2021 Illinois End of Veto Session Report

HB 1291 (Harmon) – Illinois Congressional Redistricting Act of 2021

Bill Summary

After releasing their fourth and final U.S. Congressional map proposal on the morning of October 28, the General Assembly passed HB 1291 later that night. The General Assembly did not hold a public hearing on the fourth proposal that was passed in HB 1291. However, Democrats claim that this final map is the result of public and stakeholder input throughout the redistricting process. Alternatively, Republicans harshly criticized the final map and the entire redistricting process. They believe that HB 1291 represents the worst example of gerrymandering in the country and will only lead to increased polarization in the future.

Currently, Illinois has 13 Democrat and 5 Republican U.S. Representatives. In the 2020 Census reapportionment process, Illinois lost one seat, bringing its total down to 17. The new map would create a 14-3 Democrat to Republican split using results from the 2016 and 2020 presidential elections. The map combines Republican Reps. Darin LaHood’s (R-18) and Adam Kinzinger’s (R-16) into one district. Following the passage of this map, Rep. Kinzinger announced his retirement from the U.S. House ahead of the 2022 midterm election, and potentially signaling a run for governor or U.S. Senate.

In the far southern Illinois Republican district, Reps. Mike Bost (R-12) and Mary Miller (R-15) are also placed into the same district. Democrats placed freshman Rep. Marie Newman (D-3) and Rep. Chuy Garcia (D-4) into the same Chicago-area district. Rep. Garcia is reportedly not worried about a potential primary challenge from Rep. Newman in his new majority-Latino district. Additionally, the map cedes territory from both Rep. Newman and Rep. Sean Casten’s (D-6) districts to create a new Latino district. This seat is open, with Chicago Ald. Gilbert Villegas (36) and Sen. Omar Aquino already having expressed interest in running.

Vote

HB 1291 passed the Senate by a vote of 41-18-0, and the House subsequently passed a concurrence motion by a vote of 71-43-0. Rep. Greg Harris filed a motion to reconsider the vote in the House, likely as a preventative measure so that Republicans cannot do so, but it was later withdrawn. Along with the state legislative maps, this map is likely to be targeted in court by Republicans and other groups who do not feel they are properly represented.

HB 1769 (Stadelman) – Reimagining Electric Vehicles in Illinois Act

Bill Summary

HB 1769 is the Governor’s electric vehicle (EV) package, which provides incentives to attract EV and associated businesses to Illinois. The bill aims to expand on electric truck manufacturer Rivian’s decision to locate in Normal, Illinois, and ultimately turn the state into the Silicon Valley of the EV industry. It provides tax incentives for companies of all sizes at every level of the EV sector, including for manufacturers, suppliers, and power supply manufacturers. Companies will be given an enhanced version of the state’s Economic Development for a Growing Economy (EDGE) credit program, with further incentives for locating in underserved or energy transition communities.

Members of both parties expressed support for this legislation, viewing it as a way to beat out neighboring states in the race to attract EV companies. Many companies will decide where to locate within the next 6 months. Without action from the General Assembly to incentivize EV companies, Illinois would likely lose out to other states who are giving millions to EV manufacturing. Aside from creating jobs, Democrats also touted how the bill includes a provision preventing EV companies that receive taxpayer money from interfering with union elections. Many Democrats used this provision to justify supporting a “race to the bottom” corporate tax incentive program.

Alternatively, Republicans emphasized how Illinois needs to compete with other states in the race to the bottom or companies will never choose to locate here. They believe that Illinois has all the advantages for business, but way too much government interference. Republicans strongly supported this bill as an example of bipartisanship and Democrats supporting good Republican ideas. However, many Republicans worry about the potential for Gov. J.B. Pritzker to end this program prior to the scheduled 15-year sunset.

Senate Floor Amendment 1

• An electric vehicle is any vehicle that plugs in to charge or has a pre-charged battery, is permitted on public roadways, and exclusively powered by electricity.
  • This doesn’t include electric motorcycles, hybrid or extended-range vehicles equipped with conventional engines.
• For a vehicle to be “manufactured in Illinois,” it must be under design, final assembly, processing, packaging, testing, or another process that adds value, quality, or reliability In Illinois.
• Priority in procurement is given to a bidder who will fulfill a contract through EVs manufactured in Illinois.
  • Specifications for contracts for EVs will include a price preference of at least 20% of a company’s total electric vehicles manufactured in Illinois.
• Tax incentives in the Reimagining Electric Vehicles in Illinois Act (REV), starting in 2025.
  • The taxpayer can claim tax credit against its obligation to pay over withholding.
  • If the taxpayer is a partnership or corporation, the credit will be allowed to the partners or shareholders as determined by income.
  • DCEO will adopt rules to enforce and administer this provision.
  • This credit has the following limitations:
    • It can be in the form of both/either the REV Illinois Credit and/or the REV Construction Jobs Credit.
      • These can’t go past the percentage of incremental income tax and of training costs permitted by this Act and the project’s agreement.
    • The amount of the credit allowed in a given tax year, plus the sum of the amounts in those prior, cannot exceed the maximum amount established in the agreement.
    • The credit is determined annually, and it can’t be applied against any state income tax liability in more than 15 taxable years.
    • If a credit isn’t used in the year it’s computed, it can be applied to tax liability of the next five taxable years.
      • If there is more than one of these, the credit from the earlier year will be applied first.
    • A credit won’t be allowed for a taxable year after the noncompliance date.
    • If a taxpayer stops a project that is subject to an agreement in an effort to stop operations in Illinois, their tax will be increased by the amount of any credit allowed prior to the date operations stop.
    • Instead of claiming credit against taxes imposed in the Act, a taxpayer can claim the credit against their obligated to pay over withholding under the Illinois Income Tax Act.
      • The credit cannot be used to do both – claimed against taxes in the Act and against withholding.
• A taxpayer, starting in 2025, can claim a credit against the Act’s imposed taxes for investment in qualified property at the site of a REV Illinois Project and subject to an agreement between the taxpayer and the DCEO.
  • The credit is available for 0.5% of the basis for the property.
    • The basis is the basis used to compute the depreciation deduction.
  • It is allowed for the tax year in which the property is placed in service.
    • If it exceeds the liability for that year, it can be carried for the next five taxable years.
      • It will be applied to the first year there is liability.
  • A qualified property means:
    • It is tangible, including buildings and structural components of buildings.
    • It is depreciable and acquired per the IRS code.
      • Three-year property is not eligible for this credit.
    • It is used at the site of a REV Illinois Project by the taxpayer.
    • It has not been used in a way that would qualify for this credit previously.
  • If a property stops being qualified property after being put into service, the tax imposed by this Act will be increased.
• Starting in 2025, a taxpayer making an election under the REV Act can have a credit against payments during the first quarterly reporting period after the certification is issued.
  • The credit is equal to the amount of the REV Illinois Credit attributable to the incremental income tax applied to employees as certified by DCEO.
  • This credit cannot make an income tax obligation less than zero.
    • If the credit exceeds the total amount due, it can be carried over.
  • An employer who retains income tax withholdings needs to pay DCEO the withheld taxes.
• A retailer that sells building materials used at any point in the manufacturing of EVs or EV power supply can deduct them when they calculate local use and occupation taxes.
  • The retailer must get the purchaser’s REV Illinois Building Materials Exemption certificate number. If a purchaser doesn’t have one, they cannot make tax-free purchases.
    • A manufacturer can request DCEO to issue these to their contractors, including the following information:
      • Name and address of contractor.
      • Name and location of building project site.
      • Estimated amount of the exemption based on a stated estimated average tax rate and the percentage of the contract that consists of materials.
      • When the materials are going to be purchased.
      • Other reasonable information as determined by DCEO.
    • DCEO must issue certificates within 3 days of request, as they are able.
      • They do not have to issue one to somebody in default to DCEO for money they need to pay per this Act.
    • The certificate number should reveal all necessary information about a contractor and the manufacturer they are contracting for.
    • The certificate will expire after at most 5 years.
      • Renewal is possible.
      • A certified entity can ask that their certification to be rescinded before expiration.
  • If the Department of Revenue finds that a tax-exempt purchase was made that wasn’t eligible for exemption, they can administer a penalty equal to what the tax would’ve been, plus the local retailers’ occupation tax.
• If a governing body votes to do so, they can order the clerk of their municipality or county to abate any portion of real property taxes on a REV Illinois project facility.
• Gross charges do not include any EV sector manufacturer given a DCEO certificate of exemption.
• The Electricity Excise Tax Law does not impose tax on electricity used at a REV Illinois project site that has a tax-exempt certification from DCEO.
• Utilities cannot load the cost of a tax put on them onto EV sector manufacturers.
• A manufacturer will reimburse a dealer at the retail price charged by the dealer for parts that are not provided to satisfy warranty, given that the price is not unreasonable compared to neighboring dealers.
• The EV Permitting Task Force is created within IEPA.
  • Membership includes:
    • EPA Director.
    • Director of Natural Resources.
    • Secretary of Transportation.
    • Eight Governor-appointed members from a variety of stakeholder organizations.
  • Task force duries:
    • Identify challenges for the EV industry regarding permitting form the IEPA, DNR and DOT.
    • Assess State permitting fees and their revenue production.
    • Assess permitting needs of the EV industry.
    • Recommend changes to speed up permitting process.
      • Analyze whether increased staff will be needed to do this.
    • Recommend adjustments to permitting fee structures.
    • Consider permitting effects on deploying EV charging stations.
    • Recommend legislative and regulatory actions.
  • It must be made by December 15, 2021 and will be dissolved when it files its report.

Senate Floor Amendment 4

• Expands the definition of electric vehicles to include electric motorcycles.

Vote

• HB 1769 passed the Senate unanimously and passed the House by a vote of 120-2-1.

HB 106 – Transportation Omnibus

Bill Summary

The transportation omnibus authorizes the Secretary of State’s to adopt emergency and permanent administrative rules, as well as extend drivers’ license expiration dates through the end of 2022. It additionally allows the Regional Transportation Authority (RTA) to generate less than 50% of its operating revenue from fares through 2023. The bill removes exemptions for airline employees from the Employees Sick Leave Act, allowing them to use sick leave to care for relatives. It authorizes the General Assembly to pay for the cost of parking for members and Capitol staff at certain offsite state-owned parking lots while construction is ongoing at the Capitol. Finally, it offers support to homeowners near Midway Airport to have their windows and doors replaced as needed.

Senate Floor Amendment 2

• Until January 1, 2023, the Secretary of State has emergency rulemaking powers and the power to adopt permanent administrative rules.
  • They can extend expiration dates of driver’s licenses, permits, and ID cards that originally expired on or after January 1, 2020 to December 31, 2020.
  • They can also change the requirements to renew these documents, though these changes cannot last for more than one renewal cycle after the rule is made.
  • Renewal must happen in the next extension period.
    • During this time, the Secretary of State can charge all fees they would otherwise require except late filing fees.
  • Law enforcement agencies must recognize this Act.
    • If questioned, Secretary of State will issue a statement verifying the extension was pursuant to Illinois law, and ask the entity to honor that law.
• Until December 31, 2024, members and employees of the General Assembly who apply for and are given offsite parking places may instead have their parking fee paid by the General Assembly.
  • The President of the Senate and the Speaker of the House can authorize payment of fees from appropriations made to the Assembly.
• A municipality that has implemented a Residential Sound Insulation Program to mitigate aircraft noise will replace windows and doors in at least 750 residences per year.
  • Residents who altered or accepted a replacement screen for their window cannot be disqualified for from compensation or future services.
  • Residents can choose the color and type of replacement window as offered by the city vendor.
    • A showcase of available options will be located at Midway Airport.
  • The advisory committee of this program will include two members appointed by House Speaker and two by the Senate President.
    • This committee will develop a process that allows homeowners show extreme hardship.
      • At least 10% of homes receiving a replacement should be these homes.
    • The committee will then issue a report on all services related to this program.
    • The committee must accept all questions and provide a response within two business days.
• The aggregate of all projected RTA fare revenues in FY21, ’22 and ’23 may be less than 50% of the aggregate costs of public transit in those years.
  • The aggregate of all projected RTA fare revenues in FY21, ’22 and ’23 may be less than 10% of the aggregate costs of providing ADA paratransit services in those years.
• The Employee Sick Leave Act now includes airline employees of an entity subject to Title II of the Railway Labor Act.

Vote

• HB 106 passed the House by a vote of 75-39-0 and the Senate by a vote of 41-18-0.

HB 370 (Moeller) – Youth Health and Safety Act

• States Illinois’ commitment to full and equitable access to reproductive healthcare.
• Creates the Youth Health and Safety Advisory Working Group.
  • Identifies and reviews laws that impact pregnant people.
  • The working group should provide information and resources for pregnant and parenting youth.
  • The members of the working group should include and represent the diversity of Illinois.
  • The working group shall issue a report to the Governor and General Assembly no later than July 1, 2023.
  • The Act is repealed on January 1, 2024.
• Repeals Parental Notification of Abortion Act (Public Act 89-18 from 1995).

Vote

• HB 370 passed the Senate by a vote of 32-22-0 and the House concurred by a vote of 62-51-0.

HB 594 (Lightford) – Sunset Omnibus

Senate Floor Amendment 2

• The Illinois Health Information Exchange and Technology Act is repealed on January 1, 2027.
• Additions to Future of Work Task Force membership.
  • A representative of a labor organization recognized by the NRLA in the auto industry, appointed by the Governor.
  • A representative from the University of Illinois School of Employment and Labor Relations, appointed by the Governor.
  • A representative of a professional teachers’ organization located in a city of over 500,000 people, appointed by the Governor.
  • 3 members of the business community jointly appointed by Minority Leaders.
  • These appointments must be finalized by December 31, 2021.
• The Local Journalism Task Force must add representatives from the Chicago News Guild and the Chicago Chapter of the National Association of Broadcast Employees and Technicians.
• Additions to the Kidney Disease Prevention and Education Task Force.
  • A dialysis patient, appointed by the co-chairs.
  • A chronic kidney disease patient, appointed by the co-chairs.
  • A kidney transplant recipient, appointed by the co-chairs.
  • A representative of a program working to break barriers to transplant in black communities, appointed by the co-chairs.
  • A representative of a nationwide, non-profit with dialysis and pre-dialysis members, appointed by the co-chairs.
• Replaces the Department of Central Management Services with the Commission on Equity and Inclusion in for veteran own-business development initiatives.
• The Kidney Disease Prevention and Education Task Force is repealed on June 1, 2024.
• The “single prime” design-bid-build procurement delivery method for construction projects is repealed on January 1, 2024.
• The “single prime” design-bid-build procurement delivery method for construction projects runs through December 31, 2023.
  • A requirement for contracts over $250,000 to prepare separate specifications will begin on January 1, 2024.
• The mechanics lien demand and referral pilot program is repealed on January 1, 2024.
  • The requirement, under the above program, that a county’s code hearing unit must adjudicate an expired mechanics lien, is repealed on January 1, 2024.
• The Lake County Children’s Advocacy Center Pilot Program is repealed on January 1, 2024.
• The Inclusive American History Commission now includes social science standards for pre-k students.
  • They must report to the Governor before February 28, 2022.
• The Whole Child Task Force will report to the Governor, the SBOE, the Illinois Legislative Black Caucus, and the GA before March 15, 2022.
• The requirement that the University of Illinois Hospital shall provide N95 masks to physicians is repealed on July 1, 2022.
• The strategic plan to address poverty and economic security will develop a plan no later than March 31, 2022.
  • The Commission on Intergenerational Poverty will report no later than March 31, 2022.
  • Beginning March 31, 2022, the Commission will issue a report on the status of the strategic plan.
• The Rare Disease Commission will report annually through 2026.
  • The Commission is repealed on January 1, 2027.
• The Department governing the Farmer Equity Act will submit a report before December 31, 2022 and will be repealed January 1, 2024.
• The mechanics lien administrative adjudication section of the Counties Code will be repealed January 1, 2024.
• The “speed bump” date for the Unemployment Insurance Trust Fund is extended from January 1, 2021 to July 3, 2022.
  • This allows time for the GA to appropriate ARPA funds to address pay off debts to the Unemployment Insurance Trust Fund in the 2022 legislative session.
  • If this speed bump were allowed to hit on January 1, benefits to employees would have to be decreased and taxes on employers would be increased.
  • Rep. Dan Caulkins and Rep. Steve Reick ceremonially voted against this bill because they wish the GA took up a measure to appropriate ARPA funds in veto session.
    • Since they chose to wait until 2022, taxpayers have to continue to pay interest and continue increasing debt to the Unemployment Insurance Trust Fund. 

Senate Floor Amendment 4

• Requires the Governor to release a budget on the first Wednesday of February 2022.

Vote

• The bill passed in the Senate 58-0-0, then it passed a House concurrence motion 112-2-0.
  • The House chose not to adopt Senate Floor Amendments 1 and 3.

HB 2791 (Peters) – The Reimagine Public Safety Act Trailer

Senate Floor Amendment 2

• Excludes self-inflicted incidents from the 35,000 residents shot by a firearm per capita to  determine what is considered “concentrated firearm violence.”
• Adds that evidence-based methods must be proven.
• “Criminal justice-involved youth” is now called “criminal and juvenile justice-involved youth.”
• A public health approach to Illinois’ firearm epidemic should reduce risk factors for youth and families living in areas at the highest risk of firearm violence victimization.
• Changes the creation date of the Office of Firearm Violence Prevention (OFVP) under DHS from September 1 to October 1, 2021.
  • Funds will be distributed to all necessary entities, including youth development organizations and high-risk youth intervention organizations, by both DHS and OFVP.
• OVFP will determine the 10 most violent neighborhoods (or contiguous geographic areas) of Chicago.
  • They’ll then identify 7 more areas, with populations of 35,000 or more, across the state by considering the number of victims in rank order and the per capita rate.
    • They can add up to 5 additional areas beyond the original 10 and 7. These 5 areas are also eligible for funding after additional risk factors contributing to community firearm violence are considered.
  • For each of these areas, OFVP will identify an experienced violence prevention organization to serve.
• Establishes a position of Lead Violence Prevention Convener who will:
  • Provide the convened organizations with summary notes.
  • Make consensus recommendations on behalf of the convened organization.
• OVFP will select 2-3 technical assistance and training providers for violence prevention organizations that request training.
  • They will receive a base grant of up to $250,000 plus negotiated service rates to provide group and individualized services.
• OVFP will issue grants of $300,000 to 2-6 violence prevention organizations in each eligible area.
  • OVFP can change the award ranges if needed.
• High-risk youth intervention program participants will receive needed services as determined by the individualized assessment.
  • These service organizations must have trained clinical staff.
  • No high-risk youth intervention organization can serve more than 13 eligible service areas.
• Resources to the eligible areas – as identified by OVFP – will be given based on a formula maximizing the total potential reduction in firearms victimization.
• Local advisory councils made by OVFP will have additional members as determined by each council.
• Initial grants should be named no later than April 1, 2022 and renewed or bid-on in subsequent fiscal years.

Vote

• HB 2791 passed the Senate by a vote of 52-0-0, and the House passed a concurrence motion by a vote of 71-41-0.

HB 3136 (Cunningham) – Gaming Omnibus

Bill Summary

This bill is nearly identical to SB 521, the original Gaming Omnibus that failed to pass in May, but with two changes. First, HB 3136 changes the grandfather date for municipal video gaming terminal (VGT) push taxes from June 1 to November 1, 2021. Municipalities that do not have a VGT push tax in place prior to November 1 are banned from adding one, and municipalities that already had a push tax can no longer increase it after November 1. Second, the bill allows for mobile sports betting registration to begin on March 5, 2022. This date cannot be delayed even if the Illinois Gaming Board is slow to approve licenses. The March 5 date occurs prior to the beginning of the NCAA March Madness basketball tournament when many new signups are expected.

Senate Floor Amendment 2

• The Illinois Racing Board will seek applications for a standardbred racing license for racetrack located in Cook County.
  • They can approve this license at any meeting.
  • They must examine an ap