Government Affairs Roundup for 8.21.24

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

Chamber members:

Thanks to all that participated as a sponsor, volunteer, attendee, vendor, or in any other capacity for our annual New Orleans North festival. Once again, a good time had by all!

Special congratulations to Senator Meg Loughran Cappel for receiving the Bridge Builder Award from the Illinois Chamber of Commerce. More on this achievement is below in the full article.

Finally, our government affairs committee is working on developing a candidate forum ahead of the November election. More details to follow.


*Government Affairs Roundup brought to you by CITGO*

Illinois Chamber Presents the Bridge Builder Award to Senator Meg Loughran Cappel  
The Illinois Chamber of Commerce congratulates Senator Meg Loughran Cappel for receiving our Bridge Builder Award. The Bridge Builder is the Illinois Chamber’s newest award which recognizes bipartisanship and collaboration in the General Assembly.

Senator Cappel has represented the 49th Senate District since December 2020. Senator Cappel previously worked as a special education teacher becoming a union representative for her school’s teachers’ union AFT-IFT Local 604. Senator Cappel serves as chair of the Senate Appropriations Education Committee and is a member of the Senate Agriculture, Education, Labor and State Government Committees. Senator Cappel resides in Shorewood where she serves and volunteers for various organizations and is a small business owner.

“Senator Cappel represents what we need more of in the legislature, business-minded leaders that achieve results that benefit Illinois communities,” said Lou Sandoval, President and CEO of the Illinois Chamber. “It is an honor to present her with this award and we look forward to continuing our work with the Senator in the upcoming session.”

“It’s an honor to receive the Bridge Builder Award from the Illinois Chamber of Commerce,” said Senator Meg Loughran Cappel (D-Shorewood). “Supporting Illinois’ businesses has always been one of my top priorities. As a small business owner, I understand the challenges businesses face. It’s important to work collaboratively with my colleagues in the General Assembly to continue uplifting businesses across Illinois.”

About the Bridge Builder Award
With the Bridge Builder award, the Illinois Chamber recognizes two legislators from each chamber, one from each caucus, who display a willingness and effectiveness in reaching across the aisle to work together to make Illinois a more attractive place to conduct business.

Federal Judge Blocks FTC’s Noncompete Ban, Citing Overreach
A federal judge has blocked the U.S. Federal Trade Commission’s (FTC) attempt to enforce a near-total ban on noncompete agreements, a ruling that hampers the agency’s effort to create more competitive labor markets. The ban, initially set to take effect next month, has been halted as a result of the ruling.

On Tuesday, U.S. District Judge Ada Brown in Dallas sided with the U.S. Chamber of Commerce and a Texas-based tax firm that had sued to stop the ban. Judge Brown ruled that the FTC overstepped its authority, describing the proposed ban as “unreasonably overbroad without a reasonable explanation.” This decision marks a significant setback for the FTC and highlights the ongoing judicial debate over the regulator’s powers.

Previously, a federal judge in Pennsylvania had ruled in favor of the FTC, indicating a split in judicial opinion. The FTC’s rule is now likely to face appellate review, with the ban’s implementation, originally scheduled for September 4, already delayed by Judge Brown.

FTC spokesperson Victoria Graham expressed disappointment in the ruling, stating that the agency is “seriously considering a potential appeal.” She emphasized the FTC’s commitment to fighting noncompete agreements, which she argues restrict economic liberty, stifle growth, and depress wages.

On the other hand, the U.S. Chamber of Commerce celebrated the ruling as a victory against what it called “government micromanagement of business decisions.” The Chamber argued that the FTC’s rule was an unlawful overreach that would have disadvantaged American workers, businesses, and the broader economy.

Noncompete agreements have become increasingly prevalent in the U.S., affecting an estimated 20% of workers, or roughly 30 million Americans. The FTC contends that these agreements harm workers by limiting their job mobility, while employers argue that noncompetes protect their investments in employee training and development. Currently, only a few states completely prohibit noncompetes.

If enforced, the FTC’s ban would have widespread implications, affecting various professions across the workforce, including doctors, tax professionals, and hairstylists. It would also shift the balance of power between employers and employees.

The FTC maintains that it has the authority to implement the rule as part of its mandate to prevent unfair methods of competition. Despite the setback, the agency intends to continue addressing noncompetes through individual enforcement actions.

The ruling may be appealed to the U.S. 5th Circuit Court of Appeals in New Orleans, a court that has become a focal point for conservative challenges to President Joe Biden’s regulatory policies. The case in Dallas is the most advanced of three lawsuits challenging the FTC’s noncompete rule, with other cases pending in Florida and Pennsylvania. While one judge has sided with the FTC and another against it, neither of those cases has yet reached a final decision on the agency’s rulemaking authority.

The case is titled Ryan v. Federal Trade Commission, 3:24-cv-00986, in the U.S. District Court, Northern District of Texas (Dallas).

Proposed South Suburban Airport Could Generate Over $1 Billion in Economic Activity, but Faces Local Opposition
A new airport proposed for Chicago’s far south suburbs could bring significant economic benefits, generating over $1 billion in economic impact and creating thousands of jobs, according to a recent report. However, the long-delayed project faces skepticism from state and local officials who question its future viability.

Economic Potential of the Airport
The Illinois Economic Policy Institute (ILEPI), a think tank affiliated with organized labor, released a study highlighting the economic potential of a cargo-focused airport in the south suburbs. The report estimates that the airport would create around 6,300 jobs during its construction and generate approximately $24 million annually in economic activity. Additionally, the airport is projected to contribute $2 million each year in state and local tax revenues.

Frank Manzo, an economist at ILEPI, emphasized the lasting positive effects the airport could have on the region’s economy. “Once it is built, the south suburban airport would have these long-lasting positive effects well after the construction phase,” Manzo stated.

Long-Standing Plans and Recent Developments
The idea of an airport in the south suburbs dates back to the 1960s and has been the subject of various proposals and studies over the decades. The current plan focuses on a cargo-only airport located between Beecher and Peotone, with the state already owning 89% of the land needed for construction.
In 2019, Illinois lawmakers allocated $162 million in capital funding to build a new interchange on Interstate 57, a key infrastructure project that will facilitate access to the proposed airport site. The construction of this interchange is expected to create an additional 1,500 jobs and boost economic activity by $314 million.

Mary Tyler, ILEPI’s Transportation Director and co-author of the report, noted the strategic importance of the south suburban region as a freight hub, particularly given the rise of e-commerce. She pointed to the significant growth in freight traffic at Chicago’s O’Hare Airport and in Rockford, where air freight traffic surged by 273% from 2010 to 2022, partly due to Amazon’s facility established there in 2016.

Legislative Efforts and Political Challenges
The Illinois General Assembly has taken steps to move the airport project forward. In 2023, state legislators passed a law requiring the Illinois Department of Transportation (IDOT) to develop a process for soliciting contractors and developers for the project. A bill passed earlier this year allows IDOT to accept unsolicited bids for the airport, pending the governor’s signature.

Despite these legislative efforts, the project’s progress has been slow, frustrating some state officials. Rep. Will Davis, D-Homewood, a key advocate for the airport, expressed his disappointment, stating that political leadership in Illinois has failed to unify stakeholders to advance the project. Davis envisions the airport as a major economic driver, comparable to the Perot Field Fort Worth Alliance Airport in Texas, which serves as a regional hub for FedEx and Amazon Air.

Local Opposition and Concerns
While there is enthusiasm for the project in some quarters, notably in Davis’s district, opposition remains strong in Will County, where the airport would be built. Senator Rachel Ventura, D-Joliet, and other local officials have voiced concerns about the negative impacts of increased freight traffic and warehouse development, including flooding and higher road maintenance costs.

Judy Ogalla, the chair of the Will County Board and a long-time critic of the airport, argues that the project is unnecessary and has stunted local growth. She notes that the state’s extensive land purchases for the airport have deprived local governments of tax revenue and hindered community development. Ogalla advocates for using the land for agricultural research and education instead of building an airport.

The Future of the South Suburban Airport
As the debate continues, the fate of the south suburban airport remains uncertain. While the project promises substantial economic benefits, it faces significant hurdles, including local opposition and the challenge of securing the remaining land and necessary approvals. The ongoing discussions will determine whether the proposed airport will finally move forward after decades of delays or if it will remain a contentious issue for years to come.

Big Banks and Credit Unions Sue Illinois Over New Credit Card Fee Law
Trade groups representing major banks and credit unions have filed a lawsuit against the state of Illinois in response to a groundbreaking new law that exempts state and local taxes, as well as tips, from the interchange fees charged by credit-card processors.

The law, introduced during the final moments of this year’s budget session in Springfield, aims to reduce the interchange fees typically paid by merchants on credit and debit card transactions. This measure was designed to mitigate the financial impact of a separate law that is expected to generate $100 million in state revenue by decreasing the funds merchants receive for collecting state and local sales taxes.

The legislation caught the banking industry off guard, leading to immediate opposition from banks, credit-card companies, and businesses like United Airlines, which rely heavily on profits from credit-card partnerships.

In response, several trade groups, including the American Bankers Association, the Illinois Bankers Association, America’s Credit Unions, and the Illinois Credit Union League, have taken the matter to federal court. These groups represent some of the largest credit-card processors and issuers, such as JP Morgan Chase, Citibank, Wells Fargo, Mastercard, and Visa.

The plaintiffs argue that Illinois’ new law violates federal banking regulations by encroaching on the authority of federal regulators, who set standards for banks, home lenders, and credit unions. They also contend that the law places financial institutions in Illinois at a disadvantage compared to those in other states, which could be a violation of federal law.

The banking groups warn that complying with the new law could cause significant disruptions to financial institutions’ operations and potentially “throw well-operating, payment-card systems into chaos.” They also question whether the necessary technology could be developed in time to allow credit-card processors to exempt taxes, fees, and tips from interchange fees by the law’s July implementation date. If possible, they estimate the costs could reach tens of millions of dollars for some credit-card issuers.

The plaintiffs are seeking a temporary injunction to prevent the law from taking effect, arguing that the 2% interchange fee charged on transactions is essential for offsetting the costs and risks associated with defaults and fraudulent transactions. They also emphasize that these fees help cover expenses related to customer service, system operations, data protection, fund transfers, card processing, production, and rewards programs.

The Illinois Retail Merchants Association (IRMA), a key supporter of the law, was not surprised by the lawsuit. Rob Karr, CEO of IRMA, criticized the credit-card companies, accusing them of trying to maintain their ability to impose what he described as “exorbitant processing fees on workers’ tips and taxes on consumer purchases.”

Karr praised Governor J.B. Pritzker and the Illinois legislature for supporting the Interchange Fee Prohibition Act. IRMA also argued that financial institutions are exaggerating the difficulties of implementing the law, noting that they already have the capability to exempt taxes and tips from interchange fees, as they do with WIC and SNAP purchases.

As the legal battle unfolds, the future of Illinois’ innovative law remains uncertain, with both sides preparing for a potentially lengthy court fight over the state’s attempt to limit interchange fees on specific transactions.

The Illinois Workforce Innovation Board invites you to join our Business Focus Groups & Roundtables!
Your insights are crucial to shaping and implementing effective workforce development solutions!

KEY DISCUSSION TOPICS:

  • Sourcing Qualified Candidates: Discuss difficulties in finding candidates with the right skills and qualifications.
  • Training and Upskilling: Explore effective training programs and upskilling initiatives that can bridge the skills gap.
  • Retention Strategies: Share strategies for retaining skilled workers in a competitive market.
  • Partnerships with Educational Institutions: Identify opportunities for collaboration with schools and training centers.
  •  Innovative Workforce Solutions: Discover and contribute to innovative approaches to workforce development.

UPCOMING EVENTS REGISTRATION LINKS

For Recurring Business:

As a reminder, for those impacted by the severe storms in July, the Will County Emergency Management Agency (EMA) has launched a damage assessment survey for those who have been impacted by the severe weather on July 15, 2024. The survey will support the ongoing efforts of damage assessment teams who are visually inspecting damage to personal property, businesses, and public infrastructure throughout the county. For more information and to participate in the survey, please visit https://www.willcountyema.org/storm

Stay well,

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