A bill previously opposed by the Illinois Chamber last year and defeated in the House has resurfaced. SB 1502 (Hastings/Turner), otherwise known as the "Right to Know Act" has been kicked out of the House Rules Committee and placed on the order of consideration in the House. After its slim passage in the Senate last year, SB 1502 failed to receive the required votes to advance to the Governor's desk. Given the bill failed on the House floor by five votes, the House still has one more chance to take up action on the bill.
If enacted, this bill would require websites and online services to post a privacy policy identifying the categories of personal information they collect and respond to consumer requests for all categories of personal information that was disclosed.
This bill applies to any information that "identifies, relates to, or describes" an individual. It includes things like a person's name, address, or photograph, but also "deidentified" or anonymous information such as "alias, nickname, and user name," or IP addresses.
The proposed legislation would require small businesses across our state to create massive databases of personal information about their online customers/users that would not otherwise have to create or collect. Many businesses will also have to pay extra to keep these databases secure from hackers and identity thieves, hire or train staff to respond to consumer requests and purchase more insurance in case of a data breach.
The Chamber is opposed to this legislation as it would add increased costs to small businesses, employee training and insurance costs. If business owners do not comply in the exact way this legislation is written, they could be forced into expensive and superfluous lawsuits.
Many businesses will be forced to hire lawyers to draft privacy policies for their websites that ultimately don't benefit consumers.
It is unclear at this moment whether or not if and when this bill will be called. The Chamber team is monitoring the situation and will provide information as it becomes available.
We have broadened our coalition and are working with other groups in Springfield to make this change a reality. Far too many businesses have been involved in frivolous lawsuits stemming from BIPA. We believe our approach will stop the floodgates and correct abuses that currently exist in the law.
A Data Center is the mission critical infrastructure behind the storage and transmission of data that empowers computers, smart-phones, hand-held devices, tablets, laptops, GPS systems and other computer-centric devices. Nearly every corporation operates a Data Center either in-house or as a contracted service.
Data Centers are unique and require huge up-front expenditure in construction and ongoing capital investment, as most Data Centers upgrade their IT systems and servers on a 2-5-year schedule. Both the initial construction and the "refresh" require skilled craftsmen and technicians and a robust supply chain. A Data Center is essentially a manufacturing plant under constant renovation requiring huge capital outlays.
As the world's economy continues its affinity for, and its reliance upon, information and data through traditional, as well as "Cloud" computing, the need for facilities to store and transmit the ever-expanding universe of data will continue to grow.
Data Centers have been found to provide a net gain to states enacting these types of incentives. The constant construction investment, real estate taxes, telecommunication taxes, corporate income taxes in addition to the benefits from the high-paying construction and information technology jobs provided by Data Centers are all compelling reasons to try to attract this investment. Data centers can spark development in any part of the State.
Data Centers are economic drivers and are particularly sought after by States for their high paying construction jobs, support for high-tech IT industry jobs, and the catalytic effect on research and development, innovation, and commercialization in hardware, software, and the burgeoning Illinois digital business start-up community.
Data Centers are 21st Century jobs that are sustainable and high-paying. They are job creators and catalysts for additional development of ancillary jobs and increased tax revenues. Just like Illinois has enacted legislation to encourage growth of other industries, such as manufacturing, we need to be looking forward to identify and incentivize jobs of the future in high-tech industries such as Data Centers.
That is why the Illinois Chamber is proposing
HB 5229 (Zalewski). Provides that qualified tangible personal property used in the construction or operation of a certified data center is exempt from the taxes imposed under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act. Provides that certified data centers are exempt from the tax imposed under the Electricity Excise Tax Law.
HB 5229 is posted for the House Revenue and Finance Committee on April 12. If you are inclined to do so, please file a witness slip in support
here.
OTHER BILLS TO NOTE IN COMMITTEE THIS WEEK
For a complete list of bills I am tracking, please click
here.
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. An amendment was filed last week that exempts hospitals from the bill, which are already exempted from the underlying law. The Chamber remains opposed.
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 5125 (Evans) Amends the Criminal Code of 2012. Provides that theft of property that is delivered either by United States mail or an express company, common carrier, or contract carrier and left on the stoop or porch of a residence is a Class 4 felony. Defines "stoop or porch of a residence". Chamber has no position.
HB 4062 (DeLuca) Amends the Consumer Fraud and Deceptive Business Practices Act. Defines "online real estate database provider". Provides that 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. Provides that a violation of those provisions is an unlawful practice within the meaning of the Act. Chamber opposed.
HB 4767 (Arroyo) Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that the new provisions may be referred to as 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. Requires a wireless telephone service provider to give a consumer a written statement of the consumer's rights. Provides that a violation is an unlawful practice within the meaning of the Act. Chamber opposed.
HB 4330 (Yingling) Amends the Biometric Information Privacy Act. Provides that except to the extent necessary for an employer to conduct background checks or implement employee security protocols, 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. Provides that the new provisions do not apply to: (i) companies that provide medical services; (ii) law enforcement agencies; or (iii) governmental entities. Chamber opposed.
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. Provides that nothing in the Act supersedes any obligation or authorization or limits the ability of an Internet service provider to address the needs of emergency communications or law enforcement, public safety, or national security authorities consistent with or as permitted by applicable law. Provides legislative findings. Chamber opposed.
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 has no position.
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 4131 (Cassidy) Creates the Transparency in Economic Development Incentives Act. Provides that any tax incentives given to the company Amazon.com, Inc., by the Department of Revenue for the development of a corporate headquarters office in this State shall be limited to no more than $50,000 for each job opportunity created by the development. Provides that the Department shall have all the powers necessary to implement the Act, including the adoption of rules. Chamber opposes this legislation as it is blatantly in violation of special legislation prohibition and also sets a terrible precedent.
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.
