July 19, 2024 Update

103rd ILLINOIS GENERAL ASSEMBLY:

The Illinois General Assembly remains adjourned for the summer. 

The House Health Care Availability and Accessibility Committee will hold a subject matter hearing on July 23 at 10am in the Bilandic Building in Chicago to continue discussions on pharmacy benefit managers.   

The Senate Transportation will hold a hearing on July 24 at 10:00 am at Moraine Valley Community College (Building M) in Palos Heights to continue discussions about mass transit. This hearing will focus on how transit must be accessible and equitable.  

GOVERNOR’S HIGHLIGHTS:  

New Laws: Governor Pritzker signed the carbon capture bill (SB 1289) this week. The new law establishes regulations for carbon capture, including requiring new carbon sequestration facilities to obtain a state permit with requirements for monitoring during and after carbon sequestration, as well as rules around financial assurances, insurance, emergency management, and closure plans. The law places a moratorium on new pipelines until the Pipelines and Hazardous Materials Safety Administration finalizes safety regulations or until July 1, 2026.

The act also requires CO2 projects to achieve a net reduction in greenhouse gases and conduct water, air, and soil monitoring to ensure no leaks occur, and take immediate corrective action if they do. The Illinois Commerce Commission will require all new projects to undergo an assessment process and require plans to monitor carbon capture and transport sites and respond immediately if any issues arise. The law also creates safety standards for any new pipelines and mandates training and support for first responders in pipeline areas. Read more here.  

Illinois EPA Director Resigns: John Kim resigned as the Illinois Environmental Protection Agency Director. Kim, who has served at the agency since 1994 and has been Director since 2019, will be replaced on an interim basis by Deputy Director James Jennings. Jennings took over as interim director on Tuesday, July 16. Jennings has worked in various capacities within the IEPA since 2013.

Quantum Research: Governor Pritzker announced a partnership with the U.S. Department of Defense’s research and development agency to further expand quantum research in Illinois. The Defense Advanced Research Projects Agency, or DARPA, will take residency on the state’s quantum campus to establish a program where quantum computing prototypes will be tested. The location of the campus will be announced soon.

The Memorandum of Agreement signed with DARPA will establish Illinois’ quantum campus as the site for a new Quantum Proving Ground program, where quantum computing prototypes will be tested and evaluated as part of DARPA’s new Quantum Benchmarking Initiative. The  FY25 budget allocated $500 million in state investment to help fund quantum research and build a campus. Illinois will commit $140 million in matching funds for the Quantum Proving Ground. DARPA’s level of investment in the Quantum Benchmarking Initiative will be determined by the quality of proposals, evaluation results, and availability of federal funding.

The facility will include shared cryo facilities, equipment labs, and spaces for both private companies and Illinois’ research universities to collaborate and research. Companies with competing technologies across the industry will be able to participate in the DARPA-Illinois Quantum Proving Ground, and those competing for funding will be selected based on performance and results. Read more here.

First Human Case of West Nile Virus Reported: The Illinois Department of Public Health is reporting this year’s first human case of West Nile virus.  The individual is in their 60’s and lives in suburban Cook County. The onset of WNV symptoms was in mid-June. Read more here.

Gubernatorial Appointments: The Governor made the following appointments:

·        Garvin Ambrose will serve as a Member of the Guardianship and Advocacy Commission.

·        Benjamin Reyes will continue to serve as a Member of the Illinois Racing Board.

·        Sarah Alter will continue to serve as a Member of the Lottery Control Board.

·        Michael Goetz will continue to serve as a Member of the Teachers’ Retirement System Board of Trustees. 

Prevailing Wage Rates Published: As required by law, the Illinois Department of Labor published updated prevailing wage rates (sorted by construction trade) for each county in Illinois.  Any who disagrees with the published rates has until August 14th to object in writing to the Department. Any objection filed will then be granted a hearing before an Administrative Law Judge. For more information on prevailing wage rates, visit IDOL’s website.

OTHER NEWS:

Giannoulias Appointed Co-Chair of National Association of Secretaries of State’s Securities Committee: Illinois Secretary of State Alexi Giannoulias has been appointed to serve as co-chair of the National Association of Secretaries of State’s (NASS) Securities Committee. The Illinois Secretary of State’s Securities Department regulates the securities and investment advisory industries in Illinois and pursues an enforcement program designed to protect Illinois investors from those engaged in unlawful investment-related activities. Giannoulias will serve alongside New Hampshire Secretary of State David Scanlan. The pair will serve until the conclusion of the NASS 2025 Summer Conference.

Pension Pre-Payment: This week Comptroller Susana Mendoza made the first $422 million pension pre-payment which was authorized under the budget implementation law passed as part of the FY 25 budget.  Previously, the law prohibited the IOC from making more than the preset monthly payment to the pension systems. The change allows Comptroller Mendoza to pay more into state pensions earlier in the year when fund balances are strong.  It’s anticipated that pre-paying $422 million of the state’s monthly pension contribution will allow funds to remain invested for a few months longer, generating an additional $7 million.   

Attorney General Joins Coalition in Support of Drug Pricing Transparency: Attorney General Kwame Raoul joined 21 attorneys general in filing an amicus brief supporting an Oregon law that requires pharmaceutical manufacturers to report certain information about specific new prescription drugs and historical information about pricing for existing drugs. 

Raoul and the coalition filed the brief before the Ninth Circuit Court of Appeals supporting Oregon’s 2018 law, which aims to increase transparency in drug pricing. Raoul and the coalition’s brief emphasizes the importance of laws that collect data to provide a greater understanding of drug spending and help guide policy solutions to address high drug costs. 

The Pharmaceutical Research and Manufacturers Association (PhRMA) filed a lawsuit in federal district court in Oregon, challenging the constitutionality of the Oregon law. The district court ruled, in part, in favor of PhRMA, and Oregon appealed to the Ninth Circuit. 

Raoul and the attorneys general argue in the amicus brief that state laws like Oregon’s serve important state interests, as recent dramatic increases in drug pricing impose harm on states and their residents.