November 9, 2023 State Capitol Report

Illinois General Assembly concludes Veto Session

The two-week Veto Session concluded today with both the House and Senate adjourning until January. While Veto Session did not include major legislative issues for the Illinois REALTORS® Legislative Team, this session did include creating an elected Chicago school board and allowing small nuclear power stations to begin to come back online (which will take six years). Other issues more closely related to the real estate industry, included a trailer bill (SB 384-see below) to the Senate Bill 40 from last spring to allow tenants who are willing to cover the costs, to ask their landlords to install electric charging stations.

While there were not hugely controversial bills considered that would greatly impact REALTORS®, there are always some issues of interest to our members. Below is an update of the legislative issues the Illinois REALTORS® Legislative Team was involved in during this Veto Session.

Bills of Interest

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Passed last spring, the original bill pertained to a new “Sales Tax” initiative that did not concern the Illinois REALTORS®. HB 2507 ultimately passed the House and was sent to the Senate where in the final hours of session, an amendment was filed that changed the bill from a sales tax measure to a property tax issue. Senate Amendment 1 contained numerous property tax provisions, but the provision that was added – and that the Illinois REALTORS® Legislative Team objected to – lowered the property tax rate for Cook County nursing homes, effectively shifting a portion of the nursing homes’ property taxes onto homeowners. After passing the Senate and then in the House in the spring, Governor Pritzker returned this bill to the legislature indicating that upon removing the nursing home exemption provision, he will support and sign the bill into law. Illinois REALTORS® SUPPORTS this amendatory veto and urges the Illinois General Assembly to accept this modification. In the end, the House did not take action on this amendatory veto.

During last spring’s session, Illinois REALTORS® finalized negotiations with supporters of mandating that new or renovated residential buildings have infrastructure and components necessary to install electric vehicle charging stations for every parking space immediately. We were pleased that the amendment Illinois REALTORS® offered was accepted. This amendment changed the mandate from “EV Ready” to “EV Capable” with capable defined as having the necessary electrical components for the possibility of future installation of a charging station. Further the amendment provides that developers are not required to install the electrical components immediately, excludes all home renovations, and does not require developers to retrofit conversions. SB 40 was passed last spring and signed into law by the Governor. This week SB 384, Amendment 1 was passed by the Senate to amend the law that has yet to take effect. SB 384 allows tenants who are willing to cover the costs to ask their landlords to install electric charging stations. SB 384 is not a mandate so Illinois REALTORS® is neutral on this SB 384. The bill passed both chambers and will be sent to the Governor. If signed into law the bill becomes effective on Jan. 1, 2024.

SB 1441 makes it a civil rights violation for any person, including a real estate broker or salesman to refuse to engage in a real estate transaction because of a prospective buyer’s criminal or conviction record. The Illinois REALTORS® Legislative Team has been negotiating this bill with the sponsor since the bill’s introduction last February. At this time, it is uncertain, but also unlikely that this bill will receive legislative action during the Veto Session. In its current form, Illinois REALTORS® strongly OPPOSE SB 1441. No action was taken on this bill during Veto Session, but Illinois REALTORS® have pledged to continue to work on this bill to find common ground.

SB 2597 exempts single-family residences and tiny homes that are specifically constructed for veterans from the recently passed Electric Vehicle Charging Station Act. Illinois REALTORS® SUPPORTS this legislation. This bill will be held over until the 2024 session.

Recently introduced, the bill requires all landlords to disclose to all tenants in writing prior to signing the lease if the property is located in the Federal Emergency Management Agency Special Flood Hazard Area and if the landlord has knowledge that the rental property or parking areas have been subject to flooding. Failure to comply with this mandate gives a tenant the right to break the lease. The bill contains additional requirements for a landlord. The bill contains additional requirements for a landlord. Illinois REALTORS® OPPOSE this legislation. This bill received no attention during the Veto Session but can be considered during the 2024 session beginning in January.

Recently introduced, this bill requires landlords renting lower-level units to purchase flood insurance for tenants. Failing to maintain flood insurance for tenants and if flooding occurs that results in damage to tenant’s personal property, the landlord would be responsible. Illinois REALTORS® OPPOSE SB 2602. This bill received no attention during the Veto Session but can be considered during the 2024 session beginning in January.

Next Session At a Glance

At this time, no special session days have been scheduled so the Illinois General Assembly is expected to return to Springfield in January 2024. During this time, legislators will be working in their district offices.

The 2024 session is the second half of the 103rd General Assembly that began in January 2023. We fully anticipate that RENT CONTROL will be on the docket for consideration along with other bills that may attempt to diminish private property rights. As always, your Illinois REALTORS® Legislative Team will remain involved and engaged on all legislation that would affect the real estate industry and private property rights. Stay tuned and be prepared to take action, if needed.

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