Dear Neighbor,

 

The Legislature finished its first week of veto session yesterday. This update highlights items that have become law, legislation that has passed one Chamber but must still pass the second, items that have thus far failed, and issues that have not yet been addressed but may still arise the second week of veto session. Please let me know if you have questions or thoughts about any of these matters.

 

ComEd/Ameren "Smart Grid" Becomes Law

 

Both the Senate and House overrode the Governor's veto on this bill, making it law. I voted no given my concerns that too much of the cost will be passed on to consumers without proper review by the Illinois Commerce Commission. While the Smart Grid technology is needed and may enable consumers to better control their energy usage, this could have been achieved with much greater accountability for the utilities. You can view the new law here and the trailer bill here.

 

Bills That Have Passed One Chamber

 

The Senate passed SB965 that would enable Chicago to use cameras in areas around schools and parks to identify speeding cars. Cars going above the speed limit by at least 5 miles per hour can be fined up to $100. While research shows safety is greatly increased with slower vehicles, there is concern that this plan aims to generate revenue. Senate President John Cullerton added restrictions to the bill to limit camera use when kids are not likely to be present - like limiting hours to use these cameras around schools from 6am to 10pm - and indicated there will be further work on this legislation to focus it on public safety. You can read the bill here.

 

The House passed HB3813 to stop pension abuses by state workers who leave state employment for unions and other organizations and later return to the Illinois pension system. This bill would prevent double dipping and restrict state/teacher pensions to earnings based on those public sector jobs. This bill will be considered by the Senate the second week of veto session. Click here to read the bill.

 

Bills that Failed

 

There are 3 bills of note that failed to get enough votes to pass:

• Tenaska Coal Plant (SB678). This bill would have raised electricity rates to finance construction of a $3.5 billion "clean coal" plant by Tenaska, a Nebraska energy company, in down state Illinois. While the bill also contains strong energy efficiencies, there is concern about additional rate increases, guarantying the purchase of power for 30 years, and building a new coal plant.
• Regional Education Officers to be Paid from PPRT (HB3813). The Governor amendatorily vetoed the budget to delete payments to the Regional Educational Officers (REOs), who are elected officials. This bill would use about $14 million from the Personal Property Replacement Tax fund (PPRT) to pay the REOs. Monies in the PPRT fund are used by schools, cities, counties and park districts. This bill did not pass the House, with opponents generally feeling the REOs should be paid from the State's General Revenue Fund.
• Extending Contracts for State Employee Health Insurance (SB178). The State followed a new procurement law to bid group health insurance that resulted in a new provider winning the contract (with savings estimated near $100 million). In response to concerns about having to move to a new provider and implementation issues with the new provider, this bill would have extended the original contract for 2 years and provided the Commission on Government Forecasting and Accountability (a legislative body) authority to overturn state contracts. I believe this is a clear breach of separation of powers, with the legislature playing politics in the procurement process, and I am pleased that it failed.

Potential Issues For Second (Final) Week of Veto Session

 

We return to Springfield November 8th-10th. Items that may yet arise include:

• Gaming. The Governor does not support the gaming bill passed by the Legislature. He would like to narrow the bill to the 5 proposed casinos, with a portion of revenues from casinos going to race tracks to replace the new slots at race tracks and airports that was included in the bill that passed. He also proposes stronger oversight mechanisms. The Governor and legislative leaders are working on a new gaming proposal that may be considered in November.
• Chicago Mercantile Exchange (CME) Proposal. This bill would reduce corporate income taxes paid by the CME and Chicago Board of Options Exchange (CBOE). Currently, these financial institutions are charged for all electronic transactions (about 90% of trades are now done electronically rather than on exchange floors). Because the transactions are processed in Illinois, they are all subject to Illinois taxes. Many of the transactions do not involve any Illinois residents, however. This bill would rectify this situation be only taxing transactions when an Illinois resident is involved.
• Pension Reform. It is unclear whether or not a bill that would impact pensions for current employees going forward will be considered or not. The bill may include 3 options for employees: 1) keeping current benefits going forward with higher contributions; 2) moving to a lower benefit level going forward without an increase in contributions; or 3) moving to a 401(k) style defined contribution plan going forward.
• Health Insurance Exchange. Federal health care reform establishes new insurance exchanges by 2014. States can establish their own exchanges, or be included on the federal exchange. I have been serving on the legislative task force determining how to establish an exchange in Illinois. To apply for federal implementation dollars and provide lead time needed to appoint the board, hire staff, and get an exchange up and running by 2014 we may need legislation passed in veto session. The Exchange should enable individuals and small businesses to more easily compare available insurance options and reduce premium costs.

Please let me know if you have questions or would like additional information on these or any other topic. You can email me at hsteans@senatedem.ilga.gov or call me at 773-769-1717.

 

Best,

 

Heather Steans  

State Senator- 7th District