103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2839 Introduced , by Rep. Lawrence "Larry" Walsh, Jr. SYNOPSIS AS INTRODUCED: See Index Creates the Investing in Illinois Works Tax Credit Act. Authorizes owners and operators of facilities that are used for petrochemical refining and chemical manufacturing and that emit or may emit certain regulated air pollutants to claim an income tax credit for each individual from an underrepresented population who is employed by the owner or operator and has successfully completed a preapprenticeship program through the Illinois Works Preapprenticeship Program and who either is a registered apprentice under the Illinois Hazardous Materials Workforce Training Act or has successfully completed a registered apprenticeship program. Caps the amount of the credit at $2,500 per qualified employee per year. Contains provisions concerning the process of applying for the credit, the award of the credit, and penalties for false or fraudulent claims. Requires the Department of Commerce and Economic Opportunity to adopt rules necessary to implement and administer the Act. Creates the Access to Apprenticeship Act. Provides that no application for a preapprenticeship or apprenticeship program may require a recommendation from a union member or any other person as a condition of acceptance to the preapprenticeship or apprenticeship program. Creates the Illinois Hazardous Materials Workforce Training Act. Provides that the owners and operators of the facilities described above, when contracting for performance of construction work at those facilities, shall require their contractors and subcontractors to use a skilled and trained workforce to perform all onsite work within an apprenticeable occupation in the building and construction trades and to include that requirement in all contracts executed between the owner or operator and a contractor or subcontractor. Contains various other provisions, including provisions concerning exemptions, penalties, and enforcement of the Act's requirements. Requires the Department of Labor to adopt rules necessary to implement and administer the Act. Amends the Illinois Administrative Procedure Act. Grants the Department of Commerce and Economic Opportunity, the Department of Labor, and the Department of Revenue emergency rulemaking powers. Amends the Illinois Income Tax Act to make conforming changes. Effective January 1, 2024. LRB103 30628 JDS 57080 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2839 Introduced , by Rep. Lawrence "Larry" Walsh, Jr. SYNOPSIS AS INTRODUCED: See Index See Index Creates the Investing in Illinois Works Tax Credit Act. Authorizes owners and operators of facilities that are used for petrochemical refining and chemical manufacturing and that emit or may emit certain regulated air pollutants to claim an income tax credit for each individual from an underrepresented population who is employed by the owner or operator and has successfully completed a preapprenticeship program through the Illinois Works Preapprenticeship Program and who either is a registered apprentice under the Illinois Hazardous Materials Workforce Training Act or has successfully completed a registered apprenticeship program. Caps the amount of the credit at $2,500 per qualified employee per year. Contains provisions concerning the process of applying for the credit, the award of the credit, and penalties for false or fraudulent claims. Requires the Department of Commerce and Economic Opportunity to adopt rules necessary to implement and administer the Act. Creates the Access to Apprenticeship Act. Provides that no application for a preapprenticeship or apprenticeship program may require a recommendation from a union member or any other person as a condition of acceptance to the preapprenticeship or apprenticeship program. Creates the Illinois Hazardous Materials Workforce Training Act. Provides that the owners and operators of the facilities described above, when contracting for performance of construction work at those facilities, shall require their contractors and subcontractors to use a skilled and trained workforce to perform all onsite work within an apprenticeable occupation in the building and construction trades and to include that requirement in all contracts executed between the owner or operator and a contractor or subcontractor. Contains various other provisions, including provisions concerning exemptions, penalties, and enforcement of the Act's requirements. Requires the Department of Labor to adopt rules necessary to implement and administer the Act. Amends the Illinois Administrative Procedure Act. Grants the Department of Commerce and Economic Opportunity, the Department of Labor, and the Department of Revenue emergency rulemaking powers. Amends the Illinois Income Tax Act to make conforming changes. Effective January 1, 2024. LRB103 30628 JDS 57080 b LRB103 30628 JDS 57080 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2839 Introduced , by Rep. Lawrence "Larry" Walsh, Jr. SYNOPSIS AS INTRODUCED: See Index See Index See Index Creates the Investing in Illinois Works Tax Credit Act. Authorizes owners and operators of facilities that are used for petrochemical refining and chemical manufacturing and that emit or may emit certain regulated air pollutants to claim an income tax credit for each individual from an underrepresented population who is employed by the owner or operator and has successfully completed a preapprenticeship program through the Illinois Works Preapprenticeship Program and who either is a registered apprentice under the Illinois Hazardous Materials Workforce Training Act or has successfully completed a registered apprenticeship program. Caps the amount of the credit at $2,500 per qualified employee per year. Contains provisions concerning the process of applying for the credit, the award of the credit, and penalties for false or fraudulent claims. Requires the Department of Commerce and Economic Opportunity to adopt rules necessary to implement and administer the Act. Creates the Access to Apprenticeship Act. Provides that no application for a preapprenticeship or apprenticeship program may require a recommendation from a union member or any other person as a condition of acceptance to the preapprenticeship or apprenticeship program. Creates the Illinois Hazardous Materials Workforce Training Act. Provides that the owners and operators of the facilities described above, when contracting for performance of construction work at those facilities, shall require their contractors and subcontractors to use a skilled and trained workforce to perform all onsite work within an apprenticeable occupation in the building and construction trades and to include that requirement in all contracts executed between the owner or operator and a contractor or subcontractor. Contains various other provisions, including provisions concerning exemptions, penalties, and enforcement of the Act's requirements. Requires the Department of Labor to adopt rules necessary to implement and administer the Act. Amends the Illinois Administrative Procedure Act. Grants the Department of Commerce and Economic Opportunity, the Department of Labor, and the Department of Revenue emergency rulemaking powers. Amends the Illinois Income Tax Act to make conforming changes. Effective January 1, 2024. LRB103 30628 JDS 57080 b LRB103 30628 JDS 57080 b LRB103 30628 JDS 57080 b A BILL FOR HB2839LRB103 30628 JDS 57080 b HB2839 LRB103 30628 JDS 57080 b HB2839 LRB103 30628 JDS 57080 b 1 AN ACT concerning apprenticeships. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 ARTICLE 1. INVESTING IN ILLINOIS WORKS TAX CREDIT ACT 5 Section 1-1. Short title. This Article may be cited as the 6 Investing in Illinois Works Tax Credit Act. References in this 7 Article to "this Act" mean this Article. 8 Section 1-3. Legislative findings. The General Assembly 9 finds that: 10 Economic research indicates that registered apprenticeship 11 programs have positive economic impacts, and countries with 12 more widespread usage of apprenticeship programs have proven 13 to be more successful at transitioning young workers into 14 stable jobs, resulting in lower youth unemployment rates. 15 The demographics of registered apprenticeship programs in 16 our State do not mirror the demographic diversity of 17 Illinoisans. According to data from the U.S. Department of 18 Labor's Office of Apprenticeship, from 2000 through 2016, only 19 8.8% of all construction apprentices were African American and 20 17.6% were Hispanic or Latino/Latina, while 69.6% were white. 21 In order to work toward a level playing field for all who 22 seek the training and economic stability apprenticeships 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2839 Introduced , by Rep. Lawrence "Larry" Walsh, Jr. SYNOPSIS AS INTRODUCED: See Index See Index See Index Creates the Investing in Illinois Works Tax Credit Act. Authorizes owners and operators of facilities that are used for petrochemical refining and chemical manufacturing and that emit or may emit certain regulated air pollutants to claim an income tax credit for each individual from an underrepresented population who is employed by the owner or operator and has successfully completed a preapprenticeship program through the Illinois Works Preapprenticeship Program and who either is a registered apprentice under the Illinois Hazardous Materials Workforce Training Act or has successfully completed a registered apprenticeship program. Caps the amount of the credit at $2,500 per qualified employee per year. Contains provisions concerning the process of applying for the credit, the award of the credit, and penalties for false or fraudulent claims. Requires the Department of Commerce and Economic Opportunity to adopt rules necessary to implement and administer the Act. Creates the Access to Apprenticeship Act. Provides that no application for a preapprenticeship or apprenticeship program may require a recommendation from a union member or any other person as a condition of acceptance to the preapprenticeship or apprenticeship program. Creates the Illinois Hazardous Materials Workforce Training Act. Provides that the owners and operators of the facilities described above, when contracting for performance of construction work at those facilities, shall require their contractors and subcontractors to use a skilled and trained workforce to perform all onsite work within an apprenticeable occupation in the building and construction trades and to include that requirement in all contracts executed between the owner or operator and a contractor or subcontractor. Contains various other provisions, including provisions concerning exemptions, penalties, and enforcement of the Act's requirements. Requires the Department of Labor to adopt rules necessary to implement and administer the Act. Amends the Illinois Administrative Procedure Act. Grants the Department of Commerce and Economic Opportunity, the Department of Labor, and the Department of Revenue emergency rulemaking powers. Amends the Illinois Income Tax Act to make conforming changes. Effective January 1, 2024. LRB103 30628 JDS 57080 b LRB103 30628 JDS 57080 b LRB103 30628 JDS 57080 b A BILL FOR See Index LRB103 30628 JDS 57080 b HB2839 LRB103 30628 JDS 57080 b HB2839- 2 -LRB103 30628 JDS 57080 b HB2839 - 2 - LRB103 30628 JDS 57080 b HB2839 - 2 - LRB103 30628 JDS 57080 b 1 provide, Illinois created the Illinois Works Preapprenticeship 2 Program, which funds preapprenticeship skills training through 3 community-based organizations serving populations that have, 4 historically, been met with barriers to entry or advancement 5 in the workforce. 6 By targeting historically underutilized communities whose 7 members seek access to the upward mobility and career 8 advancement apprenticeships bring, the Illinois Works 9 Preapprenticeship Program is one part of many State 10 initiatives to increase diversity in apprenticeship programs 11 and careers in the construction and building trades. 12 The Investing in Illinois Works Tax Credit expands the 13 goals of the Illinois Works Preapprenticeship Program to 14 private construction projects and highly skilled training 15 programs by incentivizing contractors to include as part of 16 their skilled and trained workforces on projects at 17 high-hazard facilities graduates of preapprenticeship programs 18 funded by the Illinois Works Preapprenticeship Program who are 19 also participants in or graduates of registered apprenticeship 20 programs. 21 Section 1-5. Definitions. As used in this Act: 22 "Department" means the Department of Commerce and Economic 23 Opportunity. 24 "Illinois Works Preapprenticeship Program" means a network 25 of community-based, nonprofit organizations throughout HB2839 - 2 - LRB103 30628 JDS 57080 b HB2839- 3 -LRB103 30628 JDS 57080 b HB2839 - 3 - LRB103 30628 JDS 57080 b HB2839 - 3 - LRB103 30628 JDS 57080 b 1 Illinois that receive grant funding from the Department to 2 recruit, prescreen, and provide preapprenticeship skill 3 training to create a qualified, diverse pipeline of workers 4 who are prepared for careers in the construction and building 5 trades as prescribed in Section 20-15 of the Illinois Works 6 Jobs Program Act. 7 "Owner or operator" has the meaning provided in Section 5 8 of the Illinois Hazardous Materials Workforce Training Act. 9 "Qualifying employee" means a qualifying graduate who was 10 continuously employed by the owner or operator or a contractor 11 engaged by the owner or operator in Illinois during all 4 12 reporting periods occurring in the calendar year directly 13 preceding the calendar year in which the credit is claimed. 14 "Qualifying graduate" means an individual from an 15 underrepresented population who has successfully completed a 16 preapprenticeship program through the Illinois Works 17 Preapprenticeship Program in compliance with the requirements 18 of Section 20-15 of the Illinois Works Jobs Programs Act and 19 who either is a registered apprentice as defined under Section 20 10-5 of the Illinois Hazardous Materials Workforce Training 21 Act or has successfully completed a registered apprenticeship 22 program as defined under Section 10-5 of the Illinois 23 Hazardous Materials Workforce Training Act. 24 "Registered apprenticeship program" has the same meaning 25 as provided in Section 10-5 of the Illinois Hazardous 26 Materials Workforce Training Act. HB2839 - 3 - LRB103 30628 JDS 57080 b HB2839- 4 -LRB103 30628 JDS 57080 b HB2839 - 4 - LRB103 30628 JDS 57080 b HB2839 - 4 - LRB103 30628 JDS 57080 b 1 "Reporting period" means the quarter for which a return is 2 required to be filed under subsection (b) of Section 704A of 3 the Illinois Income Tax Act. 4 "Skilled and trained workforce" has the meaning provided 5 in Section 10-5 of the Illinois Hazardous Materials Workforce 6 Training Act. 7 "Tax credit certificate" means the certificate awarded by 8 the Department under Section 1-20 of this Act. 9 "Underrepresented population" has the meaning provided in 10 Section 20-10 of the Illinois Works Job Program Act. 11 Section 1-10. Credit amount. For taxable years beginning 12 on or after January 1, 2024, subject to the limitations 13 provided in this Act, an owner or operator may claim, as a 14 credit against the tax imposed under subsections (a) and (b) 15 of Section 201 of the Illinois Income Tax Act, an amount equal 16 to the amount of Illinois income tax withheld from the 17 compensation paid to each qualifying employee and paid to the 18 Department of Revenue, not to exceed $2,500 per calendar year 19 for each qualifying employee, as certified by the Department 20 on a tax credit certificate awarded under this Act. 21 Section 1-15. Application process. 22 (a) An owner or operator may apply to the Department for a 23 certificate to receive a credit under Section 1-10. 24 (b) The Department shall establish an application process HB2839 - 4 - LRB103 30628 JDS 57080 b HB2839- 5 -LRB103 30628 JDS 57080 b HB2839 - 5 - LRB103 30628 JDS 57080 b HB2839 - 5 - LRB103 30628 JDS 57080 b 1 to certify an owner or operator for the credit under Section 2 1-10 as necessary for implementation of this Act. As part of 3 the application process, the Department shall require the 4 owner or operator to provide: 5 (1) the name, year, and name of the organization that 6 sponsored or administered the program through which each 7 qualifying employee completed his or her Illinois Works 8 Preapprenticeship Program and apprenticeship program; 9 (2) the receipt provided to the worker by the 10 Department of Labor stating that the qualifying employee 11 has provided a certificate to the Department of Labor 12 certifying that the employee has completed the minimum 13 approved safety training required by the Illinois 14 Hazardous Materials Workforce Training Act and when the 15 employee's certification in that training expires; 16 (3) the hours worked by the qualifying employee that 17 are to be applied toward the employee's apprenticeship 18 requirements at the time of the application; 19 (4) a signed affidavit from the owner or operator 20 attesting that (i) the qualifying employee was employed by 21 the owner or operator or a contractor engaged by the owner 22 or operator during all 4 reporting periods occurring 23 during the calendar year preceding the calendar year in 24 which the credit will be applied; (ii) the qualifying 25 employee performed work in his or her prevailing wage 26 classification for the duration of his or her employment HB2839 - 5 - LRB103 30628 JDS 57080 b HB2839- 6 -LRB103 30628 JDS 57080 b HB2839 - 6 - LRB103 30628 JDS 57080 b HB2839 - 6 - LRB103 30628 JDS 57080 b 1 in the calendar year preceding the calendar year in which 2 the credit will be applied; (iii) the documents provided 3 in the application are true; and (iv) the owner or 4 operator will comply with all applicable laws; and 5 (5) any other material required by the Department. 6 Section 1-20. Credit awards. 7 (a) Upon satisfactory review, the Department shall issue a 8 tax credit certificate stating the amount of the tax credit to 9 which an owner or operator is entitled under this Act. Each 10 certificate shall include a unique identifying number. The 11 credit shall be claimed on the return for the taxable year 12 during which the certificate is issued by the Department. The 13 credit shall be equal to the amount shown on the certificate 14 but may not reduce the taxpayer's obligation for any payment 15 due under subsections (a) and (b) of Section 201 of the 16 Illinois Income Tax Act to less than zero. For partners and 17 shareholders of Subchapter S corporations, there shall be 18 allowed a credit under this subsection to be determined in 19 accordance with the determination of income and distributive 20 share of income under Sections 702 and 704 and Subchapter S of 21 the Internal Revenue Code. If the amount of the credit exceeds 22 the total payments due as described below, the excess may be 23 carried forward and applied against the taxpayer's liability 24 under subsections (a) and (b) of Section 201 of the Illinois 25 Income Tax Act in the 5 succeeding taxable years. The credit HB2839 - 6 - LRB103 30628 JDS 57080 b HB2839- 7 -LRB103 30628 JDS 57080 b HB2839 - 7 - LRB103 30628 JDS 57080 b HB2839 - 7 - LRB103 30628 JDS 57080 b 1 shall be applied to the earliest taxable year for which there 2 is a tax liability. If there are credits from more than one 3 taxable year that are available to offset a liability, the 4 earlier credit shall be applied first. No credit awarded under 5 this Act shall be sold or otherwise transferred. 6 (b) The Department shall award not more than an aggregate 7 amount of $20,000,000 in total annual tax credits under this 8 Act. If applications for a greater amount are received, 9 credits shall be allocated on a first-come, first-served basis 10 based on the date upon which each properly completed 11 application for certification is received by the Department. 12 If more than one properly completed application for 13 certification is received on the same day, the credits shall 14 be awarded based on the time of submission for that particular 15 day. 16 Section 1-25. Penalties; recapture. 17 (a) False or fraudulent claims for credits under this Act 18 may be subject to penalties as provided under Sections 3-5 or 19 3-6 of the Uniform Penalty and Interest Act, as applicable. 20 (b) If the Department determines that an owner or operator 21 who has received a credit under this Act does not comply with 22 the requirements of this Act or that a certification the owner 23 or operator made in his or her application is false, the 24 Department may initiate recapture procedures against the owner 25 or operator and, after notice and an opportunity for hearing, HB2839 - 7 - LRB103 30628 JDS 57080 b HB2839- 8 -LRB103 30628 JDS 57080 b HB2839 - 8 - LRB103 30628 JDS 57080 b HB2839 - 8 - LRB103 30628 JDS 57080 b 1 recapture the entire credit amount awarded under any tax 2 credit certificate issued under this Act. The Department shall 3 notify the Department of Revenue of any credits recaptured 4 under this subsection. 5 (c) If a previously awarded credit is required to be 6 recaptured under subsection (b), the tax due under subsections 7 (a) and (b) of Section 201 of the Illinois Income Tax Act shall 8 be increased by the amount of the recaptured credit in the 9 taxable year during which recapture is required. 10 Section 1-30. Rulemaking. The Department shall adopt rules 11 for the implementation and administration of this Act. 12 ARTICLE 5. ACCESS TO APPRENTICESHIP ACT 13 Section 5-1. Short title. This Article may be cited as the 14 Access to Apprenticeship Act. References in this Article to 15 "this Act" mean this Article. 16 Section 5-5. Restrictions on application requirements. 17 Notwithstanding any law to the contrary, in order to ensure 18 fair and equal access to apprenticeship programs, no 19 application for a preapprenticeship or apprenticeship program, 20 whether run by the State, a community-based organization, a 21 community college, a public university, a private employer, a 22 union, or joint labor-management program, may require a HB2839 - 8 - LRB103 30628 JDS 57080 b HB2839- 9 -LRB103 30628 JDS 57080 b HB2839 - 9 - LRB103 30628 JDS 57080 b HB2839 - 9 - LRB103 30628 JDS 57080 b 1 recommendation from a union member or any other person as a 2 condition of acceptance to the preapprenticeship or 3 apprenticeship program. An intent to hire letter from a 4 signatory contractor shall not be considered a recommendation 5 for purposes of this Act. 6 Section 5-97. Severability. The provisions of this Act are 7 severable under Section 1.31 of the Statute on Statutes. 8 ARTICLE 10. ILLINOIS HAZARDOUS MATERIALS WORKFORCE TRAINING 9 ACT 10 Section 10-1. Short title. This Article may be cited as 11 the Illinois Hazardous Materials Workforce Training Act. 12 References in this Article to "this Act" mean this Article. 13 Section 10-3. Legislative findings. The General Assembly 14 recognizes its duty to protect the health and safety of the 15 public. The General Assembly finds that this Act is consistent 16 with that duty. Facilities such as refineries and chemical 17 plants are inherently dangerous and present substantial risks 18 to workers and communities. According to U.S. Bureau of Labor 19 Statistics data from 2003 through 2018, 418 deaths have 20 occurred in the refining and chemical industries (51 and 366 21 respectively) nationwide. Research supports the finding that 22 registered construction apprenticeship programs are correlated HB2839 - 9 - LRB103 30628 JDS 57080 b HB2839- 10 -LRB103 30628 JDS 57080 b HB2839 - 10 - LRB103 30628 JDS 57080 b HB2839 - 10 - LRB103 30628 JDS 57080 b 1 with higher workplace safety due to the quality of safety 2 practices, the skills training provided, and adherence to 3 required federal standards. Moreover, the State of Illinois 4 has recognized that registered apprenticeship programs provide 5 substantial economic value to the State and serve as an 6 important pathway for workers to enter the industry. The 7 absence of area wage standards, especially in hazardous 8 industries, such as refining and chemical production, 9 incentivizes the use of less-skilled, low-wage workers and 10 increases the risk of danger to the public. The General 11 Assembly recognizes and affirms that maintaining area wage 12 standards prioritizes the use of better trained and 13 higher-skilled workers while contributing to the State's 14 economic growth. 15 Section 10-5. Definitions. As used in this Act: 16 "Apprenticeable occupation" means an occupation in the 17 building and construction trades for which training and 18 apprenticeship programs have been approved by and registered 19 with the United States Department of Labor's Employment and 20 Training Administration. 21 "Building and construction trades council" means any labor 22 organization that represents multiple construction trades and 23 monitors or is attentive to compliance with public or workers' 24 safety laws, wage and hour requirements, or other statutory 25 requirements and negotiates and maintains collective HB2839 - 10 - LRB103 30628 JDS 57080 b HB2839- 11 -LRB103 30628 JDS 57080 b HB2839 - 11 - LRB103 30628 JDS 57080 b HB2839 - 11 - LRB103 30628 JDS 57080 b 1 bargaining agreements. 2 "Construction" means all work at a stationary source 3 involving laborers, workers, or mechanics, including any 4 maintenance, repair, assembly, or disassembly work performed 5 on equipment whether owned, leased, or rented. 6 "Department" means the Department of Labor. 7 "Director" means the Director of Labor. 8 "Labor agreement" means a form of prehire collective 9 bargaining agreement covering all terms and conditions of 10 employment. 11 "Labor organization" means an organization that is the 12 exclusive representative of an employer's employees recognized 13 or certified under the federal National Labor Relations Act of 14 1935. 15 "Minimum approved safety training for workers at 16 high-hazard facilities" means a minimum 30-hour OSHA Outreach 17 Training Program for the Construction Industry class that 18 consists of a curriculum of OSHA-designated training topics 19 with training performed by an authorized OSHA Outreach 20 Training Program Trainer and that is intended to provide 21 workers with information about their rights, employer 22 responsibilities, safety and health hazards a worker may 23 encounter on a work site, as well as information about how to 24 identify, abate, avoid, and prevent job-related hazards by 25 emphasizing hazard identification, avoidance, control, and 26 prevention. HB2839 - 11 - LRB103 30628 JDS 57080 b HB2839- 12 -LRB103 30628 JDS 57080 b HB2839 - 12 - LRB103 30628 JDS 57080 b HB2839 - 12 - LRB103 30628 JDS 57080 b 1 "OSHA" means the United States Department of Labor's 2 Occupational Safety and Health Administration. 3 "Owner or operator" means an owner or operator of a 4 stationary source that is engaged in activities described in 5 Code 324110, 325110, 325193, or 325199 of the 2022 North 6 American Industry Classification System (NAICS) and that has 7 one or more covered processes for which a Risk Management Plan 8 is required to be prepared and submitted. "Owner or operator" 9 does not include oil and gas extraction operations. 10 "Prevailing hourly wage rate" means hourly wages plus 11 fringe benefits that are collectively equal to or greater than 12 the prevailing wage rate for the occupation in the locality in 13 which the work is being performed, as published by the 14 Illinois Department of Labor. Apprentice wage rate scales 15 filed with the United States Department of Labor by an 16 apprenticeship program may be used to identify a prevailing 17 wage rate for an occupation. 18 "Registered apprentice" means an apprentice who is 19 registered in an applicable apprenticeship program for an 20 apprenticeable occupation approved by and registered with the 21 United States Department of Labor's Employment and Training 22 Administration and who is being paid at least a rate 23 equivalent to the prevailing hourly wage rate for an 24 apprentice of his or her experience level, as permitted by 25 this Act, in the applicable occupation and locality. 26 "Registered apprenticeship program" means a training and HB2839 - 12 - LRB103 30628 JDS 57080 b HB2839- 13 -LRB103 30628 JDS 57080 b HB2839 - 13 - LRB103 30628 JDS 57080 b HB2839 - 13 - LRB103 30628 JDS 57080 b 1 apprenticeship program that is approved by and registered with 2 the United States Department of Labor's Employment and 3 Training Administration. 4 "Shift" means a set standard period of time during which 5 an employer requires its employees to perform, on as daily 6 basis, their work-related duties. For purposes of this 7 definition, there may be multiple shifts per day. 8 "Skilled journeyperson" means a worker who meets all of 9 the following criteria: 10 (1) the worker either graduated from a registered 11 apprenticeship program for the applicable occupation or 12 has at least as many hours of on-the-job experience in the 13 applicable occupation as would be required to graduate 14 from a registered apprenticeship program for the 15 applicable occupation; 16 (2) the worker is being paid at least a rate 17 equivalent to the prevailing hourly wage rate for a 18 journeyperson in the applicable occupation and locality; 19 and 20 (3) beginning on or after July 1, 2025, the worker has 21 completed, within the prior 3 calendar years, minimum 22 approved safety training for workers at high-hazard 23 facilities and has filed a certificate of completion with 24 the Department. 25 "Skilled and trained workforce" means a workforce that 26 meets all of the following criteria: HB2839 - 13 - LRB103 30628 JDS 57080 b HB2839- 14 -LRB103 30628 JDS 57080 b HB2839 - 14 - LRB103 30628 JDS 57080 b HB2839 - 14 - LRB103 30628 JDS 57080 b 1 (1) all the workers are either registered apprentices 2 or skilled journeypersons; 3 (2) beginning on July 1, 2024, at least 45% of the 4 skilled journeypersons are graduates of an apprenticeship 5 program for the applicable occupation; 6 (3) beginning on July 1, 2025, at least 60% of the 7 skilled journeypersons are graduates of an apprenticeship 8 program for the applicable occupation; and 9 (4) beginning on July 1, 2026, at least 80% of the 10 skilled journeypersons are graduates of an apprenticeship 11 program for the applicable occupation. 12 "Stationary source" has the meaning provided in Section 13 39.5 of the Environmental Protection Act. 14 Section 10-10. Minimum approved safety training. 15 (a) A person who has completed minimum approved safety 16 training for workers at high-hazard facilities shall file his 17 or her certificate of completion with the Department in the 18 manner prescribed by the Department. 19 (b) The owner or operator, when contracting for the 20 performance of construction work at the stationary source, 21 shall require that its contractors and any subcontractors use 22 a skilled and trained workforce to perform all onsite work 23 within an apprenticeable occupation in the building and 24 construction trades and shall include this requirement in any 25 and all contracts executed between an owner or operator and a HB2839 - 14 - LRB103 30628 JDS 57080 b HB2839- 15 -LRB103 30628 JDS 57080 b HB2839 - 15 - LRB103 30628 JDS 57080 b HB2839 - 15 - LRB103 30628 JDS 57080 b 1 contractor or subcontractor. 2 (c) The requirements of this Section apply to contracts 3 entered into, amended, or renewed on or after July 1, 2024. 4 (d) The requirements of this Section apply only to the 5 skilled and trained workforce that is contracted with by an 6 owner or operator to perform construction work at the 7 stationary source site. 8 (e) The skilled and trained workforce requirements of this 9 Section do not apply to: 10 (1) Contractors that have requested qualified workers 11 from the local hiring halls that dispatch workers in the 12 apprenticeable occupation and that, due to workforce 13 shortages, are unable to obtain sufficient qualified 14 workers within 48 hours of the request, not including 15 Saturdays, Sundays, and holidays. This Act shall not 16 prevent contractors from obtaining workers from any 17 source. 18 (2) An emergency where compliance is impracticable; 19 namely, an emergency requiring immediate action to prevent 20 imminent harm to public health or safety or to the 21 environment. Within 3 days of an emergency resulting in a 22 failure to comply with this Act, the owner or operator 23 must notify the Department that such an event occurred and 24 provide documentation supporting its claim that compliance 25 was impracticable. Within 14 days of receiving such 26 documentation, the Department must issue a finding of HB2839 - 15 - LRB103 30628 JDS 57080 b HB2839- 16 -LRB103 30628 JDS 57080 b HB2839 - 16 - LRB103 30628 JDS 57080 b HB2839 - 16 - LRB103 30628 JDS 57080 b 1 whether or not the emergency warranted noncompliance with 2 this Act. An owner's or operator's failures to notify the 3 Department of an emergency as required shall constitute a 4 violation of this Act. 5 Section 10-12. Violations of Section 10-10. Any 6 interested party may file a complaint with the Department 7 against an owner, operator, or construction contractor covered 8 under this Act if there is reasonable belief that the owner, 9 operator, or construction contractor is in violation of 10 Section 10-10 of this Act. 11 Section 10-15. Enforcement. The Director of Labor or his 12 or her authorized representative may interview workers, 13 administer oaths, take or cause to be taken the depositions of 14 witnesses, and require by subpoena the attendance and 15 testimony of witnesses and the production of all books, 16 records, and other evidence relative to the matter under 17 investigation or hearing, including any contract entered into 18 between the owner or operator and construction contractor, and 19 a transcript of the contractor's payroll, broken down by 20 classification and skill level. Such subpoena shall be signed 21 and issued by the Director or his or her authorized 22 representative. 23 Upon request by the Director of Labor or his or her deputy 24 or agent, records shall be copied and submitted for evidence HB2839 - 16 - LRB103 30628 JDS 57080 b HB2839- 17 -LRB103 30628 JDS 57080 b HB2839 - 17 - LRB103 30628 JDS 57080 b HB2839 - 17 - LRB103 30628 JDS 57080 b 1 at no cost to the Department. Upon request by the Director or 2 his or her authorized representative, every employer shall 3 furnish a sworn statement of the accuracy of the records. Any 4 employer who refuses to furnish a sworn statement of the 5 records is in violation of this Act. 6 If any person fails to comply with any subpoena lawfully 7 issued under this Section or if any witness refuses to produce 8 evidence or to testify to any matter regarding which the 9 witness may be lawfully interrogated, the circuit court, upon 10 application of the Director of Labor or his or her authorized 11 representative, shall compel obedience by proceedings for 12 contempt, as in the case of disobedience of the requirements 13 of a subpoena issued by such court or a refusal to testify 14 therein. The Director may certify official acts. 15 If the Department finds that an owner, operator, or 16 construction contractor has not complied with this Act, the 17 Department shall refer the matter to the Attorney General for 18 enforcement. 19 Section 10-20. Exemptions. This Act does not apply to any 20 owner or operator that has an executed national or local labor 21 agreement in effect pertaining to the performance of 22 construction work at a given facility or site under the terms 23 of the agreement. The labor agreement must be negotiated with 24 and approved by a local building and construction trades 25 council that has geographic jurisdiction over the stationary HB2839 - 17 - LRB103 30628 JDS 57080 b HB2839- 18 -LRB103 30628 JDS 57080 b HB2839 - 18 - LRB103 30628 JDS 57080 b HB2839 - 18 - LRB103 30628 JDS 57080 b 1 source. 2 Section 10-21. Reporting. 3 (a) A registered apprenticeship program or contractor 4 subject to this Act shall file an annual report with the 5 Department of Commerce and Economic Opportunity and the 6 Illinois Works Review Panel, in the form and manner required 7 by the Department of Commerce and Economic Opportunity, within 8 6 months after the effective date of this Act and by January 31 9 of each year thereafter. The report shall contain the 10 following information: 11 (1) In the case of a report submitted by a registered 12 apprenticeship program providing minimum approved safety 13 training for workers in high-hazard facilities, the report 14 shall include: 15 (A) A description of the registered apprenticeship 16 program's recruitment and screening efforts and a 17 general description of its training efforts. 18 (B) The number of individuals who applied to, 19 participated in, and completed the minimum approved 20 safety training for workers at high-hazard facilities 21 in the prior calendar year, broken out by race, 22 ethnicity, gender, jurisdiction, apprentice or 23 journeyperson level, age, and veteran status. 24 (C) Demographic data for the county in which the 25 registered apprenticeship program is located. HB2839 - 18 - LRB103 30628 JDS 57080 b HB2839- 19 -LRB103 30628 JDS 57080 b HB2839 - 19 - LRB103 30628 JDS 57080 b HB2839 - 19 - LRB103 30628 JDS 57080 b 1 (D) A statement of the registered apprenticeship 2 program's minimum diversity goal, which shall be equal 3 to the demographic composition of its jurisdiction, 4 the demographic composition of the participants and 5 graduates of the registered apprenticeship program, 6 and a comparison of whether the demographic 7 composition of the participants of the apprenticeship 8 program who are working at the high-hazard facility 9 are meeting that goal. 10 (E) An action plan to increase or maintain 11 diversity in order to meet or exceed the stated 12 minimum diversity goal. An action plan may include, 13 but shall not be limited to, taking the following 14 actions if the diversity goal is not met: 15 (i) providing information on this Act for all 16 high schools and field offices of the Department 17 of Employment Security in the jurisdiction; 18 (ii) entering into a joint agreement with the 19 Department of Employment Security for outreach and 20 employment services; 21 (iii) entering into a joint agreement with 22 educational institutions or an approved Illinois 23 Works Preapprenticeship Program established under 24 subsection (a) of Section 20-15 of the Illinois 25 Works Jobs Program Act to enhance recruitment 26 efforts; and HB2839 - 19 - LRB103 30628 JDS 57080 b HB2839- 20 -LRB103 30628 JDS 57080 b HB2839 - 20 - LRB103 30628 JDS 57080 b HB2839 - 20 - LRB103 30628 JDS 57080 b 1 (iv) evaluating and, when feasible, 2 eliminating experience requirements that may pose 3 barriers to recruiting or admitting diverse 4 individuals as apprentices. 5 (2) In the case of a report submitted by a contractor 6 who employs workers operating in high-hazard facilities, 7 the report shall include: 8 (A) A description of the contractor's recruitment 9 and screening efforts and a general description of its 10 training efforts. 11 (B) The number of workers employed by the 12 contractor to work in high-hazard facilities in the 13 prior calendar year, broken out by race, ethnicity, 14 gender, jurisdiction, apprentice or journeyperson 15 level, age, and veteran status. 16 (C) Demographic data for the county in which the 17 majority of the contractor's high-hazard facility work 18 was performed in the last calendar year. 19 (D) A statement of the contractor's minimum 20 diversity goal, which shall be equivalent to the 21 demographic composition of its jurisdiction, and 22 whether the demographic composition of the workers 23 employed by the contractor to work at the high-hazard 24 facility is meeting that goal. 25 (E) An action plan to increase or maintain 26 diversity to meet or exceed the stated minimum HB2839 - 20 - LRB103 30628 JDS 57080 b HB2839- 21 -LRB103 30628 JDS 57080 b HB2839 - 21 - LRB103 30628 JDS 57080 b HB2839 - 21 - LRB103 30628 JDS 57080 b 1 diversity goal. An action plan may include, but need 2 not be limited to, taking the following actions if the 3 diversity goal is not met: 4 (i) providing information on this Act for all 5 high schools and field offices of the Department 6 of Employment Security in the jurisdiction; 7 (ii) entering into a joint agreement with the 8 Department of Employment Security for outreach and 9 employment services; 10 (iii) entering into a joint agreement with 11 educational institutions or approved Illinois 12 Works Preapprenticeship Programs established under 13 subsection (a) of Section 20-15 of the Illinois 14 Works Jobs Program Act in the jurisdiction to 15 enhance recruitment efforts; and 16 (iv) evaluating and eliminating experience 17 requirements that may pose barriers to recruiting 18 or admitting diverse individuals as apprentices 19 when feasible. 20 (b) The Department of Commerce and Economic Opportunity 21 shall review the annual reports and, in consultation with the 22 Illinois Works Review Panel, conduct an assessment of whether 23 the reports meet the requirements of this Act. 24 (c) If the Department of Commerce and Economic Opportunity 25 concludes that a minimum diversity goal established under 26 subparagraph (D) of paragraph (1) of subsection (a) or HB2839 - 21 - LRB103 30628 JDS 57080 b HB2839- 22 -LRB103 30628 JDS 57080 b HB2839 - 22 - LRB103 30628 JDS 57080 b HB2839 - 22 - LRB103 30628 JDS 57080 b 1 subparagraph (D) of paragraph (2) of subsection (a) will not 2 be met within 12 months after the report is filed or that the 3 action plan was not followed, the Department of Commerce and 4 Economic Opportunity, in consultation with the Illinois Works 5 Review Panel, shall recommend that the action plan be revised 6 to provide additional steps and opportunities for minority 7 participation. 8 (d) If the Department of Commerce and Economic 9 Opportunity, in consultation with the Illinois Works Review 10 Panel, concludes that the apprenticeship program or the 11 contractor failed to follow its action plan under subsection 12 subparagraph (E) of paragraph (1) of subsection (a), 13 subparagraph (E) of paragraph (2) of subsection (a), or the 14 recommended changes to its action plan provided by the 15 Department of Commerce and Economic Opportunity and the 16 Illinois Works Review Panel under subsection (c) within 12 17 months after filing the entity's report, the Department of 18 Commerce and Economic Opportunity may refer the matter to the 19 Department for investigation and enforcement. 20 (e) It is a violation of this Act for an applicable 21 registered apprenticeship program providing workers in a 22 high-hazard facility to fail to submit a report as required by 23 this Act. The Department of Commerce and Economic Opportunity 24 shall refer such violations to the Director of the Department 25 for investigation and enforcement. 26 (f) For reporting purposes, the jurisdiction is the HB2839 - 22 - LRB103 30628 JDS 57080 b HB2839- 23 -LRB103 30628 JDS 57080 b HB2839 - 23 - LRB103 30628 JDS 57080 b HB2839 - 23 - LRB103 30628 JDS 57080 b 1 Illinois county in which the applicable apprenticeship and 2 training program, approved by and registered with the U.S. 3 Department of Labor's Office of Apprenticeship, is located. 4 For a contractor, the jurisdiction is the county in which the 5 contractor's workers performed the majority of work in a 6 high-hazard facility within the last calendar year. 7 Section 10-25. Penalties; noncompliant reporting; 8 reinstatement. 9 (a) An owner or operator who violates the requirements of 10 this Act shall be subject to a minimum civil penalty of $10,000 11 for each violation. The Department shall consider the gravity 12 of the violation in determining the amount of the penalty. 13 Each shift a violation of this Act occurs shall be considered a 14 separate violation. The penalty may be recovered in a civil 15 action brought by the Director in any circuit court. In the 16 civil action, the Director shall be represented by the 17 Attorney General. All moneys received by the Department as 18 fees and civil penalties under this Act, other than moneys 19 collected as unpaid or underpaid wages plus a 5% monthly 20 penalty as provided in subsection (b), shall be deposited into 21 the Illinois Works Fund to be used to recruit, prescreen, and 22 provide preapprenticeship skills training for which 23 participants may attend free of charge and receive a stipend 24 to create a qualified, diverse pipeline of workers who are 25 prepared to work in high-hazard facilities. HB2839 - 23 - LRB103 30628 JDS 57080 b HB2839- 24 -LRB103 30628 JDS 57080 b HB2839 - 24 - LRB103 30628 JDS 57080 b HB2839 - 24 - LRB103 30628 JDS 57080 b 1 (b) In addition to the penalty provided in subsection (a), 2 if the Department finds that a contractor or owner or operator 3 failed to pay the prevailing rate of wages to construction 4 workers at a stationary source as required under this Act, the 5 Department may recover unpaid or underpaid wages, plus a 5% 6 monthly penalty, on behalf of and payable to the workers. 7 Wages owed may be recovered in a civil action brought by the 8 Director in any circuit court. In a civil action, the Director 9 shall be represented by the Attorney General. 10 (c) Notwithstanding subsections (a) and (b), if the 11 Department of Commerce and Economic Opportunity, in 12 consultation with the Illinois Works Review Panel, refers a 13 violation of Section 10-21 to the Department for investigation 14 and enforcement, the Department shall provide reasonable 15 notice of noncompliance to the violator within 90 days after 16 the violation and shall inform the violator that the violator 17 has 45 days to comply with Section 10-21 without penalty. If 18 the noncompliance is not remedied, the violator shall be in 19 violation of this Act and may be deemed by the Department unfit 20 to provide workers or operate at high-hazard facilities for a 21 period of up to one year. If the Department determines that the 22 violator has remedied the violation and is in compliance with 23 Section 10-21, the Department shall have 45 days to reinstate 24 the authorization for the violator to provide workers or 25 operate at high-hazard facilities. The Department may not 26 unreasonably withhold reinstatement under this subsection when HB2839 - 24 - LRB103 30628 JDS 57080 b HB2839- 25 -LRB103 30628 JDS 57080 b HB2839 - 25 - LRB103 30628 JDS 57080 b HB2839 - 25 - LRB103 30628 JDS 57080 b 1 the applicable registered apprenticeship program providing 2 workers in high-hazard facilities or the contractor operating 3 at high-hazard facilities is found to be in compliance with 4 Section 10-21. 5 Section 10-30. Rulemaking. The Department shall adopt 6 rules for the implementation and administration of this Act. 7 Section 10-97. Severability. The provisions of this Act 8 are severable under Section 1.31 of the Statute on Statutes. 9 ARTICLE 15. AMENDATORY PROVISIONS 10 Section 15-5. The Illinois Administrative Procedure Act is 11 amended by adding Section 5-45.35 as follows: 12 (5 ILCS 100/5-45.35 new) 13 Sec. 5-45.35. Emergency rulemaking. To provide for the 14 expeditious and timely implementation of this amendatory Act 15 of the 103rd General Assembly, the Department of Commerce and 16 Economic Opportunity shall, and the Department of Revenue may, 17 adopt emergency rules to implement and administer the 18 Investing in Illinois Works Tax Credit Act. Furthermore, the 19 Department of Labor shall adopt rules necessary to implement 20 and administer the Illinois Hazardous Materials Workforce 21 Training Act. The adoption of emergency rules authorized by HB2839 - 25 - LRB103 30628 JDS 57080 b HB2839- 26 -LRB103 30628 JDS 57080 b HB2839 - 26 - LRB103 30628 JDS 57080 b HB2839 - 26 - LRB103 30628 JDS 57080 b 1 this Section is deemed to be necessary for the public 2 interest, safety, and welfare. 3 This Section is repealed on January 1, 2027. 4 Section 15-10. The Illinois Income Tax Act is amended by 5 adding Section 234 as follows: 6 (35 ILCS 5/234 new) 7 Sec. 234. The Investing in Illinois Works Tax Credit. An 8 eligible taxpayer who has been awarded a credit by the 9 Department of Commerce and Economic Opportunity under Section 10 1-20 of the Investing in Illinois Works Tax Credit Act may 11 claim a credit against the taxes imposed under subsections (a) 12 and (b) of Section 201 of this Act for amounts due during the 13 first taxable year in which a tax credit certificate was 14 awarded. The credit shall be equal to the amount shown on the 15 certificate. For partners and shareholders of Subchapter S 16 corporations, there shall be allowed a credit under this 17 subsection to be determined in accordance with the 18 determination of income and distributive share of income under 19 Sections 702 and 704 and Subchapter S of the Internal Revenue 20 Code. The credit may not reduce the taxpayer's tax due under 21 subsections (a) and (b) of Section 201 to less than zero. 22 However, if the amount of the credit exceeds the total tax due 23 for the taxable year, the excess credit may be carried forward 24 and applied against the taxpayer's liability under subsections HB2839 - 26 - LRB103 30628 JDS 57080 b HB2839- 27 -LRB103 30628 JDS 57080 b HB2839 - 27 - LRB103 30628 JDS 57080 b HB2839 - 27 - LRB103 30628 JDS 57080 b 1 (a) and (b) of Section 201 in the 5 succeeding taxable years. 2 The credit shall be applied to the earliest taxable year for 3 which there is a tax liability. If there are credits from more 4 than one reporting period that are available to offset the 5 liability, the earlier credit shall be applied first. 6 ARTICLE 99. EFFECTIVE DATE 7 Section 99-99. Effective date. This Act takes effect 8 January 1, 2024. HB2839- 28 -LRB103 30628 JDS 57080 b 1 INDEX 2 Statutes amended in order of appearance HB2839- 28 -LRB103 30628 JDS 57080 b HB2839 - 28 - LRB103 30628 JDS 57080 b 1 INDEX 2 Statutes amended in order of appearance HB2839- 28 -LRB103 30628 JDS 57080 b HB2839 - 28 - LRB103 30628 JDS 57080 b HB2839 - 28 - LRB103 30628 JDS 57080 b 1 INDEX 2 Statutes amended in order of appearance HB2839 - 27 - LRB103 30628 JDS 57080 b HB2839- 28 -LRB103 30628 JDS 57080 b HB2839 - 28 - LRB103 30628 JDS 57080 b HB2839 - 28 - LRB103 30628 JDS 57080 b 1 INDEX 2 Statutes amended in order of appearance HB2839 - 28 - LRB103 30628 JDS 57080 b