Monday, March 05, 2007

This Could Be Most Anti-Business Legislature Ever

Usually it's during the final few weeks or month of the Illinois General Assembly session when major grass roots efforts are launched. Members of associations, employees of Illinois businesses, doctors, patients, taxpayers and just about anyone else who cares are urged to contact their legislators and ask them to vote for or against a critical bill that is making its way toward passage.

At the same time, newspaper and radio ads might appear and in some situations, television commercials will be aired.

This year, it seems as if the campaign is going to begin much earlier.

In fact, for the sake of business and health care interests in Illinois, it must begin earlier.

For even in the still-early stages of the 95th General Assembly, it is becoming more evident that this could be the most anti-business and anti-taxpayer legislative session ever.

And doctors and hospitals, who won a still-unsettled victory with a medical malpractice reform bill in 2005, are also in the line of fire.

How so? Look at HB 2692 or HB 26952692.

Both are "shell" bills introduced by House Speaker Michael Madigan and parked in the House Executive Committee. Both deal with medical malpractice and although they have no specific language in them, they are there, ready to be amended with specifics, if the Speaker and House Democrats decide to do something with medical malpractice statutes. It is not likely that the trial lawyer-influenced House would do anything positive for the docs or hospitals unless a grass roots gun is held to their collective heads, as it was in the 2004-2005 cycle.

That gun needs to be re-armed -- soon -- and by the business community too. Especially, in fact, by the business community.

Very early in this session of the General Assembly, it is obvious that legislators and the Governor are on the attack. The headlines suggest the Governor is leading the assault but he has willing allies in the General Assembly.

Many of the news headlines today and over the weekend reported on the new taxes on business -- a gross receipts tax, a new payroll tax. In its weekly Springfield Highlights, the Illinois Manufacturers Association said, "Imposition of a Gross Receipts Tax will disrupt and cripple the Illinois economy." The Illinois Chamber of Commerce said a gross receipts tax will negatively impact job creation in Illinois.
Fortunately the IMA, Illinois Chamber and others are carrying the battle on tax increases. They need support from their members and others.

The ICJL is going to wage the battle -- with their help -- on some of the outrageous assaults on civil justice that the trial lawyers and their allies have launched -- primarily against the institutions that create jobs for Illinois residents.

One of the most offensive and destructive bills is one we touched on last week and unfortunately today it is a step closer to enactment.

SB 1296, sponsored by Sen. John Cullerton, D-Chicago, was passed by the Senate Judiciary Civil Law Committee on a 6-4 vote last Wednesday. The six Democrats on the Committee voted for it, the four Republicans voted against.

Here are the committee members:

Senate Judiciary (Civil) Committee:
John J. Cullerton (D)
Kirk Dillard (R)
Don Harmon (D)
Dan Cronin (R)
William R. Haine (D)
Randall M. Hultgren (R)
Michael Noland (D)
Matt Murphy (R)
Ira I. Silverstein (D)
A. J. Wilhelmi (D)

On Friday, the bill was advanced to Third Reading (final passage stage) in the Senate so it could be passed and sent to the House at any time.

There is only one purpose for this bill: to enable personal injury trial lawyers to collect money from the defendant with the deepest pocket in a personal injury case, without regard to which of multiple defendants might be most at fault. The trial lawyers can settle with those with the least financial resources -- even if they are most at fault -- and go after the defendant with the most financial resources, even if that defendant had little fault.
Ironically, this kind of anti-business legislation is coming at a time when some Illinois judicial systems, including Madison County, are trying to improve their reputations and make Illinois less hostile to outsiders.

"If enacted, Senate Bill 1296 will put Illinois further out of step with its neighbors, out of step with fairness, out of step with common sense and drop Illinois deeper into the tort 'hellhole' category that drives businesses out of Illinois," said Steven M. Puiszis, president of the Illinois Association of Defense Counsel and a partner at Hinshaw & Culbertson LLP. "Senate Bill 1296 is bad public policy and should not be passed into law."

Here's what needs to be done:

Members of the Illinois Senate -- Republican and Democrat -- need to be encouraged to vote against SB 1296 when it comes before the full Senate. If you're an Illinois resident or business, you can locate your Senator (or senators if you live and work in different districts) by following this link to the ICJL's CONTACT YOUR LEGISLATOR page.

You can (should) write to ALL members of the Senate. Their names can be found at this link: ILLINOIS SENATE. All Senators can be reached at this address:

Senator (name)
Illinois State Capitol
Springfield, IL 62706

You may also find their telephone number and District office address at this link.

The other bill we wrote about last week, SB 747, was held in the Senate Judiciary Committee last week, pending some further discussion with the sponsor, Sen. Don Harmon, D-Oak Park. The bill could be called for consideration as early as Tuesday when the Senate Judiciary Committee meets.

To his credit, Harmon has delayed action until more discussion is held but he and his trial lawyer-backed colleagues have the votes they need.

This bill is a horrible money-grab. It allows compensation to plaintiffs and their lawyers for amounts that were not actually lost. The tort system is intended to compensate people for their losses.

This bill fabricates losses so the plaintiffs and their lawyers can get more. The bill includes the specific language, " ... shall not be allowed to present evidence ..." directed at defendants who wish to prove the truth of actual losses.

A reader could get the impression that supporters of business, of doctors, and of civil justice reform aren't doing anything positive. That's not the case but the hostile forces in control of the General Assembly are flexing their muscle.

As evidence: nine pro-reform bills were introduced in the Senate but only one has been allowed out of the Rules Committee and scheduled for action. That is a bill to improve standards for "expert testimony" in civil cases. SB 1549 is scheduled for a hearing Tuesday in the Senate Judiciary Committee.

All of the other bills introduced in the Senate have been held in the Rules Committee.

In the House, the situation is similar. Eight reform bills were introduced and all were sent to the Executive Committee where they are likely to never be called.

It is a terribly hostile environment.

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