Sen. Chris Balkema

Amends the Sex Offender Registration Act. Provides that a registrable sex offense includes the offense of unauthorized video recording and live video transmission, when the victim is a person under 18 years of age, the defendant is not a parent of the victim, the offense was sexually motivated as defined in the Sex Offender Evaluation and Treatment Act, and the offense was committed on or after the effective date of the amendatory Act.

Amends the Military Veterans Assistance Act. Expands the Act to allow for the formation of multi-county Veterans Assistance Commissions. Provides that veteran service organizations located in 2 or more adjacent counties having a population of 60,000 or less may enter into an agreement to come together and jointly form a multi-county Veterans Assistance Commission to serve the adjacent counties in accordance with the Act. Provides that a multi-county Veterans Assistance Commission may also be formed under an agreement between an existing county Veterans Assistance Commission and a veteran service organization located in an adjacent county that is without a veterans assistance commission and has a population of 60,000 or less. Requires an agreement to form and maintain a multi-county Veterans Assistance Commission to set forth: (i) the distribution of funding with respect to each member county; (ii) the location of the Commission's office; (iii) the type of services provided; (iv) the superintendent selection or appointment process; (v) Commission rules and policies; and (vi) the composition of delegates and alternates on the Commission. Provides that multi-county Veterans Assistance Commissions shall have the same powers and duties under the Act as Veterans Assistance Commissions that serve one county. Makes corresponding changes in the Counties Code, the Illinois Public Aid Code, the Drug Court Treatment Act, the Veterans and Servicemembers Court Treatment Act, and the Mental Health Court Treatment Act. Effective immediately.

Creates the Reducing Barriers to Start Act. Beginning January 1, 2026, this State shall encourage the elimination of all first-year business fees relating to any license or registration for any new business or person establishing a new business, including home-based businesses, whose principal place of business is in this State.

Maddy summarySB 3986 stops a scheduled July 1, 2026 increase to Illinois' motor fuel tax that would have been triggered by the Consumer Price Index (CPI). This bill directly affects motor fuel retailers and consumers by preventing a tax hike that would have automatically occurred based on inflation. The key provision amends the Motor Fuel Tax Law to specifically exclude the July 1, 2026 CPI adjustment, effective immediately upon enactment. The change halts an automatic annual tax increase mechanism tied to inflation data.

Amends the Business Corporation Act of 1983. Provides that, in the case of a domestic or foreign corporation, no payment is required for a franchise tax that would have been due and payable on and after January 1, 2029. Provides that all amounts remaining in the Corporate Franchise Tax Refund Fund shall be transferred to the General Revenue Fund no later than December 31, 2030. Makes changes in provisions concerning the statute of limitations. Repeals provisions concerning franchise taxes payable by domestic and foreign corporations on January 1, 2030. Effective immediately.

Amends the Downstate Teacher Article of the Illinois Pension Code. Provides that employers under the Article may elect to establish a self-managed plan for members as an alternative to the traditional benefit package. Provides that an employee of an employer that establishes a self-managed plan shall be given the choice to elect which retirement program he or she wishes to participate in with respect to all periods of covered employment occurring on and after the effective date of the employee's election. Sets forth provisions concerning definitions, adoption of the self-managed plan by employers, selection of service providers, establishment of an initial account balance, employee and employer contributions, plan termination, vesting, and benefit amounts. Provides that any benefit increase that results from the amendatory Act is excluded from the definition of "new benefit increase". Amends the State Mandates Act to require implementation without reimbursement.

Amends the Public Utilities Act. Provides that all decarbonization pilots, pathways, or infrastructure plans under a Future of Gas proceeding pursuant to the final Order of the Commission in Docket No. 24-0158 shall undergo a Regulatory Takings Assessment prior to approval. Requires the Assessment shall be conducted by an independent third party and evaluated and confirmed by intervenors and stakeholders. Provides that the Assessment shall evaluate certain factors. Provides that a mandate in a decarbonization pilot, pathway, or infrastructure plan shall not be approved if the mandate risks creating a taking without compensation that is equivalent to at least 80% of depreciated asset value. Provides that the Commission shall coordinate with the Environmental Protection Agency to ensure the alignment of air pollution standards and shall require, by rule, uniform metrics across decarbonization pilots, pathways, and infrastructure plans, including bill impacts and equity analyses. Provides that rulemaking pursuant to the amendatory Act shall be completed by June 1, 2026 and rules adopted pursuant to the amendatory Act shall be applied to all Phase 2C proposals, as specified under the final Order of the Commission in Docket No. 24-0158.

Amends the Illinois Power Agency Act. Provides that it is the policy of the State to rapidly transition to 100% clean energy by 2060 (rather than 2050). Amends the Public Utilities Act. In provisions relating to performance incentives and metrics for electric utilities designed to encourage those utilities to support and facilitate the State's clean energy transition, extends timelines by 10 years from existing statutory dates to allow for competitive market development and cost declines. Amends the Environmental Protection Act. Provides that all electricity generating units and large greenhouse gas-emitting units that use coal or oil as a fuel and are not public GHG-emitting units shall permanently reduce all CO2e and co-pollutant emissions to zero no later than January 1, 2040 (rather than 2030). Further provides that All EGUs and large greenhouse gas-emitting units that use coal as a fuel and are public GHG-emitting units shall permanently reduce CO2e emissions to zero no later than December 31, 2055 (rather than 2045). Provides that if the emissions reduction requirement is not achieved by December 31, 2045 (rather than 2035), the plant shall retire one or more units or otherwise reduce its CO2e emissions by 45% from existing emissions by June 30, 2048 (rather than 2038). Provides that no later than January 1. 2050 (rather than 2040) all EGUs and large greenhouse gas-emitting units that have a NOx emission rate of greater than 0.12 lbs/MWh or a SO2 emission rate greater than 0.006 lb/MWh, and are not located in or within 3 miles of an environmental justice community designated as of January 1, 2021 or an equity investment eligible community shall permanently reduce all CO2e and co-pollutant emissions to zero, including through unit retirement or the use of 100% green hydrogen or other similar technology that is commercially proven to achieve zero carbon emissions.

Amends the Public Utilities Act. Provides that, prior to approving or directing any decarbonization pathway, pilot program, infrastructure investment, or regulatory mandate related to the natural gas distribution system, the Commission shall conduct a comprehensive, independent cost-benefit analysis that evaluates: (i) life-cycle greenhouse gas emissions reductions; (ii) cumulative energy system costs, including any stranded asset risks estimated at no less than $80,000,000,000 by 2050 under high-electrification scenarios; (iii) ratepayer bill impacts for all customer classes, with a focus on low-income and non-migrating customers; (iv) system reliability and safety under State standards; (v) equity impacts, including cost shifts to vulnerable populations; (vi) workforce and job impacts; and (vii) the extent to which competitive market mechanisms, such as private investment, third-party financing, and supplier competition, can achieve equivalent or superior outcomes at lower costs. Provides that the Commission shall not approve a decarbonization pathway, pilot program, infrastructure investment, or regulatory mandate unless the pathway, program, investment, or mandate demonstrates net benefits under the cost-benefit analysis without prioritizing an approach where regulated solutions increase costs without proportional benefits. Provides that the Commission shall use transparent, market-based data from sources such as PJM Interconnection, LLC (PJM), Midcontinent Independent System Operator, Inc. (MISO), and Chicago Citygate and coordinate with applicable biennial long-term gas infrastructure plans.

Amends the Time Standardization Act. Provides that daylight saving time shall be the year-round standard time of the entire State. Makes other changes. Effective January 1, 2026.