They don’t refer to August as “dog days” for nothing, and government and political activity generally follows that tenet, with government and political activity taking a breather from the hectic pace of legislative sessions while girding for upcoming policy and election battles. As the month of August began the legislative session had been over for a few months, the budget had been enacted, and the review of legislative initiatives sent to the Governor by the General Assembly had pretty much been completed, with a few exceptions. The only real news-worthy public activity taking place was the parade of gubernatorial bill signings, and those ended yesterday.
What’s left that’s publication “newsworthy” isn’t much, so the press and others tend to focus on minutiae that probably wouldn’t be afforded space at any other time of the year. For politicians, the month of August is almost like a month of Sundays. Elected officials often schedule press conferences on Sundays because they can be notoriously slow news days and present a better chance of generating press coverage. In August, those opportunities arise almost every day. The press almost prays for huge events, such as Hurricane Irene, because that gives them something of substance to report. Otherwise, the news would be completely filled with such earth shattering stories as Governor Quinn criticizing Speaker Madigan for attending a fund-raiser where U.S. House Speaker John Boehner had appeared, or the incessant bickering between Quinn and Chicago Mayor Rahm Emmanuel.
However, as far as the state’s fiscal condition is concerned, August has been a month where some interesting developments have occurred. The press has reported on some, but not others.
- Little has been reported on legislative hearings that have taken place over the past few months for the purposes of hearing ideas from the business community on reducing the overall corporate tax burden. Businesses complained about the impact of the income tax increase and the hearings were announced as the legislative session adjourned. During the hearings business interests have urged such policies as the corporate income tax being reduced to a more competitive level, extending Research and Development Tax credits, and a number of other suggestions. However, there has been some suggestion that any tax reductions or credit expansions be “revenue neutral,” meaning cuts in other business incentives would have to take place to offset such actions. That idea hasn’t found much favor, but many legislators have indicated that in light of the nagging deficits there may be no other way. At one point the suggestion was made to reduce the corporate income tax but remove all other corporate tax incentives in exchange. So far that idea has very little traction. It is expected that some report or recommendations may arise by the beginning of the legislative veto session in October, but it’s also a good bet that the hearing might have been a forum to allow the business community let off steam with little else occurring as a result.
- For the last number of years a managed care program for Medicaid has been touted as a way to get expenses under control. Two years ago a pilot program was approved to determine how Medicaid managed care might work but the result may not have been “what the doctor ordered.” Efforts are now underway to establish the pilot program in the Chicago metropolitan area but many doctors and hospitals are refusing to join, saying that they don’t want to deal with the bureaucracies or other managed care requirements. With an eventual goal of 50% of the state’s Medicaid recipients being targeted for inclusion in managed care, there needs to be some real attention paid to this issue.
- Illinois law requires hospitals to provide charity care in exchange for property tax exemptions that those hospitals received. An acceptable threshold of charity care has never been defined in the statutes or by administrative rule, and there has been some, but not cacophonous, controversy over the issue in the past. Not anymore. In a highly controversial ruling the Illinois Department of Revenue has denied the property tax exemption of three Illinois hospitals, Prentice Women’s Hospital in Chicago, Edwards Hospital in Naperville, and Decatur Memorial Hospital based on an insufficient amount of charity care. The hospitals, obviously, are appealing. But, when the dust settles one way or another there will be an impact on health care policy in the state of Illinois.
Reapportionment Challenge Update
The League of Women Voters has joined the suit asking that the reapportionment of Illinois legislative and congressional districts be overturned. However, their argument in urging the courts to trash the maps is one that has never been used in such a case before, the First Amendment. Historically, reapportionment challenges have been based on voting rights and other such issues. The League of Women Voters suit hinges on a comment made by a U.S. Supreme Court justice in a 2004 opinion on a reapportionment issue from another state.
In the meantime, candidates and office holders are busy trying to determine their futures, or lack thereof. There have already been a number of legislators who have indicated they will be taking a pass on 2012, or who will be trying to run for other offices. They need to start to finalize plans quickly because reelection petitions can officially be on the streets on September 6, and candidate filing begins on November 28. The reapportionment lawsuits that have been filed have asked courts to delay the filing date until legal issues are resolved. That may or may not happen. And with the odds of having the maps being thrown out being very long in the first place, the general expectation is that things will stay as they are so an early start is preferable.
There is one forthcoming House legislative race that sticks out like a sore thumb because of the oddity of circumstances. When any political party draws maps they try to protect their members while creating havoc with the other party. As a result, it’s not uncommon to see the losing party’s members drawn into new, unfamiliar districts or thrown in a district with another incumbent of the same party. It’s one of the rules that all candidates and office holders accept as part of the process. However, it’s very unusual for the winning party to draw a district that has their own incumbent living in the same district as an incumbent of the other party, but it’s happened. The newly drawn northwest Cook County/Lake County 59th District includes both incumbent Republican Sid Mathias and Democrat Carol Sente. The neighboring districts all contain other incumbents so there is nowhere else to go for either of them … so both Mathias and Sente have announced that they will square off against each other. The district leans Democratic but Mathias has been in office for 14 years and was once the mayor of Buffalo Grove that makes up a healthy portion of the new district. This will be a real interesting race to watch.
Gaming Still At Square One
There has been no resolution on gaming expansion, but there may at least be some timetable so that some decisions can be made. There are three questions the Governor has to answer before the makes up his mind on what to do. First, does the amount of expansion equate to being excessive, as he has suggested? Second, can he afford to pass up potentially billions in revenue by vetoing it? And, third, is there a middle ground?
A parliamentary maneuver has kept the gaming bill from the Governor’s desk, but Senate President John Cullerton has indicated that he may time the removal of that roadblock with the last day of the legislative veto session, so that if some a compromise can be negotiated the legislature can approve a “trailer bill” in November and the Governor can then sign one after the other. A “trailer bill” is one that modifies a bill that has already passed and contains only the changes in the original bill. It spares the legislature from having to debate the whole bill again while clearing up whatever flaws might exist in the original.
There have been many discussions and demonstration regarding the pros and cons of expansion. But, until the Governor has the bill all those efforts are meaningless, and it looks like that day may be arriving soon.
Senate Bill 83 Approved
Against the wishes of the Water Utility Council and others, Governor Quinn gave final approval last weekend to Senate Bill 83, legislation that will profoundly impact the way that municipalities can acquire water systems by eminent domain.
The new law disregards basic tenets of fairness such as consideration of the populations of municipalities that are served by the current water utility. The legislation was designed to impact a situation in Will County where municipalities with 1% of the population can dictate a direction opposed by municipalities representing 99% of water users. Other provisions in the bill also create questionable public policy.
The municipalities that prompted the legislation have been at odds with their water supplier for a long time and have attempted numerous times to have legislation approved to tilt the playing field. All previous efforts failed. There is little doubt that a court fight looms if the provisions of this Act are put into play.
Drinking Water Protection Bills Signed
Earlier this month Governor Quinn signed three bills designed to help protect the water supply, one of which was result of direct negotiations and discussions with the Water Utility Council.
House Bill 248 was designed to allow the North Shore Sanitary District to enter into agreements to sell, convey, or disburse treated wastewater with any public or private entity located within or outside of the boundaries of the sanitary district. However, the Water Utility Council raised concerns with District as well as bill sponsors about oversight and the need for appropriate EPA or PCB rules. Subsequently the bill was amended to address Water Utility Council concerns, requiring that any agreements be subject to orders of the Pollution Control Board.
The Governor also signed two other bills, House Bill 2056 and House Bill 3090 that address safe pharmaceutical disposal. House Bill 2056 creates a pharmaceutical collection and disposal program to safely dispose of excess medications and House Bill 3030 allows cities and villages to use city halls and police departments as places to locate suitable receptacles for used, unwanted or expired pharmaceuticals. Last year, the Water Utilities Council testified before a legislative committee investigating pharmaceuticals in drinking water, the potential impact, and possible solutions.
Legislative Announcements
Sens. Larry Bomke (R-Springfield), Chris Lauzen (R-Aurora) and David Koehler (D-Peoria) and Reps. Jerry Mitchell (R-Sterling) and Franco Coladipietro (R-Bloomingdale) have announced they will retire after their current terms and not seek reelection. Lauzen indicated he plans to run for Kane County Board Chairman, and Koehler announced that he will be a candidate for Congress.
State Rep. Ron Stephens (R-Savannah) has resigned. He has been replaced by Rep. Paul Evans.
Veto Session
The General Assembly will convene on October 25, 26, 27 and November 8,9,10 for its veto session.
Bills of Interest
Only bills that are still alive are listed.
HB 248 – Rep. May/Sen. Garrett - Amends the North Shore Sanitary District Act. Authorizes the board of trustees of a sanitary district to enter into an agreement to sell, convey, or disburse treated wastewater with any public or private entity located within or outside of the boundaries of the sanitary district. Provides that any use of treated wastewater by any public or private entity shall be subject to the orders of the Pollution Control Board. (Current Status: Approved – PA 97-500)
HB 308 – Rep. Tryon/Sen. Link - Creates the Closed Loop Well Contractors Certification Board. Provides that the Closed Loop Well Contractors Certification Board shall advise and aid the Director in (i) preparing subject matter for continuing education sessions, (ii) adopting rules, (iii) holding examinations, (iv) holding hearings, (v) submitting recommendations to the Director, (vi) grading all tests and examinations, (vii) performing other duties, and (viii) conferring with the Water Well and Pump Installation Contractors Licensing Board. Amends the Illinois Water Well Construction Code. Provides that the Department shall by rule require a one-time fee for permits for the construction, modification, or abandonment of closed loop well. Provides that all closed loop contractors shall be certified by the Department. Provides that all closed loop contractors who are certified may not engage in the occupation of closed loop well contractor unless he or she is registered with the Department. (Current Status: Approved – PA 97-363)
HB 1657 – Rep. Bellock/Sen. Althoff - Adds an Illinois congressional delegation member, or his or her designee, to be appointed by the Governor to the Task Force on the Conservation and Quality of the Great Lakes. Provides that no later than June 1 of each year, the Task Force shall submit a report to the General Assembly outlining its recommendations concerning legislative actions to protect the water quality and supply of the Great Lakes. (Current Status: Approved – PA 97-213)
HB 2056 – Rep. Osmond/Sen. Schmidt - Excludes from the definition of "pollution control facility" the portion of a site or facility used to incinerate only pharmaceuticals from residential sources that are in the possession or control of a law enforcement agency. Authorizes a law enforcement agency to collect pharmaceuticals from residential sources and to incinerate the collected pharmaceuticals in a manner that is consistent with rules adopted by the Agency. Authorizes the Department of State Police to use moneys in the Household Pharmaceutical Disposal Fund to make grants to local law enforcement agencies for the purpose of facilitating the collection and incineration of pharmaceuticals from residential sources. Defines "law enforcement agency". Amends the Unified Code of Corrections. Requires a $20 assessment to be levied against persons who commit specified drug offenses. Authorizes the Circuit Clerk to retain 5% of the penalties collected. Provides that a law enforcement agency may collect pharmaceuticals from residential sources and transport those pharmaceuticals to an incinerator permitted by the Environmental Protection Agency to be incinerated in accordance with the permit, permit conditions, the Act, and rules adopted under the Act. (Current Status: Approved – PA 97-545)
HB 3090 – Rep. Arroyo/Sen. Delgado - Provides that any city, village, or municipality may authorize the use of its city hall or police department to display a container suitable for use as a receptacle for used, expired, or unwanted pharmaceuticals. Provides that the used, expired, or unwanted pharmaceuticals may include unused medication and prescription drugs. Provides that the receptacle shall only permit the deposit of items, and the contents shall be locked and secured. Provides that the container shall be accessible to the public and shall have posted clearly legible signage indicating that expired or unwanted prescription drugs may be disposed of in the receptacle. (Current Status: Approved – PA 97-546)
