07/17/2008
House overrides a few cuts made by governor
After the governor cut almost $2 billion from the budget sent to him by the Illinois General Assembly, the Illinois House this week voted to restore about $480 million of those cuts leaving the rest to take effect.
Most of the restored dollars are earmarked for Medicaid providers, ensuring the payment cycle isn't further delayed.
The ongoing feud between chambers continues as Senate President Emil Jones said he will not call the Senate back to act on the $480 million in restored cuts unless the Speaker finds additional revenue sources to pay for them.
While the House voted on 33 different override motions to restore the $2 billion in cuts, only a handful had enough votes to pass. Also complicating matters is the fact that 27 House members did not make it to Springfield for session.
Right now, unless a miracle happens, both chambers are not expected to be back in Springfield for session until after the fall general election.
Illinois Department of Labor makes changes to rules on employee misclassification
As of Jan. 1, 2008, construction contractors in Illinois have been dealing with a new law on how to classify independent contractors. Initially, the Illinois Department of Labor issued a set of rules to allow a better understanding of how the new law would be enforced. Then, through what is called the "rules process," the Department then took into consideration the comments and suggestions of many groups, including the NFIB. The department has issued a revised set of rules that will become final and permanent.
Many of the revisions will help contractors better understand how and when someone is an employee or independent contractor.
The most significant changes are the following:
- In addition to defining a "bona fide corporation," the rules now also include a description of a "bona fide limited liability company (LLC);
- The department may investigate alleged violations for up to three years instead of five years;
- Contractors facing allegations will now have 30 calendar days, instead of 15, to provide any written information on the case to the department;
- A lengthy list of factors has now been given by the department to describe what it will look for when determining whether or not employer "controlled" the work of the individual performing services;
- Employers will be required to keep records on all individuals performing services for them for three years instead of five years (unless the records pertain to an ongoing investigation);
- Either party may seek review of the department's final determination by filing a request with the Director within 15 days of the issuance of the final determination.
See a copy of all changes to the rules.
Efforts to push autism mandate fail
Two separate attempts by both the Senate and the governor have failed to move the autism healthcare mandate to the governor's desk.
Last week, the Senate amended HB 415 with autism mandate language identical to SB 1900 and sent it to the House for another vote. And, the governor over the weekend used his amendatory veto power, albeit loosely, to add the autism language from SB 1900 to a bill that had made it to his desk – HB 4255. His action now requires HB 4255 to go back to the House to "accept" or "reject" his veto. It is unlikely any action will be taken on either bill.
For perspective, the autism mandate included in SB 1900 has stalled in the House because of the "Speaker's Amendment," which the speaker has been adding to all bills that may need to go through the "rules process" for additional work. The Senate refuses to pass any bill that has the "Speaker's Amendment," so the bill has been in limbo.
NFIB opposes the autism mandate because of cost. The mandate only applies to small and medium-sized businesses that don't self-insure and adds to the already heavy burden employers must pay in Illinois because of healthcare mandates. NFIB has requested that the bill be amended to make the mandate an "offer" allowing small businesses to determine if they want and can afford the cost of the coverage.
Important upcoming dates
Aug. 6, 2008: Joint Illinois/Iowa member meeting featuring Brad Close, NFIB director of Public Policy (House), Davenport, Iowa
Aug. 12, 2008: NFIB member meeting with Congressman Don Manzullo, Freeport
Aug. 12, 2008: NFIB member meeting with Congressman Don Manzullo, Rockford
Aug. 18, 2008: McHenry County Area Action Council meeting with Congressman Don Manzullo, Crystal Lake
If you would like more information on any of the above events, please call Mark Grant at 217-523-5471.
