RESERVE ROOMS NOW FOR CICI LEGISLATIVE DAY

Time is running out to reserve your hotel rooms for CICI’s Annual Legislative Day and Reception.  Rooms must be reserved by this Monday, April 2, 2007 to receive the discounted rate.  Reservations can be made by calling the hotel at 1-866-788-1860. 

The Annual Legislative Day and Reception will be held in Springfield, Tuesday, April 24, 2007, at the President Abraham Lincoln Hotel (formerly Renaissance Hotel), with an evening reception of legislators and key government officials at the Sangamo Club.  There will also be legislative visits to the State Capitol.  To register for the event, please go to: http://www.cicil.net/Flyers/Legislativeday07.html

CICI needs your attendance in Springfield.   With the Gross Receipts Tax, 3% Health Insurance Tax, Major Liability Expansions, Pro-Labor Initiatives, Flame Retardant Ban, and other anti-industry proposals, there is no shortage of issues to discuss with your elected officials and they need to hear from you.

Senate Environment and Energy Committee Chairman, Senator James Clayborne (D, E. St. Louis) will be the keynote speaker at the Legislative Luncheon on the 24th. Senator Clayborne will discuss significant environment and energy legislation and issues of importance to Illinois’ chemical industry.

Already a “Who’s Who” of the General Assembly, Illinois Environmental Protection Agency, Pollution Control Board, Emergency Management Agency, Dept. of Agriculture, Office of the State Fire Marshal, Governor’s office, and every other important state agency have indicated they will be attending. As a result, we would like to have a nice turnout of CICI members for the event. Last year, over 250 people attended the CICI reception.

GENERAL ASSEMBLY LEAVES FOR SPRING BREAK

At the time of this writing, the Senate is in session for the last day before their two week Spring Break debating the passage of many bills including electricity rate freezes for residents and small businesses, a $100 million real estate transfer tax, a couple of environmental initiatives, and a few economic incentive bills, including an alternative R & D tax credit and manufacturing exemptions from the natural gas tax.  The House left Springfield last night.   After today, both chambers will not return until the week of April 17.      

SENATE VOTE ON GRT MAY BE IMMINENT UPON RETURN
Senate President Emil Jones (D-Chicago) issued a press release this week announcing his (and apparently his caucus’) support of Governor Blagojevich’s Gross Receipts Tax (GRT) plan.  The press release was simple and straightforward:
 
“I want to clarify unequivocally that I will not call any bill for a vote that raises the income tax or sales tax on people. The GRT will provide statewide property tax relief and put $10 billion more dollars in our education system in Illinois. The GRT is the fair way to fund education and healthcare and to make sure big business is paying its fair share.”  
 
Press reports have also noted that President Jones has stated that he will not allow any other tax increase plans to be called until the GRT has been given a vote.  If the GRT happens to fail, then something else, perhaps his once coveted income tax/property tax swap plan would have to be considered.  

Prior to this press release, the tax swap plan – where all income tax rates are increased, a service sales tax is enacted, tax incentives are eliminated and supposed property tax relief is handed out – was heavily supported by President Jones over the GRT.  Not anymore.

Over in the House, however, this tax swap plan, HB 750 (Miller, D-Chicago), is gaining momentum. The measure advanced out of the House Education Appropriations Committee Thursday morning on a vote of 12 “yes”, 3 “no”, and 6 members abstaining from voting.  This bill now moves to the House Floor where its fate is uncertain but may play a role for the House in negotiating an alternative to the GRT.         
 
If you have not already done so, call your State Senator, especially if he or she is a Democrat.  It is absolutely imperative that you inform them how detrimental this tax scheme may be to your business, your industry and the state’s economic future and to secure a commitment to oppose the GRT.   The GRT will tax manufacturers, mining, agriculture, retailers, construction and wholesalers at 0.5% of their total revenues while all others, i.e. services like law firms and consulting firms, would be taxed at 1.8%.  
 
Ask Senators for a commitment to vote against the GRT the governor is seeking. If you are successful in obtaining a Senator’s commitment that he or she will not vote to implement a GRT, it is important that you contact CICI with this information.  
 
If you do not know who your State Senator is, follow this link and enter your facilities address and contact them in their district offices: http://www.elections.state.il.us/DistrictLocator/AddressSearch.aspx

Also, CICI has posted on its website a GRT and payroll calculator that should ease the efforts of calculating what the GRT and Health Insurance tax proposals could cost.  CICI members can access this calculator by following this link in the full text of this newsletter: http://www.cicil.net/test/GRTPayroll%20Tax%20Calculator.xls

VOTE ON FLAME RETARDANT BAN MAY BE CALLED WHEN HOUSE RETURNS
While only a few of our members manufacture the flame retardant decaBDE (decabromino diphenyl ether), its ban would have serious repercussions for the entire chemical industry.  This product is widely regarded as safe by health agencies around the globe and is a proven flame retardant that has been a component of diminished fire, injury, and casualty statistics around the country, saving the lives of those most vulnerable – children, the elderly, and, of course, firefighters.  No state or any jurisdiction in the country has banned this product and no one can show that anyone has ever been harmed in anyway by this product.  If Illinois can ban this safe and widely used flame retardant from existence, it can probably ban any chemical.  Your products could be next.       

While CICI and many business groups are working hard to defeat this measure, HB 1421 (Nekritz, D-Northbrook), which will likely be called for a vote when the House returns the week of April 17, we need your help in alerting House members as to this bill’s serious consequences. 

It’s imperative that you contact your state Representatives in their district offices and inform of the serious nature this could cause in terms of creating precedence for state only bans on certain products, especially ones that are so ubiquitous and proven to be safe.

If you do not know who your State Representative is, follow this link and enter your facilities address and contact them in their district offices: http://www.elections.state.il.us/DistrictLocator/AddressSearch.aspx

REGRETABLY TRIAL LAWYER AGENDA ALIVE AND WELL

“Deep Pockets” Legislation
This measure, SB 1296 (Cullerton, D-Chicago) seeks to change Illinois law in a very significant way. The goal of the current law is to provide fairness by allowing a jury to determine which people were really at fault for causing an accident and to require minimally responsible parties to pay only their proportionate share of damages. 

However this bill will enable the plaintiff to manipulate the defendant’s liability by preventing the jury from considering the fault of parties with whom the plaintiff chose to settle or dismiss. By manipulating the calculation of fault, the plaintiff’s lawyer will be able to pursue deep pocket defendants and require them to pay more than their fair share of liability. 

This legislation passed the Senate last week on a roll call of 34 “yes”, 23 “no”, and 1 “present”.  The roll call was along party lines, with only one Democrat voting “no”.  The bill now moves to the House where CICI and many other opponents will continue to fight this unfair piece of legislation.
 
Grief Damages
This is another trial lawyer bill, HB 1798 (Fritchey, D-Chicago), aimed at increasing award damages for grief, sorrow and mental suffering in wrongful death cases.  It passed the House Judiciary – Civil Law Committee a couple of weeks ago with 8 “yes” votes and 6 “no” votes and is awaiting further action on the House Floor.  This legislation would not only add damages to the Wrongful Death Act, but in cases where contributory negligence is a factor, the legislation would redistribute any reduction of a contributorily negligent party's damage award to dependents of the decedent. Under current law, reductions based on contributory fault are not paid to anyone.

CICI will be working closely with the Illinois Civil Justice League (ICJL) and many business and industry groups in defeating this and other costly proposals that aim to further erode the state’s system of civil justice for the sake of lining trial lawyers’ pockets.  

Please note that the Chemical Industry Council of Illinois Legislator is not intended to convey legal advice or set forth all legal requirements applicable to particular circumstances.

Headquarters: 2250 E. DEVON AVE., SUITE 239, DES PLAINES, IL 60018 • TEL :( 847) 544-5995 • FAX :( 847) 544-5999
Springfield: 400 W. MONROE, SUITE 205, SPRINGFIELD, IL 62704 • TEL :( 217) 522-5805 • FAX :( 217) 522-5815