SB1691 104TH GENERAL ASSEMBLY

LRB104 09975 HLH 20045 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB1691

Introduced 2/5/2025, by Sen. David Koehler

SYNOPSIS AS INTRODUCED:

30 ILCS 559/20-10
30 ILCS 559/20-15
30 ILCS 559/20-20
30 ILCS 559/20-25

Amends the Illinois Works Jobs Program Act. Provides that the term "community-based organization" includes a high-school based program. Provides that funding from the Illinois Works Fund shall be categorized based on Illinois Department of Transportation regions. Adds a member to the Illinois Works Review panel who shall be a representative of a community-based organization that addresses high school-based workforce programs. Makes other changes.

A BILL FOR

AN ACT concerning finance.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Works Jobs Program Act is amended by changing Sections 20-10, 20-15, 20-20, and 20-25 as follows:

(30 ILCS 559/20-10)

Sec. 20-10. Definitions.

"Apprentice" means a participant in an apprenticeship program approved by and registered with the United States Department of Labor's Bureau of Apprenticeship and Training. For purposes of bid credit eligibility pursuant to Section 20-15 of this Act, "apprentice" means an individual who (i) has completed the Illinois Works Preapprenticeship Program, (ii) is working in a construction and building trade, and (iii) has certification approved by the Department that the individual is anticipated to be a participant in an apprenticeship program approved by and registered with the United States Department of Labor's Bureau of Apprenticeship and Training within 12 months after completing the Illinois Works Preapprenticeship Program.

"Apprenticeship program" means an apprenticeship and training program approved by and registered with the United States Department of Labor's Bureau of Apprenticeship and Training.

"Bid credit" means a virtual dollar for a contractor or subcontractor to use toward future bids on contracts with the State for public works projects.

"Community-based organization" means a nonprofit organization, including an accredited public college or university or a high school-based program, selected by the Department to participate in the Illinois Works Preapprenticeship Program. To qualify as a "community-based organization", the organization must demonstrate the following:

(1) the ability to effectively serve diverse and underrepresented populations, including by providing employment services to such populations;

(2) knowledge of the construction and building trades;

(3) the ability to recruit, prescreen, and provide preapprenticeship training to prepare workers for employment in the construction and building trades; and

(4) a plan to provide the following:

(A) preparatory classes;

(B) workplace readiness skills, such as resume preparation and interviewing techniques;

(C) strategies for overcoming barriers to entry and completion of an apprenticeship program; and

(D) any prerequisites for acceptance into an apprenticeship program.

"Contractor" means a person, corporation, partnership, limited liability company, or joint venture entering into a contract to construct a public work.

"Department" means the Department of Commerce and Economic Opportunity.

"Labor hours" means the total hours for workers who are receiving an hourly wage and who are directly employed for the public works project. "Labor hours" includes hours performed by workers employed by the contractor and subcontractors on the public works project. "Labor hours" does not include hours worked by the forepersons, superintendents, owners, and workers who are not subject to prevailing wage requirements.

"Minorities" means minority persons as defined in the Business Enterprise for Minorities, Women, and Persons with Disabilities Act.

"Public works" means all projects, contracted or funded by the State or any agency of the State, in whole or in part, from appropriated capital funds, that constitute public works under the Prevailing Wage Act.

"Subcontractor" means a person, corporation, partnership, limited liability company, or joint venture that has contracted with the contractor to perform all or part of the work to construct a public work by a contractor.

"Underrepresented populations" means populations identified by the Department that historically have had barriers to entry or advancement in the workforce. "Underrepresented populations" includes, but is not limited to, minorities, women, and veterans.

(Source: P.A. 101-31, eff. 6-28-19; 101-601, eff. 12-10-19.)

(30 ILCS 559/20-15)

Sec. 20-15. Illinois Works Preapprenticeship Program; Illinois Works Bid Credit Program.

(a) The Illinois Works Preapprenticeship Program is established and shall be administered by the Department. The goal of the Illinois Works Preapprenticeship Program is to create a network of community-based organizations throughout the State that will recruit, prescreen, and provide preapprenticeship skills training, for which participants may attend free of charge and receive a stipend, to create a qualified, diverse pipeline of workers who are prepared for careers in the construction and building trades. Upon completion of the Illinois Works Preapprenticeship Program, the candidates will be skilled and work-ready.

(b) There is created the Illinois Works Fund, a special fund in the State treasury. The Illinois Works Fund shall be administered by the Department. The Illinois Works Fund shall be used to provide funding for community-based organizations throughout the State. Such funding shall be categorized as follows: (i) funding for projects in Illinois Department of Transportation Region 1; (ii) funding for projects in Illinois Department of Transportation Regions 2 and 3; and (iii) funding for projects in Illinois Department of Transportation Regions 4 and 5. In addition to any other transfers that may be provided for by law, on and after July 1, 2019 at the direction of the Director of the Governor's Office of Management and Budget, the State Comptroller shall direct and the State Treasurer shall transfer amounts not exceeding a total of $50,000,000 from the Rebuild Illinois Projects Fund to the Illinois Works Fund.

(b-5) In addition to any other transfers that may be provided for by law, beginning July 1, 2024 and each July 1 thereafter, or as soon thereafter as practical, the State Comptroller shall direct and the State Treasurer shall transfer $20,000,000 from the Capital Projects Fund to the Illinois Works Fund.

(c) Each community-based organization that receives funding from the Illinois Works Fund shall provide an annual report to the Illinois Works Review Panel by April 1 of each calendar year. The annual report shall include the following information:

(1) a description of the community-based organization's recruitment, screening, and training efforts;

(2) the number of individuals who apply to, participate in, and complete the community-based organization's program, broken down by race, gender, age, and veteran status; and

(3) the number of the individuals referenced in item (2) of this subsection who are initially accepted and placed into apprenticeship programs in the construction and building trades.

(d) The Department shall create and administer the Illinois Works Bid Credit Program that shall provide economic incentives, through bid credits, to encourage contractors and subcontractors to provide contracting and employment opportunities to historically underrepresented populations in the construction industry.

The Illinois Works Bid Credit Program shall allow contractors and subcontractors to earn bid credits for use toward future bids for public works projects contracted by the State or an agency of the State in order to increase the chances that the contractor and the subcontractors will be selected.

Contractors or subcontractors may be eligible to earn bid credits for employing apprentices who have completed the Illinois Works Preapprenticeship Program. Contractors or subcontractors shall earn bid credits at a rate established by the Department and based on labor hours worked by apprentices who have completed the Illinois Works Preapprenticeship Program. In order to earn bid credits, contractors and subcontractors shall provide the Department with certified payroll documenting the hours performed by apprentices who have completed the Illinois Works Preapprenticeship Program. Contractors and subcontractors can use bid credits toward future bids for public works projects contracted or funded by the State or an agency of the State in order to increase the likelihood of being selected as the contractor for the public works project toward which they have applied the bid credit. The Department shall establish the rate by rule and shall publish it on the Department's website. The rule may include maximum bid credits allowed per contractor, per subcontractor, per apprentice, per bid, or per year.

The Illinois Works Credit Bank is hereby created and shall be administered by the Department. The Illinois Works Credit Bank shall track the bid credits.

A contractor or subcontractor who has been awarded bid credits under any other State program for employing apprentices who have completed the Illinois Works Preapprenticeship Program is not eligible to receive bid credits under the Illinois Works Bid Credit Program relating to the same contract.

The Department shall report to the Illinois Works Review Panel the following: (i) the number of bid credits awarded by the Department; (ii) the number of bid credits submitted by the contractor or subcontractor to the agency administering the public works contract; and (iii) the number of bid credits accepted by the agency for such contract. Any agency that awards bid credits pursuant to the Illinois Works Credit Bank Program shall report to the Department the number of bid credits it accepted for the public works contract.

Upon a finding that a contractor or subcontractor has reported falsified records to the Department in order to fraudulently obtain bid credits, the Department may bar the contractor or subcontractor from participating in the Illinois Works Bid Credit Program and may suspend the contractor or subcontractor from bidding on or participating in any public works project. False or fraudulent claims for payment relating to false bid credits may be subject to damages and penalties under applicable law.

(e) Subject to approval of the Department, community-based organizations may be authorized to provide high school-based preapprenticeship programming, which may include participants under the age of 18 and be subject to preapprenticeship program completion requirements consistent with the participant's school year and related attendance.

(f) (e) The Department shall adopt any rules deemed necessary to implement this Section. In order to provide for the expeditious and timely implementation of this Act, the Department may adopt emergency rules. The adoption of emergency rules authorized by this subsection is deemed to be necessary for the public interest, safety, and welfare.

(Source: P.A. 103-8, eff. 6-7-23; 103-305, eff. 7-28-23; 103-588, eff. 6-5-24; 103-605, eff. 7-1-24.)

(30 ILCS 559/20-20)

Sec. 20-20. Illinois Works Apprenticeship Initiative.

(a) The Illinois Works Apprenticeship Initiative is established and shall be administered by the Department.

(1) Subject to the exceptions set forth in subsection (b) of this Section, apprentices shall be utilized on all public works projects estimated to cost $500,000 or more in accordance with this subsection (a).

(2) For public works projects estimated to cost $500,000 or more, the goal of the Illinois Works Apprenticeship Initiative is that apprentices will perform either 10% of the total labor hours actually worked in each prevailing wage classification or 10% of the estimated labor hours in each prevailing wage classification, whichever is less. For contracts and grant agreements executed after the effective date of this amendatory Act of the 103rd General Assembly and before January 1, 2024, of this goal, at least 25% of the labor hours of each prevailing wage classification performed by apprentices shall be performed by graduates of the Illinois Works Preapprenticeship Program, the Illinois Climate Works Preapprenticeship Program, or the Highway Construction Careers Training Program. For contracts and grant agreements executed on or after January 1, 2024, of this goal, at least 50% of the labor hours of each prevailing wage classification performed by apprentices shall be performed by graduates of the Illinois Works Preapprenticeship Program, the Illinois Climate Works Preapprenticeship Program, or the Highway Construction Careers Training Program.

(b) Before or during the term of a contract subject to this Section, the Department may reduce or waive the goals set forth in paragraph (2) of subsection (a). Prior to the Department granting a request for a reduction or waiver, the Department shall determine, in its discretion, whether to hold a public hearing on the request. In determining whether to hold a public hearing, the Department may consider factors, including the scale of the project and whether the contractor or subcontractor seeking the reduction or waiver has previously requested reductions or waivers on other projects. The Department may also consult with the Business Enterprise Council under the Business Enterprise for Minorities, Women, and Persons with Disabilities Act and the Chief Procurement Officer of the agency administering the public works contract. The Department may grant a reduction or waiver upon a determination that:

(1) the contractor or subcontractor has demonstrated that insufficient apprentices are available;

(2) the reasonable and necessary requirements of the contract do not allow the goal to be met;

(3) there is a disproportionately high ratio of material costs to labor hours that makes meeting the goal infeasible;

(4) apprentice labor hour goals conflict with existing requirements, including federal requirements, in connection with the public work; or

(5) the contractor or subcontractor has demonstrated that insufficient graduates of the Illinois Works Preapprenticeship Program are available to meet the requirements of paragraph (2) of subsection (a).

(c) Contractors and subcontractors must submit a certification to the Department and the agency that is administering the contract, or the grant agreement funding the contract, demonstrating that the contractor or subcontractor has:

(1) met the apprentice labor hour goals set forth in paragraph (2) of subsection (a);

(2) received a reduction or waiver pursuant to subsection (b); or

(3) not complied with the labor hour goals in paragraph (2) of subsection (a) and did not receive a reduction or waiver pursuant to subsection (b).

It shall be deemed to be a material breach of the contract, or the grant agreement funding the contract, and entitle the State to declare a default, terminate the contract or grant agreement funding it, and exercise those remedies provided for in the contract, at law, or in equity if the contractor or subcontractor fails to submit the certification required in this subsection or submits false or misleading information.

Intentional failure to comply with the Illinois Works Apprenticeship Initiative may result in the State agency that contracted or funded the public works project: (i) terminating the contract or agreement involved, (ii) prohibiting the party that contracted with the State from participating in public contracts or agreements for a period not to exceed 3 years, (iii) seeking a penalty of up to 25% of the contract or agreement as a result of the violation, or (iv) any combination of items (i) through (iii). State agencies shall report to the Department all projects that did not comply with the Illinois Works Apprenticeship Initiative and any action taken against the noncompliant party and shall provide an action plan to address the reported instance of noncompliance with the Illinois Works Apprenticeship Initiative.

(d) No later than one year after the effective date of this Act, and by April 1 of every calendar year thereafter, the Department of Labor shall submit a report to the Illinois Works Review Panel regarding the use of apprentices under the Illinois Works Apprenticeship Initiative for public works projects. To the extent it is available, the report shall include the following information:

(1) the total number of labor hours on each project and the percentage of labor hours actually worked by apprentices on each public works project;

(2) the number of apprentices used in each public works project, broken down by trade; and

(3) the number and percentage of minorities, women, and veterans utilized as apprentices on each public works project.

(e) The Department shall adopt any rules deemed necessary to implement the Illinois Works Apprenticeship Initiative. In order to provide for the expeditious and timely implementation of this Act, the Department may adopt emergency rules. The adoption of emergency rules authorized by this subsection is deemed to be necessary for the public interest, safety, and welfare.

(f) The Illinois Works Apprenticeship Initiative shall not interfere with any contracts or grants in existence on the effective date of this Act.

(g) Notwithstanding any provisions to the contrary in this Act, any State agency that administers a construction program for which federal law or regulations establish standards and procedures for the utilization of apprentices may implement the Illinois Works Apprenticeship Initiative using the federal standards and procedures for the establishment of goals and utilization procedures for the State-funded, as well as the federally assisted, portions of the program. In such cases, these goals shall not exceed those established pursuant to the relevant federal statutes or regulations.

(h) The Department shall maintain a list of graduates of the Illinois Works Preapprenticeship Program for a period of not less than one year after the participant graduates from the Program. The list shall include the name, address, county of residence, phone number, email address, and the self-attested construction and building trade career path preferences of each graduate. This list shall be made available to any contractor or subcontractor, as well as any apprenticeship program approved by and registered with the United States Department of Labor's Bureau of Apprenticeship and Training in alignment with the graduate's self-attested construction and building trade career path preferences. Subject to approval of the Department, community-based organizations may be authorized to provide services pursuant to this subsection (h) of Section 20-20 of this Act.

(Source: P.A. 103-305, eff. 7-28-23.)

(30 ILCS 559/20-25)

Sec. 20-25. The Illinois Works Review Panel.

(a) The Illinois Works Review Panel is created and shall be comprised of 26 25 members, each serving 3-year terms. The Speaker of the House of Representatives and the President of the Senate shall each appoint 5 members within 30 days after the effective date of this amendatory Act of the 101st General Assembly. The Minority Leader of the House of Representatives and the Minority Leader of the Senate shall each appoint 5 members within 30 days after the effective date of this amendatory Act of the 101st General Assembly. The Director of Commerce and Economic Opportunity, or his or her designee, shall serve as a member. The Governor shall appoint the following individuals to serve as members within 30 days after the effective date of this amendatory Act of the 101st General Assembly: a representative from a contractor organization; a representative from a labor organization; and 3 2 members of the public with workforce development expertise, one of whom shall be a representative of a nonprofit organization that addresses workforce development and one of whom shall be a representative of a community-based organization that addresses high school-based workforce programs.

(b) The members of the Illinois Works Review Panel shall make recommendations to the Department regarding identification and evaluation of community-based organizations.

(c) The Illinois Works Review Panel shall meet, at least quarterly, to review and evaluate (i) the Illinois Works Preapprenticeship Program and the Illinois Works Apprenticeship Initiative, (ii) ideas to diversify the trainee corps in the Illinois Works Preapprenticeship Program and the workforce in the construction industry in Illinois, (iii) ideas to increase diversity in active apprenticeship programs in Illinois, and (iv) workforce demographic data collected by the Illinois Department of Labor, and (v) Office of Illinois Works appeal decisions regarding community-based organization performance appeals. The Illinois Works Review Panel shall hold its initial meeting no later than 45 days after the effective date of this amendatory Act of the 101st General Assembly.

(d) All State contracts and grant agreements funding State contracts shall include a requirement that the contractor and subcontractor shall, upon reasonable notice, appear before and respond to requests for information from the Illinois Works Review Panel.

(e) By August 1, 2020, and every August 1 thereafter, the Illinois Works Review Panel shall report to the General Assembly on its evaluation of the Illinois Works Preapprenticeship Program and the Illinois Works Apprenticeship Initiative, including any recommended modifications.

(Source: P.A. 101-31, eff. 6-28-19; 101-601, eff. 12-10-19; 101-633, eff. 6-5-20.)