SB2305 EngrossedLRB098 10748 NHT 41096 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Public Community College Act is amended by
5adding Section 3-42.4 as follows:
 
6    (110 ILCS 805/3-42.4 new)
7    Sec. 3-42.4. New jobs training.
8    (a) In this Section:
9    "Agreement" means the agreement between an employer and a
10board concerning a project.
11    "Bonds" means bonds that are payable from a sufficient
12portion of the future receipts of payments authorized by an
13agreement, which receipts must be pledged to the payment of
14principal of and interest on the bonds.
15    "Certificate" means debt certificates that are payable
16from a sufficient portion of the future receipts of payments
17authorized by an agreement, which receipts must be pledged to
18the payment of principal of and interest on the debt
19certificates.
20    "Date of commencement of the project" means the date of the
21agreement.
22    "Employee" means the person employed in a new job.
23    "Employer" means the person providing new jobs within the

 

 

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1boundaries of the community college district and entering into
2an agreement.
3    "Industry" means a business engaged in interstate or
4intrastate commerce for the purpose of manufacturing,
5processing, or assembling products, conducting research and
6development, or providing services in interstate commerce, but
7excludes retail, health, or professional services. "Industry"
8does not include a business that closes or substantially
9reduces its operation in one area of this State and relocates
10substantially the same operation in another area of this State.
11This definition does not prohibit a business from expanding its
12operations in another area of this State, provided that
13existing operations of a similar nature are not closed or
14substantially reduced.
15    "New job" means a job in a new or expanding industry, but
16does not include jobs of recalled workers or replacement jobs
17or other jobs that formerly existed in the industry in this
18State.
19    "New jobs training program" or "program" means the project
20or projects established by a community college district for the
21creation of jobs by providing education and training of workers
22for new jobs for new or expanding industry within the
23boundaries of the community college district.
24    "Program costs" means all necessary and incidental costs of
25providing program services.
26    "Program services" includes without limitation the

 

 

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1following:
2        (1) New jobs training.
3        (2) Adult basic education and job-related instruction.
4        (3) Vocational and skill-assessment services and
5    testing.
6        (4) Training facilities, equipment, materials, and
7    supplies.
8        (5) On-the-job training.
9        (6) Administrative expenses for the new jobs training
10    program.
11        (7) Subcontracted services with public or private
12    colleges or universities or other federal, State, or local
13    agencies.
14        (8) Contracted or professional services.
15        (9) The issuance of certificates.
16    "Project" means a training arrangement that is the subject
17of an agreement entered into between the board and an employer
18to provide program services.
19    (b) A board may enter into an agreement to establish a
20project. If an agreement is entered into, the board and the
21employer shall notify the State Board as soon as possible. An
22agreement shall provide for program costs, including deferred
23costs, that may be paid from one or a combination of the
24following sources:
25        (1) Property taxes to be received or derived from an
26    employer's business property where new jobs are created as

 

 

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1    a result of the project.
2        (2) Tuition, student fees, or special charges fixed by
3    the board to defray program costs in whole or in part.
4        (3) Guarantee of payments to be received under item (1)
5    or (2) of this subsection (b).
6    (c) Payment of program costs must not be deferred for a
7period longer than 10 years from the date of commencement of
8the project.
9    (d) Costs of on-the-job training for employees must not
10exceed 50% of the annual gross payroll costs for up to one year
11of the new jobs. For purposes of this subsection (d), "gross
12payroll" means the gross wages, salaries, and benefits for the
13jobs-in-training in the project.
14    (e) An agreement shall include a provision that fixes the
15minimum amount of property taxes or tuition and fee payments
16that shall be paid for program costs.
17    (f) To provide funds for the present payment of the costs
18of a new jobs training program, the board may borrow money and
19issue and sell debt certificates or bonds payable from a
20sufficient portion of the future receipts of payments
21authorized by the agreement. The receipts shall be pledged to
22the payment of principal of and interest on the debt
23certificates or bonds.
24    (g) Certificates or bonds may be sold at public sale or at
25private sale at par, premium, or discount at the discretion of
26the board.

 

 

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1    (h) Certificates or bonds may be issued with respect to a
2single project or multiple projects and may contain terms or
3conditions as the board may provide by resolution authorizing
4the issuance of the certificates or bonds.
5    (i) Certificates or bonds issued to refund other
6certificates or bonds may be sold at public sale or at private
7sale as provided in this Section, with the proceeds from the
8sale to be used for the payment of the debt certificates or
9bonds being refunded. The refunding debt certificates or bonds
10may be exchanged in payment and discharge of the certificates
11or bonds being refunded, in installments at different times or
12an entire issue or series at one time. Refunding certificates
13or bonds may be sold or exchanged at any time on, before, or
14after the maturity of the outstanding certificates or bonds to
15be refunded, may be issued for the purpose of refunding a like,
16greater, or lesser principal amount of certificates or bonds,
17and may bear a higher, lower, or equivalent rate of interest
18than the certificates or bonds being renewed or refunded.
19    (j) To further secure the payment of the debt certificates
20or bonds, the board shall, by resolution, provide for the
21assessment of an annual levy of a standby tax upon all taxable
22property within the community college district. A copy of the
23resolution shall be sent to the county clerk of each county in
24which the community college district is located. The revenues
25from the standby tax shall be deposited into a special fund and
26shall be expended only for the payment of principal of and

 

 

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1interest on the certificates or bonds issued as provided in
2this Section, when the receipt of payment for program costs as
3provided in the agreement is insufficient. If payments are
4necessary and made from the special fund, the amount of the
5payments shall be promptly repaid into the special fund from
6the first available payments received for program costs as
7provided in the agreement that are not required for the payment
8of principal of or interest on certificates or bonds due. No
9reserves may be built up in this fund in anticipation of a
10projected default. The board shall adjust the annual standby
11tax levy for each year to reflect the amount of revenues in the
12special fund and the amount of principal and interest that is
13due in that year.
14    (k) Before debt certificates or bonds are issued, the board
15shall publish once a notice of its intention to issue the
16certificates or bonds, stating the amount, the purpose, and the
17project or projects for which the certificates or bonds are to
18be issued. A person may, within 15 days after the publication
19of the notice, by action in the circuit court of the county in
20the area within which the community college district is
21located, appeal the decision of the board in proposing to issue
22the certificates or bonds. The action of the board in
23determining to issue the certificates or bonds is final and
24conclusive unless the circuit court finds that the board has
25exceeded its legal authority. An action shall not be brought
26that questions the legality of the certificates or bonds, the

 

 

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1power of the board to issue the certificates or bonds, the
2effectiveness of any proceedings relating to the authorization
3of the project, or the authorization and issuance of the
4certificates or bonds from and after 15 days from the
5publication of the notice of intention to issue.
6    (l) The board shall determine if revenues are sufficient to
7secure the faithful performance of obligations in the
8agreement.
9    (m) To test the feasibility of statewide implementation,
10Community College District No. 503, Community College District
11No. 532, Community College District No. 529, and Community
12College District No. 522 shall develop and implement pilot
13initiatives. The results must be reported to the State Board
14and the General Assembly to determine the feasibility of
15statewide implementation.