• The General Assembly was in session Tuesday, Wednesday and Thursday this week as both chambers concentrated on committee hearings and negotiations on the various bills pending this spring session. March 5th is the Senate committee hearing deadline date and March 12th is the House committee hearing deadline date.
   
• On Wednesday the Senate Local Government Committee approved legislation OPPOSED by the IAR. Senate Bill 3001, sponsored by Senator Susan Garrett would permit all counties the authority to establish an affordable housing trust fund by imposing ANOTHER surcharge on the recordation of any real estate related documents. Fees would be imposed by ordinance of the county board WITHOUT VOTER APPROVAL for the purpose of providing financial support for affordable housing activities for low and moderate income households “as determined by the county board”. The bill grants a county board the authority to impose a charge that begins at $5 in 2010 and 2011 which can be increased up to $10 after 2019. The IAR argued against this proposal in committee debate and was very disappointed in the 6-2 roll call vote. The bill is currently on final passage stage in the Senate. PLEASE RESPOND TO OUR CALL TO ACTION ON MONDAY URGING YOU TO CONTACT YOUR SENATOR TO ASK FOR A NO VOTE ON SB 3001.

Voting AGAINST the REALTOR position: Senators Maggie Crotty, Gary Forby, Linda Holmes, Toi Hutchinson, Terry Link and Pam Althoff

Voting WITH the REALTOR position: Senators Bomke and Burzynski

• Next Tuesday, March 2nd the Senate Judiciary Committee will consider IAR initiative Senate Bill 3747. As we have reported in past issues, this bill creates the Transfer Fee Covenant Act. The concept of these private transfer fees is that a covenant is recorded on property that requires future buyers or sellers to pay a transfer fee to whoever is designated in the covenant on all future transfers. These covenants set a dangerous precedent in attempting to establish a new estate in real property separate and apart from any possessory interest in the real property. SB 3747 declares these transfer fee covenants to be invalid and against public policy. SB 3747 is sponsored by Senators A.J. Wilhelmi, Kirk Dillard and Dale Righter.
   
• Thanks to the hundreds that responded to our Call to Action regarding House Bill 5071 that was scheduled for a hearing this week in the House Business and Occupational Licenses Committee. The Committee hearing was cancelled this week but the bill could be called next week. HB 5071 is an initiative of the Homebuilders Association and is STRONGLY OPPOSED by the IAR. HB 5071 deletes the “regular employee” definition within the Real Estate License Act. As you are aware, the Real Estate License Act has always had a provision exempting an individual or entity that is selling or leasing its own property from needing a license to do so. This exemption had included the “regular employees” of such owner or lessor. However, this limitation had never been clearly defined and the regulating agency, the Illinois Department of Financial and Professional Regulation sought clarity in the meaning of the term, and so a definition was added to the rewrite. This is a significant consumer protection issue.

• The House Judiciary I-Civil Law Committee this week approved bills of interest to REALTORS. House Bill 5429, sponsored by Representative Sara Feigenholtz, was also considered in the 2009 session. The bill creates the Homeowners’ Solar Rights Act and is intended to prohibit a homeowners’, property owners’ or condominium unit owners’ association from adopting bylaws, deed restrictions or covenants that would prohibit the installation of a solar energy system. The association would also be required to adopt an energy policy statement regarding the location, design and architectural requirements of solar energy systems. The association is given the right to determine the specific location where a solar energy system can be installed on the roof provided it does not impair the effective operation of the system and the solar energy system would be required to meet applicable standards and requirements imposed by State and local permitting authorities. Another amendment will be added to this legislation to address concerns raised by the IAR. House Bill 5282, sponsored by Representative Michael Connelly, makes changes to both the Code of Civil Procedure and the Joint Tenancy Act related to trusts. House Bill 5509, sponsored by Representative Elaine Nekritz, amends the Code of Civil Procedure to provide that the notice of a judicial sale of a unit of a common interest community must contain a statement concerning liability for common expenses. The bill also amends the Condominium Property Act to provide that a purchaser of such a unit at a judicial foreclosure sale or who acquires title from a mortgagee has the duty to pay certain proportionate common expenses. All these bills are pending on the House floor.
   
• The House Human Services Committee approved legislation this week to require that on or after January 1, 2011 any newly constructed dwelling unit or specified facility that has smoke detectors permanently wired into the structure’s AC power line must also maintain an alternative back-up battery power source. This bill, sponsored by Representative Jay Hoffman, is currently pending in the House.
   
• On Thursday, the House Environmental Health Committee heard testimony on House Bill 5224, which creates the Tenants Radon Protection Act. The bill, sponsored by Representative Dan Reitz, provides that before a lease is signed for the rental of any residential rental property the landlord must provide to the prospective tenant any records or reports pertaining to radon concentrations within the unit that present a radon hazard to the tenant. The bill provides for the form of the disclosure and also provides that a landlord must have a test performed by a radon contractor anytime a tenant does their own testing which indicates a hazardous level of radon. HB 5224 also provides that tenants may terminate the lease without penalty if a landlord has not corrected a radon hazard within 90 days of being notified of a hazard. The IAR testified in OPPOSITION to the bill citing the fact that the proposal contains some serious flaws. For example, the bill does not exclude dwelling units on the third floor or higher- an important provision which is contained in the Illinois Radon Awareness Act. The IAR and several committee members stressed that this and other provisions of the bill impose unnecessary and inefficient requirements on rental housing and needlessly increase the cost of rental housing. While the committee advanced the measure to the floor there was an agreement to hold the bill to determine whether this is a necessary regulatory program, and if so, how it can be more narrowly drafted. The Committee also heard testimony on House Resolution 790. HR 790 urges the Illinois Department of Agriculture, the Illinois Department of Public Health, and other relevant State agencies to not join the petition for an EPA waiver for residential Propoxur use in combating bed bugs and further urges relevant State agencies to fully examine their statutory authority to promote the use of integrated pest management strategies in the eradication of bed bugs. This led to a broader discussion of how the State is going to address the increasing problem of bed bug infestation in rental and hotel/motel properties. It is expected that the sponsor, Representative Ken Dunkin, will lead an effort to have a Task Force created to examine the issue and make recommendations to the General Assembly. The Task Force will be made up of various stakeholders, including the IAR.
   
• IAR lobbyists also participated in key meetings this week seeking to find consensus on legislation dealing with Appraisal Management Companies (HB 5868) and title insurance regulation (HB 5409 and SBs 2985 and 3374). The IAR also met with the sponsor and proponents of legislation to provide an affirmative defense to victims of domestic violence so that they cannot be evicted from rental property solely because of their victim status (HB 5523). The IAR is strongly opposed to the bill in its current form. We will keep you posted on developments on these important issues.
   
• The Senate unanimously approved Senate Bill 355 this week which would move Illinois’ primary back to the third week of March. You will recall that this was the date that had been in place since the 1970s but was changed in 2007 for the 2008 presidential primary. This measure now moves to the House for consideration. The bill is sponsored by Senator Deanna Demuzio and Representative Elaine Nekritz. In other election related news, the House Executive Committee this week approved HJRCA50- a proposal to amend the Illinois constitution to eliminate the office of the Lt. Governor. This proposed constitutional amendment is currently pending in the House.
   
• On Wednesday this week, the governor released state budget information and numbers for the estimated budget for the fiscal year 2011 which includes $2 billion in budget cuts. As reported by Illinois Statehouse News, the “…administration’s online budget preview offers a list of state revenues and a general list of where the governor plans to spend that money-but little else.” The governor urges Illinois citizens to make comments or suggestions which will be reviewed by staff in his office. Information can be viewed at www.budget.illinois.gov.
   
• Register today for the 34th annual Capitol Conference scheduled for Tuesday, March 23rd. Registration is only $15 until March 11th- after that date you must pay the walk-in fee of $25. To register, visit www.illinoisrealtor.org or call 800-252-2910.
   
• The Senate and the House will reconvene next week on Tuesday. The House is in until Thursday and the Senate is scheduled through Friday as their committee hearing deadline is set for that day. It will be a VERY HECTIC week!!