Full Text of HB3418 103rd General Assembly
HB3418ham001 103RD GENERAL ASSEMBLY | Rep. Justin Slaughter Filed: 3/6/2023
| | 10300HB3418ham001 | | LRB103 29223 HLH 58206 a |
|
| 1 | | AMENDMENT TO HOUSE BILL 3418
| 2 | | AMENDMENT NO. ______. Amend House Bill 3418 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the | 5 | | Securing All Futures through Equitable Reinvestment (SAFER) | 6 | | Communities Act. | 7 | | Section 5. Intent. To reverse the trend of high | 8 | | unemployment among formerly incarcerated individuals and to | 9 | | spur the economic recovery of small businesses in Illinois, it | 10 | | is necessary to provide financial incentives for employers to | 11 | | create new, full-time jobs for individuals with felony | 12 | | conviction records. | 13 | | The intent of this Act is to facilitate the re-entry into | 14 | | society of formerly incarcerated individuals and to create | 15 | | financial incentives for employers that hire formerly | 16 | | incarcerated individuals. |
| | | 10300HB3418ham001 | - 2 - | LRB103 29223 HLH 58206 a |
|
| 1 | | Section 10. Definitions. As used in this Act: | 2 | | "Average wage" means the average annual wage paid to | 3 | | individuals who are employed in the same occupation as the | 4 | | participant in the metropolitan or nonmetropolitan statistical | 5 | | area where the participant's primary job site is located. | 6 | | "Average annual wage" shall be determined by the Department | 7 | | using the most recent data published by the Bureau of Labor | 8 | | Statistics of the United States Department of Labor in its | 9 | | Occupational Outlook Handbook, or any similar Bureau of Labor | 10 | | Statistics publication, as of the effective date of the | 11 | | agreement for wage reimbursement under this Act. | 12 | | "Barrier reduction funding" has the meaning given to that | 13 | | term in Section 605-415 of the Department of Commerce and | 14 | | Economic Opportunity Law of the Civil Administrative Code of | 15 | | Illinois. | 16 | | "Date of hire" means the first date on which a participant | 17 | | begins working for an employer as a full-time employee. | 18 | | "Department" means the Department of Commerce and Economic | 19 | | Opportunity. | 20 | | "Director" means the Director of Commerce and Economic | 21 | | Opportunity. | 22 | | "Disproportionately impacted area" means a census tract | 23 | | that is located in an R3 Area designated by the Restore, | 24 | | Reinvest, and Renew Program Board in accordance with Section | 25 | | 10-40 of the Cannabis Regulation and Tax Act. |
| | | 10300HB3418ham001 | - 3 - | LRB103 29223 HLH 58206 a |
|
| 1 | | "Employer" means an Illinois taxpayer that has an | 2 | | agreement with a Navigator to (i) hire at least one | 3 | | participant as a full-time employee and (ii) provide the | 4 | | employee with the knowledge or skills essential to the full | 5 | | and adequate performance of the job. | 6 | | "Full-time employee" means an individual who is employed | 7 | | for at least 30 hours each week in (i) a position that is | 8 | | covered by a collective bargaining agreement between the union | 9 | | and an employer or (ii) a position for which the individual | 10 | | receives a wage that meets or exceeds the average wage for that | 11 | | occupation. | 12 | | "Navigator" means any one or more of the following | 13 | | entities that has demonstrated expertise and effectiveness in | 14 | | administering workforce development programs for formerly | 15 | | incarcerated participants and is certified by the Department | 16 | | as a Navigator: a private nonprofit or not-for-profit | 17 | | organization, an industry association, an administrative | 18 | | entity under the federal Workforce Innovation and Opportunity | 19 | | Act, a community action agency, or a public or private | 20 | | educational institution. | 21 | | "Participant" means an individual who: | 22 | | (1) is an Illinois resident; | 23 | | (2) was an unemployed or underemployed individual | 24 | | immediately before being hired by the employer; | 25 | | (3) served a sentence of incarceration in a State or | 26 | | federal prison that (i) ends not more than 10 years before |
| | | 10300HB3418ham001 | - 4 - | LRB103 29223 HLH 58206 a |
|
| 1 | | the date the employee is accepted by a Navigator to | 2 | | participate in the program and (ii) ends or is expected to | 3 | | end no later than 12 months after the employee is accepted | 4 | | by a Navigator to participate in the program; and | 5 | | (4) has been accepted by a Navigator to participate in | 6 | | the program. | 7 | | "Program" means the Securing All Futures through Equitable | 8 | | Reinvestment (SAFER) Communities Wage Reimbursement Pilot | 9 | | Program created in this Act. | 10 | | "Underemployed individual" means an individual who: | 11 | | (1) works part-time but desires full-time employment; | 12 | | (2) works for wages not commensurate with the | 13 | | individual's demonstrated level of educational or skill | 14 | | achievement; or | 15 | | (3) is employed and is eligible for assistance under | 16 | | Section 6 of the Energy Assistance Act. | 17 | | "Unemployed individual" means an individual who is without | 18 | | a job and who wants and is available for work. The | 19 | | determination of whether an individual is without a job, for | 20 | | purposes of this definition, shall be made in accordance with | 21 | | the criteria used by the Bureau of Labor Statistics of the | 22 | | United States Department of Labor or as required by the | 23 | | relevant funding source and set forth in the Notice of Funding | 24 | | Opportunities. | 25 | | "Wage reimbursement" means the amount awarded by the | 26 | | Department to a Navigator to compensate the employer for the |
| | | 10300HB3418ham001 | - 5 - | LRB103 29223 HLH 58206 a |
|
| 1 | | employer's costs of employment for each participant hired by | 2 | | the employer. | 3 | | Section 15. Powers of the Department. The Department is | 4 | | granted and shall have all the powers necessary or convenient | 5 | | to carry out the purposes and provisions of this Act, | 6 | | including, but not limited to, the power and authority to: | 7 | | (1) adopt rules that are necessary and appropriate for | 8 | | the administration of this Act; | 9 | | (2) establish forms for applications, notifications, | 10 | | contracts, or any other agreements needed to implement | 11 | | this Act; | 12 | | (3) accept applications for the program under this Act | 13 | | at any time during the year and require that the | 14 | | applications be submitted through the Internet or by any | 15 | | other electronic means; | 16 | | (4) provide guidance and assistance to Navigators for | 17 | | the purpose of carrying out this Act and cooperate with | 18 | | Navigators to promote, foster, and support job creation in | 19 | | the State; | 20 | | (5) enter into agreements and memoranda of | 21 | | understanding with agencies of the federal government, | 22 | | units of local government, universities, research | 23 | | foundations or institutions, regional economic development | 24 | | corporations, not-for-profit organizations, or other | 25 | | organizations for the purpose of administering this Act; |
| | | 10300HB3418ham001 | - 6 - | LRB103 29223 HLH 58206 a |
|
| 1 | | (6) gather information about Navigators for the | 2 | | purpose of making any designations or certifications in | 3 | | furtherance of the purposes of this Act; | 4 | | (7) provide for sufficient personnel to adequately | 5 | | discharge the Department's duties and responsibilities | 6 | | described in this Act from any funds appropriated by the | 7 | | General Assembly for the administration of this Act; and | 8 | | (8) require Navigators, upon written request, to issue | 9 | | any necessary authorization to the appropriate federal, | 10 | | State, or local authority or any other person for the | 11 | | release to the Department of information requested by the | 12 | | Department, including, but not limited to, financial | 13 | | reports, returns, or records relating to the Navigators or | 14 | | to the amount of the wage reimbursement allowable under | 15 | | this Act. | 16 | | Section 20. SAFER Communities Wage Reimbursement Pilot | 17 | | Program. | 18 | | (a) The Department shall, subject to appropriation, create | 19 | | a program to award grants to Navigators for the purposes | 20 | | described in this Section. | 21 | | (b) The Department shall award grants to Navigators for | 22 | | the following purposes: | 23 | | (1) providing wage reimbursements to employers that | 24 | | hire participants, as provided in Sections 25 and 30; | 25 | | (2) collaborating with employers to support |
| | | 10300HB3418ham001 | - 7 - | LRB103 29223 HLH 58206 a |
|
| 1 | | participants who require on-the-job experience to gain job | 2 | | skills, develop a work history, and begin a network for | 3 | | entering the workforce; and | 4 | | (3) providing barrier reduction funding, including, | 5 | | but not limited to, transportation, housing, childcare, | 6 | | and technology services to participants, as needed. | 7 | | (c) The Department may also award grants for the following | 8 | | purposes to Navigators who are eligible to receive grants | 9 | | under subsection (b): | 10 | | (1) establishing retention coaching programs that | 11 | | support worker retention by continuing the services | 12 | | described in subparagraph (3) of subsection (b) for one | 13 | | year after job placement, as needed; and | 14 | | (2) supporting participants who aspire to participate | 15 | | in additional workforce development, training, and | 16 | | technical skills programs and opportunities. | 17 | | (d) Navigators shall use the Department's system of record | 18 | | to maintain a record of all participants who are eligible for | 19 | | the Program. Navigators shall verify each applicant's | 20 | | employment and conviction history to determine whether the | 21 | | applicant is eligible for participation in the program. | 22 | | Navigators shall notify applicants by email of the denial or | 23 | | approval of the application. Navigators may also send a | 24 | | physical copy of the denial or approval by first-class mail if | 25 | | the application indicates that email is not the applicant's | 26 | | preferred method of communication. Each denial letter issued |
| | | 10300HB3418ham001 | - 8 - | LRB103 29223 HLH 58206 a |
|
| 1 | | under this subsection shall state the reason why the | 2 | | individual's application is being denied. Navigators shall | 3 | | submit to the Department a record of each applicant's denial | 4 | | or approval. Navigators shall email qualified participants an | 5 | | electronic certification of eligibility with details about the | 6 | | wage subsidy program, which the participant may present to a | 7 | | prospective employer. The Navigator may also send a physical | 8 | | copy of the certification by first class mail if the | 9 | | application indicates that email is not the applicant's | 10 | | preferred method of communication. | 11 | | Section 25. Eligibility and reporting. | 12 | | (a) The Navigator shall enter into an agreement with the | 13 | | employer of an eligible participant to establish the general | 14 | | terms and conditions of wage reimbursements with respect to | 15 | | that participant. At a minimum, the agreement shall include: | 16 | | (1) the participant's name, social security number or | 17 | | individual taxpayer identification number, job | 18 | | description, and salary; | 19 | | (2) the physical address of the workplace at which the | 20 | | participant is based; | 21 | | (3) the negotiated reimbursement rate for the wage the | 22 | | Navigator would receive under this Act with respect to the | 23 | | participant listed on the application; and | 24 | | (4) any other information required by the Department. | 25 | | (b) Wage reimbursements provided to employers must not |
| | | 10300HB3418ham001 | - 9 - | LRB103 29223 HLH 58206 a |
|
| 1 | | directly or indirectly assist, promote, or deter union | 2 | | organizing. | 3 | | (c) Navigators shall submit monthly reports in the form | 4 | | and manner required by the Department that include the | 5 | | employment status of each participant. | 6 | | Section 30. Wage reimbursement. | 7 | | (a) An employer may enter into a wage reimbursement | 8 | | agreement under Section 25 for each participant who is | 9 | | employed by the employer as a full-time employee for a full | 10 | | calendar month as of the date the agreement is entered into, | 11 | | provided that the following conditions are met: | 12 | | (1) the participant shall be provided benefits and | 13 | | working conditions at the same level and to the same | 14 | | extent as other employees who have been employed by the | 15 | | employer for a similar length of time and do the same type | 16 | | of work as the participant; | 17 | | (2) starting from the date of hire of the participant, | 18 | | the employer shall maintain or increase its total number | 19 | | of full-time Illinois employees; and | 20 | | (3) the employer shall pay the participant a wage | 21 | | that, when annualized, meets or exceeds the average wage | 22 | | paid by the employer to other employees who have been | 23 | | employed by the employer for a similar length of time and | 24 | | do the same type of work as the participant. | 25 | | (b) The wage reimbursement received by an employer shall |
| | | 10300HB3418ham001 | - 10 - | LRB103 29223 HLH 58206 a |
|
| 1 | | be 50% of the wages earned by each participant as a result of | 2 | | his or her employment with the employer. However, if the | 3 | | participant's primary job site is located in a | 4 | | disproportionately impacted area, then the wage reimbursement | 5 | | shall be 75% of the wages earned by that participant. No | 6 | | employer shall receive a wage reimbursement for a particular | 7 | | participant for more than 12 consecutive months. | 8 | | Section 35. Data collection and reporting. For years in | 9 | | which it receives an appropriation for purposes of this Act, | 10 | | the Department shall make publicly available an annual report | 11 | | on the use, outcomes, and impact of the program described in | 12 | | this Act, including, but not limited to, the total number of | 13 | | participants hired under the program, disaggregated by | 14 | | categories of race, age, gender, hourly wage, length of job | 15 | | retention, recidivism status, job location by region, and | 16 | | employment industry. | 17 | | Section 40. Awareness promotion of the pilot program. The | 18 | | Department of Corrections shall implement procedures to | 19 | | promote awareness and participation in the program among | 20 | | eligible persons, including, but not limited to, the | 21 | | following: | 22 | | (1) The Department of Corrections shall ensure that | 23 | | the wardens or superintendents of all correctional | 24 | | institutions and facilities visibly post information about |
| | | 10300HB3418ham001 | - 11 - | LRB103 29223 HLH 58206 a |
|
| 1 | | the availability and registration process for the program | 2 | | in all common areas of their respective institutions, and | 3 | | shall broadcast the same via in-house institutional | 4 | | information television channels. The Department of | 5 | | Corrections shall ensure that updated information is | 6 | | distributed in a timely, visible, and accessible manner. | 7 | | (2) The Department of Corrections shall ensure that | 8 | | each incarcerated individual, upon release as a committed | 9 | | person on parole, mandatory supervised release, aftercare | 10 | | release, final discharge, or pardon, shall be provided | 11 | | with written information about the availability and | 12 | | registration process for the program. | 13 | | (3) The Department of Corrections shall provide to | 14 | | each parole office in this State information about the | 15 | | availability and application process for the program, | 16 | | which shall be posted in a visible and accessible manner. | 17 | | (4) The Department of Corrections shall distribute | 18 | | written information about the availability and application | 19 | | process for the program to the Community Support Advisory | 20 | | Councils of the Department of Corrections for use in | 21 | | re-entry programs across this State. | 22 | | Section 45. Funding. Implementation of this Act is subject | 23 | | to appropriation. | 24 | | Section 50. Rulemaking authority. Upon an appropriation |
| | | 10300HB3418ham001 | - 12 - | LRB103 29223 HLH 58206 a |
|
| 1 | | for the Program, the Department may adopt rules that are | 2 | | necessary to implement and administer this Act. | 3 | | Section 55. Repeal. This Act is repealed on December 31, | 4 | | 2029. | 5 | | Section 895. The Illinois Administrative Procedure Act is | 6 | | amended by adding Section 5-45.35 as follows: | 7 | | (5 ILCS 100/5-45.35 new) | 8 | | Sec. 5-45.35. Emergency rulemaking; Securing All Futures | 9 | | through Equitable Reinvestment (SAFER) Communities Act. To | 10 | | provide for the expeditious and timely implementation of the | 11 | | Securing All Futures through Equitable Reinvestment (SAFER) | 12 | | Communities Act, emergency rules implementing that Act may be | 13 | | adopted in accordance with Section 5-45 by the Department of | 14 | | Commerce and Economic Opportunity. The adoption of emergency | 15 | | rules authorized by Section 5-45 and this Section is deemed to | 16 | | be necessary for the public interest, safety, and welfare. | 17 | | This Section is repealed one year after the effective date | 18 | | of this amendatory Act of the 103rd General Assembly. | 19 | | Section 900. The Illinois Income Tax Act is amended by | 20 | | changing Section 216 and by adding Section 216.1 as follows: | 21 | | (35 ILCS 5/216) |
| | | 10300HB3418ham001 | - 13 - | LRB103 29223 HLH 58206 a |
|
| 1 | | Sec. 216. Credit for wages paid to ex-felons. | 2 | | (a) For each taxable year beginning on or after January 1, | 3 | | 2007 and before January 1, 2024 , each taxpayer is entitled to a | 4 | | credit against the tax imposed by subsections (a) and (b) of | 5 | | Section 201 of this Act in an amount equal to 5% of qualified | 6 | | wages paid by the taxpayer during the taxable year to one or | 7 | | more Illinois residents who are qualified ex-offenders. The | 8 | | total credit allowed to a taxpayer with respect to each | 9 | | qualified ex-offender may not exceed $1,500 for all taxable | 10 | | years. For partners, shareholders of Subchapter S | 11 | | corporations, and owners of limited liability companies, if | 12 | | the liability company is treated as a partnership for purposes | 13 | | of federal and State income taxation, there shall be allowed a | 14 | | credit under this Section to be determined in accordance with | 15 | | the determination of income and distributive share of income | 16 | | under Sections 702 and 704 and Subchapter S of the Internal | 17 | | Revenue Code. | 18 | | (b) For purposes of this Section, "qualified wages": | 19 | | (1) includes only wages that are subject to federal | 20 | | unemployment tax under Section 3306 of the Internal | 21 | | Revenue Code, without regard to any dollar limitation | 22 | | contained in that Section;
| 23 | | (2) does not include any amounts paid or incurred by | 24 | | an employer for any period to any qualified ex-offender | 25 | | for whom the employer receives federally funded payments | 26 | | for on-the-job training of that qualified ex-offender for |
| | | 10300HB3418ham001 | - 14 - | LRB103 29223 HLH 58206 a |
|
| 1 | | that period;
and
| 2 | | (3) includes only wages attributable to service | 3 | | rendered during the one-year period beginning with the day | 4 | | the qualified ex-offender begins work for the employer.
| 5 | | If the taxpayer has received any payment from a program | 6 | | established under Section 482(e)(1) of the federal Social | 7 | | Security Act with respect to a qualified ex-offender, then, | 8 | | for purposes of calculating the credit under this Section, the | 9 | | amount of the qualified wages paid to that qualified | 10 | | ex-offender must be reduced by the amount of the payment.
| 11 | | (c) For purposes of this Section, "qualified ex-offender" | 12 | | means any person who:
| 13 | | (1) has been convicted of a crime in this State or of | 14 | | an offense in any other jurisdiction, not including any | 15 | | offense or attempted offense that would subject a person | 16 | | to registration under the Sex Offender Registration Act; | 17 | | (2) was sentenced to a period of incarceration in an | 18 | | Illinois adult correctional center; and | 19 | | (3) was hired by the taxpayer within 3 years after | 20 | | being released from an Illinois adult correctional center. | 21 | | (d) In no event shall a credit under this Section reduce | 22 | | the taxpayer's liability to less than zero. If the amount of | 23 | | the credit exceeds the tax liability for the year, the excess | 24 | | may be carried forward and applied to the tax liability of the | 25 | | 5 taxable years following the excess credit year. The tax | 26 | | credit shall be applied to the earliest year for which there is |
| | | 10300HB3418ham001 | - 15 - | LRB103 29223 HLH 58206 a |
|
| 1 | | a tax liability. If there are credits for more than one year | 2 | | that are available to offset a liability, the earlier credit | 3 | | shall be applied first.
| 4 | | (e) This Section is exempt from the provisions of Section | 5 | | 250. | 6 | | (Source: P.A. 98-165, eff. 8-5-13.) | 7 | | (35 ILCS 5/216.1 new) | 8 | | Sec. 216.1. Credit for wages paid to ex-offenders. | 9 | | (a) In this Section: | 10 | | "Qualified ex-offender" means any person who was hired by | 11 | | the taxpayer within 10 years after being released from a | 12 | | correctional center in the State. | 13 | | "Qualified wages" includes only wages that are | 14 | | attributable to service rendered during the one-year period | 15 | | beginning with the day the qualified ex-offender begins work | 16 | | for the employer and are subject to federal unemployment tax | 17 | | under Section 3306 of the Internal Revenue Code, without | 18 | | regard to any dollar limitation contained in that Section. | 19 | | "Qualified wages" does not include any amounts paid or | 20 | | incurred by an employer for any period to any qualified | 21 | | ex-offender for whom the employer receives State-funded or | 22 | | federally funded payments for on-the-job training of that | 23 | | qualified ex-offender for that period. If the taxpayer has | 24 | | received any payment from a program established under Section | 25 | | 482(e)(1) of the federal Social Security Act with respect to a |
| | | 10300HB3418ham001 | - 16 - | LRB103 29223 HLH 58206 a |
|
| 1 | | qualified ex-offender, then the amount of the qualified wages | 2 | | paid to that qualified ex-offender must be reduced, for | 3 | | purposes of calculating the credit under this Section, by the | 4 | | amount of the payment. | 5 | | (b) For each taxable year beginning on or after January 1, | 6 | | 2024, each taxpayer is entitled to a credit against the tax | 7 | | imposed by subsections (a) and (b) of Section 201 of this Act | 8 | | in an amount equal to 10% of the qualified wages paid by the | 9 | | taxpayer during the taxable year to one or more Illinois | 10 | | residents who are qualified ex-offenders. For taxpayers | 11 | | employing 100 or more employees on the last day of the taxable | 12 | | year, the total credit allowed with respect to each qualified | 13 | | ex-offender may not exceed $1,500 for all taxable years. For | 14 | | taxpayers employing fewer than 100 employees on the last day | 15 | | of the taxable year, the total credit allowed with respect to | 16 | | each qualified ex-offender may not exceed $5,000 for all | 17 | | taxable years. | 18 | | (c) For partners and shareholders of Subchapter S | 19 | | corporations, there shall be allowed a credit under this | 20 | | Section to be determined in accordance with the determination | 21 | | of income and distributive share of income under Sections 702 | 22 | | and 704 and Subchapter S of the Internal Revenue Code. | 23 | | (d) In no event shall a credit under this Section reduce | 24 | | the taxpayer's liability to less than zero. If the amount of | 25 | | the credit exceeds the tax liability for the year, the excess | 26 | | may be carried forward and applied to the tax liability of the |
| | | 10300HB3418ham001 | - 17 - | LRB103 29223 HLH 58206 a |
|
| 1 | | 5 taxable years following the excess credit year. The tax | 2 | | credit shall be applied to the earliest year for which there is | 3 | | a tax liability. If there are credits for more than one year | 4 | | that are available to offset a liability, the earlier credit | 5 | | shall be applied first. | 6 | | (e) This Section is exempt from the provisions of Section | 7 | | 250.
| 8 | | Section 999. Effective date. This Act takes effect upon | 9 | | becoming law.".
|
|