IVCA Provides Updates for State and Federal Legislative Issues - 02.28.18

IVCA Provides Updates for State and Federal Legislative Issues - 02.28.18

 

IVCA Illinois Legislative Report
David Stricklin / Stricklin & Associates
February 28, 2018
 
PRIVILEGE TAX BILL RE-INTRODUED IN SENATE
 
In addition to HB 4293 IVCA members should bookmark SB 3189 (Biss) which is the Senate version of the 20% “privilege tax” for the 2018 session.  A link to the bill is here:
http://www.ilga.gov/legislation/BillStatus.asp?GA=100&DocTypeID=SB&DocNum=3189&GAID=14&SessionID=91&LegID=110869 
HB 4293 has been referred to the House Committee on Revenue and Finance; Growth, Reform & Fairness Subcommittee.  There is a committee hearing scheduled for March 1 but at this point we’ve been advised the subcommittee will not hear the bill this week.  We remain vigilant working with our coalition of opponents to argue against the bill.  IVCA members have responded enthusiastically by submitting dozens of slips in opposition to HB 4293.  Please continue to ask your colleagues at your firm and others who support a vibrant VC/PE community in Illinois to express their opposition, contact their local state rep and senator, and fill out a witness slip opposing the bill.  You can see that here:
http://www.ilga.gov/house/committees/hearing.asp?CommitteeID=2210&GA=100 
SB 3189 has not yet been referred to a substantive committee, so we can’t yet actually fill out a witness slip opposing the bill, however, you can certainly let your senator know you oppose the bill!
 
ILLINOIS TREASURER ADVANCES TDA LEGISLATION
 
The office of Illinois Treasurer Michael Frerichs is working with Illinois State Senator Don Harmon (D-Oak Park) on SB 3205 which would create the next iteration of the Technology Development Account.  IVCA is in discussions with the Treasurer regarding certain provisions we would prefer in the bill, and the process is in its initial phases.
http://www.ilga.gov/legislation/BillStatus.asp?GA=100&DocTypeID=SB&DocNum=3205&GAID=14&SessionID=91&LegID=110900  SB 4205 has been sent from the Committee on Assignments to the Senate Committee on Commerce and Economic Development.  The member of that committee most familiar with IVCA issues is Senator Chris Nybo (R-Elmhurst).
 
GOVERNOR TRAVELS TO DC ATTENDS “JANUS” HEARING
 
A U.S. Supreme Court case commonly referred to as “Janus” was argued Monday with the Illinois Attorney General presenting arguments against the legal claim and Governor Rauner making a high-profile visit to the Court to hear oral arguments.  The Janus case is reflective of a key argument made by the governor that public employee unions have too much power and influence and they are hurting Illinois’ economy and government.  A more complete rundown of the legal issues involved and the political implications for Illinois is here
http://www.chicagotribune.com/news/local/politics/ct-met-bruce-rauner-scotus-janus-afscme-20180226-story.html 
 
CAPITOL/POLITICAL WORKPLACE ENVIRONMENT REMAINS HEADLINE NEWS
 
Democratic candidates for governor in the March 20 primary responded to varying degrees including calls for him to resign in the wake of recent news of incidents of sexual harassment or offensive behavior by individuals associated with the political offices of Speaker Madigan.
https://chicagotonight.wttw.com/2018/02/19/democratic-candidates-governor-want-madigan-resignClaims made by a political worker against a member of the Speaker’s political team led to the ouster of the brother of a Chicago alderman
http://www.chicagotribune.com/news/local/politics/ct-met-madigan-attorney-harassment-20180223-story.htmland subsequent allegations resulted in the Speaker ousting another individual close to his organization
https://chicago.suntimes.com/news/shaw-decremer-madigan-operative-removed-inappropriate-behavior/As a one result, a committee of three prominent women in Illinois Democratic politics were named to help guide a process of improvement
http://www.chicagotribune.com/news/local/politics/ct-susana-mendoza-michael-madigan-harassment-20180226-story.html 
GUBERNATORIAL UPDATES
 
An expensive primary race for the nomination for governor ends March 20.  As we begin to see election day in sight, the Democratic race by all accounts is fairly competitive, with J. B Pritzker holding a lead in most if not every poll, but with Chris Kennedy and Daniel Biss enjoying bursts of momentum which make the race an open question at this time.  On the Republican side, State Rep. Jeanne Ives (R-Wheaton) has spared no criticism for the governor and has managed to earn endorsements from some members of the Illinois General Assembly and raise some money from prominent Republican donors.  At this point the available polling suggests Governor Rauner has a significant lead.