Illinois Association of Realtors

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IAR State Capitol Report

Members Only

March 11, 2011

This report is distributed each Friday that the General Assembly is in session and is a summary of activity on bills of interest. 

JCAR RULES
On Tuesday, March 8th the administrative rules implementing the rewrite of the Real Estate License Act were accepted by the Joint Committee on Administrative Rules (JCAR), the legislative panel that oversees agency rulemaking.  The IAR had provided a comment letter during the official rule comment period, and had sent a follow-up letter to the Department and JCAR requesting various revisions to the rules.  All of the IAR revisions were accepted by the Department and JCAR prior to the final approval of the rules.  Upon the publication of the rules in the Illinois Register, which may occur as early as today, these rules will be in effect. 

IAR SSA INITIATIVE ADVANCES
Senate Bill 1804, an initiative of the IAR, was unanimously approved by the Senate Judiciary Committee this week and sent to the Senate floor for further consideration.  SB 1804, sponsored by Senator Pam Althoff, adds a new Section to the Property Tax Code to make null and void any deed restriction, restrictive covenant or similar provision that waives, prohibits or restricts the right to receive notice of a public hearing or the right to object, oppose or challenge the creation of a SSA, the levy of any tax of a SSA or the issuance of bonds of a SSA.

ILLINOIS INCOME TAX CREDIT FOR PROPERTY TAXES
Also on Tuesday, the Senate Revenue Committee had scheduled a subject matter on Senate Bill 2 (Delgado) which would have eliminated the current Illinois income tax credit for property taxes paid and implemented a flat grant to be provided to all property taxpayers who file an Illinois income tax return by April 15th.  As you will recall, the IAR OPPOSED a similar provision in the income tax increase package that was enacted in the waning hours of the 96th General Assembly.  Following discussions with the Senator Delgado, the sponsor of the bill, the Senator agreed to hold the proposal and has committed to an on-going dialogue with the IAR on property tax relief issues.

TIMEFRAME FOR DECISIONS OF THE PROPERTY TAX APPEAL BOARD
In recent discussions of the property tax system in Illinois, the issue of the backlog that exists at the Property Tax Appeal Board was highlighted.  The Senate Revenue Committee advanced legislation (Senate Bill 2073) that will mandate that decisions of the Property Tax Appeal Board be made within 365 days after the date the appeal was received by the Board. SB 2073 is sponsored by Senator Terry Link.  The IAR SUPPORTS this legislation. 

EVICTING TENANTS FOR CRIMINAL ACTIVITY
The Senate Judiciary Committee this week approved Senate Bill 1766, sponsored by Senator A.J. Wilhelmi, and sent the measure to the Senate floor.  The bill amends the eviction provisions of the Code of Civil Procedure dealing with evicting tenants for engaging in criminal activity (Section 9-120) to provide that a written lease shall notify tenants that they can be evicted for engaging in criminal activity as provided for in the Code.  The bill also allows the corporation counsel of a municipality to assume an eviction action under this Section at the request of a landlord.  This legislation and a similar House measure, House Bill 1309 sponsored by Representative Anthony DeLuca, have become a framework for discussing the larger issues concerning criminal activity on rental property.  Property owners in many areas are under extreme pressure from municipalities to deal with crime issues on rental property.  The IAR is working with both sponsors in crafting other provisions to be added to these bills that will give landlords additional tools and a more efficient mechanism for dealing with these situations.

EVICTIONS-PAY RENT DURING STAY OF ENFORCEMENT
The House Judiciary I- Civil Law Committee advanced House Bill 1209 (Ford) which amends the eviction provisions of the Code of Civil Procedure to provide that an eviction complaint may request the amount of rent that would be due during any period during which a judgment for possession is stayed by the court.  The IAR SUPPORTS this legislation.

COOK COUNTY EVICTIONS-REQUIRE TENANT INFORMATION
The IAR was successful in DEFEATING another attempt by Cook County Sheriff Tom Dart to add provisions to the Code of Civil Procedure to require landlords in Cook County to include in the eviction complaint the name, date of birth and disability status of each known occupant of the premises.  The IAR and other groups have repeatedly pointed out the flaws in this approach, including the fact that landlords generally don’t know and can’t ask for (especially in the case of disabilities) this information, and privacy concerns with disclosing this information about tenants in public court documents. Following testimony from IAR the Committee agreed and House Bill 3316, sponsored by freshman Representative Cunningham was resoundingly defeated.

MANDATORY LOCK CHANGING
The House Judiciary I-Civil Law Committee approved House Bill 1233, sponsored by Representative Rita Mayfield, following an amendment agreed to by the IAR, the Chicagoland Apartment Association, and the Rental Property Owners Association was put on the bill.  As amended the bill requires a lessor of a residential dwelling unit to change or rekey the immediate access to a unit each time it is vacated and before a new lessee occupies the premises.  The amendment limits the liability of a lessor to damages due to a theft attributable to not changing or rekeying the lock.  The IAR is NEUTRAL on the bill as amended.

SEX OFFENDERS-POLICE NOTIFICATION TO ALL TENANTS
House Bill 1251, as amended (Mell) was advanced from the House Judiciary II- Criminal Law Committee this week.  As amended, the bill provides that the local law enforcement agency having jurisdiction shall notify residents of a multi-unit dwelling that a sex offender resides on the premises.  As introduced, the measure would have put this responsibility on the landlord.  The IAR is NEUTRAL on HB 1251. 

RADON DISCLOSURE-TENANTS
The House Environmental Health Committee approved House Bill 141, as amended this week.  HB 141, sponsored by Representative Dan Reitz, adds very limited provisions to the Illinois Radon Awareness Act regarding radon in rental units.  The amended bill requires that if a lessor is notified by a tenant in a dwelling unit on or below the third floor of an elevated radon test or conducts a test that indicates an elevated level the lessor must disclose the elevated radon level to any prospective lessee of that dwelling unit.  The original bill would have enacted a comprehensive tenant radon protection act that included extensive disclosure and testing requirements.  The IAR is NEUTRAL on the bill as amended.

SELLER DISCLOSURE-TOXIC MOLD
The House Judiciary I-Civil Law Committee heard testimony on House Bill 1543 but held the bill for further consideration.  HB 1543, sponsored by Representative Dan Beiser, amends the seller disclosure law to add toxic mold to the items on the disclosure list.  The bill also contained a definition of toxic mold.  The IAR is OPPOSED to the legislation as we don’t believe that this is an item that sellers would typically have the common knowledge of in order to make an informed disclosure.  Most home sellers would be aware of mold on the premises but few would know, without testing, whether it was toxic mold.  Further discussions may occur on this issue this session.

CONDOMINIUM AND COMMON INTEREST COMMUNITY LEGISLATION
The Senate Judiciary Committee advanced Senate Bill 1972, sponsored by Senator Pam Althoff, which amends the provisions of the Condominium Property Act pertaining to paying the last 6 months worth of unpaid assessments in a judicial sale to add attorney’s fees and collection costs to what the buyer must pay in the transaction.  Although the IAR has not taken a position on this legislation there are several issues with respect to this bill that we are currently looking at and we will keep you apprised as to further developments. The Committee also advanced Senate Bill 1593, sponsored by Senator Althoff, which exempts condominiums with either 10 units or less or annual budgeted assessment of $100,000 or less from the Condominium Property Act unless the condo association affirmatively elects to be covered.  The IAR is unsure of the sponsor’s intent and has concerns that the legislation may actually effect the ongoing existence of these condos that are no longer under the Act.  The IAR also had a conference call regarding some potential changes to the recently enacted Common Interest Community Association Act (CICA).  Conversations are centering on Senate Bill 1651, sponsored by Senator A.J. Wilhelmi, as the vehicle to any changes that may be made.  

GRASS CUTTING ON PUBLIC RIGHT OF WAY ABUTTING PREMISES
The Senate Local Government Committee advanced Senate Bill 1684 that clarified that a municipality is permitted to require the owner or occupant of any premises to cut or trim the grass and weeds on the public lawn on the public right-of-way which abuts the premises.  The IAR is NEUTRAL on this bill sponsored by Senator A.J. Wilhelmi.

ILLINOIS INSURANCE CODE CLAIMS- REQUIREMENT THAT LIENS BE PAID
House Bill 3477, as amended was approved this week in the House Judiciary I-Civil Law Committee.  HB 3477, sponsored by Representative Kay Hatcher, provides that prior to the payment of a claim, an insured property owner must include in their certification that there are no unpaid nuisance liens.  Currently the certification must affirm that there are no delinquent property taxes nor unpaid incurred demolition expenses.  The IAR is NEUTRAL.

STORMWATER INITIATIVE STALLS-FURTHER DISCUSSIONS SCHEDULED
The House Counties and Townships Committee voted down a proposal OPPOSED by the IAR to change the structure of the funding of stormwater management activities in the larger urbanized counties that currently have statutory powers to regulate these activities.  House Bill 3372, sponsored by Representative Mike Fortner, is intended to allow the counties to move to a schedule of fees based on “impact” on new development AND redevelopment (current law specifies only new development).  This concept of an impervious surfaces fee has been extremely controversial in the past and is likely to generate similar opposition this year.  The measure references that the counties should “include a procedure for a full or partial fee waiver for property owners who have taken actions or put in place facilities that reduce or eliminate the cost to the county of providing stormwater management services to their property” with a preference for so-called green infrastructure.  While the bill was defeated, the sponsor has the right to call the bill again next week.  The IAR has urged that green infrastructure be an incentive based program.  The IAR and other interested parties are meeting with the sponsor next week to further discuss the proposal. 

BROWNFIELDS INCOME TAX CREDIT
Senate Bill 1900, sponsored by Majority Leader James Clayborne, was approved by the Senate Revenue Committee this week.  The bill provides that qualified taxpayers that undertake one or more eligible projects related to the remodeling, rehabilitation, modernization, or remediation of certain contaminated property may apply with the Illinois Department of Commerce and Economic Opportunity to obtain a tax credit against their income tax liability.  The IAR is MONITORING this legislation.

HEALTH BENEFITS EXCHANGE ACT
The House Insurance Committee had a lively debate on the issue of healthcare and advanced legislation related to a health benefits exchange intended to focus on accessibility and affordability.  House Bill 1577, an initiative of the Illinois Chamber of Commerce and sponsored by Representative Frank Mautino creates the Illinois Health Benefits Exchange Act.  Beginning January 1, 2014 and in accordance with the federal Patient Protection and Affordable Care Act, the State is directed to establish a State health benefits exchange to be known as the Illinois Health Benefits Exchange in order to help individuals and small employers with no more than 50 employees shop for, select, and enroll in qualified, affordable private health plans.  The bill creates the Illinois Health Benefits Exchange Legislative Study Committee within the existing Commission on Government Forecasting and Accountability to conduct a study on implementation and establishment of the exchange.  The IAR will continue to work with other interested parties as this issue develops.

IDFPR LEGISLATION ON REAL ESTATE LICENSE ACT
Duplicate measures introduced by the Department of Financial and Professional Regulation were advanced this week.  House Bill 2023, sponsored by freshman Representative Ann Williams and Senate Bill 1830, sponsored by Senator Gary Forby changes provisions concerning the grounds for discipline of a licensee for convictions of certain crimes.  The IAR is NEUTRAL.

LICENSURE OF OTHER PROFESSIONS OF INTEREST
Senate Bill 1806, sponsored by Senator Pam Althoff, which is the rewrite of the Home Inspector License Act is advancing in the Senate.  The IAR is NEUTRAL.   Senate Bill 1232, a measure that sought to license interior designers was stopped due to significant OPPOSITION from a variety of groups, including the IAR. 

DUPLICATE WEST CHICAGO ANNEXATION LEGISLATION IN SENATE
As reported last week, the House took final action on legislation (HB 1320) to   modify the rule of contiguity for annexing territory to allow West Chicago to annex unincorporated territory near Fermi Laboratory.  The Senate Local Government Committee approved a duplicate measure, Senate Bill 1700, this week.  This bill is pending on the Senate floor.  The IAR is NEUTRAL on both bills.

OBJECTIONABLE MEASURES TABLED
Representative Al Riley tabled two controversial bills this week making them inactive for this session.  House Bill 1214 sought to exempt special purpose extensions made by any taxing district for payment of that district's share of the amounts required to be contributed to any pension fund from the definition of "aggregate extension".   House Bill 1322 would have allowed all non-home rule municipalities the right to issue bonds without voter approval.  The IAR had OPPOSED both of these measures. 

MANDATORY SEAT BELTS – BACK SEAT PASSENGERS
The House Transportation-Vehicles & Safety Committee advanced House Bill 219  this week which will require EVERY driver and passenger (rather than every driver, front seat passengers, and certain passengers under the age of 19) of a motor vehicle to wear a seat belt.  There are specific exceptions in the legislation; such as mail carriers, emergency vehicles, back seats of taxis.  The IAR is MONITORING this legislation.

TASK FORCE ON REVIEW OF LOCAL DEVELOPMENT STANDARDS 
The House took final action on HR 14 this week to extend the reporting deadline of the Task Force on the Review of Local Development Standards to January 1, 2012.  The task force’s duties were also expanded to include a study of local government solicitation of and adherence to recommendations and findings of county, state, and federal agencies that regulate land, water, forest, or any other natural resource.

NEXT WEEK
The Senate returns next week on Monday and the House returns on Tuesday for another hectic week as both chambers work toward the committee hearing deadline on Thursday, March 17th.