Sen. John J. Cullerton

Filed: 5/30/2014

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 4733

2    AMENDMENT NO. ______. Amend House Bill 4733 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. Short title. This Act may be cited as the
5Illinois State Training and Employment Program (I-STEP) Act.
 
6    Section 5. Definitions. In this Act:
7    "Agreement" means a written agreement between the
8Department of Commerce and Economic Opportunity or the
9Department of Employment Security and an employer or a business
10association, labor organization, local workforce investment
11board, community college, or nonprofit corporation concerning
12a project and any amendments to that agreement.
13    "Base employment" means the highest number of workers
14employed by the employer in the last 4 completed quarters
15preceding the effective date of the agreement establishing the
16project. The Department of Employment Security shall verify an

 

 

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1employer's base employment through means including, but not
2limited to, wage reports submitted pursuant to the Unemployment
3Insurance Act.
4    "Business association" means an organization formed under
5Section 501(c)(6) of the Internal Revenue Code or a generally
6recognized entity or organization that represents the
7interests of multiple businesses in Illinois.
8    "Community college" means a community college as defined in
9Section 1-2 of the Public Community College Act.
10    "Credit" or "I-STEP Credit" means an amount agreed to in an
11agreement with an employer under this Act that does not exceed
12the Incremental Income Tax attributable to the employer's
13project.
14    "Employer" means a for-profit, legal entity, including,
15but not limited to, a sole proprietorship, partnership,
16corporation, joint venture, association, or cooperative, that
17has in its employ one or more individuals performing services
18for it.
19    "Federal minimum wage" means the minimum wage as defined by
20the federal Fair Labor Standards Act (29 U.S.C. 201 et seq.).
21    "Full-time, permanent job" means a job in which the
22employee works for the employer at a rate of at least 35 hours
23per week.
24    "I-STEP Fund" means the fund established in Section 20 of
25this Act.
26    "Incremental income tax" means the total amount withheld

 

 

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1during the taxable year under Article 7 of the Illinois Income
2Tax Act from the compensation paid to employees in new jobs
3that are the subject of an agreement.
4    "Labor organization" means an organization defined as a
5"labor organization" under the National Labor Relations Act.
6    "New job" means a full-time, permanent job located in this
7State that meets all of the following:
8        (1) The job results in a net increase in the base
9    employment in this State for the employer.
10        (2) The job is not being filled or refilled as a result
11    of a layoff or to replace an employee who is or has been on
12    strike or locked out by the employer.
13        (3) The job is not a job that existed in the employer's
14    business within this State within the last 4 completed
15    quarters preceding the effective date of the agreement.
16        (4) The wage paid for the job is equal to or exceeds
17    175% of the federal minimum wage on the effective date of
18    the agreement.
19        (5) The employer has posted the job on the
20    IllinoisJobLink.com System or its successor system for at
21    least 2 weeks preceding the effective date of the agreement
22    and did not locate an individual who has the requisite
23    expertise, experience, and background, except that this
24    requirement does not apply if either (i) the job would be
25    covered by a collective bargaining agreement between the
26    employer and a labor organization that includes provisions

 

 

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1    concerning hiring or training or (ii) the employer does not
2    have employees performing services in this State as of the
3    effective date of the agreement.
4    A new job may not be filled by a child, grandchild, parent,
5or spouse, other than a spouse who is legally separated from
6the individual, of any individual who has a direct or indirect
7ownership interest of at least 5% in the profits, capital, or
8value of the employer.
9    "Program costs" means all necessary and incidental costs of
10providing program services in connection with a project,
11including administrative costs.
12    "Program services" includes, but is not limited to, any of
13the following items needed to hire or train a worker for a new
14job:
15        (1) Training or retraining including, but not limited
16    to, training or retraining provided by apprenticeship and
17    training programs approved by and registered with the
18    United States Department of Labor's Bureau of
19    Apprenticeship and Training.
20        (2) Adult basic education and job-related instruction.
21        (3) Developmental, readiness, and remedial education.
22        (4) Vocational and skill-assessment services and
23    testing.
24        (5) Training facilities, equipment, materials, and
25    supplies.
26    "Project" means an arrangement for program services that

 

 

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1are the subject of an agreement entered into under this Act.
 
2    Section 10. Agreement.
3    (a) The Director of Commerce and Economic Opportunity and
4the Director of Employment Security shall each have the power
5to enter into an agreement to establish a project with an
6employer. The agreement may be directly with an employer or
7with a business association, labor organization, local
8workforce investment board, community college, or nonprofit
9corporation acting on behalf of an employer. The Directors of
10Commerce and Economic Opportunity and Employment Security may
11consult with the I-STEP Panel before entering into an
12agreement.
13    (b) An agreement shall, at a minimum:
14        (1) State the project's total program costs.
15        (2) State that the employer may use the I-STEP Credit
16    pursuant to Section 15 to reimburse up to 75% of the
17    project's total program costs. If the Department of
18    Employment Security or the Department of Commerce and
19    Economic Opportunity determines that the project will
20    reduce long-term unemployment in the State, the agreement
21    shall state that the employer may use the I-STEP Credit to
22    reimburse up to 100% of the project's total program costs.
23        (3) Describe the program services to be provided.
24        (4) Specify the number of new jobs covered by the
25    project.

 

 

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1        (5) Include a certification by the employer that it
2    shall (i) offer to assume the collective bargaining
3    obligations of a prior employer, including any existing
4    collective bargaining agreement with the bargaining
5    representative of any existing collective bargaining unit
6    or units performing substantially similar work to the work
7    being performed by any employee in a new job and (ii) offer
8    employment to all employees currently employed in any
9    existing bargaining unit performing substantially similar
10    work to the work being performed by any employee in a new
11    job.
12        (6) Include a provision that fixes the maximum amount
13    of I-STEP Credit for the reimbursement of program costs for
14    each taxable year.
15        (7) Specify the duration of the I-STEP Credit and the
16    first taxable year for which the Credit may be claimed.
17        (8) Require that an employer shall at all times keep
18    proper books of record and account, in accordance with
19    generally accepted accounting principles consistently
20    applied, with the books, records, or papers related to the
21    agreement in the custody or control of the employer open
22    for reasonable inspection and audits by the Department of
23    Commerce and Economic Opportunity and Department of
24    Employment Security and including, without limitation, the
25    making of copies of the books, records, or papers and the
26    inspection or appraisal of any of the employer or project

 

 

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1    assets related to the project.
2        (9) Indicate the amount of administrative costs that
3    the employer will be required to deposit into the I-STEP
4    Fund.
5        (10) Contain other provisions the Department of
6    Commerce and Economic Opportunity and Department of
7    Employment Security consider appropriate or necessary.
8    (c) The administrative costs of the Department of Commerce
9and Economic Opportunity with respect to each project shall not
10exceed 5% of the program costs. The Department of Employment
11Security's administrative costs with respect to each project
12shall not exceed 5% of the program costs. In the case of an
13agreement between the Department of Commerce and Economic
14Opportunity or the Department of Employment Security and a
15business association, labor organization, local workforce
16investment board, community college, or nonprofit corporation
17acting on behalf of an employer, the administrative costs of
18the business association, labor organization, local workforce
19investment board, community college, or nonprofit corporation
20shall not exceed 5% of the program costs and shall be in
21addition to the program costs of the Department of Commerce and
22Economic Opportunity and the Department of Employment
23Security.
24    (d) The Department of Commerce and Economic Opportunity and
25the Department of Employment Security shall annually report to
26the General Assembly, no later than December 31, on the new

 

 

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1jobs created and amount of credits for which employers have
2been certified as eligible pursuant to this Act.
3    (e) A summary of each agreement shall be posted on the
4website maintained pursuant to the Corporate Accountability
5for Tax Expenditures Act.
 
6    Section 15. I-STEP Credit.
7    (a) Subject to the conditions set forth in this Act, for
8any taxable year ending on or after December 31, 2014, an
9employer is entitled to a credit against its obligation to pay
10over withholding under Section 704A of the Illinois Income Tax
11Act, if the employer is awarded a Credit under this Act for
12that taxable year.
13    (b) The duration of the credit may not exceed 10 taxable
14years. The credit may be stated as a percentage of the
15incremental income tax attributable to the employer's project
16and shall include a fixed dollar limitation that shall not
17exceed the amount calculated pursuant to paragraph (2) of
18subsection (b) of Section 10.
19    (c) An employer claiming a credit under this Act shall
20submit to the Department of Revenue a copy of the certificate
21of verification under this Act for the taxable year. However,
22failure to submit a copy of the certificate with the employer's
23tax return shall not invalidate a claim for a credit.
24    (d) For an employer to be eligible for a certificate of
25verification, the employer shall provide proof as required by

 

 

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1the Department of Commerce and Economic Opportunity or the
2Department of Employment Security prior to the end of each
3calendar year including, but not limited to, attestation by the
4employer:
5        (1) regarding the number of new jobs specified in its
6    agreement and into which it has hired employees;
7        (2) that employees received the program services
8    specified in the agreement; and
9        (3) regarding the amount of program costs incurred by
10    the employer with respect to those new jobs.
11    (e) For a certificate of verification to be valid, it shall
12be signed by the Director of Commerce and Economic Opportunity
13or the Director of Employment Security.
 
14    Section 20. I-STEP Fund.
15    (a) There is established in the State treasury a special
16fund to be known as the I-STEP Fund.
17    (b) Money received, earned, or collected pursuant to this
18Act shall be credited to the I-STEP Fund. All interest earnings
19on amounts within the I-STEP Fund shall accrue to the I-STEP
20Fund. The I-STEP Fund may include such funds and accounts as
21are necessary for the implementation and administration of this
22Act. All sums recovered for losses sustained by the I-STEP Fund
23shall be deposited into the I-STEP Fund.
24    (c) Moneys may be paid or expended from the I-STEP Fund for
25the payment of administrative costs associated with projects

 

 

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1established pursuant to this Act.
2    (d) Any payments or expenditures from the I-STEP Fund,
3other than administrative costs associated with projects
4established pursuant to this Act, shall require the approval of
5both the Director of Employment Security and the Director of
6Commerce and Economic Opportunity.
 
7    Section 25. I-STEP Panel.
8    (a) There is created the I-STEP Panel. The I-STEP Panel
9shall consist of the Director of Commerce and Economic
10Opportunity and the Director of Employment Security, who shall
11serve as co-chairpersons, and 11 members who shall be appointed
12by the Governor with the advice and consent of the Senate.
13    (b) The members of the I-STEP Panel shall include a
14representative from each of the following businesses and
15groups: manufacturing, small business, a local or State
16business association or chamber of commerce, building and
17construction trades unions, a labor organization representing
18workers engaged in manufacturing, a labor organization
19representing workers engaged in service professions, a
20not-for-profit corporation providing workforce training, a
21community college, and a local workforce investment board.
22There shall be 2 at-large voting members who reside within
23counties or municipalities that have had an annual average
24unemployment rate of at least 120% of the State's annual
25average unemployment rate as reported by Department of

 

 

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1Employment Security for the 5 years preceding the date of
2appointment. All appointments shall be made in a geographically
3diverse manner.
4    (c) For the initial appointments to the I-STEP Panel, 5
5members shall be appointed to serve a 2-year term and 6 members
6shall be appointed to serve a 4-year term. Thereafter, all
7appointments shall be for terms of 4 years. The initial term of
8appointed members shall commence on January 1, 2015.
9Thereafter, the terms of appointed members shall commence on
10January 1, except in the case of an appointment to fill a
11vacancy. Vacancies occurring among the members shall be filled
12in the same manner as the original appointment for the
13remainder of the unexpired term. For a vacancy occurring when
14the Senate is not in session, the Governor may make a temporary
15appointment until the next meeting of the Senate when a person
16shall be nominated to fill the office, and, upon confirmation
17by the Senate, he or she shall hold office during the remainder
18of the term. A vacancy in membership does not impair the
19ability of a quorum to exercise all rights and perform all
20duties of the I-STEP Panel. A member is eligible for
21reappointment.
22    (d) The I-STEP Panel shall advise the Department of
23Commerce and Economic Opportunity and Department of Employment
24Security on the implementation and administration of this Act.
25    (e) Members of the I-STEP Panel shall serve without
26compensation, but shall be reimbursed for any necessary

 

 

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1expenses from funds appropriated for that purpose.
 
2    Section 30. Powers of the Departments. In addition to those
3powers granted under the Civil Administrative Code of Illinois,
4the Department of Commerce and Economic Opportunity and the
5Department of Employment Security are granted and shall have
6all the powers necessary or convenient to carry out and
7effectuate the purposes and provisions of this Act. These
8powers shall include, but are not limited to, power and
9authority to:
10        (1) Jointly promulgate procedures or rules necessary
11    and appropriate for the administration of this Act,
12    establish forms for applications, notifications,
13    contracts, or any other agreements, and accept
14    applications at any time during the year.
15        (2) Establish, negotiate, and effectuate any term,
16    agreement, or other document with any person necessary or
17    appropriate to accomplish the purposes of this Act, and to
18    consent, subject to the provisions of any agreement with
19    another party, to the modification or restructuring of any
20    agreement made pursuant to this Act to which the Department
21    of Commerce and Economic Opportunity or the Department of
22    Employment Security is a party.
23        (3) Fix, determine, charge, and collect any premiums,
24    fees, charges, costs, and expenses from employers,
25    including, without limitation, application fees,

 

 

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1    commitment fees, program fees, financing charges, or
2    publication fees, deemed appropriate to pay expenses
3    necessary or incident to the (i) administration, staffing,
4    or operation in connection with the Department of Commerce
5    and Economic Opportunity's or the Department of Employment
6    Security's activities under this Act, (ii) preparation,
7    implementation, and enforcement of the terms of the
8    agreement, or (iii) consultation, advisory and legal fees
9    and other costs; however, all fees and expenses incident
10    thereto shall be the responsibility of the employer.
11        (4) Provide for sufficient personnel to permit
12    administration, staffing, operation, and related support
13    required to adequately discharge its duties and
14    responsibilities described in this Act from funds made
15    available for that purpose.
16        (5) Gather information and conduct inquiries, in the
17    manner and by methods as deemed desirable including,
18    without limitation, gathering information with respect to
19    employers for the purpose of making any designations or
20    certifications necessary or desirable or to gather
21    information to assist the I-STEP Panel with any
22    recommendation or guidance in the furtherance of the
23    purposes of this Act.
 
24    Section 80. The Public Employment Office Act is amended by
25changing Section 7 as follows:
 

 

 

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1    (20 ILCS 1015/7)  (from Ch. 48, par. 183)
2    Sec. 7. No fee or compensation shall be charged or received
3directly or indirectly from persons applying for employment or
4help through said free employment offices, and any officer or
5employee of the Department of Employment Security who shall
6accept, directly or indirectly any fee or compensation from any
7applicant or from his or her representative shall be guilty of
8a Class C misdemeanor, except that this Section does not
9prohibit referral of an individual to an apprenticeship program
10that is approved by and registered with the United States
11Department of Labor, Bureau of Apprenticeship and Training and
12charges an application fee of $50 or less.
13(Source: P.A. 83-1503.)
 
14    Section 85. The State Finance Act is amended by adding
15Section 5.855 as follows:
 
16    (30 ILCS 105/5.855 new)
17    Sec. 5.855. The I-STEP Fund.
 
18    Section 90. The Unemployment Insurance Act is amended by
19changing Sections 206.1, 225, 245, 500, 611, 702, 1402, 1500,
201506.1, 2101, 2201, 2201.1, and 2401 and by adding Sections 502
21and 1402.1 as follows:
 

 

 

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1    (820 ILCS 405/206.1)
2    Sec. 206.1. Employment; employee leasing company.
3    A. For purposes of this Section:
4        1. "Client" means an individual or entity which has
5    contracted with an employee leasing company to supply it
6    with or assume responsibility for personnel management of
7    one or more workers to perform services on an on-going
8    basis rather than under a temporary help arrangement, as
9    defined in Section 15 of the Employee Leasing Company Act.
10        2. "Employee leasing company" means an individual or
11    entity which contracts with a client to supply or assume
12    responsibility for personnel management of one or more
13    workers to perform services for the client on an on-going
14    basis rather than under a temporary help arrangement, as
15    defined in Section 15 of the Employee Leasing Company Act.
16    B. Subject to subsection C, services performed by an
17individual under a contract between an employee leasing company
18and client, including but not limited to services performed in
19the capacity of a corporate officer of the client, are services
20in "employment" of the employee leasing company and are not
21services in "employment" of the client if all of the following
22conditions are met:
23        1. The employee leasing company pays the individual for
24    the services directly from its own accounts; and
25        2. The employee leasing company, exclusively or in
26    conjunction with the client, retains the right to direct

 

 

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1    and control the individual in the performance of the
2    services; and
3        3. The employee leasing company, exclusively or in
4    conjunction with the client, retains the right to hire and
5    terminate the individual; and
6        4. The employee leasing company reports each client in
7    the manner the Director prescribes by regulation; and .
8        5. The employee leasing company has provided, and there
9    remains in effect, such irrevocable indemnification, as
10    the Director may require by rule, to create a primary
11    obligation on the part of the provider to the Illinois
12    Department of Employment Security for obligations of the
13    employee leasing company accrued and final under this Act.
14    The rule may prescribe the form the indemnification shall
15    take including, but not limited to, a surety bond or an
16    irrevocable standby letter of credit. The obligation
17    required pursuant to the rule shall not exceed $1,000,000.
18    C. Notwithstanding subsection B, services performed by an
19individual under a contract between an employee leasing company
20and client, including but not limited to services performed in
21the capacity of a corporate officer of the client, are services
22in "employment" of the client and are not services in
23"employment" of the employee leasing company if:
24        1. The contribution rate, or, where applicable, the
25    amended contribution rate, of the client is greater than
26    the sum of the fund building rate established for the year

 

 

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1    pursuant to Section 1506.3 of this Act plus the greater of
2    2.7% or 2.7% times the adjusted state experience factor for
3    the year; and
4        2. The contribution rate, or, where applicable, the
5    amended contribution rate, of the employee leasing company
6    is less than the contribution rate, or, where applicable,
7    the amended contribution rate of the client by more than
8    1.5% absolute.
9    D. Except as provided in this Section and notwithstanding
10any other provision of this Act to the contrary, services
11performed by an individual under a contract between an employee
12leasing company and client, including but not limited to
13services performed in the capacity of a corporate officer of
14the client, are services in "employment" of the client and are
15not services in "employment" of the employee leasing company.
16    E. Nothing in this Section shall be construed or used to
17effect the existence of an employment relationship other than
18for purposes of this Act.
19(Source: P.A. 91-890, eff. 7-6-00.)
 
20    (820 ILCS 405/225)  (from Ch. 48, par. 335)
21    Sec. 225. This Section, and not Section 212 of this Act,
22controls the determination of employment status for services
23performed by individuals in the delivery or distribution of
24newspapers or shopping news.
25    (A) The term "employment" shall not include services

 

 

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1performed by an individual under the age of eighteen in the
2delivery or distribution of newspapers or shopping news.
3    (B) The term "employment" does not include the performance
4of freelance editorial or photographic work for a newspaper.
5    (B-5) The employment status of individuals engaged in the
6delivery of newspapers or shopping news shall be determined as
7provided in this subsection. The term "employment" does not
8include the delivery or distribution of newspapers or shopping
9news if at least one of the following 4 elements is present:
10        (1) The individual performing the services gains the
11    profits and bears the losses of the services.
12        (2) The person or firm for whom the services are
13    performed does not represent the individual as an employee
14    to its customers.
15        (3) The individual hires his or her own helpers or
16    employees, without the need for approval from the person or
17    firm for whom the services are performed, and pays them
18    without reimbursement from that person or firm.
19        (4) Once the individual leaves the premises of the
20    person or firm for whom the services are performed or the
21    printing plant, the individual operates free from the
22    direction and control of the person or firm, except as is
23    necessary for the person or firm to ensure quality control
24    of the newspapers or shopping news, including, but not
25    limited to, the condition of the newspapers or shopping
26    news upon delivery and the location and timing of delivery

 

 

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1    of the newspapers or shopping news.
2    (C) Notwithstanding subsection (B-5), the The term
3"employment" does not include the delivery or distribution of
4newspapers or shopping news to the ultimate consumer if:
5        (1) substantially all of the remuneration for the
6    performance of the services is directly related to sales,
7    "per piece" fees, or other output, rather than to the
8    number of hours worked; and
9        (2) the services are performed under a written contract
10    between the individual and the person or firm for whom the
11    services are performed, and the contract provides that the
12    individual will not be treated as an employee for federal
13    tax purposes.
14        (3) Delivery or distribution to the ultimate consumer
15    does not include:
16            (i) delivery or distribution for sale or resale,
17        including, but not limited to, distribution to a
18        newsrack or newsbox, salesperson, newsstand or retail
19        establishment;
20            (ii) distribution for further distribution,
21        regardless of subsequent sale or resale.
22    (D) Subsections (B-5) and Subsection (C) shall not apply in
23the case of any individual who provides delivery or
24distribution services for a newspaper pursuant to the terms of
25a collective bargaining agreement and shall not be construed to
26alter or amend the application or interpretation of any

 

 

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1existing collective bargaining agreement. Further, subsections
2(B-5) and subsection (C) shall not be construed as evidence of
3the existence or non-existence of an employment relationship
4under any other Sections of this Act or other existing laws.
5    (E) Subsections (B), (B-5), and (C) shall not apply to
6services that are required to be covered as a condition of
7approval of this Act by the United States Secretary of Labor
8under Section 3304 (a)(6)(A) of the Federal Unemployment Tax
9Act.
10(Source: P.A. 87-1178.)
 
11    (820 ILCS 405/245)  (from Ch. 48, par. 370)
12    Sec. 245. Coordination with Federal Unemployment Tax Act.
13Notwithstanding any provisions of this Act to the contrary,
14excepting the exemptions from the definition of employment
15contained in Sections 212.1, 217.1, 217.2, 226, and 231 and
16subsections (B), (B-5), and (C) B and C of Section 225:
17    A. The term "employer" includes any employing unit which is
18an "employer" under the provisions of the Federal Unemployment
19Tax Act, or which is required, pursuant to such Act, to be an
20"employer" under this Act as a condition for the Federal
21approval of this Act requisite to the full tax credit, against
22the tax imposed by the Federal Act, for contributions paid by
23employers pursuant to this Act.
24    B. The term "employment" includes any services performed
25within the State which constitute "employment" under the

 

 

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1provisions of the Federal Unemployment Tax Act, or which are
2required, pursuant to such Act, to be "employment" under this
3Act as a condition for the Federal approval of this Act
4requisite to the full tax credit, against the tax imposed by
5the Federal Act, for contributions paid by employers pursuant
6to this Act.
7    C. The term "wages" includes any remuneration for services
8performed within this State which is subject to the payment of
9taxes under the provisions of the Federal Unemployment Tax Act.
10(Source: P.A. 89-252, eff. 8-8-95; 89-649, eff. 8-9-96.)
 
11    (820 ILCS 405/500)  (from Ch. 48, par. 420)
12    Sec. 500. Eligibility for benefits. An unemployed
13individual shall be eligible to receive benefits with respect
14to any week only if the Director finds that:
15    A. He has registered for work at and thereafter has
16continued to report at an employment office in accordance with
17such regulations as the Director may prescribe, except that the
18Director may, by regulation, waive or alter either or both of
19the requirements of this subsection as to individuals attached
20to regular jobs, and as to such other types of cases or
21situations with respect to which he finds that compliance with
22such requirements would be oppressive or inconsistent with the
23purposes of this Act, provided that no such regulation shall
24conflict with Section 400 of this Act.
25    B. He has made a claim for benefits with respect to such

 

 

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1week in accordance with such regulations as the Director may
2prescribe.
3    C. He is able to work, and is available for work; provided
4that during the period in question he was actively seeking work
5and he has certified such. Whenever requested to do so by the
6Director, the individual shall, in the manner the Director
7prescribes by regulation, inform the Department of the places
8at which he has sought work during the period in question.
9Nothing in this subsection shall limit the Director's approval
10of alternate methods of demonstrating an active search for work
11based on regular reporting to a trade union office.
12        1. If an otherwise eligible individual is unable to
13    work or is unavailable for work on any normal workday of
14    the week, he shall be eligible to receive benefits with
15    respect to such week reduced by one-fifth of his weekly
16    benefit amount for each day of such inability to work or
17    unavailability for work. For the purposes of this
18    paragraph, an individual who reports on a day subsequent to
19    his designated report day shall be deemed unavailable for
20    work on his report day if his failure to report on that day
21    is without good cause, and on each intervening day, if any,
22    on which his failure to report is without good cause. As
23    used in the preceding sentence, "report day" means the day
24    which has been designated for the individual to report to
25    file his claim for benefits with respect to any week. This
26    paragraph shall not be construed so as to effect any change

 

 

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1    in the status of part-time workers as defined in Section
2    407.
3        2. An individual shall be considered to be unavailable
4    for work on days listed as whole holidays in "An Act to
5    revise the law in relation to promissory notes, bonds, due
6    bills and other instruments in writing," approved March 18,
7    1874, as amended; on days which are holidays in his
8    religion or faith, and on days which are holidays according
9    to the custom of his trade or occupation, if his failure to
10    work on such day is a result of the holiday. In determining
11    the claimant's eligibility for benefits and the amount to
12    be paid him, with respect to the week in which such holiday
13    occurs, he shall have attributed to him as additional
14    earnings for that week an amount equal to one-fifth of his
15    weekly benefit amount for each normal work day on which he
16    does not work because of a holiday of the type above
17    enumerated.
18        3. An individual shall be deemed unavailable for work
19    if, after his separation from his most recent employing
20    unit, he has removed himself to and remains in a locality
21    where opportunities for work are substantially less
22    favorable than those in the locality he has left.
23        4. An individual shall be deemed unavailable for work
24    with respect to any week which occurs in a period when his
25    principal occupation is that of a student in attendance at,
26    or on vacation from, a public or private school.

 

 

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1        5. Notwithstanding any other provisions of this Act, an
2    individual shall not be deemed unavailable for work or to
3    have failed actively to seek work, nor shall he be
4    ineligible for benefits by reason of the application of the
5    provisions of Section 603, with respect to any week,
6    because he is enrolled in and is in regular attendance at a
7    training course approved for him by the Director:
8            (a) but only if, with respect to that week, the
9        individual presents, upon request, to the claims
10        adjudicator referred to in Section 702 a statement
11        executed by a responsible person connected with the
12        training course, certifying that the individual was in
13        full-time attendance at such course during the week.
14        The Director may approve such course for an individual
15        only if he finds that (1) reasonable work opportunities
16        for which the individual is fitted by training and
17        experience do not exist in his locality; (2) the
18        training course relates to an occupation or skill for
19        which there are, or are expected to be in the immediate
20        future, reasonable work opportunities in his locality;
21        (3) the training course is offered by a competent and
22        reliable agency, educational institution, or employing
23        unit; (4) the individual has the required
24        qualifications and aptitudes to complete the course
25        successfully; and (5) the individual is not receiving
26        and is not eligible (other than because he has claimed

 

 

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1        benefits under this Act) for subsistence payments or
2        similar assistance under any public or private
3        retraining program: Provided, that the Director shall
4        not disapprove such course solely by reason of clause
5        (5) if the subsistence payment or similar assistance is
6        subject to reduction by an amount equal to any benefits
7        payable to the individual under this Act in the absence
8        of the clause. In the event that an individual's weekly
9        unemployment compensation benefit is less than his
10        certified training allowance, that person shall be
11        eligible to receive his entire unemployment
12        compensation benefits, plus such supplemental training
13        allowances that would make an applicant's total weekly
14        benefit identical to the original certified training
15        allowance.
16            (b) The Director shall have the authority to grant
17        approval pursuant to subparagraph (a) above prior to an
18        individual's formal admission into a training course.
19        Requests for approval shall not be made more than 30
20        days prior to the actual starting date of such course.
21        Requests shall be made at the appropriate unemployment
22        office.
23            (c) The Director shall for purposes of paragraph C
24        have the authority to issue a blanket approval of
25        training programs implemented pursuant to the federal
26        Workforce Investment Act of 1998 if both the training

 

 

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1        program and the criteria for an individual's
2        participation in such training meet the requirements
3        of this paragraph C.
4            (d) Notwithstanding the requirements of
5        subparagraph (a), the Director shall have the
6        authority to issue blanket approval of training
7        programs implemented under the terms of a collective
8        bargaining agreement.
9            (e) Notwithstanding any other provision of this
10        Act, program services implemented under the Illinois
11        State Training and Employment Program (I-STEP) Act
12        shall constitute training approved pursuant to this
13        paragraph C.
14        6. Notwithstanding any other provisions of this Act, an
15    individual shall not be deemed unavailable for work or to
16    have failed actively to seek work, nor shall he be
17    ineligible for benefits, by reason of the application of
18    the provisions of Section 603 with respect to any week
19    because he is in training approved under Section 236 (a)(1)
20    of the federal Trade Act of 1974, nor shall an individual
21    be ineligible for benefits under the provisions of Section
22    601 by reason of leaving work voluntarily to enter such
23    training if the work left is not of a substantially equal
24    or higher skill level than the individual's past adversely
25    affected employment as defined under the federal Trade Act
26    of 1974 and the wages for such work are less than 80% of

 

 

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1    his average weekly wage as determined under the federal
2    Trade Act of 1974.
3    D. If his benefit year begins prior to July 6, 1975 or
4subsequent to January 2, 1982, he has been unemployed for a
5waiting period of 1 week during such benefit year. If his
6benefit year begins on or after July 6, l975, but prior to
7January 3, 1982, and his unemployment continues for more than
8three weeks during such benefit year, he shall be eligible for
9benefits with respect to each week of such unemployment,
10including the first week thereof. An individual shall be deemed
11to be unemployed within the meaning of this subsection while
12receiving public assistance as remuneration for services
13performed on work projects financed from funds made available
14to governmental agencies for such purpose. No week shall be
15counted as a week of unemployment for the purposes of this
16subsection:
17        1. Unless it occurs within the benefit year which
18    includes the week with respect to which he claims payment
19    of benefits, provided that, for benefit years beginning
20    prior to January 3, 1982, this requirement shall not
21    interrupt the payment of benefits for consecutive weeks of
22    unemployment; and provided further that the week
23    immediately preceding a benefit year, if part of one
24    uninterrupted period of unemployment which continues into
25    such benefit year, shall be deemed (for the purpose of this
26    subsection only and with respect to benefit years beginning

 

 

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1    prior to January 3, 1982, only) to be within such benefit
2    year, as well as within the preceding benefit year, if the
3    unemployed individual would, except for the provisions of
4    the first paragraph and paragraph 1 of this subsection and
5    of Section 605, be eligible for and entitled to benefits
6    for such week.
7        2. If benefits have been paid with respect thereto.
8        3. Unless the individual was eligible for benefits with
9    respect thereto except for the requirements of this
10    subsection and of Section 605.
11    E. With respect to any benefit year beginning prior to
12January 3, 1982, he has been paid during his base period wages
13for insured work not less than the amount specified in Section
14500E of this Act as amended and in effect on October 5, 1980.
15With respect to any benefit year beginning on or after January
163, 1982, he has been paid during his base period wages for
17insured work equal to not less than $1,600, provided that he
18has been paid wages for insured work equal to at least $440
19during that part of his base period which does not include the
20calendar quarter in which the wages paid to him were highest.
21    F. During that week he has participated in reemployment
22services to which he has been referred, including but not
23limited to job search assistance services, pursuant to a
24profiling system established by the Director by rule in
25conformity with Section 303(j)(1) of the federal Social
26Security Act, unless the Director determines that:

 

 

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1        1. the individual has completed such services; or
2        2. there is justifiable cause for the claimant's
3    failure to participate in such services.
4    This subsection F is added by this amendatory Act of 1995
5to clarify authority already provided under subsections A and C
6in connection with the unemployment insurance claimant
7profiling system required under subsections (a)(10) and (j)(1)
8of Section 303 of the federal Social Security Act as a
9condition of federal funding for the administration of the
10Unemployment Insurance Act.
11(Source: P.A. 92-396, eff. 1-1-02.)
 
12    (820 ILCS 405/502 new)
13    Sec. 502. Eligibility for benefits under the Short-Time
14Compensation Program.
15    A. The Director may by rule establish a short-time
16compensation program consistent with this Section. No
17short-time compensation shall be payable except as authorized
18by rule.
19    B. As used in this Section:
20    "Affected unit" means a specified plant, department,
21shift, or other definable unit that includes 2 or more workers
22to which an approved short-time compensation plan applies.
23    "Health and retirement benefits" means employer-provided
24health benefits and retirement benefits under a defined benefit
25pension plan (as defined in Section 414(j) of the Internal

 

 

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1Revenue Code) or contributions under a defined contribution
2plan (defined in Section 414(i) of the Internal Revenue Code),
3which are incidents of employment in addition to the cash
4remuneration earned.
5    "Short-time compensation" means the unemployment benefits
6payable to employees in an affected unit under an approved
7short-time compensation plan, as distinguished from the
8unemployment benefits otherwise payable under this Act.
9    "Short-time compensation plan" means a plan submitted by an
10employer, for approval by the Director, under which the
11employer requests the payment of short-time compensation to
12workers in an affected unit of the employer to avert layoffs.
13    "Usual weekly hours of work" means the usual hours of work
14for full-time or part-time employees in the affected unit when
15that unit is operating on its regular basis, not to exceed 40
16hours and not including hours of overtime work.
17    "Unemployment insurance" means the unemployment benefits
18payable under this Act other than short-time compensation and
19includes any amounts payable pursuant to an agreement under any
20Federal law providing for compensation, assistance, or
21allowances with respect to unemployment.
22    C. An employer wishing to participate in the short-time
23compensation program shall submit a signed written short-time
24compensation plan to the Director for approval. The Director
25shall develop an application form to request approval of a
26short-time compensation plan and an approval process. The

 

 

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1application shall include:
2        1. The employer's unemployment insurance account
3    number, the affected unit covered by the plan, including
4    the number of full-time or part-time workers in such unit,
5    the percentage of workers in the affected unit covered by
6    the plan, identification of each individual employee in the
7    affected unit by name and social security number, and any
8    other information required by the Director to identify plan
9    participants.
10        2. A description of how workers in the affected unit
11    will be notified of the employer's participation in the
12    short-time compensation plan if such application is
13    approved, including how the employer will notify those
14    workers in a collective bargaining unit as well as any
15    workers in the affected unit who are not in a collective
16    bargaining unit. If the employer will not provide advance
17    notice to workers in the affected unit, the employer shall
18    explain in a statement in the application why it is not
19    feasible to provide such notice.
20        3. The employer's certification that it has the
21    approval of the plan from all collective bargaining
22    representatives of employees in the affected unit and has
23    notified all employees in the affected unit who are not in
24    a collective bargaining unit of the plan.
25        4. The employer's certification that it will not hire
26    additional part-time or full-time employees for, or

 

 

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1    transfer employees to, the affected unit, while the program
2    is in operation.
3        5. A requirement that the employer identify the usual
4    weekly hours of work for employees in the affected unit and
5    the specific percentage by which their hours will be
6    reduced during all weeks covered by the plan. An
7    application shall specify the percentage of reduction for
8    which a short-time compensation application may be
9    approved which shall be not less than 20% and not more than
10    60%. If the plan includes any week for which the employer
11    regularly provides no work (due to a holiday or other plant
12    closing), then such week shall be identified in the
13    application.
14        6. Certification by the employer that, if the employer
15    provides health and retirement benefits to any employee
16    whose usual weekly hours of work are reduced under the
17    program, such benefits will continue to be provided to the
18    employee participating in the short-time compensation
19    program under the same terms and conditions as though the
20    usual weekly hours of work of such employee had not been
21    reduced or to the same extent as other employees not
22    participating in the short-time compensation program. For
23    defined benefit retirement plans, the hours that are
24    reduced under the short-time compensation plan shall be
25    credited for purposes of participation, vesting, and
26    accrual of benefits as though the usual weekly hours of

 

 

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1    work had not been reduced. The dollar amount of employer
2    contributions to a defined contribution plan that are based
3    on a percentage of compensation may be less due to the
4    reduction in the employee's compensation. Notwithstanding
5    any other provision to the contrary, a certification that a
6    reduction in health and retirement benefits is scheduled to
7    occur during the duration of the plan and will be
8    applicable equally to employees who are not participating
9    in the short-time compensation program and to those
10    employees who are participating satisfies this paragraph.
11        7. Certification by the employer that the aggregate
12    reduction in work hours is in lieu of layoffs (temporary or
13    permanent layoffs, or both). The application shall include
14    an estimate of the number of workers who would have been
15    laid off in the absence of the short-time compensation
16    plan.
17        8. Agreement by the employer to: furnish reports to the
18    Director relating to the proper conduct of the plan; allow
19    the Director or his or her authorized representatives
20    access to all records necessary to approve or disapprove
21    the plan application, and after approval of a plan, to
22    monitor and evaluate the plan; and follow any other
23    directives the Director deems necessary for the agency to
24    implement the plan and which are consistent with the
25    requirements for plan applications.
26        9. Certification by the employer that participation in

 

 

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1    the short-time compensation plan and its implementation is
2    consistent with the employer's obligations under
3    applicable Federal and Illinois laws.
4        10. The effective date and duration of the plan, which
5    shall expire no later than the end of the 12th full
6    calendar month after the effective date.
7        11. Any other provision added to the application by the
8    Director that the United States Secretary of Labor
9    determines to be appropriate for purposes of a short-time
10    compensation program.
11    D. The Director shall approve or disapprove a short-time
12compensation plan in writing within 45 days of its receipt and
13promptly communicate the decision to the employer. A decision
14disapproving the plan shall clearly identify the reasons for
15the disapproval. The disapproval shall be final, but the
16employer shall be allowed to submit another short-time
17compensation plan for approval not earlier than 30 days from
18the date of the disapproval.
19    E. The short-time compensation plan shall be effective on
20the mutually agreed upon date by the employer and the Director,
21which shall be specified in the notice of approval to the
22employer. The plan shall expire on the date specified in the
23notice of approval, which shall be mutually agreed on by the
24employer and Director but no later than the end of the 12th
25full calendar month after its effective date. However, if a
26short-time compensation plan is revoked by the Director, the

 

 

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1plan shall terminate on the date specified in the Director's
2written order of revocation. An employer may terminate a
3short-time compensation plan at any time upon written notice to
4the Director. Upon receipt of such notice from the employer,
5the Director shall promptly notify each member of the affected
6unit of the termination date. An employer may submit a new
7application to participate in another short-time compensation
8plan at any time after the expiration or termination date.
9    F. The Director may revoke approval of a short-time
10compensation plan for good cause at any time, including upon
11the request of any of the affected unit's employees or their
12collective bargaining representative. The revocation order
13shall be in writing and shall specify the reasons for the
14revocation and the date the revocation is effective. The
15Director may periodically review the operation of each
16employer's short-time compensation plan to assure that no good
17cause exists for revocation of the approval of the plan. Good
18cause shall include, but not be limited to, failure to comply
19with the assurances given in the plan, termination of the
20approval of the plan by a collective bargaining representative
21of employees in the affected unit, unreasonable revision of
22productivity standards for the affected unit, conduct or
23occurrences tending to defeat the intent and effective
24operation of the short-time compensation plan, and violation of
25any criteria on which approval of the plan was based.
26    G. An employer may request a modification of an approved

 

 

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1plan by filing a written request to the Director. The request
2shall identify the specific provisions proposed to be modified
3and provide an explanation of why the proposed modification is
4appropriate for the short-time compensation plan. The Director
5shall approve or disapprove the proposed modification in
6writing within 30 days of receipt and promptly communicate the
7decision to the employer. The Director, in his or her
8discretion, may approve a request for modification of the plan
9based on conditions that have changed since the plan was
10approved provided that the modification is consistent with and
11supports the purposes for which the plan was initially
12approved. A modification may not extend the expiration date of
13the original plan, and the Director must promptly notify the
14employer whether the plan modification has been approved and,
15if approved, the effective date of modification. An employer is
16not required to request approval of plan modification from the
17Director if the change is not substantial, but the employer
18must report every change to plan to the Director promptly and
19in writing. The Director may terminate an employer's plan if
20the employer fails to meet this reporting requirement. If the
21Director determines that the reported change is substantial,
22the Director shall require the employer to request a
23modification to the plan.
24    H. An individual is eligible to receive short-time
25compensation with respect to any week only if the individual is
26eligible for unemployment insurance pursuant to subsection E of

 

 

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1Section 500, not otherwise disqualified for unemployment
2insurance, and:
3        1. During the week, the individual is employed as a
4    member of an affected unit under an approved short-time
5    compensation plan, which was approved prior to that week,
6    and the plan is in effect with respect to the week for
7    which short-time compensation is claimed.
8        2. Notwithstanding any other provision of this Act
9    relating to availability for work and actively seeking
10    work, the individual is available for the individual's
11    usual hours of work with the short-time compensation
12    employer, which may include, for purposes of this Section,
13    participating in training to enhance job skills that is
14    approved by the Director, including but not limited to as
15    employer-sponsored training or training funded under the
16    Workforce Investment Act of 1998.
17        3. Notwithstanding any other provision of law, an
18    individual covered by a short-time compensation plan is
19    deemed unemployed in any week during the duration of such
20    plan if the individual's remuneration as an employee in an
21    affected unit is reduced based on a reduction of the
22    individual's usual weekly hours of work under an approved
23    short-time compensation plan.
24    I. The short-time compensation weekly benefit amount shall
25be the product of the percentage of reduction in the
26individual's usual weekly hours of work multiplied by the sum

 

 

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1of the regular weekly benefit amount for a week of total
2unemployment plus any applicable dependent allowance pursuant
3to subsection C of Section 401.
4        1. An individual may be eligible for short-time
5    compensation or unemployment insurance, as appropriate,
6    except that no individual shall be eligible for combined
7    benefits (excluding any payments attributable to a
8    dependent allowance pursuant to subsection C of Section
9    401) in any benefit year in an amount more than the maximum
10    benefit amount, nor shall an individual be paid short-time
11    compensation benefits for more than 52 weeks under a
12    short-time compensation plan.
13        2. The short-time compensation paid to an individual
14    (excluding any payments attributable to a dependent
15    allowance pursuant to subsection C of Section 401) shall be
16    deducted from the maximum benefit amount established for
17    that individual's benefit year.
18        3. Provisions applicable to unemployment insurance
19    claimants shall apply to short-time compensation claimants
20    to the extent that they are not inconsistent with
21    short-time compensation provisions. An individual who
22    files an initial claim for short-time compensation
23    benefits shall receive a monetary determination.
24        4. The following provisions apply to individuals who
25    work for both a short-time compensation employer and
26    another employer during weeks covered by the approved

 

 

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1    short-time compensation plan:
2            i. If combined hours of work in a week for both
3        employers do not result in a reduction of at least 20%
4        of the usual weekly hours of work with the short-time
5        compensation employer, the individual shall not be
6        entitled to benefits under this Section.
7            ii. If combined hours of work for both employers
8        results in a reduction equal to or greater than 20% of
9        the usual weekly hours of work for the short-time
10        compensation employer, the short-time compensation
11        benefit amount payable to the individual is reduced for
12        that week and is determined by multiplying the
13        percentage by which the combined hours of work have
14        been reduced by the sum of the weekly benefit amount
15        for a week of total unemployment plus any applicable
16        dependent allowance pursuant to subsection C of
17        Section 401. A week for which benefits are paid under
18        this subparagraph shall be reported as a week of
19        short-time compensation.
20            iii. If an individual worked the reduced
21        percentage of the usual weekly hours of work for the
22        short-time compensation employer and is available for
23        all his or her usual hours of work with the short-time
24        compensation employer, and the individual did not work
25        any hours for the other employer either because of the
26        lack of work with that employer or because the

 

 

09800HB4733sam002- 40 -LRB098 16645 JLS 60495 a

1        individual is excused from work with the other
2        employer, the individual shall be eligible for
3        short-time compensation for that week. The benefit
4        amount for such week shall be calculated as provided in
5        the introductory clause of this subsection I.
6            iv. An individual who is not provided any work
7        during a week by the short-time compensation employer,
8        or any other employer, and who is otherwise eligible
9        for unemployment insurance shall be eligible for the
10        amount of regular unemployment insurance determined
11        without regard to this Section.
12            v. An individual who is not provided any work by
13        the short-time compensation employer during a week,
14        but who works for another employer and is otherwise
15        eligible may be paid unemployment insurance for that
16        week subject to the disqualifying income and other
17        provisions applicable to claims for regular
18        unemployment insurance.
19    J. Short-time compensation shall be charged to employers in
20the same manner as unemployment insurance is charged under
21Illinois law. Employers liable for payments in lieu of
22contributions shall have short-time compensation attributed to
23service in their employ in the same manner as unemployment
24insurance is attributed. Notwithstanding any other provision
25to the contrary, to the extent that short-term compensation
26payments under this Section are reimbursed by the federal

 

 

09800HB4733sam002- 41 -LRB098 16645 JLS 60495 a

1government, no benefit charges or payments in lieu of
2contributions shall be accrued by a participating employer.
3    K. A short-time compensation plan shall not be approved for
4an employer that is delinquent in the filing of any reports
5required or the payment of contributions, payments in lieu of
6contributions, interest, or penalties due under this Act
7through the date of the employer's application.
8    L. Overpayments of other benefits under this Act may be
9recovered from an individual receiving short-time compensation
10under this Act in the manner provided under Sections 900 and
11901. Overpayments under the short-time compensation plan may be
12recovered from an individual receiving other benefits under
13this Act in the manner provided under Sections 900 and 901.
14    M. An individual who has received all of the short-time
15compensation or combined unemployment insurance and short-time
16compensation available in a benefit year shall be considered an
17exhaustee for purposes of extended benefits, as provided under
18the provisions of Section 409, and, if otherwise eligible under
19those provisions, shall be eligible to receive extended
20benefits.
 
21    (820 ILCS 405/611)  (from Ch. 48, par. 441)
22    Sec. 611. Retirement pay. A. For the purposes of this
23Section "disqualifying income" means:
24    1. The entire amount which an individual has received or
25will receive with respect to a week in the form of a retirement

 

 

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1payment (a) from an individual or organization (i) for which he
2performed services during his base period or which is liable
3for benefit charges or payments in lieu of contributions as a
4result of the payment of benefits to such individual and (ii)
5which pays all of the cost of such retirement payment, or (b)
6from a trust, annuity or insurance fund or under an annuity or
7insurance contract, to or under which an individual or
8organization for which he performed services during his base
9period or which is liable for benefit charges or payments in
10lieu of contributions as a result of the payment of benefits to
11such individual pays or has paid all of the premiums or
12contributions; and
13    2. One-half the amount which an individual has received or
14will receive with respect to a week in the form of a retirement
15payment (a) from an individual or organization (i) for which he
16performed services during his base period or which is liable
17for benefit charges or payments in lieu of contributions as a
18result of the payment of benefits to such individual and (ii)
19which pays some, but not all, of the cost of such retirement
20payment, or (b) from a trust, annuity or insurance fund
21(including primary social security old age and disability
22retirement benefits, including those based on self-employment)
23or under an annuity or insurance contract, to or under which an
24individual or organization for which he performed services
25during his base period or which is liable for benefit charges
26or payments in lieu of contributions as a result of the payment

 

 

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1of benefits to such individual pays or has paid some, but not
2all, of the premiums or contributions.
3    2.1. Notwithstanding paragraphs 1 and 2 above, none of the
4amount that an individual has received or will receive with
5respect to a week in the form of social security old age,
6survivors, and disability benefits under 42 U.S.C. Section 401
7et seq., including those based on self-employment, shall
8constitute disqualifying income.
9    3. Notwithstanding paragraphs paragraph 1, and 2, and 2.1
10above, the entire amount which an individual has received or
11will receive, with respect to any week which begins after March
1231, 1980, of any governmental or other pension, retirement, or
13retired pay, annuity or any other similar periodic payment
14which is based on any previous work of such individual during
15his base period or which is liable for benefit charges or
16payments in lieu of contributions as a result of the payment of
17benefits to such individual. This paragraph shall be in effect
18only if it is required as a condition for full tax credit
19against the tax imposed by the Federal Unemployment Tax Act.
20    B. Whenever an individual has received or will receive a
21retirement payment for a month, an amount shall be deemed to
22have been paid him for each day equal to one-thirtieth of such
23retirement payment. If the retirement payment is for a
24half-month, an amount shall be deemed to have been paid the
25individual for each day equal to one-fifteenth of such
26retirement payment. If the retirement payment is for any other

 

 

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1period, an amount shall be deemed to have been paid the
2individual for each day in such period equal to the retirement
3payment divided by the number of days in the period.
4    C. An individual shall be ineligible for benefits for any
5week with respect to which his disqualifying income equals or
6exceeds his weekly benefit amount. If such disqualifying income
7with respect to a week totals less than the benefits for which
8he would otherwise be eligible under this Act, he shall be
9paid, with respect to such week, benefits reduced by the amount
10of such disqualifying income.
11    D. To assure full tax credit to the employers of this State
12against the tax imposed by the Federal Unemployment Tax Act,
13the Director shall take any action as may be necessary in the
14administration of paragraph 3 of subsection A of this Section
15to insure that the application of its provisions conform to the
16requirements of such Federal Act as interpreted by the United
17States Secretary of Labor or other appropriate Federal agency.
18(Source: P.A. 86-3.)
 
19    (820 ILCS 405/702)  (from Ch. 48, par. 452)
20    Sec. 702. Determinations. The claims adjudicator shall for
21each week with respect to which the claimant claims benefits or
22waiting period credit, make a "determination" which shall state
23whether or not the claimant is eligible for such benefits or
24waiting period credit and the sum to be paid the claimant with
25respect to such week. The claims adjudicator shall promptly

 

 

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1notify the claimant and such employing unit as shall, within
2the time and in the manner prescribed by the Director, have
3filed a sufficient allegation that the claimant is ineligible
4to receive benefits or waiting period credit for said week, of
5his "determination" and the reasons therefor. The Director may,
6by rule adopted with the advice and aid of the Employment
7Security Advisory Board, require that an employing unit with 25
850 or more individuals in its employ during a the prior
9calendar year, or an entity representing 5 or more employing
10units during a the prior calendar year, file an allegation of
11ineligibility electronically in a manner prescribed by the
12Director for the one year period commencing on July 1 of the
13immediately succeeding calendar year and ending on June 30 of
14the second succeeding calendar year. In making his
15"determination," the claims adjudicator shall give
16consideration to the information, if any, contained in the
17employing unit's allegation, whether or not the allegation is
18sufficient. The claims adjudicator shall deem an employing
19unit's allegation sufficient only if it contains a reason or
20reasons therefor (other than general conclusions of law, and
21statements such as "not actively seeking work" or "not
22available for work" shall be deemed, for this purpose, to be
23conclusions of law). If the claims adjudicator deems an
24allegation insufficient, he shall make a decision accordingly,
25and shall notify the employing unit of such decision and the
26reasons therefor. Such decision may be appealed by the

 

 

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1employing unit to a Referee within the time limits prescribed
2by Section 800 for appeal from a "determination". Any such
3appeal, and any appeal from the Referee's decision thereon,
4shall be governed by the applicable provisions of Sections 801,
5803, 804 and 805.
6(Source: P.A. 97-621, eff. 11-18-11.)
 
7    (820 ILCS 405/1402)  (from Ch. 48, par. 552)
8    Sec. 1402. Penalties.
9    A. If any employer fails, within the time prescribed in
10this Act as amended and in effect on October 5, 1980, and the
11regulations of the Director, to file a report of wages paid to
12each of his workers, or to file a sufficient report of such
13wages after having been notified by the Director to do so, for
14any period which begins prior to January 1, 1982, he shall pay
15to the Department as a penalty a sum determined in accordance
16with the provisions of this Act as amended and in effect on
17October 5, 1980.
18    B. Except as otherwise provided in this Section, any
19employer who fails to file a report of wages paid to each of
20his workers for any period which begins on or after January 1,
211982, within the time prescribed by the provisions of this Act
22and the regulations of the Director, or, if the Director
23pursuant to such regulations extends the time for filing the
24report, fails to file it within the extended time, shall, in
25addition to any sum otherwise payable by him under the

 

 

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1provisions of this Act, pay to the Department as a penalty a
2sum equal to the lesser of (1) $5 for each $10,000 or fraction
3thereof of the total wages for insured work paid by him during
4the period or (2) $2,500, for each month or part thereof of
5such failure to file the report. With respect to an employer
6who has elected to file reports of wages on an annual basis
7pursuant to Section 1400.2, in assessing penalties for the
8failure to submit all reports by the due date established
9pursuant to that Section, the 30-day period immediately
10following the due date shall be considered as one month.
11    If the Director deems an employer's report of wages paid to
12each of his workers for any period which begins on or after
13January 1, 1982, insufficient, he shall notify the employer to
14file a sufficient report. If the employer fails to file such
15sufficient report within 30 days after the mailing of the
16notice to him, he shall, in addition to any sum otherwise
17payable by him under the provisions of this Act, pay to the
18Department as a penalty a sum determined in accordance with the
19provisions of the first paragraph of this subsection, for each
20month or part thereof of such failure to file such sufficient
21report after the date of the notice.
22    For wages paid in calendar years prior to 1988, the penalty
23or penalties which accrue under the two foregoing paragraphs
24with respect to a report for any period shall not be less than
25$100, and shall not exceed the lesser of (1) $10 for each
26$10,000 or fraction thereof of the total wages for insured work

 

 

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1paid during the period or (2) $5,000. For wages paid in
2calendar years after 1987, the penalty or penalties which
3accrue under the 2 foregoing paragraphs with respect to a
4report for any period shall not be less than $50, and shall not
5exceed the lesser of (1) $10 for each $10,000 or fraction of
6the total wages for insured work paid during the period or (2)
7$5,000. With respect to an employer who has elected to file
8reports of wages on an annual basis pursuant to Section 1400.2,
9for purposes of calculating the minimum penalty prescribed by
10this Section for failure to file the reports on a timely basis,
11a calendar year shall constitute a single period. For reports
12of wages paid after 1986, the Director shall not, however,
13impose a penalty pursuant to either of the two foregoing
14paragraphs on any employer who can prove within 30 working days
15after the mailing of a notice of his failure to file such a
16report, that (1) the failure to file the report is his first
17such failure during the previous 20 consecutive calendar
18quarters, and (2) the amount of the total contributions due for
19the calendar quarter of such report (or, in the case of an
20employer who is required to file the reports on a monthly
21basis, the amount of the total contributions due for the
22calendar quarter that includes the month of such report) is
23less than $500.
24    For any month which begins on or after January 1, 2013, a
25report of the wages paid to each of an employer's workers shall
26be due on or before the last day of the month next following

 

 

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1the calendar month in which the wages were paid if the employer
2is required to report such wages electronically pursuant to the
3regulations of the Director; otherwise a report of the wages
4paid to each of the employer's workers shall be due on or
5before the last day of the month next following the calendar
6quarter in which the wages were paid.
7    Any employer who willfully wilfully fails to pay any
8contribution or part thereof, based upon wages paid prior to
91987, when required by the provisions of this Act and the
10regulations of the Director, with intent to defraud the
11Director, shall in addition to such contribution or part
12thereof pay to the Department a penalty equal to 50 percent of
13the amount of such contribution or part thereof, as the case
14may be, provided that the penalty shall not be less than $200.
15    Any employer who willfully fails to pay any contribution or
16part thereof, based upon wages paid in 1987 and in each
17calendar year thereafter, when required by the provisions of
18this Act and the regulations of the Director, with intent to
19defraud the Director, shall in addition to such contribution or
20part thereof pay to the Department a penalty equal to 60% of
21the amount of such contribution or part thereof, as the case
22may be, provided that the penalty shall not be less than $400.
23    However, all or part of any penalty may be waived by the
24Director for good cause shown.
25    C. With regard to an employer required to report monthly
26pursuant to this Section, in addition to each employee's name,

 

 

09800HB4733sam002- 50 -LRB098 16645 JLS 60495 a

1social security number, and wages for insured work paid during
2the period, the Director may, by rule, require a report to
3provide the following information concerning each employee:
4the employee's occupation, hours worked during the period,
5hourly wage, if applicable, and work location if the employer
6has more than one physical location. Notwithstanding any other
7provision of any other law to the contrary, information
8obtained pursuant to this subsection shall not be disclosed to
9any other public official or agency of this State or any other
10state to the extent it relates to a specifically identified
11individual or entity or to the extent that the identity of a
12specific individual or entity may be discerned from such
13information. The additional data elements required to be
14reported pursuant to the rule authorized by this subsection may
15be reported in the same electronic format as in the system
16maintained by the employer or employer's agent and need not be
17reformatted.
18(Source: P.A. 97-689, eff. 6-14-12; 97-791, eff. 1-1-13;
1998-463, eff. 8-16-13.)
 
20    (820 ILCS 405/1402.1 new)
21    Sec. 1402.1. Processing fee.
22    A. The Director may, by rule, establish a processing fee of
23$50 with regard to a report of contributions due that is not
24required to be submitted electronically if the employer fails
25to submit the report on the form designated by the Director or

 

 

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1otherwise provide all of the information required by the form
2designated by the Director. With respect to the first instance
3of such a failure after the effective date of the rule, the
4Director shall issue the employer a written warning instead of
5a processing fee, and no such processing fee shall be assessed
6unless the Director has issued the employer a written warning
7for a prior failure.
8    B. The Director may, by rule, establish a processing fee of
9$50 with regard to any payment of contributions, payment in
10lieu of contributions, interest, or penalty that is not made
11through electronic funds transfer if the employer fails to
12enclose the payment coupon provided by the Director with its
13payment or otherwise provide all of the information the coupon
14would provide, regardless of the amount due. With respect to
15the first instance of such a failure after the effective date
16of the rule, the Director shall issue the employer a written
17warning instead of a processing fee, and no such processing fee
18shall be assessed unless the Director has issued the employer a
19written warning for a prior failure.
 
20    (820 ILCS 405/1500)  (from Ch. 48, par. 570)
21    Sec. 1500. Rate of contribution.
22    A. For the six months' period beginning July 1, 1937, and
23for each of the calendar years 1938 to 1959, inclusive, each
24employer shall pay contributions on wages at the percentages
25specified in or determined in accordance with the provisions of

 

 

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1this Act as amended and in effect on July 11, 1957.
2    B. For the calendar years 1960 through 1983, each employer
3shall pay contributions equal to 2.7 percent with respect to
4wages for insured work paid during each such calendar year,
5except that the contribution rate of each employer who has
6incurred liability for the payment of contributions within each
7of the three calendar years immediately preceding the calendar
8year for which a rate is being determined, shall be determined
9as provided in Sections 1501 to 1507, inclusive.
10    For the calendar year 1984 and each calendar year
11thereafter, each employer shall pay contributions at a
12percentage rate equal to the greatest of 2.7%, or 2.7%
13multiplied by the current adjusted State experience factor, as
14determined for each calendar year by the Director in accordance
15with the provisions of Sections 1504 and 1505, or the average
16contribution rate for his major classification in the Standard
17Industrial Code, or another classification sanctioned by the
18United States Department of Labor and prescribed by the
19Director by rule, with respect to wages for insured work paid
20during such year. The Director of Employment Security shall
21determine for calendar year 1984 and each calendar year
22thereafter by a method pursuant to adopted rules each
23individual employer's industrial code and the average
24contribution rate for each major classification in the Standard
25Industrial Code, or each other classification sanctioned by the
26United States Department of Labor and prescribed by the

 

 

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1Director by rule. Notwithstanding the preceding provisions of
2this paragraph, the contribution rate for calendar years 1984,
31985 and 1986 of each employer who has incurred liability for
4the payment of contributions within each of the two calendar
5years immediately preceding the calendar year for which a rate
6is being determined, and the contribution rate for calendar
7year 1987 and each calendar year thereafter of each employer
8who has incurred liability for the payment of contributions
9within each of the three calendar years immediately preceding
10the calendar year for which a rate is being determined shall be
11determined as provided in Sections 1501 to 1507.1, inclusive.
12Provided, however, that the contribution rate for calendar
13years 1989 and 1990 of each employer who has had experience
14with the risk of unemployment for at least 13 consecutive
15months ending June 30 of the preceding calendar year shall be a
16rate determined in accordance with this Section or a rate
17determined as if it had been calculated in accordance with
18Sections 1501 through 1507, inclusive, whichever is greater,
19except that for purposes of calculating the benefit wage ratio
20as provided in Section 1503, such benefit wage ratio shall be a
21percentage equal to the total of benefit wages for the 12
22consecutive calendar month period ending on the above preceding
23June 30, divided by the total wages for insured work subject to
24the payment of contributions under Sections 234, 235 and 245
25for the same period and provided, further, however, that the
26contribution rate for calendar year 1991 and for each calendar

 

 

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1year thereafter of each employer who has had experience with
2the risk of unemployment for at least 13 consecutive months
3ending June 30 of the preceding calendar year shall be a rate
4determined in accordance with this Section or a rate determined
5as if it had been calculated in accordance with Sections 1501
6through 1507.1, inclusive, whichever is greater, except that
7for purposes of calculating the benefit ratio as provided in
8Section 1503.1, such benefit ratio shall be a percentage equal
9to the total of benefit charges for the 12 consecutive calendar
10month period ending on the above preceding June 30, multiplied
11by the benefit conversion factor applicable to such year,
12divided by the total wages for insured work subject to the
13payment of contributions under Sections 234, 235 and 245 for
14the same period.
15    B-5. Notwithstanding any other provision of this Section,
16beginning in calendar year 2015, an employer's contribution
17rate as determined pursuant to subsection B shall be reduced by
180.04% absolute. This amendatory Act of the 98th General
19Assembly has no effect on the fund building rate determined
20pursuant to Section 1506.3 or fund building receipts
21attributable to the fund building rate.
22    C. Except as expressly provided in this Act, the provisions
23of Sections 1500 to 1510, inclusive, do not apply to any
24nonprofit organization for any period with respect to which it
25does not incur liability for the payment of contributions by
26reason of having elected to make payments in lieu of

 

 

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1contributions, or to any political subdivision or municipal
2corporation for any period with respect to which it is not
3subject to payments in lieu of contributions under the
4provisions of paragraph 1 of Section 302C by reason of having
5elected to make payments in lieu of contributions under
6paragraph 2 of that Section or to any governmental entity
7referred to in clause (B) of Section 211.1. Wages paid to an
8individual which are subject to contributions under Section
91405 A, or on the basis of which benefits are paid to him which
10are subject to payment in lieu of contributions under Sections
111403, 1404, or 1405 B, or under paragraph 2 of Section 302C,
12shall not become benefit wages or benefit charges under the
13provisions of Sections 1501 or 1501.1, respectively, except for
14purposes of determining a rate of contribution for 1984 and
15each calendar year thereafter for any governmental entity
16referred to in clause (B) of Section 211.1 which does not elect
17to make payments in lieu of contributions.
18    D. If an employer's business is closed solely because of
19the entrance of one or more of the owners, partners, officers,
20or the majority stockholder into the armed forces of the United
21States, or of any of its allies, or of the United Nations, and,
22if the business is resumed within two years after the discharge
23or release of such person or persons from active duty in the
24armed forces, the employer will be deemed to have incurred
25liability for the payment of contributions continuously
26throughout such period. Such an employer, for the purposes of

 

 

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1Section 1506.1, will be deemed to have paid contributions upon
2wages for insured work during the applicable period specified
3in Section 1503 on or before the date designated therein,
4provided that no wages became benefit wages during the
5applicable period specified in Section 1503.
6(Source: P.A. 94-301, eff. 1-1-06.)
 
7    (820 ILCS 405/1506.1)  (from Ch. 48, par. 576.1)
8    Sec. 1506.1. Determination of Employer's Contribution
9Rate.
10    A. The contribution rate for any calendar year prior to
111991 of each employer whose contribution rate is determined as
12provided in Sections 1501 through 1507, inclusive, shall be
13determined in accordance with the provisions of this Act as
14amended and in effect on November 18, 2011.
15    B. (Blank).
16    C. (Blank).
17    D. (Blank).
18    E. The contribution rate for calendar year 1991 and each
19calendar year thereafter of each employer who has incurred
20liability for the payment of contributions within each of the
21three calendar years immediately preceding the calendar year
22for which a rate is being determined shall be the product
23obtained by multiplying the employer's benefit ratio defined by
24Section 1503.1 for that calendar year by the adjusted state
25experience factor for the same year, provided that:

 

 

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1        1. Except as otherwise provided in this paragraph, an
2    employer's minimum contribution rate shall be the greater
3    of 0.2% or the product obtained by multiplying 0.2% by the
4    adjusted state experience factor for the applicable
5    calendar year. An employer's minimum contribution rate
6    shall be 0.1% for calendar year 1996. An employer's minimum
7    contribution rate shall be 0.0% for calendar years 2012
8    through 2019.
9        2. An employer's maximum contribution rate shall be the
10    greater of 6.4% or the product of 6.4% and the adjusted
11    state experience factor for the applicable calendar year.
12        3. If any product obtained in this subsection is not an
13    exact multiple of one-tenth of one percent, it shall be
14    increased or reduced, as the case may be to the nearer
15    multiple of one-tenth of one percent. If such product is
16    equally near to two multiples of one-tenth of one percent,
17    it shall be increased to the higher multiple of one-tenth
18    of one percent.
19        4. For purposes of this subsection, intermediate
20    Intermediate rates between such minimum and maximum rates
21    shall be at one-tenth of one percent intervals.
22    The contribution rate of each employer for whom wages
23became benefit wages during the applicable period specified in
24Section 1503 or for whom benefit payments became benefit
25charges during the applicable period specified in Section
261503.1, but who did not report wages for insured work during

 

 

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1such period, shall be the maximum contribution rate as
2determined by paragraph 2 of this subsection. The contribution
3rate for each employer for whom no wages became benefit wages
4during the applicable period specified in Section 1503 or for
5whom no benefit payments became benefit charges during the
6applicable period specified in Section 1503.1, and who did not
7report wages for insured work during such period, shall be the
8greater of 2.7% or 2.7% times the then current adjusted state
9experience factor as determined by the Director in accordance
10with the provisions of Sections 1504 and 1505.
11    F. (Blank).
12    G. Notwithstanding the other provisions of this Section, no
13employer's contribution rate with respect to calendar year 1989
14and each calendar year thereafter shall exceed 5.4% of the
15wages for insured work paid by him during any calendar quarter,
16if such wages paid during such calendar quarter total less than
17$50,000, plus any applicable penalty contribution rate
18calculated pursuant to subsection C of Section 1507.1.
19    H. Notwithstanding any other provision of this Section,
20beginning in calendar year 2015, an employer's contribution
21rate as determined under this Section, without regard to this
22subsection, shall be reduced by 0.04% absolute but not below
230.0%. This amendatory Act of the 98th General Assembly has no
24effect on the fund building rate determined pursuant to Section
251506.3 or fund building receipts attributable to the fund
26building rate.

 

 

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1(Source: P.A. 97-621, eff. 11-18-11; 97-791, eff. 1-1-13.)
 
2    (820 ILCS 405/2101)  (from Ch. 48, par. 661)
3    Sec. 2101. Special administrative account. Except as
4provided in Section 2100, all interest and penalties collected
5pursuant to this Act shall be deposited in the special
6administrative account. The amount in this account in excess of
7$100,000 on the close of business of the last day of each
8calendar quarter shall be immediately transferred to this
9State's account in the unemployment trust fund. However,
10subject to Section 2101.1, such funds shall not be transferred
11where it is determined by the Director that it is necessary to
12accumulate funds in the account in order to have sufficient
13funds to pay interest that may become due under the terms of
14Section 1202 (b) of the Federal Social Security Act, as
15amended, upon advances made to the Illinois Unemployment
16Insurance Trust Fund under Title XII of the Federal Social
17Security Act or where it is determined by the Director that it
18is necessary to accumulate funds in the special administrative
19account in order to have sufficient funds to expend for any
20other purpose authorized by this Section. The balance of funds
21in the special administrative account that are in excess of
22$100,000 on the first day of each calendar quarter and not
23transferred to this State's account in the unemployment trust
24fund, minus the amount reasonably anticipated to be needed to
25make payments from the special administrative account pursuant

 

 

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1to subsections C through I, shall be certified by the Director
2and transferred by the State Comptroller to the Title III
3Social Security and Employment Fund in the State Treasury
4within 30 days of the first day of the calendar quarter. The
5Director may certify and the State Comptroller shall transfer
6such funds to the Title III Social Security and Employment Fund
7on a more frequent basis. The moneys available in the special
8administrative account shall be expended upon the direction of
9the Director whenever it appears to him that such expenditure
10is necessary for:
11    A. 1. The proper administration of this Act and no Federal
12funds are available for the specific purpose for which such
13expenditure is to be made, provided the moneys are not
14substituted for appropriations from Federal funds, which in the
15absence of such moneys would be available and provided the
16monies are appropriated by the General Assembly.
17    2. The proper administration of this Act for which purpose
18appropriations from Federal funds have been requested but not
19yet received, provided the special administrative account will
20be reimbursed upon receipt of the requested Federal
21appropriation.
22    B. To the extent possible, the repayment to the fund
23established for financing the cost of administration of this
24Act of moneys found by the Secretary of Labor of the United
25States of America, or other appropriate Federal agency, to have
26been lost or expended for purposes other than, or in amounts in

 

 

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1excess of, those found necessary by the Secretary of Labor, or
2other appropriate Federal agency, for the administration of
3this Act.
4    C. The payment of refunds or adjustments of interest or
5penalties, paid pursuant to Sections 901 or 2201.
6    D. The payment of interest on refunds of erroneously paid
7contributions, penalties and interest pursuant to Section
82201.1.
9    E. The payment or transfer of interest or penalties to any
10Federal or State agency, pursuant to reciprocal arrangements
11entered into by the Director under the provisions of Section
122700E.
13    F. The payment of any costs incurred, pursuant to Section
141700.1.
15    G. Beginning January 1, 1989, for the payment for the legal
16services authorized by subsection B of Section 802, up to
17$1,000,000 per year for the representation of the individual
18claimants and up to $1,000,000 per year for the representation
19of "small employers".
20    H. The payment of any fees for collecting past due
21contributions, payments in lieu of contributions, penalties,
22and interest shall be paid (without an appropriation) from
23interest and penalty monies received from collection agents
24that have contracted with the Department under Section 2206 to
25collect such amounts, provided however, that the amount of such
26payment shall not exceed the amount of past due interest and

 

 

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1penalty collected.
2    I. The payment of interest that may become due under the
3terms of Section 1202 (b) of the Federal Social Security Act,
4as amended, for advances made to the Illinois Unemployment
5Insurance Trust Fund.
6    J. Expenses incurred by the Department in the
7administration of the Illinois State Training and Employment
8Program (I-STEP) Act.
9    The Director shall annually on or before the first day of
10March report in writing to the Employment Security Advisory
11Board concerning the expenditures made from the special
12administrative account and the purposes for which funds are
13being accumulated.
14    If Federal legislation is enacted which will permit the use
15by the Director of some part of the contributions collected or
16to be collected under this Act, for the financing of
17expenditures incurred in the proper administration of this Act,
18then, upon the availability of such contributions for such
19purpose, the provisions of this Section shall be inoperative
20and interest and penalties collected pursuant to this Act shall
21be deposited in and be deemed a part of the clearing account.
22In the event of the enactment of the foregoing Federal
23legislation, and within 90 days after the date upon which
24contributions become available for expenditure for costs of
25administration, the total amount in the special administrative
26account shall be transferred to the clearing account, and after

 

 

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1clearance thereof shall be deposited with the Secretary of the
2Treasury of the United States of America to the credit of the
3account of this State in the unemployment trust fund,
4established and maintained pursuant to the Federal Social
5Security Act, as amended.
6(Source: P.A. 94-1083, eff. 1-19-07.)
 
7    (820 ILCS 405/2201)  (from Ch. 48, par. 681)
8    Sec. 2201. Refund or adjustment of contributions. Not
9later than 3 years after the date upon which the Director first
10notifies any contributions, interest or penalties thereon were
11paid, an employing unit that it which has paid such
12contributions, interest or penalties thereon erroneously, the
13employing unit may file a claim with the Director for an
14adjustment thereof in connection with subsequent contribution
15payments, or for a refund thereof where such adjustment cannot
16be made; provided, however, that no refund or adjustment shall
17be made of any contribution, the amount of which has been
18determined and assessed by the Director, if such contribution
19was paid after the determination and assessment of the Director
20became final, and provided, further, that any such adjustment
21or refund, involving contributions with respect to wages on the
22basis of which benefits have been paid, shall be reduced by the
23amount of benefits so paid. Upon receipt of a claim the
24Director shall make his determination, either allowing such
25claim in whole or in part, or ordering that it be denied, and

 

 

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1serve notice upon the claimant of such determination. Such
2determination of the Director shall be final at the expiration
3of 20 days from the date of service of such notice unless the
4claimant shall have filed with the Director a written protest
5and a petition for hearing, specifying his objections thereto.
6Upon receipt of such petition within the 20 days allowed, the
7Director shall fix the time and place for a hearing and shall
8notify the claimant thereof. At any hearing held as herein
9provided, the determination of the Director shall be prima
10facie correct and the burden shall be upon the protesting
11employing unit to prove that it is incorrect. All of the
12provisions of this Act applicable to hearings conducted
13pursuant to Section 2200 shall be applicable to hearings
14conducted pursuant to this Section. Upon the conclusion of such
15hearing, a decision shall be made by the Director and notice
16thereof given to the claimant. If the Director shall decide
17that the claim be allowed in whole or in part, or if such
18allowance be ordered by the Court pursuant to Section 2205 and
19the judgment of said Court has become final, the Director
20shall, if practicable, make adjustment without interest in
21connection with subsequent contribution payments by the
22claimant, and if adjustments thereof cannot practicably be made
23in connection with such subsequent contribution payments, then
24the Director shall refund to the claimant the amount so
25allowed, without interest except as otherwise provided in
26Section 2201.1 from moneys in the benefit account established

 

 

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1by this Act. Nothing herein contained shall prohibit the
2Director from making adjustment or refund upon his own
3initiative, within the time allowed for filing claim therefor,
4provided that the Director shall make no refund or adjustment
5of any contribution, the amount of which he has previously
6determined and assessed, if such contribution was paid after
7the determination and assessment became final.
8    If this State should not be certified for any year by the
9Secretary of Labor of the United States of America, or other
10appropriate Federal agency, under Section 3304 of the Federal
11Internal Revenue Code of 1954, the Director shall refund
12without interest to any instrumentality of the United States
13subject to this Act by virtue of permission granted in an Act
14of Congress, the amount of contributions paid by such
15instrumentality with respect to such year.
16    The Director may by regulation provide that, if there is a
17total credit balance of less than $2 in an employer's account
18with respect to contributions, interest, and penalties, the
19amount may be disregarded by the Director; once disregarded,
20the amount shall not be considered a credit balance in the
21account and shall not be subject to either an adjustment or a
22refund.
23(Source: P.A. 90-554, eff. 12-12-97.)
 
24    (820 ILCS 405/2201.1)  (from Ch. 48, par. 681.1)
25    Sec. 2201.1. Interest on Overpaid Contributions, Penalties

 

 

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1and Interest. The Director shall semi-annually quarterly
2furnish each employer with a statement of credit balances in
3the employer's account where the balances with respect to all
4contributions, interest and penalties combined equal or exceed
5$2. Under regulations prescribed by the Director and subject to
6the limitations of Section 2201, the employer may file a
7request for an adjustment or refund of the amount erroneously
8paid. Interest shall be paid on refunds of erroneously paid
9contributions, penalties and interest imposed by this Act,
10except that if any refund is mailed by the Director within 90
11days after the date of the refund claim, no interest shall be
12due or paid. The interest shall begin to accrue as of the date
13of the refund claim and shall be paid at the rate of 1.5% per
14month computed at the rate of 12/365 of 1.5% for each day or
15fraction thereof. Interest paid pursuant to this Section shall
16be paid from monies in the special administrative account
17established by Sections 2100 and 2101. This Section shall apply
18only to refunds of contributions, penalties and interest which
19were paid as the result of wages paid after January 1, 1988.
20(Source: P.A. 90-554, eff. 12-12-97.)
 
21    (820 ILCS 405/2401)  (from Ch. 48, par. 721)
22    (Text of Section after amendment by P.A. 98-107)
23    Sec. 2401. Recording and release of lien. A. The lien
24created by Section 2400 shall be invalid only as to any
25innocent purchaser for value of stock in trade of any employer

 

 

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1in the usual course of such employer's business, and shall be
2invalid as to any innocent purchaser for value of any of the
3other assets to which such lien has attached, unless notice
4thereof has been filed by the Director in the office of the
5recorder of the county within which the property subject to the
6lien is situated. The Director may, in his discretion, for good
7cause shown and upon the reimbursement of any recording fees
8paid by the Director with respect to the lien, issue a
9certificate of withdrawal of notice of lien filed against any
10employer, which certificate shall be recorded in the same
11manner as herein provided for the recording of notice of liens.
12Such withdrawal of notice of lien shall invalidate such lien as
13against any person acquiring any of such employer's property or
14any interest therein, subsequent to the recordation of the
15withdrawal of notice of lien, but shall not otherwise affect
16the validity of such lien, nor shall it prevent the Director
17from re-recording notice of such lien. In the event notice of
18such lien is re-recorded, such notice shall be effective as
19against third persons only as of the date of such
20re-recordation.
21    B. The recorder of each county shall procure at the expense
22of the county a file labeled "Unemployment Compensation
23Contribution Lien Notice" and an index book labeled
24"Unemployment Compensation Contribution Lien Index." When a
25notice of any such lien is presented to him for filing, he
26shall file it in numerical order in the file and shall enter it

 

 

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1alphabetically in the index. The entry shall show the name and
2last known business address of the employer named in the
3notice, the serial number of the notice, the date and hour of
4filing, and the amount of contribution, interest and penalty
5thereon due and unpaid. When a certificate of complete or
6partial release of such lien issued by the Director is
7presented for filing in the office of the recorder where a
8notice of lien was filed, the recorder shall permanently attach
9the certificate of release to the notice of lien and shall
10enter the certificate of release and the date in the
11Unemployment Compensation Contribution Lien Index on the line
12where the notice of lien is entered. In case title to land to
13be affected by the Notice of Lien is registered under the
14provisions of "An Act Concerning Land Titles", approved May 1,
151897, as amended, such notice shall be filed in the office of
16the Registrar of Titles of the county within which the property
17subject to the lien is situated and shall be entered upon the
18register of titles as a memorial or charge upon each folium of
19the register of title affected by such notice, and the Director
20shall not have a preference over the rights of any bona fide
21purchaser, mortgagee, judgment creditor or other lien holder
22arising prior to the registration of such notice.
23    C. The Director shall have the power to issue a certificate
24of partial release of any part of the property subject to the
25lien, upon the reimbursement of any recording fees paid by the
26Director with respect to the lien, if he shall find that the

 

 

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1fair market value of that part of such property remaining
2subject to the lien is at least equal to the amount of all
3prior liens upon such property plus double the amount of the
4liability for contributions, interest and penalties thereon
5remaining unsatisfied.
6    D. Where the amount of or the liability for the payment of
7any contribution, interest or penalty is contested by any
8employing unit against whose property a lien has attached, and
9the determination of the Director with reference to such
10contribution has not become final, the Director may issue a
11certificate of release of lien upon the reimbursement of any
12recording fees paid by the Director with respect to the lien
13and the furnishing of bond by such employing unit in 125% the
14amount of the sum of such contribution, interest and penalty,
15for which lien is claimed, with good and sufficient surety to
16be approved by the Director conditioned upon the prompt payment
17of such contribution, together with interest and penalty
18thereon, by such employing unit to the Director immediately
19upon the decision of the Director in respect to the liability
20for such contribution, interest and penalty becoming final.
21    E. When a lien obtained pursuant to this Act has been
22satisfied and upon the reimbursement of any recording fees paid
23by the Director with respect to the lien, the Department shall
24issue a release to the person, or his agent, against whom the
25lien was obtained and such release shall contain in legible
26letters a statement as follows:

 

 

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1    FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
2    BE FILED WITH THE RECORDER OR THE REGISTRAR
3    OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED.
4    F. The Director may, by rule, require, as a condition of
5withdrawing, releasing, or partially releasing a lien recorded
6pursuant to this Section, that the employer reimburse the
7Department for any recording fees paid with respect to the
8lien.
9(Source: P.A. 98-107, eff. 7-1-14.)
 
10    (820 ILCS 405/1704.1 rep.)
11    Section 95. The Unemployment Insurance Act is amended by
12repealing Section 1704.1.
 
13    Section 99. Effective date. This Act takes effect January
141, 2015.".