April 30, 2018
Good afternoon and happy Monday, Illinois Chamber Tech Council members! The Senate is the only chamber in town this week. The House has the week off, but has several subject matter hearings scheduled in Chicago.
UPDATE: MICROPHONE ENABLED DEVICE BILL
Last week I sent out a supplemental email alerting members of an amendment to a bill that would seek to regulate microphone enabled devices.
Senate Floor Amendment 1 to SB 575, sponsored by Senator Kwame Raoul (D - Chicago), would create the "Keep Internet Devices Safe Act."
The amendment would seek to regulate speech recognition and other technologies that use microphones to listen for various environmental triggers.
Digital devices that would fall under this amendment include smartphones, tablets, TV's, computers, cars, toys, home appliances, or any household device that may be used for personal, family, or household purposes that contains a microphone.
In short, the amendment would prohibit private entities from turning on or enabling a digital device's microphone to listen for or collect information unless the user agrees to a written policy that is made available to the public.
The problem with creating such a bureaucracy like this is that we could expect the rate of new innovation to slow considerably. Subjecting businesses to expensive pre-market approval introduces compliance costs and uncertainty that many small firms simply can't bear. Regulation such as this threatens to lock in technology, prematurely predict consumer preferences, and stymie efforts to innovate and ensure global harmonization. And as from former FCC chairman under the Obama Administration, Tom Wheeler once put it, "The pace of innovation on the Internet is much, much faster than the pace of a notice-and-comment rulemaking."
The bill was called in committee late Tuesday evening but did not have the necessary votes to pass. I testified in opposition to the bill as there are several substantive concerns that we have with the current draft. I also reminded members of the committee that
Illinois already has a law on the books dealing with unauthorized personal communications.
The sponsor acknowledged that he needed to clean up some of the language in the bill and likely return the bill to committee with a new amendment. I would also point out that since Tuesday's hearing, five Senator's have been added as co-sponsors. Expect this issue to return to Senate Judiciary before the end of May.
RIGHT TO REPAIR DEAD (FOR NOW)
Speaking of Illinois lawmakers looking to regulate devices,
HB 4747 (D. Harris) is not moving this session.
A proposal that would have forced original equipment manufacturers (OEMs) to give up proprietary diagnostic and repair documentation to third-party vendors and repair shops is not moving this session. The bill as introduced would apply to everything from televisions to tractors, tablets to refrigerators. The Chamber has deep concerns with forcing manufacturers to give up their intellectual property to just about anyone. Warranties, public safety and emissions are critical to a device or piece of equipment.
The bill received an amendment early last week that would exempt off-road equipment such as tractors and backhoes. The sponsor noted in committee that it is his intent to not move the bill this session. Rep. Harris is retiring after his term expires in January. This issue will likely resurface in the future. The Chamber remains opposed.
ATTEMPT TO UNDUE SMALL CELL LAW BAD FOR BIZ
A proposal that would undue a newly enacted law in Illinois is bouncing around the Illinois House. Public Act 100-0585, was signed into law by Governor Rauner on April 12. This new law provided for small cell 5G internet deployment throughout Illinois (outside of Chicago). HB 1187 (Zalewski) includes provisions that would derail 5G deployment, the next broadband wireless technology, and kill thousands of jobs and billions of infrastructure investment.
The Illinois General Assembly spent a year negotiating and passing small cell legislation that will bring huge noticeable investment and benefits to both Illinois consumers and businesses. In that extensive year-long negotiation, the wireless industry agreed to dozens of changes to address the concerns of local governments, resulting in a fair and balanced regulatory framework.
HB 1187 would effectively eliminate the benefits of the recently signed into law, which establishes a uniform statewide process intended to streamline the deployment of small cell wireless facilities to avoid a patchwork of unreasonable and impending regulations.
Statewide deployment of 5G internet will -- over seven years -- will create nearly 100,000 jobs in the state and attract nearly $8.9 billion in investment to Illinois. Realizing these benefits requires an updated regulatory framework that promotes and facilitates small wireless facilities. HB 1187 blocks the way.
BIOMETRIC UPDATE
You may recall me referencing in previous newsletters the Chamber's efforts to streamline the state's biometric statute (aka BIPA). BIPA is the plaintiff-friendly law that seeks major damages on employers for using biometric technology (i.e. fingerprint scans, facial recognition, etc.) for various internal human resource purposes. I've been working with the Chamber's Employment Law Council since the beginning of the year to amend the law to allow employers use of this technology without fear of being sued under the Act. We are meeting with several stakeholders tomorrow morning to discuss our opinions and viewpoints as to what needs to be addressed.
DATA BREACH UPDATE
A proposal to amend the state's data breach notification law may not be going away. SB 3007 (Raould) would amend 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 AG must then report annually to the General Assembly of specified information concerning data breaches on an annual basis.
This is contrary to current law which requires a data collector to only notify the resident "in the most expedient time possible and without unreasonable delay." Current law does not require notice to the AG or a report to the General Assembly (currently only a state agency is required to report to AG if a breach occurs).
The sponsor (and chairman) mentioned in last week's Senate Judiciary Committee hearing that he received a lot of inquiries from groups as to what his intentions were with the bill. He referenced that he still intends to move the bill this session. The Chamber remains opposed.
BILLS FROM LAST WEEK
SB 3291 (Clayborne) passed unanimously out of the Senate. This bill Amends the Illinois Aeronautics Act. Defines "unmanned aircraft systems". Provides that regulation of unmanned aircraft systems is an exclusive power and function of the State. Restricts home rule power (outside of Chicago). The
Chamber supported this bill. It now heads to the House.
BILLS UP THIS WEEK
The Senate is the only chamber this week. At this moment, not much is posted for committees.
Thursday, May 3, the
House Financial Institutions Committee is having a subject matter hearing in Chicago on "Improving access to capital to small and medium size businesses." The Chamber is set to testify on this matter.
Wednesday, May 9th, the
House Transportation: Vehicles & Safety Committee is scheduled to hold a subject matter hearing on autonomous vehicles. Not many details beyond that. From very basic conversations it sounds like Illinois Trial Lawyers Assn. & IDOT will be testifying with a few opportunities for industry. If you or anyone you know that would be good to bring in and talk about liability, please let me know.
