IVCA Provides Updates for State Legislative Issues – 01/19/2022
Illinois Venture Capital Association Illinois Legislative Report
David Stricklin / Stricklin & Associates
Wednesday, January 19, 2022
“THE” REPUBLICAN CANDIDATE FOR GOVERNOR?
The slate of Republican candidates backed by hedge fund Billionaire Ken Griffin was finalized Monday when Aurora Mayor Richard Irvin announced his candidacy. Mayor Irvin has voted in Democratic primaries which may puzzle some Republican voters, and Illinois Democrats described his candidacy as Griffin-Rauner 2.0. Four other Republican candidates have announced previously. TRIBUNE story HERE
In a three-minute announcement video, Irvin says that after serving in the military, he went to law school and then to “become a hands-on prosecutor going on police raids, taking back one corner or apartment complex at a time. Putting gangbangers, drug dealers and wife beaters in prison.”
Crime and how to deal with it will be the #1 issue Republican candidates will press in their campaigns against Democrats in the November general elections.
Governor JB Pritzker put $90Million of his own money into his race and is prepared to spend whatever it takes to fund his re-election. The governor is so far campaigning on fiscal stability –vendors being paid on time, an improved credit rating — unglamorous, routine government blocking and tackling.
DEMMER GOES UP OR OUT FOR TREASURER
Of note to IVCA members as well is that Illinois House Republican Deputy Leader Tom Demmer announced he will run for Treasurer against Treasurer Mike Frerichs. The Treasurer’s office is central to IVCA members due to our relationship with the Technology Development Account / Illinois Growth and Innovation Fund. Based on the punches Demmer and Frerichs traded in the opening round, this will be a spirited match.
IVCA BILL ON TDA INTRODUCED
IVCA is working with legislative allies to advance a bill – HB 4364 HERE which would put in statute the investment and reporting requirements for the Technology Development Account negotiated with the office of Illinois Treasurer Mike Frerichs. We are working on a companion bill with identical language to be introduced in the Senate.
PARTNERSHIP BILL DISCUSSIONS PROGRESS
IVCA is in productive discussions with the Illinois Department of Revenue on legislative language to address an ongoing issue resulting from IDOR audit findings which classify some of our members as “a trade or business” rather than an investment partnership, creating adverse tax consequences for investors in Illinois funds. A bill to remedy this situation was passed in the Illinois Senate but has been on hold in the House pending further discussions with IDOR and the legislature. HERE
LEGISLATURE IN HOLDING PATTERN
The Omicron Variant is causing significant healthcare consequences across Illinois, with one of the less vital yet relevant consequences being the Illinois General Assembly getting off to a slow start this session. Originally envisioned as a front-loaded session which would adjourn April 8 and give legislators time to campaign in their new districts, Covid has adjusted that thinking and the legislature has met in person only once and very briefly so far in January, while routinely canceling online hearings which had been scheduled.
It appears now the session will begin in earnest on February 2, when Governor Pritzker submits his budget for the fiscal year which begins July 1. It is also likely the legislature may meet the April 8 date for adjournment as it relates to disposing of the thousands of bills which have been introduced this session, and after a brief hiatus, return to the Capitol in late May to pass budget bills.
Illinois House Speaker Chris Welch this week named four legislators to help him and retiring Majority Leader Greg Harris carry out the work of putting together a budget; Reps. Will Davis, Robyn Gabel, Mike Zalewski, and Lisa Hernandez. All four are veteran legislators with considerable knowledge in key subject areas such as K-12 education, health care, and state finances.