IVCA Provides Updates for State Legislative Issues – 11/23/22
Illinois Venture Capital Association Illinois Legislative Report
David Stricklin / Stricklin & Associates
Wednesday, November 23, 2022IVCA PARTNERSHIP BILL A WORK IN PROGRESS
IVCA continues to engage policy makers on the merits of our bill (SB 2430 PARTNERSHIP DEFINITION) to update the definition of an investment partnership. The bill passed the Senate unanimously but has been held in the House. We are working assiduously to overcome objections in the House with an eye toward moving the bill or including it in an omnibus package during the “lame duck” legislative session in early January.
GOVERNOR ISSUES RAINY DAY FORECAST
A report on the five year forecast for Illinois revenue and economic activity was used by Governor JB Pritzker to get out in front of the budget debate for the next legislative session.
BUDGET FORECAST
The governor asserted the report shows Illinois is on sound fiscal footing yet suggested putting more into the “Rainy Day” fund and using any additional surplus to pay off outstanding bonds and repay the federal government for $1.4B in unemployment trust fund borrowing.
Legislators who of course have their own ideas about spending or savings priorities were polite but non-committal towards the governor’s initial proposal.
ILLINOIS REPUBLICANS ELECT NEW LEADERS
The Republican legislative caucuses in 2023 will have two new leaders. Senate Republicans elected Sen. John Curran as their new leader Sen. Curran and House Republicans turned to Rep. Tony McCombie Rep. McCombie who will be the first woman to lead House Republicans.
REPUBLICAN TRANSITION
Curran and McCombie are evaluating the results of the 2022 election which cemented Democratic control of the statewide offices and resulted in an even larger majority in the House. Senate Republicans picked up a seat in a Metro East district. (see pg 2)
The Republican leaders face a balancing act between primary voters who prefer more conservative candidates and a statewide electorate which rejected the conservative Republican candidate for governor. Another equation to solve is whether to cooperate with majority Democrats and achieve some results, perhaps around the edges or too small to be noticed or remain staunchly opposed to what the Democrats propose and hope the public sentiment moves their way.
MCCOMBIE OUTLOOK
CURRAN OUTLOOK
IVCA has a good working relationship with both new Republican leaders who are known to us as thoughtful, hard-working legislators. Their Democratic counterparts have so far been cordial and welcoming and willing to work across the aisle – of course that remains to be seen when it comes to resolving actual policy differences or moving major pieces of legislation. For now, they’re all saying the right things.
VETO SESSION NEXT WEEK
Legislators return to Springfield next week for the second week of the annual Veto Session. Work continues on revisions to the criminal justice reform bills which were the source of considerable heat during the election season.
SAFE-T ACT OVERVIEW 1SAFE-T ACT OVERVIEW 2
As mentioned the 102nd (current) General Assembly convenes in the Capitol one final time during the early days of January 2023 to finish any outstanding business prior to the 103rd General Assembly being sworn in at Noon on January 11.
Legend has it of whirlwind deals in the final hour to raise taxes or take other action which a legislator who had to face the voters again might not otherwise take – the “Lame Duck” legislator who could provide a vote on a controversial subject on the way out the door. So far, we’re not expecting to see that in January 2023.