MUNI PREAPPRENTICESHIP PROGRAM

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5265

Introduced 2/10/2026, by Rep. Elizabeth "Lisa" Hernandez

SYNOPSIS AS INTRODUCED:

30 ILCS 105/5.1038 new
30 ILCS 559/20-15
30 ILCS 559/20-17 new
110 ILCS 805/2-28 new

Amends the Illinois Works Job Program Act. Establishes the Illinois
Municipal Works Preapprenticeship and Service Trainee Program to be
administered by the Department of Commerce and Economic Opportunity.
Provides that the goal of the Program is to create a network of
community-based organizations within the region served by Morton College
that will recruit, prescreen, and provide preapprenticeship and service
trainee skills training to create a qualified, diverse pipeline of workers
who are prepared for careers in the construction and building trades and in
the union service trades that have collective bargaining agreements with
municipalities, the health care sector, and other service sectors. Creates
the Illinois Municipal Works Preapprenticeship and Service Trainee Fund.
Provides that the Fund shall be administered by the Department. Provides
that the Fund shall be used to provide funding directly to Morton College
and, through Morton College, to trade unions, municipal employers, health
care employers, and other service sector employers who are associated with
the Program. Provides that every July 1, $250,000 shall be transferred
from the Rebuild Illinois Projects Fund to the Illinois Municipal Works
Preapprenticeship and Service Trainee Fund. Sets forth an annual report
for Morton College. Provides for bid credits for employing apprentices who
have completed the Program. Amends the Public Community College Act.
Provides that the Illinois Community College Board shall monitor the
Program. Provides that, by no later than July 1, 2031, the State Board
shall recommend legislation to the General Assembly that will, based upon
the experience of Morton College, establish and fund an Illinois Pipeline
for the Advancement of the Union Service Workforce Program. Effective
immediately.
LRB104 20123 HLH 33574 b

A BILL FOR

HB5265
LRB104 20123 HLH 33574 b
1

AN ACT concerning finance.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The State Finance Act is amended by adding
5
Section 5.1038 as follows:

6

(30 ILCS 105/5.1038 new)
7

Sec. 5.1038.
The Illinois Municipal Works
8
Preapprenticeship and Service Trainee Fund.

9

Section 10.
The Illinois Works Jobs Program Act is amended
10
by changing Section 20-15 and by adding Section 20-17 as
11
follows:

12

(30 ILCS 559/20-15)
13

(Text of Section before amendment by P.A. 104-458
)
14

Sec. 20-15.
Illinois Works Preapprenticeship Program;
15
Illinois Works Bid Credit Program.
16

(a) The Illinois Works Preapprenticeship Program is
17
established and shall be administered by the Department. The
18
goal of the Illinois Works Preapprenticeship Program is to
19
create a network of community-based organizations throughout
20
the State that will recruit, prescreen, and provide
21
preapprenticeship skills training, for which participants may

HB5265
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LRB104 20123 HLH 33574 b
1
attend free of charge and receive a stipend, to create a
2
qualified, diverse pipeline of workers who are prepared for
3
careers in the construction and building trades. Upon
4
completion of the Illinois Works Preapprenticeship Program,
5
the candidates will be skilled and work-ready.
6

(b) There is created the Illinois Works Fund, a special
7
fund in the State treasury. The Illinois Works Fund shall be
8
administered by the Department. The Illinois Works Fund shall
9
be used to provide funding for community-based organizations
10
throughout the State. In addition to any other transfers that
11
may be provided for by law, on and after July 1, 2019 at the
12
direction of the Director of the Governor's Office of
13
Management and Budget, the State Comptroller shall direct and
14
the State Treasurer shall transfer amounts not exceeding a
15
total of $50,000,000 from the Rebuild Illinois Projects Fund
16
to the Illinois Works Fund.
17

(b-5) In addition to any other transfers that may be
18
provided for by law, beginning July 1, 2024 and each July 1
19
thereafter, or as soon thereafter as practical, the State
20
Comptroller shall direct and the State Treasurer shall
21
transfer $27,500,000 from the Capital Projects Fund to the
22
Illinois Works Fund.
23

(c) Each community-based organization that receives
24
funding from the Illinois Works Fund shall provide an annual
25
report to the Illinois Works Review Panel by April 1 of each
26
calendar year. The annual report shall include the following

HB5265
- 3 -
LRB104 20123 HLH 33574 b
1
information:
2

(1) a description of the community-based
3

organization's recruitment, screening, and training
4

efforts;
5

(2) the number of individuals who apply to,
6

participate in, and complete the community-based
7

organization's program, broken down by race, gender, age,
8

and veteran status; and
9

(3) the number of the individuals referenced in item (2)
10

of this subsection who are initially accepted and placed
11

into apprenticeship programs in the construction and
12

building trades.
13

(d) The Department shall create and administer the
14
Illinois Works Bid Credit Program that shall provide economic
15
incentives, through bid credits, to encourage contractors and
16
subcontractors to provide contracting and employment
17
opportunities to historically underrepresented populations in
18
the construction industry.
19

The Illinois Works Bid Credit Program shall allow
20
contractors and subcontractors to earn bid credits for use
21
toward future bids for public works projects contracted by the
22
State or an agency of the State in order to increase the
23
chances that the contractor and the subcontractors will be
24
selected.
25

Contractors or subcontractors may be eligible to earn bid
26
credits for employing apprentices who have completed the

HB5265
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LRB104 20123 HLH 33574 b
1
Illinois Works Preapprenticeship Program
or the Illinois
2
Municipal Works Preapprenticeship and Service Trainee Program
.
3
Contractors or subcontractors shall earn bid credits at a rate
4
established by the Department and based on labor hours worked
5
by apprentices who have completed the Illinois Works
6
Preapprenticeship Program
or the Illinois Municipal Works
7
Preapprenticeship and Service Trainee Program
. In order to
8
earn bid credits, contractors and subcontractors shall provide
9
the Department with certified payroll documenting the hours
10
performed by apprentices who have completed the Illinois Works
11
Preapprenticeship Program
or the Illinois Municipal Works
12
Preapprenticeship and Service Trainee Program
. Contractors and
13
subcontractors can use bid credits toward future bids for
14
public works projects contracted or funded by the State or an
15
agency of the State in order to increase the likelihood of
16
being selected as the contractor for the public works project
17
toward which they have applied the bid credit. The Department
18
shall establish the rate by rule and shall publish it on the
19
Department's website. The rule may include maximum bid credits
20
allowed per contractor, per subcontractor, per apprentice, per
21
bid, or per year.
22

The Illinois Works Credit Bank is hereby created and shall
23
be administered by the Department. The Illinois Works Credit
24
Bank shall track the bid credits.
25

A contractor or subcontractor who has been awarded bid
26
credits under any other State program for employing

HB5265
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LRB104 20123 HLH 33574 b
1
apprentices who have completed the Illinois Works
2
Preapprenticeship Program is not eligible to receive bid
3
credits under the Illinois Works Bid Credit Program relating
4
to the same contract.
5

The Department shall report to the Illinois Works Review
6
Panel the following: (i) the number of bid credits awarded by
7
the Department; (ii) the number of bid credits submitted by
8
the contractor or subcontractor to the agency administering
9
the public works contract; and (iii) the number of bid credits
10
accepted by the agency for such contract. Any agency that
11
awards bid credits pursuant to the Illinois Works Credit Bank
12
Program shall report to the Department the number of bid
13
credits it accepted for the public works contract.
14

Upon a finding that a contractor or subcontractor has
15
reported falsified records to the Department in order to
16
fraudulently obtain bid credits, the Department may bar the
17
contractor or subcontractor from participating in the Illinois
18
Works Bid Credit Program and may suspend the contractor or
19
subcontractor from bidding on or participating in any public
20
works project. False or fraudulent claims for payment relating
21
to false bid credits may be subject to damages and penalties
22
under applicable law.
23

(e) The Department shall adopt any rules deemed necessary
24
to implement this Section. In order to provide for the
25
expeditious and timely implementation of this Act, the
26
Department may adopt emergency rules. The adoption of

HB5265
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LRB104 20123 HLH 33574 b
1
emergency rules authorized by this subsection is deemed to be
2
necessary for the public interest, safety, and welfare.
3
(Source: P.A. 103-8, eff. 6-7-23; 103-305, eff. 7-28-23;
4
103-588, eff. 6-5-24; 103-605, eff. 7-1-24; 104-2, eff.
5
6-16-25.)

6

(Text of Section after amendment by P.A. 104-458
)
7

Sec. 20-15.
Illinois Works Preapprenticeship Program;
8
Illinois Works Bid Credit Program.
9

(a) The Illinois Works Preapprenticeship Program is
10
established and shall be administered by the Department. The
11
goal of the Illinois Works Preapprenticeship Program is to
12
create a network of community-based organizations throughout
13
the State that will recruit, prescreen, and provide
14
preapprenticeship skills training, for which participants may
15
attend free of charge and receive a stipend, to create a
16
qualified, diverse pipeline of workers who are prepared for
17
careers in the construction and building trades. Upon
18
completion of the Illinois Works Preapprenticeship Program,
19
the candidates will be skilled and work-ready.
20

(b) There is created the Illinois Works Fund, a special
21
fund in the State treasury. The Illinois Works Fund shall be
22
administered by the Department. The Illinois Works Fund shall
23
be used to provide funding for community-based organizations
24
throughout the State. In addition to any other transfers that
25
may be provided for by law, on and after July 1, 2019 at the

HB5265
- 7 -
LRB104 20123 HLH 33574 b
1
direction of the Director of the Governor's Office of
2
Management and Budget, the State Comptroller shall direct and
3
the State Treasurer shall transfer amounts not exceeding a
4
total of $50,000,000 from the Rebuild Illinois Projects Fund
5
to the Illinois Works Fund.
6

(b-5) In addition to any other transfers that may be
7
provided for by law, beginning July 1, 2024 and each July 1
8
thereafter, or as soon thereafter as practical, the State
9
Comptroller shall direct and the State Treasurer shall
10
transfer $27,500,000 from the Capital Projects Fund to the
11
Illinois Works Fund.
12

(c) Each community-based organization that receives
13
funding from the Illinois Works Fund shall provide an annual
14
report to the Illinois Works Review Panel by April 1 of each
15
calendar year. The annual report shall include the following
16
information:
17

(1) a description of the community-based
18

organization's recruitment, screening, and training
19

efforts;
20

(2) the number of individuals who apply to,
21

participate in, and complete the community-based
22

organization's program, broken down by race, gender, age,
23

and veteran status; and
24

(3) the number of the individuals referenced in item (2)
25

of this subsection who are initially accepted and placed
26

into apprenticeship programs in the construction and

HB5265
- 8 -
LRB104 20123 HLH 33574 b
1

building trades.
2

(d) The Department shall create and administer the
3
Illinois Works Bid Credit Program that shall provide economic
4
incentives, through bid credits, to encourage contractors and
5
subcontractors to provide contracting and employment
6
opportunities to historically underrepresented populations in
7
the construction industry.
8

The Illinois Works Bid Credit Program shall allow
9
contractors and subcontractors to earn bid credits for use
10
toward future bids for public works projects contracted by the
11
State or an agency of the State in order to increase the
12
chances that the contractor and the subcontractors will be
13
selected.
14

Contractors or subcontractors may be eligible to earn bid
15
credits for employing apprentices who have been verified by
16
the Department to have completed the Illinois Works
17
Preapprenticeship Program, the Climate Works Preapprenticeship
18
Program,
or
the Highway Construction Careers Training Program
,
19
or the Illinois Municipal Works Preapprenticeship and Service
20
Trainee Program
. Contractors or subcontractors shall earn bid
21
credits at a rate established by the Department and based on
22
labor hours worked by apprentices who have been verified by
23
the Department to have completed the Illinois Works
24
Preapprenticeship Program, the Climate Works Preapprenticeship
25
Program,
or
the Highway Construction Careers Training Program
,
26
or the Illinois Municipal Works Preapprenticeship and Service

HB5265
- 9 -
LRB104 20123 HLH 33574 b
1
Trainee Program
. In order to earn bid credits, contractors and
2
subcontractors shall provide the Department with certified
3
payroll documenting the hours performed by apprentices who
4
have been verified by the Department to have completed the
5
Illinois Works Preapprenticeship Program, the Climate Works
6
Preapprenticeship Program,
or
the Highway Construction Careers
7
Training Program
, or the Illinois Municipal Works
8
Preapprenticeship and Service Trainee Program
. Contractors and
9
subcontractors can use bid credits toward future bids for
10
public works projects contracted or funded by the State or an
11
agency of the State in order to increase the likelihood of
12
being selected as the contractor for the public works project
13
toward which they have applied the bid credit. The Department
14
shall establish the rate by rule and shall publish it on the
15
Department's website. The rule may include maximum bid credits
16
allowed per contractor, per subcontractor, per apprentice, per
17
bid, or per year.
18

The Illinois Works Credit Bank is hereby created and shall
19
be administered by the Department. The Illinois Works Credit
20
Bank shall track the bid credits.
21

A contractor or subcontractor who has been awarded bid
22
credits under any other State program for employing
23
apprentices who have completed the Illinois Works
24
Preapprenticeship Program is not eligible to receive bid
25
credits under the Illinois Works Bid Credit Program relating
26
to the same contract.

HB5265
- 10 -
LRB104 20123 HLH 33574 b
1

The Department shall report to the Illinois Works Review
2
Panel the following: (i) the number of bid credits awarded by
3
the Department; (ii) the number of bid credits submitted by
4
the contractor or subcontractor to the agency administering
5
the public works contract; and (iii) the number of bid credits
6
accepted by the agency for such contract. Any agency that
7
awards bid credits pursuant to the Illinois Works Credit Bank
8
Program shall report to the Department the number of bid
9
credits it accepted for the public works contract.
10

Upon a finding that a contractor or subcontractor has
11
reported falsified records to the Department in order to
12
fraudulently obtain bid credits, the Department may bar the
13
contractor or subcontractor from participating in the Illinois
14
Works Bid Credit Program and may suspend the contractor or
15
subcontractor from bidding on or participating in any public
16
works project. False or fraudulent claims for payment relating
17
to false bid credits may be subject to damages and penalties
18
under applicable law.
19

(e) The Department shall adopt any rules deemed necessary
20
to implement this Section. In order to provide for the
21
expeditious and timely implementation of this Act, the
22
Department may adopt emergency rules. The adoption of
23
emergency rules authorized by this subsection is deemed to be
24
necessary for the public interest, safety, and welfare.
25
(Source: P.A. 103-8, eff. 6-7-23; 103-305, eff. 7-28-23;
26
103-588, eff. 6-5-24; 103-605, eff. 7-1-24; 104-2, eff.

HB5265
- 11 -
LRB104 20123 HLH 33574 b
1
6-16-25; 104-458, eff. 6-1-26.)

2

(30 ILCS 559/20-17 new)
3

Sec. 20-17.
Illinois Municipal Works Preapprenticeship and
4
Service Trainee Program.
5

(a) The Illinois Municipal Works Preapprenticeship and
6
Service Trainee Program is established and shall be
7
administered by the Department. The goal of the Illinois
8
Municipal Works Preapprenticeship and Service Trainee Program
9
is to create a network of community-based organizations within
10
the region served by Morton College that will recruit,
11
prescreen, and provide preapprenticeship and service trainee
12
skills training, for which participants may attend free of
13
charge and receive a stipend, to create a qualified, diverse
14
pipeline of workers who are prepared for careers in the
15
construction and building trades and in the union service
16
trades that have collective bargaining agreements with
17
municipalities, the health care sector, and other service
18
sectors.
19

(b) There is created the Illinois Municipal Works
20
Preapprenticeship and Service Trainee Fund, a special fund in
21
the State treasury. The Fund shall be administered by the
22
Department. The Fund shall be used to provide funding directly
23
to Morton College and, through Morton College, to trade
24
unions, municipal employers, health care employers, and other
25
service sector employers who are associated with the Illinois

HB5265
- 12 -
LRB104 20123 HLH 33574 b
1
Municipal Works Preapprenticeship and Service Trainee Program.
2
In addition to any other transfers that may be provided for by
3
law, on and after July 1, 2026 and every July 1 thereafter, at
4
the direction of the Director of the Governor's Office of
5
Management and Budget, the State Comptroller shall direct and
6
the State Treasurer shall transfer amounts not exceeding a
7
total of $250,000 from the Rebuild Illinois Projects Fund to
8
the Fund.
9

(c) With regard to funds that Morton College receives from
10
the Illinois Municipal Works Preapprenticeship and Service
11
Trainee Fund, Morton College shall provide an annual report to
12
the Illinois Works Review Panel and the Illinois Community
13
College Board by April 1 of each calendar year. The annual
14
report shall include the following information:
15

(1) a description of Morton College's recruitment,
16

screening, and training efforts;
17

(2) the number of individuals who apply to,
18

participate in, and complete the program, broken down by
19

race, gender, age, veteran status, and primary language;
20

(3) the number of the individuals referenced in item
21

(2) of this subsection who are initially accepted and
22

placed into apprenticeship programs in the construction
23

and building trades or in union service trainee programs
24

with municipal, healthcare, or other service sector
25

employers; and
26

(4) such other information as Morton College deems

HB5265
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LRB104 20123 HLH 33574 b
1

necessary or advisable to identify and document successful
2

aspects of the program and to resolve systemic hinderances
3

to the program's success.

4

Section 15.
The Public Community College Act is amended by
5
adding Section 2-28 as follows:

6

(110 ILCS 805/2-28 new)
7

Sec. 2-28.
Pipeline for the Advancement of the Trade Union
8
and Service Union Workforce.
The State Board shall monitor
9
implementation and progress of the Illinois Municipal Works
10
Preapprenticeship and Service Trainee Program. By no later
11
than July 1, 2031, the State Board, in collaboration with
12
Morton College, shall recommend legislation to the General
13
Assembly that will, based upon the experience of Morton
14
College, establish and fund an Illinois Pipeline for the
15
Advancement of the Union Service Workforce Program.

16

Section 95.
No acceleration or delay.
Where this Act makes
17
changes in a statute that is represented in this Act by text
18
that is not yet or no longer in effect (for example, a Section
19
represented by multiple versions), the use of that text does
20
not accelerate or delay the taking effect of (i) the changes
21
made by this Act or (ii) provisions derived from any other
22
Public Act.

23

Section 99.
Effective date.
This Act takes effect upon

HB5265
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LRB104 20123 HLH 33574 b
1
becoming law.

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