State Legislative Priorities 2017 (Summary)

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1 State Legislative Priorities 2017 (Summary) Seek passage of a state budget that provides necessary levels of funding for core agricultural programs to maintain existing services that protect consumers, landowners, and farmers. Maintain a balanced process for siting livestock farms through the Livestock Management Facilities Act (LMFA) that protects both the environment and farmers ability to raise livestock. Seek legislation allowing the Governor to increase Gross Vehicle Weight limits by 10% for divisible load agricultural commodities during a declared harvest emergency. SB 1576 (Sen. Anderson) & HB 2580 (Rep. Phelps). Seek legislation to reduce the current traffic and criminal conviction surcharge paid on truck overweight fines. SB 1581 (Sen. Anderson), HB 2890 (Rep. Phelps), & HB 3343 (Rep. Sims). Seek legislation amending expedited review procedures for new large, complex utility projects that will better protect landowners property rights. SB 777 (Sen. Righter) & HB 3207 (Rep. Parkhurst). Defend landowners property rights from legislation that would allow their property to be taken without just compensation. Oppose SB 1388 (Sen. Harmon) & HB 2557 (Rep. Welch). Explore opportunities to require all utility and pipeline projects to sign and adhere to Agricultural Impact Mitigation Agreements (AIMA). Support legislation that modernizes state sales tax incentives for ethanol blended fuels by expediting the sunset of the 10% ethanol blended fuel incentive and creates additional demand for the use of fuels containing higher ethanol blends. HB 2372 (Rep. Costello) Maintain reasonable penalties under the Rivers, Lakes, and Streams Act fine structure. Oppose an increase to Illinois minimum wage that is believed to be inflationary and would negatively impact Illinois business climate. Closely Monitor Local Government Consolidation. ILLINOIS AGRICULTURAL ASSOCIATION 1701 Towanda Avenue P.O. Box 2901 Bloomington, Illinois Phone: Fax: "Improve the economic well-being of agriculture and enrich the quality of farm family life."

2 State Legislative Priorities and Other Significant Legislative Issues for 2017 (Detail) The Illinois Farm Bureau Board of Directors approved at its December 2016 the following state legislative priorities for the 2017: Maintain a balanced process for siting livestock farms through the Livestock Management Facilities Act (LMFA) that protects both the environment and farmers ability to raise livestock. Since it was enacted in 1996, the LMFA has provided a balanced approach in protecting the environment and allowing farmers the ability to raise livestock on their farms. The LMFA provides consistent, statewide standards that ensure livestock farms will be sited on scientific, objective criteria, and that the rules are applied uniformly throughout the state. Experienced staff within IDOA review the design and construction of each farm to ensure it meets the requirements included in the law and is designed to be protective of the environment. The LFMA is working for the environment, for farmers, and for the State of Illinois. IFB will work to ensure that the LMFA and associated regulations maintain an appropriate balance between the protection of the environment and the protection of all farmers in Illinois. This will be done in a coordinated effort with the other livestock commodity groups through timely updates and discussions between all parties on issues facing the LMFA. Seek passage of a state budget that provides necessary levels of funding for core agricultural programs to maintain existing services that protect consumers, landowners, and farmers. The never-ending budget crisis will cause Illinois agriculture to again be faced with a proposed state budget in which tough decisions must be made on funding for state programs. IFB feels that necessary levels of funding for key Illinois Department of Agriculture programs are important. Programs like meat and poultry inspection, warehouse and grain dealer oversight, weights and measures, pesticide use, food and agricultural products inspection, animal health, and many other programs that provide direct support to production agriculture like Soil and Water Conservation Districts, Extension, county fairs, and others should receive the funding needed to provide services to the agriculture community. ILLINOIS AGRICULTURAL ASSOCIATION 1701 Towanda Avenue P.O. Box 2901 Bloomington, Illinois Phone: Fax: "Improve the economic well-being of agriculture and enrich the quality of farm family life."

3 Seek legislation amending expedited review procedures for new large, complex utility projects that will better protect landowners property rights. IFB policy seeks to amend the expedited review procedures in the Public Utilities Act to better protect landowners property rights. Policy also seeks to extend the deadline imposed on the ICC to rule on eminent domain requests approved through expedited review. Some recent utility projects in Illinois have utilized expedited review procedures in the consideration of their projects before the ICC. The use of expedited review for complicated projects that impact a large number of landowners has created significant concerns and hardship for landowners in the potential path of these projects. The expedited review procedures only allow a limited amount of time for consideration of and a decision on a specific project. Often, landowners impacted by a project do not have enough time to consider their options and participate in the review process. The changes to the expedited review procedures will help landowners better protect their property rights. Seek legislation to reduce the current traffic and criminal conviction surcharge paid on truck overweight fines. During the spring session of 2015, SB 1304, which created important reforms in law enforcement and a funding mechanism for body cameras worn by officers, was passed by the General Assembly and signed into law. However, the mechanism used to provide additional funds for the Law Enforcement Camera Grant Fund and the Traffic and Criminal Conviction Surcharge Fund created a significant burden on farmers and truckers in Illinois. The law increased the surcharge for traffic violations and criminal convictions from $10 per $40 of fine to $15 per $40 of fine. Truck overweight fines are considered traffic violations and have increasing and very costly fines. For example, under this new law, a speeding ticket with a $120 fine would see a total surcharge of $45, an increase of $15 over the current surcharge amount. However, a truck that is 5,000 lbs. overweight would receive a fine of $950 and a surcharge of $356, an increase in the surcharge of $118 over the current amount. As the truck increases in weight, so does the fine, leading to even more substantial increases in surcharges for overweight fines. Farmers or truckers should not be shouldering more of the cost of this initiative through dramatically higher surcharges on fines for overweight trucks. The sponsors of the original legislation creating the increased surcharges stated on the record they would work to address the concerns of IFB and the Midwest Truckers Association. Therefore, IFB will continue to seek legislation to reduce the traffic and criminal conviction surcharge paid on truck overweight fines. Seek legislation allowing the Governor to increase Gross Vehicle Weight limits by 10% for divisible load agricultural commodities during a declared harvest emergency. Under current Illinois law, the Governor can issue an emergency harvest declaration that allows a 20% tolerance for truck axle weights only. During harvest season, an increased tolerance to axle weights does little to help provide efficiencies in the transportation of agricultural commodities. Page 2 of 5

4 IFB will seek legislation authorizing the Governor during an emergency harvest situation to allow for a 10% gross vehicle weight (GVW) tolerance, while also reducing the current 20% axel weight tolerance to 10%. This will allow farmers to transport agricultural commodities from the field to local grain bins more efficiently, which will reduce overhead costs, save time, and allow for a more expedient harvest during an emergency. Neighboring states have similar provisions in law for GVW. As an example, in Iowa the Governor has statutory authority to increase the GVW and maximum axle weight limits on vehicles hauling divisible loads during emergency harvest situations. The harvest emergency is limited to a maximum weight of 90,000 pounds, cannot exceed the maximum axle weight limit by more than 12.5%, and must comply with posted weight limits on roads and bridges. Defend landowners property rights from legislation that would allow their property to be taken without just compensation. During the 2016 General Assembly session, legislation was introduced that would have allowed telecommunications companies to install their equipment in road rights-of-way without negotiating an easement with the underlying landowner. Illinois courts have held that easements for road rights-of-way are exclusively for road purposes. Landowners along most local roads continue to own the land underlying the right-of-way. An easement from landowners is currently required to be sought by telecommunications companies prior to installing cable or equipment in these road rights-of-way. It is expected that similar legislation will be introduced again during this legislative session. IFB will continue to defend landowners property rights from this unconstitutional taking of their property without just compensation. This past year, the legislation gained some success over our opposition. There is a significant lack of knowledge on how township and local roads work in relation to the roadright of ways. We anticipate that the private company will again pursue this legislation utilizing the same well connected contractual lobbying firm. Explore opportunities to require all utility and pipeline projects to sign and adhere to Agricultural Impact Mitigation Agreements (AIMA). AIMAs are an effective tool that provide protections for landowners when their property may be impacted by utility or pipeline projects. The AIMA outlines proper mitigation practices that will restore the land to its productive capability. Landowners are often encouraged to incorporate the AIMA into their lease agreements to add to the enforceability of the mitigation practices the agreement includes. Currently, AIMAs are required by law for wind farms projects and carbon dioxide pipeline projects. While most other utility and pipeline projects have an AIMA in place prior to approval and construction, they are not required to do so. There have also been recent concerns with the proper enforcement and policing of utility project contractors following the AIMA requirements. IFB will explore opportunities to require AIMAs for all utility and pipeline projects. Not only should they be required, but opportunities to improve upon enforcement of the AIMAs by the Illinois Dept. of Agriculture will also be investigated. Page 3 of 5

5 Support legislation that modernizes state sales tax incentives for ethanol blended fuels by expediting the sunset of the 10% ethanol blended fuel incentive and creates additional demand for the use of fuels containing higher ethanol blends. In the past several years, the ethanol industry has reached the goal of market saturation for gasoline blended with 10% ethanol (E10) in Illinois. There have been several voluntary efforts by agriculture and renewable fuels organizations to allow the state sales tax incentive on E10 to sunset early. This incentive would then be partially replaced by a grant program to encourage the development and installation of fuel delivery systems for gasoline containing higher blends of ethanol and other capital improvements. The sales tax incentive for E10 should be eliminated by expediting its sunset, with state funding and support then granted to create additional demand for fuels containing higher ethanol blends. We anticipate that the petroleum industry will continue to oppose the approach of expediting the sunset on E10 and transferring the current sales tax credit to gasoline blended with 15% ethanol (E15). Further complicating this issue is the continued pressure from A.B.A.T.E. (A Brotherhood Aimed Toward Education) of Illinois which adamantly opposes E15. IFB will work with the Illinois Corn Growers Association in seeking passage of this effort. Maintaining reasonable penalties under the Rivers, Lakes, and Streams Act fine structure. During the 2015 spring session of the Illinois General Assembly, the Department of Natural Resources (IDNR) proposed language that would increase penalties associated with a violation under the Rivers, Lakes, and Streams Act; more specifically for construction projects in a floodplain. Before IDNR introduced its language, the maximum penalty threshold was $1,000 while the application fee for a permit to construct could be upwards of $5,000 depending on the size and type of project. Illinois Farm Bureau worked with IDNR to come up with a reasonable solution. The compromise reached increased the penalties for a violation under the Act to 2 times the application permit fee, with a maximum penalty of $5,000. IDNR is continuing to request increasing the penalties, stating that the current penalty structure (2 times the application fee) is not significant enough to convince individuals to submit a permit application. IDNR believes the fines need to be increased so that the requirement to submit a permit or to respond to IDNR s request to correct illegal or improper construction projects in a floodplain cannot be ignored. Page 4 of 5

6 Oppose an increase to Illinois minimum wage that is believed to be inflationary and would negatively impact Illinois business climate. Both Cook County and the City of Chicago have implemented minimum wage increases that will raise the minimum wage to $13 over the next three years. With the passage of these increases, it is expected that the General Assembly will again attempt to increase the minimum wage statewide. Legislation was introduced during the last General Assembly that increased the minimum wage initially to $9.00 and then increased it by $0.50 annually until the minimum wage reached $ However, with Cook County and the City of Chicago setting their minimum wage rates at $13, we expect an assertive effort to match that wage level. IFB will continue to work with a coalition of other interested groups to oppose legislation that establishes an increase in Illinois minimum wage rate that is believed to be inflationary and would negatively impact Illinois business climate. Closely Monitor Local Government Consolidation. The office of Governor, Lt. Governor, and several members of the Illinois General Assembly continue to discuss eliminating units of local government. They have looked at all units of local government, including Soil and Water Conservation Districts, Road Districts, Townships, Drainage Districts, and others from the 127 different forms of local government. We will closely monitor all legislative proposals regarding the consolidation/dissolution of units of local government. Page 5 of 5

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