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90_SB1220
New Act
30 ILCS 105/5.449 new
35 ILCS 5/211 new
110 ILCS 805/2-16.04 new
Creates the Illinois Industrial New Jobs Training Law and
the Illinois Jobs Training Law and amends the State Finance
Act, the Illinois Income Tax Act, and the Public Community
College Act. Provides for the establishment of programs by
community colleges for the creation of jobs by providing
education and training of workers for new jobs for (i) new or
expanding industry under agreements between employers and
community colleges and (ii) new or expanding businesses or
for the retraining of workers of existing business under
agreements between businesses and community colleges.
Provides for: income tax credit for participating businesses
under specified circumstances, elements of programs, funding
of programs, the responsibilities of various State entities,
and other matters.
LRB9007586KDks
LRB9007586KDks
1 AN ACT in relation to job training.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 ARTICLE 5
5 Section 5-1. Short title. This Article may be cited as
6 the Illinois Industrial New Jobs Training Law.
7 Section 5-10. Definitions. As used in this Article,
8 unless the context otherwise requires:
9 "Agreement" is the agreement between an employer and a
10 community college concerning a project.
11 "Board" means the Illinois Community College Board.
12 "Board of trustees" means the board of trustees of a
13 community college.
14 "Community college" means a community college established
15 under the Public Community College Act.
16 "Date of commencement of the project" means the date of
17 the agreement.
18 "Employee" means the person employed in a new job.
19 "Employer" means the person providing new jobs within the
20 territory of the community college district served by a
21 community college and entering into an agreement.
22 "Industry" means a business engaged in interstate or
23 intrastate commerce for the purpose of manufacturing,
24 processing, or assembling products, conducting research and
25 development, or providing services in interstate commerce,
26 but excludes retail, health, or professional services.
27 "Industry" does not include a business which closes or
28 substantially reduces its operation in one area of the State
29 of Illinois and relocates substantially the same operation
30 in another area of the State of Illinois. This provision does
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1 not prohibit a business from expanding its operations in
2 another area of the State provided that existing operations
3 of a similar nature are not closed or substantially reduced.
4 "New job" means a job in a new or expanding industry but
5 does not include jobs of recalled workers, or replacement
6 jobs or other jobs that formerly existed in the industry in
7 the State of Illinois.
8 "New jobs tax credit" means the credit as provided in
9 Section 5-20.
10 "New jobs training program" or "program" means the
11 project or projects established by a community college for
12 the creation of jobs by providing education and training of
13 workers for new jobs for new or expanding industry within
14 the territory of the community college district served by the
15 community college.
16 "Notes" means industrial new jobs training notes issued
17 pursuant to Section 5-25.
18 "Program costs" means all necessary and incidental costs
19 of providing program services.
20 "Program services" includes but is not limited to the
21 following:
22 (a) New jobs training and customized skill training.
23 (b) Adult basic education and job-related
24 instruction.
25 (c) Vocational and skill-assessment services and
26 testing and pre-employment training programs.
27 (d) Training facilities, equipment, materials, and
28 supplies.
29 (e) On-the-job training, including quality
30 improvement training.
31 (f) Administrative expenses for the new jobs
32 training program.
33 (g) Subcontracted services with public or private
34 colleges or universities or other federal, State, or
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1 local agencies.
2 (h) Contracted or professional services.
3 (i) Issuance of notes.
4 "Project" means a training arrangement which is the
5 subject of an agreement entered into between the community
6 college and an employer to provide program services.
7 Section 5-15. Agreement.
8 (1) Agreements entered into by a community college and
9 an employer shall be subject to the rules of the Board. A
10 community college may enter into an agreement to establish a
11 project. If an agreement is entered into, the community
12 college shall immediately notify the Board. An agreement
13 shall provide for program costs, including deferred costs,
14 which may be paid from one or a combination of the following
15 sources:
16 (a) New jobs tax credit to be received or derived
17 from new employment resulting from the project.
18 (b) Tuition, student fees, or special charges fixed
19 by the board of trustees to defray program costs in
20 whole or in part.
21 (c) Guarantee of payments to be received under
22 subdivision (a) or (b).
23 (2) Payment of program costs shall not be deferred for a
24 period longer than 10 years from the date of commencement of
25 the project.
26 (3) Costs of on-the-job training for employees shall not
27 exceed 50% of the annual gross payroll costs for up to one
28 year of the new jobs. For purposes of this subsection,
29 "gross payroll" may be the gross wages, salaries, and
30 benefits for the jobs in training in the project.
31 (4) An agreement shall include a provision which fixes
32 the minimum amount of new jobs tax credit or tuition and fee
33 payments which shall be paid for program costs.
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1 (5) Any payments required to be made by an employer are a
2 lien upon the employer's business property until paid and
3 have equal precedence with ordinary taxes and shall not be
4 divested by a judicial sale. Property subject to the lien
5 may be sold for sums due and delinquent at a tax sale, with
6 the same forfeitures, penalties, and consequences as for the
7 nonpayment of ordinary taxes. The purchaser at tax sale
8 obtains the property subject to the remaining payments.
9 (6) An agreement may include financing for a project with
10 funds provided under this Law and any supplemental funds
11 provided by any other government agency, financial
12 institution, or other entity.
13 (7) An agreement may include the right of the community
14 college or the Board to request from an employer the
15 following information prior to the approval of an agreement:
16 (a) How the employer is legally organized, whether
17 as a corporation, limited liability company, partnership,
18 or other type of legal entity under the laws of this
19 State, any other state, or a foreign nation;
20 (b) a listing of the officers and principal owners
21 of the employer;
22 (c) an audited financial statement of the employer;
23 or
24 (d) any other information that the community college
25 or the Board may require consistent with the purposes of
26 this Law.
27 (8) Upon completion of an agreement by a community
28 college and an employer, the community college shall submit
29 the agreement to the Board for review. The Board may reject
30 the agreement because the agreement does not meet the
31 standards required by this Law or because the agreement is
32 not in the format required by the Board. The Board may
33 modify the agreement to meet the standards of this Law if the
34 modification is approved by the community college and the
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1 employer.
2 (9) Upon the approval of an agreement by the Board, the
3 Board shall notify the Department of Revenue to implement
4 the new jobs tax credit as provided in Section 211 of the
5 Illinois Income Tax Act.
6 Section 5-20. New jobs tax credit. If an agreement
7 provides that all or part of program costs are to be met by
8 receipt of new jobs tax credit, it shall be done in
9 accordance with Section 211 of the Illinois Income Tax Act.
10 The employer shall remit the amount of credit received
11 under Section 211 of the Illinois Income Tax Act to the
12 applicable community college. The community college shall
13 deposit the money into a special fund of the community
14 college which shall be used to pay the principal and
15 interest of the notes issued by the Board on behalf of the
16 community college to finance or refinance, in whole or in
17 part, the project. The fund shall be established pursuant
18 to rule of the Board. When the principal and interest on
19 the notes have been paid, the employer credits shall cease
20 and any money received after the notes have been paid shall
21 be remitted to the State Treasurer to be deposited in the
22 General Revenue Fund.
23 The new jobs tax credit and the special fund into which
24 it is paid may be irrevocably pledged by a community college
25 for the payment of the principal of and interest on the
26 notes issued by the Board on behalf of a community college
27 to finance or refinance, in whole or in part, the project.
28 The employer shall certify to the Department of Revenue
29 that the credit is in accordance with an agreement and shall
30 provide other information the Department may require.
31 A community college shall certify to the Board the
32 amount of new jobs tax credit an employer has remitted to the
33 special fund and other information the Board may require.
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1 The Board shall certify to the Department of Revenue, in a
2 form specified by the Department, the amount of new jobs tax
3 credits employers have remitted to special funds held for
4 this purpose by community colleges and shall provide other
5 information as the Department may require.
6 Section 5-23. Worker protection. No agreement initiated
7 under this Law shall in any way diminish or deny the rights
8 of employees subject to an agreement to avail themselves of
9 the Workers' Compensation Act, the Workers' Occupational
10 Diseases Act, the Unemployment Insurance Act, the Minimum
11 Wage Law or any other law of this State or the federal
12 government.
13 Section 5-25. Notes. A community college may issue
14 notes payable from all or any portion of the future receipts
15 of payments authorized by an agreement, subject to the
16 following provisions:
17 (a) The notes shall be issued to provide funds for
18 the payment of the costs of new jobs training programs.
19 (b) The notes shall have a term not in excess of
20 the lesser of 20 years or the remaining term of the
21 agreement authorizing the future payments.
22 (c) The notes shall bear interest at a rate not to
23 exceed that permitted in the Bond Authorization Act.
24 (d) Notes may be issued with respect to a single
25 project or multiple projects.
26 (e) The notes shall not be regarded as indebtedness
27 of the community college or the State of Illinois for the
28 purpose of any limitation imposed by law.
29 (f) Any note shall be valid whether or not an
30 appropriation with respect thereto is first included in
31 any annual or supplemental budget adopted by the
32 community college.
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1 The authority to issue notes is not a limitation, by
2 implication or otherwise, on any other borrowing powers of
3 community colleges.
4 Community college boards may contact with a public agency
5 or a private contractor for the issuance and servicing of the
6 notes authorized by this Section. Collectively, the
7 community college boards may have notes outstanding for the
8 purpose of this Law in an aggregate amount not to exceed
9 $4,000,000 at any time. For any issuance of notes, the local
10 community college board may utilize not more than 15% of the
11 amount of each issuance for the cost of administering this
12 Law.
13 Section 5-27. Illinois Industrial New Jobs Training Law
14 Fund. Any income or revenue realized from the issuance of
15 notes as authorized by Section 5-25 shall be deposited into
16 the Illinois Industrial New Jobs Training Law Fund, which is
17 hereby created. The Fund shall be administered by the Board
18 and shall not be subject to appropriation. The Board shall
19 distribute to community colleges the funds necessary to
20 implement an agreement as provided in Section 5-15 of this
21 Law. Any accrued interest on moneys in the Fund shall be
22 held in a special reserve account of the Fund to be used for
23 any defaults or deficiencies that may occur or may be used
24 to supplement agreements as may approved by the Board.
25 Section 5-30. Coordination. The Illinois Community
26 College Board shall coordinate this Law. The Board shall
27 adopt rules pursuant to the Illinois Administrative
28 Procedure Act which shall be used in developing projects with
29 new and expanding industrial new jobs training proposals by
30 community colleges. The Board shall report annually to the
31 Governor and the General Assembly on the activities of the
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1 Board and community colleges under this Law.
2 ARTICLE 10
3 Section 10-1. Short title. This Article may be cited as
4 the Illinois Jobs Training Law.
5 Section 10-5. Definitions. As used in this Article,
6 unless the context otherwise requires:
7 "Agreement" is the agreement between a business and a
8 community college concerning a project.
9 "Board" means the Illinois Community College Board.
10 "Board of trustees" means the board of trustees of a
11 community college.
12 "Community college" means a community college established
13 under the Public Community College Act.
14 "Date of commencement of the project" means the date of
15 the preliminary agreement.
16 "Eligible business" or "business" means a business
17 engaged in interstate or intrastate commerce for the purpose
18 of manufacturing, processing, or assembling products,
19 conducting research and development, or providing services
20 in interstate commerce, but excludes retail, health, or
21 professional services and which meets the other criteria
22 established by the Illinois Community College Board.
23 "Eligible business" does not include a business which closes
24 or substantially reduces its operation in one area of the
25 State of Illinois and relocates substantially the same
26 operation in another area of the State of Illinois. This
27 provision does not prohibit a business from expanding its
28 operations in another area of the State provided that
29 existing operations of a similar nature are not closed or
30 substantially reduced. "Business" does not include a
31 business whose training costs can be economically funded
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1 under the Illinois Industrial New Jobs Training Law.
2 "Eligible business" includes the following:
3 (a) Retraining business which is currently
4 conducting retooling of a production facility.
5 (b) Business which meets other criteria established
6 by the Illinois Community College Board relating to
7 business size.
8 "Employee" means the person employed in a new job by a
9 business or a person currently employed by a business who is
10 to be retrained.
11 "Jobs training program" or "program" means the project or
12 projects established by a community college for the creation
13 of jobs by providing education and training of workers for
14 new jobs for a new or expanding business or for the
15 retraining of workers of an existing business.
16 "New job" means a job in a new or expanding business but
17 does not include jobs of recalled workers, or replacement
18 jobs or other jobs that formerly existed in the business in
19 the State of Illinois.
20 "New jobs tax credit" means the credit as provided in
21 Section 10-15.
22 "Participating business" means the business providing new
23 jobs or retraining jobs and which enters into an agreement
24 with the community college.
25 "Program costs" means all necessary and incidental costs
26 of providing program services.
27 "Program services" includes but is not limited to the
28 following:
29 (a) New jobs training and customized skill training.
30 (b) Retraining of existing workers.
31 (c) Adult basic education and job-related
32 instruction.
33 (d) Vocational and skill-assessment services and
34 testing and pre-employment training programs.
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1 (e) Training facilities, equipment, materials, and
2 supplies.
3 (f) On-the-job training, including quality
4 improvement training.
5 (g) Administrative expenses for the jobs training
6 program.
7 (h) Subcontracted services with institutions
8 governed by the State board of regents, private colleges
9 or universities, or other federal, State, or local
10 agencies.
11 (i) Contracted or professional services.
12 "Project" means a training arrangement which is the
13 subject of an agreement entered into between the community
14 college and a business to provide program services.
15 "Retooling" means upgrading, modernizing, or expanding a
16 business to increase the production or efficiency of
17 business operations including, but not limited to, replacing
18 equipment, introducing new manufacturing processes, or
19 changing managerial procedures.
20 "Retraining job" means a job with an existing business
21 that is substantially at risk of becoming displaced within
22 the following 10 years due to the retooling of the business.
23 Section 10-10. Agreement.
24 (1) Agreements entered into by a community college and a
25 business shall be subject to the rules of the Board. A
26 community college may enter into an agreement to establish a
27 project. If an agreement is entered into, the community
28 college shall immediately notify the Board. An agreement
29 shall provide for program costs, including deferred costs,
30 for a project creating new jobs by providing education and
31 training of workers for a new or expanding business which
32 may be paid from one or a combination of the following
33 sources:
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1 (a) New jobs tax credit to be received or derived
2 from new employment resulting from the project.
3 (b) Tuition, student fees, or special charges fixed
4 by the board of trustees to defray program costs in whole
5 or in part.
6 (c) Guarantee of payments to be received under
7 subdivision (a) or (b).
8 (2) Program costs, including deferred costs, for a
9 project retraining workers of existing businesses, may be
10 paid from one or a combination of the following sources:
11 (a) Loan repayments provided by the business; or
12 (b) Tuition, student fees, or special charges fixed
13 by the board of trustees to defray program costs in
14 whole or in part.
15 (3) Payment of program costs shall not be deferred for a
16 period longer than 10 years from the date of commencement of
17 the project.
18 (4) Costs of on-the-job training shall not apply to
19 retraining projects. Costs of on-the-job training for new
20 jobs training projects shall not exceed 50% of the annual
21 gross payroll costs for up to one year of the new jobs. For
22 purposes of this subsection, "gross payroll" can be the gross
23 wages, salaries, and benefits for the jobs in training in
24 the project.
25 (5) If applicable, an agreement shall include a provision
26 which fixes the minimum amount of new jobs tax credit or
27 tuition and fee payments which shall be paid for program
28 costs.
29 (6) Any payments required to be made by a business are a
30 lien upon the business' property until paid and have equal
31 precedence with ordinary taxes and shall not be divested by
32 a judicial sale. Property subject to the lien may be sold
33 for sums due and delinquent at a tax sale, with the same
34 forfeitures, penalties, and consequences as for the
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1 nonpayment of ordinary taxes. The purchaser at tax sale
2 obtains the property subject to the remaining payments.
3 (7) An agreement shall contain provisions relating to the
4 type of financial assistance being provided which may be in
5 the form of grants, loans, forgivable loans, or a
6 combination of grants and loans according to guidelines
7 adopted by the Board. However, the amount of financial
8 assistance provided for a project under this Article shall
9 not exceed $50,000. Financial assistance for a new jobs
10 project shall be limited to loans. Financial assistance for
11 a retraining project shall not include a grant or forgivable
12 loan unless the result of the retooling creates, at the
13 business production site subject to the retooling, a net
14 increase in the number of employment positions, a net
15 increase in the quality of the employment positions held by
16 participating workers, or a net increase in wages paid to
17 participating workers. The financial assistance provided to a
18 participating business must be based on the actual cost of
19 training or retraining participating workers under the
20 project.
21 (8) Before a community college and a business enter into
22 an agreement to establish a project, the community college
23 shall consult with the local Job Service office of the
24 Department of Employment Security to determine if there
25 already exists in the community a skilled or experienced
26 group of unemployed workers, as a result of a plant closing
27 or reduction in force, sufficiently large to supply the
28 needs of the new or expanding business. If such a supply of
29 workers exists, the community college shall enter into the
30 agreement only if the business agrees to give preference in
31 hiring for new jobs to those workers over any other workers
32 who do not have greater qualifications.
33 (9) An agreement may include financing for a project with
34 funds provided under this Law and any supplemental funds
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1 provided by any other government agency, financial
2 institution, or other entity.
3 (10) An agreement may include the right of the community
4 college or the Board to request from a business the following
5 information prior to the approval of an agreement:
6 (a) How the business is legally organized, whether
7 as a corporation, limited liability company, partnership,
8 or other type of legal entity under the laws of this
9 State, any other state, or a foreign nation;
10 (b) a listing of the officers and principal owners
11 of the business;
12 (c) an audited financial statement of the business;
13 or
14 (d) any other information that the community college
15 or the Board may require consistent with the purposes of
16 this Law.
17 (11) Upon completion of an agreement by a community
18 college and a business, the community college shall submit
19 the agreement to the Board for review. The Board may reject
20 the agreement because the agreement does not meet the
21 standards required by this Law or because the agreement is
22 not in the format required by the Board. The Board may
23 modify the agreement to meet the standards of this Law if the
24 modification is approved by the community college and the
25 business.
26 (12) Upon the approval of an agreement by the Board, the
27 Board shall notify the Department of Revenue to implement
28 the new jobs tax credit as provided in Section 211 of the
29 Illinois Income Tax Act.
30 Section 10-15. New jobs tax credit. If an agreement
31 provides that all or part of program costs are to be met by
32 receipt of new jobs tax credit, it shall be done in
33 accordance with Section 211 of the Illinois Income Tax Act.
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1 The business shall remit the amount of the credit to the
2 community college. To the extent this credit represents
3 repayments of an advance made under Section 10-20 plus
4 interest, it shall be paid to the State Treasurer. When the
5 repayments of an advance plus interest have been paid, the
6 business credits shall cease and any money received after
7 this shall be remitted to the State Treasurer to be deposited
8 in the General Revenue Fund.
9 The business shall certify to the Department of Revenue
10 that the credit is in accordance with an agreement and shall
11 provide other information the Department may require.
12 A community college shall certify to the Board the amount
13 of new jobs tax credit a business has remitted to the
14 community college and other information the Board may
15 require. The Board shall certify to the Department of
16 Revenue, in a form specified by the Department, the amount of
17 new jobs tax credits employers have remitted to community
18 colleges and shall provide other information as the
19 Department may require.
20 Section 10-20. Job Training Project Fund.
21 (1) The Job Training Project Fund is established as a
22 special fund in the State treasury. The Fund shall consist
23 of moneys appropriated for the purposes of this Article plus
24 the interest and principal from repayment of advances made to
25 businesses for program costs, and interest earned from moneys
26 in the Job Training Project Fund.
27 (2) To provide funds for the present payment of the costs
28 of a training program by the business, the community college
29 may provide to the business an advance of the moneys to be
30 used to pay for the program costs as provided in the
31 agreement. To receive the funds for this advance from the
32 Job Training Project Fund established in subsection (1), the
33 community college shall submit an application to the
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1 Illinois Community College Board. The amount of the advance
2 shall not exceed $50,000 for any project. The advance, if
3 the agreement provides it as a loan, shall be repaid with
4 interest from the sources provided in the agreement. The rate
5 of interest to be charged for advances made in a calendar
6 month is equal to one-half of the average rate of interest
7 on tax exempt notes issued by the Illinois Community College
8 Board pursuant to the Illinois Industrial New Jobs Training
9 Law for the previous 12 months. The rate shall be computed by
10 the Board.
11 Section 10-25. Coordination. The Illinois Community
12 College Board shall coordinate the jobs training program
13 established by this Law. The Board shall consult with the
14 Department of Commerce and Community Affairs, the Department
15 of Revenue, and the Department of Employment Security in
16 administering this Law and in adopting rules under the
17 Illinois Administrative Procedure Act to implement this Law.
18 The rules shall be used by the Board and by community
19 colleges to develop projects with new and expanding
20 businesses, new jobs training proposals, or existing business
21 retraining proposals. The Board shall establish by rule the
22 criteria for determining what constitutes an eligible
23 business. A project shall not be funded under this Law
24 unless approved by the Board. The Board shall establish
25 rules for the criteria used for approval of projects. The
26 Board shall prepare an annual report for the Governor and the
27 General Assembly on the activities and anticipated needs
28 under this Law.
29 Section 10-30. Allocation.
30 (1) For each fiscal year, the Board shall make funds
31 available to the community colleges. The Board shall
32 allocate by formula at the beginning of the fiscal year from
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1 the moneys in the Fund an amount for each community college
2 district to be used to provide the financial assistance for
3 proposals of businesses located within the territory of the
4 community college district whose applications have been
5 approved by the Board. The financial assistance shall be
6 provided by the Board from the amount set aside for the
7 community college district. If any portion of the moneys set
8 aside for a community college district have not been used or
9 committed by March 1 of the fiscal year, that portion is
10 available for use by the Board to provide financial
11 assistance to businesses located in other community college
12 districts. The Board shall adopt by rule a formula for this
13 set-aside based on population and per capita income of the
14 community college district. The formula shall give weight to
15 high unemployment, low and moderate income levels and other
16 factors necessary to meet the objectives of this Law.
17 (2) Moneys available to the community colleges for the
18 program may be used to provide grants to train for new jobs
19 or retain existing jobs when the project costs are less than
20 $5,000. If the project is for a consortium of businesses,
21 project costs shall not exceed an average of $5,000 per
22 business.
23 ARTICLE 15
24 Section 15-10. The State Finance Act is amended by
25 adding Section 5.449 as follows:
26 (30 ILCS 105/5.449 new)
27 Sec. 5.449. The Job Training Project Fund.
28 Section 15-15. The Illinois Income Tax Act is amended
29 by adding Section 211 as follows:
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1 (35 ILCS 5/211 new)
2 Sec. 211. New jobs tax credit. Beginning with taxable
3 years beginning on or after January 1, 1999, every taxpayer
4 shall be allowed a credit against the taxes imposed by
5 Section 201 in an amount equal to 1.5% of the gross wages
6 paid by the taxpayer to each employee of the taxpayer
7 participating in a project established under the Illinois
8 Industrial New Jobs Training Law and the Illinois Jobs
9 Training Law. This credit shall not reduce the taxpayer's tax
10 liability to less than zero. This Section is exempt from the
11 provisions of Section 250.
12 Section 15-20. The Public Community College Act is
13 amended by adding Section 2-16.04 as follows:
14 (110 ILCS 805/2-16.04 new)
15 Sec. 2-16.04. Illinois Industrial New Jobs Training Law;
16 Illinois Jobs Training Law. The State Board shall exercise
17 the powers and perform the duties assigned to it in the
18 Illinois Industrial New Jobs Training Law and the Illinois
19 Jobs Training Law.