Lame Duck Session
This week marked the conclusion of Illinois’ “lame duck” session – a brief meeting of the outgoing legislature prior to the new legislature’s swearing-in. The session featured limited banking-specific legislation, however there were a few important pieces of legislation that the IBA tracked that are noted below. Additionally, the legislature acted on several major social policy issues, in part by passing extensive firearm regulations including an assault weapons ban and a reproductive healthcare package that includes protections for Illinois medical providers.
On Monday, statewide constitutional officers were sworn in, including Gov. Pritzker and Lt. Gov. Stratton, AG Raoul, Treasurer Frerichs, Comptroller Mendoza, and newly-elected Secretary of State Alexi Giannoulis. Illinois House and Senate members were sworn in on Wednesday.
Meanwhile in Washington, D.C., following the televised drama of the House speakership vote, four new members of Illinois’ congressional delegation were sworn in: Reps. Jackson (CD #1), Ramirez (CD #3), Budzinski (CD #13), and Sorenson (CD #17).
Illinois CRA Update
In December, the IBA wrote a letter
cosigned by the CBAI and the ICUL asking for an extension of the comment period on the Illinois Community Reinvestment Act (CRA) rules. IDFPR sources confirmed this week that the comment deadline will be extended through at least the end of February and possibly longer. The IBA also learned the agency with hold at least four public hearings on the rules during the last week of February. The IBA plans to testify.
Please provide your bank’s feedback as we collect information for an industry comment letter. Review the full rules here, and the bank rules here. Please reach out to Carolyn Settanni and/or Ben Jackson with your comments.
Lame Duck Legislation of Interest
Mandatory Paid Leave Passes General Assembly (See IBA Draft Analysis)
SB 208 requires all employers in Illinois to provide their employees a mandatory 40 hours of paid leave to be used for any reason. Employers that violate the act are subject to penalties, including fines and compensatory damages for the affected employee. SB 208 passed both chambers this week and will be signed into law soon. The IBA took no position, although some business groups supported the bill following negotiations. We encourage all banks to review this legislation, along with our preliminary analysis of the bill. The legislation is effective January 1, 2024. IL Paid Leave Q&A
Legislation To Cover Pawnbrokers Under the PLPA
Legislation seeking to include pawnbrokers in the Predatory Loan Prevention Act (PLPA) passed out of a Senate committee last week, however it stalled on the floor. We expect it to be refiled in the new general assembly. The IBA is neutral.
Collateral Recovery Act – Personal Information Use & Hazardous Material Disposal
Legislation was filed during lame duck session to allow repossession agencies to wipe personal data from seized motor vehicles. The bill also requires licensees to dispose of hazardous material, and to charge “legal owners” of the vehicles (in most cases, lien-holding financial institutions) a $50 fee for hazardous material disposal. The legislation did not pass during lame duck session. The IBA opposed.
Tax Credit Changes & Extensions
Several tax incentive and government funding bills passed during this week’s lame duck session. One of the pieces of legislation includes a tax incentive package that creates a Department of Commerce and Economic Opportunity (DCEO) closing fund to make non-competitive economic incentive awards, including grants and loans, to assist applicants that pledge to make capital investments and create or retain new jobs. It also reconfigures a program to incentivize electric vehicle manufacturing and extends some tax credits, along with making changes to the EDGE credit program. Other appropriations bills that were passed included measures to pay off the remaining $1.375B in federal Unemployment Insurance Trust Fund debt, funding for legislative raises, as well as additional funding to Illinois’ rainy-day fund.