101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3340

 

Introduced , by Rep. Theresa Mah

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Department of Human Services Act. Contains a declaration of policy and intent. Requires the Department of Human Services, in partnership with specified State agencies, to develop and implement a plan to phase out, by July 1, 2024, authorizations under the Minimum Wage Law to pay an employee with a disability less than the minimum wage. Requires the Department to consult with specified organizations when implementing the phase-out plan. Requires the Secretary of Human Services to submit reports to the Governor and the General Assembly on the benchmarks and status of achieving the outcomes included in the phase-out plan and recommendations for funding levels or other resources necessary to implement the phase-out plan. Amends the Department of Labor Law. Prohibits the Director of Labor from authorizing a work activities center or other sheltered workshop to pay an employee who has a disability less than the minimum wage unless certain requirements are met. Amends the Illinois Council on Developmental Disabilities Law. Requires the Illinois Council on Developmental Disabilities to commission an independent study of the phase-out plan; determine whether the plans are having their intended effects; and make recommendations for possible changes in State law or policy regarding the employment of individuals with disabilities. Requires the Council to report its findings and recommendations to the Governor and the General Assembly by July 1, 2023. Amends the Minimum Wage Law. Provides that the State of Illinois shall not fund any entity that pays individuals less than the minimum wage under a certificate issued by the United States Department of Labor that authorizes Community Rehabilitation Programs to pay individuals less than the wage otherwise required for the individuals under federal law. Effective immediately, except that the provisions amending the Minimum Wage Law take effect July 1, 2024.


LRB101 10336 JLS 55442 b

 

 

A BILL FOR

 

HB3340LRB101 10336 JLS 55442 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Declaration of policy and intent. Section 14(c)
5of the Fair Labor Standards Act of 1938 allows employers to pay
6less than the minimum wage to workers who have disabilities.
7More than 100 Illinois entities now employ over 10,000
8individuals with disabilities and pay those individuals a
9subminimum wage. Among those now working for less than minimum
10wage are people with autism, cerebral palsy, spina bifida, Down
11syndrome, and other intellectual, developmental, and sensory
12disabilities including blindness and deafness. The Illinois
13Employment First Act stipulates that "competitive and
14integrated employment shall be considered the first option when
15serving persons with disabilities of working age".
 
16    Section 5. The Department of Human Services Act is amended
17by adding Sections 1-75, 1-80, and 1-85 as follows:
 
18    (20 ILCS 1305/1-75 new)
19    Sec. 1-75. Phase-out plan.
20    (a) The Department, in partnership with other State
21agencies, including the Department of Labor, the Department of
22Healthcare and Family Services, the Department of Central

 

 

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1Management Services, the Department of Commerce and Economic
2Opportunity, the Department of Employment Security, and the
3State Board of Education, shall develop and implement a plan to
4phase out, on or before July 1, 2024, authorizations under
5Sections 5 and 10 of the Minimum Wage Law to pay an employee
6with a disability less than the minimum wage otherwise required
7for the employee under Illinois law.
8    (b) The phase-out plan shall include all of the following:
9        (1) Benchmarks and desired outcomes for each year of
10    the phase-out.
11        (2) A list of the resources necessary, including
12    changes to State policy or service and program
13    reimbursement rates, to ensure that individuals with
14    disabilities receive support according to the needs and
15    preferences of the individuals and in an integrated
16    setting, regardless of the nature or severity of the
17    individuals' disabilities.
18        (3) A description of alternative revenue options,
19    including non-subminimum wage programs, for holders of
20    certificates issued under Section 14(c) of the Fair Labor
21    Standards Act of 1938.
22        (4) An examination of the measures needed to improve
23    future employment and day service options for people with
24    disabilities, including recommendations for new or
25    reformulated day service strategies and approaches
26    designed to strengthen statewide capacity to assure

 

 

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1    informed choice for integrated employment and integrated
2    avocational leisure and volunteer options for every
3    individual with a disability.
4        (5) A timeline and estimated costs for comprehensive
5    training and certification of individual staff in
6    supported employment and customized employment. The
7    training shall also include benefits counseling and
8    education to reduce misinformation that promotes
9    dependency and discourages income-producing work. Training
10    audiences shall include the following persons and
11    organizations:
12            (A) Counselors from the Department's Division of
13        Rehabilitation Services.
14            (B) Staff from the Department's Division of
15        Developmental Disabilities.
16            (C) Organizations affiliated with the Department's
17        Division of Rehabilitation Services or Division of
18        Developmental Disabilities that are certified to serve
19        persons with disabilities by the State or federal
20        government.
21            (D) High school special education and transition
22        staff.
23            (E) Independent Service Coordination agency staff.
24            (F) Community Work Incentives Coordinators.
25        Training content developed or approved by federal
26    agencies shall be used, if possible, including training

 

 

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1    content from the following agencies:
2            (i) The Office of Disability Employment Policy in
3        the United States Department of Labor.
4            (ii) The Rehabilitation Services Administration in
5        the United States Department of Education.
6            (iii) The Administration for Community Living in
7        the United States Department of Health and Human
8        Services.
9            (iv) The Centers for Medicare and Medicaid
10        Services in the United States Department of Health and
11        Human Services.
12        (6) A proposal to modify the Business Enterprise
13    Program and the State Use Program to ensure future State
14    contracts are not awarded to entities paying workers less
15    than the minimum wage and instead are awarded to entities
16    that promote fully integrated work opportunities.
17        (7) Application for and use of all federal and State
18    funding programs, including programs available under
19    Medicaid waiver amendments and resources under the federal
20    Workforce Innovation and Opportunity Act, to assist
21    individuals with disabilities to obtain competitive,
22    integrated employment.
23        (8) The tracking of outcomes of individuals with
24    disabilities on the basis of:
25            (A) wages;
26            (B) hours worked;

 

 

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1            (C) unemployment rates;
2            (D) the number of individuals who move from
3        subminimum wage positions to competitive, integrated
4        employment;
5            (E) the number of individuals who move from
6        subminimum wage positions to nonpaying activities;
7            (F) the number of hours of paid supports; and
8            (G) the use and costs of Medicaid for acute health
9        care and outpatient mental health care costs.
10        (9) In the formulation of the phase-out plan, special
11    attention must be paid to building adequate capacity in the
12    disability provider ecosystem to ensure individuals with
13    all levels of disability can secure competitive,
14    integrated employment as defined in the federal Workforce
15    Innovation and Opportunity Act. Special attention must be
16    given to prevent any systematic shift of income-earning
17    activity to unpaid day habilitation activity.
18    (c) In implementing the phase-out plan, the Department
19shall consult with:
20        (1) the State agencies listed in subsection (a);
21        (2) the ARC of Illinois;
22        (3) the Illinois Association of Rehabilitation
23    Facilities;
24        (4) the Illinois Network of Centers for Independent
25    Living;
26        (5) the Illinois Task Force on Employment and Economic

 

 

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1    Opportunity for Persons with Disabilities;
2        (6) the Illinois Self-Advocacy Alliance;
3        (7) the Institute on Public Policy for People with
4    Disabilities;
5        (8) the Great Lakes ADA Center;
6        (9) holders of certificates issued to Community
7    Rehabilitation Programs under Section 14(c) of the Fair
8    Labor Standards Act of 1938;
9        (10) the Association of People Supporting Employment
10    First;
11        (11) the Illinois Association of the Deaf;
12        (12) the University Center of Excellence in
13    Developmental Disabilities;
14        (13) the National Federation of the Blind of Illinois;
15    and
16        (14) any other relevant stakeholders.
17    (d)(1) On or before January 1, 2020, the Secretary of Human
18Services shall submit the phase-out plan to the Governor and
19the General Assembly.
20    (2) On or before January 1, 2021, January 1, 2022, and
21January 1, 2023, the Secretary shall report to the Governor and
22the General Assembly on:
23        (A) the benchmarks and status of achieving the outcomes
24    included in the phase-out plan; and
25        (B) recommendations for funding levels or other
26    resources necessary to implement the phase-out plan.
 

 

 

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1    (20 ILCS 1305/1-80 new)
2    Sec. 1-80. Customized work plans.
3    (a)(1) For each individual who is paid less than the
4minimum wage under Sections 5 and 10 of the Minimum Wage Law,
5the Department shall develop a written individualized
6customized work plan on or before January 1, 2021 that
7addresses how community integration and employment will be
8accomplished.
9    (2) The customized work plan shall be developed with input
10from the individual receiving services, and, where applicable,
11from the individual's family, the individual's vocational
12rehabilitation counselor, and any staff from the Department's
13Division of Developmental Disabilities or a Pre-Admission
14Screening/Independent Service Coordination agency who have
15interacted with the individual concerning employment and other
16life goals.
17    (3) The Department shall use appropriate communication
18devices and techniques, including sign language, to facilitate
19the involvement of the individual in the development of each
20customized work plan.
21    (b) Customized work plans shall include all of the
22following:
23        (1) A recommendation on jobs and careers that allow the
24    job seeker to thrive and contribute to an employer's needs.
25        (2) A description of the supports required for the

 

 

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1    individual to work, if so desired by the individual, in the
2    most integrated setting appropriate to complete the tasks
3    and requirements of his or her job with minimal intrusion.
4        (3) A listing of barriers that prevent the individual
5    from receiving the services and supports required for the
6    individual to work in the most integrated setting
7    appropriate to meet the individual's needs, including:
8            (A) barriers to accessing funding and resources,
9        including for staffing, transportation, and other
10        needed services and supports;
11            (B) decision-making by the individual or the
12        individual's representative, as appropriate;
13            (C) barriers to accessing medical or behavioral
14        support needs;
15            (D) family members' concerns or opposition; and
16            (E) options for activity other than compensated
17        employment in the person's life and community.
18        (4) An update on the status and progress made toward
19    addressing and resolving barriers identified under
20    paragraph (3) in a previous customized work plan.
21    (c) The Department shall develop, in consultation with
22interested stakeholders, the protocol and format for the
23customized work plan.
24    (d) On an annual basis and at any other time requested by
25an individual who is paid less than the minimum wage under
26Sections 5 and 10 of the Minimum Wage Law, the individual and

 

 

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1the individual's vocational rehabilitation counselor, or other
2responsible party designated by the Secretary, shall discuss
3the most integrated employment setting that is appropriate for
4the individual in accordance with the federal Americans with
5Disabilities Act. The annual review shall document in the
6individual's customized work plan:
7        (1) any discussions held under this subsection; and
8        (2) any recommendations that resulted from the
9    discussions.
10    (e)(1) The Department shall track the progress of
11individuals who have customized work plans by collecting the
12following data:
13        (A) the wages of the individuals;
14        (B) the unemployment rates of the individuals;
15        (C) the number of individuals who moved from subminimum
16    wage positions to competitive, integrated employment;
17        (D) the number of individuals who moved from subminimum
18    wage positions to nonpaying activities; and
19        (E) the health costs, including outpatient mental
20    health costs, paid by Medicaid for the individuals.
21    (2) On or before January 1, 2022, January 1, 2023, and
22January 1, 2024, the Secretary shall submit to the Governor and
23the General Assembly a summary of the data collected under
24paragraph (1) on a statewide and regional basis. The report to
25the General Assembly shall be filed with the Clerk of the House
26of Representatives and the Secretary of the Senate.
 

 

 

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1    (20 ILCS 1305/1-85 new)
2    Sec. 1-85. 14c Worker Protection Fund.
3    (a) The 14c Worker Protection Fund is created as a special
4fund in the State treasury. Moneys in the Fund shall be used,
5subject to appropriation, by the Department to subsidize wages
6paid to workers with intellectual and developmental
7disabilities who were or could be employed in special minimum
8wage positions under Section 14(c) of the Fair Labor Standards
9Act of 1938.
10    (b) The Department shall adopt rules establishing a process
11for the administration of the Fund in an equitable and
12transparent manner to ensure no worker previously employed in a
13subminimum work position loses any opportunity for meaningful
14activity or employment experiences after the effective date of
15this amendatory Act of the 101st General Assembly.
16    (c) A minimum percentage of the budget for Department's
17Division of Developmental Disabilities shall be committed to
18the Fund as follows:
19        (1) in fiscal years 2020 and 2021, 1%;
20        (2) in fiscal year 2022, 2%;
21        (3) in fiscal year 2023, 3%;
22        (4) in fiscal year 2024 and each fiscal year
23    thereafter, 4%.
 
24    Section 10. The Department of Labor Law of the Civil

 

 

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1Administrative Code of Illinois is amended by adding Section
21505-215 as follows:
 
3    (20 ILCS 1505/1505-215 new)
4    Sec. 1505-215. Special wage certificates; persons with
5disabilities.
6    (a) As used in this Section:
7    "Director" means the Director of Labor.
8    "Federal certificate" means a certificate that the United
9States Department of Labor issues to a work activities center
10or other sheltered workshop to allow the work activities center
11or sheltered workshop to pay an individual less than the wage
12otherwise required for that individual under the federal Fair
13Labor Standards Act of 1938.
14    (b)(1) Subject to the limitations in this Section, the
15Director may not authorize a work activities center or other
16sheltered workshop to pay an employee who has a disability less
17than the minimum wage otherwise required under the Minimum Wage
18Law for the employee.
19    (2) Beginning January 1, 2022, the Director may not
20authorize a work activities center or other sheltered workshop
21to pay an employee with a disability less than the minimum wage
22if the work activities center or sheltered workshop was not
23authorized to do so before January 1, 2021 by the United States
24Department of Labor.
25    (c)(1) To authorize a work activities center or other

 

 

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1sheltered workshop to pay less than the minimum wage, the
2Director shall:
3        (A) issue a State certificate that sets wages for
4    employees of the work activities center or sheltered
5    workshop;
6        (B) accept a federal certificate for the work
7    activities center or sheltered workshop; or
8        (C) grant an exception for the work activities center
9    or sheltered workshop, but only if:
10            (i) the Director has not issued a State certificate
11        to the work activities center or sheltered workshop;
12            (ii) the work activities center or sheltered
13        workshop is not eligible for a federal certificate; and
14            (iii) the Director investigates and holds a
15        hearing on the exception.
16    (2) The Director shall accept a federal certificate if a
17work activities center or other sheltered workshop submits that
18federal certificate to the Director within 10 days after the
19work activities center or sheltered workshop receives the
20federal certificate.
21    (d)(1) Each certificate that the Director issues under this
22Section shall state the period for which the certificate is in
23effect.
24    (2) The acceptance of a federal certificate does not apply
25automatically to an individual whom a work activities center or
26other sheltered workshop continues to employ after the

 

 

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1individual completes a training program that the work
2activities center or sheltered workshop runs.
3    (e)(1) The Director may revoke acceptance of a federal
4certificate if:
5        (A) the United States Department of Labor revokes the
6    federal certificate; or
7        (B) at any time before revocation by the Department of
8    Labor and after an investigation and hearing, the Director
9    finds good cause to revoke the acceptance.
10    (2) The Director shall send notice of a hearing under this
11subsection, by certified mail, to the holder of the federal
12certificate at least 30 days before the hearing.
 
13    Section 15. The Illinois Council on Developmental
14Disabilities Law is amended by adding Section 2008 as follows:
 
15    (20 ILCS 4010/2008 new)
16    Sec. 2008. Independent study on phase-out and customized
17work plans.
18    (a) The Illinois Council on Developmental Disabilities
19shall:
20        (1) commission an independent study of the phase-out
21    plan and the customized work plans described in Sections
22    1-75 and 1-80 of the Department of Human Services Act;
23        (2) determine through the study:
24            (A) whether the plans are having their intended

 

 

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1        effects;
2            (B) how many people have transitioned from
3        subminimum wage work to competitive, integrated
4        employment opportunities;
5            (C) whether there are any significant, related,
6        regional, or demographic trends; and
7            (D) whether there are health care savings or costs
8        as a result of the plans; and
9        (3) make any related recommendations for possible
10    changes in State law or policy regarding the employment of
11    individuals with disabilities.
12    (b) On or before July 1, 2023, the Illinois Council on
13Developmental Disabilities shall report its findings and
14recommendations to the Governor and the General Assembly.
 
15    Section 20. The Minimum Wage Law is amended by changing
16Section 10 as follows:
 
17    (820 ILCS 105/10)  (from Ch. 48, par. 1010)
18    Sec. 10. (a) The Director shall make and revise
19administrative regulations, including definitions of terms, as
20he deems appropriate to carry out the purposes of this Act, to
21prevent the circumvention or evasion thereof, and to safeguard
22the minimum wage established by the Act. Regulations governing
23employment of learners may be issued only after notice and
24opportunity for public hearing, as provided in subsection (c)

 

 

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1of this Section.
2    (b) (Blank). In order to prevent curtailment of
3opportunities for employment, avoid undue hardship, and
4safeguard the minimum wage rate under this Act, the Director
5may also issue regulations providing for the employment of
6workers with disabilities at wages lower than the wage rate
7applicable under this Act, under permits and for such periods
8of time as specified therein; and providing for the employment
9of learners at wages lower than the wage rate applicable under
10this Act. However, such regulation shall not permit lower wages
11for persons with disabilities on any basis that is unrelated to
12such person's ability resulting from his disability, and such
13regulation may be issued only after notice and opportunity for
14public hearing as provided in subsection (c) of this Section.
15    (c) Prior to the adoption, amendment or repeal of any rule
16or regulation by the Director under this Act, except
17regulations which concern only the internal management of the
18Department of Labor and do not affect any public right provided
19by this Act, the Director shall give proper notice to persons
20in any industry or occupation that may be affected by the
21proposed rule or regulation, and hold a public hearing on his
22proposed action at which any such affected person, or his duly
23authorized representative, may attend and testify or present
24other evidence for or against such proposed rule or regulation.
25Rules and regulations adopted under this Section shall be filed
26with the Secretary of State in compliance with "An Act

 

 

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1concerning administrative rules", as now or hereafter amended.
2Such adopted and filed rules and regulations shall become
3effective 10 days after copies thereof have been mailed by the
4Department to persons in industries affected thereby at their
5last known address.
6    (d) The commencement of proceedings by any person aggrieved
7by an administrative regulation issued under this Act does not,
8unless specifically ordered by the Court, operate as a stay of
9that administrative regulation against other persons. The
10Court shall not grant any stay of an administrative regulation
11unless the person complaining of such regulation files in the
12Court an undertaking with a surety or sureties satisfactory to
13the Court for the payment to the employees affected by the
14regulation, in the event such regulation is affirmed, of the
15amount by which the compensation such employees are entitled to
16receive under the regulation exceeds the compensation they
17actually receive while such stay is in effect.
18(Source: P.A. 99-143, eff. 7-27-15.)
 
19    (820 ILCS 105/5 rep.)
20    Section 25. The Minimum Wage Law is amended by repealing
21Section 5.
 
22    Section 30. The State Finance Act is amended by adding
23Section 5.891 as follows:
 

 

 

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1    (30 ILCS 105/5.891 new)
2    Sec. 5.891. The 14c Worker Protection Fund.
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law, except that Sections 20 and 25 of this Act take
5effect July 1, 2024.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    20 ILCS 1305/1-75 new
4    20 ILCS 1305/1-80 new
5    20 ILCS 1305/1-85 new
6    20 ILCS 1505/1505-215 new
7    20 ILCS 4010/2008 new
8    820 ILCS 105/10from Ch. 48, par. 1010
9    820 ILCS 105/5 rep.
10    30 ILCS 105/5.891 new