SB2538 95TH GENERAL ASSEMBLY

LRB095 17103 BDD 43157 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB2538

Introduced 2/15/2008, by Sen. Susan Garrett

SYNOPSIS AS INTRODUCED:

See Index

Amends the Department of Central Management Services Law. Requires the Department of Central Management Services, in cooperation with the Department of Human Services, to develop and implement plans to increase the number of individuals with a disability employed by State government. Amends the Department of Commerce and Economic Opportunity Law. Requires the Department of Commerce and Economic Opportunity, in cooperation with the Department of Human Services, to develop and implement a public awareness campaign designed to increase statewide awareness of issues that affect individuals with a disability. Sets forth requirements for the public awareness campaign. Amends the Department of Human Services Act. Requires the Department of Human Services to establish procedures and adopt rules for the certification of employees and individuals with a disability with respect to certain tax credits set forth under the Illinois Income Tax Act. Amends the Illinois Procurement Code. Requires that each notice of a contract contain a statement to encourage prospective vendors to hire individuals with a disability. Provides that a chief procurement officer may encourage prospective vendors to consider hiring individuals with a disability. Amends the Illinois Income Tax Act. Creates a tax credit for taxpayers who, during the taxable year, pay wages to an employee with a disability. Creates a tax credit for taxpayers who, during the taxable year, hire a net new qualified employee with a disability. Creates a tax credit for taxpayers who are qualified individuals with a disability. Sets forth the amounts and requirements for these credits. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning persons with disabilities.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Department of Central Management Services Law of the Civil Administrative Code of Illinois is amended by adding Section 405-122 as follows:

(20 ILCS 405/405-122 new)

Sec. 405-122. Employees with a disability. The Department, in cooperation with the Department of Human Services, shall develop and implement plans to increase the number of individuals with a disability employed by State government. The Department must submit a report, annually, to the Governor and to the General Assembly concerning its actions under this Section.

Section 10. The Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois is amended by adding Sections 605-813 as follows:

(20 ILCS 605/605-813 new)

Sec. 605-813. Public awareness campaign concerning disability issues. The Department, in cooperation with the Department of Human Services, shall develop and implement a public awareness campaign designed to increase statewide awareness of issues that affect individuals with a disability. The public awareness campaign must address, without limitation, issues concerning:

(1) the State's duties and responsibilities concerning the employment of individuals with a disability;

(2) the availability of income tax credits for taxpayers who employ individuals with a disability under Sections 218 and 219 of the Illinois Income Tax Act;

(3) the availability of income tax credits for individuals with disabilities under Section 220 of the Illinois Income Tax Act;

(4) the availability of the Medicaid for Working Persons with Disabilities program; and

(5) other programs and services available to individuals with a disability under State and federal law.

Section 15. The Department of Human Services Act is amended by adding Section 10-56 as follows:

(20 ILCS 1305/10-56 new)

Sec. 10-56. Certifications of disability for certain tax credits. The Department, in cooperation with the Department of Revenue, shall establish procedures and adopt rules for the certification of employees with a disability and individuals with a disability with respect to the tax credits set forth under Sections 218, 219, and 220 of the Illinois Income Tax Act.

Section 20. The Illinois Procurement Code is amended by changing Section 15-25 and by adding Section 45-90 as follows:

(30 ILCS 500/15-25)

Sec. 15-25. Bulletin content.

(a) Invitations for bids. Notice of each and every contract that is offered, including renegotiated contracts and change orders, shall be published in the Bulletin. The applicable chief procurement officer may provide by rule an organized format for the publication of this information, but in any case it must include at least the date first offered, the date submission of offers is due, the location that offers are to be submitted to, the purchasing State agency, the responsible State purchasing officer, a brief purchase description, the method of source selection, information of how to obtain a comprehensive purchase description and any disclosure and contract forms, and encouragement to prospective vendors to hire qualified veterans, as defined by Section 45-67 of this Code, individuals with a disability, and Illinois residents discharged from any Illinois adult correctional center.

(b) Contracts let or awarded. Notice of each and every contract that is let or awarded, including renegotiated contracts and change orders, shall be published in the next available subsequent Bulletin, and the applicable chief procurement officer may provide by rule an organized format for the publication of this information, but in any case it must include at least all of the information specified in subsection (a) as well as the name of the successful responsible bidder or offeror, the contract price, the number of unsuccessful responsive bidders, and any other disclosure specified in any Section of this Code. This notice must be posted in the online electronic Bulletin prior to execution of the contract.

(c) Emergency purchase disclosure. Any chief procurement officer, State purchasing officer, or designee exercising emergency purchase authority under this Code shall publish a written description and reasons and the total cost, if known, or an estimate if unknown and the name of the responsible chief procurement officer and State purchasing officer, and the business or person contracted with for all emergency purchases in the next timely, practicable Bulletin. This notice must be posted in the online electronic Bulletin within 3 business days after the execution of the contract.

(d) Other required disclosure. The applicable chief procurement officer shall provide by rule for the organized publication of all other disclosure required in other Sections of this Code in a timely manner.

(Source: P.A. 94-1067, eff. 8-1-06; 95-536, eff. 1-1-08.)

(30 ILCS 500/45-90 new)

Sec. 45-90. Encouragement to hire qualified individuals with a disability. A chief procurement officer may, as part of any solicitation, encourage prospective vendors to consider hiring qualified individuals with a disability and to notify them of any available financial incentives or other advantages associated with hiring such persons.

Section 25. The Illinois Income Tax Act is amended by adding Sections 218, 219, and 220 as follows:

(35 ILCS 5/218 new)

Sec. 218. Credit for wages paid to employees with a disability.

(a) For taxable years ending on or after December 31, 2008, each taxpayer who, during the taxable year, pays wages to an employee with a disability is entitled to credit against the tax imposed by subsections (a) and (b) of Section 201 of this Act in an amount set forth under subsections (b) and (c) of this Section.

(b) For a taxpayer who is a large business, the amount of the credit under this Section is:

(1) an amount equal to 45% of up to the first $6,000 of wages paid to each full-time employee with a disability during his or her second consecutive year of employment with the taxpayer; and

(2) an amount equal to 30% of up to the first $6,000 of wages paid to each part-time employee with a disability during his or her second consecutive year of employment with the taxpayer.

(c) For a taxpayer who is a small business, the amount of the credit under this Section is:

(1) if the taxpayer receives the federal Work Opportunity Tax Credit and if at least 20% of the taxpayer's employees are employees with a disability, then an amount equal to:

(A) 45% of up to the first $6,000 of wages and 5% of up to the second $6,000 of wages paid to each full-time employee with a disability during his or her second consecutive year of employment with the taxpayer; and

(B) 30% of up to the first $6,000 of wages and 3% of up to the second $6,000 of wages paid to each part-time employee with a disability during his or her second consecutive year of employment with the taxpayer; or

(2) if the taxpayer does not receive the federal Work Opportunity Tax Credit or if less than 20% of the taxpayer's employees are employees with a disability, then an amount equal to:

(A) 45% of up to the first $6,000 of wages and 7% of up to the second $6,000 of wages paid to each full-time employee with a disability during his or her second consecutive year of employment with the taxpayer, but not to exceed $420 for any one employee or $2,100 for all employees; and

(B) 30% of up to the first $6,000 of wages and 5% of up to the second $6,000 of wages paid to each part-time employee with a disability during his or her second consecutive year of employment with the taxpayer, but not to exceed $300 for any employee or $1,500 for all employees.

(c) A taxpayer may take this credit in only one taxable year with respect to any one employee with a disability. Throughout all taxable years, no more than one taxpayer may claim a credit under this Section with respect to wages paid to any one employee with a disability.

(d) It is unlawful for a taxpayer to intentionally manipulate the number of employees for the purpose of obtaining a credit under this Section. Each violation of this subsection is a business offense subject to a fine of not less than $5,000.

(e) For partners, shareholders of Subchapter S corporations, and owners of limited liability companies, if the liability company is treated as a partnership for purposes of federal and State income taxation, there shall be allowed a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.

(f) The credit under this Section may not be carried forward or back and may not reduce the taxpayer's liability to less than zero.

(g) The Department, in cooperation with the Department of Human Services, must adopt rules to administer this Section.

(h) This Section is exempt from the provisions of Section 250 of this Act.

(i) For the purposes of this Section:

"Employee with a disability" means an employee of the taxpayer who has been certified by the Department of Human Services as (i) meeting the definition of an "individual with a disability" under the federal Americans with Disabilities Act of 1990 and (ii) having a disability that constitutes an impediment to obtaining or maintaining employment or to making the transition from school to work.

"Full-time employee with a disability" means an employee with a disability employed for at least 35 hours per week.

"Large business" means a business concern that is not a small business.

"Part-time employee with a disability" means an employee with a disability employed for at least 10 hours per week.

"Small business" means a business concern, including its affiliates, that is independently owned and operated, not dominant in its field, and employs fewer than 100 employees or has gross annual sales of less than $3,000,000.

"Year" means a 12-month period.

(35 ILCS 5/219 new)

Sec. 219. Credit for employment of employees with a disability receiving State services.

(a) For taxable years ending on or after December 31, 2008, each taxpayer is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to: (i) $5,000 for each net new qualified employee with a disability hired on a full-time basis by the taxpayer during the taxable year; and (ii) $2,000 for each net new qualified employee with a disability hired on a part-time basis by the taxpayer during the taxable year.

(b) It is unlawful for a taxpayer to intentionally manipulate the number of employees for the purpose of obtaining a credit under this Section. Each violation of this subsection is a business offense subject to a fine of not less than $5,000.

(c) If the taxpayer is a partnership or Subchapter S corporation, the credit is allowed to the partners or shareholders in accordance with the determination of income and distributive share of income under Sections 702 and 704 and Subchapter S of the Internal Revenue Code.

(d) The credit may not be carried forward or back. In no event shall a credit under this Section reduce the taxpayer's liability to less than zero.

(e) The Department, in cooperation with the Department of Human Services, must adopt rules to administer this Section.

(f) This Section is exempt from the provisions of Section 250 of this Act.

(g) For the purposes of this Section:

"Full-time" means employment for at least 35 hours per week for at least 12 consecutive months.

"Net new employees with a disability" means the number of Illinois-based employees with a disability on the taxpayer's withholding rolls on the last day of the current taxable year less the number of Illinois-based employees with a disability on the taxpayer's withholding rolls on the last day of the immediately preceding taxable year.

"Part-time" means employment for at least 10 hours per week for at least 12 consecutive months.

"Qualified employee with a disability" means a employee with a disability, as defined under subsection (i) of Section 218, who, at the time that he or she is hired by the taxpayer, receives assistance that is directly related to his or her disability and that is administered under a program operated by the Department of Human Services or the Department of Healthcare and Family Services.

(35 ILCS 5/220 new)

Sec. 220. Credit for individuals with a disability.

(a) For taxable years ending on or after December 31, 2008, each taxpayer who is a qualified individual with a disability is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to 25% of the tax otherwise imposed on that individual under subsections (a) and (b) of Section 201.

(b) The credit may not be carried forward or back. In no event shall a credit under this Section reduce the taxpayer's liability to less than zero.

(c) The Department, in cooperation with the Department of Human Services, must adopt rules to administer this Section.

(d) This Section is exempt from the provisions of Section 250 of this Act.

(e) For the purposes of this Section, "qualified individual with a disability" means an individual who has been certified by the Department of Human Services as (i) meeting the definition of an "individual with a disability" under the federal Americans with Disabilities Act of 1990 and (ii) having a disability that constitutes an impediment to obtaining or maintaining employment or to making the transition from school to work.

Section 99. Effective date. This Act takes effect upon becoming law.