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's 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’s proposes budgets but it’s the General Assembly that has the power to pass them.
We do have one major point of contention with the Governor’s budget proposal- his desire to short the Road Fund. Here’s Chamber President Todd Maisch:
"We support the Governor’s proposals that will temporarily lessen the tax burden on Illinois taxpayers, but we believe that his proposed array of tax cuts needs to be revised. Of greatest concern is the Governor’s call to disregard a bipartisan commitment to adequately fund our vital transportation infrastructure. We join our friends in labor in expressing our concern that the Governor’s proposal on the gas tax is an end run around the transportation lockbox amendment.
We are encouraged with the Governor’s confidence in our fiscal future, but his current tax proposals run the risk of being viewed as a one-time election year gimmick.
We hope the administration and the legislature will demonstrate a longer-term commitment to tax relief by enacting the maximum amount of property tax relief that the state can afford over a period of the next five years."
Representative Yednock Files Chamber Permitting Bill
If you have an interest in infrastructure permitting- especially in speeding up the process- we have got a major update for you below. If you aren’t, the tl;dr version is that the Representative Yednock introduced a Chamber bill to help speed up and modernize the permitting process.
The Illinois Chamber of Commerce is working with the Illinois Environmental Regulatory Group (IERG) on legislation to create a program intended to facilitate permitting for projects requiring multiple state permits.
HB5555 (Rep. Yednock, D –Ottawa) is modeled after the federal FAST Act, which has been in place since 2015, and was recently revised in November’s federal infrastructure bill, to facilitate interagency review of NEPA requirements for infrastructure projects. HB5555 would utilize an existing program at DCEO (Office of Business Permits and Regulatory Assistance) but would create a new Interagency Permitting Advisory Committee made up of representatives from regulatory agencies with permitting functions likely to apply to projects enrolling in the program.
The IL General Assembly’s Status Page for HB5555 is here.
The full text is available here.
The program itself does not revise any substantive permitting requirements, but rather creates a voluntary mechanism whereby a project sponsor can enroll a project in the program, which includes the following:
- Agencies must coordinate in creating an agreed timetable for issuance of all required authorizations which includes:
- Specifying roles and responsibilities.
- The timeframe for issuance of permits/authorizations.
- Is detailed, but goal is 2 years for all authorizations
- Avoidance/mitigation/minimization strategies.
- Public outreach and coordination plans.
- Disputes to be resolved by the Governors Office of Management and Budget (GOMB).
- Specifies a process for Agencies to later modify their agreed-upon timetable:
- Allows the project sponsor a role in the discussion of whether an extension is acceptable.
- Extension cannot be requested within 30 days of the final deadline.
- Total extensions cannot move the final completion date by more than 50% without approval by GOMB – and requires a report to the General Assembly.
- Requires Agencies to publicly post monthly why if they fail to meet the deadlines.
- Creation of an online dashboard for tracking projects’ permitting status.
- Requires Agencies to affirmatively maintain the information as processes proceed.
- Agencies must affirmatively acknowledge or disclaim any jurisdiction or authority over a proposed project.
- Includes a process to account for project delays on the applicant’s side
- Allows local governments with permitting programs to be part of the process.
- Includes revisions not directly related to the permitting improvement process that would modernize the existing Office of Business Permits and Regulatory Assistance (i.e. use of online communications and creation of information regarding permitting).
The bill continues to be revised as meetings with stakeholders and the various State Agencies are ongoing and as we get additional input from Members. Expected additional provisions/revisions regarding which we’re seeking input include:
- Confirming the adequacy of the definitions of “authorization” and “covered project” – how can we maximize the utility of this program?
- How useful would you find this process if it were in place today?
- Whether the list of Agencies included in the process needs additions?
- Whether GOMB is the appropriate agency to vest with authority to resolve interagency disputes?
- How to fund the program?
- How to increase Agencies’ responsiveness to deadlines/work with DCEO in this program?
We have met with the leadership of influential private sector unions and have received positive feedback. On Wednesday, Senate Transportation Committee Chairman Sen. Villivalam filed to sponsor the bill in the Senate.
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% 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 can’t 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’m 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
On Tuesday afternoon the House Transportation: Regulation, Roads & Bridges Committee held a hearing and took action on a few bills of substance. HB 3124, which establishes a statewide towing database, passed out of committee 12-0-0. HB 3386, which amends the Gasoline Storage Act to allow residential refueling by watercraft passed out of committee 11-1-0. HB 3980, a bill repealing redlight cameras was not called.
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.
Electric Vehicles
HB 5507 (LaPointe) - Removes the $100 surcharge in lieu of the payment of motor fuel taxes added to the registration fee for electric vehicles. Removes the $100 additional fee to identify a vehicle as an electric vehicle.
HB 5571 (Lewis) - Provides that the Capital Development Board shall adopt rules to require that each newly constructed residential building in the State that includes a garage shall provide for sufficient electric generating capacity in the garage to charge an electric vehicle.
Grade Crossing Protection Fund
HB 5233 (Gabel) - Provides that, for fiscal year 2022 and each fiscal year thereafter, $5,500,000 shall be transferred from the Grade Crossing Protection Fund to the Transportation Regulatory Fund (currently, $3,000,000).
Prevailing Wage
HB 5538 (Halpin) - Amends the Prevailing Wage Act. Provides that the provisions of the Act apply to the construction or demolition of public works performed by an employee of a public body engaged in the construction or demolition of public works on behalf of another public body.
HB 5550 (Slaughter) - Amends the Prevailing Wage Act. Provides that the transportation of ready-mixed concrete and the transportation of aggregate or excavated materials shall be deemed to be employment upon public works. Provides that all laborers, workers, and mechanics performing transportation of ready-mixed concrete and transportation of aggregate or excavated materials shall be deemed to be employed in actual construction work upon public works.
Vehicle Emissions
HB 5388 (Gonzalez)- Provides that by August 1, 2022, the Illinois Environmental Protection Agency shall adopt rules to implement the motor vehicle emission standards of the State of California, including the zero-emission vehicle program, and shall amend the rules from time to time to maintain consistency with the California motor vehicle emission standards and federal clean air laws. Provides that such regulations may incorporate by reference the California motor vehicle standards established in final regulations issued by the California Air Resources Board and promulgated under the California Health and Safety Code.
Water
HB 5508 (Mason) - Provides that a municipally owned water utility may not charge a fee to reconnect water following a water disconnection. Limits home rule powers.
