HB2927 97TH GENERAL ASSEMBLY

LRB097 08773 HLH 48903 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB2927

Introduced 2/23/2011, by Rep. Sidney H. Mathias

SYNOPSIS AS INTRODUCED:

See Index

Amends the Illinois Emergency Employment Development Act. Defines "Advisory Committee", "Department", "Director", "Employment Administrator", "service delivery area", and "Workforce Investment Act". Sets forth the powers of the Illinois Emergency Development coordinator and the uses for funds appropriated for the program. Provides that the Department of Employment Security shall publicize the program and that the Board of Higher Education and Community College Board shall review their policies to ensure that specified programs serve the needs of the economically disadvantaged. Sets forth the requirements for businesses receiving funds under the program concerning repayment. Establishes the Illinois 21st Century Workforce Development Fund Advisory Committee and provides its powers and duties. Provides how the funds shall be allocated among service delivery areas. Sets forth the powers and duties of the Employment Administrator. Provides what constitutes an eligible employer under the Act. Creates the Illinois 21st Century Workforce Development Fund. Provides that the Secretary of Human Services shall inform each applicant or recipient of the benefits of the program. Provides that the State of Illinois and other governmental units may employ unemployed or underemployed persons pursuant to this Act. Effective July 1, 2011.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning State government.

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

Section 5. The Illinois Emergency Employment Development Act is amended by changing Sections 2, 3, 6, 7, 9 and by adding Sections 11, 12, 13, 14, 15, 16, 17, and 18 as follows:

(20 ILCS 630/2) (from Ch. 48, par. 2402)

Sec. 2. For the purposes of this Act, the following words have the meanings ascribed to them in this Section.

(a) "Advisory Committee" means the 21st Century Workforce Development Fund Advisory Committee, established under the 21st Century Workforce Development Fund Act.

(b) (a) "Coordinator" means the Illinois Emergency Employment Development Coordinator appointed under Section 3.

(c) "Department" means the Illinois Department of Commerce and Economic Opportunity.

(d) "Director" means the Director of Commerce and Economic Opportunity.

(e) (b) "Eligible business" means a for-profit business.

(f) (c) "Eligible employer" means an eligible nonprofit agency, or an eligible business.

(g) (d) "Eligible job applicant" means a person who:

A. (1) has been a resident of this State for at least one year; and (2) is unemployed; and (3) is not receiving and is not qualified to receive unemployment compensation or workers' compensation; and (4) is determined by the employment administrator to be likely to be available for employment by an eligible employer for the duration of the job; or

B. is otherwise eligible for services under the Job Training Partnership Act (29 USCA 1501 et seq.).

In addition, a farmer who resides in a county qualified under Federal Disaster Relief and who can demonstrate severe financial need may be considered unemployed under this subsection.

(h) (e) "Eligible nonprofit agency" means an organization exempt from taxation under the Internal Revenue Code of 1954, Section 501(c)(3).

(i) (f) "Employment administrator" means the administrative entity designated by the Coordinator, and approved by the Advisory Committee, to administer the provisions of this Act in each service delivery area. With approval of the Advisory Committee, the Coordinator may designate an administrative entity authorized under the Workforce Investment Act or private, public, or non-profit entities that have proven effectiveness in providing training, workforce development, and job placement services to low-income individuals Manager of the Department of Commerce and Economic Opportunity Job Training Programs Division or his or her designee.

(j) (g) "Household" means a group of persons living at the same residence consisting of, at a maximum, spouses and the minor children of each.

(k) (h) "Program" means the Illinois Emergency Employment Development Program created by this Act consisting of temporary work relief projects in nonprofit agencies and new job creation in the private sector.

(l) (i) "Service Delivery Area" means that unit or units of local government designated by the Governor pursuant to Title I, Part A, Section 102 of the Job Training Partnership Act (29 USCA et seq.).

(m) (j) "Excess unemployed" means the number of unemployed in excess of 6.5% of the service delivery area population.

(n) (k) "Private industry council" means governing body of each service delivery area created pursuant to Title I, Section 102 of the Job Training Partnership Act (29 USC 1501 et seq.).

(o) "Service delivery area" means an area designated as a Local Workforce Investment Area by the State.

(p) "Workforce Investment Act" means the federal Workforce Investment Act of 1998, any amendments to that Act, and any other applicable federal statutes.

(Source: P.A. 94-793, eff. 5-19-06.)

(20 ILCS 630/3) (from Ch. 48, par. 2403)

Sec. 3. (a) The governor may appoint an Illinois Emergency Employment Development Coordinator to administer the provisions of this Act. The coordinator shall be within the Department of Commerce and Economic Opportunity, but shall be responsible directly to the governor. The coordinator shall have the powers necessary to carry out the purpose of the program.

(b) The coordinator shall:

(1) recommend one or more Employment Administrators for each service delivery area for approval by the Advisory Committee, with recommendations based on the demonstrated ability of the Employment Administrator to identify and address local needs Coordinate the Program with other State agencies;

(2) enter into a contract with one or more Employment Administrators in each service delivery area Coordinate administration of the program with the general assistance program;

(3) assist the Employment Administrator in developing a satisfactory plan if an Employment Administrator submits one that does not conform to program requirements Set policy regarding disbursement of program funds; and

(4) convene and provide staff support to the Advisory Committee;

(5) coordinate the program with other State agencies and services including public benefits and workforce programs for unemployed individuals; and Perform general program marketing and monitoring functions.

(6) perform general program marketing and monitoring functions.

(c) The coordinator shall administer the program within the Department of Commerce and Economic Opportunity. The Director of Commerce and Economic Opportunity shall provide administrative support services to the coordinator for the purposes of the program.

(d) The coordinator shall report to the Governor, the Advisory Committee, Illinois Job Training Coordinating Council and the General Assembly on a quarterly basis concerning (1) the number of persons employed under the program; (2) the number and type of employers under the program; (3) the amount of money spent in each service delivery area for wages for each type of employment and each type of other expenses; (4) the number of persons who have completed participation in the program and their current employment, educational or training status; and (5) any information requested by the General Assembly, the Advisory Committee, or governor or deemed pertinent by the coordinator; and (6) any identified violations of this Act and actions taken. Each report shall include cumulative information, as well as information for each quarter.

(e) Rules. The Director of Commerce and Economic Opportunity, with the advice of the coordinator, shall adopt rules for the administration and enforcement of this Act.

(Source: P.A. 96-995, eff. 1-1-11.)

(20 ILCS 630/6) (from Ch. 48, par. 2406)

Sec. 6. Funds appropriated for the purposes of the program shall not exceed $10 million per fiscal year.

Funds appropriated for the purposes of the program may be used as follows:

(a) To provide a State contribution for wages and fringe benefits for eligible job applicants for a maximum of 1,040 hours over a maximum period of 52 26 weeks per job applicant. For eligible job applicants participating in a job training program, the State contribution for wages may be used for a maximum period of 52 weeks per job applicant. The minimum allowable hourly wage for job applicants employed in this program shall not be below 120% of the current State minimum wage rate. At least 75% of the funds appropriated for the program must be used to pay wages and fringe benefits for eligible job applicants. State contribution amounts are as follows:

(1) For for-profit business employers, the The State contribution for wages shall be 50% of the minimum allowable hourly wage wages up to a maximum of $4 per hour for each eligible job applicant employed. The State contribution for fringe benefits may be up to 25% of the State wage contribution $1 per hour for each eligible job applicant employed. The employer must match wages in an amount equal to or greater than the State contribution for this program. Employers are responsible for the remaining costs of any benefits provided and other employment related costs. The However, the employer may use funds from other sources to provide increased wages and benefits to the applicants it employs. During the first fiscal year in which the program is in effect, at least 75% of the funds appropriated for the program must be used to pay wages for eligible job applicants. During each subsequent fiscal year in which the program is in effect, at least 85% of the funds appropriated for the program must be used to pay wages for eligible job applicants;

(2) For non-profit and government employers participating in this program as part of a work-relief project, the State contribution for wages shall be 75% of the minimum allowable hourly wage for each eligible job applicant employed. The State contribution for fringe benefits may be up to 25% of the state wage contribution per hour for each eligible job applicant employed. The employer must match wages in an amount equal to or greater than the State contribution for this program. The State contribution may be used to provide workers' compensation coverage to applicants employed by government or non-profit agencies under this Act. Employers are responsible for the remaining costs of any benefits. The employer may use funds from other sources to provide increased wages and benefits to the applicants it employs.

(b) To provide child care services or subsidies or other supportive services necessary to maintain employment to applicants employed under the program;

(c) To provide workers' compensation coverage to applicants employed by nonprofit agencies under the program;

(d) To provide job search assistance, labor market orientation, job seeking and work readiness skills, and referral for other services;

(e) To purchase supplies and materials for projects creating permanent improvements to public property in an amount not to exceed one percent of the funds appropriated; and .

(f) To reimburse the Department in an amount not to exceed 1% of the funds appropriated for the actual cost of administering this Act, and to reimburse the Employment Administrators in an amount not to exceed 4.5% of the funds allocated to them for their actual cost of administering this Act. The Director and the Employment Administrators shall leverage funds from other sources to cover the administrative costs of this program whenever possible.

The Employment Administrator of each service delivery area shall submit to the Coordinator a spending plan establishing that funds allocated to the service delivery area will be used within one year after the effective date, in the manner required by this Act. Any funds allocated to a service delivery area for which there is no spending plan approved by the Coordinator shall be returned to the Department and may be reallocated by the Coordinator to other Employment Administrators.

(Source: P.A. 84-792.)

(20 ILCS 630/7) (from Ch. 48, par. 2407)

Sec. 7. (a) The Department of Employment Security Commerce and Economic Opportunity shall publicize the program and shall provide staff assistance as requested by employment administrators in the screening of businesses and the collection of data.

(b) The Director of Children and Family Services shall provide to each employment administrator lists of currently licensed local day care facilities, updated quarterly, to be available to all persons employed under the program.

(c) The Secretary of Human Services shall take all steps necessary to inform each applicant for public aid of the availability of the program.

(d) The Board of Higher Education and the Community College Board shall review their policies for post-secondary vocational education to ensure that the programs serve the training needs of economically disadvantaged persons. Education programs shall attempt to provide training that will help individuals to obtain and retain employment. The training may include customized short-term training, basic skills training, programs to develop work habits, and other services designed for eligible job applicants and persons employed under this Act. Examples of education programs include, but are not limited to, adult vocational programs, adult basic or continuing education, area vocational-technical institutes, colleges, secondary education programs, and private and proprietary schools.

(Source: P.A. 94-793, eff. 5-19-06.)

(20 ILCS 630/9) (from Ch. 48, par. 2409)

Sec. 9. (a) Eligible businesses. A business employer is an eligible employer if it enters into a written contract, signed and subscribed to under oath, with the employment administrator for its service delivery area containing assurances that:

(1) funds received by a business shall be used only as permitted under the program;

(2) the business has submitted a plan to the employment administrator (1) describing the duties and proposed compensation of each employee proposed to be hired under the program; and (2) demonstrating that with the funds provided under the program the business is likely to succeed and continue to employ persons hired under the program;

(3) the business will use funds exclusively for compensation and fringe benefits of eligible job applicants and will provide employees hired with these funds with fringe benefits and other terms and conditions of employment comparable to those provided to other employees of the business who do comparable work;

(4) the funds are necessary to allow the business to begin, or to employ additional people, but not to fill positions which would be filled even in the absence of funds from this program;

(5) the business will cooperate with the coordinator in collecting data to assess the result of the program; and

(6) the business is in compliance with all applicable affirmative action, fair labor, health, safety, and environmental standards.

(b) In allocating funds among eligible businesses, the employment administrator shall give priority to businesses which best satisfy the following criteria:

(1) have a high potential for growth and long-term job creation;

(2) are labor intensive;

(3) make high use of local and State resources;

(4) are under ownership of women and minorities;

(5) have their primary places of business in the State; and

(6) intend to continue the employment of the eligible applicant for at least 6 months of unsubsidized employment.

(c) If the eligible employee remains employed for 6 months of unsubsidized employment, his employer may apply for a bonus equal to 1/6 of the subsidy provided to the employer for that employee under this Act.

(d) A business receiving funds under this program shall repay 70% of the amount received for each eligible job applicant employed who does not continue in the employment of the business beyond the 6-month subsidized period. If the employee continues in the employment of the business for one year or longer after the 6-month subsidized period, the business need not repay any of the funds received for that employee's wages and fringe benefits. If the employee continues in the employment of the business for a period of less than one year after the expiration of the 6-month subsidized period, the business shall receive a proportional reduction in the amount it must repay. If an employer dismisses an employee for good cause and works in good faith with the Employment Administrator to employ and train another person referred by the Employment Administrator, the payback formula shall apply as if the original person had continued in employment. A repayment schedule shall be negotiated and agreed to by the Employment Administrator and the business prior to the disbursement of the funds and is subject to renegotiation. The Employment Administrator shall forward payments received under this subdivision to the Coordinator on a monthly basis. The Coordinator shall deposit these payments into the Illinois 21st Century Workforce Development Fund.

(Source: P.A. 84-1399.)

(20 ILCS 630/11 new)

Sec. 11. Illinois 21st Century Workforce Development Fund Advisory Committee.

(a) The 21st Century Workforce Development Fund Advisory Committee, established under the 21st Century Workforce Development Fund Act, shall provide oversight to the Illinois Emergency Employment Development program.

(b) The Advisory Committee shall meet at the call of the Coordinator to do the following:

(1) establish guidelines for the selection of Employment Administrators;

(2) review recommendations of the Coordinator and approve final selection of Employment Administrators;

(3) develop guidelines for the emergency employment development plans to be created by each Employment Administrator;

(4) review the emergency employment development plan submitted by the Employment Administrator of each service delivery area and approve satisfactory plans;

(5) set policy regarding disbursement of program funds; and

(6) review program quarterly reports and made recommendations for program improvements as needed.

(20 ILCS 630/12 new)

Sec. 12. Allocation of funds among service delivery areas.

(a) 90% of the funds available for allocation to employment administrators for the program must be allocated among service delivery areas as follows: each service delivery area shall be eligible to receive that proportion of the funds available which equals the number of unemployed persons in the service delivery area divided by the total number of unemployed persons in the State for the 12-month period ending on the most recent March 31.

(b) 10% of the funds available for allocation to employment administrators under the program must be allocated at the discretion of the Advisory Committee to Employment Administrators:

(1) who will maximize the use of the funds through coordination with other programs and State, local, and federal agencies, through the use of matching funds, or through the involvement of low-income constituent groups;

(2)who have demonstrated need beyond the allocation available under subsection (a); and

(3)who have demonstrated outstanding performance in job creation.

(20 ILCS 630/13 new)

Sec. 13. Allocation within service delivery areas; priorities. Allocation of funds within a service delivery area shall be determined by the Employment Administrator in each service delivery area. The Employment Administrator shall give priority to job applicants who: (i) live in households with no other earned income source; (ii) have been unemployed for 6 months or more; or (iii) who would otherwise be eligible to receive Temporary Aid to Needy Families under Article IV of the Public Aid Code, Supplemental Nutrition Assistance Program, or general assistance under Article VI of the Illinois Public Aid Code.

(20 ILCS 630/14 new)

Sec. 14. Employment Administrators; powers and duties.

(a) The Employment Administrator for each service delivery area has the powers and duties given in this Section and any additional duties given by the Coordinator.

(b) Each Employment Administrator shall develop an emergency employment development plan for its service delivery area under guidelines developed by the Advisory Committee and submit it to the Coordinator within the period allowed by the Coordinator. To the extent feasible, the Employment Administrator shall seek input from potential eligible employers and the public. The Employment administrator shall consult with local sources of information to identify current local needs, including, but not limited, to local Workforce Investment Boards, economic development councils, community action agencies, and local Labor Market Information from the Department of Employment Security.

(c) Each Employment Administrator shall publicize the program within its service delivery area to seek maximum participation by eligible job applicants and employers.

(d) Each Employment Administrator shall enter into contracts with eligible employers setting forth the terms of their participation in the program as required by this Act.

(e) Each Employment Administrator shall screen job applicants and employers to achieve the best possible placement of eligible job applicants with eligible employers.

(f) Each Employment Administrator shall maintain a list of eligible job applicants unable to secure employment under the program at the time of application. The list shall prioritize eligible job applicants and shall be used to fill jobs with eligible employers as they become available. Each Employment Administrator shall receive and coordinate referrals from other local organizations.

(g) Each Employment Administrator shall cooperate with local educational and training institutions to coordinate and publicize the availability of their resources to assure that applicants may receive training needed before or while employed in jobs which are available under the program.

(h) Each Employment Administrator may disburse funds not to exceed 1% of the amount allocated to its service delivery area for the purchase of supplies and materials for projects creating permanent improvements to public property.

(20 ILCS 630/15 new)

Sec. 15. Eligible government and non-profit agency employment. A government or non-profit agency are eligible employers in this program. Both government and non-profit agencies may participate in this program as part of temporary work relief projects that are determined by the Employment Administrator to have long-term benefit to or be needed by the community, including, but not limited to, jobs in permanent public improvement projects, residential or public building weatherization projects, reforestation projects, mine land reclamation projects, tree planting or trimming projects, soil conservation projects, natural resource development projects, and community social service programs such as child care and home health care programs. For job applicants placed in a work relief project, their placement will not be considered employment for the purposes of unemployment insurance.

(20 ILCS 630/16 new)

Sec. 16. Illinois 21st Century Workforce Development Fund. All payments from businesses pursuant to subsection (d) of Section 9 shall be deposited into the 21st Century Workforce Development Fund, and all amounts in the Fund shall be appropriated to the Department for the purpose of making disbursements pursuant to Section 12. Subject to appropriations, an amount equal to 1% of the most recent fiscal year's total development assistance, as defined in the Corporate Accountability for Tax Expenditures Act, shall be deposited into this Fund for the purposes of this program. An additional 0.25% of the same amount shall be deposited into the fund each quarter of the year that statewide unemployment rates are above 8%.

(20 ILCS 630/17 new)

Sec. 17. Work incentive demonstration project.

(a) In order to maximize the opportunity for recipients of Temporary Assistance to Needy Families, Earnfare, Supplemental Nutrition Assistance Program, or other related public assistance to take full advantage of the jobs created by this Act, the Secretary of Human Services shall inform each applicant or recipient of benefits of the availability of this program.

(b) The Secretary of Human Services, the Coordinator, the Advisory Committee, and the Director of the Department of Corrections shall explore available resources to leverage in combination with the wage subsidies in this Act to develop a Transitional Jobs program. This Transitional Jobs program would prioritize services for individuals with limited experience in the labor market and barriers to employment, including but not limited to, recipients of Temporary Assistance to Needy Families, Supplemental Nutrition Assistance Program, or other related public assistance, and people with criminal records.

(20 ILCS 630/18 new)

Sec. 18. Unemployed or underemployed; employment by State and other governmental units.

(a) The State of Illinois, its departments, agencies, and instrumentalities, and any unit of local government, school district, or other body corporate and politic may employ unemployed or underemployed persons as defined in the federal Emergency Employment Act of 1971, as amended, and Comprehensive Employment and Training Act of 1973, as amended, and eligible applicants under this Act pursuant to the terms of those Acts.

(b) The provisions of Illinois law relating to preference in employment and promotion of persons having served in the armed services, the provisions of any law, rule, or regulation, the provisions of any city charter, or any ordinance or resolution, or the provisions of any other law or statute in conflict with the provisions of the federal Emergency Employment Act of 1971, as amended, and Comprehensive Employment and Training Act of 1973, as amended, and eligible job applicants under this Act shall not be applicable to the employment of the persons specified in subsection (a) of this Section.

Section 99. Effective date. This Act takes effect July 1, 2011.