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CHICAGO CITY COUNCIL
The next City Council meeting is 6/27/18.
Sexual Harassment Ordinance:
There is new language from the City attorney that has been agreed on by UNITE HERE and the sponsor, Alderman Michelle Harris (8th Ward), that clarifies in the revised amendment that panic buttons are for those attendants who clean hotel rooms and restrooms. The clarification was needed to address a concern from UNITE HERE that the previous amended language drafted by the City attorney was not agreed on by all parties.
UNITE HERE had secured a copy of the previous amended language and claimed it was a loophole to remove the anti-retaliation language for hotel workers. Although that was not the intention of the City Attorney, Alderman Harris, or IHLA, it caused a delay in the process, and Alderman Harris pledged to continue working with both sides to reach an agreement. Alderman Harris met with UNITE HERE and was pushed by the union to add bartenders and waitresses to the ordinance. She refused and said she was not making any more changes other than what had been agreed upon. IHLA continues to work with Alderman Harris and has asked for an extension to the deadline for panic buttons due to the delay in the process of finalizing the ordinance. The current deadline for hotels to start providing panic buttons to their room attendants is 7/1/18, therefore, we hope to reach agreement on an extension before the next committee hearing and City Council meeting.
Chicago Fair Workweek Ordinance:
This ordinance has gained traction with the election of the union backed and progressive candidates in the March primary election. IHLA has talked to a number of Aldermen about the ordinance and has gained support, but the progressive aldermen tend to be supportive of the union ordinance. The Association is also having conversations with the Mayor's Office to determine his position and the timing of moving an ordinance. There is a possibility that the ordinance may be delayed until after the August recess for a vote in September, after the union negotiations begin in August. The Windy City Works Coalition, formed by IHLA, Illinois Restaurant Association, Illinois Retail Merchants Association, and the Chicagoland Chamber of Commerce is gearing up to fight this ordinance.
Other associations such as The Magnificent Mile Association are working with IHLA and supporting our efforts. The Coalition is prepared to hire a PR firm to work on media placement. An Op-Ed was published in Crain's to counter the union press conference that was held on 5/10/18. IHLA has met with a number of other aldermen including Alderman Thompson (11th Ward), Hopkins (2nd), Scott (24th), Harris (8th), Arena (45th), Reilly (42nd), O'Connor (40th), Lopez (15th), Laurino (39th), Sawyer (6th), Tunney (44th), Munoz (22nd), O'Shea (19th), and Moore (49th). The aldermen have told IHLA that they are receptive to revisions to the ordinance and will not support moving the measure until all of the issues are reviewed in full. However, the union wants to move this soon and will be working this hard. IHLA will continue to lobby the aldermen and recommend that hotel GMs and other supporters send letters to aldermen urging a NO vote. The main four members of the Coalition are meeting regularly and working with the National Restaurant Association on next steps.
Alderman Retirement: Alderman Michael Zalewsky (23rd Ward) retired effective at the end of May. He was chairman of the powerful Aviation Committee, and there are a number of aldermen jockeying to replace him. The job comes with some big responsibilities such as the $8.5 Billion overhaul of O'Hare. Alderman Nick Sposato (38th Ward) is one of the candidates that's already met with the Mayor, and he lives closest to the airport among the aldermen vying for the chairmanship. Alderman Pat Dowell (2nd Ward) is also interested, along with Alderman Ray Lopez, Rick Munoz, and Joe Moreno (1st Ward). The Mayor will pick the new chairman.
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COOK COUNTY BOARD
The next Cook County Board meeting 6/6/18.
The Cook County Board met on 5/16/18 and is scheduled to meet again on 6/6/18. There is no news to report at this time. The Board approved a host of contracts with municipalities on road improvements and approved payments on legal cases, healthcare, and criminal justice. The primary election was on 3/20/18, and two of our friends on the Board, Commissioners John Fritchey (12th District) and Richard Boykin (1st District), were defeated by progressive candidates. At the same time, Donna Miller won the Primary election for Commissioner of District 6. Her husband is former State Representative David Miller, candidate for State Treasurer, and a good friend. Cook County Board President Tony Preckwinkle won the Primary for President and was also named Chairman of the Cook County Democratic Party, becoming the first African American and first woman to be Chairman. She said this term will be her last as President. She will be 75 at the end of her third term.
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ILLINOIS GENERAL ASSEMBLY
LEGISLATION
HB1593 & SB577 | Statewide Panic Button Mandate - IHLA Opposes
While HB1593 passed out of committee, it was not called on the House floor. SB577 was a comprehensive sexual harassment initiative that included panic buttons. The Senate sponsor agreed to withdraw the panic button provisions in SB577 in light of IHLA opposition. The issue is not expected to go away.
HB5046 & SB202 | Fair Scheduling Act - IHLA Opposes
(Penalties for changing work schedules)
Introduced in both chambers, not expected to go forward in 2018. Will be revisited in 2019.
HB5774 | Hotel Employee Human Trafficking Training Mandate
IHLA advocated for major changes. Bill held on floor.
HB4757 | Reducing 10% Hold Back on Local Tourism Dollars - IHLA Supports
Amended to reduce hold back from 10% to 3%. Passed both chambers. Anticipate that the Governor will take action by 9/2018.
HB4990 | Extension of Incentive Grant Program for Midsized Convention Centers
IHLA Supports
Passed both houses.
HB4247
Prohibition on State & Local Government Expenditures on Meetings & Conventions
IHLA Opposes
IHLA was successful in amending tourism-related conventions out. Died in House.
SB2483 | Use of Municipal (Non-home Rule) Hotel Taxes in DuPage Cities - IHLA Opposes
Changes how non-home rule municipalities in DuPage County can spend hotel tax revenue. Passed Senate, not called in House Committee. Expect continued negotiations.
SB36 | Expansion of the Open Meetings Act - IHLA Opposes
This expansion includes, in the definition of public bodies, for-profit and not-for-profit tourism organizations receiving public money. Filed as an amendment on 5/29/18, assigned to Committee and Sub-committee but no hearing. Possible issue in veto session.
HB4987 |Doubling the Liquor Volume that Craft Distillers Can Sell Directly to Customers
Eases other regulations on craft distillers. Heard but not called for a vote in House Committee.
BUDGET
Appropriations for local tourism bureaus increased.
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FY2018 Enacted |
FY2019 Enacted |
Local Tourism Fund
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12% above FY2018 |
| Chicago |
$3,306,200* (+$.4M)
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$3,742,500
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| Bureaus X Chicago |
$15,061,800* (+$2M)
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$17,050,000
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*Actual funding was at 10% less due to current 10% reserve (sweep) provision. HB4757, which has passed both chambers and should be acted on by the Governor no later than 9/2018, will reduce the 10% to 3%.
Appropriations for the Illinois Office of Tourism Reduced & Diverted:
FY2019 saw a continuation of a disturbing trend by the Governor's office and the Illinois General Assembly of decreasing and diverting Tourism Promotion Funds (TPF). Local politics (and a formula for how Local Tourism Funds are distributed) has helped IHLA make consistent gains in local tourism funding from the state. At the same time, the lack of perception of local impact is hurting statewide tourism. Legislators support local tourism because they see the use of local tourism funds in their districts, but most do not appreciate the importance of a statewide Illinois Office of Tourism (IOT) component that markets the state domestically and internationally and enhances local tourism.
That disconnect is encouraging the growth of TPF funds to fill budget gaps and fund special projects whose connection to tourism is tangential. Additionally, IOT's natural constituency is DCEO, the Governor's Office of Management and Budget, and the Governor's Office itself. That constituency needs to be much stronger to turn this trend around.
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FY2018 Enacted |
FY2019 Enacted
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| Tourism Promotion Fund |
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| DCEO Operations |
$11M |
$11M |
| DCEO Trade Office |
$3M |
$2.7M |
| Diversions to Other Agencies |
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| Agriculture |
$0 |
$3M |
| Madison County Racing |
$0 |
$2M |
| Natural Resources |
$4M |
$5M |
| A. Lincoln PM&L |
$0M |
$2.5M |
| Illinois Office of Tourism |
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| Domestic & International* |
$30M |
$25M |
| Statewide Tourism Promotion |
$4.8M |
$0 |
| Tourism Operations |
$4.2M |
$3.8M |
| TAP |
$1.4M |
$1.4M |
| Private Sector |
$1M |
$1M |
| Marketing Part. <1M |
$1.25M |
$1.25M |
| Marketing Part. >1M |
$.75M |
$.75M |
| Incentive Grants |
$1.8M |
$1.8M |
| Film Office |
$1.36M |
$1.1M |
| Grape & Wine |
$.15M |
$.15M |
| International Tourism Fund Grants |
$1M |
$1M |
*Combined in FY2019, sets up the mechanism to potentially reduce state advertising spending in the future and divert more monies for operations. Total new diversions from the TPF: $8.5M Decrease in domestic & international advertising & IOT budget: $9.4M.
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Illinois Hotel & Lodging Association
P: 312-346-3135 | F: 312-346-6036
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