Legislative Update - August 31, 2011

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 59^th 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)

Illinois Section AWWA – Water Utility Council
Legislative Update – August 25, 2011
Jerry Bever, WUC Chair

You Win Some and Then You Win Some More!

Water Utility Council Has Positive Impact on Legislation.

The Illinois Section AWWA’s Water Utility Council (WUC) monitors and responds to legislation that may affect water utilities within our state. The WUC worked closely with legislators and stakeholders to positively impact this new legislation. The following link is a press release by Governor Quinn’s office regarding three of the bills that the WUC worked on this past year.

http://www.illinois.gov/PressReleases/PressReleasesListShow.cfm?RecNum=9678

CHICAGO -- Gov. Pat Quinn has signed three bills he says will help conserve and protect drinking water in the state.

One bill allows recycled, treated wastewater to be used for purposes that don't include consumption, such as watering golf courses or parks. Experts say this would save drinking water used for the same purposes.

Two other bills that Quinn signed Wednesday deal with safely disposing of pharmaceuticals and prescription medicines to keep them out of the water system. The first of these bills, creating a pharmaceutical collection and disposal program, is a result of efforts by students at high schools in Pontiac and Antioch. The final bill will allow municipalities to display containers to collect used, expired or unwanted medications.

House Bill 248 allows the North Shore Sanitary District to sell gray water for non-potable use. The original bill raised numerous concerns for the protection of the public coming in contact with the gray water, and the protection of source water that may come in contact with the gray water. The WUC worked with Senator Susan Garrett and other legislators to make our concerns known, and were successful in getting the following amendment added to the bill. The amendment places the responsibility back on the Illinois Pollution Control Board to insure that only properly treated (disinfected) gray water is able to be sold.

Senate Committee Amendment No. 1
Further amends the North Shore Sanitary District Act. Provides that any use of treated wastewater by any public or private entity shall be subject to the orders of the Pollution Control Board.

House Bills 2056 and 3090 both provide additional means of safeguarding our source water from contamination of improperly disposed of pharmaceuticals and prescription drugs. WUC members testimony and contact with legislators helped to support the passage of these bills.

Risky Business - Water Utilty Council Update

Risky Business

After a rocky beginning, the road has been anything but smooth during the first month of the state fiscal year. The Governor signed off on the budget late on June 30. In the process he surprised everyone by pretty much going along with what the General Assembly sent to him … it had been expected that he would trim and create a pool or revenue that could be reallocated according to his wishes by the legislature in the fall. But he did have one surprise up his sleeve when he announced that he was axing state employee cost of living increases that had been negotiated last year, explaining that the legislature didn’t provide enough money to fund them.

State employee unions have gone ballistic at Governor’s action and have gone to court and arbitration seeking to force payment of the increases. And so far, they’ve been victorious in each contested hearing or court proceeding, arguing that an agreement is an agreement and the state has a duty to fulfill its contractual obligations. In the press they have insinuated that if the negotiated raises are allowed to be sacked then the whole idea of future multi-year collective bargaining is at risk.

As of this past week there is still a stalemate with Governor Quinn insisting that the legislature has the appropriating power and the responsibility to provide enough to fund any raises or personnel costs and that his hands are tied. The General Assembly, on the other hand, insists that the Governor has other personnel moves that could be made, such as layoffs or elimination of other positions, to allow the raises to be paid.

The Governor has also requested that the Joint Committee on Administrative Rules (JCAR) approve deferring the raises by rule. JCAR members, comprised of twelve legislators, have treated the Governor’s request as a hot, hot potato, deferring any action until the issue is resolved by the courts.

Notwithstanding the push by the Governor to throw blame in other places, there are a few factors that boomerang the issue right back to is front door. First, he wasn’t much of a factor or participant in budget negotiations this past session, the legislature creating their own plan using conservative revenue and spending plan estimates almost $2 billion below that of the Governor’s initial request. Second, this is a contract that the Governor himself negotiated last summer and fall so the burden for the raises falls squarely on his shoulders, and in the end the speculation is that the courts will determine the same. Recalling some of the court decisions rendered during the recent legislative overtime sessions, when judges ruled that state employees had to be paid regardless whether or not a budget was in place, suggests that the Governor is on very shaky ground and should be looking in every nook and cranny for a way to identify the $75 million that will be needed to fund the increases.

Reapportionment Maps Challenged

Both the newly drawn state and congressional maps have been challenged in federal court, the lawsuits having been filed this past week. Even though the Illinois Supreme Court, according to the Illinois Constitution, has “exclusive jurisdiction” over the state map it is being challenged in federal court based upon voting rights issues, namely lack of an appropriate number of Hispanic/Latino districts as a primary basis. There is no timetable for any decisions but it is expected that the process will be expedited so prospective candidates can make decisions as quickly as possible.

The lawsuits have been filed by coalitions representing the Republican Party, who stand to lose the most if the new maps are approved. One important Hispanic/Latino organization, MALDEF (Mexican American Legal Defense and Education Fund), that has had some success in past redistricting court battles has not joined this battle but is reviewing it. With MALDEF joining the chances of a court victory are slim. Without them, it’s almost nil.

Historically, the losing side in redistricting fights will squawk and file a bevy of court suits. Similar activities are taking place throughout the nation where state legislatures are cutting up the remap “pie”. One thing to remember is that the GOP triumphs and takeovers in numerous states last November will allow them to maximize their ability to retain their current incumbents and creating as many new GOP state and congressional seats as possible. The GOP in Illinois wasn’t very lucky, but a victory in their court suit could jeopardize Republican gains in tens of other states where they hit the jackpot last year.

In the meantime, there is an expectation that the courts will uphold the Illinois maps. Congressman Tim Johnson (R-Champaign) even refused to join the suit, essentially saying he felt it was a waste of time. And, with petition filing set for early December candidate petitions can be on the streets in early September so candidates are making plans and preparing announcements. Expect that August will be very, very busy in that regard as incumbents and others weigh options and make decisions.

“Round and Round It Goes …”

Gaming expansion legislation and the efforts to convince the Governor to either sign or veto it have become more and more intense. The bill represents a huge increase in the number of additional casinos (five) as well as slot machines at race tracks. And, since the legislation was approved by the legislature with hardly a vote to spare, anything other than a gubernatorial signature puts the whole package in jeopardy. It’s anyone’s guess as to where the ball will drop at this point. The Governor has said the package is “excessive” but has not said he’ll veto it. The Chairman of the State Gaming Commission, the Chicago Tribune, and others are pressuring Governor Quinn to reject or change the plan. The impacted municipalities and others who see the additional revenue as a means of helping the state extricate itself from its fiscal morass are urging approval.

As all these forces put pressure on the Governor he doesn’t even have the bill before him and won’t until the President Cullerton withdraws a parliamentary motion that has kept the legislation in the possession of the Senate. If you recall, just moments after the expansion bill passed the Senate Cullerton filed a “motion to reconsider”. This common procedure prevents a bill from moving to the next stage … in this case the Governor’s desk. It may be that the push and pull of the gaming expansion debate will continue until the legislature reconvenes in late October. By that time there will either be a compromise that can muster the appropriate number of votes, or the Governor will have to make a decision that is sure to both elate and disappoint large numbers of Illinoisans.

Also, just a few weeks ago the Illinois Supreme Court nixed efforts to stop legislation that was approved for the purposes of funding capital construction projects. Part of the bill included legalizing video gaming and that portion was not part of what fueled the lawsuit, but a negative ruling by the Supreme Court would have required the legislature to reapprove it or go back to the drawing boards. The unanimous Supreme Court opinion approving the legislative procedure in question now injects thousands of video poker machines into the state gambling mix, in addition to providing one of the key revenue sources for construction projects throughout the state.

Legislative Appointments

Rep. Kent Gaffney has been appointed to complete the term of former Rep. Mark Beaubien who passed away in June.

Rep. Jerry Costello, Jr. has been appointed to replace former Rep. Dan Reitz who resigned.

Representative Dave Winters (R-Rockford) and Sen. Susan Garrett (D-Lake Forest) have announced they will not seek reelection in 2012. There may be quite a few such announcements in the coming weeks.

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: Sent To Governor)

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: Sent To Governor)

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: Sent To Governor)

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: Sent To Governor)