Sen. Michael E. Hastings
Filed: 4/8/2021
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1 | AMENDMENT TO SENATE BILL 1166
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2 | AMENDMENT NO. ______. Amend Senate Bill 1166 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "ARTICLE 1. INVESTING IN ILLINOIS WORKS TAX CREDIT ACT | ||||||
5 | Section 1-1. Short title. This Act may be cited as the | ||||||
6 | Investing in Illinois Works Tax Credit Act. References in this | ||||||
7 | Article to "this Act" mean this Article. | ||||||
8 | Section 1-3. Legislative findings. The General Assembly | ||||||
9 | finds that: | ||||||
10 | Economic research indicates that registered apprenticeship | ||||||
11 | programs have positive economic impacts, and countries with | ||||||
12 | more widespread usage of apprenticeship programs have shown to | ||||||
13 | be more successful at transitioning young workers into stable | ||||||
14 | jobs, resulting in lower youth unemployment rates. | ||||||
15 | The demographics of registered apprenticeship programs in |
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1 | our State do not mirror the diversity of Illinoisans. | ||||||
2 | According to data from the U.S. Department of Labor's Office | ||||||
3 | of Apprenticeship, from 2000 through 2016, only 8.8% of all | ||||||
4 | construction apprentices were African-American, 17.6% were | ||||||
5 | Hispanic or Latino/Latina, while 69.6% were white. | ||||||
6 | In order to work toward a level playing field for all who | ||||||
7 | seek the training and economic stability apprenticeships | ||||||
8 | provide, Illinois created the Illinois Works Preapprenticeship | ||||||
9 | Program, which funds preapprenticeship skills training through | ||||||
10 | community-based organizations serving populations that have, | ||||||
11 | historically, been met with barriers to entry or advancement | ||||||
12 | in the workforce. | ||||||
13 | By targeting historically underutilized communities whose | ||||||
14 | members seek to access the upward mobility and career | ||||||
15 | advancement apprenticeships bring, the Illinois | ||||||
16 | Preapprenticeship Program is one part of many State | ||||||
17 | initiatives to increase diversity in apprenticeship programs | ||||||
18 | and careers in the construction and building trades. | ||||||
19 | The Investing in Illinois Works Tax Credit expands the | ||||||
20 | goals of the Illinois Preapprenticeship Program to private | ||||||
21 | construction projects and highly skilled training programs by | ||||||
22 | incentivizing contractors to utilize graduates of the Illinois | ||||||
23 | Works Preapprenticeship Program or graduates of the U.S. | ||||||
24 | Department of Labor's Office of Apprenticeship as part of | ||||||
25 | their skilled and trained workforces on projects at | ||||||
26 | high-hazard facilities. |
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1 | Section 1-5. Definitions. As used in this Act: | ||||||
2 | "Department" means the Department of Revenue. | ||||||
3 | "Illinois Works Preapprenticeship Program" means a network | ||||||
4 | of community-based, nonprofit organizations throughout | ||||||
5 | Illinois that receive grant funding from the Illinois | ||||||
6 | Department of Commerce and Economic Opportunity to recruit, | ||||||
7 | pre-screen, and provide preapprenticeship skill training to | ||||||
8 | create a qualified, diverse pipeline of workers who are | ||||||
9 | prepared for careers in the construction and building trades | ||||||
10 | as prescribed in Section 20-15 Illinois Works Jobs Program | ||||||
11 | Act. | ||||||
12 | "Owner or operator" has the meaning provided in Section 5 | ||||||
13 | of the Illinois Hazardous Materials Workforce Training Act. | ||||||
14 | "Skilled and trained workforce" has the meaning provided | ||||||
15 | in Section 5 of the Illinois Hazardous Materials Workforce | ||||||
16 | Training Act. | ||||||
17 | "Qualified wages" means the wages paid or incurred by the | ||||||
18 | employer during the taxable year to a qualifying graduate. | ||||||
19 | "Qualifying graduate" means an individual from an | ||||||
20 | underrepresented population who has successfully completed a | ||||||
21 | preapprenticeship program through the Illinois Works | ||||||
22 | Preapprenticeship Program in compliance with the requirements | ||||||
23 | of Section 20-15 of the Illinois Works Jobs Programs Act and | ||||||
24 | who is a registered apprentice as defined under Section 10-5 | ||||||
25 | of the Illinois Hazardous Materials Workforce Training Act or |
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1 | has successfully completed an apprenticeship program approved | ||||||
2 | by and registered with the United States Department of Labor's | ||||||
3 | Office of Apprenticeship. | ||||||
4 | "Underrepresented population" has the meaning provided in | ||||||
5 | Section 20-10 of the Illinois Works Job Program Act. | ||||||
6 | Section 1-10. Tax credit. An owner or operator may apply | ||||||
7 | for a certificate of eligibility to receive a credit against | ||||||
8 | the payment of taxes withheld under Section 704A of the | ||||||
9 | Illinois Income Tax Act up to an amount equal to 45% of | ||||||
10 | qualified wages paid to each member of its skilled and trained | ||||||
11 | workforce who is also a qualifying graduate performing work in | ||||||
12 | his or her prevailing wage classification for the duration of | ||||||
13 | his or her employment in the calendar year for which the credit | ||||||
14 | will be applied. | ||||||
15 | The Department shall award credits under this Act to | ||||||
16 | further career advancement of underrepresented populations and | ||||||
17 | diversity in private sector skilled construction trades. | ||||||
18 | Section 1-15. Application process. The Department shall | ||||||
19 | establish an application process for owners and operators to | ||||||
20 | certify their eligibility for the credit, in coordination with | ||||||
21 | the Department of Labor and the Department of Commerce and | ||||||
22 | Economic Opportunity as necessary for implementation. | ||||||
23 | The owner or operator must provide: | ||||||
24 | (1) the name, year, and community-based organization |
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1 | or union through which each qualifying graduate completed | ||||||
2 | his or her preapprenticeship program, apprenticeship | ||||||
3 | program, or applicable apprenticeship and training program | ||||||
4 | approved by and registered with the United States | ||||||
5 | Department of Labor's Office of Apprenticeship; | ||||||
6 | (2) the certificate of completion from the Department | ||||||
7 | of Labor that the qualifying graduate has completed the | ||||||
8 | minimum approved safety training required by the Illinois | ||||||
9 | Hazardous Materials Workforce Training Act; | ||||||
10 | (3) the hours worked by the qualifying graduate that | ||||||
11 | go to meeting his or her apprenticeship requirements at | ||||||
12 | the time of the application; | ||||||
13 | (4) a signed affidavit from the principal attesting | ||||||
14 | that: (i) the qualifying graduate will perform work in his | ||||||
15 | or her prevailing wage classification for the duration of | ||||||
16 | his or her employment in the calendar year in which the | ||||||
17 | credit will be applied; (ii) the documents provided in the | ||||||
18 | application are true; and (iii) the owner or operator will | ||||||
19 | comply with all applicable laws; and | ||||||
20 | (5) any other material required by the Department. | ||||||
21 | Section 1-20. Credit awards. | ||||||
22 | (a) The credit shall be claimed for the first calendar | ||||||
23 | year ending on or after the date on which the certificate is | ||||||
24 | issued by the Department. The credit shall not exceed $2,500 | ||||||
25 | per qualifying graduate annually, increased annually by the |
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1 | inflation adjustment, nor shall the credit exceed the actual | ||||||
2 | taxes withheld under Section 704A of the Illinois Income Tax | ||||||
3 | Act. The Department shall limit the monetary amount of credits | ||||||
4 | awarded under this Act to no more than $20,000,000, increased | ||||||
5 | annually by the inflation adjustment. If applications for a | ||||||
6 | greater amount are received, credits shall be allowed on a | ||||||
7 | first-come-first-served basis, based on the date on which each | ||||||
8 | properly complete application for a certification of | ||||||
9 | eligibility is received by the Department. If more than one | ||||||
10 | certificate of eligibility is received on the same day, the | ||||||
11 | credits shall be awarded based on the time of submission for | ||||||
12 | that particular day. | ||||||
13 | (b) In the case of a taxable year beginning on or after | ||||||
14 | January 1, 2021, the $2,500 amount and the $20,000,000 amount | ||||||
15 | in subsection (a) shall be increased each year by the | ||||||
16 | inflation adjustment. For the purposes of this Section, the | ||||||
17 | inflation adjustment for any calendar year is the percentage | ||||||
18 | (if any) by which the Consumer Price Index for All Urban | ||||||
19 | Consumers, as issued by the United States Department of Labor, | ||||||
20 | for the preceding calendar year exceeds the Consumer Price | ||||||
21 | Index for All Urban Consumers for calendar year 2020. | ||||||
22 | Section 1-25. Penalties. False or fraudulent claims for | ||||||
23 | credits under this Section may be subject to penalties as | ||||||
24 | provided under Section 3-5 or 3-6 of the Uniform Penalty and | ||||||
25 | Interest Act, as applicable. |
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1 | If the Department determines that an owner or operator who | ||||||
2 | has received a credit under this Section is not complying with | ||||||
3 | its requirements or the certifications the owner or operator | ||||||
4 | made in its application, the Department shall recapture from | ||||||
5 | the taxpayer the entire credit amount awarded under its | ||||||
6 | certification. | ||||||
7 | Section 1-35. Rulemaking. The Department, in coordination | ||||||
8 | with the Department of Labor and the Department of Commerce | ||||||
9 | and Economic Opportunity, shall adopt rules for the | ||||||
10 | implementation and administration of this Act. In order to | ||||||
11 | provide for the expeditious and timely implementation of this | ||||||
12 | Act, the Department may adopt emergency rules, in consultation | ||||||
13 | with the Department of Labor and the Department of Commerce | ||||||
14 | and Economic Opportunity. The adoption of emergency rules | ||||||
15 | authorized by this Section is deemed to be necessary for the | ||||||
16 | public interest, safety, and welfare. | ||||||
17 | ARTICLE 5. ACCESS TO APPRENTICESHIP ACT | ||||||
18 | Section 5-1. Short title. This Act may be cited as the | ||||||
19 | Access to Apprenticeship Act. References in this Article to | ||||||
20 | "this Act" mean this Article. | ||||||
21 | Section 5-5. Restrictions on application requirements. | ||||||
22 | Notwithstanding any law to the contrary, in order to ensure |
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1 | fair and equal access to apprenticeship programs, no | ||||||
2 | application for a preapprenticeship or apprenticeship program, | ||||||
3 | whether run by the State, a community-based organization, a | ||||||
4 | community college, a public university, a private employer, a | ||||||
5 | union, or joint labor-management program, may require a | ||||||
6 | recommendation from a union member or any other person as a | ||||||
7 | condition of acceptance to the preapprenticeship or | ||||||
8 | apprenticeship program. An intent to hire letter from a | ||||||
9 | signatory contractor shall not be considered a recommendation | ||||||
10 | for purposes of this Act. | ||||||
11 | Section 5-97. Severability. The provisions of this Act are | ||||||
12 | severable under Section 1.31 of the Statute on Statutes. | ||||||
13 | ARTICLE 10. ILLINOIS HAZARDOUS MATERIALS WORKFORCE TRAINING | ||||||
14 | ACT | ||||||
15 | Section 10-1. Short title. This Act may be cited as the | ||||||
16 | Illinois Hazardous Materials Workforce Training Act. | ||||||
17 | References in this Article to "this Act" mean this Article. | ||||||
18 | Section 10-5. Definitions. As used in this Act: | ||||||
19 | "Apprenticeable occupation" means an occupation in the | ||||||
20 | building and construction trades for which training and | ||||||
21 | apprenticeship programs have been approved by and registered | ||||||
22 | with the U.S. Department of Labor's Office of Apprenticeship. |
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1 | "Apprenticeship program" means an applicable training and | ||||||
2 | apprenticeship program approved by and registered with the | ||||||
3 | U.S. Department of Labor's Office of Apprenticeship. | ||||||
4 | "Building and construction trades council" means any labor | ||||||
5 | organization that represents multiple construction trades and | ||||||
6 | monitors or is attentive to compliance with public or workers' | ||||||
7 | safety laws, wage and hour requirements, or other statutory | ||||||
8 | requirements and negotiates and maintains collective | ||||||
9 | bargaining agreements. | ||||||
10 | "Construction" means all work at a stationary source | ||||||
11 | involving laborers, workers, or mechanics, including any | ||||||
12 | maintenance, repair, assembly, or disassembly work performed | ||||||
13 | on equipment whether owned, leased, or rented. | ||||||
14 | "Department" means the Department of Labor. | ||||||
15 | "Director" means the Director of Labor. | ||||||
16 | "Labor agreement" means a form of prehire collective | ||||||
17 | bargaining agreement covering all terms and conditions of | ||||||
18 | employment. | ||||||
19 | "Labor organization" means an organization that is the | ||||||
20 | exclusive representative of an employer's employees recognized | ||||||
21 | or certified under the federal National Labor Relations Act of | ||||||
22 | 1935. | ||||||
23 | "Minimum approved safety training for workers at high
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24 | hazard facilities" means a minimum 30-hour OSHA Outreach | ||||||
25 | Training Program for the Construction class consisting of a | ||||||
26 | curriculum of OSHA-designated training topics with training |
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1 | performed by an authorized OSHA Outreach Training Program | ||||||
2 | Trainer and that is intended to provide workers with | ||||||
3 | information about their rights, employer responsibilities, | ||||||
4 | safety and health hazards a worker may encounter on a work | ||||||
5 | site, as well as how to identify, abate, avoid, and prevent | ||||||
6 | job-related hazards by emphasizing hazard identification, | ||||||
7 | avoidance, control, and prevention. | ||||||
8 | "OSHA" means the United States Department of Labor's | ||||||
9 | Occupational Safety and Health Administration. | ||||||
10 | "Owner or operator" means an owner or operator of a | ||||||
11 | stationary source that is engaged in activities described in | ||||||
12 | Code 324110, 325110, 325193, or 325199 of the 2017 North
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13 | American Industry Classification System (NAICS), and has one | ||||||
14 | or more covered processes that are required to prepare and | ||||||
15 | submit a Risk Management Plan. "Owner or operator" does not | ||||||
16 | include oil and gas extraction operations. | ||||||
17 | "Prevailing hourly wage rate" has the same meaning as | ||||||
18 | "general prevailing rate of hourly wages" as defined in | ||||||
19 | Section 2 of the Prevailing Wage Act. | ||||||
20 | "Registered apprentice" means an apprentice registered in | ||||||
21 | an applicable apprenticeship program for an apprenticeable | ||||||
22 | occupation approved by and registered with the U.S. Department | ||||||
23 | of Labor's Office of Apprenticeship. | ||||||
24 | "Shift" means a set standard period of time an employer | ||||||
25 | requires its employees to perform his or her work-related | ||||||
26 | duties on a daily basis. For purposes of this definition, |
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1 | there may be multiple shifts per day. | ||||||
2 | "Skilled journeyperson" means a worker who meets all of | ||||||
3 | the following criteria: | ||||||
4 | (1) the worker either graduated from an approved | ||||||
5 | apprenticeship and training program approved by and | ||||||
6 | registered with the U.S. Department of Labor's Office of | ||||||
7 | Apprenticeship for the applicable occupation, or has at | ||||||
8 | least as many hours of on-the-job experience in the | ||||||
9 | applicable occupation that would be required to graduate | ||||||
10 | from an apprenticeship program approved by and registered | ||||||
11 | with the U.S. Department of Labor's Office of | ||||||
12 | Apprenticeship for the applicable occupation; | ||||||
13 | (2) the worker is being paid at least a rate | ||||||
14 | equivalent to the prevailing hourly wage rate for a | ||||||
15 | journeyperson in the applicable occupation and locality; | ||||||
16 | and | ||||||
17 | (3) beginning on or after July 1, 2024, the worker has | ||||||
18 | completed, within the prior 3 calendar years, minimum | ||||||
19 | approved safety training for workers at high hazard | ||||||
20 | facilities and has filed a certificate of completion with | ||||||
21 | the Department. | ||||||
22 | "Skilled and trained workforce" means a workforce that | ||||||
23 | meets all of the following criteria: | ||||||
24 | (1) all the workers are either registered apprentices | ||||||
25 | or skilled journeypersons; | ||||||
26 | (2) beginning on July 1, 2022, at least 45% of the |
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1 | skilled journeypersons are graduates of an apprenticeship | ||||||
2 | program for the applicable occupation; | ||||||
3 | (3) beginning on July 1, 2023, at least 60% of the | ||||||
4 | skilled journeypersons are graduates of an apprenticeship | ||||||
5 | program for the applicable occupation; and | ||||||
6 | (4) beginning on July 1, 2024, at least 80% of the | ||||||
7 | skilled journeypersons are graduates of an apprenticeship | ||||||
8 | program for the applicable occupation. | ||||||
9 | "Stationary source" means that term as it is defined under | ||||||
10 | Section 39.5 of the Environmental Protection Act. | ||||||
11 | Section 10-10. Minimum approved safety training. | ||||||
12 | (a) A person who has completed minimum approved safety | ||||||
13 | training for workers at high hazard facilities shall file his | ||||||
14 | or her certificate of completion with the Department in a | ||||||
15 | manner prescribed by the Department. | ||||||
16 | (b) The owner or operator, when contracting for the | ||||||
17 | performance of construction work at the stationary source, | ||||||
18 | shall require that its contractors and any subcontractors use | ||||||
19 | a skilled and trained workforce to perform all onsite work | ||||||
20 | within an apprenticeable occupation in the building and | ||||||
21 | construction trades. | ||||||
22 | (c) The requirements of this Section shall not immediately | ||||||
23 | apply to contracts awarded before July 1, 2022, unless the | ||||||
24 | contract is extended or renewed after that date. Contracts | ||||||
25 | awarded before July 1, 2022 shall meet the requirements of |
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1 | this Section no later than July 1, 2023. | ||||||
2 | (d) The requirements of this Section shall only apply to | ||||||
3 | the skilled and trained workforce, contracted with an owner or | ||||||
4 | operator to perform construction work at the stationary source | ||||||
5 | site. | ||||||
6 | (e) The skilled and trained workforce requirements under | ||||||
7 | this Section shall not apply to: | ||||||
8 | (1) Contractors that have requested qualified workers | ||||||
9 | from the local hiring halls that dispatch workers in the | ||||||
10 | apprenticeable occupation and, due to workforce shortages, | ||||||
11 | the contractor is unable to obtain sufficient qualified | ||||||
12 | workers within 48 hours of the request, Saturdays, | ||||||
13 | Sundays, and holidays excepted. This Act shall not prevent | ||||||
14 | contractors from obtaining workers from any source. | ||||||
15 | (2) An emergency where compliance is impracticable; | ||||||
16 | namely, an emergency requires immediate action to prevent | ||||||
17 | imminent harm to public health or safety or to the | ||||||
18 | environment. Within 14 days of an emergency, the Attorney | ||||||
19 | General's Workers Rights Bureau, in conjunction with the | ||||||
20 | Illinois Department of Labor, must certify that the | ||||||
21 | emergency warranted noncompliance with this Act. The | ||||||
22 | employer must provide necessary documentation of the | ||||||
23 | emergency to the Attorney General's Workers Rights Bureau | ||||||
24 | and the Illinois Department of Labor. | ||||||
25 | Section 10-15. Enforcement. Any interested party may file |
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1 | a complaint with the Department of Labor against an owner, | ||||||
2 | operator, or construction contractor covered under this Act if | ||||||
3 | there is reasonable belief that the owner, operator, or | ||||||
4 | construction contractor is in violation of this Act. Upon | ||||||
5 | receiving the complaint, the Department of Labor shall request | ||||||
6 | a copy of any contract at issue that was entered into between | ||||||
7 | the owner, operator, or construction contractor to ensure that | ||||||
8 | training requirements under this Act were included in the | ||||||
9 | contract's terms. The Department of Labor shall request from | ||||||
10 | the construction contractor a copy of the construction | ||||||
11 | contractor's payroll, broken down by any registered apprentice | ||||||
12 | and skilled journeyperson on the job site. If the Department | ||||||
13 | of Labor finds that an owner, operator, or construction | ||||||
14 | contractor has not complied with this Act, the Department | ||||||
15 | shall refer the matter to the Attorney General for | ||||||
16 | enforcement. | ||||||
17 | Section 10-20. Exemptions. This Act does not apply to any | ||||||
18 | owner or operator that has an executed national or local labor | ||||||
19 | agreement in effect pertaining to the performance of | ||||||
20 | construction work at a given facility or site under the terms | ||||||
21 | of the agreement. The labor agreement must be negotiated with | ||||||
22 | and approved by a local building and construction trades | ||||||
23 | council that has geographic jurisdiction over the stationary | ||||||
24 | source. |
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1 | Section 10-21. Reporting. | ||||||
2 | (a) Any applicable apprenticeship and training program | ||||||
3 | approved by and registered with the U.S. Department of Labor's | ||||||
4 | Office of Apprenticeship providing minimum approved safety | ||||||
5 | training for workers in high hazard facilities and any | ||||||
6 | contractor who employs workers operating at high hazard | ||||||
7 | facilities shall file an annual report with the Department and | ||||||
8 | the Illinois Works Review Panel, in the form and manner | ||||||
9 | required by the Department, within 6 months after the | ||||||
10 | effective date of this Act and on January 31 of each year | ||||||
11 | thereafter. The report shall contain the following | ||||||
12 | information: | ||||||
13 | (1) A description of the applicable apprenticeship and | ||||||
14 | training program, approved by and registered with the U.S. | ||||||
15 | Department of Labor's Office of Apprenticeship, or the | ||||||
16 | contractor's recruitment efforts, screening efforts, and a | ||||||
17 | general description of training efforts. | ||||||
18 | (2) The applicable apprenticeship and training | ||||||
19 | program, approved by and registered with the U.S. | ||||||
20 | Department of Labor's Office of Apprenticeship, shall | ||||||
21 | provide the number of individuals who apply to, | ||||||
22 | participate in, and complete the minimum approved safety | ||||||
23 | training for workers at high
hazard facilities, broken | ||||||
24 | down by race, gender, jurisdiction, age, and veteran | ||||||
25 | status. A contractor under this paragraph shall provide | ||||||
26 | the number of workers who the contractor employs to work |
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1 | at high hazard facilities, within the last calendar year, | ||||||
2 | broken down by race, gender, jurisdiction, age, and | ||||||
3 | veteran status. | ||||||
4 | (3) The demographic data of the jurisdiction. | ||||||
5 | (4) For the applicable apprenticeship and training | ||||||
6 | program, approved by and registered with the U.S. | ||||||
7 | Department of Labor's Office of Apprenticeship, a | ||||||
8 | statement of the minimum diversity goal that participation | ||||||
9 | in the minimum approved safety training for workers in | ||||||
10 | high hazard facilities is representative of the | ||||||
11 | demographics of its jurisdiction. For a contractor under | ||||||
12 | this paragraph, a statement of the minimum diversity goal | ||||||
13 | that the workers employed by the contractor to work at | ||||||
14 | high hazard facilities is representative of the | ||||||
15 | demographics of the contractor's jurisdiction. | ||||||
16 | (5) An action plan to increase diversity and meet or | ||||||
17 | exceed the stated minimum diversity goal, inclusive of, | ||||||
18 | but not limited to, the following actions if the diversity | ||||||
19 | goal is not met: | ||||||
20 | (A) Providing information on this Act for all high | ||||||
21 | schools and field offices of the Department of | ||||||
22 | Employment Security in the jurisdiction. | ||||||
23 | (B) Entering into a joint agreement with the | ||||||
24 | Department of Employment Security for outreach and | ||||||
25 | employment. | ||||||
26 | (C) Entering into a joint agreement with |
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1 | educational institutions or approved Illinois Works | ||||||
2 | Preapprenticeship Programs established under | ||||||
3 | subsection (a) of Section 20-15 of the Illinois Works | ||||||
4 | Jobs Program Act in the jurisdiction to enhance | ||||||
5 | recruitment efforts. | ||||||
6 | (D) Eliminating experience requirements, when | ||||||
7 | feasible, to permit increased participation by | ||||||
8 | minorities. | ||||||
9 | (b) If the Department and the Illinois Works Review Panel | ||||||
10 | conclude that the report submitted under this Section does not | ||||||
11 | meet or is unlikely to meet the minimum diversity goal under | ||||||
12 | paragraph (4) of subsection (a) within 12 months after filing | ||||||
13 | its report, or that the action plan was not followed, the | ||||||
14 | Department and the Illinois Works Review Panel shall recommend | ||||||
15 | that the action plan be revised to provide additional steps | ||||||
16 | and opportunities for minority participation. | ||||||
17 | (c) An applicable apprenticeship and training program, | ||||||
18 | approved by and registered with the U.S. Department of Labor's | ||||||
19 | Office of Apprenticeship, providing workers in a high hazard | ||||||
20 | facility or a contractor operating at high hazard facility | ||||||
21 | shall be deemed unfit to provide workers or operate at high | ||||||
22 | hazard facilities and may be subject to a penalty of up to one | ||||||
23 | year's prohibition from providing workers or operating at high | ||||||
24 | hazard facilities. If the Department and the Illinois Works | ||||||
25 | Review Panel conclude that the applicable apprenticeship and | ||||||
26 | training program, approved by and registered with the U.S. |
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1 | Department of Labor's Office of Apprenticeship, providing | ||||||
2 | workers in a high hazard facility or the contractor operating | ||||||
3 | at a high hazard facility failed to follow its action plan | ||||||
4 | under paragraph (5) of subsection (a) or the recommendations | ||||||
5 | to its action plan provided by the Department and the Illinois | ||||||
6 | Works Review Panel under subsection (b) within 12 months after | ||||||
7 | filing the entity's report, then the applicable apprenticeship | ||||||
8 | and training program or contractor shall be deemed unfit to | ||||||
9 | provide workers or operate at high hazard facilities and may | ||||||
10 | be subject to a penalty of up to one year's prohibition from | ||||||
11 | providing workers or operating at high hazard facilities. | ||||||
12 | (d) For reporting purposes, the jurisdiction is the | ||||||
13 | Illinois county where the applicable apprenticeship and | ||||||
14 | training program, approved by and registered with the U.S. | ||||||
15 | Department of Labor's Office of Apprenticeship, is located. | ||||||
16 | For a contractor, the jurisdiction is where the contractor's | ||||||
17 | workers perform the majority of work in a high hazard facility | ||||||
18 | within the last calendar year. | ||||||
19 | Section 10-25. Penalties; noncompliant reporting; | ||||||
20 | reinstatement. | ||||||
21 | (a) Except as provided in subsection (b), an owner or | ||||||
22 | operator who violates the requirements of this Act shall be | ||||||
23 | subject to a minimum civil penalty of $10,000 for each | ||||||
24 | violation. Each shift a violation of this Act occurs shall be | ||||||
25 | considered a separate violation. The penalty may be recovered |
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| |||||||
1 | in a civil action brought by the Director in any circuit court. | ||||||
2 | In the civil action, the Director shall be represented by the | ||||||
3 | Attorney General. All moneys received by the Department as | ||||||
4 | fees and civil penalties under this Act shall be deposited | ||||||
5 | into the Illinois Works Fund to be used to recruit, prescreen, | ||||||
6 | and provide preapprenticeship skills training for which | ||||||
7 | participants may attend free of charge and receive a stipend | ||||||
8 | to create a qualified, diverse pipeline of workers who are | ||||||
9 | prepared to work in high hazard facilities. | ||||||
10 | (b) Notwithstanding subsection (a), if the Department and | ||||||
11 | the Illinois Works Review Panel determine that there is a | ||||||
12 | violation of Section 10-21, the Department and the Illinois | ||||||
13 | Works Review Panel shall provide reasonable notice of | ||||||
14 | noncompliance to the violator within 90 days after the | ||||||
15 | violation and inform the violator that the violator has 45 | ||||||
16 | days to comply with Section 10-21 without penalty. If the | ||||||
17 | noncompliance is not remedied, the violator may be deemed | ||||||
18 | unfit to provide workers or operate at high hazard facilities | ||||||
19 | for a period of up to one year. If the Department and the | ||||||
20 | Illinois Works Review Panel determine that the violator has | ||||||
21 | remedied the violation and is in compliance with Section | ||||||
22 | 10-21, the Department shall have 45 days to reinstate the | ||||||
23 | authorization for the violator to provide workers or operate | ||||||
24 | at high hazard facilities. The Department and the Illinois | ||||||
25 | Works Review Panel may not unreasonably withhold reinstatement | ||||||
26 | under this subsection when the applicable apprenticeship and |
| |||||||
| |||||||
1 | training program, approved by and registered with the U.S. | ||||||
2 | Department of Labor's Office of Apprenticeship, providing | ||||||
3 | workers in high hazard facilities or the contractor operating | ||||||
4 | at high hazard facilities is found to be in compliance with | ||||||
5 | Section 10-21. | ||||||
6 | Section 10-97. Severability. The provisions of this Act | ||||||
7 | are severable under Section 1.31 of the Statute on Statutes. | ||||||
8 | ARTICLE 15. AMENDATORY PROVISIONS | ||||||
9 | Section 15-5. The Illinois Administrative Procedure Act is | ||||||
10 | amended by adding Section 5-45.8 as follows: | ||||||
11 | (5 ILCS 100/5-45.8 new) | ||||||
12 | Sec. 5-45.8. Emergency rulemaking. To provide for the | ||||||
13 | expeditious and timely implementation of the Investing in | ||||||
14 | Illinois Works Tax Credit Act, emergency rules implementing | ||||||
15 | the Investing in Illinois Works Tax Credit Act may be adopted | ||||||
16 | in accordance with Section 5-45 by the Department of Revenue, | ||||||
17 | in coordination with the Department of Labor and the | ||||||
18 | Department of Commerce and Economic Opportunity. The adoption | ||||||
19 | of emergency rules authorized by Section 5-45 and this Section | ||||||
20 | is deemed to be necessary for the public interest, safety, and | ||||||
21 | welfare. | ||||||
22 | This Section is repealed on January 1, 2026. |
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| |||||||
1 | Section 15-10. The Illinois Income Tax Act is amended by | ||||||
2 | changing Section 704A as follows: | ||||||
3 | (35 ILCS 5/704A) | ||||||
4 | Sec. 704A. Employer's return and payment of tax withheld. | ||||||
5 | (a) In general, every employer who deducts and withholds | ||||||
6 | or is required to deduct and withhold tax under this Act on or | ||||||
7 | after January 1, 2008 shall make those payments and returns as | ||||||
8 | provided in this Section. | ||||||
9 | (b) Returns. Every employer shall, in the form and manner | ||||||
10 | required by the Department, make returns with respect to taxes | ||||||
11 | withheld or required to be withheld under this Article 7 for | ||||||
12 | each quarter beginning on or after January 1, 2008, on or | ||||||
13 | before the last day of the first month following the close of | ||||||
14 | that quarter. | ||||||
15 | (c) Payments. With respect to amounts withheld or required | ||||||
16 | to be withheld on or after January 1, 2008: | ||||||
17 | (1) Semi-weekly payments. For each calendar year, each | ||||||
18 | employer who withheld or was required to withhold more | ||||||
19 | than $12,000 during the one-year period ending on June 30 | ||||||
20 | of the immediately preceding calendar year, payment must | ||||||
21 | be made: | ||||||
22 | (A) on or before each Friday of the calendar year, | ||||||
23 | for taxes withheld or required to be withheld on the | ||||||
24 | immediately preceding Saturday, Sunday, Monday, or |
| |||||||
| |||||||
1 | Tuesday; | ||||||
2 | (B) on or before each Wednesday of the calendar | ||||||
3 | year, for taxes withheld or required to be withheld on | ||||||
4 | the immediately preceding Wednesday, Thursday, or | ||||||
5 | Friday. | ||||||
6 | Beginning with calendar year 2011, payments made under | ||||||
7 | this paragraph (1) of subsection (c) must be made by | ||||||
8 | electronic funds transfer. | ||||||
9 | (2) Semi-weekly payments. Any employer who withholds | ||||||
10 | or is required to withhold more than $12,000 in any | ||||||
11 | quarter of a calendar year is required to make payments on | ||||||
12 | the dates set forth under item (1) of this subsection (c) | ||||||
13 | for each remaining quarter of that calendar year and for | ||||||
14 | the subsequent calendar year.
| ||||||
15 | (3) Monthly payments. Each employer, other than an | ||||||
16 | employer described in items (1) or (2) of this subsection, | ||||||
17 | shall pay to the Department, on or before the 15th day of | ||||||
18 | each month the taxes withheld or required to be withheld | ||||||
19 | during the immediately preceding month. | ||||||
20 | (4) Payments with returns. Each employer shall pay to | ||||||
21 | the Department, on or before the due date for each return | ||||||
22 | required to be filed under this Section, any tax withheld | ||||||
23 | or required to be withheld during the period for which the | ||||||
24 | return is due and not previously paid to the Department. | ||||||
25 | (d) Regulatory authority. The Department may, by rule: | ||||||
26 | (1) Permit employers, in lieu of the requirements of |
| |||||||
| |||||||
1 | subsections (b) and (c), to file annual returns due on or | ||||||
2 | before January 31 of the year for taxes withheld or | ||||||
3 | required to be withheld during the previous calendar year | ||||||
4 | and, if the aggregate amounts required to be withheld by | ||||||
5 | the employer under this Article 7 (other than amounts | ||||||
6 | required to be withheld under Section 709.5) do not exceed | ||||||
7 | $1,000 for the previous calendar year, to pay the taxes | ||||||
8 | required to be shown on each such return no later than the | ||||||
9 | due date for such return. | ||||||
10 | (2) Provide that any payment required to be made under | ||||||
11 | subsection (c)(1) or (c)(2) is deemed to be timely to the | ||||||
12 | extent paid by electronic funds transfer on or before the | ||||||
13 | due date for deposit of federal income taxes withheld | ||||||
14 | from, or federal employment taxes due with respect to, the | ||||||
15 | wages from which the Illinois taxes were withheld. | ||||||
16 | (3) Designate one or more depositories to which | ||||||
17 | payment of taxes required to be withheld under this | ||||||
18 | Article 7 must be paid by some or all employers. | ||||||
19 | (4) Increase the threshold dollar amounts at which | ||||||
20 | employers are required to make semi-weekly payments under | ||||||
21 | subsection (c)(1) or (c)(2). | ||||||
22 | (e) Annual return and payment. Every employer who deducts | ||||||
23 | and withholds or is required to deduct and withhold tax from a | ||||||
24 | person engaged in domestic service employment, as that term is | ||||||
25 | defined in Section 3510 of the Internal Revenue Code, may | ||||||
26 | comply with the requirements of this Section with respect to |
| |||||||
| |||||||
1 | such employees by filing an annual return and paying the taxes | ||||||
2 | required to be deducted and withheld on or before the 15th day | ||||||
3 | of the fourth month following the close of the employer's | ||||||
4 | taxable year. The Department may allow the employer's return | ||||||
5 | to be submitted with the employer's individual income tax | ||||||
6 | return or to be submitted with a return due from the employer | ||||||
7 | under Section 1400.2 of the Unemployment Insurance Act. | ||||||
8 | (f) Magnetic media and electronic filing. With respect to | ||||||
9 | taxes withheld in calendar years prior to 2017, any W-2 Form | ||||||
10 | that, under the Internal Revenue Code and regulations | ||||||
11 | promulgated thereunder, is required to be submitted to the | ||||||
12 | Internal Revenue Service on magnetic media or electronically | ||||||
13 | must also be submitted to the Department on magnetic media or | ||||||
14 | electronically for Illinois purposes, if required by the | ||||||
15 | Department. | ||||||
16 | With respect to taxes withheld in 2017 and subsequent | ||||||
17 | calendar years, the Department may, by rule, require that any | ||||||
18 | return (including any amended return) under this Section and | ||||||
19 | any W-2 Form that is required to be submitted to the Department | ||||||
20 | must be submitted on magnetic media or electronically. | ||||||
21 | The due date for submitting W-2 Forms shall be as | ||||||
22 | prescribed by the Department by rule. | ||||||
23 | (g) For amounts deducted or withheld after December 31, | ||||||
24 | 2009, a taxpayer who makes an election under subsection (f) of | ||||||
25 | Section 5-15 of the Economic Development for a Growing Economy | ||||||
26 | Tax Credit Act for a taxable year shall be allowed a credit |
| |||||||
| |||||||
1 | against payments due under this Section for amounts withheld | ||||||
2 | during the first calendar year beginning after the end of that | ||||||
3 | taxable year equal to the amount of the credit for the | ||||||
4 | incremental income tax attributable to full-time employees of | ||||||
5 | the taxpayer awarded to the taxpayer by the Department of | ||||||
6 | Commerce and Economic Opportunity under the Economic | ||||||
7 | Development for a Growing Economy Tax Credit Act for the | ||||||
8 | taxable year and credits not previously claimed and allowed to | ||||||
9 | be carried forward under Section 211(4) of this Act as | ||||||
10 | provided in subsection (f) of Section 5-15 of the Economic | ||||||
11 | Development for a Growing Economy Tax Credit Act. The credit | ||||||
12 | or credits may not reduce the taxpayer's obligation for any | ||||||
13 | payment due under this Section to less than zero. If the amount | ||||||
14 | of the credit or credits exceeds the total payments due under | ||||||
15 | this Section with respect to amounts withheld during the | ||||||
16 | calendar year, the excess may be carried forward and applied | ||||||
17 | against the taxpayer's liability under this Section in the | ||||||
18 | succeeding calendar years as allowed to be carried forward | ||||||
19 | under paragraph (4) of Section 211 of this Act. The credit or | ||||||
20 | credits shall be applied to the earliest year for which there | ||||||
21 | is a tax liability. If there are credits from more than one | ||||||
22 | taxable year that are available to offset a liability, the | ||||||
23 | earlier credit shall be applied first. Each employer who | ||||||
24 | deducts and withholds or is required to deduct and withhold | ||||||
25 | tax under this Act and who retains income tax withholdings | ||||||
26 | under subsection (f) of Section 5-15 of the Economic |
| |||||||
| |||||||
1 | Development for a Growing Economy Tax Credit Act must make a | ||||||
2 | return with respect to such taxes and retained amounts in the | ||||||
3 | form and manner that the Department, by rule, requires and pay | ||||||
4 | to the Department or to a depositary designated by the | ||||||
5 | Department those withheld taxes not retained by the taxpayer. | ||||||
6 | For purposes of this subsection (g), the term taxpayer shall | ||||||
7 | include taxpayer and members of the taxpayer's unitary | ||||||
8 | business group as defined under paragraph (27) of subsection | ||||||
9 | (a) of Section 1501 of this Act. This Section is exempt from | ||||||
10 | the provisions of Section 250 of this Act. No credit awarded | ||||||
11 | under the Economic Development for a Growing Economy Tax | ||||||
12 | Credit Act for agreements entered into on or after January 1, | ||||||
13 | 2015 may be credited against payments due under this Section. | ||||||
14 | (h) An employer may claim a credit against payments due | ||||||
15 | under this Section for amounts withheld during the first | ||||||
16 | calendar year ending after the date on which a tax credit | ||||||
17 | certificate was issued under Section 35 of the Small Business | ||||||
18 | Job Creation Tax Credit Act. The credit shall be equal to the | ||||||
19 | amount shown on the certificate, but may not reduce the | ||||||
20 | taxpayer's obligation for any payment due under this Section | ||||||
21 | to less than zero. If the amount of the credit exceeds the | ||||||
22 | total payments due under this Section with respect to amounts | ||||||
23 | withheld during the calendar year, the excess may be carried | ||||||
24 | forward and applied against the taxpayer's liability under | ||||||
25 | this Section in the 5 succeeding calendar years. The credit | ||||||
26 | shall be applied to the earliest year for which there is a tax |
| |||||||
| |||||||
1 | liability. If there are credits from more than one calendar | ||||||
2 | year that are available to offset a liability, the earlier | ||||||
3 | credit shall be applied first. This Section is exempt from the | ||||||
4 | provisions of Section 250 of this Act. | ||||||
5 | (i) Each employer with 50 or fewer full-time equivalent | ||||||
6 | employees during the reporting period may claim a credit | ||||||
7 | against the payments due under this Section for each qualified | ||||||
8 | employee in an amount equal to the maximum credit allowable. | ||||||
9 | The credit may be taken against payments due for reporting | ||||||
10 | periods that begin on or after January 1, 2020, and end on or | ||||||
11 | before December 31, 2027. An employer may not claim a credit | ||||||
12 | for an employee who has worked fewer than 90 consecutive days | ||||||
13 | immediately preceding the reporting period; however, such | ||||||
14 | credits may accrue during that 90-day period and be claimed | ||||||
15 | against payments under this Section for future reporting | ||||||
16 | periods after the employee has worked for the employer at | ||||||
17 | least 90 consecutive days. In no event may the credit exceed | ||||||
18 | the employer's liability for the reporting period. Each | ||||||
19 | employer who deducts and withholds or is required to deduct | ||||||
20 | and withhold tax under this Act and who retains income tax | ||||||
21 | withholdings under this subsection must make a return with | ||||||
22 | respect to such taxes and retained amounts in the form and | ||||||
23 | manner that the Department, by rule, requires and pay to the | ||||||
24 | Department or to a depositary designated by the Department | ||||||
25 | those withheld taxes not retained by the employer. | ||||||
26 | For each reporting period, the employer may not claim a |
| |||||||
| |||||||
1 | credit or credits for more employees than the number of | ||||||
2 | employees making less than the minimum or reduced wage for the | ||||||
3 | current calendar year during the last reporting period of the | ||||||
4 | preceding calendar year. Notwithstanding any other provision | ||||||
5 | of this subsection, an employer shall not be eligible for | ||||||
6 | credits for a reporting period unless the average wage paid by | ||||||
7 | the employer per employee for all employees making less than | ||||||
8 | $55,000 during the reporting period is greater than the | ||||||
9 | average wage paid by the employer per employee for all | ||||||
10 | employees making less than $55,000 during the same reporting | ||||||
11 | period of the prior calendar year. | ||||||
12 | For purposes of this subsection (i): | ||||||
13 | "Compensation paid in Illinois" has the meaning ascribed | ||||||
14 | to that term under Section 304(a)(2)(B) of this Act. | ||||||
15 | "Employer" and "employee" have the meaning ascribed to | ||||||
16 | those terms in the Minimum Wage Law, except that "employee" | ||||||
17 | also includes employees who work for an employer with fewer | ||||||
18 | than 4 employees. Employers that operate more than one | ||||||
19 | establishment pursuant to a franchise agreement or that | ||||||
20 | constitute members of a unitary business group shall aggregate | ||||||
21 | their employees for purposes of determining eligibility for | ||||||
22 | the credit. | ||||||
23 | "Full-time equivalent employees" means the ratio of the | ||||||
24 | number of paid hours during the reporting period and the | ||||||
25 | number of working hours in that period. | ||||||
26 | "Maximum credit" means the percentage listed below of the |
| |||||||
| |||||||
1 | difference between the amount of compensation paid in Illinois | ||||||
2 | to employees who are paid not more than the required minimum | ||||||
3 | wage reduced by the amount of compensation paid in Illinois to | ||||||
4 | employees who were paid less than the current required minimum | ||||||
5 | wage during the reporting period prior to each increase in the | ||||||
6 | required minimum wage on January 1. If an employer pays an | ||||||
7 | employee more than the required minimum wage and that employee | ||||||
8 | previously earned less than the required minimum wage, the | ||||||
9 | employer may include the portion that does not exceed the | ||||||
10 | required minimum wage as compensation paid in Illinois to | ||||||
11 | employees who are paid not more than the required minimum | ||||||
12 | wage. | ||||||
13 | (1) 25% for reporting periods beginning on or after | ||||||
14 | January 1, 2022 2020 and ending on or before December 31, | ||||||
15 | 2022 2020 ; | ||||||
16 | (2) 21% for reporting periods beginning on or after | ||||||
17 | January 1, 2023 2021 and ending on or before December 31, | ||||||
18 | 2023 2021 ; | ||||||
19 | (3) 17% for reporting periods beginning on or after | ||||||
20 | January 1, 2024 2022 and ending on or before December 31, | ||||||
21 | 2024 2022 ; | ||||||
22 | (4) 13% for reporting periods beginning on or after | ||||||
23 | January 1, 2025 2023 and ending on or before December 31, | ||||||
24 | 2025 2023 ; | ||||||
25 | (5) 9% for reporting periods beginning on or after | ||||||
26 | January 1, 2026 2024 and ending on or before December 31, |
| |||||||
| |||||||
1 | 2026 2024 ; | ||||||
2 | (6) 5% for reporting periods beginning on or after | ||||||
3 | January 1, 2027 2025 and ending on or before December 31, | ||||||
4 | 2027 2025 . | ||||||
5 | The amount computed under this subsection may continue to | ||||||
6 | be claimed for reporting periods beginning on or after January | ||||||
7 | 1, 2028 2026 and: | ||||||
8 | (A) ending on or before December 31, 2028 2026 for | ||||||
9 | employers with more than 5 employees; or | ||||||
10 | (B) ending on or before December 31, 2029 2027 for | ||||||
11 | employers with no more than 5 employees. | ||||||
12 | "Qualified employee" means an employee who is paid not | ||||||
13 | more than the required minimum wage and has an average wage | ||||||
14 | paid per hour by the employer during the reporting period | ||||||
15 | equal to or greater than his or her average wage paid per hour | ||||||
16 | by the employer during each reporting period for the | ||||||
17 | immediately preceding 12 months. A new qualified employee is | ||||||
18 | deemed to have earned the required minimum wage in the | ||||||
19 | preceding reporting period. | ||||||
20 | "Reporting period" means the quarter for which a return is | ||||||
21 | required to be filed under subsection (b) of this Section. | ||||||
22 | (j) Each owner or operator, as defined in the Illinois | ||||||
23 | Hazardous Materials Workforce Training Act, who receives a tax | ||||||
24 | credit under the Investing in Illinois Works Tax Credit Act is | ||||||
25 | entitled to a credit against payments due under this Section | ||||||
26 | as provided in the Investing in Illinois Works Tax Credit Act. |
| |||||||
| |||||||
1 | (Source: P.A. 100-303, eff. 8-24-17; 100-511, eff. 9-18-17; | ||||||
2 | 100-863, eff. 8-14-18; 101-1, eff. 2-19-19.) | ||||||
3 | ARTICLE 99. EFFECTIVE DATE
| ||||||
4 | Section 99-99. Effective date. This Act takes effect | ||||||
5 | January 1, 2022.".
|