This Week In Springfield, the Illinois Senate reached its first committee deadline. However, they subsequently extended the deadlines on many bills. The House committees met in earnest as their first committee deadline looms next Friday.

PHARMACY REIMBURSEMENT BACKLOG

An IRMA-supported effort to allow the State to issue bonds to secure an enhanced Federal match on Medicaid monies to reimburse providers passed to the Governor’s desk this week but it took two tries. On Wednesday, S.B. 1425 (Sen. Donne Trotter, D- Chicago/Rep. Linda Chapa LaVia, D- Aurora) fell one vote short in the Senate of the two-thirds needed for passage of a bonding bill.

Thursday, with the necessary votes in attendance, S.B. 1425 was approved on the second effort. S.B. 1425 provides approximately $250 million in State funds to secure Federal matching funds at the enhanced rate of 61.88 percent. That matching rate is in effect until the end of this year. Illinois owes its Medicaid providers, especially pharmacies, billions of dollars and S.B. 1425 will go a long way toward temporarily alleviating the payment backlog.

The bill was passed on a partisan roll-call with only Democratic support. As the bill had originally been amended and approved in the House, the Senate only needed to concur with the House amendments. S.B. 1425 now goes to the Governor for his consideration.
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ENERGY COSTS

Energy costs are often the second largest expense line-item for retailers after payroll. That is why there is such intense interest in legislation that would increase the cost of electricity for Illinois businesses. Under existing law, Illinois utilities must acquire a certain percentage of their power from ‘green’ sources (e.g. solar, wind, geothermal, etc.). Until June 1, 2011, this green power must be obtain from in-state sources if they are available. S.B. 2550 (Sen. Don Harmon, D- Oak Park) seeks to extend that requirement through June 1, 2016. After that date, the power must be acquired either from in-state sources or sources located in adjoining states. If S.B. 2550 were to become law, it is conservatively estimated that it would cost Illinois businesses between $50 to $100 million over five years with those monies used to subsidize other Illinois businesses. To make matters worse, the cost increases are borne more heavily by commercial and industrial customers because residential power users increases are artificially capped. S.B. 3686 (Sen. Don Harmon, D- Oak Park) takes a slightly different tack but in its current form would still result in a greater percentage of the costs being borne by Illinois businesses. Under existing law, at least 75% of ‘green energy’ must come from wind. S.B. 3686 would require that of the remaining 25%, at least 20% must come from solar generators of more than 10 kilowatts while an additional 10% must come from solar generators of less than 10 kilowatts. In both cases, the solar generators must be on the energy customer’s side of the meter.

To Senator Harmon’s credit, he recognized the need for substantial discussion by all stakeholders and will be convening those discussions in the very near future.
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GUNS

The general issue of gun control has been the subject of intense debate nearly every year in the Assembly. Generally, IRMA is not involved but monitors the issue closely. This year is a bit different as the debate is taking a slightly different approach. H.B. 6249 (Rep. John Bradley, D- Marion) would allow for concealed carry permits to be issued in Illinois and would establish a regulatory system to control who would qualify for such permits including training and screening. While IRMA is not currently opposed to H.B. 6249, if a soon-to-be-filed amendment takes the form we have been told by the proponents it will take, IRMA will be forced to actively oppose the bill.

The amendment will allow businesses open to the public to prohibiting the carrying of concealed weapons into the business. However, the business will be civilly liable for any injury from a criminal act upon a person holding a concealed carry permit prohibited by that business from carrying his/her concealed firearm into the business.
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SUGAR

Senate Amendment #1 to S.B. 3231 (Sen. Martin Sandoval, D- Cicero) sought to require any beverage sold in Illinois containing any sugars that were not naturally occurring, to bear a label stating “Likely to Cause Obesity in Children”. Senator Sandoval tabled the amendment in committee but did ask to advance the bill to 2nd Reading for the purpose of further discussion on the issue with all stakeholders. The members of the Senate Consumer Protection Committee agreed to advance the bill only after the sponsor assured them that any amendment would come back to the committee and the bill would not be advanced unless there was agreement by all parties. Nevertheless, this opens another front in the labeling of products with Illinois-only labels.
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BPA

Speaking of Illinois-only labels, H.B. 6088 (Rep. Elaine Nekritz, D- Des Plaines) would require another. Under the provisions of H.B. 6088, as of June 1, 2011, no one may sell a reusable food or beverage container or any infant formula or baby food stored in a can, jar, or plastic container containing BPA (Bisphenol-A). Any food product, other than baby food, stored in a jar, can, or plastic container, must bear a label stating “This container made with Bisphenol-A (BPA)”. The legislation does contain language protecting retailers if a manufacturer distributes a product in violation of the law by requiring the manufacturer to recall the product and reimburse the retailer and any consumer. The bill also attempts to hold retailers harmless who are not knowingly in violation of this law. While IRMA appreciates the effort, the knowingly provision, is easily undermined. Furthermore, H.B. 6088 is not just about BPA.

H.B. 6088 authorizes the Illinois Environmental Protection Agency (IEPA) and the Illinois Department of Public Health (IDPH) to create and participate in ‘an interstate clearinghouse to promote safe chemicals in consumer products.’ This sets the stage for more State-by-State regulation which only makes compliance complicated and expensive.
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MAY 5, 2010

Wednesday, May 5, 2010 is the day to make your voice heard in Springfield. Concerned about excessive regulation? Payment backlogs? Insurance mandates and costs? This is your chance to join your peers in Springfield and speak truth to power. To make the will of the people the law of the land. Make plans now to attend. You can obtain more information at www.irma.org .
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IRMA WEB PAGE

Visit the Illinois Retail Merchants Association’s newly redesigned website at www.irma.org. Along with its bright, colorful new look, the updated design has fewer redundancies, making it easier to navigate. Visitors to www.irma.org will find familiar features such as information on energy savings programs, registration for Retail Day and the latest industry news. With live links to retail- and government-related websites and updates on important legislation, www.irma.org continues to offer IRMA members an excellent platform to find out about all things related to retail in Illinois.
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NEXT WEEK

The highlight of next week will be Governor Pat Quinn’s (D- Chicago) annual Budget Address which will occur Wednesday, March 10th, at Noon. It is widely rumored that his proposal will include unspecified cuts, a cigarette tax increase, and elimination of ‘tax incentives’. You can obtain an overview of the Governor’s proposed budget by visiting www.budget.illinois.gov . Also, next week is the scheduled first committee deadline in the House.
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Rob Karr, Senior Vice President
Government & Member Relations