Legislative Action
By DIANE ROSS, ALDEN SOLOVY and CELESTE QUINN

Allegations of bribery amid the issues

IT WAS the proposed Equal Rights Amendment that stole the limelight in May. The vote was postponed in the House when sponsors knew they were two votes short of the 107 needed for passage — and when charges of attempted bribery were made. There was intensive lobbying pro and con, but the bribery charges suddenly put the eight-year-old ERA issue in the middle of a possible scandal. Allegations were made that money was offered to buy "yes" votes, but exactly what had happened or had not happened was not clear. The House put off its own investigation as the Sangamon County state's attorney, the Department of Law Enforcement and the FBI investigated. As a result, ERA appears to be in limbo, with a grand jury announcement expected in June.

By mid-May, the General Assembly had taken little action on the major business issues of worker's compensation (WC) and unemployment insurance (UI). On tax relief, the House had begun to move. Following its April action to approve the removal of the second penny of the state sales tax on food and nonprescription drugs, the House approved bills in May to index the income tax and to exempt interest from savings accounts. (The House had killed Gov. James R. Thompson's tax package, including his continued call for property tax limits; and it was unlikely any of his proposals would survive in the Senate.) The legislature had taken little action by mid-May on the year's major energy issues: Illinois coal and nuclear waste.

Among new issues, the Senate moved quickly to declare the nonabortive killing of a fetus to be murder. Among the perennial issues, a bipartisan House-Senate coalition failed to move a constitutional amendment proposing merit selection of judges despite a move designed to outmaneuver Chicago Democrats.

By early June, all House bills had moved to the Senate and vice versa. Action reported here focuses on bills on this year's major issues (see "Legislative Action," February 1980) that passed in their house of origin by May 16.

Income Tax

One Republican bill to tie the standard $1,000 income tax exemption to inflation passed the House easily, although a similar Senate bill (S.B. 1945) died in committee. The governor is expected to veto the indexing bill if it reaches his desk. H.B. 3092, sponsored by Rep. Donald L. Totten (R., Hoffman Estates), passed 131-22 May 14.

All three House bills to exempt interest from savings accounts at banks, savings and loans, and credit unions, sailed through the House. Thompson may prefer something more in line with the federal interest exemption; each of these bills would go further. H.B. 2847, sponsored by Rep. Roman J. Kosinski (D., Chicago), which caps the exemption at $1,000, passed 123-13 April 22; H.B. 2860, sponsored by Rep. Ralph C. Capparelli (D., Chicago), with a $1,500 cap, passed 105-37 May 7; and H.B. 2892, sponsored by Rep. Mary Lou Sumner (R., Wyoming), with a $5,000 cap, passed 107-35 May 7. One Senate bill (S.B. 1473, sponsored by Sen. Lynn Martin, R., Rockford), which is patterned after the federal interest exemption, was still pending.

Other significant income tax action included a bill giving school districts the option, via referendum, to switch from property taxes to income taxes for local revenue. H.B. 447, a 1979 holdover bill sponsored by Rep. Jim Reilly (R., Jacksonville), passed narrowly 91-56 April 24.

In the Senate, the only tax action by May 16, was on a holdover bill which allows renters to deduct up to 30 percent of rent from gross income before taxes. Last year, S.B. 1239, sponsored by Sen. John A. D'Arco (D., Chicago), had passed the Senate 32-21 and narrowly made it through the House 89-74. It was reconsidered in the House this year and passed comfortably, 101-46 April 24.

While Thompson's $10 income tax dividend (H.B. 2971) was killed in the early days of the session, the Democratic alternative (H.B. 3123), offering a $10 credit, fared little better, dying in the House Revenue Committee (see "Legislative Action," June).

Property Tax

There was action on senior citizens' tax relief, but surprisingly, it came on the homestead exemption, rather than the circuit breaker. The legislature had increased the homestead exemption from $1,500 to $3,000 during a special session last winter. Nevertheless, the House readily passed a holdover bill, H.B. 262, to increase the homestead exemption to $5,000, which Republicans had tried but failed to do last winter. H.B. 262, sponsored by Rep. Daniel M. Pierce (D., Highland Park), passed 139-21 April 23. Another homestead bill, H.B. 2967, would extend the homestead exemption to those who lease but pay property taxes as part of the agreement. Sponsored by Rep. Samuel M. McGrew (D., Galesburg), H.B. 2967 passed without objection 147-0 May 15.

Sales Tax

As predicted, the legislature did move on phasing out the sales tax on farm machinery. H.B. 2921, sponsored by Rep. Bruce Richmond (D., Murphysboro), which proposes a two-year phaseout beginning January 1, 1981, passed 133-17 May 7. A similar bill (H.B. 2969) died in committee. Earlier, the House had rejected a three-and-a-half-year phaseout proposed in S.B. 860, sponsored by Sen. Gene Johns (D., Marion). Johns' bill had passed the Senate last year 35-5, but it failed in the House 78-11 this April 23, and an attempt to reconsider also failed. A fourth alternative of a four-year phaseout was still possible under S.B. 1476, sponsored by Sen. John W. Maitland (R., Bloomington).

H.B. 3141, that would have provided a sales tax break as an incentive for soil conservation, died in committee.

Other Taxes

In other tax action, the House surprisingly passed a bill to repeal the state portion of the inheritance tax; sponsors pointed to endorsements by the Taxpayers' Federation of Illinois as well as petitions from 13,000 citizens. H.B. 1387, sponsored by Rep. Penny Pullen (R., Park Ridge), passed overwhelmingly, 114-36 April 24. The House also approved a bill which would bring local tax assessors under closer review

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by the Illinois Department of Revenue. H.B. 1136, sponsored by Rep. Cal Skinner (R., Crystal Lake), passed 109-17 April 25.

Unemployment Insurance, Worker's Comp

The first major action on worker's compensation (WC) and unemployment insurance (UI) this session was in the Senate where Senate President Philip J. Rock (D., Chicago) and Minority Leader David C. Shapiro (R., Amboy) are co-sponsors of a bipartisan package (S.B. 1726, 1739 and 1740). The Senate unanimously passed S.B. 1726, 55-0 May 15; the other two bills were pending. S.B. 1726 is a UI bill and incorporates all the major provisions agreed to this year by management and labor, including the crucial restrictions on voluntary quits. But S.B. 1726 goes a little further than the "agreed" provision on voluntary quits, closing loopholes to give management a slight edge.

The ERA brouhaha took center stage in the House, but by May 16 the House had moved the bill with the major UI management/labor agreed provisions to passage stage. The UI vehicle bill is H.B. 2824, sponsored by Rep. Thaddeus S. Lechowicz (D., Chicago) with Minority Leader George H. Ryan (R., Kankakee) listed as a co-sponsor. It was amended to include the voluntary quit provisions, also in S.B. 1726, but H.B. 2824 would not close as many loopholes S.B. 1726.

Management, apparently, prefers the Senate version, but is bound by the agreed bill process to give priority to the House version. Labor, for its part, is worried about the slight edge the Senate version gives management.

Both bills, however, include other provisions agreed to by labor and management. They would set benefits at not more than 50 percent of the worker's prior average weekly wage, but not less than 15 percent of the statewide average weekly wage. And a worker with a nonworking spouse would be able to file claims covering dependent(s) instead of spouse. Under both bills, management would no longer be required to prove workers are not actively looking for work or are not available for work when appealing claims. However, management still would have to have proof when the appeal is heard. And, management would have 30 days, not 14, to appeal. Both bills also shift the cost of UI benefits from the first to the second employer when a worker quits a second job, if the worker stays at the second job long enough to earn six times what his or her weekly benefits would have been.

A total breakdown in talks earlier this year killed any chances of a management/labor agreed bill on worker's compensation.

And the WC/UI bill packages supported by the Illinois State Chamber of Commerce (ISCC) died in Committee in both the House and Senate.

However, the Senate did pass a WC-related bill, S.B. 1541, sponsored by Sen. LeRoy W. Lemke (D., Chicago). The bill, which would extend WC to employees injured while riding in company-sanctioned car pools, passed 53-4 May 7.

Among other UI/WC measures in the House, two Democratic bills passed unanimously, and the chances looked good for two others. H.B. 3381, sponsored by Rep. Jim McPike (D., Alton), which would bar real estate salesmen, brokers and others who work on a commission from WC benefits, passed 146-0 May 7. H.B. 3250, sponsored by Rep. B.T. Donovan (D., Decatur), which would authorize the Illinois Industrial Commission to computerize WC statistics, passed 141-0 May8. Still pending was H.B. 3514, sponsored by House Speaker William A. Redmond (D., Bensenville), which would create an advisory board to the Illinois Industrial Commission. Also pending was H.B. 2705 (McPike), which would create a public fund for WC insurance as an alternative to coverage from private carriers.

Pensions

Surprisingly, other state pension systems did not push for a no-penalty early retirement benefit which the teachers won last year. And, there's virtually no chance any state pension system will receive the 1 percent increase they want in the post-retirement increment, which is now 3 percent annually for most systems.

However, the House unanimously approved an alternative bonus plan to increase the post-retirement benefits for teachers. The measure is expected to sail through the Senate. The bill (H.B. 1876) would provide an annual bonus for all teachers (Chicago, downstate and university), who retired before 1975. This is the group which has been hit the hardest by inflation, and the bonus would total $12 per year of teaching before retirement. To off-set the increased cost to the state, contributions to teacher pension funds would be in creased from 8 to 8 1/4 percent. Total cost to the state is estimated at $90 million. Sponsored by Rep. Vincent A. Birchler (D., Chester), the bill passed 164-0 May 7. Despite the obvious support for the teachers' bonus, there was no indication by mid-session that other state pensioners would receive a similar increase in benefits.

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Personnel

In personnel action, the House approved bills to increase health insurance and sick pay benefits. H.B. 426, sponsored by Rep. J.David Jones (R., Springfield), would increase from $7 to $14 the state's contribution toward dependent's health insurance. Although Jones' bill passed comfortably 100-40 May 6, it could face problems in the Senate, where a nearly identical bill (S.B. 1680, sponsored by Sen. John A. Davidson, R., Springfield), died in committee. Then again, Davidson's bill might have been sacrificed in favor of Jones' bill, which enjoys widespread support.

On sick pay, H.B. 3415, sponsored by Rep. Robert M. Terzich (D., Chicago), would exempt sick pay from social security deductions. It passed unanimously 135-0 May 8 and is expected to pass in the Senate.

Energy /Environment

The House passed two gasohol bills. The most significant is H.B. 3403, which would authorize the Institute of Natural Resources to coordinate research and development on alcohol fuels and serve as a clearinghouse for alcohol fuel programs. H.B. 3403, sponsored by Rep. Harlan Rigney (R., Freeport), passed 144-3 May 16. The other bill, H.B. 2920, sponsored by Rep. Michael Slape (D., Vandalia), would require retailers to accept credit cards for gasohol if they accept them for other purchases. It passed 117-20 May 7.

Elementary and Secondary Education

In the first school transportation action this session, the House passed a bill removing the current .20 percent ceiling on transportation fund tax levies. H.B. 3353, sponsored by Rep. Terry A. Steczo (D., Flossmoor), passed 144-0 May 13.

Despite the bills approved for Chicago schools during a special session in January, the House passed H.B. 2913, creating the Chicago Schools Study Commission. It is an initiative by blacks, who feel they are not adequately represented on the school board. The commission would study the feasibility of subdividing the current district into as many as 27 autonomous districts, and report to the legislature by September 1. The commission would include 12 legislators, 12 private citizens (all appointed by legislative leadership) and the state and Chicago school superintendents. Sponsored by Rep. Douglas Huff (D., Chicago), H.B. 2913 passed the House 118-17 May 7.

In the higher ed arena, H.B. 2104, sponsored by Rep. Glenn J. Schneider (D., Naperville), would give voting rights to the student member of the Illinois Board of Higher Education (IBHE). It squeaked through the House by one vote, 90-61, April 25. The bill had originally provided voting rights for all students sitting on state university governing boards. As amended, however, it would give the governor authority to appoint the IBHE student member from nominations by statewide mem-organizations.

Financial Institutions

Four financial institution bills, three of them holdovers from the 1979 session, cleared the House easily. The most significant, designed to ease the tight money market, would lift the state imposed ceiling on interest until December 31, 1981, from all licensed lenders, including banks, savings and loan associations, credit unions, as well as on revolving credit accounts. The ceilings are now 18 percent for financial institutions and 21.6 percent on revolving credit accounts. H.B. 3268, a bipartisan measure sponsored by House Speaker William A. Redmond (D., Bensenville) and Minority Leader George H. Ryan (R., Kankakee), passed the House 112-20 April 23. But the bill may face difficulty in the Senate, where a similar bipartisan measure (S.B. 1720) failed 27-18 May 15.

Another bill would limit state banks from charging more than 1 percent interest over the discount rate (the rate at which banks may borrow) on short-term loans (90-day commercial paper). H.B. 1563, sponsored by Rep. Ben Polk (R., Moline), passed the House 122-0 April 22.

H.B. 2318 would extend electronic banking, as approved in the 1979 session, to savings and loans. Sponsored by Rep. Lee A. Daniels (R., Elmhurst), it passed 116-2 April 22.

A variation of branch banking would be allowed by H.B. 1299, which passed the House 91-60 April 23. Sponsored by Rep. Jim McPike (D., Alton), it would permit banks to affiliate under common ownership through a multibank holding company, and would establish five holding company regions. A holding company could acquire banks only within the company's home region and one contiguous region; could not charter any new banks after the law takes effect; and could not acquire newly chartered banks until they are 10 years old.

Public Utilities

Public utilities action centered on fuel adjustments and shutoffs. The House passed one bill designed to encourage the use of Illinois coal by prohibiting utilities from including the cost of transporting coal when figuring fuel adjustment. H.B. 3284, sponsored by Rep. Vincent A. Birchler (D., Chester), passed overwhelmingly 148-1 May 14. One similar bill (H.B. 3393) died in committee, while three others (S.B. 1813, 1849, 1886) were still pending.

On shutoffs, a major bill failed while a minor one passed. H.B. 842, sponsored by Rep. William A. Marovitz (D., Chicago), which would ban December-through-May shutoffs by utilities regulated by the Illinois Commerce Commission, failed 47-72 April 25. However, H.B. 3205, sponsored by Rep. Wyvetter H. Younge (D., East St. Louis), which would prohibit utilities regulated by municipalities to shut off service during freezing temperatures, passed easily 108-34 May 14. A third shutoff bill, S.B. 1920, died in committee.

In other public utilities action, the House passed a holdover bill which bans telephone companies from charging for directory assistance calls when the number is not listed in the telephone book. H.B. 748, sponsored by Rep. William A. Marovitz (D., Chicago), passed 111-36 April 24.

Insurance

The most significant insurance action to date was the House's unanimous approval of a bill designed to crack the serious problem of arson-for-profit in cities. The issue has drawn increasing attention and support this session, and this arson bill (H.B. 3333) is expected to clear the Senate easily. The bill would revise coverage under policies of the Fair Access to Insurance Regulations (FAIR) Plan, primarily by requiring that a policyholder who receives payment for damages which cover replacement costs, use the money to rebuild the structure rather than pocket the cash, which is currently allowed. Sponsored by Rep. William A. Marovitz (D., Chicago), the bill passed 153-0 May 16.

The other most significant arson-for-profit legislation this session involves a bipartisan Senate package (S.B. 1990, 1991, 1992, 1993, 1994, and 1995), which was still pending.

On other insurance issues, the House passed a bill to regulate the disclosure of information to protect privacy, and the Senate is expected to follow suit. The insurance industry backed the bill (H.B. 3369) in an effort to avoid federal regulation. Sponsored by Rep. Elroy C. Sandquist (R., Chicago), the bill bypassed committee on a vote of 173-0 and passed the House 149-3 May 13. The House also passed H.B. 1839, sponsored by Rep.

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Douglas N. Kane (D., Springfield), to ban insurance companies from discriminating against the disabled; it passed 130-0 May 6. However, a two-bill package (H.B. 3390 and 3391, sponsored by Rep. Bernard E. Epton, R., Chicago), intended to bar insurance companies from ruling claims "medically unnecessary," died in committee at the pressure of health insurance companies.

Local Government

This year's efforts to abolish a number of special purpose taxing districts met with little success in the House. (Illinois has approximately 6,500 special taxing bodies — more than any other state.) Rep. Douglas N. Kane (D., Springfield) introduced a series of bills aimed at eliminating many of the districts and delegating their responsibilities to counties and townships. Only three bills, however, survived the committee process. H.B. 2528, to abolish public health districts, tuberculosis sanitarium districts and mosquito abatement districts flopped in the House 29-114 May 6. H.B. 2342, to ax the six surface water protection districts in the state, was approved 96-57 May 6. H.B. 2341 to eliminate cemetery districts, was still pending May 16.

Human Resources

In the area of human resources, the outlook for some health care legislation seemed bright at mid-session. H.B. 2227, which would establish a statewide Emergency Medical Services (EMS) program, passed the House easily 115-28 May 6. Sponsored by Rep. Jim Reilly (R., Jacksonville), the bill would require the Illinois Department of Public Health (IDPH) to set standards and license requirements for ambulances and conduct annual ambulance inspections. IDPH would also set qualifications for certification of emergency medical technicians.

Another ambulance measure, H.B. 3357, proposed by Rep. Harlan Rigney (R., Freeport), would create ambulance districts to ensure accessibility in emergencies; it passed the House 119-16 May 2.

In a related area, H.B. 3259, sponsored by Barbara Flynn Currie (D., Chicago), would require hospitals to post signs in their emergency rooms informing seriously injured or ill patients of their right to treatment regardless of their ability to pay; it was approved by the House 116-11 May 16.

H.B. 3179, which would allow cities and counties to issue revenue bonds to provide medical or dental clinics, passed the House 128-6 May 7. Sponsored by Rep. Richard H. Brummer (D., Effingham), H.B. 3179 could be a boon to smaller communities trying to recruit doctors and dentists.

On in-home care for the elderly, H.B. 2903, sponsored by Rep. John F. Dunn (D., Decatur), would require the Illinois Department on Aging to provide services to keep the elderly out of nursing homes. Dunn's bill won unanimous approval in the House 127-0 May 2.

Judiciary

The Senate quickly approved a bill to amend the criminal code to make the killing of a fetus, other than a legal abortion, murder. Fetal murder became an issue in the legislature following the Illinois Supreme Court decision in February. The ruling allowed a man to escape the death sentence for the double murder of a woman who was 8 1/2 months pregnant and the fetus which was "not born." The high court overturned the conviction of the murder of the fetus because Illinois has no law against the nonabortive killing of a fetus (see "Judicial Rulings," May). S.B. 1524, sponsored by Sen. George E. Sangmeister (D., Mokena), passed the Senate 48-4 April 28. The American Civil Liberties Union is lobbying against the fetal murder bills on constitutional grounds that the questions of fetal viability and fetal rights remain unresolved.

The Senate also passed S.B. 1564, which adds arson to the list of murder-involved felonies which carry the death penalty. Sponsored by Sen. Leonard F. Becker (R., Cicero), S.B. 1564 passed the Senate 57-0 May 7. The most significant arson legislation, however, is a five-bill package, which would combat arson-for-profit (see "Insurance" above).

Two bills creating the crime of aggravated battery of a child cleared the Senate, although similar legislation passed the Senate last year only to die in the House Judiciary II Committee. This year's bills would deny parole in child abuse cases unless the battery was committed by a parent, who would be granted parole in an effort to keep the family together. S.B. 1706 and 1707, sponsored by Sen. James H. Rupp (R., Decatur), passed the Senate 31-13 May 7 and 40-7 May 15, respectively. But these bills may again have trouble in the House since the bills' discriminatory parole provisions leave them open to charges of un-constitutionality.

The House killed a holdover bill decriminalizing marijuana by reducing, to some degree, the penalties for possession. H.B. 1192, sponsored by Rep. Elroy C. Sandquist (R., Chicago), failed 28-124 April 24.

The House passed H.B. 1329 which would define retaliation against sexually harrassed employees an unfair labor practice. H.B. 1329, sponsored by Rep. Barbara Flynn Currie (D., Chicago), passed 138-13 May 7.

A holdover bill designed to enforce child support payments passed the House 140-3 May 15. H.B. 24 would require payments be made to circuit court clerks and would grant state's attorneys automatic power to collect delinquent payments. Sponsored by Herbert V. Huskey (R., Oak Lawn), the bill does allow payments to still be made directly to the parent with custody — if both parents agree and if neither parent is on welfare. The legislation would also create the division of child support enforcement under the Administrative Offices of Illinois Courts.

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