Much Ado About Nothing. BA Lobbyist Doesn't Think We've Heard The Last Of
House Bill 3636. Government Relations. BETHANY HARVEY. Many contractors ...
Government Relations
Much Ado About Nothing BA Lobbyist Doesn’t Think We’ve Heard The Last Of House Bill 3636 BETHANY HARVEY Many contractors may already be much too familiar with Cypress Creek, the Supreme Court decision that went into effect in February 2011 and overwrote sections of the long-held Illinois Mechanics Lien Act. For the Builders Association Government Relations Committee, no other legislative bill is proving to be as crucial to the construction industry as HB 3636, which would reverse Cypress Creek while restoring the Illinois Mechanics Lien Act. “This year, the number one thing that would have had the biggest impact [on the construction industry] is HB 3636,” says Jeff Glass of Capitol Consulting Group, who serves as the Government Relations Committee’s lobbyist. As mentioned in the May 24 Builder Blast, Cypress Creek changed the terms in the Illinois Mechanics Lien Act regarding payments to contractors and lenders in mechanics lien foreclosures. Because of Cypress Creek, funds that were formerly shared between lenders and mechanics lien claimants are now given primarily to lenders while contractors, subcontractors, and other lien claimants can no longer receive the funds they relied on while the Illinois Mechanics Lien Act was in effect. “[Cypress Creek] has a dampening effect on contractors considering new projects,” says Dan Dorfman of Harris Winick, LLP, an attorney on the Government Relations Committee. “It has a very negative effect on the construction industry.” The Builders Association strongly supports HB 3636, as it would provide many Builders Association members with the payment they need when properties they have worked on go into foreclosure. The Government Relations Committee has made following the bill a priority, especially during the spring when the house was expected to vote on the bill in the legislative session. “It had a lot of false starts in May,” Glass says. “But it didn’t turn out to be true.” By the end of the month, it became clear that the bill would not yet be voted on because legislators became preoccupied with budgeting and decisions regarding Medicaid and pension plans for state workers. Finding a compromise regarding HB 3636 and Cypress Creek has been difficult, especially since banks are typically opposed to the bill. While Cypress Creek left mechanics lien claimants with less control over their own projects, it gave banks priority of both the value of foreclosed land and the value of most improvements made on foreclosed land. House members want to hold summer meetings to negotiate with banks with the hopes of coming to an agreement or compromise. But Glass is doubtful that these meetings will lead to any significant progress. “I wouldn’t expect any action until the last week of November,
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at the earliest,” Glass says. Meanwhile, the Builders Association Government Relations Committee will continue to follow the bill and keep members up to date on its progress. “It’s not over yet,” says Stephen Olson of W.B. Olson, Inc., who is chair of the Government Relations Committee. “We’re partnering with other businesses, other construction groups to monitor it.” Olson says that he and other members of The Government Relations Committee primarily work to block bills that could harm construction companies and their workers, and to support those that have the industry’s best interests in mind. The Government Relations Committee relies on donations to the Political Action Committee, which funds efforts to monitor legislation concerning the construction industry. Other committee members include Dennis Garlick of W.E. O’Neil Construction Company and Scot Pepper of The Pepper Companies.
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