Clark Kaericher | Vice President of Government Affairs | 618-806-1501

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October 20, 2023


The Technology Council seeks to aggressively and proactively promote the interests of the Illinois technology community by advocating for public policy that fosters innovation and promotes economic growth. The Council will seek to promote workforce development policies, advocate for world-class technology infrastructure, avoid overregulation on the industry and support innovators access to the capital they need to grow.

Just as we predicted back in May, Veto is here after what feels like the blink of an eye summer. Luckily, this week is not expected to be nearly as jammed packed with action as a May session day.

 

New Bills Filed


HB 4182 (Niemerg) - Creates the Construction Zone Safe Detour Act. Establishes that a company that provides GPS travel services in the State is required to ensure that at least one person is available to receive official requests 24 hours per day, 7 days per week from emergency services, Illinois State Police, or the Department of Transportation for the purpose of implementing proper detours in the event of construction or emergency. Requires a GPS service provider to upload the detour and routing information provided by emergency services, Illinois State Police, or the Department of Transportation into its navigation system to properly route users of the GPS service provider's systems. Provides that a GPS service provider that fails to implement proper detour routing on an ongoing and emergency basis may be liable for treble damages.


SB 2590 (Harriss) - Creates the Adult Content Age Verification Act. Defines terms. Provides that a commercial entity that knowingly and intentionally publishes or distributes material harmful to minors on the Internet from a website that contains a substantial portion of material harmful to minors shall be subject to civil penalties if the entity fails to perform reasonable age verification methods to verify the age of individuals attempting to access the material. Provides that the Attorney General may investigate alleged violations and initiate a civil action for an injunction and to assess civil penalties. Provides that the civil penalties shall be deposited into the Cyber Exploitation of Children Fund, which shall be expended for the investigation of cybercrimes involving the exploitation of children and for no other purpose. Amends the State Finance Act to make a conforming change.


Illinois Chamber Supports Data Center Project in City of Chicago

 

I recently wrote a letter of support to Aderman Pat Dowell in support of Digital Realty's newest proposed data center in Chicago. Provided below is a portion of the letter in support of a project that will provide many benefits for the local economy.

 

I write to express support for Digital Realty’s proposed data center located in your ward at 330 E. Cermak. This project will exceed half a billion dollars in capital investment and will create approximately 70 permanent jobs. The tenants will also hire additional employees to work at the site.

 

Digital Realty currently operates nine data centers in the City of Chicago, including the Lakeside Technology Center, which is across the street from the new project. Digital plans to build a small bridge across the street to connect the new facilities. The new site should see more than one hundred tenant visitors each week, around the same number seen by Lakeside.

 

Digital Realty has pledged to use local union labor in the project, and they have committed to signing a project labor agreement. An estimated 80-120 union workers will be used in the construction. Additionally, the site is estimated to provide an approximate $10 million in increased property taxes annually.

 

The Illinois Chamber fully endorses this project and its resulting economic gains. The constant construction investment, jobs created and new revenue for the City represent a win for the economy, the City and our workforce.

 

View a copy of the letter here.

 

The data center incentive has been one of the best economic development tools in decades for Illinois. We are always happy to support projects of this type for our members.

 

Rulemaking


MICROCHIP INDUSTRY The DEPARTMENT OF COMMERCE AND ECONOMIC OPPORTUNITY proposed a new Part titled Manufacturing Illinois Chips for Real Opportunity (MICRO) Act (14 IAC 120; 47 Ill Reg 14153) implementing Article 110 of Public Act 102-700, known as the MICRO Act. The purpose of the Act and this Part is to attract semiconductor and microchip production to Illinois via tax credits to businesses that manufacture semiconductors, microchips or their component parts and are located, or planning to locate, in Illinois. To qualify for the tax credit, a new manufacturer must invest at least $1.5 billion in capital improvements at the project site and create 500 full-time equivalent jobs within 5 years; a new component parts manufacturer must invest at least $300 million in capital improvements and create at least 150 full-time equivalent jobs within 5 years.  Manufacturers or component parts manufacturers planning to convert or expand an existing Illinois facility must invest at least $100 million in capital improvements and create at least 75 full-time equivalent jobs within 5 years. The amount of the tax credit will be based on the jobs created that pay at least 20% above the average wage for full-time workers in similar positions in the county where the facility is located.  A business receiving the MICRO tax credit cannot also be receiving EDGE (Economic Development for a Growing Economy) tax credits or similar economic development tax credits. Once approved, the business may receive an income tax credit of up to 75% of the increased incremental income tax receipts attributable to its new employees, plus up to 10% of the training costs of the new employees. If the project is located in an underserved area or energy transition area (a county of fewer than 100,000 residents, or a municipality, in which a fossil fuel plant or a coal mine was closed in the last 6 years or is scheduled to be taken out of service in the next 6 years), 100% of the increased incremental income tax attributable to new employees may be claimed toward the credit, along with 10% of new employee training costs. Additionally, the business may receive an exemption from electricity excise taxes.


INFO TECHNOLOGY SCHOLARSHIPS The ILLINOIS STUDENT ASSISTANCE COMMISSION proposed a new Part titled Illinois Graduate and Retain Our Workforce (iGROW) Tech Scholarship Program (23 IAC 2750; 47 Ill Reg 14754) implementing Public Act 103519. The Act and this rulemaking establish the iGROW scholarship program for students pursuing associate or bachelor’s degrees in computer science or information technology-related fields. For students enrolled at public institutions, the scholarship will cover tuition and fees, plus room and board at the standard undergraduate rates, that are not covered by other financial aid available to the student. Recipients enrolled at private institutions will receive no more than the maximum amount that would be payable to a student enrolled in the most expensive comparable program at a public institution. In return, the student must agree to work in Illinois at a qualifying job in the computer science or information technology field for at least one year for each year of scholarship assistance received (minimum 2 years).


BIPA Birthday Party Recap

I recently spoke on a BIPAbuzz panel at the Security Innovation Hub in Chicago and was joined by Congressman Bill Foster and Jake Parker from the Security Industry Association.

 

The event was titled "BIPA Turns 15... What Have We Learned?" and delved into the legal, political, ethical, and technological aspects of the Biometric Information Privacy Act (BIPA) as attendees learned about new solutions to remain compliant.

 

Class-action BIPA payouts have surpassed 1 billion dollars and are still rising. Now is a pivotal juncture for businesses across diverse sizes and sectors to grasp the significance of BIPA and actively engage in discussions.

 

Thank you to Doug OGorden, aka Dr. BIPA, for the invitation to speak on this critical subject for our state's businesses.

Articles of Interest 

Google Says AI-powered System Is Improving City Traffic Flows

A big climate change stress test is coming for Amazon sellers and suppliers

Meta’s unique approach to developing AI puzzles Wall Street, but techies love it

Illinois announces technology trainee program

No more passwords? Google looks to make passwords obsolete with passkeys

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