Welcome to the Chemical Industry of Illinois

END OF SESSION REPORT

The good news is no bills opposed by the Chemical Industry Council of Illinois (CICI) advanced to the Governor. All efforts to ban chemicals and chemical products, raise taxes or fees, eliminate industry tax incentives failed to reach the Governor.

The bad news is that the state’s budget, and the means in which to fund it, as well as a capital construction program to build and repair the state’s ailing infrastructure (roads, bridges, schools, prisons, state buildings, etc) is still being negotiated between the 4 legislative leaders and Governor Quinn, marking the third time in as many years that the General Assembly has adjourned without finishing its most important business.

Below is an overview of the measures that CICI has been involved with this legislative year.

MEASURES ADVANCING TO THE GOVERNOR

The following bills have made it through the legislative process and are awaiting gubernatorial action. Once the governor receives the bill, he has 60 days in which to act upon it or it automatically becomes law. CICI will be issuing another Legisletter later in the summer detailing any gubernatorial action on these bills.

Unemployment Insurance

Representatives from business and labor reached accord on changes to the Unemployment Insurance system that will allow Illinois to access $200 million in federal funding for the UI Trust Fund. As part of the federal stimulus package, states had the option to "modernize" their unemployment system by adopting two of four recommended changes in order to receive these additional federal funds.

Under the final agreement of SB 1350 (Forby, D-Benton), negotiated by the business community, Illinois employers will not be charged and will not be subject to any UI tax rate increase for the modifications to the dependent care and compelling family reason provisions in the current system. Business and labor also agreed to a continued moratorium on any UI bills that do not have consensus from both parties. In return, unemployed workers will be able to receive up to 20 additional weeks of unemployment benefits that are funded entirely by the federal government.

NPDES Construction Site Storm Water Permits

This proposal, HB 629 (Mautino, D-Spring Valley), amends the Environmental Protection Act. Limits the circumstances under which the Environmental Protection Agency must send a fee notice to existing NPDES permittees. Exempts NPDES construction-site storm water permittees who meet certain requirements from paying an annual NPDES construction-site storm water permit fee after payment of an initial annual fee of $500 before January 1, 2010 or $250 or $750, depending on the number of acres disturbed, for applications received on or after January 1, 2010 (now, NPDES construction-site storm water permittees must pay $500 initially and $500 each subsequent year, except if a permit is issued during the months of January through June, then the permittee may be exempt from paying an annual fee during "the 12 months beginning July 1 that immediately follow the period for which the initial annual fee was due"). Under existing law and this Act, the Agency may prorate the initial annual fee in the case of permits issued during the months of January through June.

Environmentally Preferable Purchasing

This measure, HB 4035 (Tryon, R-Crystal Lake), requires that state agencies procure environmentally preferable supplies and services and authorizes a state agency to give a price preference of up to 10% for an environmentally preferable supply or service. CICI is asking for an amendatory veto of this bill because of its overly broad language that could be construed to limit virtually every item, even those that may be deemed environmentally preferred

Petrochemical Processing Facilities – Property Assessments

This bill, SB 89 (Dahl, R-Peru), allows for a real property tax assessment settlement agreement in a county with less than 1 million inhabitants that that is used for a natural gas extraction and fractionation or a polymer and olefin manufacturing facility. The legislation is the result an ongoing litigation situation in Grundy County, however, other counties with these types of facilities that enter into these agreements may also take advantage of this should it become law. Current law only allows for such a settlement agreement in a county with less than 1 million inhabitants that contains either a power generating or automotive manufacturing facility. CICI supported this measure.

High-Capacity Wells

This measure, SB 2184 (Garrett, D-Lake Forest), originally placed some severe restrictions and new requirements on high-capacity wells that garnered the opposition of CICI and many industry groups. An amendment changed the bill to a requirement, without any penalties, that these types of wells, register with the Illinois State Water Survey in order to get a better idea of how much water is being withdrawn and what is placed back into a well or water body. This supposedly will allow the state to know what the demands are in various parts of the state.

Green Infrastructure for Clean Water

This piece of legislation, SB 1489 (Martinez, D-Chicago), once created the Green Infrastructure for Clean Water Act, requiring the IEPA to adopt comprehensive storm water management rules that meet certain requirements by July 1, 2012. This will be changed through an amendment to set up a task force to study the issue.

Pesticides/Lawn Care Products Application and Notices

This bill, SB 1769 (Steans, D-Chicago), now requires each school district and the Board of Education to adopt a procedure to comply with the requirements of the Lawn Care Products Application and Notice Act and the Structural Pest Control Act. It requires the designation of a staff person who is responsible for compliance with the requirements of those Acts and requires the owners and operators of licensed day care centers to ensure that lawn care products will not be applied to day care center grounds when children are present at a center or on its grounds. The bill also requires applicators for hire to provide, upon request, a copy of the approved pesticide registration label as well as the material safety data sheet for applied lawn care product to certain persons. The schools and day care centers are also to give parents written or phone notice 4 days before applying pesticide on day care grounds or school grounds (now, written notice must be given 2 days before pesticides are applied to school grounds).

This bill, HB 1013 (Boland, D-Moline), creates the Green Buildings Act to require that state-funded building construction and major renovations of existing state-owned facilities must meet certain energy and environmental standards of the Leadership in Energy and Environmental Design (LEED) program rating system, the Green Building Initiative's Green Globes rating system, or an equivalent rating system. The bill allows for waivers of the standards by the Capital Development Board (CDB) or other agencies. CDB must also analyze and evaluate these standards after the earlier of 5 years or the completion of 10 projects.

Beneficial Use Determinations

This proposal, SB 2034 (Garrett, D-Lake Forest), authorizes the IEPA to make written determinations that certain materials that would otherwise be required to be managed as waste may be managed as non-waste if those materials are used beneficially and in a manner that is protective of human health and the environment. The bill requires applicants for beneficial use determinations to demonstrate that (1) the chemical and physical properties of the material are comparable to similar commercially available materials, (2) the market demand for the material meets certain requirements, (3) the material is legitimately beneficially used, (4) the management and use of the material will not cause, threaten, or allow the release of any contaminant into the environment, except as authorized by law, and (5) the management and use of the material otherwise protects human health and safety and the environment. It also authorizes applicants to seek review of the IEPA’s written decisions to disapprove of an application for a determination or to approve of it with conditions. These determinations will be effective for a period approved by the IEPA, but that period may not exceed 5 years. Finally, the bill authorizes certain materials to maintain their non-waste status after the effective period of the determination under certain conditions and prohibits recipients of a determination from managing or using the material that is the subject of the determination in violation of the determination or any conditions imposed by it, unless the material is managed as waste.

Energy Efficient Building Code for Residential Buildings

This bill, HB 3987 (Hamos, D-Evanston), amends the Energy Efficient Commercial Building Act, making the law applicable to all buildings (now, all commercial buildings). The bill also provides that the Capital Development Board (CDB) must adopt the specified energy conservation code as the minimum requirements for commercial buildings and as the minimum and maximum requirements for the construction of residential buildings. Further, units of local government, except for the city of Chicago, may not regulate energy efficient building standards for residential buildings in a manner that is either less or more stringent than the standards in the bill and they may not enact any annexation ordinance or resolution, or require or enter into any annexation agreement, that imposes energy efficiency building standards for residential buildings that are either less or more stringent than the energy efficiency standards. Any unit of local government that has adopted any previously published editions of the International Energy Conservation Code on or before January 1, 2009 may continue to regulate energy efficient building standards under that Code and any supplements the unit of local government has adopted prior to January 1, 2009. Also, through an amendment, the bill replaces a provision that exempts from the Code's requirements "additions, alterations, renovations, or repairs to existing residential structures" with a provision that exempts from the Code's requirements the following: "storm windows installed over existing fenestration; glass-only replacements in an existing sash and fame; existing ceiling, wall, or floor cavities exposed during construction, provided that these cavities are filled with insulation; and construction where the existing roof, wall, or floor is not exposed".

Clean Air Fast-Track Rulemaking

This bill, HB 3859 (Franks, D-Woodstock), reenacts a section concerning fast-track rulemaking for the Clean Air Act, providing that if the Clean Air Act Amendments of 1990 require the adoption of rules other than identical in substance rules, then the IPCB must adopt rules under fast-track rulemaking if requested to do so by the IEPA. The IPCB must accept evidence and comments on the economic impact of any provision of the rule and must consider the economic impact of the rule in any fast-track rulemaking proceeding.

Ethics, Campaign, and Lobbying Reforms

A new campaign finance measure is to take effect on January 1, 2011, that includes caps on political contributions and enhanced reporting. The contribution caps include: $5,000 from individuals; $10,000 from a labor union, corporation or association and PACs; and $90,000 in fund transfers from a political committee.

The new legislation creates four types of campaign committees: (1) single-candidate committees; (2) multi-candidate committees; (3) non-candidate committees; and (4) constituent services committees. Public officials, candidates, corporations, labor unions, associations, and political parties are limited to forming only one political committee for a candidate and one multiple-candidate committee.

The legislature also advanced a measure, SB 54 (Garrett, D-Lake Forest), seeking to enact broad changes in government procurement policy and lobbying activities. For CICI members that are registered lobbyists, the following are the notable changes and new requirements:

Lobbyist Registration Act

Revolving Door Prohibition

Implements strict 1 year ban for certain officials and employees: Banned officials and employees are prohibited from accepting employment or compensation for 1 year from an entity if that entity was party to a state contract(s) or change orders worth $25,000 or more (cumulative) or was the subject of a regulatory or licensing decision involving the official's or employee's state agency.

Excessive Idling

This measure, HB 2664 (Nekritz, D-Northbrook), increases the fine for an excessive idling violation from $50 to $90 for the first conviction. All fine money not receivable by local governments shall be paid, subject to appropriation, to the IEPA for the purpose of educating the trucking industry on air pollution and preventative measures specifically related to idling.

65 MPH Uniform Speed Limits for Trucks

This measure, HB 3956 (Reis, R-Olney), provides that in the counties outside of Cook, DuPage, Kane, Lake, McHenry, and Will, the maximum speed limit outside an urban district for a second division vehicle designed or used for the carrying of a gross weight of 8,001 pounds or more is 65 mph on any interstate highway, rather than the current 55 mph. This is the 4^th time the bill has been sent to the governor but a veto override was never accomplished. However, Governor Quinn has never had this bill on his desk. If he signs this bill into law, it would take effect January 1, 2010.

80,000 LBS Truck Access

This provision is contained in the capital infrastructure bill, HB 255 (Lang, D-Skokie) poised to be sent to the governor but is on a parliamentary hold until budget issues become resolved. It would allow trucks in excess of 80,000 lbs to travel on state highways, except where posted. This provision would take effect January 1, 2010.

Investigating Biological and Chemical Agents

This proposal, HB 3922 (Harris, D-Chicago), amends the Department of Public Health Act. In the provision concerning powers, provides that the public health measures set forth in certain provisions may be used by the Department to respond to chemical, radiological, or nuclear agents or events. Provides that certain provisions apply to any order issued by the Department. Provides that the Department and the Illinois Emergency Management Agency shall consult in accordance with the Illinois emergency response framework. Provides that the provisions concerning the departmental powers shall supersede the current National Incident Management System and the Illinois Emergency Operation Plan or response plans and procedures established pursuant to IEMA statutes.

Crestwood Water Contamination Issue

This legislation, HB 4021 (Mautino, D-Spring Valley), requires owners and operators of Illinois’ public water supply systems to make additional reports and documents available for inspection by the IEPA, provide public notice through a press release and web posting when the IEPA refers a public water supply for enforcement or sends a violation notice reporting that a groundwater supply poses a public health threat, or a public water supply operator submits fraudulent information to them. It also requires the IEPA to provide written notice to the public water supply of its enforcement action within seven days; the public water supply must then, within three days, notify all affected users and document this notification to the IEPA. The legislation would also increase the penalties for any person to knowingly provide false information to either the IEPA or a unit of local government with delegation authority, making it a Class 4 felony.

Soil Contamination

This original underlying language in HB 4021 requires the IEPA to evaluate the release of contaminants if it determines that the extent of soil, soil gas, or groundwater contamination may extend beyond the boundary of the site where the release occurred (now, only if "soil or groundwater contamination may extend beyond the boundary of the site where the release occurred"). The bill also requires the IEPA to notify the owner of the contaminated property if soil contamination beyond the boundary of the site where the release occurred, soil gas contamination beyond the boundary of the site where the release occurred, or both pose a threat of exposure to the public above the appropriate Tier 1 remediation objectives (now, the owner of the contaminated property must be contacted only about "soil contamination beyond the boundary of the site where the release occurred").

IEPA Bill - Various

This measure, SB 2145 (Haine, D-Alton), amends the Asbestos Abatement Act, deleting a provision requiring the Department of Public Health to (1) require local educational agencies to submit to them certain asbestos related response action contracts for which the agency seeks indemnification and (2) collect from the agency a certain percentage of each response action contract for deposit into the Response Contractors Indemnification Fund. The bill also amends the Response Action Contractor Indemnification Act to provide that, within 30 days after the effective date, the state Comptroller and Treasurer shall transfer all moneys in the Response Action Contractor Indemnification Fund to the Brownfields Redevelopment Fund. The bill further amends the Alternate Fuels Act in a Section concerning the rebate program, authorizing the IEPA to establish rebate priorities and provides that the rebate applications must be submitted within 12 months after a vehicle conversion occurred, rather than within the same calendar year, as is currently required. Finally, the bill repeals the Hazardous Waste Crane and Hoisting Equipment Operators Licensing Act and the Hazardous Waste Laborers Licensing Act.

Renewable Fuels Assistance Bills

This proposal, HB 680 (Moffitt, R-Galesburg), amends the Illinois Renewable Fuels Development Program, authorizing the Department of Commerce and Economic Opportunity (DCEO) to award, in excess of the annual aggregate grant total, up to $4,000,000 to a grant applicant who installs advanced technologies for water usage, carbon footprint reduction, and other blending improvements designed to optimize processes at the applicant’s renewable fuels facility.

Also, this measure, HB 338 (Franks, D-Woodstock), provides that a grant recipient must be constructing, modifying, altering, or retrofitting a plant that has annual production capacity of no less than 5,000,000 (now, 30,000,000) gallons of renewable fuel per year.

This bill, HB 2535 (Poe, R-Sherman), increases the percentage of biodiesel blend required to be used by a diesel powered vehicle owned by the state or units of local government when refueling at a bulk central fueling facility from 2% to 5%, unless the engine is designed to operate on a higher percentage.

Green Cleaning for State Buildings

This proposal, HB 2437 (May, D-Highland Park), provides that every state-owned building establish a green cleaning policy whereby the building buys and uses only environmentally-sensitive cleaning products. They can deplete its existing cleaning and maintenance supply stocks and allows exemptions for buildings if adhering to these requirements would not be economically feasible. CICI worked with the sponsor of this bill last year when similar provisions were enacted concerning school buildings to ensure that disinfectants are still used.

MEASURES FAILING TO ADVANCE

None of the following pieces of legislation passed both houses by the time of adjournment on May 31 for various reasons. However, no bill ever truly dies in Springfield. A possible summer Special Session or Fall Veto Session, which begins in November, may revisit some of these issues.

In spite of the Chicago Tribune, the Chicago Sun-Times, and the Chicago Daily Herald all editorializing in favor of a ban on bisphenol A (BPA) used in baby bottles the day the bill, HB 2485 (Nekritz, D-Northbrook), was to be called for a vote, the proposed ban on this safe and U.S. FDA approved product failed to garner the required 60 votes needed for passage and was subsequently sent back to the House Rules Committee.

CICI, a host of business interests, and even the AFL-CIO actively opposed this bill with the main argument that if BPA is safe in metal food and beverage cans – and a whole host of health agencies around the globe, including the FDA, all agree it’s safe - then BPA is safe in baby bottles.

Ultimately the real target of this bill is canned food and beverages particularly infant formula. Interestingly, even with the proposed amendment none of the opposition went neutral on the bill and all organizations still continue to oppose the ban.

Flame Retardant Ban

For the 5^th year in a row environmentalists have introduced a bill to ban brominated flame retardants. This year the measure is HB 373 (Nekritz, D-Northbrook) and it would ban deca brominated diphenyl ether (decaBDE), the most widely used of the brominated flame retardants, in mattresses, mattress pads, articles of furniture, televisions, computers, or other electronic devices or any other product intended for indoor residential use if the product has a textile component containing decaBDE. The bill specifically exempts automobiles, not because decaBDE is any different in automobiles, but to lessen the bill’s opposition. CICI and many in the business community actively opposed this legislation.

Prevailing Wage for Enterprise Zones & TIF Districts

This measure, SB 43 (Clayborne, D-E. St. Louis), proposes to extend the Prevailing Wage Act to all projects in an enterprise zone or a TIF district, even for projects that are 100% financed from private sources, with the exception for single or multi-family owner/occupied projects. The bill also provides that "public works" also includes any project that will derive a financial benefit, in whole or in part, from loans, grants, subsidies, incentives, or other financial benefit made available pursuant to the Illinois Enterprise Zone Act or the Economic Development Project Area Tax Increment Allocation Act of 1995. CICI and many in the business community opposed this measure.

Climate Change
These measures, HB 3668 (Nekritz, D-Northbrook) and SB 856 (Steans, D-Chicago), requires the state to adopt a market-based cap-and-tax program that would require utilities and manufacturers to reduce their emissions by 25% from 2005 levels by the year 2020. The reduction would increase to 45 percent in 2030 and finally 80 percent by 2050. CICI opposed this measure.

Prejudgment Interest

This bill, SB 184 (Haine, D-Alton), amends the Code of Civil Procedure to provide that prejudgment interest must be awarded in an action at law or in arbitration from the date the party from whom damages are sought is given written notice of the claim for money damages or the action or arbitration is filed, whichever is earlier, until the award or judgment is entered. The monthly prejudgment interest rate shall be calculated by the comptroller and published on his or her website each month. The monthly prejudgment interest rate shall be calculated by adding 2% to the interest rate of the one-year Treasury constant maturity stated in the last H15 report of the previous month, published by the Federal Reserve System, which is currently at .44% (so, currently 2.44% altogether).

Of course, a defendant may avoid paying prejudgment interest by making a written offer of settlement to the plaintiff any time after that defendant files an answer, but no later than 120 days after filing an answer. Provides that if the plaintiff does not accept that offer of settlement in writing within 30 days of receipt, and the plaintiff's award or judgment against that defendant is less than or equal to that offer of settlement, no prejudgment interest may be awarded against that defendant. The parties may agree in writing to extend the 120-day period. CICI opposed this measure.

California Auto Emissions Standards

This measure, HB 422 (May, D-Highland Park), known as the Clean Car Bill, establishes a new motor vehicle emission standard for nonattainment areas in the state by incorporating emission standards and other provisions of the California Low Emission Vehicle Program. The bill requires that all new passenger cars and light-duty trucks sold, leased, or offered for sale or lease, imported, delivered, purchased, rented, acquired, received, titled, or registered in the state beginning with the 2012 model year meet the requirements of this new program. Ford Motor Co. has estimated that California’s clean-car standards would add $3,000 to the cost of each car sold in Illinois.

Repeal Commercial Distribution Fee

This bill, SB 1434 (Sandoval, D-Cicero), repeals the annual commercial distribution fee on vehicles of the second division weighing more than 8,000 pounds that was enacted under Blagojevich’s first budget in 2003. CICI supported this measure.

Genetically Engineered Food Labels

This bill, HB 985 (Mell, D-Chicago), creates the Genetically Engineered Food Right To Know Act to require that all foods containing genetically engineered material or produced with genetically engineered material must be clearly marked with a label placed in a conspicuous place. CICI opposed this measure.

Rid State of Ryan, Blagojevich Hires

House Speaker Michael Madigan has greatly altered his proposal, SB 1333 (Garrett, D-Lake Forest), to terminate essentially all current political employees hired by former Governors’ Ryan and Blagojevich. Before the bill was amended in committee this week and passed to the Senate, close to 3,000 employees were earmarked to be removed from their positions, including (1) agency directors, assistant directors, and deputy directors subject to the advice and consent of the Senate, (2) members of approximately 90 boards or commissions subject to the advice and consent of the Senate, (3) agency, board, or commission employees in exempt positions, (4) term appointees of agencies, boards, or commissions, and (5) any other official or employee subject to the advice or consent of the Senate.

The bill as currently amended would cover about 750 positions in state government.

The persons covered by the bill will be allowed to serve for up to 60 days after its effective date. However, these people will be eligible for reinstatement by Governor Quinn to their current positions if he so chooses. This proposal would cover many directors, deputy and assistant directors and members at agencies like the Illinois Environmental Protection Agency, Illinois Pollution Control Board, Illinois Emergency Management Agency, Dept. of Agriculture and the Illinois Commerce Commission.

CICI’s concern is with the potential loss of institutional knowledge of many people we work with on a daily basis and the political mind-set of those who may be their replacements.

Mercury Thermostat Take-Back Program

This measure, SB 1690 (Hunter, D-Chicago), creates the Mercury Thermostat Collection Act and requires thermostat manufacturers to establish and maintain a program for the collection and recycling of mercury thermostats. It also prohibits wholesalers, retailers, and technicians from selling or distributing non-mercury thermostats if they have not taken certain actions with respect to the disposal of mercury thermostats.

Clean Construction/Demolition Debris

This bill, SB 1607 (Harmon, D-Oak Park), amends the Environmental Protection Act to change the definition of "clean construction or demolition debris" (CCDD) to provide that certain materials generated from the construction or demolition of a road may be considered CCDD. The bill also defines "painted construction or demolition debris" (PCDD) as certain materials that contain paint and that are generated from construction or demolition activities and that PCDD may be treated as CCDD if certain requirements are met. The bill also provides that general fill soil may contain broken concrete, bricks, or asphalt and prohibits any person from conducting any generation, transportation, or recycling of general fill soil without certain documentation. It requires existing owners and operators of CCDD fill operations to seek a permit modification and provide that no person shall use restricted fill soil or PCDD as fill material at a CCDD fill operation unless certain requirements are met. Further, the section regarding CCDD fill operations does not apply to the use of CCDD, restricted fill soil, or PCDD as fill material under certain circumstances. The bill also authorizes the use of restricted fill soil and PCDD as fill material under certain circumstances. The legislation further reinserts portions of the introduced bill that relate to the Receipt Control and Screening Plan that must be developed and implemented by the owner or operator of a CCDD fill operation; reinserts with portions of the introduced bill that relate to the Testing and Sampling Plan that must be developed and implemented by the owner or operator of a CCDD fill operation. It also authorizes the IEPA to enter intergovernmental agreements regarding the reuse of soil and clean construction or demolition debris with state agencies, counties with a population of 3,000,000 or more (Cook), or units of local government located in a county with a population of 3,000,000 or more (Chicago).

New Source Review

This measure, HB 995 (Holbrook, D-Belleville), requires PCB to adopt Non-attainment New Source Review and Prevention of Significant Deterioration programs, and requires those programs to be no more stringent than the federal program requirements under 40 C.F.R. 51.165 and 51.166.

Environmentally Friendly/Energy-Efficient Building Materials

This measure, HB 3799 (Dugan, D-Bradley), requires the State Board of Education to create a low-interest revolving loan program for school districts to renovate, rehabilitate, or upgrade existing school facilities to incorporate environmentally friendly or energy-efficient building materials or alternative energy devices.

Clean Coal – Expedited Permits

This measure, HB 2326 (Winters, R-Shirland), provides for expediting the issuance of permits and licenses for clean coal projects. It also allows particular state agencies to engage the experts and additional resources that are reasonably necessary for implementing this expedited process. The expedited process applies only upon the request of the applicant and that any additional costs for using that process shall be borne by the applicant.

Underground Storage Tanks

This measure, SB 1676 (Murphy, R-Palatine), provides that site investigation completion reports must be made available, upon request, to any person with an ownership interest in a remediation site or the property on which the remediation site is located. The bill also makes other changes to the remediation process, including requiring public hearings, when remediation objectives have not been achieved within the specified time period. If all applicable remediation objectives have not been achieved at a site within 10 years after completion of the site investigation, the IEPA, in collaboration with the IPCB, must hold a public hearing to determine whether the responsible owner or operator will either (1) pay the IEPA to conduct the proper corrective action or (2) purchase the site from the current site owner for the site's fair market value.

Truck Fee Increases

This measure, HB 448 (Ford D-Chicago), would double the flat rate tax paid by owners of second division vehicles beginning on January 1, 2010 for each registration year. The legislation exempts recreational vehicles, farm equipment, and Class B vehicles. However, owners of commercial trucks would see a huge increase in the tax ranging from $138 for trucks between 8,000 and 12,000 pounds to an increase of $2,790 for trucks with a weight in excess of 77,000 pounds. CICI opposed this measure.

Payroll Tax for Health Care

Identical bills, HB 1081 (Ryg, D-Vernon Hills) and SB 1331 (Koehler, D-Peoria), in both the House and Senate would impose a graduated payroll tax on employers to finance a government-run health care for families earning up to $82,000 annually. The legislation creates a new payroll tax between 1.5 percent and 6 percent of each employer, not to exceed $15,000 per employee. Employers would begin collecting the payroll tax on January 1, 2010 with payments due by July 1. Rates are graduated based on the number of full-time employees. CICI opposed this measure.

This proposal, HB 3665 (Hernandez, D-Cicero), creates the Healthy Workplace Act, requiring an employer to provide an employee up to 7 sick days with pay during each 12-month period. The employee may use the sick days care for physical or mental illness, injury, medical condition, professional medical diagnosis or care, or a medical appointment of the employee or a family member. CICI opposed this measure.

This proposal, SB 2151 (Jones, J., R-Mt. Vernon), creates the Farmer Protection Act to provide that the release by a manufacturer of a genetically engineered plant shall constitute a private nuisance for which the manufacturer shall be liable only if the release (1) causes the presence of the plant within the property owned or occupied by a person for whom the plant presence was not intended and (2) results in damage in any calendar year that exceeds $3,500. The bill also provides that defenses at law or equity available in a private nuisance action apply to actions brought under this bill. Further, a person owning or occupying the property upon which a nuisance release occurs does not have a duty to establish buffer zones, segregation protocols, or otherwise initiate measures to protect specifically against the potential release of genetically engineered plants. Also, a person who is not in breach of a seed contract regarding the purchase or use of a genetically engineered plant and that unknowingly comes into possession of a genetically engineered plant shall not be liable for certain damages. The bill also authorizes, under certain conditions, a seed supplier or, in some cases, the Director of Agriculture or his or her designee to enter upon real property farmed by another person for the purpose of obtaining crop samples. The bill also authorizes the seed supplier to petition the circuit court for the county in which the real property is located for an order granting permission to enter upon the farmer's real property and that a farmer has a right of action against a seed supplier for violations and may recover certain damages.

Site Remediation Program

This proposal, HB 3736 (Holbrook, D-Belleville), amends the Environmental Protection Act concerning the Site Remediation Program, providing that certain limitations on liability and cost recovery for site remediation do not apply to sites: (1) that are subject to any remediation or remedial activity regulated under a state program authorized, approved, or delegated pursuant to any federal environmental statute; or (2) that do not qualify to participate in the Site Remediation Program. The sites that are subject to post-closure, corrective action, or remediation requirements under the federal or state solid hazardous waste laws do not qualify to participate in the Site Remediation Program. The bill further specifies that a definition of "remedial action" applies only to the provisions concerning the Site Remediation Program and that the IPCB may (now, "shall") adopt rules concerning the proportionate share of liability. In addition, the IEPA’s issuance of a No Further Remediation Letter signifies a release of further responsibilities for those sites that are eligible for the Site Remediation Program.

Science Advisory Board

This measure, HB 2452 (Winters, R-Shirland), creates the Science Advisory Board for the purpose of rendering scientific assessment, risk based analysis, and consensus advice upon questions of science posed by the Governor or Legislative Committees having jurisdiction over scientific matters. The Board would be charged with reviewing and summarizing pertinent scientific studies related to charged topics. The Board is to summarize its findings and recommendations in a manner that is timely, objective, transparent, and understandable by elected officials and policymakers. The Board is also to achieve consensus in its decision making, if possible, and to provide for reports of minority opinions, if consensus is not possible. The Director of the General Assembly’s Legislative Research Unit (LRU) shall act as the Executive Director of the Board and shall assign such clerical and staff support from the LRU staff.

Potassium Bromate Exposure Notices

This proposal, HB 2418 (Jakobsson, D-Urbana), creates the Potassium Bromate Exposure Act to provide that no person in the course of doing business shall knowingly and intentionally expose any individual to potassium bromate or bromated flour without first giving clear and reasonable warning to such individual.

Great Lakes Protections

This bill, HB 3829 (Bellock, R-Hinsdale), creates the Great Lakes Preservation and Protection Act, requiring the IEPA and the Illinois International Port District to submit an annual report to the General Assembly concerning ballast water in the Great Lakes. The IEPA and the Department of Natural Resources (DNR) to offer technical assistance to the Great Ships Initiative for the purpose of accelerating the development and approval of ballast-treatment technology that is sufficient to protect the waters of the state from aquatic invasive species. The bill also requires the DNR to sample and monitor the Illinois waters of Lake Michigan for new aquatic nuisance species and report its findings annually to the General Assembly.

Green Energy Businesses

This measure, HB 3826 (Mautino, D-Spring Valley), creates the Green Energy Business Act, authorizing the Department of Commerce and Economic Opportunity (DCEO) to receive and approve the applications of qualified businesses seeking designation as Green Energy Businesses and to provide that Green Energy Businesses are eligible for certain tax credits and exemptions.

Airport Pollution, Health Study

This bill, HB 322 (Mulligan, R-Des Plaines) requires the IEPA, in consultation with the Department of Public Health, to conduct a study describing the adverse environmental and human health impacts caused by runways and air traffic at airports in the State, paying particular attention to the impact of air pollution, noise pollution, the emission of gases and fluids by aircraft, and similar factors on the health of persons who live near airports.

Mandatory Plastic Bag Recycling

This measure, HB 334 (Franks, D-Woodstock), creates the Grocers' Mandatory Plastic Bag Recycling Act to require the owner of each grocery store in Illinois to implement a plastic bag recycling program that (1) facilitates the return and recycling of plastic bags, (2) provides for the placement of a plastic bag collection bin in each store at a location that is visible and easily accessible to consumers, (3) provides for the marking of each plastic bag collection bin in a manner that indicates to consumers that the collection bin is being made available by the grocery store for the purpose of collecting and recycling plastic bags, and (4) make arrangements for the pick-up, transport, and recycling of plastic bags.

This measure, HB 4053 (Fortner, R-West Chicago), provides that the county boards of Cook, DuPage, Kane, Lake, McHenry, and Will Counties may impose a tax upon all rail line owners (calculated per rail car per mile) for the privilege of operating a rail line within the county and that the rate must be sufficient to complete necessary grade crossing separation work and related infrastructure improvements to improve safety for first responders and the general public.

Machinery & Equipment Exemptions

This proposal, HB 3763 (Walker, D-Arlington Heights), provides that the manufacturing and assembling machinery and equipment exemption also includes production related tangible personal property purchased on or after July 1, 2007 (instead of on or after July 1, 2007 and on or before June 30, 2008).

Trade Show Income Tax Credit

This measure, HB 3774 (Acevedo, D-Chicago), creates the Trade Show Income Tax Credit, authorizing the Department of Commerce and Economic Opportunity (DCEO) to award income tax credits to trade show managers for locating large trade shows in Illinois and using Illinois labor. The credit ranges from 25% to 45% of Illinois labor expenditures, up to $10,000 per applicant per trade show.

Manufacturing Job Destination Tax Credit

This proposal, HB 4131 (Brady, R-Bloomington), creates the Manufacturing Job Destination Tax Credit to provide for a tax credit of 25% of the Illinois labor expenditures made by a manufacturing company in order to foster job creation and retention in Illinois.

Alternative Energy Tax Credit

This legislation, HB 3862 (Franks, D-Woodstock), creates an alternative energy credit for taxpayers who construct facilities that generate electricity using alternative energy sources, including solar, wind, geothermal, landfill methane gas, fuel cells, and biomass). The credit would be 0.18 cents per kilowatt hour generated by the alternative energy system.

Alternative R & D Tax Credit

This measure, HB 627 (Watson, R-Jacksonville), creates an alternate research and development (R&D) credit for taxable years ending on or after December 31, 2008 for taxpayers who make qualified research expenditures. The amount of the credit for taxpayers in each of the 3 preceding taxable years is 12% of: (1) the amount of qualified research expenditures made in the current taxable year; less (2) 50% of the average of the qualified research expenditures made for the 3 preceding taxable years. The amount of the credit for taxpayers who have not conducted business activities in each of the 3 preceding taxable years is 6.5% of the qualified research expenditures made in the current taxable year. The credit may even be carried forward for 5 years but prohibits taxpayers from claiming the credit if they claim a R&D credit under other provisions of the Income Tax Act.

Tax Credits for Green Dry Cleaning Machines

This proposal, HB 2456 (Zalewski, D-Chicago), authorizes an income tax credit to taxpayers in an amount equal to 20% of the purchase price, but not to exceed $20,000, for each qualified green dry cleaning machine. To qualify, the dry cleaning machine must be certified by the council that manages the Illinois Drycleaner Environmental Response Trust Fund as a machine that uses environmentally friendly solvents. The credit may not reduce the taxpayer's liability to less than zero and may not be carried back, but may be carried forward and applied to the tax liability of the 3 taxable years following the excess credit year.

Tax Credits/Exemptions

This bill, HB 1121 (Chapa LaVia, D-Aurora), amends the Use Tax Act to extend the exemption for purchases of production related tangible personal property through June 30, 2017.

R & D Tax Credit

This proposal, SB 1671 (Murphy, R-Palatine), increases the amount of the research and development credit from 6.5% to 8% of the qualifying expenditures for increasing research activities in this state for taxable years ending on or after December 31, 2009.

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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