State of Illinois
91st General Assembly
Legislation

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91_SB0025

 
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 1        AN ACT concerning job training.

 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    Illinois Industrial New Jobs Training Act.

 6        Section 5.  Definitions.  As used in this Act, unless the
 7    context otherwise requires:
 8        "Agreement"  is  the  agreement  between  an employer, an
 9    educational intermediary, and the Department of Commerce  and
10    Community Affairs.
11        "Community  College"  is  a community college established
12    under the Public Community College Act.
13        "Department" is the Department of Commerce and  Community
14    Affairs.
15        "Educational  intermediary"  means  a  community  college
16    established under the Public Community College Act, a private
17    business  and  vocational school certified by the State Board
18    of  Education  as  provided  by  the  Private  Business   and
19    Vocational  Schools Act, the University of Illinois, Southern
20    Illinois  University,  Chicago  State   University,   Eastern
21    Illinois  University,  Governors  State  University, Illinois
22    State University, Northeastern Illinois University,  Northern
23    Illinois  University,  Western  Illinois  University, and any
24    other private institution of  higher  education  that  offers
25    degrees  and instruction above the high school level that has
26    a campus and related facilities located within the State.
27        "Employee" means a person employed in a new job.
28        "Employer" is the person providing new  jobs  within  the
29    State  and  who  has  entered  into  an  agreement  with  the
30    Department.
31        "Industry"  means  a  business  engaged  in interstate or
 
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 1    intrastate  commerce  for  the  purpose   of   manufacturing,
 2    processing,  or  assembling products, conducting research and
 3    development, or providing services  in  interstate  commerce,
 4    but   excludes  retail,  health,  or  professional  services.
 5    "Industry"  does  not  include  a  business  that  closes  or
 6    substantially reduces its operation in one area of the  State
 7    and  relocates  substantially  the  same operation in another
 8    area of the  State.   This  provision  does  not  prohibit  a
 9    business from expanding its operations in another area of the
10    State  provided  that existing operations of a similar nature
11    are not closed or substantially reduced in  another  area  of
12    the State.
13        "New  job" means a job in a new or expanding industry but
14    does not include jobs of recalled workers or replacement jobs
15    or other jobs that formerly existed in  the  industry  within
16    the State of Illinois.
17        "New  jobs  training  program"  or  "program"  means  the
18    project   or   projects   established   by   an   educational
19    intermediary  for the creation of jobs by providing education
20    and training of workers for new jobs  for  new  or  expanding
21    industry within the State.
22        "Program  costs"  means  all the necessary and incidental
23    costs of providing program services.
24        "Program services" includes, but is not  limited  to  the
25    following:
26             (a)  New   jobs   training   and   customized  skill
27        training;
28             (b)  Adult   basic   education   and   job   related
29        instruction;
30             (c)  Vocational and  skill-assessment  services  and
31        testing and pre-employment training programs;
32             (d)  Training  facilities,  equipment, materials and
33        supplies;
34             (e)  On-the-job    training,    including    quality
 
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 1        improvement training;
 2             (f)  Administrative  expenses  for  the   new   jobs
 3        training;
 4             (g)  Subcontracted  services  with other educational
 5        intermediaries, other federal, State or  local  agencies;
 6        and
 7             (h)  Contracted or professional services.
 8        "Project"  means  a  training  arrangement  that  is  the
 9    subject  of an agreement entered into between the Department,
10    an educational  intermediary,  and  an  employer  to  provide
11    program services.

12        Section  10.   Supplemental  support.   Any funding for a
13    project under this Act  shall  be  supplemental  to  any  job
14    training  grants  or  programs  offered  by the Department to
15    employers as provided under the Civil Administrative Code  of
16    Illinois  or  any  other  Act the Department is authorized to
17    administer for job training.

18        Section 15.  Priority of educational intermediaries.  For
19    projects that are funded under this Act, the Department shall
20    give priority to those projects involving community  colleges
21    established  under  the  Public  Community  College Act.  The
22    priority provided under this Section shall not  outweigh  the
23    Departmental  opinion  on  the  use  of  funds  for  the most
24    efficient and effective means  for  delivering  job  training
25    services for an employer.

26        Section 20.  Agreements.
27        (a)  Agreements   entered  into  by  the  Department,  an
28    educational intermediary, and an employer shall be subject to
29    rules adopted by the Department.  An agreement shall  provide
30    for  program  services  to  be  provided  by  the educational
31    intermediary for the job training of  the  employees  of  the
 
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 1    employer and the program costs, including any deferred costs,
 2    for  the training of employees for a new job.  The funding of
 3    the training may be paid either  in  whole  or  part  by  the
 4    following:
 5             (1)  The Industrial New Jobs Training Fund;
 6             (2)  Tuition,  fees,  or special charges paid by the
 7        employer; or
 8             (3)  Any supplemental funds provided  by  any  other
 9        government agency, financial institution, or entity.
10        (b)  The  agreement shall specify the program services to
11    be offered by the educational intermediary.
12        (c)  For agreements funded  through  the  Industrial  New
13    Jobs  Training  Fund,  the  agreement shall constitute a lien
14    against the assets and property of the employer until  either
15    of the following have been satisfied:
16             (1)  the   amount   of   moneys  expended  from  the
17        Industrial  New  Jobs  Training  Fund  on  behalf  of  an
18        employer has been paid to the Fund, either through direct
19        payment, in lump sum, or an agreed  payment  schedule  by
20        the employer and the Department; or
21             (2)  an  amount  of  money  equal  to  the amount of
22        Illinois Income Tax withholding taxes  paid  by  the  new
23        employees,  who  have been trained through the agreement,
24        equal the amount of funds expended  from  the  Industrial
25        New Jobs Training Fund for training.
26        The  lien  shall  be  recorded  in  the  county where the
27    employer has the facility where the new employees are  to  be
28    employed.   The  Department may waive the lien requirement if
29    the  employer  has  a  demonstrated   record   of   financial
30    responsibility  or  the circumstances of the agreement do not
31    merit the cost effectiveness of filing the lien.  A lien  may
32    be  waived  only  by  the Director of the Department with the
33    reasons for waiving the lien stated in the agreement.
34        (d)  The agreement shall limit any  administrative  costs
 
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 1    of the educational intermediary to no greater than 10% of the
 2    total cost of job training program.  For the purposes of this
 3    subsection,  "administrative  costs" shall be the operational
 4    costs  of  administering  a  job  training  program  by   the
 5    educational intermediary, which shall include, but may not be
 6    limited  to,  record  keeping,  instructional  oversight by a
 7    non-teaching administrator, and other activities not directly
 8    related to job training instruction.
 9        (e)  Prior to entering into an agreement, the  Department
10    and  the  employer shall have the right to inspect and review
11    the job training facilities of the  educational  intermediary
12    to  determine  the  capabilities  of  providing  the training
13    needed by the employer.
14        (f)  An  agreement  shall  include  the  right   of   the
15    Department   to   request  from  an  employer  the  following
16    information prior to the approval of an agreement:
17             (1)  how the employer is legally organized,  whether
18        as a corporation, limited liability company, partnership,
19        or  other  type  of  legal  entity under the laws of this
20        State, any other state, or a foreign nation;
21             (2)  a listing of the officers and principal  owners
22        of the employer;
23             (3)  an audited financial statement of the employer;
24        or
25             (4)  any  other  information that the Department may
26        require consistent with the purposes of this Act.
27        (g)  All  agreements  upon  execution  shall  be   public
28    documents   and   available   for   public  inspection.   Any
29    proprietary information affecting a product or service of the
30    employer, as relating to the agreement, may  be  exempt  from
31    the disclosure requirement upon approval of the Department.

32        Section  25.   Worker protection.  No agreement initiated
33    under this Act shall in any way diminish or deny  the  rights
 
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 1    of  employees  subject to an agreement to avail themselves of
 2    the Workers'  Compensation  Act,  the  Workers'  Occupational
 3    Diseases  Act,  the  Unemployment  Insurance Act, the Minimum
 4    Wage Law, or any other law  of  this  State  or  the  federal
 5    government.

 6        Section  30.  Annual report.  The Department shall report
 7    annually to the Governor and  the  General  Assembly  on  the
 8    activities of the Department under this Act.

 9        Section  35.   Receipts  and  reimbursements.   Any money
10    received by the  Department  as  reimbursement  for  training
11    expenses, unused training funds, and any other receipts shall
12    be deposited into the Industrial New Jobs Training Fund.

13        Section  40.  The Industrial New Jobs Training Fund.  All
14    amounts withheld from new employees, as provided  in  Section
15    701.2 of the Illinois Income Tax Act, shall be deposited into
16    the  Industrial New Jobs Training Fund, which is created as a
17    special fund in  the  State  treasury.   The  Fund  shall  be
18    administered   by   the  Department.   The  Department  shall
19    distribute to educational intermediaries the funds  necessary
20    to  implement  an agreement as provided in Section 20 of this
21    Act.    Amounts  deposited  into  the  Fund  in   excess   of
22    $50,000,000 shall be transferred from the Fund to the General
23    Revenue  Fund.   Any  accrued  interest on moneys in the Fund
24    shall be deposited into the General Revenue Fund.  A  minimum
25    balance  of  at  least $10,000,000 shall be maintained in the
26    Industrial New Jobs Training Fund at  all  times  unless  the
27    Governor  authorizes  a transfer from the Fund to the General
28    Revenue Fund.  In a  calendar  year  in  which  there  is  no
29    increase  in the number of new jobs or there is a decrease in
30    the number of jobs  from  the  previous  calendar  year,  the
31    Governor  may  transfer  to the Fund from the General Revenue
 
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 1    Fund an amount sufficient to conduct job training under  this
 2    Act  or  may  authorize  a  waiver  of  the  minimum  balance
 3    requirement.

 4        Section 45.  Notes.  Subject to approval of the Governor,
 5    the  Department of Commerce and Community Affairs may issue a
 6    maximum of  $10,000,000  in  notes  for  one  year  beginning
 7    January  1,  2000  for  the  purposes of this Act.  The notes
 8    shall be retired with funds  from  the  Industrial  New  Jobs
 9    Training  Fund, and the debt payments on the notes shall have
10    priority over any other expenditure made under the Act.   The
11    notes  shall  be  payable  within 10 years from their date of
12    issue.

13        Section 105.  The State Finance Act is amended by  adding
14    Section 5.490 as follows:

15        (30 ILCS 105/5.490 new)
16        Sec. 5.490.  The Industrial New Jobs Training Fund.

17        Section  110.  The  Illinois Income Tax Act is amended by
18    adding Section 701.2 as follows:

19        (35 ILCS 5/701.2 new)
20        Sec.   701.2.    Withholding    from    new    employees.
21    Notwithstanding  any  provision  of  law to the contrary, the
22    Department  shall  deposit  into  the  Industrial  New   Jobs
23    Training  Fund  an amount equal to all amounts withheld under
24    Section 701 from a new employee  of  an  existing  or  a  new
25    business  for  a  period  of  one year after that employee is
26    hired.  For purposes of this Section, a "new employee"  means
27    an  employee  of  a new employer and all additional employees
28    hired by an employer of an existing business  that  were  not
29    reported  to the Department as of December 31 of the previous
 
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 1    year.  The Department shall  adopt  rules  to  implement  the
 2    provisions  of  this  Section  and  shall  consult  with  the
 3    Department  of Employment Security concerning the adoption of
 4    rules relating to the definition of a "new employee".

 5        Section 99.   Effective  date.   This  Act  takes  effect
 6    January 1, 2000.

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