LEGISLATIVE DAY THIS TUESDAY

The Annual Legislative Day and Reception will be this 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.

STATE’S BUSINESSES RALLY AGAINST GRT, SENATE HOLDS HEARINGS, LABOR BACKS OFF FOR NOW

Opponents of Governor Blagojevich’s Gross Receipts Tax (GRT) on business revenues converged in Springfield this Wednesday to rally against the plan with the central theme that the GRT would be devastating to every business and person in Illinois.  Many Illinois companies, mostly small to medium size, gave testimony to a large crowd on the effects the GRT would have on their business.   

After the rally, business owners swarmed the Capitol, taking up most of the seats in a standing-room only committee room.  In the first public hearing on the $7 billion tax plan there was rowdiness and dissent in the committee room as education officials supporting the tax were paraded up to present testimony on their plans for spending billions in earmarked revenue.  It wasn’t until many hours into the hearing that the opponents of the GRT were allowed to speak.  The committee did not vote on the GRT bill, which is an amendment to SB 1 (Jones, E., D-Chicago), but when reporters asked Senate President Emil Jones after the hearing when that might occur, he simply said, "Soon."

A positive development occurred on Wednesday when the AFL-CIO (trade association that represents major labor unions) announced that they backed off the tax plan because the Illinois Federation of Teachers (IFT) became upset at the large numbers of new charter schools outlined in the budget.  President Jones is a big advocate for charter schools.  This adds a new wrinkle to the controversy over the governor's proposal and will most likely be dealt with before the GRT can proceed any further.

All of the angst built up around this proposal has happened because members of the state’s business community and industry trade groups, have been tirelessly calling, e-mailing and writing their elected officials and explaining how devastating this tax would be.  We cannot rest, however, as this fight is long from over.  If you have not done so already, call, e-mail, or write your State Senator or Representative and tell them specifically how this tax would devastate your business.  If you do not know who your State Senator or Representative is, follow this link and enter your facilities address: http://www.elections.state.il.us/DistrictLocator/AddressSearch.aspx

ELECTRICITY RATE FREEZE FOR AMEREN PASSES SENATE

A measure passed out of the Senate late last week that would temporarily freeze electricity rates for Ameren’s residential customers.  An amendment was advanced that would also include ComEd customers but an almost unheard and never used parliamentary procedure was used to keep the amendment off the bill, SB 1592 (Forby, D-Benton).  The bill passed with 35 “yes” votes and 20 ”no” votes and now heads to the House where House Speaker Michael Madigan, who demands rate relief for the entire state, will almost definitely add on the ComEd freeze amendment.  When and if this bill should pass the full House and goes back to the Senate, the bill would either enter into negotiations with Blagojevich, Madigan, and Jones along with many other proposals like tax increases and spending priorities or it will die in the Senate. 

This issue has become a major political issue for legislators in Ameren’s territory because of skyrocketing utility rates. Some elected officials’ political future may hang in the balance if some type of rate relief is not enacted.

CICI’s primary concern with any electricity rate freeze is that it’s not done at the expense of industrial users.  CICI will keep you posted on any developments that will undoubtedly arise now that the bill is in the House.        

“DEEP POCKETS” BILL GETS POWERFUL NEW ENEMIES

According to news reports around the Capitol, the trial lawyer’s coveted piece of legislation to go after deep pocket defendants has picked up some powerful new enemies, including the City of Chicago and Cook County.  Perhaps the government folks also fear that being only marginally at fault for something will result in them having to pay 100% of all damages simply because they have “deep pockets”, or, in their case, large revenue funds courtesy of taxpayers.     

This measure, SB 1296 (Cullerton, D-Chicago), would provide that the apportionment of fault under joint liability only applies to the parties still remaining in the case at the time that a final determination is made. There is only one purpose for this bill: to enable personal injury trial lawyers to collect money from the defendant with the deepest pocket in a personal injury case, without regard to which of multiple defendants might be most at fault.  The trial lawyers can settle with those with the least financial resources -- even if they are most at fault – and go after the defendant with the most financial resources, even if that defendant had little fault.

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.

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