HB3404 98TH GENERAL ASSEMBLY

LRB098 10158 JLS 40317 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3404

Introduced , by Rep. Dwight Kay

SYNOPSIS AS INTRODUCED:

820 ILCS 405/1506.7 new

Amends the Unemployment Insurance Act. Provides that an employer that has been assigned a contribution rate based upon an experience rating, and has no amounts past due under the Act, may, upon the payment of an amount equivalent to any portion or all of the unemployment benefits used in computing the experience rating, obtain a cancellation of unemployment benefits used equal to the payment made. Contains provisions regarding: application of payments; computation of a new experience rating and contribution rate; and the method and time for making payments.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning employment.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Unemployment Insurance Act is amended by adding Section 1506.7 as follows:

(820 ILCS 405/1506.7 new)

Sec. 1506.7. Contribution rate buydown.

(a) An employer that has been assigned a contribution rate based upon an experience rating, and has no amounts past due under this Act, may, upon the payment of an amount equivalent to any portion or all of the unemployment benefits used in computing the experience rating, obtain a cancellation of unemployment benefits used equal to the payment made. The payment is applied to the most recent unemployment benefits paid that are used in computing the experience rating. Upon the payment, the Department must compute a new experience rating for the employer, and compute a new contribution rate.

(b) Payments for a contribution rate buydown may be made only by electronic payment and must be received within 120 calendar days from the beginning of the calendar year for which the contribution rate is effective.