January 16, 2009
New Pay to Play Law Changes Go to Governor
Before closing out the 95th General Assembly, the House and Senate passed SB 761 this week to exclude transportation-related contracts eligible for federal funding from the ban on political contributions from businesses with and seeking state contracts in excess of $50,000. The exemption was made after the Federal Highway Administration threatened to withhold federal transportation dollars claiming the new ethics law conflicts with federal regulations prohibiting any undue restrictions on competitive bidding.
SB 761 also authorizes the State Board of Elections to use a paper- and e-mail based system to register businesses until the Board is able to implement a searchable, electronic registration database called for in the original law. The Board of Elections issued emergency rules last month that require all businesses with existing state contracts or bids on state contracts with an aggregate value over $50,000 to register by February 2.
Under the new law, all employers seeking business with the state must submit certification of their registration, which renders them ineligible to make any political contributions to the governor and other executive officers responsible for awarding the contract. The governor’s Executive Order No. 3 also extends this ban to any declared candidate for state office, including state political part committees representing a declared candidate.
The Department of Central Management Services currently provides information on their website outlining what vendors need to know regarding the ethics requirements. The document, which can be accessed here, also outlines the additional requirements enforced by the governor’s Executive Order No. 3.
Representative John Fritchey, the primary sponsor of HB 824 (now P.A. 95-971) and SB 761 has agreed to carry a dedicated shell bill in the 96th General Assembly that will eventually host the Chamber’s proposed clean-up language. The Chamber has continued to push for critical changes that ease some of the onerous registration requirements with which many businesses find difficult to comply.
96th General Assembly Gets Underway; Governor Re-Impeached While Senate Moves Forward with Trial Proceedings
The House and Senate opened the doors on a new General Assembly on Wednesday that will quickly make its mark in Illinois’ history books as the Senate moves closer to convicting the governor and ousting him from office. The House already made history late last week with its near unanimous vote to impeach Governor Blagojevich only to re-impeach him shortly after members of the House of Representatives were sworn in to office for the new 96th General Assembly.
Meanwhile, Governor Blagojevich, who now has the dubious distinction of being the first state governor to be impeached in over 20 years, as well as the only governor to have been impeached twice, presided over the Senate’s inaugural activities. The governor, by law, is required to convene the Senate at the start of each new General Assembly.
While the Senate’s Inauguration was marked by an awkward tension, it was also marked by a new spirit of cooperation unlike any that has been seen in that chamber for decades. Both the new Senate President John Cullerton and the new Senate Minority Leader Christine Radogno vowed to move beyond the obstructionist political personalities that have long poisoned the relationship between both parties in the Senate, as well as the Senate’s relationship with the House. The relationship between the House and Senate had all but disintegrated last year with the ongoing fight over the notorious “rules” amendment.
Shortly after the Senate concluded its inaugural activities on Wednesday, the chamber took its first official steps towards the governor’s impeachment trial by delivering the official summons to the governor’s office. Under the Senate’s impeachment trial schedule, the governor has until noon tomorrow to file his appearance and answer to the article of impeachment. The actual impeachment tribunal is scheduled to get underway January 26 and could conclude early- to mid-February.
New Members Welcomed in 96th General Assembly
Both the House and Senate welcomed new incoming freshman members to the 96th General Assembly. In the House, 13 new members were sworn in on Wednesday, including new Democrat State Representatives: Will Burns (Chicago), Keith Farnham (Elgin), Jehan Gordon (Peoria), Deborah Mell (Chicago), Emily Klunk-McAsey (Lockport), Andre Thapedi (Chicago), Mark Walker (Arlington Heights), Michael Zalewski (Chicago), and Eddie Lee Jackson, Jr.(East St. Louis), replacing former State Representative Wyvetter Younge, who passed away December 26.
New Republican State Representatives include: John Cavaletto (Salem), Michael Connelly (Lisle), Kay Hatcher (Yorkville), and Darlene Senger (Naperville).
The Senate also welcomed three new faces, including Democrat Senators Toi Hutchinson (Olympia Fields) and Emil Jones III (Chicago), and Republican Senator Dan Duffy (Lake Barrington).
New 96th General Assembly Legislation of Interest
Although the House and Senate will not begin to address any legislation in the new General Assembly until February, a number of bills have already been introduced that the Chamber will be tracking closely throughout the spring session.
Capital/Infrastructure:
HB 1 (Bradley, J): Increases the state motor fuel tax by 8 cents beginning July 1, 2009 to fund capital improvement projects.
HB 57 (Reis): Creates the Joint Committee on Capital Improvements to develop 5-year plans for the state’s capital improvements needs, as well as analyze construction costs and related budget issues.
Campaign Finance Reform:
HB 24 (Osterman): Places limits on campaign contributions and regulates the solicitation by corporations, labor organizations, and associations of employees and employee families for campaign contributions.
HB 86 (Lang): Requires disclosure in campaign finance reports of all contributions, expenditures, and transfers, regardless of amount (currently, disclosure is only required in amounts that exceed $150 in the aggregate).
Economic Development:
HB 175 (Miller): Authorizes the State Treasurer to segregate up to 2% of the Treasurer’s investment portfolio in the Technology Development Account and further authorizes investments from the account to provide venture capital to help attract, assist, and retain quality technology businesses in Illinois.
Healthcare:
HB 29 (Flowers): Creates the Premium and Loss Data Reporting Act to require all insurers to report all information relating to each accident and health coverage type requested.
HB 152 (Mendoza): Prohibits a health insurance policy that covers immunosuppressant drugs from limiting, reducing, or denying coverage of those drugs if prior to the limitation, reduction, or denial of coverage the insured was using the drug.
Labor Law:
HB 58 (Reis): Provides for Chamber-support workers’ compensation reform.
HB 63 (Fritchey): Applies the prevailing wage to all Enterprise Zone projects and projects under the Economic Development Project Area Tax Increment Allocation Act.
Taxes:
HB 23 (Turner): Extends the exemption for graphic arts machinery and equipment and the manufacturers’ purchase credit, which are both set to expire August 30, until August 30, 2014. This is a Chamber initiative.