ISBA Statehouse Review for May 5, 2016
ISBA Director of Legislative Affairs Jim Covington reviews legislation in Springfield of interest to ISBA members. This week he covers Cannabis civil penalties (Senate Bill 2228), Limited Liability Company Act (House Bill 4361), Income shares and child support (House Bill 3982), IMDMA cleanup (House Bill 3898), and Land Trust Beneficiary Rights Act (House Bill 4697). More information on each bill is available below the video.
Cannabis civil penalties. Senate Bill 2228 (Steans, D-Chicago; Cassidy, D-Chicago) makes several changes to the Code of Criminal Procedure. It replaces criminal penalties for possession of small amounts of cannabis (less than 10 grams) with a civil fine of $100-$200. The other change at issue replaces the current “zero-tolerance” prohibition of driving with any trace of cannabis in the driver’s bodily fluids with a per se standard of five nanograms/milliliter of whole blood or ten nanograms/milliliter in any other bodily substance. It’s passed the Senate and on second reading in the House.
Limited Liability Company Act. House Bill 4361 (Nekritz, D-Buffalo Grove; Harmon, D-Oak Park) is a huge rewrite of the LLC Act. Establishes distinctions between membership interests. Provides for the appointment of officers. Authorizes the use of oral operating agreements. Makes changes concerning electronic signatures. Makes changes regarding a member's right to information. Provides that members of limited liability company are not agents solely because of membership. Expands the scope of operating agreements. Makes changes concerning unauthorized distributions. Provides that creditors acquire only distributional rights. Requires judicial action for dissolution based upon illegality. Abolishes certain statutory buyout rights. Provides for domestication of foreign companies. Provides for conversion of business entities into other forms. Requires the filing of a post office address for service of process. Limits the ability of companies to transact business until an application is filed with the Secretary of State. Makes technical and other changes. Effective July 1, 2017. It’s passed the House and on second reading in the Senate.
Income shares and child support. House Bill 3982 (Kelly Burke, D-Oak Lawn; Hastings, D-Matteson) moves Illinois into the majority of other states that have an “income shares” model for adjudicating child support. It’s passed the House and now on second reading in the Senate.
IMDMA cleanup. House Bill 3898 (Martwick, D-Chicago; Mulroe, D-Chicago) is a cleanup of last year’s rewrite of the IMDMA for technical cleanup for such things as referring to a section that no longer exists, etc. It does contain some substantive changes. It also includes a new Article 7 of the Parentage Act of 2015 affecting artificial reproduction. It is scheduled for hearing in Senate Judiciary Committee next week.
Land Trust Beneficiary Rights Act. House Bill 4697 (Williams, D-Chicago; Hastings, D-Matteson) provides that the rights of a beneficial owner may not be impaired in any way by the change of trustees if the identity of the trustee of a land trust has been changed by virtue of sale, assignment, appointment, or otherwise, but the beneficial owner or owners of the land trust remain unchanged. Provides that a change of trustees by a sale, acquisition, or appointment governed by the Corporate Fiduciaries Act is not a bar or defense to any court action filed by or in the name of either the previous trustee or the new trustee, regardless of whether the court action was originally filed in a representative capacity on behalf of the beneficial owner or owners. Passed the House and now in the Senate on second reading.