Sen. Terry Link

Filed: 4/10/2013

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2305

2    AMENDMENT NO. ______. Amend Senate Bill 2305 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1authorized by an agreement, which receipts must be pledged to
2the payment of principal of and interest on the debt
3certificates.
4    "Date of commencement of the project" means the date of the
5agreement.
6    "Employee" means the person employed in a new job.
7    "Employer" means the person providing new jobs within the
8boundaries of the community college district and entering into
9an agreement.
10    "Industry" means a business engaged in interstate or
11intrastate commerce for the purpose of manufacturing,
12processing, or assembling products, conducting research and
13development, or providing services in interstate commerce, but
14excludes retail, health, or professional services. "Industry"
15does not include a business that closes or substantially
16reduces its operation in one area of this State and relocates
17substantially the same operation in another area of this State.
18This definition does not prohibit a business from expanding its
19operations in another area of this State, provided that
20existing operations of a similar nature are not closed or
21substantially reduced.
22    "New job" means a job in a new or expanding industry, but
23does not include jobs of recalled workers or replacement jobs
24or other jobs that formerly existed in the industry in this
25State.
26    "New jobs training program" or "program" means the project

 

 

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1or projects established by a community college district for the
2creation of jobs by providing education and training of workers
3for new jobs for new or expanding industry within the
4boundaries of the community college district.
5    "Program costs" means all necessary and incidental costs of
6providing program services.
7    "Program services" includes without limitation the
8following:
9        (1) New jobs training.
10        (2) Adult basic education and job-related instruction.
11        (3) Vocational and skill-assessment services and
12    testing.
13        (4) Training facilities, equipment, materials, and
14    supplies.
15        (5) On-the-job training.
16        (6) Administrative expenses for the new jobs training
17    program.
18        (7) Subcontracted services with public or private
19    colleges or universities or other federal, State, or local
20    agencies.
21        (8) Contracted or professional services.
22        (9) The issuance of certificates.
23    "Project" means a training arrangement that is the subject
24of an agreement entered into between the board and an employer
25to provide program services.
26    (b) A board may enter into an agreement to establish a

 

 

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1project. If an agreement is entered into, the board and the
2employer shall notify the State Board as soon as possible. An
3agreement shall provide for program costs, including deferred
4costs, that may be paid from one or a combination of the
5following sources:
6        (1) Property taxes to be received or derived from an
7    employer's business property where new jobs are created as
8    a result of the project.
9        (2) Tuition, student fees, or special charges fixed by
10    the board to defray program costs in whole or in part.
11        (3) Guarantee of payments to be received under item (1)
12    or (2) of this subsection (b).
13    (c) Payment of program costs must not be deferred for a
14period longer than 10 years from the date of commencement of
15the project.
16    (d) Costs of on-the-job training for employees must not
17exceed 50% of the annual gross payroll costs for up to one year
18of the new jobs. For purposes of this subsection (d), "gross
19payroll" means the gross wages, salaries, and benefits for the
20jobs-in-training in the project.
21    (e) An agreement shall include a provision that fixes the
22minimum amount of property taxes or tuition and fee payments
23that shall be paid for program costs.
24    (f) To provide funds for the present payment of the costs
25of a new jobs training program, the board may borrow money and
26issue and sell debt certificates or bonds payable from a

 

 

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1sufficient portion of the future receipts of payments
2authorized by the agreement. The receipts shall be pledged to
3the payment of principal of and interest on the debt
4certificates or bonds.
5    (g) Certificates or bonds may be sold at public sale or at
6private sale at par, premium, or discount at the discretion of
7the board.
8    (h) Certificates or bonds may be issued with respect to a
9single project or multiple projects and may contain terms or
10conditions as the board may provide by resolution authorizing
11the issuance of the certificates or bonds.
12    (i) Certificates or bonds issued to refund other
13certificates or bonds may be sold at public sale or at private
14sale as provided in this Section, with the proceeds from the
15sale to be used for the payment of the debt certificates or
16bonds being refunded. The refunding debt certificates or bonds
17may be exchanged in payment and discharge of the certificates
18or bonds being refunded, in installments at different times or
19an entire issue or series at one time. Refunding certificates
20or bonds may be sold or exchanged at any time on, before, or
21after the maturity of the outstanding certificates or bonds to
22be refunded, may be issued for the purpose of refunding a like,
23greater, or lesser principal amount of certificates or bonds,
24and may bear a higher, lower, or equivalent rate of interest
25than the certificates or bonds being renewed or refunded.
26    (j) To further secure the payment of the debt certificates

 

 

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

 

 

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1the area within which the community college district is
2located, appeal the decision of the board in proposing to issue
3the certificates or bonds. The action of the board in
4determining to issue the certificates or bonds is final and
5conclusive unless the circuit court finds that the board has
6exceeded its legal authority. An action shall not be brought
7that questions the legality of the certificates or bonds, the
8power of the board to issue the certificates or bonds, the
9effectiveness of any proceedings relating to the authorization
10of the project, or the authorization and issuance of the
11certificates or bonds from and after 15 days from the
12publication of the notice of intention to issue.
13    (l) The board shall determine if revenues are sufficient to
14secure the faithful performance of obligations in the
15agreement.
16    (m) To test the feasibility of statewide implementation,
17Community College District No. 503, Community College District
18No. 532, Community College District No. 529, and Community
19College District No. 522 shall develop and implement pilot
20initiatives. The results must be reported to the State Board
21and the General Assembly to determine the feasibility of
22statewide implementation.".