March 31, 2017
Big Week for Home Builders
Bill Ward, Executive Vice President, HBAI
Committee deadline in the Illinois House of Representatives is a big week for anyone who can be affected by Illinois State Government, and that’s pretty much everyone in Illinois. Here’s an update on some of the bills affecting the home construction and remodeling industry.
HB3826 (Fortner) is an HBAI initiative to end double taxation of new home sales by home rule municipalities. The bill prohibits home rules units from collecting a transfer tax when it has already assessed and collected impact fees on the new home. The bill passed out of committee on a unanimous roll call and is poised to pass the House of Representatives as soon as next week. The Illinois Association of Realtors has signed on in favor of the bill and we appreciate their support.
HB3751 (Moylan) would reverse who decides what assurances are made for the completion of public construction infrastructure that is eventually deeded to a local unit of government. For 20 years, developers have had the option of providing a cash bond, irrevocable letter of credit, or a surety bond with a rating set by the municipality. HBAI is vehemently opposed to HB3751 with the sponsor committing to work with HBAI on an amendment that would strike the imposition of cash bonds from the Act. HBAI remains opposed at this time and is joined in by the following groups: Associated General Contractors, Illinois Construction Industry Committee, and the Underground Contractors Association of Illinois.
HB2816 (Sente) would have mandated that all new construction contain 5% recycled materials. HBAI is opposed to this bill that would be the first law of its kind in the U.S. Proponents of the measure held the bill from consideration with plans to meet on this matter this summer.
HB2771 (C. Mitchell) & SB1296 (Hutchinson) mandates all employers to provide sick days for their employees. Both bills came out of their respective committees on partisan roll calls. HBAI is opposed to these bills as are many other business groups. Organized labor is pushing for the passage of the two bills.
HB2756 (Fortner) expands an Act allowing stormwater management commissions in certain counties served by the Northeastern Illinois Planning Committee to all counties in Illinois. This bill passed out of committee even though opposed by HBAI and the Illinois Association of Realtors. A companion bill in the Senate, SB1507 (Steans), may be heard in the Senate Local Government Committee next week.
HB2615 (McDermed) would have placed new language in the Mechanic’s Lien Act prohibiting contractors from forcing subcontractors to waive lien rights as a condition of doing business with the contractor. HBAI supports this position, but there is current language in the Act that already does this. HBAI registered opposition to HB2615 because of another provision in the bill allowing oral agreements on lien waivers. The Illinois Land Title Association opposed the measure, as well, and the bill was held from consideration in the House Civil Law Committee.
HB366 (McDermed) would have increased penalties for violating the Employee Classification Act. The sponsor withheld the bill from consideration in the House Labor Committee at the request of HBAI and the Illinois Dept. of Labor.
SB09, the omnibus taxation bill that is part of the Grand Bargain in the Illinois Senate, still sits on 3rd Reading there. HBAI will be ramping up opposition to the Service Tax portion of the 500 page bill, as it places a sales tax on home repair services. Some Senators are encouraging HBAI to keep up the fight and believe it is possible that we might be able to pull home repair out of the 8 economic sectors being considered for the Service Tax Plan. Only time and a May 31st session deadline will tell.
