Full Text of HB2300 103rd General Assembly
HB2300eng 103RD GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning finance.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Works Jobs Program Act is amended | 5 | | by changing Sections 20-15 and 20-20 as follows: | 6 | | (30 ILCS 559/20-15)
| 7 | | Sec. 20-15. Illinois Works Preapprenticeship Program; | 8 | | Illinois Works Bid Credit Program. | 9 | | (a) The Illinois Works Preapprenticeship Program is | 10 | | established and shall be administered by the Department. The | 11 | | goal of the Illinois Works Preapprenticeship Program is to | 12 | | create a network of community-based organizations throughout | 13 | | the State that will recruit, prescreen, and provide | 14 | | preapprenticeship skills training, for which participants may | 15 | | attend free of charge and receive a stipend, to create a | 16 | | qualified, diverse pipeline of workers who are prepared for | 17 | | careers in the construction and building trades. Upon | 18 | | completion of the Illinois Works Preapprenticeship Program, | 19 | | the candidates will be skilled and work-ready. | 20 | | (b) There is created the Illinois Works Fund, a special | 21 | | fund in the State treasury. The Illinois Works Fund shall be | 22 | | administered by the Department. The Illinois Works Fund shall | 23 | | be used to provide funding for community-based organizations |
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| 1 | | throughout the State. In addition to any other transfers that | 2 | | may be provided for by law, on and after July 1, 2019 at the | 3 | | direction of the Director of the Governor's Office of | 4 | | Management and Budget, the State Comptroller shall direct and | 5 | | the State Treasurer shall transfer amounts not exceeding a | 6 | | total of $25,000,000 from the Rebuild Illinois Projects Fund | 7 | | to the Illinois Works Fund. | 8 | | (c) Each community-based organization that receives | 9 | | funding from the Illinois Works Fund shall provide an annual | 10 | | report to the Illinois Works Review Panel by April 1 of each | 11 | | calendar year. The annual report shall include the following | 12 | | information: | 13 | | (1) a description of the community-based | 14 | | organization's recruitment, screening, and training | 15 | | efforts; | 16 | | (2) the number of individuals who apply to, | 17 | | participate in, and complete the community-based | 18 | | organization's program, broken down by race, gender, age, | 19 | | and veteran status; and | 20 | | (3) the number of the individuals referenced in item (2) | 21 | | of this subsection who are initially accepted and placed | 22 | | into apprenticeship programs in the construction and | 23 | | building trades. | 24 | | (d) The Department shall create and administer the | 25 | | Illinois Works Bid Credit Program that shall provide economic | 26 | | incentives, through bid credits, to encourage contractors and |
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| 1 | | subcontractors to provide contracting and employment | 2 | | opportunities to historically underrepresented populations in | 3 | | the construction industry. | 4 | | The Illinois Works Bid Credit Program shall allow | 5 | | contractors and subcontractors to earn bid credits for use | 6 | | toward future bids for public works projects contracted by the | 7 | | State or an agency of the State in order to increase the | 8 | | chances that the contractor and the subcontractors will be | 9 | | selected. | 10 | | Contractors or subcontractors may be eligible to earn for | 11 | | bid credits for employing apprentices who have completed the | 12 | | Illinois Works Preapprenticeship Program on public works | 13 | | projects contracted by the State or any agency of the State . | 14 | | Contractors or subcontractors shall earn bid credits at a rate | 15 | | established by the Department and based on labor hours worked | 16 | | on State-contracted public works projects by apprentices who | 17 | | have completed the Illinois Works Preapprenticeship Program. | 18 | | Contractors and subcontractors can use bid credits toward | 19 | | future bids for public works projects contracted or funded by | 20 | | the State or an agency of the State in order to increase the | 21 | | likelihood that the contractor and the subcontractors are | 22 | | selected as the contractor for the public works project toward | 23 | | which they have applied the bid credit. The Department shall | 24 | | establish the rate by rule and shall publish it on the | 25 | | Department's website. The rule may include maximum bid credits | 26 | | allowed per contractor, per subcontractor, per apprentice, per |
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| 1 | | bid, or per year. | 2 | | The Illinois Works Credit Bank is hereby created and shall | 3 | | be administered by the Department. The Illinois Works Credit | 4 | | Bank shall track the bid credits. | 5 | | A contractor or subcontractor who has been awarded bid | 6 | | credits under any other State program for employing | 7 | | apprentices who have completed the Illinois Works | 8 | | Preapprenticeship Program is not eligible to receive bid | 9 | | credits under the Illinois Works Bid Credit Program relating | 10 | | to the same contract. | 11 | | The Department shall report to the Illinois Works Review | 12 | | Panel the following: (i) the number of bid credits awarded by | 13 | | the Department; (ii) the number of bid credits submitted by | 14 | | the contractor or subcontractor to the agency administering | 15 | | the public works contract; and (iii) the number of bid credits | 16 | | accepted by the agency for such contract. Any agency that | 17 | | awards bid credits pursuant to the Illinois Works Credit Bank | 18 | | Program shall report to the Department the number of bid | 19 | | credits it accepted for the public works contract. | 20 | | Upon a finding that a contractor or subcontractor has | 21 | | reported falsified records to the Department in order to | 22 | | fraudulently obtain bid credits, the Department may bar the | 23 | | contractor or subcontractor from participating in the Illinois | 24 | | Works Bid Credit Program and may suspend the contractor or | 25 | | subcontractor from bidding on or participating in any public | 26 | | works project. False or fraudulent claims for payment relating |
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| 1 | | to false bid credits may be subject to damages and penalties | 2 | | under applicable law. | 3 | | (e) The Department shall adopt any rules deemed necessary | 4 | | to implement this Section. In order to provide for the | 5 | | expeditious and timely implementation of this Act, the | 6 | | Department may adopt emergency rules. The adoption of | 7 | | emergency rules authorized by this subsection is deemed to be | 8 | | necessary for the public interest, safety, and welfare.
| 9 | | (Source: P.A. 101-31, eff. 6-28-19; 101-601, eff. 12-10-19.) | 10 | | (30 ILCS 559/20-20)
| 11 | | Sec. 20-20. Illinois Works Apprenticeship Initiative. | 12 | | (a) The Illinois Works Apprenticeship Initiative is | 13 | | established and shall be administered by the Department. | 14 | | (1) Subject to the exceptions set forth in subsection | 15 | | (b) of this Section, apprentices shall be utilized on all | 16 | | public works projects estimated to cost $500,000 or more | 17 | | in accordance with this subsection (a). | 18 | | (2) For public works projects estimated to cost | 19 | | $500,000 or more, the goal of the Illinois Works | 20 | | Apprenticeship Initiative is that apprentices will perform | 21 | | either 10% of the total labor hours actually worked in | 22 | | each prevailing wage classification or 10% of the | 23 | | estimated labor hours in each prevailing wage | 24 | | classification, whichever is less. For contracts and grant | 25 | | agreements executed after the effective date of this |
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| 1 | | amendatory Act of the 103rd General Assembly, of this goal | 2 | | at least half of the labor hours of each prevailing wage | 3 | | classification performed by apprentices shall be performed | 4 | | by graduates of the Illinois Works Preapprenticeship | 5 | | Program. | 6 | | (b) Before or during the term of a contract subject to this | 7 | | Section, the Department may reduce or waive the goals set | 8 | | forth in paragraph (2) of subsection (a). Prior to the | 9 | | Department granting a request for a reduction or waiver, the | 10 | | Department shall determine, in its discretion, whether to hold | 11 | | a public hearing on the request. In determining whether to | 12 | | hold a public hearing, the Department may consider factors, | 13 | | including the scale of the project and whether the contractor | 14 | | or subcontractor seeking the reduction or waiver has | 15 | | previously requested reductions or waivers on other projects. | 16 | | The Department may also consult with the Business Enterprise | 17 | | Council under the Business Enterprise for Minorities, Women, | 18 | | and Persons with Disabilities Act and the Chief Procurement | 19 | | Officer of the agency administering the public works contract. | 20 | | The Department may grant a reduction or waiver upon a | 21 | | determination that: | 22 | | (1) the contractor or subcontractor has demonstrated | 23 | | that insufficient apprentices are available; | 24 | | (2) the reasonable and necessary requirements of the | 25 | | contract do not allow the goal to be met; | 26 | | (3) there is a disproportionately high ratio of |
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| 1 | | material costs to labor hours that makes meeting the goal | 2 | | infeasible; or | 3 | | (4) apprentice labor hour goals conflict with existing | 4 | | requirements, including federal requirements, in | 5 | | connection with the public work ; or . | 6 | | (5) the contractor or subcontractor has demonstrated | 7 | | that insufficient graduates of the Illinois Works | 8 | | Preapprenticeship Program are available to meet the | 9 | | requirements of paragraph (2) of subsection (a). | 10 | | (c) Contractors and subcontractors must submit a | 11 | | certification to the Department and the agency that is | 12 | | administering the contract, or the grant agreement funding the | 13 | | contract, demonstrating that the contractor or subcontractor | 14 | | has either : | 15 | | (1) met the apprentice labor hour goals set forth in | 16 | | paragraph (2) of subsection (a); or | 17 | | (2) received a reduction or waiver pursuant to | 18 | | subsection (b) ; or . | 19 | | (3) not complied with the labor hour goals in | 20 | | paragraph (2) of subsection (a) and did not receive a | 21 | | reduction or waiver pursuant to subsection (b). | 22 | | It shall be deemed to be a material breach of the contract, | 23 | | or the grant agreement funding the contract, and entitle the | 24 | | State to declare a default, terminate the contract or grant | 25 | | agreement funding it, and exercise those remedies provided for | 26 | | in the contract, at law, or in equity if the contractor or |
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| 1 | | subcontractor fails to submit the certification required in | 2 | | this subsection or submits false or misleading information. | 3 | | Failure to comply with the Illinois Works Apprenticeship | 4 | | Initiative may result in the State agency that contracted or | 5 | | funded the public works project: (i) terminating the contract | 6 | | or agreement involved, (ii) prohibiting the party that | 7 | | contracted with the State from participating in public | 8 | | contracts or agreements for a period not to exceed 3 years, | 9 | | (iii) seeking a penalty of up to 25% of the contract or | 10 | | agreement as a result of the violation, or (iv) any | 11 | | combination of items (i) through (iii). State agencies shall | 12 | | report to the Department all projects that did not comply with | 13 | | the Illinois Works Apprenticeship Initiative and any action | 14 | | taken against the noncompliant party and shall provide an | 15 | | action plan to address the reported instance of noncompliance | 16 | | with the Illinois Works Apprenticeship Initiative. | 17 | | (d) No later than one year after the effective date of this | 18 | | Act, and by April 1 of every calendar year thereafter, the | 19 | | Department of Labor shall submit a report to the Illinois | 20 | | Works Review Panel regarding the use of apprentices under the | 21 | | Illinois Works Apprenticeship Initiative for public works | 22 | | projects. To the extent it is available, the report shall | 23 | | include the following information: | 24 | | (1) the total number of labor hours on each project | 25 | | and the percentage of labor hours actually worked by | 26 | | apprentices on each public works project; |
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| 1 | | (2) the number of apprentices used in each public | 2 | | works project, broken down by trade; and | 3 | | (3) the number and percentage of minorities, women, | 4 | | and veterans utilized as apprentices on each public works | 5 | | project. | 6 | | (e) The Department shall adopt any rules deemed necessary | 7 | | to implement the Illinois Works Apprenticeship Initiative. In | 8 | | order to provide for the expeditious and timely implementation | 9 | | of this Act, the Department may adopt emergency rules. The | 10 | | adoption of emergency rules authorized by this subsection is | 11 | | deemed to be necessary for the public interest, safety, and | 12 | | welfare. | 13 | | (f) The Illinois Works Apprenticeship Initiative shall not | 14 | | interfere with any contracts or grants in existence on the | 15 | | effective date of this Act.
| 16 | | (g) Notwithstanding any provisions to the contrary in this | 17 | | Act, any State agency that administers a construction program | 18 | | for which federal law or regulations establish standards and | 19 | | procedures for the utilization of apprentices may implement | 20 | | the Illinois Works Apprenticeship Initiative using the federal | 21 | | standards and procedures for the establishment of goals and | 22 | | utilization procedures for the State-funded, as well as the | 23 | | federally assisted, portions of the program. In such cases, | 24 | | these goals shall not exceed those established pursuant to the | 25 | | relevant federal statutes or regulations. | 26 | | (Source: P.A. 101-31, eff. 6-28-19; 101-601, eff. 12-10-19.)
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| 1 | | Section 99. Effective date. This Act takes effect upon | 2 | | becoming law.
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