Illinois House Floor Debate — November 13, 2019

"The house will be in order. Members will be in their chairs. We shall be led in prayer today by Rabbi Adam Chalom who is with Kol Hadash Humanistic Congregation of Lincolnshire, Illinois. Rabbi Chalom is the guest of Representative Didech. Members and guests are asked to refrain from starting their laptops, turn off all cell… all cell phones and pagers, and please rise for the Pledge of Allegiance."

"We will be led in the Pledge of Allegiance today by Representative Murphy."

"Roll Call for Attendance. Leader Willis is recognized to report any excused absences on the Democratic side of the aisle today."

"Please excuse, from this side of the aisle, Representative Mason and Representative Scherer."

"Representative Spain is recognized to report any absences on the Republican side of the aisle."

"Have all recorded themselves who wish? Mr. Clerk, please take the record. There being 114 Members answering the roll call, a quorum is present. Good afternoon, Members. Could you please take your chairs? Could staff retire to the back of the chamber? Thank you. Members, could you please take your chairs? Staff, could you retire to the back of the chamber? We are honored, today, to be joined by the Consul General of the Republic of India, Shri Sudhakar Delela. He'll be speaking to us in just a moment. And it was very interesting to talk to him and his staff before we came onto the floor about the relationship between the Republic of India, the United States of America, and the State of Illinois in specific. It was fascinating to me that… to learn… not only is India the second most populous country in the world, with one of the fastest growth rates, soon to become the most populous country in the world, it's also a very young country with 65 percent of the population being persons 18 to 35 years of age. It is a country that has 4 times the population of 10100070.docx 3  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 the United States of America, but a land mass that is only one-third of our size. So an incredibly populous and a very crowded country. And it is a country that does over $3 billion a year in trade with the State of Illinois, largely in manufacturing and technology equipment. So it's a very important trading partner to our state. The Consul General joined the Indian Foreign Service in 1993, beginning his career in Tel Aviv, Israel, where he also acquired proficiency in Hebrew. He has since served in missions in Brazil, Geneva, Dhaka, and Washington, D.C. This being his second assignment in the United States, previously serving as Minister for political… excuse me… Political Affairs at the Indian Embassy in Washington, D.C. He brings a wealth of experience in trade, economic policy to his role, having twice served as the Permanent Mission of India to the World Trade Association, including as India's Deputy Permanent Representative. He's a member of India's negotiating team for the WTO Ministerial Conferences in Doha, Cancun, Hong Kong, and Nairobi. He has also served in critical offices in New Delhi. Serving as Director in the Prime Minister's Office, focusing on engagement with its South Asian neighbors, China, and countries in the Asia-Pacific region, the Gulf, Middle East, and Africa. Most recently, serving as Joint Secretary, overseeing India's relations with Bhutan and Nepal. Before joining the Foreign Service, he earned a Bachelor's Degree in Electronics Engineering. He is married to Namrata, who is a textile conservator, and they have a daughter and son. Join me in welcoming his Excellency, the Consul General, to the House chamber." 10100070.docx 4  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"Thank you, Mr. Consul General. The Consul General has indicated that he'll be here for a little while. If you would like to come down and greet him personally, and take some pictures, he'll be in the well. So, Members, please come down and greet our guest. Representative Windhorst, for what reason do you seek recognition?"

"It is. Please state your point."

"Congratulations on your win, and welcome to your Capitol. Representative Kalish, for what reason do you seek recognition?"

"Point of personal privilege." 10100070.docx 9  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"Please state your point."

"Just a few minutes ago I… I spoke to my son who is studying in school in Jerusalem. And I asked my son, I said, have you heard the air raid sirens? And he said, no, I have not heard the air raid sirens, but my friends who are studying in a different yeshiva have heard air raid sirens. And I just thought that it was important. You know, if any of you called your children and you ever asked that question, have you heard the air raid sirens from rockets being shot over, you would make a statement. So I'd like to make a statement on the floor that… is… the State of Illinois stands with Israel today. Many of our Congressmen and many of our Representatives have made statements recognizing that over 300 rockets have been fired into Israel from Islamic Jihad, and they have targeted hospitals, civilians, and schools. This is pure terror. And this is something that we as a Body should stand up against. We stand against terror, and we stand with the democratic State of Israel. So, thank you."

"Mr. Clerk, House Resolution 599, offered by Representative Keicher."

"Representative Keicher."

"Representative Keicher moves for the adoption of House Resolution 599. All those in favor say 'aye'; those opposed say 'nay'. In the opinion of the Chair, the 'ayes' have it. And the Resolution is adopted. Under the Order of Agreed Resolutions, we have House Resolution 582, offered by Representative Bennett. And I will advise the Body this is a Death Resolution. Mr. Clerk."

"Representative Bennett is recognized."

Speaker Harris: "The Body will take a moment of silence. Representative Bennett moves for the adoption of House Resolution 582. All those in favor say 'aye'; those opposed say 'nay'. In the opinion of the Chair, the 'ayes' have it. And the Resolution is adopted. Mr. Clerk, Committee Reports."

"Leader Willis in the Chair. Rules report, please, Mr. Clerk."

"On page 2 of the program, please, Senate Bill 10. Mr. Clerk, please read the Bill. To… please return that Bill to Second Reading for the purpose of Floor Amendment."

"Representative Crespo is recognized regarding the Floor Amendment, please."

"Thank you, Speaker. The Amendment corrects a drafting error to Senate Bill 1952 by reinstating the provision that would allow the taking of a competency test to work as a paraprofessional in K through 12. Under Senate Bill 1952, which eliminated the need for a basic skills test, and while removing all references to basic skills, they inadvertently deleted this part, too. And this is basically reinstates it back to the School Code. And I ask for its adoption."

"Representative, are you asking for a Floor Amendment 2 and 3, or just Floor Amendment 3?"

"Just… just 3."

"Thank you for clarifying. Representative Crespo moves adoption of Floor Amendment 3. You need to withdraw Floor Amendment 2, please."

"Please withdraw Amendment #2."

"Representative Crespo moves the adoption of Floor Amendment 3. All those in favor say 'aye'; all those… I think he… did you explain Floor Amendment 3? Was that what you just explained, Sir?"

"Yes, I did."

"Thank you for clarifying. Representative Crespo moves adoption of Floor Amendment 3. All those in favor say 'aye'; all those opposed say 'nay'. In the opinion of the Chair, the 'ayes' have it. The Amendment is adopted. Any further Amendments, Mr. Clerk?"

"Third Reading, please. Mr. Clerk, please read the Bill."

"Mr. Crespo is recognized on the Bill."

"Thank you, Speaker. As I explained before, this is basically is a… correcting a drafting error. And I ask for your 'aye' vote."

"Representative Bourne is recognized."

"Indicates he will."

"Absolutely correct, yes."

"Correct."

"The other two requirements."

"Yeah."

"Seeing no further discussion, Representative Crespo to close."

"Just ask for your 'aye' vote."

"The question is, 'Shall Senate Bill 10 pass?' All those in favor vote 'aye'; all those opposed vote 'nay'. The voting is opened. Have all voted who wish? Have all voted who wish? Have all voted who wish? Mr. Clerk, please take the roll. On this question, there are 108 voting in 'favor', 100… I'm sorry, 108 voting in 'favor', 5 voting 'against'. This Bill, having received the Constitutional Majority, is hereby declared passed. Continuing on page 2, Senate Bill 1857, Representative Gordon-Booth. Out of the record. On page 3, Senate Bill 119, Representative Zalewski. Representative Zalewski. Mr. Clerk, please read the Bill."

"Representative Zalewski, is there an Amendment?"

"Yes."

"Please proceed."

"Thank you, Madam Speaker. On Floor Amendment #1, I wish to adopt it. It becomes the Bill. It's a revenue omnibus Bill. I can explain it on Third Reading."

"Would you like to explain the Amendment?"

"It becomes the Bill, which has a number of issues related to revenue clean up." 10100070.docx 17  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"Okay, thank you. Representative Hurley, is this on the Amendment to this Bill? Okay. We'll get to you later. Mr… Representative Zalewski moves adoption of Floor Amendment 1. All those in favor say 'aye'; all those opposed say 'nay'. In the opinion of the Chair, the 'ayes' have it. And the Amendment is adopted. Any further Amendments, Mr. Clerk?"

"Third Reading. Representative Zalewski on the Bill."

"Thank you, Madam Speaker…"

"Please read the Bill. I'm sorry."

"Representative Zalewski."

"Thank you, Madam Speaker. Senate Bill 119 becomes the Bill. It is a revenue clean up from the spring. At the end of spring, we did a lot of things. The chamber was very productive, but over the course of the summer the department, along with stakeholders, found some clean up. The major talking points of this legislation are the retailer… the retailer marketplace fairness, which finally brings us into compliance with the… a level playing field between Illinois remote… Illinois retailers, remote retailers, marketplace facilitators. We clean up any number of issues related to the Motor Fuel Tax. We clean up issues related to who has to file a 1099 if you're an individual taxpayer. We basically tightened up every aspect of the Revenue Code that we needed to do over the summer. I'm happy to answer any questions." 10100070.docx 18  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

Speaker Willis: "On discussion on the Bill, Representative Sosnowski is recognized."

"Correct."

"Yes, it enacts what we intended to enact last June. And it… there's a number of important fixes to what we tried to accomplish. If you'd like I can list them, but if you're comfortable with the fact that they are being corrected, I can leave it there as well."

"Correct."

"Correct."

"Representative Bourne is recognized."

"He indicates he will." 10100070.docx 19  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"Correct."

"Yes, that's correct."

"We… I… we were told that some Members of our caucus had concerns with the nature of that fee so we simply removed it at their request."

"I… I'm told what we tried to accomplish… Avery, I'm told that what we tried to accomplish in this specific Bill were things that were… I don't want to use the word technical 10100070.docx 20  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 in nature because they're beyond technical, but things that we felt were within the confines of a Veto Session vehicle that could survive the scrutiny of 71 in the House and 36 in the Senate. Quite frankly, I'm happy to work with you on the… in the spring on the concern you just raised. It was… in all honesty it was just told to me about your Bill. So, I'm happy to work with you in the spring to try to adjust it, to try to get parity with what you just described with what we're doing in 119."

"Thank you, Avery."

Speaker Willis: "Representative Batinick is recognized for questions."

"He indicates he will."

"There's a couple of things we do to that. So can you be more specific, Mark?" 10100070.docx 21  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"I'm told that what we're doing, Mark, is we're placing a factor, which is an artificial number, with the consumer price index."

"I'm told that we're changing the factor, which is an artificial number, with the consumer price index."

"And it was requested by GOMB."

Speaker Willis: "Representative Reick is recognized for questions."

"He indicates he will."

"Madam… Madam Speaker, could you… I'm having a hard time hearing Representative Reick."

"Shhhhh."

"Always works. I'm told that that's the department's interpretation."

"That's what I've been told. Yes."

"Representative Mazzochi is recognized for a question."

"He indicates he will."

"Which lines, Deanne, are you reading from?"

"Which… you're reading from page 22, which lines?"

"So we're not changing anything in that particular piece of the legislation."

"So…"

"I think what LRB was trying to accomplish there is we were told that we… what was requested of us was a technical fix to the data center legislation, which effectively said for existing data centers, could you be eligible for this credit? And they decided to write subsection… they decided to fix that by including the changes you're talking about… it's paragraph 3, so DCEO requested it and then we… LRB changed it by amending subsection 3."

"I…" 10100070.docx 24  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"Yeah. I… we…"

"It is… I don't disagree that the way they chose to do it is a little quirky, but we… we feel, Deanne, that what it accomplishes is that it captures existing upgrades of data centers for prospective basis and… relative the enactment of the Bill. There's only a way… you can't retroactively give someone the tax credit."

"We… we think you'd have to have made the investment, decided to do the upgrade within that time period."

"Hang on, one second. Stand by."

"Okay. Okay. So we're going to clean this up a little bit, Deanne. What… the existing… the intention of the original Bill was to close the door… quote, unquote close the door, for the January 2020 deadline for the previous investment. However, I guess DCEO was told that there are people… there are companies that want to make an additional investment into 10100070.docx 25  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 the center, and we're giving them this extended window to do that. That's why the paragraph has to look the way it looks."

"Correct. You know that's not… that's not what's going to happen. And yes, you are correct by what you just said."

"And I would just say, this is what happens when the Revenue & Finance Chairman gets overriden and the data center Bill gets in the budget. Because now I've got to clean up all the stuff that I had… I didn't… I was working with. So, I'm just teasing you. I appreciate the questions."

"Representative Zalewski to close."

"I ask for an 'aye' vote. Oh wait, I'm sorry. Madam Speaker, the… the Comptroller asked me to briefly mention that page 484, line 26 and page 485, line 1 reference the Business Services Special Operations Fund. This should reference the Department of Business Services Special Operations Fund. With that I ask for an 'aye' vote."

"The question is, 'Shall Senate Bill 119 pass?' All in favor vote 'aye'; all those opposed vote 'nay'. The 10100070.docx 26  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 voting is opened. Have all voted who wish? Have all voted who wish? Have all voted who wish? Mr. Clerk, please take the roll. On this question, there are 82 voting in 'favor', 29 voting 'against', 1 voting 'present'. Having received the Constitutional Majority, this Bill is hereby declared passed. Continuing on page 3, Senate Bill 460, Representative Crespo. Mr. Clerk, please read the Bill."

"Third Reading. Mr. Clerk, please read the Bill."

"Mr. Crespo on the Bill, please."

"Thank you, Madam Speaker. Last May we passed House Bill 3586, which would require that school districts provide parents with all pertinent information regarding their IEPs at least three days before the meeting. We heard from some school districts that had some concerns in terms of the implementation of the program, so we decided that we were going to amend… this Bill… basically, what it does, is delays the implementation of the program until July 1 of 2020, which allows the stakeholders to discuss and see if there's any improvements we can make to this. And also, would allow the State Board of Education to provide guidance. And I ask for your support."

"Representative Bourne is recognized on this Bill." 10100070.docx 27  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"He indicates he will."

"Thank you."

"Seeing no further discussion, Representative Crespo to close."

"I just ask for your 'aye' vote."

"The question is, 'Shall Senate Bill 460 pass?' All those in favor please vote 'aye'; all those opposed 'nay'. The voting is open. Have all voted who wish? Have all voted who wish? Have all voted who wish? Mr. Clerk, please take the roll. On this Bill, 113 have voted in 'favor', 0 voting 'against', 0 voting 'present'. Having received the Constitutional Majority, this Bill is hereby declared passed. Continuing on page 3, Senate Bill 639, Representative Gabel. Mr. Clerk, please read the Bill."

"Third Reading. Representative… Mr. Clerk, please read the Bill."

"Representative Gabel on the Bill." 10100070.docx 28  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"Thank you, Madam Speaker. This is a technical change. It extends the required adoption date to July 1, 2020, instead of December 2019. This is for a program that will allow children who have lead poisoning to be able to be served in early intervention programs before they show delays."

"Seeing no discussion, the question is, 'Shall Senate Bill 639 pass?' All those in favor please vote 'aye'; all those opposed vote 'nay'. The voting is open. Have all voted who wish? Have all voted who wish? Have all voted who wish? Mr. Clerk, please take the record. On this question, there are 113 voting 'aye', 0 voting 'nay', 0 voting 'present'. Having received the Constitutional Majority, this Bill is hereby declared passed. Continuing on page 3, Senate Bill 667, Representative Guzzardi. Mr. Clerk, please read the Bill."

"Third Reading. Mr. Clerk, please read the Bill."

"Representative Guzzardi on the Bill, please."

"Thank you, Madam Speaker. Thank you, Members. Senate Bill 667 is a measure intended to control the cost of insulin for patients who require it for the treatment of diabetes. Senate Bill 667 would implement a hundred dollar co-pay cap for all Illinoisans who have state regulated health insurance. So, it only applies to a certain subset of the 10100070.docx 29  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 insurance market that the state is legally allowed to regulate. The Federal Government controls in a number of insurance bases, but those areas that we can regulate we'd like to impose this co-pay cap. As many of you know, the cost of insulin has risen dramatically in recent decades. The 30 day supply of insulin now costs, in many cases, upwards of a thousand dollars for people who are paying that entire cost. And of course, many people who have insurance have high deductible plans. And so, they are, for many months, until they reach their deductible, paying the entire cost of insulin straight out of pocket. So, we've heard stories of people rationing insulin, people whose diabetes has worsened, people who have lost their lives because they couldn't afford insulin. This Bill is not a complete solution to the problem of the high cost of insulin, and certainly not a complete solution to the high cost of prescription drugs. We look forward to working on further interventions in this area, but it's a start. For those people who have state regulated health insurance, this Bill will be a start to make sure their insulin is within their reach, that they don't get sick for lack of affordable medicines. I urge an 'aye' vote, and I look forward to any questions."

Speaker Willis: "Representative Thapedi is recognized for questions."

"Thank you, Madam Speaker. Will the Sponsor yield?"

"He indicates he will."

"Representative Guzzardi, we had quite a lengthy discussion about the ramifications of this Bill yesterday in committee. 10100070.docx 30  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"We did."

"I think it would be very helpful if you would identify, and be very clear as to who this actually applies to, with respect to whose insulin costs are going to be capped at a hundred dollars per month. I know that you kind of glossed over it, but if you could be very, very specific in laying out exactly whose costs are going to be capped because every single diabetic that is insulin dependent, they're not going to have their cost of their insulin capped. So would you please be very particular about that."

"Yeah. Unfortunately, that's correct. So people who get their health insurance through their employer, they're on what are called ERISA plans, and these ERISA plans are federally regulated, as are Medicare and Medicaid. And because they're federally regulated, the state is prohibited from imposing this kind of regulation. So, people who get there health insurance through their employer by and large are not going to be covered by this. People with Medicare and Medicaid are not going to be covered by this. It's people… certainly people who have state employee health insurance, which obviously we control, but also people who are buying their insurance on the exchange, those folks are often going to be buying into state regulated plans and they will be subject to this cost cap."

"The other question that I had in committee that I don't think that I really got a direct answer on, and this is at no fault of your own, is that, why is there such a large disparity in the cost of insulin here in the State of Illinois, more specifically, even the United States and 10100070.docx 31  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 abroad? Even our neighbors to the North, the Canadians, are charging much less, apparently, for insulin. Apparently, some countries in Europe are charging much less for insulin. It's my understanding that there are several pharmaceutical companies that are essentially utilizing the same type of insulin, but yet charging different costs. Could you explain how… why there's that disparity?"

"Sure, yeah. The exact same bottle of insulin costs sometimes 10 times as much as it does in the United States as it might in Canada or other neighboring countries. And a lot of that has to do with the way that those countries health insurance systems are structured. That because they have single payer or government run health insurance systems, those systems negotiate with the pharmaceutical companies and use the leverage of the entire buyer pool to drive those prices down. And in the United States, for instance, Medicare, which is our largest government run health insurance system, Medicare is prohibited by Federal Law from negotiating with drug companies on price. So, there are a lot of things that need to get fixed about pharmaceutical pricing in the states. That's a huge one, and that's a Congressional issue. But, because of the way our system is structured, the manufacturers are able to charge considerably higher prices in the United States and use those to make greater profits."

"Thank you for that clarification. My last question is, with respect to Senate Bill 667, as it exists right now, who are the proponents and who are the opponents of the Bill?"

"Thank you. I meant to mention this in my introductory remarks. We have a wide ranging group of proponents. People 10100070.docx 32  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 like the American Diabetes Association is obviously on the front lines of this issue. A number of consumer advocacy groups including the AARP that's been very vocal about this issue. A number of other health care groups who have led up the fight. Citizen Action has been down here and very vocally supportive. A wide range of groups have supported us. And as a result of the Amendment that has been appended to Senate Bill 667, it's my understanding that there are no groups in opposition to the Bill. The insurance industry has moved to neutral as a result of the hard work we've done on this Amendment."

"Well just as a matter of clarification, there are no opponents to the Bill?"

"That is my understanding, yes."

"Thank you. And I urge an 'aye' vote, Madam Speaker."

"Thank you, Representative."

"Representative Demmer is recognized."

"He indicates he will."

"There are… to my knowledge, there aren't."

"Yeah, and you brought this up in committee last night and I think it's something that is worth revisiting. And I'm certainly open to talking to you and others about working on this in next year's Legislative Session. So the cost caps portion of this Bill won't go into effect until 2021, so I think we've got… if we want to follow onto this legislation by requiring, for instance, that insurers not move drugs off their formulary as a result of this Bill, that's something that I'm very open to."

"I suppose they could choose to not cover any number of drugs if they chose not to, right."

"If you don't mind, Representative, just to add something that we also discussed in committee last night. First of all, to reiterate, the Insurance Council is neutral on this Bill. And the insurance industry in examining the Bill's affect in the State of Colorado, said that the Bill would have negligible effects on the insurance market. So I don't that you're likely to see them engaging in sort of radically different behavior than they are already engaging in."

"That's right."

"Yeah, it's the latter. And just to be clear about that, the Attorney General's Office spoke to us about their concerns with the Bill. And they said that they were… they pursue 10100070.docx 35  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 investigations of their own volition and weren't interested in the General Assembly mandating them to pursue such and that they also aren't in the business of making this kind of reporting to the Legislature, generally. They like to conduct their investigations at their own timeline and so on, and so forth. So, we decided to have the department do this work, to use the publically available information and the expertise within the department to provide us with some next steps. As I said, this Bill I don’t think does enough, even though it’s a great first step, and they'll provide us with a good road map forward."

"No. No, it doesn't."

"Members, we have a number of people that want to be heard so I am going to start by putting the timer on. Representative Davidsmeyer is recognized."

"He indicates he will." 10100070.docx 38  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"That's the estimates, yeah. And I got to tell you, I agree with you totally that we're going after a symptom and not the root cause. I think the root cause is the escalating list price from the manufacturers. Representative Demmer is right that there's a whole lengthy supply chain, but the cost at the end of that chain starts by the fact that the list price from the manufactures has gone up a thousand percent. A thousand percent, in the last 15 years. So, yes, this does not address that root cause. And I look forward to coming back here in future years and working with you all to address the root cause of rising list prices from pharmaceutical manufactures. This addresses a symptom, and I think it's a symptom that unfortunately is very urgent for a lot of people and needs addressing right now."

"Well, it's legally challenging for us. As you may recall, a couple years ago I had a Bill in this chamber about price gouging in the generic drug space. And that legislation was struck down in court because they said you're not allowed 10100070.docx 39  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 to tell the manufacturers about pricing because it interferes with interstate commerce."

"So, we're trying to think creatively about how to work on that challenge. But, yes, this is something we can do today, right now for some people in this state who desperately need a medicine they can't afford. So it's what I'm willing to do now and it's what we can accomplish right now."

"It is based on the research available to us, yes."

"I can't speak to the Bills that other Members might bring before this Body in the future. I can only speak to the effect that this Bill is going to have on sick people who need medicine today."

"Thank you."

"I look forward to it. Thank you."

"Leader Harris back in the Chair."

"Representative Skillicorn."

"She indicates she'll yield."

"So… we are introducing this Bill in large part because we were inspired by our colleagues in Colorado who passed legislation to this effect in the spring, and a number of other states have introduced similar legislation since that Colorado Bill passed. I'll tell you that there are also a number of states that already have on the books co-pay caps 10100070.docx 41  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 that are universal across their prescription drug benefits that are state mandated."

"That's a very good question that I don't know off the top of my head."

"Ladies and Gentlemen, before we proceed to next speaker, I just wanted to acknowledge the presence of the Treasurer of the State of Illinois, Mike Frerichs has joined us on the floor. And Representative Mazzochi for five minutes."

"I'd also like to recognize the fact that the Lieutenant Governor of Illinois, Juliana Stratton, has joined us on the floor today. Representative Willis for five minutes."

"Thank you, will the Sponsor speak… yield, please?"

"He indicates he'll yield."

"Representative, you know when you introduced this Bill I was very excited by it. And then, part of that is I have a daughter who is a type 1 diabetic and I am sad that I wasn't able to make the committee meeting yesterday. I heard that there was quite a bit of robust debate on this. But one of the things that comes up… came up I heard from debate was that people said well, people that have diabetes, it's their own fault, they should be able to control it by diet. Was that correct? Was that said yesterday?"

"I don't recall hearing that in committee."

"Oh, good." 10100070.docx 44  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"I hope it wasn't, because I know it's certainly not true of people with many forms of diabetes, including type 1 like your daughter has."

"And those with type 1 diabetes are… do they have an alternative other than insulin?"

"Not to my knowledge, no."

"Right. And what happens if you do not take insulin or the appropriate amount of insulin?"

"Well, Representative, I'm reluctant to bring this up, because I know this is very personal for many people on this floor and who are listening to this debate. But, I spent a lot of time over the last couple of years working on this issue and have spent time with a number of parents and family members who have lost loved ones to insulin rationing because they simply couldn’t afford the medicine that they need to simply to stay alive. And I know it's touched many of us personally, touched many of our constituents, but insulin is like oxygen to people with type 1 diabetes, and without it the health consequences are very severe."

"You're correct. And that is actually one of the things. And as a parent of a young adult, that was my biggest fear once she was off of my insurance. And she is one of those that, unfortunately, has an insurance that has a very high deductible, it’s over $3 thousand a year. Which means the first couple of months her bills for her insulin are skyrocketed. They're absolutely atrocious. And even though she is out on her own and is now newly married, I am still helping her pay those bills. But she's fortunate, she's got me in her camp for her. There are many people that don’t have 10100070.docx 45  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 that. So to the Bill. Yes, this isn’t going to help everybody, but if it can help one or two people be able to afford the cost of insulin, this is what we need to do. We need to do something to address it. We cannot continue to put our head in the sand and ignore what's going on with this outrageous increase in cost. I know… also I have been talking to Senator Durbin and I know that he also is moving a Bill very similar to this through the Federal Government. So then, hopefully, we can have something that goes nationwide to address this. Nobody should have to make the choice of buying lifesaving insulin or being able to afford their rent. This is not a choice we should have in the United States. I strongly urge everyone in this House, especially for those that have family members that are type 1 diabetics that depend upon insulin, vote 'yes' on this. Thank you so much."

"Representative Guzzardi to close."

"Thank you. Thank you all for the robust debate. And I want to just follow on a couple of the points that were made, which is to say that, yes, this Bill does not address the root causes of high insulin prices or high pharmaceutical prices. The root cause of those high prices is the rapacious need for profit of the pharmaceutical manufacturers who are making record profits, quarter upon quarter, who spend twice as much money buying T.V. commercials as they spend researching new drugs. And those companies are charging more and more for insulin every year, and it’s getting farther and farther out of reach for people who desperately need it. So, I look forward… you all know that I started the committee on Prescription Drug Affordability & Accessibility specifically 10100070.docx 46  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 to work on this issue. And I look forward to working with many of you on this issue going forward to attack those root causes of high drug prices. But the opportunity we have with the Bill before us today is to propose a solution for some people that will help them immediately. That will cap these costs so that they’re not in the situation that Representative Willis described of paying thousands of dollars out of pocket for a medication that they need to stay alive. It’s a solution that will affect the lives of thousands of people in this state. It is not comprehensive, I will keep working on this issue, you will all have my commitment to that. But it is a start, and it's a start that we would be remiss in not embarking upon today. So I appreciate the debate and I urge an 'aye' vote."

"The question is, 'Shall Senate Bill 667 pass?' All those in favor vote 'yes'; those opposed vote 'no'. The voting is open. Have all voted who wish? Have all voted who wish? Have all voted who wish? Reick. Wheeler. Mr. Clerk, please take the record. With a vote of 100 voting 'yes', 13 voting 'no', and 1 voting 'present', Senate Bill 667, having received a Constitutional Majority, is hereby declared passed. Representative Jones, Senate Bill 670. Mr. Clerk, please read the Bill."

"Representative Jones."

"Thank you, Mr. Speaker." 10100070.docx 47  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"I'm sorry. Sorry… Third Reading. Representative Jones."

"Thank you, Mr. Speaker. I rise to present Senate Bill 670. Senate Bill 670 is a… an initiate…"

"Representative, I'm going to have to interrupt you again."

"That's fine."

"I got a little out of order. Mr. Clerk."

"Now, Representative Jones."

"And now we're on. Thank you. Senate Bill 670 is an initiative of the Department of Insurance and the National Association of Insurance Commissioners. This Bill allows… creates the Corporate Governance Annual Disclosure Law, which requires an insurer, or the insurance group, no later than June 1 of each calendar year to submit to the Department and the Director of Insurance a corporate governance annual disclosure form that contains information regarding the insurers corporate governance structure, policies, and practices. While this was passed in 44 other states in 2014, this is the first time this Corporate Governance Act will be passed in the State of Illinois. I'm available for any questions."

"Representative Brady."

"He indicates he'll yield."

"Yes, it is correct."

"Thank you."

"Representative DeLuca."

"Thank you, Mr. Speaker. Will the Sponsor yield?"

"He indicates he'll yield."

"Representative Jones, I have one question for the purpose of legislative intent. Does this Bill require farm mutual insurance companies to disclose their corporate governances?"

"Representative, no, farm mutual insurance companies are only subject to Articles 10 and 25 of the Illinois Insurance Code, and any statute where they specifically identified. This Bill, Senate Bill 670, is in Article 8.3, and it does not specifically identify farm mutual insurance company, and it does not apply to them at all."

"Thank you very much. Appreciate your answer."

"Thank you."

"Representative Jones to close."

"Thank you, Mr. Speaker. I ask for a 'aye' vote."

"The question is, 'Shall Senate Bill 670 pass?' All those in favor vote 'aye'; those opposed vote 'no'. Voting is open. Have all voted who wish? Have all voted who wish? 10100070.docx 49  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 Have all voted who wish? Have all voted who wish? Harper. Mazzochi. Mr. Clerk, please take the record. With a vote of 114 voting 'yes', 0 voting 'no', 0 voting 'present', Senate Bill 670, having received the Constitutional Majority, is hereby declared passed. On page 4 of the Calendar appears Senate Bill 718, Representative Williams. Mr. Clerk, please read the Bill."

"Third Reading. Please read the Bill."

"Representative Williams." Williams, A.: "Thank you, Mr. Speaker. This is a very simple cleanup. What we've done is… last year you may recall, we transferred the Drycleaner Environmental Response Trust Fund to the EPA. However in doing so, based on the effective date of the Act, we had some license fees that were expiring at the wrong time, before the transfer would take place. So in order to make sure the monies are transferred appropriately, we simply changed the effective date just for that Section. Happy to answer any questions."

"Seeing no questions, the question is… seeing no questions, the question is, 'Shall Senate Bill 718 pass?' All those in favor vote 'yes'; those opposed vote 'no'. The voting is open. Have all voted who wish? Have all voted who wish? Have all voted who wish? Flowers. Mayfield. Mr. Clerk, please 10100070.docx 50  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 take the record. With 113 voting 'yes', 0 voting 'no', 0 voting 'present', Senate Bill 718, having achieved a Constitutional Majority, is hereby declared passed. On page 4 of the Calendar appears Senate Bill 2104, Representative Zalewski. Mr. Clerk, please read the Bill."

"Third Reading. Please read the Bill, Mr. Clerk."

"Representative Zalewski."

"Thank you, Mr. Speaker. House… Senate Bill 2104 extends the Pharmacy Practice Act and additionally incorporates any number of measurers into the Pharmacy Practice Act that were the product of a long, hard, good task force effort by the Pharmacy Task Force. It addresses anything from the amount of time a pharmacist can work to ensure patient safety, to discontinuing computer systems that discontinue expired medications. I'm proud that we were able to get this legislation done, thanks in part to leadership of Representative Mary Flowers. And I would ask for an 'aye' vote."

"Seeing no questions, the question is, 'Shall Senate Bill 2104 pass?' All those in favor vote 'aye'; those opposed vote 'nay'. Voting is open. Have all voted who wish? Have all voted who wish? Have all voted who wish? Mr. Clerk, please take the record. On a vote of 113 voting 'yes', 0 10100070.docx 51  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 voting 'no', 0 voting 'present'. Senate Bill 2104 is hereby declared passed. On page 3 of the Calendar appears Senate Bill 177, Representative Davis. Mr. Clerk, please read the Bill."

"Representative Davis. Representative Davis."

"Sorry, Mr. Speaker. Ladies and Gentleman, what we have is…"

Speaker Harris: "So, Floor Amendment #2 is offered by Representative Davis and has been approved for consideration."

"Thank you, Mr. Speaker. I move to adopt House Floor Amendment #2. And… do you want me to do them individually or all at once?"

"We have…"

"The… I believe there are two Amendments we'd like to adopt, and one we'd like to withdraw."

"I am told by the Clerk, Representative, #3 is not before us, so we have numbers 2 and 4."

"Okay. Then I move for the adoption of Floor Amendment #2 to Senate Bill 177."

"Representative Davis has moved for the adoption of Floor Amendment 2 to Senate Bill 177. All those in favor say 'aye'; those opposed say 'nay'. In the opinion of the Chair, the 'ayes' have it. The Amendment is adopted. 10100070.docx 52  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 Representative Davis on Floor Amendment #4 to Senate Bill 177."

"Thank you very much, Mr. Chair. I also move for the adoption of House Floor Amendment #4 to Senate Bill 177."

"Seeing no questions, Representative Davis moves for the adoption of… Floor Amendment 4 to Senate Bill 177. All in favor say 'aye'; opposed say 'nay'. In the opinion of the Chair, the 'ayes' have it. The Amendment is adopted. Anything further, Mr. Clerk?"

"Third Reading. Please read the Bill.

"Representative Davis on the Bill."

"Thank you very much, Mr. Speaker. I move… we'll we've already moved the Amendments, so I apologize. So, I'd like to present for you Senate Bill 177, which comprises several changes to a Bill that was previously signed by Governor Pritzker, and that was I believe Senate Bill 534. Senate Bill 177 seeks to make changes to that Bill. And it's a trailer Bill, again, for Senate Bill 690, as well Senate Bill 534, which passed during the prime Legislative Session. Senate Bill 690 covers the Illinois Works Jobs Program, which is part of Rebuild Illinois, the state's first capital program in 10 years. As the state begins to release funds for statewide capital projects, Illinois Works will ensure all residents have access to capital projects and careers in construction… in the construction industry and building trades, and especially for those who have been historically 10100070.docx 53  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 underrepresented in those trades. Illinois Works includes a pre-apprenticeship program, apprenticeship participation goals, and a DCO administered bid credit program modeled after the program that currently exists with the Illinois Tollway. Senate Bill 177 seeks to make some of the following changes. It will allow for Department of Commerce and Economic Opportunity emergency rule making authority in order to more quickly implement the Illinois Works Jobs Program. It'll add a $500 thousand floor for projects eligible for apprenticeship goals. The goal of this floor is to focus attention on bigger capital projects. With the respect to apprentices, we are taking the approach that bigger projects have more personnel, have more opportunities for apprenticeships. It expands the Illinois Works Review Panel from the capital plan by one, increasing the number of legislative appointments, and two, including the additional responsibility of reviewing and evaluating ideas to increase diversity in active apprenticeship programs. Requires the state contracts… it requires that state contracts specify that minority owned businesses must perform a 'commercially useful function' for their work to be counted toward the goals of the program. This change is intended to strengthen state contracts, guard against fraud, and ensure that the very businesses, The BEP Act, which is the Business Enterprise Program Act, aims to promote, have opportunities to do the work they are contracted to do. Additionally, it returns the criminal penalty for minority certification fraud from a Class 1 to a Class 2, so that the state is not dis- incentivizing minority contractors from being certified. It 10100070.docx 54  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 enables the state to accept certifications from Cook County, City of Chicago, and other units of local government with requirements in procedures equaling or exceeding that of the State of Illinois. And it removes the fees required to apply for a waiver from participation goals, which was added by 534. But it leaves in place other criteria added to the waiver process by 534, which requires requesting vendors to establish why a waiver is needed, and likewise requires agencies to review those reasons when determining whether the waiver should… should be granted. Those are, I think, some of the major highlights. With that point, I'd be more than happy to answer any questions."

"Representative Wheeler."

"Indicates he'll yield."

"Absolutely."

"Yes."

"Correct."

"That is what we learned yesterday, yes."

"Right. We talked about that, in particular about the rules process. Knowing that you are on JCAR, I'm sure you will make sure the rules are appropriate to that process."

"Well, while we certainly want to make sure that we're going about this the right way, I think the change from 'shall' to 'may' offers the department a little more flexibility. We know that they're… and the 'shall' or 'may' 10100070.docx 56  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 is in regard to the hearing process. So, initially it was 'a hearing shall' happen. So we changed that to 'may' to give the department the ability to be able to review things appropriately. On some of these they probably can say, yes, the waiver should happen without out a hearing process, and on some they probably say, we need more information. Let's have a hearing so that we can flesh out exactly why you want the wavier to make sure we're making the appropriate decision. I'm sorry… I'm sorry, Representative. Are you talking about with regard to the barring of contractors?"

"Okay. So… so, I think what we're attempting to do there, is again, offer the flexibility of DCEO with regard to looking at a contractor, and instead of just necessarily automatically barring them, some flexibility. Maybe they can't participate for a period of time, or maybe some other type of punishment other than completely removing them. I think one of the things that we have to recognize, at least right now as we walk into this program, there are only a certain number of larger contractors that have the capacity to do these large projects. And we want to make sure, obviously, that they are good actors and that they're doing things the right way. But, we want some flexibility that if we… if it appears maybe they're doing something they shouldn’t… shouldn't be doing, that instead of completely eliminating them, that maybe we might suggest that they don't do any work for a period of time in… with state projects."

"Absolutely. That is…"

"Absolutely."

"Right. That was part of the revision, taking away the cost to apply for a waiver. I think there were some concern about maybe some constitutionality issues with regard to that or some legal issues with regard to that. But, again, the company or the scenario that you just described, that's where the waiver process probably could be helpful so that we don’t punish someone for the reasons that you stated, but give them an opportunity to say, this is why I'm not sure if this should apply to me because I'm not hiring a bunch of people, most of my costs are in products or materials, and we're not going to 10100070.docx 58  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 be bringing on any additional people. But that's what the waiver process should address."

"I don't believe there is anything in this current language regarding timeline for that, but again, that's something that we feel should be addressed or could be addressed during the rules making process to create those timelines. Because I believe your concern was not wanting to hold up projects, you want things to move appropriately as we start to roll out this capital Bill."

"Absolutely."

"We're… you asked that question yesterday and we're going to see if…"

"…we can get you an answer to it. I think yesterday we talked about it being one-time because we're talking about being able to help community-based organizations that help with the pipeline issues. And so, I think my feeling was that it would be just the one time, and once we get organizations up and running, obviously there's other opportunities for them to obtain funding to be able to continue this type of work, but then we also acknowledge yesterday that our pathway into apprenticeship programs is also through the companies as well. So, to the extent in which we can help create the pipeline and make people available, then the companies that participate in these projects have the opportunity to acknowledge individuals that are out there and help bring them into the program as well. So that's why we think it's one time, but admittedly, Representative, we’re not a hundred percent certain."

"Absolutely. That is correct."

"Okay. Very, very quickly we're…" 10100070.docx 60  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"…as we're learning and trying to answer the question that there is very little opportunity in state budget for continuing appropriations, this is… so that's why we're probably feeling that this is a one-time appropriation."

"That is correct. And I appreciate your acknowledgement about how we're going to work together to make sure we’re accomplishing exactly what we want to accomplish and that it’s beyond just the idea of we know there's money out there for projects and we just want to start spending money. You know, we want to help Illinois residents. We want to help Illinois companies. We want to provide as much opportunity as possible for our residents and give them the ability to work on these kind of projects. So again we will be looking at this ongoing. And again, as I shared with you yesterday in committee, I shared with the Governor's Office, when we discuss the changes to the Bill that, upon review, we reserve the right to come back even next year and make changes to this and we expect their support in making those changes when we find… when we find that we need to make those changes." 10100070.docx 61  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"Thank you."

"Representative Davis to close."

"Thank you very much, Mr. Speaker. Representative Wheeler. Representative Wheeler. So on the appropriation we do feel that it’s one-time, and the reason why we removed the sunset just to make sure we have enough time to get all the projects 10100070.docx 62  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 moving, get everything moving. So, again, I want to thank Representative Wheeler for the conversation we had in committee yesterday, as well as his questions on the floor. I am one of those people that is consistently looking for ways to increase participation on projects. I think this Bill helps move us in the right direction, absent of mandating certain things, this helps move us in the right direction. And I'm always sensitive… sensitive when we start walking back certain things that we did because it looks like they were weakening something. Well, sometimes we do need the flexibility to be able to move things forward. And what we have here, in Senate Bill 177, is the flexibility we need through emergency rule making, and the right conversation in having sensitive Representatives, particularly on the other side of the aisle, who were willing to work with us to accomplish these goals. I think this is moving us in the right direction, and I ask for your support."

"The question is, 'Shall Senate Bill 177 pass?' All those in favor vote 'yes'; those opposed vote 'no'. Voting is open. Have all voted who wish? Have all voted who wish? Guzzardi, Mayfield, Mazzochi, Meier. Have all voted who wish? Mr. Clerk, please take the record. With a vote of 82 voting 'yes', 32 voting 'no', 0 voting 'present', Senate Bill 177, having achieved a Constitutional Majority, is hereby declared passed. Mr. Clerk, on page 4 of the Calendar appears Senate Bill 1300, Representative Hoffman. Mr. Clerk, please read the Bill."

Speaker Harris: "Mr. Wehrli, for what reason do you seek recognition?"

"And do you believe… how long do you believe you will be?"

"Republicans have requested a caucus. They will caucus immediately. The Republicans are in Room 118. Democrats will sit quietly for half an hour. The House is in recess to the call of the Chair. The House will come to order. Mr. Clerk, Committee Reports."

"So, Members, returning to page 4 of the Calendar, Senate Bill 1300. Mr. Clerk."

"Representative Hoffman on Floor Amendment 3."

"We will withdrawal Floor Amendment #3"

"Mr. Clerk." 10100070.docx 64  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"Representative Hoffman on Floor Amendment 4."

"Withdrawal Floor Amendment #4."

"Mr. Clerk."

"Yes…"

"Representative Hoffman."

"Thank you, Mr. Chair… or Mr. Speaker, Ladies and Gentlemen of the House. Floor Amendment #5 contains the substance of the pension consolidation Bill. I would ask that we adopt Floor Amendments #5, #6, and #7. And if… it's okay, to debate the legislation on Third Reading."

"Seeing no objection, all those in favor of… Representative Hoffman moves for the adoption of Floor Amendment 5 to Senate Bill 1300. All those in favor say 'aye'; those opposed say 'nay'. In the opinion of the Chair, the 'ayes' have it. And the Amendment is adopted. Mr. Clerk."

"Representative Hoffman."

"Yes, Floor Amendment #6 would remove the opposition of the Illinois Municipal League. I ask for its adoption."

"Representative Hoffman has moved for the adoption of Floor Amendment 6 to Senate Bill 1300. All those in favor say 'aye'; the opposed say 'nay'. Opinion of the Chair, the 'ayes' have it. And Floor Amendment 6 to Senate Bill 1300 is adopted. Mr. Clerk." 10100070.docx 65  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"Representative Hoffman."

"Floor Amendment #7 is a provision that should've been included in the underlying Bill. It is… has no cost to any of the state funds. And I would just ask for its adoption. We can debate it on Third Reading."

Speaker Harris: "Seeing no objection, the question is… Representative Hoffman moves that Floor Amendment #7 is… to Senate Bill 1300 is adopted. All those in favor say 'aye'; opposed say 'nay'. In the opinion of the Chair, the 'ayes' have it. And Floor Amendment #7 is adopted. Mr. Clerk."

"Third Reading. Please read the Bill."

"Representative Hoffman on the Bill."

"Thank you, Mr. Speaker, Ladies and Gentlemen of the House. Senate Bill 1300, as it is amended, is a result of the Pension Consolidation Feasibility Task Force which was convened by the Governor in February 2019. It produced a report that made recommendations regarding the consolidation of police and fire funds throughout the State of Illinois. This is not exactly a reflection of the entire report but is the subject of negotiations between the organizations that represent policemen, the Fraternal Order of Police, the PBPA, the Metropolitan Association of Police. The Illinois Federation of Firefighters was also part of the negotiations, as was the Illinois Municipal League. As a result of these 10100070.docx 66  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 negotiations, it was… it became this Bill. This negotiation resulted in the recommendation that the investment arms of the police and fire local funds, about 650 of them, would be consolidated under one new board… or two new boards, one for fire, one for police. And what would happen is eventually $8 billion of assets for the police and $6 billion of assets for fire would go into… 2 funds, one for police, one for fire, for the purposes of investments. The negotiation centered around the makeup of the boards. Eventually, the Fraternal Order of Police and I believe other… the police organizations, the Illinois Federation… the Illinois Firefighters Association, as well the Illinois Municipal League, reached an accord on the board makeup of these individual funds. The Police Officers Pension Investment Fund would be created, as well as the Firefighters Investment Fund. It was also agreed that the local police and fire funds would remain in place as they currently exist. They would not be doing investments any longer as these new state funds would be doing those investments. However, they… what they would be doing is they still would be doing determinations on disability, on benefits, on causation, and other non-investment related matters. This would result in, I believe, an increase in the investment income substantially by using economies of scale, by putting the resources and assets together, police and fire funds, and by making investments that are prudent and are prudent under the Illinois Statute. In addition, this would contain some Tier 2 fixes that were sought by police organizations as well as firefighters. It would contain minority investment language that is very specific and is 10100070.docx 67  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 consistent with the other state retirement funds. It would also require separate accounts for every single municipal fund that is fire or police fund that is sent to be used and invested together. These funds would be kept in separate funds and they would make sure that the… they would not be comingled in any way other than for investment purposes. It provides for the training for these local fund trustees. It used to be 32 hours when they first started, now it's 18 hours 'cause they won’t be doing investments. And it is… it would be 8 hours yearly. There would also be an additional 4 hour training for the local trustees so they could learn their responsibilities and what they need to do in order to comply with this new Act. In addition, there are provisions that are… were contained under the underlying Bill that would be revenue neutral to the funds that would clear up some Tier 2 issues. With regard to transition, it was decided that from a list that will be provided to the Governor from the organizations that represent police and respectively the organizations that represent fire for the 2 funds, that he would pick individuals who would be the transition part of the board. The Municipal League will provide their municipal members and so on and so forth with the… with retirees. That would last for 1 year. And within that 1 year there would be an election to elect the new Members of the board. The Bill sets out the makeup of the board, and I think that is a general overview. And I know that you will have several questions regarding the Bill of the… what is contained. Now, here's what I believe. I believe that this is historic and has been attempted to be done for nearly 4 years. It is our 10100070.docx 68  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 intent to make sure that the interest of all parties are taken care of in this legislation. I believe that if you are a municipality, if you are a mayor, you want to make sure that your property taxes are kept at a minimum, you want to make sure that your pension funds are adequately funded. If you are an annuitant or you are an individual who is working and paying into the system, you want to make sure that those retirement funds are solid and are going to be solid for a long time. I believe that this Bill meets all those goals and that is why I believe we should have a favorable roll call."

"We have a number of Members who wish to speak on this issue, Ladies and Gentlemen. So, we'll be using the five minute timer. Representative McSweeney."

"Indicates he'll yield."

"Are you making reference to the Tier 2 changes?"

"It's estimated over the next 5 years that the enhancements could cost all funds 75 to 95 million dollars over 5 years." 10100070.docx 69  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"And I assume, Representative, what you're… what you are making reference to is what would be the increase in investment proceeds."

"That would be between 820 million and 2.5 billion dollars over the next 5 years."

"Representative Brady is recognized."

"Indicates he'll yield."

"It is my understanding that the Fraternal Order of Police, the Illinois… the Independent Firefighters of 10100070.docx 70  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 Illinois, the Metropolitan Association of Police. I believe that the other organization, PBPA, would be neutral. And I think that the Illinois Public Pension Fund is also okay with the Bill, as well as the Illinois Municipal League. I think that there are a lot of other organizations that are in favor of the Bill, but those are the major ones that were part of the negotiating process."

"I have."

"Well initially, before the latest Amendments, before Amendment #5… and I think, on the mayor's side before Amendment #6… there was some concern. However, many of the problems that were… they were bringing up to me have been addressed in not only the board membership, but also you have to understand what we agreed to is that a supermajority Vote will have to be taken on this… on these boards in order to make any type of decision that basically would affect the amount of money that the municipality may have to pay into these funds. So, when I talk to police and fire individually in my district they, after understanding that this will increase the amount of money that will be available for their pension funds and the determinations of benefits as well as determination of disability and causation and other things will still remain at the local level, they understand it and I believe are in support of it. In addition, I think the fact that the Fraternal Order of Police and other police organizations really didn't agree to the Bill until the end 10100070.docx 71  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 of last week, I think that there was some information that was put out there prior to the agreement that some of the rank and file may not understand. I think now the vast majority do understand and the ones I've talked to have indicated their support."

"No, it is… it is exactly the opposite. This would make sure that the integrity of governance of the fund is by the individuals who are paying into it. They'll be elected. There will be individuals from the municipalities. They will eventually be elected, or their ex officio members. And then there will be individuals who are from the retiree community who are receiving funds. This is much the same way as we do for TRS, but we're using local… local individuals to run the funds, not the state."

"So, it's my belief that every day that goes by that we don't move forward with this, it's going to take some time to transition, that we're losing a significant amount of money for these pension funds. And that money is being lost 2 ways. First, it's being lost in not receiving as much investment income by allowing them to make more prudent investments and larger investments, to be frank. And it's also being spent in administrative costs that are being spent across the 650 10100070.docx 72  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 funds. This… it is estimated will reduce administrative costs across the 650 funds by about $30 million a year when this is fully implemented."

"There would be… nothing would change at all except for the few Tier 2 fixes that are in the Bill."

"Representative, your time has expired. If you can bring your remarks to a close."

"Representative Batinick for five minutes."

"He indicates he'll yield."

"The consolidation, that is correct."

"Correct."

"It's specifically prohibited."

"And I agree with you that the concerns that I have had or have heard, many of them are around that issue. And the Bill specifically indicates that that is prohibited. That each fund will be separate and distinct, however, the investment returns will be shared at a pro rata basis."

"There was one… they call them cogs, I believe. One cog that indicated today that they were either going to be neutral or opposed. I have not heard since then."

"It's my understanding, yes."

"Yes, I was just… yes, they all are in support."

"Yes."

"Okay."

"Representative West."

"Thank you, Mr. Speaker. To the Bill. It is… this is one of these pieces of legislation, of course, that we… received a month ago. That, though we may be excited, we have to ensure that our police and fire and our local municipalities are on board. I had the opportunity to speak to both. And I want to put on record what Jeff Nielsen, who is the president of the Rockford Police Pension Fund, and a former chief of police, what he said… simply put it in on record and then I am done. 'The Rockford Police Pension system is one of the largest in the state which assets… with assets nearing $200 million. However, we are limited as to what we may invest in by state statute. It has been said that many police and fire pension systems lack the knowledge to properly handle their investments. Rockford is different. Between our 5 unpaid members, our board has approximately 60 years of experience administering this fund, and we have the assistance of an outstanding professional investment advisor. For the last 10 years we have averaged about a 7.5 percent gain on our investments annually, while adhering to the Illinois' mandated restrictions. We believe that by giving us a chance to move beyond those investing restrictions, our gains would be even greater. There's also the possibility that the state will impose actual assumptions on the consolidated fund that do not reflect the demographics of the Rockford fund or the 10100070.docx 76  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 investment returns we have attained. Choosing appropriate actuarial assumptions is a critical part of determining the annual contributions to be made by the city to assure the funds long term viability. Imposing an appropriate actuarial assumptions could have a devastating effect on the City of Rockford and its taxpayers by requiring the city to put millions more in the fund. While I understand that the Governor wants to address the pension crisis and feels that a pension consolidation Bill is a great step in the right direction, massive legislation such as this deservers a great deal of consideration and input. It should not be rushed through in a Veto Session where it will get none. I strongly believe that pension funds, taxpayers, cities such as Rockford, and officers will be much better served by waiting until the spring Legislative Session. That all parties have time for input and discussion to confidently develop legislation that works for all.' Now, I had a discussion with him on today and as you can see, we're not waiting until spring Legislative Session. But I ensured him that his voice will be heard. So, thank you for hearing his voice."

"Representative Skillicorn."

"He says he'll yield."

"Yes. These other changes have nothing to do with the consolidation. For instance, they were part of the underlying Bill. They're… it was an alternative formula that was in existence for basically law enforcement types as well as 10100070.docx 77  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 firefighters in the state funds, not these funds, not the police and local… police and fire funds. And what we did when we did Tier 2 is we raised their retirement age to 67, okay. This would move it back to 60, however, the employee would have to pay the interest and the contribution. And according to the funds, they would be revenue neutral and they are neutral on those provisions. This has nothing to do with the police and fire, it had to do with the underlying Bill."

"Correct."

"It's my understanding that it's not the COLA. It's the pensionable salary cap that would go… there would be an adjustment to."

"I have the dollar amount for what we believe the changes to the police and fire Tier 2 would be total. And that's between 75 million and 95 million over 5 years. However, by putting the investments into these funds and getting a greater return, that would bring in 820 million… between 820 and 205… 2.5 billion." 10100070.docx 78  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"Yes. Over the next 20 years, the task force estimates consolidation will result in between 3.6 billion and 12.6 billion in increased investment returns."

"It… this was not… will not be considered a state body. It is totally independent from the state, therefore, it cannot be swept. And I believe in the Bill it indicates the state cannot sweep it."

"We did not make any changes with the Comptroller's ability to intercept funds. That's all the same, so the local board will make that decision. The local board will make the decision."

"Correct."

"You just ran out. Yes, could you bring your remarks to a close? Representative Reick yields five minutes."

"Representative Manley."

"Will the Sponsor yield?"

"He indicates he will." 10100070.docx 80  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"Representative Hoffman, first of all, I want to thank you for all your work and working really hard over the last several weeks to get Amendment after Amendment and try to address many concerns that all kinds of different parties had. I want to ask you a few questions though because… kind of echoing the sentiments from the letter that Representative West read, my district police pension boards are very concerned. They think that this has been rushed through. And I guess I can't blame them. You know, I try to tell them… and I think this is a greater problem that we all have to realize exists, that people are skeptical when we say we're going to do something, that we're actually going to do it. And people think that when we say the funds can't be swept, even if it's in law they think somehow we're going to figure out how to do that. So I sympathize with their skepticism. So I'm going to ask you a few more questions. If other people have asked these questions, I apologize, but I really just need some clarity here. And then I have a couple suggestions. If the local municipalities do not put in their share what happens?"

"It's my understanding that what the current law is with regard to intercept, where the Comptroller could intercept other state funds that would otherwise go to that municipality, that can be triggered and put into the fund."

"Okay. So there's a mechanism in place that would force municipalities to put in what they're supposed to."

"Or the funding would be intercepted from the Comptroller."

"Okay. What happens if we have a bad year? God forbid, everybody knock on their desks, knock wood that we don't have 10100070.docx 81  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 a downturn in the economy. But let's just say, one of the funds that is not as well funded as others experiences the… their proportionate share of a downturn in the economy. It's at the point where… and there's a lot of them that are severely underfunded, correct? So, let's say the… their proportionate share of the loss causes them to literally have no money left. What happens then?"

"Well, first of all, let me just make the point that the whole concept of providing the greater… the ability to get greater rates of returns also means in downturns you would have less of a loss. So, it's…"

"So let's just…"

"…very difficult to look at it in a vacuum because what we're saying is, you're still going to have your fund. You're still going to have your fund, however, for the purposes of investments and investments only, we're going to use the buying power or the economy as a scale for investing all the money together."

"I love all of that but I guess my real concern is, if a fund, because of their proportionate share of the loss, comes out in the red, are the other funds going to be used to bail them out?"

"No."

"So, there's no bail out? This is not a collect… this is not all for one and one for all thing. We're all going to be siloed off in our own funds. They're going to exist independently but used collectively as one way to invest with more power." 10100070.docx 82  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"And it's very specific that you can't use the funds from one fund to make up for a loss or insufficient funds in another. This is only for purposes of investment."

"Okay. And I guess the last thing that I was hoping that we would get accomplished… and this is why this going so quickly we weren't able to think about these things. But I really… my local pension boards, we talked, we kind of brainstormed, and what they wanted to do and what I thought was a good idea and I mentioned to the Governor was, why can't we have an opt in? So those funds… let's just use 50 percent. All those funds that were underfunded, 49 percent or less would have to be part of it. Those that were over 50 percent could opt in or opt out. Why didn't we do that? And I know you're going to say it's because we're stronger together. The more money we have, the more money we can make. Was that even any part of this negotiation at all? Did you discuss that?"

"It was brought up. However, I think it was determined that actuarially, as well as the fact that many of these funds can't make the same type of investments that provide higher yields with lesser risk, that it would be better to… for investment purposes to have all the funds together whether it be police or fire."

"Representative, your time has expired can you bring your remarks to a close?"

"Thank you."

"Representative LaPointe."

"Thank you, Mr. Speaker. Will the Sponsor yield?"

"He indicates he'll yield." 10100070.docx 83  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"To the Bill. I am very, very pleased to support this Bill, which, I realize, is a result of so much work and negotiation that started long before I was a Representative of the 19th House District. In my district in particular I represent a lot of police and firefighters, both in the city and in the suburbs, so this has a direct impact on my district. I believe that this Bill represents very smart consolidation and a very important step forward for pension parity for down state and suburban first responders. However, we do still have a lot of work to do to ensure pension parity for Chicago. I want to thank the Governor and his office in particular for listening to some of these concerns that were raised. And I look forward to working with the Governor and Mayor Lightfoot in the future to ensure that we do get fairness for our Chicago police and fire. Thank you for your leadership and shepherding of this Bill."

"Representative Wilhour."

"Indicates he'll yield."

"I don't believe a full one has, but the task force that was… that the Governor convened that began in February of 2019 used experts to come up with the analysis, the cost, as well as the perspective returns on investment."

"I think, Representative, whenever you hear information regarding the pension debt it doesn't deal with the local funds. They're only talking about the state's pension debt. This is not a state obligation."

"This is not… this is a local obligation and we're not changing that."

"And can I say something to that? I'm not saying it is. I'm saying what this… this is a good step forward for these police and fire funds. But, I'm not saying it is in any way fixing the… our pension problem."

"So, let's talk about… I think… I don’t want to confuse… that's a question that, that I don’t want to get confused in everyone's minds. The Tier 2 issue with regard to police and fire… with regard to police and fire, and these funds that we're consolidating for investment purposes, they would have to pay, I believe… they would receive these Tier 2 benefits and make them to… back to Tier 1 as a result of the type of 10100070.docx 85  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 work that they do, police and fire. The other ones that are in the Bill and were in… many of which were in the underlying Bill, require that the employee pay the employees and employee interest as well as all the interest and in some cases, the employer and employee. So the funds would say in those cases, in those instances with the state, they would be revenue neutral."

"Representative, your time is expired. Could you bring you remarks to a close?"

"Representative Gabel."

"Thank you, Mr. Speaker. To the Bill. First, I'd like to thank Representative Hoffman for carrying this Bill and working on this Bill. The municipalities in the district that I represent have been very concerned about increasing costs of fire and police pensions and the impact on their budgets. 10100070.docx 87  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 Every year I go meet with all of them and every year they tell me that this is one of their major concerns. And this Bill will allow them to both reduce their administrative costs and increase the money they earn on their pension investments. I know there were some issues just yesterday with the Illinois Municipal League, but my understanding is that those have been resolved with Amendment 6, and that the Illinois Municipal League now is supporting the Bill. So, I believe that this Bill is a win-win and I urge an 'aye' vote. Thank you."

"Representative Davis."

"Thank you, Mr. Speaker. Will the Sponsor yield?"

"He says he'll yield."

"So, Representative, you and I have had some conversation with regard to this Bill and it's not really a function of whether I agree or disagree that pensions should be consolidated or not. You know, obviously, you're working on trying to make that happen. You've gotten various agreements and things like that from other groups but… like you probably aren’t familiar with me relative to other types of opportunities. The question always becomes how does… how do minority companies play in this? And so, earlier it was shared with me about some current law that exists relative to this type of work. But obviously we're doing some different things so, is there any different… anything different from the language that currently exists for emerging managers that's changing with this particular piece of legislation?"

"Yeah, so it's my understanding that it's local funds… there are some requirements for minority participation but 10100070.docx 88  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 it's not enforced. And so, what we did is we took… for the purposes of this… these investment funds we took the current language that is in all of the state pension funds and it adopts the whole concept of qualified investment manager that would ensure that, I believe, 20 percent of the consolidated funds would have to be… you would have to utilize minority owned businesses, women owned businesses, or business owned by a person with disability. And those definitions that are contained in what I provided with you, is…"

"Well here's probably… based on what you just said, the clarity that I need. You said 20 percent would 'have to be'. That's 'shall', is it that they 'may'?"

"I apologize, you're correct."

"And I think that becomes the challenge is that we put language in there, but how do we… what can we say or do relative to ensuring that emerging managers, and I have the definition based on what you gave me earlier, are going to truly that opportunity? Because some would argue that with all of the smaller funds, that that creates the opportunity for them to be able to kind of get their foot in the door and start this kind of work as a company. And now that we're kind of merging all of these funds and they'll probably be managed by larger companies, how do we just make sure that these emerging companies, these smaller companies have… indeed have an opportunity to be able to participate in this?"

"Well, under the definition… first of all, I pledge with… in committee with Representative Ford, and I hope that you understand that I believe that we need to make sure that these are not just goals, that they eventually become a reality, 10100070.docx 89  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 okay. What… the way the definition is under qualified investment manager or emerging investment managers, it indicates that if they have a portfolio between 10 million and 10 billion. Now, I'm not in that industry but I would think a portfolio of 10 million for an investment manager is fairly small."

"Okay, but the 20 percent is, again, what’s already in law. So, that's what we're trying to find out. Does this Bill change anything?"

"I don't believe that the 20 percent was in law for the local police and pension boards. So, what this does is it says now when we have the consolidated assets for the purpose of investment, we're taking the 20 percent as well as the other language that is in every state pension board that… and we're adopting it for these two boards as well. So, if there needs to be changes, I'm certainly willing to work in the future with you. But that was the intent… it was… the intent is to make sure and be very specific to address Representative Ammons' points in caucus, making sure it's very specific in this Bill that what we do for all other state funds are now going to have to be done for this consolidated local fund."

"Well, I'm being told that we're not sure if that's correct relative to the 20 percent, whether it's already there verses, and… so, we probably need to sit down and be able to go through this. And so, what I'm simply asking is that if this Bill passes, then we need to be able to address that immediately and work on another Bill. I don't want to call it a trailer necessarily, but another Bill that maybe works to address that type of effort immediately to make sure, because 10100070.docx 90  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 again, we're talking about millions and millions of dollars and we want to make sure that emergent investment managers, which again, by definition includes minorities, and women, and others, really have an opportunity to do this work. And while we're not certain about that, currently…"

"Representative… Representative, your time is expired. If you could bring your remarks to…"

"Can I bring my remarks to…"

"Yeah."

"Okay. So, while we're not clear about that currently, then we're going to need to fix this moving forward and create those opportunities for those types of companies. Thank you very much, Mr. Speaker."

"Representative Murphy."

"We will note your intentions. Representative Morrison."

"Representative Spain."

"Representative Stava-Murray is recognized."

"Thank you, Mr. Speaker. Will the Sponsor yield?" 10100070.docx 94  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"He indicates he'll yield."

"So I've been asking a lot of questions of the Governor's staff, which I want to just be thankful to the Sponsor for your work and the team that's working on it, being so responsive, but is there a total estimate of what the transition costs are going to be?"

"No. I can tell you that in the Bill is an amount of $7.5 million from the Illinois Investment Finance Authority for each of the funds. And that $7.5 million is a loan that has to be paid back within 30 months with interest. We believe that that amount will take care of the transition cost and will then be paid back when all… when the assets are together and are being invested into 1 fund."

"Okay. And is there a limit to what the loan rate will be? Or is there an intent for there to be some sort of limit on the loan rate?"

"My understanding that the interest rate will be agreed upon by the trustees of the fund."

"And is there any oversight of that, knowing that these will only be appointed trustees when that decision is made and not the elected trustees?"

"Well, I think the law says that they have to pay an interest and they're going to be voting Members and they're going to have to run this board… this retirement board or pension board. They're going to have to run that the same way anybody else is, which means they're going to have a fiduciary duty, the fiduciary council. They're going to have to make sure that they oversee the funds in a prudent manner that 10100070.docx 95  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 investments are made prudently and that they comply with laws regarding pensions."

"Got it. So… and what fund is the money that's going to be loaned to the local pension funds coming from? What's the source of that money?"

"Yeah, so the Illinois Investment Finance Authority… Illinois Finance Authority oversees, I believe, it's $120 million right now and in a variety of items, a variety of funds. It'll be pulled from all those and the 7.5 million per fund will be taken and it will be taken across the board and then it will be given… loaned to the new entities. And then those new entities must pay it back within 30 months."

"Okay, got it. And so will there be any impact on any existing programs or things that could've been funded from this?"

"I'm told by the… we've been told by the executive director that it'll be spread across the funds and will not have an impact on existing programing."

"Okay. Thank you. And in terms of the… in terms of the restrictions that are currently on pension funds, are there any restrictions that would apply to the new consolidated funds to prevent something like, lots of super risky investments and subprime mortgages before the 2008 situation happened or something… anything like that?"

"The same type of restrictions that will be… that are part of all of our investment decisions for our other pension funds would be the same ones for this. And there is obviously always a fiduciary obligation so that you can't… you must act as a fiduciary for these funds. One of the items that is 10100070.docx 96  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 contemplated is the fiduciary council must be a supermajority vote, so that all sides have to get a say in who the fiduciary council is because we want to make sure that it's an independent person and not part of one faction or another."

"And in terms of the selection of the bank or the financial entity that will manage these funds, does that also require a supermajority or?"

"So, the items that are specifically… and it's specifically in the Bill that would take a supermajority vote for… is for the adoption of the actuarial assumptions. And the understanding why that is so important is that could affect whatever the local municipalities have to pay in. The selection of the chief investment officer, the selection of the fiduciary council and consultants as are defined in 1- 1.5 of the Pension Code. It also needs a super majority for the adoption of rules for the conduct of election of trustees and a supermajority for the adoption of asset allegation policies and investment policies."

"Representative, your time has expired. Can you bring your remarks to a close?"

"Thank you. I would have hoped that we could've had an additional four to eight weeks to consider all of the data, but the vote is today and I am in support of pension consolidation, so I urge others to support as well."

"Representative Weber."

"He indicates he yields."

"I think that that would be up to the local board. They mayor and the local board."

"I think… so I'm not trying…"

"I'll just tell you how I understand it. The increase in investment income will then be able to reduce the amount that is needed to be paid in by the municipality, which then could reduce property taxes. Now, the reduction in property taxes is going to be… that determination will be made at the local level."

"I think the issue would be, just because you realize higher investment income, it may only be 50 percent funded." 10100070.docx 98  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"So, if you're 90 percent funded or 95 percent funded then I think you would have a very good argument."

"I'd look at working with you on it, yes."

"Representative Wheeler."

"He indicates he will."

"Well, a couple things. First of all, when… someone earlier discussed the issue of special interests. But you have to understand, police and fire, who pay into this, this is their retirement, this is their money, right? So, I don’t view a special interest as a city who is paying into this fund. What I was concerned about and the reason I got involved is I wanted to make sure that the historic makeup of the local board, which is two, two, and one, two people that are employees, two people that are from the municipality, and one retiree, didn't change. And some of the early proposals changed that, I thought, dramatically. So, this basically indicates in the legislation that we're going to have an equal… the same proportion. Whether it's under police or fire, it's going to be the same proportion of the number of employees and retirees, which would be five, and the number of people in the municipality, which would be four. Now, without that… that's generally what it'll do. It's different in each police and fire, so. But it ends up being five to four. But what we did in compromise with the municipalities and the IML, initially, is we would have these items, have a supermajority vote that would affect actuarial assumptions, would affect investment income, would affect how much the municipalities put in, it would take a supermajority vote. And so that was the compromise. So I would say to the person who is concerned, who is a police or fireman who is concerned about we're taking their funds, we're not. Their funds are still going to be together, they're just going to be comingled 10100070.docx 100  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 for the purposes of investment. They’re going to be as safe as they were today. As a matter of fact, we're going to make sure that they're actually stronger because they're going to have a better investment income and, in addition to that, the people who represent you are going to have the same proportional say as they do in the local boards. And we didn't take away the local boards authority on benefits, the local board's decision making on disability, that was not taken away. So, that's what I say to the people who've called me."

"That was way better than what I said. Thank you."

"I should've talked to you earlier."

"Representative Hoffman to close."

"Well, thank you, Mr. Speaker, Ladies and Gentlemen of the House. It certainly was an interesting debate. This is not something new. This has been worked on and proposed for nearly 40 years. I get why some people are concerned or are reluctant and why some funds and organizations are concerned or are reluctant. But I can tell you that the intent of the legislation is to preserve and respect the important role that local pension boards play. It's beyond… and this is beyond the investment… the investments of these pension funds. One of those roles, which we do not… which we do not 10100070.docx 101  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 intend in any way to diminish, is making benefit determinations. So, when you ask me what is in it for the person who is from police and fire retiree, I would say, that's the case. Also, as an example, currently Article III police pension boards establish whether an injury is a catastrophic injury under the Public Safety Employee Benefits Act by virtue of issuing a line of duty benefit. That was established in the Krohe v. Bloomington case. Additionally, under Cronin v. Skokie, the pension board also commonly determines causation and whether the disability arose out of one of the statutory criteria for benefits under the Public Safety Employee Benefits Act. For instance, whether the disability… disabled officer was responding to what is reasonably believed to be an emergency. So, don't be concerned of the determinations of the local board. This is simple, and it was said very well by Representative Wheeler, what we are doing is we're taking the funds, we're making them stronger by putting them together and we're making them… allowing them to have economies of scale and get better investment income, which is going to reduce the burden on the municipalities. They will be safe, reduce the burden on the municipalities, and possibly relieve some of the upward movement when it comes to property taxes. I do want to make one thing clear. It's my understanding with the… and I may have misspoke or I had misinformation, I don’t think I misspoke. The people that are in favor of this, are the FOP, the Police Benevolent Protection Association, it is unclear and I don't… I'm not sure that the MAP, Metropolitan Association of Police, are actually in favor of this, so I don't want to say that they 10100070.docx 102  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 are and misrepresent. Also, people from the City of Chicago, who like me can care about the Chicago Firemen, Chicago Police, they are no longer opposed to the Bill. And we made a commitment to them that we're going to work with them in the spring to try and address some of the Tier 2 inequities and work with them because of all of the hard work and the life risks that they take. So let me just say this, I think it's really simple. This is historic. We're going to be able to solidify these pension funds, it makes sense. I believe the Governor's Office has done a great job of putting this together. And I want to commend them and also commend all the staff on both sides of the aisle, as well as the Governor's Office, particularly Mary Cahill for all the work that she did. I ask for a favorable roll call."

"The question is, 'Shall Senate Bill 1300 pass?' All those in favor vote 'yes'; those opposed vote 'no'. The voting is open. Have all voted who wish? Have all voted who wish? Have all voted who wish? Mr. Clerk, please take the record. With a vote of 96 voting 'yes', 14 voting 'no', 3 voting 'present', Senate Bill 1300, having received a Constitutional Majority, is hereby declared passed. On page 3 of the Calendar appears Senate Bill 659. Mr. Clerk. 659, Representative Willis."

"Representative Willis on the Floor Amendment 1." 10100070.docx 103  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"I don't believe we need Floor Amendment 1. Only 5 and 6, please."

"So you withdraw…"

"I withdraw Floor Amendment 1, please."

"Mr. Clerk."

"Representative Willis."

"I withdraw Floor Amendment 2."

"Mr. Clerk."

"Representative Willis."

"Floor Amendment 5 is a gut and replace and becomes the Bill. I'd like to… it increases the requirements for licensing for fire sprinkler inspectors. And I'll go further when we do the Bill."

"So, you would like to adopt the Amendment…"

"Please…"

"…and debate the Bill on Third?"

"…I would like to adopt it."

"Seeing no judgement, all those in favor say 'aye'; opposed say 'nay'. Amendment #5 is adopted. Mr. Clerk."

"Representative Willis."

"Floor Amendment 6 changes the effective date from immediate to June 2020. I would like to adopt the Amendment, please." 10100070.docx 104  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"Representative Willis moves that Floor Amendment 6 to Senate Bill 659 be adopted. All in favor say 'aye'; those opposed say 'nay'. In the opinion of the Chair, the 'ayes' have it. And Floor Amendment #6 is adopted. Mr. Clerk."

"Third Reading. Please read the Bill."

"Representative Willis."

"Thank you, Mr. Speaker. This Bill increases the requirements for those that do inspections of sprinkler systems. Fire sprinkler contractor, licensing, and inspections. It goes from a NICET Level II, requiring as of 2022, a NICET Level III inspection certification. That gives them additional background, additional training on that. It does require a five year background on it. In order to be a NICET II inspector, you have to already have two years of experience on it. The other thing in here, also does, it allows those that are in an apprentice program, which is done through the Department of Labor, which is a five year apprentice program. They also do qualify for this. One of the things that we have found is that the… oftentimes people are just inspecting, doing cursory inspections and do not understand the entire systems. So to avoid that, we're asking… we have found that there is a need for additional training and that's what this does. I want to bring one thing up to the attention because yesterday there was some concerns that this was going to reduce those that are in the pipeline to be able to get the NICET III training because it does take an 10100070.docx 105  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 additional three years after NICET II. We did the numbers of those that are already at a NICET II training level. Ninety- two percent of those people will qualify for NICET III by the time that we want this to come into effect. And so that really does take that concern out of there. And with that, I will be happy to take questions and respectfully request an 'aye' vote."

"Representative Spain."

"Thank you, Sir. Representative Wehrli."

"She indicates she'll yield."

"We've heard various numbers. One of the numbers has come out is there are 31, but I'm not really… I have not been able to confirm that."

"Under current law, yes, you can. You'll be able to because at… and even under this law, because we're giving it a two year term to be into place. So, if you are a NICET II 10100070.docx 106  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 right now, for the next two years you'll be able to continue to do inspections, but we're hoping during that time that you're going to be working towards the NICET III Level. It is an online course that you can take. There are books and there are online tests, practice tests, and all that kind of stuff that goes with it…"

"…and then there are testing sites throughout the state."

"That won't be until after 2023."

"2022…"

"2022 when it goes into effect. So, at that point, I mean, we're hoping that we'll have all of our NICET III at that level. You'll also be able to go into the apprenticeship program that the Department of Labor runs."

"'Cause you'll be working as an apprentice under a NICET III, qualified inspector."

"No, I think it'd actually be a benefit to them because they'll have a more qualified inspection going through. The cost to go from a NICET II to a NICET III is truly minimal. There is… it's less than $200 to take that additional certification."

"Thank you. And we have a number of Members that turned on their lights, so we're going to move to the timer. Representative Skillicorn for five minutes."

"She indicates she'll yield."

"The fire marshal is neutral on this. Part of that was part of the original Bill had a database that we were requesting the fire marshal to take care of, and he felt that was not something that was able to be done, but he is basically in support but has he's chosen to be neutral on the Bill." 10100070.docx 108  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"Correct. For a NICET II, you need to have two years of basically internship working in it, and for a NICET III, you need to have five years."

"Representative Wheeler."

"She indicates she'll yield."

"Well, I think that's one of the things that I recognized when I did my opening statement that currently, all the… 92 percent of those that are current NICET II's will qualify if they take the test, so they'll have the years of service in, to become a NICET III by the time that this stuff comes forth."

"Well that is where we'll look at the apprentice program to continue on with that to get those people in the pipeline. And that is part of what we're looking for and still…"

"The Department of Labor."

"Yes."

"I'm sorry. It's the U.S. Department of Labor."

"Well… just a second. Let me double check something."

"So, it does allow them to be journeymen under NICET III, to use as part of that. I mean, it'd basically be the same as what we're supposed to have in there now, where NICET II doesn’t do the inspection unless a NICET III is there supervising that. We're finding that that's not truly happening and this is going to make much more hands-on supervision requirements."

"Well, I think one of the reasons we're doing it now is to give those that are in the pipeline as NICET II's as long as time as possible to get that certification in place. If we wait until next spring, we could possibly already cut eight months off of it or we'd have to change the dates even that much farther. I think we all recognize the sooner we have the better qualified inspectors, the better it will be for all of us."

"It's not going to cost more."

"Well, I think that there's going to be some opposition that no matter what we do is not going to be in there, but we need to look at…"

"…who are the proponents…" 10100070.docx 112  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"There has been and I'm open to continuing that if, once we get it into place, if there's something that somebody wants to see changed that could make them take away it. But at this point, I think it's important that we get the system in place so that we can start those that are NICET II on that path to become NICET III's that much quicker."

"They could, but will they? And that's the thing. If we go and put in a requirement for them to go that, I think we have much better chance of that happening."

"Correct."

"Representative Burke."

"Will the Sponsor yield?"

"She indicates she'll yield."

"So, this… would it be fair to say that this Bill is about safety, Representative?"

"Yes, it is."

"And making sure that our sprinkler inspections, which are done to protect people, are done by the most qualified individuals?"

"Yes, it is."

"And have you not put in a pathway that gives people a lot of time to get the certification that are recognized as the best for conducting these?"

"That is the whole goal and the reason why we're moving the Bill forward at this point in time."

"Well, I think this is an excellent Bill. I'm happy to support it and I urge the Body to support it."

"Thank you."

"Representative Willis to close."

"I think this Bill has the intent of making sure that our buildings are safer, that those inspections are done at the… by the most competent people. And I think this is something that we should not delay on. With that being said, I urge an 'aye' vote."

"The question is, 'Shall Senate Bill 659 pass?' All those in favor vote 'aye'; those opposed vote 'nay'. Voting is open. Have all voted who wish? Have all voted who 10100070.docx 114  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 wish? Flowers, Stava-Murray, Swanson. Have all voted who wish? Mr. Clerk, please take the record. With a vote of 71 voting 'yes', 39 voting 'no', and 1 voting 'present', Senate Bill 659, having achieved a Constitutional Majority, is hereby declared passed. Page 5 of the Calendar, under the Order of Resolutions, we have House Resolution… Joint Resolution 90, Representative Ammons. Representative Ammons is recognized."

"Thank you, Mr. Speaker. If you give me one second, I want to pull up 90 so I can see it… in its full text. Okay, thank you so much for your patience. This Resolution before you is 1619 to 2019, which is a recognition… and if we could have attention because this is such a huge Resolution, Mr. Speaker. This recognition recognizes a sojourn in the loss of African Americans who have been enslaved in America. And it is a Resolution that identifies and recognizes Illinois' vibrant history of African American political struggles for democracy and freedom, that have widened the scope and deepened the state's and the United States' commitment to democracy and racial justice. This Resolution is designed particularly to recognize the year 1619, which is the year that is documented by the United States of the arrival of the first 20 or so enslaved Africans in the Americas. The year of return in 2019, this August, recognizes the 400 year sojourn of African Americans in this United States. The important part of this recognition is that those who are of African descent who were enslaved in bondage here in the United States have not received compensation or reparations or even, in some cases, acknowledgement of the 400 year sojourn. This 10100070.docx 115  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 Resolution is an attempt on my behalf and on behalf of Professor Lou Turner, at the University of Illinois, to recognize the policy implications of the year 1619 and the 400 years that has transpired since that time. It also identifies vital issues and services that need to be memorialized on the transatlantic slave trade between Africa and the Americas. We urge, in this Resolution, adequate appropriations be made for the development of a comprehensive community guide, legislative agenda, and policies that address racial justice legislation to… for African Americans. And we also urge that there are actions taken by the State of Illinois to look at, not only the political struggle, but the social and economic struggle of African Americans throughout the State of Illinois. And with that, I ask this Body to support the adoption of this Resolution as it does speak to the issues and stakeholders in the African American community, but more specifically in the State of Illinois and some of the historical incidents that have happened and transpired in our state. And so, with that, I ask this Body to support this Resolution by voting 'aye'."

"Representative… Representative Ammons has moved for the adoption of House Joint Resolution 90. All those in favor say 'aye'; those opposed say 'nay'. In the opinion of the Chair, the 'ayes' have it. And House Joint Resolution 90 is adopted. On page 6 of the Calendar appears House Resolution 603, Representative Robinson."

"Thank you, Leader."

"Representative Robinson." 10100070.docx 116  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019

"HR603 calls upon the Director of the Illinois Department of Health to expeditiously participate in the legislative public hearings, as well as hearings within communities so affected, in order to provide expert and public testimony concerning the amelioration of the disturbing and reversible public health threat. It urges additional appropriations to the state funding, along with any available federal dollars, to provide necessary prevention and treatment services to the fight of HIV among African American and Latinx populations. The Illinois Department of Health has determined that African Americans and Latinx at risk for populations among the 5 demographics selected for funding beginning early 2019 and support of community development initiatives. According to the Chicago Department of Public Health, non-Hispanic African Americans were the most frequently diagnosed population, representing 58.5 percent of new HIV rates, 56.4 percent of AIDS diagnoses, and 55 of late diagnoses. Hispanic, Latino recently accounted for about one quarter of all HIV rates in the United States, despite representing about 18 percent of the total U.S. population. More than 20 percent of people living with HIV in the City of Chicago identify as Latinx with the highest risk and most marginalized populations. It is imperative that action be taken to halt new HIV infections among these at risk populations, specifically in the African American men and women, which continue at alarming rates that exceeds 80 percent while new cases of infection among the corresponding Caucasian demographics has dramatically decreased at a 10100070.docx 117  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 current rate of less than 20 percent. I ask this Body to support me in these efforts and for an 'aye' vote. Thank you."

Speaker Harris: "Representative Robinson has moved for the adoption of House Resolution 603. All those in favor say 'aye'; all those opposed say 'nay'. In the opinion of the Chair, the 'ayes' have it. And House Resolution 603 is adopted. Mr. Clerk, committee announcements."

"Mr. Clerk, Agreed Resolutions."

"Leader Willis moves for the adoption of the Agreed Resolutions. All those in favor say 'aye'; all the opposed say 'nay'. In the opinion of the Chair, the 'ayes' have it. And the Agreed Resolutions are adopted. And now, allowing perfunctory time for the Clerk, Leader Willis moves that the House stand adjourned until Thursday, November 14, at the hour of 9 a.m., 9 a.m. All those in favor say 'aye'; 10100070.docx 118  STATE OF ILLINOIS 101st GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 70th Legislative Day 11/13/2019 all those opposed say 'nay'. In the opinion of the Chair, the 'ayes' have it. And the House stands adjourned."