Illinois Chamber Rail Report from Springfield

March 10, 2023

CommunityEconomic DevelopmentFinancialHealth & LifestyleSmall BusinessTechnology

ILLINOIS CHAMBER
Rail Report

March 9, 2023

Highlights from Today:

The House and Senate were both in Springfield for this week's third day of session which was once again full of committee action. As this is committee deadline week, no action of note occurred on the floor.

The Senate and House will both return to the floor tomorrow, March 10th.

Committee Action of Note:

HB 1021, Patient Rights passed out of House Health Care Licenses Committee 8-4-0. This bill provides that each patient has the right to receive care from a medical professional who is culturally sensitive to the patient's life experience.

HB 1068, Discrimination/Insurance passed out of House Insurance Committee 10-5-0. This bill provides that an insurer or producer authorized to issue policies of insurance in the State may not make a distinction or otherwise discriminate between persons, reject an applicant, cancel a policy, or demand or require a higher rate of premium for reasons based solely upon the basis that an applicant or insured has been convicted of a felony.

HB 1527, Vehicle Disablement passed out of House Consumer Protection by a vote of 6-3-0. This bill defines "disablement technology" as any instrument, device, machine, or equipment, whether software or hardware, that can be used to disable the starter of a motor vehicle, prevent fuel from flowing to the engine, prevent electricity from flowing to the engine, or otherwise prevent the vehicle from being started or driven by a person. Provides that disablement technology shall not be used as an aid to the physical retrieval of a vehicle as part of repossession or as a consequence for nonpayment under a retail installment contract or other instrument. Provides that a violation is an unlawful practice within the meaning of the Consumer Fraud and Deceptive Business Practices Act. Provides that a consumer whose vehicle is subject to the activation of disablement technology may bring an action against an activating person or entity for damages of $1,000 per month per violation plus actual damages and attorney's fees. Provides that disablement technology may be offered for sale or sold only for antitheft purposes, either on its own or for an additional fee in connection with the purchase of a motor vehicle. Requires a motor vehicle dealer that sells a motor vehicle containing disablement technology to comply with specified requirements. Provides that data generated or stored by disablement technology as the result of a consumer's vehicle usage is the personal property of the consumer, and the consumer is entitled to all profits and other benefits flowing from the sharing or sale of the data. Provides that data generated or stored by disablement technology that is installed in a consumer's vehicle, and data transmitted by or through the disablement technology that relates to the consumer or the consumer's use of a motor vehicle, may not be sold or otherwise shared with any third parties except as required by federal, State, or local law, or required by court order.

HB 2130, Insurance Data passed out of House Cybersecurity, Data Analytics & IT Committee 9-4-0. This bill creates the Insurance Data Security Law. Sets forth provisions concerning an information security program, investigations of cybersecurity events, and notifications of cybersecurity events. Provides that the Director of Insurance shall have power to examine and investigate into the affairs of any licensee to determine whether the licensee has been or is engaged in any conduct in violation of the Act. Provides that whenever the Director has reason to believe that a licensee has been or is engaged in conduct in the State which violates the Act, the Director may take action that is necessary or appropriate to enforce the provisions of the Act. Provides that any documents, materials, or other information in the control or possession of the Department of Insurance that are furnished by a licensee or an employee or agent acting on behalf of a licensee or that are obtained by the Director in an investigation or examination shall be confidential by law and privileged, shall not be subject to the Freedom of Information Act, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action. Sets forth provisions concerning exceptions, penalties, and severability. Provides that the Department may adopt rules necessary to carry out the provisions of the Act.

HB 2816, Small Business Subcontractor passed out of the Small Business, Tech Innovation, and Entrepreneurship Committee by a vote of 6-4-0. This bill provides that a small business subcontractor may enter into an agreement with the Department of Transportation to receive direct payments from the Department on a construction project. Amends the State Prompt Payment Act. Requires contractors to pay each subcontractor and material supplier within 7 business days after receiving payment (currently, 10 business days or 15 calendar days). Provides that when a State official or agency responsible for administering a contract submits a voucher to the Comptroller for payment to a small business subcontractor who enters into a specified contract under the Department of Transportation Law, that State official or agency shall make available electronically the voucher information. Provides that if a contractor is assessed liquidated damages from the State, the contractor is still responsible to each subcontractor under subcontracts. Provides that contractors are responsible for reasonable attorney's fees if an administrative law judge finds in favor of the subcontractor. Provides that if a contractor with the Department or a small business subcontractor claims that additional payment is due under the terms of the contract, and the Department of Transportation has not agreed that payment is due, the contractor or subcontractor desiring to pursue additional compensation shall file a claim according to the requirements and procedures specified by the Department. Provides that, if the claim, after consideration by the Department, is found to have merit, the Department will make an equitable adjustment.

HB 3017, Permit Issuance passed out of House Small Business, Tech Innovation, and Entrepreneurship Committee by a vote of 10-0-0. This bill modifies requirements concerning the Office of Business Permits and Regulatory Assistance. Provides that the Office shall implement reforms to improve interagency coordination and encourage expeditious permit issuance. Provides that the Office shall use information technology tools to track project schedules and metrics in order to improve transparency and accountability of the permitting process, reduce uncertainty and delays, and reduce costs and risks to taxpayers. This is a Chamber/IERG Initiative. The Chamber and IERG both provided testimony in support.

HB 3144, DCEO/Chamber of Commerce passed out of House State Government 6-3-0. This bill provides that the Department of Commerce and Economic Opportunity shall establish a Local Chamber of Commerce Business Program for the purpose of providing grants to certified local chambers of commerce. Provides that grant moneys may be used to market and develop the service area of the chamber of commerce for the purpose of generating local, county, and State business taxes and to provide small businesses with professional development, business guidance, and best practices for sustainability.

HB 3303, Business Improvement Districts passed out of House Small Business, Tech Innovation, and Entrepreneurship Committee by a vote of 6-4-0. This bill creates the Business Improvement District Law. Provides for the establishment of business improvement districts by a county or municipality by ordinance after petition of a percentage of property owners or business owners, creation of a district plan, notice, and hearings. Provides that a business improvement district may impose district charges on property owners whose real properties are located within the business improvement district or on businesses within a business improvement district. Provides that the county or municipality shall contract with a district management association to administer or implement activities and improvements specified in the district plan. Contains provisions relating to district plans, formation of a district, district boundaries, issuance of bonds, terms and renewal of districts, amendment to district plans, governance of the district, reports of a district management association, dissolution, and legislative purpose. Limits the concurrent exercise of home rule powers.

HB 3478, Automatic Contract Renewal passed out of Consumer Protection Committee 6-3-0. This bill provides for additional violations, notification, and cancellation requirements for a person, firm, partnership, association, or corporation that makes an automatic renewal offer or continuous service offer to a consumer. Provides that a person, firm, partnership, association, or corporation that makes an automatic renewal offer or continuous service offer shall provide a toll-free telephone number, email address, a postal address if the seller directly bills the consumer, or it shall provide another cost-effective, timely, and easy-to-use mechanism for cancellation.

HB 3603, Health Data passed out of House Judiciary-Civil by a vote of 10-5-0. This bill provides that a regulated entity shall disclose and maintain a health data privacy policy that, in plain language, clearly and conspicuously disclosures specified information. Provides that a regulated entity shall prominently publish its health data privacy policy on its website homepage. Provides that a regulated entity shall not collect, share, sell, or store categories of health data not disclosed in the health data privacy policy without first disclosing the categories of health data and obtaining the consumer's consent prior to the collection, sharing, selling, or storing of such data. Prohibits the collection, sharing, selling, or storing of health data. Describes the regulated entity's duty to obtain consent; the consumer's right to withdraw consent; prohibitions on discrimination; prohibitions on geofencing; a private right of action; enforcement by the Attorney General; and conflicts with other laws. The Sponsor has committed to amend the bill and is seeking input from opponents. The Chamber opposes this bill.

HB 3641, Local Regulation passed out of House State Government 6-3-0. This bill provides that ordinances of units of local government may not be enforced against construction, reconstruction, improvement, or installation of State facilities. Provides that units of local government cannot require payment of permitting fees or require permit inspections for the construction, reconstruction, improvement, or installation of State facilities. Provides that the provisions apply to construction, reconstruction, improvement, or installation of projects that are ongoing on the effective date of the amendatory Act and to all projects started on or after the effective date of the amendatory Act. Provides that the regulation of local ordinances, fees, and inspections affecting the construction, reconstruction, improvement, or installation of State facilities are exclusive powers and functions of the State.

HB 3563, AI Task Force passed out of House Cybersecurity Committee by a vote of 13-0-0. This bill provides that the Department of Innovation and Technology shall establish the Generative AI and Natural Language Processing Task Force investigate and provide a report on generative artificial intelligence software and natural language processing software. Sets forth the members to serve on the Task Force. Provides that the Task Force shall hold at least 5 meetings, and specifies the format and the location of those minimum amount of meetings. Provides for additional responsibilities of the Task Force. Provides that the Department of Innovation and Technology shall provide administrative and technical support to the Task Force. Provides that the Task Force shall provide a report to the Governor and the General Assembly covering the Task Force's investigation into generative artificial intelligence software and natural language processing software and the Task Force's additional responsibilities.

SB 58, Single-Use Plastic passed out of Senate State Government 9-0-0. This bill creates the State Entities Single-Use Plastic Reporting Act. Requires, beginning July 1, 2024, each State agency to (i) track the purchase of single-use plastics on behalf of the State agency that do not require procurement contracts for one year, (ii) establish goals on reducing single-use plastic purchases based on the information obtained from the purchase tracking, and (iii) submit a report of its findings to the Governor and the General Assembly on or before October 1, 2025. Defines terms. Amends the Illinois Procurement Code. In a provision regarding environmentally preferable procurement: Removes language providing that if contracting for an environmentally preferable supply or service would impose an undue economic or practical hardship on the contracting State agency, or if an environmentally preferable supply or service cannot be used to meet the requirements of the State agency, then the State agency need not contract for an environmentally preferable supply or service. Provides instead that when a State agency is to award a contract to the lowest responsible bidder, an otherwise qualified bidder who will fulfill the contract through the use of compostable foodware or recyclable foodware may be given preference over other bidders unable to do so, as long as the bid is not more than 5% greater than the cost of products that are single-use plastic disposable foodware.

SB 76, Nuclear Power passed out of Senate Energy and Public Utilities 15-1-0. This bill replaces everything after the enacting clause. Amends the Public Utilities Act. Deletes language that provides that no construction shall commence on any new nuclear power plant to be located within the State, and no certificate of public convenience and necessity or other authorization shall be issued therefor by the Illinois Commerce Commission, until the Director of the Environmental Protection Agency finds that the United States Government, through its authorized agency, has identified and approved a demonstrable technology or means for the disposal of high level nuclear waste, or until such construction has been specifically approved by a statute enacted by the General Assembly.

SB 203, Pesticides Penalties passed out of Senate Agriculture 9-3-0. This bill provides that for any person applying a pesticide that results in exposure to the pesticide by a human, the penalty shall be $2,500. Provides that an additional penalty of $1,000 shall be assessed for each individual human exposed to the pesticide.

SB 1398, Battery Recycling passed out of Senate Energy and Public Utilities 17-0-0. This bill requires the Illinois Environmental Protection Agency to adopt rules requiring each manufacturer of an electric vehicle that is sold in the State and contains a lithium-ion battery and each manufacturer of lithium-ion batteries sold in the State to submit a battery recycling plan to the Agency by June 1, 2024. Prohibits the disposal of lithium-ion batteries in sanitary landfills. Makes the disposal prohibitions in the bill take effect July 1, 2024.

SB 1509, Teledental passed out of Senate Licensed Activities 9-0-0. This bill provides that a person who provides teledentistry is considered to practice dentistry under the Act. Provides that a dentist practicing teledentistry is subject to the same standard of care as if those services were being delivered in a clinic or office setting. Provides that a patient receiving dental services through teledentistry shall be provided with the name, direct telephone number, and physical practice address of the treating dentist who will be involved in the teledentistry services. Provides that the Department of Financial and Professional Regulation may adopt rules to implement the provisions of the use of teledentistry services. Provides that it shall be a violation of the Act for a provider of dental services utilizing care through teledentistry to require a patient to sign an agreement that limits in any way the patient's ability to write a review of services received or file a complaint with the Department or other regulatory agency. Provides that a person may not sell a clear aligner to a patient unless the person has received written or electronic confirmation from a dentist licensed in this State that the patient has received an intraoral or extraoral dental examination and has had a review of new or recently conducted x-rays, panoramic x-rays, computed tomography, bone imaging scans, or other appropriate diagnostic imaging sufficient to allow the dentist to detect conditions in the patient that would preclude or contraindicate the provision of safe orthodontic treatment. Provides that a person who sells a clear aligner to a patient shall maintain any documents for not less than 7 years after the date of sale. Provides that prior to providing teledentistry services to a patient, a dentist must obtain informed consent from the patient as to the treatment proposed to be offered through teledentistry by the dentist. Provides that a patient who is provided services by a public health dental hygienist who has a public health supervision agreement is not a patient of record.

SB 1555, Packaging and Paper Stewardship passed out of Senate Environment and Conservation 6-3-0. Creates the Packaging and Paper Products Stewardship Act. Provides that a producer responsibility organization shall be established to carry out the Act's provisions. Tasks the Environmental Protection Agency with providing administrative support under the Act. Establishes the Packaging and Paper Product Producer Responsibility Advisory Council to provide advice and recommendations in the drafting, amendment, or approval of program plans and to oversee and provide recommendations for the implementation of program plans. Requires producers, in consultation with the Advisory Committee, to adopt and publish a list of minimum types of readily recyclable materials based on available collection and processing infrastructure and recycling markets for covered materials. Tasks the Prairie Research Institute with conducting a study and preparing a statewide needs assessment to assess recycling and covered materials management needs in the State. Provides that, no later than January 1, 2026, producers shall submit a producer responsibility program plan for the Agency's approval. Requires producers to establish waste prevention and reuse programs and composting infrastructure and education programs. Permits the development and operation of an alternative collection program to collect and manage a type or types of covered materials sold, offered for sale, distributed, or served to consumers in the State that are not on the minimum recyclable materials list. Requires producers to submit annual reports to the Agency. Allows postconsumer recycled content requirements in specific products to be waived by the Agency if specified requirements are met. Contains provisions concerning a plastics recycling technologies study, outreach and education, penalties for violations, severability, and other provisions.

SB 1561, E-cigarettes passed out of Senate Executive 10-1-0. This bill provides that a retail tobacco store that derives at least 80% of its gross revenue from the sale of electronic cigarettes and electronic cigarette equipment and accessories in operation before the effective date of the amendatory Act qualifies for a specified exemption for electronic cigarettes only. Provides that a retail tobacco store claiming an exemption for electronic cigarettes shall annually file with the Department of Public Health by January 31 an affidavit stating the percentage of its gross income during the prior calendar year that was derived from the sale of electronic cigarettes. Includes a workplace that manufactures, imports, or distributes electronic cigarettes in the definition of "retail tobacco store".

SB 1563, Microplastics passed out of Senate Environment and Conservation 8-0-0. This bill provides that on or before July 1, 2025, the Environmental Protection Agency shall propose and the Pollution Control Board shall adopt rules defining what microplastics are for purposes of regulating their presence in drinking water. Provides that on or before July 1, 2025, the Agency shall develop and submit a plan to the General Assembly and the Governor that determines a standard methodology to be used in the testing of drinking water for microplastics based on the most up-to-date guidance and information from the United States Environmental Protection Agency.

SB 1570, Municipal Design Build passed out of Senate Local Government 11-0-0. This bill creates the Municipal Design-build Contracts Division in the Illinois Municipal Code, which may be cited as the Municipal Design-build Authorization Act. Provides that a municipality may enter into design-build contracts. Includes scope and performance criteria for design-build contracts, a two-phase procedure for selection of contracts, requirements for submission of proposals, procedures for awarding contracts, and requirements of reports and evaluation of contracts. Provides that, if the total overall cost of a project is estimated to be less than $12,000,000, the municipality may combine the two-phase procedure for selection into one phase. In provisions about submission of proposals, provides that, after a response to a request for qualifications or a request for proposal has been submitted, a design-build entity may not replace, remove, or otherwise modify any firm identified as a member of the proposer's team unless authorized to do so by the municipality.

SB 1673, MWRD/Civil Penalty passed out of Senate Local Government 10-0-0. This bill provides that the Metropolitan Water Reclamation District of Greater Chicago may provide for a civil penalty for each offense of not less than $100 nor more than $1,000, with each day's continuance of a violation to be a separate offense, excluding costs and fees that may be assessed. Requires a hearing in front of the board of commissioners, or its designee, before a civil penalty may be imposed. Specifies procedures that must be adopted by the board of commissioners relating to imposing a civil penalty.

SB 1696, PFAS passed out of Senate Environment and Conservation 7-1-0. This bill amends the PFAS Reduction Act. Requires the Environmental Protection Agency to follow the most up-to-date guidance from the United States Environmental Protection Agency on controlling the discharge of PFAS. Requires the Agency to create a PFAS monitoring plan focusing on: monitoring PFAS-contamination at solid waste, wastewater, and stormwater facilities, hazardous waste landfills, and facilities with air emissions; gathering State-specific information in order to craft effective policies around PFAS; identifying areas of particular concern due to PFAS concentrations or routes of exposure that need quick action; and gathering data that galvanizes support for PFAS source reduction and pollution prevention. Requires the plan to be submitted to the Governor and the General Assembly by July 1, 2024.

SB 1769, Govt. Zero Emission Vehicles passed out of Senate Environment and Conservation 6-2-0. This bill establishes that all vehicles purchased or leased by a governmental unit after January 1, 2025, must be a zero-emissions vehicle or converted zero-emissions vehicle. Provides that a "zero-emissions" vehicle means a passenger (rather than a passenger and commercial) motor vehicle that produces zero exhaust emissions of any criteria pollutant, precursor pollutant, or greenhouse gas, but only produces water vapor, in any mode of operation or condition, as determined by the Agency. Requires the Environmental Protection Agency to adopt rules to implement and enforce this Act.

SB 1800, Fleet Electrification passed out of Senate Environment and Conservation 6-2-0. This bill requires the Environmental Protection Agency to establish a Fleet Electrification Incentive Program to promote the use of electric trucks by fleet owners by offering a voucher of $200,000 per electric Class 6 truck, electric Class 7 truck, or electric Class 8 truck purchased or leased for a fleet by the fleet's owner or operator. Provides that an applicant shall submit a proof of purchase, lease, or other binding contract regarding the electric Class 6 truck, electric Class 7 truck, or electric Class 8 truck in order to be awarded the voucher. Requires an applicant who is awarded a voucher to agree to participate in annual surveys on specified metrics.

SB 1875, JCAR passed out of Senate Executive 11-0-0. This bill amends the Illinois Administrative Procedure Act. In provisions concerning general, emergency, and peremptory rulemaking, specifies that State agencies shall accept submissions in writing, including submissions by email, and may, in their discretion, accept oral submissions. Requires each summary in a regulatory agenda to contain, among other things, the email address of the agency representative who is knowledgeable about the rule. Amends the Uniform Electronic Transactions Act.

SB 1897, Rock Island Port District passed out of Senate Local Government 11-0-0. This bill creates the Rock Island Regional Port District Act. Establishes the Rock Island Regional Port District within the corporate limits of the City of Rock Island. Provides that territory of adjacent municipalities may be annexed into the Port District. Provides that the governing and administrative body of the Rock Island Regional Port District initially consists of the Rock Island City Council but will later include the city councils of annexed territories of adjacent municipalities. Contains provisions related to the operation of the Port District, rights and powers of the Port District and participating municipalities, lease of property, easements and permits, bonds and tax levies, eminent domain powers, and other provisions. Limits the concurrent exercise of home rule powers.

SB 2192, Procurement passed out of Senate Executive 13-0-0. This bill Provides that if a bidder has failed to be awarded a contract after 4 consecutive bids to provide the same services to a single agency, the applicable chief procurement officer for that agency shall in writing detail why all 4 bids were rejected. Only applies to the Department of Innovation and Technology, the Department of Transportation, the Capital Development Board, and the Illinois State Toll Highway Authority.