Springfield Update

Illinois Association of REALTORS
Quorum Call Week in Review
May 23, 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.


“Taxation with representation ain’t so hot either.”
~Gerald Barzan
- This week, both the House and Senate took final action on a number of substantive bills as this spring session heads toward what is hoped to be the final days- however, the State budget still remains the wild card. The House and the Senate have passed separate budget measures so negotiations must continue in an effort to craft an agreed final plan. The Senate’s version included over $500 million in sweeps from various dedicated funds with the exception of certain funds including those funds that have been the subject of lawsuits to prevent such action.

- On Wednesday, the Governor signed into law Senate Bill 2052, legislation sponsored by Senator Bill Haine and Representative Dan Beiser, creating the Flood Prevention District Act for the counties of Madison, Monroe and St. Clair (P.A. 95-719). These counties are authorized to establish a flood prevention district for the purpose of performing emergency levee repair and flood prevention. The counties are also authorized to impose a sales tax (0.25%) upon determination that an emergency situation exists regarding levee repair or flood prevention. In related action, the Senate approved a “trailer bill” this week to make necessary additions to this new State law related to the administration of the district including the authority to use excess funds accumulated prior to January 1, 2008 by a sanitary district in their tort liability fund. This trailer bill must also be approved by the House. The IAR SUPPORTS this bill.

- Senate Bill 2014, sponsored by Senator Susan Garrett and Representative Sid Mathias, was overwhelmingly approved by the House on Tuesday following the same action by the Senate in April. This bill clarifies Illinois law related to actions of local governments that are subject to de novo review. The IAR SUPPORTS this bill which has been sent to the Governor for his consideration.

- The House unanimously approved Senate Bill 2110 this week and the measure has been sent to the Governor for his consideration. This bill, sponsored by Senator A.J. Wilhelmi and Representative Careen Gordon, creates the Uniform Environmental Covenants Act. This legislation provides that an owner of real property may voluntarily enter into an environmental covenant with an agency and, if appropriate, one or more holders. The covenant must be recorded and it is subject to the laws governing recording and priority of interests in real property. The purpose of the Act is to control the future use of brownfield sites for the protection of health and the environment. The IAR is NEUTRAL on this legislation.

- Also approved this week and sent to the Governor was House Bill 4129, sponsored by Representative Frank Mautino and Senator Bill Haine. This bill amends the Private Sewage Disposal Licensing Act, to allow for new technology to be used as an option for smaller septic systems that service primarily residential properties. The intent is to allow for new technology, tested and proven in other states and often at a lesser cost, to be used in Illinois. The IAR SUPPORTS this legislation.

- House Bill 4195, sponsored by Representative LaShawn Ford and Senator Mattie Hunter, was unanimously approved by the Senate this week following similar action by the House in April. This bill amends the foreclosure provisions within the Code of Civil Procedure to add language regarding notice provisions with respect to residential real estate. The law will require that notice be sent to the homeowner, even if the homeowner has previously been held in default. If the homeowner has filed an appearance, the notice must be sent by mail to the address indicated on the appearance. In all other cases, the notice must be mailed to the homeowner at the common address of the foreclosed property. The notice is required to include, in 12-point boldface capitalized type, the statement that the homeowner has the right to remain in possession for 30 days after entry of an order of possession. The IAR is NEUTRAL on this legislation.

- House Bill 4611, sponsored by Representative Connie Howard and Senator Mattie Hunter has been approved by both chambers and sent to the Governor for his consideration. The bill expands the “Our Own Home Program” within the State Treasurer’s office. This program, established in 2002 assists Illinois residents buy a home or keep their existing homes from going into foreclosure. “Our Own Home” provides lenders with extra security on mortgages they might otherwise reject. The Treasurer’s Office guarantees 10 percent of each loan amount for the first five years of the mortgage. Under the provisions of the bill, the Treasurer’s office will assist mortgage holders in refinancing, in addition to loans for purchasing a home. In addition, the legislation redefines “home loan” within the program to remove the 50% cap on the conforming loan size. The IAR is NEUTRAL on this legislation.

- House Bill 1842 was approved by the Senate this week and sent back to the House for their concurrence. You may recall that in 2004 the General Assembly enacted the Energy Efficient Commercial Building Act. This law required that all commercial buildings constructed, renovated or modified conform to the International Code Council’s International Energy Conservation Code. House Bill 1842 expanded the Act to include construction of residential buildings. Initially approved by the House in 2007 over the objections of the IAR and the Home Builders Association, the bill was rewritten by the Senate to reflect the negotiations among all parties. While the bill expands the Act to cover both commercial and residential buildings there were important provisions added to address specific concerns of the IAR and the Home Builders. The bill will provide that the Code shall be the minimum/maximum energy efficiency requirements for the new construction of all residential buildings in the State. Additions, alteration, renovations or repairs to existing residential structures are exempted. Currently 127 municipalities and 7 counties have already adopted a Code by ordinance and are authorized to continue to administer their Code in place on or before May 1, 2008. HOWEVER those units cannot, in the future, enact less or more stringent standards than the standards established in this Act. The bill also prohibits a unit of local government from enacting an annexation ordinance or resolution or annexation agreement that would impose energy efficiency building standards less or more stringent that the standards in effect throughout the jurisdiction of that government. The IAR SUPPORTED the negotiated amendment added by the Senate and has removed its opposition to the bill.

- Final legislative action was taken on three bills dealing with Tax Increment Finance (TIF) Districts Senate Bill 2298 extends the life of the TIFs in both West Frankfort and Milan; House Bill 4201 extends the life of the TIF in the village of Downs; House Bill 4548 extends the life of the TIF in the village of Libertyville. The IAR is NEUTRAL on these bills which have been sent to the Governor for his consideration.

- Senate Bill 2387 was approved by the House this week following similar action by the Senate in April. This bill, sponsored by Senator Jacqueline Collins and Representative Karen Yarbrough, adds homeownership, including the basic process of obtaining a mortgage and the concepts of fixed and adjustable rate mortgages, subprime loans, and predatory lending, as a component of consumer education courses taught in Illinois high schools. The bill has been sent to the Governor for his consideration.

- House Bill 1361, sponsored by Representative LaShawn Ford and Senator Rickey Hendon, was unanimously approved by the Senate this week. The bill makes changes to the Real Estate License Act related to escrow monies. As we reported earlier, this bill was approved by the House in the 2007 session following negotiations between the IAR and Representative Ford. HB 1361 provides that in the absence of the filing of a claim in a court of competent jurisdiction, escrow monies being held by a broker shall be deemed abandoned and transferred to the State Treasurer to be handled as unclaimed property after 6 months have elapsed from the receipt by the broker of a written demand for the escrow monies by either principal. The IAR SUPPORTS this bill which has been sent to Governor for his consideration.

- House Bill 4687, sponsored by Representative Michael Boland and Senator Michael Frerichs, has been approved by both chambers and sent to the Governor. This bill permits the board of any fire protection district to establish a grant program for residential property owners who wish to install a sprinkler or other fire suppression system.

- The Senate took final action on House Bill 4196 this week, a measure that extends the date for the submission of the report of the Condominium Advisory Council to January 31, 2009. Senator John Cullerton, the Senate sponsor had proposed amendments to the measure that sought to enact procedures for tax sales and scavenger sales of condominiums and townhomes. However, these provisions were controversial and ultimately removed from the bill. The IAR is NEUTRAL on this proposal which has been sent to the Governor for his consideration.

- In 2003 the Elevator Safety and Regulation Act was enacted into State law. This is the State law that covers the construction, operation, inspection, testing, maintenance, alteration and repair of elevators, escalators moving walks and dumbwaiters. The Act is administered by the State Fire Marshal’s office and includes the licensure of contractors, inspectors and mechanics as well as the permitting, annual registration and annual inspection of existing conveyances. While private residences, including apartment and condominium units, are exempt from the Act, apartment and condominium buildings with elevators are covered under the Act. Also of note, the Act does NOT apply to the city of Chicago. This week the Senate approved Senate Bill 886 which specifies that rules adopted under the Act requiring safety code upgrade compliance beginning in 2009 or 2011 is extended to 2013. Senator Don Harmon, the sponsor of the measure indicated that this will allow budgeting for condominium associations to comply but not compromise safety. This measure has been sent to the House for their consideration. Representative Skip Saviano is the House sponsor.

- The House unanimously approved House Bill 5067 this week and sent the bill to the Senate for their consideration. This bill is the rewrite of the Real Estate Appraiser Licensing Act. The IAR was involved in negotiations on the measure and SUPPORTED the bill as approved by the House. The bill is sponsored by Representative Skip Saviano and Senator William Delgado.

- The Senate also approved House Bill 3106 this week. This measure grants the requisite State authority to the city of Champaign to exercise quick-take eminent domain powers for a period of one year for drainage and improvements related to the Boneyard Creek Project (a flood control project). This bill has been sent back to the House for concurrence. HB 3106 is sponsored by Representative Shane Cultra and Senator Michael Frerichs. The IAR is NEUTRAL on this measure.

- The Senate approved an amended version of House Bill 4207 this week and sent the bill back to the House for their concurrence. The bill amends both the Criminal Code and the Landlord and Tenant Act to provide that it is unlawful for a child sex offender who owns and resides at residential real estate to knowingly rent any residential unit within the same building in which he/she resides to a person who is the parent or guardian of a child or children under 18 years of age. This provision shall apply to those leases or other rental arrangements entered into after the effective date of the bill. This bill is sponsored by Senator Iris Martinez and Representative JoAnn Osmond.

- The House Judiciary I- Civil Law Committee advanced Senate Bill 2128, legislation seeking to license community association managers, to the House floor this week as negotiations continue. The IAR is working with proponents of the measure and hope to have an agreement soon.

- House Resolution 1199, in celebration of the 75th anniversary of the Institute of Real Estate Management (IREM), was adopted by the House this week.

- Members of both the House and the Senate return to Springfield next Tuesday in an effort to conclude business for the spring by Saturday, May 31st. The General Assembly has extended the deadline for final action on bills remaining on the calendar to May 31st. Among the many bills in this category are two bills OPPOSED by the IAR- Senate Bill 2287 (amending the Safe Homes Act) and House Bill 2916 (authorizing local regulation of landlords). Watch for a possible Call to Action on these issues next week.

- Check out the Government Affairs section of the IAR website for a status report on all State issues of interest.



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.