97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB2070

 

Introduced 2/22/2011, by Rep. Lou Lang

 

SYNOPSIS AS INTRODUCED:
 
New Act
30 ILCS 105/5.786 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, 2011.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2070LRB097 08800 PJG 48930 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. Short title. This Act may be cited as the
5Illinois Emergency Employment Development Act.
 
6    Section 5. Definitions. For the purposes of this Act, the
7following terms have the meanings given them in this Section
8unless the context clearly requires otherwise.
9    "Coordinator" means the Illinois Emergency Employment
10Development Coordinator appointed under Section 10.
11    "Department" means the Illinois Department of Employment
12Security.
13    "Director" means the Director of the Illinois Department of
14Employment Security.
15    "Eligible business" means a for-profit business.
16    "Eligible employer" means an eligible government agency,
17an eligible non-profit agency, or an eligible business.
18    "Eligible government agency" means a county, municipality,
19school district, or other unit of local government, a State
20agency, or a federal agency office in Illinois.
21    "Eligible job applicant" means a person who:
22        (1) has been a resident of this State for at least one
23    month,

 

 

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1        (2) is unemployed,
2        (3) is not receiving and is not qualified to receive
3    unemployment compensation or workers' compensation, and
4        (4) is determined by the Employment Administrator to be
5    likely to be available for employment by an eligible
6    employer for the duration of the job.
7    "Eligible non-profit agency" means an organization exempt
8from taxation under the Internal Revenue Code of 1986, Section
9501(c)(3), as amended.
10    "Employment Administrator" means the administrative entity
11designated by the Coordinator to administer the provisions of
12this Act in each service delivery area. The Coordinator may
13designate an administrative entity authorized under the Job
14Training Partnership Act or its predecessor administrative
15entity authorized under United States Code, Title 29, Section
16801, et seq., or a job training or placement agency with proven
17effectiveness.
18    "Household" means a group of persons living at the same
19residence consisting of, at a maximum, spouses and the minor
20children of each.
21    "Job Training Partnership Act" means the federal Job
22Training Partnership Act of 1982 (JTPA), Statutes at Large,
23volume 92, page 1322.
24    "Program" means the Illinois Emergency Employment
25Development program created by this Act consisting of temporary
26work relief projects in the government and non-profit agencies

 

 

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1and new job creation in the private sector.
2    "Service delivery area" means an area designated as a
3service delivery area by the Coordinator.
 
4    Section 10. Illinois Emergency Employment Development
5Coordinator.
6    (a) The Governor shall appoint an Illinois Emergency
7Employment Development Coordinator to administer the
8provisions of this Act. The Coordinator shall be within the
9Department of Employment Security, but shall be responsible
10directly to the Governor. The Coordinator shall have the powers
11necessary to carry out the purposes of the program.
12    (b) The Coordinator shall:
13        (1) obtain an inventory of community needs from each
14    unit of local government and compile a statewide inventory
15    of needs within 30 days after his or her appointment;
16        (2) enter into a contract with one or more Employment
17    Administrators in each service delivery area;
18        (3) review the emergency employment development plan
19    submitted by the Employment Administrator of each service
20    delivery area and approve satisfactory plans. If an
21    Employment Administrator submits an unsatisfactory plan,
22    the Coordinator shall assist the Employment Administrator
23    in developing a satisfactory one;
24        (4) coordinate the program with other State agencies;
25        (5) coordinate administration of the program with the

 

 

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1    general assistance program;
2        (6) set policy regarding disbursement of program
3    funds; and
4        (7) perform general program marketing and monitoring
5    functions.
6    (c) The Coordinator shall administer the program within the
7Department. The Director shall provide administrative support
8services to the Coordinator for the purposes of the program.
9    (d) The Coordinator shall ensure that all eligible
10employers and Employment Administrators comply with this Act
11and all other applicable State and federal laws, including
12those relating to:
13        (1) affirmative action;
14        (2) occupational health and safety standards;
15        (3) environmental standards; and
16        (4) fair labor practices.
17    (e) The Coordinator may:
18        (1) make public or private investigations within or
19    without this State necessary (i) to determine whether any
20    person has violated or is about to violate this Act, a
21    contract entered into under it, or any rule or order
22    adopted under it or (ii) to aid in the enforcement of this
23    Act or the rules adopted under it;
24        (2) require or permit any person to file a written
25    statement under oath or otherwise, as the Director
26    determines, as to all the facts and circumstances

 

 

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1    concerning the matter being investigated;
2        (3) publish information contained in any order issued
3    by the Coordinator;
4        (4) hold hearings, upon reasonable notice, on any
5    matter arising out of the administration of this Act; and
6        (5) conduct investigations and hold hearings for the
7    purpose of compiling information with a view to
8    recommending changes in this Act to the General Assembly.
9    (f) The Attorney General shall assign from his or her staff
10one or more assistant attorneys general to the Coordinator.
11    (g) Whenever it appears to the Coordinator that any person
12has violated a provision of this Act, a contract entered into
13under it, or a rule or order adopted under it:
14        (1) The Coordinator may issue and cause to be served
15    upon the person an order requiring the person to cease and
16    desist from the violation. The order must be calculated to
17    give reasonable notice of the right of the person to
18    request a hearing on it and must state the reasons for the
19    entry of the order. A hearing must be held not later than 7
20    days after a request for the hearing is received by the
21    Coordinator, after which and within 20 days after the date
22    of the hearing, the Coordinator shall issue a further order
23    vacating the cease and desist order or making it permanent
24    as the facts require. If no hearing is requested within 30
25    days after service of the order, the order becomes final
26    and remains in effect until it is modified or vacated by

 

 

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1    the Coordinator. If the person to whom a cease and desist
2    order is issued fails to appear at the hearing after being
3    duly notified, the person shall be deemed in default, and
4    the proceeding may be determined against him upon
5    consideration of the cease and desist order, the
6    allegations of which may be deemed to be true;
7        (2) The Coordinator may bring an action in the circuit
8    court of the appropriate county to enjoin the violation and
9    to enforce compliance with the provisions of this Act, a
10    contract entered into under them, or any rule or order
11    adopted under them, and he or she may refer the matter to
12    the Attorney General. Upon a proper showing, a permanent or
13    temporary injunction, restraining order, or writ of
14    mandamus shall be granted. The court may not require the
15    Coordinator to post a bond. Any injunction proceeding under
16    the provisions of this Act may be brought on for hearing
17    and disposition upon an order to show cause returnable upon
18    not more than 8 days notice to the defendant. The case has
19    precedence over other cases upon the court calendar and may
20    not be continued without the consent of the State, except
21    upon good cause shown to the court, and then only for a
22    reasonable length of time necessary in the opinion of the
23    court to protect the rights of the defendant.
24    (h) The Coordinator shall report to the General Assembly
25and the Governor on a quarterly basis:
26        (1) the number of persons employed;

 

 

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1        (2) the number and type of employers under the program;
2        (3) the amount of money spent in each service delivery
3    area for wages for each type of employment and each type of
4    other expense;
5        (4) the number of persons who have completed
6    participation in the program and their current employment,
7    educational, or training status; and
8        (5) any other information requested by the General
9    Assembly or the Governor or deemed pertinent by the
10    Coordinator.
11    (i) The Director may adopt rules necessary to implement
12this Act.
 
13    Section 15. Illinois Emergency Employment Development Task
14Force.
15    (a) The Illinois Emergency Employment Development Task
16Force is created within the Department to advise the
17Coordinator in the administration of this Act.
18    (b) The Task Force shall consist of 9 members as follows:
19the Coordinator, the Director, the Director of Commerce and
20Economic Opportunity, the Director of Labor, and the Secretary
21of Human Services, ex officio; plus a representative of labor,
22a representative of business, a representative of non-profit
23employers, and a representative of an Employment
24Administrator, appointed by the Coordinator. The Coordinator
25shall serve as the chairperson.

 

 

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1    (c) The terms, compensation, and removal of the appointed
2members shall be governed by an administrative rule adopted by
3the Department.
4    (d) The Task Force shall meet at the call of the
5Coordinator.
 
6    Section 20. Allocation of funds among service delivery
7areas.
8    (a) 90% of the funds available for allocation to Employment
9Administrators for the program must be allocated among service
10delivery areas as follows: each service delivery area shall be
11eligible to receive that proportion of the funds available
12which equals the number of unemployed persons in the service
13delivery area divided by the total number of unemployed persons
14in the State for the 12-month period ending on the most recent
15March 31.
16    (b) 10% of the funds available for allocation to Employment
17Administrators under the program must be allocated at the
18discretion of the Coordinator to Employment Administrators:
19        (1) who will maximize the use of the funds through
20    coordination with other programs and State, local, and
21    federal agencies, through the use of matching funds, or
22    through the involvement of low-income constituent groups;
23        (2) who have demonstrated need beyond the allocation
24    available under subsection (a); and
25        (3) who have demonstrated outstanding performance in

 

 

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1    job creation.
 
2    Section 25. Allocation within service delivery areas;
3priorities.
4    (a) Allocation of funds among eligible job applicants
5within a service delivery area shall be determined by the
6Employment Administrator in each service delivery area. The
7Employment Administrator shall give priority to:
8        (1) applicants living in households with no other
9    income source; and
10        (2) applicants who would otherwise be eligible to
11    receive general assistance under Article VI of the Illinois
12    Public Aid Code.
13    (b) Allocation of funds among eligible employers within a
14service area shall be determined by the Employment
15Administrator within each service delivery area according to
16the priorities in Sections 45 and 50. The Employment
17Administrator shall give priority to funding private sector
18jobs to the extent that eligible businesses apply for funds. If
19possible, no more than 60% of the funds may be allocated for
20jobs with eligible government and non-profit agencies.
21    (c) If the Coordinator designates more than one Employment
22Administrator in a service delivery area, the Coordinator shall
23determine the allocation of funds to be distributed by each
24Employment Administrator in the service delivery area.
 

 

 

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1    Section 30. Use of funds. Funds appropriated for the
2purposes of this Act may be used as follows:
3        (1) to provide a State contribution for wages and
4    fringe benefits for eligible job applicants for a maximum
5    of 1,040 hours over a maximum period of 26 weeks per job
6    applicant. For eligible job applicants participating in a
7    job training program, the State contribution for wages may
8    be used for a maximum period of 52 weeks per job applicant.
9    The State contribution for wages shall be up to $4 per hour
10    for each eligible job applicant employed. The State
11    contribution for fringe benefits may be up to $1 per hour
12    for each eligible job applicant employed. However, the
13    employer may use funds from other sources to provide
14    increased wages to the applicants it employs. At least 75%
15    of the funds appropriated for the program must be used to
16    pay wages for eligible job applicants;
17        (2) to reimburse the Department in an amount not to
18    exceed 1% of the funds appropriated for the actual cost of
19    administering this Act, and to reimburse the Employment
20    Administrators in an amount not to exceed 4.5% of the funds
21    appropriated for their actual cost of administering this
22    Act. The Director and the Employment Administrators shall
23    reallocate funds from other sources to cover the
24    administrative costs of this program whenever possible;
25        (3) to provide child care services or subsidies to
26    applicants employed under this Act;

 

 

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1        (4) to provide workers' compensation coverage to
2    applicants employed by government or non-profit agencies
3    under this Act;
4        (5) to provide job search assistance, labor market
5    orientation, job-seeking skills, and referrals for other
6    services; or
7        (6) to purchase supplies and materials for projects
8    creating permanent improvements to public property in an
9    amount not to exceed 1% of the funds appropriated.
10    The Employment Administrator of each service delivery area
11shall submit to the Coordinator a spending plan establishing
12that funds allocated to the service delivery area will be used
13within one year after the effective date, in the manner
14required by this Act. Any funds allocated to a service delivery
15area for which there is no spending plan approved by the
16Coordinator shall be returned to the Department and may be
17reallocated by the Coordinator to other Employment
18Administrators.
 
19    Section 35. Employment Administrators; powers and duties.
20    (a) The Employment Administrator for each service delivery
21area has the powers and duties given in this Section and any
22additional duties given by the Coordinator.
23    (b) Each Employment Administrator shall develop an
24emergency employment development plan for its service delivery
25area under guidelines developed by the Coordinator and submit

 

 

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1it to the Coordinator within the period allowed by the
2Coordinator. To the extent feasible, the Employment
3Administrator shall seek input from potential eligible
4employers and the public.
5    (c) Each Employment Administrator shall publicize the
6program within its service delivery area to seek maximum
7participation by eligible job applicants and employers.
8    (d) Each Employment Administrator shall enter into
9contracts with eligible employers setting forth the terms of
10their participation in the program as required by this Act.
11    (e) Each Employment Administrator shall screen job
12applicants and employers to achieve the best possible placement
13of eligible job applicants with eligible employers.
14    (f) Each Employment Administrator shall maintain a list of
15eligible job applicants unable to secure employment under the
16program at the time of application. The list shall prioritize
17eligible job applicants and shall be used to fill jobs with
18eligible employers as they become available.
19    (g) Each Employment Administrator shall cooperate with
20local educational and training institutions to coordinate and
21publicize the availability of their resources to assure that
22applicants may receive training needed before or while employed
23in jobs which are available under the program.
24    (h) Each Employment Administrator may disburse funds not to
25exceed 1% of the amount allocated to its service delivery area
26for the purchase of supplies and materials for projects

 

 

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1creating permanent improvements to public property.
 
2    Section 40. Duties of other agencies.
3    (a) The Department of Commerce and Economic Opportunity
4shall publicize the Illinois Emergency Employment Development
5program and shall provide staff assistance as requested by
6Employment Administrators in the screening of businesses and
7the collection of data to the extent feasible under its
8existing budget and staff complement.
9    (b) The Board of Higher Education and the Community College
10Board shall review their policies for post-secondary
11vocational education to ensure that the programs serve the
12training needs of economically disadvantaged persons.
13Education programs shall attempt to provide training that will
14help individuals to obtain and retain employment. The training
15may include customized short-term training, basic skills
16training, programs to develop work habits, and other services
17designed for eligible job applicants and persons employed under
18this Act. Examples of education programs include, but are not
19limited to, adult vocational programs, adult basic or
20continuing education, area vocational-technical institutes,
21colleges, secondary education programs, and private and
22proprietary schools.
23    (c) The Secretary of Human Services shall provide to each
24Employment Administrator lists of currently licensed local day
25care facilities, updated quarterly, to be available to all

 

 

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1persons employed under this Act.
 
2    Section 45. Eligible government and non-profit agency
3employment. A government or non-profit agency is an eligible
4employer with respect to temporary work relief projects that
5are determined by the Employment Administrator to have
6long-term benefit to or be needed by the community, including,
7but not limited to, jobs in permanent public improvement
8projects, residential or public building weatherization
9projects, reforestation projects, mine land reclamation
10projects, tree planting or trimming projects, soil
11conservation projects, natural resource development projects,
12and community social service programs such as child care and
13home health care programs.
 
14    Section 50. Business employment.
15    (a) A business employer is an eligible employer if it
16enters into a written contract, signed and subscribed to under
17oath, with the Employment Administrator in its service delivery
18area, containing assurances that:
19        (1) funds received by the business shall be used only
20    as permitted under this Act;
21        (2) the business has submitted a plan to the Employment
22    Administrator (i) describing the duties and proposed
23    compensation of each employee proposed to be hired under
24    the program and (ii) demonstrating that, with the funds

 

 

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1    provided under this Act, the business is likely to succeed
2    and continue to employ persons hired under the program;
3        (3) the business will use the funds exclusively for
4    compensation and fringe benefits of eligible job
5    applicants, and the employees hired with the funds will
6    receive fringe benefits and other terms and conditions of
7    employment comparable to those provided to other employees
8    of the business who do comparable work;
9        (4) the funds are necessary to allow the business to
10    begin, or to employ additional people, but will not be used
11    to fill positions that would be filled even in the absence
12    of funds from this program;
13        (5) the business will cooperate with the Coordinator
14    and the Employment Administrator in collecting data to
15    assess the results of the program; and
16        (6) the business is in compliance with all applicable
17    affirmative action, fair labor, health, safety, and
18    environmental standards.
19    (b) In allocating funds among eligible businesses, the
20Employment Administrator shall give priority to businesses
21which best satisfy the following criteria:
22        (1) have a high potential for growth and long-term job
23    creation;
24        (2) are labor intensive;
25        (3) meet the definition of a small business as defined
26    in Section 5 of the Small Business Advisory Act;

 

 

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1        (4) make high use of local and Illinois resources;
2        (5) are under ownership of women and minorities;
3        (6) make high use of new technology;
4        (7) produce energy conserving materials or services or
5    are involved in development of renewable sources of energy;
6    and
7        (8) have their primary place of business in Illinois.
8    (c) A business receiving funds under this program shall
9repay 70% of the amount received for each eligible job
10applicant employed, who does not continue in the employment of
11the business beyond the 6-month subsidized period. If the
12employee continues in the employment of the business for one
13year or longer after the 6-month subsidized period, the
14business need not repay any of the funds received for that
15employee's wages and fringe benefits. If the employee continues
16in the employment of the business for a period of less than one
17year after the expiration of the 6-month subsidized period, the
18business shall receive a proportional reduction in the amount
19it must repay. If an employer dismisses an employee for good
20cause and works in good faith with the Employment Administrator
21to employ and train another person referred by the Employment
22Administrator, the payback formula shall apply as if the
23original person had continued in employment.
24    A repayment schedule shall be negotiated and agreed to by
25the Employment Administrator and the business prior to the
26disbursement of the funds and is subject to renegotiation. The

 

 

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1Employment Administrator shall forward payments received under
2this subdivision to the Coordinator on a monthly basis. The
3Coordinator shall deposit these payments into the Illinois
4Emergency Employment Development Fund.
 
5    Section 55. Illinois Emergency Employment Development
6Fund. The Illinois Emergency Employment Development Fund is
7created as a special fund in the State treasury. All payments
8from businesses pursuant to subsection (c) of Section 50 shall
9be deposited into this Fund, and all amounts in the Fund shall
10be appropriated to the Department for the purpose of making
11disbursements pursuant to Section 20.
 
12    Section 60. Worker displacement prohibited.
13    (a) An eligible employer may not terminate, lay off, or
14reduce the working hours of an employee for the purpose of
15hiring an individual with funds available under this Act.
16    (b) An eligible employer may not hire an individual with
17funds available under this Act if any other person is on layoff
18from the same or a substantially equivalent job.
19    (c) In order to qualify as an eligible employer, a
20government or non-profit agency or business must certify to the
21Employment Administrator that each job created and funded under
22this Act:
23        (1) will result in an increase in employment
24    opportunities over those which would otherwise be

 

 

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1    available;
2        (2) will not result in the displacement of currently
3    employed workers, including partial displacement such as
4    reduction in hours of nonovertime work, wages, or
5    employment benefits; and
6        (3) will not impair existing contracts for service or
7    result in the substitution of program funds for other funds
8    in connection with work that would otherwise be performed.
 
9    Section 65. Work incentive demonstration project.
10    (a) In order to maximize the opportunity for recipients of
11aid to families with dependent children to take full advantage
12of the jobs created by this Act, the Secretary of Human
13Services shall inform each applicant or recipient of benefits
14of the availability of this program.
15    (b) The Secretary of Human Services shall make changes in
16the State plan and rules, or seek any waivers or demonstration
17authority necessary to minimize the barriers to participation
18in the programs or to employment. Changes shall be sought in
19the following areas, including, but not limited to, allowances,
20child care, work expenses, the amount and duration of earning
21incentives, medical care coverage, limitations on the hours of
22employment, and the diversion of payments to wage subsidies.
23The Secretary of Human Services shall implement each change as
24soon as possible.
25    (c) Participants shall receive medical assistance and

 

 

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1other benefits provided under the aid to families with
2dependent children program according to the applicable
3standards and any authority granted by the Department of Health
4and Human Services.
5    (d) The Secretary of Human Services and the Director of
6Health and Human Services may adopt rules, including temporary
7rules, for the implementation of this Section.
 
8    Section 75. Termination; notification.
9    The Director shall immediately terminate the Illinois
10Emergency Employment Development program if and when none of
11the money appropriated remains. The Director shall immediately
12notify the Secretary of Human Services of the program's
13termination. The Secretary of Human Services shall immediately
14notify each local agency referring recipients of the program's
15termination and require the local agency to cease transferring
16recipients.
17    On the date the program is terminated, any balance
18remaining in the Illinois Emergency Employment Development
19Fund shall revert to the General Revenue Fund. Repayments under
20Section 50(c) that are made into the Fund on or after that date
21shall be deposited in the General Revenue Fund.
 
22    Section 80. Unemployed and underemployed; employment by
23State and other governmental units.
24    (a) The State of Illinois, its departments, agencies and

 

 

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1instrumentalities, and any unit of local government, school
2district or other body corporate and politic, may employ
3unemployed and underemployed persons as defined in the federal
4Emergency Employment Act of 1971, as amended, and Comprehensive
5Employment and Training Act of 1973, as amended, and eligible
6job applicants under this Act pursuant to the terms of those
7Acts.
8    (b) The provisions of Illinois law relating to preference
9in employment and promotion of persons having served in the
10armed services, the provisions of any law, rule or regulation,
11the provisions of any city charter or any ordinance or
12resolution, or the provisions of any other law or statute in
13conflict with the provisions of the federal Emergency
14Employment Act of 1971, as amended, and Comprehensive
15Employment and Training Act of 1973, as amended, and eligible
16job applicants under this Act shall not be applicable to the
17employment of the persons specified in subsection (a) of this
18Section.
 
19    Section 90. The State Finance Act is amended by adding
20Section 5.786 as follows:
 
21    (30 ILCS 105/5.786 new)
22    Sec. 5.786. The Illinois Emergency Employment Development
23Fund.
 
24    Section 99. Effective date. This Act takes effect July 1,

 

 

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12011.