GOVERNMENT AFFAIRS 

------------Report April 11, 2025

This Week in Illinois Session Update

The House and Senate were in Springfield for a full week of legislative activity with the upper chamber in for four days and the lower chamber in for five. For the first time this year, we saw significant floor action with over 500 bills passing out of both chambers. Relevant legislative activity is highlighted in the section below. 

Committee action took place throughout the week with most of the work surrounding bill amendments and subject matter testimony.

 Illinois Chamber Statement on Recent Changes in Federal Tariff Policy

The Illinois Chamber of Commerce represents businesses impacted by the recent federal trade policies across virtually every industry sector. The actions taken earlier today to suspend some of the recently implemented tariffs will provide important relief for businesses and workers throughout our state. 

The business community needs and deserves certainty to drive further investment. The Illinois Chamber urges our elected leaders to focus on permanent resolutions, like trade agreements, that spur real economic growth and job opportunities that benefit businesses and families throughout Illinois.

Floor Action of Note:

HB 35 AI in Health Insurance-Opposed passed the House 79-35-0. This bill creates the Artificial Intelligence Systems Use in Health Insurance Act. Provides that the Department of Insurance's regulatory oversight of health insurance coverage includes oversight of the use of AI systems or predictive models to make or support adverse consumer outcomes. Provides that the Department's authority in an investigation or market conduct action includes review regarding the development, implementation, and use of AI systems or predictive models and the outcomes from the use of those AI systems or predictive models. Provides that, when an adverse consumer outcome is an adverse determination regulated under the Managed Care Reform and Patient Rights Act, the individual with authority to override the AI systems and the determinations of the AI systems shall be a clinical peer as required and defined under that Act. Provides that an insurer authorized to do business in Illinois shall not issue an adverse consumer outcome about the denial, reduction, or termination of insurance plans or benefits that result solely from the use or application of any AI system or predictive model. Provides that any decision-making process for the denial, reduction, or termination of insurance plans or benefits that results from the use of AI systems or predictive models shall be meaningfully reviewed, under review procedures determined by Department rules, by an individual with the authority to override the AI systems and determinations. We remain opposed to the amendment due to concerns over the restrictive use of emerging technologies.

HB 226, Home Warranty/Fraud, passed the House 106-0-0. This bill amends the Consumer Fraud and Deceptive Business Practices Act. Provides that it is an unlawful practice for any company to send or cause to be sent to a person in the State a notice that a home warranty plan is expiring that includes a request for a one-time payment or subscription if the person does not have a current home warranty plan with the company.

HB 1085, Mental Health Coverage Parity -Opposed passed the House 72-33-0. As amended, the bill would require all health insurance plans, except for state plans, to cover mental and behavioral health services at the same rate as other medical needs coverage.

HB 1141, Anesthesia passed the House 107-0-0. This bill provides that a group or individual policy of accident and health insurance or managed care plan shall provide coverage for anesthesia services, regardless of the duration, for any procedure covered by the policy. Provides that an individual or group policy of accident and health insurance is prohibited from denying payment or reimbursement for anesthesia services solely because the duration of care exceeded a preset time limit.

HB 1158, MWRD Bonds, passed the House 72-30-0. This bill amends the Metropolitan Water Reclamation District Act. Provides that bonds, notes, or other evidences of indebtedness for specified purposes shall be issued from time to time only in amounts as may be required for such purposes but the amount of such obligations issued during any one budget year shall not exceed $250,000,000 (rather than $150,000,000) plus the amount of any obligations authorized by the Act to be issued during the 3 budget years next preceding the year of issuance but which were not issued.

HB 1189, Prevailing Wage Federal Projects, passed the House 82-28-1. This bill provides that the definition of "public works" includes all federal construction projects administered or controlled by a public body if the prevailing rate of wages is equal to or greater than the prevailing wage determination by the United States Secretary of Labor for the same locality for the same type of construction used to classify the federal construction project.

HB 1224 Contract Retainage-Support passed the House 79-35-0. As amended, this bill provides that Retainage may not be used as a substitute for good contract management, and the State agency may not withhold funds without cause. Provides that if the contractor or subcontractor has displayed unsatisfactory performance on previous State agency projects resulting in a low performance score or suspension of prequalification, the State agency may apply retainage from the beginning of the project. Provides that, notwithstanding any other provision of law, if a State agency has not withheld retainage from a payment to a contractor on a project, then that contractor may not withhold retainage from a payment to a subcontractor for the same project. Provides that, if a State agency has withheld retainage from a contractor under the Act, then the contractor may withhold retainage from a payment to a subcontractor, but only to the extent that the amount retained from payment to the contractor by the State agency is attributable to a failure on the part of the subcontractor to make satisfactory progress concerning the subcontractor's contractual obligations. This bill will be amended in the Senate to exempt IDOT projects.

HB 1225, Best Consumer Price, passed the House 76-29-0. This bill creates the Best Customer Price Act. Provides that a public institution of higher education or a State agency may require best customer pricing for any goods it procures. Provides that, if goods are to be purchased by the State from a supplier or reseller, the supplier or reseller shall attest that the price is the best customer price. Provides that the supplier or reseller shall include a provision in the letter of supply from the manufacturer that the supplier or reseller can secure the supply and quantity of goods to be purchased, and that the manufacturer has extended the same best customer pricing from the manufacturer to each of the suppliers or resellers registered with the State for the goods to be purchased. Provides that the provisions of the Act apply if a public institution of higher education or a State agency affirmatively requires best customer pricing for a particular procurement of goods.

HB 1234, Auto Insurance, passed the House 70-39-0. This bill provides that, by January 1, 2026, the Secretary of State shall conduct a study on the affordability and availability of statutorily mandated automobile insurance in the State. Provides that, when conducting the study, the Secretary of State may use data or academic studies conducted by other sources, solicit feedback and testimony from constituents and community leaders, consider any guidance, written or otherwise, provided by insurance industry experts based in the State, and consider statutes and regulations in other states and national trends. Provides that the study shall include, but shall not be limited to, the use of zip codes, credit scores, and age in rate making and whether the specific factor results in inequitable rates being assessed to certain populations. The Chamber was opposed to the underlying bill but did not take a position on the bill as passed the House.

HB 1278, VESSA, passed the House 110-0-0. This bill provides that an employer shall not retaliate against an employee or deprive an employee of employer-issued equipment because the employee used employer-issued equipment to record domestic violence, sexual violence, gender violence, or any other crime of violence committed against the employee or a family or household member of the employee. Provides that an employer shall grant an employee access to any photographs, voice or video recordings, sound recordings, or any other digital documents or communications stored on an employer-issued device relating to domestic violence, sexual violence, gender violence, or any other crime of violence committed against the employee or a family or household member of the employee. 

HB 1305, EPA Filing Fees, passed the House 76-40-0. This bill amends the Environmental Protection Act. Provides that the filing fees for specified petitions shall be $250 (rather than $75).

HB 1431, Facility Fee-Neutral, passed the House 103-0-0. This bill provides that if a hospital charges a facility fee for outpatient services, separate and distinct from a professional fee, then the hospital shall develop a policy to inform patients as soon as reasonably practicable that they may be subject to a facility fee. Provides that the policy shall include, but not be limited to, the method the facility will use to inform patients that they may be charged a facility fee; the services and operating expenses generally covered by facility fees; the reason for charging a facility fee on the patient or patient's health plan; and contact information to allow the patient to request more information. The Chamber is neutral with the amendment.

HB 1598 Surgical Techs-Opposed passed the House 73-35-0. This bill provides that each surgical technologist hired or contracted by a health care facility on or after January 1, 2028 shall meet specified educational, certification, or experiential requirements. Provides that health care facilities located in a Health Professional Shortage Area or Medically Underserved Area, as determined by the federal government, shall be exempt as provided but shall have a hiring preference for surgical technologists who graduated from nationally accredited surgical technology programs and are certified through the National Board of Surgical Technology and Surgical Assisting or the National Center for Competency Testing.

HB 1600 Plastic Foodware passed the House 75-39-0. This bill creates the Single-Use Plastic Foodware Reduction Act. Provides that a third-party food delivery platform or third-party online ordering platform must allow consumers to request single-use foodware when ordering food or beverages from a restaurant through the platform. Prohibits restaurants using a third-party food delivery platform or third-party online ordering platform from providing single-use foodware unless specifically requested by the consumer. 

HB 1616, Organ Donor Leave, passed the House 70-34-0. This bill provides that a participating employee or part-time employee (rather than an employee) may use up to 10 days of leave in any 12 months to serve as an organ donor. Provides that, for a part-time employee using leave to serve as an organ donor, the employer shall calculate the daily average pay the part-time employee received during his or her previous 2 months of employment and compensate the part-time employee in the amount of the daily average pay for the leave days used.

HB 1697, Telecommunicator CPR, passed the House 105-0-0. This bill requires an emergency medical dispatcher to complete a training course in telecommunicator cardiopulmonary resuscitation (T-CPR) by rules adopted by the Illinois Department of Public Health. Requires each emergency medical dispatcher to provide prearrival instructions and telecommunicator cardiopulmonary resuscitation (T-CPR) in compliance with protocols selected and approved by the system's EMS medical director and approved by the Department.

HB 1859, Community College Instructors/AI, passed the House 87-17-1. This bill provides that the board of trustees of a community college district shall require the primary instructor of a course to meet specified qualifications outlined in the Illinois Administrative Code and any other applicable rules adopted by the Illinois Community College Board. Provides that a course may not, instead of a primary instructor, use artificial intelligence or a generative artificial intelligence program.

HB 2338, Warranty Disclosure, passed the House 116-0-0. This bill amends the Motor Vehicle Retail Installment Sales Act. Provides that a seller that sells or offers for sale a third-party motor vehicle warranty shall, upon the request of the consumer, provide to the consumer: (1) a copy of the third-party motor vehicle warranty contract; and (2) a written disclosure provided by the third-party motor vehicle warranty provider summarizing all costs that the consumer may be responsible for under the third-party motor vehicle warranty.

HB 2391, Wastewater Industrial Use-Support, passed the House 113-0-0. This bill amends the Environmental Protection Act. A provision regarding wastewater reuse provides that, notwithstanding any other provision of law, the use of treated municipal wastewater from a publicly owned treatment works is authorized for irrigation and industrial use (rather than only irrigation) when conducted by the permit issued under certain provisions of the Act.

HB 2394, Weight Limit Exemption-Support, passed the House 75-37-0. This bill provides that a vehicle or combination of vehicles operated by an engine fueled wholly or partially by an electric battery or hydrogen fuel cell electric fueling system may exceed the posted weight limits by up to 2,000 pounds.

HB 2461, Speed Camera Revenue passed the House 112-0-0. This bill establishes that a municipality that operates an automated speed enforcement system shall set aside 3% of the net proceeds from each system that generates more than $500,000 in revenue for the respective school district or park district in the safety zone in which the automated speed enforcement system is located. Provides that the set aside proceeds may be allocated for any purpose designated by the school district or park district.

HB 2464, Neonatal Care passed the House 84-30-0. This bill provides that if a beneficiary, insured, or enrollee receives neonatal intensive care from a nonparticipating provider or nonparticipating facility, a health insurance issuer shall ensure that the beneficiary, insured, or enrollee shall incur no greater out-of-pocket costs than he or she would have incurred with a participating provider or a participating facility, as long as the nonparticipating provider or nonparticipating facility bills the neonatal intensive care as emergency services.

HB 2516, PFAS Product Ban-Opposed passed the House 71-39-0. This bill Provides that, beginning January 1, 2032, a person may not sell, offer for sale, or distribute for sale in this State the following products if the product contains intentionally added PFAS: (1) cookware, (2) cosmetics, (3) dental floss, (4) juvenile products, (5) menstrual products, (6) intimate apparel, or (7) food packaging or food contact products. 

HB 2790, Municipal Business Regulation passed the House 113-0-0. This bill provides that the corporate authorities of a municipality may license and regulate all commercial operations within the municipality's boundaries, whether for profit or not for profit, but may not impose any tax upon its operations except as otherwise authorized by law. Limits the definition of "commercial operations" to exclude agritourism operations, agricultural properties, agribusinesses, agritourism activities, agricultural experiences, and pollution control facilities.

HB 2857, Work Zone Speed Control, passed the House 115-0-0. This bill creates the Highway Work Zone Safety Speed Control Program for the purpose of enforcing the speed limits established for construction or maintenance speed zones. Requires the Illinois State Police, in conjunction with the Department of Transportation and the Illinois State Toll Highway Authority, to set up and operate automated traffic control systems in highway construction and maintenance speed zones to detect violations of posted work zone speed limits. Allows the Department of Transportation or the Illinois State Police to employ automated traffic control system operators to operate automated traffic control systems in construction or maintenance speed zones.

HB 2863 Utility Acquisition Requirements-Opposed passed the House 113-0-0. This bill, among other things, requires mailing a notice 30 days prior to the public meeting to customers who will be affected by the acquisition. Provides that the notice shall be sent to the customers in the same manner as the customers' monthly bills, either by mail or electronically. Provides that the notice shall be mailed or electronically delivered with the customers' bills, on a page separate from the bill itself, and in no less than 12-point font. Provides that the notice shall include (i) information about the public meeting being held prior to the acquisition, (ii) information on the public body that will make the decision regarding the sale of the water or sewer utility, and (iii) a comparison of the current rate being charged by the water or sewer utility being acquired, the rate that is expected to be charged immediately following the acquisition, and the effect on rates if the acquisition does not proceed. The Sponsor committed to continue working with coalition partners to further amend the bill.

HB 2952, Changing Stations, passed the House 75-38-0. Concerning baby changing stations, this bill provides that hotels and lodging facilities; public and private schools and educational institutions; small entertainment venues, including movie theaters and bowling alleys; healthcare facilities with public restrooms; transit public parks with restroom facilities; and standalone public parks with restroom facilities are subject to the provisions. Provides that a retail store of more than 3,000 square feet (rather than 5,000 square feet) that contains a restroom open to the public is subject to the provisions. Provides that a restaurant that has an occupancy of at least 40 persons (rather than 60 persons), among other criteria, is subject to the provisions of the Act.

HB 2955, PFAS Action Plan, passed the House 75-40-0. This bill creates the PFAS Wastewater Citizen Protection Committee for specific purposes. Provides that the Committee shall submit a PFAS Action Plan to the Governor's Office, the General Assembly, and the Environmental Protection Agency no later than one year after the effective date of the Act. Provides that the Committee shall continue to periodically meet and shall annually update the PFAS Action Plan and submit annual reports with certain requirements. 

HB 2978, Neonatal Care Leave, passed the House 91-7-0. This bill creates the Family Neonatal Intensive Care Leave Act. Provides that an employee of an employer with 16 or more employees and no more than 50 employees shall be entitled to use a maximum of 10 days of unpaid neonatal intensive care leave while any child of the employee is a patient in a neonatal intensive care unit. Provides that an employee of an employer with 51 or more employees shall be entitled to use 20 days of unpaid neonatal intensive care leave while a child of the employee is a patient in a neonatal intensive care unit. Provides that, upon the conclusion of leave taken under the Act, an employee shall be reinstated to his or her former position or a substantially equivalent one with no loss of benefits held or accrued before taking leave.

HB 3005, Mechanic Goals passed the House 81-33-0. This bill requires, by August 1 of each calendar year, the Department of Transportation to make a report in writing to the Governor and the General Assembly, stating in detail the Department's efforts in the prior fiscal year to fill open mechanics positions. Requires the Department to establish and maintain a goal of filling at least 85% of all authorized and budgeted mechanic positions within the Department in each fiscal year. Requires the General Assembly to review the report and may request additional information or hold hearings regarding the Department's staffing levels, recruitment strategies, and efforts to meet the 85% workforce goal.

HB 3177, Design-Build Expansion passed the House 115-0-0. This bill provides that the Department of Transportation or the Illinois State Toll Highway Authority may use the design-build project delivery method for transportation facilities if the capital costs for transportation facilities delivered utilizing the design-build project delivery method or Construction Manager/General Contractor project delivery method or Alternative Technical Concepts in a design-bid-build project delivery method do not for transportation facilities delivered by the Department, exceed $500,000,000 (rather than $400 million) of contracts awarded on an annual basis (rather than during the Department's multi-year highway improvement program for any 5-year period). Provides that the Department may adjust the applicable monetary threshold on a yearly basis to reflect inflationary costs in highway construction as measured by the United States Department of Transportation in the National Highway Construction Cost Index or other similar index.  

HB 3200, Unemployment Insurance Changes passed the House 85-30-0. This bill, among other things, specifies that provisions concerning voluntary leaving shall not apply to an individual who, prior to voluntarily leaving, for claims dated December 28, 2025 through December 24, 2028, is deemed to be unable to perform the individual's work due to a mental health disability by a licensed and practicing psychiatrist and the employer is unable to accommodate the individual. Provides that on or before January 1, 2030, the Department of Employment Security shall file a report with the General Assembly setting forth the estimated fiscal impact of specified provisions on the Unemployment Insurance Trust Fund. 

HB 3438  Life Cycle Cost passed the House 107-0-0. This bill provides that the Department of Transportation shall develop and implement a life-cycle cost analysis for each new construction, reconstruction, or replacement road project, except for State rehabilitation and preservation projects, under its jurisdiction for which the total pavement costs exceed $500,000.

HB 3564, Landlord Fees, passed the House 61-43-3. This bill provides that a landlord, lessor, sub-lessor, or grantor may charge a fee to reimburse costs associated with conducting a background check if the cumulative fee for a check is no more than the actual cost of the background check or $20, whichever is less. Allows this fee if the potential tenant provides a copy of a background check conducted within the past 30 days. Prohibits a landlord from imposing a move-in fee. Unless provided by law elsewhere, a landlord may not demand any charge for the processing, reviewing, or accepting of an application or demand any other payment, fee, or charge before or at the beginning of the tenancy.

HB 3574, Procurement Data Residency passed the House 114-1-0. This bill provides that any contract that provides for the storage of any State data shall include a requirement that the State data must be processed, stored, and disposed of within the territory of the United States. Provides that, if the State data was stored within the State of Illinois but outside of any qualified area, then the amount of the earned credit shall be 2% of the contract's value for storage of the State data. Provides that, if the State data was stored within the State of Illinois and all or part of the State data was stored within a qualified area, then the amount of the earned credit shall be 4% of the contract's value for storage of the State data. 

HB 3646, DoIT AI Task Force-Support passed the House 111-0-0. This bill provides that the Generative AI and Natural Language Processing Task Force may hold public meetings in a hybrid format, with both virtual and in-person options to attend, as frequently as necessary to carry out its duties and shall convene and meet at the call of the co-chairpersons. Provides that the Task Force shall file periodic reports with the Governor and the General Assembly covering the Task Force's investigation into generative artificial intelligence software and natural language processing software and the Task Force's responsibilities.

HB 3799, Insurance Climate Risk Disclosure-Opposed passed the House 75-38-0. This bill provides that specified notices of cancellation of insurance must be mailed at least 30 days prior to the effective date of cancellation to the named insured if the effective date of cancellation is within the first 60 days of coverage. Provides that, after the coverage has been effective for 61 days or more, all notices must be mailed at least 60 days prior to the effective date of cancellation. Makes conforming changes. Creates the Climate Risk Disclosure Article. Provides that the Article applies to all companies licensed in Illinois under Classes 2 and 3 that write $100,000,000 or more annually in premiums. Allows the monetary threshold to be altered by rule. ll with the following changes: Provides that a data call does not need a warrant or a final report. Imposes penalties for failure to comply with a data call or a specified written order. Provides that the Director of Insurance may issue a data call to any company to collect any information within that company or its affiliate's control. 

SB 69, Insurance Coverage Riding Therapy, passed the Senate 52-0-2. This bill provides that a group or individual policy of accident and health insurance that is amended, delivered, issued, or renewed after January 1, 2027, shall provide coverage for medically necessary services that incorporate equine movement as part of a therapeutic intervention.

SB 1230, CDB Reports passed the Senate 56-0-0. This bill provides that, on or before July 1, 2026, and every year thereafter, the Capital Development Board shall submit a report to the General Assembly and the Governor concerning all planned and ongoing projects constructed by or under the supervision of the Board.

SB 1723 CCS/Aquifer-Opposed passed the Senate 55-0-0. This bill provides that no person shall conduct a carbon sequestration activity within a sequestration facility that overlies, underlies, or passes through a sole-source aquifer. Creates the Mahomet Aquifer Advisory Study Commission. Provides that the University of Illinois shall provide administrative assistance to the Commission. Provides that, subject to appropriation, the Prairie Research Institute shall submit reports to the Commission. Provides that the Mahomet Aquifer Study Commission shall submit a final report to the Governor and General Assembly by no later than December 31, 2031.

SB 1797, Digital Assets passed the Senate 39-17-0. This bill provides that the Department of Financial and Professional Regulation shall regulate digital asset business activity in the State. Provides that "digital asset business activity" does not include (1) peer-to-peer exchanges or transfers of digital assets, (2) decentralized exchanges facilitating peer-to-peer exchanges or transfers solely through use of a computer program or a transaction protocol that is intended to automatically execute, control, or document events and actions, and (3) the development and dissemination of software in and of itself.

SB 1827, Design Build, passed the Senate 55-0-0. This bill, among other things, specifies that fire protection districts are authorized to use a design-build contracting method for construction if a competitive process consistent with the purpose of this Section is used in connection with the selection of the design-builder. 

SB 1939, Vehicle Franchise Sales passed the Senate 55-0-0. Among other things, this bill provides that a manufacturer, common entity, or distributor, other than a manufacturer or distributor that was lawfully licensed to sell new motor vehicles directly to customers in this State before January 1, 2022, shall not own or operate a dealership or directly sell new vehicles in the State.

SB 2044, Web Signature passed the Senate 56-0-0. This bill provides that a county, township, or municipality may allow a person to sign any document with a web-based signature if the county, township, or municipality uses a secure web-based platform.

SB 2164, Unpaid Wages-Opposed passed the Senate 37-19-0. This bill fails to provide constructive notices when an employee brings a claim against the employer. The department would now take claims directly to courts without notice.

SB 2339, E-Verify-Neutral passed the Senate 35-21-0. This bill, as amended, provides that an employer enrolled in an Employment Eligibility Verification System, including the E-Verify program, shall not impose work authorization verification or re-verification requirements greater than those required by the Employment Eligibility Verification System. Provides that, if an employer receives notification from any federal agency or other outside third party not responsible for the enforcement of immigration law of a discrepancy as it relates to an employee's individual taxpayer identification number or other identifying documents, guarantees specified rights and protections to the employee.Provides that nothing in the Act shall be construed to prohibit an employer from enrolling in any Electronic Employment Verification System, including the E-Verify program, whether voluntarily or as required or permitted by federal law (rather than as required or permitted by federal law). Provides that no penalties shall be imposed under the Act if the employer or prospective employer: (1) acts in good faith reliance on guidance issued by the Illinois Department of Labor or the federal Department of Homeland Security; or (2) makes a bona fide administrative error that does not affect an employee or prospective employee's employment or pay.