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Next session dates: House & Senate: May 1-3, 2007
Illinois Business Day: If not now, when?
For decades, the Illinois Manufacturers' Association has hosted annual lobbying events in Springfield. Attendance ebbs and flows each year. However, if you choose not to join your colleagues in Springfield this year, then when?
Illinois Business Day has never been more important — the threats and challenges facing manufacturers have never been greater. Consider the following measures that have been proposed by the Governor and will cost employers nearly $9 billion if enacted:
- A Gross Receipts Tax (GRT) on all businesses doing more than $2 million in sales in Illinois. The GRT would be applied at a rate of 0.85 percent on manufacturing, mining, construction, retail and agriculture. Services will be taxed at 1.95 percent.
- A three percent (3%) tax on your payroll if you spend less than four percent (4%) of your payroll on healthcare. There are no exemptions and employers cannot escape the tax by canceling your current health insurance.
- The GRT will pyramid and compound through all stages of production. It harms all businesses — large and small — from all corners of the state and makes Illinois less competitive.
Business Day represents your chance to speak directly to your elected officials in Springfield. These Representatives and Senators will ultimately decide whether or not these proposals become law. If these proposals are not enough to incite you to action, what will be? If you will not make your voice heard now, then when?
12:30-2:00 p.m. — Luncheon — Governor Rod Blagojevich, Senate President Emil Jones, Jr, Senate Republican Leader Frank Watson, Speaker of the House Michael J. Madigan, and House Republican Leader Tom Cross have been invited to briefly speak. Luncheon attendees will also hear from pollster Neil Newhouse regarding his work on the GRT and other polling questions.
2:00 - 2:35 p.m. — Gross Receipts Tax briefing
2:35-3:05 p.m. — Governor's healthcare proposal briefing
3:10 - 3:30 p.m. — Energy Update
3:30-5:30 p.m. — Visit the Capitol (meet with your elected officials)
5:30-8:00 p.m. — Gala Reception
Sign up today by logging onto the IMA Website at:
http://www.ima-net.org/bizday07.cfm
Energy debate continues to rage
Late last week, after a raucous debate, members of the Senate voted to impose a one-year electric rate freeze on residential customers in the Ameren territory only. This week, members of the House Electric Utility Oversight Committee amended SB 1592 (Forby, D-Benton) to extend the rate freeze to all residential customers in Illinois.
The IMA is deeply concerned about energy supply problems that may arise from a rate freeze aimed only at residential customers. In 1997, the General Assembly passed the deregulation law that split generation and transmission companies. As a result, transmission companies must now purchase power in the marketplace and these companies are locked into legal contracts to buy power. These transmission companies could be forced to sell power at a loss if the legislature freezes rates which will jeopardize their financial status. Ultimately, transmission companies will be forced to buy high-cost power on the daily spot market which will increase costs and threaten their ability to provide electricity during peak times. As a result, Illinois employers could see brownouts similar to those witnessed in California.
This issue continues to be a political "hot potato" that is being tossed back and forth by legislators in both chambers and on both sides of the aisle.
Smoking ban moves closer to becoming law
Despite concerns from some business owners who believe it is unnecessary government intrusion into private business, members of the House moved closer to passing a statewide smoking ban. SB 500 (Link, D-Vernon Hills), which passed the Senate in late March, creates the Smoke Free Illinois Act and bans smoking in public places and private workplaces with exemptions only for hotels and private nursing home rooms. The measure overwhelming passed the House Environmental Health Committee this week. It now has to pass the House and be signed into law by the Governor and Illinois will become smoke free on January 1, 2008.
House creates cell phone lemon law
By a vote of 72-43, members of the Illinois House voted this week to intercede into private contractual relationships by implementing a cell phone lemon law. HB 1958 (Mendoza, D-Chicago) would allow a customer to get out of their contractual relationship, or downgrade the contract, if their cell phone needed repair or replacement three times during the life of the contract. The IMA opposes this legislation because the General Assembly should not be in the process of setting contracts or creating de-facto warranties. The legislation now moves to the Senate for consideration.
Wrongful Death Act changes approved by House
Legislation designed to increase wrongful death awards narrowly passed the House of Representatives this week on a Democratic partisan vote of 63-52. Offered at the request of the Illinois Trial Lawyers Association, HB 1798 (Brosnahan, D-Oak Lawn) will allow jurors to consider grief, sorrow, and mental suffering when awarding damages in wrongful death cases. The bill, which would take effect immediately upon becoming law, is not retroactive and would apply only to causes of action after the law became effective. HB 1798 now moves to the Senate.
Don't miss this opportunity to have your voice heard in Springfield . . .
plan NOW to attend:
Illinois Manufacturers' Association
Business Day 2007
Help defeat the gross receipts tax and the payroll tax proposals
* Wednesday * May 2, 2007 *
* President Abraham Lincoln Hotel * Springfield, Illinois *
Business Day offers the opportunity for you to meet with your elected officials to help drive home our message of job growth and prosperity. With your participation, legislators can more completely understand the impact of their actions on the employers of Illinois.
Register Today!
Visit the IMA web site for additional information and to register: http://www.ima-net.org.
Questions? Call Kimberly McNamara at 800-875-4462, ext. 2109 or email kmcnamara@ima-net.org
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