April, 2013

HOUSE BILL 1227 – LIMITATION ON RETAINAGE IN CONSTRUCTION CONTRACTS

This bill states that under a construction contract, it is unlawful to withhold more than 5% retainage earned by contractors and subcontractors. IAR opposes this measure because it is government interference in the provisions of private contracts. As of March 23rd, this bill is being held in the House Judiciary Committee.

SENATE BILL 2375 – CRIMINAL PROPERTY MANAGEMENT ACT—EXTENSION TO NON-RESIDENTIAL PROPERTY

This bill seeks to amend the “Criminal Housing Management” provisions of the Criminal Code to expand the Act to include all types of property (now limited to residential property). Those provisions of the Criminal Code provide that criminal management occurs when a person having personal management or control of real property recklessly permits the physical condition of the property to become or remain in any condition which endangers the health or safety of any person. IAR is OPPOSED to the expansion of this statute, even though it is currently rarely used.  We believe there are serious implications to extending this to commercial property. The bill was advanced out of the Senate Criminal Law Committee with the sponsor’s pledge to work with IAR prior to advancing the bill on the Senate floor.

HOUSE BILL 197 – TIF PROCEEDS

This bill amends the Tax Increment Finance law to state that three years after a TIF is established, that portion of the property taxes levied on parcels in the TIF that is attributable to inflation (the CPI) shall be allocated to a school district located in the TIF. IAR and the Illinois Tax Increment Association now oppose this bill. Both groups feel that this proposal, if enacted, would reduce the effectiveness of TIFs as an economic development tool. The sponsor has chosen not to call the bill for a vote in the House.

HOUSE BILL 2764 – IDOT – REGULATION OF REAL ESTATE SIGNS

This bill amends the Highway Advertising Control Act; it has been identified as the bill that will carry changes to that section of the Act which deals with signs along Interstate highways that are not in a business district. The existing regulations of on-premise and real estate signs are very over-reaching. IAR SUPPORTS efforts to clarify the State law as it relates to federal law to regulate billboards. Further negotiations will continue in the Spring session on this bill.

HOUSE BILL 3277 – ILLINOIS INCOME TAX CREDIT FOR “BROWNFIELDS”

This 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 Department of Commerce and Economic Opportunity to obtain a tax credit against their income tax liability. IAR supports this legislation. It has been re-assigned to the House Rules Committee.

HOUSE BILL 2572 - LAND BANK PILOT PROGRAM, SOUTH SUBURBS

This bill, as introduced, creates the Local Government Stabilization Authority Act to essentially allow counties, municipalities or townships to create land banks to acquire, clean-up, demolish, rehabilitate, redevelop and sell vacant and abandoned housing. It appears to be the sponsor’s intent to enact a pilot program that is limited to townships located in House legislative districts #28 (Rep. Rita), #29 (Rep. Jones, the sponsor) and #30 (Rep. Will Davis). The language in the bill is very similar to the land bank pilot program ordinance recently passed in Cook County. IAR was NEUTRAL on the bill and plans to have further discussions with the sponsor. The IAR did provide testimony urging the Committee to ensure that the scope and duration of any such pilot program is narrowly drafted.   

SENATE BILL 1961 – STREAMLINING ASBESTOS REGULATION

Supported by IAR and several business groups, this bill moves regulation of Asbestos to the Illinois EPA from the Illinois Department of Public Health.

For more information, contact Mike Scobey of IAR Staff at mscobey@iar.org