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91_SB0025eng
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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 a new 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 school district,
16 community college established under the Public Community
17 College Act, a private business and vocational school
18 certified by the State Board of Education as provided by the
19 Private Business and Vocational Schools Act, the University
20 of Illinois, Southern Illinois University, Chicago State
21 University, Eastern Illinois University, Governors State
22 University, Illinois State University, Northeastern Illinois
23 University, Northern Illinois University, Western Illinois
24 University, and any other private institution of higher
25 education that offers degrees and instruction above the high
26 school level that has a campus and related facilities located
27 within the State.
28 "Employee" means a person employed in a new job.
29 "New Employer" is the business providing new jobs within
30 the State and who has entered into an agreement with the
31 Department.
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1 "Industry" means a business engaged in interstate or
2 intrastate commerce for the purpose of manufacturing,
3 processing, or assembling products, conducting research and
4 development, or providing services in interstate commerce,
5 but excludes all health and professional services and retail,
6 except for retail or catalog distribution centers, retail or
7 catalog warehousing, retail or credit facilities, retail or
8 catalog operations offices, and retail or catalog
9 headquarters facilities. "Industry" does not include a
10 business that closes or substantially reduces its operation
11 in one area of the State and relocates substantially the same
12 operation in another area of the State. This provision does
13 not prohibit a business from expanding its operations in
14 another area of the State provided that existing operations
15 of a similar nature are not closed or substantially reduced
16 in another area of the State.
17 "New job" means a job in a new or expanding industry but
18 does not include jobs of recalled workers, or part-time,
19 contractual, or temporary workers, replacement jobs or other
20 jobs that formerly existed in the industry within the State
21 of Illinois.
22 "New jobs training program" or "program" means the
23 project or projects established by an educational
24 intermediary for the creation of jobs by providing education
25 and training of workers for new jobs for new or expanding
26 industry within the State.
27 "Program costs" means all the necessary and incidental
28 costs of providing program services and training.
29 "Program services and training" includes, but is not
30 limited to the following:
31 (a) New jobs training and customized skill
32 training;
33 (b) Adult basic education and job related
34 instruction;
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1 (c) Vocational and skill-assessment services and
2 testing;
3 (d) Rental of training facilities and equipment and
4 purchase of non-depreciable materials and supplies;
5 (e) On-the-job training, including quality
6 improvement training;
7 (f) Administrative expenses for the new jobs
8 training;
9 (g) Subcontracted services with other educational
10 intermediaries, other federal, State or local agencies;
11 and
12 (h) Contracted or professional services.
13 "Project" means a training arrangement that is the
14 subject of an agreement entered into between the Department,
15 an educational intermediary, and a new employer to provide
16 program services.
17 Section 10. Supplemental support. Any funding for a
18 project under this Act may be supplemental to any job
19 training grants or programs offered by the Department to new
20 employers as provided under the Civil Administrative Code of
21 Illinois or any other Act the Department is authorized to
22 administer for job training, except that funding under this
23 Act shall not be provided if, in the opinion of the
24 Department, the applicant has received or is likely to
25 receive funding from a source other than through the
26 provisions of this Act or if the funding under this Act is
27 duplicative of any other source of funding that may be
28 available to the applicant.
29 Section 15. Priority of educational intermediaries. For
30 projects that are funded under this Act, the Department shall
31 give priority to those projects involving community colleges
32 established under the Public Community College Act, unless
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1 circumstances warrant otherwise.
2 Section 20. Agreements.
3 (a) Agreements entered into by the Department, an
4 educational intermediary, and a new employer shall be subject
5 to rules adopted by the Department. An agreement shall
6 provide for program services to be provided by the
7 educational intermediary for the job training of the
8 employees of the new employer and the program costs for the
9 training of employees for a new job. The funding of the
10 training may be paid either in whole or part by the
11 following:
12 (1) The Industrial New Jobs Training Fund;
13 (2) Tuition, fees, or special charges paid by the
14 new employer;
15 (3) Any supplemental funds provided by any other
16 government agency, except any funds appropriated for
17 adult education programs under Section 10-22.20 of the
18 School Code, or any supplemental funds provided by any
19 other financial institution or entity; or
20 (4) The incremental increase in property tax
21 revenue received by the educational intermediary from an
22 increase in the equalized assessed valuation of property
23 attributable to the new jobs training program as
24 determined by the Department from information provided by
25 the county clerk.
26 (b) The agreement shall specify the program services to
27 be offered by the educational intermediary.
28 (c) The agreement shall limit any administrative costs,
29 including indirect costs, of the educational intermediary to
30 no greater than 10% of the total cost of job training
31 program. For the purposes of this subsection,
32 "administrative costs" shall be the operational costs of
33 administering a job training program by the educational
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1 intermediary, which shall include, but may not be limited to,
2 record keeping, instructional oversight by a non-teaching
3 administrator, and other activities not directly related to
4 job training instruction.
5 (d) Prior to entering into an agreement, the Department
6 and the new employer shall have the right to inspect and
7 review the job training facilities of the educational
8 intermediary to determine the capabilities of providing the
9 training needed by the new employer.
10 (e) An agreement shall include the right of the
11 Department to request from a new employer the following
12 information prior to the approval of an agreement:
13 (1) how the new employer is legally organized,
14 whether as a corporation, limited liability company,
15 partnership, or other type of legal entity under the laws
16 of this State, any other state, or a foreign nation;
17 (2) a listing of the officers and principal owners
18 of the new employer;
19 (3) an audited financial statement of the new
20 employer; and
21 (4) any other information that the Department may
22 require consistent with the purposes of this Act.
23 (f) All agreements upon execution shall be public
24 documents and available for public inspection. Any
25 proprietary information affecting a product or service of the
26 new employer, as relating to the agreement, may be exempt
27 from the disclosure requirement upon approval of the
28 Department.
29 Section 25. Worker protection. No agreement initiated
30 under this Act shall in any way diminish or deny the rights
31 of employees subject to an agreement to avail themselves of
32 the Workers' Compensation Act, the Workers' Occupational
33 Diseases Act, the Unemployment Insurance Act, the Minimum
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1 Wage Law, or any other law of this State or the federal
2 government.
3 Section 30. Annual report. The Department shall report
4 annually to the Governor and the General Assembly on the
5 activities of the Department under this Act.
6 Section 35. Receipts and reimbursements. Any money
7 received by the Department as reimbursement for training
8 expenses, unused training funds, and any other receipts shall
9 be deposited into the Industrial New Jobs Training Fund.
10 Section 40. Funding. Funds shall be appropriated to the
11 Department as may be necessary for administrative expenses
12 related to the implementation of this Act.
13 Section 45. 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
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1 Governor may transfer to the Fund from the General Revenue
2 Fund an amount sufficient to conduct job training under this
3 Act or may authorize a waiver of the minimum balance
4 requirement.
5 Section 50. Notes. Subject to approval of the Governor,
6 the Department of Commerce and Community Affairs may issue a
7 maximum of $10,000,000 in notes for one year beginning
8 January 1, 2000 for the purposes of this Act. The notes
9 shall be retired with funds from the Industrial New Jobs
10 Training Fund, and the debt payments on the notes shall have
11 priority over any other expenditure made under the Act. The
12 notes shall be payable within 10 years from their date of
13 issue. The Department shall file a report with the Secretary
14 of the Senate and the Clerk of the House of Representatives
15 in January of each year that details the amount of notes
16 issued and the amount of debt payments on the notes for the
17 previous calendar year.
18 Section 105. The State Finance Act is amended by adding
19 Section 5.490 as follows:
20 (30 ILCS 105/5.490 new)
21 Sec. 5.490. The Industrial New Jobs Training Fund.
22 Section 110. The Illinois Income Tax Act is amended by
23 adding Section 701.2 as follows:
24 (35 ILCS 5/701.2 new)
25 Sec. 701.2. Withholding from new employees.
26 Notwithstanding any provision of law to the contrary, the
27 Department shall deposit into the Industrial New Jobs
28 Training Fund an amount equal to all amounts withheld under
29 Section 701 from a new employee of an existing or a new
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1 business for a period of up to 10 years after that employee
2 is hired. For purposes of this Section, a "new employee"
3 means an employee of a new employer and all additional
4 employees hired by a new employer of an existing business
5 that were not reported to the Department as of December 31 of
6 the previous year. The Department shall adopt rules to
7 implement the provisions of this Section and shall consult
8 with the Department of Employment Security concerning the
9 adoption of rules relating to the definition of a "new
10 employee".
11 Section 99. Effective date. This Act takes effect
12 January 1, 2000.
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