HB5173 104TH GENERAL ASSEMBLY

LRB104 19790 KTG 33240 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5173

Introduced 2/10/2026, by Rep. Theresa Mah

SYNOPSIS AS INTRODUCED:

20 ILCS 1305/1-95
20 ILCS 4095/16

Amends the Department of Human Services Act. In provisions concerning the transition program grants to assist eligible community agencies with active or pending Section 14(c) certificates to transition away from subminimum wages for workers with disabilities, requires the Department of Human Services to ensure equitable access to transition grants for all eligible holders of Section 14(c) certificates by (i) avoiding the concentration of funding among a limited number of grant recipients and (ii) promoting equity in the distribution of funds by being inclusive of all geographic regions of the State, provider sizes, and transition needs. Provides that every applicant that applies for grant funds and meets the grant criteria established by the Department shall be awarded a grant in an amount based upon the Department's funding criteria. Requires grant recipients to submit progress reports to the Department twice annually on a form developed by the Department in consultation with the Illinois Council on Developmental Disabilities. Sets forth the information required in the reports. Requires the Department to aggregate data collected from the reports and make it publicly available on an annual basis. Amends the Employment and Economic Opportunity for Persons with Disabilities Task Force Act. Requires the Department to ensure that there is project management for statewide implementation of the multi-year plan under the Dignity in Pay Act, Public Act 103-1060, through December 31, 2029. Sets forth a list of project management responsibilities. Requires the Department to ensure the availability of ongoing technical assistance to eligible Section 14(c) certificate holders throughout the transition period ending on December 31, 2029. Sets forth the type of technical assistance to be provided. Provides that funds appropriated for Section 14(c) transition purposes may be used for (i) transition program grants to eligible providers, (ii) statewide project management and coordination, and (iii) technical assistance and capacity-building supports. Effective immediately.

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Department of Human Services Act is amended by changing Section 1-95 as follows:

(20 ILCS 1305/1-95)

Sec. 1-95. Transition program grants.

(a) The Department of Human Services shall establish a Section 14(c) transition program to award transition grants to eligible community agencies with active or pending Section 14(c) certificates to aid in the transition away from subminimum wages for workers with disabilities. The goal of Section 14(c) transition program grants is to develop new opportunities and programs and grow capacity to respond to the needs of individuals with disabilities in their geographic area, including, but not limited to, supported employment, customized employment, self-employment, entrepreneurship, and diverse day programs that support meaningful days, choice, and community integration. The Department shall ensure equitable access to transition grants for all eligible holders of Section 14(c) certificates by (i) avoiding the concentration of funding among a limited number of grant recipients and (ii) promoting equity in the distribution of funds by being inclusive of all geographic regions of the State, provider sizes, and transition needs. Every applicant that applies for grant funds and meets the grant criteria established by the Department shall be awarded a grant in an amount based upon the Department's funding criteria.

(b) Eligibility for Section 14(c) transition program grants shall be contingent upon community agencies submitting a transition plan. The Department shall provide example plans that community agencies may adapt. By January 1, 2025, the transition program grant funds shall be awarded in compliance with the Grant Accountability and Transparency Act.

(c) Grants shall be made by the Department to eligible holders of Section 14(c) certificates, consistent with the Grant Accountability and Transparency Act, to assist workers with disabilities who are working for subminimum wages to transition to competitive integrated employment and to support eligible Section 14(c) certificate holders. Grant funding shall be used to:

(1) provide competitive integrated employment;

(2) assist individuals with disabilities who were employed at subminimum wages to find and retain competitive integrated employment; or

(3) provide integrated community participation and wraparound services for individuals with disabilities who were employed at subminimum wages.

(c-5) As a condition of receiving a transition grant under this Section each grant recipient shall submit progress reports to the Department twice annually on a form developed by the Department in consultation with the Illinois Council on Developmental Disabilities. The first report shall be submitted no later than October 31st and the second report shall be submitted no later than April 30th of each grant year. The progress report shall include, at a minimum:

(1) the number of people served who were previously paid subminimum wages;

(2) employment outcomes, including competitive integrated employment, supported employment, and non-work community participation;

(3) wage data before and after transition activities;

(4) hours worked and employment retention indicators;

(5) types of services and supports provided using grant funds;

(6) barriers encountered and corrective actions taken; and

(7) expenditures aligned to approved grant activities.

(c-6) The Department shall aggregate data collected under subsection (c-5) to support an analysis of statewide transition progress and alignment with the multi-year plan required under Section 16 of the Employment and Economic Opportunity for Persons with Disabilities Task Force Act. Aggregated non-identifiable data shall be made available to the public beginning January 1, 2027, and every January 1 thereafter.

(d) Beginning on January 1, 2026, the Department of Human Services shall provide an annual status report to the Governor and the General Assembly, incorporating data from each grant recipient, to demonstrate progress toward identified benchmarks.

(Source: P.A. 103-1060, eff. 1-21-25.)

Section 10. The Employment and Economic Opportunity for Persons with Disabilities Task Force Act is amended by changing Section 16 as follows:

(20 ILCS 4095/16)

Sec. 16. Multi-year plan toward elimination of Section 14(c) certificates. By no later than July 1, 2025, the Employment and Economic Opportunity for Persons with Disabilities Task Force, with the Illinois Council on Developmental Disabilities and an academic partner with relevant subject matter expertise, shall create a multi-year plan of recommended actions, outcomes, and benchmarks in accordance with paragraphs (1) through (3) to help the State successfully eliminate on and after December 31, 2029 the use of certificates authorized under Section 14(c) of the federal Fair Labor Standards Act of 1938.

(1) The multi-year plan shall include, but not be limited to, all of the following:

(A) Identification, gathering, and analytics of data to inform the work of the Task Force, including, but not limited to:

(i) the total number of entities utilizing Section 14(c) certificates;

(ii) the total number of persons with disabilities who are paid subminimum wages and the total number of persons with disabilities who are paid at least the applicable minimum wages;

(iii) the total number of persons with disabilities working in facility-based employment paid at or above minimum wage.

(B) Recommended actions, including additional statutory, regulatory, or policy measures, including State-supported activities to assist providers in employing people with disabilities.

(C) Recommended measurable outcomes for each year of the plan.

(D) Recommended benchmarks for each year of the plan.

(2) In developing the multi-year plan, the Task Force shall consider:

(A) The total available approximate number of people with disabilities paid subminimum wages who want to transition to competitive integrated employment with supports.

(B) The total available approximate number of people with disabilities who do not wish to pursue competitive integrated employment and who would benefit from alternative meaningful day opportunities.

(C) Existing State employment programs designed to support workers with disabilities.

(D) An evaluation of capacity limits in providers' contracts with the Department of Human Services' Division of Rehabilitation Services and Division of Developmental Disabilities.

(E) The personal choice of persons with disabilities regarding employment goals and planning in person-centered planning processes.

(F) The use of existing and emerging technologies that could assist persons with disabilities in achieving employment goals.

(G) The impact of access to reliable transportation on achieving employment goals and ongoing employment.

(H) An analysis that shall include data on:

(i) the activities of youth with disabilities within one year of exiting high school;

(ii) the count of schools holding Student Transition Employment Program and Pre-Employment Transition Services contracts with the Division of Rehabilitation Services that includes the count of students with ongoing cases who transition to adult services;

(iii) the number of students 14 1/2 through 22 years of age with individualized education plans indicating a need for home and community-based adult services.

(I) The potential changes to State law, regulations, or policies to protect means-tested benefits for persons with disabilities as they pursue employment-related goals.

(J) Dissemination of information regarding employment supports and benefits to individuals with disabilities, consumers of public services, employers, service providers, and State and local agency staff. Information shall include the Ticket to Work program, Work Incentives Planning and Assistance Programs, Illinois ABLE, and Health Benefits for Workers with Disabilities.

(K) The education and training needs of staff working in community-based provider agencies toward advancing competitive, integrated work options for persons with disabilities, in areas including, but not limited to:

(i) employment options;

(ii) non-employment options;

(iii) home and community-based services and supports;

(iv) self-advocacy;

(v) benefits planning;

(vi) asset building;

(vii) assistive technology;

(viii) certification programs; and

(ix) mental health services and supports.

(L) Agreements between State agencies and community-based providers that promote flexibility and allow for expansion.

(M) Ongoing review of rates and reimbursements that support various employment programs for persons with disabilities, including competitive, integrated employment, customized employment, and supported employment.

(N) The need to further engage the private business community to hire persons with disabilities through incentives that may include specialized educational opportunities, distribution of literature at points of interaction with government licensing agencies, and tax incentives to hiring persons with disabilities.

(O) The availability and need for adequate benefits planning services for workers with disabilities.

(P) The availability and need for meaningful day services for individuals with disabilities who prefer not to work.

(Q) Enhanced service and support needs of aging adults with developmental disabilities who have been engaged in subminimum wage work, including, but not limited to, activities of daily living, behavioral supports, and medical supports, including administration of medications while participating in employment supports and community day services through the Department of Human Services.

(3) In developing the multi-year plan, the Task Force shall consult with employment service providers, people with disabilities, disability trade associations, and disability advocacy organizations.

(4) The Task Force shall submit the multi-year plan to the Governor and the General Assembly by no later than July 1, 2025. Annual reports on implementation shall be required by no later than January 1 of each subsequent year through January 1, 2030.

(5) The Task Force shall provide annual updates to the Governor and the General Assembly through January 1, 2035 on the employment of persons with disabilities in Illinois.

(6) The Governor shall appoint at least 2 additional members to the Task Force who represent organizations that are current Section 14(c) certificate holders. The Director of Labor, or the Director's designee, shall serve on the Task Force in a non-voting, advisory capacity until July 1, 2025.

(7) The Department of Human Services shall ensure that there is project management for statewide implementation of the multi-year plan under the Dignity in Pay Act, Public Act 103-1060, through December 31, 2029. Project management responsibilities shall include: (i) the development and maintenance of a comprehensive implementation plan with milestones; (ii) coordination across State agencies, service providers, and technical assistance entities; (iii) monitoring progress toward achieving statutory benchmarks; (iv) the identification and mitigation of risk; and (v) the preparation of required reports to the Governor and General Assembly in partnership with the Illinois Council on Developmental Disabilities and the Employment and Economic Opportunity for Persons with Disabilities Task Force.

Project management functions may be administered through an intergovernmental agreement or a grant with an entity that demonstrates expertise in developmental disability systems transformation.

(8) The Department of Human Services shall ensure the availability of ongoing technical assistance to eligible Section 14(c) certificate holders throughout the transition period ending on December 31, 2029. Technical assistance shall include (i) individualized provider coaching, (ii) cohort-based learning opportunities, (iii) open office hours for real-time problem-solving, (iv) support for financial modeling, service redesign, and workforce development, and (v) assistance to State agencies to align policies and systems with transition goals and recommendations outlined in the multi-year plan. Technical assistance shall be provided by entities with demonstrated expertise in disability employment systems and provider transformation.

(9) Funds appropriated for Section 14(c) transition purposes may be used for (i) transition program grants to eligible providers, (ii) statewide project management and coordination, and (iii) technical assistance and capacity-building supports. The Department shall balance investments to ensure provider participation, statewide consistency, and long-term system sustainability.

(Source: P.A. 103-1060, eff. 1-21-25.)

Section 99. Effective date. This Act takes effect upon becoming law.