HB1063 104TH GENERAL ASSEMBLY

LRB104 03178 HLH 13199 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB1063

Introduced 1/9/2025, by Rep. Dave Vella

SYNOPSIS AS INTRODUCED:

30 ILCS 559/20-20

Amends the Illinois Works Jobs Program Act. Provides that, for the purpose of the Illinois Works Apprenticeship Initiative, apprenticeship programs must provide to the Department of Commerce and Economic Opportunity evidence that the apprenticeship program has graduated, in each of the 3 calendar years immediately preceding the date on which the public works project begins, at least 2 apprentices in each construction craft to be performed at the relevant project. Provides that apprenticeship programs are not required to provide graduation information with respect to apprenticeship crafts that are dedicated exclusively to the transportation of materials and equipment to and from the project. Provides that those provisions do not apply to public works projects contracted by school districts or units of local government. Effective immediately.

A BILL FOR

AN ACT concerning finance.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Works Jobs Program Act is amended by changing Section 20-20 as follows:

(30 ILCS 559/20-20)

Sec. 20-20. Illinois Works Apprenticeship Initiative.

(a) The Illinois Works Apprenticeship Initiative is established and shall be administered by the Department.

(1) Subject to the exceptions set forth in subsection (b) of this Section, apprentices shall be utilized on all public works projects estimated to cost $500,000 or more in accordance with this subsection (a).

(2) For public works projects estimated to cost $500,000 or more, the goal of the Illinois Works Apprenticeship Initiative is that apprentices will perform either 10% of the total labor hours actually worked in each prevailing wage classification or 10% of the estimated labor hours in each prevailing wage classification, whichever is less. For contracts and grant agreements executed after the effective date of this amendatory Act of the 103rd General Assembly and before January 1, 2024, of this goal, at least 25% of the labor hours of each prevailing wage classification performed by apprentices shall be performed by graduates of the Illinois Works Preapprenticeship Program, the Illinois Climate Works Preapprenticeship Program, or the Highway Construction Careers Training Program. For contracts and grant agreements executed on or after January 1, 2024, of this goal, at least 50% of the labor hours of each prevailing wage classification performed by apprentices shall be performed by graduates of the Illinois Works Preapprenticeship Program, the Illinois Climate Works Preapprenticeship Program, or the Highway Construction Careers Training Program.

(3) For contracts and grant agreements executed on or after the effective date of this amendatory Act of the 104th General Assembly, in order for an apprentice to qualify under this subsection (a), the apprenticeship program in which the apprentice participates must provide to the Department evidence that the apprenticeship program has graduated, in each of the 3 calendar years immediately preceding the date on which the public works project begins, at least 2 apprentices in each construction craft to be performed at the relevant project. Apprenticeship programs are not required to provide graduation information for the purposes of this paragraph (3) with respect to apprenticeship crafts that are dedicated exclusively to the transportation of materials and equipment to and from the project. This paragraph (3) does not apply to public works projects contracted by school districts or units of local government.

(b) Before or during the term of a contract subject to this Section, the Department may reduce or waive the goals set forth in paragraph (2) of subsection (a). Prior to the Department granting a request for a reduction or waiver, the Department shall determine, in its discretion, whether to hold a public hearing on the request. In determining whether to hold a public hearing, the Department may consider factors, including the scale of the project and whether the contractor or subcontractor seeking the reduction or waiver has previously requested reductions or waivers on other projects. The Department may also consult with the Business Enterprise Council under the Business Enterprise for Minorities, Women, and Persons with Disabilities Act and the Chief Procurement Officer of the agency administering the public works contract. The Department may grant a reduction or waiver upon a determination that:

(1) the contractor or subcontractor has demonstrated that insufficient apprentices are available;

(2) the reasonable and necessary requirements of the contract do not allow the goal to be met;

(3) there is a disproportionately high ratio of material costs to labor hours that makes meeting the goal infeasible;

(4) apprentice labor hour goals conflict with existing requirements, including federal requirements, in connection with the public work; or

(5) the contractor or subcontractor has demonstrated that insufficient graduates of the Illinois Works Preapprenticeship Program are available to meet the requirements of paragraph (2) of subsection (a).

(c) Contractors and subcontractors must submit a certification to the Department and the agency that is administering the contract, or the grant agreement funding the contract, demonstrating that the contractor or subcontractor has:

(1) met the apprentice labor hour goals set forth in paragraph (2) of subsection (a);

(2) received a reduction or waiver pursuant to subsection (b); or

(3) not complied with the labor hour goals in paragraph (2) of subsection (a) and did not receive a reduction or waiver pursuant to subsection (b).

It shall be deemed to be a material breach of the contract, or the grant agreement funding the contract, and entitle the State to declare a default, terminate the contract or grant agreement funding it, and exercise those remedies provided for in the contract, at law, or in equity if the contractor or subcontractor fails to submit the certification required in this subsection or submits false or misleading information.

Intentional failure to comply with the Illinois Works Apprenticeship Initiative may result in the State agency that contracted or funded the public works project: (i) terminating the contract or agreement involved, (ii) prohibiting the party that contracted with the State from participating in public contracts or agreements for a period not to exceed 3 years, (iii) seeking a penalty of up to 25% of the contract or agreement as a result of the violation, or (iv) any combination of items (i) through (iii). State agencies shall report to the Department all projects that did not comply with the Illinois Works Apprenticeship Initiative and any action taken against the noncompliant party and shall provide an action plan to address the reported instance of noncompliance with the Illinois Works Apprenticeship Initiative.

(d) No later than one year after the effective date of this Act, and by April 1 of every calendar year thereafter, the Department of Labor shall submit a report to the Illinois Works Review Panel regarding the use of apprentices under the Illinois Works Apprenticeship Initiative for public works projects. To the extent it is available, the report shall include the following information:

(1) the total number of labor hours on each project and the percentage of labor hours actually worked by apprentices on each public works project;

(2) the number of apprentices used in each public works project, broken down by trade; and

(3) the number and percentage of minorities, women, and veterans utilized as apprentices on each public works project.

(e) The Department shall adopt any rules deemed necessary to implement the Illinois Works Apprenticeship Initiative. In order to provide for the expeditious and timely implementation of this Act, the Department may adopt emergency rules. The adoption of emergency rules authorized by this subsection is deemed to be necessary for the public interest, safety, and welfare.

(f) The Illinois Works Apprenticeship Initiative shall not interfere with any contracts or grants in existence on the effective date of this Act.

(g) Notwithstanding any provisions to the contrary in this Act, any State agency that administers a construction program for which federal law or regulations establish standards and procedures for the utilization of apprentices may implement the Illinois Works Apprenticeship Initiative using the federal standards and procedures for the establishment of goals and utilization procedures for the State-funded, as well as the federally assisted, portions of the program. In such cases, these goals shall not exceed those established pursuant to the relevant federal statutes or regulations.

(h) The Department shall maintain a list of graduates of the Illinois Works Preapprenticeship Program for a period of not less than one year after the participant graduates from the Program. The list shall include the name, address, county of residence, phone number, email address, and the self-attested construction and building trade career path preferences of each graduate. This list shall be made available to any contractor or subcontractor, as well as any apprenticeship program approved by and registered with the United States Department of Labor's Bureau of Apprenticeship and Training in alignment with the graduate's self-attested construction and building trade career path preferences.

(Source: P.A. 103-305, eff. 7-28-23.)

Section 99. Effective date. This Act takes effect upon becoming law.