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90_SB1940
New Act
30 ILCS 105/5.480 new
35 ILCS 5/701.2 new
Creates the Illinois Industrial New Jobs Training Act.
Provides for the establishment of job training programs by
educational intermediaries, with preference to be given to
community colleges. Provides for the funding of the training
programs. Amends the State Finance Act to create the
Industrial New Jobs Training Fund. Provides that moneys in
the Fund shall be used to finance agreements entered into
under the Illinois Industrial New Jobs Training Act.
Provides that interest earned on the Fund shall be deposited
into the General Revenue Fund. Provides that amounts in
excess of $50,000,000 in the Fund shall be transferred to the
General Revenue Fund. Provides that at least $10,000,000
shall be held in the Industrial New Jobs Training Fund at all
times unless the Governor approves a transfer to the General
Revenue Fund or a waiver of the minimum balance requirement.
Authorizes the issuance of up to $10,000,000 in notes for the
Act's purposes. Amends the Illinois Income Tax Act. Directs
the Department of Revenue to deposit the amounts required to
be withheld from new employees into the Industrial New Jobs
Training Fund for a period of one year after the new employee
is hired. Effective January 1, 1999.
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1 AN ACT in relation to job training.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short Title. This Act may be cited as the
5 Illinois Industrial New Jobs Training Act.
6 Section 5. Definitions. As used in this Act, unless the
7 context otherwise requires:
8 "Agreement" is the agreement between an employer, an
9 educational intermediary, and the Department of Commerce and
10 Community Affairs.
11 "Community College" is a community college established
12 under the Public Community College Act.
13 "Department" is the Department of Commerce and Community
14 Affairs.
15 "Educational intermediary" means a community college
16 established under the Public Community College Act, a private
17 business and vocational school certified by the State Board
18 of Education as provided by the Private Business and
19 Vocational School Act, the University of Illinois, Southern
20 Illinois University, Chicago State University, Eastern
21 Illinois University, Governors State University, Illinois
22 State University, Northeastern Illinois University, Northern
23 Illinois University, Western Illinois University and any
24 other private institution of higher education that offers
25 degrees and instruction above the high school level that has
26 a campus and related facilities located within the State.
27 "Employee" means a person employed in a new job.
28 "Employer" is the person providing new jobs within the
29 State and who has entered into an agreement with the
30 Department.
31 "Industry" means a business engaged in interstate or
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1 intrastate commerce for the purpose of manufacturing,
2 processing, or assembling products, conducting research and
3 development, or providing services in interstate commerce,
4 but excludes retail, health, or professional services.
5 "Industry" does not include a business that closes or
6 substantially reduces its operation in one area of the State
7 and relocates substantially the same operation in another
8 area of the State. This provision does not prohibit a
9 business from expanding its operations in another area of the
10 State provided that existing operations of a similar nature
11 are not closed or substantially reduced in another area of
12 the State.
13 "New job" means a job in a new or expanding industry but
14 does not include jobs of recalled workers or replacement jobs
15 or other jobs that formerly existed in the industry within
16 the State of Illinois.
17 "New jobs training program" or "program" means the
18 project or projects established by an educational
19 intermediary for the creation of jobs by providing education
20 and training of workers for new jobs for new or expanding
21 industry within the State.
22 "Program costs" means all the necessary and incidental
23 costs of providing program services.
24 "Program services" includes, but is not limited to the
25 following:
26 (a) New jobs training and customized skill training;
27 (b) Adult basic education and job related instruction;
28 (c) Vocational and skill-assessment services and testing
29 and pre-employment training programs;
30 (d) Training facilities, equipment, materials and
31 supplies;
32 (e) On-the-job training, including quality improvement
33 training;
34 (f) Administrative expenses for the new jobs training;
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1 (g) Subcontracted services with other educational
2 intermediaries, other federal, State or local agencies; and
3 (h) Contracted or professional services.
4 "Project" means a training arrangement that is the
5 subject of an agreement entered into between the Department,
6 an educational intermediary, and an employer to provide
7 program services.
8 Section 10. Supplemental support. Any funding for a
9 project under this Act shall be supplemental to any job
10 training grants or programs offered by the Department to
11 employers as provided under the Civil Administrative Code or
12 any other Act the Department is authorized to administer for
13 job training.
14 Section 15. Priority of educational intermediaries. For
15 projects that are funded under this Act, the Department shall
16 give priority to those projects involving community colleges
17 established under the Public Community College Act. The
18 priority provided under this Section shall not outweigh the
19 Departmental opinion on the use of funds for the most
20 efficient and effective means for delivering job training
21 services for an employer.
22 Section 20. Agreements.
23 (a) Agreements entered into by the Department, an
24 educational intermediary, and an employer shall be subject to
25 rules adopted by the Department. An agreement shall provide
26 for program services to be provided by the educational
27 intermediary for the job training of the employees of the
28 employer and the program costs, including any deferred costs,
29 for the training of employees for a new job. The funding of
30 the training may be paid either in whole or part by the
31 following:
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1 (1) The Industrial New Jobs Training Fund;
2 (2) Tuition, fees, or special charges paid by the
3 employer; or
4 (3) Any supplemental funds provided by any other
5 government agency, financial institution, or entity.
6 (b) The agreement shall specify the program services to
7 be offered by the educational intermediary.
8 (c) For agreements funded through the Industrial New
9 Jobs Training Fund, the agreement shall constitute a lien
10 against the assets and property of the employer until either
11 of the following have been satisfied:
12 (1) the amount of moneys expended from the
13 Industrial New Jobs Training Fund on behalf of an
14 employer has been paid to the Fund, either through direct
15 payment, in lump sum, or an agreed payment schedule by
16 the employer and the Department; or
17 (2) an amount of money equal to the amount of
18 Illinois Income Tax withholding taxes paid by the new
19 employees, who have been trained through the agreement,
20 equal the amount of funds expended from the Industrial
21 New Jobs Training Fund for training.
22 The lien shall be recorded in the county where the
23 employer has the facility where the new employees are to be
24 employed. The Department may waive the lien requirement if
25 the employer has a demonstrated record of financial
26 responsibility or the circumstances of the agreement do not
27 merit the cost effectiveness of filing the lien. A lien may
28 be waived only by the Director of the Department with the
29 reasons for waiving the lien stated in the agreement.
30 (d) The agreement shall limit any administrative costs
31 of the educational intermediary to no greater than 10% of the
32 total cost of job training program. For the purposes of this
33 subsection, "administrative costs" shall be the operational
34 costs of administering a job training program by the
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1 educational intermediary, which shall include, but may not be
2 limited to, record keeping, instructional oversight by a
3 non-teaching administrator, and other activities not directly
4 related to job training instruction.
5 (e) Prior to entering into an agreement, the Department
6 and the employer shall have the right to inspect and review
7 the job training facilities of the educational intermediary
8 to determine the capabilities of providing the training
9 needed by the employer.
10 (f) An agreement shall include the right of the
11 Department to request from an employer the following
12 information prior to the approval of an agreement:
13 (1) how the employer is legally organized, whether
14 as a corporation, limited liability company, partnership,
15 or other type of legal entity under the laws of this
16 State, any other state, or a foreign nation;
17 (2) a listing of the officers and principal owners
18 of the employer;
19 (3) an audited financial statement of the employer;
20 or
21 (4) any other information that the Department may
22 require consistent with the purposes of this Act.
23 (g) All agreements upon execution shall be public
24 documents and available for public inspection. Any
25 proprietary information affecting a product or service of the
26 employer, as relating to the agreement, may be exempt from
27 the disclosure requirement upon approval of the Department.
28 Section 25. Worker protection. No agreement initiated
29 under this Act shall in any way diminish or deny the rights
30 of employees subject to an agreement to avail themselves of
31 the Workers' Compensation Act, the Workers' Occupational
32 Diseases Act, the Unemployment Insurance Act, the Minimum
33 Wage Law, or any other law of this State or the federal
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1 government.
2 Section 30. Annual report. The Department shall report
3 annually to the Governor and the General Assembly on the
4 activities of the Department under this Act.
5 Section 35. Receipts and reimbursements. Any money
6 received by the Department as reimbursement for training
7 expenses, unused training funds, and any other receipts shall
8 be deposited into the Industrial New Jobs Training Fund.
9 Section 40. The Industrial New Jobs Training Fund. All
10 amounts withheld from new employees, as provided in Section
11 701.2 of the Illinois Income Tax Act, shall be deposited into
12 the Industrial New Jobs Training Fund, which is created as a
13 special fund in the State treasury. The Fund shall be
14 administered by the Department. The Department shall
15 distribute to educational intermediaries the funds necessary
16 to implement an agreement as provided in Section 20 of this
17 Act. Amounts deposited into the Fund in excess of
18 $50,000,000 shall be transferred from the Fund to the General
19 Revenue Fund. Any accrued interest on moneys in the Fund
20 shall be deposited into the General Revenue Fund. A minimum
21 balance of at least $10,000,000 shall be maintained in the
22 Industrial New Jobs Training Fund at all times unless the
23 Governor authorizes a transfer from the Fund to the General
24 Revenue Fund. In a calendar year in which there is no
25 increase in the number of new jobs or there is a decrease in
26 the number of jobs from the previous calendar year, the
27 Governor may transfer to the Fund from the General Revenue
28 Fund an amount sufficient to conduct job training under this
29 Act or may authorize a waiver of the minimum balance
30 requirement.
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1 Section 45. Notes. Subject to approval of the Governor,
2 the Department of Commerce and Community Affairs may issue a
3 maximum of $10,000,000 in notes for one year beginning
4 January 1, 1999 for the purposes of this Act. The notes
5 shall be retired with funds from the Industrial New Jobs
6 Training Fund, and the debt payments on the notes shall have
7 priority over any other expenditure made under the Act. The
8 notes shall be payable within 10 years from their date of
9 issue.
10 Section 105. The State Finance Act is amended by adding
11 Section 5.480 as follows:
12 (30 ILCS 105/5.480 new)
13 Sec. 5.480. The Industrial New Jobs Training Fund.
14 Section 110. The Illinois Income Tax Act is amended by
15 adding Section 701.2 as follows:
16 (35 ILCS 5/701.2 new)
17 Sec. 701.2. Withholding from new employees.
18 Notwithstanding any provision of law to the contrary, the
19 Department shall deposit into the Industrial New Jobs
20 Training Fund an amount equal to all amounts withheld under
21 Section 701 from a new employee of an existing or a new
22 business for a period of one year after that employee is
23 hired. For purposes of this Section, a "new employee" means
24 an employee of a new employer and all additional employees
25 hired by an employer of an existing business that were not
26 reported to the Department as of December 31 of the previous
27 year. The Department shall adopt rules to implement the
28 provisions of this Section and shall consult with the
29 Department of Employment Security concerning the adoption of
30 rules relating to the definition of a "new employee".
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1 Section 999. Effective date. This Act takes effect
2 January 1, 1999.