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Illinois’ economy is on the road to recovery, with our annual GDP recently surpassing $1 trillion a year, fueled by more than 660 business expansions and relocations in 2024 alone. This is due in no small part to Gov. JB Pritzker’s efforts to expand our state’s economy and demonstrate that Illinois is “Open for Business.”
However, during the recently concluded spring legislative session, Illinois lawmakers passed Senate Bill 328 that would all but ensure businesses look anywhere but Illinois to build and grow. The measure was passed quickly and quietly during the final hours of the Spring legislative session, which surely was no accident. The measure would create a sweeping form of “general jurisdiction,” exposing out-of-state companies to a flood of lawsuits in Illinois courts, even if the dispute had nothing to do with our state.
If signed into law, this legislation would roll back the gains under Pritzker’s leadership, with the assistance of the General Assembly, to increase economic investment and create new jobs. What’s more, Illinois would be an outlier as just the second state in the nation with this statute.
Indeed, other states are actively fighting against similar efforts, recognizing the dangers that await. In New York, Gov. Kathy Hochul has twice vetoed a nearly identical proposal, calling it a “massive expansion” of general jurisdiction that “would likely deter out-of-state companies from doing business in New York” and “cause uncertainty for those businesses and burden the judicial system.”
That’s why I am strongly urging the governor to veto this measure to protect our recent economic successes and maintain our hard-fought momentum. This legislation is opposed by the employers who are the backbone of our state— including manufacturing, retail, transportation, rail among others—for the simple reason it would make it incredibly difficult to attract and retain new businesses in Illinois.
If you ask the people behind this bill, they’ll tell you that it only applies to lawsuits involving toxic substances, which sounds ominous. However, its reach is much broader as it would apply to any substance that can be ingested, inhaled, or absorbed. The legislation also states that any “transaction” would be applicable, which could encapsulate any number of industries.
Who really benefits in this equation? Plaintiff attorneys.
Consider what happened in Pennsylvania. After it adopted a similar policy, the Philadelphia Court of Common Pleas saw a surge in lawsuits involving out-of-state plaintiffs with no connection to the state. In the Paraquat Mass Tort Program alone, more than 1,100 single-plaintiff cases were filed, yet only around seven percent of them involved a Pennsylvania resident or an alleged exposure that happened in the state.
Illinois already has a bad reputation for lawsuit abuse, which this type of forum shopping will only solidify. Certain counties — Cook, Madison and St. Clair —are known across the state as plaintiff-friendly jurisdictions where civil defendants often place an uphill battle. That reputation has translated to loss in economic growth, jobs, and opportunity.
Here’s the bottom-line: This bill threatens efforts to “attract, retain and expand businesses,” which Governor Pritzker has rightly argued is key to Illinois’ long-term success. If this measure becomes law, why would businesses willingly take on the burden of costly, unrelated lawsuits, simply for registering in Illinois?
As other states actively offer robust incentive packages, lower taxes, and fewer regulations, Illinois should be looking for ways to add to our economic development and site selection check-list, not adding negative checkmarks to our ledger.
Governor Pritzker has a clear choice: He can defend Illinois’ economic progress or send businesses elsewhere by opening our courts to a wave of opportunistic litigation. I urge the governor to do the right thing by vetoing this bill.
Let’s demonstrate Illinois is truly open for business.
Katie Reilly, Executive Director, Illinois Coalition for Legal Reform
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