“The average pencil is seven inches long, with just a half-inch eraser-in case you thought optimism was dead.” 

~Robert Brault

The Illinois General Assembly reconvened this week following a brief recess for the February 5, 2008 Primary Election. The primary focus of activity this week was the introduction of bills for consideration this spring session.  Friday marked the deadline date for bills to be introduced in both the House and the Senate. 

On Wednesday, February 13 the Speaker of the House, Michael Madigan, announced that most new legislation considered in the House this year MUST include a provision stating “neither the Governor nor any agency or agency head under the jurisdiction of the Governor has any authority to make or promulgate rules to implement or enforce the provisions of this amendatory Act”. This was a continuation of the battle between the legislative and executive branches over the authority to enact a health care expansion program. You may recall that the Governor developed regulations to enact such an expansion - by-passing the legislative process. The Joint Committee (JCAR), the bipartisan legislative oversight committee created by the General Assembly in 1977 and charged with reviewing State regulations and rules, rejected the rules. The Governor then declared that JCAR did NOT have the authority to stop the rules. This issue is pending in the courts. It was reported that the Senate may not pass any legislation with the provision required by the House. Clearly the gridlock all experienced in the 2007 session could dominate this 2008 session- perhaps optimism IS dead.

IAR legislative initiatives were introduced this week. House Bill 5358, sponsored by Representatives Kevin Joyce and Skip Saviano, is nearly identical to Senate Bill 571 which passed the Senate in 2007 but was held up in the House.  The legislation contains changes to the Real Estate License Law SUPPORTED by IAR.  The changes update the License Law, and include a variety of definitional changes, educational changes and technical changes. A summary of House Bill 5358 is available at IAR Action Center (www.iaractioncenter.org). The bill is also supported by the Illinois Department of Financial and Professional Regulation. House Bill 5360, sponsored by Representative Dan Reitz, is a vehicle for potential amendments to the recently enacted Illinois Radon Awareness Act. There has been discussion regarding a possible need to clarify the definition of residential real property. IAR lobbyists have also talked with Representative Jack Franks about amending his bill, House Bill 4322, with additional protections for private property owners within a Special Service Area (SSA) which were discussed at the January Public Policy meetings.  Representative Franks’ underlying bill provides that residents must affirmatively petition for the creation of a SSA.

Although no formal legislative action occurred on the bill this week, House Bill 4313 has generated a lot of controversy since its introduction in early January, including concerns being raised about the legislation by the U.S. Department of Justice. The bill, which is an initiative of a group called the “Homeowners Club of America” (HCA), would amend Section 10-15 of the Real Estate License Act to prohibit a real estate licensee from paying a cash rebate, cash gift, or cash prize to an unlicensed person who is a party to a contract to buy or sell real estate. At its Public Policy Meetings in January, the Illinois Association of REALTORS adopted a motion to OPPOSE House Bill 4313, sponsored by State Representative Robert Molaro (D-21, Chicago). 

The HCA claims in the written material it is circulating that the legislation is aimed at “west coast brokers attempting to change Illinois commission structures”. IAR has not heard of any sound arguments to justify this legislation, and we have serious concerns with the proposal, including:

House Bill 4313 has been advanced out of the House Rules committee, and has been assigned to the House Judiciary-Civil Law Committee, where it may be called for a vote as early as next week.

On Thursday, the Senate Executive Committee unanimously approved Senate Bill 1920. This measure, sponsored by Senator Susan Garrett, is a follow-up to the recently enacted RTA/CTA financial bailout package. The legislation will require the counties of DuPage, Kane, Lake, McHenry and Will to report to the General Assembly and the Illinois Commission on Government Forecasting and Accountability each year on the total amount received by the county from the authorized sales tax increase and how those funds were spent.  This bill is pending on the Senate floor. IAR did not take a position on this legislation.

Also on Thursday, the Senate Executive Committee debated Senate Bill 1916, a measure that would authorize the village of Hazel Crest to use quick-take eminent powers for a three year period to further the purposes of the 167th Street TIF plan. There was significant debate on the measure and the sponsor, Senator Maggie Crotty, pulled the bill from the record and indicated that she would work on the measure further and bring the bill back for further consideration. IAR was NEUTRAL on the bill.

The House Environment and Energy Committee unanimously approved House Bill 4129 on Thursday and sent the bill to the full House for further consideration. This bill, sponsored by Representative Frank Mautino, amends the Private Sewage Disposal Licensing Act, to allow for new technology to be used as an option for smaller systems that service primarily residential properties. The Department of Public Health is charged with authorizing the use.  In debate on the legislation it was pointed out that this will allow for new technology, tested and proven in other states and often at a lesser cost, to be used in Illinois. IAR SUPPORTED this legislation.

On Friday, February 15th the House Revenue Committee took testimony only on House Bill 4521- legislation that would, in effect, allow for another local government to “veto” a municipal TIF. Two members of the LaSalle County Board testified in favor of the bill which was OPPOSED by IAR, various municipalities and the Illinois Tax Increment Association.  The bill was held in the Committee.

On Friday, February 15th the House of Representatives unanimously adopted HR 996 saluting the National Association of REALTORS® in honor of its centennial year. NAR was founded as the National Association of Real Estate Exchanges on May 12, 1908 in Chicago.

You will recall that IAR and CAR worked tirelessly to defeat the RTA/CTA bailout legislation – in great part because it sought to bypass existing State law that required an increase of a local real estate transfer tax to be approved by the voters in an election. Ironically, the day AFTER the primary election the Chicago city council approved the $3 increase (40%) of its local real estate transfer tax on a roll call vote of 41-6. IAR Advocacy funds were used in a multi-media blitz against the transfer tax- newspaper ads, radio commercials and a website all directed voters to the aldermen’s office to voice their opposition. In addition, we generated telephone calls as a result of a targeted automated call campaign. The Chicago transfer tax is now the highest in the State- $10.50 per $1,000 sales value. This city council action was required by the State legislation approved in January.  The $3 increase will be used to pay for CTA employee pension and retiree healthcare costs. The ordinance was approved with an exemption for buyers at least 65 years of age who purchase property valued up to $250,000 and who live in the premises for at least one year and a provision to allow active military personnel and disabled veterans to ride the CTA for free. The transfer tax increase in Chicago is effective on April 1st. Also beginning on that date, taxpayers will face a ¼ of 1% increase in the existing regional RTA sales tax that is authorized for Cook and the collar counties with an ADDITIONAL ¼ of 1% sales tax increase in DuPage, Kane, Lake, McHenry and Will counties for local transportation or public safety projects. 

Also of note this week, State Senator Carol Ronen resigned from her 7th District seat on February 10, 2008. Senator Ronen had earlier determined that she would not seek re-election. Heather Steans, who had won the February 5th democratic primary election, was appointed to fill the vacancy.

The General Assembly is scheduled to be in session next week Wednesday, February 20-Friday, February 22nd. Full schedules in Senate and House Committees along with floor action will occur. ALSO OF NOTE:  On Wednesday, February 20th the Governor will address a joint session of the General Assembly with his annual State of the State address and budget message. In that message the Governor is expected to roll out a significant initiative that will impose a “carbon tax”- a tax on the burning of fossil fuels (coal, gas and oil). Consumers would pay higher prices for virtually every product or service that uses fossil fuels in its production or delivery; i.e. gas, home energy, food, milk, automobiles. Also continued to be rumored is a “Net Assets” tax proposal. IAR has joined a broad coalition to respond to both proposals. Watch for next week’s issue for more details on the Governor’s address and his latest business tax initiatives.

IAR lobby day- Capitol Conference- will be held Tuesday, February 26, 2008. Early registration is over but walk-ins still will be accepted at a cost of $25 on the day of the event. PLAN TO ATTEND THIS INFORMATIVE DAY IN SPRINGFIELD! Information is available on IAR website.