Quarterly Update | March 2022
Current Advocacy Work
Permitting of Food Trucks/Mobile Vendors on Private Property
At the January 4th, 2022, Naperville City council meeting, members of the Council members requested input from our NACC as to the impact of food trucks on mobile food vending on private property. As a response, the NACC constructed a questionnaire and sent it to our business community members in the foodservice industry, had personal conversations with Chamber Members who operate food trucks, and those who have only brick and mortar establishments as well as city of Naperville staff. As a result of this input and discussion at the NACC Business Works Committee, we took a position of calling for food truck operators whose business is registered outside the city of Naperville and who do not pay food & beverage tax, operating more than 4 calendar days a year inside Naperville be required to pay a permit fee. This position was taken to ensure a more equitable tax climate among food service providers operating in Naperville. At their meeting on March 1, the city council voted 6 to 4 to not require an additional permit for these vendors. Council members who voted in favor of additional permits were: Mayor Steve Chirico, Councilmen Paul Hinterlong and Paul Leong, and Councilwoman Patti Gustin.
State and Federal
HB5320: Minimum Wage Tax Credit
The NACC has actively advocated for this bill which would reduce costs associated with the raising of the minimum wage on small businesses. The minimum wage increase was passed by the IL General Assembly in 2019. As part of this legislation, a tax credit was established for businesses with 50 or fewer employees. HB5320 expands the percentage of the tax credit these businesses take over the next several years. A special thanks to two members of our local legislative delegation for co-sponsoring this bill:
- IL State Representative Amy Grant, 42nd District
- IL State Representative Janet Yang-Rohr, 41st District
The figure below demonstrates the additional tax credit called for in this bill:
|Increments of Minimum Wage Increase (from $8.25 in 2019)||2019 Legislation Creating Tax Credit*||Proposed Legislation|
|$9.25 (1/1/20) $10 (7/1/20)||25% in 2020||25% in 2020|
|$11 (1/1/21)||21% in 2021||25% in 2021|
|$12 (1/1/22)||17% in 2022||25% in 2022|
|$13 (1/1/23)||13% in 2023||25% in 2023|
|$14 (1/1/24)||9% in 2024||25% in 2024|
|$15 (1/1/25)||5% in 2025||5% in 2025|
|Ends on 12/31/26 for employers with >5 employees. Ends on 12/31/27 for employers with <5 employees.|
* Tax credit reflects the difference between the new minimum wage at each increment and what each employee was paid previously.
Replenishing the Unemployment Trust Fund
The Illinois Unemployment Trust Fund is funded primarily by employers through the unemployment payroll taxes they pay for each employee. An individual employer’s unemployment insurance rate is based on that business’ layoff history, years in operation, and the state’s unemployment insurance trust fund balance. If an employer was forced to lay off employees due to the shutdown coupled with a low or even negative trust fund balance, it will wield a painful blow to employers in skyrocketing unemployment insurance rates, not to mention further tax burdens to all Illinois taxpayers. The NACC is calling on state legislators to utilize American Rescue Plan Act (ARPA) funding to help replenish the unemployment trust fund. Governor Pritzker’s 2002 budget allocates $2.8 billion of Illinois $8.1 billion in ARPA funds. Allocating ARPA funds to bolster the unemployment insurance trust fund would go a long way to mitigate the impending financial impact on our area businesses due to escalating unemployment insurance rates and tax hikes. To address this issue at the federal level, the U.S. Chamber of Commerce is calling on Congress to support the reinstatement of the interest waiver which will allow states to address outstanding loans and interest payments without incurring more debt. In addition, Congress appropriated $350 billion in State & Local Fiscal Recovery Funds (SLFRF) as part of ARPA for states to respond to the public health emergency. The U.S. Chamber of Commerce urges states to use the SLFRF funds towards outstanding loans or accrued interest or to replenish the state’s UI trust fund to pre-pandemic levels.
Biometrics are physical or behavioral human characteristics that can be used to digitally identify a person to grant access to systems, devices, or data. Some examples of these technologies include facial and/or fingerprint recognition, voice scans, etc. Illinois Biometric Information Privacy Act (BIPA) was passed in 2008 and has never been amended while advances in the technologies used in businesses every day have expanded exponentially. There is a tremendous need for BIPA policy reforms to better match the technologies of today’s business world. Since a landmark lawsuit in 2019 involving Six Flags Great America’s collection of a child’s fingerprint for a pass to reenter their park, there have been 1,500 lawsuits. We have been following BIPA reform bills over the last two Illinois General Assembly sessions and our NACC board voted for a position calling for a 30-day right to cure and limit punitive damages. We are asking for a liquidated damages provision that matches the number of actual damages; i.e. fines based on each violation. This will support consumer privacy protections ensuring companies do not misuse customer biometric data. It appears at this writing, all BIPA reform bills this session will not be moving out of committee. We plan to have meetings over the summer with key legislators and our Members in the technology sector to ensure that bills next session best meet the needs for advancing technology of our businesses while protecting the privacy of our residents.
Find out more about the need for BIPA reforms in this article by Clark Kaericher, Vice President of the Government Affairs, Illinois Chamber of Commerce.
The NACC Meets in Springfield
Our President & CEO, Kaylin Risvold and Director of Government Affairs, Reba Osborne were in Springfield on March 2, along with many other Chambers from the state participating in the 2022 Illinois Chamber Day. After listening to officials discussing pressing issues impacting the business community (including a presentation from Speaker of the House, Chris Welch, and House Republican Leader, Jim Durkin) they headed to the State’s Capital to meet with members of our local state representative delegation. One issue top of mind is our call to use ARPA funds to replenish the Illinois Unemployment Insurance Trust Fund to prevent skyrocketing unemployment insurance premiums for all our employers.
Thank you to some of our local legislators who visited with us during this trip. State Representatives Janet Yang Rohr (41st District), Maura Hirschauer (District 49), and Anne Stava-Murray (District 81). Our open communication is something we appreciate and value as we continue a dialogue about the needs of our business community.