July 12, 2023

The State Legislatures of both Iowa and Illinois have concluded their sessions, with consequential legislation passing the House and Senate in each state. As a bi-state regional economy, laws passed in both states impact all businesses. If you have questions about anything or want to get involved with the Quad Cities Chamber’s efforts to influence policymaking at the local, state or federal level, please reach out to our government affairs team or sign up to have your voice heard through our Advocacy Action Center.

Key Legislation 

Rock Island Port District

This bill establishes the Rock Island Regional Port District creating a new entity that can receive greater funding to invest in the Rock Island community. This includes projects such as road development and improvements to river commerce. This bill passed both houses in Illinois and is expected to become law. 

Health Benefits for Immigrant Adults

The Health Benefits for Immigrant Adults Program in Illinois, a law passed in 2022 underwent significant changes due to previously unforeseen budget implications. This included reducing the number of individuals covered to ensure the overall stability of the Illinois budget.

Major Economic Growth and Attraction (MEGA) Program

The Iowa MEGA program bill would have created the Major Economic Growth Attraction (MEGA) Program under the Iowa Economic Development Authority (EDA). The bill creates a new incentive program for projects over $1 billion on certified sites of 250 acres or more. The law failed to pass the Iowa House.

Property Tax Reform

A top priority for Iowa Republicans this year became bipartisan legislation to restore levy limitations, consolidate 15 levies, and limit local government spending growth. Governor Reynolds has signed the legislation.

Destination Iowa

This program started in 2022 with American Rescue Plan Act funding for quality-of-life projects, and received a $6.5 million appropriation in FY24 to continue funding transformational projects. The extension was announced by Governor Reynolds and information on the program is available here.

Talent Attraction and Development

Illinois

Medicaid Expansion

A long overdue Medicaid increase was passed in the final days of the General Assembly. Providers will see their first increase in funding since 1995, a 10% bump. Increasing Medicaid will help attract healthcare professionals to the state of Illinois, a much-needed boost. Additional increases in the future will be welcome, but this is a step in the right direction.

Health Care/Rate Approval

This bill, which ensures timely recovery of insurance claims, was supported heavily by advocacy groups for small business. It will protect small businesses from excessive premium increases on health insurance. The bill has passed both houses and is on track to become law. Read more on why this could be a win for small businesses in the report from the Small Business Advocacy Council.

Freelance Worker Protection Act

This bill requires freelance workers to be paid the amount they are due on or before the day the contract requires. If the contract does not specify when the payment is due, it will be due no later than 30 days after the completion of the job. Though beneficial for certain freelance or small business owners, it will require some businesses to adjust their accounts payable policies and accounting practices.

Iowa

Youth Employment

This legislation allows for minors to perform work activities that they previously could not, such as serve alcohol in restaurants with parental permission, allows for exceptions to prohibited jobs for 16 and 17-year-olds participating in a registered work-based learning program, and extends the eligible hours a minor can work to 9 p.m. during the school year and 11 p.m. during the summer. Governor Kim Reynolds signed this bill into law on May 26, 2023.

Apprenticeships

This will establish the Iowa Office of Apprenticeship and Iowa Apprenticeship Council. This bill was signed by Governor Reynolds on May 10, 2023, at the Quad Cities Chamber Signing Day event. The bill will help streamline the process of creating a more robust pipeline from high school to manufacturing jobs for young people entering the workforce.

Medical Malpractice Tort Reform

This bill limits how much money can be awarded to plaintiffs in noneconomic damages for medical malpractice lawsuits against hospitals. This legislation will keep costs for hospitals more predictable, which in turn will lead to lower rates for health services and assist in the recruitment of medical professionals to the state. The Governor has signed this bill into law.

Commercial Motor Vehicle Tort Reform

This bill creates a $5 million cap on noneconomic damages and allows plaintiffs to recover 100% of punitive damages in commercial vehicle crash cases. The Quad Cities region is a logistics hub and our regional economy benefits from a new approach to commercial vehicle torts. Governor Reynolds signed this bill into law on May 12, 2023.

Business and Economic Growth

Illinois

Permitting Portal

This bill is a joint initiative of the Illinois Chamber of Commerce and the Illinois Environmental Regulatory Group (IERG) to assist businesses in obtaining environmental permits for large-scale projects. This tool should help spur economic development statewide. The bill creates an online permitting portal for new and existing environmental permit applicants with a qualified investment of $20 million or greater. The bill passed both houses and awaits the Governor’s signature.

Iowa

Port Authorities

This legislation died in the second funnel. However, it would allow for the creation of a port authority by one or more political subdivisions, and creates more favorable ways to distribute liability and project delivery for projects crossing multiple municipal borders.

Placemaking and Place Management

Illinois 

Environmental Justice

This bill, HB 2520, was proposed by environmental activists and considered in the Illinois House, but it did not move forward. A business coalition, which consists of the Illinois Chamber of Commerce, IERG and other associations, put forward their own competing bill, SB 852, focusing on a more community-minded approach. This will be further debated in the next legislative session.

Iowa

Levee and Drainage Districts

This bill, which has been signed by Governor Reynolds, provides funds to construct and improve levees within levee districts that are in critical need of repair. It will also establish a statewide levee assessment report, based on routine inspections of levees to ensure that the funds go to the levees most in need of repairs or improvements.

What’s next for the State Legislatures?

This Fall, the Illinois General Assembly will reconvene for about two weeks for the annual Fall veto session. At that time, legislators will be able to take necessary action on any legislation the Governor vetoes between now and then. The next full session of lawmaking in Illinois will commence early next year, 2024. In Iowa, the Second Session of the 90th General Assembly of the State of Iowa will convene on January 8, 2024.