Illinois State Capitol Report

The Illinois House and Senate worked extremely long hours last weekend as they attempted to wrap up the 2009 spring session of the General Assembly. While much of the business DID conclude the dire financial condition of the State budget will dictate that the General Assembly reconvene later this month for further deliberations on revenue and the budget along with other issues that have not had final legislative action. This report highlights the flurry of activity that occurred up to the 1:45 a.m. adjournment on June 1, 2009. Both chambers announced that they would reconvene “at the call of the chair”.
REAL ESTATE LICENSE ACT REWRITE UPDATE
Following a series of productive meetings with Speaker Michael Madigan’s staff and our chief sponsor, Representative Kevin McCarthy, the House of Representatives overwhelmingly approved legislation on Sunday, May 31st that included the rewrite of the Real Estate License Act. Our language is now included in Senate Bill 268 which incorporates a series of measures. The bill was approved by the House Sunday evening on a roll call vote of 98-17-3 and sent back to the Senate for their concurrence. The Senate acted affirmatively to move the bill to the final passage stage but in the wee hours of June 1st the Senate adjourned with the intent of returning to Springfield later in June. The “recess” will allow the leaders of the General Assembly and the Governor to sort out the serious shortfalls in the State’s budget and the differences, not only between the parties but the chambers, on how to address the gaping budget deficit. Senator David Koehler, the chief sponsor of SB 268 in the Senate, gave us assurance that this measure would be considered when the General Assembly reconvenes later this month. It should be noted that the Real Estate License Law rewrite provisions now part of Senate Bill 268 are identical to what the Senate earlier approved as SB 1894. In addition, SB 268 also includes: Agreed language to enact limited provisions to give municipalities a priority lien for clean-up costs on abandoned property (this is language similar to the agreed language that was adopted as an amendment to HB 1195 (see below); A change to the Predatory Lending Database counseling program to add Kane, Will and Peoria counties to the program (now only applicable in Cook County). This was earlier approved in the House as HB 705. This law provides that first time homebuyers seeking loans with certain characteristics (interest only, negative amortization, points and fees in excess of 5%, prepayment penalty, ARM) must be referred to a HUD-certified counselor prior to obtaining a mortgage loan; Language requested by the community banking lobby to amend the Illinois Banking Act regarding necessary changes to ensure the continued viability of “banker’s banks” in Illinois.ILLINOIS LAND BANKING ACTAn agreement was reached in the final week of session regarding municipal liens for cleaning up abandoned property. As you’ll recall, House Bill 1195 originally granted municipalities extremely broad powers to adopt rules, regulations, and ordinances regarding “vacant and abandoned” property (which was not defined), and allowed municipalities to charge unlimited registration fees and fines regarding such properties. Following negotiations with the banking lobby, the proponents of HB 1195 (Business and Professional People for the Public Interest) worked out language that provides for a superior lien for costs of the municipality in cleaning up abandoned property, provided the municipality follows certain procedures and keeps certain records. The broad grant of authority, and the authority to impose fees and fines from the original bill, was NOT included in the compromise language. The IAR was neutral on the revised proposal, which passed the Senate, and is on concurrence in the House. As noted above, language similar to this compromise proposal was also included in the SB 268 package, which is on concurrence in the Senate. It is worth noting, since this bill originally contained the Land Banking law that IAR opposed, that the amended bill contains no references whatsoever to the establishment of land banking powers.In other action this week:LEGAL /REGULATORY/TRANSACTIONAL ISSUESFinal legislative action occurred this week as the House concurred with Senate amendments on two bills to make significant changes to Illinois law regarding electronic communication devices and cellular phones, effective January 1, 2010. House Bill 71, sponsored by Representative John D’Amico and Senator Martin Sandoval, will prohibit a person from using an electronic communication device to compose, send or read a text message while driving. The legislation has certain exceptions- such as using a device in hands free or voice-activated mode or while the vehicle is parked on a shoulder of a roadway or if the vehicle is stopped due to normal traffic being obstructed and the vehicle is either in neutral or park. House Bill 72, sponsored by Representative John D’Amico and Senator Pam Althoff, will prohibit the use of a cell phone in a school speed zone or a highway construction or maintenance zone. This new prohibition does not apply to persons working on the highway project, using a cell phone for emergency purposes, law enforcement or if using a cell phone in voice-activated mode (this latter provision added in the Senate). The IAR MONITORED these bills which have been sent to the Governor for his consideration. The House concurred with Senate action on House Bill 236 this week marking final legislative action on this bill. HB 236 changes the existing Mechanics Lien Act to require that a contractor for improvements of an owner-occupied single-family residence give the owner written notice within 10 days after recording a lien against any property of the owner. The notice is deemed served when it is sent or personally delivered. If timely notice is NOT given and, as a result, the owner suffers damages before notice is given, the lien is extinguished to the extent of the damages. The legislation stipulates that the mere recording of the lien claim is not considered damages. This new provision will not apply to subcontractors and applies to contracts entered into after the bill becomes law. IAR SUPPORTED this legislation which was sponsored by Representative Kathy Ryg and Senator Terry Link. Final action this week on Senate Bill 69, which amends the Medical Practice Act and the Optometric Practice Act regarding prohibited “fee splitting” arrangements. This bill had earlier referenced certain lease arrangements which prompted a Call to Action by the International Council of Shopping Centers but the offending language was removed and the IAR was NEUTRAL. This bill was sponsored by Senator Ira Silverstein and Representative David Miller. A duplicate bill, House Bill 496, was not advanced. Final action occurred this week on legislation creating the Community Association Manager Licensing and Disciplinary Act. Senate Bill 1579, sponsored by Senator A. J. Wilhelmi and Representative Elaine Nekritz, will require managers of community associations (condominiums, cooperatives, townhouse developments and other common interest communities) of more than 10 units to be licensed by the Illinois Department of Financial and Professional Regulation (IDFPR). Among the requirements are satisfactory completion of twenty (20) classroom hours of community association management courses and an examination. Licensed real estate brokers and salespersons are exempt from the education requirement. If signed by the Governor, the legislation becomes effective July 1, 2010. HOWEVER, the licensure requirements will NOT be enforced until 12 months after the adoption of final administrative rules for this new Act. The IAR SUPPORTED this legislation which has been the subject of negotiations for years. A duplicate bill, House Bill 271 was held and is now inactive. Final legislative action occurred this week on Senate Bill 2111, an initiative of the Land Title Association related to disbursements of funds by title companies and independent escrowees. The IAR was NEUTRAL on the bill which was sponsored by Senator Don Harmon and Representative Dan Reitz. Senate Bill 2112, also sponsored by Senator Harmon and Representative Dan Reitz, also had final legislative action this week. This bill makes various changes to the Real Estate Timeshare Act including further clarification to provisions requiring that resale agents be licensed under the Real Estate License Act. The IAR SUPPORTED this legislation which has been sent to the Governor for his consideration.HOUSING/REAL ESTATE FINANCE ISSUESThe House concurred this week with Senate amendments to House Bill 4011, sending the bill to the Governor. Sponsored in the Senate by Senator Kwame Raoul, the bill amends the Residential Mortgage License Act (RMLA) with respect to Illinois’ participation in the Nationwide Mortgage Licensing System and Registry. In short, this bill establishes a comprehensive licensing and registration system for mortgage loan originators (MLOs) within the RMLA. Much of the MLO licensing language is lifted directly from the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, the federal legislation states are obligated to comply with by July 31, 2009. If a state doesn’t enact their own compliant licensing statute, HUD is charged with overseeing MLOs in that state. There are some concerns that the IAR had with some provisions of HB 4011, including the exemption language for persons performing only real estate brokerage activities in a transaction. However, the language we had concerns with was lifted verbatim from the federal legislation, and, wary of the federal mandate, the Department was reluctant to change the language, and the language remains in the bill. The Department has assured us that the issue will not be a problem upon the implementation of the program. The program has an operability date of January 1, 2011, and the IAR is planning on doing additional work on this issue prior to that date. The House concurred this week with the Senate amendments to House Bill 1142, sending the bill to the Governor for his consideration. House Bill 1142 creates the Modular Housing Buyer Protection Act to create a “state-approved” dwelling unit that must comply with applicable Illinois laws. State approved units are required to have a yellow seal displayed on either the electrical panel box or on the inside of the kitchen sink cabinet. The IAR MONITORED this legislation sponsored by Representative Mike Tryon and Senator James Clayborne. The House Judiciary I-Civil Law Committee advanced Senate Bill 177 to the House floor this week but the House did not take final action on the measure prior to the May 31, 2009 deadline and the measure is now inactive. This bill, sponsored by Senator Mattie Hunter and Representative Harry Osterman, sought to change Illinois’ Condominium Property Act related to removal of a director from a Board of Directors. The legislation stipulated that the bylaws of a condominium shall provide that any director may be removed from the Board of Directors at a special meeting of owners, called for that purpose by a two-thirds majority of those present or voting by absentee ballot. The bill also stated that all procedures governing secret ballot elections would apply. Lastly, the bill provided that a director, after notice and an opportunity for a hearing, may be suspended or removed for cause by a two-thirds majority by the Directors. The IAR was NEUTRAL. The House unanimously approved Senate Bill 1560 on Thursday, May 28th. This bill, sponsored by Senator David Koehler and Representative Jehan Gordon, provides that a deed restriction or restrictive covenant recorded after the effective date of the bill, may not prohibit or restrict the erection of an industrialized residential structure on real property. The bill further provides that a deed restriction, restrictive covenant, or agreement that applies uniformly to all homes and industrialized residential structures in a subdivision may impose the same aesthetic compatibility requirements on an industrialized residential structure in the subdivision that are applicable to all residential structures in the subdivision. The IAR was NEUTRAL on this bill that has been sent to the Governor for his consideration. No action occurred this week on Senate Bill 1933, a “shell bill” that had been sent to the House for the purpose of enacting a regulatory statute for homeowner associations. The IAR will continue to be involved in discussions on this issue, which we have conceptually SUPPORTED and have pledged to work on with both Senator A.J. Wilhelmi and House Republican Leader Tom Cross, the sponsors of the legislation, to develop a State statute.OWNER/TENANT ISSUESOn Thursday, May 28th the Illinois House overwhelmingly approved Senate Bill 1783 on a roll call vote of 102-15-0 and sent the bill back to the Senate for their concurrence. As you will recall, this is the legislation that the IAR worked on with Representatives Anthony DeLuca, Michael Zalewski, Dennis Reboletti and Senator Lou Viverito to provide an alternative to proposed legislation to permit municipalities to license and regulate landlords. The House-approved language, SUPPORTED as an alternative by the IAR, drops licensing altogether and instead would permit municipalities to enact a requirement that any lease for single or multi-family residential property include a provision or an addendum that prohibits criminal activity and provides the landlord the right to terminate the lease when the tenant(s) engage in such activity. The House version also includes an amendment to Section 9-120 provisions of Code of Civil Procedure to reduce some of the notice procedures when evicting a person for engaging in criminal activity. The original Senate sponsor, Senator Mike Jacobs, objected to the House amendments which had gutted his original bill and he filed the motion to non-concur with the language which has stalled the bill. Senator Lou Viverito has taken over Senate sponsorship of the bill. It is unclear what will be the ultimate fate of this legislation but the IAR will continue to monitor any further action on the issue and keep you informed. House Bill 621 has been sent to the Governor after both the House and Senate unanimously approved the legislation. HB 621, sponsored by Representative Mike Fortner and Senator Randy Hultgren, would permit a Township Board to also provide for the cutting of grass, the trimming of trees or bushes and the removal of nuisance bushes or trees in addition to their current authority for the cutting of weeds. This nuisance language is similar to the law approved in 2007 for municipalities. The IAR was NEUTRAL. Following extensive revisions from its introduced version, Senate Bill 1920 has been approved by both the Senate and the House. In its final form, SB 1920 amends the Mobile Home Landlord and Tenant Rights Act to create a Mobile Home and Manufactured Home Relocation Commission. The purpose of the Commission is to study the process and procedure by which a mobile/manufactured home located in a mobile/manufactured home park that is closing is relocated. The Commission is to be made up of 10 members and the legislation specifies the duties of the Commission and directs that a report be provided to the General Assembly on or before January 1, 2010. The IAR was NEUTRAL on this legislation sponsored by Senator Susan Garrett and Representative Bob Flider.ENVIRONMENTAL/HEALTH AND SAFETY ISSUESFinal action this week on legislation related to surface discharging private sewage disposal systems. House Bill 170, sponsored by Representative Michael Tryon and Senator Susan Garrett prohibits the construction or installation of a surface discharging private sewage disposal system by any person unless that person has a coverage letter under a National Pollutant Discharge Elimination System (NPDES) permit issued by the IEPA or the local public health department has a general NPDES permit issued by the IEPA and the system is covered under that permit. The sponsors purposely delayed the effective date of this bill until January 1, 2013 to give the IEPA the time to develop rules and regulations related to this issue. The IAR was NEUTRAL on the final version of this legislation. House Bill 3987, sponsored by Representative Julie Hamos and Senator Don Harmon, has been approved by both chambers after extensive negotiation over the past two sessions. The bill modifies the existing Energy Efficient Commercial Building Act (first enacted in 2004) to expand the Act to cover both commercial and residential buildings with certain exemptions. Additions, alterations, renovations or repairs to an existing building, building system or portion thereof shall comply with the Code but the unaltered portion is NOT required to comply. The legislation specifies if the energy use of the building is not increased the Code will not apply to storm windows installed over existing fenestration, glass only replacements in an existing sash and frame, existing ceiling, wall or floor cavities exposed during construction, (provided the cavities are filled with insulation) and construction where the existing roof, wall or floor is not exposed. The bill also provides that if a local government does NOT regulate energy efficient building standards that they are not required to adopt, enforce or administer the Code but if they later adopt such standards they must then comply with the Act. In those municipalities, this Act’s standards will apply to construction, renovations or additions. While the bill provides that no unit of local government may regulate energy efficient building standards for residential buildings in a manner that is LESS or MORE stringent than the standards established in this Act it does recognize and spell out specific exceptions due to existing local Codes. These include the city of Chicago; any unit of local government that has on or before May 15, 2009 adopted or incorporated by reference energy efficient building standards for residential buildings that are equivalent to or more stringent as the 2006 International Energy Conservation Code; a unit of local government that has, on or before May 15, 2009 provided to the Capital Development Board an identification of an energy efficient building code or amendment that is equivalent to or more stringent than the 2006 International Energy Conservation Code. NO unit of local government can enact any annexation ordinance or resolution or require an annexation agreement that imposes standards for residential buildings less or more stringent than the energy efficiency standards in effect at the time of construction in that unit of local government. The IAR was NEUTRAL on the bill in its final form. Legislation has been approved in both the Senate and the House to make changes to the Elevator Safety and Regulation Act. Senate Bill 149, sponsored by Senator Don Harmon and Representative Sandra Pihos, makes various changes to the Elevator Safety and Regulation Act including adding a reference to a local administrator of the Act. This is specifically done to allow a municipality or county to enter into an agreement with the Administrator (the Office of the State Fire Marshal) to operate their own elevator safety program. The bill also amends the make-up of the Elevator Safety Review Board to include a representative of an advocacy group for condominium owners. The Review Board is also specifically charged with making binding determinations regarding variances, interpretations and the installation of new technology. Certain upgrade requirements of the Act are also extended out to January 1, 2015. The IAR MONITORED this legislation. Senate Bill 1489 has been approved by both the Senate and House and will be sent to the Governor for his consideration. This bill, sponsored by Senator Iris Martinez and Representative Elaine Nekritz, creates the Green Infrastructure for Clean Water Act. The bill directs the Illinois EPA, in conjunction with the Department of Natural Resources, the Department of Transportation and the Capital Development Board, stormwater management agencies and other interested parties, to submit a report to the General Assembly and Governor on stormwater including green infrastructure use and benefits. Also to be contemplated is the feasibility of devoting 20% of the Water Revolving Fund to green infrastructure, water and energy efficiency and other “environmentally innovative activities” on a long-term basis. The IAR was NEUTRAL on this issue. A comprehensive measure amending the Public Utilities Act was approved this spring session after months of negotiation. Senate Bill 1918, sponsored by Senator Kim Lightford and Representative Bob Flider, includes provisions requiring electric utilities to establish an “on-bill financing” program for energy efficiency measures for eligible customers. An electric utility that serves more than 100,000 customers on January 1, 2009 will be required to offer an approved on-bill financing program to allow retail customers who own a residential single family home, duplex, or other residential building with 4 or less units or a condominium to borrow funds from a third party lender to purchase approved electric energy efficiency measures for installation in such home or condo without any upfront payment and to pay back such funds over time on their bill. A loan issued to a participant is the sole responsibility of the participant and the bill requires that any dispute that may arise of the loan’s terms, conditions or charges must be resolved between the participant and the lender. Importantly, the legislation includes language that provides that upon transfer of the property title for the premises at which the participant receives electric service the participant must pay in full its electric utility bill, including all amounts due under the program. The IAR participated in meetings on this legislation and was NEUTRAL on the final bill. The General Assembly adopted Senate Joint Resolution 36 this spring related to the impending capital public works program. Among the provisions of SJR 36 is the resolution that the General Assembly and the Governor should make passage of a green and sustainable comprehensive capital construction plan a top priority and that environmental health/protection and energy efficiency and sustainability ought to guide the allocation of all funds in any capital construction plan. Further SJR 36 resolves that the law require builders to adhere to sustainable building standards- including LEED standards, the Green Globes standards or construction elements with an equivalent certification. The Resolution also resolves that the State should give due consideration to new public transportation (including rail) in the interest of planning sustainable transportation and that in providing for the construction or improvement of roads that the State should prioritize the laying of fiber-optic lines. Resolutions do not have a binding effect as would a Senate or House bill. This resolution, sponsored by Senator Heather Steans and Representative Karen May, was adopted by both chambers.LAND USE/DEVELOPMENT/LOCAL GOVERNMENT ISSUESThe Senate concurred with a House amendment to Senate Bill 138, marking final action on this legislation establishing a State minimum building code for newly constructed commercial buildings in local jurisdictions that do not have an adopted minimum building code. The bill provides that after July 1, 2011 newly constructed commercial buildings in “non-building code jurisdictions” must have an inspection by a qualified inspector prior to being occupied. These inspectors must either be qualified by the State, certified by a nationally recognized building official certification organization or have filed verification of inspection experience with the State’s Capital Development Board and can also include an individual qualified by an apprentice program certified by the Bureau of Apprentice Training. This qualification requirement does not apply to local building enforcement personnel if they have registered its adopted building code with the Illinois Capital Development Board. Local governments can also establish agreements with other governmental entities to issue permits and enforce building codes and to hire third-party providers to do the inspections. The bill defines commercial building, newly constructed commercial building and specifically exempts new residential construction. This issue has been the subject of negotiations for a few years and the IAR was NEUTRAL on the negotiated proposal. The General Assembly overwhelmingly approved legislation to strengthen Illinois’ Freedom of Information Act. Senate Bill 189, sponsored by Senator Kwame Raoul and Speaker Michael Madigan contains a number of provisions including a narrowing of the number of exemptions that has allowed the withholding of otherwise public information. In addition, the legislation seeks to enhance enforcement of the Act by adding “public access counselors” and penalties for noncompliance. The bill has been sent to the Governor for his consideration. The Senate concurred this week to two House amendments to Senate Bill 414, marking final action on this legislation. Senate Bill 414, sponsored by Senator Kwame Raoul and House Majority Leader Barbara Flynn Currie, was an initiative of the Center for Neighborhood Technology. As approved, the bill directs the Department of Commerce and Economic Opportunity, the Department of Transportation and the Illinois Housing Development Authority to adopt the Housing and Transportation Affordability Index (or a substantially equivalent affordability measure) as a planning tool and for consideration for allocating funds, distributing economic incentives and siting public facilities. The legislation directs the Task Force, created under the Comprehensive Housing Planning Act, and the Interagency Coordinating Committee on Transportation to consider the Affordability Index and other measures to “create an affordability definition and policy that incorporates housing and transportation costs for Metropolitan Planning Organization Areas” and shall include both in the Annual Comprehensive Housing Plan for MPO areas. This legislation also creates the Illinois Transportation Policy Committee under the Department of Transportation Law to advise on the State’s five-year transportation plan. Each MPO is also directed to develop a regional transportation plan that shall include specified elements. Public involvement and accountability are also highlights of this legislation. The IAR was NEUTRAL on this legislation. The Senate concurred this week with the House amendment to Senate Bill 587 that added language OPPOSED by the IAR. This concurrence marked final legislative action on this measure. SB 587, sponsored by Senator Michael Frerichs and Representative Bill Black, grants counties with less than 100,000 in population that have a public building commission organized by the county seat the power to have post-secondary student housing built and maintained. The legislation was initiated for the Danville Community College. The intent is for the College to deed land to Vermilion County who will lease the housing facilities constructed by the Danville Public Building Commission. The IAR testified in OPPOSITION to this new county power, expressing the concern over this significant new power for counties granted without any input from the county’s property taxpayers. Particularly of concern since the property taxpayers will be required to pay annual property taxes for the lease of the student facilities- which will be levied without referendum. It should also be noted that Illinois law specifically denies community colleges the authority to construct dormitories or staff housing. Both chambers have taken final action on legislation to grant limited quick-take eminent domain powers to the village of Johnsburg (located in McHenry County). Senate Bill 1296, sponsored by Senator Pam Althoff and Representative Mike Tryon, authorizes the use of this power for no more than one year for two parcels for the purpose of constructing a METRA rail station and rail storage yard. The IAR was NEUTRAL. Senate Bill 1511, sponsored by Senator David Koehler and Representative Jehan Gordon, has been approved by both the Senate and the House. The bill will clarify that a county board is permitted to require that an occupancy permit be obtained for newly constructed residential dwellings outside the corporate limits of a municipality. If a county enacts this provision after the effective date of this bill they will NOT be permitted to impose a fee for the permit. Fees currently imposed are grandfathered. The IAR was NEUTRAL on this legislation initiated by Peoria County. Final legislation action this week on Senate Bill 1784, sponsored by Senator Mike Jacobs and Representative Jim Sacia. This bill creates a new Act- the Upper Mississippi River International Port District Act- a new economic development tool for the Carroll and Jo Daviess County area. This will allow the development of channels, harbors, river ports and port-related facilities and services, airports, airfields and terminals. While the legislation grants eminent domain powers any such power must be exercised in accordance with the Eminent Domain Act. The IAR was NEUTRAL on this measure which has been sent to the Governor for his consideration. Senate Bill 1909, sponsored by Senate Majority Leader James Clayborne and Representative Tom Holbrook, received final legislative approval in the early hours of June 1st. This legislation, known as the STAR Bonds Financing Act, is based on a development incentive used in Kansas City. The legislation allows the use of both State and local sales tax revenue collected in the development to be used to pay off the STAR (Sales TAx Revenue) bonds. The estimated $1.5 billion development is targeted for property in Glen Carbon, Illinois. The proponents indicated that the project would create 10,000 construction jobs and over 3,000 permanent jobs. The IAR was NEUTRAL.TAX ISSUES/STATE BUDGETThe Senate, in a close roll call vote taken on May 30th, approved a significant revenue proposal that sought to address both the shortfalls in the overall State budget and education funding (31-27-1). House Bill 174, co-sponsored by Senate President John Cullerton and Senator James Meeks, would enact a permanent income tax increase. The proposal would raise the individual rate from the current 3% to 5% (a 67% increase) and the corporate tax rate from 4.8% to 5%. This proposal also included an expansion of the sales tax base to cover specific services. The legislation used the service categories from the 1997 North American Industry Classification System Manual (prepared by the US OMB) would include the following services:-Other warehousing and storage (household and specialty goods)-Travel agent services-Carpet and upholstery cleaning services-Dating services-Dry cleaning and laundry, except coin-operated-Laundry and dry cleaning, coin-operated-Consumer goods rental-Health clubs, tanning parlors, reducing salons-Linen supply-Interior design services-Other business services, including copy shops-Bowling centers-Coin operated video games and pinball machines-Memberships in private clubs-Admission to spectator sports (excluding horse tracks)-Admission to cultural events-Billiard parlors-Scenic and sightseeing transportation-Taxi and Limo services-Unscheduled chartered passenger air transportation-Motion picture theaters, except drive-in theaters-Pet grooming-Landscaping services (including lawn care)-Income from intrastate transportation of persons-Mini-storage-Household goods storage-Cold storage-Marina Service (docking, storage, cleaning, repair)-Marine towing service (including tugboats)-Gift and package wrapping service-Other services to buildings and dwellings-Water softening and conditioning-Internet Service Providers-Short term auto rental-Information services-Amusement park admission and rides-Circuses and fairs- admission and games-Cable and other program distribution -Rental of video tapes for home viewingThe House never called this proposal for a vote- opting to vote on a different income tax proposal promoted by Governor Quinn. This bill, Senate Bill 2252, would enact a two year temporary increase in both the individual rate (3% to 4.5%) and the corporate rate (4.8% to 7.2%). This bill did NOT include the sales tax expansion on services- which is very controversial in the House. This measure FAILED on a roll call vote of 42-74-2.Late in the session both chambers voted to authorize, once again, a sweep of various dedicated funds. The Senate concurred with the House and voted to authorize the sweep of over $356 million from dedicated funds, including $1,081,000 from the Real Estate Research and Education Fund and $1,200 from the Real Estate Audit Fund. There were NO funds taken from the Real Estate License Administration Fund. In all likelihood this is due to the fact that the IAR filed a lawsuit in Sangamon County in 2006 challenging the constitutionality of such a sweep of the Real Estate License Administration Fund (RELAF). The State of Illinois entered into a stipulation in that case that precludes the State from transferring any funds from the RELAF to be used for any purpose other than those specified in the Real Estate License Act without giving IAR 21 days notice and an opportunity for the underlying case to be heard by the court. House Bill 441, sponsored by Representative Chuck Jefferson and Senator Dave Syverson, was approved by the Senate this week marking final legislative action. This bill amends the Industrial Jobs Recovery Law in the Illinois Municipal Code to allow a redevelopment area in Rockford to be extended for an additional five years. The bill has been sent to the Governor for his consideration. The IAR was NEUTRAL on this bill. The House concurred with the Senate version of House Bill 2394 this week marking final legislative action. HB 2394, sponsored by Representative Mark Walker and Senator Dan Kotowski, amends the TIF law to specify that a redevelopment project area may include areas within ½ mile radius of an existing or proposed RTA Suburban Transit Access Route station without a finding that the area is classified as an industrial park conservation area, a conservation area or a blighted area. However, the municipality must receive the unanimous consent of the TIF joint review board. The redevelopment project costs are specifically limited to the costs related to the existing or proposed station. The IAR was NEUTRAL on this measure which has been sent to the Governor. The House also concurred this week to the Senate amendment to House Bill 4120. House Bill 4120, sponsored by Representative Mark Walker and Senator Dan Kotowski, will allow any taxing district, upon a majority vote of its governing body, to abate any portion of property taxes if a new business first occupies a facility located on the property during the taxable year and the facility was vacant for a period of at least 24 continuous months prior to being occupied by the business. The Senate had modified the original bill to provide that the abatement cannot exceed a TWO-year period (as introduced it was five) and the aggregate amount of abated taxes for all taxing districts cannot exceed $4 million. The IAR SUPPORTS this legislation which has been sent to the Governor. The Senate concurred this week to a House amendment on Senate Bill 1553, marking final legislative action on this bill. Senate Bill 1553, sponsored by Senator Dan Rutherford and Representative Keith Sommer, extends the terms of TIF districts in the city of Pontiac and the village of Downs. The IAR was NEUTRAL on this measure. The House approved Senate Bill 1825 this week that provides that on or before October 1, 2009, the county assessor of Madison County, Monroe County, and St. Clair County are required to reassess all property in the county at 33 1/3% of the fair cash value of the property, as determined by the Department's sales ratio studies for the most recent year preceding the assessment year. The Senate Revenue Committee recommended that the full Senate concur with this proposal but the full Senate has not, to date, acted upon the bill. The bill is sponsored by Representative Tom Holbrook and Senate Majority Leader James Clayborne. The IAR was NEUTRAL. There was also final legislative action this week on Senate Bill 1975 which amends the Illinois Income Tax Act’s definition of "captive real estate investment trusts". The legislation clarifies that to be a captive real estate investment trust, at least 50% of the voting power must be controlled by a single corporation (now, controlled by a single person). The legislation also exempts from the definition certain real estate investment trusts that are owned and controlled by certain entities that are organized outside of the laws of the United States. The IAR MONITORED this legislation sponsored by Senator Don Harmon and Representative John Bradley.

Illinois Association of REALTORS® 522 South Fifth Street Springfield, IL 62701Ph. 217/529-2600 FAX 217/529-3904 www.illinoisrealtor.org iarnews@iar.orgState Capitol Report is distributed Fridays when the 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.