Government Affairs Roundup for 8.28.24

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

Chamber members:

Exciting events are around the corner for the chamber in September as we host our 110 Year Anniversary celebration and our ATHENA Award recognition. Congratulations to Kelly Rohder-Tonelli as she has been selected as the 37th recipient. Check out our calendar of events to register for both of these events.

Below you will find information on a new five-year plan compiled by the state as well as information on more legislation signed by Governor Pritzker.


*Government Affairs Roundup brought to you by CITGO*

Illinois Business Development Plan Released
The Illinois Department of Commerce and Economic Opportunity (DCEO) has released a comprehensive five-year business development plan aimed at attracting and retaining businesses within the state. Central to this plan is a strategic focus on six key industries: life sciences, quantum computing, clean energy production, advanced manufacturing, next-generation agriculture, and transportation. These sectors are slated to receive prioritized support in the form of capital investments and job training initiatives.

While industries like agriculture have long been pillars of Illinois’ economy, emerging sectors such as clean energy and quantum computing have gained prominence as policy priorities under the Pritzker administration in recent years. For example, in the past two years, the state has allocated over $1 billion in tax incentives to companies involved in the supply chain for electric vehicles and clean energy production through the Reimagining Energy and Vehicles program.

In a landmark move last month, the state awarded a $92 million tax incentive to PsiQuantum Manufacturing, a quantum technology company, under the Illinois Chips for Real Opportunity Act. This was the first agreement of its kind, and it was part of a broader incentive package estimated by the governor’s office to be worth $200 million.

The five-year plan was developed by DCEO in close collaboration with Intersect Illinois, a nonprofit economic development agency established eight years ago with the support of former Governor Bruce Rauner. Intersect Illinois plays a significant role in “Team Illinois,” an informal coalition of business groups and government officials that actively works to attract companies to the state. This coalition, which has functioned somewhat informally until now, includes the governor’s office, DCEO, Intersect Illinois, trade associations, public utilities, and other key stakeholders.

The DCEO plan also emphasizes formalizing the processes used by these groups to court new business ventures, with the goal of presenting a “unified front” to potential investors. Additionally, the plan identifies several “areas for improvement” in the state’s business incentive policies. These proposed improvements include expanding incentive programs for advanced manufacturers, allowing regional economic development officials to establish geographic “enterprise zones” that offer tax breaks, and extending tax credits for research and development activities.

Digital Driver’s Licenses 
House Bill 4592 lays out regulations for the secretary of state to offer Illinois residents the option to have a digital version of their driver’s license or state ID.

The cards would be issued “in addition to, and not instead of” a physical ID, under the law, which takes effect in 2025. The law allows agencies and private entities to choose if they want to accept electronic IDs in place of physical ones, but “upon request by law enforcement, a credential holder must provide the credential holder’s physical credential.”

“Other states already have mobile driver’s licenses and ID cards, and this bill gives our residents the same ability to have a mobile card if they want one, while still providing them with the option of a traditional physical card,” bill sponsor Rep. Kam Buckner, D-Chicago, said in a news release.

Despite some concern during legislative debate over potential privacy issues with the technology, the measure passed unanimously in May.

Higher Education Changes
Several measures signed outline changes to higher education.
Senate Bill 462 bans public colleges and universities in the state from considering an applicant’s relation to any past, current or prospective donors during the application process. It also bars those schools from considering an applicant’s “legacy status,” or whether they are related to former students.

Senate Bill 3081 requires public universities to provide information about transfer fee waivers to students transferring in from a public community college. It also encourages those universities to automatically waive transfer fees for low-income students.

A third measure is aimed at lowering tuition costs for noncitizen Illinois residents. Senate Bill 461 requires public universities to charge in-state tuition for Illinois residents who attended an Illinois high school for at least 2 years or who graduated from an Illinois high school. It also would require universities to offer in-state tuition rates to some students who attended a high school, any college or university or a combination thereof for a combined three years.
The measure passed 73-40 in the House and 42-16 in the Senate.

Single-use Plastics in Hotels 
Under Senate Bill 2960, hotels will no longer be allowed to offer their patrons single-use plastic soap and shampoo bottles.

The industry has been voluntarily moving away from single-use plastics and the legislation had the backing of the state’s hotel association. Large hotels with 50 or more rooms would have until July 1, 2025, to comply with the law, while smaller hotels would be given an additional year.
The measure passed 73-40 in the House and 42-17 in the Senate.

Local Journalism Initiatives 
A measure backed by former journalist Sen. Steve Stadelman, D-Rockford, is designed to aid local journalism.

Senate Bill 3592 creates a state-funded scholarship to journalism students planning to work in Illinois for at least two years after they graduate. While that measure did not receive funding in the fiscal year 2025 budget, lawmakers did allocate $5 million for a tax credit program for news outlets beginning in 2025 and claimable the following year. It provides $15,000 per employee for certain newsrooms and another $10,000 for new hire.

SB 3592 also requires a news publisher to notify employees, the Department of Commerce and Economic Opportunity, its county government, and any Illinois nonprofit “in the business of buying local news organizations” within 120 days prior to a potential sale.

The measure passed 73-39 in the House, with one person voting present, and 43-16 in the Senate.

Sports Betting Surcharges
Following recent tax hikes on sports betting apps in Illinois, DraftKings, an operator that initially announced plans to impose surcharges to offset the increased taxes, has now reversed its decision.

Last month, DraftKings announced it would implement surcharges in states with high tax rates, such as Illinois, where taxes on sportsbooks have recently increased from 15% to as much as 40%. However, the company has now decided to halt these plans. In a statement, DraftKings said, “We always listen to our customers and after hearing their feedback, we have decided not to move forward with the gaming tax surcharge. We are always committed to delivering the best value in the industry to our loyal customers.”

DraftKings was the first operator to propose such a surcharge, leading to speculation that other sportsbooks in Illinois might follow suit. However, no other operators have announced similar measures.

Illinois is one of the largest sports betting markets in the country, and the state, along with three others, was highlighted in DraftKings’ initial surcharge announcement.

Tyler Andrews, managing editor of PlayIllinois.com, described the surcharge announcement as a public relations misstep for DraftKings. “It didn’t go well, but at least they were up front about it,” said Andrews. “After seeing the negative feedback on social media for a couple of weeks, they decided to listen to their customers and backtrack on the surcharge.”

Meanwhile, FanDuel, another major sportsbook operator, announced it would not implement a surcharge. Instead, FanDuel plans to mitigate the impact of high taxes through more localized marketing and promotional efforts.

Despite DraftKings’ reversal, Andrews believes the discussion around surcharges may not be over. “I wouldn’t say that bettors have won at this point, but when you impose these really high tax burdens on operators, it’s likely that the cost will eventually be passed on to customers,” Andrews noted.

Fast Break for Small Business Grant Program
Businesses that have been in operation for at least three months are eligible for a $10,000 small business grant and/or up to $500 in Legal Zoom products and services. Entrepreneurs who have yet to launch their business are eligible for up to $500 in Legal Zoom products and services. $10,000 small business grant and/or up to $500 in Legal Zoom products and services. Deadline: September 13, 2024, at 7pm.

Click for Grant Requirements and Details

For Recurring Business:

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

Stay well,

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