BUDGET GOES TO GOVERNOR WITHOUT A CAPITAL PLAN
Another legisletter will be sent later in the week detailing the status of many legislative issues. In the meantime, the following is a glimpse of the budget that has been sent to the Governor and a brief run down of major issues that CICI has been actively engaged in throughout the Spring Session.
Unlike in 2007, the Illinois General Assembly managed to pass a state spending plan to the Governor by May 31 and adjourned the regular Spring Session, dodging the potential election-year embarrassment of a second straight overtime session. The very good news is that CICI and the chemical industry escaped this legislative session without any new and increased taxes or fees or any elimination of any current tax incentives.
The bad news is that the nearly $60 billion state budget is woefully unbalanced. Governor Blagojevich claims the proposed budget is unbalanced by $2.1 billion and he announce today that he will call the four legislative leaders together this week to continue discussions on how to balance the budget. The Governor could also make the budget cuts himself through amendatory or line-item vetoes. The General Assembly would then need to return to Springfield to approve those changes or pass a new budget.
The new proposed budget would increase spending by about $2 billion over the current year, with most of the money going to education and some health care and social service programs. The new spending would be supported in part by an auction of the state’s long-dormant 10th riverboat casino license, from which they hope to reap as much as $575 million. This plan, however, is largely based on optimistic forecasts of how much revenue the state will take in, and lawmakers acknowledged there may not be enough money to pay the bills for the budget year that begins July 1.
One positive development since May 31 is that a 3/5’s majority vote is now needed to pass any tax increases which require an immediate effective date.
Lawmakers may also return to work on a statewide capital construction program for new schools, roads, and bridges, as the House failed to pass the $30 billion plus plan and the means to pay for it, namely the partial sale of the lottery and gaming expansions.
CICI will continue to monitor the situation. |
KEY BILLS FAIL TO ADVANCE
The Fall Veto Session, which is scheduled to convene on November 12, 2008, could be a very busy one as many pieces of legislation failed to advance by the time the General Assembly adjourned for the summer. The following is a brief run down of the bills that were either defeated or fell by the wayside.
Chemical Bans – Bisphenol A, Phthalates, and Flame Retardants.
Only one of these bills, SB 944 (Kotowski, D-Park Ridge) enacting a BPA ban, even received a committee hearing this session. After a fairly contentious debate, with many Senators attacking the proponent’s arguments for banning a safe product, the bill’s sponsor decided not to call the bill for a vote and hold it in committee. CICI is cautiously optimistic that the bill will not be called again this year.
All bills seeking to ban chemicals failed to advance this year. CICI actively opposed all of these ban measures.
Structural Work Act
The state’s trial lawyers never called their bill, HB 2094 (Madigan, D-Chicago), to reenact the Structural Work Act that 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. The bill was on the amendment stage in the House when they adjourned last Saturday. CICI opposed reestablishment of the SWA.
Clean Coal Legislation – Utility Rate Hikes
CICI opposed this measure, SB 1987 (Trotter, D-Chicago), which appeared a few days before adjournment that could have ultimately meant utility rate increases and hindered competition in the electricity market for industrial customers. The legislation was essentially betting with rate payers’ money on a promising but costly and unproven technology designed for Illinois' abundant coal, whose high sulfur content has impeded its use. Anticipating new federal standards restricting carbon emissions to combat global warming, the technology separates carbon during the coal-burning process for burial underground.
It was estimated by some business groups that electricity rates for residents and businesses would increase by tens of millions of dollars annually. The legislation further mandated price increases every year for the next five years. It was also estimated these price increases could total $400 million per year or $2 billion over 4 years. At current market rates, approximately two-thirds of that $2 billion, or $1.3 billion, will be passed on to consumers, particularly commercial and industrial users. The bill only received 50 “YES” votes in the House, 10 shy of the 60 needed for passage.
Climate Change
Amendments have been added to two shell bills in the House (HB 5254, Nekritz, D-Northbrook) and Senate (SB 2220, Harmon, D-Oak Park), but were held in committee for future discussions that will likely include meetings with the IEPA, the business community, environmentalists, and other interested stakeholders. A subject matter hearing has already occurred in the Senate and with more likely to follow. These proposals would enact many environmental ideas concerning climate change, including a cap and trade auction, i.e. cap and tax, an energy efficient furnace requirement, car emissions standards, clean “home-grown” fuel standards, and an energy efficient residential building code. CICI opposed both of these amendments as the climate change issue needs to be addressed at either the federal or international level. Neither of these bills advanced out of committee.
Auto Emissions Standards
This measure, HB 3424 (May, D-HighlandPark), has been awaiting action in the House for over a year now. The bill wouldimposeCalifornia auto emissions standards on all new cars sold or registered in Illinois for the 2011 model year and after. Ford Motor Co. has estimated that California’s clean-car standards would add $3,000 to the cost of each car sold in Illinois. The bill was sent back to the House Rules Committee upon adjournment.
IEPA Task Force on Water Supply Contaminants
What once would have required public water supplies be tested for the presence of contaminants (natural and synthetic hormones, chemicals in cosmetics, shampoos, shaving lotions, skin creams, flame retardants, plastics, and anti-bacterial soaps), an amendment was added to HB 2167 (Froehlich, D-Schaumburg) that now simply requires the IEPA to convene a task force to study this problem. The bill was sent back to the House Rules Committee upon adjournment.
Lead Labeling of Children’s Products & Mercury in Cosmetics
This proposal, SB 2860 (Hunter, D-Chicago), along with a ban on mercury being added to cosmetics, provides that no one shall sell, have, offer for sale, or transfer certain children’s articles that contain a total lead content in any component part of the item that is more than 0.004% (40 parts per million) by total weight unless that item bears a warning statement that indicates that at least one component part of the item contains lead. The 40 parts per million is the threshold considered safe by the AmericanAcademy of Pediatrics. This bill was back in the Senate awaiting concurrence at the time of adjournment.
Electronic Recycling/E-Waste
The issue of electronic waste has been discussed and negotiated in the General Assembly for a few years now. Legislation contained in SB 2313 (Garrett, D-Lake forest) finally passed the Senate unanimously, but became stalled after it left the House. The proposal creates the Electronic Products Recycling and Reuse Act and requires manufacturers, retailers, collectors, and recyclers to perform certain duties related to recycling or reusing certain electronic products. The bill also sets forth goals for manufacturers for the recycling of the electronic products and requires manufacturers and recyclers of the electronic products to register with the IEPA and pay a registration fee. The bill further sets out standards for recycling facilities of the electronic products. CICI’s main concern in this proposal was making sure chemicals products were not banned in electronic devices. The bill was awaiting concurrence with House amendments when it became stalled in the Senate the last day of session.
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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