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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3418 Introduced , by Rep. Justin Slaughter SYNOPSIS AS INTRODUCED:
See Index
Creates the Securing All Futures through Equitable Reinvestment (SAFER) Communities and Small Business Act. Requires the Department of Human Services to establish and administer a SAFER Communities Wage Subsidy Pilot Program. Provides that the wage subsidy shall apply to no more than 6,000 participants. Requires the Department to maintain a database of all participants for the duration of the incentive period. Provides that individuals seeking to participate in the pilot program shall register with the Department on or after January 1, 2024. Requires the Department to verify individuals' eligibility to participate in the pilot program by checking their employment and felony conviction history. Contains provisions concerning certificates of eligibility for wage subsidies under the pilot program; the monetary amount of monthly wage subsidy payments awarded under the pilot program; certain conditions program participants must satisfy to receive monthly wage subsidy payments; the maximum amount of wage subsidies allowed under the pilot program; promotion efforts for the pilot program conducted by the Department of Corrections; and other matters. Requires the Department to establish a Returning Citizen and Small Business Grant Program. Sets forth requirements a small business must meet to be eligible for a grant under the program. Provides that an eligible small business shall be awarded grants in the amount of $2,500 per new qualifying returning citizen hired. Limits the total annual amount in grants an eligible small business may receive under the grant program. Contains provisions concerning data collection and reporting requirements for the Secretary of Human Services. Provides that implementation of the Act is subject to appropriation. Permits the Department of Human Services to use State or federal funding to administer the SAFER Communities Wage Subsidy Pilot Program and the Returning Citizen and Small Business Grant Program. Grants rulemaking authority to the Department of Human Services and the Department of Corrections. Provides that the Act is repealed on December 31, 2029. Effective immediately.
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A BILL FOR
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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 and Small Business 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, in the form of wage subsidies and small
business grants, for employers to hire formerly incarcerated
individuals.
Section 10. Definitions. As used in this Act:
"Applicant" means a person who is operating either: (i) a
not-for-profit organization that is tax-exempt under Section
501(c)(3) of the Internal Revenue Code; or (ii) a business
engaged in interstate or intrastate commerce, located within

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the State that hires a participant for a position under a union
contract or for a position that offers a basic wage and
benefits package as compensation. In the case of any person
that is a member of a unitary business group as defined in
paragraph (27) of subsection (a) of Section 1501 of the
Illinois Income Tax Act, "applicant" refers to the unitary
business group.
"Basic wage" means a minimum of 133% of the local hourly
minimum wage.
"Benefits package" means the benefits outside of the
employee's basic wage including:
(1) a minimum of 5 days of earned sick time; and
(2) a minimum of 5 days of paid vacation.
"Certificate of eligibility" means the certificate issued
by the Department under Section 25.
"Date of hire" means the first day upon which the
participant provides services as an employee of the applicant
under a union contract or for a basic wage and benefits package
as compensation.
"Department" means the Department of Human Services.
"Disproportionately impacted area" means a census tract or
comparable geographic area that has high rates of arrest,
conviction, and incarceration among residents, as determined
by the Department of Commerce and Economic Opportunity.
"Full-time employee" means an individual who has a
position under a union contract or is employed for a basic wage

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for at least 30 hours each week and receives a benefits package
as compensation.
"Incentive period" means the period beginning on March 1,
2024 and ending on February 29, 2029.
"Noncompliance date" means, in the case of an applicant
that is not complying with the requirements of this Act, the
date upon which the applicant became noncompliant with the
requirements of this Act, as determined by the Secretary under
Section 40.
"Participant" means a full-time employee who:
(1) was unemployed or making less than the basic wage
before being hired by an applicant;
(2) was convicted of a felony crime in Illinois;
(3) is registered for the SAFER Communities Wage
Subsidy Pilot Program described in Section 20; and
(4) is subsequently hired during the incentive period
by an applicant for a position under union contract or for
a position that offers a basic wage and benefits package
as compensation.
"Participant" does not include a person who was employed
prior to the onset of the incentive period as a full-time
employee by the applicant or a related member of the applicant
that has more than 15 total employees.
"Qualifying returning citizen" means an Illinois resident
who has been incarcerated within 10 years prior to the date
that a Returning Citizen and Small Business Grant, described

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in Section 60, is awarded.
"Re-entering person" means an individual who is in the
physical custody of the Department of Corrections and is
scheduled to be released from custody within 12 months.
"Secretary" means the Secretary of Human Services.
"Small business" means a business located within this
State that:
(1) is engaged in interstate or intrastate commerce;
and
(2) employs 100 or fewer employees.
"Wage subsidy" means the amount awarded by the Department
to an applicant by issuance of a certificate under Section 30
for each participant hired.
Section 15. Powers of the Department. The Department is
granted and shall have all the powers necessary or convenient
to carry out and effectuate the purposes and provisions of
this Act, including, but not limited to, the power and
authority to:
(1) Adopt rules or procedures deemed necessary and
appropriate for the administration of this Act; establish
forms for applications, notifications, contracts, or any
other agreements; and accept applications at any time
during the year and require that all applications be
submitted via the Internet. The Department shall require
that applications be submitted in electronic form.

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(2) Provide guidance and assistance to an applicant in
accordance with this Act, and cooperate with applicants to
promote, foster, and support job creation within the
State.
(3) 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, or other organizations for the purposes of
this Act.
(4) Gather information with respect to applicants for
the purpose of making any designations or certifications
in furtherance of the purposes of this Act.
(5) Provide for sufficient personnel to adequately
discharge its duties and responsibilities described in
this Act from any funds appropriated by the General
Assembly for the administration of this Act.
(6) Require applicants, 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, with the information requested to include, but
not limited to, financial reports, returns, or records
relating to the applicant or to the amount of the wage
subsidy allowable under this Act.

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Section 20. SAFER Communities Wage Subsidy Pilot Program.
(a) The Department shall establish and administer a SAFER
Communities Wage Subsidy Pilot Program. Within each calendar
year of the incentive period, the wage subsidy shall apply to
no more than 6,000 participants. A maximum of 3,000
participants per calendar year shall be participants who have
been released from the custody of any correctional facility in
the State within one year of the date of registration for the
pilot program. A maximum of 3,000 participants per calendar
year shall be participants who have been released from the
custody of any correctional facility in the State within a
period of not more than 10 years and not less than one year
from the date of registration for the pilot program.
(b) The Department shall maintain a database of all
participants for the duration of the incentive period.
(1) Individuals seeking to participate in the pilot
program shall register with the Department on or after
January 1, 2024.
(2) The Department shall verify individuals'
eligibility to participate in the pilot program by
checking their employment and felony conviction history.
(3) The Department shall mail a letter containing a
denial or confirmation of the individual's eligibility to
participate in the pilot program to the primary address of
the individual. The Department shall also send an email
with an electronic version of the letter attached to the

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primary email address of the individual.
(A) The denial letter shall state the reason why
the individual is being denied.
(B) The confirmation letter shall state the
identifying number assigned to the individual.
(C) The Department shall maintain a record of the
participants and the corresponding applicant.
Section 25. Certificate of eligibility for wage subsidy.
(a) An applicant that hires a participant as a full-time
employee during the incentive period may apply for a
certificate of eligibility for the wage subsidy on or after
the date of hire.
(b) An applicant may apply for a certificate of
eligibility for the wage subsidy for more than one participant
on or after the date of hire of each qualifying participant.
The application shall include the following:
(1) the name, Social Security number or Individual
Taxpayer Identification number, job description, salary or
wage rate, and date of hire of each participant with
respect to whom the wage subsidy is being requested, and
whether each participant is registered in the pilot
program described in Section 20;
(2) the number of participants hired by the applicant
during the incentive period;
(3) an agreement that the Secretary is authorized to

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verify with the appropriate State agencies the information
contained in the request before issuing a certificate to
the applicant;
(4) the physical address of the workplace to which the
participant reports for work; and
(5) any other information the Department determines to
be appropriate.
(c) After receipt of an application and approval of
eligibility under this Section, the Department shall issue a
certificate of eligibility to all qualified applicants,
stating:
(1) the date and time on which the application was
received by the Department and an identifying number
assigned to the applicant by the Department; and
(2) the monthly amount of wage subsidy the applicant
would receive under this Act with respect to the new
employees listed on the application.
(d) After the initial certificate of eligibility is
issued, the applicant must submit a monthly report of
employment of all participants to the Department. The
Department shall review the report on a monthly basis and
determine the applicant's eligibility for a monthly wage
subsidy under this Act.
(e) Each applicant shall, on a monthly basis starting from
receipt of the certificate of eligibility for the wage
subsidy, submit a year-to-date report of the employment of

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participants to remain in good standing to receive the wage
subsidy.
(f) The reports shall be submitted in the form and manner
required by the Department.
Section 30. Wage subsidy.
(a) Subject to the conditions set forth in this Act, an
applicant with a certificate of eligibility is entitled to a
monthly wage subsidy for each participant that was employed
for a full calendar month by the applicant if the following
conditions are met:
(1) the participant was continuously employed under a
union contract or for a basic wage and benefits package;
and
(2) starting from the date of hire of the participant,
the applicant maintained or increased the total number of
full-time Illinois employees.
(b) The Department shall make monthly wage subsidy
payments to qualified applicants with a certificate of
eligibility that are in compliance with the requirements of
this Act.
(c) The Department shall issue a wage subsidy payment to
the applicant for each participant that was continuously
employed for an entire calendar month after the date on which
the certificate is issued by the Department, and each month
thereafter for a maximum of 12 months during the incentive

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period, as long as the participant's employment with the
applicant is continuously maintained and the Department
determines the applicant is in compliance with the
requirements of this Act.
(d) The monetary amount of each monthly wage subsidy
payment awarded to an applicant for each participant who was
continuously employed for an entire calendar month shall
equal:
(1) $1,250 for all applicants whose workplaces are
located in disproportionately impacted areas; and
(2) $850 for all other applicants.
Section 35. Maximum amount of wage subsidies allowed. To
the extent authorized under Section 30, during the incentive
period the Department shall limit the total annual amount of
wage subsidies awarded under this Act to no more than
$50,000,000. If applications for a greater amount are
received, wage subsidies shall be allowed on a first come,
first served basis, based on the date on which each properly
completed application for a certificate of eligibility is
received by the Department. If more than one certificate of
eligibility is received on the same day, the wage subsidies
shall be awarded based on the time of submission for that
particular day.
Section 40. Noncompliance.

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(a) If the Secretary determines that an applicant that has
received a wage subsidy under this Act is not complying with
the requirements of this Act, the Secretary shall provide
notice to the applicant of the alleged noncompliance, and
allow the applicant a hearing under the Illinois
Administrative Procedure Act.
(b) If, after such notice and any hearing, the Secretary
determines that noncompliance exists, the Secretary shall
issue a notice to the applicant to that effect stating the
noncompliance date.
Section 45. Awareness promotion of the pilot program. From
January 1, 2024 through the end of the incentive period, the
Department of Corrections shall implement procedures to
promote awareness and participation in the SAFER Communities
Wage Subsidy Pilot Program among re-entering 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 SAFER
Communities Wage Subsidy Pilot 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,

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and accessible manner.
(2) The Department of Corrections shall ensure that
upon release as a committed person on parole, mandatory
supervised release, aftercare release, final discharge, or
pardon, a re-entering person shall be provided with
written information about the availability and
registration process for the SAFER Communities Wage
Subsidy Pilot Program.
(3) The Department of Corrections shall provide
direction to each parole office within this State that
information about the availability and registration
process for the SAFER Communities Wage Subsidy Pilot
Program be posted in a visible and accessible manner.
(4) The Department of Corrections shall distribute
written information about the availability and
registration process for the SAFER Communities Wage
Subsidy Pilot Program to the Community Support Advisory
Councils of the Department of Corrections for use in
re-entry programs across this State.
Section 50. Returning Citizens and Small Business Grant
Program.
(a) The Department shall establish a Returning Citizen and
Small Business Grant Program.
(b) The Department shall provide grants to small
businesses that hire qualified returning citizens to offset

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the costs of paid, on-the-job training.
(c) To be eligible for grants issued under this Section, a
small business must:
(1) provide a certification indicating that it has
hired a qualified returning citizen as a full-time
employee;
(2) provide on-the-job training to that returning
citizen for at least 60 days; and
(3) paid the qualifying returning citizen at least a
basic wage.
(d) An eligible small business shall be awarded grants in
the amount of $2,500 per new qualifying returning citizen
hired.
(e) Eligible small businesses shall not be limited to one
grant.
(f) The Department shall limit the total annual amount of
small business grants to no more than $25,000,000. The
Department shall administer the issuance of grants under the
Program on a first come, first served basis.
Section 55. Data collection and reporting. In partnership
with the Illinois Sentencing Policy Advisory Council, the
Secretary shall make publicly available annual reports on the
utilization, outcomes, and impact of the SAFER Communities
Wage Subsidy Pilot Program and the Returning Citizen and Small
Business Grant Program described in this Act, including, but

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not limited to:
(1) the total number of participants hired under each
program, disaggregated by categories of race, age, gender,
hourly wage, length of job retention, recidivism status,
job location by region, and employment industry; and
(2) the impact of each program on overall statewide
recidivism rates, individual rate of recidivism, and any
public savings or fiscal impact associated with reduced
recidivism rates on the State economy.
Section 60. Funding. Implementation of this Act is subject
to appropriation. The Department may use State or federal
funding to administer the SAFER Communities Wage Subsidy Pilot
Program and the Returning Citizen and Small Business Grant
Program described in this Act.
Section 70. Rulemaking authority.
(a) The Department may adopt rules necessary to implement
this Act. Any administrative rules necessary to implement this
Act shall be filed by the Department within 6 months after the
effective date of this Act.
(b) The Department of Corrections shall adopt rules to
carry out its responsibilities under this Act. Any
administrative rules necessary to implement its
responsibilities under this Act shall be filed by the
Department of Corrections within 6 months after the effective

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date of this Act.
Section 75. Repealer. This Act is repealed on December 31,
2029.
Section 99. Effective date. This Act takes effect upon
becoming law.
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INDEX
Statutes amended in order of appearance