ILLINOIS RETAIL MERCHANTS ASSOCIATION

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This Week In Springfield

Illinois This Week In Springfield – 97-19

December 13, 2011 – 11:08 am

 

December 13, 2011

This Week In Springfield, the Illinois General Assembly briefly returned to address the lingering income tax relief package not finalized before Thanksgiving.

 

INCOME TAX RELIEF

TWIS readers will recall that during the second week of the Fall Veto Session, the Senate passed an income tax relief proposal. That proposal failed in the House for numerous reasons expressed by both Democrats and Republicans. At that time, the leaders announced their intent to negotiate a compromise and return for final action. This week, the Assembly returned to consider the proposal negotiated by the legislative leaders and their surrogates. The initial proposal that failed during the regularly scheduled Veto Session was one bill. The proposal considered this week, was broken into two proposals.

The first component was S.B. 397 (Sen. Toi Hutchinson, D- Chicago Heights/Rep. John Bradley, D- Marion). S.B. 397 contained corporate income tax relief provisions including: (1) an increase in the exemption on the inheritance tax deduction from $2 million to $3.5 million for anyone dying on or after January 1, 2012 and before January 1, 2013 and to $4 million for anyone dying on or after January 1, 2013; (2) reinstatement of the Net Operating Loss (NOL) beginning January 1, 2012 with a cap of $100,000; and (3) a five year extension on the expiration or sunset of every exemption, credit and deduction set to expire in 2011, 2012, or 2013.

In addition to the noteworthy items listed above, S.B. 397 also contained an EDGE tax credit for Sears Holding Corporation and Champion Laboratories and a change in the income apportionment rate for the Chicago Mercantile Exchange (CME). In all cases, these proposals were necessary to keep these entities in Illinois in the face of aggressive and, in most cases, more generous offers from other states.

S.B. 397 as amended by House Amendments 3 and 7 passed the House 81-28-7 and the Senate 44-9.

The second component of the tax relief package was contained in S.B. 400 (Sen. Toi Hutchinson, D- Chicago Heights/Rep. Barbara Flynn Currie, D- Chicago). S.B. 400 contained an increase in the personal exemption from $2,000 to $2,050 in 2013. From 2014 on, the personal exemption is increased by a cost-of-living adjustment. This adjustment is determined by the rate of inflation as determined annually in the Consumer Price Index (CPI). S.B. 400 also contained an increase in the Earned Income Tax Credit (EITC) from the current 5 percent to 7.5 percent in 2012 and to 10 percent for tax years beginning on or after January 1, 2013.

As with its counterpart, S.B. 400 as amended by House Amendments 1 and 2 passed the House 67-49 and the Senate 48-4.

On behalf of the entire Illinois retail community, IRMA would like to thank all those involved in the successful passage of this proposal. House Revenue & Finance Committee Chairman John Bradley (D- Marion), House Majority Leader Barbara Flynn Currie (D- Chicago), House Republican Leader Tom Cross (R- Oswego), Republican Spokesman on the House Revenue & Finance Committee David Harris (R-Arlington Heights), Senate Revenue Committee Chairman Toi Hutchinson (D- Chicago Heights), Senate Republican Leader Christine Radogno (R- Lemont), and Senate President John Cullerton (D- Chicago)for their diligence and effort throughout the process. Additionally, IRMA would like to thank Governor Pat Quinn for his leadership and every member of the Assembly who supported the proposal. Speaker of the House Michael Madigan (D- Chicago) declared a conflict early in the process, removed him from this process, and directed Rep. Bradley to conduct negotiations.

SCHEDULE

The Assembly has now adjourned for the holidays. It is scheduled to return January 31, 2012 when the Second Spring Session of the 97th Illinois General Assembly will begin in earnest.

Rob Karr
Vice President
Government & Member Relations
rkarr@irma.org

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Illinois – This Week in Springfield – 97-18

November 30, 2011 – 10:58 am

 

November 30, 2011

This Week In Springfield the Assembly returned to action Tuesday to undertake consideration of unfinished business from the Fall Veto Session. Consideration of a tax relief package, the ever-present Tenaska proposal, and reconfiguring the State budget to keep seven State facilities open through the remainder of the State’s fiscal year, dominated the agenda.

TAX RELIEF PACKAGE

Over the course of the last several weeks, negotiations have been taking place on a tax relief package intended to soften the blow of the income tax increases passed in 2010 and effective on January 1st of this year. Illinois increased the income tax from 4.8% to 7% (9.5% when the Corporate Personal Property Replacement Tax is included) on corporations and from 3% to 5% on individuals. This week, the Senate passed H.B. 1883 (Rep. John Bradley, D- Marion, Sen. Toi Hutchinson, D- Chicago Heights) on a bi-partisan roll call of 36-18-1. H.B. 1883 would have extended the sunset on all credits and exemptions in the income tax code for five years (including research and development and ethanol); increased the Earned Income Tax Credit (EITC) from the current 5% to 7.5% in 2012 and to 10% in 2013; increased the personal exemption from $2,000 to $2,050 and then increased it annually by the rate of inflation; increased the exemption of the inheritance tax from the current $2 million to $3 million in 2012 and $3.5 million in 2013; reinstated the Net Operating Loss (NOL) deduction but capped it at $100,000; and created a new tax exemption for live theater shows but capped the maximum exemption at $2 million. In addition to the above, H.B. 1883 contained proposals changing an apportionment election to keep the Chicago Mercantile Exchange (CME) in Chicago and extended the Economic Development Area encompassing the Hoffman Estates headquarters of Sears Holding Corporation to ensure they remain in Illinois despite substantially more generous offers from other states. In both cases, negotiators tied specific job creation/retention thresholds to the company-specific incentives and inserted ‘claw-back’ provisions should those thresholds not be met.

While the tendency is to focus on the portions of the proposal related to CME or Sears, the truth is there are benefits in this package for businesses of all sizes as well as their customers. For all businesses, the reinstatement of the NOL and the extension of the tax credits and exemptions for five years provide a level of certainty enabling more effective tax planning. For smaller businesses, in addition to the NOL, the increase in the inheritance tax exemption is beneficial. For consumers, particularly in areas outside of the greater Chicago metropolitan area, the retention of the ethanol and biodiesel tax credit is important. Likewise, the EITC and the increase in the personal exemption attempt to preserve the buying power of customers.

In the House, H.B. 1883 was soundly rejected receiving only eight votes. It should be noted that the House had previously been poised to consider a slightly less generous tax relief package. After the defeat in the House of H.B. 1883, negotiators announced their intent to continue to meet and, if a deal is reached, the Assembly will immediately return to undertake consideration.

Time is of the essence as employers who lost money in 2010 do not have the ability under existing law to write off those losses. At the same time, they are subject to the higher income tax making it even more difficult on them to remain in business, retain employees, or both. While some believe neither the CME nor Sears will leave, it is well known that Sears in particular has extremely generous offers from other states. They are making every effort to remain in Illinois as it has been their home for 124 years and they do not want to displace their 6,000+ employees. On the other side, they have a fiduciary responsibility to their shareholders to give the company the best possible chance at success. No one knows exactly when the proverbial bell will toll but the time is certainly near.

TENASKA

TWIS readers will recall that Tenaska, an out-of-state energy firm looking for a guaranteed return on investment of over 10% on experimental technology has been voted on in the Senate three times previously. In short, Illinoisans, but particularly commercial and industrial electric consumers, will be required to pay over $280 million per year in higher electric costs to guarantee Tenaska’s rate-of-return. Residential customers are largely protected as their increases are capped at 2%. This annual rate of return is guaranteed for 30 years meaning Illinois businesses will pay more than $8 billion in artificially higher electric costs over the life of Tenaska’s subsidy. This substantial cost comes on top of the recent income tax increase and despite the fact that a similar project in Indiana is currently $1.2 billion over budget. To make matters worse, Future Gen 2.0, another alternative energy project, has watched the Tenaska issue and is now allegedly preparing their own similar proposal.

After being defeated three times in the Illinois Senate, the Tenaska proposal, contained in S.B. 678 (Sen. John Cullerton, D- Chicago) finally passed yesterday with the bare minimum 30-votes required for passage. IRMA would like to thank the 28 senators who voted against the legislation.

IRMA did successfully fend off a last-minute amendment which would have allowed the Illinois Commerce Commission (ICC) to ignore the “cost of service” doctrine and have one customer class subsidize another. For example, the ICC could have chosen to hold schools harmless and put their share of the Tenaska increase on retailers and manufacturers. Alternatively, the ICC could have chosen to hold industrial users harmless and shift their costs to the commercial class meaning the commercial class would pay the cost of residential payers, industrial payers, and their own costs. IRMA President David F. Vite testified against the amendment. After making a persuasive case, the amendment was withdrawn.

The fight now shifts to the House. The House has previously passed the Tenaska proposal on two separate occasions. Nevertheless, the environment has changed since they first considered it and IRMA is hopeful that realization as well as the additional facts that the prolonged debate in the Senate generated will serve to change minds. In the meantime, IRMA members are strongly encouraged to begin contacting their State Representatives and urging them to vote “No” on S.B. 678 if it comes before the Illinois House.

CONTACT INFORMATION:

Rob Karr
Senior Vice President
Government & Member Relations
rkarr@irma.org

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Illinois – This Week in Springfield – 97-17

November 11, 2011 – 11:34 am

 

November 11, 2011

This Week In Springfield, the Veto Session did not conclude as was widely anticipated. A few large issues are still to be decided including possible income tax reform and a potential expansion of gambling. The Assembly is scheduled to return on Tuesday, November 29th for one day.

UNEMPLOYMENT
CORPORATE INCOME TAXES
TENASKA
SCHEDULE

UNEMPLOYMENT INSURANCE

Due to the unforeseen depth and intensity of the economic recession, Illinois’ Unemployment Insurance Trust Fund finds itself approximately $2.5 billion in debt. The State had to borrow from the Federal Government to cover the debt meaning they will owe the Federal Government substantial interest payments starting January 1, 2012. While this situation is not unique to Illinois, policy makers recognized the need to address the situation quickly. Failure to do so by January 1st, would have had substantial negative financial impact on Illinois employers and the State.

In order to try and address the financial impact on employers and return the Trust Fund to solvency, Governor Pat Quinn convened an ‘agreed bill’ process in late August. An ‘agreed bill’ process entails the Governor’s Office bringing together representatives of the Illinois employer community and organized labor, the stakeholders in the unemployment insurance system, to attempt to negotiate an amendment to the existing law which address the Trust Fund deficit, ensures laid off workers are paid, and returns the Trust Fund to solvency. The negotiations were overseen by the Governors’ Office and two representatives from each of the four legislative caucuses. IRMA President David F. Vite was the lead negotiator for the employers.

If no changes were made to the existing law, the following would have taken place:

  • the State of Illinois would have had to pay $240 million in General Revenue Funds (GRF) to the Federal Government to pay interest on the Trust Fund debt from Fiscal Year 2012 thru Fiscal Year 2017;
  • financial penalties would have been imposed on all employers, even those who have not laid anyone off in the last three years, and these penalties would have continued to increase ultimately costing Illinois employers $1.2 billion;
  • no reforms would have been instituted;
  • laid off workers would have experienced a one-week reduction – 25 weeks from 26 – in 2012 although they would have received 26 weeks again in 2013;
  • there would have been no ‘rest stops’ (i.e. financial penalties on labor and employers to force them back to the negotiating table to re-evaluate the system).

    •  

    House Amendments #4 and #5 to S.B. 72 (Sen. Terry Link, D- Lake Bluff/Rep. Frank Mautino, D- Peru) contained the agreement concluded between employers and unions. S.B. 72 accomplished the following:

     

  • Illinois employers pay over $400 million less than they would have if no changes were made to the existing law;
  • Nearly half of Illinois employers’ (48%) will see a significant reduction (17% in 2012 and 25% in 2013) in their unemployment insurance taxes as they have not laid off an employee;
  • $240 million in General Revenue Funds from the State are not needed;
  • “Rest stops’ in 2016 and 2018 will force employers and unions back to the negotiating table to re-evaluate the system. Failure to do so will result in substantial monetary penalties.
  • The Trust Fund is returned to solvency in 2019 (or before if the economy improves);

    •  

    There are real reforms to the system. These reforms are:

  • Treasury Offset Program (TOPS) which enhances the Illinois Department of Employment Security’s ability to recoup improper unemployment insurance payments through Federal income tax refund payments.
  • Personal liability – IDES would mirror Illinois Department of Revenue (IDOR) provisions that allow for the imposition of personal liability when business officers and employees willfully evade paying unemployment insurance taxes. This protects the employers who pay their share by not forcing them to cover the debts of bad actors. These penalties are identical to current penalties for failure to submit income tax monies withheld from employees.

    • S.B. 72 passed the House unanimously and the Senate 53-1. IRMA would like to thank the members of the Assembly who voted in favor the legislation.

    IRMA would also like to thank Governor Quinn, his point-person for the negotiations Jerry Stermer, IDES Director Jay Rowell and his staff (particularly John Gingrich and Joe Mueller), Representatives Frank Mautino (D- Peru), John Bradley (D- Marion), Ed Sullivan (R- Mundelein), Pam Roth (R- Morris), and Senators Kwame Raoul (D- Chicago), Terry Link (D- Lake Bluff), John O. Jones (R- Mt Vernon), and Sue Rezin (R- Morris) for their leadership throughout the long and often frustrating negotiations.

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    CORPORATE INCOME TAXES

    The Assembly spent a great deal of time this week debating how best to address the needs of the Chicago Mercantile Exchange (CME), renewal of the Economic Development Authority (EDA) for Sears Holding Corporation, and ways to undo some of the damage wrought by the corporate income tax increase passed last January. In addition to the efforts to help ensure the CME and Sears remain in Illinois in the face of impressive efforts by other states to lure away these two entities and the thousands of jobs they create, the focus on income tax reforms includes whether or not to restore the research and development tax credit and the Net Operating Loss exemption both of which were suspended when the income tax increase was approved; whether or not to expand the Earned Income Tax Credit for low-income wage earners and increase it annually by the rate-of-inflation; whether or not to increase the inheritance tax exemption from $2 million to $5 million over two years; whether or not to decouple from the Federal Government on depreciation in order to help pay for the tax relief; and a few other more minor changes. However, debate among legislative leaders and the Governor over how large the overall package should be and concern that any changes be written correctly so as not to create unintended circumstances, did not allow the Assembly to finish by the close of business Thursday. In an effort to finalize agreement over the breadth and scope of the package and to ensure whatever is agreed to is written correctly, the Assembly will take the next 10 days to continue to meet in committee and finalize legislative language.

    The House Revenue Committee will convene in Springfield at 1:00 p.m. on November 16th, 18th, and 28th. Action on any proposal is widely anticipated when the Assembly returns November 29th. Currently, the proposal is contained in House Amendments #1 and #2 to S.B. 397 (Sen. Toi Hutchinson, D- Chicago Heights/Rep. Barbara Flynn Currie, D- Chicago).

    IRMA has been, and will continue to be, involved in the negotiations and debate leading up to November 29th.

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    TENASKA

    The effort to call, for a fourth time in less than a year, the hugely controversial experimental energy plant called Tenaska, did not occur. TWIS readers will recall that another effort to pass Tenaska failed by five votes during the first week of veto session. The proponents are doing their best to round-up the five votes they need to achieve the minimum threshold of 30 and pass it out of the Senate. Efforts to defeat this hideously expensive proposal – which will require Illinois businesses to pay higher electric utility bills of at least $286 million per year for 30-years – continue unabated. The Assembly can reconsider the Tenaska proposal any time they return, so it is imperative that your State Senator and State Representative hear of your continued opposition.

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    SCHEDULE

    The Assembly will return Tuesday, November 29th, in an effort to address unfinished matters. As of this writing, they are scheduled to be in session only on Tuesday.

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    CONTACT INFORMATION:
    Rob Karr, Senior Vice President
    Government & Member Relations
    rkarr@irma.org

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    Illinois – This Week in Springfield, 97-16

    November 9, 2011 – 10:43 am


    October 28, 2011

    This Week In Springfield was the first week of the Fall Veto Session and witnessed its share of action. The Assembly will return for the second week November 8th – 10th.

    TENASKA
    SMART GRID
    PSEUDOEPHEDRINE
    MAIN STREET FAIRNESS
    SALES TAX HOLIDAY
    HEALTH EXCHANGES

    TENASKA

    TWIS readers will recall that for the past two years, an out-of-state energy company called Tenaska has been trying to pass legislation requiring rate payers to guarantee their investment, and an eye-popping 11% rate of return, in an experimental technology called carbon sequestration. In short, the plant would burn coal to generate electricity then pump the carbon gases into allegedly air-tight caverns deep underground. The Tenaska project would require Illinois ratepayers, particularly businesses as residential ratepayers are protected by a 2% cap, to pay above-market prices for electricity totaling $8.6 billion over 30 years or approximately $286 million per year. This project continues to be pursued despite the fact that a sister project in Indiana announced this week another $200 million in cost overruns bringing the total cost overruns to at least $1.2 billion. IRMA and a wide-ranging coalition including business, consumer, and environmental groups, have adamantly opposed the proposal. This week, the Senate voted for the third time in six months on the proposal, this time contained in S.B. 678 (Sen. John Cullerton, D- Chicago). As with the other times it has been considered, the proposal failed, and receiving only 25 votes – 5 short of the 30 needed for passage. Few proposals have had as many opportunities given to it for passage. Unfortunately, it may not be over. S.B. 678 was placed on “Postponed Consideration” meaning it could be called again for a vote. IRMA will continue to work to try and ensure it does not garner enough support for passage. IRMA would like to thank all the Senators on both sides of the political aisle who voted against S.B. 678 this week.

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    SMART GRID

    During the Spring Session, Commonwealth Edison (ComEd) successfully pushed S.B. 1652 (Rep. Kevin McCarthy, D- Orland Park/Sen. Mike Jacobs, D- Moline) through the Assembly. This is legislation allowing Ameren and ComEd to increase their rates by over $2 billion. These monies would be used by the utilities to upgrade the transmission and distribution infrastructure and, more importantly, install Smart Grid technology. In its simplest form, Smart Grid technology is supposed to allow rate payers to have far more control over their energy consumption and improve conservation. The investments in infrastructure are to substantially improve reliability. IRMA was among a host of others who expressed their opposition, not over the intent but rather the specifics including the potential rate-of-return.

    Governor Pat Quinn vetoed S.B. 1652 stating that the bill ‘erodes meaningful consumer protections’ and would allow ‘vast profits for electric utilities’.

    This week, the Assembly overrode the Governor’s veto in large part due to passage of a ‘trailer’ bill which attempted to address some of the concerns of opponents. H.B. 3036 (Rep. Kevin McCarthy, D- Orland Park/Sen. Don Harmon, D- Oak Park) reduced the rate-of-return, imposed new job creation guarantees on the utilities including penalties for failing to meet the job creation goals, and required the utilities to pay an additional $60 million to help low-income consumers and veterans who need assistance.

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    PSEUDOEPHEDRINE

    Over a year ago, the Illinois State Police (ISP) launched a pilot program called the National Precursor Log Exchange (NPLEx). This program is an electronic point-of-sale program designed to replace the paper ID and log system Illinois retailers are required to keep on every sale of any product containing pseudoephedrine (PSE). NPLEx is electronic and tracks purchasers. This enables the system to significantly impact ‘smurfing’. ‘Smurfing’ is the term for people who go store-to-store buying the limit of medicines containing PSE until they have enough to manufacture meth. A new method of making meth called ‘shake and bake’ also requires far less PSE than former methods increasing the need to cut down on ‘smurfing’. If a person has already purchased the maximum amount of medicines containing PSE for the month, the NPLEx system disallows the sale. This system has significant advantages for the retailer as well as law enforcement as it is real-time.

    A few months ago, the ISP and the Office of Illinois Attorney General Lisa Madigan met with IRMA to develop legislation to make the NPLEx system permanent and to cancel the other pilot projects operating in various parts of the State so that NPLEx would be the system. This week, an amendment containing the agreed upon language was added to S.B. 73 (Sen. Bill Haine, D-Alton/Rep. Jerry Costello II, D- Sparta) and passed unanimously by the House. It now awaits concurrence in the Senate which is expected to occur when they return November 8th. IRMA would like to thank Attorney General Lisa Madigan, the Illinois State Police for the pro-active engagement as well as the members of the House for their unanimous support.

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    MAIN STREET FAIRNESS

     

    Last January, the General Assembly passed and Governor Quinn signed into law, legislation requiring remote sellers (e.g. Internet) to collect and remit the Illinois sales tax. This protected Illinois retailers and consumers alike. It protected consumers as the tax is due and owing so Internet sellers who were not collecting the sales tax were exposing Illinois consumers, who assumed the tax was collected, to interest and penalties for failing to pay. It protected Illinois retailers by leveling the playing field instead of allowing the Illinois Tax Code to be used as a competitive advantage by the remote sellers.

    This week, H.B. 3869 (Rep. David Winters, R- Rockford) was introduced seeking to repeal the Main Street Fairness law. The argument proponents of H.B. 3869 are trying to make is that the remote sellers are not collecting the sales tax and 21st century entrepreneurs are allegedly being discouraged from establishing their businesses here. The facts say otherwise.

    Internet sellers, such as Amazon, are collecting taxes in New York and have agreed to do so in Tennessee and California. Clearly, if they can collect and remit the sales taxes in those states, they can do so in Illinois. IRMA President & CEO David F. Vite sent a letter to Amazon CEO Jeff Bezos asking them to become the same responsible corporate citizen in Illinois that they are becoming in the aforementioned states. Those who want to blame the Main Street Fairness law for allegedly driving entrepreneurs out of Illinois miss the point: it was Amazon who chose to ‘divorce’ from those entrepreneurs rather than collect the taxes which are due and owing. If they can do it in states such as New York, Tennessee, and California, they can do it in Illinois.

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    SALES TAX HOLIDAY

    Illinois consumers enjoyed holiday from sales tax on back-to-school items and some clothing over ten-days in August 2010. The Assembly did not choose to renew the holiday in 2011 citing claims by the Illinois Department of Revenue (IDOR) that the holiday cost the State sales tax revenues. This week, The Comptroller’s Quarterly, published by the Office of Illinois Comptroller Judy Baar Topinka, contained facts to counter the claim that it cost. The facts read as follows: “Sales tax revenues increased by $214 million, or 13.3 percent – although that is due in part to the sales tax holiday in August of last year.” Clearly, the sales tax holiday worked as intended and did not cost the State tax revenues. Policy makers looking to stimulate economic activity without costing the State money can now look afresh at the holiday given these facts.

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    HEALTH EXCHANGES

    Like other states, Illinois must have a fully operational health exchange no later than January 1, 2014. In order to demonstrate progress, the State must have a plan in place by January 1, 2013. If a plan is not in place, the Federal Government could implement their own exchange without consulting the State. This is a scenario most interested parties want to avoid. For those who may not be aware, a very simplistic explanation of a health exchange is that it will operate like an Expedia for those who are seeking to purchase health insurance.

    The problem with being too aggressive or expansive in creating and operating an exchange, is that the Federal Government has yet to provide guidance on a number of key issues. With that in mind, IRMA and a broad coalition of health insurance consumers, devised a limited approach to exchanges so that the State of Illinois does not find itself financially exposed or unnecessarily over-regulated. This proposal would create an independent Board with a significant representation of healthcare purchasers from the employer community.

    Other interest groups take a far broader view preferring to give the Exchange expansive powers to determine which health plans can or cannot be sold, who is or is not eligible to purchase on the Exchange, impose additional fees, etc. All of these ideas will lead to more expensive and less available health insurance – exactly the opposite of how Exchanges were intended to work. An amendment encompassing this view has been filed to S.B. 1313 (Sen. Jeffrey Schoenberg, D- Evanston/Rep. Frank Mautino, D- Peru) and is scheduled to be heard in the House Insurance Committee when the Assembly returns. IRMA and other advocates of a more limited approach will be opposing these amendments.

    It is absolutely vital that whatever is done a ‘first do no harm’ approach is taken. The concern with the amendments to S.B. 1313 is they are an invitation to harm.

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    Robs photoContact Information

    Rob Karr
    Senior Vice President
    Government & Member Relations
    rkarr@irma.org
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    This Week in Springfield – 97-15

    June 7, 2011 – 11:22 am

     

    June 6, 2011

    BUSINESS LIABILITY
    CONSUMER FRAUD
    CREDIT & FINANCE
    HEALTH CARE
    LABOR
    LOSS PREVENTION
    PHARMACY
    REGULATION & LICENSING
    TAXES

    This issue of This Week In Springfield reviews the bills of concern to retail which passed to the Governor’s Desk. As always, they are divided by subject category and linked so you can obtain the actual language of the legislation should you desire to explore a bill in greater depth. Should you need additional information, please do not hesitate to contact IRMA.

    BUSINESS LIABILITY

    H.B. 3025 (Rep. Kelly Burke, D- Chicago/Sen. Edward Maloney, D- Chicago) Amends the Personal Information Protection Act related to ‘breach of the security of the system data’. In the event of a breach, establishes notification requirements. Differentiates between those who own the data and those who control the data. Provides that a financial institution under 15 U.S.C. 6801 et. seq. or any person subject to 15 U.S.C. 1681w is exempt from a new Section specifying requirements for the disposal of materials containing personal information.

    IRMA POSITION: Neutral (as amended)
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    CONSUMER FRAUD

    H.B. 3406 (Rep. Marlow Colvin, D- Chicago/Sen. Toi Hutchinson, D- Chicago Heights) Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that any person who offers a rebate to consumers at retail on any merchandise must conspicuously display and clearly disclose to the consumer the type of rebate being offered, whether additional fees may apply on the rebate offered, and the form of remittance that will be provided to the consumer. Provides that a person who violates those provisions commits an unlawful practice within the meaning of the Act.

    IRMA POSITION: Neutral

    H.B. 3513 (Rep. Sandra Piho, R- Glen Ellyn/Sen. M. Maggie Crotty, D- Oak Forest) Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that a person may not print an individual’s social security number on a wristband or on the outside of any file associated with the products or services provided by the person or entity.

    IRMA POSITION: Neutral
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    CREDIT & FINANCE

    S.B. 2063 (Sen. Don Harmon, D- Oak Park/Rep. Karen May, D- Highwood) contains the Prepaid Wireless Surcharge agreement negotiated by IRMA regarding the collection at point-of-sale of the E911 fee.

    IRMA POSITION: Neutral
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    HEALTHCARE

    S.B. 1555 (Sen. William Haine, D- Alton/Rep. Frank Mautino, R- Peru) Creates the Illinois Health Benefits Exchange Law. Provides that beginning October 1, 2013 and in accordance with the federal Patient Protection and Affordable Care Act, the State shall establish a State health benefits exchange to be known as the Illinois Health Benefits Exchange in order to help individuals and small employers with no more than 50 employees shop for, select, and enroll in qualified, affordable private health plans. Sets forth provisions concerning Exchange functions, the Department of Insurance’s and the Commission on Governmental Forecasting and Accountability’s authority, the Legislative Study Committee, Committee studies, and federal action. Creates the State Employee Health Savings Account Law. Provides that, beginning in taxable year 2011, each employer shall make available to each eligible individual a health savings account program. Provides that an employer shall deposit $2,750 annually into an eligible individual’s health savings account. Provides that a trustee or custodian must use the funds held in a health savings account solely (i) for the purpose of paying the qualified medical expenses of the eligible individual or his or her dependents, (ii) to purchase a health coverage policy, certificate, or contract, or (iii) to pay for health insurance other than a Medicare supplemental policy for those who are Medicare eligible. Repeals the Health Care Justice Act. Effective immediately.

    IRMA POSITION: Support

    H.B. 1191(Rep. Greg Harris, D- Chicago/Sen. Heather Steans, D- Chicago) Amends the Illinois Insurance Code. Provides that no group policy of accident and health insurance shall exclude coverage for any routine patient care administered to an insured who is a qualified individual participating in a qualified clinical cancer trial, if the policy covers that same routine patient care of insureds not enrolled in a qualified clinical cancer trial. Provides that if the group policy of accident and health insurance uses a preferred provider program and a preferred provider provides routine patient care in connection with a qualified clinical cancer trial, then the insurer may require the insured to use the preferred provider if the preferred provider agrees to provide to the insured that routine patient care. Sets forth what a group policy of accident and health insurance with a preferred provider program shall reimburse. Provides that a qualified clinical cancer trial may not pay or refuse to pay for routine patient care of a individual participating in the trial, based in whole or in part on the person’s having or not having coverage for routine patient care under a group policy of accident and health insurance. Provides that the provisions concerning qualified clinical cancer trials do not apply to short-term travel, disability income, long-term care, accident only, or limited or specified disease policies. Effective January 1, 2012.

    IRMA POSITION: Opposed (as we are all to all insurance coverage mandates)

    H.B. 1193 (Rep. Greg Harris, D- Chicago/Sen. Heather Steans, D- Chicago) Amends the Illinois Insurance Code. Provides that no recoupment or offset may be requested or withheld from future payments 18-months or more after the original payment is made with some exceptions related to fraud. Requires certain information by displayed on the insurer’s demand for recoupment or offset.

    IRMA POSITION: Neutral (as amended)

    H.B. 1530 (Rep. Lou Lang, D- Chicago/Sen. William Delgado, D- Chicago) amends the Illinois Insurance Code to require insurance companies to offer coverage to customers. Puts mental health coverage on the same level as medical coverage. Mandated coverage for autisim and habilitate care was removed from the legislation in a Senate amendment.

    IRMA POSITION: Neutral (as amended)

    H.B. 1825 (Rep. Ann Williams, D- Chicago/Sen. Heather Steans, D- Chicago) Amends the Illinois Insurance Code. Provides that accident and health insurance policies that provide coverage for prescribed orally-administered cancer medications and intravenously administered or injected cancer medications shall ensure that the applicable financial requirements and treatment limitations are no more restrictive than the financial requirements and treatment limitations applied to intravenously administered or injected cancer medications that are covered by the policy. Provides that an insurer cannot achieve compliance with the coverage mandate by increasing financial requirements or imposing more restrictive treatment limitations on prescribed orally-administered cancer medications or intravenously administered or injected cancer medications covered under the policy.

    IRMA POSITION: Opposed
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    LABOR

    S.B. 1122 (Sen. Terry Link, D- Lake Bluff/Rep. Jack Franks, D- Woodstock) Amends the Illinois Human Rights Act. Adds an employment discrimination prohibition that provides that it is a civil rights violation for any employer to refuse to hire, to segregate, or to act with respect to recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure or terms, privileges or conditions of employment on the basis of pregnancy, childbirth, or related medical conditions. Provides that women affected by pregnancy, childbirth, or related medical conditions shall be treated the same for all employment-related purposes, including receipt of benefits under fringe benefit programs, as other persons not so affected but similar in their ability or inability to work. In provisions concerning charges other than in real estate, modifies procedures for cases in which both the Equal Employment Opportunities Commission and the Department of Human Rights have jurisdiction. Describes how those cases shall be processed and what rights a claimant has under various types of dispositions of the charge, including a request for a Department investigation using the EEOC file. Provides that the time limits under the Act are tolled until the EEOC issues its determination. Makes other changes. Effective immediately.

    IRMA POSITION: Neutral

    H.B. 1698 (Rep. John Bradley, D- Marion/Sen. Kwame Raoul, D- Chicago) contains the most significant reform of Illinois’ workers’ compensation system since 1975. Conservative estimates put the savings to employers at $500 million.

    IRMA POSITION: Support
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    LOSS PREVENTION

    S.B. 151 (Sen. Tim Bivins, R- Dixon/Rep. Jim Sacia, R- Freeport) Amends the Criminal Code of 1961. Provides that a person commits identity theft when he or she knowingly uses, possesses, or transfers a radio frequency identification device capable of obtaining or processing personal identifying information from a radio frequency identification (RFID) tag or transponder with knowledge that the device will be used by the person or another to commit a felony violation of State law or any violation of the Identity Theft Law. Provides that, in addition to other elements of the offense, aggravated identity theft consists of the proscribed conduct. Establishes penalties.

    IRMA POSITION: Support

    H.B. 1220 (Rep. Michael Zalewski, D- Summit/Sen. Ron Sandack, R- Lemont) in addition to other provisions related to other provisions related to the impoundment of vehicles, allows for the impoundment of vehicles used in the commission of felony retail theft.

    IRMA POSITION: Support
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    PHARMACY

    S.B. 335 (Sen. Heather Steans, D- Chicago/Rep. Michael J. Madigan, D- Chicago) is the Budget Implementation Act. It contained language amending the State Prompt Payment Act extending from 60 to 90-days the time the State has to pay a bill before the 1% interest beings to accrue.

    IRMA POSITION: Neutral

    S.B. 670 (Sen. Dan Kotowski, D- Park Ridge/Rep. Elaine Nekritz, D- Des Plaines) Amends the Pharmacy Practice Act. Provides that if a pharmacist substitutes any generic prescription in place of a brand-name anti-epileptic drug, then the pharmacist shall provide written notice to the patient no later than the time the prescription is dispensed.

    IRMA POSITION: Neutral

    H.B. 1338 (Rep. Robyn Gabel, D- Evanston/Sen. William Delgado, D- Chicago) Creates the Immunization Data Registry Act. Provides that the Department of Public Health may develop and maintain an immunization data registry to collect, store, analyze, release, and report immunization data. Sets forth purposes for which the registry may be used. Sets forth provisions concerning the provision of immunization data to the registry, confidentiality, and the release of information. Establishes immunity for certain entities from civil and criminal liability for certain actions. Provides that a person who knowingly, intentionally, or recklessly discloses confidential information contained in the immunization data registry in violation of the Act commits a Class A misdemeanor. Makes other changes. Effective on July 1, 2011.

    IRMA POSITION: Neutral

    H.B. 2056 (Rep. JoAnn Osmond, R- Antioch /Sen. Suzi Schmidt, R- Lake Villa) Amends the State Finance Act to create the Household Pharmaceutical Disposal Fund as a special fund in the State treasury.. Provides that a law enforcement agency may collect pharmaceuticals from residential sources and transport those pharmaceuticals to an incinerator permitted by the Environmental Protection Agency to be incinerated in accordance with the permit, permit conditions, the Act, and rules adopted under the Act. Provides that the portion of a site or facility that is used to incinerate pharmaceuticals in accordance with these requirements is exempt from regulation as a pollution control facility. Authorizes a law enforcement agency to collect pharmaceuticals from residential sources and to incinerate the collected pharmaceuticals in a manner that is consistent with rules adopted by the Agency. Authorizes the Department of State Police to use moneys in the Household Pharmaceutical Disposal Fund to make grants to local law enforcement agencies for the purpose of facilitating the collection and incineration of pharmaceuticals from residential sources. Defines “law enforcement agency”. Amends the Unified Code of Corrections. Requires 5% of the penalty levied against persons who commit specified drug offenses  be collected by the Circuit Clerk and remitted to the State Treasurer for deposit into the Household Pharmaceutical Disposal Fund.

    IRMA POSITION: Support

    H.B. 2089 (Rep. Wayne Rosenthal, R- Litchfield/Sen. W. Sam McCann, R- Carlinville) Amends the Illinois Controlled Substances Act. Adds MDPV and certain cannabinoids to the list of Schedule I controlled substances. Effective immediately.

    IRMA POSITION: Support

    H.B. 3042 (Rep. Robert Pritchard, R- Sycamore/Sen. Jacqueline Collins, D- Chicago) Amends the Illinois Controlled Substances Act adding certain cathinone derivatives to the list of Schedule I controlled substances.

    IRMA POSITION: Support

    H.B. 3090 (Rep. Louis Arroyo, D- Chicago/Sen. William Delgado, D- Chicago) Amends the Safe Pharmaceutical Disposal Act. Provides that any city, village, or municipality may authorize the use of its city hall or police department to display a container suitable for use as a receptacle for used, expired, or unwanted pharmaceuticals. Provides that the used, expired, or unwanted pharmaceuticals may include unused medication and prescription drugs. Provides that the receptacle shall only permit the deposit of items, and the contents shall be locked and secured. Provides that the container shall be accessible to the public and shall have posted clearly legible signage indicating that expired or unwanted prescription drugs may be disposed of in the receptacle.

    IRMA POSITION: Support

    H.B. 3449 (Rep. Frank Mautino, D- Peru/Sen. Tim Bivins, R- Dixon) Amends the State Comptroller Act. Provides that State payments for an employee’s payroll or an employee’s expense reimbursement must be made through direct deposit. Sets forth exceptions, including collective bargaining agreements and hardship. Provides that all State payments to a vendor that exceed a certain allowable limit of paper warrants in a fiscal year, by the same agency, must be made through direct deposit. Exempts the legislative and judicial branches of State government from these requirements. Provides that, if a State agency fails to meet the direct deposit requirements, the Comptroller may charge the employee or vendor a processing fee of $2.50 per paper warrant. Amends the State Prompt Payment Act. Provides that an individual interest penalty for a late payment owed by the State amounting to $5 or less shall not be paid by the State, except for certain claims under Article V of the Illinois Public Aid Code, the Covering ALL KIDS Health Insurance Act, or the Children’s Health Insurance Program Act to the Department of Healthcare and Family Services. Effective immediately.

    IRMA POSITION: Support
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    REGULATION & LICENSING

    S.B. 1943 (Sen. William Delgado, D- Chicago/Rep. Naomi Jakobsson, D- Urbana) amends the Lead Poisoning Prevention Act with clarifications and definitions IRMA and others have sought for two years.

    IRMA POSITION: Support

    H.B. 1284 (Rep. Monique Davis, D- Chicago/Sen. William Haine, D- Alton) Creates the Portable Electronics Insurance Act. Requires vendors of portable electronics to hold a limited-lines license to sell or offer coverage under a policy of portable electronics insurance. Provides that a limited-lines license issued under the Act shall authorize any employee or authorized representative of the vendor to sell or offer coverage under a policy of portable electronics insurance. Establishes requirements for the sale of portable electronics insurance. Sets forth the conditions under which a vendor of portable electronics shall not be subject to licensure as an insurance producer under the Illinois Insurance Code. Sets forth provisions concerning billing, suspension or revocation of license, termination of insurance, and application for licensure. An IRMA amendment exempted service contracts and ensured that the license is only needed if the retailer chooses to offer this insurance.

    IRMA POSITION: Neutral (as amended)

    H.B. 1494 (Rep. Dan Reitz, D- Sparta/Sen. M. Maggie Crotty, D- Oak Forest) Amends the Illinois Optometric Practice Act of 1987. Adds anti-dry eye agents and agents for the treatment of hypotrichosis to be included in the definition of “ocular pharmaceutical agents”. Provides that the Board may add a pharmaceutical agent approved by the FDA or class of agents for the purpose of the diagnosis or treatment of conditions of the eye and adnexa after consideration of the agent’s systemic effects, side effects, and the use of the agent within the practice of optometry. Provides that the Board shall consider requests for additional agents and make recommendations within 90 days after the receipt of the request. Provides that within 45 days after the Board’s approval of a pharmaceutical agent or class of agents, the Department shall promulgate rules necessary to allow for the prescribing or administering of the pharmaceutical agent or class of agents. Effective immediately.

    IRMA POSITION: Neutral

    H.B. 1973 (Rep. Angelo “Skip” Saviano, R- River Grove/Sen. M. Maggie Crotty, D- Oak Forest) Amends the Illinois Optometric Practice Act of 1987. In provisions concerning fee splitting, removes language allowing an entity organized under the Limited Liability Company Act to practice optometry through or within any form of legal entity authorized to conduct business in Illinois or from pooling, sharing, dividing, or apportioning the professional fees and other revenues. Provides that a licensed hospital or hospital affiliate or an entity that is a licensed ambulatory surgical treatment center owned by an Illinois-licensed physician or optometrists may practice optometry through or within any form of legal entity authorized to conduct business in Illinois or apportionate professional fees or revenues. Effective immediately.

    IRMA POSITION: Neutral

    H.B. 2193 (Rep. Suzanna Mendoza, D- Chicago/Sen. William Haine, D- Alton) seeks to do two things. First, it places limits on who can possess products that contain a federally delineated amount of caustic or corrosive acids and it creates a registry at the retail level for purchasers of these products.  The law states that no person can possess a product that is regulated by Title 16 CFR Section 1500.129 of the Federal Caustic Poison Act unless they fall into a number of exemptions listed in the Bill.  Persons engaged in the sale, possession, transportation, or use of such products for their intended commercial purpose, are exempt from the restriction on possession of the product. Second, retailers who sell such products will be required to register customers prior to their sale.  Customers must provide government-issued identification with their picture, as well as fill out a form listing the date and time of the transaction, brand and product names and net weight of the items.  Batteries are exempt from the registry requirements. Importantly, it pre-empts regulation by local government.

    IRMA POSITION: Neutral

    H.B. 2917 (Rep. Barbara Flynn Currie, D- Chicago/Sen. Don Harmon, D- Oak Park) is a negotiated agreement between all parties, including IRMA, rewriting the Illinois Controlled Substances Act.

    IRMA POSITION: Support
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    TAXES

    S.B. 43 (Sen. Susan Garrett, D- Highwood/Rep. Keith Farnham, D- Elgin) Creates the Taxation Disclosure Act. Provides that the Department of Revenue shall make tax rate information available on its Internet website. Provides that information for use and occupation taxes shall include the tax rate applicable in a municipality or the unincorporated area of a county and list the individual rates that comprise the aggregate rate in that municipality or in the unincorporated area of that county. Provides that information for property taxes shall include the name of each taxing district, a list of all funds for which taxes were extended, and the district’s total tax rate. Provides that information for income taxes shall include the individual and the corporate income tax rates. Provides that information for excise taxes shall include the statewide and the local rates. Provides that the information shall be made available in a viewable and downloadable format and shall be updated regularly. Effective July 1, 2012.

    IRMA POSITION: Support

    S.B. 401 (Sen. Toi Hutchinson, D- Chicago Heights/Rep. Dan Brady, R- Normal) Amends the Use, Service Use, Service Occupation, and Retailers’ Occupation Tax Acts. Extends the exemption for centralized purchasing activities from June 30, 2011 to June 30, 2016. Effective immediately.

    IRMA POSITION: Support
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    Rob Karr, Vice President

    Government & Member Relations

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