Latest news with #IllinoisRetailMerchantsAssociation
Yahoo
04-06-2025
- Business
- Yahoo
Amid court battle, lawmakers look to push back ‘swipe fees' ban
SPRINGFIELD – Illinois lawmakers have decided to delay a ban on 'swipe fees' for another year as bankers are locked in a court battle with the state over the ban. Lawmakers passed the Interchange Fee Prohibition Act last spring as part of the legislative package that enacted the state budget. It prohibits financial institutions from charging fees on the tax and tip portions of credit and debit card transactions. The rest of the transaction, including the price of goods or services, would still be subject to the fees. The ban was supposed to take effect on July 1, but lawmakers voted with strong bipartisan majorities Sunday morning to pass House Bill 742 to push the ban back until July 2026. Banking groups filed a lawsuit last August challenging the law on the grounds it superseded federal banking regulations. Bankers argued the law forces banks and credit card companies to implement costly new computer systems to differentiate between the transaction, tax and tip, and contended they can't comply with the law by July 1. A federal judge issued a preliminary injunction in December preventing the law, once it takes effect, from applying to federally chartered banks while declining to extend the injunction to state banks and credit card companies. In February, the judge declined to extend the injunction to credit unions, though it was extended to out-of-state banks that operate in Illinois. The case has remained unresolved in the courts since then, leading lawmakers to push back the start of the ban. The measure pushing back the effective date still needs approval from Gov. JB Pritzker. Banking groups supported the delay and continued their messaging campaign against the underlying legislation that passed a year ago. 'This law will cause widespread economic disruption, and mounting evidence shows that the measure overwhelmingly benefits corporate megastores while placing an undue financial burden on small businesses and smaller financial institutions that form the backbone of our local economies,' Illinois Bankers Association Executive Vice President Ben Jackson said in a statement. The ban was a request of the Illinois Retail Merchants Association as part of a deal during budget negotiations last spring. State lawmakers capped a monthly sales tax deduction claimed by retailers at $1,000 to generate $101 million to fill a budget hole. In exchange, lawmakers passed the ban on swipe fees. IRMA said in a statement it was disappointed lawmakers have decided to delay the ban. 'By refusing to require compliance as originally intended, legislators are again taking hundreds of millions of dollars out of the pockets of working families and Main Street businesses and giving it to big banks, credit card companies and credit card processors,' IRMA CEO Rob Karr said in a statement. However, other business groups such as the Illinois Chamber of Commerce said lawmakers made the right decision and urged the legislature to fully repeal the law. Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Chicago Tribune
02-06-2025
- Business
- Chicago Tribune
Amid challenge from banks, Illinois legislators move to delay ban on certain credit card fees
Illinois legislators voted to delay for one year a ban on certain credit card fees that was set to take effect July 1 amid a legal challenge by banks. A measure passed by legislators and signed into law by Gov. JB Pritzker last year would prevent banks and credit card companies from charging retailers a small fee on sales taxes and tips. Pritzker still has to sign off on the legislature's move to extend the deadline to July 1, 2026. Pritzker on Sunday said that while the delay wasn't his initiative, he anticipated the interchange fee issue 'will probably get resolved over the next year' as it is currently with the courts. Retailers who support the measure say the fees come at a cost to consumers. Banks say the law would create large costs within the payment processing system and inconvenience both businesses and customers. They've also said don't have the infrastructure in place to implement the ban. 'On the banking side, certainly, the technology doesn't exist, nor do we think it will any time soon,' Ben Jackson, executive vice president of government relations at the Illinois Bankers Association, said Monday. The technology needed will still not be ready by July 2026, he said. Rob Karr, president and CEO of the Illinois Retail Merchants Association, said in a statement Sunday that the delay would take money out of the pockets of Illinoisans and businesses by continuing to allow the fees. 'We remain committed to ensuring this law is not delayed further and urge lawmakers to renew the promise they made to stop the swipe fee greed that's driving up prices and making it harder for families and businesses to make ends meet,' Karr said. The provision on so-called interchange fees was tucked into last year's revenue bill in an effort to provide relief to retailers as the state enacted some $101 million in tax hikes on retailers. Banks ever since then have said the effective date was too soon. Illinois would be the first state to require a distinction on consumer retail transactions between goods, taxes and tips, creating the need for what opponents say would be a complicated and expensive software change. While the fight over over the ban reflects the national political battle between interest groups representing retailers and financial services like Visa and MasterCard, the Illinois law is separate from federal legislation on interchange fees that has been pushed by U.S. Sen. Dick Durbin. The federal lawsuit filed by the banking interests that challenges the ban has inched forward throughout the spring but it wasn't clear whether a final ruling would be reached by July 1. Financial companies scored a partial victory in court when a federal judge in December agreed to put a temporary hold on the law for some types of institutions including national banks, meaning that they don't need to comply with the law as court proceedings continue. That relief was later expanded to out-of-state banks doing business in Illinois, but other entities including in-state banks remain subject to the law. The IBA as well as the American Bankers Association, America's Credit Unions and the Illinois Credit Union League are plaintiffs in the suit, which names Illinois Attorney General Kwame Raoul as a defendant. An effort to repeal the law completely did not advance the spring legislative session, while the vote for the delay came on the session's last day. The Electronic Transactions Association, an association representing large companies including Visa, American Express and Bank of America, issued a statement Sunday applauding the decision to put the ban off for the year.
Yahoo
31-05-2025
- Business
- Yahoo
Illinois criminal justice advocates tout ‘Clean Slate' legislation as ‘economic boon'
SPRINGFIELD — Criminal justice reform advocates say legislation to seal criminal records for certain nonviolent crimes, which passed Friday in the House, would unlock economic opportunity for thousands of Illinoisans. The so-called Clean Slate Act has failed twice before, but activists see renewed fiscal messaging as the key to reinvigorating the campaign. This time, the bill's sponsor points to a 'diverse coalition of stakeholders' and backing from business groups as signs Illinois could become the 13th state to enact similar legislation. 'This is something I've worked on for six long years, and now we have law enforcement and the business community — folks like the Illinois Retail Merchants Association, the Illinois Manufacturers Association — all on board,' Rep. Jehan Gordon-Booth, D-Peoria, said in an interview. 'Not as a neutral party, but they are proponents. They want to see this bill passed.' Like earlier proposals, Senate Bill 1784 would require law enforcement agencies to automatically seal records for nonviolent criminal convictions twice a year — Jan. 1 and July 1. The records would no longer be public, although law enforcement and state's attorneys would retain access. Gordon-Booth has sponsored Clean Slate legislation twice before — once in 2021 and again in 2023 — but neither bill progressed past committee. Just a few days before the 2025 legislative session concluded, she filed it again. Within two days, it passed the House mostly along partisan lines, and is headed for debate on the Senate floor. The session ends at midnight Saturday, although the bill could still pass after that deadline. People convicted of certain violent offenses — including sex crimes against minors, DUI, reckless driving and violent offenses that require sex offender registration — would be ineligible to have their records sealed. 'I want to make this very, very clear: Serious criminal records are not eligible for automated sealing,' Gordon-Booth said during floor debate. Gordon-Booth argued that conviction records trap formerly incarcerated individuals in a state of perpetual punishment, eclipsing access to employment, housing and educational opportunities. She said Clean Slate would remove these barriers, helping system-impacted people reintegrate into society instead of recidivating. Paul Rothschild, managing director of operations for the Illinois Coalition to End Permanent Punishment — a group that advocates for the rights of people with criminal records — said he agrees. He said the justice system fails to follow through on its own promise: Once someone has served their time, they are entitled to a second chance. 'We believe that people should be accountable for the crimes that they commit. But we also believe there is an implied covenant that when they finish, they're supposed to be returned to the world made whole, and that covenant is not being kept by society. They're being forever subjugated in that lower caste, that lower class,' Rothschild said. More than 3 million Illinoisans have arrest or conviction records, and an estimated 921,000 people are eligible for 'sealing relief' — but only about 10% actually petition to have their records cleared, according to statistics from Live Free Illinois, a grassroots organization aimed at reforming the state criminal justice system and part of the Clean Slate Illinois steering committee, which coordinates the campaign's messaging and advocacy efforts. The bill would automate the process for individuals with nonviolent convictions to have their records sealed once they have served their sentences, completed probation, and remained crime-free. Many eligible individuals are deterred by steep fines, complex paperwork and long waiting periods, Gordon-Booth said. The 'burdensome' process has contributed to massive court backlogs, according to Clean Slate Illinois. 'It's going to automate the process, so this way we don't have to go through that whole trying to get the paperwork, trying to go through all the rigmarole,' said Chauncy Stockdale, who was formerly incarcerated and is now a member of the Live Free Illinois Fellowship, a reentry program that supports returning citizens. The measure passed the House 81-28, with five Republicans joining Democrats in support of the measure. No Democrats voted against the bill. During debate on the House floor, Minority Floor Leader Rep. Patrick Windhorst, R-Metropolis, voiced concerns about the tentative $18 million price tag, and whether the state is capable of fully funding the policy in the years ahead, leaving counties to cover the cost. 'If this isn't funded, we're either going to be sending a large unfunded mandate to our counties, or we're making a promise to 2.1 million people that will not be fulfilled without any funding,' he said. Gordon-Booth detailed a three year 'implementation ramp,' which would give the state time to identify funding sources for the local circuit clerks. She also said the Illinois State Police would absorb the initial costs and emphasized the state's commitment to supporting circuit clerks in the rollout phase. 'It is our full intention to provide clerks with all that they need to implement this,' she said. 'We are not going to send an unfunded mandate to our local governments.' On April 10, nearly 300 members, supporters and advocates from Live Free Illinois chapters gathered in front of the Abraham Lincoln monument in Springfield for Advocacy Day, calling on lawmakers to introduce the Clean Slate Act. Live Free Illinois — a faith-based nonprofit focused on ending gun violence and mass incarceration — organizes Black congregations to push for systemic change. The organization is involved in the broad-based Clean Slate steering committee, which also includes the Fully Free Campaign, the Illinois Coalition to End Permanent Punishments, and Impact for Equity. The day before, Muslim leaders also advocated for Clean Slate legislation at Illinois Muslim Action Day. Beyond criminal justice reform, advocates pushed a new messaging angle this year to usher the legislation across the finish line: Clean Slate could boost Illinois' economy. As of April, Illinois has one of the highest unemployment rates in the country, at 4.8% — above the national average of 4.2%, according to the data from the U.S. Bureau of Labor Statistics. Jerika Richardson, senior vice president for equitable justice and strategic initiatives at the National Urban League, said the act would open doors for thousands of people who have been barred from work because of background checks. 'There are so many employers and businesses across this country who are struggling to find the workers that they need, and part of the reason is because these records are barriers,' Richardson said. 'If Illinois passes the Clean Slate Act, you won't have to worry about businesses going to another state or leaving the country.' An amendment to the Illinois Human Rights Act, signed by Gov. JB Pritzker in 2021, expanded legal protections for state workers by prohibiting discrimination based on criminal convictions, in addition to arrest records. Yet many say they continue to face employment hurdles despite the law. People with conviction histories earn an average of 25% less than those with clean records — a gap the National Urban League says costs the state billions of dollars in lost wages. According to a news release from the National Urban League, the Clean Slate Act could generate more than $4.7 billion in lost wages for Illinois, easing economic disparities and addressing labor shortages. Gordon-Booth echoed Richardson's point, adding that her office frequently hears from constituents who are missing out on life-changing chances. 'I get calls from people saying, 'I had an opportunity to get my dream job, and it fell through because of something that I did when I was 18 or 19.' And we're talking about folks that are in their 30s,' Gordon-Booth said. 'They have not gone through the process of hiring a lawyer, going through the court-mandated process, and folks are losing out.' Reilly Cook is a graduate student in journalism with Northwestern University's Medill School of Journalism, Media, Integrated Marketing Communications, and a fellow in its Medill Illinois News Bureau working in partnership with Capitol News Illinois. Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
30-04-2025
- Business
- Yahoo
After years of negotiations, Illinois lawmakers consider measures to phase out plastic bags, foam food containers
CHICAGO — After more than a decade of negotiations and failed efforts to reduce the use of plastics, Illinois lawmakers are considering legislation that would prohibit large retailers from offering single-use plastic bags and ban the use of most polystyrene containers in the state over the next four to five years. Advocates, citing the threat of rising plastic waste to human and environmental health, say the timing for the bills is ripe given rising health concerns about microplastics and the passage of similar legislation in states like New Jersey and California. Retailers also support the measures, calling the requirements balanced and flexible, according to a statement from the Illinois Retail Merchants Association. But at the same time, President Donald Trump's administration is moving in an opposite direction, with Trump declaring America is going 'back to plastic' by reversing federal restrictions on plastic drinking straws and dismantling departments that regulate plastic pollution. In addition, some labor unions, including the Illinois Pipe Trades Association and AFL-CIO, oppose the move to do away with foam food containers. Manufacturers have expressed concerns the measures could lead to thousands of layoffs if the facilities that make the banned products are forced to shut down as their in-state customer base disappears. Two bills are awaiting a vote in the state Senate. One measure would use financial penalties under the jurisdiction of the attorney general and local state's attorney offices to restrict the sale or distribution of disposable containers made of polystyrene — known by the brand name Styrofoam — with the exception of egg cartons, starting in January 2030. The other bill would prohibit retailers with more than a dozen stores from offering or making available single-use checkout bags by January 2029. State Sen. Laura Fine, a Democrat from Glenview who's sponsoring the foam container bill, said there are alternatives to polystyrene and plastic bags and that the measures are necessary 'to get the bad products off the market so we could have a cleaner environment and help our kids.' Environmental advocates widely agree there's an unhealthy proliferation of plastic waste and that plastic bags and polystyrene are the 'worst of the worst,' partly because of how long these products take to decompose, said Emily Kowalski, outreach engagement manager with Environment Illinois. She noted about 22 million pounds of plastics enter the Great Lakes every year, according to 2022 estimates from the Rochester Institute of Technology. 'Nothing we use for just a few minutes should be allowed to pollute our water and environment for hundreds of years,' Kowalski said. Volunteers with the Alliance for the Great Lakes have collected more than 10 million pieces of litter in the past 20 years at beaches of the five Great Lakes, 86% of it partially or fully plastic, according to Andrea Densham, senior policy adviser with the environmental organization. Polystyrene foam pieces were the third most common litter item that volunteers found over the years. Densham said this is a threat to drinking water and the lakes, citing that the Great Lakes hold 20% of the world's fresh water and provide drinking water for over 40 million people. According to a 2024 study in the research publication Frontiers, continued exposure to microplastics through ingestion and inhalation can lead to inflammation, gastrointestinal disorders and chronic diseases. There have been previous efforts to reduce plastic in the state, such as Chicago's tax on plastic bags that increased from 7 cents to 10 cents per bag in January 2025 and a 2023 state law banning foam foodware at state facilities that went into effect this January. Advocates say these initiatives haven't been entirely effective. 'I've seen there's still foam in the Stratton cafeteria, so I would like to see the state leading by example,' said Jack Darin, director of the Illinois Sierra Club chapter, referring to a state government office building in Springfield that was required to stop procuring foam, or polystyrene, for use by January 2025 under the 2023 law. Sen. Cristina Castro's bill to ban plastic bags contains a provision that would eliminate municipal taxes on plastic bags by 2029, including Chicago's, which at 7 cents a bag in 2023 generated more than $17 million. Castro, of Elgin, said municipalities have not been using the extra cash to support sustainable initiatives, as was intended by advocates. An outright ban, instead of a tax, would be more successful in limiting plastic waste, Castro said. 'Instead of using the money for sustainability programs, a lot of them (municipalities) have used it for filling the coffers or plugging some other hole, which has frustrated a lot of the environmentalists, activists, who have said, 'Hey, that was supposed to help with recycling and things like that,'' said Castro. The Illinois Municipal League opposes the bill because of the provision dropping the bag tax, which it argues preempts local regulatory authority, the group's CEO, Brad Cole, said. Manufacturers and the unions take issue with Fine's foam foodware bill, arguing the measure would only shift consumers to use another type of plastic and cause significant job losses at polystyrene manufacturing plants. While the bills do not ban the production of polystyrene, Donovan Griffith, vice president for government affairs for the Illinois Manufacturers Association, said a loss of in-state customers holds a 'real potential for job losses.' Keith Clark, CEO of Dart Container, a polystyrene manufacturing company that employs more than 1,400 people in Illinois at facilities in Chicago, North Aurora and Country Club Hills, told the Tribune that the legislation, if passed, would 'certainly require us to reassess our Illinois operations in the coming years.' Brad Laporte, CEO of WinCup, a polystyrene manufacturer with two facilities outside of Chicago, said he worked with Illinois lawmakers to get the ban deadline extended to 2030 but still opposes it, saying the measure could even ban the company's new biodegradable foam foodware. Those products can decompose by 92% over four years in certain landfills, according to the company's website. Griffith also said polystyrene containers are cheaper and in some ways more environmentally friendly than alternatives that require more energy to produce, a point some environmental advocates take issue with. The four- to five-year runway before the measures would take effect is intended to give municipalities time to fill gaps in tax revenue, consumers to adjust behavior, large retailers to eliminate bag use and foam foodware and manufacturers to prepare for losing revenue from large retailers. 'This is a change in the way organizations do business,' said Fine, acknowledging her conversations with opponents of the bills. 'This is a huge step, but we have to protect our Great Lakes and our waterways and this is part of that process.' ____
Chicago Tribune
29-04-2025
- Business
- Chicago Tribune
After years of negotiations, state lawmakers consider measures to phase out plastic bags, foam food containers
After more than a decade of negotiations and failed efforts to reduce the use of plastics, Illinois lawmakers are considering legislation that would prohibit large retailers from offering single-use plastic bags and ban the use of most polystyrene containers in the state over the next four to five years. Advocates, citing the threat of rising plastic waste to human and environmental health, say the timing for the bills is ripe given rising health concerns about microplastics and the passage of similar legislation in states like New Jersey and California. Retailers also support the measures, calling the requirements balanced and flexible, according to a statement from the Illinois Retail Merchants Association. But at the same time, President Donald Trump's administration is moving in an opposite direction, with Trump declaring America is going 'back to plastic' by reversing federal restrictions on plastic drinking straws and dismantling departments that regulate plastic pollution. In addition, some labor unions, including the Illinois Pipe Trades Association and AFL-CIO, oppose the move to do away with foam food containers. Manufacturers have expressed concerns the measures could lead to thousands of layoffs if the facilities that make the banned products are forced to shut down as their in-state customer base disappears. Two bills are awaiting a vote in the state Senate. One measure would use financial penalties under the jurisdiction of the attorney general and local state's attorney offices to restrict the sale or distribution of disposable containers made of polystyrene — known by the brand name Styrofoam — with the exception of egg cartons, starting in January 2030. The other bill would prohibit retailers with more than a dozen stores from offering or making available single-use checkout bags by January 2029. State Sen. Laura Fine, a Democrat from Glenview who's sponsoring the foam container bill, said there are alternatives to polystyrene and plastic bags and that the measures are necessary 'to get the bad products off the market so we could have a cleaner environment and help our kids.' Environmental advocates widely agree there's an unhealthy proliferation of plastic waste and that plastic bags and polystyrene are the 'worst of the worst,' partly because of how long these products take to decompose, said Emily Kowalski, outreach engagement manager with Environment Illinois. She noted about 22 million pounds of plastics enter the Great Lakes every year, according to 2022 estimates from the Rochester Institute of Technology. 'Nothing we use for just a few minutes should be allowed to pollute our water and environment for hundreds of years,' Kowalski said. Volunteers with the Alliance for the Great Lakes have collected more than 10 million pieces of litter in the past 20 years at beaches of the five Great Lakes, 86% of it partially or fully plastic, according to Andrea Densham, senior policy adviser with the environmental organization. Polystyrene foam pieces were the third most common litter item that volunteers found over the years. Densham said this is a threat to drinking water and the lakes, citing that the Great Lakes hold 20% of the world's fresh water and provide drinking water for over 40 million people. According to a 2024 study in the research publication Frontiers, continued exposure to microplastics through ingestion and inhalation can lead to inflammation, gastrointestinal disorders and chronic diseases. There have been previous efforts to reduce plastic in the state, such as Chicago's tax on plastic bags that increased from 7 cents to 10 cents per bag in January 2025 and a 2023 state law banning foam foodware at state facilities that went into effect this January. Advocates say these initiatives haven't been entirely effective. 'I've seen there's still foam in the Stratton cafeteria, so I would like to see the state leading by example,' said Jack Darin, director of the Illinois Sierra Club chapter, referring to a state government office building in Springfield that was required to stop procuring foam, or polystyrene, for use by January 2025 under the 2023 law. Sen. Cristina Castro's bill to ban plastic bags contains a provision that would eliminate municipal taxes on plastic bags by 2029, including Chicago's, which at 7 cents a bag in 2023 generated more than $17 million. Castro, of Elgin, said municipalities have not been using the extra cash to support sustainable initiatives, as was intended by advocates. An outright ban, instead of a tax, would be more successful in limiting plastic waste, Castro said. 'Instead of using the money for sustainability programs, a lot of them (municipalities) have used it for filling the coffers or plugging some other hole, which has frustrated a lot of the environmentalists, activists, who have said, 'Hey, that was supposed to help with recycling and things like that,'' said Castro. The Illinois Municipal League opposes the bill because of the provision dropping the bag tax, which it argues preempts local regulatory authority, the group's CEO, Brad Cole, said. Manufacturers and the unions take issue with Fine's foam foodware bill, arguing the measure would only shift consumers to use another type of plastic and cause significant job losses at polystyrene manufacturing plants. While the bills do not ban the production of polystyrene, Donovan Griffith, vice president for government affairs for the Illinois Manufacturers Association, said a loss of in-state customers holds a 'real potential for job losses.' Keith Clark, CEO of Dart Container, a polystyrene manufacturing company that employs more than 1,400 people in Illinois at facilities in Chicago, North Aurora and Country Club Hills, told the Tribune that the legislation, if passed, would 'certainly require us to reassess our Illinois operations in the coming years.' Brad Laporte, CEO of WinCup, a polystyrene manufacturer with two facilities outside of Chicago, said he worked with Illinois lawmakers to get the ban deadline extended to 2030 but still opposes it, saying the measure could even ban the company's new biodegradable foam foodware. Those products can decompose by 92% over four years in certain landfills, according to the company's website. Griffith also said polystyrene containers are cheaper and in some ways more environmentally friendly than alternatives that require more energy to produce, a point some environmental advocates take issue with. The four- to five-year runway before the measures would take effect is intended to give municipalities time to fill gaps in tax revenue, consumers to adjust behavior, large retailers to eliminate bag use and foam foodware and manufacturers to prepare for losing revenue from large retailers. 'This is a change in the way organizations do business,' said Fine, acknowledging her conversations with opponents of the bills. 'This is a huge step, but we have to protect our Great Lakes and our waterways and this is part of that process.'
