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91_SB0025eng SB25 Engrossed 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 a new 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 school district, 16 community college established under the Public Community 17 College Act, a private business and vocational school 18 certified by the State Board of Education as provided by the 19 Private Business and Vocational Schools Act, the University 20 of Illinois, Southern Illinois University, Chicago State 21 University, Eastern Illinois University, Governors State 22 University, Illinois State University, Northeastern Illinois 23 University, Northern Illinois University, Western Illinois 24 University, and any other private institution of higher 25 education that offers degrees and instruction above the high 26 school level that has a campus and related facilities located 27 within the State. 28 "Employee" means a person employed in a new job. 29 "New Employer" is the business providing new jobs within 30 the State and who has entered into an agreement with the 31 Department. SB25 Engrossed -2- LRB9100765PTpc 1 "Industry" means a business engaged in interstate or 2 intrastate commerce for the purpose of manufacturing, 3 processing, or assembling products, conducting research and 4 development, or providing services in interstate commerce, 5 but excludes all health and professional services and retail, 6 except for retail or catalog distribution centers, retail or 7 catalog warehousing, retail or credit facilities, retail or 8 catalog operations offices, and retail or catalog 9 headquarters facilities. "Industry" does not include a 10 business that closes or substantially reduces its operation 11 in one area of the State and relocates substantially the same 12 operation in another area of the State. This provision does 13 not prohibit a business from expanding its operations in 14 another area of the State provided that existing operations 15 of a similar nature are not closed or substantially reduced 16 in another area of the State. 17 "New job" means a job in a new or expanding industry but 18 does not include jobs of recalled workers, or part-time, 19 contractual, or temporary workers, replacement jobs or other 20 jobs that formerly existed in the industry within the State 21 of Illinois. 22 "New jobs training program" or "program" means the 23 project or projects established by an educational 24 intermediary for the creation of jobs by providing education 25 and training of workers for new jobs for new or expanding 26 industry within the State. 27 "Program costs" means all the necessary and incidental 28 costs of providing program services and training. 29 "Program services and training" includes, but is not 30 limited to the following: 31 (a) New jobs training and customized skill 32 training; 33 (b) Adult basic education and job related 34 instruction; SB25 Engrossed -3- LRB9100765PTpc 1 (c) Vocational and skill-assessment services and 2 testing; 3 (d) Rental of training facilities and equipment and 4 purchase of non-depreciable materials and supplies; 5 (e) On-the-job training, including quality 6 improvement training; 7 (f) Administrative expenses for the new jobs 8 training; 9 (g) Subcontracted services with other educational 10 intermediaries, other federal, State or local agencies; 11 and 12 (h) Contracted or professional services. 13 "Project" means a training arrangement that is the 14 subject of an agreement entered into between the Department, 15 an educational intermediary, and a new employer to provide 16 program services. 17 Section 10. Supplemental support. Any funding for a 18 project under this Act may be supplemental to any job 19 training grants or programs offered by the Department to new 20 employers as provided under the Civil Administrative Code of 21 Illinois or any other Act the Department is authorized to 22 administer for job training, except that funding under this 23 Act shall not be provided if, in the opinion of the 24 Department, the applicant has received or is likely to 25 receive funding from a source other than through the 26 provisions of this Act or if the funding under this Act is 27 duplicative of any other source of funding that may be 28 available to the applicant. 29 Section 15. Priority of educational intermediaries. For 30 projects that are funded under this Act, the Department shall 31 give priority to those projects involving community colleges 32 established under the Public Community College Act, unless SB25 Engrossed -4- LRB9100765PTpc 1 circumstances warrant otherwise. 2 Section 20. Agreements. 3 (a) Agreements entered into by the Department, an 4 educational intermediary, and a new employer shall be subject 5 to rules adopted by the Department. An agreement shall 6 provide for program services to be provided by the 7 educational intermediary for the job training of the 8 employees of the new employer and the program costs for the 9 training of employees for a new job. The funding of the 10 training may be paid either in whole or part by the 11 following: 12 (1) The Industrial New Jobs Training Fund; 13 (2) Tuition, fees, or special charges paid by the 14 new employer; 15 (3) Any supplemental funds provided by any other 16 government agency, except any funds appropriated for 17 adult education programs under Section 10-22.20 of the 18 School Code, or any supplemental funds provided by any 19 other financial institution or entity; or 20 (4) The incremental increase in property tax 21 revenue received by the educational intermediary from an 22 increase in the equalized assessed valuation of property 23 attributable to the new jobs training program as 24 determined by the Department from information provided by 25 the county clerk. 26 (b) The agreement shall specify the program services to 27 be offered by the educational intermediary. 28 (c) The agreement shall limit any administrative costs, 29 including indirect costs, of the educational intermediary to 30 no greater than 10% of the total cost of job training 31 program. For the purposes of this subsection, 32 "administrative costs" shall be the operational costs of 33 administering a job training program by the educational SB25 Engrossed -5- LRB9100765PTpc 1 intermediary, which shall include, but may not be limited to, 2 record keeping, instructional oversight by a non-teaching 3 administrator, and other activities not directly related to 4 job training instruction. 5 (d) Prior to entering into an agreement, the Department 6 and the new employer shall have the right to inspect and 7 review the job training facilities of the educational 8 intermediary to determine the capabilities of providing the 9 training needed by the new employer. 10 (e) An agreement shall include the right of the 11 Department to request from a new employer the following 12 information prior to the approval of an agreement: 13 (1) how the new employer is legally organized, 14 whether as a corporation, limited liability company, 15 partnership, or other type of legal entity under the laws 16 of this State, any other state, or a foreign nation; 17 (2) a listing of the officers and principal owners 18 of the new employer; 19 (3) an audited financial statement of the new 20 employer; and 21 (4) any other information that the Department may 22 require consistent with the purposes of this Act. 23 (f) All agreements upon execution shall be public 24 documents and available for public inspection. Any 25 proprietary information affecting a product or service of the 26 new employer, as relating to the agreement, may be exempt 27 from the disclosure requirement upon approval of the 28 Department. 29 Section 25. Worker protection. No agreement initiated 30 under this Act shall in any way diminish or deny the rights 31 of employees subject to an agreement to avail themselves of 32 the Workers' Compensation Act, the Workers' Occupational 33 Diseases Act, the Unemployment Insurance Act, the Minimum SB25 Engrossed -6- LRB9100765PTpc 1 Wage Law, or any other law of this State or the federal 2 government. 3 Section 30. Annual report. The Department shall report 4 annually to the Governor and the General Assembly on the 5 activities of the Department under this Act. 6 Section 35. Receipts and reimbursements. Any money 7 received by the Department as reimbursement for training 8 expenses, unused training funds, and any other receipts shall 9 be deposited into the Industrial New Jobs Training Fund. 10 Section 40. Funding. Funds shall be appropriated to the 11 Department as may be necessary for administrative expenses 12 related to the implementation of this Act. 13 Section 45. 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 SB25 Engrossed -7- LRB9100765PTpc 1 Governor may transfer to the Fund from the General Revenue 2 Fund an amount sufficient to conduct job training under this 3 Act or may authorize a waiver of the minimum balance 4 requirement. 5 Section 50. Notes. Subject to approval of the Governor, 6 the Department of Commerce and Community Affairs may issue a 7 maximum of $10,000,000 in notes for one year beginning 8 January 1, 2000 for the purposes of this Act. The notes 9 shall be retired with funds from the Industrial New Jobs 10 Training Fund, and the debt payments on the notes shall have 11 priority over any other expenditure made under the Act. The 12 notes shall be payable within 10 years from their date of 13 issue. The Department shall file a report with the Secretary 14 of the Senate and the Clerk of the House of Representatives 15 in January of each year that details the amount of notes 16 issued and the amount of debt payments on the notes for the 17 previous calendar year. 18 Section 105. The State Finance Act is amended by adding 19 Section 5.490 as follows: 20 (30 ILCS 105/5.490 new) 21 Sec. 5.490. The Industrial New Jobs Training Fund. 22 Section 110. The Illinois Income Tax Act is amended by 23 adding Section 701.2 as follows: 24 (35 ILCS 5/701.2 new) 25 Sec. 701.2. Withholding from new employees. 26 Notwithstanding any provision of law to the contrary, the 27 Department shall deposit into the Industrial New Jobs 28 Training Fund an amount equal to all amounts withheld under 29 Section 701 from a new employee of an existing or a new SB25 Engrossed -8- LRB9100765PTpc 1 business for a period of up to 10 years after that employee 2 is hired. For purposes of this Section, a "new employee" 3 means an employee of a new employer and all additional 4 employees hired by a new employer of an existing business 5 that were not reported to the Department as of December 31 of 6 the previous year. The Department shall adopt rules to 7 implement the provisions of this Section and shall consult 8 with the Department of Employment Security concerning the 9 adoption of rules relating to the definition of a "new 10 employee". 11 Section 99. Effective date. This Act takes effect 12 January 1, 2000.