Springfield Update

“I feel as if I were a piece in a game of chess, when my opponent says of it: that piece cannot be moved.”
~Soren Kierkegaard

- On Tuesday, October 9th the IAR attended the House Mass Transit Committee subject matter hearing in Chicago that was held to solicit public testimony on the need for long term operations and capital funding for mass transit in Illinois. At this hearing, officials from the RTA and the various service boards once again testified to spell out their funding needs and potential reductions that would occur without significant revenue increases. The transit agencies testified that in their latest “doomsday” scenario, effective November 4th, deep service cuts and fare increases would occur. The CTA indicated, for example, that fares would increase to $3. This hearing also focused on some alternatives to the current proposed increase in the regional sales tax and the city of Chicago’s real estate transfer tax- such as the idea floated by the Governor’s office to tax commercial parking spaces. There was no resolution at the hearing and discussions continue.

- The General Assembly was in session this week Wednesday-Friday.

- There was NO action on either of the bills dealing with mass transit funding. As noted, the two bills, SB 572 (in the House) and HB 3667 (in the Senate) include both a regional sales tax increase and the authority for a real estate transfer tax increase in the city of Chicago. The language in both SB 572 and HB 3667 STRONGLY OPPOSED BY THE IAR is the authority for the Chicago city council to increase its real estate transfer tax by $3 per $1,000 for funding the CTA pension bond without following the law which requires a public hearing and voter approval by referendum. The House of Representatives rejected this proposal in early September but we anticipate that the issue will be called again within the next two weeks. THANK YOU FOR YOUR RESPONSE TO OUR CALLS TO ACTION ON THIS CRITICAL ISSUE. WE NEED TO KEEP THE MESSAGE LOUD AND CLEAR TO MEMBERS OF THE GENERAL ASSEMBLY AS WELL AS TO THE MEMBERS OF THE CHICAGO CITY COUNCIL AND MAYOR DALEY THAT AN INCREASE IN THE REAL ESTATE TRANSFER TAX SHOULD BE REJECTED!

- The Senate took final action on the so called “7% solution” legislation by concurring with action taken by the House last week to override the Governor’s amendatory veto of House Bill 664. As you recall, the Governor had used his amendatory veto power to modify language in HB 664 to increase the assessment cap and to make it permanent (rather than a 3-year phase out). On Friday, the Senate overrode the Governor’s veto on a roll call vote of 55-1-0, with only Senate President Emil Jones voting NO. The House overrode these changes last week on a roll call vote of 92-19-0. The IAR and a broad coalition of business and education groups SUPPORTED the override effort despite the fact that the group OPPOSED the original bill. This override action by the Senate is FINAL action so the provisions of HB 664 are now law. To recap the provisions of HB 664:
- The alternate general homestead exemption (a.k.a. the 7% solution) is extended for an additional three years with an increase in the exemption cap in the first two years. The original 3-year program had a cap established at $20,000 but this three year extension will provide for a cap of $33,000 cap in the first year, a $26,000 cap in the second and then will revert to the current $20,000 cap in the third year;
- Language was also approved for a long-time occupant homestead exemption for qualified properties in any county that adopts the 7% solution (currently only Cook County);
- There are also changes and additions in various exemptions that will apply statewide: an increase in the general homestead exemption; an increase in the senior homestead exemption; a change in the income levels to qualify for the senior freeze or the circuit breaker; a new disabled homestead exemption; a new returning veteran homestead exemption; a new disabled veteran homestead exemption and a provision that would allow a municipality or county to abate some or all of its own taxes on property of a surviving spouse of a fallen police officer, firefighter or rescue worker.
- Property tax bills in all counties must now include information about tax exemptions, abatements and other taxpayer assistance programs;
- A uniform method is established to provide direction to counties for assessing wind farms;
- A county board would be allowed, upon the recommendation of the county treasurer, to waive the interest penalty on delinquent payment of taxes for brownfield sites.
- Lastly, HB 664 creates a 9-member Property Tax Reform and Relief Task Force charged with looking, once again, at the issue of property tax reform and to report its findings to the General Assembly by January 1, 2010.

It is anticipated that tax bills in Cook County, which had been held up pending resolution of this issue, will be sent out to property owners in early November.

- On Wednesday, the House approved a negotiated version of Senate Bill 546 on a roll call vote of 71-40-0 and sent the measure back to the Senate for their consideration. This bill, which would enact a pilot program in Cook County to enhance the information collected by a notary public when notarizing real estate conveyances, is aimed at combating and enhancing the ability to prosecute mortgage fraud. The bill, introduced in February, had been languishing since a House Amendment was filed in May, but was revitalized this week. SB 546, as amended, amends the Illinois Notary Public Act to require that a “notarial record” be created in connection with each notarized document of conveyance. That notarial record would contain extensive information about the person whose signature is being notarized, including a thumbprint of the person. The bill permits a fee of up to $25 for each notarial act relating to real property conveyances in Cook County. The Cook County Recorder of Deeds would retain the completed forms, and the contents of the forms would be exempt from public disclosure. If the bill were to become law it would become effective July 1, 2008, and would “sunset” on July 1, 2011. The measure was negotiated by State Senator John Cullerton and the Illinois State Bar Association among various affected groups. The IAR is currently NEUTRAL on the legislation.

- The Illinois Department of Financial and Professional Regulation sprung a surprise amendment on regulated groups on Thursday, October 11th. Senate Amendment #2 to House Bill 2973, which was not available for review until minutes before the hearing before the Senate Financial Institutions Committee, amends the Title Insurance Act to require that in every residential mortgage transaction in the state, the title insurance company, title insurance agent, or independent escrowee handling the transaction must file with the Secretary of IDFPR the names and license numbers of each financial institution, mortgage broker, mortgage banker, real estate licensee, real estate appraiser, and closing agent involved in the transaction, no later than 7 days after the closing. The expressed intent of the Department is that they need the information to further their investigations when they encounter fraudulent mortgage transactions. The IAR, along with the other affected groups, expressed the concern that all of this information might not be readily available to the title insurance agent or company, and that this may lead to further requirements by the title insurance industry prior to closings, thus further delaying and complicating closings. Confidentiality concerns were also raised. Due to the concerns expressed, Senator Iris Martinez, the sponsor of the measure, did NOT call the bill in committee. Later in the afternoon a meeting was held with the sponsor, the Department and all of the affected groups. The consensus was that this issue would be the subject of continued negotiation in the coming weeks.

- Another new issue considered this week was House Bill 2353. On Wednesday, Senator Iris Martinez filed Senate Amendment #3 to HB 2353 which was considered by the Senate Housing and Community Affairs Committee and full Senate on Thursday. HB 2353 amends the Illinois Affordable Housing Act to create the Illinois Housing Affordable Housing Capital Fund to finance projects of the Illinois Affordable Housing Program as authorized by IHDA’s comprehensive plan. The Senate approved HB 2353 on a roll call vote of 38-15-0 and sent to the House for their consideration. The deadline for final consideration by the House is November 2, 2007. This legislation is currently under review by the IAR.

- On Thursday, October 11th the House of Representatives followed earlier Senate action and OVERWHELMINGLY voted to override the Governor’s amendatory changes to Senate Bill 1201 on a roll call vote of 105-7-0. http://www.ilga.gov/legislation/votehistory/95/house/09500SB1201_10112007_005000M.pdf This legislation, which is now law, contains language to enable the Chicago Metropolitan Agency for Planning (CMAP) to establish and implement an integrated policy for development and transportation planning. The action by the General Assembly restores a provision removed by the Governor that was essential to our SUPPORT of the measure; i.e. the creation of a Wastewater Committee to deal with facility planning areas (FPAs).

- The Senate also followed the House action in an override of the Governor’s veto of House Bill 3729 on a roll call vote of 58-0-0. This bill, which is now law, amends the Private Sewage Disposal Licensing Act to authorize the Illinois Department of Public Health to allow the use of alternative private sewage disposal systems under specific circumstances. The IAR was NEUTRAL on this legislation.

- There was also final legislative action on override motions of the Governor’s TOTAL veto of two bills that extended the life of two specific Tax Increment Financing Districts (TIFs). The veto of House Bill 2036, sponsored by Representative Chapin Rose and Senator Dale Righter, which would extend the life of a TIF in the city of Villa Grove was overridden by the Senate on Thursday on a roll call vote of 56-0-0. The veto of Senate Bill 247, sponsored by Senator Frank Watson and Representative Bob Flider, for the extension of a TIF in the village of Mt. Zion was overridden by the House on Thursday on a roll call vote of 109-3-0. Both bills now become law. In related action, the Senate advanced a new TIF extension measure for the city of DeKalb contained in Senate Amendment #1 to House Bill 1514. This legislation, sponsored by Senator Brad Burzynski and Representative Bob Pritchard, was approved by the Senate on Thursday on a roll call vote of 55-2-0 and must still be acted upon by the House of Representatives. The deadline for final consideration by the House is November 2, 2007. The IAR is NEUTRAL on these bills.

- The Illinois State Senate unanimously concurred with earlier House action on Senate Bill 478. SB 478 amends the Eminent Domain Act to grant the requisite legislation authority to the village of Skokie to use quick-take eminent domain powers for a period of 12 months for the purpose of pedestrian and motor vehicle access at a rail transit station and for road improvements. The House had approved this measure last week on a roll call vote of 74-30-0. The IAR was NEUTRAL on SB 478 which has now been sent to the Governor for his consideration.

- The General Assembly adjourned on Friday, October 12th with no indication of the specific date that they will reconvene. However, it is speculated that the House and Senate will return the last week of October.


For more information, contact Greg St. Aubin, Director of IAR Governmental Affairs, gstaubin@iar.org, or Julie Sullivan, Assistant Director, Legislative and Political Affairs, jsullivan@iar.org.

Contact information for members of the House and Senate, notice of committee hearings, text of legislation and roll call votes are all available on the Illinois General Assembly’s Web site, www.ilga.gov.