IAR Quorum Call

Illinois Association of REALTORS
Quorum Call Week in Review
February 29, 2008



Quorum Call is distributed Fridays when the Illinois General Assembly is in session. 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. Full text of legislation cited in this newsletter can be found at www.ilga.gov.





“I’m tired of hearing it said that democracy doesn’t work. Of course it doesn’t work. We are supposed to work it.”

~Alexander Woollcott

- Despite the snowy weather hundreds of Illinois REALTORS convened at the Illinois Capitol in Springfield on Tuesday, February 26, 2008, for the 32nd annual IAR Capitol Conference. Our lobby day offers members an opportunity to become part of the legislative process and to become informed about the top issues that will be pursued this spring session. A legislative briefing was held at the Howlett Building, followed by visits to legislative offices to discuss the top IAR legislative initiative to make various changes to the Real Estate License Act that include increasing salesperson pre-license education hours from 45 to 90 (SB 571 and HB 5358). Other issues discussed include OPPOSITION to HB 4313 (discussed below) and to a proposal for a statewide real estate transfer tax increase (SB 2759) of nearly $99 million, creating an unnecessary and unwise tax increase on homeowners, farms and businesses. A reception at the new IAR Headquarters ended the day. You can download materials from the lobby day at the IAR Action Center. THANKS TO ALL WHO MADE THIS DAY SUCH A HUGE SUCCESS!

- Both Senate 571 and House Bill 5358, contain the changes to the Real Estate License Law SUPPORTED by the IAR remain in the House Rules Committee. The sponsors of the measures and the IAR continue to work for the release of the bills for consideration this spring session. As you know, the changes update the License Law, and include a variety of definitional changes, educational changes and technical changes. A summary of Senate Bill 571/House Bill 5358 is available at the IAR Action Center (www.iaractioncenter.org). The bill is also supported by the Illinois Department of Financial and Professional Regulation.

- NO ACTION occurred this week on HB 4313, an initiative of a group called the “Homeowners Club of America” (HCA), that seeks to amend Section 10-15 of the Real Estate License Act to prohibit a real estate licensee from paying a cash rebate, cash gift, or cash prize to an unlicensed person who is a party to a contract to buy or sell real estate. The IAR remains strongly OPPOSED to this legislation which is sponsored by Representative Bob Molaro (D-21, Chicago). The bill remains in the House Judiciary I- Civil Law Committee. PLEASE CONTINUE TO CONTACT YOUR LEGISLATORS TO URGE THE REJECTION OF THIS LEGISLATION!

- On Wednesday afternoon the Senate Education Committee held an extensive hearing on SB 2288, the latest education funding reform/property tax relief proposal. The bill, co-sponsored by Senators James Meeks and John Cullerton, was acknowledged to be a work in progress as both Democratic Senators pledged to work with their Republican colleagues to advance a bill with sufficient votes to override a likely gubernatorial veto. The bill would increase individual income tax rates from 3% to 5% (projected to raise $6.2 billion) and an increase in the corporate income tax rate from 4.8% to 8% (projected to raise $1.0 billion). The Senators indicated in testimony that among the items to be funded would be enhanced State funding for education, $2.9 billion in property tax relief, $1 billion debt service for bonding capital improvement projects throughout the State and significant funding for the huge pension obligations and other State debts. In addition, the Senators indicated that the enactment of various education reforms would be part of a final bill. All agree that the debate will continue throughout the spring session. SB 2288 was advanced out of the Senate Education Committee on a vote of 6-3-1 and is now pending on the Senate floor. Another bill, HB 750 (Miller) which has many of the same components BUT also includes the controversial sales tax extension for certain services, is pending in the House.

- Also on Wednesday afternoon, the House Housing and Urban Development Committee discussed and advanced House Bill 4352. This bill, sponsored by Representative Naomi Jakobsson, initially provided sweeping new notification requirements for landlords to enter the tenant’s premises. The sponsor amended the bill to reflect some concerns of the IAR and the Chicagoland Apartment Association. While the bill was advanced out of the Committee, a commitment was made to continue negotiations in an effort to reach a consensus.

- On Thursday, the Senate Housing and Community Affairs Committee advanced Senate Bill 1979 to the full Senate for further consideration. SB 1979, sponsored by Senator Rickey Hendon, creates the Illinois Homeowner’s Emergency Assistance Program Act and directs the Illinois Housing Development Authority to implement a program to provide grants to eligible Illinois residents facing foreclosure. The IAR testified at the hearing and pledged to work with the sponsor and other interested parties on refining the legislation.

- On Thursday, the Senate Local Government Committee approved Senate Bill 2033, as amended. The legislation creates a new section within the Counties Code to grant authority to Peoria County to create a stormwater management committee. Under the new section, the Peoria County Board is authorized to establish a stormwater management planning committee and may prescribe rules and regulations for floodplain management and for stormwater runoff. The county board can impose fees but the fees cannot exceed the cost of satisfying onsite stormwater retention or detention requirements. Credits or a reduction in fees must be provided to developers who construct facilities for onsite retention or detention. The county board is also given the authority to levy either a property tax OR a sales tax IF APPROVED BY THE VOTERS. Tax abatements, rebates or incentives shall be offered to developers who construct, maintain and use approved stormwater devices. Developers are exempt from any fees if the new development satisfies onsite retention or detention pursuant to any other local ordinance addressing erosion, sediment or stormwater control and IEPA regulations that place the development into compliance with the NPDES permit program at the time of the dedication of public infrastructure. The county board is also authorized to issue general obligation bonds for implementing a stormwater plan. The IAR is NEUTRAL on this measure which has been considered in prior legislative sessions. The bill is now pending before the full Senate.

- The House is scheduled to be in session next week Tuesday, March 4-Thursday, March 6th. The Senate is scheduled Wednesday, March 5-Thursday, March 6th. The Senate and House Committees will continue to meet next week as the deadline dates for final committee action loom.




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.