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90_HB1785 New Act 20 ILCS 415/8b.7-1 new 30 ILCS 505/9.01-1 new Creates the Welfare to Work Act which places qualified welfare recipients in State jobs or jobs contracted out by the State. Provides that State agencies shall provide the Department of Public Aid, or the Department of Human Services as its successor agency, a job announcement simultaneously with posting its positions or putting a position out for hire by contract, except for those positions subject to recall by laid-off employees, or those otherwise exempt. The Department shall review positions, make eligibility determinations, recruit and screen potential employees, and refer aid recipients to apply for positions listed in job announcements. Employers shall make all employment decisions based on merit, with not less than 5% of the hours worked on a State contract meeting certain specifications being worked by qualified aid recipients, with some exceptions. Employment terms and conditions shall be the same as for any other member of the employer's workforce doing the same or similar work. Provides for reports regarding hiring practices under this Act to be submitted to the General Assembly, the Department of Labor, and the Department of Public Aid, or the Department of Human Services as successor agency to the Department of Public Aid. Amends the Personnel Code and the Illinois Purchasing Act to make changes in conformance with this Act. Effective immediately. LRB9003109SMcw LRB9003109SMcw 1 AN ACT concerning employment. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 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 200,000 12 families, including 500,000 children, rely on cash assistance 13 from the State for all or part of 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. 23 (d) Voluntary efforts by the private sector to employ 24 welfare recipients are laudable and are to be commended, but 25 the State must also take direct responsibility to ensure that 26 welfare recipients are hired in jobs that will allow them to 27 leave the welfare rolls altogether. 28 (e) The State spends billions of dollars each year to 29 improve its economy and infrastructure, and to deliver 30 services to the people of the State, all of which also serves 31 to provide jobs for its citizens. -2- LRB9003109SMcw 1 (f) The State can accomplish the objectives of relieving 2 welfare dependency and ensuring economic self-sufficiency as 3 well as the objectives related to carrying out necessary 4 governmental operations at the same time, and with 5 significant savings in State outlays in cash assistance and 6 supportive service dollars. 7 (g) Poverty and welfare dependency can be alleviated by 8 targeting some of the resources of the State and making jobs 9 available to the welfare poor, specifically by bringing 10 qualified poor persons into the State workforce and into the 11 workforces that are generated through State contracts, 12 without causing the displacement of existing workers. 13 (h) Some State jobs that are newly created or that are 14 open through attrition and some jobs created under State 15 contracts, can be filled by qualified welfare recipients 16 without compromising the integrity of the hiring process, 17 contractor profits, collective bargaining agreements, timely 18 completion of projects, or the health and safety of Illinois 19 workers. 20 (i) To the extent that these jobs are filled by welfare 21 recipients, the State accomplishes 4 important governmental 22 objectives simultaneously: (1) the alleviation of welfare 23 dependency, ensuring of economic self-sufficiency, and 24 lifting of individuals and families out of poverty, (2) the 25 stabilization of families and communities that are hardest 26 hit by persistent poverty and unemployment, (3) the 27 accomplishment of the essential work of the State which must 28 be performed through these jobs, and (4) the reduction of 29 State outlays for cash assistance and services for the poor. 30 (j) The State's immediate, direct and significant 31 interest in relieving welfare dependency and the employment 32 of the poor in jobs generated through the expenditure of 33 State funds constitutes the basis of this Act. -3- LRB9003109SMcw 1 Section 10. Definitions. As used in this Act: 2 "Aid recipient" means: 3 (a) a person financially eligible to receive cash 4 assistance under the Aid to Families with Dependent 5 Children program (or any successor program, including 6 Temporary Assistance to Needy Families), the Transitional 7 Assistance program, or any other cash assistance program 8 administered by the Department of Public Aid (or its 9 successor, the Department of Human Services) financed in 10 whole or in part by the State; 11 (b) a person financially eligible for cash 12 assistance under Article VI of the Public Aid Code, 13 whether receiving assistance or not; an Earnfare 14 participant; and an unemployed person or employed person 15 who is earning less than the poverty level in wages and 16 who is also married to the parent of a child receiving 17 cash assistance or the legally adjudicated father of a 18 child receiving cash assistance; and 19 (c) a person who, within the previous 60 months, has 20 been found eligible and placed for training or employment 21 under the U.S. Department of Housing and Urban 22 Development's Section 3 program, or under any other 23 local, state or federal government program that creates 24 training or hiring preferences or priorities for low 25 income persons, and who was, at the time of entry into 26 such program an "aid recipient" as defined under 27 paragraph (a) or (b) of this definition. 28 "Contracts for personal services" has the same meaning as 29 under Section 14 of the State Finance Act. 30 "Covered contract" means a contract, aid or grant between 31 the State and other entity or entities, whether private, 32 public or not-for-profit, regardless of the purpose of the 33 contract, aid or grant, and means contracts, aid and grants 34 between those entities and their contractors and -4- LRB9003109SMcw 1 subcontractors, but only if the contract or grant is payable 2 by the State in an amount in excess of $250,000 or a 3 subcontract is for an amount in excess of $100,000. 4 Recipients of contracts, aid and grants may not divide 5 contracts or spread out the work to be undertaken for 6 purposes of avoiding having a covered contract. 7 "Covered employee" means a person who is found eligible 8 for employment and hired under this Act. 9 "Covered employer" means an employer in receipt of a 10 "covered contract" payment and thus subject to the 11 requirements of this Act with respect to a "covered 12 contract". 13 "Covered position" means a State-funded position of 14 employment, whether civil service or under contract for 15 personal services, that the Department of Public Aid (or its 16 successor, the Department of Human Services) has not found 17 exempt under Section 25 of this Act. 18 "Qualified aid recipient" means an "aid recipient" who 19 meets each of the qualifications, including education, 20 training, and experience, if any, that have been established 21 by the employer for the position. 22 "State agencies" means all State departments (whether 23 code or otherwise), boards, commissions, authorities, 24 councils, officers, bureaus, units, colleges and 25 universities, and executive, legislative and judicial 26 agencies. 27 Section 15. Disclosure of potential covered positions. 28 Simultaneously with posting its positions or putting a 29 position out for hire by contract, each State agency shall 30 provide the Department of Public Aid (or its successor, the 31 Department of Human Services) with a copy of a job 32 announcement specifying the job description and 33 qualifications of each position that is newly created, is -5- LRB9003109SMcw 1 open, or is otherwise posted for hire or for hire under 2 contract. This requirement does not apply when the position 3 is one that is subject to recall by a laid-off employee or 4 employees. 5 Section 20. Duties of the Department of Public Aid (or 6 its successor agency, the Department of Human Services). The 7 Department shall administer that portion of this Act related 8 to reviewing positions, eligibility determinations, 9 recruitment, screening, and referral of aid recipients to 10 covered positions and positions under covered contracts. 11 Section 25. Review of Positions. 12 (a) The Department shall review each position 13 announcement provided to it by State agencies to determine if 14 there currently are any potentially qualified aid recipients 15 that could be referred to apply for the position. 16 (b) If the Department determines there are no or too few 17 potentially qualified aid recipients to identify readily for 18 referral for the position, the Department shall provide the 19 State agency with a notice exempting that position from the 20 provisions of this Act. The Department may permanently or 21 temporarily exempt a position. 22 (c) If the position is permanently exempted, the State 23 agency need not provide the Department with position 24 announcements for that position in the future. However, the 25 Department may, at any time, revoke its exemption of any 26 position, and from the point of that revocation forward, the 27 State agency again shall provide the Department with 28 announcements of that position. 29 (d) If the position is temporarily exempted, the 30 provisions of this Act do not apply to the position, but the 31 State agency must provide announcements to the Department of 32 future openings of that position. -6- LRB9003109SMcw 1 (e) If the position is not determined by the Department 2 to be exempted, it is a covered position under this Act. 3 Section 30. Eligibility Determinations. Upon the 4 request of a person who believes that he or she is an aid 5 recipient within the meaning of this Act or the request of a 6 State agency or covered employer on behalf of such a person, 7 the Department shall make the determination of whether the 8 person is an aid recipient within the meaning of this Act and 9 shall provide the necessary written proof of aid recipient 10 status to the aid recipient and to any other person, 11 including the party making request on behalf of the aid 12 recipient, if the aid recipient authorizes it in writing. 13 Section 35. Recruitment, screening and referrals to 14 training and for jobs under this Act. 15 (a) In order to facilitate a steady stream of 16 potentially qualified aid recipients into positions available 17 under this Act, the Department shall: 18 (1) work with public, private, and not-for-profit 19 job training programs and certified joint apprenticeship 20 training programs to develop and make use of training 21 programs to facilitate channeling aid recipients into 22 such training programs that correspond with, and will 23 qualify them for, open covered positions and positions 24 under covered contracts; 25 (2) coordinate the recruitment, screening, and 26 referrals for placement of aid recipients in education 27 and training programs that correspond with the job 28 qualifications and requirements of covered positions and 29 positions under covered contracts; 30 (3) coordinate the recruitment, screening, and 31 referrals of potentially qualified aid recipients to 32 employers for open covered positions and positions under -7- LRB9003109SMcw 1 covered contracts; 2 (b) The Department shall maintain an equal balance in 3 its referrals of potentially qualified aid recipients to 4 training programs, to employers for covered positions, and to 5 positions under covered contracts as between those who 6 qualify under paragraph (a) of the definition of "aid 7 recipient" in Section 10 of this Act (or who originally 8 qualified under paragraph (a) but who are now qualified under 9 paragraph (c) of that definition), and those who qualify 10 under paragraph (b) of the definition of "aid recipient" (or 11 who originally qualified under paragraph (b) but who are now 12 qualified under paragraph (c)). 13 (c) Support services, including transportation 14 assistance, uniforms, tools, and supplies, that are otherwise 15 provided to "aid recipients" under paragraph (a) of the 16 definition of "aid recipient" shall be provided, in the same 17 manner and measure, to those "aid recipients" under paragraph 18 (b) of the definition of "aid recipient" in connection with 19 employment related services provided by the Department under 20 this Act. 21 (d) The duties of the Department specified in this 22 Section may be carried out, in whole or in part, under 23 contracts entered into by the Department with units of local 24 government or by not-for-profit community based 25 organizations. 26 Section 40. Hiring without referrals authorized. Any 27 aid recipient who believes he or she is a qualified aid 28 recipient may apply, without a referral by the Department, 29 for jobs under this Act. For any covered position, whether 30 previously determined by the Department to be a covered 31 position or not, if the State agency finds the applicant to 32 be a qualified aid recipient, the applicant shall be provided 33 the preference this Act affords. For any position under a -8- LRB9003109SMcw 1 covered contract, the employer may count, under the 2 requirements imposed under this Act, any aid recipient hired, 3 whether referred by the Department or not. 4 Section 45. Hiring requirements relative to covered 5 positions. 6 (a) Verification that an applicant for a position is an 7 aid recipient shall be made by the State agency by copying 8 for its records the applicant's public aid card or such other 9 proof of aid recipient status as has been provided to the aid 10 recipient or employer by the Department. 11 (b) The State agency with the open position shall make 12 the determination of whether an aid recipient who applies 13 for the position is qualified for hire. 14 (c) The State agency shall provide qualified aid 15 recipients with a hiring preference in accordance with the 16 requirements for civil service positions under Section 8b.7-1 17 of the Personnel Code, and for personal service contract 18 positions, under Section 9.01-1 of the Illinois Purchasing 19 Act. 20 (d) The minimum qualifications for hire, wages, days per 21 week, hours per day, shifts of employment, and terms and 22 conditions of employment of a qualified aid recipient who is 23 hired under this Act shall be the same as for other members 24 of the employer's workforce doing the same or similar work 25 and shall be subject to the same State and federal laws. 26 (e) Nothing in this Act prevents a State agency from 27 counting a person hired under this Act, who is also a 28 protected female or minority, toward that employer's 29 affirmative action obligations that may otherwise be imposed. 30 (f) Nothing in this Act diminishes the full authority 31 and prerogative of State agencies to determine independently 32 an aid recipient's qualifications and to make independently 33 all hiring decisions, based on merit, under this Act. -9- LRB9003109SMcw 1 Section 50. Contract requirements. Each covered 2 contract shall contain provisions incorporating all of the 3 following requirements: 4 (a) Not less than 5% of the hours worked under positions 5 that are paid under a covered contract shall be worked by 6 qualified aid recipients. 7 (b) In order to facilitate compliance with this Act, a 8 covered employer may notify the Department of Public Aid (or 9 its successor agency, the Department of Human Services) of 10 jobs that are opening under the covered contract for which 11 aid recipients may be qualified in order to receive referrals 12 of aid recipients by the Department. 13 (c) The covered employer shall verify that an applicant 14 for a position is an aid recipient, and shall maintain a 15 record of the aid recipient's status by copying for its 16 records the applicant's public aid card or such other proof 17 of aid recipient status as has been provided to the recipient 18 or employer by the Department of Public Aid (or its successor 19 agency, the Department of Human Services). 20 (d) The covered employer shall make the determination of 21 whether an aid recipient who applies for the position is a 22 qualified aid recipient. Nothing in this Act implies a 23 diminution of the full authority and prerogative of covered 24 employers to determine independently an aid recipient's 25 qualifications and to make independently all hiring decisions 26 under this Act. No State agency may require an employer to 27 hire an aid recipient who is not qualified for the position 28 for which the aid recipient is applying. 29 (e) The number of covered employees in a workforce shall 30 be calculated as follows: the number of total hours worked 31 under the contract are the "worker hours." The number of 32 hours that covered employees have worked under the contract 33 are the "covered employee hours." The "covered employee 34 hours" shall be divided by the "worker hours" and the product -10- LRB9003109SMcw 1 shall be no less than 0.05. If the covered contract 2 includes positions that are otherwise reported to the State 3 and federal government only by daily or weekly full time 4 equivalency, then those positions shall be calculated by 5 dividing the full-time equivalent of the covered employees in 6 those positions by the total full-time equivalent for those 7 positions. An employer may sponsor a covered worker in an 8 apprenticeship training program or other education or 9 training program, in which case the employer may count the 10 number of hours or days in off-site training or classroom 11 instruction toward the requirements of this Section. 12 (f) A covered employer who is unable to hire at least 5% 13 of its workforce from qualified aid recipients under a 14 covered contract shall certify to the Department of Labor and 15 the Department of Public Aid (or its successor agency, the 16 Department of Human Services) the circumstances which made 17 meeting the requirements of this Act impossible. Permitted 18 circumstances may include the high percentage of 19 professional, high skilled, or journey level workers needed 20 under the contract, the need to recall out of work employees 21 who are receiving unemployment compensation through the 22 covered employer, or other circumstances outside of the 23 control of the covered employer. If a covered employer has 24 not met the percentage hire requirements under this Act, and 25 did not notify the Department of jobs that have become 26 available under its covered contract, and jobs existed under 27 that contract for potentially qualified aid recipients, the 28 covered employer shall be deemed to have been able to hire 29 the requisite percentage of aid recipients under this Act, 30 and failed to do so. 31 (g) At the request of the covered employer to the 32 Department of Public Aid (or its successor agency, the 33 Department of Human Services), the requirements of hiring 34 covered employees under this Section may be waived, in -11- LRB9003109SMcw 1 advance, by the Department, in whole or in part, in 2 accordance with rules established by the Department, if 3 enough qualified aid recipients are not referred or cannot be 4 hired due to circumstances set forth in subsection (5). To 5 receive this waiver, the covered employer must request the 6 waiver before hiring under the covered contract, and must 7 include in its request for the waiver, job descriptions for 8 each of the positions that are subject to hire under the 9 covered contract, and the number of people estimated to be 10 hired for each such job. 11 (h) The minimum qualifications for hire, and the wages, 12 days per week, hours per day, shifts of employment, and terms 13 and conditions of employment, of a covered employee shall be 14 the same as for other members of the employer's workforce 15 doing the same or similar work and shall be subject to the 16 same State and federal laws. 17 (i) Covered employees shall abide by all health and 18 safety rules and laws imposed on a covered employer's 19 workforce. 20 (j) This Act does not require covered employers to 21 provide any additional or separate training or apprenticeship 22 programs for aid recipients that the employer would not 23 otherwise provide to other workers in the same or similar 24 jobs at the same or similar level of experience. 25 (k) Nothing in this Act prevents a covered employer from 26 counting a covered employee, who is also a protected female 27 or minority, toward the employer's affirmative action 28 obligations that may otherwise be imposed. 29 Section 55. Duties of the Department of Labor. The 30 Department of Labor shall ensure that covered employers 31 comply with the provisions of this Act and shall work with 32 the Department of Public Aid (or its successor agency, the 33 Department of Human Services) and the Social Services -12- LRB9003109SMcw 1 Advisory Council in promulgating rules for implementation and 2 governance and to effectuate the purposes of this Act, 3 including contractor compliance. In promulgating compliance 4 rules, the Illinois Department of Labor shall create 5 provisions that assure that there will be good faith attempts 6 at negotiation and conciliation, and the affording of the 7 protections of due process of law before any sanctions 8 against a contractor are imposed. 9 Section 60. Compliance and Reporting. 10 (a) The Department of Public Aid (or its successor 11 agency, the Department of Human Services), the Department of 12 Labor, and the General Assembly are jointly empowered to 13 ensure and monitor covered employer and State agency 14 compliance with the provisions of this Act. 15 (b) Each State agency shall annually prepare a report to 16 the Department Public Aid (or its successor agency, the 17 Department of Human Services) and the General Assembly 18 demonstrating its hiring under this Act. The report shall be 19 submitted to the Department and the minority and majority 20 leaders of the House of Representatives and the Senate no 21 later than January 31 of each year. The report shall set 22 forth, for the previous calendar year, the total number of 23 positions filled by the State agency, the number of positions 24 not exempted and thus found to be covered positions by the 25 Department, and the number of positions filled by aid 26 recipients. 27 (c) The Department of Public Aid (or its successor 28 agency, the Department of Human Services) shall collate the 29 reports and shall submit a report to the General Assembly no 30 later than the first day of March of each year, with the 31 totals, broken down by State agency in each category, and the 32 grand totals for the State in each of the three categories. 33 (d) Both the original reports and the summary Department -13- LRB9003109SMcw 1 report shall be subject to public inspection, review and 2 copying. 3 (e) Each covered contractor shall annually prepare a 4 single duplicated report that documents its hiring practices 5 under this Act that shall be submitted both to the Department 6 of Labor and the Department of Public Aid (or its successor 7 agency, the Department of Human Services). The report shall 8 be submitted no later than January 31 of each year. The 9 report shall set forth, for the previous calendar year, for 10 each covered contract, the calculations of total worker hours 11 and covered employee hours and the percentage of covered 12 employee hours, and such other data and information as may be 13 required by rule. 14 (f) The Department of Labor shall collate the contractor 15 reports and shall submit a report to the minority and 16 majority leaders of both chambers of the General Assembly no 17 later than the first day of March of each year, with the 18 total worker hours, the total covered employee hours, and the 19 percentage of hours of work by covered employees. The 20 Department of Public Aid shall set forth the number of aid 21 recipients who have closed their aid cases or had their aid 22 reduced as a result of positions obtained under this Act, and 23 shall set forth such other data and cost savings as it deems 24 appropriate. 25 (g) The Department's summary reports shall be subject to 26 public inspection, review and copying. 27 Section 905. The Personnel Code is amended by adding 28 Section 8b.7-1. as follows: 29 (20 ILCS 415/8b.7-1 new) 30 Sec. 8b.7-1. Qualified aid recipient preference. For the 31 granting of preferences to "qualified aid recipients" within 32 the meaning of the Welfare to Work Act. The preference shall -14- LRB9003109SMcw 1 be given only after the application and provision of veterans 2 preferences under Section 8b.7, unless the applicant is 3 subject to preferences under both veterans and qualified aid 4 recipient designations, in which case those persons shall 5 take precedence. When qualified aid recipients are on 6 eligible lists on the basis of category rankings such as 7 superior, excellent, well-qualified, and qualified, they 8 shall be preferred over non-veterans who are not qualified 9 aid recipients in the same category. Notwithstanding Section 10 8b.5, when a list is prepared by numerical rankings, and a 11 qualified aid recipient is one of the top 3 candidates on the 12 basis of the numerical ranking, the qualified aid recipient 13 shall be appointed, unless one or two of the other candidates 14 is a qualified veteran. 15 Section 910. The Illinois Purchasing Act is amended by 16 adding Section 9.01-1 as follows: 17 (30 ILCS 505/9.01-1 new) 18 Sec. 9.01-1. Contracts for personal services; qualified 19 aid recipients. All contracts for personal services, as 20 defined under Section 14 of the State Finance Act, shall be 21 subject to the preference of "qualified aid recipients" 22 within the meaning of the Welfare to Work Act, over others 23 who are similarly qualified. 24 Section 999. Effective date. This Act takes effect upon 25 becoming law.