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interoior-header-Illinois

Legislative report

NAIFA Illinois Legislative Update 

By: Evan Manning, Lobbyist

May 27, 2026

 

Evan Manning

 

104TH ILLINOIS GENERAL ASSEMBLY:

The Illinois General Assembly returned to session on Monday, May 25, at 4 pm. There is one week left in the Spring Session. Adjournment is scheduled for May 31.

The Senate approved 66 House Bills on an Agreed Bill List. The House did not use an Agreed Bill List and instead considered each bill individually. In total, the Senate approved 17 Senate Bills and 140 House Bills this week. The House, meanwhile, approved 108 Senate Bills and 1 House Bill.

Budget: There was no formal movement on the budget this week. On May 7, each chamber compiled the Governor’s introduced budget into one amendment in each chamber, positioning it for future consideration. The leaders issued a joint statement at the time indicating the move was to allow adequate public viewing and input. HFA #1 to HB 131 (Welch) was subsequently assigned to the House Executive Committee, but has not been considered by the committee at this time. SFA # 1 to SB 2512 (Sims) was filed, but remains in the Committee on Assignments.

Note that both of these bills remain in the first chamber and will require three separate readings in the opposite chamber. It remains unclear if either of these bills will serve as the actual vehicle for the final budget.

BUILD Housing Package: The Senate filed a housing package Thursday evening after the chamber adjourned for the holiday weekend. The amendments are all pending in the Senate’s Committee on Assignments. The package includes:

  • SB 329 (Harmon) shifts the cost of leasing broker or leasing agent fees from the renter to the landlord.
  • SB 330 (Harmon) expands anti-discrimination protections for victims of gender-based violence by making it illegal in certain housing and lending situations to discriminate against someone because they are a survivor of gender-based violence.
  • SB 331 (Harmon) creates the Restock the Block Act to limit large institutional investors from buying large numbers of residential homes and imposes fees on large investors, with the proceeds being allocated to affordable housing.
  • SB 332 (Harmon) creates a tenant's right of first refusal, giving tenants the first opportunity to purchase their building before an owner can sell it to someone else.
  • SB 608 (Harmon) creates the Federally Assisted Tenant Protection Act, which prohibits most landlords and housing authorities that receive federal housing assistance money from imposing mandatory work requirements or time limits on tenants receiving subsidized housing in Illinois.
  • SB 635 (Harmon) creates the Faith-Based Housing and Mixed-Use By-Right Act, which makes it easier for churches and other religious organizations to build housing on land they own by limiting local zoning barriers.
  • SB 640 (Harmon) significantly reduces local zoning restrictions in Illinois and requires cities and counties to allow development of much denser “middle housing” (such as duplexes, four flats, cottages, townhomes, and auxiliary dwelling units) in areas currently zoned for single-family homes.
  • SB 643 (Harmon) creates a statewide “shot clock” for local governments reviewing building permits and inspections in Illinois and allows developers to use private third-party reviewers or inspectors if the government misses the deadlines.

Prescription Drug Advisory Board: A second attempt to create a Prescription Drug Advisory Board advanced this week out of the House on SB 3496 (Harmon/Syed), as amended. The Board is authorized to set maximum, state-regulated price limits on certain drugs. The bill allows the state’s Medicaid program and State Employees Health Programs to “opt in,” limits the number of medications subject to upper payment limits, and places a 5-year sunset on the statute. Passed the House 62-39 and now heads back to the Senate for concurrence.

Identical legislation was adopted on HFA #4 to HB 1443 (Syed) earlier this spring. That bill was debated on Third Reading but ultimately pulled from the record before a vote was taken. That measure was debated late in the day, and there were not enough Democratic members present to pass the measure.

Artificial Intelligence/Data: The Senate approved an AI/Data package, sending it to the House for consideration. These bills are scheduled for a hearing in the House Executive Committee on Wednesday, May 27, at 10 am in Room 118.

SB 315 (Edly-Allen) requires large frontier developers – like ChatGPT and Claude – to provide an independent, third-party annual report explaining what mechanisms they have in place to mitigate catastrophic risks, provide transparency reports, and report critical safety incidents to IEMA and the Attorney General. Passed the Senate 52-5.

SB 316 (Ellman) requires AI companies that use companion AI to implement methods for detecting user expression of suicidal ideation or self-harm, work to prevent such harm, and provide a notification to the user that refers them to a crisis service provider, such as the 988 suicide hotline. Also requires the chatbot to notify the user that they are speaking to a chatbot and not a human. Further grants the Attorney General enforcement authority and allows for a private right of action. Passed the Senate 57-0.

SB 317 (Ventura) requires consumers to be notified when they interact with an AI chat interface at the start of the conversation. Passed the Senate 57-1.

SB 318 (Stadelman) prevents the use of bots to purchase tickets in excess and prohibits a reseller from falsely representing that it is affiliated with an artist, team, or venue. Passed the Senate unanimously.

SB 340 (Murphy) mandates that consumers can opt out of having their data used for ads or sold to third parties. The measure also protects individuals from being subjected to algorithmic profiling that could influence major life decisions like loan approvals, job screenings, or insurance rates. The sponsor noted that medical records are exempt. Passed the Senate 54-3.

SB 343 (Guzmán) prohibits landlords from coordinating rental pricing indirectly through a shared third-party service or software, such as an algorithm that sets prices across multiple competing landlords. Passed the Senate 34-21.

SB 415 (Villa) allows school districts to use biometric data only for legitimate instructional purposes by the 2027-2028 school year. Passed the Senate 57-0.

SB 416 (Martwick) prohibits teachers from using artificial intelligence to assign grades to students’ work. Requires districts to adopt a policy regarding the use of AI in the district. Passed the Senate unanimously.

Meanwhile, the House approved HB 4248 (Hirschauer), as amended by HFA # 2 and 3, which creates the Algorithmic Pricing Prohibition Act to ban algorithmic pricing in Illinois -- a practice where businesses utilize personal data to create individualized prices through surveillance systems. The bill fully prohibits algorithmic pricing, which is defined as “a price for consumer goods or services generated in whole or in part using an automated decision system, machine learning model, or data-driven algorithm.” The bill does not prohibit ordinary sales, discounts, loyalty programs, coupons, or legitimate market-based pricing. Businesses can still adjust their pricing based on supply and demand, transportation costs, promotions, and competition. The Attorney General is authorized to enforce the Act and to investigate violations. The Attorney General can seek to restrain or enjoin violations through preliminary or emergency injunctions and may seek restitution and a civil penalty of up to $50,000 for each violation. Passed the House 78-19 and now moves to the Senate for consideration.

Mega Projects/Chicago Bears: The Senate did not act on the Mega Projects legislation, which would provide incentives for large-scale projects, including efforts to relocate the Chicago Bears to Arlington Heights. The Chicago Tribune offers the latest on the negotiations here.

Passed Both Houses: Below are highlights of bills that passed both chambers. They now head to the Governor’s desk.

HB 228 (Morgan/Aquino) bans hidden junk fees. In a later amendment that became the bill the insurance industry was removed as getting an exemption to the law. I reached out to the Attorney General’s Office for questions and comments and they responded as such. “HB 228 takes a meaningfully different approach: it is drafted as an amendment to the Consumer Fraud Act itself, which already contains an existing exemption for insurance (see 815 ILCS 505/10b). In light of that existing exemption, we believe insurance companies would be subject to HB 228 only with respect to any potentially false or deceptive advertising — and not with respect to the sale of insurance products.”

Passed the Senate 46 -12.

HB 4725 (Hoffman/Aquino) strengthens the Illinois Attorney General's Workplace Rights Bureau by granting it enhanced investigative tools to combat wage theft and unsafe working conditions. The bill empowers the bureau to issue subpoenas, conduct confidential interviews with employees, and inspect employers' premises and records. Passed the Senate 43-14-1.

HB 4456 (Faver Dias/Johnson) expands eligibility for the Low Income Home Energy Assistance Program (LIHEAP) to 300% of the federal poverty level, allowing individuals with an annual income of up to $47,880, or a family of four with a household income of up to $99,000, to qualify for relief. The legislation would also permanently prevent an expected increase in the surcharge rate. Passed the Senate 42-17.

HB 4461 (Briel/Guzman) prevents hospitals from placing liens on a patient's primary residence to recover unpaid medical debt. Passed the Senate 46-12.

HB 4584 (Davis/Castro) requires direct service workers to complete at least two hours of training on Alzheimer’s and dementia, including safety risks, communication, and behavior. The training must be completed within six months of employment and renewed annually. Passed the Senate unanimously.

HB 4606 (Faver Dias/Castro) requires the Department of Human Services to establish the administrative framework for voluntary, short-term home visits to all families with newborns. Passed the Senate 49-8.

HB 4834 (Cassidy/Johnson) excludes reproductive health medications and gender-affirming hormones (specifically testosterone, estrogen, GnRH analogues, mifepristone, and misoprostol) from the state's Prescription Monitoring Program (PMP) database. Passed the Senate 39-19.

HB 4844 (Hoffman/Martwick) mandates that employers with more than 25 employees compensate workers at their regular rate of pay while they serve on jury duty. The bill is an initiative of the Illinois Trial Lawyers Association. Passed the Senate 35-20-1.

HB 4948 (Deuter/Morrison) establishes the Intelligent Speed Assistance (ISA) Program for drivers who have been convicted of multiple reckless driving or high-speed offenses (exceeding 26 mph over the limit) within a 12-month period, requiring them to install speed-limiting technology in their vehicles or have their license suspended. Passed the Senate 49-9.

SB 3508 (Morrison/Morgan) is the Department of Insurance Omnibus bill. Passed the House 107-1.

SB 3815 (Ellman/Deuter) is an initiative of the Department of Insurance that prohibits insurers from denying coverage to individuals or employers due to unpaid premiums from prior, separate policies. The bill amends the Illinois Health Insurance Portability and Accountability Act to protect consumers from coverage denials based on past-due debts. The legislation does not apply to “grandfathered” health plans. Passed the House 94-5.

Passed the Senate: The following Senate Bills passed the Senate and now head to the House for consideration.

SB 3211(Hastings/Rita) expands and regulates the use of teledentistry to improve access to oral healthcare. The bill sets safety parameters for remote dental care while protecting patients. Passed the Senate unanimously.

SB 3777 (Johnson/Slaughter) codifies the use of disparate impact standards under the Illinois Human Rights Act, ensuring that policies that appear neutral on their face but disproportionately harm protected communities can still be challenged under state law. The sponsor believes the measure would reinforce Illinois’ authority to provide stronger protections than the federal minimum by safeguarding residents from systemic discrimination in employment, housing, education, financial credit, and public accommodations. Republicans objected, saying the bill does not “codify” and instead sets a new standard in Illinois. Passed the Senate 38-20.

SB 3223 (D. Turner/Gill) requires pharmacies to post information to help patients access recall notices for prescriptions. Passed the House unanimously.

The following bills passed the Senate and are now back in the House for concurrence.

HB 5284 (Morris/Lightford) creates the Menopause Equity and Care Act, aimed to improve menopause and perimenopause care by creating public education programs, mandating workplace accommodations, and requiring future insurance coverage. Passed the Senate 51-4.

HB 5000 (Gong-Gershowitz/Guzman) expands the state's healthcare transaction reporting laws and requires private equity firms and controlling parent companies to provide advance notice to the Illinois Attorney General before acquiring or restructuring healthcare facilities. Passed the Senate unanimously.

Other Senate Action:

HB 5295 (Canty/Villanueva) creates the Reproductive Health Records Privacy Act, safeguarding abortion-related and gender-affirming medical data from out-of-state disclosure. The bill works to prevent electronic networks from sharing protected health information with entities outside the state without explicit patient consent. Passed the Senate Executive Committee 9-4 and is pending before the full Senate.

HB 4953 (Deuter/Ellman) updates Illinois’ Wholesale Drug Distribution Licensing Act to allow prescription drugs that are not controlled substances to be delivered to additional authorized health care locations if the Illinois Department of Financial and Professional Regulation receives notice from the licensee approving the delivery location. Passed the Senate Licensed Activities Committee unanimously and is pending before the full Senate.

Key 2026 Session Dates:

May 22: Deadline -- 3rd Reading Substantive Bills in Second Chamber

May 31: Adjournment

GUBERNATORIAL HIGHLIGHTS:

Executive Order: Governor Pritzker issued Executive Order 2026-05, establishing the EngAging Illinois Multisector Plan for Aging Commission. The Commission will implement the State’s landmark Multisector Plan for Aging, a 10-year blueprint to address the needs of older adults, people with disabilities, and caregivers across Illinois.

The Executive Order emphasizes Illinois' commitment to helping residents lead dignified and meaningful lives. It introduces a comprehensive multisector plan, announced in January 2026, which includes strategies in community development, health, housing, transportation, caregiving, and financial services. The plan aims to support the health, connection, and engagement of older residents while addressing inequities and service gaps that hinder their security and stability as they age. Read more here.

Supportive Housing: The Illinois Housing Development Authority (IHDA) has announced $50 million in funding for six new permanent supportive housing developments across the state. This initiative will create 142 affordable housing units with on-site services for individuals and families facing disabilities, homelessness, or housing instability. The funding, part of IHDA’s Permanent Supportive Housing Development Program, aims to help Illinois reach “functional zero” homelessness by providing affordable housing combined with vital services like healthcare coordination and employment support, promoting long-term housing stability and reducing reliance on emergency services. Read more here.

Equal Pay Act Case Settlement: The Illinois Department of Labor reached a settlement with Metz Culinary Management, LLC after an investigation into violations of the Illinois Equal Pay Act of 2003. The investigation revealed that Metz unlawfully requested salary history from job applicants and retaliated against an employee who raised concerns. Metz, which provides dining services, had asked workers at an Illinois college to submit their pay stubs before starting their contract, violating the law that prohibits such requests. Read more here.