ILLINOIS RETAIL MERCHANTS ASSOCIATION

THE VOICE OF ILLINOIS RETAILING

Legislation Held – June 24, 2010

96-38

The following is a list of legislation, divided by subject areas, which did not pass the Assembly. These bills would have potentially impacted Illinois retailers had they passed the Assembly and been signed into law by the Governor. For your convenience, each bill number is linked to the text of the legislation.

BUSINESS LIABILITY
CREDIT & FINANCE
ENVIRONMENT & UTILITIES
FOOD & LIQUOR
LABOR
LOSS PREVENTION
PHARMACY
REGULATIONS & LICENSING
TAXES
TOBACCO

BUSINESS LIABILITY


S.B. 2584 (Sen. William Delgado, D- Chicago) Provides that accident and health insurance policies and managed care plans must provide coverage for A1C testing, also known as glycosylated hemoglobin testing, no less than 4 times each calendar year for insured’s who are over 40 years of age or who have a body mass index greater than 25. Effective immediately.

IRMA POSITION: Opposed

H.B. 1082 (Rep. Careen Gordon, D- Coal City) require an insurer, upon request of an insured intended parent, to provide maternity coverage for a gestational surrogate as a dependent for a term that extends throughout the duration of the expected pregnancy and for 8 weeks after the birth of the child.

IRMA POSITION: Opposed

H.B. 4726 (Rep. Carol Sente, D- Vernon Hills) Amends the Illinois Insurance Code. In provisions concerning coverage for diabetes self-management training and education, provides for coverage for test strips for glucose monitors as durable medical equipment rather than as pharmaceuticals and supplies. Effective immediately.

IRMA POSITION: Opposed

H.B. 5142 (Rep. Lou Lang, D- Chicago) Provides that coverage for autism spectrum disorders shall be subject to the parity requirements of the provision concerning mental health parity. Provides that an accident and health policy or managed care plan must provide a minimum (instead of a maximum) benefit of $36,000 per year. Deletes language concerning copayments, deductibles, and limits. Provides that every insurer that issues an accident and health policy that provides coverage for hospital or medical treatment, and for the treatment of mental, emotional, nervous, or substance use disorders shall ensure that the financial requirements and treatment limitations for such coverage are no more restrictive than the requirements and limitations applied to substantially all hospital and medical benefits covered by the policy. Contains a nonacceleration clause. Makes other changes.

IRMA POSITION: Opposed

H.B. 5407 (Rep. William Davis, D- East Hazel) Amends the Illinois Insurance Code to include in the requirement for diabetes self-management training and education coverage, coverage for the treatment of pain associated with complications of diabetes.

IRMA POSITION: Opposed

H.B. 5766 (Rep. Joseph Lyons, D- Chicago) Provides that group and individual accident and health policies and managed care plans issued to a resident of the State must provide coverage or reimbursement of up to $500 annually for a tobacco use cessation program for insured’s who are 18 years of age or older. Provides that notice of the availability of coverage shall be delivered to the insured. Provides that an insurer may not deny eligibility or continued eligibility to enroll or renew coverage solely for the purpose of avoiding the requirements of the Law. Provides that an insurer may not penalize or reduce or limit the reimbursement of an attending provider or provide incentives to induce the provider to provide care that is inconsistent with the Law. Contains a nonacceleration clause.

IRMA POSITION: Opposed

H.B. 6061 (Rep. Sara Feigenholtz, D- Chicago) Amends the Illinois Insurance Code. Provides that accident and health insurance policies shall provide coverage for maternity care. Provides that an insurer providing coverage shall ensure that the financial requirements and treatment limitations applicable to maternity benefits are no more restrictive than the predominant requirements and limitations applied to substantially all hospital and medical benefits covered by the policy. Provides that an insurer shall not refuse or limit coverage or charge a different rate for the same coverage solely on the basis that an individual is pregnant or had a previous cesarean delivery. Provides that no company may determine the premium or underwriting through a method that is in any way based upon the gender of any person. Amends the Health Maintenance Organization Act. Provides that every contract or evidence of coverage shall provide coverage for maternity care. Provides that no health maintenance organization shall refuse or limit coverage or charge a different rate for the same coverage solely on the basis that an individual is pregnant or had a previous cesarean delivery. Provides that health maintenance organizations shall be subject to the provisions of the Illinois Insurance Code prohibiting gender rating. Contains a nonacceleration clause.

IRMA POSITION: Opposed

H.B. 6064 (Rep. Sara Feigenholtz, D- Chicago) Amends the Illinois Insurance Code to provide that accident and health insurance policies and managed care plans must provide coverage for medically necessary foods, low protein foods, and pharmacological doses of vitamins and amino acids and the medical equipment and supplies necessary to administer the foods for the treatment of inborn errors of metabolism when the prescribing physician has issued a written order stating that the medically necessary foods are necessary for the treatment of a disease or disorder. Provides that “medically necessary foods” means foods that are formulated to be consumed or administered under the supervision of a qualified medical provider

IRMA POSITION: Opposed

H.B. 6066 (Rep. Lou Lang, D- Chicago) Amends the State Employees Group Insurance Act of 1971, the Counties Code, the Illinois Municipal Code, the School Code, the Illinois Insurance Code, the Health Maintenance Organization Act, and the Voluntary Health Services Plans Act to provide that in providing coverage for phototherapy treatment for psoriasis, when medically necessary and prescribed by a physician licensed to practice medicine in all of its branches, the coverage may be subject to deductible, copayment, and coinsurance provisions as provided for under the policy. Provides that the deductible, copayment, and coinsurance provisions for phototherapy treatment prescribed for psoriasis shall not exceed a total maximum out-of-pocket cost to the patient of more than $15 for phototherapy treatments provided over a 30-day period, with a maximum out-of-pocket limit to the patient of no more than $120 annually. Contains a nonacceleration clause.

IRMA POSITION: Opposed

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CREDIT & FINANCE

H.B. 4702 (Rep. Rosemary Mulligan, R- Des Plaines) Provides that the holder of a gift certificate issued on or after January 1, 2011 that has a balance of less than $10 must be given the option of receiving that balance in cash.

IRMA POSITION: Opposed

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ENVIRONMENT & UTILITIES

H.B. 4636 (Rep. Richard Myers, R- (Macomb) Accelerates by one year (from January 1, 2012 to January 1, 2011) the date upon which certain prohibitions regarding the disposal of electronic products take effect. Makes corresponding changes to the period during which county governments and action agencies may petition the Illinois Pollution Control Board for a temporary waiver from these prohibitions and during which the holders of waivers are exempted from enforcement proceedings.

IRMA POSITION: Opposed

H.B. 5338 (Rep. Karen May, D- Highwood) Creates the Toxin-Free Kids Act. Provides that by July 1, 2010, the Department of Public Health shall, after consultation with the Environmental Protection Agency, generate a list of chemicals of high concern. Sets forth the conditions under which the Department, after consultation with the Agency, may designate a chemical of high concern as a priority chemical. Sets forth the applicability of the Act. Authorizes the Director of the Environmental Protection Agency to accept donations, grants, and other funds in order to carry out the purposes of the Act. Provides that the State may cooperate with other states in an interstate chemicals clearinghouse regarding chemicals in consumer products.

IRMA POSITION: Opposed

H.B. 5542 (Rep. John Cavaletto, R- Salem) Provides that no tax is imposed under the Acts upon the use or purchase of energy-efficient products that qualify as “Energy Star” products under the federal Energy Star Program and that are purchased at a price of $1,500 or less during a tax holiday. Defines “tax-holiday” as the periods each year: (1) beginning at 12:01 a.m. on November 1st and continuing through 11:59 p.m. on November 7th; and (2) beginning at 12:01 a.m. on April 22nd and continuing through 11:59 p.m. on April 28th. Sets forth criteria for transactions to qualify for the exemption.

IRMA POSITION: Support

H.B. 6088 (Rep. Elaine Nekritz, D- Des Plaines) Creates the BPA-Free Kids Act. Beginning June 1, 2011, prohibits the sale or distribution of certain products containing bisphenol-A. Provides that, beginning June 1, 2011, any food product, other than infant formula or baby food, that is contained in a can, jar, or plastic container containing bisphenol-A (rather than “in a can, jar, or plastic container”) shall bear a conspicuous label stating, “This container is made with bisphenol-A (BPA)”. Beginning June 1, 2011, prohibits the sale of products that must be, but are not, labeled. Authorizes the Illinois Environmental Protection Agency and the Illinois Department of Public Health to participate in an interstate chemical safety clearinghouse. Requires certain notifications and imposes penalties. Provides for enforcement by the Attorney General. Defines “Agency”, “baby food”, “Department”, “infant formula”, “manufacturer”, “person”, and “reusable food or beverage container”.

IRMA POSITION: Opposed

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FOOD & LIQUOR

S.B. 3377 (Sen. William Haine, D- Alton/Rep.  Brandon Phelps, D- Harrisburg) Provides that any individual seeking initial certification shall be required to complete a minimum of 7 hours of certification training approved by the Department of Public Health and successfully pass a certification examination.

IRMA POSITION: Support

H.B. 990 (Rep. LaShawn Ford, D- Chicago) Requires the State Board of Education to adopt rules for the elimination of vegetable oils containing trans fats in foods served in public school cafeterias beginning on July 1, 2015 and for the elimination of all foods containing trans fats from public schools beginning on July 1, 2016. Provides that the State Board of Education shall adopt rules to require schools to provide healthy menu options.

IRMA POSITION: Neutral

H.B. 4809 (Rep. Chapin Rose, R- Charleston) Provides that every electronic benefits transfer (“LINK”) card issued on or after the effective date of this amendatory Act by the Department of Human Services for the purpose of enabling the cardholder to obtain food stamp benefits or cash must include on the card’s face a photograph of the cardholder. Requires the Department of Human Services to issue a caregiver identification card to the facility provider, guardian, or caregiver of a person entitled to benefits funded under the federal Food Stamp Program. Provides that every caregiver identification card must include on its face a current photo of the facility provider, guardian, or caregiver of the person entitled to benefits, the name of the person entitled to benefits, and a statement that clearly identifies the card holder as having the legal capacity to use the named person’s LINK card. Further provides that beginning on the effective date of this amendatory Act, a facility provider, guardian, or caregiver must present a valid caregiver identification card when using a LINK card to obtain food stamp benefits or cash on behalf of a person entitled to benefits funded under the federal Food Stamp Program. Defines the terms “facility provider”, “guardian”, “caregiver”, and “caregiver identification card”. Provides that within 6 months after the effective date of this amendatory Act, the Department shall replace every still-valid card issued before that date with a card that includes on its face a photograph of the cardholder.

IRMA POSITION: Opposed

H.B. 5036 (Rep. Mary Flowers, D- Chicago) Creates the Menu Education and Labeling Act. Requires restaurants and similar retail food establishments to post a sign informing their customers that certain foods on their menus may be high in calories, grams of saturated fat plus trans fat, and milligrams of sodium per serving, which has been known to cause diabetes, heart disease, and high blood pressure.

IRMA POSITION: Opposed

H.B. 5174 (Rep. LaShawn Ford, D- Chicago) Creates the Trans Fat Restriction Act. Sets forth definitions for “food facility” and “trans fat”. Provides that every food facility shall maintain the manufacturer’s documentation for any food or food additive that is or includes any fat, oil, or shortening for as long as the food or food additive is stored, distributed, or served by the food facility or used in the preparation of food within the food facility. Provides that beginning on July 1, 2010, no oil, shortening, or margarine containing trans fat for use in spreads or frying, except for the deep frying of yeast dough or cake batter, may be stored, distributed, or served by a food facility or used in the preparation of food within a food facility. Provides that beginning on July 1, 2011, no food containing trans fat, including oil and shortening that contains trans fat for use in the deep frying of yeast dough or cake batter, may be stored, distributed, or served by a food facility or used in the preparation of food within a food facility. Provides that the Department of Public Health shall adopt rules to administer and enforce the Act.

IRMA POSITION: Opposed

H.B. 5419 (Rep. Deborah Mell, D- Chicago) Creates the Menu Labeling Act. Requires food service establishments that are one of a group of 15 or more food service establishments doing business nationally, offering for sale substantially the same menu items in servings that are standardized, and that operate under common ownership or control, or as franchised outlets to list the total number of calories for each menu item on all menu boards and menus. Provides that “covered food service establishment” does not include a restaurant that does not have a public viewing menu board and distributes printed menus to individual customers. Provides that the Act shall not apply to beverage alcohol, the labeling of which is not regulated by the federal Food and Drug Administration. Provides that the Act does not apply to menu items that are listed on a menu or menu board for less than 30 days in a calendar year. Provides that calorie content values shall be based upon a verifiable analysis of the menu item. Provides that food items with a food item tag shall display the calorie content on the food item tag. Provides that calorie content values at drive-through windows shall be displayed on either (i) the drive through menu board or (ii) an adjacent stanchion. Sets forth requirements for listing the calorie content of menu items that have a range of calorie content values for different flavors, varieties, or combinations. Provides that the Department of Public Health shall adopt rules to administer and enforce the Act.

IRMA POSTION: Opposed

H.B. 5544 (Rep. John Cavaletto, R- Salem) Provides that on and after January 1, 2011, electronic benefits transfer cards (“LINK”) used to obtain food stamp benefits or cash shall contain the name and photo of the primary cardholder and, at the option of the primary cardholder, the names of secondary holders who are authorized to use the card. Establishes that an individual may only use the LINK card if the photo on the card matches the user or him or she presents a current and valid photo identification that confirms he or she is a secondary user listed on the card. Provides that on the effective date of the amendatory Act the Department of Human Services shall begin the process of transitioning to the use of LINK cards which contain the name and photo of the primary cardholder and list the names of all authorized users of the card. Requires the transition to be completed no later than January 1, 2011.

IRMA POSITION: Opposed

H.B. 6137 (Rep. Chapin Rose, R- Charleston) Amends the Illinois Public Aid Code. Provides that the Secretary of Human Services shall seek a waiver from the United States Department of Agriculture to allow the State to specify certain foods that may and may not be purchased in Illinois with the benefits funded by the federal Food Stamp Program, including a general ban on the use of food stamp benefits to purchase foods of minimal nutritional value such as carbonated soft drinks, snack cakes, candies, chewing gum, flavored ice bars, and fried, high-fat chips. Requires the Secretary to consult with members of the General Assembly in developing the waiver and to obtain approval from the General Assembly before implementing the waiver.

IRMA POSITION: Opposed

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LABOR

S.B. 3644 (Sen. Linda Holmes, D- Plainfield/Rep. Linda Chapa LaVia, D-Aurora) Amends the Illinois Wage Payment and Collection Act. Provides that if an employer fails to include all commissions earned by a separated employee in the final compensation paid to the separated employee within the time limit set forth in the Act, the employer shall, in addition to any other penalties, pay the employee an amount equal to 3 times the amount of the commissions that were not paid, as well as the employee’s court costs, attorney’s fees, and any other associated costs incurred in successfully pursuing a legal action against the employer.

IRMA POSITION: Opposed

H.B. 3635 (Rep. Elizabeth Hernandez, D- Cicero) Creates the Healthy Workplace Act. Requires an employer to provide an employee up to 7 sick days with pay during each 12-month period. Provides that an employee may use the sick days care for physical or mental illness, injury, medical condition, professional medical diagnosis or care, or a medical appointment of the employee or a family member. Contains provisions regarding: accrual; certification; notice; responsibilities of employers; unlawful practices; powers and duties of the Department of Labor; violations; penalties; civil liability; severability; and other matters.

IRMA POSITION: Opposed

H.B. 5155 (Rep. Jack McGuire, D- Joliet) Creates the Employer Religious or Mandatory Workplace Meeting Act. Prohibits an employer from requiring an employee to attend an employer-sponsored meeting or participate in communication for the purpose of communicating the employer’s opinion about religious or political matters. Prohibits an employer from taking or threatening any adverse employment action against an employee as a means of requiring an employee to attend such a meeting or participate in such communication or because the employee makes a good faith report of a violation or a suspected violation. Authorizes civil actions by aggrieved employees and provides for relief. Requires an employer to post notices of employee rights under the Act. Sets forth certain exceptions.

IRMA POSITION: Opposed

H.B. 5185 (Rep. Naomi Jakobsson, D- Champaign) Creates the Employment Application Act. Prohibits an employer from requiring that applications for employment be submitted only online or in another electronic format.

IRMA POSITION: Opposed

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LOSS PREVENTION

H.B. 6460 (Rep. Connie Howard, D- Chicago/Sen. Don Harmon, D- Oak Park) Amends the Criminal Identification Act. Deletes provision that those arrests or charges that resulted in orders of supervision for retail theft shall not be eligible for expungement until 5 years have passed following the satisfactory termination of the supervision.

IRMA POSITION: Neutral

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PHARMACY

S.B. 2552 (Sen. Iris Martinez, D- Chicago) Amends the Pharmacy Practice Act. Provides that all pharmacies that dispense drugs must maintain at all times a representative assortment of drugs in order to meet the pharmaceutical needs of their patients. Provides that pharmacies have a duty to deliver lawfully prescribed drugs or devices to patients and to distribute drugs and devices approved by the U.S. Food and Drug Administration for restricted distribution by pharmacies, or provide a therapeutically equivalent drug or device in a timely manner. Provides that if after a good faith effort to comply with the Act the lawfully prescribed drug or device is not in stock or the prescription cannot be filled, then the pharmacy shall provide the patient or agent a timely alternative for appropriate therapy which, consistent with customary pharmacy practice, may include obtaining the drug or device. Provides for discipline or other enforcement actions if the pharmacist engages in, or permits, certain acts. Effective immediately.

IRMA POSITION: Opposed

S.B. 2952 (Sen. John Sullivan, D- Quincy/Rep. Jil Tracy, R- Quincy) Amends the Methamphetamine Precursor Control Act. Increases by one class the knowing purchase, receipt, or acquisition of more than 7,500 milligrams of ephedrine or pseudoephedrine, their salts or optical isomers, or salts of optical isomers within a 30-day period.

IRMA POSITION: Support

S.B. 3093 (Sen. John Sullivan, D- Quincy/Rep. Robert Flider, D- Decatur) Amends the Methamphetamine Control and Community Protection Act. Provides that whenever any person pleads guilty to, is found guilty of, or is placed on supervision for a violation of the Act who thereafter purchases, receives, owns, or otherwise possesses any substance or product containing more than 7,500 milligrams (rather than any amount) of a methamphetamine precursor without a prescription commits an offense under the Act. In addition to any other penalty imposed by the court, no such person shall thereafter knowingly purchase, receive, own, or otherwise possess any substance or product containing a methamphetamine precursor, without the methamphetamine precursor first being prescribed for the use of the offender by an authorized prescriber.  Provides that a violation is a Class 4 felony.

IRMA POSITION: Support

H.B. 332 (Rep. Jack Franks, D- Woodstock) Requires every manufacturer and labeler that sells prescription drugs in the State to disclose to the Director of Public Health the value, nature, and purpose of any gift, fee, payment, subsidy, or other economic benefit provided in connection with detailing or promotional or other marketing activities by the company, directly or through its pharmaceutical marketers, to any physician, hospital, nursing home, pharmacist, health benefit plan administrator, or any other person in the State authorized to prescribe or dispense prescription drugs. Requires the Director to report to the Governor and the General Assembly on the disclosures. Provides exceptions to the disclosures. Provides for injunctive relief and civil penalties for failure to disclose.

IRMA POSITION: Opposed

H.B. 1109 (Rep. Mike Boland, D- Moline) Amends the Senior Citizens and Disabled Persons Property Tax Relief and Pharmaceutical Assistance Act. In provisions concerning the pharmaceutical assistance program, provides that beginning on July 1, 2010, “covered prescription drug” includes any agent or drug added by the Department of Healthcare and Family Services within the therapeutic categories of antipsychotics, antidepressants, and anticonvulsants.

IRMA POSITION: Opposed

H.B. 4733 (Rep. Sidney Mathias, R- Arlington Heights) Provides that the holder of a gift certificate issued on or after January 1, 2011 that has a balance of less than $10 must be given the option of receiving that balance in cash.

IRMA POSITION: Neutral

H.B. 5115 (Rep. Patricia Bellock, R- Westmont) Creates the Prescription Drug Repository Program Act. Requires the Department of Public Health to establish a prescription drug repository program, under which a healthcare facility may donate a prescription drug or supplies needed to administer a prescription drug for use by an individual who meets eligibility criteria specified by the Department. Sets forth requirements that prescription drugs or supplies must meet in order to be accepted and dispensed under the program. Provides that no drugs or supplies donated under the prescription drug repository program may be resold. Provides that nothing in the Act requires that a pharmacy or pharmacist participate in the prescription drug repository program. Provides for civil and criminal immunity for drug and supply manufacturers and pharmacists in relation to the donation, acceptance, or dispensing of prescription drugs or supplies under the prescription drug repository program. Amends the Pharmacy Practice Act, the Wholesale Drug Distribution Licensing Act, the Senior Pharmaceutical Assistance Act, the Illinois Food, Drug and Cosmetic Act, the Illinois Controlled Substances Act, and the Cannabis and Controlled Substances Tort Claims Act to provide that persons engaged in donating or accepting, or packaging, repackaging, or labeling, prescription drugs to the extent permitted or required under the Prescription Drug Repository Program Act are exempt from provisions of those other Acts that might prohibit or otherwise regulate such activity.

IRMA POSITION: Neutral

H.B. 5517 (Rep. Rosemary Mulligan, R- Des Plaines/Sen. Dan Kotowski, D-Park Ridge) Amends the Pharmacy Practice Act. In a provision concerning dispensing prescriptions, provides that if a physician or other authorized prescriber prescribes a drug and the pharmacy dispenses a generic, then it shall be the policy of every pharmacy operating in this State to require the pharmacist to notify the patient, patient’s designee, or customer when he or she is dispensing a generic drug with the same active pharmaceutical ingredient by a different manufacturer than most recently previously dispensed for the patient by that pharmacy. Provides that the amendatory Act shall not be construed to affect the dispensing of drugs when the prescriber has marked “may not substitute” on the prescription form.

IRMA POSITION: Neutral (as amended)

H.B. 5574 (Rep. Mary Flowers, D- Chicago) Provides that notwithstanding any law to the contrary, no prescription drug that was manufactured in a country other the United States of America may be sold within this State at a price that exceeds 135% of the price for which that drug is sold within the country in which it was manufactured.

IRMA POSITION: Opposed

H.B. 6149 (Rep. Marlow Colvin, D- Chicago) Creates the Tobacco Sales At Health Care Institutions Prohibition Act. Provides that a health care institution shall not sell or cause to be sold tobacco products. Provides that a retail establishment that operates or has a health care institution within it, such as a pharmacy or drug store, shall not sell or cause to be sold tobacco products. Provides that a person who violates the Act is guilty of a petty offense and shall be fined $200 for a first offense, $700 for a second offense occurring within 24 months of the first offense, and $1,000 for 3 or more violations occurring within 24 months of the second or subsequent violation. Provides that each calendar day an entity operates in violation of any provision of the Act shall be deemed a separate violation. Provides that nothing in the Act shall be interpreted as prohibiting the Illinois Department of Public Health or other agency from suspending or revoking any license or permit issued by and within the jurisdiction of such department or agency for repeated violations of the Act. Provides that any fines or fees collected under the Act shall be used for the enforcement of the Act and for educational programs on the harmful effects of tobacco.

IRMA POSITION: Opposed

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REGULATIONS & LICENSING

H.B. 5222 (Rep. Dan Reitz, D- Sparta) Provides that the Department of Financial and Professional Regulation shall have the power to expunge any disciplinary offense of a licensee disciplined under any licensing Act that is administered by the Department if the offense is either administrative in nature or, for health care professionals, unrelated to patient care, including, but not limited to, the following: (A) failure to complete continuing education requirements, (B) failure to have any additional required license or certification, (C) failure to renew a license on time, (D) failure to report a practice location, or (E) other offenses prescribed by rule. Provides that a licensee may apply to the Department to have an offense expunged from his or her disciplinary record. Provides that an application for expungement shall only be considered by the Department if the application is submitted more than 3 years after the disciplinary offense was adjudicated and the licensee has not been previously or subsequently disciplined for a similar or more serious offense under the same Act. Provides that requests for expungement shall be submitted to and considered by the appropriate Board in accordance with the requirements that the Department shall set by rule.

IRMA POSITION: Neutral

H.B. 5701 (Rep. Maria Berrios, D- Chicago) Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that it is an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act for a valet service provider to refuse a consumer’s request to store his or her motor vehicle overnight when the consumer indicates that he or she is too intoxicated to safely drive the motor vehicle. Provides that the valet service shall store the consumer’s motor vehicle until 12:00 p.m. of the following day and may charge a fee of not more than $30 for the additional storage of the consumer’s motor vehicle.

IRMA POSITION: Opposed

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TAXES

S.B. 44 (Sen. Jeffrey Schoenberg, D- Evanston/Rep. Karen Yarbrough, D- Broadview) Amends the Cigarette Tax Act and the Cigarette Use Tax Act. Provides that the additional tax shall be imposed at the rate of 25 mills per cigarette on September 1, 2009. Provides that a further additional tax shall be imposed at the rate of 25 mills per cigarette on September 1, 2010. Provides that any distributor who has stamped cigarettes in his or her possession for sale when the additional taxes take effect is required to pay the additional tax. Provides that, of the proceeds from the additional tax, $54,167 (instead of 0.57%) shall be deposited into the Tax Compliance and Administration Fund, and the balance (instead of 99.43%) shall be deposited into the Healthcare Provider Relief Fund each month. Changes the definition of “cigarette” to exclude those with wrappers made of “whole tobacco leaf” (instead of “tobacco”). Amends the State Finance Act to create the Healthcare Provider Relief Fund. Provides that moneys in the Fund may be used by the Department of Healthcare and Family Services for the purpose of making reimbursements to providers who participate in certain medical assistance programs. Effective immediately.

IRMA POSITION: Opposed

S.B. 3353 (Sen. Jeffrey Schoenberg, D- Evanston) Provides that a retailer or serviceman is considered to be (i) maintaining a place of business in the State and (ii) engaged in selling personal property at retail in the State if the retailer or serviceman solicits business within the State through employees, independent contractors, agents, or other representatives. Provides that a retailer or serviceman is presumed to be soliciting business through an employee, independent contractor, agent, or other representative if the retailer or serviceman enters into an agreement with a resident of this State under which the resident, for a commission or consideration, directly or indirectly refers potential customers, whether by a link on an Internet website or otherwise, to the retailer or serviceman, if the cumulative gross receipts from sales by the retailer or serviceman to customers in the State who are referred to the retailer by all residents with this type of an agreement with the retailer is in excess of $10,000 during the preceding 4 quarterly periods ending on the last day of February, May, August, and November. Provides that the presumption may be rebutted by proof that the resident with whom the retailer or serviceman has an agreement did not engage in any solicitation in the State on behalf of the retailer or serviceman that would satisfy the nexus requirement of the United States Constitution during the 4 quarterly periods in question.

IRMA POSITION: Support

H.B. 893 (Rep. Jack McGuire, D-Joliet) Creates an income tax credit for employers who pay costs in connection with a qualified wellness program. Provides that the amount of the credit is 50% of those costs per year up to $200 per employee for the first 200 employees and $100 per employee for the remaining employees. Sets forth the requirements for qualified wellness programs. Provides that the credit may not be carried forward or back and may not reduce the taxpayer’s liability to less than zero. Effective immediately.

IRMA POSITION: Neutral

H.B. 5072 (Rep. Bill Black, R- Danville) Provides that, for the purpose of imposing a home rule or non-home rule municipal retailers’ occupation tax, if a purchase order is received at a retailer’s branch location within a municipality, and delivery is made to the consumer within that municipality, then that municipality’s tax applies regardless of whether or not the retailer has a primary place of business located in another municipality.

IRMA POSITION: Opposed

H.B. 5773 (Rep. Ron Wait, R- Belvidere) Creates the School District Income Tax Act. Allows school districts to tax income after referendum approval of district residents and record owners of property in the district. Provides for additional levies, administration and distribution of the tax, and penalties for violations. Applies only to income earned following 120 days after certification of the results of the referendum. Creates a credit against the tax in an amount not to exceed $500 equal to 5% of the amounts spent by the taxpayer on monthly rent for the taxpayer’s residence. Amends the Property Tax Code to provide for abatement of residential, farm, and small business property. Amends the School Code to require that school districts certify income tax levies and amounts realized for property tax abatement purposes and to coordinate the calculation of school aid with the income tax levies by adjusting the operating tax rate accordingly. Amends the State Finance Act to create the School District Income Tax Fund.

IRMA POSITION: Opposed

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TOBACCO

S.B. 2486 (Sen. Carole Pankau, R- Bloomingdale)/H.B. 4648 (Rep. Franco Coladipietro, R-Bloomingdale) Amends the Cigarette Tax Act and the Cigarette Use Tax Act. Provides that tax stamps sold on or after July 1, 2010 must be counterfeit-resistant and encrypted with certain information. Provides that the stamps shall (i) be produced in a secure facility certified in accordance with the security assistance standards established in 2005 by the American National Standards Institute and the North American Security Products Organization, (ii) incorporate a minimum of 4 layers of overt, semi-covert, and covert data, and (iii) instantaneously capture encrypted data. Requires distributors to acquire certain necessary equipment and provide the encrypted data to the Department of Revenue in the form and manner required by the Department. Requires the Department of Revenue to retain the data using a secure system. Provides that any distributor having stamped packages of cigarettes in his or her possession on July 1, 2010 may continue to possess, deliver, or distribute those stamped cigarettes. Effective immediately.

IRMA POSITION: Opposed

S.B. 3145 (Sen. Ira Silverstein, D- Chicago) Creates the Cigarette Delivery Sales Reporting Act. Imposes reporting requirements on persons who sell cigarettes for delivery by mail or a delivery service. Includes civil penalties for noncompliance. Amends the Cigarette Tax Act and the Tobacco Products Tax Act of 1995. Requires a retailer of cigarettes or tobacco products to obtain a retailer’s license from the Department of Revenue; specifies qualifications, fees, and penalties for noncompliance; provides for mandatory suspension or revocation of a retailer’s license for repeated violations of the Sale of Tobacco to Minors Act. Also makes changes in definitions, reporting requirements, and civil and criminal penalties.

IRMA POSITION: Opposed

S.B. 3174 (Sen. Terry Link, D- Lake Bluff/Rep. Marlow Colvin, D- Chicago) Amends the Tobacco Accessories and Smoking Herbs Control Act. Provides that a product containing or delivering nicotine intended or expected for human consumption, or any part of such a product, that is not a tobacco product shall not be distributed or sold in the State or to consumers in the State unless it has been approved or otherwise certified for legal sale by the United States Food and Drug Administration as a tobacco use cessation, harm reduction, or modified-risk product, or for other medical purposes, and is being marketed and sold solely for that approved purpose. Establishes penalties for violations.

IRMA POSITION: Neutral (as amended)

S.B. 3734 (Sen. Kwame Raoul, D- Chicago/Rep. Arthur Turner, D- Chicago)
Replaces everything after the enacting clause. Amends the Drug Paraphernalia Control Act. Includes in the definition of “drug paraphernalia”, objects intended to be used unlawfully in ingesting, inhaling, or otherwise introducing cannabis, cocaine, hashish, or hashish oil into the human body including, where applicable, known as wraps, blunt wraps, or roll your own cigar wraps, whether in the form of a sheet or tube, that consists in whole or in part of reconstituted tobacco leaf or flavored tobacco leaf; however, the term “wrap”, “blunt wrap”, or “roll your own cigar wrap” does not include a tobacco leaf wrap that is used in the manufacturing of a cigar intended for retail sale.

IRMA POSITION: Neutral (as amended)

H.B. 6234 (Rep. Arthur Turner, D- Chicago) Amends the Drug Paraphernalia Control Act. Includes in the definition of “drug paraphernalia”, objects intended to be used unlawfully in ingesting, inhaling, or otherwise introducing cannabis, cocaine, hashish, or hashish oil into the human body including, where applicable, individual tobacco wrappers, known as wraps, blunt wraps, or roll your own cigar wraps, whether in the form of a sheet or tube, that consists in whole or in part of reconstituted tobacco leaf or flavored tobacco leaf; however, the term “wrap”, “blunt wrap”, or “roll your own cigar wrap” does not include a tobacco leaf wrap that is used in the manufacturing of a cigar intended for retail sale.

IRMA POSITION: Neutral

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Rob Karr, Senior Vice President

Government & Member Relations

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