Full Text of SB2961 99th General Assembly
SB2961 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 SB2961 Introduced 2/18/2016, by Sen. Chuck Weaver SYNOPSIS AS INTRODUCED: |
| 820 ILCS 405/2201 | from Ch. 48, par. 681 | 820 ILCS 405/2201.1 | from Ch. 48, par. 681.1 |
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Amends the Unemployment Insurance Act. Provides that no later than 3 years after the date of an overpayment, rather than 3 years after notification by the Director of an overpayment, an employing unit may file a claim for an adjustment in contributions or a refund. Provides that the Director shall provide statements of employer account balances quarterly rather than semi-annually. Applies to credits and refunds after January 1, 2017. Effective January 1, 2017.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning employment.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Unemployment Insurance Act is amended by | 5 | | changing Sections 2201 and 2201.1 as follows:
| 6 | | (820 ILCS 405/2201) (from Ch. 48, par. 681)
| 7 | | Sec. 2201. Refund or adjustment of contributions. Not | 8 | | later than 3 years after the date of overpayment by upon which | 9 | | the Director first notifies an employing unit of that it has | 10 | | paid
contributions, interest or penalties thereon erroneously, | 11 | | the employing unit may file a
claim with the Director for an | 12 | | adjustment thereof in connection with
subsequent contribution | 13 | | payments, or for a refund thereof where such
adjustment cannot | 14 | | be made; provided, however, that no refund or adjustment
shall | 15 | | be made of any contribution, the amount of which has been | 16 | | determined
and assessed by the Director, if such contribution | 17 | | was paid after the
determination and assessment of the Director | 18 | | became final, and provided,
further, that any such adjustment | 19 | | or refund, involving contributions with
respect to wages on the | 20 | | basis of which benefits have been paid, shall be
reduced by the | 21 | | amount of benefits so paid. Upon receipt of a claim the
| 22 | | Director shall make his determination, either allowing such | 23 | | claim in whole
or in part, or ordering that it be denied, and |
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| 1 | | serve notice upon the
claimant of such determination. Such | 2 | | determination of the Director shall be
final at the expiration | 3 | | of 20 days from the date of service of such notice
unless the | 4 | | claimant shall have filed with the Director a written protest
| 5 | | and a petition for hearing, specifying his objections thereto. | 6 | | Upon receipt
of such petition within the 20 days allowed, the | 7 | | Director shall fix the
time and place for a hearing and shall | 8 | | notify the claimant thereof. At any
hearing held as herein | 9 | | provided, the determination of the Director shall be
prima | 10 | | facie correct and the burden shall be upon the protesting | 11 | | employing
unit to prove that it is incorrect. All of the | 12 | | provisions of this Act
applicable to hearings conducted | 13 | | pursuant to Section 2200 shall be
applicable to hearings | 14 | | conducted pursuant to this Section. Upon the
conclusion of such | 15 | | hearing, a decision shall be made by the Director and
notice | 16 | | thereof given to the claimant. If the Director shall decide | 17 | | that the
claim be allowed in whole or in part, or if such | 18 | | allowance be ordered by
the Court pursuant to Section 2205 and | 19 | | the judgment of said Court has
become final, the Director | 20 | | shall, if practicable, make adjustment without
interest in | 21 | | connection with subsequent contribution payments by the
| 22 | | claimant, and if adjustments thereof cannot practicably be made | 23 | | in
connection with such subsequent contribution payments, then | 24 | | the Director
shall refund to the claimant the amount so | 25 | | allowed, without interest
except as otherwise provided in | 26 | | Section 2201.1 from
moneys in the benefit account established |
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| 1 | | by this Act. Nothing herein
contained shall prohibit the | 2 | | Director from making adjustment or refund upon
his own | 3 | | initiative, within the time allowed for filing claim therefor,
| 4 | | provided that the Director shall make no refund or adjustment | 5 | | of any
contribution, the amount of which he has previously | 6 | | determined and
assessed, if such contribution was paid after | 7 | | the determination and
assessment became final.
| 8 | | If this State should not be certified for any year by the | 9 | | Secretary of
Labor of the United States of America, or other | 10 | | appropriate Federal agency,
under Section 3304 of the Federal | 11 | | Internal Revenue Code of 1954, the
Director shall refund | 12 | | without interest to any instrumentality of the United
States | 13 | | subject to this Act by virtue of permission granted in an Act | 14 | | of
Congress, the amount of contributions paid by such | 15 | | instrumentality with
respect to such year.
| 16 | | The Director may by regulation provide that, if there is a | 17 | | total credit
balance of less than $2 in an employer's account | 18 | | with respect to contributions,
interest, and penalties, the | 19 | | amount may be disregarded by the Director; once
disregarded, | 20 | | the amount shall not be considered a credit balance in the
| 21 | | account and shall not be subject to either an adjustment or a | 22 | | refund.
| 23 | | The changes made to this Section by this amendatory Act of | 24 | | the 99th General Assembly apply to refunds and credits after | 25 | | January 1, 2017. | 26 | | (Source: P.A. 98-1133, eff. 1-1-15.)
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| 1 | | (820 ILCS 405/2201.1) (from Ch. 48, par. 681.1)
| 2 | | Sec. 2201.1. Interest on Overpaid Contributions, Penalties | 3 | | and
Interest. The Director shall quarterly semi-annually | 4 | | furnish each employer with a
statement of credit balances in | 5 | | the employer's account where the balances
with respect to all | 6 | | contributions, interest and penalties combined equal or
exceed | 7 | | $2. Under regulations
prescribed by the Director and subject to | 8 | | the limitations of Section 2201,
the employer may file a | 9 | | request for an adjustment or refund of the amount
erroneously | 10 | | paid. Interest shall be paid on refunds of erroneously paid
| 11 | | contributions, penalties and interest imposed by this Act, | 12 | | except that if
any refund is mailed by the Director within 90 | 13 | | days after the date of the
refund claim, no interest shall be | 14 | | due or paid. The interest shall begin
to accrue as of the date | 15 | | of the refund claim and shall be paid at the rate
of 1.5% per | 16 | | month computed at the rate of 12/365 of 1.5% for each day or
| 17 | | fraction thereof. Interest paid pursuant to this Section shall | 18 | | be paid from
monies in the special administrative account | 19 | | established by Sections 2100
and 2101. This Section shall apply | 20 | | only to refunds of contributions,
penalties and interest which | 21 | | were paid as the result of wages paid after
January 1, 1988.
| 22 | | The changes made to this Section by this amendatory Act of | 23 | | the 99th General Assembly apply to refunds and credits after | 24 | | January 1, 2017. | 25 | | (Source: P.A. 98-1133, eff. 1-1-15.)
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| 1 | | Section 99. Effective date. This Act takes effect January | 2 | | 1, 2017.
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