Rep. Justin Slaughter

Filed: 3/6/2023

 

 


 

 


 
10300HB3418ham001LRB103 29223 HLH 58206 a

1
AMENDMENT TO HOUSE BILL 3418

2    AMENDMENT NO. ______. Amend House Bill 3418 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. Short title. This Act may be cited as the
5Securing All Futures through Equitable Reinvestment (SAFER)
6Communities Act.
 
7    Section 5. Intent. To reverse the trend of high
8unemployment among formerly incarcerated individuals and to
9spur the economic recovery of small businesses in Illinois, it
10is necessary to provide financial incentives for employers to
11create new, full-time jobs for individuals with felony
12conviction records.
13    The intent of this Act is to facilitate the re-entry into
14society of formerly incarcerated individuals and to create
15financial incentives for employers that hire formerly
16incarcerated individuals.
 

 

 

10300HB3418ham001- 2 -LRB103 29223 HLH 58206 a

1    Section 10. Definitions. As used in this Act:
2    "Average wage" means the average annual wage paid to
3individuals who are employed in the same occupation as the
4participant in the metropolitan or nonmetropolitan statistical
5area where the participant's primary job site is located.
6"Average annual wage" shall be determined by the Department
7using the most recent data published by the Bureau of Labor
8Statistics of the United States Department of Labor in its
9Occupational Outlook Handbook, or any similar Bureau of Labor
10Statistics publication, as of the effective date of the
11agreement for wage reimbursement under this Act.
12    "Barrier reduction funding" has the meaning given to that
13term in Section 605-415 of the Department of Commerce and
14Economic Opportunity Law of the Civil Administrative Code of
15Illinois.
16    "Date of hire" means the first date on which a participant
17begins working for an employer as a full-time employee.
18    "Department" means the Department of Commerce and Economic
19Opportunity.
20    "Director" means the Director of Commerce and Economic
21Opportunity.
22    "Disproportionately impacted area" means a census tract
23that is located in an R3 Area designated by the Restore,
24Reinvest, and Renew Program Board in accordance with Section
2510-40 of the Cannabis Regulation and Tax Act.

 

 

10300HB3418ham001- 3 -LRB103 29223 HLH 58206 a

1    "Employer" means an Illinois taxpayer that has an
2agreement with a Navigator to (i) hire at least one
3participant as a full-time employee and (ii) provide the
4employee with the knowledge or skills essential to the full
5and adequate performance of the job.
6    "Full-time employee" means an individual who is employed
7for at least 30 hours each week in (i) a position that is
8covered by a collective bargaining agreement between the union
9and an employer or (ii) a position for which the individual
10receives a wage that meets or exceeds the average wage for that
11occupation.
12    "Navigator" means any one or more of the following
13entities that has demonstrated expertise and effectiveness in
14administering workforce development programs for formerly
15incarcerated participants and is certified by the Department
16as a Navigator: a private nonprofit or not-for-profit
17organization, an industry association, an administrative
18entity under the federal Workforce Innovation and Opportunity
19Act, a community action agency, or a public or private
20educational institution.
21    "Participant" means an individual who:
22        (1) is an Illinois resident;
23        (2) was an unemployed or underemployed individual
24    immediately before being hired by the employer;
25        (3) served a sentence of incarceration in a State or
26    federal prison that (i) ends not more than 10 years before

 

 

10300HB3418ham001- 4 -LRB103 29223 HLH 58206 a

1    the date the employee is accepted by a Navigator to
2    participate in the program and (ii) ends or is expected to
3    end no later than 12 months after the employee is accepted
4    by a Navigator to participate in the program; and
5        (4) has been accepted by a Navigator to participate in
6    the program.
7    "Program" means the Securing All Futures through Equitable
8Reinvestment (SAFER) Communities Wage Reimbursement Pilot
9Program created in this Act.
10    "Underemployed individual" means an individual who:
11        (1) works part-time but desires full-time employment;
12        (2) works for wages not commensurate with the
13    individual's demonstrated level of educational or skill
14    achievement; or
15        (3) is employed and is eligible for assistance under
16    Section 6 of the Energy Assistance Act.
17    "Unemployed individual" means an individual who is without
18a job and who wants and is available for work. The
19determination of whether an individual is without a job, for
20purposes of this definition, shall be made in accordance with
21the criteria used by the Bureau of Labor Statistics of the
22United States Department of Labor or as required by the
23relevant funding source and set forth in the Notice of Funding
24Opportunities.
25    "Wage reimbursement" means the amount awarded by the
26Department to a Navigator to compensate the employer for the

 

 

10300HB3418ham001- 5 -LRB103 29223 HLH 58206 a

1employer's costs of employment for each participant hired by
2the employer.
 
3    Section 15. Powers of the Department. The Department is
4granted and shall have all the powers necessary or convenient
5to carry out the purposes and provisions of this Act,
6including, but not limited to, the power and authority to:
7        (1) adopt rules that are necessary and appropriate for
8    the administration of this Act;
9        (2) establish forms for applications, notifications,
10    contracts, or any other agreements needed to implement
11    this Act;
12        (3) accept applications for the program under this Act
13    at any time during the year and require that the
14    applications be submitted through the Internet or by any
15    other electronic means;
16        (4) provide guidance and assistance to Navigators for
17    the purpose of carrying out this Act and cooperate with
18    Navigators to promote, foster, and support job creation in
19    the State;
20        (5) enter into agreements and memoranda of
21    understanding with agencies of the federal government,
22    units of local government, universities, research
23    foundations or institutions, regional economic development
24    corporations, not-for-profit organizations, or other
25    organizations for the purpose of administering this Act;

 

 

10300HB3418ham001- 6 -LRB103 29223 HLH 58206 a

1        (6) gather information about Navigators for the
2    purpose of making any designations or certifications in
3    furtherance of the purposes of this Act;
4        (7) provide for sufficient personnel to adequately
5    discharge the Department's duties and responsibilities
6    described in this Act from any funds appropriated by the
7    General Assembly for the administration of this Act; and
8        (8) require Navigators, upon written request, to issue
9    any necessary authorization to the appropriate federal,
10    State, or local authority or any other person for the
11    release to the Department of information requested by the
12    Department, including, but not limited to, financial
13    reports, returns, or records relating to the Navigators or
14    to the amount of the wage reimbursement allowable under
15    this Act.
 
16    Section 20. SAFER Communities Wage Reimbursement Pilot
17Program.
18    (a) The Department shall, subject to appropriation, create
19a program to award grants to Navigators for the purposes
20described in this Section.
21    (b) The Department shall award grants to Navigators for
22the following purposes:
23        (1) providing wage reimbursements to employers that
24    hire participants, as provided in Sections 25 and 30;
25        (2) collaborating with employers to support

 

 

10300HB3418ham001- 7 -LRB103 29223 HLH 58206 a

1    participants who require on-the-job experience to gain job
2    skills, develop a work history, and begin a network for
3    entering the workforce; and
4        (3) providing barrier reduction funding, including,
5    but not limited to, transportation, housing, childcare,
6    and technology services to participants, as needed.
7    (c) The Department may also award grants for the following
8purposes to Navigators who are eligible to receive grants
9under subsection (b):
10        (1) establishing retention coaching programs that
11    support worker retention by continuing the services
12    described in subparagraph (3) of subsection (b) for one
13    year after job placement, as needed; and
14        (2) supporting participants who aspire to participate
15    in additional workforce development, training, and
16    technical skills programs and opportunities.
17    (d) Navigators shall use the Department's system of record
18to maintain a record of all participants who are eligible for
19the Program. Navigators shall verify each applicant's
20employment and conviction history to determine whether the
21applicant is eligible for participation in the program.
22Navigators shall notify applicants by email of the denial or
23approval of the application. Navigators may also send a
24physical copy of the denial or approval by first-class mail if
25the application indicates that email is not the applicant's
26preferred method of communication. Each denial letter issued

 

 

10300HB3418ham001- 8 -LRB103 29223 HLH 58206 a

1under this subsection shall state the reason why the
2individual's application is being denied. Navigators shall
3submit to the Department a record of each applicant's denial
4or approval. Navigators shall email qualified participants an
5electronic certification of eligibility with details about the
6wage subsidy program, which the participant may present to a
7prospective employer. The Navigator may also send a physical
8copy of the certification by first class mail if the
9application indicates that email is not the applicant's
10preferred method of communication.
 
11    Section 25. Eligibility and reporting.
12    (a) The Navigator shall enter into an agreement with the
13employer of an eligible participant to establish the general
14terms and conditions of wage reimbursements with respect to
15that participant. At a minimum, the agreement shall include:
16        (1) the participant's name, social security number or
17    individual taxpayer identification number, job
18    description, and salary;
19        (2) the physical address of the workplace at which the
20    participant is based;
21        (3) the negotiated reimbursement rate for the wage the
22    Navigator would receive under this Act with respect to the
23    participant listed on the application; and
24        (4) any other information required by the Department.
25    (b) Wage reimbursements provided to employers must not

 

 

10300HB3418ham001- 9 -LRB103 29223 HLH 58206 a

1directly or indirectly assist, promote, or deter union
2organizing.
3    (c) Navigators shall submit monthly reports in the form
4and manner required by the Department that include the
5employment status of each participant.
 
6    Section 30. Wage reimbursement.
7    (a) An employer may enter into a wage reimbursement
8agreement under Section 25 for each participant who is
9employed by the employer as a full-time employee for a full
10calendar month as of the date the agreement is entered into,
11provided that the following conditions are met:
12        (1) the participant shall be provided benefits and
13    working conditions at the same level and to the same
14    extent as other employees who have been employed by the
15    employer for a similar length of time and do the same type
16    of work as the participant;
17        (2) starting from the date of hire of the participant,
18    the employer shall maintain or increase its total number
19    of full-time Illinois employees; and
20        (3) the employer shall pay the participant a wage
21    that, when annualized, meets or exceeds the average wage
22    paid by the employer to other employees who have been
23    employed by the employer for a similar length of time and
24    do the same type of work as the participant.
25    (b) The wage reimbursement received by an employer shall

 

 

10300HB3418ham001- 10 -LRB103 29223 HLH 58206 a

1be 50% of the wages earned by each participant as a result of
2his or her employment with the employer. However, if the
3participant's primary job site is located in a
4disproportionately impacted area, then the wage reimbursement
5shall be 75% of the wages earned by that participant. No
6employer shall receive a wage reimbursement for a particular
7participant for more than 12 consecutive months.
 
8    Section 35. Data collection and reporting. For years in
9which it receives an appropriation for purposes of this Act,
10the Department shall make publicly available an annual report
11on the use, outcomes, and impact of the program described in
12this Act, including, but not limited to, the total number of
13participants hired under the program, disaggregated by
14categories of race, age, gender, hourly wage, length of job
15retention, recidivism status, job location by region, and
16employment industry.
 
17    Section 40. Awareness promotion of the pilot program. The
18Department of Corrections shall implement procedures to
19promote awareness and participation in the program among
20eligible persons, including, but not limited to, the
21following:
22        (1) The Department of Corrections shall ensure that
23    the wardens or superintendents of all correctional
24    institutions and facilities visibly post information about

 

 

10300HB3418ham001- 11 -LRB103 29223 HLH 58206 a

1    the availability and registration process for the program
2    in all common areas of their respective institutions, and
3    shall broadcast the same via in-house institutional
4    information television channels. The Department of
5    Corrections shall ensure that updated information is
6    distributed in a timely, visible, and accessible manner.
7        (2) The Department of Corrections shall ensure that
8    each incarcerated individual, upon release as a committed
9    person on parole, mandatory supervised release, aftercare
10    release, final discharge, or pardon, shall be provided
11    with written information about the availability and
12    registration process for the program.
13        (3) The Department of Corrections shall provide to
14    each parole office in this State information about the
15    availability and application process for the program,
16    which shall be posted in a visible and accessible manner.
17        (4) The Department of Corrections shall distribute
18    written information about the availability and application
19    process for the program to the Community Support Advisory
20    Councils of the Department of Corrections for use in
21    re-entry programs across this State.
 
22    Section 45. Funding. Implementation of this Act is subject
23to appropriation.
 
24    Section 50. Rulemaking authority. Upon an appropriation

 

 

10300HB3418ham001- 12 -LRB103 29223 HLH 58206 a

1for the Program, the Department may adopt rules that are
2necessary to implement and administer this Act.
 
3    Section 55. Repeal. This Act is repealed on December 31,
42029.
 
5    Section 895. The Illinois Administrative Procedure Act is
6amended by adding Section 5-45.35 as follows:
 
7    (5 ILCS 100/5-45.35 new)
8    Sec. 5-45.35. Emergency rulemaking; Securing All Futures
9through Equitable Reinvestment (SAFER) Communities Act. To
10provide for the expeditious and timely implementation of the
11Securing All Futures through Equitable Reinvestment (SAFER)
12Communities Act, emergency rules implementing that Act may be
13adopted in accordance with Section 5-45 by the Department of
14Commerce and Economic Opportunity. The adoption of emergency
15rules authorized by Section 5-45 and this Section is deemed to
16be necessary for the public interest, safety, and welfare.
17    This Section is repealed one year after the effective date
18of this amendatory Act of the 103rd General Assembly.
 
19    Section 900. The Illinois Income Tax Act is amended by
20changing Section 216 and by adding Section 216.1 as follows:
 
21    (35 ILCS 5/216)

 

 

10300HB3418ham001- 13 -LRB103 29223 HLH 58206 a

1    Sec. 216. Credit for wages paid to ex-felons.
2    (a) For each taxable year beginning on or after January 1,
32007 and before January 1, 2024, each taxpayer is entitled to a
4credit against the tax imposed by subsections (a) and (b) of
5Section 201 of this Act in an amount equal to 5% of qualified
6wages paid by the taxpayer during the taxable year to one or
7more Illinois residents who are qualified ex-offenders. The
8total credit allowed to a taxpayer with respect to each
9qualified ex-offender may not exceed $1,500 for all taxable
10years. For partners, shareholders of Subchapter S
11corporations, and owners of limited liability companies, if
12the liability company is treated as a partnership for purposes
13of federal and State income taxation, there shall be allowed a
14credit under this Section to be determined in accordance with
15the determination of income and distributive share of income
16under Sections 702 and 704 and Subchapter S of the Internal
17Revenue Code.
18    (b) For purposes of this Section, "qualified wages":
19        (1) includes only wages that are subject to federal
20    unemployment tax under Section 3306 of the Internal
21    Revenue Code, without regard to any dollar limitation
22    contained in that Section;
23        (2) does not include any amounts paid or incurred by
24    an employer for any period to any qualified ex-offender
25    for whom the employer receives federally funded payments
26    for on-the-job training of that qualified ex-offender for

 

 

10300HB3418ham001- 14 -LRB103 29223 HLH 58206 a

1    that period; and
2        (3) includes only wages attributable to service
3    rendered during the one-year period beginning with the day
4    the qualified ex-offender begins work for the employer.
5    If the taxpayer has received any payment from a program
6established under Section 482(e)(1) of the federal Social
7Security Act with respect to a qualified ex-offender, then,
8for purposes of calculating the credit under this Section, the
9amount of the qualified wages paid to that qualified
10ex-offender must be reduced by the amount of the payment.
11    (c) For purposes of this Section, "qualified ex-offender"
12means any person who:
13        (1) has been convicted of a crime in this State or of
14    an offense in any other jurisdiction, not including any
15    offense or attempted offense that would subject a person
16    to registration under the Sex Offender Registration Act;
17        (2) was sentenced to a period of incarceration in an
18    Illinois adult correctional center; and
19        (3) was hired by the taxpayer within 3 years after
20    being released from an Illinois adult correctional center.
21    (d) In no event shall a credit under this Section reduce
22the taxpayer's liability to less than zero. If the amount of
23the credit exceeds the tax liability for the year, the excess
24may be carried forward and applied to the tax liability of the
255 taxable years following the excess credit year. The tax
26credit shall be applied to the earliest year for which there is

 

 

10300HB3418ham001- 15 -LRB103 29223 HLH 58206 a

1a tax liability. If there are credits for more than one year
2that are available to offset a liability, the earlier credit
3shall be applied first.
4    (e) This Section is exempt from the provisions of Section
5250.
6(Source: P.A. 98-165, eff. 8-5-13.)
 
7    (35 ILCS 5/216.1 new)
8    Sec. 216.1. Credit for wages paid to ex-offenders.
9    (a) In this Section:
10    "Qualified ex-offender" means any person who was hired by
11the taxpayer within 10 years after being released from a
12correctional center in the State.
13    "Qualified wages" includes only wages that are
14attributable to service rendered during the one-year period
15beginning with the day the qualified ex-offender begins work
16for the employer and are subject to federal unemployment tax
17under Section 3306 of the Internal Revenue Code, without
18regard to any dollar limitation contained in that Section.
19"Qualified wages" does not include any amounts paid or
20incurred by an employer for any period to any qualified
21ex-offender for whom the employer receives State-funded or
22federally funded payments for on-the-job training of that
23qualified ex-offender for that period. If the taxpayer has
24received any payment from a program established under Section
25482(e)(1) of the federal Social Security Act with respect to a

 

 

10300HB3418ham001- 16 -LRB103 29223 HLH 58206 a

1qualified ex-offender, then the amount of the qualified wages
2paid to that qualified ex-offender must be reduced, for
3purposes of calculating the credit under this Section, by the
4amount of the payment.
5    (b) For each taxable year beginning on or after January 1,
62024, each taxpayer is entitled to a credit against the tax
7imposed by subsections (a) and (b) of Section 201 of this Act
8in an amount equal to 10% of the qualified wages paid by the
9taxpayer during the taxable year to one or more Illinois
10residents who are qualified ex-offenders. For taxpayers
11employing 100 or more employees on the last day of the taxable
12year, the total credit allowed with respect to each qualified
13ex-offender may not exceed $1,500 for all taxable years. For
14taxpayers employing fewer than 100 employees on the last day
15of the taxable year, the total credit allowed with respect to
16each qualified ex-offender may not exceed $5,000 for all
17taxable years.
18    (c) For partners and shareholders of Subchapter S
19corporations, there shall be allowed a credit under this
20Section to be determined in accordance with the determination
21of income and distributive share of income under Sections 702
22and 704 and Subchapter S of the Internal Revenue Code.
23    (d) In no event shall a credit under this Section reduce
24the taxpayer's liability to less than zero. If the amount of
25the credit exceeds the tax liability for the year, the excess
26may be carried forward and applied to the tax liability of the

 

 

10300HB3418ham001- 17 -LRB103 29223 HLH 58206 a

15 taxable years following the excess credit year. The tax
2credit shall be applied to the earliest year for which there is
3a tax liability. If there are credits for more than one year
4that are available to offset a liability, the earlier credit
5shall be applied first.
6    (e) This Section is exempt from the provisions of Section
7250.
 
8    Section 999. Effective date. This Act takes effect upon
9becoming law.".