HB0341 102ND GENERAL ASSEMBLY

LRB102 04389 CPF 14407 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0341

Introduced 1/29/2021, by Rep. Mark Batinick

SYNOPSIS AS INTRODUCED:

20 ILCS 3305/7.1 new

Amends the Illinois Emergency Management Agency Act by creating the Fair Business Treatment Law. Provides that if the Governor issues a proclamation declaring a disaster under the Act or an executive order relating to the same disaster for which the proclamation was issued, and the proclamation or executive order includes one or more restrictions upon the retail sale of goods or services within Illinois, the restriction must be enforced so as not to favor any one industry classification of persons engaged in the business of selling tangible personal property at retail over any other industry classification of such persons. Requires the Illinois Emergency Management Agency to develop a protocol for the fair enforcement of proclamations declaring a disaster under the Act. Requires the Agency, in developing and maintaining the protocol, to consult with relevant private sector stakeholders, including representatives of the Illinois retail sales industry. Effective immediately.

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Emergency Management Agency Act is amended by adding Section 7.1 as follows:

(20 ILCS 3305/7.1 new)

Sec. 7.1. Fair Business Treatment Law.

(a) This Section may be referred to as the Fair Business Treatment Law.

(b) The General Assembly finds that in March 2020, and in the following months of calendar year 2020, the people of the State of Illinois faced a virus that causes a contagious disease named COVID-19. The global pandemic caused by this virus led to significant deaths, illnesses, and economic disruption throughout Illinois. The Governor of Illinois responded to the COVID-19 pandemic by issuing a series of emergency executive orders, commencing with Executive Order 2020-3 and continued through following executive orders. These executive orders were described as efforts to reduce contagion and diminish the ability of the virus that causes COVID-19 to pass from person to person within Illinois.

The General Assembly: (i) recognizes the need for emergency management authority powers to deal with a disaster of a magnitude such as that caused by COVID-19 in the year 2020; but on the other hand (ii) sharply opposes the use of emergency management authority powers to draw distinctions between groups and sectors of retail businesses, and between persons engaged in the business of selling tangible personal property at retail.

For example, within the North American Industry Classification System, the retailing of shoes and footwear is classified as industry classification #4482. At the same time, the retailing of goods and services provided by a pharmacist is classified as industry classification #44611. If, at any time, an emergency relating to contagious disease is declared by executive authority, including, but not limited to, a declaration under the Illinois Emergency Management Agency Act, this declaration may order the closure of nonessential businesses. As one example of businesses that may be ordered closed, a closure order may affect businesses defined as operating within industry classification #4482. These are persons engaged in the business of selling tangible personal property at retail that concentrate on shoe retailing. At the same time, the same declaration may declare an exception to the closure order for business establishments that are defined as engaged in essential businesses. These essential businesses are classified, for the purpose of an emergency order, as including a group of persons engaged in the business of selling tangible personal property at retail that are legally distinguished from other such groups. "Essential businesses" may be classified as including pharmaceutical care, goods, and professional services. A classification of this type was set forth and enforced in calendar year 2020 by Executive Order 2020-10 and succeeding executive orders.

The General Assembly finds that if: (i) an essential business is allowed to remain open; (ii) the essential business's physical business model also includes the retailing of goods within sectors other than those defined as essential; and (iii) the essential business's entire place of business is allowed to remain open, then market activity will shift from nonessential businesses to firms classified as enjoying the status of being an essential business.

The General Assembly finds that this distinction between essential businesses and nonessential businesses threatens Illinois jobs. The General Assembly finds that the outcome of any distinction between so-called essential businesses and so-called nonessential businesses is to allow essential businesses to enjoy and maintain a strategic advantage over nonessential businesses at a level that may threaten the jobs of Illinois workers and the survival of Illinois persons engaged in the business of selling tangible personal property at retail.

The legislative intent of this Section is to reduce the inequality created by the process described in this subsection (b), and in its place to create equality between persons engaged in the business of selling tangible personal property at retail.

(c) As used in this Section:

"Industry classification" means classifications under the North American Industry Classification System (NAICS) as maintained within the United States.

"Person engaged in the business of selling tangible personal property at retail" means both a purchaser and a delivering supplier maintaining a place of business in this State, as required by the particular context.

(d) If the Governor issues a proclamation declaring a disaster under this Act or an executive order relating to the same disaster for which the proclamation was issued, and the proclamation or executive order includes one or more restrictions upon the retail sale of goods or services within Illinois, including, but not limited to, the activities of persons engaged in the business of selling tangible personal property at retail falling under paragraphs (9) and (12) of Section 7 of this Act, the restriction must be enforced in such a way as not to favor any one industry classification of persons engaged in the business of selling tangible personal property at retail over any other industry classification of such persons.

(e) The Illinois Emergency Management Agency shall develop, by administrative rule, a protocol for the fair enforcement of a proclamation declaring a disaster under this Act or an executive order relating to the same disaster for which the proclamation was issued. The protocol shall: (1) operate across industry classifications; (2) create equal treatment for all industry classifications involving the retail sale of goods or services; and (3) apply to all persons engaged in the business of selling tangible personal property at retail. In developing and maintaining the protocol, the Agency shall consult with relevant private sector stakeholders, including, but not limited to, representatives of the Illinois retail sales industry.

Section 99. Effective date. This Act takes effect upon becoming law.