NEWS

From the Illinois State Senate

State Senator Michael Frerichs, 52nd Legislative District

FOR IMMEDIATE RELEASE: March 15, 2012

Frerichs: First hearing on enterprise zones shows support of program from local officials and business leaders

SPRINGFIELD, IL- At Southern Illinois University’s Dunn-Richmond Economic Development Center in Carbondale, the bipartisan Senate Special Committee on Enterprise Zone Extensions met for its first public hearing to hear testimony from local elected officials, economic development representatives, business leaders, and enterprise zone representatives.  Committee Co-Chair Michael Frerichs (D – Champaign)

“Today’s hearing was the first opportunity to hear from communities regarding how beneficial enterprise zones are to local economies,” Frerichs said.  “Since 1982, enterprise zones have created more than 900,000 jobs across the state. Business leaders, community leaders and economic development representatives all agree that enterprise zones allow local governments and businesses to invest in creating and maintaining jobs.”

The Enterprise Zone Program, established in 1982, is one of the state’s most proven and successful economic development tools. Beginning next year, these zones will start to expire and businesses statewide will lose access to the various incentives they offer.

“The Committee heard from the mayors of Mount Vernon, West Frankfort and Nashville, all of whom praised the Enterprise Zone Program and encouraged the Committee to extend the program for another 25 years,” Frerichs continued.  “Representatives from Carbondale, Centralia, and Fairview Heights also spoke today of the real world benefits of enterprise zones.  I expect we will hear similar testimonies as we tour around the state next month.”

This session, Senator Frerichs introduced Senate Bill 3688 which would allow local governments to request a 25-year expansion to their enterprise zones allowing further investment into Illinois economy.  The Senate Special Committee on Enterprise Zone Extensions’ subject matter hearing on Senate Bill 3688 in Carbondale was the first of four to be held around the state with future hearings planned for Peoria, Rockford and Chicago. 

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SPRINGFIELD, IL - Businesses in Illinois that wish to incorporate societal and environmental impacts in decision-making would gain new legal protections under a new bill sponsored by State Senator Michael Frerichs (D - Champaign).

"This measure allows business executives to make decisions that may benefit the community or the environment and remove the risk of lawsuits for those decisions," Frerichs said. "Current law does not shield companies from certain litigation that may be brought about from a company making financial decisions with the consideration of outside stakeholders."

Senate Bill 2897 allows businesses to register with the State as "benefit corporations." According to the measure, benefit corporations must provide stakeholders with an annual report of the social and environmental impact of the business. Included in that report, the company must provide how the company sought specific public benefit and any hindrance to that public benefit.

The measure passed through the Senate today and moves to the House for further consideration. If signed into law, Illinois would be the eighth state to recognize benefit corporations. Currently, Hawaii, Virginia, Maryland, Vermont, New Jersey, New York and California have similar laws.

NEWS

From the Illinois State Senate

State Senator Michael Frerichs, 52nd Legislative District

FOR IMMEDIATE RELEASE: Tuesday, February 28, 2012 

Frerichs: COGFA Vote, Health Alliance Settlement Good News for Downstate Illinois

SPRINGFIELD, IL – Actions taken today by members of the Commission on Government Forecasting and Accountability (COGFA), including State Senator Michael Frerichs (D – Champaign), will allow Health Alliance’s settlement with the State of Illinois to be executed and the lawsuit to be dropped, thereby resolving the lingering controversy over the State’s group health insurance program. 

“Our actions today at COGFA create the opportunity for a much more favorable outcome for downstate Illinois,” said Frerichs. “We’ve allowed a portion of this process to be re-bid, and while there is no guarantee that Health Alliance will be awarded a contract, I believe they will be very competitive in their bid.”

COGFA today voted to allow the Department of Healthcare and Family Services (HFS) to operate a self-insurance program, removing the obstacles in the way of executing the previously-awarded Open Access Plan (OAP) contracts. COGFA then also voted to allow HFS to issue a supplemental Request for Proposal (RFP) for the HMO portion of the State’s group health insurance program. 

These actions preserve the HMO contract already awarded to Blue Cross Blue Shield of Illinois, as well as the OAP contracts awarded to HealthLink and PersonalCare. However, COGFA also allowed other HMO providers, like Health Alliance and Humana, to submit a new bid for the HMO program.

On April 6, 2011, the Governor’s Office and HFS announced the awarding of new health insurance contracts for state employees. Health Alliance, a long-time provider for many downstate employees headquartered in Frerichs’ district, was not awarded a contract. Blue Cross Blue Shield, whose HMO network existed only in the Chicago-area and collar counties, was the only HMO provider awarded a contract. Unfortunately for the many state employees living in downstate Illinois, an HMO option was not available in their area.

“Because we’ve re-opened just the HMO portion of the program for bids, we’ve maintained the integrity of the procurement process while also maintaining access to quality, affordable health care for tens of thousands of downstate residents,” said Frerichs. “I’m glad to see what has been a lengthy and involved process reach a responsible conclusion, agreeable to all parties.”

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