IVCA Provides Updates for State and Federal Legislative Issues - 05.10.17

IVCA Provides Updates for State and Federal Legislative Issues

UPDATE provided by Stricklin & Associates on May 10, 2017:


The General Assembly has returned for the final three weeks of the regularly scheduled session-which is set to adjourn on May 31st. 
 
Our focus remains on the 20% privilege tax legislation pending in the Illinois General Assembly.
 
HB3393,  sponsored by Rep. Chris Welch, was slated to be called for a vote the week of 4/31, which was the deadline in the House for bills to be read for a third time.  With strong opposition from IVCA members, the Illinois Bankers Association, the Illinois Chamber of Commerce, and other parties of our coalition, we were able to prevent a vote from occurring. 
 
We, as your lobbying team, are focusing our efforts on Democratic members whom we assess to be open to the arguments against the bill. That process, highlighted by the efforts of Rep. McSweeney, helped keep the proponents under the 60 votes needed to pass the bill in the House.
 
As stated, with Republican legislators unanimous in opposition, our focus has been on Democratic legislators we believe share the concerns of IVCA members, including Rep. Kelly Burke, Rep. Elaine Nekritz, and Rep. Carol Sente, all who have indicated they intend to vote against the bill.
 
Procedurally, this bill has been moved back to the Rules Committee, which means that it must be sent through the committee process once again before it can be read three times and voted on.  It is our understanding that this bill remains a priority for the Illinois Federation of Teachers and the Chicago Teachers Union.  We are continuing to work members and have identified a group of target legislators.
 
The Senate version of the bill, SB1719, was approved by the Senate Revenue Committee on May 4.  Senator Daniel Biss is the chief sponsor and in committee Senator Biss amended the bill to mirror HB 3393, removing the provision that requires certain states to pass similar legislation and instead makes the effective date July 1st.
 
Senator Biss is a member of the Revenue Committee, along with two of the bills’ co-sponsors, Senator Ira Silverstein and Senator Emil Jones III.  Senator Tom Cullerton, who does not usually sit on that committee, was asked to sub for Senator Jones, and provided the sole Democratic ‘no’ vote.  The bill ultimately passed out of committee 5-4, and is now on third reading in the Senate. It does appear to be a priority for Senator Biss and all efforts are focused on contacting Senate members to urge their no votes. 
 
Senator Biss’ other bills, SB 778 to make private equity investments of pensions funds FOIA-able under statute, as well as SB 779, which requires public retirement systems to disclose various expenses and fees that are paid to investment funds, passed out of committee and are on third reading (final passage) in the Senate. 
 
HB 3061 (Rep Will Guzzardi) would require the Illinois Investment Policy Board to identify companies that contract to build a border wall and include those companies in the list of restricted companies for public retirement systems. HB 3061 passed out of committee 7-4, but its progress has stalled in the House and when an original vote failed, it has been placed on postpone consideration.
 
Senator Chuck Weaver unanimously passed SB2012 out of the Senate--which extends the ‘angel tax’ credit to 2021.  It has not arrived in the House, where Representative Carol Sente is the sponsor.
 
There has been increased speculation as to movement of a budget in the Senate.  One prospect is that the Senate may take up the House ‘lifeline’ budget of $800 million, which comes from two funds that do not contribute to the General Revenue Fund’s $13 billion unpaid bill backlog.  The second prospect lies in the ‘Grand Bargain 2.0’, where top Senate leadership in both parties have had increasing conversations in finding an agreement on a full budget.  Senator Bill Brady (R-Bloomington), has been spearheading this process for his caucus, working off of the original negotiated package of bills.  There is a lack of agreement as to further spending cuts or increased revenues to come to a ‘balanced’ budget that addresses both caucuses priorities. 
 
In the House, Speaker Madigan has assigned four of his top leaders to negotiations on non-budgetary items that Governor Rauner has conditioned as necessary for him to support any overall budget package.