LEGISLATIVE UPDATE: End of Session has been Gaveled in Springfield

May 30, 2023 Last Edit: June 5, 2025

LEGISLATIVE UPDATE: End of Session has been Gaveled in Springfield

The Illinois General Assembly passed a $50.4 billion budget and adjourned for the Spring at nearly 3:30 AM on Saturday, May 27 after 3 straight nights of activity after midnight. The Legislature had blown past a self-imposed May 19 adjournment deadline but completed its Constitutional duty several days before an actual May 31 deadline. The budget delay was caused by Democrat infighting over a program to provide taxpayer financed health insurance for undocumented immigrants. The program, first implemented in Illinois 2 years ago, during COVID, was estimated to cost approximately $240 million. However, the program has exploded and is nearly $900 million over budget, with the state was spending $1.1 billion this current fiscal year. Many legislators were not only refusing cuts to the out-of-control program, but they were also demanding an expansion to cover even more individuals. Ultimately, an agreement was reached to grant Governor Pritzker authority to limit costs under the program, and $550 million (about ½ of actual costs) was appropriated for the program. It is yet to be ascertained exactly how the Governor will restrict the program. Also included in the budget was a dramatic expansion of the Illinois Department of Insurance to review and approve or deny health insurance rates. Illinois has been viewed nationally as a strong and highly competitive insurance market due to the long tradition as a “file and use” state, whereby health insurance companies only needed to publicly disclose what their premium rates would be and how they were actuarially determined. This practice was believed to breed a highly competitive market for health insurance. Advocates believe that bureaucratic review of those rates will provide savings to consumers and small businesses. In addition, the Department of Insurance was expanded to create, in 2026, an Illinois state-based health insurance exchange, similar to the federal “Obamacare” exchange. Again, advocates believe that taking the existing health insurance products, taxing them, and replicating an existing program will make health insurance more affordable for consumers and small businesses. In an unfortunate extreme expansion of liability for small businesses, HB 219 passed to the Governor to provide punitive damages to in wrongful death cases. Illinois law currently provides punitive damages in personal injury cases. However, those damages were not previously available to families of victims that unfortunately perish. Trial Lawyers were extremely persuasive in arguing the discrepancy. HB219 passed the House 75-40-0 and the Senate 37-19-1. Finally, following a $17 Billion lawsuit award against White Castle, the Illinois Supreme Court called on the Legislature to reform and clarify the Biometric Information Privacy Act (BIPA). Business groups, including NFIB, have been calling for reforms to BIPA for years, and this crushing lawsuit award provided the opportunity to limit damages under the Act. However, despite ongoing negotiations and strong leadership by Senate President Pro Temp Cunningham, Trial Lawyers in Illinois were successful in preventing legislation that would limit employer liability under BIPA. Look for NFIB to potentially do a webinar with legal experts on the pitfalls of BIPA later this Summer. NFIB is hopeful that a resolution to BIPA liability can be reached prior to the Fall Veto Session scheduled for the last week of October and second week of November. Additional details of the Spring Legislative Session coming soon…

Topics:

Regulations

State:

Illinois

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