TMA Spring 2021 Legislative Update
In late May, TMA members were briefed on manufacturing related actions of the Illinois General Assembly. The update was provided by TMA lobbyist Jay Shattuck, who was joined by Illinois House Minority Leader Jim Durkin.
Just prior to the update, state lawmakers returned home expecting to reconvene to discuss an all-important energy bill expected to include over $600 million in Exelon Corporation subsidies the company says is needed to keep several Exelon nuclear plants from closing.
FY 2022 STATE BUDGET
Controlling party lawmakers chose not to release any information about the proposed FY 2022 State Budget
until 24 hours before the May 31 scheduled adjournment.
The final budget – SB 2800 – was nearly 3100 pages long. Changes that will directly affect TMA members include:
• Restricting the use of corporate net operating losses to $100,000 per year for any taxable year ending on or after December 31, 2021 and prior to December 31, 2024.
• Decoupling from federal tax bonus depreciation (100 percent expensing – Illinois had previously coupled from bonus depreciation of less than 100 percent expensing).
• Eliminating the phase-out of the Franchise Tax
• Requiring an addback for taxable years ending on or after June 30, 2021 of GILTI (the deduction allowed under IRC Section 250(a)(1)(B)(i))) and an amount equal to the deduction allowed under IRC Section 243(e) (certain dividends received from foreign corporations) and IRC Section 245A (deduction for foreign source-portion of dividends received by domestic corporations from specified 10 percent owned foreign corporations).
With the House adjourning, HB 2643 was not voted upon in the closing hours of the 2021 regular session. The House will need to concur on the Senate amendment in order to send to Governor Pritzker. As amended, the bill:
Amends the Identity Protection Act allowing social security numbers to be included in applications and forms sent by mail, including, but not limited to, any material mailed in connection with the administration of the Unemployment Insurance Act pursuant to the limitations and requirements of that Act.
• Extends benefits for non-instructional academic personnel until September 4, 2021.The federal government has increased from
50% to 75% the amount it will reimburse the UI Trust Fund. The remaining 25% will be funded from the recent $8.1 billion which is estimated at $65 -70 million.
• Waives collection of benefits overpaid by IDES due to no fault of the claimant.
• Requires the IDES to, for each benefit claim that appears to have been filed other than by the individual in whose name the claim was filed or by their authorized agent, annually report to the Department of Revenue information that may assist in avoiding negative income tax consequences for the individual in whose name the claim was filed.
• With the written consent of a claimant or employing unit and an agreement not to publicly disclose, the Director shall provide requested information related to a claim to a public officer or his or her agent. For business interests’ agreement to the above changes, the labor reps agreed to do a joint request with business to the Governor to use a “substantial portion” of ARPA funds to reduce the Unemployment Trust Fund deficit next year.
• Non-Compete/Non-Solicit Covenants to Go to Governor: Non-compete and non-solicit agreements will be prohibited for construction employees unless the employee is primarily performing management, engineering or architectural, design, or sales functions for the employer or who are shareholders, partners, or owners in any capacity of the employer.
• Cleanup of Equal Pay Certificate Registration Requirements Also on its Way to the Governor:
During the Lame Duck Session of the 101st General Assembly, SB 1480 was approved by the General Assembly and signed into law by Gov. Pritzker as PA 101-656. It was effective March 23, 2021. Three amendment to SB 1847 address in a compromise
fashion TMA’s major concerns with the Equal Pay Act provisions of PA 101-656.
The Governor is expected to sign the legislation fairly quickly, as IDOL needs the changes to begin implementing the law. This new requirement applies to employers of 100 or more Illinois employees.
Governor Pritzker signed into law PA 102-6, a revised version of an earlier bill vetoed by the governor. The issue was jammed through the legislature by the Illinois Trial Lawyers.
The new state law requires:
• Prejudgment interest to accrue at the rate of 6% from the date an action is filed in personal injury or wrongful death cases, capped at five years. It does not apply to workers’ compensation claims.
• If claimant’s counsel takes a voluntary dismissal to refile the action within a year, interest is tolled for that time; and punitive damages, sanctions, statutory attorney’s fees, and statutory costs are exempt.
Proposed Constitutional Amendment to ban any law promoting right to work efforts in Illinois
SJRCA 11 would add to the state’s Bill of Rights Article of the Illinois Constitution a ban on any effort to promote right to work legislation. It would prohibit any law — state or local — that interferes with, negates, or diminishes the employees’ efforts to organize and promote union efforts in their workplace. The amendment proposal will be on the state’s 2022 General Election ballot – requiring 60% of those voting on the amendment or a majority of those voting in the election to favor in order to add into the state constitution.
A revamp of the state’s energy policy was not decided upon before this report went to press.
TMA will report to its members in the next TMA News Bulletin and via email updates.
TMA joined with 30 other business groups in a letter asking Governor Pritzker to veto the measure. For more info, contact Dennis LaComb at [email protected]