Illinois General Assembly - Full Text of HB2300
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Full Text of HB2300  103rd General Assembly




HB2300 EnrolledLRB103 30827 DTM 57326 b

1    AN ACT concerning finance.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Works Jobs Program Act is amended
5by changing Sections 20-15 and 20-20 as follows:
6    (30 ILCS 559/20-15)
7    Sec. 20-15. Illinois Works Preapprenticeship Program;
8Illinois Works Bid Credit Program.
9    (a) The Illinois Works Preapprenticeship Program is
10established and shall be administered by the Department. The
11goal of the Illinois Works Preapprenticeship Program is to
12create a network of community-based organizations throughout
13the State that will recruit, prescreen, and provide
14preapprenticeship skills training, for which participants may
15attend free of charge and receive a stipend, to create a
16qualified, diverse pipeline of workers who are prepared for
17careers in the construction and building trades. Upon
18completion of the Illinois Works Preapprenticeship Program,
19the candidates will be skilled and work-ready.
20    (b) There is created the Illinois Works Fund, a special
21fund in the State treasury. The Illinois Works Fund shall be
22administered by the Department. The Illinois Works Fund shall
23be used to provide funding for community-based organizations



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1throughout the State. In addition to any other transfers that
2may be provided for by law, on and after July 1, 2019 at the
3direction of the Director of the Governor's Office of
4Management and Budget, the State Comptroller shall direct and
5the State Treasurer shall transfer amounts not exceeding a
6total of $25,000,000 from the Rebuild Illinois Projects Fund
7to the Illinois Works Fund.
8    (c) Each community-based organization that receives
9funding from the Illinois Works Fund shall provide an annual
10report to the Illinois Works Review Panel by April 1 of each
11calendar year. The annual report shall include the following
13        (1) a description of the community-based
14    organization's recruitment, screening, and training
15    efforts;
16        (2) the number of individuals who apply to,
17    participate in, and complete the community-based
18    organization's program, broken down by race, gender, age,
19    and veteran status; and
20    (3) the number of the individuals referenced in item (2)
21    of this subsection who are initially accepted and placed
22    into apprenticeship programs in the construction and
23    building trades.
24    (d) The Department shall create and administer the
25Illinois Works Bid Credit Program that shall provide economic
26incentives, through bid credits, to encourage contractors and



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1subcontractors to provide contracting and employment
2opportunities to historically underrepresented populations in
3the construction industry.
4    The Illinois Works Bid Credit Program shall allow
5contractors and subcontractors to earn bid credits for use
6toward future bids for public works projects contracted by the
7State or an agency of the State in order to increase the
8chances that the contractor and the subcontractors will be
10    Contractors or subcontractors may be eligible to earn for
11bid credits for employing apprentices who have completed the
12Illinois Works Preapprenticeship Program on public works
13projects contracted by the State or any agency of the State.
14Contractors or subcontractors shall earn bid credits at a rate
15established by the Department and based on labor hours worked
16on State-contracted public works projects by apprentices who
17have completed the Illinois Works Preapprenticeship Program.
18In order to earn bid credits, contractors and subcontractors
19shall provide the Department with certified payroll
20documenting the hours performed by apprentices who have
21completed the Illinois Works Preapprenticeship Program.
22Contractors and subcontractors can use bid credits toward
23future bids for public works projects contracted or funded by
24the State or an agency of the State in order to increase the
25likelihood of being selected as the contractor for the public
26works project toward which they have applied the bid credit.



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1The Department shall establish the rate by rule and shall
2publish it on the Department's website. The rule may include
3maximum bid credits allowed per contractor, per subcontractor,
4per apprentice, per bid, or per year.
5    The Illinois Works Credit Bank is hereby created and shall
6be administered by the Department. The Illinois Works Credit
7Bank shall track the bid credits.
8    A contractor or subcontractor who has been awarded bid
9credits under any other State program for employing
10apprentices who have completed the Illinois Works
11Preapprenticeship Program is not eligible to receive bid
12credits under the Illinois Works Bid Credit Program relating
13to the same contract.
14    The Department shall report to the Illinois Works Review
15Panel the following: (i) the number of bid credits awarded by
16the Department; (ii) the number of bid credits submitted by
17the contractor or subcontractor to the agency administering
18the public works contract; and (iii) the number of bid credits
19accepted by the agency for such contract. Any agency that
20awards bid credits pursuant to the Illinois Works Credit Bank
21Program shall report to the Department the number of bid
22credits it accepted for the public works contract.
23    Upon a finding that a contractor or subcontractor has
24reported falsified records to the Department in order to
25fraudulently obtain bid credits, the Department may bar the
26contractor or subcontractor from participating in the Illinois



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1Works Bid Credit Program and may suspend the contractor or
2subcontractor from bidding on or participating in any public
3works project. False or fraudulent claims for payment relating
4to false bid credits may be subject to damages and penalties
5under applicable law.
6    (e) The Department shall adopt any rules deemed necessary
7to implement this Section. In order to provide for the
8expeditious and timely implementation of this Act, the
9Department may adopt emergency rules. The adoption of
10emergency rules authorized by this subsection is deemed to be
11necessary for the public interest, safety, and welfare.
12(Source: P.A. 101-31, eff. 6-28-19; 101-601, eff. 12-10-19.)
13    (30 ILCS 559/20-20)
14    Sec. 20-20. Illinois Works Apprenticeship Initiative.
15    (a) The Illinois Works Apprenticeship Initiative is
16established and shall be administered by the Department.
17        (1) Subject to the exceptions set forth in subsection
18    (b) of this Section, apprentices shall be utilized on all
19    public works projects estimated to cost $500,000 or more
20    in accordance with this subsection (a).
21        (2) For public works projects estimated to cost
22    $500,000 or more, the goal of the Illinois Works
23    Apprenticeship Initiative is that apprentices will perform
24    either 10% of the total labor hours actually worked in
25    each prevailing wage classification or 10% of the



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1    estimated labor hours in each prevailing wage
2    classification, whichever is less. For contracts and grant
3    agreements executed after the effective date of this
4    amendatory Act of the 103rd General Assembly and before
5    January 1, 2024, of this goal, at least 25% of the labor
6    hours of each prevailing wage classification performed by
7    apprentices shall be performed by graduates of the
8    Illinois Works Preapprenticeship Program, the Illinois
9    Climate Works Preapprenticeship Program, or the Highway
10    Construction Careers Training Program. For contracts and
11    grant agreements executed on or after January 1, 2024, of
12    this goal, at least 50% of the labor hours of each
13    prevailing wage classification performed by apprentices
14    shall be performed by graduates of the Illinois Works
15    Preapprenticeship Program, the Illinois Climate Works
16    Preapprenticeship Program, or the Highway Construction
17    Careers Training Program.
18    (b) Before or during the term of a contract subject to this
19Section, the Department may reduce or waive the goals set
20forth in paragraph (2) of subsection (a). Prior to the
21Department granting a request for a reduction or waiver, the
22Department shall determine, in its discretion, whether to hold
23a public hearing on the request. In determining whether to
24hold a public hearing, the Department may consider factors,
25including the scale of the project and whether the contractor
26or subcontractor seeking the reduction or waiver has



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1previously requested reductions or waivers on other projects.
2The Department may also consult with the Business Enterprise
3Council under the Business Enterprise for Minorities, Women,
4and Persons with Disabilities Act and the Chief Procurement
5Officer of the agency administering the public works contract.
6The Department may grant a reduction or waiver upon a
7determination that:
8        (1) the contractor or subcontractor has demonstrated
9    that insufficient apprentices are available;
10        (2) the reasonable and necessary requirements of the
11    contract do not allow the goal to be met;
12        (3) there is a disproportionately high ratio of
13    material costs to labor hours that makes meeting the goal
14    infeasible; or
15        (4) apprentice labor hour goals conflict with existing
16    requirements, including federal requirements, in
17    connection with the public work; or .
18        (5) the contractor or subcontractor has demonstrated
19    that insufficient graduates of the Illinois Works
20    Preapprenticeship Program are available to meet the
21    requirements of paragraph (2) of subsection (a).
22    (c) Contractors and subcontractors must submit a
23certification to the Department and the agency that is
24administering the contract, or the grant agreement funding the
25contract, demonstrating that the contractor or subcontractor
26has either:



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1        (1) met the apprentice labor hour goals set forth in
2    paragraph (2) of subsection (a); or
3        (2) received a reduction or waiver pursuant to
4    subsection (b); or .
5        (3) not complied with the labor hour goals in
6    paragraph (2) of subsection (a) and did not receive a
7    reduction or waiver pursuant to subsection (b).
8    It shall be deemed to be a material breach of the contract,
9or the grant agreement funding the contract, and entitle the
10State to declare a default, terminate the contract or grant
11agreement funding it, and exercise those remedies provided for
12in the contract, at law, or in equity if the contractor or
13subcontractor fails to submit the certification required in
14this subsection or submits false or misleading information.
15    Intentional failure to comply with the Illinois Works
16Apprenticeship Initiative may result in the State agency that
17contracted or funded the public works project: (i) terminating
18the contract or agreement involved, (ii) prohibiting the party
19that contracted with the State from participating in public
20contracts or agreements for a period not to exceed 3 years,
21(iii) seeking a penalty of up to 25% of the contract or
22agreement as a result of the violation, or (iv) any
23combination of items (i) through (iii). State agencies shall
24report to the Department all projects that did not comply with
25the Illinois Works Apprenticeship Initiative and any action
26taken against the noncompliant party and shall provide an



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1action plan to address the reported instance of noncompliance
2with the Illinois Works Apprenticeship Initiative.
3    (d) No later than one year after the effective date of this
4Act, and by April 1 of every calendar year thereafter, the
5Department of Labor shall submit a report to the Illinois
6Works Review Panel regarding the use of apprentices under the
7Illinois Works Apprenticeship Initiative for public works
8projects. To the extent it is available, the report shall
9include the following information:
10        (1) the total number of labor hours on each project
11    and the percentage of labor hours actually worked by
12    apprentices on each public works project;
13        (2) the number of apprentices used in each public
14    works project, broken down by trade; and
15        (3) the number and percentage of minorities, women,
16    and veterans utilized as apprentices on each public works
17    project.
18    (e) The Department shall adopt any rules deemed necessary
19to implement the Illinois Works Apprenticeship Initiative. In
20order to provide for the expeditious and timely implementation
21of this Act, the Department may adopt emergency rules. The
22adoption of emergency rules authorized by this subsection is
23deemed to be necessary for the public interest, safety, and
25    (f) The Illinois Works Apprenticeship Initiative shall not
26interfere with any contracts or grants in existence on the



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1effective date of this Act.
2    (g) Notwithstanding any provisions to the contrary in this
3Act, any State agency that administers a construction program
4for which federal law or regulations establish standards and
5procedures for the utilization of apprentices may implement
6the Illinois Works Apprenticeship Initiative using the federal
7standards and procedures for the establishment of goals and
8utilization procedures for the State-funded, as well as the
9federally assisted, portions of the program. In such cases,
10these goals shall not exceed those established pursuant to the
11relevant federal statutes or regulations.
12    (h) The Department shall maintain a list of graduates of
13the Illinois Works Preapprenticeship Program for a period of
14not less than one year after the participant graduates from
15the Program. The list shall include the name, address, county
16of residence, phone number, email address, and the
17self-attested construction and building trade career path
18preferences of each graduate. This list shall be made
19available to any contractor or subcontractor, as well as any
20apprenticeship program approved by and registered with the
21United States Department of Labor's Bureau of Apprenticeship
22and Training in alignment with the graduate's self-attested
23construction and building trade career path preferences.
24(Source: P.A. 101-31, eff. 6-28-19; 101-601, eff. 12-10-19.)
25    Section 99. Effective date. This Act takes effect upon
26becoming law.