SB2330 98TH GENERAL ASSEMBLY

LRB098 09510 JLS 39653 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB2330

Introduced 2/15/2013, by Sen. Toi W. Hutchinson

SYNOPSIS AS INTRODUCED:

20 ILCS 1005/1005-15	was 20 ILCS 1005/43a.02
20 ILCS 1005/1005-75	was 20 ILCS 1005/43a.12
30 ILCS 787/5
30 ILCS 787/10
30 ILCS 787/15
30 ILCS 787/20
30 ILCS 787/25

Amends the Department of Employment Security Law of the Civil Administrative Code of Illinois and the 21st Century Workforce Development Fund Act. Authorizes the Department of Employment Security to operate a program to provide employers with pre-screened candidates for on-the-job training and to provide wage support therefor. Provides for candidate preference for young adults, veterans, and others. Provides for third parties to operate programs. Authorizes the Department to collect a fee of not less than $500 nor more than $1,000 from all employers with 2 or more employees to be deposited into the 21st Century Workforce Investment Fund to be expended for the purposes of the program. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning employment.

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

Section 1. This Act may be referred to as the Business Jumpstart Act. The purposes of this Act are:

(1) for the Department of Employment Security to design and implement a program to be known as Business Jumpstart to support economic growth and enhance employment opportunities for persons who are unemployed, veterans seeking jobs, unemployed persons whose benefits are expiring, graduates from school, and others who are entering the workforce;

(2) for Business Jumpstart to provide, through qualified third-party intermediaries, a public-private support for businesses, especially small businesses, including pre-screened, prepared job candidates, support to gain tax credits, pre-probationary wage support for on the job training, and training;

(3) to re-designate the Department of Employment Security as the lead agency administering the 21st Century Workforce Fund, which will be used for Business Jumpstart funds; and

(4) to levy a fee upon businesses for dedicated funding to support Business Jumpstart.

Section 5. The Department of Employment Security Law of the Civil Administrative Code of Illinois is amended by changing Sections 1005-15 and 1005-75 as follows:

(20 ILCS 1005/1005-15) (was 20 ILCS 1005/43a.02)

Sec. 1005-15. Employment opportunities.

(a) The Department has the power to advance opportunities for profitable employment.

(b) The power to advance opportunities for profitable employment includes, but is not limited to, the administration of Business Jumpstart and the 21st Century Workforce Investment Fund to advance opportunities for profitable employment.

(c) Business Jumpstart shall provide employers with an opportunity to select from pre-screened candidates for pre-probationary on-the-job training with wage support during the training where a third party intermediary is the time-limited employer of record) prior to employment. Candidate preference shall be given to the veterans, the unemployed who have exhausted benefits, young adults, and those defined in Section 20 of the 21st Century Workforce Development Fund Act. The Department shall select third party not-for-profit or governmental intermediaries with community based sites, job readiness capabilities, skill testing, and other workforce experience to coordinate service delivery in every community and to serve as the employer of record during training.

(d) The Department is authorized to collect from all employers with 2 or more employees a fee of not less than $500 nor more than $1,000 to be placed into the 21st Century Workforce Investment Fund to fund Business Jumpstart and programs authorized in the 21st Century Workforce Development Fund Act.

(e) The Department is authorized to adopt all rules necessary to implement and administer Business Jumpstart.

(Source: P.A. 91-239, eff. 1-1-00.)

(20 ILCS 1005/1005-75) (was 20 ILCS 1005/43a.12)

Sec. 1005-75. Jobs for summer employment of youth. The Department has the power to make available through its offices a listing of all jobs available in each area for the summer employment of youth. The Department shall implement Business Jumpstart to advance and identify opportunities for summer youth employment earning wages.

(Source: P.A. 91-239, eff. 1-1-00.)

Section 10. The 21st Century Workforce Development Fund Act is amended by changing Sections 5, 10, 15, 20, and 25 as follows:

(30 ILCS 787/5)

Sec. 5. The 21st Century Workforce Development Fund.

(a) The 21st Century Workforce Development Fund is created as a special fund in the State Treasury. The Fund shall be administered by the Department of Employment Security Commerce and Economic Opportunity ("the Department"), in consultation with other appropriate State agencies, and overseen by the 21st Century Workforce Development Fund Advisory Committee ("the Advisory Committee"). There shall be credited to the Fund any moneys, fees, or surcharges specifically collected for or designated for deposit into the Fund, including State appropriations, set asides from public expenditures on capital projects, federal funds, gifts, grants, and private contributions. Earnings attributable to moneys in the fund shall be deposited into the fund.

(b) The Department is authorized to collect from all employers with 2 or more employees a fee of not less than $500 nor more than $1,000 to be placed in the 21st Century Workforce Investment Fund to fund Business Jumpstart and programs authorized by rule.

(Source: P.A. 96-771, eff. 8-28-09.)

(30 ILCS 787/10)

Sec. 10. Purpose. The purpose of the 21st Century Workforce Development Fund is to promote the State's interest in supporting employers through the creation and maintenance of a diverse and skilled workforce for the economic development of the State. The Fund is intended to support rapid attachment, integrated, innovative, and emergency workforce development strategies that promote local economic development and a continuum of workforce and education strategies, including workforce development activities to prepare individuals for occupations in the energy efficiency and renewable energy industries, as well as other occupations that are created or transformed by the implementation of policy to reduce greenhouse gas emissions, to prevent and remediate pollution, and to promote energy-efficient, healthy, and lead-safe homes in Illinois.

(Source: P.A. 96-771, eff. 8-28-09.)

(30 ILCS 787/15)

Sec. 15. Use of Fund.

(a) Role of Fund. Subject to appropriation, resources from the Fund are intended to be used flexibly to support innovative and locally-driven strategies, to leverage other funding sources, to advance opportunities for profitable employment, and to fill gaps in existing workforce development resources in Illinois. They are not intended to supplant existing workforce development resources.

(b) Distribution of funds. Funds shall be distributed through competitive grantmaking processes, fee for service contracting, or both, administered by the Department and overseen by the Advisory Committee. No more than 6% of obligated funds used for grants may be retained by the Department for administrative costs or for program evaluation or technical assistance activities. Funds awarded to a third party not-for-profit intermediary for technical assistance, provision of payroll services, or administrative coordination of multiple subcontractors shall count against the 6%.

(c) Grantmaking. The Department must administer funds through competitive grantmaking in accordance with the priorities described in this Act. Grantmaking must be used to support workforce development strategies consistent with the priorities outlined in this Act. Strategies may include, but are not limited to the following:

(i) Expanded grantmaking for existing State workforce development strategies, including the Job Training and Economic Development Program and programs designed to increase the number of persons traditionally underrepresented in the building trades, specifically minorities and women.

(ii) Workforce development initiatives that help the least skilled adults access employment and education opportunities, including transitional jobs programs and educational bridge programming that integrate basic education and occupational skills training.

(iii) Sectoral strategies that develop industry-specific workforce education and training services that lead to existing or expected jobs with identified employers and that include services to ensure that low-income, low-skilled adults can be served.

(iv) Support for the development and implementation of workforce education and training programs in the energy efficiency, renewable energy, and pollution control cleanup and prevention industries.

(v) Support for planning activities that: ensure that workforce development and education needs of low-skilled adults are integrated into industry-specific career pathways; analyze labor market data to track workforce trends in the State's energy-related initiatives; or increase the capacity of communities to provide workforce services to low-income, low-skilled adults.

(d) Allowable expenditures. Grant funds are limited to expenditures for the following:

(i) Basic skills training, adult education, occupational training, job readiness training, and soft-skills training for which financial aid is otherwise not available.

(ii) Workforce development-related services including mentoring, job development, support services, transportation assistance, and wage subsidies, that are tied to participation in training and employment.

(iii) Capacity building, program development, and technical assistance activities necessary for the development and implementation of new workforce education and training strategies.

No more than 5% of any grant may be used for administrative costs.

(e) Eligible applicants. For grants under this Section, eligible applicants include the following:

(i) Any private, public, and non-profit entities that provide education, training, and workforce development services to low-income individuals.

(ii) Educational institutions.

(iii) Labor and business associations.

(Source: P.A. 96-771, eff. 8-28-09; 97-581, eff. 8-26-11.)

(30 ILCS 787/20)

Sec. 20. Priorities. The Department shall implement grantmaking using the following priorities, and the Advisory Committee shall monitor the application of these priorities to grantmaking:

(a) Priority populations. Priority shall be given to workforce education and training strategies that target individuals with barriers to employment including, but not limited to, criminal backgrounds, low incomes, residents of public or subsidized housing, and individuals with limited literacy, math skills, or English proficiency. Priority may also be given to workers with jobs that are affected by the implementation of State energy and environmental policy.

(b) Priority industries. Priority shall be given to workforce education and training strategies for the following:

(i) Industries that will reduce carbon emissions, promote recycling/reuse, prevent and remediate pollution, and support local food production, including but not limited to the following:

(A) Energy efficient building construction, retrofit, and assessment industries.

(B) Renewable electric power generation and transmission industries.

(C) Deconstruction and materials use industries.

(D) Manufacturers that produce sustainable products using environmentally sustainable processes and materials.

(E) Local food systems.

(ii) Industries identified by the Department to be facing a critical shortage of skilled workers.

(iii) Small employers with fewer than 100 employees and no separate human resources department identified by the Department or its agent.

(c) Other priority factors. The Department must implement grantmaking by giving priority to grant applications that demonstrate collaboration amongst local workforce, education, and economic development stakeholders in their community; demonstrate collaboration with outreach programs designed to connect community residents with training opportunities; integrate lead-safe work practices into their training; or serve communities with high rates of unemployment, underemployment, and poverty.

(Source: P.A. 96-771, eff. 8-28-09.)

(30 ILCS 787/25)

Sec. 25. 21st Century Workforce Development Fund Advisory Committee. The 21st Century Workforce Development Fund Advisory Committee shall review, advise, and recommend for approval or denial all grant requests from the Fund. The Department is responsible for the administration and staffing of the Advisory Committee.

(a) Membership. The Committee shall consist of 21 persons. Co-chairs shall be appointed by the Governor with the requirement that one come from the public and one from the private sector.

(b) Eleven members shall be appointed by the Governor, and any of the 11 members appointed by the Governor may fill more than one of the following required categories:

(i) Four must be from communities outside of the City of Chicago.

(ii) At least one must be a member of a local workforce investment board (LWIB) in his or her community.

(iii) At least one must represent organized labor.

(iv) At least one must represent business or industry.

(v) At least one must represent a non-profit organization that provides workforce development or job training services.

(vi) At least one must represent a non-profit organization involved in workforce development policy, analysis, or research.

(vii) At least one must represent a non-profit organization involved in environmental policy, advocacy, or research.

(viii) At least one must represent a group that advocates for individuals with barriers to employment, including at-risk youth, formerly incarcerated individuals, and individuals living in poverty.

(c) The other 10 members shall be the following:

(i) The Director of Employment Security Commerce and Economic Opportunity, or his or her designee who oversees workforce development services.

(ii) The Secretary of Human Services, or his or her designee who oversees human capital services.

(iii) The Director of Corrections, or his or her designee who oversees prisoner re-entry services.

(iv) The Director of the Environmental Protection Agency, or his or her designee who oversees contractor compliance.

(v) The Chairman of the Illinois Community College Board, or his or her designee who oversees technical and career education.

(vi) A representative of the Illinois Community College Board involved in energy education and sustainable practices, designated by the Board.

(vii) Four State legislators, one designated by the President of the Senate, one designated by the Speaker of the House, one designated by the Senate Minority Leader, and one designated by the House Minority Leader.

(d) Appointees under subsection (b) shall serve a 2-year term and are eligible to be re-appointed one time. Members under subsection (c) shall serve ex officio or at the pleasure of the designating official, as applicable.

(Source: P.A. 96-771, eff. 8-28-09.)

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