Illinois and Iowa legislative updates

March 22, 2022
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Our Government Affairs team has been quite busy doing the work you asked us to do. During a recent visit to Des Moines, there was a lot of positive discussion on tax reform. The Quad Cities Chamber is glad to see Iowa move toward a simplified tax system that will make the state more competitive. While the legislation addressed many of our priorities, tax credits that have proven results, such as the refundability of Historic Tax Credits and the Research Activities Credit, were negatively impacted. We will work with our elected officials to preserve tax credits that benefit our employers and spark growth.  

While in Springfield, the team heard from Illinois Speaker of the House Chris Welch and House Republican Leader Jim Durkin, among others. We continue to encourage legislators to make repayment of the Unemployment Trust Fund a priority without placing the burden on the backs of businesses. We feel they heard us to some degree; Senate Bill 2803 was introduced, passed the Senate and is now headed for the House. It proposes using $2 billion in ARPA funds to pay back a portion of the Trust Fund – the total debt is $4.5 billion. It is a small step in the right direction, and we will continue to follow it as we don’t want the remainder of this debt passed on to businesses in the form of higher taxes. 

You can read these bills and others on our bill tracker, which provides a direct link to the bill and the Chamber’s position.


Illinois

  • Only the House was in session last week with a focus on committee work. The House committee deadline for Senate substantive bills and the Senate committee deadline for substantive House bills remains March 25. The House and the Senate returned Tuesday. The Legislature continues to work toward its April 8 adjournment deadline.  
  • A major issue we are tracking is the Unemployment Trust Fund, which is roughly $4.5 billion in debt and costing Illinois businesses millions in interest. Last week the Senate introduced SB 2803 which would put $2 billion in ARPA dollars toward the UI debt. It passed the Senate 33-15. The Bill is expected to be heard Wednesday and we are watching this legislation. 
  • The Illinois Department of Employment Security (IDES) announced that the unemployment rate fell -0.1% to 5.0%. The state’s unemployment rate was 1% point higher than the national unemployment rate reported for January.
  • Secretary of State Jesse White announced that expiration dates for driver’s licenses will be extended from March 31 to July 31. As a result, expired driver’s licenses will remain valid through the end of July 2022 so residents do not need to rush into Driver Services facilities.

Iowa

  • March 18 was the final date for Senate bills to be passed out of a House committee and House bills to be passed out of a Senate committee. Any bills that did not make it out of committee, with the exclusion of appropriation and ways and means bills, are no longer eligible for consideration. Following the second funnel, the House and Senate can only consider bills from the opposite chamber and bills placed on the unfinished business calendar until March 25.  
  • House File 2331 was approved by the Senate State Government Committee on March 16. This bill would establish daylight savings time as the official time in Iowa. Senator R. Smith filed an amendment to the bill that would make the bill go into effect only after surrounding states adopt similar legislation. The U.S. Senate unanimously approved similar legislation this week after Senator Marco Rubio introduced the Sunshine Protection Act to make daylight savings time the official time in the U.S.  
  • The House passed multiple budget bills out of committee this week. House Republicans are proposing an overall FY23 budget of $8.274 billion while Senate Republicans are proposing an overall budget of $8.202 billion. With the second funnel deadline behind the legislators, the remainder of the session will focus on passing the FY23 budget and remaining policy priorities.  

Legislative Event Series

During the Chamber’s recent Legislative Event Series, Debi Durham, Director of the Iowa Economic Development Authority and the Iowa Finance Authority provided insight on the economic climate and trends in Iowa, as well as the State’s focus on workforce attraction. She said, "Iowa is committed to creating a culture where families can thrive and are reaching outside the state to attract new residents. It is promoting tourism and investing in broadband, housing and placemaking initiatives to build a state and communities where people want live."

Register for our March 25 Legislative Event Series: Transportation & Infrastructure and gain insights on plans and projects in the works for our region and learn how they fit into the Chamber's 2022 Regional Advocacy Priorities, which you helped shape. Featured speakers will include Jeff Nelson, CEO/Managing Director, MetroLINK and Chair, American Public Transportation Association and Ben Leischner, Executive Director, Quad Cities International Airport. In addition, U.S. Representative Cheri Bustos will provide a special virtual message.