AUTHORITY: Implementing Section 605-800 and authorized by Section 605-95 of the Civil Administrative Code of Illinois (Department of Commerce and Economic Opportunity Law) [20 ILCS 605/605-800 and 605-95].

SOURCE: Adopted at 11 Ill. Reg. 11642, effective June 29, 1987; recodified at 13 Ill. Reg. 15386; emergency amendments at 13 Ill. Reg. 16126, effective September 27, 1989, for a maximum of 150 days; emergency expired February 24, 1990; amended at 14 Ill. Reg. 5075, effective March 20, 1990; amended at 16 Ill. Reg. 17969, effective November 17, 1992; amended at 19 Ill. Reg. 15374, effective October 20, 1995; amended at 21 Ill. Reg. 12124, effective August 26, 1997; amended at 25 Ill. Reg. 2987, effective February 9, 2001; amended at 29 Ill. Reg. 10047, effective June 28, 2005; emergency amendment at 30 Ill. Reg. 14593, effective August 24, 2006, for a maximum of 150 days; amended at 31 Ill. Reg. 105, effective December 20, 2006; amended at 35 Ill. Reg. 18623, effective October 28, 2011; amended at 48 Ill. Reg. 17516, effective November 25, 2024.

SUBPART A: GENERAL REQUIREMENTS

 

Section 2650.10  Purpose

 

Through the Illinois Employer Training Investment Program (Program), the Department of Commerce and Economic Opportunity (Department) will provide training grants to businesses operating or locating in Illinois in conjunction with planned permanent expansion, location or retention activities; and to multi-company training projects sponsored by business or industry associations, institutions of secondary and higher education, strategic business partnerships, large manufacturers for supplier network companies, and labor organizations.  The purpose of the Program is to enhance employment opportunities for Illinois citizens by assisting Illinois employers in the training of their workforce, to assist multi-company training projects in addressing common employee training needs identified by participating companies, and to facilitate self-employment by encouragement and preparation through comprehensive, instructional programs and services and entrepreneurial education.

 

(Source:  Amended at 29 Ill. Reg. 10047, effective June 28, 2005)

 

Section 2650.20  Definitions

 

Director – The Director of the Department of Commerce and Economic Opportunity.

 

Employee Training – Training programs, that are on-the-job, in a classroom, on-line through a virtual classroom or e-learning program or any combination thereof, sponsored by an employer or other eligible grant recipient on behalf of employers, which are intended to provide employees with the skills required to perform their current job or as a condition of continued employment.  The employee skill requirements are established by the employer or participating employers and may include basic, technical, language and managerial skills.

 

Full-time Employee – An individual who is employed for consideration for at least 35 hours each week or who renders any other standard of service generally accepted by industry custom or practice as full-time employment. [35 ILCS 10/5-5]  Annually scheduled periods for inventory or repairs, vacations, holidays and paid time for sick leave, vacation or other leave shall be included in this computation of full-time employment.  An individual for whom a W-2 is issued by a Professional Employer Organization (PEO) is a full-time employee if employed in the service of the Applicant for consideration for at least 35 hours each week or who renders any other standard of service generally accepted by industry custom or practice as full-time employment to the Applicant. [35 ILCS 10/5-5] For example, an employee who works 25 hours per week is considered the industry standard for full-time in the package delivery industry and an employee who is employed for at least 35 hours per week during the historical seasonal production is considered the industry standard for full-time in the candy manufacturing industry.

 

GATA − the Grant Accountability and Transparency Act [30 ILCS 708] and its corresponding rules at 44 Ill. Adm. Code 7000.

 

Grantee – Any program applicant whose proposal is funded by the Department through a grant.

 

Grantor – The Illinois Department of Commerce and Economic Opportunity.

 

Labor Organization – Any collective bargaining unit or any labor entity formed by collective bargaining units such as State labor councils, district labor councils, local central labor councils and international unions as well as the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO).

 

Large Company – A company with facilities in Illinois that employs at least 250 full-time employees.  If the grant amount is less than $100,000, the Grantor shall serve the grantee as a Small to Mid-Sized Company, regardless of size, in circumstances where a grantee would be unduly burdened with the reporting requirements imposed on large companies based on variables including, but not limited to: amount of grant; previous experience; number of employees at start and end of training; term of grant; and number of trainees.

 

Large Manufacturers Supplier Network – Any company located or with facilities in the State of Illinois that supplies products or services to an original equipment manufacturer or large manufacturing assembly facility in Illinois.

 

Large Multi-Company Training Project – Any project submitted for the benefit of more than two companies that addresses the common employee training, retraining or skills upgrading needs identified by participating companies.  The majority of companies participating in the project shall be large.  High Volume Multi-Company Projects ($500,000 or more) and Large Manufacturers Supplier Network Projects, regardless of the size of the participating company, shall also be included in this definition.  The participating companies shall not include units of local, municipal, home rule, county, State or federal government or government agencies or government-operated facilities.

 

Location Activities – Activities necessary to retain existing companies and to attract new companies to Illinois (e.g., training).  All location training incentives, regardless of company size, will be treated as large companies for programmatic purposes.

 

New Employee – An individual who is hired by the grantee during the term of a training agreement or who is permanently transferred to Illinois during the term of a training agreement.

 

Planned Permanent Expansion – Any of the following will apply:

 

Permanent increase in the workforce (no minimum number of new jobs required);

 

Addition of new product line or expansion of existing product line; or

 

New capital investment in machinery or equipment.

 

Retention Activities – Activities necessary to keep existing companies in Illinois that might otherwise leave the State or reduce their workforce (e.g., retraining,

 

Retraining – The training of an employee with the intent that the employee will learn to perform a significantly different type of job than was previously held by that employee.

 

Small to Mid-Sized Company − A company with facilities in Illinois that employs fewer than 250 full-time employees.  If the grant amount is greater than or equal to $100,000, or if the grant is in connection with a development assistance package subject to applicable recapture provisions pursuant to Section 25 of the Corporate Accountability for Tax Expenditures Act [20 ILCS 715/25], the Department shall serve the grantee as a large company, regardless of size, in circumstances where a grantee would be better served as a large company based on variables including, but not limited to: amount of grant; previous experience; number of employees at start and end of training; term of grant; and number of trainees.

 

Small to Mid-Sized Multi-Company Training Project − Any project submitted for the benefit of more than two companies that addresses common employee training, retraining or skills, upgrading needs identified by participating companies.  The majority of companies participating in the project shall be small to mid-sized.  The participating companies shall not include units of local, municipal, home rule, county, State or federal government or government agencies or government-operated facilities.

 

Strategic Business Partnership – A formal or informal agreement between more than two businesses with facilities in Illinois where an objective of the partnership is to address employee training or other common workforce development issues among the participating businesses.

 

Trainee – A full-time existing or newly-hired employee of a company who is participating in a training, retraining or skills upgrading program. Part-time, seasonal, temporary and/or contractual employees are not precluded from being considered trainees for program reimbursement if the employer's primary business activity is in the biotechnology, biomedical or film and television production industries. No participating employee may be an unauthorized alien as defined in 8 U.S.C. 1324a.

 

Upgrade Training – The enhancement of employees' job skills with the intent that the employee will continue working at the same type of job (e.g., cross-training of skilled employees).

 

(Source:  Amended at 48 Ill. Reg. 17516, effective November 25, 2024)

 

Section 2650.30  Eligible Applicants and Training Activities

 

a)         An eligible applicant is any business locating, expanding, or having facilities in Illinois and that is undertaking one or more of the following training activities:

 

1)         Training programs in response to new or changing technologies or processes being introduced in the workplace;

 

2)         Training necessary to implement total quality management or improvement systems in the workplace;

 

3)         Job-linked training to upgrade existing employees' skills that leads directly to long-term job security;

 

4)         Training employees in skills necessary to enable the company to establish or expand into new export markets;

 

5)         Training in conjunction with new or additional product lines;

 

6)         Training related to new machinery or equipment;

 

7)         Training new or existing employees of companies that are locating or expanding in Illinois;

 

8)         Basic and/or remedial training of employees as a prerequisite for other vocational or technical skills training including English language instruction;

 

9)         Training related to regulatory compliance issues mandated for the workplace; or

 

10)       Technical, language, and vocational skills training provided to members of migrant communities who hold Temporary Protected Status.

 

b)         The Grantor also will accept applications submitted by Illinois-based business and industry associations, institutions of secondary and higher education, strategic business partnerships, large manufacturers for supplier network companies, and labor organizations on behalf of multi-company training projects when those projects address the common employee training needs identified by participating companies or the common training needs identified by the organization's membership. Eligible training activities for multi-company or membership training projects include, but are not limited to, one or more of the following:

 

1)         Training programs in response to new or changing technology being introduced in the workplace;

 

2)         Job-linked training to upgrade existing employees' skills that leads directly to long-term job security;

 

3)         Training necessary to implement total quality management or improvement systems within the workplace;

 

4)         Training related to new machinery or equipment;

 

5)         Training of employees of companies that are expanding into new markets or expanding exports from Illinois;

 

6)         Basic and/or remedial training of employees as a prerequisite for other vocational or technical skills training, including English language education;

 

7)         Other training activities and/or projects related to the support, development or evaluation of job training programs, activities and delivery systems, including training needs assessment and design;

 

8)         Self-employment training of the unemployed and underemployed with comprehensive, competency-based instructional programs and services, entrepreneurial education and training initiatives for youth and/or adult learners in cooperation with the Illinois Institute for Entrepreneurial Education, training and education, conferences, workshops and best practice information for local program operators of entrepreneurial and self-employment training programs; or

 

9)         Technical, language, and vocational skills training provided to members of migrant communities who hold Temporary Protected Status.

 

c)         Applicants must have an active GATA registration and be qualified on the GATA Grantee Portal prior to the delivery of an award and must be an entity regarded for federal income tax purposes.

 

(Source:  Amended at 48 Ill. Reg. 17516, effective November 25, 2024)

 

Section 2650.40  Allowable Costs

 

a)         Grants for employee training to single companies will allow for reimbursement or payment on the terms and conditions agreed to between the grantee and the Department through the execution of a grant agreement.  No grant shall exceed 50% of the total approved training costs.  Allowable costs for single company training projects include:

 

1)         Instructor costs, including wages, fringe benefits and travel expenses.

 

2)         Costs for tuition and educational fees.

 

3)         Training materials.

 

4)         Rent or lease of training equipment and/or facilities.

 

5)         Other usual and customary training costs.

 

6)         Trainee travel expenses.

 

7)         Trainee wages and fringe benefits.

 

b)         Grants for multi-company or membership training projects will allow for reimbursement or payment on the terms and conditions agreed to between the grantee and the Department through the execution of a grant agreement.  No grant shall exceed 50% of the total approved training costs.  Allowable costs for multi-company or membership training projects include:

 

1)         Administrative costs of tracking, documenting, reporting, auditing and processing training funds or project costs.  Administrative costs must be reasonable and shall not exceed 15% of the total approved direct training expenditures, including indirect costs.

 

2)         Costs of curriculum development.

 

A)        The Department will only reimburse for the costs of curriculum development when such curricula are judged by the Department as being of benefit to multiple Illinois employers and such curricula will be considered to be in the public domain.

 

B)        The Grantee shall include the following statement in all written materials produced in whole or in part by funds awarded under this Grant Agreement:  "This publication and material were supported in whole or in part by an Employer Training Investment Program grant awarded by the Illinois Department of Commerce and Economic Opportunity.  Representations made by this publication and material do not necessarily reflect the opinions and conclusions of the Department."

 

C)        The Department reserves the right to request at least one copy of all training materials used by the Grantee or any subcontractor for training which is eligible for reimbursement under the grant.  The Department will not distribute any proprietary information nor circulate any training materials without the expressed consent of the Grantee or subcontractor with the exception of those materials that are developed in whole or in part with State funds.

 

3)         Training materials, including manuals, workbooks, recordings, software programs, electronic media, and other materials that are used for training purposes only.  Any item that can be depreciated will not be considered to be training materials.

 

4)         Instructor costs, including wages, fringe benefits, and travel expenses.

 

5)         Rent or lease of training equipment and/or facilities.

 

6)                  Other usual and customary training costs.

 

7)         Trainee wages and fringe benefits.

 

(Source:  Amended at 48 Ill. Reg. 17516, effective November 25, 2024)

 

Section 2650.50  Grant Administration Requirements

 

a)         Audits – Grantees are subject to the audit requirements contained in the Single Audit Act Amendments of 1996 (31 U.S.C. 7501-7507), Subpart F of 2 CFR Part 200, and the audit rules and policies set forth by the Governor's Office of Management and Budget:  Budget (see 30 ILCS 708/65(c) and 44 Ill. Adm. Code 7000.90).

 

b)         Monitoring and Access to Information – Grantee must monitor its own activities, including those of any contractors or subrecipients, to assure compliance with applicable state and federal requirements and to assure its performance expectations are being achieved. Grantor will monitor the activities of Grantee to assure compliance with all requirements and performance expectations of the grant award. Grantee must timely submit all financial and performance reports, and must supply, upon Grantor's request, documents and information relevant to the award. Grantor may make site visits as warranted by Program needs.  (See 2 CFR 200.329 and 200.332.)  Additional monitoring requirements may be included in the grant agreement based on the results of the Grantee's risk assessments or the scope of work activities.

 

c)         Periodic Financial Reporting Requirements – Grantee must submit periodic financial reports as requested and in the format required by Grantor no later than the dues dates specified in the grant agreement. Grantee must submit quarterly reports with Grantor describing the expenditures of the funds related thereto, unless more frequent reporting is required by the Grantee or pursuant to specific award conditions. (See 2 CFR 200.208.)  Any report required by 30 ILCS 708/125 will be detailed in of the grant agreement.

 

d)         Periodic Performance Reporting Requirements − Grantees must submit periodic performance reports at least quarterly as requested.  (See 44 Ill. Adm. Code 7000.410.).

 

1)         The Grantee may use transcript records exported from a digital training platform to generate employee and course training records.

 

2)         When electronic transcripts are not available, an executive or designee of the company must attest to the accuracy and completion of generated training records.

 

e)         Financial and Performance Closeout Reports – Grantees must submit financial and performance close-out reports, in the format required by Grantor, by the due dates specified in the grant agreement.  (See 2 CFR 200.344; 44 Ill. Adm. Code 7000.440(b).)

 

(Source:  Amended at 48 Ill. Reg. 17516, effective November 25, 2024)

 

Section 2650.60  Anti-Discrimination and Drug Free Workplace

 

Grantee certifies that its employees and employees of companies who participate under the ETIP multi company program made pursuant to this Agreement, must comply with all applicable provisions of State and federal laws and regulations pertaining to nondiscrimination, sexual harassment and equal employment opportunity including, but not limited to: Illinois Human Rights Act [775 ILCS 5], including, without limitation, 44 Ill. Adm. Code 750- Appendix A, which is incorporated herein; Public Works Employment Discrimination Act [775 ILCS 10]; Civil Rights Act of 1964 (as amended) (42 U.S.C. 2000a - 2000h-6); Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794); Americans with Disabilities Act of 1990 (as amended) (42 U.S.C. 12101 et seq.); and the Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.). Grantee further certifies it will provide a drug free workplace pursuant to the Drug Free Workplace Act [30 ILCS 580/3].

 

(Source:  Amended at 48 Ill. Reg. 17516, effective November 25, 2024)

 

Section 2650.70  Selection for Funding (Recodified)

 

(Source:  Section 2650.70 recodified to Section 2650.140 at 13 Ill. Reg. 15386)

 

Section 2650.80  Allowable Costs (Recodified)

 

(Source:  Section 2650.80 recodified to Section 2650.40 at 13 Ill. Reg. 15386)

 

Section 2650.90  Grant Administration Requirements (Recodified)

 

(Source:  Section 2650.90 recodified to Section 2650.50 at 13 Ill. Reg. 15386)

 

Section 2650.100  Nondiscrimination (Recodified)

 

(Source:  Section 2650.100 recodified to Section 2650.60 at 13 Ill. Reg. 15386.)

SUBPART B: SINGLE COMPANY APPLICANTS