Level_1.py

global img
def drawLevel1():
    global circleY, circleDirection, startTime, position
    image(img,0,0)
    fill(50,150,200)
    rect(position,200, 50,50)
    # move for a little while, then stop
    if millis() > startTime and millis() < startTime + 2000:
        position = position + 1

    # wait a little while, then reset the startTime variable,
    # so the above timing starts over:
    if millis() > startTime + 4000:
      startTime = millis()
    global rectY
    fill(200,50,150)
    rect(200,rectY,50,50)
    global rectDirection 
    rectY= rectY + rectDirection
    if rectY > width:
        rectDirection = -1
     
    fill(102,51,0)
    ellipse(300,circleY, 50,50) 
    circleY = circleY + circleDirection
    if circleY > width:
        circleDirection = -1
    if circleY < 0:
      circleDirection = 1
    if keyPressed:
        if key == 'j':
            circleDirection = -1

    if key == 'l':
        circleDirection =1
        

Level_2.py

def drawLevel2():
    global img, circleY, circleDirection, startTime, position
    image(img,0,0)
    fill(50,150,200)
    rect(position,200, 50,50)
    # move for a little while, then stop
    if millis() > startTime and millis() < startTime + 1000:
        position = position + 1

    # wait a little while, then reset the startTime variable,
    # so the above timing starts over:
    if millis() > startTime + 3000:
      startTime = millis()
    global rectY
    fill(150,50,200)
    rect(200,rectY,50,50)
    global rectDirection 
    rectY= rectY + rectDirection
    if rectY > width:
        rectDirection = -1
     
    fill(102,51,0)
    ellipse(300,circleY, 50,50) 
    circleY = circleY + circleDirection
    if circleY > width:
        circleDirection = -1
    if circleY < 0:
      circleDirection = 1
    if keyPressed:
        if key == 'j':
            circleDirection = -1

    if key == 'l':
        circleDirection =1
        

midterm_PART_2.pyde

from Level_1 import*
from Level_2 import*
level = 1 
circleY = 300
circleDirection = 1
position = 0
startTime = 0
rectY = 200
rectDirection =1
global img
def setup():
    size(576,720)
    img = loadImage("grass background.png")
    stroke(50,50,150)


def draw():
    if level == 1:
        drawLevel1()
    elif level ==2:
        drawLevel2()
    
    image(img,0,0)
    global img, circleY, circleDirection, startTime, position
    fill(50,150,200)
    rect(position,200, 50,50)
    # move for a little while, then stop
    if millis() > startTime and millis() < startTime + 2000:
        position = position + 1

    # wait a little while, then reset the startTime variable,
    # so the above timing starts over:
    if millis() > startTime + 4000:
      startTime = millis()
    global rectY
    fill(200,50,150)
    rect(200,rectY,50,50)
    global rectDirection 
    rectY= rectY + rectDirection
    if rectY > width:
        rectDirection = -1
     
    fill(102,51,0)
    ellipse(300,circleY, 50,50) 
    circleY = circleY + circleDirection
    if circleY > width:
        circleDirection = -1
    if circleY < 0:
      circleDirection = 1
    if keyPressed:
        if key == 'j':
            circleDirection = -1

    if key == 'l':
        circleDirection =1
        

sketch.properties

mode=Python
mode.id=jycessing.mode.PythonMode

Hi @sgodycki. I forked your code so that I could make edits, and added some comments. Just to make sure you can see that, you can find it here:
https://gist.github.com/rors/daeff74a5904b435c594ff9d1ba96c80
Let me know if that helps.