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February 24, 2015

February 24, 2015, 8:04 am
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Tribune Editorial: Right-To-Work And Illinois
From the Chicago Tribune
For more than six decades, talk of a right-to-work law — which backers say would make Illinois more competitive for jobs — was largely irrelevant here. Of the six border states eager to poach companies away from Illinois, only Iowa had a law that forbade making employment contingent on joining or paying dues to a union. Illinois wasn't at a big labor-law disadvantage to most of its neighbors.
In 2012, though, Indiana and Michigan adopted right-to-work laws. And this week, Wisconsin state senators may pass a similar bill; the lower house, the Assembly, is expected to follow suit. Gov. Scott Walker likely would sign the bill, making Wisconsin the 25th right-to-work state. And the other two states abutting Illinois? Kentucky's Senate and Missouri's House passed right-to-work bills in January and February, respectively. Prospects for enactment as law in both states are uncertain, but several impatient Kentucky counties have declared themselves right-to-work zones, with more counties expected to follow.
To unions that loathe right-to-work laws and their threat to membership rolls and dues, this suddenly looks like a noose tightening around Illinois. And one other factor has changed: Illinois has a Republican governor who wants to permit local right-to-work zones like Kentucky's.
Thus far, Gov. Bruce Rauner hasn't made an Illinois right-to-work law his priority. And with so many union-friendly Democrats (and some Republicans) in his legislature, we don't know that he will.
What Rauner does stress, every chance he gets, is that the high costs of doing business here make it easy for companies to expand, build or hire in more business-friendly states. When Rauner talks about making Illinois competitive again, he talks about high taxes, high worker's compensation premiums, the need for tort reform — and about communities that may want to enact right-to-work rules different from state government's.
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February 25, 2015

February 25, 2015, 8:05 am
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Fight At US Supreme Court Over Health Law Affects Illinois
From the Associated Press
A case being heard at the U.S. Supreme Court next week challenges health insurance subsidies for more than 270,000 Illinois residents and many more people in states that did not set up their own insurance exchanges under President Barack Obama's health overhaul.
Any decision against the subsidies, according to an amicus brief signed by Illinois Attorney General Lisa Madigan and 21 other states, "would destroy state insurance markets and render the (Affordable Care Act) unworkable." The brief, filed Jan. 28, argues that Congress intended the health law to cover all Americans.
The issue rests on the interpretation of four words in the health care law. The challengers argue the law provides subsidies only to people who get their insurance through an exchange "established by the state." About three dozen states — including Illinois — have not established their own marketplaces and instead rely on the federal HealthCare.gov system.
Obama's law offers subsidized private insurance to people who don't have access to it on the job. Without financial assistance with their premiums, millions of those consumers would drop coverage.
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Illinois House Panel On Legal Issues Will Be Divided

February 26, 2015, 3:11 pm
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From the Chicago Daily Law Bulletin

After two years under one umbrella, the Illinois House’s lawyer-heavy Judiciary Committee will split into two panels to review criminal and civil matters separately this year.

That’s similar to the setup that was in place for the better part of the last three decades — from 1985 until an overhaul of the state’s criminal code was completed in 2012.

But a renewed focus on criminal-law changes, the intricacies of many civil-law proposals and an attempt to increase efficiency have led lawmakers to, again, divvy up the work.

The criminal law committee will be chaired by Rep. Elgie R. Sims Jr., a Chicago Democrat, while the civil law committee chair is Rep. Elaine Nekritz, a Northbrook Democrat who led the singular Judiciary Committee.

Both panels this week will convene their first meetings of the year, with the House Judiciary-Criminal Committee scheduled to review bills this afternoon and the House Judiciary-Civil Committee slated to get together Thursday morning.

It was “members’ preference” to go back to the two-panel divide, said Steve Brown, spokesman for House Speaker Michael J. Madigan.

Additionally, there were time constraints when a bulk of legal-system proposals went through one committee of legislators.

“I don’t think any of them were saying they were being overworked. I think more of them were saying these matters require some additional time to review, and the schedule sometimes doesn’t lend itself to that,” Brown said.

Read the entire article at the Chicago Daily Law Bulletin (Subscription Required).

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February 26, 2015

February 26, 2015, 3:14 pm
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Federal Court Dismisses Defendants In Asbestos Case For Lack Of Personal Jurisdiction
From the Madison County Record
U.S. District Judge Staci M. Yandle dismissed five defendants in an asbestos wrongful death action for lack of personal jurisdiction, concluding that a mere presence in Illinois does not give the state jurisdiction.
In a Feb. 19 order out of the U.S. District Court for the Southern District of Illinois, Yandle granted motions to dismiss filed by defendants BASF Corporation, Exxon Mobile Corporation, NIBCO Inc., Valero Energy Corporation and Clow Corporation.
Plaintiff Billie Denton, individually and as special administrator for the estate of decedent Robert F. Denton, originally filed his lawsuit in Madison County Circuit Court in October 2013. It was removed to federal court in December 2013.
Denton alleges the decedent served in the U.S. Navy from 1944 until 1947 and was exposed to asbestos-containing products manufactured by the defendants or while working for the defendants.
Yandle wrote that the plaintiff failed to allege facts indicating the decedent’s injuries arose from the defendants’ connections to Illinois.
Denton, on the other hand, argued that the court should maintain jurisdiction because of its “substantial, continuous and systematic contacts” with Illinois, including a manufacturing location and businesses.
Yandle was not convinced. She explained that an Illinois district court must determine whether the defendant’s contact with the state is appropriate, ensuring that maintenance of the suit does not offend “traditional notions of fair play and substantial justice.”
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February 27, 2015

February 27, 2015, 7:03 am
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More Than 200 Asbestos Cases Set For Trial Next Week In Madison County
From the Madison County Record
Two hundred nine asbestos cases are set for trial beginning March 2 in Madison County Circuit Court.
The vast majority of them are mesothelioma claims – 186 – brought mostly by the Simmons firm of Alton – 186 – on behalf of plaintiffs mainly outside of Illinois – 190.
A review of 207 of the cases shows that just four of the plaintiffs are from Madison County, representing about two percent of the total.
Most cases – 116 – were filed in 2013. Forty-four cases were filed in 2014; 35 were filed in 2012 and 11 filed in 2011.
The oldest case is a Simmons case from 2008 in which Steve Fox of Georgia claims mesothelioma.
Flint and Associates of Glen Carbon has 14 clients docketed for trial. The Napoli firm of Glen Carbon has five cases. Other firms including Gori Julian, Maune Raichle, Lanier, Goldenberg, Sharder and Associates and O’Brien have one or two cases set for trial.
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March 2, 2015

March 2, 2015, 5:21 am
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Lawmakers Aim To Fix Election System
From the Peoria Journal Star
State lawmakers are trying to remedy what they see as a broken election system that takes too long, is too invasive and has too much influence from corporate donors.
Both Republicans and Democrats have introduced a group of bills to change ballot procedures, primary dates and campaign finance rules. Rep. Scott Drury, D-Highwood, introduced two of the bills, which would change the primary date for state and federal elections and allow for an open ballot.
Drury’s House Bill 193 would change the primary election date to the fourth Tuesday in June. He said he heard complaints from both constituents and lawmakers about the long political process that he sees as flawed.
“It gives time for a lot of outside interest money to come into the races and say positive things about the people they like and negative things about the people we don’t,” he said. “What we’ve found is there’s very little money being spent talking about the issues.”
Drury said he thinks the state’s municipal elections are a good model. Springfield held city primaries Tuesday and will hold a municipal election six weeks later, on April 7.
Democrats aren’t the only ones looking to change the process. Freshman Rep. Steven Andersson, R-Geneva, filed similar legislation that would move the primary to July.
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March 3, 2015

March 3, 2015, 7:13 am
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Rauner Targets Unions In Lake County Speech In Mundelein
From the Chicago Daily Herald
His speech was officially about empowering the people of Illinois, but Gov. Bruce Rauner repeatedly targeted labor unions and the political power they wield during a brief appearance in Lake County on Monday.
Controlling the ability of teachers and other workers to unionize and bargain as a unit is the way to control government spending in Illinois, Rauner said during a Mundelein Vernon Hills Rotary Club luncheon at Dover Straits restaurant in Mundelein.
"You can decide if your teachers don't necessarily have to be forced to join a union to work in (your local school)," Rauner said.
Likewise, people should be able to decide what employment matters can be determined by union negotiations, he said.
"You should control those issues," Rauner said.
When asked for a response later in the day, Illinois Federation of Teachers President Dan Montgomery lashed out at the governor.
"All this talk about empowerment and choice is baloney," Montgomery said. "No one is forced to join a union, so let's call this what it is: a right-wing political attack on the unions who give teachers, first responders, nurses, and other workers a collective voice."
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March 4, 2015

March 4, 2015, 8:12 am
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State School Superintendent Warns Of 'Perfect Storm' For Districts
From the Associated Press
As lawmakers consider revamping Illinois' outdated school funding formula, the state superintendent warned Tuesday that more education cuts would create a "perfect storm," putting low-income and minority students at risk.
The State Board of Education is asking lawmakers to provide an additional $730 million in fiscal year 2016 for pre-kindergarten through 12th grade funding, a 10.7 percent boost for schools in the state's 857 districts. But the request comes as lawmakers grapple with a roughly $6 billion budget hole next July stemming from the expiration of the state's temporary income tax increase, and struggle to find middle ground on a way to change the current funding formula, in place since 1997.
State Superintendent Christopher Koch told a House appropriations committee that the numbers of low-income and minority students are growing while budget cuts force districts to cut staff and eliminate various programs.
Republican Gov. Bruce Rauner, who bills himself as an education reformer, proposed in his budget address last month to boost funding for early childhood and K-12 education for roughly $300 million. School districts have received less money than they're owed for the past four years, and Koch says many are already struggling to get by.
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March 5, 2015

March 5, 2015, 7:01 am
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New Illinois Medicaid Chief Pledges To Crack Down On Benefits To Dead People
From the Southern Illinoisan
The new director of Illinois' Medicaid program pledged Tuesday to crack down on the number of dead people who receive health insurance benefits from the state.
But, said Illinois Department of Healthcare and Family Services chief Felicia Norwood, her agency remains hobbled by outdated computer systems and a reliance on other agencies for information that can lead to errors.
"Much work remains to be done," said Norwood, who was named to the position by Gov. Bruce Rauner in January.
At issue are two audits that found the state has spent millions of dollars on health insurance for people who were deceased.
The findings triggered outrage from lawmakers and generated at least one legislative proposal to hire an outside firm to ensure Medicaid recipients are eligible to receive benefits.
"Our ultimate goal is to reduce this as much as we can," Norwood told members of the Legislative Audit Commission, which met Tuesday to review Auditor General William Holland's 2014 report.
Norwood warned that it will take time and money to upgrade computer systems in order to ensure the agency has death records in a timely fashion.
She told the panel that future audits may find similar problems, but the number of dead people receiving benefits should steadily shrink as time goes along.
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March 6, 2015

March 6, 2015, 7:03 am
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Unions Sue To Block Rauner's Order On Dues Collection
From the Associated Press
Illinois labor unions filed a lawsuit Thursday seeking to invalidate Gov. Bruce Rauner's executive order ending a requirement that state workers pay union dues even if they don't want to join a union.
Twenty-seven unions sued the Republican governor, saying the order he issued last month violates collective bargaining agreements and state labor law and that Rauner exceeded his constitutional authority. The lawsuit filed in district court in St. Clair County also asks a judge to issue an injunction preventing the order from being implemented.
Illinois AFL-CIO President Michael Carrigan said Rauner's action strikes at firefighters, snowplow drivers, nurses and other employees who provide critical state services.
"Governor Rauner's political obsession with stripping their rights and driving down their wages demeans their service, hurts the middle class and is blatantly illegal," Carrigan said in an emailed statement.
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March 9, 2015

March 9, 2015, 6:43 am
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Blue State Turnaround Artist
From the Wall Street Journal
The sclerosis in Illinois is perhaps best illustrated by Gov. Bruce Rauner ’s attempt to fix up the state’s executive mansion, a brick Italianate tourist attraction that dates to the 1850s and badly needs repair.
Mr. Rauner, a self-made multimillionaire, offered to raise private money for the renovation, but he was told that donations could not be accepted for a state building. “I said, ‘I’m trying to save the taxpayers millions of dollars,’ ” he tells me. “ ‘Why can’t I put in some money? The roof, the basement, the elevator—I’ll fix it.’ They said no.” By the same token, when Mr. Rauner informed the bureaucrats in Springfield upon his election that he didn’t intend to take a salary as governor, he says he was told, “we have to send you a salary, and you can send it back.”
In the end, Mr. Rauner wrangled approval for the mansion renovation but was told that the work, even if privately funded, had to follow the state’s prevailing-wage laws, which restrict competitive bidding and can raise costs 20% or more. This set the governor to thinking about how much these prevailing-wage laws waste statewide. “If we spend, take a number, $10 billion on infrastructure in the coming years,” he says, if a big percentage “of that is unnecessarily costly, think how many billions we could save, and keep in taxpayers pockets or do more schools, more upgrades to the classrooms, more bridges and roads.”
Welcome to government in Illinois, the worst-managed state in the country. The Land of Lincoln is buried under staggering debts, including a projected $6.7 billion operating gap for the next fiscal year and an $111 billion unfunded pension liability. Government unions and politicians engage in legal collusion that fleeces taxpayers. Between 2002 and 2014, 86% of Illinois state lawmakers received union contributions, according to the Illinois Policy Institute.
All of this takes an already chilly business climate down another few notches. Over the past five years Illinois lost 41,000 manufacturing jobs while Indiana gained 51,000 according to the Bureau of Labor Statistics. As Illinois has economically trailed its neighbors in the past dozen years, 277,000 people have left the state, according to the Census Bureau.
Even the liberal-leaning electorate in Illinois sees the need for change. Last year voters elected Mr. Rauner, a political newcomer, to serve as their first Republican governor in more than a decade. Now they will find out whether he is up to the task of saving the state from economic ruin.
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March 10, 2015

March 10, 2015, 6:06 am
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Illinois Official Says Work To Cut Local Governments Begins This Week
From Reuters
A new task force charged with cutting some of Illinois' nearly 7,000 local governments, the highest number of any U.S. state, will be unveiled this week, according to the state's lieutenant governor.
With a plethora of local governments that tax residents - from mosquito abatement districts to cemetery authorities - "everything is on the table," Lieutenant Governor Evelyn Sanguinetti, a Republican, who is in charge of the task force, told Reuters.
The number of local government units is so great that nobody is sure exactly how many there are, and it depends on who is counting, Sanguinetti said.
According to the U.S. Census Bureau, the state has 6,963 local governments. But the Illinois Comptroller's Office says the number is far greater, with nearly 8,500 local government units registered in 2014, the latest figure available.
"We know the number is incredibly high and we are first place in the whole country when it comes to the numbers of local government we have in Illinois," Sanguinetti said. "Right now the focus is on the duplication of services. We want to take a look at streamlining that and to save taxpayer money."
According to the Census Bureau, Illinois eclipses all other states in the number of local governments. Texas, which ranks second, comes in at 5,147. Pennsylvania follows with 4,897. And Florida, with a population of nearly 20 million, compared to Illinois' 13 million, has just 1,650 local government units.
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March 11, 2015

March 11, 2015, 9:27 am
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Illinois Supreme Court To Hear Arguments On Pension Law
From the Chicago Tribune
More than a year of legal wrangling over Illinois' attempt to curb benefits in the nation's most underfunded pension system will come down to 50 minutes of courtroom debate Wednesday when lawyers for state government and public workers square off before the Illinois Supreme Court.
At issue is a law that seeks to address the state's soaring pension costs and a more than $100 billion pension liability by reducing cost-of-living increases, raising the retirement age for some workers and limiting how much of a salary can be counted toward a pension.
Lawyers for public workers and retirees argue the law violates what's known as the "pension protection clause" of the Illinois Constitution, which holds that public pensions are a "contractual" benefit and cannot "be diminished or impaired."
But lawyers for the state argue that the government's emergency police powers — in this case the ability to fund necessary government services — trump the constitution's pension guarantees.
A judge in Springfield ruled the law unconstitutional in November, contending it "without question" violated the pension guarantee. That prompted government lawyers to appeal to the state's highest court, which will hear oral arguments Wednesday. No ruling date has been set.
The outcome of the appeal has implications for new Gov. Bruce Rauner and the Democratic-controlled General Assembly's lawmakers, who have begun budget negotiations with the pension question on hold pending a resolution of the court case.
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March 12, 2015

March 12, 2015, 7:52 am
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Illinois Justices Press State's Lawyer On Pension Overhaul
From the Associated Press
Illinois Supreme Court justices asked the state's lawyer to explain Wednesday how the government can seek extraordinary power to reduce public pension benefits in the face of a fiscal crisis when the government itself is culpable for the financial mess.
Justice Robert Thomas peppered solicitor general Carolyn Shapiro during oral arguments over the constitutionality of a 2013 law that cuts retirement benefits in a 30-year plan to slay a $111 billion deficit.
State employees and retirees challenged it, arguing that the state constitution prohibits action to "impair or diminish" the benefits of the contractual pension agreement.
The state counters that it can resort to "police powers" to trump the constitution in moments of economic peril. The peril, they say, can largely be traced to the recession of 2008, which battered the value of the pensions' portfolios and caused other problems.
But until questioned about it, Shapiro didn't mention that for decades, governors and legislators have given short-shrift to annual contribution obligations — including as recently as 10 years ago, well after the crisis was widely recognized, by skipping $2.3 billion in payments.
"If the court holds that the state can invoke its police powers to violate core constitutional guarantees to respond to an emergency that at least arguably the state itself created, then aren't we giving the state the power to modify its contractual obligations whenever it wants?" Thomas asked Shapiro. "For instance, the state could simply fail to fund the pension systems and then claim an emergency."
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March 13, 2015

March 13, 2015, 6:32 am
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Judge: 'Impending Sense Of Doom' Could Force State Budget Fix
From the Chicago Daily Herald
Time is running out for lawmakers and Gov. Bruce Rauner to find a budget fix that will allow the state to keep paying for court reporters across the suburbs.
The money for their salaries runs out at the end of the month, raising big questions about how courts will continue to operate without reporters tapping away during hearings the law requires them to attend.
Kane County Chief Judge Judith Brawka said this week that one thing is clear: The courts won't close down completely. Judges won't allow it.
But changes could be coming soon. The state's more than 20 chief judges have been told by the office that runs the court system to each come up with a "emergency operating plan" to, basically, figure out how to go forward in case the state doesn't come through.
That means some suburban counties could start making cutbacks or changes well before the end-of-March deadline.
The chief judges are set to meet March 20 to talk about those ways forward. There are a lot of options, none easy, Brawka said.
Brawka says she remains hopeful Rauner and top Democrats will cut a deal before funding runs out. Deadlines, she says, and the "impending sense of doom" that come with them, tend to motivate deal-making.
"At a crisis point, they find a solution," Brawka said.
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March 16, 2015

March 16, 2015, 8:34 am
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Illinois FOIA Appeal Process Hampered By Years-long Backlog
From the Associated Press
After the scandal that sent former Illinois Gov. Rod Blagojevich to prison, lawmakers adopted a raft of reforms that included creating a referee to intervene when bureaucrats reject citizens' requests for government records.
Five years later, the "public access counselor" in the attorney general's office has yet to respond to more than 2,800 appeals of Freedom of Information Act requests for information that a government agency deemed secret, according to an analysis of records obtained by The Associated Press.
That's about one in five of all FOIA appeals submitted to the office since the law took effect in 2010.
While it means the office can claim more than 80 percent of its cases closed, the AP found that nearly 1,200 of the open cases have gone unanswered for at least two years.
The numbers concern legislators who pushed for the added layer of appeal, while a freedom of information advocate says delay means denial for citizens counting on prompt government information — and who believe the records are illegally being kept secret.
"The intent was to facilitate responses to the public at large seeking information," said Sen. Kwame Raoul, a Chicago Democrat. "If you have (the appeals office) overburdened, that doesn't carry out the spirit of the law."
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March 17, 2015

March 17, 2015, 5:56 am
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Supreme Court Tweaks Rules On Cameras In Court
From the Chicago Daily Law Bulletin
Judges who let news cameras in trial courtrooms will have to provide specific summaries of the experience under a set of rule changes announced by the state’s high court.
The Illinois Supreme Court said Friday that courts who have been authorized for extended media coverage should describe to their chief judges the type of coverage they allowed; the date, time, location and nature of the proceedings; and any problems after the coverage ends.
Additionally, chief judges will be asked to submit quarterly summaries to the Supreme Court detailing the number of requests their circuits received, the types of cases and the total number of coverage approvals and denials.
Chief judges were already required to write about their experiences with cameras, which are now allowed in 15 circuits covering 41 counties in Illinois under a pilot program that began in 2012.
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March 18, 2015

March 18, 2015, 5:57 am
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Illinois Courts Notify Workers Of Possible Layoffs
From the Associated Press
Just two weeks remain before money to keep Illinois courts operating runs out, and a judge in the western part of the state has told some court employees that they will be laid off if lawmakers and Gov. Bruce Rauner don't reach a deal on closing a budget gap.
James Stewart, chief judge of the 9th Judicial Circuit based in Macomb, told The Associated Press on Tuesday that six out of 10 court reporters could be let go at the month's end. The four reporters who remain would only work approximately three days a week. Two counties in the six-county circuit would conduct hearings and trials strictly with electronic recordings.
"We're desperate," said Stewart, who personally broke the news to the affected reporters. "To keep the courts open and some ability to make a record for the next three months, this was a drastic plan."
State money to pay court reporters runs out this month, part of the $1.6 billion deficit in the current state budget that the Republican governor and majority Democrats in the General Assembly have tussled over for weeks without resolution.
The Supreme Court, with administrative authority over the trial courts, requested each of the state's 23 circuits to develop contingency plans, due to the Administrative Office of the Illinois Courts by Friday.
"They asked the chief judges to develop emergency operation plans to try to find some interim solution to extend the period of time before operations must be drastically altered or closed," court spokesman Joseph Tybor said.
Tybor was unaware of any circuits issuing layoff notices to court reporters, but Stewart said he had talked to several chief judges who had delivered the painful message.
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March 19, 2015

March 19, 2015, 5:59 am
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ATRA Calls Durbin’s Newly Proposed READ Act A ‘Trade-off’ For FACT Act Legislation
From the Madison County Record
Senator Dick Durbin (D-Ill.) introduced a bill in the U.S. Senate last week that would require companies to file annual reports disclosing information about any asbestos-containing products to the Environmental Protection Agency.
The bill, called the Reducing Exposure to Asbestos Database (READ) Act, was introduced by Durbin on March 10 and was co-sponsored by Senator Edward J. Markey (D-Mass.).
“Every year, far too many Americans and their families suffer the deadly consequences of asbestos exposure,” Durbin said in a press release. ”The goal of this legislation is simple: increase the transparency and accessibility of data informing the public about where asbestos is known to be present. This information will increase awareness, reduce exposure, and help save lives.”
President Ronald Reagan signed a similar bill into law in 1988 called the Asbestos Information Act, which required manufacturers and processors of asbestos-containing material to make a one-time report providing information about their products to the EPA.
Those reports were published in the Federal Register. Because the law pre-dated the Internet, Durbin said his bill modernizes Reagan’s law by making the reports easily accessible on a searchable online database.
The READ Act would require annual reports, rather than a one-time filing, and would also require companies to provide information disclosing any publicly-accessible locations in which the products were known to be present in the past year.
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March 20, 2015

March 20, 2015, 12:50 pm
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Rauner Orders State Agencies To Start Diverting Union 'Fair Share' Dues
From the Associated Press
Gov. Bruce Rauner, indomitable in attempts to eliminate fees paid to unions by workers who choose not to join, has instructed state agencies to divert money from nonunion employee paychecks away from organized labor until a judge settles the matter.
In a memo obtained by The Associated Press, general counsel Jason Barclay directs departments under the Republican governor's control to create two sets of books: One with the "proper pay" and one, to be processed, that reduces the worker's gross pay by an amount equal to what is normally paid in so-called "fair share" fees.
Rauner signed an executive order last month eliminating the fees nonunion members pay, calling it a First Amendment violation. He's seeking a federal court's declaration that they are unconstitutional.
But the memo raised questions about how the deductions would affect federal tax withholding or health-insurance payments. Taxes are based on gross pay — if it's lower, less is withheld, creating potential headaches down the line.
"We are confident in the process laid out in the memo," Rauner spokeswoman Catherine Kelly said in a prepared statement. "It's no surprise that AFSCME is doing everything in their power to deny state employees from exercising their First Amendment rights."
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