97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3739

 

Introduced 2/10/2012, by Sen. Sue Rezin

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 405/1512 new
820 ILCS 405/2100  from Ch. 48, par. 660

    Amends the Unemployment Insurance Act. Provides that, for an annual administrative fee not to exceed $5, an employer may pay its quarterly contributions due for wages paid in the first 3 quarters of 2013, 2014, and 2015 in specified equal installments. Contains provisions regarding: collection and deposit of the annual administrative fee; interest; and penalties. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Unemployment Insurance Act is amended by
5adding Section 1512 and by changing Section 2100 as follows:
 
6    (820 ILCS 405/1512 new)
7    Sec. 1512. Payments for 2013, 2014, and 2015 contributions.
8For an annual administrative fee not to exceed $5, an employer
9may pay its quarterly contributions due for wages paid in the
10first 3 quarters of 2013, 2014, and 2015 in equal installments
11if those contributions are paid as follows:
12        1. For contributions due for wages paid in the first
13    quarter of each year, one-fourth of the contributions due
14    must be paid on or before April 30, one-fourth must be paid
15    on or before July 31, one-fourth must be paid on or before
16    October 31, and one-fourth must be paid on or before
17    December 31.
18        2. In addition to the payments specified in paragraph
19    1, for contributions due for wages paid in the second
20    quarter of each year, one-third of the contributions due
21    must be paid on or before July 31, one-third must be paid
22    on or before October 31, and one-third must be paid on or
23    before December 31.

 

 

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1        3. In addition to the payments specified in paragraphs
2    1 and 2, for contributions due for wages paid in the third
3    quarter of each year, one-half of the contributions due
4    must be paid on or before October 31, and one-half must be
5    paid on or before December 31.
6        4. The annual administrative fee assessed for electing
7    to pay under the installment method shall be collected at
8    the time the employer makes the first installment payment
9    each year. The fee shall be segregated from the payment and
10    deposited as provided in Section 2100.
11        5. Interest does not accrue on any contribution that
12    becomes due for wages paid in the first 3 quarters of each
13    year if the employer pays the contribution in accordance
14    with paragraphs 1 through 4. Interest and fees continue to
15    accrue on prior delinquent contributions and commence
16    accruing on all contributions due for wages paid in the
17    first 3 quarters of each year which are not paid in
18    accordance with paragraphs 1 through 3. Penalties may be
19    assessed in accordance with this Act. The contributions due
20    for wages paid in the fourth quarter of 2013, 2014, and
21    2015 are not affected by this paragraph and are due and
22    payable in accordance with this Act.
 
23    (820 ILCS 405/2100)  (from Ch. 48, par. 660)
24    Sec. 2100. Handling of funds - Bond - Accounts.
25    A. All contributions and payments in lieu of contributions

 

 

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1collected under this Act, including but not limited to fund
2building receipts and receipts attributable to the surcharge
3established pursuant to Section 1506.5, together with any
4interest thereon; all penalties collected pursuant to this Act;
5any property or securities acquired through the use thereof;
6all moneys advanced to this State's account in the unemployment
7trust fund pursuant to the provisions of Title XII of the
8Social Security Act, as amended; all moneys directed for
9transfer from the Master Bond Fund or the Title XII Interest
10Fund to this State's account in the unemployment trust fund;
11all moneys received from the Federal government as
12reimbursements pursuant to Section 204 of the Federal-State
13Extended Unemployment Compensation Act of 1970, as amended; all
14moneys credited to this State's account in the unemployment
15trust fund pursuant to Section 903 of the Federal Social
16Security Act, as amended; all administrative fees collected
17from individuals pursuant to Section 900 or from employing
18units pursuant to Section 1512 or 2206.1; and all earnings of
19such property or securities and any interest earned upon any
20such moneys shall be paid or turned over to and held by the
21Director, as ex-officio custodian of the clearing account, the
22unemployment trust fund account and the benefit account, and by
23the State Treasurer, as ex-officio custodian of the special
24administrative account, separate and apart from all public
25moneys or funds of this State, as hereinafter provided. Such
26moneys shall be administered by the Director exclusively for

 

 

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1the purposes of this Act.
2    No such moneys shall be paid or expended except upon the
3direction of the Director in accordance with such regulations
4as he shall prescribe pursuant to the provisions of this Act.
5    The State Treasurer shall be liable on his general official
6bond for the faithful performance of his duties in connection
7with the moneys in the special administrative account provided
8for under this Act. Such liability on his official bond shall
9exist in addition to the liability upon any separate bond given
10by him. All sums recovered for losses sustained by the account
11shall be deposited in that account.
12    The Director shall be liable on his general official bond
13for the faithful performance of his duties in connection with
14the moneys in the clearing account, the benefit account and
15unemployment trust fund account provided for under this Act.
16Such liability on his official bond shall exist in addition to
17the liability upon any separate bond given by him. All sums
18recovered for losses sustained by any one of the accounts shall
19be deposited in the account that sustained such loss.
20    The Treasurer shall maintain for such moneys a special
21administrative account. The Director shall maintain for such
22moneys 3 separate accounts: a clearing account, a benefit
23account and an unemployment trust fund account. All moneys
24payable under this Act (except moneys requisitioned from this
25State's account in the unemployment trust fund and deposited in
26the benefit account and moneys directed for deposit into the

 

 

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1Special Programs Fund provided for under Section 2107),
2including but not limited to moneys directed for transfer from
3the Master Bond Fund or the Title XII Interest Fund to this
4State's account in the unemployment trust fund, upon receipt
5thereof by the Director, shall be immediately deposited in the
6clearing account; provided, however, that, except as is
7otherwise provided in this Section, interest and penalties
8shall not be deemed a part of the clearing account but shall be
9transferred immediately upon clearance thereof to the special
10administrative account; further provided that an amount not to
11exceed $90,000,000 in payments attributable to the surcharge
12established pursuant to Section 1506.5, including any interest
13thereon, shall not be deemed a part of the clearing account but
14shall be transferred immediately upon clearance thereof to the
15Title XII Interest Fund.
16    After clearance thereof, all other moneys in the clearing
17account shall be immediately deposited by the Director with the
18Secretary of the Treasury of the United States of America to
19the credit of the account of this State in the unemployment
20trust fund, established and maintained pursuant to the Federal
21Social Security Act, as amended, except fund building receipts,
22which shall be deposited into the Master Bond Fund. The benefit
23account shall consist of all moneys requisitioned from this
24State's account in the unemployment trust fund. The moneys in
25the benefit account shall be expended in accordance with
26regulations prescribed by the Director and solely for the

 

 

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1payment of benefits, refunds of contributions, interest and
2penalties under the provisions of the Act, the payment of
3health insurance in accordance with Section 410 of this Act,
4and the transfer or payment of funds to any Federal or State
5agency pursuant to reciprocal arrangements entered into by the
6Director under the provisions of Section 2700E, except that
7moneys credited to this State's account in the unemployment
8trust fund pursuant to Section 903 of the Federal Social
9Security Act, as amended, shall be used exclusively as provided
10in subsection B. For purposes of this Section only, to the
11extent allowed by applicable legal requirements, the payment of
12benefits includes but is not limited to the payment of
13principal on any bonds issued pursuant to the Illinois
14Unemployment Insurance Trust Fund Financing Act, exclusive of
15any interest or administrative expenses in connection with the
16bonds. The Director shall, from time to time, requisition from
17the unemployment trust fund such amounts, not exceeding the
18amounts standing to the State's account therein, as he deems
19necessary solely for the payment of such benefits, refunds, and
20funds, for a reasonable future period. The Director, as
21ex-officio custodian of the benefit account, which shall be
22kept separate and apart from all other public moneys, shall
23issue payment of such benefits, refunds, health insurance and
24funds solely from the moneys so received into the benefit
25account. However, after January 1, 1987, no payment shall be
26drawn on such benefit account unless at the time of drawing

 

 

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1there is sufficient money in the account to make the payment.
2The Director shall retain in the clearing account an amount of
3interest and penalties equal to the amount of interest and
4penalties to be refunded from the benefit account. After
5clearance thereof, the amount so retained shall be immediately
6deposited by the Director, as are all other moneys in the
7clearing account, with the Secretary of the Treasury of the
8United States. If, at any time, an insufficient amount of
9interest and penalties is available for retention in the
10clearing account, no refund of interest or penalties shall be
11made from the benefit account until a sufficient amount is
12available for retention and is so retained, or until the State
13Treasurer, upon the direction of the Director, transfers to the
14Director a sufficient amount from the special administrative
15account, for immediate deposit in the benefit account.
16    Any balance of moneys requisitioned from the unemployment
17trust fund which remains unclaimed or unpaid in the benefit
18account after the expiration of the period for which such sums
19were requisitioned shall either be deducted from estimates of
20and may be utilized for authorized expenditures during
21succeeding periods, or, in the discretion of the Director,
22shall be redeposited with the Secretary of the Treasury of the
23United States to the credit of the State's account in the
24unemployment trust fund.
25    Moneys in the clearing, benefit and special administrative
26accounts shall not be commingled with other State funds but

 

 

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1they shall be deposited as required by law and maintained in
2separate accounts on the books of a savings and loan
3association or bank.
4    No bank or savings and loan association shall receive
5public funds as permitted by this Section, unless it has
6complied with the requirements established pursuant to Section
76 of "An Act relating to certain investments of public funds by
8public agencies", approved July 23, 1943, as now or hereafter
9amended.
10    B. Moneys credited to the account of this State in the
11unemployment trust fund by the Secretary of the Treasury of the
12United States pursuant to Section 903 of the Social Security
13Act may be requisitioned from this State's account and used as
14authorized by Section 903. Any interest required to be paid on
15advances under Title XII of the Social Security Act shall be
16paid in a timely manner and shall not be paid, directly or
17indirectly, by an equivalent reduction in contributions or
18payments in lieu of contributions from amounts in this State's
19account in the unemployment trust fund. Such moneys may be
20requisitioned and used for the payment of expenses incurred for
21the administration of this Act, but only pursuant to a specific
22appropriation by the General Assembly and only if the expenses
23are incurred and the moneys are requisitioned after the
24enactment of an appropriation law which:
25        1. Specifies the purpose or purposes for which such
26    moneys are appropriated and the amount or amounts

 

 

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1    appropriated therefor;
2        2. Limits the period within which such moneys may be
3    obligated to a period ending not more than 2 years after
4    the date of the enactment of the appropriation law; and
5        3. Limits the amount which may be obligated during any
6    fiscal year to an amount which does not exceed the amount
7    by which (a) the aggregate of the amounts transferred to
8    the account of this State pursuant to Section 903 of the
9    Social Security Act exceeds (b) the aggregate of the
10    amounts used by this State pursuant to this Act and charged
11    against the amounts transferred to the account of this
12    State.
13    For purposes of paragraph (3) above, amounts obligated for
14administrative purposes pursuant to an appropriation shall be
15chargeable against transferred amounts at the exact time the
16obligation is entered into. The appropriation, obligation, and
17expenditure or other disposition of money appropriated under
18this subsection shall be accounted for in accordance with
19standards established by the United States Secretary of Labor.
20    Moneys appropriated as provided herein for the payment of
21expenses of administration shall be requisitioned by the
22Director as needed for the payment of obligations incurred
23under such appropriation. Upon requisition, such moneys shall
24be deposited with the State Treasurer, who shall hold such
25moneys, as ex-officio custodian thereof, in accordance with the
26requirements of Section 2103 and, upon the direction of the

 

 

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1Director, shall make payments therefrom pursuant to such
2appropriation. Moneys so deposited shall, until expended,
3remain a part of the unemployment trust fund and, if any will
4not be expended, shall be returned promptly to the account of
5this State in the unemployment trust fund.
6    C. The Governor is authorized to apply to the United States
7Secretary of Labor for an advance or advances to this State's
8account in the unemployment trust fund pursuant to the
9conditions set forth in Title XII of the Federal Social
10Security Act, as amended. The amount of any such advance may be
11repaid from this State's account in the unemployment trust
12fund.
13    D. The Director shall annually on or before the first day
14of March report in writing to the Employment Security Advisory
15Board concerning the deposits into and expenditures from this
16State's account in the Unemployment Trust Fund.
17(Source: P.A. 97-1, eff. 3-31-11; 97-621, eff. 11-18-11.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.