HB5805 96TH GENERAL ASSEMBLY

LRB096 18736 JDS 34121 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB5805

Introduced 2/10/2010, by Rep. Sidney H. Mathias - Robert W. Pritchard - Kay Hatcher - Patricia R. Bellock - Roger L. Eddy, et al.

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 105/5.755 new

Creates the Illinois Emergency Employment Development Act. Authorizes the Governor to appoint an Illinois Emergency Employment Development Coordinator to administer the Act, and specifies the Coordinator's other duties and powers. Creates the Illinois Emergency Development Task Force to advise the Coordinator. Authorizes funds appropriated under the Act to be used to subsidize employee wages and benefits, to reimburse the Department of Employment Security for certain expenses, and to provide child care, workers' compensation coverage, and job search assistance. Specifies the powers and duties of Employment Administrators. Specifies the contractual assurances that businesses must give to remain eligible for subsidies under the Act. Sets forth criteria for allocating funds among eligible businesses. Requires businesses to repay 70% of amounts received if eligible applicants do not continue in their employment beyond 6 months. Prohibits eligible employers from terminating, laying off, or reducing the working hours of employees in order to hire an individual with funds made available under this Act. Creates a work incentive demonstration project. Provides for the termination of the program. Amends the State Finance Act to create the Illinois Emergency Employment Development Fund as a special fund in the State treasury. Effective July 1, 2010.

FISCAL NOTE ACT MAY APPLY

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 1. Short title. This Act may be cited as the Illinois Emergency Employment Development Act.

Section 5. Definitions. For the purposes of this Act, the following terms have the meanings given them in this Section unless the context clearly requires otherwise.

"Coordinator" means the Illinois Emergency Employment Development Coordinator appointed under Section 10.

"Department" means the Illinois Department of Employment Security.

"Director" means the Director of the Illinois Department of Employment Security.

"Eligible business" means a for-profit business.

"Eligible employer" means an eligible government agency, an eligible non-profit agency, or an eligible business.

"Eligible government agency" means a county, municipality, school district, or other unit of local government, a State agency, or a federal agency office in Illinois.

"Eligible job applicant" means a person who:

(1) has been a resident of this State for at least one month,

(2) is unemployed,

(3) is not receiving and is not qualified to receive unemployment compensation or workers' compensation, and

(4) is determined by the Employment Administrator to be likely to be available for employment by an eligible employer for the duration of the job.

"Eligible non-profit agency" means an organization exempt from taxation under the Internal Revenue Code of 1986, Section 501(c)(3), as amended.

"Employment Administrator" means the administrative entity designated by the Coordinator to administer the provisions of this Act in each service delivery area. The Coordinator may designate an administrative entity authorized under the Job Training Partnership Act or its predecessor administrative entity authorized under United States Code, Title 29, Section 801, et seq., or a job training or placement agency with proven effectiveness.

"Household" means a group of persons living at the same residence consisting of, at a maximum, spouses and the minor children of each.

"Job Training Partnership Act" means the federal Job Training Partnership Act of 1982 (JTPA), Statutes at Large, volume 92, page 1322.

"Program" means the Illinois Emergency Employment development program created by this Act consisting of temporary work relief projects in the government and non-profit agencies and new job creation in the private sector.

"Service delivery area" means an area designated as a service delivery area by the Coordinator.

Section 10. Illinois Emergency Employment Development Coordinator.

(a) The Governor shall appoint an Illinois Emergency Employment Development Coordinator to administer the provisions of this Act. The Coordinator shall be within the Department of Employment Security, but shall be responsible directly to the Governor. The Coordinator shall have the powers necessary to carry out the purposes of the program.

(b) The Coordinator shall:

(1) obtain an inventory of community needs from each unit of local government and compile a statewide inventory of needs within 30 days after his or her appointment;

(2) enter into a contract with one or more Employment Administrators in each service delivery area;

(3) review the emergency employment development plan submitted by the Employment Administrator of each service delivery area and approve satisfactory plans. If an Employment Administrator submits an unsatisfactory plan, the Coordinator shall assist the Employment Administrator in developing a satisfactory one;

(4) coordinate the program with other State agencies;

(5) coordinate administration of the program with the general assistance program;

(6) set policy regarding disbursement of program funds; and

(7) perform general program marketing and monitoring functions.

(c) The Coordinator shall administer the program within the Department. The Director shall provide administrative support services to the Coordinator for the purposes of the program.

(d) The Coordinator shall ensure that all eligible employers and Employment Administrators comply with this Act and all other applicable State and federal laws, including those relating to:

(1) affirmative action;

(2) occupational health and safety standards;

(3) environmental standards; and

(4) fair labor practices.

(e) The Coordinator may:

(1) make public or private investigations within or without this State necessary (i) to determine whether any person has violated or is about to violate this Act, a contract entered into under it, or any rule or order adopted under it or (ii) to aid in the enforcement of this Act or the rules adopted under it;

(2) require or permit any person to file a written statement under oath or otherwise, as the Director determines, as to all the facts and circumstances concerning the matter being investigated;

(3) publish information contained in any order issued by the Coordinator;

(4) hold hearings, upon reasonable notice, on any matter arising out of the administration of this Act; and

(5) conduct investigations and hold hearings for the purpose of compiling information with a view to recommending changes in this Act to the General Assembly.

(f) The Attorney General shall assign from his or her staff one or more assistant attorneys general to the Coordinator.

(g) Whenever it appears to the Coordinator that any person has violated a provision of this Act, a contract entered into under it, or a rule or order adopted under it:

(1) The Coordinator may issue and cause to be served upon the person an order requiring the person to cease and desist from the violation. The order must be calculated to give reasonable notice of the right of the person to request a hearing on it and must state the reasons for the entry of the order. A hearing must be held not later than 7 days after a request for the hearing is received by the Coordinator, after which and within 20 days after the date of the hearing, the Coordinator shall issue a further order vacating the cease and desist order or making it permanent as the facts require. If no hearing is requested within 30 days after service of the order, the order becomes final and remains in effect until it is modified or vacated by the Coordinator. If the person to whom a cease and desist order is issued fails to appear at the hearing after being duly notified, the person shall be deemed in default, and the proceeding may be determined against him upon consideration of the cease and desist order, the allegations of which may be deemed to be true;

(2) The Coordinator may bring an action in the circuit court of the appropriate county to enjoin the violation and to enforce compliance with the provisions of this Act, a contract entered into under them, or any rule or order adopted under them, and he or she may refer the matter to the Attorney General. Upon a proper showing, a permanent or temporary injunction, restraining order, or writ of mandamus shall be granted. The court may not require the Coordinator to post a bond. Any injunction proceeding under the provisions of this Act may be brought on for hearing and disposition upon an order to show cause returnable upon not more than 8 days notice to the defendant. The case has precedence over other cases upon the court calendar and may not be continued without the consent of the State, except upon good cause shown to the court, and then only for a reasonable length of time necessary in the opinion of the court to protect the rights of the defendant.

(h) The Coordinator shall report to the General Assembly and the Governor on a quarterly basis:

(1) the number of persons employed;

(2) the number and type of employers under the program;

(3) the amount of money spent in each service delivery area for wages for each type of employment and each type of other expense;

(4) the number of persons who have completed participation in the program and their current employment, educational, or training status; and

(5) any other information requested by the General Assembly or the Governor or deemed pertinent by the Coordinator.

(i) The Director may adopt rules necessary to implement this Act.

Section 15. Illinois Emergency Employment Development Task Force.

(a) The Illinois Emergency Employment Development Task Force is created within the Department to advise the Coordinator in the administration of this Act.

(b) The Task Force shall consist of 9 members as follows: the Coordinator, the Director, the Director of Commerce and Economic Opportunity, the Director of Labor, and the Secretary of Human Services, ex officio; plus a representative of labor, a representative of business, a representative of non-profit employers, and a representative of an Employment Administrator, appointed by the Coordinator. The Coordinator shall serve as the chairperson.

(c) The terms, compensation, and removal of the appointed members shall be governed by an administrative rule adopted by the Department.

(d) The Task Force shall meet at the call of the Coordinator.

Section 20. Allocation of funds among service delivery areas.

(a) 90% of the funds available for allocation to employment administrators for the program must be allocated among service delivery areas as follows: each service delivery area shall be eligible to receive that proportion of the funds available which equals the number of unemployed persons in the service delivery area divided by the total number of unemployed persons in the State for the 12-month period ending on the most recent March 31.

(b) 10% of the funds available for allocation to employment administrators under the program must be allocated at the discretion of the Coordinator to Employment Administrators:

(1) who will maximize the use of the funds through coordination with other programs and State, local, and federal agencies, through the use of matching funds or through the involvement of low-income constituent groups;

(2) who have demonstrated need beyond the allocation available under subsection (a); and

(3) who have demonstrated outstanding performance in job creation.

Section 25. Allocation within service delivery areas; priorities.

(a) Allocation of funds among eligible job applicants within a service delivery area shall be determined by the Employment Administrator in each service delivery area. The Employment Administrator shall give priority to:

(1) applicants living in households with no other income source; and

(2) applicants who would otherwise be eligible to receive general assistance under Article VI of the Illinois Public Aid Code.

(b) Allocation of funds among eligible employers within a service area shall be determined by the Employment Administrator within each service delivery area according to the priorities in Sections 45 and 50. The Employment Administrator shall give priority to funding private sector jobs to the extent that eligible businesses apply for funds. If possible, no more than 60% of the funds may be allocated for jobs with eligible government and non-profit agencies.

(c) If the Coordinator designates more than one Employment Administrator in a service delivery area, the Coordinator shall determine the allocation of funds to be distributed by each Employment Administrator in the service delivery area.

Section 30. Use of funds. Funds appropriated for the purposes of this Act may be used as follows:

(1) to provide a State contribution for wages and fringe benefits for eligible job applicants for a maximum of 1,040 hours over a maximum period of 26 weeks per job applicant. For eligible job applicants participating in a job training program, the State contribution for wages may be used for a maximum period of 52 weeks per job applicant. The State contribution for wages shall be up to $4 per hour for each eligible job applicant employed. The State contribution for fringe benefits may be up to $1 per hour for each eligible job applicant employed. However, the employer may use funds from other sources to provide increased wages to the applicants it employs. At least 75% of the funds appropriated for the program must be used to pay wages for eligible job applicants;

(2) to reimburse the Department in an amount not to exceed 1% of the funds appropriated for the actual cost of administering this Act, and to reimburse the Employment Administrators in an amount not to exceed 4.5% of the funds appropriated for their actual cost of administering this Act. The Director and the Employment Administrators shall reallocate funds from other sources to cover the administrative costs of this program whenever possible;

(3) to provide child care services or subsidies to applicants employed under this Act;

(4) to provide workers' compensation coverage to applicants employed by government or non-profit agencies under this Act;

(5) to provide job search assistance, labor market orientation, job-seeking skills, and referrals for other services; or

(6) to purchase supplies and materials for projects creating permanent improvements to public property in an amount not to exceed 1% of the funds appropriated.

The Employment Administrator of each service delivery area shall submit to the Coordinator a spending plan establishing that funds allocated to the service delivery area will be used within one year after the effective date, in the manner required by this Act. Any funds allocated to a service delivery area for which there is no spending plan approved by the Coordinator shall be returned to the Department and may be reallocated by the Coordinator to other Employment Administrators.

Section 35. Employment Administrators; powers and duties.

(a) The Employment Administrator for each service delivery area has the powers and duties given in this Section and any additional duties given by the Coordinator.

(b) Each Employment Administrator shall develop an emergency employment development plan for its service delivery area under guidelines developed by the Coordinator and submit it to the Coordinator within the period allowed by the Coordinator. To the extent feasible, the Employment Administrator shall seek input from potential eligible employers and the public.

(c) Each Employment Administrator shall publicize the program within its service delivery area to seek maximum participation by eligible job applicants and employers.

(d) Each Employment Administrator shall enter into contracts with eligible employers setting forth the terms of their participation in the program as required by this Act.

(e) Each Employment Administrator shall screen job applicants and employers to achieve the best possible placement of eligible job applicants with eligible employers.

(f) Each Employment Administrator shall maintain a list of eligible job applicants unable to secure employment under the program at the time of application. The list shall prioritize eligible job applicants and shall be used to fill jobs with eligible employers as they become available.

(g) Each Employment Administrator shall cooperate with local educational and training institutions to coordinate and publicize the availability of their resources to assure that applicants may receive training needed before or while employed in jobs which are available under the program.

(h) Each Employment Administrator may disburse funds not to exceed 1% of the amount allocated to its service delivery area for the purchase of supplies and materials for projects creating permanent improvements to public property.

Section 40. Duties of other agencies.

(a) The Department of Commerce and Economic Opportunity shall publicize the Illinois Emergency Employment Development program and shall provide staff assistance as requested by Employment Administrators in the screening of businesses and the collection of data to the extent feasible under its existing budget and staff complement.

(b) The Board of Higher Education and the Community College Board shall review their policies for post-secondary vocational education to ensure that the programs serve the training needs of economically disadvantaged persons. Education programs shall attempt to provide training that will help individuals to obtain and retain employment. The training may include customized short-term training, basic skills training, programs to develop work habits, and other services designed for eligible job applicants and persons employed under this Act. Examples of education programs include, but are not limited to, adult vocational programs, adult basic or continuing education, area vocational-technical institutes, colleges, secondary education programs, and private and proprietary schools.

(c) The Secretary of Human Services shall provide to each Employment Administrator lists of currently licensed local day care facilities, updated quarterly, to be available to all persons employed under this Act.

Section 45. Eligible government and non-profit agency employment. A government or non-profit agency is an eligible employer with respect to temporary work relief projects that are determined by the Employment Administrator to have long-term benefit to or be needed by the community, including, but not limited to, jobs in permanent public improvement projects, residential or public building weatherization projects, reforestation projects, mine land reclamation projects, tree planting or trimming projects, soil conservation projects, natural resource development projects, and community social service programs such as child care and home health care programs.

Section 50. Business employment.

(a) A business employer is an eligible employer if it enters into a written contract, signed and subscribed to under oath, with the Employment Administrator in its service delivery area, containing assurances that:

(1) funds received by the business shall be used only as permitted under this Act;

(2) the business has submitted a plan to the Employment Administrator (i) describing the duties and proposed compensation of each employee proposed to be hired under the program; and (ii) demonstrating that, with the funds provided under this Act, the business is likely to succeed and continue to employ persons hired under the program;

(3) the business will use the funds exclusively for compensation and fringe benefits of eligible job applicants, and the employees hired with the funds will receive fringe benefits and other terms and conditions of employment comparable to those provided to other employees of the business who do comparable work;

(4) the funds are necessary to allow the business to begin, or to employ additional people, but will not be used to fill positions that would be filled even in the absence of funds from this program;

(5) the business will cooperate with the Coordinator and the Employment Administrator in collecting data to assess the results of the program; and

(6) the business is in compliance with all applicable affirmative action, fair labor, health, safety, and environmental standards.

(b) In allocating funds among eligible businesses, the Employment Administrator shall give priority to businesses which best satisfy the following criteria:

(1) have a high potential for growth and long-term job creation;

(2) are labor intensive;

(3) meet the definition of a small business as defined in Section 5 of the Small Business Advisory Act;

(4) make high use of local and Illinois resources;

(5) are under ownership of women and minorities;

(6) make high use of new technology;

(7) produce energy conserving materials or services or are involved in development of renewable sources of energy; and

(8) have their primary place of business in Illinois.

(c) A business receiving funds under this program shall repay 70% of the amount received for each eligible job applicant employed, who does not continue in the employment of the business beyond the 6-month subsidized period. If the employee continues in the employment of the business for one year or longer after the 6-month subsidized period, the business need not repay any of the funds received for that employee's wages and fringe benefits. If the employee continues in the employment of the business for a period of less than one year after the expiration of the 6-month subsidized period, the business shall receive a proportional reduction in the amount it must repay. If an employer dismisses an employee for good cause and works in good faith with the Employment Administrator to employ and train another person referred by the Employment Administrator, the payback formula shall apply as if the original person had continued in employment.

A repayment schedule shall be negotiated and agreed to by the Employment Administrator and the business prior to the disbursement of the funds and is subject to renegotiation. The Employment Administrator shall forward payments received under this subdivision to the Coordinator on a monthly basis. The Coordinator shall deposit these payments into the Illinois Emergency Employment Development Fund.

Section 55. Illinois Emergency Employment Development Fund. The Illinois Emergency Employment Development Fund is created as a special fund in the State treasury. All payments from businesses pursuant to subsection (c) of Section 50 shall be deposited into this Fund, and all amounts in the Fund shall be appropriated to the Department for the purpose of making disbursements pursuant to Section 20.

Section 60. Worker displacement prohibited.

(a) An eligible employer may not terminate, lay off, or reduce the working hours of an employee for the purpose of hiring an individual with funds available under this Act.

(b) An eligible employer may not hire an individual with funds available under this Act if any other person is on layoff from the same or a substantially equivalent job.

(c) In order to qualify as an eligible employer, a government or non-profit agency or business must certify to the Employment Administrator that each job created and funded under this Act:

(1) will result in an increase in employment opportunities over those which would otherwise be available;

(2) will not result in the displacement of currently employed workers, including partial displacement such as reduction in hours of nonovertime work, wages, or employment benefits; and

(3) will not impair existing contracts for service or result in the substitution of program funds for other funds in connection with work that would otherwise be performed.

Section 65. Work incentive demonstration project.

(a) In order to maximize the opportunity for recipients of aid to families with dependent children to take full advantage of the jobs created by this Act, the Secretary of Human Services shall inform each applicant or recipient of benefits of the availability of this program.

(b) The Secretary of Human Services shall make changes in the State plan and rules, or seek any waivers or demonstration authority necessary to minimize the barriers to participation in the programs or to employment. Changes shall be sought in the following areas, including, but not limited to, allowances, child care, work expenses, the amount and duration of earning incentives, medical care coverage, limitations on the hours of employment, and the diversion of payments to wage subsidies. The Secretary of Human Services shall implement each change as soon as possible.

(c) Participants shall receive medical assistance and other benefits provided under the aid to families with dependent children program according to the applicable standards and any authority granted by the Department of Health and Human Services.

(d) The Secretary of Human Services and the Director of Health and Human Services may adopt rules, including temporary rules, for the implementation of this Section.

Section 75. Termination; notification.

The Director shall immediately terminate the Illinois Emergency Employment Development program if and when none of the money appropriated remains. The Director shall immediately notify the Secretary of Human Services of the program's termination. The Secretary of Human Services shall immediately notify each local agency referring recipients of the program's termination and require the local agency to cease transferring recipients.

On the date the program is terminated, any balance remaining in the Illinois Emergency Employment Development Fund shall revert to the General Revenue Fund. Repayments under Section 50(c) that are made into the Fund on or after that date shall be deposited in the General Revenue Fund.

Section 80. Unemployed and underemployed; employment by State and other governmental units.

(a) The State of Illinois, its departments, agencies and instrumentalities, and any unit of local government, school district or other body corporate and politic, may employ unemployed and underemployed persons as defined in the federal Emergency Employment Act of 1971, as amended, and Comprehensive Employment and Training Act of 1973, as amended, and eligible job applicants under this Act pursuant to the terms of those Acts.

(b) The provisions of Illinois law relating to preference in employment and promotion of persons having served in the armed services, the provisions of any law, rule or regulation, the provisions of any city charter or any ordinance or resolution, or the provisions of any other law or statute in conflict with the provisions of the federal Emergency Employment Act of 1971, as amended, and Comprehensive Employment and Training Act of 1973, as amended, and eligible job applicants under this Act shall not be applicable to the employment of the persons specified in subsection (a) of this Section.

Section 90. The State Finance Act is amended by adding Section 5.755 as follows:

(30 ILCS 105/5.755 new)

Sec. 5.755. The Illinois Emergency Employment Development Fund.

Section 99. Effective date. This Act takes effect July 1, 2010.