Quorum Forum Podcast Ep. 106: Legislative Update and more...

Quorum Forum Podcast Ep. 106: Legislative Update

Ancel Glink has released Quorum Forum Podcast Episode 106: Legislative Update. The Illinois General Assembly recently concluded its spring legislative session and Ancel Glink’s Greg Jones and Tyler Smith join us to talk about recent legislation local governments should know, including updates on housing grants, e-bike and e-scooter regulations, hemp regulations, and more!

In This Episode:

[00:00] Baseball Fever: Greg and Tyler discuss their favorite all-time and underrated players, including Lou Whitaker, Barry Bonds, and Anthony Rizzo.
[03:45] The "Build Plan" vs. The "REAL Act": We review Governor Pritzker’s Build Plan omnibus package, which sought to preempt local zoning for housing but ultimately failed to advance. We also discuss the IML’s alternative REAL Act.
[09:00] Housing Grants: Even though the Build Plan didn't pass, the FY27 budget allocated hundreds of millions for housing, including funds for the Missing Middle program, SmartBuy, and Opening Doors.
[10:45] E-Bikes & E-Scooters: New statewide standards for electric micromobility devices effectively preempt home rule authority for regulating these devices, starting January 1, 2027 .(SB3484)
[14:45] The Illinois Hemp Act & Cannabis: Illinois repeals the Industrial Hemp Act to align with federal standards, effective November 12, 2026. This bill also doubles the legal possession limit for cannabis to 60 grams and extends dispensary hours to 2 a.m., subject to local zoning. (SB3222)
[17:45] Operational Updates: Briefing on HB4541 regarding overpayments under the Unclaimed Property Act and HB1353 protecting volunteer emergency workers during training.
[19:30] Financial Posting & Trusts: Coverage of HB2137 regarding website financial posting requirements, SB638 on OPEB trust funds, and SB2102 on electronic filing receipts.
[22:45] Special Districts: New rules for dissolving drainage and sanitation districts in certain counties (HB5166) and disconnecting park district territory (HB5542).
[26:15] Local Finance & IMRF: Discussing SB2769 (Business District fund transfers), SB2826 (IMRF separation benefits), and SB2836 (increased audit thresholds for FY27).
[29:30] Fire Protection & School Transfers: Updates on HB4292 (ambulance fund transfers), HB4909 (Taft-Hartley/IMRF contributions), and HB4375 (extending school fund transfer periods).
[33:00] School Code Changes: An update covering psychologist qualifications (HB4397, effective July 1, 2027), CPR/AED training (HB4788), staff mental health procedures (HB4862, starting 2028), and service animal handling (SB2761).
[37:30] Rights & Protections: Details on SB2914 (expanded teacher dismissal warnings) and SB3361 (The Jett Hawkins Law regarding religious hairstyles), both effective immediately upon signing.
[39:45] Open Meetings Act: Can you list "Personnel Issues" on a meeting agenda? We review a new binding opinion regarding employee termination and the Open Meetings Act.
[44:15] Upcoming Events: A summary of where to catch Ancel Glink attorneys this summer and fall.

Seventh Circuit Upholds Removal of Public Employee for Social Media Posts

The Seventh Circuit Court of Appeals upheld the removal of a member of the Coast Guard Auxiliary after he refused to stop posting himself in uniform and making derogatory statements on social media in Wenzler v. United States Coast Guard, et al.

Wenzler had been a member of the Coast Guard Auxiliary for about 15 years when a member of the public complained about his LinkedIn posts. One of the posts accused certain Supreme Court Justices of being racist, and another made a crude remark about the Girl Scouts. The Auxiliary conducted an investigation, and a supervisor directed him to remove from social media any photograph of himself wearing his uniform and to delete any reference to the Auxiliary. He responded that he would not comply with the directive and that he would file a complaint against the supervisor for racist action against him because he was white. He continued to post about his Auxiliary position on LinkedIn and another complaint was filed by a member of the public about one of his posts. He again stated he would not comply with the Auxiliary's social media directive, and formal disciplinary proceedings were started which resulted in the Coast Guard disenrolling him. After his administrative appeals failed, he sued in federal court claiming the Coast Guard's actions against him violated his First Amendment rights. The district court ruled in the Coast Guard's favor, and he appealed.

The Seventh Circuit reviewed the standards for a First Amendment retaliation claim, which require a public employee to show that (1) their speech was constitutionally protected; (2) they suffered a deprivation likely to deter free speech; and (3) their speech was at least a motivating factor in the employer's actions. In analyzing the first prong (whether his speech was constitutionally protected), the Court applied the two-step Pickering test: (a) whether the speech involved a matter of public concern and (b) if so, does the speaker's interest in commenting on the matter of public concern outweigh the government's interest in promoting the efficiency of the public services it performs through its employees.

In this case, the Court accepted that Wenzler's speech touched on matters of public concern (meeting the first step of the Pickering test). However, in applying the second step (balancing interests test), the Court determined that the Coast Guard deserved deference in assessing and responding to its members' speech when those members hold themselves out as members of the organization while wearing its uniform. The Auxiliary's structure as a uniformed organization within the Coast Guard with a military-like hierarchy was also relevant to the Court in balacing its interests against Wenzler's. In short, the Court held that the Auxiliary could reasonably determine that Wenzler's speech would be detrimental to the Auxiliary and its reputation, and reasonably expect that other members of the Auxiliary would be less likely to work with him because of his derogatory comments and attacks on others. As a result, the Seventh Circuit found no First Amendment violation in the Coast Guard's removal of Wenzler.

Illinois General Assembly Passes Illinois Hemp Act

On the final day of its 2026 spring legislative session, the Illinois General Assembly passed Senate Bill 3222, creating the Illinois Hemp Act governing hemp-derived products in Illinois. If signed by the Governor, the Act would repeal the existing Industrial Hemp Act, effective November 12, 2026.

The federal Agriculture Improvement Act of 2018 (2018 Farm Bill) created an exception to the federal definition of “marijuana” for products meeting the legal definition of “hemp.” This created a loophole under which hemp was no longer a controlled substance under the Controlled Substances Act, allowing for the proliferation of synthetic cannabis products, such as Delta-9 THC products. Recent federal changes (Pub. L. No. 119-37) to the definition of “hemp” effectively close this loophole while continuing to allow “industrial hemp” grown for non-cannabis purposes. The federal changes are scheduled to become effective November 12, 2026.

Senate Bill 3222 aligns Illinois law with the recent federal changes by adopting the federal definition of “hemp,” among other terms. The effective date of the Industrial Hemp Act repeal coincides with the effective date of the federal changes. Beyond incorporating federal definitions, SB3222 brings hemp-derived products that contain qualifying concentrations of THC-related compounds within the State’s cannabis licensing, testing, distribution, and retail framework. As a result, the sale, distribution, manufacturing, and production of covered hemp products without state authorization or licensing will be prohibited in Illinois.

Aside from hemp-related updates, the bill introduces several changes to broader cannabis laws. It doubles the threshold for a minor cannabis offense from 30 grams to 60 grams of any substance containing cannabis and raises the legal possession limits for Illinois residents age 21 or older to 60 grams of cannabis flower, 1,000 milligrams of THC in cannabis-infused products, 10 grams of cannabis concentrate. Additionally, the Act provides that a cannabis dispensary may now operate until 2 a.m. (rather than 10p.m.), subject to local zoning rules.

The bill now heads to the Governor for final consideration.

Post Authored by Adam Simon & Luigi Laudando

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Seventh Circuit Sanctions Attorney for Filing Brief with AI Hallucinations

The Seventh Circuit Court of Appeals sanctioned a lawyer for AI-generated hallucinations and other inaccuracies and errors in a brief filed with the Court in an immigration appeal. Perez-Castillo v. Todd Blanche.

An attorney filed an opening appellate brief with the Seventh Circuit on behalf of his client, who was appealing an immigration removal order. The Court denied the appeal on its merits in the opinion, and also addressed certain problems and irregularities the Court discovered in the appellate brief. The Court noted that about half of the cases cited in the court filing either did not exist or were falsely labeled as Seventh Circuit cases. The Court also noted that nearly every quotation in the filing could not be traced to a real case, a known hallmark of AI hallucinations. The Court also discovered false representations of the record in the filing, including statements about testimony and findings of the Immigration Judge. On order of the Court, the attorney responded that generative AI was used for the brief but he attributed that to another attorney (who had not filed an appearance in the case). The attorney admitted that he did not review the brief before filing it with the Court

The Court sanctioned the attorney who signed and filed the brief. The sanction (in the amount of $5,000) was based on a violation of the attorney rules of professional conduct rule 46, which authorizes a court to "suspend, disbar, or discipline a member of our bar ‘for conduct unbecoming a member of the bar.’” While the Court did not sanction the attorney who wrote the brief, it did admonish her that she must be cautious in ensuring any use of generative AI is in compliance with the attorney rules of professional conduct. The Court also referred the matter to the Attorney Registration and Disciplinary Commission (ARDC).

The Court ended its opinion with the following cautionary note to litigants and attorneys:

There is “little doubt that litigants and courts” will develop “sound and workable practices” governing AI usage in due time, but that point has not yet arrived. [citation omitted]. Briefs like those petitioner’s counsel submitted in this case are unacceptable and “result in confusion and time wasted” for this court. [citation omitted]. Members of this court’s bar must be exceedingly careful about outsourcing their work product. At all times, attorneys must follow both the Federal Rules of Appellate Procedure and this court’s Rules of Professional Conduct. If not, sanctions may follow.

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School District Administrator Had Qualified Immunity in First Amendment Challenge

The Seventh Circuit Court of Appeals determined that a school district chief talent officer had qualified immunity in a First Amendment case brought by a school district employee who had been terminated for her social media posts in Hayes v. Board of Education.

A college administrator responsible for staffing student teachers in a school district was terminated by the school district for making disparaging comments on social media about the district. The comments included criticisms of the school district and its CEO, including circulating a petition calling for the district to investigate and report on racial inequities in the district. After her termination, she filed a lawsuit against the district's chief talent officer and against the board of education, claiming she was unlawfully retaliated against in violation of her First Amendment rights. The defendants filed a motion for summary judgment, claiming qualified immunity among other defenses, but the district court denied the motion. The defendants appealed to the Seventh Circuit Court of Appeals.

On appeal, the Seventh Circuit determined that the chief talent officer was entitled to qualified immunity against the First Amendment retaliation claim brought by the former employee. Specifically, the Court held that there was no prior caselaw that would put the chief talent officer on notice that his conduct in this case would violate the former employee's constitutional rights, one of the steps in a qualified immunity analysis. As a result, the former employee could not meet her burden to overcome the chief talent officer's qualified immunity defense.

Although the Seventh Circuit found that the chief talent officer had qualified immunity in the case, it allowed the former employee's First Amendment retaliation claim to proceed against the district.

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