April 16, 2018
Good morning and happy Monday, Illinois Chamber Tech Council members! Last Friday was deadline week for legislation to pass favorably out of committee. Given the deadline, we now have a general understanding of what bills will be a major focus for the remainder of session.
It is also important to note that language can always be inserted into legislation that is out of committee, thus avoiding the deadline.
"RIGHT TO REPAIR" PASSES OUT OF COMMITTEE
The biggest bill coming out of committee last week is
HB 4747
(D. Harris), creating the so-called "Digital Fair Repair Act." This legislation would
mandate open access to machine repair and diagnostic tools, or access to embedded software code to everyone; risking the release of proprietary information. While the sponsor's intent is to go after consumer electronic devices, his bill applies to a broad swath of digital equipment ranging from consumer products to tractors.
Release of the information creates safety and environmental issues as millions of lines of code are critical to emissions and the safety of the equipment. For this reason, embedded software code is copyright protected and U.S. copyright law governs its access.
Intended or unintended consequences of changing the code could result in: unsafe operation of products, violation of emission controls, voiding of warranties, disruption of machine capabilities and performance, less than optimal customer experience, and lack of transparency on changes during resale.
HB 4747 fails to make the appropriate distinction between (1) access to software encoded in machinery or devices and (2) access to diagnostic tools and repair information. Current diagnostic and repair manuals for nearly every product are available to the general public and repair shops. Confidential and proprietary software and coding should be protected.
As mentioned, the bill passed out of Consumer Protection Committee, where it only needed to secure three votes for passage. The bill passed 3-2-0. I testified in opposition to the bill. The bill will likely come back to committee to receive an amendment exempting various industry-specific equipment. The Chamber remains unalterably opposed to this bill and plans to work the roll call vigorously.
RAUNER SIGNS BILL TO BRING 5G WIRELESS TO IL
Last Thursday, Chamber President and CEO Todd Maisch joined Gov. Rauner in his signing of SB 1451, otherwise known as the "small cell bill."
Small cells are lower-profile wireless signal alternatives to traditional cell towers that can be attached to existing structures. Their deployment will help lay the foundation required to support the technologies of the future, such as the next generation wireless systems known as 5G.
Now law, Illinois can create jobs and attract investment in 5G and faster wireless internet service for our residents and employers. The Governor's signature is crucial for Illinois to join the other states throughout the nation who have enacted similar legislation. Full deployment of 5G wireless internet, along with "Internet of Things" and "Smart Cities" technologies that use data to help save taxpayer dollars, will generate enormous economic activity in Illinois. Based on methodology developed by Accenture Strategy, Illinois will enjoy nearly 100,000 jobs created and nearly $8.9 billion in investment over seven years with the approval of this law. The Chamber supported this bill and was instrumental in getting the bill approved by the Illinois legislature.
Video of the signing ceremony can be found here.
BILLS TO NOTE IN COMMITTEE THIS WEEK
As always for a complete list of bills I am tracking, please click
here.
SB 3053 (Cunningham) is our proposal to amend the state's bioemtric statute. You may have seen this Newsletter in the news last week regarding our efforts to amend the state's biometric statute. Many of the reports were erroneously reported and were released without reaching out to the Illinois Chamber. I am working closely with the Chamber's Employment Law Council to push this bill along. This bill is just as much, if not more, of an employment law issue as it is a tech issue. To somehow suggest that one member is the force behind its passage is simply false. A deadline was extended to the bill to keep discussions ongoing. The situation remains very fluid.
SB 3007 (Raoul) Amends the state's data breach notification law, Personal Information Protection Act. Provides that a data collector required to report breaches to more than 100 Illinois residents as a result of a single breach must also report to the Attorney General. Provides that the Attorney General shall report annually to the General Assembly specified information concerning breaches of data security by February 1 of each year. The bill received a committee deadline extension to April 27. The Chamber remains opposed.
HR 655 (Cassidy) urges extreme caution in the pursuit of Amazon.com, Inc.'s new facility. This is a resolution, as opposed to a bill. It is non-binding.
BILLS ADVANCING OUT OF COMMITTEE LAST WEEK
HB 5652 (K. Wheeler) Expands the definition of "computer" to include equipment of cloud-based networks of remote servers hosted on the Internet to store, manage, and process data. Makes the definition of "computer" apply to multiple provisions under the computer fraud subdivision of the Criminal Code. Chamber has no position.
HB 4819 (Williams) Creates the Broadband Procurement and Disclosure Act. Provides that no State broadband purchaser may award any contract to an Internet service provider that includes broadband service unless the contract provides specified terms concerning access to and impairment of Internet services. Requires each Internet service provider to make available on its website a clear and conspicuous statement informing end users of the Internet service provider's network management practices and performance, including commercial terms offered to end users. Provides enforcement and damages provisions. Chamber opposed.
SB 3205
(Harmon) amends the Technology Development Act. Provides that the State Treasurer may segregate a portion of the Treasurer's State investment portfolio that at no time shall be greater than 5% (rather than 2%) of the portfolio, in the Technology Development Account IIa.
HB 5553 (Zalewski) Creates the Blockchain Technology Act. Provides for the permitted uses of blockchain technology in transactions and proceedings. Provides limitations to the use of blockchain technology. Prohibits units of local government from implementing specified restrictions on the use of blockchain technology. Preempts home rule. Chamber has no position.
HB 5611 (Andrade) Creates the Department of Innovation and Technology Act to codify the changes made in Executive Order 2016-001. Creates the Department of Innovation and Technology. Chamber supports.
HB 5547 (Andrade) Amends the Illinois State Auditing Act. Provides that on a biennial basis, the Auditor General shall conduct a performance audit of State agencies and their cybersecurity programs and practices, with a particular focus on agencies holding large volumes of personal information. Provides for the subjects to be assessed by the audit. Provides for the issuance of an audit report.
SB 3291 (Clayborne) 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. Chamber supports.
HB 5335 (Zalewski) Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Provides that, in addition to any other method of payment provided for by law, the Department shall accept payment for any tax imposed by the State and administered by the Department by cryptocurrency. Provides that the Department shall convert such payments to United States dollars at the prevailing rate within 24 hours after receipt of the payment and shall credit the taxpayer's account with the converted dollar amount. Chamber has no position.
BILLS THAT ARE DEAD
HB 4062 (DeLuca) regulated online realtors to require them to use the most updated school data from the state's central website. Chamber opposed.
HB 5125 (Evans) increased the penalty for theft of mail on a porch or stoop. Chamber had no position.
HB 4767 (Arroyo) created a cell phone lemon law. Chamber opposed.
HB 4330 (Yingling) provided that a private entity may not require a person or customer to provide his or her biometric identifier or biometric information as a condition for the provision of goods or services. Chamber opposed.
HB 4131 (Cassidy) would have capped the tax incentives given to Amazon.com, Inc., by the Department of Revenue for the development of a corporate headquarters office in this State at $50,000 for each job opportunity created by the development. Chamber opposed.
