May 21, 2019

May 21, 2019

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May 20, 2019

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Update to Illinois Captive Legislation (SB 1737)

On August 26, 2018, Illinois Governor Bruce Rauner issued an amendatory veto of Senate Bill 1737 (Amendatory Veto). The governor vetoed aspects of the bill, which he characterized as imposing additional regulatory barriers to short-term limited duration health plans (STLDs) and worker’s compensation insurance. The governor said he supported the bill’s captive insurance provisions, as well as its reinsurance provisions. The governor issued an Amendatory Veto Message in connection with his action.

Article IV, Section 9 of the Illinois Constitution dictates the procedure and time frame for the Illinois General Assembly’s consideration of the Amendatory Veto. The Illinois Senate may call the Amendatory Veto for consideration within 15 calendar days after the bill is placed on the Senate’s journal. If the bill is called for consideration, the Senate may either pass the bill as amended by the governor (requiring a majority vote) or vote to override the governor’s veto (requiring a 3/5s majority vote). If the Senate does not act, the bill dies. If the Senate acts to approve or override the bill, the Illinois House then has an additional 15 calendar days to either call the bill, accept the veto (by majority vote) or override (by 3/5s majority). Action by both the Illinois Senate and the House is required for the bill to become law.

Our understanding is that the Amendatory Veto will not be placed on the Illinois Senate’s journal, triggering the 15-day review period, until the Senate is next in session on November 13, 2018. As a result, we won’t know the ultimate fate of the bill until late November or December.

© 2019 McDermott Will & Emery

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About this Author

Mary Kay McCalla Martire, McDermott, local tax disputes lawyer, Internal Audits Attorney
Partner

Mary Kay McCalla Martire focuses her practice on state and local tax disputes. She helps clients with audits, tax-related litigation, letter rulings and settlement conferences. Mary Kay has experience resolving disputes involving income, sales and use, utility and telecommunications taxes, as well as premium and retaliatory tax.

Mary Kay has an extensive litigation background in state and federal court, as well as administrative tribunals. She has particular experience in the defense of qui tam (whistleblower) claims filed in the state...

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Thomas M. Jones, Partner, McDermott
Partner

Thomas (Tom) M. Jones advises clients on federal and state tax, insurance regulatory and legal matters concerning captive insurance and other alternatives to commercial insurance. He counsels multinational corporations, private businesses, taxable and exempt health care providers, trade associations, joint ventures, government instrumentalities, labor unions and enterprises of all types.

Tom has extensive transactional experience in major US and offshore captive insurance jurisdictions, including Arizona, the District of Columbia, Hawaii, Nevada, South Carolina, Texas and Vermont, as well as Barbados, Bermuda, the British Virgin Islands and the Cayman Islands.

A frequent guest speaker at international seminars and conferences, Tom makes numerous offshore and onshore presentations on captive insurance and related topics.

312-984-7536
Lisa Kaderabek, McDermott Law Firm, Chicago, Healthcare Law Attorney
Partner

Lisa M. Kaderabek focuses her practice on captive insurance, risk transfer, reinsurance and related matters for health care entities and other businesses. Other practice areas include health care transactions, including securities offerings, joint ventures, physician/hospital syndications, tax-exempt bond financings, mergers and acquisitions, partnerships, corporate governance and formation. 

Lisa advises and represents a wide variety of clients, including

  • Captive...

312-984-7649