IVCA Provides Updates for State and Federal Legislative Issues - 03.28.18

IVCA Provides Updates for State and Federal Legislative Issues - 03.28.18

 

IVCA Illinois Legislative Update
Wednesday, March 28, 2018
David Stricklin / Stricklin & Associates
 
VOTERS NOMINATE RAUNER AND PRITZKER
 
Illinois primary voters on Tuesday March 20 nominated Republican Governor Bruce Rauner and Democratic Venture Capital executive JB Pritzker as their nominees for the race for Governor of Illinois – the election to be held November 6 of 2018.  This means two candidates with significant business experience and a deep understanding of the world of PE/VC will be running for the chief executive of Illinois.  It also means that outside groups particularly should be expected to offer unflattering critiques of various investments which have been made by both candidates. 
 
Governor Rauner held off a spirited charge from the more conservative wing of the Republican party in the candidacy of Illinois State Representative Jeannie Ives.  JB Pritzker consolidated his support from a variety of sources and defeated Illinois State Senator Daniel Biss and businessman Chris Kennedy.  More detail and reaction may be found here:
http://www.chicagotribune.com/news/local/breaking/ct-governor-primary-election-2018-results-20180320-htmlstory.html 
TDA 3 LEGISLATION MOVES TOWARD COMMITTEE HEARING
 
iVCA is actively working with the Illinois Treasurer’s office to make small but important changes to the Technology Development Account (Illinois Growth and Innovation Fund) which the Treasurer’s office uses to make investment in Illinois technology companies.  The enhancements to the fund are found in SB 3205, sponsored by Illinois State Senator Don Harmon.  IVCA is in discussions with the Treasurer on amendatory language to the introduced bill which would require investments to be made rather than allowing the office holder overly broad discretion to elect not to invest and miss valuable opportunities.  This has happened in recent years and is one of the improvements IVCA is suggesting.
 
It appears likely the bill will be heard in the Senate Committee on Commerce and Economic Development on Thursday, April 12.  We will keep you up to date on its progress.
 
ILLINOIS LEGISLATURE ON SPRING BREAK / NOTHING FURTHER ON PRIVILEGE TAX
 
This week and the following week the Illinois legislature is on Spring Break, returning to the Capitol the week of April 9.  The two bills which have been introduced to impose a “privilege tax” on capital gains income earned by investment managers are for the moment on hold.  SB 3189 (Biss) is still in the Senate Committee on Assignments, which means it has not been referred to a substantive committee for a possible committee hearing.  HB 4293 (Welch) has been referred to the House Revenue and Finance Committee, and then further to the Subcommittee on Growth, Reform and Fairness.  The next hearing scheduled for the subcommittee is the afternoon of April 11 in the Capitol in Springfield.  We are speaking regularly with legislators to explain to them the negative consequences of these measures and to ask those members opposed to the bills to be more outspoken in their opposition. 
 
One result of the gubernatorial primaries is that both Governor Rauner and Mr. Pritzker have expressed their opposition to the bills, and the candidate who made this a central theme of his campaign was not nominated.  Whether that results in a diminished interest in actually progressing with these bills remains to be seen and IVCA members should not take that for granted or be any less focused on explaining to legislators what’s wrong with these bills.