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OVERVIEW
The past two weeks have included the usual unpredictability that goes with the end of every General Assembly session.  All the large issues were negotiated, discussed, renegotiated, and kicked around and around.  As the end came closer, the pressure rose on the issues.  This generally leads to compromise, which was seen on the budget, conceal carry, and a few other issues.
 
However, the continuing pressure to reform the State's pension systems did not bring about changes.  After several different versions in each chamber, the General Assembly adjourned without placing a reform package on the Governor's desk.  Details of the pension bills and activities related are included below.
 
The next round of action will be focused on the Governor, as he considers the many items that have been sent to his desk for review and action.  Once the Governor receives a bill, he has 60 calendar days to take action.
 
The biggest question now is will the General Assembly return before their scheduled fall veto session on Oct. 22?
 
STATE BUDGET
In the end, there was little fanfare regarding the State budget when compared to the other end of session issues.  After many hours of hearings across hundreds of appropriation items, most budget lines are very similar to the levels they were last year.  There were adjustments, especially since the State had to use more of its General Revenue Funds to fund pension payments, with some of those reductions coming in the education budget area.
 
Agriculture Related Programs
The Illinois Department of Agriculture's (IDOA) approved Fiscal Year 14 (FY 14) budget is very similar to last year with funding for most programs nearly flat.  The approved budget would provide the Department $99.7 million in total appropriations, including funds from the General Revenue Fund (GRF), Other State Funds, and Federal Funds.  The total budget of $99.7 represents a $1.2 million increase in funding.  $750,000 of the additional funds were appropriated to a program dealing with emerald ash borer damage to trees and other landscaping materials and $500,000 was appropriated for IDOA's initial regulation responsibilities included in the medical marijuana legislation. 
 
The following are major agricultural related budget line items and their proposed levels for the FY 2014 budget:

Education Funding
The elementary and secondary education funding will remain at current levels.  The General State Aid formula will be prorated at 89%, which translates into an estimated foundation level of $5,720 per student.  This differed from the Governor's proposed budget.  If the Governor's proposed budget, with an overall $300 million reduction of education funding, would have been implemented, it would have reduced the General State Aid formula to 82%.  There were reductions to other categorical programs like alternative schools, which will be cut by $239,000, drivers education which will be reduced by $2.5 million and several others for an additional $4.25 million.
 
FARMLAND ASSESSMENT IN "OMNIBUS BILL"
The House Revenue committee took action yesterday and approved a massive amendment with numerous items that included language, proposed by the Illinois Dept. of Revenue, to adjust the Farmland Assessment Law.  Many of the items included in the "omnibus bill" had been included in other bills or had informational hearings by the House Revenue Committee over the past several months.  The Farmland Assessment law had two specific subject matter hearings in order to hear testimony on the issue.
 
SB 20, as amended by a 372 page amendment, includes language to limit the value changes of all Farmland Productivity Index (PI) soils to 10% of Illinois' median cropland soil PI.  At the request of the Chairperson of the House Revenue Committee, Rep. Bradley, language creating a $5 discount to the 2015 certified value was added.
 
The impact of this change would allow 2015 Certified Values of cropland increase up to 10% of the PI 111's 2014 Certified Value.  The 2014 Certified Value for a PI 111 is $203.33.  An increase of 10% in the certified value would be $20.33.  With the discount added in the legislation, this would then translate into a maximum increase in all PI certified values of $15.33 for 2015.  This change would impact the 2015 assessed values for taxes payable in 2016 and is a one year discount only.
 
The proposed amendment is intended to bring farmland assessed values in line with the original intent of the Farmland Assessment Law and allow the statutory formula to be more effective in determining the income potential of all farmland.  The 10% cap on individual PI soils implemented in the 1980's is artificially keeping the value on lower PI soils from increasing to the actual productivity levels where they should be assessed.  The proposed change in the legislation would maintain the integrity of the Farmland Assessment Law so it will continue to be an effective implementation of an income approach to determining the assessed value of farmland.
 
The other provisions in the legislation include:

• Creating an Enterprise Zone for a fertilizer plant that is looking to locate near Tuscola, Illinois.
• Making changes to the general Enterprise Zone law to clarify the steps and requirements of enterprise zones.
• Creating the Brownfields and Intermodal Promotional Act to provide an incremental income tax attributable to newemployees of businesses located in the area created.
• Changing a Grundy County Tax Increment Financing district by changing the agreements needed.
• Allows municipalities to designate a facility that operates for the benefit of multiple local governments portions of the buildings to be exempt from property taxes.
• Creating the East St. Louis River Edge Zone which is a new income tax Tax Increment Finance (TIF) District.
• Requiring that underground storage tank owners and operators to enter into a Project Labor Agreement to receive funds from the Underground Storage Tank Fund for remediation.  The Tank Fund will receive an annual transfer of funds from State sales taxes to make sure adequate funds are available to fund remediation projects.
• Changing the Metropolitan Pier and Exposition Authority, better known as McPier and Navy Pier, to allow them to build a new arena for DePaul University using TIF dollars from Chicago.  It will also allow McPier to construct a new hotel and make other improvements at Navy Pier.
• Creating Public-Private Agreements for development of South Suburban Airport.  This authorizes the Illinois Department of Transportation to enter into public-private agreements to develop, finance, construct, manage, and operate and maintain a new airport in Will County.  The new airport authority will be able to obtain land by gift, donation, purchase, or condemnation.  The bill also allows the authority to use quick take eminent domain powers for land in the original foot print of the airport only after the Federal Aviation Administration provides grant funds to fund the airport authority.  The Department of Transportation may enter into interim agreements with contractors that involve property acquisition, engineering and environmental analysis, but is not authorized to conduct construction work.
• Allowing the Rosemont Convention Center to use $5 million of annual distribution from the incentive fund for the purpose of paying debt service.  This was requested since DePaul University Athletics will be leaving the Rosemont Convention Center and moving to McPier once construction is completed.
• Extending the Midwest Redevelopment TIF District in the City of Chicago.
 
SB 20 (Rep. Bradley/President Cullerton) has been approved by the House with 81 yes, 35 no, and 1 present vote.  The Senate approved the bill with 38 yes, 17 nos, and 2 present votes.  It will now be sent to the Governor for his consideration.
 
PENSION REFORM BATTLE
The difficult path to pension reform continued this week.  SB 1, which had passed the House previously, failed during a vote in the Senate, receiving only 16 yes votes.  SB 1 was considered a more aggressive pension reform package, reportedly saving the State more than $180 billion over the life of the changes. The Senate had previously passed SB 2404, a pension reform package that would offer State employees and teachers a choice of benefits.  SB 2404 reportedly would save the State much less than SB 1 and was supported by the We Are One Coalition which represents public employee and teacher unions.  The House did not take up SB 2404 for a vote.  
 
The House did address a portion of the pension cost shift concept that has been discussed previously. Currently, the State pays the entire employer contribution amount for university employees and teachers.  SB 1687 would transition the employer costs of pensions for State universities and community colleges from the State back to the universities and community colleges.  The State universities and the community colleges negotiated to reach the solution offered in SB 1687.   The proponents of the pension cost shift feel that this will bring more accountability to the process by combining pension plans with salary negotiations.  They also feel that the accountability will also help curb the trend to raise certain salaries in the final years of an employee's tenure.  
 
SB 1687 did not include a cost shift for the employer costs of teacher pensions for local school districts.  School officials reported they were asked to negotiate on this issue for local school districts, but no compromise was reached.  The responsibility of local school employee pension costs remains with the State of Illinois.  SB 1687 was called for a vote in the Senate and failed with a vote of 21 yes, 33 no, and 5 present votes.
 
At the adjournment of both chambers, no comprehensive pension reform passed both chambers of the General Assembly.  It is uncertain what the next steps will be for pension reform.
 
Senate Bill 1 failed in the Senate with 16 yes votes, 42 no votes.  SB 2404 was held in House Rules committee.  SB 1687 passed the House with 60 yes votes, 55 no votes, and 2 present votes.  It failed in the Senate on a vote of 21 yes, 33 no, and 5 present votes  Illinois Farm Bureau supports SB 1 and has no position on SB 2404.
 
CONCEALED CARRY - HB 183 (REP. PHELPS/SEN. FORBY)
Compromise legislation agreed to in both the House and Senate means Illinois will join the 49 other states that allow concealed carry of a firearm.  Last week, legislation emerged in the House that authorized concealed carry of a firearm.  The bill, sponsored by Rep. Brandon Phelps, created an appropriate license process along with some limitations on where a firearm could be carried for sensitive areas such as courts, schools, and other locations.  The bill also included a clause that preempted home rule units of government from any regulation of guns.  This meant that any gun regulation was the exclusive responsibility of the State.  SB 2193, which included these concepts, passed the House with 85 yes votes and was supported by IFB.
 
However, SB 2193 ran into problems in the Senate.  The home rule preemption included in SB 2193 was seen by some Senators as removing too much ability for home rule units of government to implement their own ordinances on some gun issues.  Some Senators also expressed concerns that SB 2193 would allow a license holder to carry a gun into an establishment that sold less than 50% of its total receipts in alcohol.  They preferred not allowing a firearm to be carried into an establishment that sold any alcohol.  SB 2193 was called for a vote in the Senate Executive Committee, but these concerns were too much to overcome and it failed to pass the committee.
 
A second concealed carry bill, HB 183 offered by Sen. Kwame Raoul, was then considered in the Senate Executive Committee.  It was similar to SB 2193, but changed the home rule preemption language so that it made only concealed carry of a firearm the exclusive responsibility of the State, while other gun regulations could be implemented by home rule units of government.  It also addressed the concerns of Senators who felt guns should not be carried anywhere that alcohol is sold.  It also made some changes to the penalties for unlawful carrying of a concealed firearm.  HB 183 passed the Senate Executive Committee, but it became clear during testimony on the bill that it was unlikely to pass the House.  
 
The result of these actions led to final negotiations between the Senate and House leaders on this issue on compromise legislation.  The legislation surfaced today and was added as another amendment to HB 183, offered by Sen. Gary Forby.  This legislation was very similar to the two previous versions discussed.  A significant change included in this version is that it creates a preemption of the regulation, licensing, possession, registration and transportation of handguns and ammunition for handguns and makes them the exclusive responsibility of the State of Illinois.  The bill continued to allow for licensees to carry a firearm into an establishment that sells up to 50% of its receipts in alcohol.   It also states that ordinances already in place imposing regulations or restrictions on licensees of handguns and ammunition for handguns inconsistent with the Act are invalid in their applications to licensees.  HB 183, with this new amendment, passed the Senate on a vote of 45 yes, 12 no, and 1 present vote.
 
The General Assembly faced a potential deadline for acting on concealed carry legislation this session.  A federal appellate court decision in December required Illinois lawmakers to pass legislation on the concealed carry issue by June 9th or existing Illinois carry laws would have been found unconstitutional.
Illinois Farm Bureau policy supports the creation of a process for the concealed carry of a firearm.  The compromise legislation included in HB 183, as amended, creates an appropriate process for granting a license to carry a concealed firearm as called for in IFB policy.  HB 183 passed the Senate with 45 yes votes, 12 no votes, and 1 present.  It passed the House with 89 yes votes and 29 no votes.  It will be sent to the Governor for consideration.  IFB supports HB 183, as amended.
 
HYDRAULIC FRACTURING - SB 1715 (REP. BRADLEY/SEN. FRERICHS)
Legislation dealing with hydraulic fracturing passed both chambers and will now be sent to the Governor for his consideration.  The legislation includes the most protective regulations for high volume horizontal hydraulic fracturing anywhere in the nation.  Among the regulations are well construction and casing standards, setback requirements, water testing requirements, and waste management procedures.  Protections for surface landowners are also included in the bill, with specific requirements for the repair of land following drilling and following the useful life of the well.  The bill includes a "severance" tax on the oil and gas extraction.  The tax will be assessed on the oil that is collected from wells at 3% on the total value of oil in the first two years of the life of the well.  In subsequent years the tax will be between 3% and 6% based on a sliding scale related to the production of the well.  If a well produces less than 15 barrels of oil a month, a tax will not be applied.  A tax credit was also created that reduces the amount of the severance tax paid by working interest owners by .25% for wells where more than half of employees are Illinois workers paid at least the prevailing wage.  This solution was supported by both the oil and gas industry and the unions as an appropriate way to encourage the hiring of Illinois workers for the jobs associated with hydraulic fracturing.
 
With the long negotiation process on hydraulic fracturing legislation now complete, the exploration of energy resources in parts of Illinois will now occur with appropriate regulations for the protections of land and water resources.  Throughout the negotiation process, Illinois Farm Bureau continued to call for protections and requirements in the legislation that are outlined by the organization's grassroots policy established on hydraulic fracturing.  SB 1715 passed the House with a vote of 108 yes votes and 9 no votes and the Senate with a vote of 52 yes, 3 no, and 4 present votes.  It will now be sent to the Governor for his consideration.  IFB supports SB 715.
 
SAME SEX MARRIAGE LEGISLATION - SB 10 (SEN. STEANS/REP. GREG HARRIS)
SB 10, which authorizes marriage between individuals of the same sex, continues to be on Second Reading.  While proponents continued to push for the measure, the bill was not called for a vote in the House.  The sponsor has indicated he will continue to work on the measure with the intent of possibly calling the bill during the fall veto session.   SB 10 was held on Second Reading in the House.  IFB is opposed to SB 10.
 
PRIORITY ISSUES
Minimum Wage - SB 68 (Sen. Lightford)
No action took place on increasing the minimum wage this session.  Sen. Lightford, the sponsor of SB 68, has stated that she intends to continue to work on increasing the minimum wage.  Discussions on the topic may continue during the summer months.  IFB continues to oppose any effort to eliminate the overtime exemption for agricultural employers or any increase in the minimum wage, as called for in IFB policy.  SB 68 was held in the Senate Executive Committee.  IFB opposes SB 68.
 
Wind Energy Facility Construction - SB 1469 (Sen. Sullivan)
Progress stalled on SB 1469 with no opportunity for its passage. The bill would require an operator of a commercial wind energy facility to enter into an agricultural impact mitigation agreement with the Department of Agriculture prior to construction.  It also requires the filing of a deconstruction plan, prepared by an independent third party, detailing the cost of deconstruction per turbine. The Illinois Dept. of Agriculture would then review the decommissioning plans and ensure that sufficient financial securities are in place to assure decommissioning can occur if needed.  SB 1469 was held on Second Reading in the Senate.  SB 1469 is an initiative of IFB and is supported.
 
Permanent Road Closures and Weight Postings - HB 2367 (Rep. Rosenthal)
Rep. Rosenthal's bill states that highway commissioners cannot permanently close, vacate, or reduce the weight limit on any road or portion thereof without the written approval of themselves, the county superintendent of highways, and the elected board associated with that road district. This bill is a legislative priority of IFB.  HB 2367 was held in the Transportation: Regulations, Roads & Bridges Committee. The Highway commissioners, Township officials, Illinois Department of Transportation, and the County Highway Engineers are all adamantly opposed.  IFB supports HB 2367.
 
ANIMAL ISSUES
Egg Products Violations - HB 2783 HFA #2 (Rep. Sacia)
As originally drafted, HB 2783 would have made anyone who sells eggs to someone who resells the eggs without a license from the Dept. of Agriculture subject to fines.  IFB opposed the bill as originally drafted because it would have required that egg farmers police their customers and verify that they were licensed to resell the eggs.  It would have also made the egg farmers subject to penalties based on the actions of a different party.  Negotiations among the Dept. of Agriculture, IFB, and egg farmers have led to an agreement on an amendment that will require the Dept. of Agriculture to inform egg farmers if they are selling to an unlicensed reseller.  HB 2783 HFA #2 has passed the House of Representatives with 98 yes and 0 no votes. It passed the Senate with 52 yes and 0 no votes. This will be sent to the Governor for his consideration. IFB had no position on HB 2783 as amended.
 
Dog Tethering - HB 83 (Rep. Burke/Sen. Holmes)
Rep. Burke's bill sets certain requirements that must be met in order for a dog to be tethered outdoors.  Among the provisions are that a log chain cannot be used to tether a dog.  The sponsor agreed to amend the bill so that it matched language that IFB and the Illinois Pork Producers negotiated with animal care groups during a past legislative session.  HB 83 has passed the House of Representatives with 78 yes votes and 38 no votes. It passed the Senate with 43 yes and 9 no votes. This bill will now be sent to the Governor for his consideration. IFB had no position on HB 83 as amended.
 
TRANSPORTATION ISSUES
Increased Speed Limits -SB 2356 (Sen. Oberweis/Rep. Costello)
SB 2356 would increase the speed limit on rural interstates outside of the counties of Cook, DuPage, Kane, Lake, Madison, McHenry, St. Clair, and Will Counties to 70 mph.  It would also lower the limit for excessive speeding violations from 30 mph over the speed limit to 26 mph over the speed limit to maintain the overall speed where excessive speed violations would occur.  SB 2356 has passed the House of Representatives with 85 yes votes and 30 no votes. It passed the Senate 41 yes, 6 no, and 1 present vote.  It will now be sent to the Governor for consideration. IFB supports HB 2573 and SB 2356.
 
Inspection Fine -SB 1294 (Sen. McCann/Rep. Moffitt)
SB 1294 reduces the fine for not having a semi-annual certificate of safety on a second division vehicle.  The legislation limits the fine to a petty offense with a fine between $95 and $250, unless the offense occurred in conjunction with a vehicle accident.  SB 1294 has passed the Senate with 54 yes votes and 0 no votes. It passed the House with 91 yes and 26 no votes.  It will now be sent to the Governor for consideration. IFB supports SB 1294.
 
FOOD AND LABELING
Genetically Engineered Food Labeling - SB 1666 (Sen. Koehler) & HB 3085 (Rep. Mell)
HB 1666 and HB 3085 are similar initiatives.  They would require labeling of any foods containing "genetically engineered" ingredients.  This labeling initiative would create a negative perception of biotechnology crops.
 
The sponsor of the legislation has announced that there will be three hearings on labeling of foods with GMO ingredients this summer.  The first is scheduled for June 20.  IFB is working with a coalition of organizations to provide information in opposition to GMO labeling.  SB 1666 was re-referred to the Senate Assignments Committee.  HB 3085 was re-referred to the House Rules Committee.  IFB opposes both SB 1666 and HB 3085.  
 
Eat Local Buy Illinois Day - HB 1272 SFA #1 (Rep. Yingling/Sen. Koehler)
HB 1272 designates the first Saturday of each month as Eat Local, Buy Illinois Products Day to promote local food initiatives, Illinois agribusiness, and to encourage residents to re-invest in the
local economy. The Department of Agriculture's Illinois Product Logo Program shall assist in increasing awareness and sales of Illinois food and agribusiness products. HB 1272 SFA #1 has passed the House of Representatives with 103 yes and 6 no votes. It passed the Senate with 57 yes and 0 no votes.  It will be sent to the Governor for his consideration. IFB supports HB 1272.
 
ENERGY ISSUES
Cooperatives Owning Biogas Systems - HB 1070 (Rep. Costello/Sen. Koehler)
HB 1070 allows cooperatives that own and operate agriculture-based biogas (anaerobic digester) systems to organize as a non-profit.  The activities of the cooperative may include the marketing and sale of biogas system products including but not limited to methane gas, electricity, and compost. This legislation was derived from a potential pilot project for a cooperative to establish a methane digester biogas system in Clinton County.  HB 1070 has passed the House of Representatives with a vote of 109 yes and 0 no votes. It passed the Senate 56 yes votes and 0 no votes and will be sent to the Governor for his consideration. IFB supports HB 1070.
 
 
ADDITIONAL ISSUES
Wheat Development Program - HB 2709 (Rep. Rosenthal/Sen. Sullivan)
This bill is an initiative of the Illinois Wheat Association and amends the Wheat Development Act.  It makes changes to the appointment of a program committee whose members are nominated by an association representing wheat producers.  It states that the total assessment levied on wheat may be, rather than shall be, up to 1.5 cents per bushel as established by the temporary program committee.  It also changes the timeline for the filing of a refund by a farmer.  It states the refund shall be payable if the application has been made to the board within 90 days, rather than 60 days.  HB 2709 has passed the House of Representatives with 108 yes and 0 no votes. It passed the Senate 51 yes and 0 no votes. This bill will be sent to the Governor for his consideration. IFB supports HB 2709.
 
Rural Composting - HB 3319 SFA #1 (Rep. Halbrook/Sen. Koehler)
HB 3319 amends the Environmental Protection Act.  It authorizes a person operating an on-farm landscape composting facility to accept crop residue, agricultural plant residue, plant derived animal bedding free of manure, and up to 10% of compositing additives necessary to maintain proper composting conditions.  It also allows an on-farm landscape composting facility to be located closer than ¼ of a mile from the nearest residence, other than the residence located on the facility, if a county has approved an ordinance allowing a lesser distance and there are not more than 10 non-farm residences within ½ mile from the facility on the date of application.   HB 3319 has passed the House of Representatives with 114 yes votes and 0 no votes. It has passed the Senate 55 yes votes and 0 no votes and will be sent to the Governor for his consideration. IFB has no position on HB 3319.
 
Recreational Land Use - SB 1042 (Rep. Williams)
This bill amends the Recreational Use of Land and Water Areas Act.  It codifies that liability coverage would be provided to landowners who permit the general public access to their land for recreational purposes.  It does not impact the liability coverage for private landowners who invite individuals onto their land for hunting or shooting activities.   SB 1042 passed the House with 117 yes votes and 0 no votes.  It passed the Senate with 58 yes votes and 0 no votes.  It will be sent to the Governor for consideration.  IFB has no position on SB 1042.
 
Fire Protection Open Burning - SB 1417 (Sen. Noland)
Sen. Noland's bill amends the Fire Protection District Act. It would allow a fire chief of any fire protection district to fix, charge, and collect fees (associated with a fire department) for extinguishing any open burning that is prohibited due to unfavorable atmospheric conditions. Amendment #2 limits the responsibility for the fees to the person causing or engaging in the prohibited burning activity, addressing a concern of IFB. SB 1417, SA #2 passed the Senate with 52 yes and 0 no votes.  It passed the House 115 yes and0 no votes.  It will now be sent to the Governor for consideration.  IFB has no position on SB 1417 as amended.
 
VETO SESSION SCHEDULE
The House and Senate will return for their fall veto session October 22, 23, and 24 and November 5, 6, and 7.  During this time, the General Assembly will address bills vetoed by the Governor and a whole host of other issues.