Update Illinois Reopening

As of June 26th, all four Illinois regions have moved to Phase 4 of Governor Pritzker’s plan to gradually reopen the State of Illinois. Few of the changes from Phase 3 to Phase 4 directly impact the motor vehicle retail industry, but Phase 4 includes changes that open additional sectors of the economy and make child care more readily available for working parents. Advancing to Phase 4 is seen as a sign that the Governor and his advisors see the State making progress
against COVID-19.

Some key changes in Phase 4 included: Increasing the size of gatherings from 10 to 50 people; reopening all child care and summer programs, subject to IDPH guidance; permitting all outdoor recreation; reducing limitations on the return to work for “non-essential employees”; and reopening bars and restaurants (with limited capacity).

The Department of Commerce and Economic Opportunity (DCEO) released Phase 4 guidance for retail businesses and a retail business toolkit. This information can be found on the IADA website at: illinoisdealers.com.

IADA recommends that dealers continue to follow the IADA Operation Recommendations for Dealerships found on our website at illinoisdealers.com.

LEGISLATIVE UPDATE

Our effort to repeal the $10,000 trade in cap was on track in the Senate, but was stonewalled by the House and ultimately not considered during the special four day legislative session. The abbreviated legislative session was severely limited due to the ongoing pandemic. We will make another attempt in the fall veto session and will update you as we approach the session dates. Now is an excellent time to contact your Representatives and Senators via our website to ask for their support of the repeal effort!

The General Assembly reconvened for a four-day session in late May to pass the FY21 budget appropriations bill, providing for $42.9 billion in General Revenue Fund (GRF) spending, including debt service, transfers, and short-term borrowing. The budget assumes $36.8 billion in GRF revenues and plans to borrow the remaining $4.5 billion.

The Legislature approved increases in workers’ compensation benefits for essential employees who contract COVID-19 and increases unemployment benefits. The workers’ compensation protections are more limited than previously overturned emergency rules that had been proposed by the Pritzker Administration. The final package is the result of an agreement between business and labor. The bill creates a rebuttable presumption for all essential frontline workers, meaning that if they contract COVID-19, it is presumed they did so on the job. Employers can rebut this presumption by showing that they were following CDC or IDPH guidance. Simple exposure does not qualify for the presumption, so the employee must actually contract the virus. Employers will also receive a temporary total disability (TTD) offset for employees on paid sick leave or extended FMLA. Additionally, the bill extends unemployment insurance (UI) benefits up to 20 additional weeks.

Federal and local elections will be held this fall and the Graduated Income Tax Amendment will be on the ballot in November. In order to ratify the amendment, 60% of those voting on the question or a majority of those voting in the election would need to vote for the amendment.

The proposed rates are not included in the amendment although the following rates have been approved by the Legislature if the amendment passes. IADA will keep you update on new legislative developments as they arise.