The weather forecasters were spot on this time, and hopefully everyone is surviving the “Snowpocalypse”. We made a snowman in the backyard and my two-year-old is mad the thing won’t talk- thanks Frozen.
For those of you that believe in omens, this week was Groundhog Day and in New Jersey the groundhog…died. RIP Milltown Mel. Not sure what to make of that prediction.
Blame it on the approaching deadlines, or me being stuck inside, but you might want to grab a cup of coffee for this one- it is longer than most.
Governor J.B. Pritzker Gives State of the State and Budget Address
Despite the snow, the Governor made it to the Old State Capitol to give the annual State of the State and Budget Address. These are historically two separate speeches, but Pritzker has combined them into one since his first year.
The speech was one of the most upbeat characterizations of the state’s finances in over a decade and there is indeed much to be hopeful about. There are many fiscally responsible ideas in this address that need to be applauded: building up a rainy-day fund, paying longstanding debts and a commitment to help the battered unemployment trust fund. The use of ARPA funds has been one of the top priorities of the Chamber this year. I would not be surprised to see the state get another credit rating upgrade if the plan is carried out by the General Assembly. Remember that the Governor proposes budgets, but it is the General Assembly that has the power to pass them.
Future of Work Task Force Meets for 5th Time
The Future of Work Task Force had its fifth meeting this week. This meeting’s topic was labor laws and to be honest, it was far from my favorite.
First, we heard from Professor Nik Theodore. He presented the results of a study that showed labor laws were routinely being flouted in Illinois and workers were being exploited to the tune of tens of millions. He said that 90% of injured workers were not compensated, 76% are not being paid for OT and 26% RW experiencing outright pay fraud. It was all quite sobering.
It was only under questioning that it was revealed that this frightening survey results were obtained in 2008! That dates back to the presidency of George W. Bush. It ignores a laundry list of Illinois laws passed in the meantime including minimum wage increases, overhauling workers’ compensation, and strengthening the wage payment and theft act. You cannot make public policy on laughably outdated data. In fact, Mr. Theodore’s Accounting Department will surely have a term for that GIGO- garbage in, garbage out.
We also heard from an official with the Illinois Restaurant Association. He was supposed to talk about the future of that industry. Instead, he went on a rant about the gig economy and food delivery services in particular. He called for a complete overhaul of the independent contractor model.
The final speakers included Jane Flanagan of the Governor’s Office who gave a nice overview of the labor laws already on the books and Chase Rehwinkel, Illinois’ Banking Director.
I am more optimistic about next month, where the focus will shift to employee benefits. The CEO of PayPal and Dalene Bramer from Uber will address the group.
The task force is looking at some far ranging ideas and will release a report in May. I will be able to review and edit some portions – subject matter includes eliminating sub minimum wage for tip workers, changing the test for independent contractors, and changing the gig economy to look like what was passed and later overturned in California. This would be almost an entire overhaul of IL economy.
If you have data, or anecdotal stories for me to share with the report's authors, that would be most helpful.
Committee Updates
The House Cybersecurity committee cancelled without a hearing again this week. Chamber President Todd Maisch and I were scheduled to testify against Right to Repair. I expect another posting Friday, but I remain skeptical the bill will be called. We will be ready if it is.
Senate Commerce Committee met Thursday at 8:30. The tech bill of interest was Fair Food Delivery Act, SB 2975. This passed out of the committee on a promise by the sponsor to bring it back to the committee with an amendment. We are monitoring this bill closely and remain neutral at present.
BREAKING: Ill. Justices Say Workers' Comp Law Doesn't Bar Biometric Privacy Claims
The Illinois Supreme Court ruled Thursday that the state's Workers' Compensation Act doesn't preempt claims for statutory damages under Illinois' biometric privacy law, obliterating a defense routinely invoked by employers and finally providing clarity for a flood of paused lawsuits to now proceed against companies.
Leader Durkin filed legislation last week on this very issue. More on that below.
New Bills Filed
Below are the bills of interest filed last Friday after our last newsletter was sent. Since Friday was the deadline, this should be the last batch of new bills of interest saving the amendments to shell bills.
BIPA
HB 5396 (Durkin) - Amends the Biometric Privacy Information Act. Provides that if an employee brings an action against an employer under the Act, the employee's entitlement to relief shall be determined as provided in the Workers' Compensation Act.
Broadband
HB 5218 (Elik) - Creates a credit in an amount equal to 50% of the cost of equipment, materials, and labor paid by the taxpayer during the taxable year in order to incorporate or improve broadband service in the taxpayers' primary residence, which must be located in an underserved or unserved area in a county with a population of less than 300,000 people.
Cryptocurrency
HB 5287 (Zalewski)- Provides that, the Department of Revenue may adopt rules for payment by cryptocurrency of any amount due under any Act administered by the Department only when the Department is not required to pay a discount fee or charge to convert the cryptocurrency to United States dollars.
HB 5427 (Mazzochi) - Amends the Blockchain Technology Act. Sets forth provisions concerning the purpose and findings of the Blockchain Technology Act. Provides that a court shall permit discovery of electronic records if the existence or ownership of a digital asset secured by a blockchain is factually in dispute. Sets forth provisions concerning permissible discovery of facts and information concerning digital assets and discovery procedures for digital assets. Provides that a court may order that the party with ownership or control over an account generate a test transaction in an amount not to exceed $1 to prove ownership or control over the account. Provides that a party holding a digital asset where the nature and type of the digital asset is at issue in the case may shield the need for disclosure if it posts security with the court for a comparable value for the digital asset in question if the value of the digital asset can be assessed, or for a value that is reasonably correlated to the estimated value of any judgment. Provides that a party seeking to validate or challenge the nature, accuracy, or propriety of a vote taken in connection with a decentralized autonomous organization shall be allowed discovery sufficient to describe the nature and type of vote or votes being taken. Provides that the provisions are repealed 5 years after the effective date of the amendatory Act. Creates the Digital Asset Discovery Task Force to conduct a review of the court-ordered discovery of digital asset procedures.
Cybersecurity
HB 5243 (Wheeler) - Creates the Cybersecurity Compliance Act. Creates an affirmative defense for every covered entity that creates, maintains, and complies with a written cybersecurity program that contains administrative, technical, and physical safeguards for the protection of either personal information or both personal information and restricted information and that reasonably conforms to an industry-recognized cybersecurity framework.
Electric Vehicles
HB 5160 (Walsh) - Creates the Electric Vehicle Recycling Act. Provides that, within 60 days after the Act's effective date, manufacturers of electric vehicles that contain hazardous components and batteries must begin to implement a collection program that facilitates the removal of hazardous components and batteries from end-of-life vehicles prior to the electric vehicles being flattened, crushed, shredded, or otherwise processed for recycling and to collect and properly manage hazardous components and batteries in accordance with the Environmental Protection Act. Provides that, within 90 days after the Act's effective date, manufacturers of electric vehicles that contain hazardous components and batteries must submit to the Environmental Protection Agency an implementation plan that describes how the collection program will be carried out for the duration of the program.
Email Solicitations
HB 5379 (Didech) - Amends the Electronic Mail Act. Provides that initiators of unsolicited electronic mail advertisements must include an unsubscribe button or unsubscribe link within the heading and closing of every unsolicited electronic mail advertisement so that the recipient of the unsolicited electronic mail advertisement may immediately notify the sender of his or her decision to unsubscribe without taking further action. Provides that provisions concerning unsolicited or misleading electronic mail apply when the unsolicited electronic mail advertisement is delivered to an Illinois resident via an electronic mail service provider's service or equipment located in this State or in another state or territory under U.S. jurisdiction (rather than in this State only).
Online Sales
HB 5578 (Williams) - Creates the Information Disclosure by Online Marketplaces Act. Provides that a third-party seller who, in any continuous 12-month period during the immediately preceding 24 months, has engaged in at least 200 discrete sales or transactions of new or unused consumer products that have resulted in a total of at least $20,000 in gross revenues shall provide an online marketplace with specified information within 24 hours after becoming a high-volume third-party seller. Provides that an online marketplace shall verify information provided by the high-volume third-party seller. Provides that for consumer products offered for sale on an online marketplace by a high-volume third-party seller, the online marketplace shall disclose specified information in a conspicuous manner.
Social Media Speech
HR 637 (Welter) - Urges President Joseph Biden and the United States Congress to enact measures to discourage further restraints on speech by tech companies, such as amendments to Section 230 of the Communications Decency Act of 1996, regulation of digital platforms as common carriers, or legislative limits on tech companies' ability to restrict free speech activity on their platforms.
