Bill Text: IL HB3418 | 2023-2024 | 103rd General Assembly | Engrossed

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Bill Title: Creates the Securing All Futures through Equitable Reinvestment (SAFER) Communities Act. Provides that the Department of Commerce and Economic Opportunity shall create a program to award grants to Navigators for specified purposes, including wage reimbursements for employers that employ certain formerly incarcerated individuals. Contains provisions concerning requirements for wage reimbursements. Provides that "Navigator" means an entity that has demonstrated expertise and effectiveness in administering workforce development programs for formerly incarcerated participants and is certified by the Department as a Navigator. Amends the Illinois Administrative Procedure Act. Authorizes the Department of Commerce and Economic Opportunity to adopt emergency rules to implement the Securing All Futures through Equitable Reinvestment (SAFER) Communities Act. Amends the Illinois Income Tax Act. Repeals a tax credit for wages paid to ex-felons, and establishes a credit for wages paid to ex-offenders. Effective immediately.

Spectrum: Partisan Bill (Democrat 36-0)

Status: (Engrossed) 2024-11-13 - Added as Alternate Co-Sponsor Sen. Mike Porfirio [HB3418 Detail]

Download: Illinois-2023-HB3418-Engrossed.html

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AN ACT concerning employment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Securing All Futures through Equitable Reinvestment (SAFER)
Communities Act.
Section 5. Intent. To reverse the trend of high
unemployment among formerly incarcerated individuals and to
spur the economic recovery of small businesses in Illinois, it
is necessary to provide financial incentives for employers to
create new, full-time jobs for individuals with felony
conviction records.
The intent of this Act is to facilitate the re-entry into
society of formerly incarcerated individuals and to create
financial incentives for employers that hire formerly
incarcerated individuals.
Section 10. Definitions. As used in this Act:
"Average wage" means the average annual wage paid to
individuals who are employed in the same occupation as the
participant in the metropolitan or nonmetropolitan statistical
area where the participant's primary job site is located.
"Average annual wage" shall be determined by the Department

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using the most recent data published by the Bureau of Labor
Statistics of the United States Department of Labor in its
Occupational Outlook Handbook, or any similar Bureau of Labor
Statistics publication, as of the effective date of the
agreement for wage reimbursement under this Act.
"Barrier reduction funding" has the meaning given to that
term in Section 605-415 of the Department of Commerce and
Economic Opportunity Law of the Civil Administrative Code of
Illinois.
"Date of hire" means the first date on which a participant
begins working for an employer as a full-time employee.
"Department" means the Department of Commerce and Economic
Opportunity.
"Director" means the Director of Commerce and Economic
Opportunity.
"Disproportionately impacted area" means a census tract
that is located in an R3 Area designated by the Restore,
Reinvest, and Renew Program Board in accordance with Section
10-40 of the Cannabis Regulation and Tax Act.
"Employer" means an Illinois taxpayer that has an
agreement with a Navigator to (i) hire at least one
participant as a full-time employee and (ii) provide the
employee with the knowledge or skills essential to the full
and adequate performance of the job.
"Full-time employee" means an individual who is employed
for at least 30 hours each week in (i) a position that is

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covered by a collective bargaining agreement between the union
and an employer or (ii) a position for which the individual
receives a wage that meets or exceeds the average wage for that
occupation.
"Navigator" means any one or more of the following
entities that has demonstrated expertise and effectiveness in
administering workforce development programs for formerly
incarcerated participants and is certified by the Department
as a Navigator: a private nonprofit or not-for-profit
organization, an industry association, an administrative
entity under the federal Workforce Innovation and Opportunity
Act, a community action agency, or a public or private
educational institution.
"Participant" means an individual who:
(1) is an Illinois resident;
(2) was an unemployed or underemployed individual
immediately before being hired by the employer;
(3) served a sentence of incarceration in a State or
federal prison that (i) ends not more than 10 years before
the date the employee is accepted by a Navigator to
participate in the program and (ii) ends or is expected to
end no later than 12 months after the employee is accepted
by a Navigator to participate in the program; and
(4) has been accepted by a Navigator to participate in
the program.
"Program" means the Securing All Futures through Equitable

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Reinvestment (SAFER) Communities Wage Reimbursement Pilot
Program created in this Act.
"Underemployed individual" means an individual who:
(1) works part-time but desires full-time employment;
(2) works for wages not commensurate with the
individual's demonstrated level of educational or skill
achievement; or
(3) is employed and is eligible for assistance under
Section 6 of the Energy Assistance Act.
"Unemployed individual" means an individual who is without
a job and who wants and is available for work. The
determination of whether an individual is without a job, for
purposes of this definition, shall be made in accordance with
the criteria used by the Bureau of Labor Statistics of the
United States Department of Labor or as required by the
relevant funding source and set forth in the Notice of Funding
Opportunities.
"Wage reimbursement" means the amount awarded by the
Department to a Navigator to compensate the employer for the
employer's costs of employment for each participant hired by
the employer.
Section 15. Powers of the Department. The Department is
granted and shall have all the powers necessary or convenient
to carry out the purposes and provisions of this Act,
including, but not limited to, the power and authority to:

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(1) adopt rules that are necessary and appropriate for
the administration of this Act;
(2) establish forms for applications, notifications,
contracts, or any other agreements needed to implement
this Act;
(3) accept applications for the program under this Act
at any time during the year and require that the
applications be submitted through the Internet or by any
other electronic means;
(4) provide guidance and assistance to Navigators for
the purpose of carrying out this Act and cooperate with
Navigators to promote, foster, and support job creation in
the State;
(5) enter into agreements and memoranda of
understanding with agencies of the federal government,
units of local government, universities, research
foundations or institutions, regional economic development
corporations, not-for-profit organizations, or other
organizations for the purpose of administering this Act;
(6) gather information about Navigators for the
purpose of making any designations or certifications in
furtherance of the purposes of this Act;
(7) provide for sufficient personnel to adequately
discharge the Department's duties and responsibilities
described in this Act from any funds appropriated by the
General Assembly for the administration of this Act; and

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(8) require Navigators, upon written request, to issue
any necessary authorization to the appropriate federal,
State, or local authority or any other person for the
release to the Department of information requested by the
Department, including, but not limited to, financial
reports, returns, or records relating to the Navigators or
to the amount of the wage reimbursement allowable under
this Act.
Section 20. SAFER Communities Wage Reimbursement Pilot
Program.
(a) The Department shall, subject to appropriation, create
a program to award grants to Navigators for the purposes
described in this Section.
(b) The Department shall award grants to Navigators for
the following purposes:
(1) providing wage reimbursements to employers that
hire participants, as provided in Sections 25 and 30;
(2) collaborating with employers to support
participants who require on-the-job experience to gain job
skills, develop a work history, and begin a network for
entering the workforce; and
(3) providing barrier reduction funding, including,
but not limited to, transportation, housing, childcare,
and technology services to participants, as needed.
(c) The Department may also award grants for the following

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purposes to Navigators who are eligible to receive grants
under subsection (b):
(1) establishing retention coaching programs that
support worker retention by continuing the services
described in subparagraph (3) of subsection (b) for one
year after job placement, as needed; and
(2) supporting participants who aspire to participate
in additional workforce development, training, and
technical skills programs and opportunities.
(d) Navigators shall use the Department's system of record
to maintain a record of all participants who are eligible for
the Program. Navigators shall verify each applicant's
employment and conviction history to determine whether the
applicant is eligible for participation in the program.
Navigators shall notify applicants by email of the denial or
approval of the application. Navigators may also send a
physical copy of the denial or approval by first-class mail if
the application indicates that email is not the applicant's
preferred method of communication. Each denial letter issued
under this subsection shall state the reason why the
individual's application is being denied. Navigators shall
submit to the Department a record of each applicant's denial
or approval. Navigators shall email qualified participants an
electronic certification of eligibility with details about the
wage subsidy program, which the participant may present to a
prospective employer. The Navigator may also send a physical

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copy of the certification by first class mail if the
application indicates that email is not the applicant's
preferred method of communication.
Section 25. Eligibility and reporting.
(a) The Navigator shall enter into an agreement with the
employer of an eligible participant to establish the general
terms and conditions of wage reimbursements with respect to
that participant. At a minimum, the agreement shall include:
(1) the participant's name, social security number or
individual taxpayer identification number, job
description, and salary;
(2) the physical address of the workplace at which the
participant is based;
(3) the negotiated reimbursement rate for the wage the
Navigator would receive under this Act with respect to the
participant listed on the application; and
(4) any other information required by the Department.
(b) Wage reimbursements provided to employers must not
directly or indirectly assist, promote, or deter union
organizing.
(c) Navigators shall submit monthly reports in the form
and manner required by the Department that include the
employment status of each participant.
Section 30. Wage reimbursement.

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(a) An employer may enter into a wage reimbursement
agreement under Section 25 for each participant who is
employed by the employer as a full-time employee for a full
calendar month as of the date the agreement is entered into,
provided that the following conditions are met:
(1) the participant shall be provided benefits and
working conditions at the same level and to the same
extent as other employees who have been employed by the
employer for a similar length of time and do the same type
of work as the participant;
(2) starting from the date of hire of the participant,
the employer shall maintain or increase its total number
of full-time Illinois employees; and
(3) the employer shall pay the participant a wage
that, when annualized, meets or exceeds the average wage
paid by the employer to other employees who have been
employed by the employer for a similar length of time and
do the same type of work as the participant.
(b) The wage reimbursement received by an employer shall
be 50% of the wages earned by each participant as a result of
his or her employment with the employer. However, if the
participant's primary job site is located in a
disproportionately impacted area, then the wage reimbursement
shall be 75% of the wages earned by that participant. No
employer shall receive a wage reimbursement for a particular
participant for more than 12 consecutive months.

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Section 35. Data collection and reporting. For years in
which it receives an appropriation for purposes of this Act,
the Department shall make publicly available an annual report
on the use, outcomes, and impact of the program described in
this Act, including, but not limited to, the total number of
participants hired under the program, disaggregated by
categories of race, age, gender, hourly wage, length of job
retention, recidivism status, job location by region, and
employment industry.
Section 40. Awareness promotion of the pilot program. The
Department of Corrections shall implement procedures to
promote awareness and participation in the program among
eligible persons, including, but not limited to, the
following:
(1) The Department of Corrections shall ensure that
the wardens or superintendents of all correctional
institutions and facilities visibly post information about
the availability and registration process for the program
in all common areas of their respective institutions, and
shall broadcast the same via in-house institutional
information television channels. The Department of
Corrections shall ensure that updated information is
distributed in a timely, visible, and accessible manner.
(2) The Department of Corrections shall ensure that

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each incarcerated individual, upon release as a committed
person on parole, mandatory supervised release, aftercare
release, final discharge, or pardon, shall be provided
with written information about the availability and
registration process for the program.
(3) The Department of Corrections shall provide to
each parole office in this State information about the
availability and application process for the program,
which shall be posted in a visible and accessible manner.
(4) The Department of Corrections shall distribute
written information about the availability and application
process for the program to the Community Support Advisory
Councils of the Department of Corrections for use in
re-entry programs across this State.
Section 45. Funding. Implementation of this Act is subject
to appropriation.
Section 50. Rulemaking authority. Upon an appropriation
for the Program, the Department may adopt rules that are
necessary to implement and administer this Act.
Section 55. Repeal. This Act is repealed on December 31,
2029.
Section 895. The Illinois Administrative Procedure Act is

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amended by adding Section 5-45.35 as follows:
(5 ILCS 100/5-45.35 new)
Sec. 5-45.35. Emergency rulemaking; Securing All Futures
through Equitable Reinvestment (SAFER) Communities Act. To
provide for the expeditious and timely implementation of the
Securing All Futures through Equitable Reinvestment (SAFER)
Communities Act, emergency rules implementing that Act may be
adopted in accordance with Section 5-45 by the Department of
Commerce and Economic Opportunity. The adoption of emergency
rules authorized by Section 5-45 and this Section is deemed to
be necessary for the public interest, safety, and welfare.
This Section is repealed one year after the effective date
of this amendatory Act of the 103rd General Assembly.
Section 900. The Illinois Income Tax Act is amended by
changing Section 216 and by adding Section 216.1 as follows:
(35 ILCS 5/216)
Sec. 216. Credit for wages paid to ex-felons.
(a) For each taxable year beginning on or after January 1,
2007 and before January 1, 2024, each taxpayer is entitled to a
credit against the tax imposed by subsections (a) and (b) of
Section 201 of this Act in an amount equal to 5% of qualified
wages paid by the taxpayer during the taxable year to one or
more Illinois residents who are qualified ex-offenders. The

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total credit allowed to a taxpayer with respect to each
qualified ex-offender may not exceed $1,500 for all taxable
years. For partners, shareholders of Subchapter S
corporations, and owners of limited liability companies, if
the liability company is treated as a partnership for purposes
of federal and State income taxation, there shall be allowed a
credit under this Section to be determined in accordance with
the determination of income and distributive share of income
under Sections 702 and 704 and Subchapter S of the Internal
Revenue Code.
(b) For purposes of this Section, "qualified wages":
(1) includes only wages that are subject to federal
unemployment tax under Section 3306 of the Internal
Revenue Code, without regard to any dollar limitation
contained in that Section;
(2) does not include any amounts paid or incurred by
an employer for any period to any qualified ex-offender
for whom the employer receives federally funded payments
for on-the-job training of that qualified ex-offender for
that period; and
(3) includes only wages attributable to service
rendered during the one-year period beginning with the day
the qualified ex-offender begins work for the employer.
If the taxpayer has received any payment from a program
established under Section 482(e)(1) of the federal Social
Security Act with respect to a qualified ex-offender, then,

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for purposes of calculating the credit under this Section, the
amount of the qualified wages paid to that qualified
ex-offender must be reduced by the amount of the payment.
(c) For purposes of this Section, "qualified ex-offender"
means any person who:
(1) has been convicted of a crime in this State or of
an offense in any other jurisdiction, not including any
offense or attempted offense that would subject a person
to registration under the Sex Offender Registration Act;
(2) was sentenced to a period of incarceration in an
Illinois adult correctional center; and
(3) was hired by the taxpayer within 3 years after
being released from an Illinois adult correctional center.
(d) In no event shall a credit under this Section reduce
the taxpayer's liability to less than zero. If the amount of
the credit exceeds the tax liability for the year, the excess
may be carried forward and applied to the tax liability of the
5 taxable years following the excess credit year. The tax
credit shall be applied to the earliest year for which there is
a tax liability. If there are credits for more than one year
that are available to offset a liability, the earlier credit
shall be applied first.
(e) This Section is exempt from the provisions of Section
250.
(Source: P.A. 98-165, eff. 8-5-13.)

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(35 ILCS 5/216.1 new)
Sec. 216.1. Credit for wages paid to ex-offenders.
(a) In this Section:
"Qualified ex-offender" means any person who was hired by
the taxpayer within 10 years after being released from a
correctional center in the State.
"Qualified wages" includes only wages that are
attributable to service rendered during the one-year period
beginning with the day the qualified ex-offender begins work
for the employer and are subject to federal unemployment tax
under Section 3306 of the Internal Revenue Code, without
regard to any dollar limitation contained in that Section.
"Qualified wages" does not include any amounts paid or
incurred by an employer for any period to any qualified
ex-offender for whom the employer receives State-funded or
federally funded payments for on-the-job training of that
qualified ex-offender for that period. If the taxpayer has
received any payment from a program established under Section
482(e)(1) of the federal Social Security Act with respect to a
qualified ex-offender, then the amount of the qualified wages
paid to that qualified ex-offender must be reduced, for
purposes of calculating the credit under this Section, by the
amount of the payment.
(b) For each taxable year beginning on or after January 1,
2024, each taxpayer is entitled to a credit against the tax
imposed by subsections (a) and (b) of Section 201 of this Act

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in an amount equal to 10% of the qualified wages paid by the
taxpayer during the taxable year to one or more Illinois
residents who are qualified ex-offenders. For taxpayers
employing 100 or more employees on the last day of the taxable
year, the total credit allowed with respect to each qualified
ex-offender may not exceed $1,500 for all taxable years. For
taxpayers employing fewer than 100 employees on the last day
of the taxable year, the total credit allowed with respect to
each qualified ex-offender may not exceed $5,000 for all
taxable years.
(c) For partners and shareholders of Subchapter S
corporations, there shall be allowed a credit under this
Section to be determined in accordance with the determination
of income and distributive share of income under Sections 702
and 704 and Subchapter S of the Internal Revenue Code.
(d) In no event shall a credit under this Section reduce
the taxpayer's liability to less than zero. If the amount of
the credit exceeds the tax liability for the year, the excess
may be carried forward and applied to the tax liability of the
5 taxable years following the excess credit year. The tax
credit shall be applied to the earliest year for which there is
a tax liability. If there are credits for more than one year
that are available to offset a liability, the earlier credit
shall be applied first.
(e) This Section is exempt from the provisions of Section
250.

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Section 999. Effective date. This Act takes effect upon
becoming law.