HB5265 104TH GENERAL ASSEMBLY

LRB104 20123 HLH 33574 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5265

Introduced 2/10/2026, by Rep. Elizabeth "Lisa" Hernandez

SYNOPSIS AS INTRODUCED:

30 ILCS 105/5.1038 new
30 ILCS 559/20-15
30 ILCS 559/20-17 new
110 ILCS 805/2-28 new

Amends the Illinois Works Job Program Act. Establishes the Illinois Municipal Works Preapprenticeship and Service Trainee Program to be administered by the Department of Commerce and Economic Opportunity. Provides that the goal of the Program is to create a network of community-based organizations within the region served by Morton College that will recruit, prescreen, and provide preapprenticeship and service trainee skills training to create a qualified, diverse pipeline of workers who are prepared for careers in the construction and building trades and in the union service trades that have collective bargaining agreements with municipalities, the health care sector, and other service sectors. Creates the Illinois Municipal Works Preapprenticeship and Service Trainee Fund. Provides that the Fund shall be administered by the Department. Provides that the Fund shall be used to provide funding directly to Morton College and, through Morton College, to trade unions, municipal employers, health care employers, and other service sector employers who are associated with the Program. Provides that every July 1, $250,000 shall be transferred from the Rebuild Illinois Projects Fund to the Illinois Municipal Works Preapprenticeship and Service Trainee Fund. Sets forth an annual report for Morton College. Provides for bid credits for employing apprentices who have completed the Program. Amends the Public Community College Act. Provides that the Illinois Community College Board shall monitor the Program. Provides that, by no later than July 1, 2031, the State Board shall recommend legislation to the General Assembly that will, based upon the experience of Morton College, establish and fund an Illinois Pipeline for the Advancement of the Union Service Workforce Program. Effective immediately.

A BILL FOR

AN ACT concerning finance.

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

Section 5. The State Finance Act is amended by adding Section 5.1038 as follows:

(30 ILCS 105/5.1038 new)

Sec. 5.1038. The Illinois Municipal Works Preapprenticeship and Service Trainee Fund.

Section 10. The Illinois Works Jobs Program Act is amended by changing Section 20-15 and by adding Section 20-17 as follows:

(30 ILCS 559/20-15)

(Text of Section before amendment by P.A. 104-458)

Sec. 20-15. Illinois Works Preapprenticeship Program; Illinois Works Bid Credit Program.

(a) The Illinois Works Preapprenticeship Program is established and shall be administered by the Department. The goal of the Illinois Works Preapprenticeship Program is to create a network of community-based organizations throughout the State that will recruit, prescreen, and provide preapprenticeship skills training, for which participants may attend free of charge and receive a stipend, to create a qualified, diverse pipeline of workers who are prepared for careers in the construction and building trades. Upon completion of the Illinois Works Preapprenticeship Program, the candidates will be skilled and work-ready.

(b) There is created the Illinois Works Fund, a special fund in the State treasury. The Illinois Works Fund shall be administered by the Department. The Illinois Works Fund shall be used to provide funding for community-based organizations throughout the State. In addition to any other transfers that may be provided for by law, on and after July 1, 2019 at the direction of the Director of the Governor's Office of Management and Budget, the State Comptroller shall direct and the State Treasurer shall transfer amounts not exceeding a total of $50,000,000 from the Rebuild Illinois Projects Fund to the Illinois Works Fund.

(b-5) In addition to any other transfers that may be provided for by law, beginning July 1, 2024 and each July 1 thereafter, or as soon thereafter as practical, the State Comptroller shall direct and the State Treasurer shall transfer $27,500,000 from the Capital Projects Fund to the Illinois Works Fund.

(c) Each community-based organization that receives funding from the Illinois Works Fund shall provide an annual report to the Illinois Works Review Panel by April 1 of each calendar year. The annual report shall include the following information:

(1) a description of the community-based organization's recruitment, screening, and training efforts;

(2) the number of individuals who apply to, participate in, and complete the community-based organization's program, broken down by race, gender, age, and veteran status; and

(3) the number of the individuals referenced in item (2) of this subsection who are initially accepted and placed into apprenticeship programs in the construction and building trades.

(d) The Department shall create and administer the Illinois Works Bid Credit Program that shall provide economic incentives, through bid credits, to encourage contractors and subcontractors to provide contracting and employment opportunities to historically underrepresented populations in the construction industry.

The Illinois Works Bid Credit Program shall allow contractors and subcontractors to earn bid credits for use toward future bids for public works projects contracted by the State or an agency of the State in order to increase the chances that the contractor and the subcontractors will be selected.

Contractors or subcontractors may be eligible to earn bid credits for employing apprentices who have completed the Illinois Works Preapprenticeship Program or the Illinois Municipal Works Preapprenticeship and Service Trainee Program. Contractors or subcontractors shall earn bid credits at a rate established by the Department and based on labor hours worked by apprentices who have completed the Illinois Works Preapprenticeship Program or the Illinois Municipal Works Preapprenticeship and Service Trainee Program. In order to earn bid credits, contractors and subcontractors shall provide the Department with certified payroll documenting the hours performed by apprentices who have completed the Illinois Works Preapprenticeship Program or the Illinois Municipal Works Preapprenticeship and Service Trainee Program. Contractors and subcontractors can use bid credits toward future bids for public works projects contracted or funded by the State or an agency of the State in order to increase the likelihood of being selected as the contractor for the public works project toward which they have applied the bid credit. The Department shall establish the rate by rule and shall publish it on the Department's website. The rule may include maximum bid credits allowed per contractor, per subcontractor, per apprentice, per bid, or per year.

The Illinois Works Credit Bank is hereby created and shall be administered by the Department. The Illinois Works Credit Bank shall track the bid credits.

A contractor or subcontractor who has been awarded bid credits under any other State program for employing apprentices who have completed the Illinois Works Preapprenticeship Program is not eligible to receive bid credits under the Illinois Works Bid Credit Program relating to the same contract.

The Department shall report to the Illinois Works Review Panel the following: (i) the number of bid credits awarded by the Department; (ii) the number of bid credits submitted by the contractor or subcontractor to the agency administering the public works contract; and (iii) the number of bid credits accepted by the agency for such contract. Any agency that awards bid credits pursuant to the Illinois Works Credit Bank Program shall report to the Department the number of bid credits it accepted for the public works contract.

Upon a finding that a contractor or subcontractor has reported falsified records to the Department in order to fraudulently obtain bid credits, the Department may bar the contractor or subcontractor from participating in the Illinois Works Bid Credit Program and may suspend the contractor or subcontractor from bidding on or participating in any public works project. False or fraudulent claims for payment relating to false bid credits may be subject to damages and penalties under applicable law.

(e) The Department shall adopt any rules deemed necessary to implement this Section. In order to provide for the expeditious and timely implementation of this Act, the Department may adopt emergency rules. The adoption of emergency rules authorized by this subsection is deemed to be necessary for the public interest, safety, and welfare.

(Source: P.A. 103-8, eff. 6-7-23; 103-305, eff. 7-28-23; 103-588, eff. 6-5-24; 103-605, eff. 7-1-24; 104-2, eff. 6-16-25.)

(Text of Section after amendment by P.A. 104-458)

Sec. 20-15. Illinois Works Preapprenticeship Program; Illinois Works Bid Credit Program.

(a) The Illinois Works Preapprenticeship Program is established and shall be administered by the Department. The goal of the Illinois Works Preapprenticeship Program is to create a network of community-based organizations throughout the State that will recruit, prescreen, and provide preapprenticeship skills training, for which participants may attend free of charge and receive a stipend, to create a qualified, diverse pipeline of workers who are prepared for careers in the construction and building trades. Upon completion of the Illinois Works Preapprenticeship Program, the candidates will be skilled and work-ready.

(b) There is created the Illinois Works Fund, a special fund in the State treasury. The Illinois Works Fund shall be administered by the Department. The Illinois Works Fund shall be used to provide funding for community-based organizations throughout the State. In addition to any other transfers that may be provided for by law, on and after July 1, 2019 at the direction of the Director of the Governor's Office of Management and Budget, the State Comptroller shall direct and the State Treasurer shall transfer amounts not exceeding a total of $50,000,000 from the Rebuild Illinois Projects Fund to the Illinois Works Fund.

(b-5) In addition to any other transfers that may be provided for by law, beginning July 1, 2024 and each July 1 thereafter, or as soon thereafter as practical, the State Comptroller shall direct and the State Treasurer shall transfer $27,500,000 from the Capital Projects Fund to the Illinois Works Fund.

(c) Each community-based organization that receives funding from the Illinois Works Fund shall provide an annual report to the Illinois Works Review Panel by April 1 of each calendar year. The annual report shall include the following information:

(1) a description of the community-based organization's recruitment, screening, and training efforts;

(2) the number of individuals who apply to, participate in, and complete the community-based organization's program, broken down by race, gender, age, and veteran status; and

(3) the number of the individuals referenced in item (2) of this subsection who are initially accepted and placed into apprenticeship programs in the construction and building trades.

(d) The Department shall create and administer the Illinois Works Bid Credit Program that shall provide economic incentives, through bid credits, to encourage contractors and subcontractors to provide contracting and employment opportunities to historically underrepresented populations in the construction industry.

The Illinois Works Bid Credit Program shall allow contractors and subcontractors to earn bid credits for use toward future bids for public works projects contracted by the State or an agency of the State in order to increase the chances that the contractor and the subcontractors will be selected.

Contractors or subcontractors may be eligible to earn bid credits for employing apprentices who have been verified by the Department to have completed the Illinois Works Preapprenticeship Program, the Climate Works Preapprenticeship Program, or the Highway Construction Careers Training Program, or the Illinois Municipal Works Preapprenticeship and Service Trainee Program. Contractors or subcontractors shall earn bid credits at a rate established by the Department and based on labor hours worked by apprentices who have been verified by the Department to have completed the Illinois Works Preapprenticeship Program, the Climate Works Preapprenticeship Program, or the Highway Construction Careers Training Program, or the Illinois Municipal Works Preapprenticeship and Service Trainee Program. In order to earn bid credits, contractors and subcontractors shall provide the Department with certified payroll documenting the hours performed by apprentices who have been verified by the Department to have completed the Illinois Works Preapprenticeship Program, the Climate Works Preapprenticeship Program, or the Highway Construction Careers Training Program, or the Illinois Municipal Works Preapprenticeship and Service Trainee Program. Contractors and subcontractors can use bid credits toward future bids for public works projects contracted or funded by the State or an agency of the State in order to increase the likelihood of being selected as the contractor for the public works project toward which they have applied the bid credit. The Department shall establish the rate by rule and shall publish it on the Department's website. The rule may include maximum bid credits allowed per contractor, per subcontractor, per apprentice, per bid, or per year.

The Illinois Works Credit Bank is hereby created and shall be administered by the Department. The Illinois Works Credit Bank shall track the bid credits.

A contractor or subcontractor who has been awarded bid credits under any other State program for employing apprentices who have completed the Illinois Works Preapprenticeship Program is not eligible to receive bid credits under the Illinois Works Bid Credit Program relating to the same contract.

The Department shall report to the Illinois Works Review Panel the following: (i) the number of bid credits awarded by the Department; (ii) the number of bid credits submitted by the contractor or subcontractor to the agency administering the public works contract; and (iii) the number of bid credits accepted by the agency for such contract. Any agency that awards bid credits pursuant to the Illinois Works Credit Bank Program shall report to the Department the number of bid credits it accepted for the public works contract.

Upon a finding that a contractor or subcontractor has reported falsified records to the Department in order to fraudulently obtain bid credits, the Department may bar the contractor or subcontractor from participating in the Illinois Works Bid Credit Program and may suspend the contractor or subcontractor from bidding on or participating in any public works project. False or fraudulent claims for payment relating to false bid credits may be subject to damages and penalties under applicable law.

(e) The Department shall adopt any rules deemed necessary to implement this Section. In order to provide for the expeditious and timely implementation of this Act, the Department may adopt emergency rules. The adoption of emergency rules authorized by this subsection is deemed to be necessary for the public interest, safety, and welfare.

(Source: P.A. 103-8, eff. 6-7-23; 103-305, eff. 7-28-23; 103-588, eff. 6-5-24; 103-605, eff. 7-1-24; 104-2, eff. 6-16-25; 104-458, eff. 6-1-26.)

(30 ILCS 559/20-17 new)

Sec. 20-17. Illinois Municipal Works Preapprenticeship and Service Trainee Program.

(a) The Illinois Municipal Works Preapprenticeship and Service Trainee Program is established and shall be administered by the Department. The goal of the Illinois Municipal Works Preapprenticeship and Service Trainee Program is to create a network of community-based organizations within the region served by Morton College that will recruit, prescreen, and provide preapprenticeship and service trainee skills training, for which participants may attend free of charge and receive a stipend, to create a qualified, diverse pipeline of workers who are prepared for careers in the construction and building trades and in the union service trades that have collective bargaining agreements with municipalities, the health care sector, and other service sectors.

(b) There is created the Illinois Municipal Works Preapprenticeship and Service Trainee Fund, a special fund in the State treasury. The Fund shall be administered by the Department. The Fund shall be used to provide funding directly to Morton College and, through Morton College, to trade unions, municipal employers, health care employers, and other service sector employers who are associated with the Illinois Municipal Works Preapprenticeship and Service Trainee Program. In addition to any other transfers that may be provided for by law, on and after July 1, 2026 and every July 1 thereafter, at the direction of the Director of the Governor's Office of Management and Budget, the State Comptroller shall direct and the State Treasurer shall transfer amounts not exceeding a total of $250,000 from the Rebuild Illinois Projects Fund to the Fund.

(c) With regard to funds that Morton College receives from the Illinois Municipal Works Preapprenticeship and Service Trainee Fund, Morton College shall provide an annual report to the Illinois Works Review Panel and the Illinois Community College Board by April 1 of each calendar year. The annual report shall include the following information:

(1) a description of Morton College's recruitment, screening, and training efforts;

(2) the number of individuals who apply to, participate in, and complete the program, broken down by race, gender, age, veteran status, and primary language;

(3) the number of the individuals referenced in item (2) of this subsection who are initially accepted and placed into apprenticeship programs in the construction and building trades or in union service trainee programs with municipal, healthcare, or other service sector employers; and

(4) such other information as Morton College deems necessary or advisable to identify and document successful aspects of the program and to resolve systemic hinderances to the program's success.

Section 15. The Public Community College Act is amended by adding Section 2-28 as follows:

(110 ILCS 805/2-28 new)

Sec. 2-28. Pipeline for the Advancement of the Trade Union and Service Union Workforce. The State Board shall monitor implementation and progress of the Illinois Municipal Works Preapprenticeship and Service Trainee Program. By no later than July 1, 2031, the State Board, in collaboration with Morton College, shall recommend legislation to the General Assembly that will, based upon the experience of Morton College, establish and fund an Illinois Pipeline for the Advancement of the Union Service Workforce Program.

Section 95. No acceleration or delay. Where this Act makes changes in a statute that is represented in this Act by text that is not yet or no longer in effect (for example, a Section represented by multiple versions), the use of that text does not accelerate or delay the taking effect of (i) the changes made by this Act or (ii) provisions derived from any other Public Act.

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