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April 18, 2008
Volume 22 - Issue 10
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CICI NEEDS YOUR ATTENDANCE IN SPRINGFIELD
The Annual Legislative & Regulatory Day and Reception will be held in Springfield, Tuesday, May 6, 2008, 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/Legislativeday08.html
Illinois State Treasurer Alexis Giannoulias will be the keynote speaker at the Luncheon. Treasurer Giannoulias will speak about the current budget problems facing the State of Illinois.
CICI needs your attendance in Springfield. With the potential for new and increased taxes and fees on our industry to pay for an ever-expanding government, reestablishment of the Structural Work Act, and other anti-industry proposals, there is no shortage of issues to discuss with your elected officials and they need to hear from you.
This event is a great opportunity to mingle and get to know the key people in state government, like members of the Illinois General Assembly, Constitutional Officers, IEPA officials, the members of the Pollution Control Board, and other key government officials. At the 2007 reception, over 175 legislators and government officials attended. Come thank those elected officials who are friends of the chemical industry. Already a “Who’s Who” of the General Assembly and every other important state agency has indicated they will be attending. As a result, we would like to have a nice turnout of CICI members for the event. |
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HELP NEEDED TO DEFEAT COSTLY TRIAL LAWYER PROPOSAL
Last week, a new trial lawyer bill was introduced in the Illinois House that will serve to increase the profits of the Illinois lawsuit industry while threatening Illinois jobs.
This measure, HB 2094 (Madigan, D-Chicago), would reinstate the Structural Work Act (SWA). The SWA was originally enacted over 100 years ago to protect workers injured in scaffolding accidents. But over the years, it became abused as workers were able to collect benefits under Workers' Compensation and then file lawsuits under the SWA against each party involved regardless of fault, including owners, suppliers, contractors, subcontractors and design. In fact, the bill was so dangerous to Illinois' economy that the General Assembly repealed the law back in 1995. This is nothing more than a way to inflate trial lawyer profits and it needs to be stopped.
According to an annual Harris Interactive survey, Illinois has one of the worst lawsuit climates in the country. Passage of HB 2094 would only make this reputation worse.
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ANOTHER TAX INCREASE PASSES SENATE COMMITTEE
The Senate Executive Committee voted 7-5 this week to send a constitutional amendment to the Floor that would enact a graduated income tax on people and businesses. The proposal, SJRCA 92 (Frerichs, D-Champaign), only would allow lawmakers to put in place some form of graduated rate, or sliding scale, on the state income tax. It does not specify what the new rates would be. The new rates would be left up to the General Assembly to do through the regular lawmaking process. This Constitutional Amendment would need to be approved by a three-fifths margin in both the House and Senate, and then submitted to voters in a statewide referendum this November. Governor Blagojevich would not need to sign this for it to be on the ballot in November. If voters approve this amendment, lawmakers then would have to figure out and approve the new rates. Only then would Governor Blagojevich be required to approve or disapprove of the legislation.
This proposal is slightly different from another measure that was defeated in the House last week. That measure, HJRCA 42 (Smith, D-Canton),would have increased the state's 3 percent income tax to 6 percent for individuals or couples earning more than $250,000, generating potentially $3 billion more for the state. The tax rate would have stayed at 3 percent for those below that income threshold. The proposal went on to require that a third of the additional proceeds go for elementary and secondary education, another third for infrastructure projects, and the remaining amount to help “working families.” |
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HEARING ON AG PROGRAMS CUTS & FEE INCREASES
This week the House and Senate Agriculture Committees took testimony concerning proposed cuts and various fee increases affecting programs at the Department of Agriculture and Department of Natural Resources. With respect to our industry, testimony was presented by the Illinois Fertilizer and Chemical Association (IFCA) concerning the pesticide product registration and fertilizer tonnage fee increases and, perhaps more importantly, the recent sweeping of those funds into the state’s general account to pay for schools, hospital, prisons, welfare programs, etc.
The Fertilizer Research & Education Funds, or FREC, is not funded by taxpayer dollars but rather from the fertilizer tonnage fee paid by industry. The money has been collected and is sitting in the Fertilizer Control Fund, but is being "held" under an administrative directive from the Governor's office.
The joint hearing also discussed proposed fee increases. This year, the administration is proposing to raise the pesticide product registration fee from $200 to $320 – a 60% increase. There are approximately 11,000 pesticide products registered each year in Illinois, thus this fee increase will raise nearly $1.3 million in new revenue. It can safely be assumed that this new revenue will also be deposited into the General Revenue Fund although promises will likely be made to keep the increases it in the Pesticide Control Fund to help run the Dept of Ag. CICI will oppose this fee increase. |
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RECALL OF ELECTED OFFICIALS STALLS IN SENATE
The issue of recalling elected officials boiled over in a raucous two-hour Senate committee hearing between Blagojevich’s allies and detractors. The measure, HJRCA 28 (Franks, D-Woodstock), became stalled in the Senate Executive Committee this week as the Senate sponsor (Trotter, D-Chicago) refused to call the measure for a vote. The deadline for passing the amendment through the Senate is May 4, which is mandated by the state’s constitution, 6 months from the time of the next general election.
The proposal would let voters in November decide whether to change the state constitution to allow removal of politicians during their terms if enough voters demand it. The measure would apply to all state-level executive and General Assembly members. This measure already passed the House 75-33 last week, largely on the strength of bipartisan anger towards Governor Blagojevich.
The proposed new system would be similar to the one available in 18 other states that allow recall elections, much like California did in 2003 that got Governor Schwarzenegger into office. |
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ACTION ON OTHER BILLS
Clean Air Act Permitting – Passed Senate
This measure, SB 2640 (Harmon, D-Oak Park), authorizes the Pollution Control Board to stay the effectiveness of certain final IEPA actions during the pending review process and authorizes them to stay the effectiveness of any or all of the contested conditions of a CAAPP permit if requested. The measure also provides that if the Board stays any contested conditions, then any related conditions from any prior existing permit continue in full force and effect until the final Board decision on the appeal of the granted CAAPP permit has been made. It further authorizes the Board to grant a request to stay all the conditions in a CAAPP permit upon a demonstration that the issues raised on appeal can be reasonably expected to affect the CAAPP permit in its entirety. If the entire CAAPP permit is stayed by the Board, then any prior existing permit continues in full force and effect until the final Board decision on the appeal of the granted CAAPP permit has been made. CICI was neutral on this bill as it passed the full Senate this week unanimously and now heads to the House for further action.
Diesel Emissions Reductions & Fees – Senate Floor with an Approved Agreement
This proposal, SB 2083 (Collins, D-Chicago), creates the Illinois Diesel Emissions Reduction Act requiring the collection of a surcharge on the retail sale or lease of certain diesel vehicles that are of a model year 2006 or earlier and are not equipped with Level 3 Controls and a similar surcharge on the registration of certain diesel vehicles. This bill was allowed to move out of committee with the agreement that the bill would be changed to remove the surcharge. An amendment was approved in committee this week that removed this surcharge. The bill is currently on the Senate Floor awaiting further action.
Environmental Covenant for Brownfields Property – Passed Senate
This bill, SB 2110 (Wilhelmi, D-Joliet), creates the Uniform Environmental Covenants Act, proposed by the National Conference of Commissioners on Uniform State Laws, creating an interest in real estate called an "environmental covenant" that assures a plan of rehabilitation for contaminated real property (brownfields) and controls the use of the property. The measure was amended in committee to provide that in the definition of "environmental response project", it means a plan or work performed for environmental remediation of real property at sites or facilities: that (1) are listed as proposed or final on the National Priorities List pursuant to specified federal law; that (2) are undergoing remediation pursuant to an administrative order issued pursuant to specified federal law; that (3) are owned or operated by a department, agency, or instrumentality of the United States that are undergoing remediation pursuant to specified federal law; that (4) are undergoing remediation pursuant to a settlement agreement pursuant to specified federal law; that (5) are undergoing remediation pursuant to certain other federal law; or that (6) are undergoing remediation pursuant to a court or board order issued pursuant to the Illinois Environmental Protection Act with the approval of the IEPA. The amendment also provides that this does not invalidate or render unenforceable any interest that is otherwise compliant with 35 Ill. Adm. Code 742, Subpart J. This measure passed the Senate unanimously this week and now heads to the House for further action.
Recycling Appliances – Passed House
This piece of legislation, HB 5773 (May, D-Highland Park), prohibits knowingly processing white goods by destruction or recycling unless the white good components have been removed and knowingly delivering a white good for destruction and recycling unless it has had the white good components removed and has the notification number of a registered white goods processor affixed to it. It further requires that all white good components removed by a white goods processor must be managed as special waste under the Environmental Protection Act. The measure also requires that any person who knowingly removes white good components from discarded white goods shall register with the IEPA and they shall assign a unique notification number to each facility. It also creates the White Goods Recycling Fund and requires all penalties and punitive damages for white goods violations to be deposited into the Fund and used by the Agency to enforce the white goods provisions and requires reporting every 2 years. All of the fees required to be collected by the retailer have been removed through an amendment, per an agreement with retailers. This bill passed the House unanimously and now awaits further consideration in the Senate.
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 |
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