Adventures in Legislating: Your Weekly General Assembly Update!
As we navigate the latest from the Illinois General Assembly, we wanted to provide you with a comprehensive update on the week's legislative developments. This week saw significant behind the scenes activity surrounding SB 2568 (Villa; D-West Chicago), a bill that has been a focal point of our attention since February and seeks to limit access to certain 403b plans for school employees. Amidst the SB 2568 developments, other legislative activities unfolded in various committees, and we are hearing rumblings of omnibus packages being put together that may range from revenue to procurement to sunset extensions. Read on for a full breakdown of where things stand as of today!
Update on 403b Legislation (SB 2568)
We have written several times about SB 2568 (Villa; D-West Chicago) since February when we began negotiations on this bill. The bill is now on its 6th amendment, but has yet to pass out of the Senate with a floor vote. That being said, there was significant activity on the bill this week that we would like to bring to your attention.
To recap, the bill in its original form (the underlying bill, Amendment 1, and Amendment 2) would have required all school districts in Illinois to abandon their existing multi-vendor platforms for the provision of 403b plans, and would give the oversight for the selection of a single plan vendor to labor unions who represent district employees. The sponsor’s goal for the legislation is to allow only “low fee” options to school employees, as she believes many of the existing plans and vendors can be predatory in nature and are not transparent with their fee structures. Armed with her own personal story related to 403bs, and emboldened by support from the non-profit entity 403bwise.org and the two largest education labor unions, Senator Villa has been steadfast in her commitment to move a bill on this issue this spring. Through negotiations, and following many discussions and concerns articulated by school management groups and industry representatives, additional amendments have been filed with new provisions.
Amendments 3 and 4 would have allowed school districts to maintain their existing plans, but would require that any new plan added to a platform must meet very specific criteria. Those criteria include that the plan must not impose an administrative asset-based fee over 0.50%, a front-end sales charge, a surrender charge, or an investment advisory fee of over 0.50%. Additionally, four types of funds must be available under any new plan, those of which are based on the existing TRS SSP option and can be viewed in the bill language here. The amendments also included provisions that any new plan added must be mutually agreed upon by both the school board and the local collective bargaining units. Although these bill versions would have put specific guardrails in place for any newly added plans, employees would have still had access to previously existing plans on a district’s platform.
Amendment 5 was added with no knowledge from school management stakeholders and added language that would have eliminated much of the flexibility that would have been available with Amendments 3 and 4, solidifying our opposition to the measure. Specifically, these versions of the bill would not allow any employee who is new to a district, or new to 403b enrollment, to participate in any of the “old” plans available to other employees in the district. Additionally, these bill versions imposed a requirement that any employee who pauses contributions at any time, shall not be able to restart their contributions into their “old” plan, and would instead be forced to migrate to one of the newly approved plans that meet the specific criteria. Amendment 6 was filed this week and maintained the provisions of Amendment 5, but added liability language to protect school districts from fiduciary responsibility.
This week, Amendment 5 was assigned to the Senate Labor Committee, although it was not scheduled for a hearing during the committee's meeting on Wednesday. Furthermore, the Senator advanced the bill to 3rd reading on the floor on Tuesday, positioning it for a potential floor vote, and simultaneously withdrew Amendment 3. Procedurally, this decision reverts the bill contents back to that of Amendment 1, therefore reinstating the single vendor mandate described above. Despite the procedural concern that calling for a vote would breach the commitment made to the Senate Labor Committee for further discussion, there remains a possibility of it being brought to a vote. We expect ongoing deliberations on this contentious proposal next week, which may prompt a call to action for witness slips or emails to your Senators with a swift response needed. We appreciate your vigilance related to this important and ever-evolving issue!
Although the SB 2568 action was quite exciting this week, the remainder of the committee activity was rather mundane with essentially only the opposite chambers taking action on the other chamber’s bills. Below are some highlights of committee action this week:
Senate Education
HB 3446 (Bennett; R-Morris) would require ISBE to include information that districts currently provide through their Evidence-Based Funding Spending Plans on the school report cards. The bill was held on second reading for an amendment that would place the spending plan on ISBE’s website, instead of on the school report card.
HB 4895 (Johnson; D-Waukegan) requires instruction on climate change for every public school, although these principles are already required in the Next Generation Science Standards adopted by ISBE. An amendment added in the House required ISBE to develop materials districts may use if they choose, and also made it subject to appropriation, meaning that ISBE will not be required to create the materials unless the General Assembly provides the funding to cover the cost of this work.
HB 4902 (Lightford; D-Hillside) requires that any learning partner that is approved to provide support in the area of English Language Arts for schools in school improvement status, must be based on ISBEs comprehensive literacy plan.
HB 5418 (Halpin; D-Rock Island) allows ISBE to authorize school maintenance grants for regional offices of education and intermediate service centers and provides grants that are specifically meant to be used for taking care of school buildings and facilities that are owned by the government and open to the public.
The following bills were on the “Agreed Bills List,” meaning testimony was not heard in committee as both parties agreed to the proposals without the need for further clarification or debate:
HB 340 (Villivalam; D-Chicago) aims to provide clarity on the provision of information about a student’s individual education plan prior to an IEP meeting. The bill requires that the date on which the relevant documents will be available for inspection must be included on the meeting notification that is sent to guardians.
HB 1375 (Lightford; D-Hillside) was passed through the House last spring, but did not move again until this week. The original bill would have created a new graduation requirement of a one-semester course of financial literacy for juniors and seniors. Opposition was voiced by management groups, and an amendment was filed that adds certain financial literacy principles into the existing consumer education requirement for high school students.
HB 4219 (Yang Rohr; D-Naperville) adds required instruction on the dangers of fentanyl to health education in middle schools. An amendment added in the Senate provides that the instruction can be taught by a school resource officer or school social worker, in addition to an educator, school nurse, or school counselor.
HB 4903 (Johnson; D-Waukegan) requires collaboration between ISBE and IDPH to compile resources that address indoor air quality, ventilation systems and potential funding sources for schools to improve air quality. Furthermore, the legislation outlines the requirements for making these resources available to schools and allows for updates as needed.
HB 5250 (Lightford; D-Hillside) addresses automatic enrollment for students who “meet” state standards in English, math or science on state assessments into more challenging courses. Provides that starting in the 2027-2028 school years, schools must inform parents in writing about their child's eligibility for these advanced courses and what that means, but this doesn't stop schools from having policies where students meeting these standards are automatically enrolled in more challenging courses.
HB 5276 (Koehler; D-Peoria Heights) requires consideration of the assistive technology needs of the student related to the student’s transition goals to be included as part of a transition planning process.
HB 5394 (Harriss; R-Edwardsville) directs school districts to develop a cardiac emergency plan that provides specific guidelines for school personnel to follow during a cardiac emergency on school grounds. The bill received an amendment in the Senate which removed a requirement to designate a cardiac response team.
House Elementary & Secondary Education: School Curriculum & Policies Committee
HR 707 (Swanson; R-Woodhull) declares the week of May 5 through May 11, 2024 as Read with Your Child Week in the State of Illinois. The resolution encourages all Illinois schools to promote Read with Your Child Week with appropriate activities.
SB 3473 (Smith; D-Chicago) provides that ISBE, in collaboration with IPDH, will create informational materials about type 1 diabetes for parents and guardians of students. These materials will be available on ISBE’s website and must be posted on the school district’s website.
House Higher Education Committee
HB 4652 (Hernandez, B; D-Aurora) creates a program to provide stipends to student teachers and cooperating teachers who are matched with student teachers. The measure is subject to appropriation, and would pay up to $10,000 per semester to each student teacher, and $2,000 per semester to each cooperating mentor teacher. The second amendment includes a provision that would exempt the cooperating teacher stipend from TRS penalties for those teachers who may be in their final years of service.
House Revenue & Finance Committee
SB 3455 (Canty; D-Arlington Heights) directs the Department of Revenue, in conjunction with the Department of Commerce and Economic Opportunity, to conduct a study that aims to evaluate the property tax system in the state. The Departments are directed to have a report available for the Illinois General Assembly by July 1, 2026. The full scope of the directive related to what exactly the Department is expected to study can be found in the full text of the bill here. The bill passed unanimously through the committee.
SB 2936 (Spain; R-Peoria) seeks to expand an existing statute that allows home rule municipalities to provide a tax abatement for newly constructed single-family or duplex residential properties in areas of urban decay for a period of up to 10 years. The existing statute requires the municipality to pass an ordinance allowing the abatement, and gives discretion to the municipality on both the amount of abatement and the time period allowed for the abatement. The program has been available as a tool for municipalities for many decades, but has not been utilized due to the definition being narrowly applied only to newly constructed properties. The new proposal would extend that allowance to also include newly remodeled or rehabilitated properties, and is being championed with the hope that such abatement may provide an incentive to clean up areas of urban decay.
The Committee also heard subject matter testimony on a number of bill proposals, including HB 4128 (Schmidt; R-Cahokia Heights), which would provide that after January 1, 2025, each employer is required to provide each employee who is a veteran with a paid day off on Veterans Day if the employee would otherwise be required to work on that day.
House Appropriations Higher Education
In its ongoing efforts to develop an equitable funding formula for institutions of higher education, similar to what public K-12 schools receive through the Evidence-Based Funding formula, the Illinois Board of Higher Education presented in a subject matter hearing on its proposed equity-centered funding model. The Illinois Commission on Equitable Public University Funding published its findings and recommendations following a years-long study on the topic in March of this year and subject matter hearings are beginning to broach the topic with legislators. Although there remains much work on the initiative to address outstanding issues and bring all of the universities to agreement, the general budget number the group is anticipating is approximately $1.4 billion in additional appropriations, likely to be phased in over many years, similar to EBF.
Next Week!
Next Friday, May 17th, marks the scheduled 3rd reading deadline for both General Assembly chambers. This means that all measures that will pass this year should be through both chambers by the week’s end, leaving the week of May 20th for concurrence votes in the chamber of origin, if needed. That week would also be reserved for deliberations on the final budget proposal for FY25. Although those deadlines are present, it is highly likely we will see bills receive deadline extensions and bill activity continue through the end of session - whenever that may be. Adjournment is tentatively scheduled for Friday, May 24, and while we have not heard anything concrete about extending that timeline, legislators know to be prepared to stay in Springfield through Friday, May 31st, if required.
We appreciate your continued engagement in these crucial matters shaping our educational landscape. Stay informed, stay involved, and together, we can navigate these dynamic legislative waters!