Update to Illinois Captive Legislation (SB 1737)


In Depth

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.