093_HB2157ham001 LRB093 10425 RCE 12643 a 1 AMENDMENT TO HOUSE BILL 2157 2 AMENDMENT NO. . Amend House Bill 2157 by replacing 3 everything after the enacting clause with the following: 4 "Section 1. Short title. This Act may be cited as the 5 Welfare to Work Act. 6 Section 5. Legislative findings; purpose. The General 7 Assembly hereby finds that: 8 (a) Poverty and welfare dependence are widespread 9 throughout the State of Illinois. Almost 1,500,000 of its 10 citizens are dependent on the State's public assistance 11 programs for their most basic needs; and over 40,000 families 12 rely on cash assistance from the State for all or part of 13 their subsistence needs. 14 (b) Poverty and unemployment diminish individual 15 self-esteem, can undermine family stability, and affect 16 family formation, community security and cohesion. 17 (c) Under the new federal welfare law, the Personal 18 Responsibility and Work Opportunity Reconciliation Act of 19 1996, cash assistance benefits will be limited to 60 months, 20 and over 100,000 adult heads of households in the Illinois 21 welfare caseload must be employed by the year 2002 or they 22 and their children will be destitute. -2- LRB093 10425 RCE 12643 a 1 (d) Voluntary efforts by the private sector to employ 2 welfare recipients are laudable and are to be commended, but 3 the State must also take direct responsibility to ensure that 4 welfare recipients are hired in jobs that will allow them to 5 leave the welfare rolls altogether. 6 (e) The State spends billions of dollars each year to 7 improve its economy and infrastructure, and to deliver 8 services to the people of the State, all of which also serves 9 to provide jobs for its citizens. 10 (f) The State can accomplish the objectives of relieving 11 welfare dependency and ensuring economic self-sufficiency as 12 well as the objectives related to carrying out necessary 13 governmental operations at the same time, and with 14 significant savings in State outlays in cash assistance and 15 supportive service dollars. 16 (g) Poverty and welfare dependency can be alleviated by 17 targeting some of the resources of the State and making jobs 18 available to the welfare poor, specifically by bringing 19 qualified poor persons into the State workforce and into the 20 workforces that are generated through State contracts, 21 without causing the displacement of existing workers. 22 (h) Some State jobs that are newly created or that are 23 open through attrition and some jobs created under State 24 contracts, can be filled by qualified welfare recipients 25 without compromising the integrity of the hiring process, 26 contractor profits, collective bargaining agreements, timely 27 completion of projects, or the health and safety of Illinois 28 workers. 29 (i) To the extent that these jobs are filled by welfare 30 recipients, the State accomplishes 4 important governmental 31 objectives simultaneously: (1) the alleviation of welfare 32 dependency, ensuring of economic self-sufficiency, and 33 lifting of individuals and families out of poverty, (2) the 34 stabilization of families and communities that are hardest -3- LRB093 10425 RCE 12643 a 1 hit by persistent poverty and unemployment, (3) the 2 accomplishment of the essential work of the State which must 3 be performed through these jobs, and (4) the reduction of 4 State outlays for cash assistance and services for the poor. 5 (j) The State's immediate, direct and significant 6 interest in relieving welfare dependency and the employment 7 of the poor in jobs generated through the expenditure of 8 State funds constitutes the basis of this Act. 9 Section 10. Definitions. As used in this Act: 10 "Aid recipient" means: 11 (a) a person financially eligible to receive cash 12 assistance under the Temporary Assistance for Needy 13 Families program, the Transitional Assistance program, or 14 any other cash assistance program administered by the 15 Department of Human Services financed in whole or in part 16 by the State; 17 (b) a person financially eligible for cash 18 assistance under Article VI of the Public Aid Code, 19 whether receiving assistance or not; an Earnfare 20 participant; and an unemployed person or employed person 21 who is earning less than the poverty level in wages and 22 who is also married to the parent of a child receiving 23 cash assistance or the legally adjudicated father of a 24 child receiving cash assistance; and 25 (c) a person who, within the previous 60 months, has 26 been found eligible and placed for training or employment 27 under the United States Department of Housing and Urban 28 Development's Section 3 program, or under any other 29 local, state, or federal government program that creates 30 training or hiring preferences or priorities for low 31 income persons, and who was, at the time of entry into 32 such program an "aid recipient" as defined under 33 paragraph (a) or (b) of this definition. -4- LRB093 10425 RCE 12643 a 1 "Contracts for personal services" has the same meaning as 2 under Section 14 of the State Finance Act. 3 "Covered contract" means a contract, aid, or grant 4 between the State and any other entity or entities, whether 5 private, public, or not-for-profit, regardless of the purpose 6 of the contract, aid, or grant, and means contracts, aid, and 7 grants between those entities and their contractors and 8 subcontractors, but only if the contract or grant is payable 9 by the State in an amount in excess of $250,000 or a 10 subcontract is for an amount in excess of $100,000. 11 Recipients of contracts, aid, and grants may not divide 12 contracts or spread out the work to be undertaken for 13 purposes of avoiding having a covered contract. 14 "Covered employee" means a person who is found eligible 15 for employment and hired under this Act. 16 "Covered employer" means an employer in receipt of a 17 "covered contract" payment and thus subject to the 18 requirements of this Act with respect to a "covered 19 contract". 20 "Covered position" means a State-funded position of 21 employment, whether civil service or under contract for 22 personal services, that the Department of Human Services has 23 not found exempt under Section 25 of this Act. 24 "Department" means the Department of Human Services. 25 "Qualified aid recipient" means an "aid recipient" who 26 meets each of the qualifications, including education, 27 training, and experience, if any, that have been established 28 by the employer for the position. 29 "State agencies" means all State departments (whether 30 code or otherwise), boards, commissions, authorities, 31 councils, officers, bureaus, units, colleges and 32 universities, and executive, legislative and judicial 33 agencies. -5- LRB093 10425 RCE 12643 a 1 Section 15. Disclosure of potential covered positions. 2 Simultaneously with posting its positions or putting a 3 position out for hire by contract, each State agency shall 4 provide the Department of Employment Security with a copy of 5 a job announcement specifying the job description and 6 qualifications of each position that is newly created, is 7 open, or is otherwise posted for hire or for hire under 8 contract. This requirement does not apply when the position 9 is one that is subject to recall by a laid-off employee or 10 employees. 11 Section 20. Duties of the Department of Employment 12 Security. 13 (a) The Department of Employment Security shall place 14 these positions on the Illinois Skills Match System. 15 (b) If the position is permanently exempted, the State 16 agency need not provide the Department of Employment Security 17 with position announcements for that position in the future. 18 However, if an exemption of any position is revoked, from the 19 point of that revocation forward, the State agency again 20 shall provide the Department of Employment Security with 21 announcements of that position. 22 (d) If the position is temporarily exempted, the 23 provisions of this Act do not apply to the position, but the 24 State agency must provide announcements to the Department of 25 Employment Security of future openings of that position. 26 (e) If the position is not determined by the State 27 agency to be exempted, it is a covered position under this 28 Act. 29 Section 30. Eligibility determinations. Upon the 30 request of a person who believes that he or she is an aid 31 recipient within the meaning of this Act or the request of a 32 State agency or covered employer on behalf of such a person, -6- LRB093 10425 RCE 12643 a 1 the Department shall make the determination of whether the 2 person is an aid recipient within the meaning of this Act and 3 shall provide the necessary written proof of aid recipient 4 status to the aid recipient and to any other person, 5 including the party making request on behalf of the aid 6 recipient, if the aid recipient authorizes it in writing. 7 Section 35. Recruitment, screening, and referrals to 8 training and for jobs under this Act. 9 (a) In order to facilitate a steady stream of 10 potentially qualified aid recipients into positions available 11 under this Act, the Department of Human Services shall: 12 (1) register all TANF recipients in the Illinois 13 Skills Match System and work with public, private, and 14 not-for-profit job training programs and certified joint 15 apprenticeship training programs to develop and make use 16 of training programs to facilitate channeling aid 17 recipients into such training programs that correspond 18 with, and will qualify them for, open covered positions 19 and positions under covered contracts; 20 (2) coordinate the recruitment, screening, and 21 referrals for placement of aid recipients in education 22 and training programs that correspond with the job 23 qualifications and requirements of covered positions and 24 positions under covered contracts; 25 (3) coordinate the recruitment, screening, and 26 referrals of potentially qualified aid recipients to 27 employers for open covered positions and positions under 28 covered contracts; 29 (b) The Department shall maintain an equal balance in 30 its referrals of potentially qualified aid recipients to 31 training programs, to employers for covered positions, and to 32 positions under covered contracts as identified on the 33 Illinois Match System as appropriate as between those who -7- LRB093 10425 RCE 12643 a 1 qualify under paragraph (a) of the definition of "aid 2 recipient" in Section 10 of this Act. 3 (c) The duties of the Department specified in this 4 Section may be carried out, in whole or in part, under 5 contracts entered into by the Department with units of local 6 government or by not-for-profit community based 7 organizations. 8 Section 40. Hiring without referrals authorized. Any 9 aid recipient who believes he or she is a qualified aid 10 recipient may apply, through the Illinois Skills Match System 11 and without a referral by the Department, for jobs under this 12 Act. For any covered position, whether previously determined 13 by the Department to be a covered position or not, if the 14 Illinois Skills Match System finds the applicant to be a 15 qualified aid recipient, the applicant shall be provided the 16 preference this Act affords. For any position under a covered 17 contract, the employer may count, under the requirements 18 imposed under this Act, any aid recipient hired, whether 19 referred by the Department or not, as an employee meeting the 20 requirements during the life of the contract. 21 Section 45. Hiring requirements relative to covered 22 positions. 23 (a) Verification that an applicant for a position is an 24 aid recipient shall be made by the State agency, if 25 necessary, by copying for its records the applicant's public 26 aid card or such other proof of aid recipient status as has 27 been provided to the aid recipient or employer by the 28 Department of Human Services. 29 (b) The State agency shall provide qualified aid 30 recipients with a hiring preference in accordance with the 31 requirements for civil service positions under Section 8b.7-1 32 of the Personnel Code, and for personal service contract -8- LRB093 10425 RCE 12643 a 1 positions, under Section 45-70 of the Illinois Procurement 2 Code. 3 (c) The minimum qualifications for hire, wages, days per 4 week, hours per day, shifts of employment, and terms and 5 conditions of employment of a qualified aid recipient who is 6 hired under this Act shall be the same as for other members 7 of the employer's workforce doing the same or similar work 8 and shall be subject to the same State and federal laws. 9 (d) Nothing in this Act prevents a State agency from 10 counting a person hired under this Act, who is also a 11 protected female or minority, toward that employer's 12 affirmative action obligations that may otherwise be imposed. 13 (e) Nothing in this Act diminishes the full authority 14 and prerogative of State agencies to determine independently 15 an aid recipient's qualifications and to make independently 16 all hiring decisions, based on merit, under this Act. 17 Section 50. Contract requirements. Each covered 18 contract shall contain provisions incorporating all of the 19 following requirements: 20 (a) Not less than 5% of the hours worked under positions 21 that are paid under a covered contract shall be worked by 22 qualified aid recipients. 23 (b) In order to facilitate compliance with this Act, a 24 covered employer may notify the Department of Employment 25 Security of jobs that are opening under the covered contract 26 for which aid recipients may be qualified in order to receive 27 referrals of aid recipients through the Illinois Skills Match 28 System. 29 (c) The covered employer shall verify that an applicant 30 for a position is an aid recipient, and shall maintain a 31 record of the aid recipient's status by copying for its 32 records the applicant's public aid card or such other proof 33 of aid recipient status as has been provided to the recipient -9- LRB093 10425 RCE 12643 a 1 or employer by the Department of Human Services. 2 (d) The covered employer shall make the determination of 3 whether an aid recipient who applies for the position is a 4 qualified aid recipient. Nothing in this Act implies a 5 diminution of the full authority and prerogative of covered 6 employers to determine independently an aid recipient's 7 qualifications and to make independently all hiring decisions 8 under this Act. No State agency may require an employer to 9 hire an aid recipient who is not qualified for the position 10 for which the aid recipient is applying. 11 (e) The number of covered employees in a workforce shall 12 be calculated as follows: the number of total hours worked 13 under the contract are the "worker hours". The number of 14 hours that covered employees have worked under the contract 15 are the "covered employee hours". The "covered employee 16 hours" shall be divided by the "worker hours" and the product 17 shall be no less than 0.05 during the life of the contract. 18 If the covered contract includes positions that are otherwise 19 reported to the State and federal government only by daily or 20 weekly full time equivalency, then those positions shall be 21 calculated by dividing the full-time equivalent of the 22 covered employees in those positions by the total full-time 23 equivalent for those positions. An employer may sponsor a 24 covered worker in an apprenticeship training program or other 25 education or training program, in which case the employer may 26 count the number of hours or days in off-site training or 27 classroom instruction toward the requirements of this 28 Section. 29 (f) A covered employer who is unable to hire at least 5% 30 of its workforce from qualified aid recipients under a 31 covered contract shall certify to the Department of 32 Employment Security the circumstances which made meeting the 33 requirements of this Act impossible. Permitted circumstances 34 may include the high percentage of professional, high -10- LRB093 10425 RCE 12643 a 1 skilled, or journey level workers needed under the contract, 2 the need to recall out of work employees who are receiving 3 unemployment compensation through the covered employer, or 4 other circumstances outside of the control of the covered 5 employer. If a covered employer has not met the percentage 6 hire requirements under this Act, and did not notify the 7 Department of jobs that have become available under its 8 covered contract, and jobs existed under that contract for 9 potentially qualified aid recipients, the covered employer 10 shall be deemed to have been able to hire the requisite 11 percentage of aid recipients under this Act, and failed to do 12 so. 13 (g) At the request of the covered employer to the 14 Department of Employment Security, the requirements of hiring 15 covered employees under this Section may be waived, in 16 advance, by the Department, in whole or in part, in 17 accordance with rules established by the Department, if 18 enough qualified aid recipients are not referred or cannot be 19 hired due to circumstances set forth in subsection (5). To 20 receive this waiver, the covered employer must request the 21 waiver before hiring under the covered contract, and must 22 include in its request for the waiver, job descriptions for 23 each of the positions that are subject to hire under the 24 covered contract, and the number of people estimated to be 25 hired for each such job. 26 (h) The minimum qualifications for hire, and the wages, 27 days per week, hours per day, shifts of employment, and terms 28 and conditions of employment, of a covered employee shall be 29 the same as for other members of the employer's workforce 30 doing the same or similar work and shall be subject to the 31 same State and federal laws. 32 (i) Covered employees shall abide by all health and 33 safety rules and laws imposed on a covered employer's 34 workforce. -11- LRB093 10425 RCE 12643 a 1 (j) This Act does not require covered employers to 2 provide any additional or separate training or apprenticeship 3 programs for aid recipients that the employer would not 4 otherwise provide to other workers in the same or similar 5 jobs at the same or similar level of experience. 6 (k) Nothing in this Act prevents a covered employer from 7 counting a covered employee, who is also a protected female 8 or minority, toward the employer's affirmative action 9 obligations that may otherwise be imposed. 10 Section 55. Duties of the Department of Employment 11 Security. The Department of Employment Security shall ensure 12 that covered employers comply with the provisions of this Act 13 and shall work with the Department of Human Services and the 14 Social Services Advisory Council in promulgating rules for 15 implementation and governance and to effectuate the purposes 16 of this Act, including contractor compliance. In 17 promulgating compliance rules, the Illinois Department of 18 Employment Security shall create provisions that assure that 19 there will be good faith attempts at negotiation and 20 conciliation, and the affording of the protections of due 21 process of law before any sanctions against a contractor are 22 imposed. 23 Section 60. Compliance and Reporting. 24 (a) The Department of Human Services, the Department of 25 Employment Security, and the General Assembly are jointly 26 empowered to ensure and monitor covered employer and State 27 agency compliance with the provisions of this Act. 28 (b) The Department of Employment Security shall annually 29 prepare a report to the Department of Human Services and the 30 General Assembly demonstrating its hiring under this Act from 31 the Illinois Skills Match System. The report shall be 32 submitted to the Department of Human Services and the -12- LRB093 10425 RCE 12643 a 1 minority and majority leaders of the House of Representatives 2 and the Senate no later than January 31 of each year. The 3 report shall set forth, for the previous calendar year, the 4 total number of positions filled by the State agency, the 5 number of positions not exempted and thus found to be covered 6 positions by the Department, and the number of positions 7 filled by aid recipients produced from the Illinois Skills 8 Match System. 9 (c) The report shall be subject to public inspection, 10 review, and copying. 11 (d) Each covered contractor shall annually prepare a 12 single duplicated report that documents its hiring practices 13 under this Act that shall be submitted both to the Department 14 of Employment Security and the Department of Human Services. 15 The report shall be submitted no later than January 31 of 16 each year. The report shall set forth, for the previous 17 calendar year, for each covered contract, the calculations of 18 total worker hours and covered employee hours and the 19 percentage of covered employee hours, and such other data and 20 information as may be required by rule. 21 (e) The Department of Employment Security shall collate 22 the contractor reports and shall submit a report to the 23 minority and majority leaders of both chambers of the General 24 Assembly no later than the first day of March of each year, 25 with the total worker hours, the total covered employee 26 hours, and the percentage of hours of work by covered 27 employees. The Department of Human Services shall set forth 28 the number of aid recipients who have closed their aid cases 29 or had their aid reduced as a result of positions obtained 30 under this Act, and shall set forth such other data and cost 31 savings as it deems appropriate. 32 (f) The Department's summary reports shall be subject to 33 public inspection, review and copying. -13- LRB093 10425 RCE 12643 a 1 Section 905. The Personnel Code is amended by adding 2 Section 8b.7-1 as follows: 3 (20 ILCS 415/8b.7-1 new) 4 Sec. 8b.7-1. Qualified aid recipient preference. For the 5 granting of preferences to "qualified aid recipients" within 6 the meaning of the Welfare to Work Act. The preference shall 7 be given only after the application and provision of veterans 8 preferences under Section 8b.7, unless the applicant is 9 subject to preferences under both veterans and qualified aid 10 recipient designations, in which case those persons shall 11 take precedence. When qualified aid recipients are on 12 eligible lists on the basis of category rankings such as 13 superior, excellent, well-qualified, and qualified, they 14 shall be preferred over nonveterans who are not qualified aid 15 recipients in the same category. Notwithstanding Section 16 8b.5, when a list is prepared by numerical rankings, and a 17 qualified aid recipient is one of the top 3 candidates on the 18 basis of the numerical ranking, the qualified aid recipient 19 shall be appointed, unless one or two of the other candidates 20 is a qualified veteran. 21 Section 910. The Illinois Procurement Code is amended by 22 adding Section 45-70 as follows: 23 (30 ILCS 500/45-70 new) 24 Sec. 45-70. Contracts for personal services; qualified 25 aid recipients. All contracts for personal services, as 26 defined under Section 14 of the State Finance Act, shall be 27 subject to the preference of "qualified aid recipients" 28 within the meaning of the Welfare to Work Act, over others 29 who are similarly qualified. 30 Section 999. Effective date. This Act takes effect upon -14- LRB093 10425 RCE 12643 a 1 becoming law.".