IVCA Provides Updates for State Legislative Issues – 04/10/2024
Illinois Venture Capital Association Illinois Legislative Report
David Stricklin / Stricklin & Associates
Wednesday, April 10, 2024
QIP RULES EXPECTED SOON
IVCA members invested years of time and expertise in passing legislation in 2023 to clarify the definition of a qualified investment partnership. The legislation went into effect at the beginning of 2024, and the Illinois Department of Revenue has issued a first version of the proposed rules which will guide its application of the law.
Once again IVCA members and their tax and legal teams have responded with valuable insight and helpful critiques of the initial IDOR filing. The department is evaluating the responses from IVCA and other stakeholders and will soon file a “second notice” of proposed rulemaking, to which IVCA will again take the opportunity to respond.
A primer on the rulemaking process is attached below. While certainly it’s in the weeds of public policy, getting this right is important and we will continue to rely on the IVCA experts to do just that.
GOVERNOR HEIGHTENS CAMPAIGN ON INSURANCE REFORM
Illinois State Senator Ann Gillespie, a Democrat from Arlington Heights, is on every short list of most effective legislators in Springfield. A health care attorney, she has established a stellar reputation for managing complex issues and bringing tough negotiations to a conclusion. Governor JB Pritzker has made insurance reform a top priority for this legislative session, and yesterday announced he was appointing Sen. Gillespie to the role of Director of the Department of Insurance. This leaves a void for someone to fill in the Senate Democratic Caucus on health care policy, and it means the local political powers will have to appoint someone to fill the Senate seat.
GILLESPIE GETS INSURANCE MANDATE
The announcement came in the middle of a legislative session in which Pritzker is proposing sweeping changes in state regulation of the health insurance industry. His proposed Health Care Protection Act calls for giving the department authority to approve or reject rate increases in the large-group insurance market.
LEGISLATURE MOVES AHEAD ON BILLS WHILE BUDGET LOOOMS
The Illinois General Assembly meets through Friday this week, as legislators meet all day in committee hearings to work on legislation they’ve introduced this session making small yet usually meaningful changes to state law on topics ranging from agriculture to zoning.
State agencies are making appearances before the appropriations committees justifying their FY 25 budget requests as the momentum in the building begins to shift towards getting a budget done and adjourning by mid-May. One of the agencies spending the most money and touching the most lives in Illinois is the Illinois Department of Healthcare and Family Services, the agency which manages the Medicaid program. HFS has a Senate budget hearing today.
The governor has publicly emphasized his interest in continuing to earn favorable reviews from Wall Street on the state’s improving fiscal condition. Legislators in an election year are always seeking to find a project or two which they can bring home to address a local concern. Finding the balance seems possible with the state’s revenue projections coming in at manageable levels: