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| [ Introduced ] | [ Engrossed ] | [ Senate Amendment 002 ] |
91_SB0025sam001
LRB9100765PTpkam
1 AMENDMENT TO SENATE BILL 25
2 AMENDMENT NO. . Amend Senate Bill 25 by replacing
3 the title with the following:
4 "AN ACT concerning job training."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 1. Short Title. This Act may be cited as the
8 Illinois Industrial New Jobs Training Act.
9 Section 5. Definitions. As used in this Act, unless the
10 context otherwise requires:
11 "Agreement" is the agreement between a new employer, an
12 educational intermediary, and the Department of Commerce and
13 Community Affairs.
14 "Community College" is a community college established
15 under the Public Community College Act.
16 "Department" is the Department of Commerce and Community
17 Affairs.
18 "Educational intermediary" means a school district,
19 community college established under the Public Community
20 College Act, a private business and vocational school
21 certified by the State Board of Education as provided by the
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1 Private Business and Vocational Schools Act, the University
2 of Illinois, Southern Illinois University, Chicago State
3 University, Eastern Illinois University, Governors State
4 University, Illinois State University, Northeastern Illinois
5 University, Northern Illinois University, Western Illinois
6 University, and any other private institution of higher
7 education that offers degrees and instruction above the high
8 school level that has a campus and related facilities located
9 within the State.
10 "Employee" means a person employed in a new job.
11 "New Employer" is the business providing new jobs within
12 the State and who has entered into an agreement with the
13 Department.
14 "Industry" means a business engaged in interstate or
15 intrastate commerce for the purpose of manufacturing,
16 processing, or assembling products, conducting research and
17 development, or providing services in interstate commerce,
18 but excludes all health and professional services and retail,
19 except for retail or catalog distribution centers, retail or
20 catalog warehousing, retail or credit facilities, retail or
21 catalog operations offices, and retail or catalog
22 headquarters facilities. "Industry" does not include a
23 business that closes or substantially reduces its operation
24 in one area of the State and relocates substantially the same
25 operation in another area of the State. This provision does
26 not prohibit a business from expanding its operations in
27 another area of the State provided that existing operations
28 of a similar nature are not closed or substantially reduced
29 in another area of the State.
30 "New job" means a job in a new or expanding industry but
31 does not include jobs of recalled workers, or part-time,
32 contractual, or temporary workers, replacement jobs or other
33 jobs that formerly existed in the industry within the State
34 of Illinois.
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1 "New jobs training program" or "program" means the
2 project or projects established by an educational
3 intermediary for the creation of jobs by providing education
4 and training of workers for new jobs for new or expanding
5 industry within the State.
6 "Program costs" means all the necessary and incidental
7 costs of providing program services and training.
8 "Program services and training" includes, but is not
9 limited to the following:
10 (a) New jobs training and customized skill
11 training;
12 (b) Adult basic education and job related
13 instruction;
14 (c) Vocational and skill-assessment services and
15 testing;
16 (d) Rental of training facilities and equipment and
17 purchase of non-depreciable materials and supplies;
18 (e) On-the-job training, including quality
19 improvement training;
20 (f) Administrative expenses for the new jobs
21 training;
22 (g) Subcontracted services with other educational
23 intermediaries, other federal, State or local agencies;
24 and
25 (h) Contracted or professional services.
26 "Project" means a training arrangement that is the
27 subject of an agreement entered into between the Department,
28 an educational intermediary, and a new employer to provide
29 program services.
30 Section 10. Supplemental support. Any funding for a
31 project under this Act may be supplemental to any job
32 training grants or programs offered by the Department to new
33 employers as provided under the Civil Administrative Code of
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1 Illinois or any other Act the Department is authorized to
2 administer for job training, except that funding under this
3 Act shall not be provided if, in the opinion of the
4 Department, the applicant has received or is likely to
5 receive funding from a source other than through the
6 provisions of this Act or if the funding under this Act is
7 duplicative of any other source of funding that may be
8 available to the applicant.
9 Section 15. Priority of educational intermediaries. For
10 projects that are funded under this Act, the Department shall
11 give priority to those projects involving community colleges
12 established under the Public Community College Act.
13 Section 20. Agreements.
14 (a) Agreements entered into by the Department, an
15 educational intermediary, and a new employer shall be subject
16 to rules adopted by the Department. An agreement shall
17 provide for program services to be provided by the
18 educational intermediary for the job training of the
19 employees of the new employer and the program costs for the
20 training of employees for a new job. The funding of the
21 training may be paid either in whole or part by the
22 following:
23 (1) The Industrial New Jobs Training Fund;
24 (2) Tuition, fees, or special charges paid by the
25 new employer;
26 (3) Any supplemental funds provided by any other
27 government agency, financial institution, or entity; or
28 (4) The incremental increase in property tax
29 revenue received by the educational intermediary from an
30 increase in the equalized assessed valuation of property
31 attributable to the new jobs training program as
32 determined by the Department from information provided by
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1 the county clerk.
2 (b) The agreement shall specify the program services to
3 be offered by the educational intermediary.
4 (c) The agreement shall limit any administrative costs,
5 including indirect costs, of the educational intermediary to
6 no greater than 10% of the total cost of job training
7 program. For the purposes of this subsection,
8 "administrative costs" shall be the operational costs of
9 administering a job training program by the educational
10 intermediary, which shall include, but may not be limited to,
11 record keeping, instructional oversight by a non-teaching
12 administrator, and other activities not directly related to
13 job training instruction.
14 (d) Prior to entering into an agreement, the Department
15 and the new employer shall have the right to inspect and
16 review the job training facilities of the educational
17 intermediary to determine the capabilities of providing the
18 training needed by the new employer.
19 (e) An agreement shall include the right of the
20 Department to request from a new employer the following
21 information prior to the approval of an agreement:
22 (1) how the new employer is legally organized,
23 whether as a corporation, limited liability company,
24 partnership, or other type of legal entity under the laws
25 of this State, any other state, or a foreign nation;
26 (2) a listing of the officers and principal owners
27 of the new employer;
28 (3) an audited financial statement of the new
29 employer; and
30 (4) any other information that the Department may
31 require consistent with the purposes of this Act.
32 (f) All agreements upon execution shall be public
33 documents and available for public inspection. Any
34 proprietary information affecting a product or service of the
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1 new employer, as relating to the agreement, may be exempt
2 from the disclosure requirement upon approval of the
3 Department.
4 Section 25. Worker protection. No agreement initiated
5 under this Act shall in any way diminish or deny the rights
6 of employees subject to an agreement to avail themselves of
7 the Workers' Compensation Act, the Workers' Occupational
8 Diseases Act, the Unemployment Insurance Act, the Minimum
9 Wage Law, or any other law of this State or the federal
10 government.
11 Section 30. Annual report. The Department shall report
12 annually to the Governor and the General Assembly on the
13 activities of the Department under this Act.
14 Section 35. Receipts and reimbursements. Any money
15 received by the Department as reimbursement for training
16 expenses, unused training funds, and any other receipts shall
17 be deposited into the Industrial New Jobs Training Fund.
18 Section 40. Funding. Funds shall be appropriated to the
19 Department as may be necessary for administrative expenses
20 related to the implementation of this Act.
21 Section 45. The Industrial New Jobs Training Fund. All
22 amounts withheld from new employees, as provided in Section
23 701.2 of the Illinois Income Tax Act, shall be deposited into
24 the Industrial New Jobs Training Fund, which is created as a
25 special fund in the State treasury. The Fund shall be
26 administered by the Department. The Department shall
27 distribute to educational intermediaries the funds necessary
28 to implement an agreement as provided in Section 20 of this
29 Act. Amounts deposited into the Fund in excess of
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1 $50,000,000 shall be transferred from the Fund to the General
2 Revenue Fund. Any accrued interest on moneys in the Fund
3 shall be deposited into the General Revenue Fund. A minimum
4 balance of at least $10,000,000 shall be maintained in the
5 Industrial New Jobs Training Fund at all times unless the
6 Governor authorizes a transfer from the Fund to the General
7 Revenue Fund. In a calendar year in which there is no
8 increase in the number of new jobs or there is a decrease in
9 the number of jobs from the previous calendar year, the
10 Governor may transfer to the Fund from the General Revenue
11 Fund an amount sufficient to conduct job training under this
12 Act or may authorize a waiver of the minimum balance
13 requirement.
14 Section 50. Notes. Subject to approval of the Governor,
15 the Department of Commerce and Community Affairs may issue a
16 maximum of $10,000,000 in notes for one year beginning
17 January 1, 2000 for the purposes of this Act. The notes
18 shall be retired with funds from the Industrial New Jobs
19 Training Fund, and the debt payments on the notes shall have
20 priority over any other expenditure made under the Act. The
21 notes shall be payable within 10 years from their date of
22 issue.
23 Section 105. The State Finance Act is amended by adding
24 Section 5.490 as follows:
25 (30 ILCS 105/5.490 new)
26 Sec. 5.490. The Industrial New Jobs Training Fund.
27 Section 110. The Illinois Income Tax Act is amended by
28 adding Section 701.2 as follows:
29 (35 ILCS 5/701.2 new)
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1 Sec. 701.2. Withholding from new employees.
2 Notwithstanding any provision of law to the contrary, the
3 Department shall deposit into the Industrial New Jobs
4 Training Fund an amount equal to all amounts withheld under
5 Section 701 from a new employee of an existing or a new
6 business for a period of up to 10 years after that employee
7 is hired. For purposes of this Section, a "new employee"
8 means an employee of a new employer and all additional
9 employees hired by a new employer of an existing business
10 that were not reported to the Department as of December 31 of
11 the previous year. The Department shall adopt rules to
12 implement the provisions of this Section and shall consult
13 with the Department of Employment Security concerning the
14 adoption of rules relating to the definition of a "new
15 employee".
16 Section 99. Effective date. This Act takes effect
17 January 1, 2000.".