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SB 3432

REVENUE-LIVING WAGE STUDY

104th Regular Session Introduced by Rachel Ventura

Creates a state study to determine Illinois’ living wage and recommends steps to raise the minimum wage accordingly, with a 2027 final report.

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Bill Summary · SB 3432

Summary of SB 3432 (104th General Assembly, Illinois)

Overview

  • Title: Revenue-Living Wage Study
  • Sponsor: Sen. Rachel Ventura (co-sponsor)
  • Bill Type: Amends the Department of Revenue Law (Civil Administrative Code of Illinois)
  • Purpose: To authorize a state-initiated study to determine the living wage in Illinois and to provide recommendations on how to raise the minimum wage to ensure residents earn a living wage. The study is subject to appropriation and a final report is due by July 1, 2027. The provision repeals on January 1, 2028.

Key Provisions

Study Authority and Scope

  • Creates new Section 2505-817 in the Department of Revenue Law.
  • Defines terms for the study:
    • “Affordable housing” – non-housing burdened (implicitly tying housing costs to income).
    • “Decent standard of living” – includes access to food, water, affordable housing, education, health care, transportation, clothing, and other essential needs, plus provisions for unexpected events.
    • “Living wage” – wages sufficient to afford a decent standard of living for the worker and the worker’s family, based on a standard workweek.
    • “Non-housing burdened” – household spends no more than 30% of gross income on housing costs.
  • Objective: Conduct a study to determine the living wage in Illinois and make recommendations on increasing the minimum wage to ensure residents earn a living wage.
  • Coordination: Department may coordinate with a state university to conduct the study.

Reporting and Timeline

  • Final report due date: No later than July 1, 2027.
  • Report contents: Findings and recommendations related to living wage calculations and steps to increase the minimum wage accordingly.
  • Repeal date: The entire section (2505-817) is repealed on January 1, 2028.

Administrative and Fiscal Notes

  • Funding: The study is subject to appropriation (i.e., requires explicit legislative funding).
  • Jurisdiction/Agency: Department of Revenue, with potential collaboration with a state university.

Affected Parties

  • Primary: Illinois Department of Revenue (DOR), which would conduct the study and produce recommendations.
  • Secondary: State universities that may participate or assist in conducting the study.
  • General public: State residents, particularly workers and households affected by wage and housing cost considerations, as the bill aims to address living wage standards.

Procedural and Timeline Considerations

  • Introduction and assignment: Filed February 4, 2026; assigned to Appropriations (due to fiscal implications) and later to Committee actions with deadlines.
  • Committee deadlines: Rule 2-10 deadline set for April 24, 2026; third reading deadline established for May 15, 2026.
  • Reporting requirement: Final report due by July 1, 2027, to Governor and General Assembly.
  • Sunset/Repeal: The governing provisions are repealed on January 1, 2028, unless extended or replaced by other legislation.

Implications

  • Policy Goal: Establish a data-driven basis for adjusting the state’s minimum wage to align with a defined living wage standard.
  • Economic Impact: Potential future wage policy changes contingent on the report’s findings; any actual wage increases would require separate legislation and funding.
  • Administrative Impact: Involves the Department of Revenue in research and coordination tasks, with potential academic collaboration.

What to Watch

  • Whether the bill receives appropriation to fund the study.
  • The methodology the Department and partner institutions use to calculate the living wage (including housing cost assumptions and regional variations).
  • The form and strength of recommendations for minimum wage increases and how those would be implemented in future legislation.

Compiled from official sources — confirm details with the bill’s official record.

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