, with Republicans alleging Democrats were disproportionately benefiting from the budget. Nonetheless, the final pages of the budget bill list numerous projects, ranging from $50,000 to $1 million, allocated to various businesses, local governments, and other entities.

Despite reallocating funds from the Road Fund, the budget allocates $3.5 billion for infrastructure, exceeding Governor Pritzker’s initial proposal by approximately $500 million. This includes a $500 million allocation to establish a regional quantum information science and technology campus, funded through the Build Illinois bond fund. Another legislative measure permits the Department of Commerce and Economic Opportunity to designate “quantum campuses,” offering incentives to attract developers of advanced computing technology.

Additionally, the legislation extends various tax credit programs, such as the Reimagining Energy and Vehicles Act and the Economic Development for a Growing Economy (EDGE) program.

Meanwhile, municipalities will receive an additional $400 million for local road projects, helping to offset their concerns over the elimination of the statewide 1 percent grocery tax. Although the grocery tax repeal is delayed until 2026, local governments are granted authority to impose their own grocery tax of up to 1 percent without a referendum. Similarly, home rule jurisdictions can increase their sales tax by up to 1 percent without a referendum.

“Re-renter” Tax: Illinois has implemented a change to its hotel tax, now requiring third-party companies reselling large blocks of hotel room reservations to pay the standard hotel operator’s room occupation tax. Previously, these companies were exempt from the tax as they were not considered hotel operators. This adjustment takes effect on January 1, 2025, and is expected to boost state revenues by $25 million and local revenues by $35 million for the fiscal year through June 2025. The tax increase for fiscal year 2026 is projected to be twice as substantial based on current estimates.

Lawmakers are banking on a significant revenue increase from health insurance companies through the Department of Health and Family Services’ Managed Care Organization assessment. While it’s anticipated to generate an additional $200 million in fiscal year 2025, further details have not yet been provided.

Originally proposed by Governor Pritzker to cover children under three, the state child tax credit has been expanded to encompass children under 12. Qualifying families will receive a tax credit equal to 20% of their Illinois Earned Income Tax Credit in tax year 2024 and 40% in tax year 2025, amounting to an estimated $50 million cost in fiscal year 2025. This credit aims to support low-income families and incentivize employment, aligning with good tax policy principles by tying benefits to earned income. However, the credit phases out as income exceeds a certain threshold, potentially impacting labor market decisions and increasing effective income tax rates for individuals no longer eligible for the credit.

The approved budget includes a provision to repeal the statewide 1% tax on groceries, effective 2026. While this change won’t impact 2025 revenues, it allows local governments, including non-home rule units, to impose their own grocery taxes without referendum, alongside the ability to increase sales taxes by up to 1 percent without public vote. While the statewide grocery tax diminishes, potential new local taxes could offset relief for some Illinois residents, raising concerns about taxation without representation.

Notably missing from the approved budget was the expansion of the corporate franchise tax exemption, originally proposed by Governor Pritzker. Illinois, with one of the nation’s highest corporate income tax rates and a corporate franchise tax, faces complexity and high costs for businesses, outweighing the tax’s relatively low revenue generation. Despite Pritzker’s prior plan to repeal the franchise tax in 2019, the proposal was abandoned due to the COVID-19 pandemic’s economic impact and declining state revenues.

Other spending items include:

  • State law sets lawmakers’ pay to increase annually with inflation, and lawmakers took no action to stop it from occurring in FY25. Lawmakers and many top state officials will see 5% raises, boosting annual pay for all 177 members of the Illinois General Assembly to $93,712. Many lawmakers also receive stipends for holding leadership positions or chairing committees. The raises also affect all constitutional offices — the governor, lieutenant governor, secretary of state, attorney general, comptroller and treasurer — and heads of executive agencies.
  • The annual $350 million increase in K-12 education funding, called for by a 2017 law that overhauled Illinois’ school funding formula.
  • A 2 percent – or $30 million – increase for community colleges and public universities.
  • A $10 million increase to Monetary Award Program grants for lower-income college students.
  • Full funding for Governor Pritzker’s “Smart Start” plan aimed at adding 5,000 preschool seats across the state and providing workforce grants.
  • $14 million to launch the newly created Department of Early Childhood, which Pritzker has promised would streamline services currently provided by three different state agencies.
  • $45 million for a teacher vacancy pilot program to help underserved districts with teacher retention.
  • A $1 hourly increase for direct service professionals who serve individuals with intellectual and developmental disabilities in community-based settings.
  • An increase totaling $70 million for Community Care Program workers serving older adults who can’t live independently.
  • $5 million for a tax credit program for news outlets beginning in 2025 and claimable the following year.
  • $10 million for the governor’s plan to erase $100 million in total medical debt for Illinoisans through a partnership with the nonprofit Undue Medical Debt. House Bill 5290 laid out that applicants must earn 400 percent of the federal poverty level or less.
  • $900 million for renovation at state prisons, including a possible tear down and rebuild of Stateville and Logan Correctional Centers.
  • $4 million to create a statewide maternal health plan and distribute grants to community-based reproductive health care providers.
  • $155 million for safety net hospitals.
  • A $90 million increase for Home Illinois, a program created last year to address homelessness, bringing total funding to $290 million.

Human services, totaling $10.98 billion, preK-12 education at $10.8 billion, pensions with $10.489 billion, and health care, accounting for $9.4 billion, constituted the primary expenditure categories in the state budget. Although the largest dollar increase in proposed 2025 spending is allocated to human services, the costs of group health insurance and government services are escalating at a much swifter pace compared to other items in the general funds budget.

Additional Measures Passing at the End of Session
In other business, a controversial bill regulating carbon capture and sequestration projects is heading to Pritzker’s desk after long debates in the House and Senate. The legislation, which passed the Senate 43-12 Sunday and the governor is expected to sign, would also place a two-year moratorium on all carbon pipeline projects as the state awaits federal guidelines.

An aspect of the bill that has faced opposition from House and Senate Republicans, in addition to some Democrats, involves the Mahomet Aquifer as a potential location to construct pipelines. The aquifer supplies drinking water to about 500,000 people across 14 counties in central Illinois.

Pritzker praised the measure in a statement, saying, “Illinois now lays claim to some of the most ambitious and equitable climate and clean energy laws in the United States.”

In another key legislative area, several Pritzker proposals on health care were sent to his desk. His package of insurance reforms, including restrictions on so-called step therapy and certain short-term, high-cost health insurance plans, passed with bipartisan support in both chambers.

Fulfilling a top priority of the Illinois AFL-CIO, both chambers also voted to prohibit employers from holding mandatory meetings with anti-union or otherwise political or religious messages for employees. The bill passed nearly on party lines, and, if Pritzker signs it, Illinois would join a handful of states with similar legislation.

A bill aimed at protecting Illinois tenants from landlord retaliation was back in the House for final approval after passing the Senate. House Bill 4768, which narrowly passed the House last month, was amended in the Senate before being approved last week.

Republicans are concerned that the bill could empower tenants to bully landlords into not raising rents or evicting problematic tenants. State Sen. Andrew Chesney argued that the legislation may discourage landlords from addressing tenant complaints for fear of litigation or rent increases, ultimately harming tenants.

The bill’s sponsor, state Sen. Karina Villa, emphasized the need to address instances where tenants face retaliation for reporting issues like malfunctioning toilets. She highlighted constituents who have been evicted or denied lease renewals after seeking repairs or reporting code violations.

Republicans also expressed concerns about the impact of the legislation on small landlords, suggesting that it could drive them out of the market and lead to an increase in corporate ownership of rental properties.

The House concurred on the Senate’s amendments meaning the bill can advance to the governor’s desk.

Illinois might soon see stricter child labor laws for various workplaces as legislators work to update and clarify laws they believe are outdated. Sen. Robert Peters, D-Chicago, introduced Senate Bill 3646 in March, and said he introduced it due to surrounding states loosening restrictions on their child labor laws. Here’s what you need to know.

Child Labor Law of 2024
Senate Bill 3646 introduced by Peters is designed to strengthen and remodel the general labor laws of the state. The bill includes rules about the number of hours a minor can work during school days and weekends. A minor can’t work more than eight hours on weekends during the school year, and depending on the job they can only work a certain number of hours on a school day. If an employer were to violate the rules they may receive various fines.

The bill also addresses children who work as influencers online, specifically in vlogs. If a child under 16 appears in vlogs online, then they are to be compensated based on the number of views a video receives and how many minutes they appear in the video.

The bill also states that anyone who creates vlogs that feature minors shall keep a record of age, number of vlogs that generate money and the number of minutes that a minor is compensated for. This bill has now passed through both houses.

Child Performers Hours
Senate Bill 3180 introduced by Sen. Cristina Castro, D-Elgin, is a bill that will create stricter hours for children who work in entertainment. Children who are under six months old can spend no more than two hours in the workplace, but they can only work for 20 minutes within the two-hour period.

If a minor is 6 years old but under 9, they can spend up to eight hours in the workplace, but they can only work for up to four hours. They also must have at least three hours of schooling with one hour of rest and recreation.

And a minor who is over 9 but under 16 can spend a maximum of nine hours in the workplace, but they can only work for five hours. They also must have at least three hours of schooling with one hour for rest and recreation.

The bill has passed through the Senate and the House and has been placed on the calendar for concurrence.

SB 3362Retail Sales – passed the House 74-35-0 and has now passed both chambers. This bill amends the Retailers’ Occupation Tax Act. Provides that a retailer that makes retail sales of tangible personal property to Illinois customers from a location or locations outside of Illinois is engaged in the occupation of selling at retail in Illinois for the purposes of the Retailers’ Occupation Tax Act under specified conditions. Provides that a retailer maintaining a place of business in this State that makes retail sales of tangible personal property to Illinois customers from a location or locations outside of Illinois is engaged in the business of selling at the Illinois location to which the tangible personal property is shipped or delivered or at which possession is taken by the purchaser.

HB 5005Incentives – passed the Senate 51-5-0. Among other things, his bill provides that the Department of Commerce and Economic Opportunity may designate areas as Quantum Computing Campuses. Provides that a restriction on designating businesses located in an Enterprise Zone as high impact businesses does not apply to grocery stores. Repeals provisions concerning certified payments for high impact businesses. Amends the River Edge Redevelopment Zone Act. Provides that a River Edge Redevelopment Zone may overlap with an Enterprise Zone. Provides that the Department of Commerce and Economic Opportunity may certify a specified number of additional pilot River Edge Zones. Amends the Economic Development for a Growing Economy Tax Credit Act. Provides that certain credits under the Act may be taken against the taxpayer’s withholding tax liability. Contains provisions concerning work hours at the project location. Amends the Reimagining Energy and Vehicles in Illinois Act. Adds provisions concerning credits awarded for research and development activities related to aircraft. Amends the Manufacturing Illinois Chips for Real Opportunity (MICRO) Act. Extends the provisions of the Act to quantum computer manufacturers. Specifies that, in order to receive credit for construction expenses under the Act, a company must provide the Department of Commerce and Economic Opportunity with evidence that a certified third-party executed an Agreed-Upon Procedure (AUP) verifying the construction expenses or accept the standard construction wage expense estimated by the Department of Commerce and Economic Opportunity. Amends the Property Tax Code. Provides that 2 or more taxing districts may agree to abate a portion of the real property taxes otherwise levied or extended by those taxing districts on a REV Illinois Project facility. Provides that abatements for REV project facilities may not exceed a period of 30 consecutive years. Amends the Illinois Income Tax Act to extend the sunset of the research and development credit. Amends the Illinois Income Tax Act and the Film Production Services Tax Credit Act of 2008. Provides that the Department of Commerce and Economic Opportunity shall develop and, through Regional Administrators, administer the Clean Jobs Workforce Network Program and the Clean Energy Contractor Incubator Program to create a network of 14 Program delivery Hub Sites (rather than 13 Program delivery Hub Sites), to include Kankakee. Amends the Private Business and Vocational Schools Act of 2012. Exempts from being considered a private business or vocational school under the Act organizations that receive funding from the Department of Commerce and Economic Opportunity for workforce development preparation programs as provided for in the Energy Transition Act and the Illinois Works Jobs Program Act in which participants are not charged tuition or labor organizations that sponsor a United States Department of Labor registered apprenticeship program.

HB 5290Medical Debt – passed the Senate 38-19-0. Among other things, this bill creates the Medical Debt Relief Act. Requires the Department of Healthcare and Family Services to establish by January 1, 2025, subject to appropriation, a Medical Debt Relief Pilot Program to discharge the medical debt of eligible Illinois residents. Provides that under the pilot program the Department shall provide grant funding to a nonprofit medical debt relief coordinator to use the grant funds and any other private funds available to negotiate and settle, to the extent possible, the medical debt of eligible residents owed to hospitals and other health care providers and entities. Provides that hospitals and other health care providers and entities may be located outside of the State of Illinois, so long as the negotiation and settlement of medical debt is on behalf of an eligible resident. Requires the Department to administer the pilot program consistent with the requirements of the Grant Accountability and Transparency Act to determine which nonprofit medical debt relief coordinator to use, unless the Department and the State’s Grant Accountability and Transparency Unit determine that only a single nonprofit medical debt relief coordinator has the capacity and willingness to carry out the duties specified in the Medical Debt Relief Act. Sets forth certain actions the selected nonprofit medical debt relief coordinator shall perform to effectuate the purposes of the pilot program. Requires the Department to provide annual reports to the Governor and the General Assembly on the amount of medical debt purchased and discharged under the pilot program, the number of eligible residents who received medical debt relief under the pilot program, the demographic characteristics of the eligible residents, and other matters. Requires the Department to adopt rules. Provides that the Act is repealed on July 1, 2029.

HB 5496South Suburban Airport – passed the Senate 49-2-0 and has now passed both chambers. This bill provides that in addition to the prequalification process under the Act, the Department of Transportation shall accept any unsolicited bids for the South Suburban Airport received pursuant to the Public-Private Partnerships for Transportation Act. Provides that nothing within the provisions shall be construed to restrict the obligations of the Department to respond to any unsolicited bids under the Public-Private Partnerships for Transportation Act. Amends the Public-Private Partnerships for Transportation Act. Provides that “transportation facility” includes the South Suburban Airport.

SB 692Industrial Zoning Task Force – passed the Senate on concurrence 57-0-0. This bill creates the Task Force on Interjurisdictional Industrial Zoning Impacts to study State and local zoning laws and policies related to large industrial developments.

SB 1289 Carbon Capture & Sequestration passed the Senate 43-12-2. Among other things, this bill creates the Safety and Aid for the Environment in Carbon Capture and Sequestration Act (which may be referred to as the SAFE CCS Act). Sets forth provisions regarding: ownership and conveyance of pore space; integration and unitization of ownership interests; surface access for pore space owners; compensation for damages to the surface; and additional landowner rights. Amends the Illinois Emergency Management Act.  Amends the Carbon Dioxide Transportation and Sequestration Act. Provides that the Illinois Commerce Commission may grant an application for a certificate of authority authorizing the construction and operation of a carbon dioxide pipeline if, additionally, the applicant has applied for any and all other federal permits necessary to construct and operate a carbon dioxide pipeline, the applicant has held at least 2 prefiling public meetings to receive public comment concerning the proposed carbon dioxide pipeline in each county where the pipeline is to be located, the applicant has directly contacted the owner of each parcel of land located within 2 miles of the proposed pipeline route, advising them of the proposed pipeline route and of the date and time of each public meeting to be held in the county in which each landowner’s property is located, and the applicant has prepared and submitted a detailed emergency operations plan. Prohibits the Commission from issuing any certificate of authority until the Pipeline and Hazardous Materials Safety Administration has adopted final revisions to its pipeline safety rules and the Commission has verified that the submitted application complies with those finalized rules.

SB 3268Medicaid Omnibus passed the House 98-6-0.

SB 3649Employer Speech-Opposed passed the Senate 39-18-0 on concurrence. This bill creates the Worker Freedom of Speech Act. Provides that an employer or the employer’s agent, representative, or designee may not discharge, discipline, or otherwise penalize, threaten to discharge, discipline, or otherwise penalize, or take any adverse employment action against an employee: (1) because the employee declines to attend or participate in an employer-sponsored meeting or declines to receive or listen to communications from the employer or the agent, representative, or designee of the employer if the meeting or communication is to communicate the opinion of the employer about religious or political matters; (2) as a means of inducing an employee to attend or participate in meetings or receive or listen to communications; or (3) because the employee, or a person acting on behalf of the employee, makes a good faith report, orally or in writing, of a violation or a suspected violation of the Act. provides that an employer shall be assessed a civil penalty of $1,000 for each violation of the Act. Provides that, upon a reasonable belief that an employer covered by the Act is in violation of any part of the Act, an employee or interested party may assert that a violation of this Act has occurred and bring an action for penalties in the county where the violation is alleged to have occurred or where the principal office of the employer is located, pursuant to a specified sequence of events. Provides that nothing in the Act: (1) prohibits a political organization, a political party organization, a caucus organization, a candidate’s political organization, or a specified not-for-profit organization from requiring its staff or employees to attend an employer-sponsored meeting or participate in any communication with the employer or the employer’s agent, representative or designee for the purpose of communicating the employer’s political tenets or purposes; (2) prohibits the General Assembly or a State or local legislative or regulatory body from requiring their employees to attend an employer-sponsored meeting or participate in any communication with the employer or the employer’s agent, representative, or designee for the purpose of communicating the employer’s proposals to change legislation, proposals to change regulations, or proposals to change public policy; or (3) prohibits a religious organization from requiring its employees to attend an employer-sponsored meeting or participate in any communication with the employer or the employer’s agent, representative or designee for the purpose of communicating the employer’s religious beliefs, practices, or tenets. Provides that nothing in the Act prohibits an employer or its agent, representative, or designee from requiring its employees to attend any training intended to foster a civil and collaborative workplace or reduce or prevent workplace harassment or discrimination.

Agreed Workers’ Compensation Bill Passes House and Senate
This week, the Illinois House voted 79-29-0 and the Illinois Senate voted 44-14-0 in favor of SB 1996, the agreed workers’ compensation bill. This legislation provides a very modest increase to fund the operations of the workers compensation commission. This legislation was a part of the agreed bill process which requires representatives of business and labor to come together and agree on legislation related to workers comp. On the house floor, it was made clear that the agreed bill process will be utilized next year on a broader range of workers comp reforms for Illinois.

We’ll follow up next week with anything of note missing as part of this update.

Election Rule Court Order
A court order obtained by the Liberty Justice Center has temporarily halted the enforcement of an Illinois law hastily implemented by Governor J.B. Pritzker, which prohibited candidates who did not participate in the primary from being slated for the November election. Super-majority Democrats in the Illinois legislature passed the mid-election year law earlier this month, ending the slating of candidates. However, following a lawsuit, a Sangamon County judge ruled on Wednesday to suspend Illinois’ ability to enforce the election law against potential candidates.

Before signing the bill, Pritzker referred to it as an “ethics bill,” emphasizing its aim to prevent backroom deals in candidate selection. Leslie Collazo, the lead plaintiff, noted that voters were motivated to sign her petitions due to concerns about the government’s actions in the middle of the election process. Collazo hopes that the Illinois State Board of Elections will adhere to court orders if opponents of hopeful candidates attempt to object based on the new law signed by Pritzker.

Candidates for the Illinois General Assembly filed a lawsuit, alleging violations of constitutional voting rights. Collazo, aiming to challenge incumbent state Rep. La Shawn Ford, described the process as exhausting but emphasized her commitment to fighting for fairness in the electoral process. There are 78 active statehouse races impacted by the new law.

Jeffrey Schwab, senior counsel at the Liberty Justice Center, commended the court’s decision to uphold the rule of law and support voting rights in Illinois. The next hearing in the case is scheduled for June 3, coinciding with the deadline for candidates seeking slating to file ballot access petitions with the Illinois State Board of Elections.

Stay well,

Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct