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1 | AN ACT concerning employment.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Unemployment Insurance Act is amended by | ||||||||||||||||||||||||||
5 | changing Section 1506.1 and by adding Section 3150 as follows:
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6 | (820 ILCS 405/1506.1) (from Ch. 48, par. 576.1)
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7 | Sec. 1506.1. Determination of Employer's Contribution | ||||||||||||||||||||||||||
8 | Rate.
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9 | A. The contribution rate for any calendar year prior to | ||||||||||||||||||||||||||
10 | 1982 of each
employer who has incurred liability for the | ||||||||||||||||||||||||||
11 | payment of contributions within
each of the three calendar | ||||||||||||||||||||||||||
12 | years immediately preceding the calendar year for
which a rate | ||||||||||||||||||||||||||
13 | is being determined shall be determined in accordance with
the | ||||||||||||||||||||||||||
14 | provisions of this Act as amended and in effect on October 5, | ||||||||||||||||||||||||||
15 | 1980.
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16 | B. The contribution rate for calendar years 1982 and 1983 | ||||||||||||||||||||||||||
17 | of
each employer who has incurred liability for the payment of | ||||||||||||||||||||||||||
18 | contributions
within each of the three calendar years | ||||||||||||||||||||||||||
19 | immediately preceding the calendar
year for which a rate is | ||||||||||||||||||||||||||
20 | being determined shall be the product obtained by
multiplying | ||||||||||||||||||||||||||
21 | the employer's benefit wage ratio for that calendar year by the
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22 | adjusted state experience factor for the same year, provided | ||||||||||||||||||||||||||
23 | that:
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1 | 1. No employer's contribution rate shall be lower than | ||||||
2 | two-tenths of
1 percent or higher than 5.3%; and
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3 | 2. Intermediate contribution rates between such | ||||||
4 | minimum and maximum
rates shall be at one-tenth of 1 | ||||||
5 | percent intervals.
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6 | 3. If the product obtained as provided in this | ||||||
7 | subsection is not an
exact multiple of one-tenth of 1 | ||||||
8 | percent, it shall be increased or
reduced, as the case may | ||||||
9 | be, to the nearer multiple of one-tenth of 1
percent. If | ||||||
10 | such product is equally near to two multiples of one-tenth
| ||||||
11 | of 1 percent, it shall be increased to the higher multiple | ||||||
12 | of one-tenth
of 1 percent. If such product is less than | ||||||
13 | two-tenths of one percent,
it shall be increased to | ||||||
14 | two-tenths of 1 percent, and if greater than 5.3%,
it shall | ||||||
15 | be reduced to 5.3%.
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16 | The contribution rate of each employer for whom wages | ||||||
17 | became
benefit wages during the applicable period specified in | ||||||
18 | Section 1503,
but who paid no contributions upon wages for | ||||||
19 | insured work during such
period on or before the date | ||||||
20 | designated in Section 1503, shall be 5.3%.
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21 | The contribution rate of each employer for whom no wages | ||||||
22 | became
benefit wages during the applicable period specified in | ||||||
23 | Section 1503,
and who paid no contributions upon wages for | ||||||
24 | insured work during such
period on or before the date specified | ||||||
25 | in Section 1503, shall be 2.7 percent.
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26 | Notwithstanding the other provisions of this Section, no |
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1 | employer's
contribution rate with respect to calendar years | ||||||
2 | 1982 and
1983 shall exceed 2.7 percent of the wages for insured | ||||||
3 | work paid
by him during any calendar quarter, if such wages | ||||||
4 | paid during such
calendar quarter total less than $50,000.
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5 | C. The contribution rate for calendar years 1984, 1985 and | ||||||
6 | 1986 of each
employer who has incurred liability
for the | ||||||
7 | payment of contributions within each of the two calendar years
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8 | immediately preceding the calendar year for which a rate is | ||||||
9 | being determined
shall be the product obtained by multiplying | ||||||
10 | the employer's benefit wage
ratio for that calendar year by the | ||||||
11 | adjusted state experience factor for
the same year, provided | ||||||
12 | that:
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13 | 1. An employer's minimum contribution rate shall be the | ||||||
14 | greater of: .2%;
or, the product obtained by multiplying | ||||||
15 | .2% by the adjusted state experience
factor for the | ||||||
16 | applicable calendar year.
| ||||||
17 | 2. An employer's maximum contribution rate shall be the | ||||||
18 | greater of 5.5%
or the product of 5.5% and the adjusted | ||||||
19 | State experience factor for the
applicable calendar year | ||||||
20 | except that such maximum contribution rate shall
not be | ||||||
21 | higher than 6.3% for calendar year 1984, nor be higher than | ||||||
22 | 6.6%
or lower than 6.4% for calendar year 1985, nor be | ||||||
23 | higher than 6.7% or lower
than 6.5% for calendar year 1986.
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24 | 3. If any product obtained in this subsection is not an | ||||||
25 | exact
multiple of one-tenth of one percent, it shall be | ||||||
26 | increased or reduced,
as the case may be to the nearer |
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1 | multiple of one-tenth of one percent. If
such product is | ||||||
2 | equally near to two multiples of one-tenth of one percent,
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3 | it shall be increased to the higher multiple of one-tenth | ||||||
4 | of one percent.
| ||||||
5 | 4. Intermediate rates between such minimum and maximum | ||||||
6 | rates shall be
at one-tenth of one percent intervals.
| ||||||
7 | The contribution rate of each employer for whom wages | ||||||
8 | became benefit wages
during the applicable period specified in | ||||||
9 | Section 1503, but who paid no
contributions upon wages for | ||||||
10 | insured work during such period on or before
the date | ||||||
11 | designated in Section 1503, shall be the maximum contribution | ||||||
12 | rate
as determined by paragraph 2 of this subsection. The | ||||||
13 | contribution rate for
each employer for whom no wages became | ||||||
14 | benefit wages during the applicable
period on or before the | ||||||
15 | date specified in Section 1503, and who paid no
contributions | ||||||
16 | upon wages for insured work during such period on or before
the | ||||||
17 | date specified in Section 1503, shall be the greater of 2.7% or | ||||||
18 | 2.7%
times the then current adjusted state experience factor as | ||||||
19 | determined by
the Director in accordance with the provisions of | ||||||
20 | Sections 1504 and 1505.
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21 | Notwithstanding, the other provisions of this Section, no | ||||||
22 | employer's
contribution rate with respect to the calendar year | ||||||
23 | 1984 shall exceed 2.7
percent times the then current adjusted | ||||||
24 | state experience factor as
determined by the Director in | ||||||
25 | accordance with the provisions of Sections
1504 and 1505 of the | ||||||
26 | wages for insured work paid by him during any calendar
quarter, |
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1 | if such wages paid during such calendar quarter total less than
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2 | $50,000.
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3 | D. The contribution rate for calendar years 1987, 1988, | ||||||
4 | 1989 and 1990
of each employer who
has incurred liability for | ||||||
5 | the payment of contributions within each of the
three calendar | ||||||
6 | years immediately preceding the calendar year for which a
rate | ||||||
7 | is being determined shall be the product obtained by | ||||||
8 | multiplying the
employer's benefit wage ratio for that calendar | ||||||
9 | year by the adjusted state
experience factor for the same year, | ||||||
10 | provided, that:
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11 | 1. An employer's minimum contribution rate shall be the | ||||||
12 | greater of .2%
or the product obtained by multiplying .2% | ||||||
13 | by the adjusted State
experience factor for the applicable | ||||||
14 | calendar year.
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15 | 2. An employer's maximum contribution rate shall be the | ||||||
16 | greater of 5.5%
or the product of 5.5% and the adjusted | ||||||
17 | State experience factor for the
calendar year 1987 except | ||||||
18 | that such maximum contribution rate shall not be
higher | ||||||
19 | than 6.7% or lower than 6.5% and an employer's maximum
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20 | contribution rate for 1988, 1989 and 1990 shall be the | ||||||
21 | greater of 6.4% or
the product of 6.4% and the adjusted | ||||||
22 | State experience factor for the
applicable calendar year.
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23 | 3. If any product obtained in this subsection is not an | ||||||
24 | exact multiple
of one-tenth of one percent, it shall be | ||||||
25 | increased or reduced, as the case
may be to the nearer | ||||||
26 | multiple of one-tenth of 1 percent. If such product
is |
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1 | equally near to two multiples of one-tenth of 1 percent, it | ||||||
2 | shall be
increased to the higher multiple of one-tenth of 1 | ||||||
3 | percent.
| ||||||
4 | 4. Intermediate rates between such minimum and maximum | ||||||
5 | rates shall be at
one-tenth of 1 percent intervals.
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6 | The contribution rate of each employer for whom wages | ||||||
7 | became benefit
wages during the applicable period specified in | ||||||
8 | Section 1503, but who did
not report wages for insured work | ||||||
9 | during such period, shall be the maximum
contribution rate as | ||||||
10 | determined by paragraph 2 of this subsection. The
contribution | ||||||
11 | rate for each employer for whom no wages became benefit wages
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12 | during the applicable period specified in Section 1503, and who | ||||||
13 | did not
report wages for insured work during such period, shall | ||||||
14 | be the greater of 2.7%
or 2.7% times the then current adjusted | ||||||
15 | State experience factor as
determined by the Director in | ||||||
16 | accordance with the provisions of Sections 1504 and 1505.
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17 | E.
The
contribution rate for calendar year 1991 and
each | ||||||
18 | calendar year thereafter of each employer who has
incurred | ||||||
19 | liability for the payment of contributions
within each of the | ||||||
20 | three calendar years immediately
preceding the calendar year | ||||||
21 | for which a rate is being
determined shall be the product | ||||||
22 | obtained by multiplying
the employer's benefit ratio defined by | ||||||
23 | Section 1503.1
for that calendar year by the adjusted state | ||||||
24 | experience
factor for the same year, provided that:
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25 | 1. Except as otherwise provided in this paragraph, an | ||||||
26 | employer's
minimum contribution rate shall be the greater |
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1 | of 0.2% or the
product obtained by multiplying 0.2% by the | ||||||
2 | adjusted state
experience factor for the applicable
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3 | calendar year. An employer's minimum contribution rate | ||||||
4 | shall be 0.1% for
calendar year 1996.
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5 | 2.
An
employer's maximum contribution rate shall be the | ||||||
6 | greater of 6.4% or
the product of 6.4%
and the adjusted | ||||||
7 | state experience factor for the applicable calendar year.
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8 | 3. If any product obtained in this subsection is not
an | ||||||
9 | exact multiple of one-tenth of one percent, it shall
be | ||||||
10 | increased or reduced, as the case may be to the nearer
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11 | multiple of one-tenth of one percent. If such product
is | ||||||
12 | equally near to two multiples of one-tenth of one percent,
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13 | it shall be increased to the higher multiple of one-tenth
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14 | of one percent.
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15 | 4. Intermediate rates between such minimum and maximum
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16 | rates shall be at one-tenth of one percent intervals.
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17 | The contribution rate of each employer for whom wages
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18 | became benefit wages during the applicable period specified
in | ||||||
19 | Section 1503 or for whom benefit payments became
benefit | ||||||
20 | charges during the applicable period specified
in Section | ||||||
21 | 1503.1, but who did not report wages for
insured work during | ||||||
22 | such period, shall be the maximum
contribution rate as | ||||||
23 | determined by paragraph 2 of this
subsection.
The
contribution | ||||||
24 | rate for each employer
for whom no wages became benefit wages | ||||||
25 | during the applicable
period specified in Section 1503 or for | ||||||
26 | whom no benefit
payments became benefit charges during the |
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1 | applicable
period specified in Section 1503.1, and who did not
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2 | report wages for insured work during such period, shall
be the | ||||||
3 | greater of 2.7% or 2.7% times the then current
adjusted state | ||||||
4 | experience factor as determined by the
Director in accordance | ||||||
5 | with the provisions of Sections
1504 and 1505.
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6 | E-5. The contribution rate for calendar year 2011 and each | ||||||
7 | calendar year thereafter of each employer who has incurred | ||||||
8 | liability for the payment of contributions within each of the 3 | ||||||
9 | calendar years immediately preceding the calendar year for | ||||||
10 | which a rate is being determined shall be the product obtained | ||||||
11 | by multiplying the employer's benefit ratio defined by Section | ||||||
12 | 1503.1 for that calendar year by the adjusted State experience | ||||||
13 | factor for the same year, provided that: | ||||||
14 | 1. Except as otherwise provided in this paragraph, an | ||||||
15 | employer's minimum contribution rate shall be 0.0%. | ||||||
16 | 2. An employer's maximum contribution rate shall be the | ||||||
17 | greater of 7.4% or the product of 7.4% and the adjusted | ||||||
18 | State experience factor for the applicable calendar year. | ||||||
19 | 3. If any product obtained in this subsection is not an | ||||||
20 | exact multiple of one-tenth of 1%, it shall be increased or | ||||||
21 | reduced, as the case may be, to the nearer multiple of | ||||||
22 | one-tenth of 1%. If such product is equally near to 2 | ||||||
23 | multiples of one-tenth of 1%, it shall be increased to the | ||||||
24 | higher multiple of one-tenth of 1%. | ||||||
25 | 4. Intermediate rates between such minimum and maximum | ||||||
26 | rates shall be at one-tenth of 1% intervals.
The |
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1 | contribution rate of each employer for whom wages became | ||||||
2 | benefit wages during the applicable period specified in | ||||||
3 | Section 1503 or for whom benefit payments became benefit | ||||||
4 | charges during the applicable period specified in Section | ||||||
5 | 1503.1, but who did not report wages for insured work | ||||||
6 | during such period, shall be the maximum contribution rate | ||||||
7 | as determined by paragraph 2 of this subsection. The | ||||||
8 | contribution rate for each employer for whom no wages | ||||||
9 | became benefit wages during the applicable period | ||||||
10 | specified in Section 1503 or for whom no benefit payments | ||||||
11 | became benefit charges during the applicable period | ||||||
12 | specified in Section 1503.1, and who did not report wages | ||||||
13 | for insured work during such period, shall be the greater | ||||||
14 | of 2.7% or 2.7% times the then current adjusted State | ||||||
15 | experience factor as determined by the Director in | ||||||
16 | accordance with the provisions of Sections 1504 and 1505. | ||||||
17 | F. Notwithstanding the other provisions of this Section, | ||||||
18 | and pursuant to
Section 271 of the Tax Equity and Fiscal | ||||||
19 | Responsibility Act of 1982, as
amended, no employer's | ||||||
20 | contribution rate with respect to calendar years
1985, 1986, | ||||||
21 | 1987 and 1988 shall, for any calendar quarter during which the
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22 | wages paid by that employer are less than $50,000, exceed the | ||||||
23 | following:
with respect to calendar year 1985, 3.7%; with | ||||||
24 | respect to calendar year 1986,
4.1%; with respect to calendar | ||||||
25 | year 1987, 4.5%; and with respect to
calendar year 1988, 5.0%.
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26 | G. Notwithstanding the other provisions of this Section, no |
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1 | employer's
contribution rate with respect to calendar year 1989 | ||||||
2 | and each calendar year
thereafter shall exceed 5.4% of the | ||||||
3 | wages for insured work paid by him
during any calendar quarter, | ||||||
4 | if such wages paid during such calendar
quarter total less than | ||||||
5 | $50,000, plus any applicable penalty contribution rate | ||||||
6 | calculated pursuant to subsection C of Section 1507.1.
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7 | (Source: P.A. 94-301, eff. 1-1-06.)
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8 | (820 ILCS 405/3150 new) | ||||||
9 | Sec. 3150. Unemployment Insurance Task Force. | ||||||
10 | (a) Definition. As used in this Section, "Task Force" means | ||||||
11 | the Unemployment Insurance Task Force. | ||||||
12 | (b) Creation and duties. The Unemployment Insurance Task | ||||||
13 | Force is created to study and make recommendations regarding | ||||||
14 | ideas to reform unemployment insurance in Illinois in a way | ||||||
15 | which encourages business growth while ensuring protection of | ||||||
16 | workers who become involuntarily unemployed. Reform ideas may | ||||||
17 | include, but are not limited to, altering employer contribution | ||||||
18 | rates to place a greater burden upon those employers with | ||||||
19 | greater employment loss experience, allowing for and | ||||||
20 | developing a private unemployment insurance market, and | ||||||
21 | privatizing unemployment insurance through the establishment | ||||||
22 | of employee-owned accounts similar to retirement accounts to be | ||||||
23 | funded by contributions from the employer and employee to be | ||||||
24 | used at the discretion of the employee if he or she becomes | ||||||
25 | unemployed. |
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1 | (c) Membership. The Task Force shall be comprised of the | ||||||
2 | following individuals: | ||||||
3 | (1) one member appointed by the Governor, who shall | ||||||
4 | serve as chairperson of the Task Force; | ||||||
5 | (2) one member appointed by the Speaker of the House of | ||||||
6 | Representatives; | ||||||
7 | (3) one member appointed by the Minority Leader of the | ||||||
8 | House of Representatives; | ||||||
9 | (4) one member appointed by the President of the | ||||||
10 | Senate; and | ||||||
11 | (5) one member appointed by the Minority Leader of the | ||||||
12 | Senate. | ||||||
13 | (d) Appointments. Appointments shall be made 90 days from | ||||||
14 | the effective date of this amendatory Act of the 96th General | ||||||
15 | Assembly. | ||||||
16 | (e) Compensation. The Task Force members shall serve | ||||||
17 | voluntarily and without compensation. | ||||||
18 | (f) Support. The Department shall be responsible for | ||||||
19 | providing staff and administrative support to the Task Force. | ||||||
20 | (g) Hearings. The Task Force shall solicit comments and | ||||||
21 | hold public hearings before filing any report required by this | ||||||
22 | Section. | ||||||
23 | (h) Reporting requirements. The Task Force shall submit a | ||||||
24 | final report of its findings and recommendations to the | ||||||
25 | Governor and the General Assembly on or before December 31, | ||||||
26 | 2011. The final report shall include estimated costs and |
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1 | savings data for the State, Illinois businesses, and Illinois | ||||||
2 | workers related to any recommendations. | ||||||
3 | (i) Abolishment. The Task Force is abolished on January 1, | ||||||
4 | 2012. | ||||||
5 | (j) Repeal. This Section is repealed on January 1, 2012.
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6 | Section 99. Effective date. This Act takes effect upon | ||||||
7 | becoming law.
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