Next session dates: May 6 - 9, 2008
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This week...
Senate Defeats Income Tax Amendment
Early this week, members of the Illinois State Senate overwhelmingly defeated a proposed Constitutional Amendment (SJRCA 92), sponsored by Sen. Mike Frerichs (D-Gifford) that would have allowed for a graduated income tax in Illinois. Currently, individuals are taxes at a 3 percent rate while corporations pay a 4. 8 percent income tax rate. While the measure would have maintained the current 8 to 5 ratio between corporate and individual income tax rates, it would have allowed the Illinois General Assembly to create a new graduated system of income taxes including higher rates
Only 19 Senators voted in favor of the Constitutional Amendment while 35 opposed the measure. Click here to see the roll call vote. It needed a supermajority, or 36 votes, to pass the Senate. All Constitutional amendments must pass both chambers by May 4 in order to be on the November ballot where it would have to be ratified by Illinois voters.
The IMA applauds members of the Senate Republican Caucus and a small handful of Democrat Senators who opposed this measure. The Governor and lawmakers need to reduce spending, address the serious debt problem and get the state’s fiscal house in order before asking taxpayers to pay more money.
No Vote on Structural Work Act
For the second week, Illinois lawmakers in the House adjourned without taking a final vote to reinstate the Structural Work Act (HB 2094). This trial lawyer initiative would give injured workers two chances to seek financial damages for on-the-job injuries under the SWA and the current Workers’ Compensation Act. New York is the only state in the country that currently has both laws.
The IMA, which successfully led the coalition that helped repeal this duplicative and costly law in 1995, is now fighting its reinstatement. The SWA is an unnecessary and archaic law that is designed solely to lead to jackpot judgments for trial lawyers. Despite claims from proponent, the SWA will not improve worksite safety. Since repeal of the SWA in 1995, the number of worksite fatalities has actually decreased from 20 to 14, a drop of 30 percent, while the number of jobs has increased.
To help stop the Structural Work Act, please contact your respective member of the Illinois House of Representatives as soon as possible. Lawmakers need to understand that this will increase liability costs and make it more difficult to compete in today’s economy.
Senate Democrats Stop Recall Amendment
For the second time in weeks, members of the Senate Democrat Caucus stopped an effort to place a proposed Constitutional Amendment on the November ballot that would allow for the recall of elected officials. The focus on recalling elected officials occurred largely because of issues associated with the current Blagojevich administration.
The latest Constitutional Amendment (SJRCA 70), sponsored by Sen. Dan Cronin (R-Elmhurst) would have allowed voters to recall a wide variety of elected officials including executive branch officers, members of the General Assembly, judges, and local officials including mayors. To initiate a recall election, petition signatures must number at least 12 percent of the votes in the previous election for an executive branch officer or 20 percent of votes for other elected officials. If placed on the ballot, voters in the respective district would have an opportunity to recall an official and elect their successor.
Despite receiving 33 votes, the Constitutional Amendment failed because it needed to attain a supermajority (36 votes). Twelve Democrat Senators joined every Republican Senator in supporting the recall amendment while 19 Democrat Senators opposed the measure.
Two weeks ago, members of the Senate Executive Committee refused to allow a vote on a similar recall amendment (HJRCA 28) that would have allowed for the recall of only Executive Branch officers and state legislators. It had passed the House on a vote of 75-33. With no Constitutional Amendments passing both the House and Senate, there will be no ballot measures to be considered this fall by the electorate.
IMA Job Training Initiative Passes House
Legislation initiated by the IMA in response to concerns from manufacturing companies unanimously passed the House of Representatives this week. Under HB 4470 (Crespo, D-Hoffman Estates), employers and workers who participate in the state’s job training program (ETIP) would be protected from possible identity theft.
Current law requires employers to submit the name, address and social security number of every employee participating in the ETIP program. With the growing problem of identity theft that is the single largest consumer complaint, the IMA-initiated legislation provides that an employer can provide a signed certification instead of social security numbers.
HB 4470 now moves to the Senate for consideration. The IMA appreciates Rep. Crespo for his leadership and all members of the House for their support.
"I need a pay raise. I need a pay raise."
Amazingly, Illinois Senate President Emil Jones (D-Chicago) publicly indicated support for a legislative pay raise despite an economy teetering on the brink of a recession and Illinois facing a $3 billion deficit with slowing revenues. Current economic problems have forced Governor Blagojevich to cut programs and idle construction projects due to a lack of funding.
However, President Jones believes that lawmakers are entitled to a 7 percent raise this year that comes on the heels of a ten percent increase last year. If adopted, the base salary for a legislator would increase to more than $72,000 while the top legislative leader salaries would exceed $100,000. In addition, the Governor’s salary would grow nearly $20,000 to a base level of $190,000.
Under Illinois law, salary recommendations are made by the Compensation Review Board. After the recommendations, both the House and Senate must vote to deny the pay raise or it takes effect automatically. In light of the severe state budget problems and economic situation burdening Illinois citizens, it is unfathomable that lawmakers would vote to increase their pay.
No Movement on PBM Legislation
Despite several more hours of meetings, there was no agreement on legislation proposed by a group of pharmacists that would impose new licensure requirements and regulations on Pharmacy Benefit Managers (PBMs). Introduced in both the House (HB 5614) and Senate (SB 2222), the legislation would seek to allow state agencies to get involved in private contractual relationships between employers and PBMs. Many employers use PBMs to help control health care costs while ensuring a safe supply of pharmaceutical drugs for its employees.
With no agreement in site, it is likely that proponents of the legislation will try and pass the bill over strong objections from the IMA and business and health care communities.
Lead Bill Debated
This week, Rep. Harry Osterman (D-Chicago) offered a new amendment to HB 5789 that seeks to ban the sale or transfer of certain items intended to be used or chewable by children that contain a total lead content in any component part that is more than 0.0004 percent (40 parts per million) unless the items is clearly marked with a warning label. The comprehensive list includes toys, furniture, clothing, accessories, jewelry, decorative objects, edible items, candy, food, or dietary articles.
While the list is comprehensive, it does allow exemptions for components of consumer electronic products that are not reasonably accessible to child through normal use and abuse. Consumer products include, but are not limited to, cellular phones, personal computers, wireless phones, and handheld devices incorporating a video screen. Component parts are not "accessible" if it is not physically exposed due to a sealed covering or casing. However, paint, coatings and electroplating are not considered sealed coverings.
The on-going debate is in response to recent articles and news stories that have focused on the safety of toys, particularly some that have been imported from China.
See you Wednesday in Springfield!
Don't forget, Business Day 2008 is this Wednesday beginning promptly at 12:00 noon. Legislators are anticipating your visits and hearing how their proposals and actions affect the Illinois manufacturing climate. We look forward to seeing you then. Not registered...CLICK HERE for last minute registration.
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