Section 680.10  Purpose

 

It is in the public policy interest of the State to ensure that all Illinois residents have access to State capital projects and careers in the construction industry and building trades, including those who have been historically underrepresented in those trades.  To ensure that those interests are met, the General Assembly has created the Illinois Works Preapprenticeship Program and the Illinois Works Apprenticeship Initiative.  [30 ILCS 559/20-5]

 

Section 680.20  Definitions

 

The following definitions are applicable to this Part.

 

"Act" means the Illinois Works Jobs Program Act [30 ILCS 559/Art. 20].

 

"Agency" means each officer, board, commission, and agency created by the Constitution, whether in the executive, legislative, or judicial branch of State government, but other than the circuit court; each officer, department, board, commission, agency, institution, authority, university, and body politic and corporate of the State; each administrative unit or corporate outgrowth of the State government that is created by or pursuant to statute, other than units of local government and their officers, school districts, and boards of election commissioners; and each administrative unit or corporate outgrowth of these entities and as may be created by executive order of the Governor.  [5 ILCS 100/1-20]

 

"Applicant" means a person, business, public or private corporation, partnership, individual, union, committee, club, unincorporated association, or other organization or group of individuals, or other legal entity corporation, partnership, limited liability company, or joint venture that applies for a grant or contract from appropriated capital funds to finance, in whole or in part, a public works project.

 

"Apprentice" means a participant in an apprenticeship program approved by and registered with the United States Department of Labor's Bureau of Apprenticeship and Training.  [30 ILCS 559/20-10]

 

"Apprenticeship program" means an apprenticeship and training program approved by and registered with the United States Department of Labor's Bureau of Apprenticeship and Training. [30 ILCS 559/20-10]

 

"Appropriated capital funds " means moneys appropriated by the General Assembly from either a fund holding State of Illinois bonds proceeds or any other fund that receives and holds public funds for use in funding capital programs and projects.  "Appropriated capital funds" are those appropriations designated as capital appropriations in the Governor's Office of Management and Budget document entitled "Enacted Budget – Enacted Appropriations by Line Item", produced for each Fiscal Year and posted on the GOMB website at https://www2.illinois.gov/sites/budget/Pages/BudgetBooks.aspx.

 

"Awarding authority" is the State, an agency of the State, or a grantee or loan recipient of the State that ultimately awards a bid and enters into an agreement for a public works project. This term shall not be construed to denote direct involvement or assent by the Chief Procurement Office.

 

"Base bid" means the value of a bid before any available credits are applied.

 

"Bid credit" means a virtual dollar for a contractor or subcontractor to use toward future bids on contracts with the State for public works projects.  [30 ILCS 559/20-10]

 

"Bid credit certificate" is the certificate issued by the Department to the contractor or subcontractor identifying the total amount of bid credits a contractor or subcontractor may use to bid on a public works project.

 

"Community-based Organization" means a nonprofit organization, including an accredited public college or university, industry associations, chambers of commerce, local workforce areas, community colleges, technical schools and school districts, selected by the Department to participate in the Illinois Works Preapprenticeship Program.  To qualify as a "community-based organization", the organization must demonstrate the following:

 

the ability to effectively serve diverse and underrepresented populations, including by providing employment services to those populations;

 

knowledge of the construction and building trades;

 

the ability to recruit, prescreen, and provide preapprenticeship training to prepare workers for employment in the construction and building trades; and

 

a plan to provide the following:

 

preparatory classes;

 

workplace readiness skills, such as resume preparation and interviewing techniques;

 

strategies for overcoming barriers to entry and completion of an apprenticeship program; and

 

any prerequisites for acceptance into an apprenticeship program.  [30 ILCS 559/20-10]

 

"Construction trades" means any trade or occupation involved in the building, altering, repairing, improving, or demolishing any structure or building, or making improvements of any kind to real property. Construction trades do not include the routine operation, routine repair, or routine maintenance of existing structures, buildings, or real property.

 

"Contractor" means a person, corporation, partnership, limited liability company, or joint venture entering into, or seeking to enter into, a contract to construct a public work, or non-public work, whether the contract is entered directly with an agency or indirectly with a grantee using appropriated capital funds to pay for the contract.  [30 ILCS 559/20-10]

 

"Department" means the Department of Commerce and Economic Opportunity. [30 ILCS 559/20-10]

 

"Estimated Total Project Cost" means a good faith approximation of the costs of an entire project being paid for in whole or in part by appropriated capital funds to construct a public work.  Operational costs are not included in the calculation of estimated total project costs.

 

"GATA" means the Grant Accountability and Transparency Act [30 ILCS 708].

 

"Grant" means a grant award issued under the Illinois Works Jobs Program Act. [30 ILCS 559]

 

"Grantee" means the recipient of a grant award from an agency paid from appropriated capital funds for the purpose of funding a public works project.

 

"Illinois Works Credit Bank" means the electronic system used by the Department to track the bid credits of each contractor and subcontractor participating in the bid credit program.

 

"Intentional failure to comply" or "intentional violation" means an act or omission by a contractor, grantee or loan recipient that violates the Illinois Works Apprenticeship Initiative, for which a reduction or waiver was not granted, and which remains uncured despite receiving notice from the State agency.  Seeking a waiver or a reduction will not be considered evidence of an intentional failure to comply or intentional violation. If a contractor, grantee or loan recipient makes its best efforts to cure an act or omission, then that act or omission will not be considered an intentional violation.

 

"Labor hours" means the total hours for workers who are receiving an hourly wage and who are directly employed for the public works project.  "Labor hours" includes hours performed by workers employed by the contractor and subcontractors on the public works project.  "Labor hours" does not include hours worked by the forepersons, superintendents, owners, and workers who are not subject to prevailing wage requirements.  [30 ILCS 559/2-10]

 

"Lowest effective bid" means the value of the base bid minus available bid credits on the bid credit certificate. The awarding authority shall utilize this value for the purpose of determining which party submitted the lowest bid amount. The use of this value is not intended to supersede or disrupt existing procurement procedures relating to any other selection criteria.

 

"Minorities" means minority persons as defined in the Business Enterprise for Minorities, Women, and Persons with Disabilities Act [30 ILCS 575].  [30 ILCS 559/2-10]

 

"NOFO" or "Notice of Funding Opportunity" means an agency's formally issued announcement of the availability of State, federal or federal pass-through funding through one of its financial assistance programs. A NOFO will provide eligibility and evaluation criteria, funding preferences/priorities, the submission deadline, and information on how to obtain an application for the funding opportunity, among other information.

 

"Non-public works" means any construction project that is paid for without the use of State appropriated capital funds.

 

"North region" means the region comprised of the following counties: Cook, DeKalb, DuPage, Grundy, Kane, Kankakee, Kendall, Lake, McHenry, and Will.

 

"Participant" is an individual enrolled in a Preapprenticeship Program.

 

"Preapprenticeship Program" is a program funded under the Illinois Works Jobs Program Act that has a documented partnership or relationship with employers (including union and non-union contractors) and trade unions, and is designed to prepare individuals to enter and succeed in a registered apprenticeship program.

 

"Project" means the activities established by the agency and set forth in the grant agreement or contract that are funded, in whole or in part, by appropriated State funds.

 

"Public Works" means all projects, contracted or funded by the State or any agency of the State, in whole or in part, from appropriated capital funds (as defined in this Section), that constitute public works under the Prevailing Wage Act [820 ILCS 130].  [30 ILCS 559/2-10]

 

"Qualified apprentice" means an apprentice who:

 

has graduated the Illinois Works Preapprenticeship Program;

 

is actively enrolled in a USDOL-registered apprenticeship program in the construction trades or construction professional services; and

 

is six years or less from the date the person first enrolled in a USDOL-registered apprenticeship program.

 

"Qualified and Responsible" means a contractor or offeror that meets all required evaluation criteria and requirements outlined in the solicitation or invitation for bid documentation disseminated by the awarding agency; and has the capability in all respects to fully performance the contract requirements, and the integrity and reliability that will assure good faith performance.

 

"Region" means either the north region or the south region.

 

"South region" means the region comprised of all Illinois counties not contained in the north region.

 

"State" means the State of Illinois.

 

"Stipend" is a sum of money fixed by the Department and paid to a participant in a preapprenticeship program in accordance with the participant's performance in the program. The stipend is to be used for living expenses while the participant is enrolled in the program.

 

"Subcontractor" means a person, corporation, partnership, limited liability company, or joint venture that has contracted or intends to contract with the contractor to perform all or part of the work to construct a public work or non-public work by a contractor.  [30 ILCS 559/2-10]

 

"Underrepresented Populations" means populations identified by the Department that historically have had barriers to entry or advancement in the workforce.  "Underrepresented populations" includes, but is not limited to, minorities, women, and veterans.  [30 ILCS 559/2-10]

 

(Source:  Amended at 49 Ill. Reg. 7298, effective May 7, 2025)

 

Section 680.30  Apprenticeship Goal

 

a)         The goal of the Illinois Works Apprenticeship Initiative Apprenticeship Goal is that, for projects estimated to cost $500,000 or more, apprentices will perform either 10% of the total labor hours actually worked in each prevailing wage classification or 10% of the estimated labor hours in each prevailing wage classification, whichever is less (the "Apprenticeship Goal").  [30 ILCS 559/20-20(a)(2)]

 

1)         For contracts and grant agreements executed after July 28, 2023, and before January 1, 2024: at least 25% of the Apprenticeship Goal shall be performed by graduates of the Illinois Works Pre-apprenticeship Program, the Illinois Climate Works Pre-apprenticeship program, or the Highway Construction Careers Training Program; [30 ILCS 559/20-20(a)(2)]

 

2)         For contracts and grant agreements executed on or after January 1, 2024: at least 50% of the Apprenticeship Goal shall be performed by graduates of the Illinois Works Pre-apprenticeship program, the Illinois Climate Works Pre-apprenticeship Program, or the Highway Construction Careers Training Program. [30 ILCS 559/20-20(a)(2)]

 

b)         Unless otherwise provided by an agency, the applicant, grantee or contractor shall provide the estimated total project cost.  To establish the estimated total project cost, the applicant, grantee or contractor may provide the following information:

 

1)         Good faith estimates from contractors with supporting documentation, including, but not limited to, contracts, estimates and bids;

 

2)         The funding sources for the project; and

 

3)         Any and all additional information and documents requested by the agency providing the funding through a contract or Grant Agreement.

 

c)         For projects that are estimated to receive $500,000 or more of appropriated capital funds:

 

1)         If the State's contribution to the project amount is 50% or more of the estimated total project cost for the public works project, the Apprenticeship Goal applies to all prevailing wage eligible work performed on the project.

 

2)         If the State's contribution to the project is less than 50% of the estimated total project cost for the public works project, the Apprenticeship Goal applies only to prevailing wage eligible work being funded by appropriated capital funds.

 

d)         For projects that are estimated to receive less than $500,000 of appropriated capital funds, but the estimated total project cost is $500,000 or more:

 

1)         If the estimated total project cost is $500,000 or more and the State contribution of appropriated capital funds represents 50% or more of the total cost, the Apprenticeship Goal applies to all prevailing wage eligible work on the project.

 

2)         If the estimated total project cost is less than 50% funded by the State contribution of appropriated capital funds, the Apprenticeship Goal does not apply.

 

e)         If the estimated total project cost is less than $500,000, the Apprenticeship Goal does not apply.

 

(Source:  Amended at 49 Ill. Reg. 7298, effective May 7, 2025)

 

Section 680.40  Reduction or Waiver of the Apprenticeship Goal

 

a)         Before or during the term of a contract or Grant Agreement, the Department may reduce or waive the Apprenticeship Goal, as described in subsection (d).

 

1)         To obtain a reduction or waiver in the Apprenticeship Goal, the applicant, grantee or contractor shall submit a waiver request form to the Department and the agency administering the contract or grant.  Requests for a reduction or waiver of the Apprenticeship Goal shall be submitted to the Department and the agency administering the contract or grant as soon as practicable after discovering the existence of one or more factors set forth in subsection (b).  The request form will be available on the Department's website.

 

2)         Upon receipt of the waiver request, the Department and/or the Agency may request additional information from the applicant, grantee or contractor.

 

b)         Prior to the Department granting a request for a reduction or waiver, and within 15 days after the Department's receipt of a request for a reduction or waiver, the Department shall determine, in its discretion, whether to hold a public hearing on the request.  In determining whether to hold a public hearing, the Department may consider factors, including, but not limited to:

 

1)         the scale of the project;

 

2)         whether the applicant, grantee, contractor or subcontractor seeking the reduction or waiver has previously requested reductions or waivers on other projects; and

 

3)         the value of, and frequency of, grant awards and contracts previously received from the State by the applicant, grantee, contractor or subcontractor.

 

c)         If the Department decides to hold a public hearing, it must publish a hearing notice as soon as is practicable following its decision and hold the hearing at least 15 days, but no more than 30 days, after receipt of the reduction or waiver request.

 

d)         The Department will grant a reduction or waiver upon a determination that:

 

1)         the applicant, grantee, contractor or subcontractor has demonstrated that insufficient apprentices are available;

 

2)         the reasonable and necessary requirements of the contract or grant do not allow the goal to be met;

 

3)         there is a disproportionately high ratio of material costs to labor hours that makes meeting the goal infeasible;

 

4)         apprentice labor hour goals conflict with existing requirements, including federal requirements, in connection with the public work; or

 

5)         the contractor or subcontractor has demonstrated that insufficient graduates of the Illinois Works Pre-apprenticeship Program, the Illinois Climate Work Pre-apprenticeship Program, or the Highway Construction Careers Training Program are available to meet the requirements of Section 680.30(c).  Examples of establishing insufficient availability of graduates include, but are not limited to, providing a letter from a USDOL registered apprenticeship program that indicates that the program does not have graduates of the Illinois Works Preapprenticeship Program, or that those graduates are not available; a letter from the Department stating that there are no graduates available; or a letter from the contractor stating that even if graduates are available, they are not able to sponsor the graduates into a USDOL registered apprenticeship program for contractual reasons and provide supporting documentation.

 

e)         The Department may also consult with the Business Enterprise Council under the Business Enterprise for Minorities, Women, and Persons with Disabilities Act and the Chief Procurement Officer of the agency administering the public works contract.  [30 ILCS 559/20-20(b)]

 

f)         The 10% apprenticeship goal does not apply to contracts or Grant Agreements in existence on the effective date of the Act (June 28, 2019). [30 ILCS 559/20-20(f)]

 

g)         If the Department does not grant or deny a waiver or reduction request within 45 days after the Department's receipt of a complete waiver or reduction request, then the reduction or waiver request is automatically granted.

 

h)         When the Department denies a request for a reduction or waiver, it will explain its rationale in writing to the applicant, grantee, contractor, or subcontractor and to the awarding agency.

 

(Source:  Amended at 49 Ill. Reg. 7298, effective May 7, 2025)

 

Section 680.50  Certification of Compliance

 

a)         Upon completion of the work set forth in the contract or Grant Agreement, grantees, contractors and subcontractors must submit a certification to the Department and the agency that is administering either the contract or the grant agreement, demonstrating that the grantee, contractor or subcontractor has:

 

1)         met the Apprenticeship Goal;

 

2)         received a reduction or waiver of the Apprenticeship Goal pursuant to Section 20-20(b) of the Act and Section 680.40 of this Part; or

 

3)         submitted but not been granted or denied a request for a waiver or reduction. [30 ILCS 559/20-20(c)]

 

b)         Upon completion of all of the work for the project, and not just the work set forth in the contract or Grant Agreement, grantees, contractors and subcontractors must submit a certification to the Department and the agency that is administering either the contract or the Grant Agreement, demonstrating that the grantee, contractor or subcontractor has:

 

1)         met the 10% apprenticeship goal;

 

2)         submitted but not been granted or denied a request for a waiver or reduction;

 

3)         received a reduction or waiver of the 10% apprenticeship goal pursuant to Section 20-20(b) of the Act and Section 680.40 of this Part; or

 

4)         not complied with the labor hours in Section 680.30(c) and did not receive a reduction or waiver pursuant to Section 680.40(d).

 

c)         The certification form, which shall be made available on the Department's website, shall include:

 

1)         The contract or grant number;

 

2)         The estimated total project cost;

 

3)         The final total cost of the project, if known;

 

4)         The total labor hours actually worked in each prevailing wage classification on the job, or the estimated labor hours in each prevailing wage classification, whichever is applicable;

 

5)         The actual labor hours worked by apprentices in each prevailing wage classification; and

 

6)         Whether the contractor received a reduction or waiver of the 10% apprenticeship goal.

 

d)         Grantee, contractor or subcontractor shall submit a certification upon completion of the work set forth in the contract or Grant Agreement and upon completion of the project, if applicable.  Depending on the estimated total project cost, a grantee, contractor or subcontractor may be required to submit additional reports after the completion of the contract or grant.

 

e)         The Department will collect summary data from each certification form and publish the data on its website quarterly. The summary data will include:

 

1)         The project's county or counties;

 

2)         The number of individuals that have graduated from an Illinois Works preapprenticeship program located within the county;

 

3)         The five Illinois Works Preapprenticeship Program locations closest to project and the distance from each one to the project;

 

4)         Whether the project met the apprenticeship goal;

 

5)         Whether the contractor or subcontractor submitted a request for a waiver or reduction of the apprenticeship goal;

 

6)         Whether the project was granted a waiver or reduction of the apprenticeship goal;

 

7)         If the contractor requested but was not granted a waiver or reduction, why the waiver or reduction request was denied; and

 

8)         If the project was granted a waiver or reduction, why it was granted.

 

(Source:  Amended at 49 Ill. Reg. 7298, effective May 7, 2025)

 

Section 680.60  Failure to Comply

 

a)         Material Breach Due to Misrepresentation

 

1)         When the agency enters into a contract with a contractor, it shall be deemed to be a material breach of the contract and to entitle the agency to declare a default, terminate the contract, and exercise those remedies provided for in the contract, at law, or in equity if the contractor or subcontractor submits false or misleading information.  [30 ILCS 559/20-20(c)]

 

2)         When the agency enters into a Grant Agreement with a grantee, it shall be deemed to be a material breach of the Grant Agreement and to entitle the agency to declare a default, terminate the Grant Agreement, and exercise those remedies provided for in the Grant Agreement, at law, or in equity if the grantee submits false or misleading information.  [30 ILCS 559/20-20(c)]

 

b)         Intentional Failure to Comply; Permissible Penalties

 

 

1)         Intentional failure to comply with the Illinois Works Apprenticeship Initiative may result in the State agency that contracted or funded the public works project:

 

A)        terminating the contract or agreement involved;

 

B)        prohibiting the party that contracted with the State from participating in public contracts or agreements for a period not to exceed 3 years;

 

C)        seeking a penalty of up to 25% of the contract or agreement as a result of the violation; or

 

D)        any combination of items. [30 ILCS 559/20-20(c)]

 

2)         State agencies shall report to the Department all projects that did not comply with the Illinois Works Apprenticeship Initiative and any action taken against the noncompliant party and shall provide an action plan to address the reported instance of noncompliance with the Illinois Works Apprenticeship Initiative [30 ILCS 559/20-20(c)].

 

(Source:  Amended at 49 Ill. Reg. 7298, effective May 7, 2025)

 

Section 680.70  Compliance with Federal Apprenticeship Requirements

 

a)         Notwithstanding any provisions to the contrary in the Act, any State agency that administers a construction program for which federal law or regulations establish standards and procedures for the utilization of apprentices may implement the Illinois Works Apprenticeship Initiative using the federal standards and procedures for the establishment of goals and utilization procedures for the State-funded, as well as the federally assisted, portions of the program. In such cases, these goals shall not exceed those established pursuant to the relevant federal statutes or regulations.  [30 ILCS 559/20-20(g)]

 

b)         To apply the federal apprenticeship standards and procedures to a program, the agency shall submit a request to the Department on a form that will be available on the Department's website. 

 

(Source:  Amended at 49 Ill. Reg. 7298, effective May 7, 2025)

 

Section 680.80  Agency Responsibilities

 

Each agency is responsible for the following regarding compliance with the Act for all contracts and grants it administers or plans to administer:

 

a)         Reviewing the applicable federal and/or State statutes and administrative rules to determine whether the Act applies to the funding source of the grant and/or contract.

 

b)         Submitting a request for a program to apply federal apprenticeship standards and procedures to a program as set forth in Section 680.70(a).

 

c)         Gathering and reviewing information from applicants, contractors and grantees for all contracts and grants to determine whether the Act applies to each contract or grant.

 

d)         Including language in applications, bid documents, notices of funding opportunities, contracts and Grant Agreements to notify applicants, contractors and grantees of their obligations to comply with the Act and to ensure compliance with the Act.

 

e)         Collecting reports and supporting documents from contractors and grantees both during the term of the contract or grant and after the term ends, if applicable, to track compliance with the Act.

 

f)         Requiring completion of all forms requested by the Department to track compliance with the Act, and keeping such records as required by the Department and the State Records Act  [5 ILCS 160].

 

g)         Completing an initial review of all requests for waivers or a reduction in the 10% apprenticeship goal and transmitting the paperwork to the Department with a recommendation regarding the waiver or reduction.

 

h)         Monitoring the contractors and grantees and addressing noncompliance with the Act.

 

Section 680.90  Purpose

 

The goal of the Illinois Works Preapprenticeship Program is to create a network of community-based organizations throughout the State that will recruit, prescreen, and provide preapprenticeship skills training, for which participants may attend free of charge and receive a stipend, to create a qualified, diverse pipeline of workers who are prepared for careers in the construction and building trades. Upon completion of the Illinois Works Preapprenticeship Program, the candidates will be skilled and work-ready. [30 ILCS 559/20-15(a)]

 

(Source:  Added at 46 Ill. Reg. 17668, effective October 18, 2022)

 

Section 680.100  Eligible Grant Applicants

 

Eligible grant applicants must be Community-Based Organizations. To be eligible for a grant award, an applicant shall have an active GATA registration and be qualified on the GATA Grantee Portal (https://grants.illinois.gov/portal/) at the time the application is submitted.

 

(Source:  Added at 46 Ill. Reg. 17668, effective October 18, 2022)

 

Section 680.110  Administrative Requirements

 

Grant opportunities and awards will be administered in a manner that complies with all State requirements applicable to each funding opportunity, including, but not limited to, GATA and all applicable State laws. Grant applicants and grant recipients shall review all application materials and grant award documents which will include the specific applicable requirements for the grant opportunity.  The Department reserves the right to suspend or terminate a grant agreement or withhold any future year funding for non-compliance with these provisions.

 

a)         Application Process

 

1)         The Department will post one or more NOFO on the GATA Grantee Portal seeking applications contingent upon available funds. Applicants shall submit their application materials by the deadlines set forth by DCEO in the NOFO which will be at least 30 days after posting the NOFO.

 

2)         The applicants will be required to submit an application package, which will include the following:

 

A)        a description of the how the applicant will design, develop, and implement a high-quality preapprenticeship program that will increase apprenticeship opportunities for underrepresented populations;

 

B)        a description of the plan to provide stipends;

 

C)        a description of the plan to provide wrap-around services;

 

D)        a description of the plan to provide student support services;

 

E)        a narrative description of how the applicant will articulate their understanding of how race, ethnicity and gender may impact individuals' access to and experience within the context of construction and building trade apprenticeships;

 

F)         a description of the plan for marketing, outreach, wraparound supports, and accommodations;

 

G)        a description of how the applicant plans to coordinate with local workforce areas and local and regional apprenticeship navigators and intermediaries focused on construction and building trades, union groups, community colleges, employers, employer associations, community-based organizations and secondary schools;

 

H)        A description of the outcome measures, including but not limited to:

 

i)          a description of the applicant's recruitment, screening, and training efforts;

 

ii)         the number of individuals who apply to, participate in, and complete the applicant's program, broken down by race, gender, age and veteran status, and

 

iii)        the number of individuals referenced in subsection (a)(2)(H)(ii) who are initially accepted and placed into apprenticeship programs in the construction and building trades;

 

I)         a description of how applicant will coordinate education and learning, necessary support and retention services, coaching from other partner institutions;

 

J)         a proposed curriculum;

 

K)        a description of proposed opportunities for preapprentices to do construction work at job sites while taking instruction or immediately after completing instruction or a description of alternative options if on-site instruction is not feasible;

 

L)        a description of the plan for applicants to assist students in transitioning to registered apprenticeship programs, including connecting them to employers and unions;

 

M)       a description of the plan to refer program applicants who do not have the minimum program requirements to educational services in their communities, such as free literacy, GED, ESL classes, among others; and

 

N)        a description of the plan to support and track participants who do not immediately apply to enroll in a DOL-registered apprenticeship program.

 

b)         Grant Award Selection

 

1)         Grants will be awarded by DCEO to grantees following a merit review by DCEO pursuant to GATA requirements (44 Ill. Adm. Code 7000.350).  In evaluating applications, the Department will consider all requirements as set forth in the NOFO, including some or all of the following criteria and any additional criteria set forth in the NOFO:

 

A)        The application indicates the project will serve individuals who are within underrepresented populations;

 

B)        The applicant's grant performance history, including meeting the goals of any previous grants and the level of success in achieving employment, wage, and retention goals, if applicable;

 

C)        The experience of the applicant in serving individuals who are in the underrepresented populations of the outcomes achieved with past programs;

 

D)        The level of participation of local employers or industry associations in the training partnership and the proposed work plan;

 

E)        The amount of matching and/or leveraged funds provided (either cash or in-kind);

 

F)         The likelihood that training will result in the placement of individuals who are in the underrepresented population into the specific occupations within the target industries and the average wage at placement;

 

G)        The credentials, licenses or certifications training participants will earn;

 

H)        The career pathways facilitating long-term advancement with the employer or within the industry sector a participant will gain.

 

I)         The qualifications of personnel assigned to the proposed project; and

 

J)         The quality of the proposed curricula and related materials.

 

2)         Applicants shall work with local partners, including, but not limited to, local employers, unions, and/or industry associations to design programs with maximum benefits to individuals in the underrepresented populations.

 

c)         Grant Disbursements

Disbursement of Grant funds from the Department will be made in accordance with a schedule included in the grant agreement. The Department may disburse funds based on the outcomes outlined in the grant agreement.

 

d)         Grant Performance, Monitoring and Reporting Requirements

Grant recipient shall comply with all GATA and Department requirements for Grant performance, administration, monitoring and reporting, including monitoring any subrecipients.

 

e)         Grant Extensions

Contingent upon the availability of funds and consistent with GATA as applicable, the Department may negotiate Grant extensions and add funds for grant projects that were originally competitively procured and performed successfully. 

 

f)         Records Retention

A grant recipient shall maintain, for the period of time set forth in the GATA rules (44 Ill. Adm. Code 430(a), (b)), adequate books, all financial records and supporting documents, statistical records, and all other records pertinent to the Program. If any litigation, claim or audit is started before the expiration of the retention period, the records must be retained until all litigation, claims or audit exceptions involving the records have been resolved and final action taken. Grant recipients shall be responsible for ensuring that contractors and subrecipients comply with the retention requirements.

 

(Source:  Added at 46 Ill. Reg. 17668, effective October 18, 2022)

 

Section 680.120  Allowable Costs

 

Grant expenditures must comply with GATA and be reasonable and necessary. Specific allowable grant costs will include one or more of the following:

 

a)         expenses to design training curricula and related materials;

 

b)         expenses to provide industry linked skill training and work-based learning to individuals in the underrepresented populations (e.g., instructor costs, curriculum materials);

 

c)         expenses for the ongoing evaluation and refinement of the curricula and related materials;

 

d)         expenses for the design and implementation of a needs assessment to determine the education and training needs of the underrepresented populations relative to the skill needs of local industries;

 

e)         expenses related to wrap-around costs;

 

f)         expenses related to student/participant support services, such a career counseling, life coaching, and tutoring;

 

g)         stipends;

 

h)         expenses for technical assistance as set forth in the applicable NOFO;

 

i)          expenses incurred to meet grant administration requirements;

 

j)          expenses related to securing participants industry recognized certifications;

 

k)         expenses related to professional development and certifications for staff and instructors; or

 

l)          any other costs determined to be reasonable and necessary to carry out the grant program activities as permitted by GATA, the applicable NOFO, and approved by the Department.

 

(Source:  Added at 46 Ill. Reg. 17668, effective October 18, 2022)

 

Section 680.130  Reporting

 

Each community-based organization that receives funding from the Illinois Works Fund shall provide an annual report to the Illinois Works Review Panel by April 1 of each calendar year. The annual report shall include the following information [30 ILCS 559/20-15(c)]:

 

a)         a description of the community-based organization's recruitment, screening, and training efforts;

 

b)         the number of individuals who apply to, participate in, and complete the community-based organization's program, broken down by race, gender, age, and veteran status; and

 

c)         the number of the individuals referenced in subsection (b) who are initially accepted and placed into apprenticeship programs in the construction and building trades.

 

(Source:  Added at 46 Ill. Reg. 17668, effective October 18, 2022)

 

Section 680.200  Purpose

 

a)         The Department shall create and administer the Illinois Works Bid Credit Program that shall provide economic incentives, through bid credits, to encourage contractors and subcontractors to provide contracting and employment opportunities to historically underrepresented populations in the construction industry. [30 ILCS 559/20-15(d)]

 

b)         The Illinois Works Bid Credit Program shall allow contractors and subcontractors to earn bid credits for use toward future bids for public works projects contracted or funded by the State or an agency of the State in order to increase the chances that the contractor and the subcontractors will be selected.

 

(Source:  Added at 49 Ill. Reg. 7298, effective May 7, 2025)

 

Section 680.210  Eligibility

 

a)         Contractors and subcontractors may participate in the Illinois Works Bid Credit Program by registering with the Department using a form provided by the Department.

 

b)         A contractor or subcontractor who has been awarded bid credits under any other State program for employing apprentices who have completed the Illinois Works Preapprenticeship Program is not eligible to receive bid credits under the Illinois Works Bid Credit Program relating to the same contract. [30 ILCS 559/20-15(d)]

 

(Source:  Added at 49 Ill. Reg. 7298, effective May 7, 2025)

 

Section 680.220  Earning Bid Credits

 

a)         Contractors or subcontractors may be eligible to earn bid credits by employing qualified apprentices on public works and non-public works projects in Illinois.

 

b)         By January 30 of each calendar year, the Department shall post on its website and the mean statewide prevailing wage for each construction trade.

 

c)         For each hour a qualified apprentice works, the qualified apprentice earns $0.50 of bid credits per dollar of the mean statewide prevailing wage of the qualified apprentice's trade.

 

d)         Contractors and subcontractors who wish to participate in the Bid Credit Program who employ a qualified apprentice shall submit a Bid Credit Apprentice Report to the Department.

 

1)         A Bid Credit Apprentice Report shall be submitted to the Department by the 15^th of each month for work that was performed by a qualified apprentice.

 

2)         The Bid Credit Apprentice Report will record the county of the program the apprentice graduated from and the county in which the apprentice performed the creditable work. The Department will collect this data and present it on its website quarterly.

 

3)         If the contractor or subcontractor employed the qualified apprentice on a public works project, the contractor or subcontractor shall file the certified payroll for the qualified apprentice for whom the credit is requested with the Illinois Department of Labor.

 

4)         If the contractor or subcontractor employed the qualified apprentice on a non-public works project, the contractor or subcontractor shall provide the Department with certified payroll for the qualified apprentice for whom credit is requested.

 

e)         After processing the Bid Credit Apprentice Report, the Department shall notify the contractor or subcontractor of the total number of bid credits earned by the contractor or subcontractor with respect to the Bid Credit Apprentice Report, the region in which the bid credits were earned, the date in which those bid credits are deemed earned, and when the bid credits expire. The Department shall track all bid credits in the Illinois Works Credit Bank.

 

f)         For work performed by qualified apprentices prior to May 1, 2025, contractors and subcontractors shall submit a Bid Credit Apprentice Report by August 1, 2025.  For work performed by qualified apprentices on or after May 1, 2025, the Department will process bid credit requests for work performed no more than 90 calendar days prior to submittal of the Bid Credit Apprentice Report, absent extenuating circumstances.

 

g)         The Department shall publish on its website a registry of active Bid Credit Program contractors and subcontractors and the amount of available bid credits.

 

h)         Bid credits will expire 10 years after they are deposited into the contractor's Bid Credit account. Expired bid credits will be debited from the contractor's or subcontractor's account.

 

(Source:  Added at 49 Ill. Reg. 7298, effective May 7, 2025)

 

Section 680.230  Using Bid Credits

 

a)         Requesting Bid Credits for Use in a Bid

 

1)         Contractors and subcontractors may request a Bid Credit Certificate from the Department to be used for a bid on a specific project. The Bid Credit Certificate will identify the amount of available bid credits that a contractor or subcontractor elects to use for the project.  Prior to July 1, 2027, the bid credit certificate will only include credits earned in the project's region.

 

2)         The Bid Credit Certificate may only be used in connection with the bid for the specific project for which it is was requested.

 

3)         The bid credits requested by the contractor or subcontractor for the Bid Credit Certificate will be sequestered in the contractor or subcontractor's account and cannot be used for more than one bid at a time bid.

 

b)         Applying the Bid Credits

 

1)         The awarding authority for public works projects shall include language in the Invitation for Bid specifically advising that contractors and their subcontractors may use Bid Credits earned from the Illinois Works Jobs Program Act, including the maximum amount of bid credits that can be used for the project as set forth in subsection (d).

 

2)         Contractors shall attach all Bid Credit Certificates to their bid for the public works project, or as otherwise directed in the Invitation for Bid issued by the awarding authority.

 

3)         Bid credits are used to lower the base bid of a contractor to outbid the lowest qualified and responsible bidder who did not use bid credits by at least $1. The awarding authority will only apply the amount of bid credits necessary for the contractor to outbid the lowest qualified and responsible bidder by at least $1.

 

4)         The contractor with the lowest effective bid will have the opportunity to accept the contract at the bid amount that was submitted by the lowest qualified and responsible bidder who did not use bid credits.  For example, Contractor A submits a bid for $1,000,000.  Contractor B submits a bid for $1,050,000, but also uses $60,000 Bid Credit Certificate.  Contractor B's base bid is lowered to $990,000, and would then have the opportunity to accept the contract at the base bid submitted by Contractor A ($1,000,000).

 

5)         If the awarding authority receives multiple bids from contractors who submit Bid Credit Certificates, the contractor with the lowest effective bid will be selected as the prevailing bidder, and will have the opportunity to accept the contract at the lowest base bid amount.

 

6)         If the awarding authority determines that two bidders have the same adjusted bid value, all pre-existing selection criteria shall apply to select the prevailing bidder. No preference shall be afforded to the bidding party which submitted the most bid credits.

 

7)         The use of bid credits shall not be treated as a procurement preference pursuant to the Illinois Procurement Code [30 ILCS 500/45-5], and unless otherwise provided in the Invitation for Bid, all applicable procurement preferences shall apply.

 

c)         Combining Bid Credit Certificates

 

1)         Multiple Bid Credit Certificates may be combined in a bid for a specific project.

 

2)         A contractor who combines its Bid Credit Certificate with that of a subcontractor must use at least $5,000 of its own bid credits.

 

3)         In the event the contractor accepts the contract from the awarding authority at a value below that contractor's base bid, the difference between the contractor's base bid and the price it accepts the contract at should be distributed proportionally among all contractors and subcontractors that are part of the bid. The proportion of the difference that is applied to each contractor should not be more than the proportion of their share of the base bid. For example, prime contractor submits a base bid of $1,000,000.  That bid is comprised of subcontractor A's bid of $200,000, subcontractor B's bid of $200,000, and subcontractor C's bid of $100,000.  Prime contractor used a Bid Credit Certificate of $100,000, which consisted of prime contractor's $40,000 bid credits, subcontractor A's $30,000 bid credits, and subcontractor B's $30,000 bid credits.  If prime contractor accepts the contract at $900,000, then the prime contractor should receive $450,000, subcontractor A should receive $180,000, and subcontractor C should receive $90,000 of the overall contract amount.

 

4)         The contractor that submits a Bid Credit Certificate of a subcontractor on a bid must use that subcontractor on the project for which the bid is submitted, unless the subcontractor elects not to participate in the project or is disqualified by the Awarding Authority.

 

5)         A subcontractor who elects not to participate in a project after the bid is submitted shall forfeit their bid credits. The prevailing bid shall not be disrupted, and the contractor will not be required to elicit or submit additional bid credits.

 

6)         In the event that a subcontractor is disqualified by the Awarding Authority after the bid is selected and during due diligence review, the credits contributed by that disqualified subcontractor will not be returned. The prevailing bid shall not be disrupted, and the prime contractor will not be required to elicit or submit additional bid credits.

 

d)         Maximum Permitted Credit Usage. The maximum amount of bid credits that may be used for a specific project when bidding on a public works project shall be as follows:

 

1)         3% of the total project cost for projects that are $5 million or less.

 

2)         4% of the total project cost for projects that are $50 million or less but more than $5 million.

 

3)         5% of the total project cost for projects more than $50 million.

 

e)         Return of Bid Credits

 

1)         Bid credits ultimately applied by an awarding authority will be subtracted from the prevailing contractor or subcontractor's account at the expiration of the protest period of the award. Any excess bid credits that were not used by the awarding authority will be returned to the contractor or subcontractor's account.

 

2)         In the event that a bid contained multiple Bid Credit Certificates, excess bid credits shall be calculated, and ultimately returned to the parties that submitted the Bid Credit Certificates, in a manner proportional to the original contribution of each party. This provision shall not be construed to contravene the requirement that a prime contractor must submit no less than $5,000 of its own credits with each bid (see Section 680.230(c)(2)).

 

3)         Bid credits that were sequestered in an account will be unfrozen if they are not accepted by the awarding authority, or if the contractor or subcontractor withdraws its bid with the awarding authority and returns the bid credit certificate to the Office of Illinois Works, or if the Bid Credit Certificate expires.  Contractors shall notify the Office of Illinois Works if the bid credits are not accepted by the awarding authority using a form provided by the Department.  The Department will return the sequestered bid credits to the contractors account within 10 business days of receipt of notice.

 

4)         Unless the Department receives notice from the contractor or awarding authority that the bid credits were not accepted or withdrawn, or unless additional time is requested by the contractor to extend the duration of the Bid Credit Certificate, the Bid Credit Certificates shall expire 90 days after issuance. After expiration, the credits will be returned to the contractor or subcontractor's account within 10 business days.

 

(Source:  Added at 49 Ill. Reg. 7298, effective May 7, 2025)

 

Section 680.240  Transferring of Bid Credits

 

a)         Bid credit certificates may be combined for a specific project.

 

b)         Bid credits cannot be bought, sold, or gifted to another contractor or subcontractor.

 

c)         Bid credits may be transferred to another entity through a merger or acquisition.

 

(Source:  Added at 49 Ill. Reg. 7298, effective May 7, 2025)

 

Section 680.250  Penalties

 

a)         Upon a finding that a contractor or subcontractor has reported falsified records to the Department in order to fraudulently obtain bid credits, the Department may bar the contractor or subcontractor from participating in the Illinois Works Bid Credit Program. [30 ILCS 559/20-15(d)]

 

b)         A contractor or subcontractor who knowingly submits a falsified bid credit certificate to fraudulently win a bid may be suspended from participating in the bid credit program and/or forfeiture of bid credits.

 

c)         False or fraudulent claims for payment relating to false bid credits may be subject to damages and penalties under applicable law. [30 ILCS 559/20-15(d)]

 

(Source:  Added at 49 Ill. Reg. 7298, effective May 7, 2025)