March 2, 2007

Welcome to the NFIB/Illinois’ Capitol Roundup. Capitol Roundup is an e-mail newsletter on news being made at the Illinois Statehouse and on Capitol Hill in Washington, D.C, as it happens. This e-mail is provided to our activist members who have shown an interest in promoting the voice of small business to state and federal policymakers. Capitol Roundup will appear regularly during legislative sessions.

While the House and Senate did have floor action this week, the bulk of the work right now is through committee hearings. Bills continue to be introduced.

A marathon session on electricity rates in the Illinois House fueled lots of debate on how utility companies have handled deregulation and on the hardships faced by residents and small business owners due to skyrocketing electric bills. A resolution on this issue does not appear to be near as the Speaker of the House and the President of the Senate do not agree on the solution.

On March 7 the Governor will deliver his budget address. It is widely expected that he will call for a 1% Gross Receipts Tax in order to pay for universal health care and expanded funding for education. NFIB opposes a GRT and will be part of a grassroots movement to defeat this onerous proposal.

Some of the new legislation NFIB/Illinois is tracking is listed below. Also included in this Roundup is an update on the federal “card check” bill (H.R. 800) being pushed by organized labor. For more information on any of the bills listed below, go to http://www.ilga.gov/ which is the official website of the Illinois General Assembly. To track bills you find on this Capitol Roundup, you can visit www.nfib.com/il.

LEGISLATION THAT PASSED COMMITTEES

HB 374 Rep. Jack Franks (D-Woodstock)

This bill passed the House Labor committee on a partisan roll call. The bill expands the Family & Medical Leave Act to allow leave to care for a son-in-law, daughter-in-law, father-in-law, or mother-in-law who has a serious health condition. Current law only covers leave for serious illness of the employee, spouse or child of the employee.

Status: 2^nd Reading, House Floor NFIB: Opposed

HB 985 Rep. Daniel Beiser (D-Alton)

This bill was amended and the following language was added in the House Labor Committee. Amends the Prevailing Wage Act. Provides that the Act applies to any maintenance, repair, assembly, or disassembly work performed on equipment whether owned, leased, or rented.

Status House: 2^nd Reading – bill was amended NFIB: Opposed

NEW LEGISLATION INTRODUCED

Health Care

HB 1987 Rep. Frank Mautino (D-Spring Valley)

Creates the Consumer Choice of Benefits Plan Act. Provides that an insurer may offer one or more Consumer Choice of Benefits Health Plans, which are defined as an accident or health insurance policy that, in whole of in part, does not provide state-mandated health benefits, but provides creditable coverage as defined in the Illinois Health Insurance Portability and Accountability Act. Sets out the requirements for Consumer Choice of Benefits Health Insurance Plans. Amends the Illinois Income Tax Act. Creates an employer health insurance contribution credit. Amends the Illinois Insurance Code. Creates a new Article establishing the Illinois Innovative Insurance Solutions Law. Provides that the purpose of the Article is to establish the Illinois Innovative Solutions Program where health insurance carriers develop and submit to the Director of Insurance different proposals to increase Illinois residents' access to health care coverage. Creates a new Article establishing the Illinois Health Insurance Premium Assistance Program. Provides that eligible persons may apply to the program in order to obtain rebates to pay for health insurance premiums. Amends the Managed Care Reform and Patient Rights Act. Provides that the Office of Consumer Health Insurance shall perform certain tasks related to a public awareness campaign concerning health coverage information. Creates a task force to carry out the public awareness campaign. Repeals the Small Employer Group Health Insurance Law of the Illinois Insurance Code. Effective immediately.

Status: Insurance Committee NFIB Position: Support

HB 3429 Rep. Jack Franks (D-Woodstock)

Amends the State Employees Group Insurance Act of 1971, the Counties Code, the Illinois Municipal Code, the School Code, the Illinois Insurance Code, the Health Maintenance Organization Act, and the Voluntary Health Services Plans Act to require coverage for a child that is under 25 years of age, has the same legal residence as the parent, is unmarried, and is financially dependent upon the parent.

Status: Insurance Committee NFIB Position: Oppose

Labor Issues

HB 3401 Rep. JoAnn Osmond (D-Antioch)

Amends the Illinois Insurance Code. Provides that if an employer fails to provide the insurance carrier or self-insurer in which it has its workers' compensation insurance policy with reasonable access to payroll records for a payroll verification audit when requested by the insurance carrier or self-insurer, the employer shall pay a premium to the insurance carrier or self-insurer not to exceed 3 times the most recent estimated annual premium owed to the insurance carrier or self-insurer.

Status: Insurance Committee

HB 3402 Rep. JoAnn Osmond (D-Antioch)

Amends the Workers' Compensation Act. Provides that nothing contained in the Act shall be construed to apply to any sole proprietor who elects not to provide and pay compensation for accidental injuries sustained by himself or herself, arising out of and in the course of the employment according to the provisions of the Act who files a form as prescribed by the Illinois Workers' Compensation Commission specifically indicating that he or she elects not be covered by the Act. Provides that such election shall take effect 30 days after the filing of such form with the Commission.

Status: Labor Committee

HB 3631 Rep. Edward Acevedo (D-Chicago)

Amends the Illinois Wage Payment and Collection Act. Provides that if an employer fails to include all commissions earned by a separated employee in the final compensation paid to the separated employee within the time limit set forth in the Act, the employer shall, in addition to any other penalties, pay the employee an amount equal to 3 times the amount of the commissions that were not paid, as well as the employee's court costs, attorney's fees, and any other associated costs incurred in successfully pursuing a legal action against the employer. Effective immediately.

Status: Labor Committee

HB 3723 Rep. Kathleen Ryg (D-Vernon Hills)

Amends the Child Labor Law. In provisions exempting ice skating rinks owned and operated by a school or unit of local government from the prohibition against a minor under 16 years of age working at a skating rink, expands the exemption to include all ice skating rinks.

Status: Labor Committee

Taxes

HB 3415 Rep. Ruth Munson (R-Elgin)

Creates the Manufacturing Job Destination Tax Credit Act and amends the Illinois Income Tax Act. Provides for a credit of 25% of the Illinois labor expenditures made by a manufacturing company in order to foster job creation and retention in Illinois. Authorizes the Department of Revenue to award a tax credit to taxpayer-employers who apply for the credit and meet the certain Illinois labor expenditure requirements. Sets minimum requirements and procedures for certifying a taxpayer as an "accredited manufacturer" and for awarding the credit. Effective January 1, 2008.

Status: Revenue Committee

HB 3521 Rep. Careen Gordon (D-Coal City)

Amends the Illinois Income Tax Act. For taxable years ending on or after December 31, 2007, allows small businesses that provide health care insurance for their employees and their spouses and dependents to claim a tax credit in an amount equal to the cost of providing that insurance, but not to exceed: (i) $500 per employee who receives health care insurance; and (ii) $250 for each spouse and dependent of an employee who receives health care insurance. Provides that the taxpayer may not carry the credit forward or back and that the credit may not reduce a taxpayer's liability

Status: Revenue Committee

HB 3735 Rep. Fred Crespo (D-Hoffman Estates)

Amends the Illinois Income Tax Act. Creates an income tax credit through taxable years ending before December 31, 2013 to taxpayers who, during the taxable year, pay qualified wages to one or more net new employees. Sets the amount of the credit at the amount of Illinois income taxes withheld by the taxpayer with respect to a net new employee. Provides that the credit may not be carried forward or back and may not reduce the taxpayer's liability to less than zero. Defines "net new employees" as the number of Illinois-based employees on the taxpayer's withholding rolls on the last day of the current taxable year less the number of Illinois-based employees on the taxpayer's withholding rolls on December 31, 2006. Defines "qualified wages" as wages or salary of at least $22,000 but not more than $40,000 per year. Effective immediately.

Status: Revenue Committee

FEDERAL “CARD CHECK” BILL PASSED U.S. HOUSE

House Approves Bill Denying Small-Business Owners and Workers the Protection of Private-Ballot Process

In a 241 - 185 vote, the U.S. House of Representatives passed H.R. 800, the misnamed “Employee Free Choice Act.” Dan Danner, executive vice president of NFIB, issued the following statement in response:

“We are disappointed in today’s House vote on the so-called ‘Employee Free Choice Act.’ National Entrepreneurship Week was designated by Congress to be a celebration of the great spirit exhibited by our nation’s entrepreneurs. Instead, they delivered a brutal blow to the backbone of our economy – our nation’s small businesses.

“This legislation eliminates the democratic process of a secret ballot, which protects both small-business owners and their employees from intimidation, misinformation and exclusion from the very discussions that would affect their business. We find it disheartening that small businesses are being unfairly targeted by unions in a last-ditch effort to reverse the trends of their decreasing membership.

“One of the most troublesome provisions mandates compulsory, binding arbitration – this would have a devastating impact on small businesses. Excluding a small-business owner and making a government-appointed arbitrator the primary decision-maker about wages and benefits of their employees raises serious concerns for our members.

“We hope the Senate will defeat this anti-small-business legislation.”

For talking points on this issue and to see how your lawmaker voted, click this link

http://www.nfib.com/object/IO_32477.html