Illinois 2023 Lame Duck Session Update

The Illinois General Assembly returned to Springfield for Lame Duck Session from January 4 to 10. House and Senate Democrats passed many of their top priority bills, including a paid leave requirement for all businesses, assault weapons ban, abortion protection package, tax credit package which includes a closing fund, and changes to standardize the permitting process for wind and solar projects across the state. Additionally, the General Assembly passed an FY 2023 supplemental budget package after both the Commission on Government Forecasting and Accountability (CGFA) and the Governor’s Office of Management and Budget (GOMB) increased their FY 2023 revenue estimates by $4.9B and $3.69B respectively, at the end of last year. Following the conclusion of Lame Duck Session, the 103^rd General Assembly was inaugurated on January 11. The 2023 session is scheduled to adjourn on May 19.

More detailed information on key legislation from Lame Duck Session is available below.

FY 2023 Supplemental Budget Package

HB 969 (Harris/Harmon) creates the FY 2023 Supplemental Budget after both the Commission on Government Forecasting and Accountability (CGFA) and the Governor’s Office of Management and Budget (GOMB) increased their FY 2023 revenue estimates by $4.9B and $3.69B respectively, at the end of last year. The supplemental budget appropriates an additional $520M in General Revenue Fund (GRF) requests, $3.6B in other state fund requests, and $78.8M in federal fund requests. HB 969 passed the House by a vote of 70-44-0 last April 8, prior to being amended. It passed the Senate as amended by a vote of 30-21-1 on January 10. Later that day, the House concurred with Senate amendments by a vote of 71-36-0, and the bill now awaits the governor’s signature. Key provisions are listed below.

• $180M for a one-time Medicaid rate increase to hospitals and an additional $42M for safety net hospitals through DCFS and IDPH.
• $142M in GRF for costs associated with asylum seekers and an additional $20M for the City of Chicago.
• $100M in GRF for outstanding bills at DoIT.
• $75M in ARPA funds for housing through IHDA.
• $25M for state operated mental health facilities at DHS.
• $19M for health services at public higher education institutions.
• $12 for stability payments to mental health and substance use providers.
• $10M for a new licensing system at IDFPR.
• $10M for crime victims’ complementation at the court of claims.
• $10M each to the Supreme Court, state’s attorneys, and the State Appellate Defender’s Office for costs associated with the Pretrial Fairness Act.
• $5M GRF for hate crime prevention and response at the Department of Human Rights.

SB 1720 (Sims/Harris) establishes the Second FY 2023 Budget Implementation Act (BIMP) to implement HB 969. SB 1720 passed the Senate by a vote of 52-4-0 on April 21, 2021. It passed the House by a vote of 63-35-0 on January 6. On January 9, the Senate concurred with House amendments by a vote of 30-21-0, and the bill was signed into law, becoming Public Act 102-1115. Key provisions are listed below.

• $850M transfer from GRF to the Budget Stabilization Fund (rainy-day fund). Additionally, it raises the cap on funds in the Budget Stabilization Fund from 5% to 7.5% of the GRF budget. Note that GOMB’s FY 2023 supplemental budget proposal called for a $1.3B supplemental appropriation to the Budget Stabilization Fund. The other $450M will be transferred over 10 years as employers pay back the interest-free loan to the UITF in SB 2801.
• $400M transfer from GRF to the Large Business Attraction Fund (closing fund) under DCEO. Substantive language for the closing fund is included in the Invest in Illinois Act (SB 2951).
• Increases salaries for agency executives, executive branch officials, legislators, and constitutional officers.
• $460M for a one-time transfer to hospitals across the state to account for the rising cost of nursing and staffing shortages.
• $72M transfer from GRF to the Disaster Recovery Fund for costs associated with asylum seekers.
• Creates the Warehouse Safety Standards Task Force Act.
• Authorizes grants from the Illinois Law Enforcement Training and Standards Board (ILETSB) to units of local government and public education.

SB 2801 (Holmes/Welch) is the Unemployment Insurance Trust Fund (UITF) debt appropriation bill. It appropriates $1.36B from the General Revenue Fund (GRF) to pay off Illinois’ remaining federal UITF debt loan and an additional $450M from GRF to replenish the UITF balance as an interest-free loan to be paid back by employers. As employers repay the loan over 10 years, funds will be deposited into the Budget Stabilization Fund. SB 2801 passed the Senate by a vote of 46-9-0 in the fall Veto Session on December 1. The House did not have time to take up the measure in Veto Session and promised to take up the bill without amendment in Lame Duck. The House unanimously passed SB 2801 on January 10, and the bill now awaits the governor’s signature.

Invest in Illinois Act

SB 2951 (Villanueva/Zalewski) creates the Invest in Illinois Act, which makes a variety of changes to state tax incentive programs. SB 2951 unanimously passed the Senate last February 16, prior to being amended into the Invest in Illinois Act. It passed the House as amended by a vote of 86-23-0 on January 10. That same day, the Senate concurred with the House amendment by a vote of 40-15-0. The bill now awaits the governor’s signature. Key provisions are listed below.

• Establishes the substantive language for the Large Business Attraction Fund (closing fund) under DCEO. This fund gives DCEO the discretion to offer cash assistance to attract major job creators and investment in Illinois. The Senate President and Speaker of the House, but not the respective minority leaders, are given effective veto power over any proposed uses of funds. The supplemental BIMP (SB 1720) includes the $400M initial appropriation to the closing fund.
• Increases the Economic Development for a Growing Economy (EDGE) credit for job retention from 25% credit, regardless of location, to 50% for business in underserved areas.
• Expands the scope of the Reimagining Energy and Vehicles in Illinois (REV) Act (previously known as the Reimagining Electric Vehicles in Illinois Act) to allow renewable energy manufacturers to receive credits under the Act.
• Increases the maximum size of existing Enterprise Zones.
• Increases the Manufacturing Illinois Chips for Real Opportunity (MICRO) credit for job retention from 25% to 75%, or 100% in underserved areas.
• Creates a sustainable aviation fuel (SAF) credit of $1.50 per gallon of sustainable aviation fuel purchased.

Reproductive Rights Package

HB 4664 (Cassidy/Villanueva) works to create comprehensive protection for abortion and reproductive healthcare in Illinois, increasing access for Illinois residents and addressing increased demand due to bans in neighboring states. It is a direct response to the Dobbs decision overturning Roe v. Wade and allowing states to regulate abortion rights as they choose. HB 4664 passed the House last March 3, by a vote of 69-42-0, prior to being amended. It passed by the Senate as amended on January 10, by a vote of 41-16-0. Later that day, the House concurred with Senate amendments by a vote of 70-39-0. It was signed by the governor on January 13, becoming Public Act 102-1117. Key provisions are listed below.

• Makes assisted reproductive health a fundamental right under the Reproductive Health Act.

• Creates a two-year statute of limitations for claims under the Reproductive Health Act.

• Establishes a counter claim for people with a reproductive health claim against them in another state, as long as the action is legal in Illinois.
• Shields individuals in Illinois from foreign court orders related to reproductive health or gender-affirming care.
• Allows out-of-state physicians to certify the genetic makeup of embryos.
• Requires that abortion care coverage must include medication abortion with or without proof of pregnancy.
• Requires limited healthcare service organizations, counties, municipalities, and schools that offer health insurance plans to offer coverage for contraceptives, and abortion if they offer pregnancy-related benefits.
• Provides expedited temporary licenses for out-of-state healthcare providers seeking to practice in Illinois, including telehealth.
• Allows advanced practice registered nurses and physicians assistants to perform abortions, consistent with training.
• Requires IDPH to partner with nonprofits to provide abortion training, prioritizing underserved areas and transportation hubs.
• Permits IDPH to issue standing orders for hormonal birth control.
• Removes references to the repealed Parental Notification of Abortion Act.
• Amends Wrongful Death Act to protect healthcare providers performing lawful abortions.
• Changes abortion statistics reporting requirements from monthly to quarterly to protect patients.
• Prevents professional liability insurers from denying coverage for services that are unlawful in other states but legal in Illinois.
• Requires no cost health insurance coverage for PEP, PrEP, hormone therapy, and abortifacients beginning in the January 1, 2024, plan year.

Assault Weapons Ban

HB 5471 (Welch/Harmon) creates the Protect Illinois Communities Act, which bans assault weapons in the state of Illinois. HB 5471 unanimously passed the House last March 4, prior to being amended. It passed the Senate as amended on January 9, by a vote of 34-20-0. The House concurred with Senate amendments on January 10, by a vote of 68-41-0. The bill was signed by the governor on January 10, becoming Public Act 102-1116, and took effect immediately. Key provisions are listed below.

• Bans the manufacture, sale, and delivery of assault weapons, assault weapon attachments, and .50 caliber weapons, .50 caliber attachments, and rapid-fire switches. Switches are already banned at the federal level, but this legislation will provide a state avenue to prosecution.
• Bans large capacity magazines. Maximum of 10 rounds per magazine for long guns and 15 rounds per magazine for handguns.
• Grandfather clause for current owners of weapons and magazines that are banned under this legislation. Owners must provide information, including the make, model, and serial number of the weapon, to the Illinois State Police (ISP) under their FOID card registration file by January 2024. Grandfathered large capacity magazines will not need to be registered.
• Extends the maximum Firearms Restraining Order (FRO) timeframe from six months to one year.
• Provides ISP with administrative rulemaking authority to update the list of banned weapons and ensure that no hunting rifles are banned.
• Creates a list of individuals and purposes that are exempted from the assault weapons ban.

Paid Leave for All Workers Act

SB 208 (Lightford/Gordon-Booth) creates the Paid Leave for All Workers Act. Requires all employees in Illinois to receive a minimum of 40 hours of paid leave per every 12-month period. At minimum, one hour of paid leave is accrued per every 40 hours worked. This legislation applies to all businesses in Illinois, regardless of size. SB 208 passed the Senate by a vote of 37-18-0 on April 21, 2021, prior to being amended. It passed the House as amended by a vote of 78-30-0 on January 10. Later that day, the Senate concurred with House amendments by a vote of 38-16-0. The bill now awaits the governor’s signature.

Energy Omnibus

HB 4412 (Gabel/Cunningham) is an energy omnibus bill. It reforms the citing and permitting process for wind and solar development, taking best practices from counties that have been successful in developing wind and solar projects, and implementing them statewide. It additionally creates a mechanism to provide rate relief to Ameren customers, subject to appropriation. Finally, it clarifies the role of community-based organizations in the climate works pre-apprenticeship program from the Climate and Equitable Jobs Act (CEJA). HB 4412 passed the House last March 3 by a vote of 103-0-1, prior to being amended. It passed the Senate as amended on January 8 by a vote of 33-17-0. The House concurred with Senate amendments on January 10, by a vote of 73-36-0. The bill now awaits the governor’s signature.

Healthcare Omnibus

HB 240 (Harris/Gillespie) is a healthcare omnibus bill. It makes changes to the spring session FY 2023 BIMP to allow funds to flow to healthcare institutions to address challenges caused by the COVID-19 pandemic in our healthcare system. Provides funds to respond to ongoing COVID-19 changes to the healthcare workforce. Changes language regarding rural emergency hospitals to allow them to receive new federal funding. Creates an extension allowing for previously shut hospitals to reopen. Extends the implementation date of monetary penalties for nursing home staffing shortages until 2025. Makes a clarification allowing patients at low-risk DHS forensic hospitals to be treated in community hospitals, which will clear up crowding in county jails for mental health patients. Additional language clarifying the Medicaid access adjuster for ambulance and nursing homes payments, allowing them to receive federal funds. HB 240 unanimously passed the House on April 23, 2021, prior to being amended. It passed the Senate as amended on January 6 by a vote of 32-15-0. The House concurred with Senate amendments on January 10, by a vote of 85-24-0. The bill was signed by the governor on January 18, becoming Public Act 102-1118.

Other Key Legislation from Lame Duck Session

HB 45 (Tarver/Harmon) makes clarifications to the judicial subcircuit legislation from April. It also clarifies vote-by-mail (VBM) ballot verification procedure, allowing either the signature on the original VBM application or the signature on the voter registration card to be used to verify signatures on VBM ballots. VBM application signatures must be verified against voter registration signatures when approving VBM applications. The change to VBM signature verification is in response to a court decision in DuPage County, which ruled that only voter registration signatures could be used to verify VBM ballots. HB 45 passed the House on April 13, 2021, by a vote of 102-6-0, prior to being amended. It passed the Senate as amended on January 5, by a vote of 39-16-0. The House concurred with the Senate amendment on January 6, by a vote of 69-40-0. The bill now awaits the governor’s signature.

HB 268 (A. Williams/Feigenholtz) creates the Tourism Preservation and Sustainability Act. It allows for hotel owners to petition a local government to create a Tourism Improvement District. These districts can collect taxes on top of the standard Hotel/Motel tax, up to 5% of the hotel room rate per night. Requires a public hearing for hotel owners to object to any district formations. Local governments must transfer collected taxes to the local tourism and convention bureau for improvements and services within the district. HB 268 unanimously passed the House on April 20, 2021, prior to being amended. It passed the Senate as amended by a vote of 48-6-0 on January 5. On January 10, the House concurred with the Senate amendment by a vote of 73-30-0. The bill now awaits the governor’s signature.

HB 1688 (E. Hernandez/Villa) establishes two divisions of school bus driver permits to help address a shortage of drivers. First division vehicles include vehicles designed to carry 10 or fewer people, while second division vehicles are designed to carry more than 10 people. Requires Secretary of State to develop a classroom course, refresher course, and written test for the operation of first division vehicles as school busses, separate from the pre-existing courses and test for operating second division vehicles. This course must be offered by regional superintendents. HB 1688 unanimously passed the House last April 6. After being amended, it unanimously passed the Senate on January 8. On January 10, the House unanimously concurred with the Senate amendment. The bill now awaits the governor’s signature.

SB 1001 (Belt/Zalewski) reduces renewal fees for first-class wine manufacturers and first-class winemakers after they were increased earlier in the 102^nd General Assembly. It lowers online renewal fees from $1,200 to $750 and non-online renewal fees from $1,500 to $900. It also specifies that non-home rule municipalities cannot preempt the liquor delivery portions of the Liquor Code by enacting fees on liquor delivery. SB 1001 unanimously passed the Senate last April 6, prior to being amended. It unanimously passed the House as amended on January 6. On January 9, the Senate unanimously concurred with the House amendment, and the bill now awaits the governor’s signature.