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1 AN ACT concerning employment.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5Securing All Futures through Equitable Reinvestment (SAFER)
6Communities Act.
7 Section 5. Intent. To reverse the trend of high
8unemployment among formerly incarcerated individuals and to
9spur the economic recovery of small businesses in Illinois, it
10is necessary to provide financial incentives for employers to
11create new, full-time jobs for individuals with felony
12conviction records.
13 The intent of this Act is to facilitate the re-entry into
14society of formerly incarcerated individuals and to create
15financial incentives for employers that hire formerly
16incarcerated individuals.
17 Section 10. Definitions. As used in this Act:
18 "Average wage" means the average annual wage paid to
19individuals who are employed in the same occupation as the
20participant in the metropolitan or nonmetropolitan statistical
21area where the participant's primary job site is located.
22"Average annual wage" shall be determined by the Department

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1using the most recent data published by the Bureau of Labor
2Statistics of the United States Department of Labor in its
3Occupational Outlook Handbook, or any similar Bureau of Labor
4Statistics publication, as of the effective date of the
5agreement for wage reimbursement under this Act.
6 "Barrier reduction funding" has the meaning given to that
7term in Section 605-415 of the Department of Commerce and
8Economic Opportunity Law of the Civil Administrative Code of
9Illinois.
10 "Date of hire" means the first date on which a participant
11begins working for an employer as a full-time employee.
12 "Department" means the Department of Commerce and Economic
13Opportunity.
14 "Director" means the Director of Commerce and Economic
15Opportunity.
16 "Disproportionately impacted area" means a census tract
17that is located in an R3 Area designated by the Restore,
18Reinvest, and Renew Program Board in accordance with Section
1910-40 of the Cannabis Regulation and Tax Act.
20 "Employer" means an Illinois taxpayer that has an
21agreement with a Navigator to (i) hire at least one
22participant as a full-time employee and (ii) provide the
23employee with the knowledge or skills essential to the full
24and adequate performance of the job.
25 "Full-time employee" means an individual who is employed
26for at least 30 hours each week in (i) a position that is

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1covered by a collective bargaining agreement between the union
2and an employer or (ii) a position for which the individual
3receives a wage that meets or exceeds the average wage for that
4occupation.
5 "Navigator" means any one or more of the following
6entities that has demonstrated expertise and effectiveness in
7administering workforce development programs for formerly
8incarcerated participants and is certified by the Department
9as a Navigator: a private nonprofit or not-for-profit
10organization, an industry association, an administrative
11entity under the federal Workforce Innovation and Opportunity
12Act, a community action agency, or a public or private
13educational institution.
14 "Participant" means an individual who:
15 (1) is an Illinois resident;
16 (2) was an unemployed or underemployed individual
17 immediately before being hired by the employer;
18 (3) served a sentence of incarceration in a State or
19 federal prison that (i) ends not more than 10 years before
20 the date the employee is accepted by a Navigator to
21 participate in the program and (ii) ends or is expected to
22 end no later than 12 months after the employee is accepted
23 by a Navigator to participate in the program; and
24 (4) has been accepted by a Navigator to participate in
25 the program.
26 "Program" means the Securing All Futures through Equitable

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1Reinvestment (SAFER) Communities Wage Reimbursement Pilot
2Program created in this Act.
3 "Underemployed individual" means an individual who:
4 (1) works part-time but desires full-time employment;
5 (2) works for wages not commensurate with the
6 individual's demonstrated level of educational or skill
7 achievement; or
8 (3) is employed and is eligible for assistance under
9 Section 6 of the Energy Assistance Act.
10 "Unemployed individual" means an individual who is without
11a job and who wants and is available for work. The
12determination of whether an individual is without a job, for
13purposes of this definition, shall be made in accordance with
14the criteria used by the Bureau of Labor Statistics of the
15United States Department of Labor or as required by the
16relevant funding source and set forth in the Notice of Funding
17Opportunities.
18 "Wage reimbursement" means the amount awarded by the
19Department to a Navigator to compensate the employer for the
20employer's costs of employment for each participant hired by
21the employer.
22 Section 15. Powers of the Department. The Department is
23granted and shall have all the powers necessary or convenient
24to carry out the purposes and provisions of this Act,
25including, but not limited to, the power and authority to:

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

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1 (8) require Navigators, upon written request, to issue
2 any necessary authorization to the appropriate federal,
3 State, or local authority or any other person for the
4 release to the Department of information requested by the
5 Department, including, but not limited to, financial
6 reports, returns, or records relating to the Navigators or
7 to the amount of the wage reimbursement allowable under
8 this Act.
9 Section 20. SAFER Communities Wage Reimbursement Pilot
10Program.
11 (a) The Department shall, subject to appropriation, create
12a program to award grants to Navigators for the purposes
13described in this Section.
14 (b) The Department shall award grants to Navigators for
15the following purposes:
16 (1) providing wage reimbursements to employers that
17 hire participants, as provided in Sections 25 and 30;
18 (2) collaborating with employers to support
19 participants who require on-the-job experience to gain job
20 skills, develop a work history, and begin a network for
21 entering the workforce; and
22 (3) providing barrier reduction funding, including,
23 but not limited to, transportation, housing, childcare,
24 and technology services to participants, as needed.
25 (c) The Department may also award grants for the following

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1purposes to Navigators who are eligible to receive grants
2under subsection (b):
3 (1) establishing retention coaching programs that
4 support worker retention by continuing the services
5 described in subparagraph (3) of subsection (b) for one
6 year after job placement, as needed; and
7 (2) supporting participants who aspire to participate
8 in additional workforce development, training, and
9 technical skills programs and opportunities.
10 (d) Navigators shall use the Department's system of record
11to maintain a record of all participants who are eligible for
12the Program. Navigators shall verify each applicant's
13employment and conviction history to determine whether the
14applicant is eligible for participation in the program.
15Navigators shall notify applicants by email of the denial or
16approval of the application. Navigators may also send a
17physical copy of the denial or approval by first-class mail if
18the application indicates that email is not the applicant's
19preferred method of communication. Each denial letter issued
20under this subsection shall state the reason why the
21individual's application is being denied. Navigators shall
22submit to the Department a record of each applicant's denial
23or approval. Navigators shall email qualified participants an
24electronic certification of eligibility with details about the
25wage subsidy program, which the participant may present to a
26prospective employer. The Navigator may also send a physical

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1copy of the certification by first class mail if the
2application indicates that email is not the applicant's
3preferred method of communication.
4 Section 25. Eligibility and reporting.
5 (a) The Navigator shall enter into an agreement with the
6employer of an eligible participant to establish the general
7terms and conditions of wage reimbursements with respect to
8that participant. At a minimum, the agreement shall include:
9 (1) the participant's name, social security number or
10 individual taxpayer identification number, job
11 description, and salary;
12 (2) the physical address of the workplace at which the
13 participant is based;
14 (3) the negotiated reimbursement rate for the wage the
15 Navigator would receive under this Act with respect to the
16 participant listed on the application; and
17 (4) any other information required by the Department.
18 (b) Wage reimbursements provided to employers must not
19directly or indirectly assist, promote, or deter union
20organizing.
21 (c) Navigators shall submit monthly reports in the form
22and manner required by the Department that include the
23employment status of each participant.
24 Section 30. Wage reimbursement.

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1 (a) An employer may enter into a wage reimbursement
2agreement under Section 25 for each participant who is
3employed by the employer as a full-time employee for a full
4calendar month as of the date the agreement is entered into,
5provided that the following conditions are met:
6 (1) the participant shall be provided benefits and
7 working conditions at the same level and to the same
8 extent as other employees who have been employed by the
9 employer for a similar length of time and do the same type
10 of work as the participant;
11 (2) starting from the date of hire of the participant,
12 the employer shall maintain or increase its total number
13 of full-time Illinois employees; and
14 (3) the employer shall pay the participant a wage
15 that, when annualized, meets or exceeds the average wage
16 paid by the employer to other employees who have been
17 employed by the employer for a similar length of time and
18 do the same type of work as the participant.
19 (b) The wage reimbursement received by an employer shall
20be 50% of the wages earned by each participant as a result of
21his or her employment with the employer. However, if the
22participant's primary job site is located in a
23disproportionately impacted area, then the wage reimbursement
24shall be 75% of the wages earned by that participant. No
25employer shall receive a wage reimbursement for a particular
26participant for more than 12 consecutive months.

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1 Section 35. Data collection and reporting. For years in
2which it receives an appropriation for purposes of this Act,
3the Department shall make publicly available an annual report
4on the use, outcomes, and impact of the program described in
5this Act, including, but not limited to, the total number of
6participants hired under the program, disaggregated by
7categories of race, age, gender, hourly wage, length of job
8retention, recidivism status, job location by region, and
9employment industry.
10 Section 40. Awareness promotion of the pilot program. The
11Department of Corrections shall implement procedures to
12promote awareness and participation in the program among
13eligible persons, including, but not limited to, the
14following:
15 (1) The Department of Corrections shall ensure that
16 the wardens or superintendents of all correctional
17 institutions and facilities visibly post information about
18 the availability and registration process for the program
19 in all common areas of their respective institutions, and
20 shall broadcast the same via in-house institutional
21 information television channels. The Department of
22 Corrections shall ensure that updated information is
23 distributed in a timely, visible, and accessible manner.
24 (2) The Department of Corrections shall ensure that

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1 each incarcerated individual, upon release as a committed
2 person on parole, mandatory supervised release, aftercare
3 release, final discharge, or pardon, shall be provided
4 with written information about the availability and
5 registration process for the program.
6 (3) The Department of Corrections shall provide to
7 each parole office in this State information about the
8 availability and application process for the program,
9 which shall be posted in a visible and accessible manner.
10 (4) The Department of Corrections shall distribute
11 written information about the availability and application
12 process for the program to the Community Support Advisory
13 Councils of the Department of Corrections for use in
14 re-entry programs across this State.
15 Section 45. Funding. Implementation of this Act is subject
16to appropriation.
17 Section 50. Rulemaking authority. Upon an appropriation
18for the Program, the Department may adopt rules that are
19necessary to implement and administer this Act.
20 Section 55. Repeal. This Act is repealed on December 31,
212029.
22 Section 895. The Illinois Administrative Procedure Act is

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1amended by adding Section 5-45.35 as follows:
2 (5 ILCS 100/5-45.35 new)
3 Sec. 5-45.35. Emergency rulemaking; Securing All Futures
4through Equitable Reinvestment (SAFER) Communities Act. To
5provide for the expeditious and timely implementation of the
6Securing All Futures through Equitable Reinvestment (SAFER)
7Communities Act, emergency rules implementing that Act may be
8adopted in accordance with Section 5-45 by the Department of
9Commerce and Economic Opportunity. The adoption of emergency
10rules authorized by Section 5-45 and this Section is deemed to
11be necessary for the public interest, safety, and welfare.
12 This Section is repealed one year after the effective date
13of this amendatory Act of the 103rd General Assembly.
14 Section 900. The Illinois Income Tax Act is amended by
15changing Section 216 and by adding Section 216.1 as follows:
16 (35 ILCS 5/216)
17 Sec. 216. Credit for wages paid to ex-felons.
18 (a) For each taxable year beginning on or after January 1,
192007 and before January 1, 2024, each taxpayer is entitled to a
20credit against the tax imposed by subsections (a) and (b) of
21Section 201 of this Act in an amount equal to 5% of qualified
22wages paid by the taxpayer during the taxable year to one or
23more Illinois residents who are qualified ex-offenders. The

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1total credit allowed to a taxpayer with respect to each
2qualified ex-offender may not exceed $1,500 for all taxable
3years. For partners, shareholders of Subchapter S
4corporations, and owners of limited liability companies, if
5the liability company is treated as a partnership for purposes
6of federal and State income taxation, there shall be allowed a
7credit under this Section to be determined in accordance with
8the determination of income and distributive share of income
9under Sections 702 and 704 and Subchapter S of the Internal
10Revenue Code.
11 (b) For purposes of this Section, "qualified wages":
12 (1) includes only wages that are subject to federal
13 unemployment tax under Section 3306 of the Internal
14 Revenue Code, without regard to any dollar limitation
15 contained in that Section;
16 (2) does not include any amounts paid or incurred by
17 an employer for any period to any qualified ex-offender
18 for whom the employer receives federally funded payments
19 for on-the-job training of that qualified ex-offender for
20 that period; and
21 (3) includes only wages attributable to service
22 rendered during the one-year period beginning with the day
23 the qualified ex-offender begins work for the employer.
24 If the taxpayer has received any payment from a program
25established under Section 482(e)(1) of the federal Social
26Security Act with respect to a qualified ex-offender, then,

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1for purposes of calculating the credit under this Section, the
2amount of the qualified wages paid to that qualified
3ex-offender must be reduced by the amount of the payment.
4 (c) For purposes of this Section, "qualified ex-offender"
5means any person who:
6 (1) has been convicted of a crime in this State or of
7 an offense in any other jurisdiction, not including any
8 offense or attempted offense that would subject a person
9 to registration under the Sex Offender Registration Act;
10 (2) was sentenced to a period of incarceration in an
11 Illinois adult correctional center; and
12 (3) was hired by the taxpayer within 3 years after
13 being released from an Illinois adult correctional center.
14 (d) In no event shall a credit under this Section reduce
15the taxpayer's liability to less than zero. If the amount of
16the credit exceeds the tax liability for the year, the excess
17may be carried forward and applied to the tax liability of the
185 taxable years following the excess credit year. The tax
19credit shall be applied to the earliest year for which there is
20a tax liability. If there are credits for more than one year
21that are available to offset a liability, the earlier credit
22shall be applied first.
23 (e) This Section is exempt from the provisions of Section
24250.
25(Source: P.A. 98-165, eff. 8-5-13.)

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1 (35 ILCS 5/216.1 new)
2 Sec. 216.1. Credit for wages paid to ex-offenders.
3 (a) In this Section:
4 "Qualified ex-offender" means any person who was hired by
5the taxpayer within 10 years after being released from a
6correctional center in the State.
7 "Qualified wages" includes only wages that are
8attributable to service rendered during the one-year period
9beginning with the day the qualified ex-offender begins work
10for the employer and are subject to federal unemployment tax
11under Section 3306 of the Internal Revenue Code, without
12regard to any dollar limitation contained in that Section.
13"Qualified wages" does not include any amounts paid or
14incurred by an employer for any period to any qualified
15ex-offender for whom the employer receives State-funded or
16federally funded payments for on-the-job training of that
17qualified ex-offender for that period. If the taxpayer has
18received any payment from a program established under Section
19482(e)(1) of the federal Social Security Act with respect to a
20qualified ex-offender, then the amount of the qualified wages
21paid to that qualified ex-offender must be reduced, for
22purposes of calculating the credit under this Section, by the
23amount of the payment.
24 (b) For each taxable year beginning on or after January 1,
252024, each taxpayer is entitled to a credit against the tax
26imposed by subsections (a) and (b) of Section 201 of this Act

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1in an amount equal to 10% of the qualified wages paid by the
2taxpayer during the taxable year to one or more Illinois
3residents who are qualified ex-offenders. For taxpayers
4employing 100 or more employees on the last day of the taxable
5year, the total credit allowed with respect to each qualified
6ex-offender may not exceed $1,500 for all taxable years. For
7taxpayers employing fewer than 100 employees on the last day
8of the taxable year, the total credit allowed with respect to
9each qualified ex-offender may not exceed $5,000 for all
10taxable years.
11 (c) For partners and shareholders of Subchapter S
12corporations, there shall be allowed a credit under this
13Section to be determined in accordance with the determination
14of income and distributive share of income under Sections 702
15and 704 and Subchapter S of the Internal Revenue Code.
16 (d) In no event shall a credit under this Section reduce
17the taxpayer's liability to less than zero. If the amount of
18the credit exceeds the tax liability for the year, the excess
19may be carried forward and applied to the tax liability of the
205 taxable years following the excess credit year. The tax
21credit shall be applied to the earliest year for which there is
22a tax liability. If there are credits for more than one year
23that are available to offset a liability, the earlier credit
24shall be applied first.
25 (e) This Section is exempt from the provisions of Section
26250.

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1 Section 999. Effective date. This Act takes effect upon
2becoming law.