TECHNOLOGY COUNCIL
Newsletter
Tyler Diers

Director, Legislative Relations



630-400-3439
March 4, 2018

Happy Sunday, Illinois Chamber Tech Council members!

SPRINGFIELD: RECAP
The legislature was in session last week. An issue that was raised in last week's newsletter, SB 3005 (Raoul), was not called in committee.  Sen. Raoul's proposal  would amended the state's data breach law (otherwise known as PIPA) to require a data collector to report data breaches of more than 100 Illinois residents to the Attorney General (AG)  within 14 days.  The Chamber was officially listed as an opponent to the bill in committee and remains opposed.  Our opposition stems from the  14 day notification requirement as it is simply not enough time to determine the nature, scope, and details of a breach. 

We are trying to determine if this issue will resurface when the Senate returns to town on the 13th.  Staff and the sponsor are aware of our opposition.  If there is any traction on this bill, I will be sure to keep you all posted. 

On another note, the Hose Revenue and Finance Committee and the House Cybersecurity, Data Analytics and IT Committee held a joint-subject-matter hearing on crypo currency and blockchain.  

The initial hearing was very elementary and was used as an initial introduction to members of the committee on concepts on how the state and local governments can utilize this technology to offer services more efficiently.  The hearing heard testimony from Illinois' Blockchain Business Liaison Jennifer O'Rourke, Department of Innovation and Technology Chief of Staff Tyler Clark,  John Mirkovic with the Cook County Recorder or Deeds, and George Vukovich of FinTank Chicago.  

If this a space that you or someone in your network is interested in, please have them contact me.  The State has continued to show a willingness to work with industry on these initiatives.  

And lastly, last week a bill that would impact several existing and prospective employers passed favorably out of committee.  HB 4081 (Halpin) would require any business that moves out of the state to  notify the state Treasurer of their intention to move a call center or substantial operations out of the state.  If you fail to notice, businesses would be subjected to a $10,000 per day for being in violation of the Act.  It would also cost taxpayers millions of dollars by restricting state agencies' ability to strategically locate call centers throughout the country.  
 
The Chamber opposes this bill as it would severely restrict Illinois' ability to attract and recruit corporate relocation efforts. This bill is under the Tech Council's portfolio as the definition of "call center" is too broadly defined to include IT support, customer service, technical troubleshooting, help desk, order processing, hotlines, and other sales positions.  I testified in committee on how this type of regulation would not help Illinois attract good paying technical support jobs.  The bill heads to the House floor where we will be working to defeat the proposal.  

SPRINGFIELD: THIS WEEK
The House is the only chamber in town this week.  This is the last week the House is in until after the March 20th primary election.  Overall, a relatively light week in tech.  However, here are some of the issues that are posted before committee that I am keeping an eye on:

Cybersecurity, Data Analytics and IT Committee (3/8)
  • HB 5139 (Olsen) creates a regulatory sandbox to enable persons to obtain limited access to the Illinois marketplace in order to test innovations in financial products or services. Provides requirements for approval to enter the regulatory sandbox, the application fee, and approval or denial time, requirements for operating an innovation in the regulatory sandbox and extending a test period. "Sandbox" is a common word in the fintech universe. In the financial industry, the term refers to a mechanism for developing regulation that keeps up with the fast pace of innovation. The concept is also being used in the digital economy arena, to refer to regulatory sandboxes: testing grounds for new business models that are not protected by current regulation, or supervised by regulatory institutions.
Transportation: Vehicles & Safety Committee (3/7)
  • HB 4405 (D'Amico) amends the Freedom from Drone Surveillance Act to allow for law enforcement agencies to use drones to prepare for or monitor safety and security at a large-scale event.  
Consumer Protection Committee (3/6)
  • HB 4062 (DeLuca) amends the Consumer Fraud and Deceptive Business Practices Act to provide that if if an online real estate database provider includes, in its information concerning residential real property located in the State of Illinois, certain information on the quality of schools in which the residential real property is located, the online real estate database provider must use the most recent information available prepared by the State Board of Education.  Those not compliant are found in violation of the Consumer Fraud and Deceptive Business Practices Act.  The Chamber is opposed
  • HB 4767 (Arroyo) would create the Cell Phone Lemon Law.  Provides that if, within the period of a contract for wireless telephone service, a wireless telephone sold in conjunction with a contract for wireless telephone service requires repair or replacement on 3 or more occasions, the consumer may, in lieu of having the telephone repaired or replaced on the third or subsequent occasion: choose to cancel the contract for wireless telephone service without paying any early termination fee, penalty, or charge; or elect to upgrade or downgrade the telephone in accordance with specified provisions.  This bill has been around in previous General Assemblies.  The Chamber is opposed.
Judiciary: Civil (3/6)
  • HB 5125 (Evans, Jr.) amends the Criminal Code to provide that theft of property that is delivered either by US mail or an express company, common carrier, or contact carrier and left on the stoop or porch of a residence is a Class 4 felony. 
Elementary and Secondary (3/7)
  • HB 4291 (Welch) would require Illinois students to complete one semester computer science as a prerequisite for graduating high school.  I have talked to the sponsor on this and he has indicated to me that he will be moving a non-binding resolution instead, encouraging school districts to teach computer science.  The resolution is HR 853.  
Revenue and Finance Committee (3/8)
  • HB 4293 (Welch) is posted for committee once again.  This bill has been around in the past and the Chamber is leading a coalition in defeating the proposal as we did in 2017.  This bill would put Illinois' vital financial service sector and the tens of thousands of jobs it employs at risk by imposing a new 20% tax on partnerships and S corps engaged in the business of conducting investment management services. Illinois has benefited from being a top ten globally-recognized financial hub and many tech start-ups depend on a lively venture capital environment.  Start-ups continually face shortages of capital, and raising taxes on investment management services provided to Illinois based start-ups would reduce investment options for private companies, innovators and small firms getting off the ground.  I am working with the Chamber's Tax Institute on opposing this bill. 
CHAMBER TO HOST WOMEN'S CONFERENCE (3/27) 
Illinois women are Second to No One. On March 27, 2018 join the Illinois Chamber of Commerce at our inaugural conference to harness the experiences, leadership, and aspirations of women in business, politics, and the nonprofit world to explore what it takes to put more cracks in that glass ceiling. Hear from inspiring women who've been through it and take away that energy to blaze your own path. This conference aims to empower our already Strong Women for a Stronger Illinois. Register today, here!





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