12 Pastor Gordon: “Let us lift our hearts before the One who is 13 all loving and all powerful. Holy and gracious God, we 14 give You thanks for this day and the world You have created 15 for us to enjoy. We give You thanks for the blessing and 16 privilege of meaningful work, of strong and supportive 17 communities, of family, friends and neighbors. We give You 18 thanks for these leaders and their workers in our state who 19 are gathered here. Guide them with wisdom, skill and 20 vision as they seek to build up people and communities, to 21 build up infrastructure and industry. Give them courage, 22 empathy and honesty as they make decisions about social 23 welfare, economics and education. Make them trustworthy in 24 their representation of all peoples, not just the wealthy, 25 the powerful and those with influence so that the greatest 26 good is sought for our society. Create attentiveness for 27 the protection of the vulnerable, care for our delicate 28 natural ecosystems and perception of those people and 09300104.doc 1 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 things that are most vulner… vulnerable to exploitation. 2 Give these leaders and their staff and all who work here 3 the rest and refreshment they need to care for themselves 4 and their families when the responsibility and burden of 5 their work strains them. Surround them with people who 6 will both support the integrity of their work with one hand 7 and call them to accountability with the other. We pray 8 for all the nations of the world. We pray for peace where 9 there is strife and division, for comfort and safety for 10 those who are forgotten, hungry, oppressed, homeless, for 11 stability were there is corruption and unrest, for 12 protection for the weak where there is greed and malice. 13 We pray for our President and Governor Blagojevich. Give 14 wise and clear-sighted counselors to them. Give them and 15 the leaders of our nation discernment, understanding and 16 knowledge so that our nations may know stability and 17 wellbeing, internally and abroad. We also pray for the 18 people of this state that we would use the privilege of 19 citizenship, of voting, of advocacy wisely, speaking and 20 acting with hearts of justice, compassion and equality. 21 Keep us mindful of our responsibilities to one another so 22 that our neighborhoods and relationships will be strong. 23 Again, we pray for these women and men gathered here, give 24 them hearts of servants, characters of integrity that they 25 will place the good of the people of Illinois their 26 priority. Bless them with Your presence this day as they 27 set about the work and the decisions they have before them. 28 And keep us all always in the arms of Your care. Amen.” 09300104.doc 2 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Speaker Madigan: “We shall be led in the Pledge of Allegiance 2 by Representative Giles.” 3 Giles – et al: “I pledge allegiance to the flag of the United 4 States of America and to the Republic for which it stands, 5 one nation under God, indivisible, with liberty and justice 6 for all.” 7 Speaker Madigan: “Roll Call for Attendance. Representative 8 Hannig.” 9 Hannig: “Thank you, Mr. Speaker. Would the record reflect that 10 Representative Barbara Currie is excused.”
11 Speaker Madigan: “Mr. Bost.”
12 Bost: “Thank you, Mr. Speaker. Let the record reflect that all 13 Republicans are present today.”
14 Speaker Madigan: “The Clerk shall take the record. There being 15 116 Members responding to the Attendance Roll Call, there 16 is a quorum present. Mr. Clerk. Mr. Clerk, on page 11 of 17 the Calendar, on the Order of Concurrence, there appears 18 House Bill… let’s delay that for a minute. The Chair 19 recognizes Representative Gordon for the purpose of an 20 announcement.”
21 Gordon: "Thank you, Mr. Speaker. Point of personal privilege.”
22 Speaker Madigan: “State your point.”
23 Gordon: "Thank you. Ladies and Gentlemen of the House, I would 24 ask you to welcome some very special guests that I have 25 here this afternoon. They are the three team captains of 26 the Wilmington High School football team; Brett Farmer, 27 Mark… Mike, excuse me, Mike Flores and Tony Vercelli. As 28 long… with two of their coaches, Mr. Brian Goff and Mr. 09300104.doc 3 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Jeff Reents. Ladies and Gentlemen, it was the first time 2 in the history of Wilmington High School that this team led 3 by these captains went down to the state championship game. 4 They were the runners up in the 3A finals on November 28th 5 of 2003. I would ask for a warm round of applause for this 6 very special team.” 7 Speaker Madigan: “Representative Mulligan.” 8 Mulligan: “Thank you, Mr. Speaker. I rise to a point of 9 personal privilege.”
10 Speaker Madigan: “State your point.”
11 Mulligan: “Capital Forum on America’s Future is sponsored by 12 the Secretary of State and the Illinois human… Humanities 13 Council has a number of students here. They’re gonna be on 14 the House Floor tomorrow discussion international law, and 15 I have students here from Maine South with their teacher 16 Sandy Deines who are in the gallery right behind us.”
17 Speaker Madigan: “Mr. Osterman.”
18 Osterman: “We’re… I have some students here from St. 19 Scholastica High School that are down for the same program 20 Representative Mulligan spoke of. If everyone would give 21 them a round of applause I’d appreciate it.”
22 Speaker Madigan: “Mr. Clerk, House Bill 585, on the Order of 23 Concurrence. The Chair recognizes Mr. Hannig.”
24 Hannig: “Yes. Thank you, Mr. Speaker and Members of the House. 25 I would move that we concur on the Senate Amendment to… to 26 House Bill 585. I think most of us recall that one of the 27 first things that… that Governor Blagojevich accomplished 28 last year was that he was able to provide us with a… 09300104.doc 4 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 methods of… of putting additional money into our pension 2 system through the pension obligation bonds. And the way 3 that system worked was that the payments that were to be 4 made in this fiscal year were put into a fund and then as… 5 and then as the payments became due to the pension systems 6 they were simply transferred. What we know now is that the 7 pension systems are doing an excellent job of managing that 8 money. They’re… they’re beating their 8.5 rate of return 9 expectations. And meanwhile, portions of that money are 10 simply sitting in a state account earning about 1 percent. 11 So, what this Bill does, it simply authorizes us to prepay 12 the balance of those obligations to our pension systems so 13 that we could transfer all the money that will be owed for 14 the rest of fiscal year to the pension systems now and they 15 could begin earning their maximum rate of return as opposed 16 to the 1 percent that we’re earning at this time. So, 17 that’s what the Bill does. It’s an opportunity to make 18 more on the money that we have in our accounts now. And 19 I’d be happy to answer any questions. And I’d ask for your 20 ‘yes’ vote.”
21 Speaker Madigan: “Mr. Black.”
22 Black: “Thank you very much, Mr. Speaker. Will the Sponsor 23 yield?”
24 Speaker Madigan: “Sponsor yields.”
25 Black: “Representative, this is an extremely complicated Bill. 26 And I know you were here when we passed the law that 27 clearly states we must meet the actuarial demands on our 28 pension system because they were dramatically under funded 09300104.doc 5 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 for a number of years. Now, it would appear to me that by 2 diverting funds that currently go to the pension system to 3 GRF, one could make a case that contributions may be less 4 than actuarially sound. And in fact, staff… our staff 5 would indicate that should this become law there is a 6 strong possibility that the contributions to the State 7 Employees Retirement System, SERS, in the next fiscal year 8 would miss the actuarial target by several million dollars. 9 And I… I don’t understand, one, if we can do that legally 10 or two, why would we want to if… even if we could.”
11 Hannig: “Representative, I’m advised that the amounts that were 12 certified by the systems is the amounts that will be sent 13 to them under this proposal. That what we’re really trying 14 to do is to prepay those amounts and earn the maximum 15 amount of interest that we can. And that if we do nothing, 16 that money will sit in the 1 percent account until the 17 payment is actually due and then it will be transferred, as 18 opposed to this Bill which is saying let’s just transfer it 19 now and begin earning the higher rate of return.”
20 Black: “But I… I think you would agree. I think reasonable 21 people might disagree on what the net impact will be. 22 There’s certainly a school of thought that would say that 23 you’re right. I think there’s a school of thought that 24 would say our staff is right. But one of… even if… even 25 given the fact that reasonable people can often see div… 26 have divergent views on… on where we’re going, we may… we 27 may differ on how to get there. My concern is when you 28 divert money from a designated fund like the Road Fund that 09300104.doc 6 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 would go to SERS for those people that are covered under 2 the IDOT, State Police, et cetera. Now, we’re going to 3 divert money from the Road Fund and instead of going in and 4 putting it to the pension system, we’re putting it into 5 GRF. Now, that sounds to me like yet another diversion of 6 Road Fund money from what is a designated source at this 7 point and… and I think a related source, now, we’re 8 diverting Road Fund money instead of going for pensions it 9 goes to GRF where it could be spent for anything. Why… why 10 would… why would that be good public policy?”
11 Hannig: “Rep… Representative, I think that some of the 12 transfers that you’re concerned with would still happen 13 whether we did this Bill or not, that that’s something that 14 was done prior to this time. And then what we’re really 15 trying to do today is to maximize the rate of return that 16 we can on the monies that we have. And there is a 17 continuing appropriation language that’s still in place 18 that will ensure that the systems do get whatever monies 19 that they certify.”
20 Black: “But I… I don’t see any sunset on this. So, if we… 21 should this become law, then these diversions from other 22 funds that currently go to the pension system would now go 23 to the General Revenue Fund and if I’m reading this 24 correctly, that will go on until or unless this law is 25 specifically changed. It would seem to be, it’d make more 26 sense to me, Representative, if you would put a time limit 27 on this.” 09300104.doc 7 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Hannig: “Representative, I’m advised that this is only 2 applicable to fiscal year ’04, the year that we’re in now.” 3 Black: “So, you’re advised that it’s only a one-year diversion? 4 Let me check, just a second. All right. Staff tells me 5 that is, in fact, correct. I… I stand corrected, you’re 6 right. This is only for fiscal ‘04. But they’ve also now 7 pointed out a… and it may be a law of unintended 8 consequences that the way this is drafted there is a 9 potential, based upon what the pension contribution may be, 10 if it’s more than is outlined here, we may for the first 11 time in recorded history move employee pension 12 contributions from the pension system to GRF. I don’t 13 believe that’s ever happened. Now, it may not happen in 14 this Bill, we’re not saying that it will. But what staff 15 has pointed out to me, that the way it’s drafted, that 16 might happen. It… it could happen, it may happen. My god, 17 I sound like Harry Caray. But whatever, I think it sets a 18 very dangerous precedent if… if direct employee 19 contributions would be diverted at the end of the year 20 because actuarially they may not be needed and direct 21 employee contributions go back to GRF.”
22 Hannig: “I… I think maybe I’m not totally understanding the 23 question, Representative Black, but the… but I’m advised 24 that we will pay the certified amount that the… that the 25 pension systems have indicated to us already for fiscal 26 year ‘04. So…”
27 Black: “And I think… I think we’re in agreement on that.”
28 Hannig: “Okay.” 09300104.doc 8 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Black: “That we… that we will meet the actuarial payment. 2 Given interest rate fluctuations and what happens wi… in 3 this fiscal year, our staff is concerned that a law of 4 unintended consequences may… may come into play, that we do 5 make the required contribution. Now, under normal 6 circumstances direct employee contributions would go to the 7 pension fund and if it’s over the actuarial amount, that’s 8 good. But we… our staff feels that this Bill is drafted in 9 such a way that once you hit your actuarial target that you 10 would then be able to take pension contributions that 11 employees have deducted and rather than put it in the 12 pension fund, divert pension deductions to GRF and we don’t 13 think that’s ever been done in the history of the state. 14 And… and the only reason that would be done, 15 Representative, is that you would meet… if you do meet the 16 actuarial figure as mandated by law and then contributions 17 continue right up ‘til the last day of the fiscal year, 18 that you would then say or be able to say, we’ve met the 19 figure so let’s just take the pension contributions from 20 these paychecks of the workers and move it to GRF. I think 21 that’s a very… we’re not… I’m not saying that will happen. 22 We’re saying that we think the law would allow that to 23 happen and we think that’s absolutely bad public policy.”
24 Hannig: “Representative, we just simply don’t think that that 25 will happen. And I would agree with you we wouldn’t want 26 that to happen. So, it’s certainly not the intention of 27 this Bill to do that.” 09300104.doc 9 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Black: “And… and I would agree with you. And I think our staff 2 would as well. I don’t think that’s your intention. But 3 we rely on staff on both sides of the aisle a great deal 4 and they work very, very hard and they have put hours… our 5 staff has put hours into analyzing this. My fear is, and 6 I’ll listen to the rest of debate and… and I have great 7 confidence in our staff as I know you have in yours, if 8 there is an opening that would allow this to happen, the 9 pressures on the budget might be so great that, if that 10 door is not specifically closed and we don’t think it is 11 the way the Bill is drafted, it would be possible to take 12 say May and June pension contributions taken out of 13 workers’ checks when it comes to the state put it in GRF 14 account. And… and we… we think that should specifically be 15 stated by amendatory language that that ‘may’ not or 16 ‘shall’ not happen. Because while we have to meet the 17 actuarial minimum, there’s certainly no reason that we 18 couldn’t put more money in if we get to that actuarial 19 period early. I… I want reasonable assurance that in no 20 way will an employee’s pension contribution end up in the 21 General Revenue Fund for whatever the reason or whatever 22 the loophole that might exist in this law.”
23 Speaker Madigan: “Mr. Black, are you finished?”
24 Black: “If… if he would answer that question. We think the 25 possibility exists, Mr. Speaker, as I said to the 26 Representative…”
27 Hannig: “Well, Representative, we…” 09300104.doc 10 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Black: “…that… that that transfer could occur. We don’t think 2 it’s the intent, but it could occur.” 3 Hannig: “Representative, we don’t…” 4 Speaker Madigan: “Mr. Hannig. Mr. Hannig.” 5 Hannig: “Representative Black, we simply do not believe that 6 that will happen. And it’s not the intent of the Bill to 7 do that. We’re at this point where we’re looking at a 8 concurrence on a Senate Amendment. And… and so I would… I 9 would ask that you work with us.”
10 Black: “Well…”
11 Hannig: “If you have a specific language you’d like to bring 12 forward when we come back, we’d be happy to look at that, 13 Representative. But at this point, I think it’s important 14 that before we adjourn for the next few weeks that we 15 address this problem.”
16 Black: “Our staff would be willing to work with yours right 17 now. And one of… one of the problems that we have 18 sometimes, Representative, is that we don’t get adequate 19 time to review this. We think that loophole does exist. 20 You’re on the record as saying that’s not the intent and 21 that shouldn’t happen and… and you have a degree of 22 integrity and credibility in this process. We would like 23 language added, if it could be done in a timely fashion, 24 that says clearly not only is it the intent it won’t 25 happen, it will not happen. It cannot happen. I think it 26 would set an extremely dangerous precedent.”
27 Hannig: “Representative, I… I… all I can add is that we have a 28 Bill here that’s in front of us. The Senate has gone home. 09300104.doc 11 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 We think that this takes a step forward. It allows us to 2 maximum… maximize our rate of return. And we would… we 3 would ask for your indulgence and help in moving this 4 forward…” 5 Black: “And…” 6 Hannig: “…in what we believe’s an important Bill.” 7 Black: “Representative, I agree with you. I think it is an 8 important Bill and we don’t want to artificially stand in 9 the road. But let me… let me tell ya having been here for 10 some time, this Bill has been bounced around since 11 November. It was popped out of the Rules Committee last 12 night. And now we’re here on the floor and the Senate has 13 gone home, gee, there’s a surprise and… and we’re asked to… 14 to accept this and to join with you when we have serious 15 reservations that there is a loophole, unintended as it may 16 be, that would allow pension contributions from employees 17 to be diverted to General Revenue Funds if the actuarial 18 total had already been met. That is a dangerous precedent 19 and in light of… of… in light that there is no specific 20 language prohibiting that, I stand in opposition to the 21 Bill.”
22 Speaker Madigan: “Mr. Parke.”
23 Parke: “Thank you, Mr. Speaker. Will the Sponsor yield?”
24 Speaker Madigan: “Sponsor yields.”
25 Parke: “Thank you. Representative, I have just a question. Ya 26 know, we’re… we’re talking about affecting the state 27 pension systems. I’d like to know how much money do you 28 expect to be affected by your legislation?” 09300104.doc 12 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Hannig: “I’m advised that… that the amount left in the fund is 2 $660 million, Representative.” 3 Parke: “So, we’re talking that this could affect $660 million?” 4 Hannig: “So… so, it’s getting 1 percent right now and we’re 5 suggesting taking that 660 million, putting it into the 6 pension funds where they’re averaging 9 and 10 percent 7 right now.” 8 Parke: “So, you’re saying that this plan will divert state 9 employee contributions to the General Revenue Fund instead 10 of going into the pension systems?”
11 Hannig: “No, Representative, I’m saying that we should prepay 12 money that we know we will owe to our pension system 13 throughout the rest of this fiscal year. We know we’re 14 gonna owe this money in April and in May and in June, but 15 rather than sitting… letting this money sit in a fund 16 that’s earning 1 percent now, we’re saying let’s just 17 prepay those pension contributions and start earning 9 and 18 10 percent, which is what the pension systems are earning 19 right now. So, if we don’t do anything, eventually this 20 money will trickle out of this 1 percent fund into the 21 pension systems. But I’m saying let’s maximize our rate of 22 return by doing it all, by transferring it all out right 23 now, the whole 660.”
24 Parke: “So, you’re… in other words, you’re prepaying… you’re 25 not gonna prepay the pension contribution?”
26 Hannig: “Well, Representative, the way the system works it’s 27 like… like our paychecks. You know that you’re gonna get 28 paid and I’m gonna get paid this month and next month and 09300104.doc 13 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 the month after that. And we can wait and those paychecks 2 will show up. And we can do the same thing with the 3 pension payments. We can wait and eventually those 4 transfers will be made into the pension funds or since we 5 already have the money from the pension obligation bonds 6 that we sold, since we already have this money in a fund 7 earning 1 percent, we’re saying let’s accelerate those 8 payments. Let’s prepay ‘em. Let’s just move the money 9 that we already have… earning 1 percent into the pension 10 funds, so that they can earn 9 and 10 percent.”
11 Parke: “You know, Representative, that sounds great. Mr. 12 Speaker, to the Bill. And Mr. Speaker, I can’t hear the… I 13 had trouble hearing from the Sponsor of this. Could we 14 have some quiet, please?”
15 Speaker Madigan: “Ladies and Gentlemen, please give your 16 attention to Mr. Parke.”
17 Parke: “You know, what we have is the Sponsor’s trying to solve 18 a problem on behalf of the state and we can all appreciate 19 that. But what we’re doing is that the Governor, yesterday 20 when he spoke to the state Senate, said that he had a $5 21 billion challenge last year and a 1.6 billion challenge 22 this year. There’s no guarantee that we’re gonna get this 23 money in the way they want. There is no guarantee. So, 24 what we’re doing is that this is… this is on the… this is 25 on the… this is what we want to achieve. But you know, we 26 could end up being short again into the state employee 27 contribution. Ladies and Gentlemen, I understand what he’s 28 trying to do. He’s trying to solve a problem short-term. 09300104.doc 14 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 But Ladies and Gentlemen, I tell you, this is bad public 2 policy. We ought not to be doing this. We are cutting 3 spending instead of paying into our pension systems and 4 this could affect especially… especially the State Employee 5 Pension System. Once it’s done, we can’t say we’re sorry 6 we made a mistake. It’s done. Ladies and Gentlemen, we 7 need to find another way. This is gonna be the beginning. 8 For the rest of this Session, we’re gonna try to tinker 9 with the State Pension System that is woefully under 10 funded. This is not what we ought to do. I put in 11 legislation last… six years ago for a catch-up provision on 12 our pension systems that are one of the most under funded 13 pension systems in the United States. And now, to try and 14 find a solution to try and help the Governor, what we’re 15 gonna do is we’re gonna monkey with these pension systems 16 more than we are now. This is bad public policy. I ask 17 you to vote ‘no’ on this legislation.”
18 Speaker Madigan: “Mr. Leitch.”
19 Leitch: “Thank you, Mr. Speaker. Will the Gentleman yield?”
20 Speaker Madigan: “Sponsor yields.”
21 Leitch: “Does this represent the full certified amount…”
22 Hannig: “Representative, yeah…”
23 Leitch: “…as required by the continuing appropriation?”
24 Hannig: “Yes, Representative, and the money’s already in the 25 treasury.”
26 Leitch: “Six hundred million, I thought it was 1.9 billion?”
27 Hannig: “This is… the 660 million is what is left. So in other 28 words, we started out with over a billion dollars, almost 2 09300104.doc 15 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 billion and each month some of that money trickles out to 2 make the payments. So, as of today, the early part of 3 March, we still have 660 million left, earning 1 percent 4 interest.” 5 Leitch: “What about next year? My understanding of the Bill is 6 that this Bill interrupts and changes the continuing 7 appropriation language that we’ve had in the Bill ever 8 since we passed that some years ago.” 9 Hannig: “It doesn’t, Representative. It… it… the language that 10 we passed last year in the pension obligation bonds 11 created… it created a arbitrage where we would have enough 12 money to make this year’s full payments to the pension 13 systems. That is FY04. And as I said, we… we’ve been 14 making those payments each month as they become due. All 15 this Bill says is, look, we’re only getting 1 percent.”
16 Leitch: “I understand that, but…”
17 Hannig: “And let’s… let’s get the full amount.”
18 Leitch: “Is it…”
19 Hannig: “So, we’re not changing the continuing appropriation 20 language here.”
21 Leitch: “Is a year…”
22 Hannig: “And ne… and next year, unless we make some other 23 changes. But next year we’ll go back to the old way with 24 the continuing appropriation language.”
25 Leitch: “Is it your commitment that the ‘05 budget will have 26 the fully certified amount?” 09300104.doc 16 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Hannig: “Representative, I think we’ve all seen the Governor’s 2 proposal where he showed how he can get to paying the full 3 amount that’s required, and… and the continuing…” 4 Leitch: “No, I haven’t seen that. Are you suggesting that we 5 will, under our continuing appropriation language…” 6 Hannig: “Yeah, Rep…” 7 Leitch: “…keep faith with that law and fund the full 1.9 8 billion…” 9 Hannig: “This Bill does not change…”
10 Leitch: “…in ‘05?”
11 Hannig: “Let me make two points. This Bill does not change the 12 continuing appropriation language which… which exists right 13 now and if we do nothing else except pass this Bill, we 14 will go back to the old system in ‘05 and be under the 15 continuing appropriation language.”
16 Leitch: “Well, I’m very concerned about this Bill. And I’m 17 especially concerned about some of the proposals for the 18 Governor’s Office because were he, over the next four 19 years, to ‘save money’ by using proceeds from that $10 20 billion bond fund that would actually wind up costing 21 taxpayers $21 billion over the course of that event and it 22 would also have grave risk implications in the systems 23 putting the entire arbitrage scheme that was adopted last 24 year at risk because those pension systems would have to 25 earn at least upwards of 8 percent a year, 7.75 to 8 26 percent a year, just to be able to support that arbitrage 27 gimmick. So, I have very grave reservations about this. 28 And would strongly urge a ‘no’ vote.” 09300104.doc 17 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Speaker Madigan: “Mr. Hannig to close.” 2 Hannig: “Yes, thank you, Mr. Speaker and Members of the House. 3 This Bill is very simple. We have $660 million left in the 4 pension obligation account. We can allow ourselves to earn 5 1 percent interest on that for the balance of the fiscal 6 year or we can put the money into the pension systems today 7 and earn 9 or 10 percent. Do you think we should be 8 earning 9 or 10 percent instead of 1 percent? Vote ‘yes’.” 9 Speaker Madigan: “The question is, ‘Shall the House concur in 10 Senate Amendments #1 and 2?’ Those in favor signify by 11 voting ‘yes’; those opposed by voting ‘no’. Have all voted 12 who wish? The Clerk shall take the record. On this 13 question, there 64 ‘ayes’ and 52 ‘nays’. The House does 14 concur in Senate Amendments #1 and 2. And this Bill, 15 having received a Constitutional Majority, is hereby 16 declared passed. Mr. Jefferson. The Chair recognizes Mr. 17 Jefferson.”
18 Jefferson: “Thank you, Mr. Speaker. I would move to table 19 House Bill 4350, 4350.”
20 Speaker Madigan: “The Gentleman moves to table House Bill 4350. 21 Is there leave? Leave is granted. The Motion is adopted. 22 And the Bill is tabled. Mr. Parke”
23 Parke: “Thank you, Mr. Speaker. I rise on a point of personal 24 privilege.”
25 Speaker Madigan: “State your point.”
26 Parke: “Thank you. In the gallery to my left there are 27 students and teachers from Streamwood High School. If the 09300104.doc 18 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Streamwood High School students would rise and wave. I 2 want to recognize them by the House. Thank you.” 3 Speaker Madigan: “Representative Soto.” 4 Soto: “Thank you, Speaker. I move to table House Bill 4311 and 5 4829. Thank you.” 6 Speaker Madigan: “The Lady moves to table House Bills 4311 and 7 4829. Is there leave? Leave is granted. The Motion is 8 adopted. And the Bills are tabled. The Chair recognizes 9 Mr. Franks.”
10 Franks: “Thank you, Speaker. I make a Motion to recommit House 11 Bill 3906 to State Government Administration Committee.”
12 Speaker Madigan: “You’ve all heard the Gentleman’s Motion. Is 13 there leave? Leave is granted. The Motion is adopted. 14 And the Bill, House Bill 3906 is recommitted to committee. 15 Representative Phelps, House Bill 4462. Mr. Clerk, what is 16 the status of this Bill?”
17 Clerk Mahoney: "House Bill 4462 has been read a second time, 18 previously. No Committee Amendments. No… Committee 19 Amendment #1 was adopted. No Floor Amendments. All 20 Motions have been filed.”
21 Speaker Madigan: “Mr. Clerk, take this Bill out of the record. 22 And Mr. Clerk, do you have a Committee Report?”
23 Clerk Mahoney: "Committee Reports. Representative McKeon, 24 Chairperson from the Committee on Labor, to which the 25 following measure/s was/were referred, action taken on 26 Wednesday, March 03, 2004, reported the same back with the 27 following recommendation/s: 'do pass Short Debate' (sic- 28 House Bill) 4374, House Bill 4851, House Bill 4883, House 09300104.doc 19 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Bill 5037, House Bill 6617, House Bill 6869; 'do pass 2 as amended Short Debate' House Bill 4730; recommends 'be 3 adopted as amended' House Joint Resolution 64; recommends 4 'be adopted' Floor Amendment #2 to House Bill 4462.” 5 Speaker Madigan: “Mr. Clerk, put House Bill 4462 back in the 6 record. The Bill’s on the Order of Second Reading. Are 7 there any Amendments?” 8 Clerk Mahoney: "House Bill 4462 has been read a second time, 9 previously. Amendment #1 was adopted in committee. Floor 10 Amendment #2, offered Representative Phelps, is approved 11 for consideration.”
12 Speaker Madigan: “The Chair recognizes Mr. Phelps for the 13 purpose of an Amendment.”
14 Phelps: “Thank you, Mr. Speaker, Ladies and Gentlemen of the 15 House. Amendment #2 strikes the emergency rules and makes 16 it a matter of law in the statute to keep the status quo 17 for overtime compensation for Illinois workers. It takes 18 the good components of the Federal Government rules and 19 updates the threshold that has not been changed in 28 20 years. I move for the adoption of Amendment #2.”
21 Speaker Madigan: “The Gentleman moves for the adoption of the 22 Amendment. The Chair recognizes Mr. Parke.”
23 Parke: “Thank you. Will the… Mr. Speaker, will the Sponsor 24 yield?”
25 Speaker Madigan: “Sponsor yields.”
26 Parke: “Now, Representative, you said this is technical but our 27 staff said it has a lot more than technicality to it. Can 09300104.doc 20 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 you tell the Body a little bit more about what this does 2 and how it affects white-collar and… and the duties tests?” 3 Phelps: “Yeah, Representative Parke, the… Amendment #2 to two 4 components. It maintains the status quo of how we 5 compensate overtime for over 375 thousand Illinois workers. 6 The other thing that it adopts is it makes the salary test 7 of what the Federal Government wanted into this Bill, House 8 Bill 4462.” 9 Parke: “Well, wouldn’t you, I’m talking about Amendment 2.”
10 Phelps: “That’s Amendment 2.”
11 Parke: “How does this affect 350 thousand people? I still 12 don’t understand that.”
13 Phelps: “Because under the Federal Government guidelines or the 14 rules they want to change by March 31st, 375 thousand 15 Illinois workers may not get overtime compensation that 16 they deserve because the Federal Government wants to go to 17 straight time. This is gonna affect nurses, policeman, 18 firefighters, all kinds of assorted workers in Illinois. 19 And what we’re doing in Illinois is trying to be a leader 20 and tell the Federal Government that if they worked those 21 overtime hours they ought to be… deserve ‘em and they ought 22 to get ‘em and be compensated for ‘em.”
23 Parke: “Yesterday in committee, you mentioned that you were 24 going to put a technical Amendment 2 on this. But again, 25 this seems like it’s more than technical. What… what was 26 wrong with the Bill that was presented to us yesterday?” 09300104.doc 21 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Phelps: “Representative, this was what we presented yesterday. 2 This is exactly what we had the… the discussion on 3 yesterday in Labor Committee.” 4 Parke: “Well, then why are you doing it? We passed the… we did 5 not pass. I mean it passed out of committee. Why are you 6 doing it again?” 7 Phelps: “No. It makes it a matter of law into the statute. 8 That’s what it does. Instead of going to the rulemaking 9 authority it makes it a matter of statute… matter of law.”
10 Parke: “Okay, thank you. To the Bill. Ladies and Gentlemen… 11 to the Amendment. I think you… those of you who are 12 concerned about this legislation need to read this 13 Amendment. It’s complex. It does affect it. This 14 Amendment I believe now is opposed by the Illinois State 15 Chamber of Commerce, the National Federation of Independent 16 Businesses and the Illinois Hospital Association opposes 17 this legislation. Let me… one quick thing if I may, Mr. 18 Speaker. How does this affect the Illinois… the nurses who 19 work on our… in our state? Does this affect them directly 20 in any way or is this the overall effect for all of our 21 union mem… workers?”
22 Phelps: “Representative Parke, I know you’re… you feel dear 23 like me with the Illinois Nurses Association. They are so 24 strongly backing this it’s amazing because they know that 25 there is a nursing shortage right now in the State of 26 Illinois. And this is gonna be harmful for businesses and 27 harmful for our hospitals because we can’t find nurses 28 today to give proper patient care to our citizens and our 09300104.doc 22 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 constituents. They know that a nurse is not… if they don’t 2 get the time and a half overtime compensation and they only 3 get straight time they’re gonna leave in droves and that’s 4 gonna kill our hospitals and kill our nurses. All this is 5 doing is maintaining the status quo of what the Illinois 6 businesses and Illinois workers are used to today.” 7 Parke: “Ladies and Gentlemen, to… to this Amendment. The 8 Amendment will go on. Mr. Speaker, is it your intent to 9 call the Bill after the Amendment is on today? Was it your 10 intent to move to the passage of this Bill on Third Reading 11 once this Amendment goes on?”
12 Speaker Madigan: “Yes.”
13 Parke: “Then I will speak to the Bill after the Amendment is 14 on. Thank you, Mr. Speaker.”
15 Speaker Madigan: “Mr. Davis.” 16 Davis, S.: “I’ll wait until the Bill gets on Third Reading, Mr. 17 Speaker. Thank you.”
18 Speaker Madigan: “Mulligan.”
19 Mulligan: “Mr. Speaker, I don’t think the Amendment’s on the 20 system.”
21 Speaker Madigan: “Representative Mulligan, what do you see on 22 your screen?”
23 Mulligan: “I don’t see it. She told me to hit refresh, which 24 I did and nothing came up. So, is it back?”
25 Speaker Madigan: “All right. Ladies and Gentlemen, the 26 question is, ‘Shall the Amendment be adopted?’ Those in 27 favor say ‘aye’; those opposed say ‘no’. The 'ayes' have 09300104.doc 23 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 it. The Amendment is adopted. Are there any further 2 Amendments?” 3 Clerk Mahoney: "No further Amendments. All Motions have been 4 filed.” 5 Speaker Madigan: “Third Reading. Mr. Clerk, read the Bill.” 6 Clerk Mahoney: "House Bill 4462, a Bill for an Act concerning 7 employment. Third Reading of this House Bill.” 8 Speaker Madigan: “Mr. Phelps.” 9 Phelps: “Thank you, Mr. Speaker and Ladies and Gentlemen of the 10 House. House Bill 4462 is an issue of the State 11 Comptroller’s Office. This piece of legislation has the 12 strong backing from the AFL-CIO, the Department of Labor, 13 the Illinois Nurses Association, the UFCW, IFT, SEIU, the 14 Associated Firefighters of Illinois, the Illinois Fraternal 15 Order of Police as well as the Veterans of Illinois. These 16 supporters all agree that the Illinois General Assembly 17 must stop the U.S. Department of Labor’s proposed rule 18 schedules to take effect at the end of this month that 19 hurts Illinois workers a great deal. House Bill 4462 20 overrides harmful new federal regulations. Under these 21 federal rules fewer Illinois workers will now become 22 eligible for overtime compensation at time and a half. 23 Over 375 thousand Illinois workers will be hurt by this. 24 House Bill 4462 prevents these rules from taking effect 25 maintaining, maintaining the status quo that Illinois 26 businesses, Illinois employers and Illinois workers had… 27 now have. If there’s any questions I’ll be glad to answer 28 them.” 09300104.doc 24 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Speaker Madigan: “The question is, ‘Shall this Bill pass’? 2 There being no discussion, those in favor signify by voting 3 ‘yes’… I guess there’s been an awakening. Mr. Cross.” 4 Cross: “Mr. Speaker, I think if you could give us just a second 5 I think there are a few people on our side that would like 6 to talk on it. This is a fairly comprehensive Bill. If 7 you could give us a few moments.” 8 Speaker Madigan: “Well, Mr. Winters is seeking recognition. We 9 could…”
10 Cross: “That would be a good way… that would be an opportunity 11 to give us a few moments.”
12 Speaker Madigan: “…if we could recog… recognize him. He made a 13 big difference on the 7 percent ca p Bill on real estate 14 taxes. Mr. Winters.”
15 Cross: “Well, maybe…”
16 Speaker Madigan: “Mr. Cross. Cross.”
17 Cross: “We’re hoping he does a little better on this Bill.”
18 Speaker Madigan: “Right. Mr. Winters.”
19 Winters: “Thank you, Mr. Speaker. Will the Sponsor yield? I… 20 I assume that the Sponsor will yield so I’ll go ahead. 21 Having just downloaded a 9 page article from the Nursing 22 Executive Watch and having not read it yet, I will put on 23 my nursing cap and we’ll get started on this Bill. First 24 off this again, having not had a good chance to re… to 25 review this but looking at the… the summary of this, it 26 does point out that many of the nursing groups around the 27 country have really gone on the record as saying that the 28 change in Federal Labor Law will very adversely affect 09300104.doc 25 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 them. This that I have in my hand really refutes that. 2 Says that there… our ends will not be affected by the new 3 law. What we’re trying to do is instead update it for the 4 first time in 25 years. We have a weekly maxima… or 5 minimum of $155 to enable you to become eligible for 6 overtime payments. That is being raised to 425, I believe, 7 in round numbers? That’s correct, is it not?” 8 Phelps: “Correct.” 9 Winters: “Okay. So, we’re… we’re trying to… to bring this 10 labor law on minimum wage to a more modern setting for 11 almost 28 years I believe it is since we’ve done anything 12 on this. And as we see society change, you see job 13 classifications change, you see the ramifications between 14 labor and management change throughout industry. We need 15 to update this. What this Bill does is to cherry pick. 16 There has been a compromise reached in Washington between 17 business and labor. And there… there are positives on both 18 sides, there are negatives on both sides. Both sides are 19 trying to reach a compromise that’s not going to sandbag 20 industry. And I think we ought to stick with the federal 21 compromise that has been reached. What we’ve done in this 22 Bill is to instead say, you know, we really like these 23 provisions that labor has won. That business has agreed to 24 give up. But we really don’t want to balance that with 25 anything that… that labor might have given up themselves. 26 We’re just gonna take the best things from one side and 27 ignore the best things on the other. What we’re doing is 28 we’re gonna make Illinois once again be the only state in 09300104.doc 26 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 the nation and I checked in debate in committee. No other 2 state has tried to decouple from this Federal Law. We are 3 the only ones. Once again, we’re sending a message to… to 4 the business community in Illinois. It’s time that we 5 shutdown your doors. You might as well pull up and leave. 6 Now, small changes and I’m sure the argument’s gonna be 7 made that this minimum wage or overtime wage, excuse me, 8 is… is it minor, the business will be able to manage around 9 it. I just got a letter this morning. A company that is a 10 printing company in my district just made a major 11 expansion, added 350 jobs last year, while we happen to 12 exclude from the sales tax exemption printing company 13 machinery. It cost them $800 thousand that they were not 14 counting on. They’d already put the plans into effect but 15 had not quite completed them when we changed the law last 16 year. They’re gonna move not only the 350 jobs that they 17 added in Illinois, but an additional 300. A total of 18 almost 700 jobs are gonna be moving out of this state. 19 This is going to do the same thing. Any company in 20 Illinois that has overtime situations that the Federal 21 Government is… is not going to match the State of Illinois, 22 they’re gonna look around at every state on our border, 23 every state in the nation and say, you know, they want us 24 as businesses trying to employ people in their states, why 25 the heck are we going to sink our roots any deeper in 26 Illinois? It’s time that we consider that any plant 27 expansion or any new plants at all we’re not gonna look at 28 Illinois, we’re gonna look at any other state other than 09300104.doc 27 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Illinois, we might even look at California which is known 2 as a bad business climate. Illinois is now ranked as the 3 fifth worst state for business expansion. When they look 4 around at what the state climate, the tax climate is, the 5 unemployment rules, the unemployment compensation rates 6 that they pay, the business liability insurance rates that 7 they pay, Illinois ranks almost at the top for being a 8 lousy place to do business. No wonder we’re lagging the 9 U.S. economy on jobs created. Our unemployment rate is 10 almost 1 percent higher than the rest of the… the rest of 11 the country. It’s because we have made this a business 12 unfriendly state. This is simply another way that we’re 13 gonna penalize Illinois business. Stay with the federal 14 compromise that was reached. Both business and labor are 15 getting good parts out of that Bill and instead of making 16 Illinois once again, stand out on the edge of the cliff 17 while we crack the ground under our businesses feet. We’re 18 gonna watch ‘em slide down that the cliff and there gonna 19 take our unem… our employees with them. I urge a ‘no’ vote 20 on this Bill.”
21 Speaker Madigan: “Mr. Black.”
22 Black: “Thank you very much, Mr. Speaker. Will the Sponsor 23 yield?”
24 Speaker Madigan: “Sponsor yields.”
25 Black: “Representative, have these federal rules been… have 26 these… have these federal rules been placed in effect yet?”
27 Phelps: “Representative, as of March 31st they will be in 28 effect. And I have a… just so you know I have a article 09300104.doc 28 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 here from the Washington Post from President Bush’s 2 Secretary of Labor, Chao, saying that they will not delay 3 the new overtime, it will go into effect by April 1st.” 4 Black: “So, we’re going to pass a Bill on the 4th of March 5 acknowledging rules that as we stand here today do not 6 exist?” 7 Phelps: “I just think when we know it’s coming why should we 8 work under one day with these rules that’s gonna hurt 9 Illinois workers.”
10 Black: “Oh, I see and could you share your crystal ball with 11 me?”
12 Phelps: “Well, I’m just… from the administration of President 13 Bush and all of his cabinet said that these are gonna go in 14 by April 1st.”
15 Black: “So, we’re going to pass a Bill on March the 4th 16 implementing changes in the State of Illinois that no other 17 state has done, acknowledging federal rules that are not in 18 effect and don’t even exist. Okay, that’s fine. I mean 19 that’s… just so I understand what we’re doing here because 20 now this begins to make a lot more sense.”
21 Phelps: “Representative…”
22 Black: “Let me ask you another question if I could? Do these 23 proposed federal rules that the Washington Post that you 24 quote says is inevitable and certainly will never 25 disappear, and anything that appears in the Washington Post 26 is certainly… I… I read their horoscope and I follow 27 whatever the Washington Post says, is the way I live my 09300104.doc 29 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 life. Do their proposed federal rules in any way prohibit 2 nurses from working overtime?” 3 Phelps: “No, not the hours, Representative.” 4 Black: “Ah ha.” 5 Phelps: “All it will do is take the time and half away and make 6 them work straight time. That’s what it would do.” 7 Black: “Oh, now… let me follow you up with another question 8 then. Do, in fact, the proposed federal rules prohibit 9 nurses from being paid overtime if overtime was worked?”
10 Phelps: “Representative, no.”
11 Black: “I’m sorry what was your answer?”
12 Phelps: “No.”
13 Black: “Ah ha. So, the sky isn’t falling, is it? If a nurse 14 works overtime even if these rules are implemented on March 15 31st, and that nurse works on April 1st a 12 hour shift, 16 that nurse is still going to be paid overtime isn’t she or 17 he?”
18 Phelps: “No… no… no, Representative.”
19 Black: “Oh, no… no… no, okay.”
20 Phelps: “It will be straight time. It will be straight time. 21 Not time and a half…”
22 Black: “Okay.”
23 Phelps: “…straight time.”
24 Black: “Could you tell me then, show me the specific rule the 25 language that clearly states a nurse that works overtime on 26 April 1st will not be paid overtime?”
27 Phelps: “That’s why though she will be paid. She’ll be paid 28 straight time. But that’s why I want Illinois to quit 09300104.doc 30 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 being a follower and be a leader and make sure that that 2 does not happen.” 3 Black: “Oh… oh… we’re… we’re a leader… we’re a leader and you 4 all should give yourselves a hand. We’ve lost more jobs in 5 the last three years than any state in the country. We’re 6 leaders, there isn’t any question about that.” 7 Phelps: “And if we, Representative, if we… if we don’t 8 implement this we will lose jobs because nurses, and Joan 9 Larsen will tell you, from the INA, they will be leaving in 10 droves because there are nurses, single mothers and single 11 fathers that rely on overtime to help their families.”
12 Black: “Yeah… yeah, you’re right, Representative. Malpractice 13 doesn’t have anything to do with the fact that the only two 14 brain surgeons, neurosurgeons left in Southern Illinois, 15 left a month ago. That… that must be because of these 16 proposed… proposed federal rules? Is that right?”
17 Phelps: “No, that’s a whole another issue, Representative.”
18 Black: “Yeah, it sure is. One your side hasn’t wanted to talk 19 about in the last 10 years. Let’s see, is there any part 20 of these federal rules that have not yet taken effect that 21 you like?”
22 Phelps: “Yes, I agree…”
23 Black: “What’s… what would that be.”
24 Phelps: “…I agree with the President of raising the threshold 25 from $155 a week to $425 a week.”
26 Black: “So, you like the part….”
27 Phelps: “It should have been… and… and, Representative, that 28 hasn’t been done in 28 years and actually the Economic 09300104.doc 31 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Policy Institute says we’re already under $5000 a year less 2 than what it actually should be today.” 3 Black: “So, you like the like the part where the minimum salary 4 amount is raised before the exemption would apply, right?” 5 Phelps: “Yeah, and that’s why we put it in the Bill.” 6 Black: “And is that because more individuals under that federal 7 scenario will not be exempt and thus will be eligible for 8 overtime?” 9 Phelps: “Yes, that’s correct.”
10 Black: “Ah, I thought a while ago nobody was gonna get 11 overtime.”
12 Phelps: “That was the… that’s the Executive Branch’s decision 13 and I thought that was a very welcomed deal on that, that’s 14 why we put it in.”
15 Black: “Okay. Thank you, Representative. Mr. Speaker, Ladies 16 and Gentlemen of the House, to the Bill. One thing I 17 certainly can’t answer or can’t argue with the young man 18 on, Illinois’ a leader. We’re the leader of lost jobs. 19 We’re the leader in exporting industrial plants to other 20 states. We’re the leader in decoupling from… let’s see the 21 Federal Estate Tax, which will impact most farmers in 22 southern Illinois who have managed to accumulate land. 23 We’ve decoupled from that. We’ve decoupled from the 24 accelerated depreciation schedule, one of only five states 25 to have done that. That will help us attract big business 26 that has to… that has to spend a $150 million for a piece 27 of equipment. Yeah, they’ll… they’ll flock to Illinois 28 because now they won’t be able write off their piece of 09300104.doc 32 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 equipment in an accelerated period of time, they’ll have to 2 write it off over 10 years. Yeah, we’re a leader all 3 right. I’d like to share a story with you if I might. And 4 it just kind of sums my whole philosophy on this. My… my 5 late father-in-law was a remarkable man. A veteran of 6 World War II, came home, worked for Standard Oil for a 7 number of years. Wanted to get off the road and he moved 8 to Des Moines, Iowa and he opened up an auto parts store. 9 And he was open eight hours a day for five days a week and 10 four hours on Saturday, 44 hours. He had an agreement with 11 all of his employees that that’s what they wanted to do. 12 They wanted a 44-hour week and they were very, very happy 13 with what my father-in-law said he would pay them for a 44 14 hour week. So, everybody was happy, four people had a job, 15 the business was paying taxes and about, oh, I don’t know, 16 two years I think after Jack opened the business an 17 inspector from the Bureau of Labor Statistics came in. And 18 they did an audit. And they said uhoh… uhoh, you can’t 19 work somebody 44 hours a week. Only 40. And my father-in- 20 law said everybody agrees to that. They’re being paid for 21 the four hours on Saturday. What’s the problem? Well, 22 I’ll tell you what the problem is. You as a business owner 23 don’t have the right to determine that. We in the Federal 24 Government through the Bureau of Labor Statistics will 25 determine that. And here’s what you owe your employees in 26 back time and half wages. He went bankrupt. Four people 27 lost their job. The auto store closed and America was 28 somehow better off. Boy, that makes a lot of sense to me, 09300104.doc 33 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Representative. Let’s regulate every aspect of our lives. 2 Let’s continue to be the leader in lost jobs. And while 3 we’re at it and I hate to be this way, you know why this 4 Bill is up here? Do you… give me the real reason that this 5 Bill is before us on March the 4th. Give me the real 6 reason.” 7 Phelps: “I think it’s a great Bill.” 8 Black: “Yeah. Would it have anything to do with Dan Hynes’ 9 Senate Campaign?”
10 Phelps: “This is… you know what, Representative, with all due 11 respect…”
12 Black: “Tell me the truth.”
13 Phelps: “AFL-CIO…”
14 Black: “Tell me the truth.”
15 Phelps: “Well, then I think you should talk to…”
16 Black: “Tell me the truth or sit down.”
17 Phelps: “I think you should tell… talk to the AFL-CIO…”
18 Black: “You tell the truth.”
19 Phelps: “…the NIA, the INT.”
20 Black: “You tell the truth. You got the guy sitting right next 21 to ya. Tell me the truth, you little weasel.”
22 Phelps: “We’ve got timeline by March 31st, Representative. I’m 23 just making sure Illinois does what’s right and maintains 24 the status quo.”
25 Black: “This happens to be… this happens to be the cornerstone 26 of Dan Hynes’ campaign commercial. This Bill doesn’t need 27 to be here today. Except the Democrat powers thinks he 28 needs some help before the commercial. So, have your fun. 09300104.doc 34 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Do your thing. But someday, Mr., have the common courtesy 2 and guts to tell me the truth.” 3 Phelps: “Representative, we got March 31st deadline on this and 4 we gotta get it to the Senate as well. So…” 5 Speaker Madigan: “Representative Steve Davis.” 6 Davis, S.: “If… if it is an initiative of Dan Hynes it’s a hell 7 of a good issue, Representative. Will the Sponsor yield? 8 Listen Representative, can you tell us how many jobs in 9 Illinois are going to be affected by the President’s new 10 overtime rules?”
11 Phelps: “Eight million… over 8 million in the… in the country 12 and over 375 thousand in the State of Illinois.” 13 Davis, S.: “So, you mentioned in the debate that the nurses 14 certainly are going to be affected. What… what other… what 15 other groups, Representative, are going to be affected by 16 the new overtime rules?”
17 Phelps: “The veterans of Illinois are going to be affected by 18 this, SEIU, IFT, teachers, 375 thousand workers. And 19 here’s the other thing, you know, Representative Davis, 20 that we have to remember. We’ve had time and a half on the 21 books since 1938, with the federal changes it will go to 22 straight time. So, why do we change something that we’ve 23 had since 1938? We’re maintaining the status quo to 24 protect Illinois workers.” 25 Davis, S.: “Is there anything in the… the… the new federal 26 overtime rules that would lower the age where children can 27 go to work full time? Because, you know, we used to have 28 that in this country, too.” 09300104.doc 35 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Phelps: “Right.” 2 Davis, S.: “Where 8, and 9, and 10-year olds went to work 3 because the corporations were using them to their 4 advantage.” 5 Phelps: “Right.” 6 Davis, S.: “But is there anything in there to change that?” 7 Phelps: “No.” 8 Davis, S.: “Okay, just… just trying to double check. Ladies 9 and Gentlemen of the House, we have an opportunity here in 10 this legislative Body to do something right and to do 11 something good for the working families in the State of 12 Illinois. You know this is one time where the status quo 13 should actually matter. Or we should stick with the… with 14 the status quo. By us decoupling we’re… we’re not just the 15 only state in the Union to decouple from the proposed 16 federal overtime rules. We’re… we’re the leaders. We’re 17 the leaders in this country by decoupling from the federal 18 overtime rules. We can stand up today and tell the workers 19 in the State of Illinois that this Body cares about them, 20 that we care about their future, that they care about… we 21 care about their children and their grandchildren. We care 22 about their pension benefits and we care about their health 23 care benefits. That’s what we’re going to do today by 24 voting for this Bill. Why in the world would anybody in 25 this chamber want to take away hard earned money from 26 people who earn a hard day’s wage, especially those who are 27 working over eight hours a day or over 40 hours a week? If 28 you work over 40 hours a week you should be paid a decent 09300104.doc 36 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 wage for that sacrifice. I… you know, many of these 2 corporations have mandatory overtime rules, mandatory. 3 It’s not voluntary, it’s mandatory. So, they’re gonna 4 mandate that you work overtime for straight wages. That is 5 not right. We… and many of these people that are being 6 affected they are not representated… represented through 7 collective bargaining. This is just not a union issue. 8 This is a workers’ issue. This is a family issue. It has 9 nothing to do with collective bargaining. Actually, you 10 can collectively bar… collectively bargain for overtime for 11 time and a half, double time two and half times and three 12 times. We’re talking about people who need the help from 13 the Illinois Legislature, from the Governor and from the 14 people who represent them. Stand up and make the right 15 vote. Vote ‘yes’ on House Bill 4462.”
16 Speaker Madigan: “Representative Mulligan.”
17 Mulligan: “Thank you, Mr. Speaker. Will the Sponsor yield?”
18 Speaker Madigan: “Sponsor yields.”
19 Mulligan: “Representative Phelps, I understand that under the 20 federal rule where it was streamlined from one duty test to 21 two… from two duty test to one duty test. Would you 22 explain the duty test to me?”
23 Phelps: “Yeah. The duties test, Representative, gives the 24 employer the ability to substitute actual work experience 25 for a formal education. So, that would mean also for… if 26 you had a veteran, for example, if you leave the military 27 and go to a private company and you’re in the military and 28 you have training of specialized content that could be used 09300104.doc 37 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 against you when you go to… to a place of work. They could 2 say that you’re too qualified and too skilled, so therefore 3 I don’t have to pay you overtime.” 4 Mulligan: “All right. So, what the federal Bill did was it 5 changes the… the qualification to be considered 6 professional staff rather as nonprofessional staff. And it 7 increased the salary threshold which would be considered 8 professional staff as nonprofessional staff.” 9 Phelps: “Yeah, correct.”
10 Mulligan: “All right. I realized that when I worked for a law 11 firm when I went from nonprofessional staff to professional 12 staff I worked twice as hard and got less pay, if I counted 13 the hours. Not… the increase in pay was substantial but 14 not to cover the time I spent maybe sitting at meetings at 15 night covering them for the law firm. But there was a 16 qualification there that I was considered professional 17 staff, which to some people is important. What appears to 18 me is what we want is all of that. We want to be 19 professional staff but we want to have… be judged under 20 union standards of how we’re paid. So, we want the best of 21 all worlds. But that’s also at the expense of partly at 22 the state budget. Last year we increased the minimum wage 23 without any thought to what human service providers pay 24 people. So, we put an additional burden on them. You’re 25 going to do that once again. Just recently in the state 26 budget all the merit comp employees will now have to pay 27 their own pension. The union employees don’t. Is that 28 going to happen if you’re considered professional staff?” 09300104.doc 38 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Phelps: “No.” 2 Mulligan: “So, we’ve stream… we’ve streamlined all of this and 3 then what does this come under the Department of Labor?” 4 Phelps: “The Department of Labor. Correct.” 5 Mulligan: “Will they have to come through JCAR to implement 6 these rules or do they just automatically get to implement 7 these rules without going before JCAR?” 8 Phelps: “We worked with the Department of Labor here in the 9 State of Illinois. They helped us implement this because 10 they don’t even want one day to go under over this because 11 of all the rules they… they probably wouldn’t be able to 12 get done in time.”
13 Mulligan: “So, there’s cer… they’re gonna go by the Joint 14 Committee on Administrative Rules when this Bill is going 15 to allow them to bypass those hearings, directly implement 16 the law and go around this?”
17 Phelps: “It may need fine tuned, but we’re gonna make it a 18 matter of law.”
19 Mulligan: “Well, Representative…”
20 Phelps: “And then we can go back to JCAR, Representative.”
21 Mulligan: “You’re not… you’re not… you’re not only introducing 22 this Bill, as we often do introduce legislation at a time 23 when we’re walking out of here in hurry and what 24 Representative Black said to you may be true. It may be 25 for a campaign. But there is no overall policy under this 26 administration or this Body in the last two years that 27 adequately looks at the balance between labor and business. 28 This state has gone to hell in a hand basket because of 09300104.doc 39 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 stuff like this. You do not actually sit here and say 2 we’re gonna pass a big change by introducing an Amendment 3 at the last minute and running it out of here when 4 everybody wants to go home.” 5 Phelps: “So…” 6 Mulligan: “It’s irresponsible.” 7 Phelps: “…well, Representative, let me… let me clarify this. 8 So, we’re here March 4th. We’re gonna be gone and not come 9 back until March 23rd. It’ll take at least six Session 10 days to get this to the Senate and to the Governor before 11 the federal guideline of April… of March… of April 1st.”
12 Mulligan: “If this Bill has to go through JCAR and not thr… if 13 the Department of Labor has to present the changes before 14 JCAR it’ll be a lot longer before that. So, it doesn’t 15 matter when it is implemented. It still will have to go 16 through different rules and it has to be signed. And if 17 the Governor signs this and makes it into law immediately, 18 we’re losing a lot of stuff. Right now he’s raiding the 19 Road Fund. The Federal Government is in the process of 20 giving Road Fund money to the State of Illinois. If you 21 have a Governor that’s taking the Road Fund money you’re 22 not going to get Road Fund money out of the Federal 23 Government. If you go after the Federal Laws we’re gonna 24 have less Road Fund money, we’re gonna have less 25 consideration from the Federal Government. But you just 26 keep on doing this with no time at all to have a logical 27 discussion and weigh the consequences of this. So, now 28 you’re gonna im… implement another law that makes us 09300104.doc 40 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 unfavorable to business in this state. Labor can only have 2 jobs if there’s businesses. There are only so many state 3 jobs that you can have people employ. The object of the 4 state taxpayer is not to pay for every employee to be a 5 state employee, you have to have some business jobs. So, 6 if you make a totally nonbusiness friendly state, which we 7 are doing, and we’re the slowest in economic recovery, how 8 can you justify that to your people when they come to you 9 and have no jobs? Overtime with no jobs is zero just as 10 salary with no job is zero. So, how can you implement 11 something like this without an adequate time for 12 discussion?”
13 Phelps: “Representative, nurses are gonna leave. There’s 14 single mothers and single fathers out there that rely on 15 overtime to keep their family together…”
16 Mulligan: “Representative, I was a single mother…”
17 Phelps: “…that’ll be taken all away, Representative.”
18 Mulligan: “…I was professional staff and I did not get 19 overtime.”
20 Phelps: “Thank you.”
21 Mulligan: “I managed to put my kids through college. Now if 22 you want to make this a nonfriendly state with no jobs, 23 just keep it up. Don’t… don’t give me this ‘oh, poor me’ 24 if…”
25 Phelps: “Representative…”
26 Mulligan: “…we don’t vote for this.”
27 Phelps: “…this is gonna take something away what Illinois 28 workers had. This maintains the status quo what business 09300104.doc 41 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 and employers and employees have right now. That’s all 2 it’s doing. You can try to say what you want but it 3 maintains the status quo, what we’re used to now.” 4 Mulligan: “You’re preempting the federal change. All you’re 5 doing this for is for publicity, for campaigns and for 6 other issues. But what you’re doing is you’re making 7 business move, when I have people in my district say to me 8 if this keeps up I will be out of here in two years, I’m 9 planning on moving my business. We’re losing jobs like a 10 big sucking vacuum. This is the kind of stuff with no 11 discussion that makes us an unfriendly state to business, 12 which means no jobs.”
13 Phelps: “Thank you, Representative.”
14 Speaker Madigan: “Mr. Watson.”
15 Watson: “Thank you, Mr. Speaker. Will the Sponsor yield?”
16 Speaker Madigan: “Sponsor yields.”
17 Watson: “Representative, could you tell me if… if I’m an 18 employer right now and this Bill goes into effect will I be 19 able to have salaried employees?”
20 Phelps: “What kind of employees, Representative?”
21 Watson: “If I… if I’m just an employer and I have a salaried 22 employee right now who does not get overtime but has a 23 decent salary, will I still be able to have a salaried 24 employee?”
25 Phelps: “Representative, whatever it… yes. Whatever it is 26 today will maintain the status quo with this Bill. It’s 27 what we’re used to right now. It’s not changing it. Just 28 changing the threshold from 155 to 425, that’s it. And 09300104.doc 42 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 that was a President Bush initiative. That’s all we’re 2 doing.” 3 Watson: “Is… is the primary goal of this to affect nurses?” 4 Phelps: “No. No, it’s just they’re gonna be affected by it 5 because they rely on overtime to help their families out. 6 When this Federal Law goes in it’s straight time not time 7 and half. We’ve had time and half on the books since 1938. 8 We’re not changing that. That’s what the Federal Law does. 9 And we don’t want to harm those workers.”
10 Watson: “Okay, so… so do you thi… I guess my concern is… is 11 the… the employers out there will they under… are they… is 12 there gonna be mass confusion? Are they gonna understand…”
13 Phelps: “Representative, no, because there would be mass 14 confusion if these Federal Laws go in. We’re maintaining 15 status quo. That’s all we’re doing, Representatives.”
16 Watson: “So, will this job, in your opinion, will this job 17 increase labor costs? Or will this Bill increase labor 18 costs?”
19 Phelps: “No, ‘cause it’s what… whatever’s going on now it’ll be 20 the same way. The wor… everybody’s used to this anyway in 21 Illinois. That’s all we’re doing with this Bill.”
22 Watson: “Okay, thank you. Thank you, Mr. Speaker.”
23 Speaker Madigan: “Mr. Osterman, to add to the debate.”
24 Osterman: “Thank you, Mr. Speaker. I won’t add too much more. 25 I… will the Sponsor yield?”
26 Speaker Madigan: “Sponsor yields.”
27 Phelps: “Yes.”
28 Osterman: “Repre… Representative Phelps…” 09300104.doc 43 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Phelps: “And thank you, for asking.” 2 Osterman: “…I agree that what you said earlier this is a good 3 Bill and I would ask people to support, it and it’s a Bill 4 that you and I can support together unlike some of your 5 Bills. But I just have one question. And that is do you 6 have a Senate Sponsor of this Bill?” 7 Phelps: “Yes.” 8 Osterman: “Who’s that?” 9 Phelps: “Senator Gary Forby.”
10 Osterman: “Okay. But if other Senators wanted to come on as 11 cosponsors like Senator Barack Obama would you be willing… 12 you’d be willing to entertain that, wouldn’t you?”
13 Phelps: “Sure.’
14 Osterman: “Okay. Thank you.”
15 Phelps: “Representative, I think he’s a….”
16 Speaker Madigan: “Mr. Verschoore.”
17 Verschoore: "Thank you, Mr. Speaker. Will the Sponsor yield?”
18 Speaker Madigan: “Sponsor yields.”
19 Verschoore: "In answer to Representative Mulligan’s statements 20 I was on both sides of the coin on this thing. Being with 21 the plumbers and pipe fitters, I worked out in the field 22 and I wanted to tell ya how important overtime is. When I 23 was elected business manager I went in, and I was 24 management so I didn’t get overtime so I put in probably as 25 many hours as you did. And… overtime is important to 26 working stiffs, let me tell ya, especially in construction. 27 They might not get 40 hours a week. They might get three 28 days a week so they need that… that overtime to make a 09300104.doc 44 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 decent living. So, this is why we need to have this Bill 2 pass. Thank you.” 3 Speaker Madigan: “The question is, 'Shall this Bill pass?' 4 Those in favor signify by voting 'yes'; those opposed by 5 voting 'no'. Have all voted who wish? Have all voted who 6 wish? The Clerk shall take the record. On this question, 7 there are 57 ‘aye’ and 44 ‘no’. Mr. Phelps.” 8 Phelps: “Mr. Speaker. Thank you, Mr. Speaker. Put this on 9 Postponed Consideration, please.”
10 Speaker Madigan: “Put the Bill on the Order of Postponed 11 Consideration. Mr. Black.”
12 Black: “Mr. Speaker, a point of personal privilege. Ladies and 13 Gentlemen of the House, no matter how hard debate gets in 14 this chamber, no matter how upset I can get at an issue 15 there is never, ever an excuse to call a fellow Member of 16 this chamber a little weasel. That is inexcusable. I am 17 embarrassed that I did so. I apologize to Representative 18 Phelps. That… that is not the kind of conduct that I would 19 condone on this floor and I am very, truly and sincerely 20 sorry. That kind of language is disrespectful and has no 21 place on this floor and I apologize to you, Sir.”
22 Speaker Madigan: “Mr. Phelps.”
23 Phelps: “Representative, thank you, but I’ve been called a lot 24 worse.”
25 Speaker Madigan: “Mr. Clerk, for an announcement.”
26 Clerk Mahoney: "The House Personnel & Pensions Committee will 27 meet immediately in Room 118. The House Personnel and 28 Pensions Committee will meet immediately at Room 118. The 09300104.doc 45 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 House Rules Committee will meet immediately in the 2 Speaker’s Conference Room. The House Rules Committee will 3 meet immediately in the Speaker’s Conference Room. The 4 House shall stand at ease until 4:45.” 5 Clerk Mahoney: “Committee Reports. Representative Barbara 6 Flynn Currie, Chairperson from the Committee on Rules, to 7 which the following legislative measures and/or joint 8 action motions were referred, action taken on March 4, 9 2004, reported the same back with the following 10 recommendation: Barbara… House Bill 4031, Amendment #2 11 offered by Representative McKeon, recommends ‘be adopted’. 12 Representative Burke, Chairperson from the Committee on 13 Executive, to which the following measures were referred, 14 action taken on March 3, 2004, reported the same back with 15 the following recommendations: ‘do pass Short Debate’ House 16 Bill 4003, House Bill 4015, House Bill 4055, House Bill 17 4232, House Bill 4651, House Bill 6654, House Bill 6683, 18 House Bill 6866; ‘do pass as amended Short Debate’ House 19 Bill 3883, House Bill 3954, House Bill 4361, House Bill 20 4960, House Bill 5011, House Bill 5875, House Bill 4452, 21 House Bill 4782, House Bill 5884 and House Bill 6633. 22 Representative Fritchey, Chairperson from the Committee on 23 Judiciary-Civil Law, to which the following measures were 24 referred, action taken on March 3, 2004, reported the same 25 back with the following recommendations: ‘do pass Short 26 Debate’ House Bill 3893, House Bill 4310, House Bill 4389, 27 House Bill 4652, House bill 4703, House Bill 4777, House 28 Bill 4895, House Bill 6563, House Bill 6564, House Bill 09300104.doc 46 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 6618; ‘do pass as amended Short Debate’ House Bill 4856, 2 House Bill 5130; ‘do pass Standard Debate’ House Bill 4498; 3 ‘do pass as amended Standard Debate’ House Bill 3994. 4 Representative McCarthy, Chairperson from the Committee on 5 Higher Education, to which the following measures were 6 referred, action taken on March 3, 2004, reported the same 7 back with the following recommendations: ‘do pass Short 8 Debate’ House Bill 3877, House Bill 4688, House Bill 4744, 9 House Bill 5018; ‘do pass as amended Short Debate’ House 10 Bill 4686, House Bill 6621. Representative Holbrook, 11 Chairperson from the Committee on Environment & Energy, to 12 which the following measures were referred, action taken on 13 March 3, 2004, reported the same back with the following 14 recommendations: ‘do pass as amended Short Debate’ House 15 Bill 4850, House Bill 4959 and House Bill 5094. 16 Representative Franks, Chairperson from the Committee on 17 State Government Administration, to which the following 18 measures were referred, action taken on March 3, 2004, 19 reported the same back with the following recommendations: 20 ‘do pass Short Debate’ House Bill 3850, House Bill 4005, 21 House Bill 4103, House Bill 4269, House Bill 4489, House 22 Bill 4532, House Bill 4621, House Bill 5042, House Bill 23 5129, House Bill 5131, House Bill 5175, House Bill 6648, 24 House Bill 6989; ‘do pass as amended Short Debate’ House 25 Bill 4247, House Bill 5165 and House Bill 5320; ‘do pass as 26 amended Standard Debate’ House Bill 4127; recommends ‘be 27 adopted’ House Bill 620… House Resolution 629, House 28 Resolution 677; a Motion to Concur with Senate Amendments 1 09300104.doc 47 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 and 2 to House Bill 585. Representative Giles, Chairperson 2 from the Committee on Elementary & Secondary Education, to 3 which the following measures were referred, action taken on 4 March 3, 2004, reported the same back with the following 5 recommendations: ‘do pass Short Debate’ House Bill 3970, 6 House Bill 3974, House Bill 3979, House Bill 3980, House 7 Bill 4225, House Bill 4265, House Bill 4431, House Bill 8 4444, House Bill 6841, House Bill 6954; ‘do pass Standard 9 Debate’ House Bill 4266, House Bill 5041, House Bill 6714; 10 ‘do pass as amended Short Debate’ House Bill 3942, House 11 Bill 4058, House Bill 4167, House Bill 4522, House Bill 12 5215, House Bill 5562, and House Bill 6906; recommends ‘be 13 adopted’ a Motion to Concur with Senate Amendment #2 to 14 House Bill 754. Representative Saviano, Chairperson from 15 the Committee on Registration & Regulation, to which the 16 following measures were referred, action taken on March 3, 17 2004, reported the same back with the following 18 recommendations: ‘do pass Short Debate’ House Bill 4057, 19 House Bill 4229, House Bill 4410, House Bill 4864, House 20 Bill 4989, House… and House Bill 6552; ‘do pass as amended 21 Short Debate’ House Bill 4200, House Bill 4436, House Bill 22 5890, and House Bill 5891. Representative Lang, 23 Chairperson from the Committee on Gaming, to which the 24 following measures were referred, action taken on March 3… 25 March 3, 2004, reported the same back with the following 26 recommendations: ‘do pass Short Debate’ House Bill 4283. 27 Representative Delgado, Chairperson from the Committee on 28 Human Services, to which the following measures were 09300104.doc 48 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 referred, action taken on March 3, 2004, reported the same 2 back with the following recommendations: ‘do pass Short 3 Debate’ House Bill 4116, House Bill 4560, House Bill 4718, 4 House Bill 4953, House Bill 4964, House Bill 6920, and 5 House Bill 7038; ‘do pass as amended Short Debate’ House 6 Bill 3963, House Bill 3975, House Bill 4302, House Bill 7 4612, House Bill 4735, House Bill 4862, House Bill 4476, 8 House Bill 4493, House Bill 4558, House Bill 4870, House 9 Bill 5164; recommends ‘be adopted’ House Resolution 593, 10 House Resolution 594, House Resolution 703, and House Joint 11 Resolution 48. Representative Scully, Chairperson from the 12 Committee on Commerce & Business Development, to which the 13 following measures were referred, action taken on March 3, 14 2004, reported the same back with the following 15 recommendations: ‘do pass Short Debate’ House Bill 4640, 16 House Bill 5023; ‘do pass Standard Debate’ House Bill 6679; 17 ‘do pass as amended Short Debate’ House Bill 4227. 18 Representative Molaro, Chairperson from the Committee on 19 Revenue, to which the following measures were referred, 20 action taken on March 4, 2004, reported the same back with 21 the following recommendations: ‘do pass Short Debate’ 22 House Bill 3833, House Bill 3985, House Bill 4224, House 23 Bill 4263, House Bill 4351, House Bill 4461, House Bill 24 4510, House Bill 4700, House Bill 4887, House Bill 4914, 25 House Bill 4976, House Bill 4977, House Bill 5014, House 26 Bill 6632, House Bill 6745, House Bill 6806; ‘do pass as 27 amended Short Debate’ House Bill 4400, House Bill 4501, 28 House Bill 4716, House Bill 5095, House Bill 5157, House 09300104.doc 49 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Bill 5533, House Bill 5732, House Bill 6583, House Bill 2 6691, House Bill 6760, House Bill 7006. Representative 3 Flowers, Chairperson from the Committee on Human Services, 4 to which the following measures were referred, action taken 5 on March 4, 2004, reported the same back with the following 6 recommendations: ‘do pass Short Debate’ House Bill 4622, 7 House Bill 6739; recommends ‘be adopted’ House Bill 650… 8 House Resolution 654 and House Resolution 713. 9 Representative McAuliffe, Chairperson from the Committee on 10 Veterans’ Affairs, to which the following measures were 11 referred, action taken on March 4, 2004, reported the same 12 back with the following recommendations: ‘do pass Short 13 Debate’ House Bill 4371, House Bill 4372 and House Bill 14 4491; ‘do pass as amended Short Debate’ House Bill 4992, 15 House Bill 4996; recommends ‘be adopted’ House Resolution 16 688. Representative Fritchey, Chairperson from the 17 Committee on Judiciary-Civil Law, to which the following 18 measures were referred, action taken on March 4, 2004, 19 reported the same back with the following recommendations: 20 ‘do pass Short Debate’ House Bill 4723. Representative 21 Delgado, Chairperson from the Committee on Judiciary- 22 Criminal Law, to which the following measures were 23 referred, action taken on March 4, 2004, reported the same 24 back with the following recommendations: ‘do pass Short 25 Debate’ House Bill 3978, House Bill 4027, House Bill 4036, 26 House Bill 4135, House Bill 4271, House Bill 4287, House 27 Bill 4288, House Bill 4426, House Bill 4739, House Bill 28 4827, House Bill 5016, House Bill 5021, House Bill 5061, 09300104.doc 50 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 House Bill 6874, House Bill 6951, and House Joint…; ‘do 2 pass as amended Short Debate’ House Bill 3869, House Bill 3 4023, House Bill 4067, House Bill 4120, House Bill 4395, 4 House Bill 4424, House Bill 4505, House Bill 4650, House 5 Bill 4790, House Bill 4825, House Bill 6786, House Bill 6 6902, and House Bill 7015. Representative Hoffman, 7 Chairperson from the Committee on Transportation & Motor 8 Vehicles, to which the following measures were referred, 9 action taken on March 4, 2004, reported the same back with 10 the following recommendations: ‘do pass Short Debate’ 11 House Bill 4920; ‘do pass as amended Short Debate’ House 12 Bill 4337, House Bill 4457 and House Bill 5020. 13 Representative Daniels, Chairperson from the Committee on 14 Developmental Disabilities & Mental Illnesses, to which the 15 following measures were referred, action taken on March 4, 16 2004, reported the same back with the following 17 recommendations: ‘do pass as amended Short Debate’ House 18 Bill 4092 and House Bill 5000. Representative Franks, 19 Chairperson from the Committee on State Government 20 Administration, to which the following measures were 21 referred, action taken on March 4, 2004, reported the same 22 back with the following recommendations: ‘do pass as 23 amended Short Debate’ House Bill 6983; ‘do pass Standard 24 Debate’ House Bill 3906 and House Bill 4363; ‘do pass Short 25 Debate’ House Bill 6681, House Bill 6848 and House Bill 26 6893; recommends ‘be adopted’ House Resolution 627. 27 Representative Burke, Chairperson from the Committee on 28 Executive, to which the following measures were referred, 09300104.doc 51 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 action taken on March 4, 2004, reported the same back with 2 the following recommendations: ‘do pass Short Debate’ 3 House Bill 4720; ‘do pass as amended Short Debate’ House 4 Bill 4572 and House Bill 6753; recommends ‘be adopted’ 5 Floor Amendment #1 to Senate Bill 1626. Representative 6 Franks, Chairperson from the Committee on State Government 7 Administration, to which the following measures were 8 referred, action taken on March 4, 2004, reported the same 9 back with the following recommendations: ‘do pass as 10 amended Short Debate’ House Bill 6848 and House Bill 6983; 11 ‘do pass Standard Debate’ House Bill 3906 and House Bill 12 4363; ‘do pass Short Debate’ House Bill 6681 and House Bill 13 6893; recommends ‘be adopted’ House Resolution 627. 14 Representative Collins, Chairperson from the Committee on 15 Juvenile Justice Reform, to which the following measures 16 were referred, action taken on March 4, 2004, reported the 17 same back with the following recommendations: ‘do pass as 18 amended Short Debate’ House Bill 4566 and House Bill 4610; 19 ‘do pass Short Debate’ House Bill 4975. Representative 20 Bradley, Chairperson from the Committee on Personal & 21 Pensions, to which the following measures were referred, 22 action taken on March 4, 2004, reported the same back with 23 the following recommendations: ‘do pass Short Debate’ 24 House Bill 6616; ‘do pass as amended Short Debate’ House 25 Bill 4109 and House Bill 4575. Representative Howard, 26 Chairperson from the Committee on Computer Technology, to 27 which the following measures were referred, action taken on 28 March 4, 2004, reported the same back with the following 09300104.doc 52 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 recommendations: ‘do pass Short Debate’ House Bill 6992. 2 Representative Osterman, Chairperson from the Committee on 3 Local Government, to which the following measures were 4 referred, action taken on March 3, 2004, reported the same 5 back with the following recommendations: ‘do pass Short 6 Debate’ House Bill 3890, House Bill 4239, House Bill 4280, 7 House Bill 4779, House Bill 4958, and House Bill 7263; ‘do 8 pass as amended Short Debate’ House Bill 2633, House Bill 9 4017 and House Bill 4238. Introduction of House 10 Resolutions. House Resolution 725, offered by 11 Representative Madigan. House Resolution 726, offered by 12 Representative Younge.”
13 Speaker Madigan: “The House shall come to order. Mr. Clerk. 14 Mr. Clerk, what is the status of House Bill 4031?”
15 Clerk Mahoney: "House Bill 4031 has been read a second time, 16 previously. Amendment #1 was adopted in committee. Floor 17 Amendment #2, offered by Representative McKeon, has been 18 approved for consideration.”
19 Speaker Madigan: “Mr. McKeon.”
20 McKeon: “Thank you, Mr. Speaker. Floor Amendment #2 restricts 21 the Bill solely to the City of Chicago. Makes no other 22 substantive changes.”
23 Speaker Madigan: “The Gentleman moves for the adoption of the 24 Amendment. The Chair recognizes Mr. Black.”
25 Black: “Thank you very much, Mr. Speaker. Will the Sponsor 26 yield?”
27 Speaker Madigan: “Sponsor yields.” 09300104.doc 53 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Black: “Representative, so, this… the Amendment then would 2 alleviate any concerns that a downstate… or actually in any 3 other county or city in the state other than Chicago would 4 not have to worry about the 100-foot minimum being changed, 5 correct?” 6 McKeon: “It would make no… have no impact whatsoever.” 7 Black: “Fine, thank you.” 8 Speaker Madigan: “Those in favor of the Amendment say 'aye'; 9 those opposed say 'no'. The 'ayes' have it. The Amendment 10 is adopted. Are there any further Amendments?”
11 Clerk Mahoney: "No further Amendments. No Motions filed.”
12 Speaker Madigan: “Third Reading. Mr. Clerk, what is the status 13 of House Bill 2626?”
14 Clerk Mahoney: "House Bill 2626 is on Supplemental Calendar #1, 15 is on the Order of Concurrence.”
16 Speaker Madigan: “The Chair recognizes Mr. Hannig. Mr. Hannig”
17 Hannig: “Yes, thank you, Mr. Speaker and Members of the House. 18 Last year we authorized the State of Illinois to issue 19 variable rate bonds. The… the Governor’s Office of 20 Management and Budget has advised us that some bond 21 councils around the state, not all, but a few feel that we 22 need to make some adjustments in the language that 23 authorized that… that procedure. Now, all the bond 24 councils are in agreement that we have to make a very 25 simple change. So, this proposal says that for the 26 purposes of limiting it… it… its changes from words 27 ‘limiting interest rate risk’ to ‘limiting, reducing or 28 manage interest rate exposure.’ It’s a very simple 09300104.doc 54 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 proposal that allows the bond councils throughout the State 2 of Illinois to all agree that we can proceed along the 3 lines that we authorized the Governor’s Office to proceed 4 last year. So, that’s what the Bill is about and I’d be 5 happy to ask… answer any questions and I’d ask for your 6 ‘yes’ vote.” 7 Speaker Madigan: “Mr. Cross. Mr. Cross. Mr. Cross.” 8 Cross: “Mr. Speaker, I… I won’t take a lot of time up. But I’m 9 gonna encourage the Members on our side of the aisle to at 10 least vote ‘present’ on this Bill and no more. If they 11 don’t want to vote ‘no’, that’s okay. This may be a great 12 idea, Mr. Speaker, but the reality is we all found out 13 about this Bill within the last hour or two. May be a 14 great idea, may be a bad idea. We don’t know. But for 15 this Bill, that deals with a large amount money, it deals 16 with financing for the State of Illinois, has implications 17 on how we handle our budget, we feel is something that 18 should be given to all of us in a more timely manner. 19 Again, it may be a good financial move. We don’t know 20 because of the amount of time we’ve had to analyze this 21 particular Bill. I would caution and I would urge all of 22 the people on our side to vote ‘present’ or ‘no’. I would 23 think that given the history of this caucus of trying to 24 work with people, we’ve been wanting… we’ve worked with the 25 Governor’s Office over the past year, that we could have 26 had a little more heads-up on this particular topic. And I 27 want to stress this may be a fine idea. It may be a good 28 management tool for the budget director. And we all feel 09300104.doc 55 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 we have an obligation to solve this budget problem. But I 2 would ask that those working on the budget be a little more 3 respectful of this side of aisle in giving us documents 4 such as this, Bills such as this with the significance that 5 this Bill provides in a more timely matter. Thank you, Mr. 6 Speaker.” 7 Speaker Madigan: “Mr. Black.” 8 Black: “Thank you, Mr. Speaker. I won’t belabor the point. I 9 certainly agree with the House Republican Leader. But I 10 would ask if the Gentleman would yield for two questions?”
11 Speaker Madigan: “Sponsor yields.”
12 Black: “Representative, there is also language in this Senate 13 Amendment that says clearly no additional bonding authority 14 is granted, correct?”
15 Hannig: “That’s correct.”
16 Black: “So, we’re only dealing with the base borrowing of a… of 17 a year ago, right?”
18 Hannig: “Well, we’re… yet… that’s correct.”
19 Black: “All right.”
20 Hannig: “This authorizes no additional…”
21 Black: “All right.”
22 Hannig: “…borrowing.”
23 Black: “All right, no additional borrowing. Now moving back 24 and forth from a fixed rate to variable whichever would be 25 in the best interest and no pun intended, in other words, 26 that we pay the least interest. Do you have any idea what 27 a bond trader or a broker would charge every time we would 28 move from variable to fixed or fixed to variable? In… in 09300104.doc 56 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 all honesty, this isn’t a trick question. I have no idea 2 what these people would… would charge. My guess is it 3 would be a substantial amount of money.” 4 Hannig: “I was advised that we… we have a rate for… of $2.40 5 per bond which is pretty much a stable rate for this next 6 issuance instead that the…” 7 Black: “In other words…” 8 Hannig: “…that the Governor’s Office anticipates…” 9 Black: “…that would be the fee charged… it’s a set fee that 10 they charge for the trade or to move back and forth?”
11 Hannig: “…it’s a… it’s a bid amount, Representative.”
12 Black: “And that would be per $10 thousand per million dollars. 13 I mean, what would the rate…”
14 Hannig: “Representative, I… I apologize that I don’t know the… 15 the… I know it’s the $2.40 but I don’t know what the base 16 is.”
17 Black: “Okay. And… and the only…”
18 Hannig: “But… but it’s a bid amount, Representative…”
19 Black: “All right.”
20 Hannig: “…and it’s a competitive market that we’re in.”
21 Black: “And… and very competitive. And the only reason I ask 22 is that I wanted to make sure that when we… when we get all 23 these details worked out that we will, in fact, save more 24 money in… in later interest costs than we will incur in 25 expense for the expense of the trade.”
26 Hannig: “Absolutely, Representative.” 09300104.doc 57 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Black: “And… and I was sure that that’s where you’re headed, I 2 just wanted to… to make sure that’s… that we were on that 3 page.” 4 Hannig: “Yes.” 5 Black: “Thank you very much.” 6 Speaker Madigan: “Mr. Hannig to close.” 7 Hannig: “Yes, thank you, Mr. Speaker and Members of the House. 8 The safeguards that exist for bonding the 9 percent limit 9 in interest rates, the 20 percent amount that we can use in 10 variable rates, they’re not affected by this Bill. This 11 Bill does not authorize any additional borrowing. All this 12 Bill does is clarify some language so that the lawyers who 13 issue these variable rate bonds or who rule on these 14 variable rate bonds are satisfied that the language that we 15 passed last year, the bipartisan language that we passed 16 last year can be perfected, that we can save the maximum 17 amount of moneys for our State of Illinois. So, that’s 18 what this Bill’s about and I’d ask for your ‘yes’ vote.”
19 Speaker Madigan: “The question is, 'Shall this Bill pass?' 20 Those in favor signify by voting 'yes'; those opposed by 21 voting 'no'. The Clerk shall take the record. On this 22 question, there are 62 ‘aye’ and 35 ‘no’. Mr… there are 62 23 ‘yes’ and 35 ‘no’. This Bill, having received a 24 Constitutional Majority, is… excuse me, the House does 25 concur in Senate Amendment #3 and the Bill, having received 26 a Constitutional Majority, is hereby declared passed. 27 Agreed Resolutions.” 09300104.doc 58 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 Clerk Mahoney: "Agreed Resolutions. House Resolution 710, 2 offered by Representative Steve Davis. House Resolution 3 712, offered by Representative Monique Davis. House 4 Resolution 714, offered by Representative Chapa LaVia. 5 House Resolution 717, offered by Representative Cross. 6 House Resolution 718, offered by Representative Jakobsson. 7 House Resolution 720, offered by Representative Yarbrough. 8 House Resolution 722, offered by Representative Capparelli. 9 House Resolution 723, offered by Representative Froehlich. 10 House Resolution 724, offered by Representative Gordon. 11 House Resolution 727, offered by Representative Lang. 12 House Resolution 728, offered by Representative Rose. 13 House Resolution 729, offered by Representative Flider. 14 House Resolution 730, offered by Representative Dugan. 15 House Resolution 731, offered by Representative Flider. 16 House Resolution 732, offered by Representative William 17 Davis. Senate Joint Resolution 66. 18 19 RESOLVED, BY THE SENATE OF THE NINETY-THIRD GENERAL ASSEMBLY 20 OF THE STATE OF ILLINOIS, THE HOUSE OF REPRESENTATIVES 21 CONCURRING HEREIN, that when the two Houses adjourn on 22 Thursday, March 04, 2004, the Senate stands adjourned until 23 Tuesday, March 23, 2004 at 12:00 noon; and the House of 24 Representatives stands adjourned until Tuesday, March 23, 25 2004, at 1:00 o'clock p.m. Adopted by the Senate March 4, 26 2004.”
27 Speaker Madigan: “On the question of the Agreed Resolutions, 28 Representative Hannig moves that the Agreed Resolutions be 09300104.doc 59 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 adopted. Those in favor say 'aye'; those opposed say 'no'. 2 The 'ayes' have it. The Agreed Resolutions are adopted. 3 On the question of the Adjournment Resolution, Mr. Hannig 4 moves that the House stand adjourned until Tuesday, March 5 23 at 1:00 p.m., providing perfunctory time for the Clerk. 6 Those in favor say 'aye'; those opposed say 'no'. The 7 'ayes' have it. And the House does stand adjourned until 8 Tuesday, March 23 at 1:00 p.m., providing perfunctory time 9 for the Clerk.”
10 Clerk Mahoney: "Road condition reports are on the Speak… in the 11 well of the chamber. House Perfunctory Session will come 12 to order. Committee Reports. Representative Bradley, 13 Chairperson from the Committee on Personnel & Pensions, to 14 which the following measure/s was/were referred, action 15 taken on Thursday, March 04, 2004, reported the same back 16 with the following recommendation/s: recommends 'be 17 adopted' Motion to Concur with Senate Amendment #3 to 18 House Bill 2626. On the Order of First Reading. Senate 19 Bill 2171, Spons… offered by Representative Coulson… Senate 20 Bill… Senate Bill 2171, a Bill for an Act concerning 21 professional develp… development, offered by Representative 22 Coulson. Senate Bill 2552, offered by Representative 23 Molaro, a Bill for an Act concerning taxes. Senate Bill 24 2744, offered by Representative Flowers, a Bill for an Act 25 concerning insurance coverage. Senate Bill 3083, offered 26 by Representative Hamos, a Bill for an Act concerning 27 finance. Senate Bill First Reading. Senate Bill 2620, 28 offered by Representative Mathias, a Bill for an Act 09300104.doc 60 STATE OF ILLINOIS 93rd GENERAL ASSEMBLY HOUSE OF REPRESENTATIVES TRANSCRIPTION DEBATE 104th Legislative Day 3/4/2004 1 concerning insurance. There being no further business, the 2 House Perfunctory Session will stand adjourned." 09300104.doc 61