The Rostrum
By LESTER W. BRANN JR., President
Illinois State Chamber of Commerce

Business scores points

NOW that the dust is settling from the 81st General Assembly, it becomes clear that business fared well. While victories of the magnitude of workers' compensation reform weren't scored in every arena, employers were generally able to hold the line in areas such as environment and energy, government regulations, and other labor issues. Small business scored a few points. And the one issue most avoided was business tax relief.

Workers' compensation revisions received the most attention of all labor bills introduced this year. The seemingly impossible became a reality when, in addition to business groups joining forces, both houses of the Illinois legislature — as well as both parties — united in eleventh-hour negotiations to produce meaningful improvements in the Workers' Compensation Act.

For the past five years, business has actively sought to restore equity between our state's WC program and those of other industrial states. The General Assembly took a giant stride toward that goal with passage of a comprehensive package of amendments to the WC law that will stabilize WC costs and open the door to long-awaited reforms in the WC field. It is the first step in putting Illinois back into competition with other industrial states.

Unemployment insurance changes came as no surprise and in the end, the governor had the choice between two UI agreed bills. Both are designed to hold down rising UI costs, with key provisions to bar workers from collecting benefits if they voluntarily quit their jobs without good cause attributable to their employers. These changes, along with those in the 1979 "agreed bill," have put the Illinois law on equal footing with other major industrial states.

Earlier this year, the legislature wisely killed the "industrial hostage" bill, strongly opposed by the business community, which would have required many employers to give one year's notice before relocating or terminating operations. But, the bill could be re-introduced next year.

Another ISCC-opposed bill, H.B. 2705, sponsored by Rep. Jim McPike (D., Alton), to create a competitive state workers' compensation fund failed to pass. The Illinois State Chamber believes that a state fund would not provide programs comparable to those of self-insurers or private carriers. In addition, the Chamber questions the intrusion by government into the private enterprise sector.

Legislation was passed granting manufacturers an investment tax credit on new equipment that will clearly provide competitive incentives for business to invest in Illinois. Other reforms, however, in the state's new corporate personal property replacement tax will have to wait. Provisions such as placing limits on replacement tax revenues and eliminating from the tax foreign sources of income and sales to foreign destinations will have to be addressed in future sessions, depending on the extent of growth of the replacement tax compared to its predecessor. A favorable decision by the Illinois Supreme Court — which has accepted jurisdiction in a case that involves the switch of tax-exempt personal property to taxable real estate — could eliminate the need for future legislation.

On environmental issues, business groups could have faced several disasters. The ISCC, however, working with other business and environmental concerns, managed to dispose of the hazardous aspects of numerous bills regulating industrial waste, sulfur dioxide emissions and clean air permits. The result of this cooperative effort was legislation that will help preserve Illinois' environment, encourage the use of Illinois coal and make is easier for business to comply with various pollution standards during the next several years.

Legislation dealing with the proposed motor vehicle inspection and maintenance program failed to pass the General Assembly this year. H.B. 2051, sponsored by Rep. Theodore Meyer (R., Chicago), would have required the state to establish a program for the mandatory emission inspection of vehicles registered in Illinois' S.B. 1818, sponsored by Sen. Charles Chew (D., Chicago) and Rep. Larry Bullock (D., Chicago), would have created a commission to investigate the need for establishing such a program.

Legislation that would have allowed banks to establish multi-bank holding companies within specific banking regions failed to receive the approval of the Senate Finance Committee. A version of ISCC-supported H.B. 1299 will probably reappear next year.

All things considered, business emerged from this session with more gains than losses. Perhaps with more changes next year, the state's business climate will be improved further so that Illinois has an advantage over other industrial states and is regarded as a leader, rather than a state begging industry to come.

Meanwhile, there's more — much more — than a presidential election to be decided in Illinois on November 4. One-third of the Illinois Senate and all of the House of Representatives will be elected. This new General Assembly will decide the vitally important political issue of reapportionment — a question that could have far-reaching effects on the state for more than a decade. And with critical and costly issues such as workers' compensation, unemployment insurance and taxes at stake, business people just can't afford to sit on their hands in this fall's campaign.

September 1980/Illinois Issues/35