IVCA Provides Updates for State and Federal Legislative Issues - 11.22.17

IVCA Provides Updates for State and Federal Legislative Issues - 11.22.17

LEGISLATIVE YEAR CONCLUDES

The Illinois General Assembly concluded its regularly scheduled Veto Session November 9th and is now in recess until mid-January 2018.  Several “oversight” hearings on various topics will be conducted but no legislative activity is scheduled until January 23.

In 2018 Governor Rauner will present his State of the State address on January 31 and on February 14 he will present his budget address for Fiscal Year 2019.

“PRIVILEGE TAX” UPDATE

Legislation to impose a 20% “privilege tax” on capital gains earned by investment managers did not proceed during the second week of the Veto Session and further action will now wait until the legislature convenes in 2018.  With the legislature in recess and legislators working in their district offices for the most part, this is an opportune time to make an appointment to visit with your Representative and Senator to let them know the negative impact HB 3393 and/or SB 1719 would have on business formation and growth in Illinois.  Please contact IVCA Executive Director Maura O’Hara for more insight on how to reach your elected officials and for assistance in registering your opposition to this misguided proposal.

VETO SESSION UPS AND DOWNS

Republican lawmakers in the 2017 Veto Session demonstrated a greater willingness to disagree with the govenor’s veto actions than they had previously;

Out of 39 total vetoes by Gov. Rauner this year, 15 have been overridden, while 22 others stood (and 11 of those died after no action was taken). 

Out of 10 amendatory vetoes, 3 were overridden and no action was taken either way on 4.

Prior to this year, Gov. Rauner had been overridden just once. 

The Governor did prevail on perhaps his single most-important issue when the legislature came one vote short of overriding his veto of a bill to prohibit local “right to work” zones.

More on that here:

http://www.chicagotribune.com/news/local/politics/ct-met-bruce-rauner-veto-scorecard-20171110-story.html

Republican Gov. Bruce Rauner emerged from the General Assembly’s fall session bruised by more than a dozen defeats made possible by rank-and-file lawmakers in his own party, but he survived several veto override attempts on what he called his top priorities.

PENSION DISCLOSURE BILLS IN VETO SESSION

One of the bills where the legislature asserted it prerogative over the governor's veto was SB 1714, which requires consultants to pension funds to disclose efforts to engage investment services from minority owned businesses, female owned businesses, and businesses owned by a person with a disability. The bill passed unanimously in both chambers, and the override motion was unanimous as well.  ‎Now Public Act 100-0542, the effective date is November 8 2017.

Another measure, SB 779, called for disclosure by investment manager of fees and expenses to pension funds‎ using a template developed by the Institutional Limited Partners Association.  The bill narrowly passed the Senate and was pending action in the house when it was identified as a "vehicle" for legislation concerning the Tier 3 pension system, meaning the fee disclosure language was completely eliminated from SB 779.  

SEXUAL HARASSMENT CHARGES OVERSHADOWS VETO SESSION

Specific charges and general concern about sexual harassment and the workplace environment in the Capitol and in state government propelled several legislative measures to the governor’s desk for signature.  Governor Rauner signed new measures to address allegations of sexual harassment into law, but called them “hurried” and “very flawed.”  The Governor “signed both a measure that will require all lawmakers, lobbyists and state employees to undergo sexual harassment training every year beginning next year, as well as a bill that extends the statute of limitations on 27 cases pending before the Legislative Ethics Commission. The signings come about a week after legislators quickly passed both measures amid pressure over the lack of action when it comes to potential ethical complaints involving lawmakers.”  The House Sexual Discrimination and Harassment Task Force meets in Chicago November 29 for a hearing on the issue, which will clearly be an ongoing concern into the legislative session and through to election day of 2018.

GOVERNOR OFFICIALLY THROWS RE-ELECTION HAT INTO THE RING

http://qctimes.com/news/local/government-and-politics/rauner-targets-madigan-in-campaign-stop/article_61d4754a-bd19-5bba-b44f-932926e8a634.html

On the second day of his campaign kickoff, Illinois Gov. Bruce Rauner came to the Quad-Cities on Tuesday, where he continued to train his attention on House Speaker Mike Madigan while calling for a reduction in regulations and taxes.

FILING TAX RETURNS, FILING PETITIONS

Democratic primary frontrunner J.B. Pritzker announced plans to release his income tax records on the date when filing nominating petitions for the office of Governor of Illinois ends December 4.  Candidates are circulating petitions now and the filing period is between November 27 and December 4.  Candidate Chris Kennedy is also expected to release his tax records sometime soon.

Meanwhile Illinois State Representative Jeanne Ives (R-Wheaton) is pressing forward with her primary challenge to Governor Rauner.

BOND SALE PAYS BILLS BUT LEAVE A BIG STACK BEHIND

A $6.5 billion sale of Illinois bonds allowed the Comptroller to pay large tranches of bills owed to Medicaid providers ($3.5 billion) and to medical providers to patients with state employee group health insurance ($4 billion).  Combined with federal reimbursement for a portion of the Medicaid program the state will deploy somewhere near $9 billion before the year is out, but will still be left with unpaid bills of $7 billion.