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New Amendment of Note
SB 1126 (Rezin) SA 1- Creates the “Illinois Age-Appropriate Design Code”. Heads up, this does not apply to solely to social media companies. Please take a look at this language if you operate a website in Illinois. The provisions of this bill apply to any business that is “likely to be accessed by children”.
Floor Votes
HB 3563, DOIT-AI Task Force passed the House 109-0-0. This bill provides that the Department of Innovation and Technology shall establish the Generative AI and Natural Language Processing Task Force investigate and provide a report on generative artificial intelligence software and natural language processing software. Sets forth the members to serve on the Task Force. Provides that the Task Force shall hold at least 5 meetings, and specifies the format and the location of those minimum amount of meetings.
HB 3017, Permitting Portal passed the House 108-0-0. Provides that the Office shall implement reforms to improve interagency coordination and encourage expeditious permit issuance. Provides that the Office shall use information technology tools to track project schedules and metrics in order to improve transparency and accountability of the permitting process, reduce uncertainty and delays, and reduce costs and risks to taxpayers. This bill is the Chamber/IERG initiative to create an online permitting portal for large industrial projects in Illinois.
SB 89, Insurance/Cybersecurity passed the Senate 57-0-0. This bill amends the Illinois Insurance Code. Provides that if the entry of an Order of Liquidation occurs on or after January 1, 2023, then the obligations shall not exceed $500,000 or exceed without any deduction $50,000 for any unearned premium claim or refund under any one policy. Provides that in no event shall the Fund be obligated to pay an amount in excess of $500,000 in the aggregate for all first-party and third-party claims under a policy or endorsement providing cybersecurity insurance coverage and arising out of or related to a single insured event, regardless of the number of claims made or number of claimants.
SB 160, Spoofing passed the Senate 57-0-0. This bill provides that a person, business, or organization may not spoof a caller's information or otherwise misrepresent the origin of a telemarketing call unless the person, business, or organization has the right to use the name and phone number displayed. Requires telephone solicitations placed in a manner other than by a live operator to immediately disclose their identity and the purpose of the call and prompt the recipient of the call to consent to the solicitation.
Some Good BIPA News!
It feels much better to be on the winning side of a BIPA Case. Yesterday the Supreme Court unanimously affirmed the First District in Walton v. Roosevelt, ruling that where a collective bargaining agreement contains a broad management rights clause, and an employer invokes that clause in response to a BIPA claim, “there is an arguable claim for preemption,” and therefore the claim must be handled pursuant to the collective bargaining agreement.
The ruling follows the federal cases that previously held that, where a defendant makes an arguable claim for preemption, the claim is preempted by federal labor law. The practical effect of these decisions is that to bring a BIPA claim, unionized BIPA plaintiffs have to go through the grievance or other similar process required by their collective bargaining agreement. The BIPA plaintiffs’ bar had tried to avoid the federal cases by arguing before Illinois state courts that the federal cases were wrongly decided. Walton puts an end to that strategy.
The Chamber filed an amicus brief in this case and we are very pleased with the outcome.
On the legislative front, Senate Leadership had another round of meetings with groups interested in BIPA reform. I participated last week with a number of other business groups and while nothing was promised, I was encouraged with the discussion. Now if we can see the same sort of progress in the House…
Rulemaking of Note
Broadband: DCEO adopted a new Part titled Broadband Grant Programs (14 IAC 548; 46 Ill Reg 16666) effective 3/3/23, implementing PA 102-699, which requires DCEO to adopt rules for a broadband internet access initiative funded by the federal American Rescue Plan Act (ARPA). The program provides grants to eligible entities for capital improvements that provide broadband access to homes, businesses, and community anchor institutions in underserved areas; that enable broadband innovations for economic development and related activities; or that expand urban broadband access/innovation in qualified cities of 75,000 or more residents. Eligible entities include incorporated businesses or partnerships; political subdivisions (e.g., municipalities, townships, counties); nonprofit organizations; cooperative associations; or limited liability corporations organized for the purpose of expanding broadband access. Public school districts are eligible to apply but may be encouraged to leverage other available federal or education-specific funding prior to receiving an award. Eligible entities must register and be prequalified under the Grant Accountability and Transparency Act (GATA) and grant recipients must report their expenditures as required by GATA. Grant awards are contingent upon available funding and opportunities to apply for grants will be posted on the GATA Grantee Portal. The new Part includes information to be included in applications for grant funding and criteria for awarding grants. Priority will be given to projects that receive more than 50% of their funding from nonState sources (federal, local, or private funds). Those affected by this rulemaking include businesses, municipalities and nonprofits involved in broadband projects. Questions/requests for copies of the 3 DCEO rulemakings: Parts 528 and 691, Garrett Carter, DCEO, 555 W. Monroe, Suite 1200, Chicago IL 60661, 312/ 579-6757, Garret.Carter@illinois. gov . Part 548: Craig Colbrook, DCEO, 607 E. Adams St., Springfield IL 62701, Craig.colbrook@illinois.gov .
Chamber BIPA Webinar
Sean Darke from Dykema will moderate the virtual panel discussion on “The Good, Bad, and Ugly of BIPA!” The panel will focus on recent developments in BIPA lawsuits and best practices to avoid being caught in the wave of lawsuits, which have typically resulted in outsized class settlements. As litigation continues to explode in BIPA, Dykema has assembled a panel to discuss the recent changes to BIPA and recent case law that continues to shape BIPA for companies and legislatures across the country. Concerning is that over 1,000 BIPA lawsuits involve every day workplace issues like time tracking and employee verification. Although we see the ugly in BIPA through litigation, this panel will discuss the positives of biometrics that have been lost during this litigation explosion and how companies should not shy away from using this amazing technology. The panel will also discuss the future of biometrics and the much needed BIPA reform. Join Sean Darke and panel members Abad Lopez from Dykema, Doug O’Gordon from Find Biometrics, and Jake Parker from The Security Industry Association as they explore the “Good, Bad, and Ugly of BIPA!”
Panel Discussion Will Include:
- 2022 case law that reshaped BIPA
- How companies can comply with BIPA to avoid exposure
- How to reform BIPA to work for employees, consumers, and companies
- BIPA and beyond, what does the future of BIPA look like….or should look like
- And More!
Tech Council Members are Free with the code: TECHMEMBER.
Registration: https://ilchamber.org/Event/49277/The-Good-Bad-and-Ugly-of-BIPA/event-details/
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