IVCA Provides Updates for State Legislative Issues – 05/03/2023

Illinois Venture Capital Association Illinois Legislative Report
David Stricklin / Stricklin & Associates
Wednesday, May 3, 2023

IVCA BILL PARTNERSHIP

IVCA leaders and members are actively negotiating with the Illinois Department of Revenue on proposed language to better define an “investment partnership.” IDOR has moved away from its original proposals which have been included in two bills which have passed the Senate but have not passed the House and is looking to the IVCA adopt a definition which contains elements of what’s being discussed at the MultiState Tax Commission. Suffice to say it’s complicated, technical, and has far reaching consequences. We will continue to update you on whether an agreement can be reached or if there’s too much ambiguity to pass legislation during the current session which is scheduled to end May 19.

COMED 4 GUILTY

A trial watched closely by anyone, and everyone involved in Illinois government, politics and lobbying was concluded yesterday when a jury found each of the COMED 4 guilty.

* WTTW | ‘ComEd Four’ Found Guilty of Conspiring to Bribe Former Illinois House Speaker Michael Madigan: When Madigan said jump, MacArthur said, the defendants asked “how high.” Prosecutors argued the four did this through a number of means, including paying Madigan allies as ComEd subcontractors, who in turn would actually do little or no work for the utility company. They also allegedly offered a lucrative contract to a law firm run by Madigan ally Victor Reyes and fought to get Juan Ochoa appointed to the ComEd board of directors at the former speaker’s behest.

* BGA | “ComEd Four” Trial Underscores Need for Strengthened Ethics Reforms: In response to today’s guilty verdict in the federal corruption of former ComEd CEO Anne Pramaggiore, lobbyist Mike McClain, former ComEd lobbyist John Hooker, and former lobbyist and City Club president Jay Hooker, Better Government Association President David Greising said the following: “The jury’s guilty verdict on all counts strikes a blow against the culture of corruption that for years has robbed Illinois residents of their right to an honest and accountable government. It is a flat rejection of the claim that the systematic effort to corruptly influence House Speaker Mike Madigan was just ‘politics as usual.’ The jury spoke for all Illinoisans in demanding better from government officials, as well as from businesses and lobbyists who seek to influence policies that affect all Illinoisans, not just the connected, powerful and wealthy among us.”

* Tribune | Illinois lawmakers react to ‘ComEd Four’ convictions and actions that led to them: ‘Shockingly gluttonous and unhealthy to democracy’: “How many indictments is too many? How many more court rulings do we need to make unethical behavior stop?” state House Republican Leader Tony McCombie of Savanna said at a GOP news conference following the verdicts. “There’s definitely some folks on the other side of the aisle that are honest, transparent and work in good faith. Now whether or not they can get the rest of the Democratic caucus to follow their lead will be the question that only time will tell.”

LEGISLATURE SEES ADJOURNMENT ON THE HORIZON

The General Assembly is in session this week and will either be in session or working behind the scenes to put a budget together in time for adjournment May 19. The last two budgets have been buoyed by strong tax revenue collections. The new fiscal year begins July 1. The legislature and governor have recently been pressured by the exploding costs of a state program to provide healthcare to undocumented residents of the state:

HEALTHCARE COST BLOWS HOLE IN BUDGET

Advocates for hospitals, human services, and K-12 education are among the largest groups asking for more resources from the state, requests totaling in the billions of dollars when there may be only a few hundred million to go around. The governor has especially been touting the stability which has come to the state’s finances and the growing account balance of the Rainy Day Fund. Will legislators decide it’s raining, and the fund needs to be tapped? Will there be enough revenue to cover even some of the big requests for hospitals and schools? Lots of big decisions being made as you are reading this. Our next column will have updates and results.