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April 28, 2018 Update | Roger C. Marquardt & Co., Inc.

April 28, 2018 Update

The Illinois General Assembly stands adjourned for the week. Friday, April 27th, was the deadline to pass substantive legislation out of its first chamber. The Senate granted deadline extensions on 285 bills pending in that chamber. House deadline extensions have not yet been issued but are likely on some of the House Bills that are still pending in that chamber.
The Senate will return to session at noon on Tuesday, May 1st. The Illinois House is not scheduled for session next week and will return to session on Tuesday, May 8th. It was a busy week this week in the Capital with 180 bills passing the House and 232 bills passing the Senate. This legislation will head to the opposite chamber for consideration. Roughly five weeks remain in the spring legislative session.
Work on crafting the FY 19 budget continues. Committees in both the House and the Senate continue to review agency level budget requests and needs for the current and upcoming fiscal years. Negotiators from the four legislative caucuses and the Governor’s Office of Management and Budget continue to meet and discuss a Fiscal Year 18 supplemental appropriation as well as the development of the Fiscal Year 19 budget. Illinois House Republican Leader Jim Durkin and Illinois Senate Republican Leader Bill Brady (R-Bloomington) filed resolutions today to adopt a revenue estimate in order to begin the budgeting process for fiscal year 2019. The identical resolutions, HJR124 and SJR69, adopt a revenue estimate of $37.672 billion for fiscal year 2019, based on the estimate provided by the Commission on Government Forecasting and Accountability . There is still no bipartisan agreement on available revenue for the FY 19 budget.
Senator Harmon did not call his motion to override Governor Rauner’s veto of the Gun Dealer Licensing bill (SB1657 ). Wednesday was the deadline in the Senate to consider the motion to override. SB 1657 is now dead. Negotiations on the issue are ongoing and legislation to create the Gun Dealer Licensing Act was filed late Wednesday as floor amendment 2 to SB 0337 (Harmon) . No action was taken on the amendment this week.
Comptroller Mendoza issued a report this week indicating that Illinois has spent more in the last two years on late payment charges than it had in the previous 18 years. According to the report, Illinois has accumulated $1.14 billion in late fees since mid-2015 which is $100 million more than in the previous 18 years combined. Illinois is required to pay 12 percent annual interest on bills not paid within 90 days. The backlog grew to $16 billion last summer after a two-year budget stalemate between first-term Republican Governor Bruce Rauner and the Democratically-controlled General Assembly.
Vendors who were negatively impacted by the late payments over the past two years have been able to participate in the state’s Vendor Payment Program (VPP). This week the Illinois Senate overwhelmingly approved legislation (SB3560 /Aquino ) designed to bring transparency to the VPP. This program was created to assist vendors who do business with the state of Illinois who are struggling financially due to delayed payments from the state. Under the program, the qualified lenders pay the vendor a portion of the state’s unpaid bill up front. In exchange the lenders receive the late payment interest penalties when they are ultimately paid by the state. The program is not codified in statue. Comptroller Mendoza, who is pushing the legislation, says “The lenders play an important role in keeping vendors afloat but little information is made public in terms of how much state debt is purchased through the VPP and there is currently no disclosure of who is financially backing the qualified purchasers.” The bill now heads to the House for consideration.
The Illinois Senate approved legislation, SB2858 /Steans, which authorizes the State Treasurer to invest in account receivables from state vendors awaiting payment for 90 days or longer and makes the State Treasurer a qualified purchaser under the Vendor Payment Program. The sponsor said the issue is still under negotiation and will be amended in the House. SB 2858 now heads to the House for consideration.
An amendment was filed to SB 575 (Raoul) which creates the Keep Internet Devices Safe Act. The amendment would prohibit any private entity from turning on or enabling a digital device’s microphone to listen for or collect information, such as, spoken words or other audible or inaudible sounds, unless the user agrees to a written policy made available to the public.  The amendment was assigned to the Senate Judiciary Committee where it remains at this time. The sponsor indicated that he will ask for a deadline extension.
Legislation was filed this week in the General Assembly in response to the Tennessee Waffle House shooting. Senator Julie Morrison filed an amendment to SB2387 which would require a FOID card holder sign an affidavit if weapons are transferred to them. Specifically, the amendment provides that a Firearm Disposition Record form shall be filed with both the Department of State Police and the circuit court located in the county in which the transferor resides. Under the amendment,the recipient of any firearm transferred by way of a Firearm Disposition Record form shall file with the circuit court in which they reside along with the Department of State Police a sworn affidavit attesting that the person: (1) is aware of, and will abide by the current law regarding the unlawful transfer of a firearm; (2) is aware of the penalties for violating the law as it pertains to unlawful transfer of a firearm; (3) intends to retain possession of the firearm until it is determined that the transferor is capable of possessing the firearm, or until a new person is chosen to hold the firearm; and (4) informs the Department and the circuit court of any address or name changes that occur while the person possesses the firearm. The amendment is currently in the Senate Assignments committee and has not yet received a hearing.
Representative Willis filed an amendment to her legislation, HB 2354 (HFA 0001), to create the Firearms Restraining Order Act. The legislation provides that a petitioner may request an emergency firearm restraining order by filing an affidavit or verified pleading alleging that the respondent poses an immediate and present danger of causing personal injury to himself, herself, or another by having in his or her custody or control, owning, purchasing, possessing, or receiving a firearm. The legislation further establishes factors that the court must consider before issuing a firearm restraining order and establishes factors for renewing and terminating firearms restraining orders. HB 2354 remains in the House Rules Committee and has not yet received a hearing.
The Senate approved a ban on bump stocks this week, SB2343/Raoul. The bill prohibits, beginning 90 days after the effective date of the bill, the knowing sale, manufacture, purchase, possession, or carrying of a bump stock or trigger crank. The bill heads to the House for consideration.
The Net Neutrality legislation was not called for a vote this week. HB 4819 (Williams) creates the Broadband Procurement and Disclosure Act which prohibits the state from awarding any contract to an Internet service provider that includes broadband service unless the contract provides specified terms concerning access to and impairment of Internet services.  HB 4819 is currently on 2nd Reading in the House.
The Illinois House considered legislation, HB 4747 (D. Harris), to create the Digital Fair Repair Act. The bill provides that original equipment manufacturers make available to any independent repair provider or owner of equipment manufactured by the original equipment manufacturer the same diagnostic and repair documentation in the same manner as that information is made available to the manufacturer’s authorized repair.  HB 4747 is currently on 2nd Reading in the House. The sponsor indicated that he would not move the bill this session.
Data breach legislation remains in a Senate committee at this time. SB 3007 (Raoul) Provides that any single data breech that effect more than 100 Illinois residences must be reported to the Attorney General within 14 days. SB 3007 is currently assigned to the Senate Judiciary Committee. The bill’s committee deadline was extended until April 27th. It is possible that this deadline could be further extended.
Legislation to raise the legal age to smoke from 18 to 21 years of age (2332 /Morrison) passed the Senate by a vote of 35-20. SB 2332 now heads to the House for consideration.
Legislation to create a state worker’s compensation fund (HB4595 /Fine) narrowly passed the House by a vote of 62-43. The bill now heads to the Senate for consideration.
The Senate approved a constitutional amendment, SJRCA21(Tom Cullerton) that would cap growth in government spending at the rate of growth in Illinois’ economy, as measured by the average annual growth of per capita GDP over the preceding 10 years. The constitutional amendment now heads to the House for consideration.
Speaker Madigan filed a resolution this week indicating support for a progressive income tax (HR1025). This resolution is scheduled for a hearing May2nd at 2:30 pm in the Bilandic Building in Chicago. As you will recall, Republicans in the House and Senate filed resolutions recently noting opposition to a graduated income tax. SR1590 /Connelly and HR975/Durkin are both pending in their respective chamber’s Rules committee. Democratic Gubernatorial candidate J.B. Pritzker announced he supports a progressive income tax.
2018 Key Session Dates:


May 11: Senate Committee Deadline, House Bills
May 18: House Committee Deadline, Senate Bills
May 25: Third Reading Deadline for bills in second chamber, both chambers
May 31:   Adjournment