IVCA Provides Updates for State Legislative Issues – 04/13/22
Illinois Venture Capital Association Illinois Legislative Report
David Stricklin / Stricklin & Associates
Wednesday, April 13, 2022
IVCA BILL ON PARTNERSHIPS ON STANDBY
Legislation to clarify the definition of an investment partnership did not pass during the Spring Session of the Illinois General Assembly.
To review, IVCA introduced SB 2430 to more accurately define a partnership. This followed audit findings from the Illinois Department of Revenue which classified investment funds and partnerships as a “trade or business.” IVCA proposed the definition should apply to both existing cases and on a going forward basis SB 2430 HOUSE AMENDMENT #1.
The Illinois House specifically declined to proceed with the retrospective language and the bill did not move forward, nor was the language included in any of the omnibus bills which were approved. IVCA will continue to explain to policy makers the importance of making this revision to state law and will look to the Veto Session in November as the next opportunity to make progress.
BUDGET, TAX BREAKS, HEADLINE END OF SESSION
Working overnight through Friday April 8 into Saturday April 9, the Illinois General Assembly and Governor JB Pritzker agreed to a budget package for Fiscal Year 23 which begins July 1. The legislature is normally in session through May 31. This year due to new districts maps facing every legislator seeking re-election, the session was shortened to April 8, with the primary election moving from March to June.
Democrats fully utilized the states favorable revenue collections to fund a $1.8B tax relief measure, put $500 million additional on top of the scheduled pension plan contribution, establish a $1B rainy day fund, and a host of other measures which the Governor and legislative Democrats will run on in November.
TAX CUT DETAILS WITH QUOTESRECAP WITH QUOTES
CRIME AND PUBLIC SAFETY
During the budget and tax discussions Democrats also sought to respond to what Republicans believe will be their Achilles Heel come November – crime and public safety. In early 2021 the legislature approved a series of criminal justice reform measures which proponents argued would make progress toward a more fair, reformative system. At the same time, downtown Chicago and other areas of the state have experienced noticeable incidents of crime and a spate of carjackings.
Legislative Democrats and the Governor sought to blunt charges of being “soft on crime” by passing a slate of changes to state law concerning organized retail crime and carjacking as the highlights:
Illinois Republicans are holding a spirited primary contest to see who will be nominated to face Governor Pritzker in November. Republicans, primarily candidate Richard Irvin, the Mayor of Aurora, are making crime, public safety, parole decisions, and support for law enforcement, a daily line of attack.
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