SB2305sam001 98TH GENERAL ASSEMBLY

Sen. Terry Link

Filed: 4/10/2013

09800SB2305sam001 LRB098 10748 NHT 43968 a

AMENDMENT TO SENATE BILL 2305

AMENDMENT NO. ______. Amend Senate Bill 2305 by replacing everything after the enacting clause with the following:

"Section 5. The Public Community College Act is amended by adding Section 3-42.4 as follows:

(110 ILCS 805/3-42.4 new)

Sec. 3-42.4. New jobs training.

(a) In this Section:

"Agreement" means the agreement between an employer and a board concerning a project.

"Bonds" means bonds that are payable from a sufficient portion of the future receipts of payments authorized by an agreement, which receipts must be pledged to the payment of principal of and interest on the bonds.

"Certificate" means debt certificates that are payable from a sufficient portion of the future receipts of payments authorized by an agreement, which receipts must be pledged to the payment of principal of and interest on the debt certificates.

"Date of commencement of the project" means the date of the agreement.

"Employee" means the person employed in a new job.

"Employer" means the person providing new jobs within the boundaries of the community college district and entering into an agreement.

"Industry" means a business engaged in interstate or intrastate commerce for the purpose of manufacturing, processing, or assembling products, conducting research and development, or providing services in interstate commerce, but excludes retail, health, or professional services. "Industry" does not include a business that closes or substantially reduces its operation in one area of this State and relocates substantially the same operation in another area of this State. This definition does not prohibit a business from expanding its operations in another area of this State, provided that existing operations of a similar nature are not closed or substantially reduced.

"New job" means a job in a new or expanding industry, but does not include jobs of recalled workers or replacement jobs or other jobs that formerly existed in the industry in this State.

"New jobs training program" or "program" means the project or projects established by a community college district for the creation of jobs by providing education and training of workers for new jobs for new or expanding industry within the boundaries of the community college district.

"Program costs" means all necessary and incidental costs of providing program services.

"Program services" includes without limitation the following:

(1) New jobs training.

(2) Adult basic education and job-related instruction.

(3) Vocational and skill-assessment services and testing.

(4) Training facilities, equipment, materials, and supplies.

(5) On-the-job training.

(6) Administrative expenses for the new jobs training program.

(7) Subcontracted services with public or private colleges or universities or other federal, State, or local agencies.

(8) Contracted or professional services.

(9) The issuance of certificates.

"Project" means a training arrangement that is the subject of an agreement entered into between the board and an employer to provide program services.

(b) A board may enter into an agreement to establish a project. If an agreement is entered into, the board and the employer shall notify the State Board as soon as possible. An agreement shall provide for program costs, including deferred costs, that may be paid from one or a combination of the following sources:

(1) Property taxes to be received or derived from an employer's business property where new jobs are created as a result of the project.

(2) Tuition, student fees, or special charges fixed by the board to defray program costs in whole or in part.

(3) Guarantee of payments to be received under item (1) or (2) of this subsection (b).

(c) Payment of program costs must not be deferred for a period longer than 10 years from the date of commencement of the project.

(d) Costs of on-the-job training for employees must not exceed 50% of the annual gross payroll costs for up to one year of the new jobs. For purposes of this subsection (d), "gross payroll" means the gross wages, salaries, and benefits for the jobs-in-training in the project.

(e) An agreement shall include a provision that fixes the minimum amount of property taxes or tuition and fee payments that shall be paid for program costs.

(f) To provide funds for the present payment of the costs of a new jobs training program, the board may borrow money and issue and sell debt certificates or bonds payable from a sufficient portion of the future receipts of payments authorized by the agreement. The receipts shall be pledged to the payment of principal of and interest on the debt certificates or bonds.

(g) Certificates or bonds may be sold at public sale or at private sale at par, premium, or discount at the discretion of the board.

(h) Certificates or bonds may be issued with respect to a single project or multiple projects and may contain terms or conditions as the board may provide by resolution authorizing the issuance of the certificates or bonds.

(i) Certificates or bonds issued to refund other certificates or bonds may be sold at public sale or at private sale as provided in this Section, with the proceeds from the sale to be used for the payment of the debt certificates or bonds being refunded. The refunding debt certificates or bonds may be exchanged in payment and discharge of the certificates or bonds being refunded, in installments at different times or an entire issue or series at one time. Refunding certificates or bonds may be sold or exchanged at any time on, before, or after the maturity of the outstanding certificates or bonds to be refunded, may be issued for the purpose of refunding a like, greater, or lesser principal amount of certificates or bonds, and may bear a higher, lower, or equivalent rate of interest than the certificates or bonds being renewed or refunded.

(j) To further secure the payment of the debt certificates or bonds, the board shall, by resolution, provide for the assessment of an annual levy of a standby tax upon all taxable property within the community college district. A copy of the resolution shall be sent to the county clerk of each county in which the community college district is located. The revenues from the standby tax shall be deposited into a special fund and shall be expended only for the payment of principal of and interest on the certificates or bonds issued as provided in this Section, when the receipt of payment for program costs as provided in the agreement is insufficient. If payments are necessary and made from the special fund, the amount of the payments shall be promptly repaid into the special fund from the first available payments received for program costs as provided in the agreement that are not required for the payment of principal of or interest on certificates or bonds due. No reserves may be built up in this fund in anticipation of a projected default. The board shall adjust the annual standby tax levy for each year to reflect the amount of revenues in the special fund and the amount of principal and interest that is due in that year.

(k) Before debt certificates or bonds are issued, the board shall publish once a notice of its intention to issue the certificates or bonds, stating the amount, the purpose, and the project or projects for which the certificates or bonds are to be issued. A person may, within 15 days after the publication of the notice, by action in the circuit court of the county in the area within which the community college district is located, appeal the decision of the board in proposing to issue the certificates or bonds. The action of the board in determining to issue the certificates or bonds is final and conclusive unless the circuit court finds that the board has exceeded its legal authority. An action shall not be brought that questions the legality of the certificates or bonds, the power of the board to issue the certificates or bonds, the effectiveness of any proceedings relating to the authorization of the project, or the authorization and issuance of the certificates or bonds from and after 15 days from the publication of the notice of intention to issue.

(l) The board shall determine if revenues are sufficient to secure the faithful performance of obligations in the agreement.

(m) To test the feasibility of statewide implementation, Community College District No. 503, Community College District No. 532, Community College District No. 529, and Community College District No. 522 shall develop and implement pilot initiatives. The results must be reported to the State Board and the General Assembly to determine the feasibility of statewide implementation.".