State of Illinois
91st General Assembly
Legislation

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91_HR0699ham001

 










                                           LRB9113533CBcbam01

 1                  AMENDMENT TO HOUSE RESOLUTION 699

 2        AMENDMENT  NO.      .   Amend  House  Resolution  699  by
 3    replacing lines 2 through 32 on page 1 and lines 1 through 26
 4    on page 2 with the following:

 5        "WHEREAS, The Unemployment Insurance Act was first passed
 6    in 1937 and has been amended from time  to  time  thereafter;
 7    and

 8        WHEREAS,   The   State   public   policy  underlying  the
 9    Unemployment Insurance Act is ". . . to lessen the menace  to
10    the  health, safety and morals of the people of Illinois, and
11    to  encourage  stabilization  of  employment",  thus   making
12    necessary "compulsory unemployment insurance upon a statewide
13    scale  providing  for  the  setting  aside of reserves during
14    periods of employment to  be  used  to  pay  benefits  during
15    periods of unemployment"; and

16        WHEREAS,  There  have  been rapid changes in the Illinois
17    workforce in recent years, including: between 1970 and  1990,
18    twice as many women entered the workforce as did men; between
19    1969 and 1998 the percentage of women in the workforce with a
20    child   under   age   3  increased  from  23%  to  63%;  many
21    newly-created jobs are low-paying and unstable service sector
22    jobs;  many  other  newly-created  jobs   are   seasonal   or
 
                            -2-            LRB9113533CBcbam01
 1    temporary; and over 300,000 former recipients of welfare have
 2    been added to the ranks of the workforce; and

 3        WHEREAS, During recent years fewer than 40% of unemployed
 4    workers,  as counted by the Illinois Department of Employment
 5    Security,  received  unemployment   insurance   benefits   in
 6    Illinois  at  any  given  time;  fewer than 30% of unemployed
 7    women received unemployment insurance benefits at  any  given
 8    time;  and,  according to at least one study, only 11% of the
 9    women who had received welfare  in  the  previous  24  months
10    received any unemployment insurance upon losing a job; and

11        WHEREAS,  There  is  a  need  to  determine  whether  the
12    unemployment  insurance  program  as  currently structured is
13    serving the public policy goals it is designed to meet, given
14    the current workforce and economy in  Illinois,  particularly
15    with   respect  to  female  workers,  new  workers,  seasonal
16    workers, workers who are parents or who have  other  pressing
17    family  or medical issues that prevent them from working, and
18    workers who are new parents on leave under the federal Family
19    and Medical Leave Act; and

20        WHEREAS,  The  ability  of  the  unemployment   insurance
21    program  to  provide  benefits  to  workers  depends  on  the
22    solvency  of  the  unemployment  trust  fund, and that fund's
23    current solvency is due not only to taxes  on  employers  but
24    also  to  benefit  cuts absorbed by workers during the 1980's
25    specifically for the purpose of improving the solvency of the
26    fund; and

27        WHEREAS, The Unemployment Insurance Trust Fund is  funded
28    by taxes paid by employers; and

29        WHEREAS, The Unemployment Insurance Trust Fund ended with
30    a balance of over $2 billion at the end of 1999; and

31        WHEREAS, Benefits to unemployed workers could be paid for
 
                            -3-            LRB9113533CBcbam01
 1    nearly  20 months without a single tax dollar being paid into
 2    the Trust Fund; and

 3        WHEREAS, Sound public policy calls for a  Trust  Fund  of
 4    adequate  size to pay benefits for unemployed workers without
 5    unnecessarily draining away  resources  from  employers  that
 6    could  be  better utilized in the Illinois economy; therefore
 7    be it

 8        RESOLVED,  BY  THE  HOUSE  OF  REPRESENTATIVES   OF   THE
 9    NINETY-FIRST  GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that
10    there be created a subcommittee on unemployment insurance  of
11    the House Committee on Labor and Commerce; and be it further

12        RESOLVED,  That  the  subcommittee be directed to conduct
13    hearings  throughout  the  State  during   the   year   2000,
14    accumulate  data  and  information important to employees and
15    employers  regarding  unemployment  insurance,  and   develop
16    recommendations  to  be submitted to the full House Labor and
17    Commerce  Committee,  the  Speaker  of  the  House,  and  the
18    Minority Leader of the House by December 1, 2000.".

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