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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 Illinois Secure Choice Savings Program Act |
5 | | is amended by changing Sections 5, 16, 80, 85, and 90 as |
6 | | follows: |
7 | | (820 ILCS 80/5) |
8 | | (This Section may contain text from a Public Act with a |
9 | | delayed effective date )
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10 | | Sec. 5. Definitions. Unless the context requires a |
11 | | different meaning or as expressly provided in this Section, all |
12 | | terms shall have the same meaning as when used in a comparable |
13 | | context in the Internal Revenue Code. As used in this Act: |
14 | | "Board" means the Illinois Secure Choice Savings Board |
15 | | established under this Act. |
16 | | "Department" means the Department of Revenue. |
17 | | "Director" means the Director of Revenue. |
18 | | "Employee" means any individual who is 18 years of age or |
19 | | older, who is employed by an employer, and who has wages that |
20 | | are allocable to Illinois during a calendar year under the |
21 | | provisions of Section 304(a)(2)(B) of the Illinois Income Tax |
22 | | Act. |
23 | | "Employer" means a person or entity engaged in a business, |
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1 | | industry, profession, trade, or other enterprise in Illinois, |
2 | | whether for profit or not for profit, that (i) has at no time |
3 | | during the previous calendar year employed fewer than 25 |
4 | | employees in the State, (ii) has been in business at least 2 |
5 | | years, and (iii) has not offered a qualified retirement plan, |
6 | | including, but not limited to, a plan qualified under Section |
7 | | 401(a), Section 401(k), Section 403(a), Section 403(b), |
8 | | Section 408(k), Section 408(p), or Section 457(b) of the |
9 | | Internal Revenue Code of 1986 in the preceding 2 years. |
10 | | "Enrollee" means any employee who is enrolled in the |
11 | | Program.
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12 | | "Fund" means the Illinois Secure Choice Savings Program |
13 | | Fund.
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14 | | "Internal Revenue Code" means Internal Revenue Code of |
15 | | 1986, or any successor law, in effect for the calendar year.
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16 | | "IRA" means a Roth IRA (individual retirement account) |
17 | | under Section 408A of the Internal Revenue Code.
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18 | | "Participating employer" means an employer or small |
19 | | employer that provides a payroll deposit retirement savings |
20 | | arrangement as provided for by this Act for its employees who |
21 | | are enrollees in the Program. |
22 | | "Payroll deposit retirement savings arrangement" means an |
23 | | arrangement by which a participating employer allows enrollees |
24 | | to remit payroll deduction contributions to the Program. |
25 | | "Program" means the Illinois Secure Choice Savings |
26 | | Program.
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1 | | "Small employer" means a person or entity engaged in a |
2 | | business, industry, profession, trade, or other enterprise in |
3 | | Illinois, whether for profit or not for profit, that (i) |
4 | | employed less than 25 employees at any one time in the State |
5 | | throughout the previous calendar year, or (ii) has been in |
6 | | business less than 2 years, or both items (i) and (ii), but |
7 | | that notifies the Board Department that it is interested in |
8 | | being a participating employer. |
9 | | "Wages" means any compensation within the meaning of |
10 | | Section 219(f)(1) of the Internal Revenue Code that is received |
11 | | by an enrollee from a participating employer during the |
12 | | calendar year.
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13 | | (Source: P.A. 98-1150, eff. 6-1-15.) |
14 | | (820 ILCS 80/16) |
15 | | (This Section may contain text from a Public Act with a |
16 | | delayed effective date )
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17 | | Sec. 16. Illinois Secure Choice Administrative Fund. The |
18 | | Illinois Secure Choice Administrative Fund ("Administrative |
19 | | Fund") is created as a nonappropriated separate and apart trust |
20 | | fund in the State Treasury. The Board shall use moneys in the |
21 | | Administrative Fund to pay for administrative expenses it |
22 | | incurs in the performance of its duties under this Act. The |
23 | | Board shall use moneys in the Administrative Fund to cover |
24 | | start-up administrative expenses it incurs in the performance |
25 | | of its duties under this Act. The Administrative Fund may |
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1 | | receive any grants or other moneys designated for |
2 | | administrative purposes from the State, or any unit of federal |
3 | | or local government, or any other person, firm, partnership, or |
4 | | corporation. Any interest earnings that are attributable to |
5 | | moneys in the Administrative Fund must be deposited into the |
6 | | Administrative Fund. The State Treasurer shall be the |
7 | | administering agency for the Administrative Fund on behalf of |
8 | | the Board.
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9 | | (Source: P.A. 98-1150, eff. 6-1-15.) |
10 | | (820 ILCS 80/80) |
11 | | (This Section may contain text from a Public Act with a |
12 | | delayed effective date )
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13 | | Sec. 80. Audit and reports.
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14 | | (a) The Board shall annually submit : (1) an audited |
15 | | financial report, prepared in accordance with generally |
16 | | accepted accounting principles, on the operations of the |
17 | | Program during each calendar year by July 1 of the following |
18 | | year to the Governor, the Comptroller, the State Treasurer, and |
19 | | the General Assembly . ; and
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20 | | (2) a report prepared by the Board, which shall |
21 | | include, but is not limited to, a summary of the benefits |
22 | | provided by the Program, including the number of enrollees |
23 | | in the Program, the percentage and amounts of investment |
24 | | options and rates of return, and such other information |
25 | | that is relevant to make a full, fair, and effective |
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1 | | disclosure of the operations of the Program and the Fund. |
2 | | The annual audit shall be made by an independent certified |
3 | | public accountant and shall include, but is not limited to, |
4 | | direct and indirect costs attributable to the use of outside |
5 | | consultants, independent contractors, and any other persons |
6 | | who are not State employees for the administration of the |
7 | | Program.
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8 | | (b) In addition to any other statements or reports required |
9 | | by law, the Board shall provide periodic reports at least |
10 | | annually to participating employers, reporting the names of |
11 | | each enrollee employed by the participating employer and the |
12 | | amounts of contributions made by the participating employer on |
13 | | behalf of each employee during the reporting period, as well as |
14 | | to enrollees, reporting contributions and investment income |
15 | | allocated to, withdrawals from, and balances in their Program |
16 | | accounts for the reporting period. Such reports may include any |
17 | | other information regarding the Program as the Board may |
18 | | determine.
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19 | | (c) The State Treasurer shall prepare a report in |
20 | | consultation with the Board that includes a summary of the |
21 | | benefits provided by the Program, including the number of |
22 | | enrollees in the Program, the percentage and amounts of |
23 | | investment options and rates of return, and such other |
24 | | information that is relevant to make a full, fair, and |
25 | | effective disclosure of the operations of the Program and the |
26 | | Fund. |
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1 | | (Source: P.A. 98-1150, eff. 6-1-15.) |
2 | | (820 ILCS 80/85) |
3 | | (This Section may contain text from a Public Act with a |
4 | | delayed effective date )
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5 | | Sec. 85. Penalties.
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6 | | (a) An employer who fails without reasonable cause to |
7 | | enroll an employee in the Program within the time prescribed |
8 | | under Section 60 of this Act shall be subject to a penalty |
9 | | equal to:
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10 | | (1) $250 for each employee for each calendar year or |
11 | | portion of a calendar year during which the employee |
12 | | neither was enrolled in the Program nor had elected out of |
13 | | participation in the Program; or
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14 | | (2) for each calendar year beginning after the date a |
15 | | penalty has been assessed with respect to an employee, $500 |
16 | | for any portion of that calendar year during which such |
17 | | employee continues to be unenrolled without electing out of |
18 | | participation in the Program.
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19 | | (b) After determining that an employer is subject to |
20 | | penalty under this Section for a calendar year, the Department |
21 | | shall issue a notice of proposed assessment to such employer, |
22 | | stating the number of employees for which the penalty is |
23 | | proposed under item (1) of subsection (a) of this Section and |
24 | | the number of employees for which the penalty is proposed under |
25 | | item (2) of subsection (a) of this Section for such calendar |
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1 | | year, and the total amount of penalties proposed.
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2 | | Upon the expiration of 90 days after the date on which a |
3 | | notice of proposed assessment was issued, the penalties |
4 | | specified therein shall be deemed assessed, unless the employer |
5 | | had filed a protest with the Department under subsection (c) of |
6 | | this Section.
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7 | | If, within 90 days after the date on which it was issued, a |
8 | | protest of a notice of proposed assessment is filed under |
9 | | subsection (c) of this Section, the penalties specified therein |
10 | | shall be deemed assessed upon the date when the decision of the |
11 | | Department with respect to the protest becomes final. |
12 | | (c) A written protest against the proposed assessment shall |
13 | | be filed with the Department in such form as the Department may |
14 | | by rule prescribe, setting forth the grounds on which such |
15 | | protest is based. If such a protest is filed within 90 days |
16 | | after the date the notice of proposed assessment is issued, the |
17 | | Department shall reconsider the proposed assessment and shall |
18 | | grant the employer a hearing. As soon as practicable after such |
19 | | reconsideration and hearing, the Department shall issue a |
20 | | notice of decision to the employer, setting forth the |
21 | | Department's findings of fact and the basis of decision. The |
22 | | decision of the Department shall become final: |
23 | | (1) if no action for review of the decision is |
24 | | commenced under the Administrative Review Law, on the date |
25 | | on which the time for commencement of such review has |
26 | | expired; or
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1 | | (2) if a timely action for review of the decision is |
2 | | commenced under the Administrative Review Law, on the date |
3 | | all proceedings in court for the review of such assessment |
4 | | have terminated or the time for the taking thereof has |
5 | | expired without such proceedings being instituted.
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6 | | (d) As soon as practicable after the penalties specified in |
7 | | a notice of proposed assessment are deemed assessed, the |
8 | | Department shall give notice to the employer liable for any |
9 | | unpaid portion of such assessment, stating the amount due and |
10 | | demanding payment. If an employer neglects or refuses to pay |
11 | | the entire liability shown on the notice and demand within 10 |
12 | | days after the notice and demand is issued, the unpaid amount |
13 | | of the liability shall be a lien in favor of the State of |
14 | | Illinois upon all property and rights to property, whether real |
15 | | or personal,
belonging to the employer, and the provisions in |
16 | | the Illinois Income Tax Act regarding liens, levies and |
17 | | collection actions with regard to assessed and unpaid |
18 | | liabilities under that Act, including the periods for taking |
19 | | any action, shall apply.
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20 | | (e) An employer who has overpaid a penalty assessed under |
21 | | this Section may file a claim for refund with the Department. A |
22 | | claim shall be in writing in such form as the Department may by |
23 | | rule prescribe and shall state the specific grounds upon which |
24 | | it is founded. As soon as practicable after a claim for refund |
25 | | is filed, the Department shall examine it and either issue a |
26 | | refund or issue a notice of denial. If such a protest is filed, |
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1 | | the Department shall reconsider the denial and grant the |
2 | | employer a hearing. As soon as practicable after such |
3 | | reconsideration and hearing, the Department shall issue a |
4 | | notice of decision to the employer. The notice shall set forth |
5 | | briefly the Department's findings of fact and the basis of |
6 | | decision in each case decided in whole or in part adversely to |
7 | | the employer. A denial of a claim for refund becomes final 90 |
8 | | days after the date of issuance of the notice of the denial |
9 | | except for such amounts denied as to which the employer has |
10 | | filed a protest with the Department. If a protest has been |
11 | | timely filed, the decision of the Department shall become |
12 | | final:
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13 | | (1) if no action for review of the decision is |
14 | | commenced under the Administrative Review Law, on the date |
15 | | on which the time for commencement of such review has |
16 | | expired; or
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17 | | (2) if a timely action for review of the decision is |
18 | | commenced under the Administrative Review Law, on the date |
19 | | all proceedings in court for the review of such assessment |
20 | | have terminated or the time for the taking thereof has |
21 | | expired without such proceedings being instituted.
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22 | | (f) No notice of proposed assessment may be issued with |
23 | | respect to a calendar year after June 30 of the fourth |
24 | | subsequent calendar year. No claim for refund may be filed more |
25 | | than 1 year after the date of payment of the amount to be |
26 | | refunded.
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1 | | (g) The provisions of the Administrative Review Law and the |
2 | | rules adopted pursuant to it shall apply to and govern all |
3 | | proceedings for the judicial review of final decisions of the |
4 | | Department in response to a protest filed by the employer under |
5 | | subsections (c) and (e) of this Section. Final decisions of the |
6 | | Department shall constitute "administrative decisions" as |
7 | | defined in Section 3-101 of the Code of Civil Procedure.
The |
8 | | Department may adopt any rules necessary to carry out its |
9 | | duties pursuant to this Section. |
10 | | (h) Whenever notice is required by this Section, it may be |
11 | | given or issued by mailing it by first-class mail addressed to |
12 | | the person concerned at his or her last known address.
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13 | | (i) All books and records and other papers and documents |
14 | | relevant to the determination of any penalty due under this |
15 | | Section shall, at all times during business hours of the day, |
16 | | be subject to inspection by the Department or its duly |
17 | | authorized agents and employees.
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18 | | (j) The Department may require employers to report |
19 | | information relevant to their compliance with this Act on |
20 | | returns otherwise due from the employers under Section 704A of |
21 | | the Illinois Income Tax Act and failure to provide the |
22 | | requested information on a return shall cause such return to be |
23 | | treated as unprocessable.
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24 | | (k) For purposes of any provision of State law allowing the |
25 | | Department or any other agency of this State to offset an |
26 | | amount owed to a taxpayer against a tax liability of that |
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1 | | taxpayer or allowing the Department to offset an overpayment of |
2 | | tax against any liability owed to the State, a penalty assessed |
3 | | under this Section shall be deemed to be a tax liability of the |
4 | | employer and any refund due to an employer shall be deemed to |
5 | | be an overpayment of tax of the employer.
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6 | | (l) Except as provided in this subsection, all information |
7 | | received by the Department from returns filed by an employer or |
8 | | from any investigation conducted under the provisions of this |
9 | | Act shall be confidential, except for official purposes within |
10 | | the Department or pursuant to official procedures for |
11 | | collection of penalties assessed under this Act. Nothing |
12 | | contained in this subsection shall prevent the Director from |
13 | | publishing or making available to the public reasonable |
14 | | statistics concerning the operation of this Act wherein the |
15 | | contents of returns are grouped into aggregates in such a way |
16 | | that the specific information of any employer shall not be |
17 | | disclosed. Nothing contained in this subsection shall prevent |
18 | | the Director from divulging information to an authorized |
19 | | representative of the employer or to any person pursuant to a |
20 | | request or authorization made by the employer or by an |
21 | | authorized representative of the employer.
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22 | | (m) Civil penalties collected under this Act and fees |
23 | | collected pursuant to subsection (n) of this Section shall be |
24 | | deposited into the Tax Compliance and Administration Fund. The |
25 | | Department may, subject to appropriation, use moneys in the |
26 | | fund to cover expenses it incurs in the performance of its |
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1 | | duties under this Act. Interest attributable to moneys in the |
2 | | Tax Compliance and Administration Fund shall be credited to the |
3 | | Tax Compliance and Administration Fund. |
4 | | (n) The Department may charge the Board a reasonable fee |
5 | | for its costs in performing its duties under this Section to |
6 | | the extent that such costs have not been recovered from |
7 | | penalties imposed under this Section.
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8 | | (o) This Section shall become operative 9 months after the |
9 | | Board notifies the Director that the Program has been |
10 | | implemented. Upon receipt of such notification from the Board, |
11 | | the Department shall immediately post on its Internet website a |
12 | | notice stating that this Section is operative and the date that |
13 | | it is first operative.
This notice shall include a statement |
14 | | that rather than enrolling employees in the Program under this |
15 | | Act, employers may sponsor an alternative arrangement, |
16 | | including, but not limited to, a defined benefit plan, 401(k) |
17 | | plan, a Simplified Employee Pension (SEP) plan, a Savings |
18 | | Incentive Match Plan for Employees (SIMPLE) plan, or an |
19 | | automatic payroll deduction IRA offered through a private |
20 | | provider. The Board shall provide a link to the vendor Internet |
21 | | website described in subsection (i) of Section 60 of this Act.
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22 | | (Source: P.A. 98-1150, eff. 6-1-15.) |
23 | | (820 ILCS 80/90) |
24 | | (This Section may contain text from a Public Act with a |
25 | | delayed effective date )
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