IVCA Provides Updates for State and Federal Legislative Issues - 09.27.17

IVCA Provides Updates for State and Federal Legislative Issues

UPDATE provided by Stricklin & Associates on September 27, 2017:

Senate special committee on pension investments sets hearings

On Monday, October 16 and Tuesday, October 17, the Illinois Senate Special Committee on State and Pension Fund Investments will meet in Chicago.  This is a continuation of hearings which have been held annually for several years to evaluate the progress being made by Illinois pension funds and others to use a more diverse pool of managers.

The members of the committee are:

Democratic Senators Kwame Raoul, (co-chair), Daniel Biss, James Clayborne, Jr., Toi Hutchinson, and Iris Martinez. 

Republican Senators are Dan McConchie (co-chair), Michael Connelly, John F. Curran, Paul Schimpf, and Jill Tracy.

Angel tax credit news

Here are some answers provided by the Illinois Department of Commerce and Economic Opportunity to questions IVCA members have asked re the Illinois Angel Investment Tax Credit:

P.A. 100-328 (SB 2012) was signed on August 24th, 2017 renewing the Illinois Angel Investment Tax Credit Program. Since the effective date of the legislation is January 1, 2018, the legislative language prevents DCEO from issuing tax credits if the application was not received in the same year, therefore we will not be accepting 2017 registrations or investments. The Department is in the process of drafting updated rules to administer the program; we expect to adopt the new rules in early 2018. Applications for interested QNBV’s and Claimants may not be available until that time. 

Until the rulemaking process is underway, we will be unable to provide a more detailed timeline.

Further updates will be provided in the newsletter and may also be found here:

https://www.illinois.gov/dceo/ExpandRelocate/Incentives/taxassistance/Pages/AngelInvestment.aspx

Angel tax credit IN the news

http://chicago.suntimes.com/news/j-b-pritzker-firms-got-over-1-9m-in-state-tax-credits-in-four-years-mihalopoulos/

“It diminished a little bit of a very high risk,” Pritzker says of the tax credits his companies got. “This is one way I believe we, as Democrats, should stand up for job creation.”

The program began in 2011 and lapsed at the end of last year. But last month Rauner signed a bill to restart the initiative in 2018.

Edge Credit signed

On September 18 Governor Rauner signed HB 162 which is one of Illinois’ primary job creation-job retention programs.

https://www2.illinois.gov/Pages/news-item.aspx?ReleaseID=14818

Last one out turn off the lights

Illinois Attorney General Lisa Madigan and Illinois House Majority Leader Barbara Flynn Currie both announced plans not to seek re-election in 2018.  The AG and Majority Leader cited various factors for their decisions, including a record of accomplishment during their time in state government, and their announcements sent shock waves through the political system in Illinois.  Leader Currie has been in the General Assembly since 1979.  AG Madigan was elected to the Illinois Senate in 1998 then as AG in 2002, 2006, 2010, and 2014.  Most observers have agreed this signals that Illinois House Speaker Michael J. Madigan intends to continue in his role as Speaker.

The AG announcement set of a chain of events, including the announcement that Illinois State Senator Kwame Raoul would run for AG (he does not have to relinquish his state senate seat), while Illinois State Rep. Scott Drury stepped out of the Democratic primary for Governor and into the primary race for AG.  The Republican party is lining up behind Erika Harold, a University of Illinois, Harvard Law graduate and former Miss America who is an attorney in Champaign County

Illinois Senate Majority Leader James Clayborne, who represents a senate district in downstate Metro East, also announced he would not stand for re-election in 2018.  In addition to a variety of roles, Leader Clayborne has a seat on the Senate Special Committee on State and Pension Fund Investments.  Leader Clayborne is also a board member of the Illinois State Board of Investment and the General Assembly Retirement System of Illinois.

Amazon?

Chicago and Illinois leaders are competing for the second headquarters location for Amazon, dubbed HQ2.  Reports suggest the winning location would be in line for 50,000 jobs with an average annual compensation of $100,000.  The City of Chicago dispatched a team to Seattle to scout the Amazon presence there and Mayor Emanuel has pledged the support necessary to make Chicago an attractive location.  Suburban locations such as Oak Brook and similar-sized cities in the Chicago suburbs argue they would be an ideal home, as has Kankakee County.  Governor Rauner has made winning the headquarters a priority for his administration as well, but also picked up mild criticism from Crain’s for saying the state would assist the efforts of St. Louis and the downstate Illinois communities who might benefit from that location if selected.

"St. Louis has some benefits that they bring in terms of their overall package, and we want to make sure Illinois is positioned to be a great benefactor of that," Rauner said. "But the home run for us and the real focus is ... metro Chicago."

http://chicagotonight.wttw.com/2017/09/20/illinois-and-amazon-test-state-s-leaders

 

Bonds for Bill Backlog

Vendors to the State of Illinois are owed between $15 and $16 Billion depending on the day of the week you check the Comptroller’s Daily Ledger.  To address that mountain of bills the state is proceeding with a bond sale of approximately $6B.