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91_SB0025
LRB9100765PTpc
1 AN ACT concerning job training.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short Title. This Act may be cited as the
5 Illinois Industrial New Jobs Training Act.
6 Section 5. Definitions. As used in this Act, unless the
7 context otherwise requires:
8 "Agreement" is the agreement between an employer, an
9 educational intermediary, and the Department of Commerce and
10 Community Affairs.
11 "Community College" is a community college established
12 under the Public Community College Act.
13 "Department" is the Department of Commerce and Community
14 Affairs.
15 "Educational intermediary" means a community college
16 established under the Public Community College Act, a private
17 business and vocational school certified by the State Board
18 of Education as provided by the Private Business and
19 Vocational Schools Act, the University of Illinois, Southern
20 Illinois University, Chicago State University, Eastern
21 Illinois University, Governors State University, Illinois
22 State University, Northeastern Illinois University, Northern
23 Illinois University, Western Illinois University, and any
24 other private institution of higher education that offers
25 degrees and instruction above the high school level that has
26 a campus and related facilities located within the State.
27 "Employee" means a person employed in a new job.
28 "Employer" is the person providing new jobs within the
29 State and who has entered into an agreement with the
30 Department.
31 "Industry" means a business engaged in interstate or
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1 intrastate commerce for the purpose of manufacturing,
2 processing, or assembling products, conducting research and
3 development, or providing services in interstate commerce,
4 but excludes retail, health, or professional services.
5 "Industry" does not include a business that closes or
6 substantially reduces its operation in one area of the State
7 and relocates substantially the same operation in another
8 area of the State. This provision does not prohibit a
9 business from expanding its operations in another area of the
10 State provided that existing operations of a similar nature
11 are not closed or substantially reduced in another area of
12 the State.
13 "New job" means a job in a new or expanding industry but
14 does not include jobs of recalled workers or replacement jobs
15 or other jobs that formerly existed in the industry within
16 the State of Illinois.
17 "New jobs training program" or "program" means the
18 project or projects established by an educational
19 intermediary for the creation of jobs by providing education
20 and training of workers for new jobs for new or expanding
21 industry within the State.
22 "Program costs" means all the necessary and incidental
23 costs of providing program services.
24 "Program services" includes, but is not limited to the
25 following:
26 (a) New jobs training and customized skill
27 training;
28 (b) Adult basic education and job related
29 instruction;
30 (c) Vocational and skill-assessment services and
31 testing and pre-employment training programs;
32 (d) Training facilities, equipment, materials and
33 supplies;
34 (e) On-the-job training, including quality
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1 improvement training;
2 (f) Administrative expenses for the new jobs
3 training;
4 (g) Subcontracted services with other educational
5 intermediaries, other federal, State or local agencies;
6 and
7 (h) Contracted or professional services.
8 "Project" means a training arrangement that is the
9 subject of an agreement entered into between the Department,
10 an educational intermediary, and an employer to provide
11 program services.
12 Section 10. Supplemental support. Any funding for a
13 project under this Act shall be supplemental to any job
14 training grants or programs offered by the Department to
15 employers as provided under the Civil Administrative Code of
16 Illinois or any other Act the Department is authorized to
17 administer for job training.
18 Section 15. Priority of educational intermediaries. For
19 projects that are funded under this Act, the Department shall
20 give priority to those projects involving community colleges
21 established under the Public Community College Act. The
22 priority provided under this Section shall not outweigh the
23 Departmental opinion on the use of funds for the most
24 efficient and effective means for delivering job training
25 services for an employer.
26 Section 20. Agreements.
27 (a) Agreements entered into by the Department, an
28 educational intermediary, and an employer shall be subject to
29 rules adopted by the Department. An agreement shall provide
30 for program services to be provided by the educational
31 intermediary for the job training of the employees of the
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1 employer and the program costs, including any deferred costs,
2 for the training of employees for a new job. The funding of
3 the training may be paid either in whole or part by the
4 following:
5 (1) The Industrial New Jobs Training Fund;
6 (2) Tuition, fees, or special charges paid by the
7 employer; or
8 (3) Any supplemental funds provided by any other
9 government agency, financial institution, or entity.
10 (b) The agreement shall specify the program services to
11 be offered by the educational intermediary.
12 (c) For agreements funded through the Industrial New
13 Jobs Training Fund, the agreement shall constitute a lien
14 against the assets and property of the employer until either
15 of the following have been satisfied:
16 (1) the amount of moneys expended from the
17 Industrial New Jobs Training Fund on behalf of an
18 employer has been paid to the Fund, either through direct
19 payment, in lump sum, or an agreed payment schedule by
20 the employer and the Department; or
21 (2) an amount of money equal to the amount of
22 Illinois Income Tax withholding taxes paid by the new
23 employees, who have been trained through the agreement,
24 equal the amount of funds expended from the Industrial
25 New Jobs Training Fund for training.
26 The lien shall be recorded in the county where the
27 employer has the facility where the new employees are to be
28 employed. The Department may waive the lien requirement if
29 the employer has a demonstrated record of financial
30 responsibility or the circumstances of the agreement do not
31 merit the cost effectiveness of filing the lien. A lien may
32 be waived only by the Director of the Department with the
33 reasons for waiving the lien stated in the agreement.
34 (d) The agreement shall limit any administrative costs
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1 of the educational intermediary to no greater than 10% of the
2 total cost of job training program. For the purposes of this
3 subsection, "administrative costs" shall be the operational
4 costs of administering a job training program by the
5 educational intermediary, which shall include, but may not be
6 limited to, record keeping, instructional oversight by a
7 non-teaching administrator, and other activities not directly
8 related to job training instruction.
9 (e) Prior to entering into an agreement, the Department
10 and the employer shall have the right to inspect and review
11 the job training facilities of the educational intermediary
12 to determine the capabilities of providing the training
13 needed by the employer.
14 (f) An agreement shall include the right of the
15 Department to request from an employer the following
16 information prior to the approval of an agreement:
17 (1) how the employer is legally organized, whether
18 as a corporation, limited liability company, partnership,
19 or other type of legal entity under the laws of this
20 State, any other state, or a foreign nation;
21 (2) a listing of the officers and principal owners
22 of the employer;
23 (3) an audited financial statement of the employer;
24 or
25 (4) any other information that the Department may
26 require consistent with the purposes of this Act.
27 (g) All agreements upon execution shall be public
28 documents and available for public inspection. Any
29 proprietary information affecting a product or service of the
30 employer, as relating to the agreement, may be exempt from
31 the disclosure requirement upon approval of the Department.
32 Section 25. Worker protection. No agreement initiated
33 under this Act shall in any way diminish or deny the rights
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1 of employees subject to an agreement to avail themselves of
2 the Workers' Compensation Act, the Workers' Occupational
3 Diseases Act, the Unemployment Insurance Act, the Minimum
4 Wage Law, or any other law of this State or the federal
5 government.
6 Section 30. Annual report. The Department shall report
7 annually to the Governor and the General Assembly on the
8 activities of the Department under this Act.
9 Section 35. Receipts and reimbursements. Any money
10 received by the Department as reimbursement for training
11 expenses, unused training funds, and any other receipts shall
12 be deposited into the Industrial New Jobs Training Fund.
13 Section 40. The Industrial New Jobs Training Fund. All
14 amounts withheld from new employees, as provided in Section
15 701.2 of the Illinois Income Tax Act, shall be deposited into
16 the Industrial New Jobs Training Fund, which is created as a
17 special fund in the State treasury. The Fund shall be
18 administered by the Department. The Department shall
19 distribute to educational intermediaries the funds necessary
20 to implement an agreement as provided in Section 20 of this
21 Act. Amounts deposited into the Fund in excess of
22 $50,000,000 shall be transferred from the Fund to the General
23 Revenue Fund. Any accrued interest on moneys in the Fund
24 shall be deposited into the General Revenue Fund. A minimum
25 balance of at least $10,000,000 shall be maintained in the
26 Industrial New Jobs Training Fund at all times unless the
27 Governor authorizes a transfer from the Fund to the General
28 Revenue Fund. In a calendar year in which there is no
29 increase in the number of new jobs or there is a decrease in
30 the number of jobs from the previous calendar year, the
31 Governor may transfer to the Fund from the General Revenue
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1 Fund an amount sufficient to conduct job training under this
2 Act or may authorize a waiver of the minimum balance
3 requirement.
4 Section 45. Notes. Subject to approval of the Governor,
5 the Department of Commerce and Community Affairs may issue a
6 maximum of $10,000,000 in notes for one year beginning
7 January 1, 2000 for the purposes of this Act. The notes
8 shall be retired with funds from the Industrial New Jobs
9 Training Fund, and the debt payments on the notes shall have
10 priority over any other expenditure made under the Act. The
11 notes shall be payable within 10 years from their date of
12 issue.
13 Section 105. The State Finance Act is amended by adding
14 Section 5.490 as follows:
15 (30 ILCS 105/5.490 new)
16 Sec. 5.490. The Industrial New Jobs Training Fund.
17 Section 110. The Illinois Income Tax Act is amended by
18 adding Section 701.2 as follows:
19 (35 ILCS 5/701.2 new)
20 Sec. 701.2. Withholding from new employees.
21 Notwithstanding any provision of law to the contrary, the
22 Department shall deposit into the Industrial New Jobs
23 Training Fund an amount equal to all amounts withheld under
24 Section 701 from a new employee of an existing or a new
25 business for a period of one year after that employee is
26 hired. For purposes of this Section, a "new employee" means
27 an employee of a new employer and all additional employees
28 hired by an employer of an existing business that were not
29 reported to the Department as of December 31 of the previous
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1 year. The Department shall adopt rules to implement the
2 provisions of this Section and shall consult with the
3 Department of Employment Security concerning the adoption of
4 rules relating to the definition of a "new employee".
5 Section 99. Effective date. This Act takes effect
6 January 1, 2000.