Full Text of HB2699 100th General Assembly
HB2699sam001 100TH GENERAL ASSEMBLY | Sen. Chuck Weaver Filed: 5/5/2017
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| 1 | | AMENDMENT TO HOUSE BILL 2699
| 2 | | AMENDMENT NO. ______. Amend House Bill 2699 on page 1, by | 3 | | replacing line 5 with the following:
| 4 | | "changing Sections 1502.1, 1507.1, 1900, 2201, and 2201.1 as | 5 | | follows: | 6 | | (820 ILCS 405/1502.1) (from Ch. 48, par. 572.1)
| 7 | | Sec. 1502.1. Employer's benefit charges.
| 8 | | A. Benefit charges which result from payments to any | 9 | | claimant made on or
after July 1, 1989 shall be charged:
| 10 | | 1. For benefit years beginning prior to July 1, 1989, | 11 | | to
each employer who paid wages to the claimant during his | 12 | | base period;
| 13 | | 2. For benefit years beginning on or after July 1,
1989 | 14 | | but before January 1, 1993, to the later of:
| 15 | | a. the last employer prior to the beginning of the | 16 | | claimant's benefit
year:
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| 1 | | i. from whom the claimant was separated or who, | 2 | | by reduction of work
offered, caused the claimant | 3 | | to become unemployed as defined in Section 239,
| 4 | | and,
| 5 | | ii. for whom the claimant performed services | 6 | | in employment, on each of
30 days whether or not | 7 | | such days are consecutive, provided that the wages | 8 | | for
such services were earned during the period | 9 | | from the beginning of the
claimant's base period to | 10 | | the beginning of the claimant's benefit year; but
| 11 | | that employer shall not be charged if:
| 12 | | (1) the claimant's last separation from | 13 | | that employer was a
voluntary leaving without | 14 | | good cause, as the term is used in Section 601A | 15 | | or
under the circumstances described in | 16 | | paragraphs 1 and 2 of Section 601B; or
| 17 | | (2) the claimant's last separation from | 18 | | that employer was a
discharge for misconduct or | 19 | | a felony or theft connected with his work from | 20 | | that
employer, as these terms are used in | 21 | | Section 602; or
| 22 | | (3) after his last separation from that | 23 | | employer, prior to the
beginning of his benefit | 24 | | year, the claimant refused to accept an offer | 25 | | of or to
apply for suitable work from that | 26 | | employer without good cause, as these terms
are |
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| 1 | | used in Section 603; or
| 2 | | (4) the claimant, following his last | 3 | | separation from that employer,
prior to the | 4 | | beginning of his benefit year, is ineligible or | 5 | | would have
been ineligible under Section 612 if | 6 | | he has or had had base period wages
from the | 7 | | employers to which that Section applies; or
| 8 | | (5) the claimant subsequently performed | 9 | | services for at least 30
days for an individual | 10 | | or organization which is not an employer | 11 | | subject to
this Act; or
| 12 | | b. the single employer who pays wages to the | 13 | | claimant that allow him
to requalify for benefits after | 14 | | disqualification under Section 601, 602 or 603,
if:
| 15 | | i. the disqualifying event occurred prior to | 16 | | the beginning of the
claimant's benefit year, and
| 17 | | ii. the requalification occurred after the | 18 | | beginning of the claimant's
benefit year, and
| 19 | | iii. even if the 30 day requirement given in | 20 | | this paragraph is not
satisfied; but
| 21 | | iv. the requalifying employer shall not be | 22 | | charged if the claimant is
held ineligible with | 23 | | respect to that requalifying employer under | 24 | | Section
601, 602 or 603.
| 25 | | 3. For benefit years beginning on or after January 1, | 26 | | 1993, with
respect to each week for which benefits are |
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| 1 | | paid, to the later of:
| 2 | | a. the last employer:
| 3 | | i. from whom the claimant was separated or who, | 4 | | by reduction of
work offered, caused the claimant | 5 | | to become unemployed as defined in Section
239, and
| 6 | | ii. for whom the claimant performed services | 7 | | in employment, on
each of 30 days whether or not | 8 | | such days are consecutive, provided that the
wages | 9 | | for such services were earned since the beginning | 10 | | of the claimant's
base period; but that employer | 11 | | shall not be charged if:
| 12 | | (1) the claimant's separation from that | 13 | | employer was a voluntary
leaving without good | 14 | | cause, as the term is used in Section 601A or | 15 | | under
the circumstances described in | 16 | | paragraphs 1, 2, and 6 of
Section 601B; or
| 17 | | (2) the claimant's separation from that | 18 | | employer was a discharge
for misconduct or a | 19 | | felony or theft connected with his work from | 20 | | that
employer, as these terms are used in | 21 | | Section 602; or
| 22 | | (3) the claimant refused to accept an | 23 | | offer of or to apply for
suitable work from | 24 | | that employer without good cause, as these | 25 | | terms are
used in Section 603 (but only for | 26 | | weeks following the refusal of work); or
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| 1 | | (4) the claimant subsequently performed | 2 | | services for at least 30
days for an individual | 3 | | or organization which is not an employer | 4 | | subject to this
Act; or
| 5 | | (5) the claimant, following his separation | 6 | | from that employer, is
ineligible or would have | 7 | | been ineligible under Section 612 if he has or | 8 | | had
had base period wages from the employers to | 9 | | which that Section applies
(but only for the | 10 | | period of ineligibility or potential | 11 | | ineligibility); or
| 12 | | b. the single employer who pays wages to the | 13 | | claimant that allow him
to requalify for benefits after | 14 | | disqualification under Section 601, 602, or
603, even | 15 | | if the 30 day requirement given in this paragraph is | 16 | | not
satisfied; but the requalifying employer shall not | 17 | | be charged if the
claimant is held ineligible with | 18 | | respect to that requalifying employer
under Section | 19 | | 601, 602, or 603.
| 20 | | B. Whenever a claimant is ineligible pursuant to Section | 21 | | 614 on the
basis of wages paid during his base period, any days | 22 | | on which such wages
were earned shall not be counted in | 23 | | determining whether that claimant
performed services during at | 24 | | least 30 days for the employer that paid such
wages as required | 25 | | by paragraphs 2 and 3 of subsection A.
| 26 | | C. If no employer meets the requirements of paragraph 2 or |
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| 1 | | 3 of subsection
A, then no employer will be chargeable for any | 2 | | benefit charges which result
from the payment of benefits to | 3 | | the claimant for that benefit year.
| 4 | | D. Notwithstanding the preceding provisions of this | 5 | | Section, no employer
shall be chargeable for any benefit | 6 | | charges which result from the payment of
benefits to any | 7 | | claimant after the effective date of this amendatory Act of
| 8 | | 1992 where the claimant's separation from that employer | 9 | | occurred
as a result of his detention, incarceration, or | 10 | | imprisonment under State,
local, or federal law.
| 11 | | D-1. Notwithstanding any other provision of this Act, | 12 | | including those affecting finality of benefit charges or rates, | 13 | | an employer shall not be chargeable for any benefit charges | 14 | | which result from the payment of benefits to an individual for | 15 | | any week of unemployment after January 1, 2003,
during the | 16 | | period that the employer's business is closed solely because of | 17 | | the entrance of the employer, one or more of the partners or | 18 | | officers of the employer, or the majority stockholder of the | 19 | | employer into active duty in the Illinois National Guard or the | 20 | | Armed Forces of the United States.
| 21 | | D-2. Notwithstanding any other provision of this Act, an | 22 | | employer shall not be chargeable for any benefit charges that | 23 | | result from the payment of benefits to an individual for any | 24 | | week of unemployment after the effective date of this | 25 | | amendatory Act of the 100th General Assembly if the payment was | 26 | | the result of the individual voluntarily leaving work under the |
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| 1 | | conditions described in item 6 of subsection C of Section 500. | 2 | | E. For the purposes of Sections 302, 409, 701, 1403, 1404, | 3 | | 1405 and
1508.1, last employer means the employer that:
| 4 | | 1. is charged for benefit payments which become benefit | 5 | | charges under this
Section, or
| 6 | | 2. would have been liable for such benefit charges if | 7 | | it had not elected
to make payments in lieu of | 8 | | contributions.
| 9 | | (Source: P.A. 93-634, eff. 1-1-04; 93-1012, eff. 8-24-04; | 10 | | 94-152, eff. 7-8-05.)
| 11 | | (820 ILCS 405/1507.1) | 12 | | Sec. 1507.1. Transfer of trade or business; contribution | 13 | | rate. Notwithstanding any other provision of this Act: | 14 | | A.(1) If an individual or entity transfers its trade or | 15 | | business, or a portion thereof, to another individual or entity | 16 | | and, at the time of the transfer, there is any substantial | 17 | | common ownership, management, or control of the transferor and | 18 | | transferee, then the experience rating record attributable to | 19 | | records of the transferred trade or business transferor and | 20 | | transferee shall be transferred to the transferee combined for | 21 | | the purpose of determining their rates of contribution . For | 22 | | purposes of this subsection, a transfer of trade or business | 23 | | includes but is not limited to the transfer of some or all of | 24 | | the transferor's workforce. For purposes of calculating the | 25 | | contribution rates of the transferor and transferee pursuant to |
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| 1 | | this paragraph, within 30 days of the date of a transfer to | 2 | | which this paragraph applies, the transferor and transferee | 3 | | shall provide to the Department such information, as the | 4 | | Director by rule prescribes, which will show the portion of the | 5 | | transferor's experience rating record that is attributable to | 6 | | the transferred trade or business. | 7 | | (1.5) If, following a transfer of experience rating records | 8 | | under paragraph (1), the Director determines that a substantial | 9 | | purpose of the transfer of trade or business was to obtain a | 10 | | reduced liability for contributions, the experience rating | 11 | | accounts of the employers involved shall be combined into a | 12 | | single account and a single rate shall be assigned to the | 13 | | account. | 14 | | (2) For the calendar year in which there occurs a transfer | 15 | | to which paragraph (1) or (1.5) applies: | 16 | | (a) If the transferor or transferee had a contribution | 17 | | rate applicable to it for the calendar year, it shall | 18 | | continue with that contribution rate for the remainder of | 19 | | the calendar year. | 20 | | (b) If the transferee had no contribution rate | 21 | | applicable to it for the calendar year, then the | 22 | | contribution rate of the transferee shall be computed for | 23 | | the calendar year based on the experience rating record of | 24 | | the transferor or, where there is more than one transferor, | 25 | | the combined experience rating records of the transferors, | 26 | | subject to the 5.4% rate ceiling
established pursuant to |
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| 1 | | subsection G of Section 1506.1 and
subsection A of Section | 2 | | 1506.3. | 3 | | B. If any individual or entity that is not an employer | 4 | | under this Act at the time of the acquisition acquires the | 5 | | trade or business of an employing unit, the experience rating | 6 | | record of the acquired business shall not be transferred to the | 7 | | individual or entity if the Director finds that the individual | 8 | | or entity acquired the business solely or primarily for the | 9 | | purpose of obtaining a lower rate of contributions. Evidence | 10 | | that a business was acquired solely or primarily for the | 11 | | purpose of obtaining a lower rate of contributions includes but | 12 | | is not necessarily limited to the following: the cost of | 13 | | acquiring the business is low in relation to the individual's | 14 | | or entity's overall operating costs subsequent to the | 15 | | acquisition; the individual or entity discontinued the | 16 | | business enterprise of the acquired business immediately or | 17 | | shortly after the acquisition; or the individual or entity | 18 | | hired a significant number of individuals for performance of | 19 | | duties unrelated to the business activity conducted prior to | 20 | | acquisition. | 21 | | C. An individual or entity to which subsection A applies | 22 | | shall pay contributions with respect to each calendar year at a | 23 | | rate consistent with that subsection, and an individual or | 24 | | entity to which subsection B applies shall pay contributions | 25 | | with respect to each calendar year at a rate consistent with | 26 | | that subsection. If an individual or entity knowingly violates |
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| 1 | | or attempts to violate this subsection, the individual or | 2 | | entity shall be subject to the following penalties: | 3 | | (1) If the individual or entity is an employer, then,
| 4 | | in addition to the contribution rate that would otherwise | 5 | | be calculated (including any fund building rate provided | 6 | | for pursuant to Section 1506.3),
the employer shall be | 7 | | assigned a penalty contribution rate
equivalent to 50% of | 8 | | the contribution rate (including any fund building rate | 9 | | provided for pursuant to Section 1506.3), as calculated | 10 | | without regard to this subsection for the
calendar year | 11 | | with respect to which the violation or
attempted violation | 12 | | occurred and the
immediately following calendar year. In | 13 | | the case of an employer whose contribution rate, as | 14 | | calculated without regard to this subsection or Section | 15 | | 1506.3, equals or exceeds the maximum rate established | 16 | | pursuant to paragraph 2 of subsection E of Section 1506.1, | 17 | | the penalty rate shall equal 50% of the sum of that maximum | 18 | | rate and the fund building rate provided for pursuant to | 19 | | Section 1506.3. In the case of an employer whose | 20 | | contribution rate is subject to the 5.4% rate ceiling | 21 | | established pursuant to subsection G of Section 1506.1 and | 22 | | subsection A of Section 1506.3, the penalty rate shall | 23 | | equal 2.7%. If any product obtained
pursuant to this | 24 | | subsection is not an exact multiple of
one-tenth of 1%, it | 25 | | shall be increased or reduced, as the
case may be, to the | 26 | | nearer multiple of one-tenth of 1%. If
such product is |
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| 1 | | equally near to 2 multiples of one-tenth of
1%, it shall be | 2 | | increased to the higher multiple of
one-tenth of 1%. Any | 3 | | payment attributable to the penalty contribution rate | 4 | | shall be deposited into the clearing account. | 5 | | (2) If the individual or entity is not an employer, the | 6 | | individual or entity shall be subject to a penalty of | 7 | | $10,000 for each violation. Any penalty attributable to | 8 | | this paragraph (2) shall be deposited into the Special | 9 | | Administrative Account. | 10 | | D. An individual or entity shall not knowingly advise | 11 | | another in a way that results in a violation of subsection C. | 12 | | An individual or entity that violates this subsection shall be | 13 | | subject to a penalty of $10,000 for each violation. Any such | 14 | | penalty shall be deposited into the Special Administrative | 15 | | Account. | 16 | | E. Any individual or entity that knowingly violates | 17 | | subsection C or D shall be guilty of a Class B misdemeanor. In | 18 | | the case of a corporation, the president, the secretary, and | 19 | | the treasurer, and any other officer exercising corresponding | 20 | | functions, shall each be subject to the aforesaid penalty for | 21 | | knowingly violating subsection C or D. | 22 | | F. The Director shall establish procedures to identify the | 23 | | transfer or acquisition of a trade or business for purposes of | 24 | | this Section. | 25 | | G. For purposes of this Section: | 26 | | "Experience rating record" shall consist of years |
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| 1 | | during which liability for the payment of contributions was | 2 | | incurred, all benefit charges incurred, and all wages paid | 3 | | for insured work, including but not limited to years, | 4 | | benefit charges, and wages attributed to an individual or | 5 | | entity pursuant to Section 1507 or subsection A. | 6 | | "Knowingly" means having actual knowledge of or acting | 7 | | with deliberate ignorance of or reckless disregard for the | 8 | | statutory provision involved. | 9 | | "Transferee" means any individual or entity to which | 10 | | the transferor transfers its trade or business or any | 11 | | portion thereof. | 12 | | "Transferor" means the individual or entity that | 13 | | transfers its trade or business or any portion thereof. | 14 | | H. This Section shall be interpreted and applied in such a | 15 | | manner as to meet the minimum requirements contained in any | 16 | | guidance or regulations issued by the United States Department | 17 | | of Labor. Insofar as it applies to the interpretation and | 18 | | application of the term "substantial", as used in subsection A, | 19 | | this subsection H is not intended to alter the meaning of | 20 | | "substantially", as used in Section 1507 and construed by | 21 | | precedential judicial opinion, or any comparable term as | 22 | | elsewhere used in this Act.
| 23 | | (Source: P.A. 94-301, eff. 1-1-06.)"; and | 24 | | on page 9, by inserting immediately below line 21 the | 25 | | following:
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| 1 | | "(820 ILCS 405/2201) (from Ch. 48, par. 681)
| 2 | | Sec. 2201. Refund or adjustment of contributions. Except as | 3 | | otherwise provided in this Section, not Not later than 3 years | 4 | | after the date upon which the Director first notifies an | 5 | | employing unit that it has paid
contributions, interest , or | 6 | | penalties thereon erroneously, the employing unit may file a
| 7 | | claim with the Director for an adjustment thereof in connection | 8 | | with
subsequent contribution payments, or for a refund thereof | 9 | | where such
adjustment cannot be made; provided, however, that | 10 | | no refund or adjustment
shall be made of any contribution, the | 11 | | amount of which has been determined
and assessed by the | 12 | | Director, if such contribution was paid after the
determination | 13 | | and assessment of the Director became final, and provided,
| 14 | | further, that any such adjustment or refund, involving | 15 | | contributions with
respect to wages on the basis of which | 16 | | benefits have been paid, shall be
reduced by the amount of | 17 | | benefits so paid. In the case of an erroneous payment that | 18 | | occurred on or after January 1, 2015 and prior to the effective | 19 | | date of this amendatory Act of the 100th General Assembly, the | 20 | | employing unit may file the claim for adjustment or refund not | 21 | | later than June 30, 2018 or 3 years after the date of the | 22 | | erroneous payment, whichever is later, subject to all of the | 23 | | conditions otherwise applicable pursuant to this Section | 24 | | regarding a claim for adjustment or refund. Upon receipt of a | 25 | | claim the
Director shall make his determination, either |
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| 1 | | allowing such claim in whole
or in part, or ordering that it be | 2 | | denied, and serve notice upon the
claimant of such | 3 | | determination. Such determination of the Director shall be
| 4 | | final at the expiration of 20 days from the date of service of | 5 | | such notice
unless the claimant shall have filed with the | 6 | | Director a written protest
and a petition for hearing, | 7 | | specifying his objections thereto. Upon receipt
of such | 8 | | petition within the 20 days allowed, the Director shall fix the
| 9 | | time and place for a hearing and shall notify the claimant | 10 | | thereof. At any
hearing held as herein provided, the | 11 | | determination of the Director shall be
prima facie correct and | 12 | | the burden shall be upon the protesting employing
unit to prove | 13 | | that it is incorrect. All of the provisions of this Act
| 14 | | applicable to hearings conducted pursuant to Section 2200 shall | 15 | | be
applicable to hearings conducted pursuant to this Section. | 16 | | Upon the
conclusion of such hearing, a decision shall be made | 17 | | by the Director and
notice thereof given to the claimant. If | 18 | | the Director shall decide that the
claim be allowed in whole or | 19 | | in part, or if such allowance be ordered by
the Court pursuant | 20 | | to Section 2205 and the judgment of said Court has
become | 21 | | final, the Director shall, if practicable, make adjustment | 22 | | without
interest in connection with subsequent contribution | 23 | | payments by the
claimant, and if adjustments thereof cannot | 24 | | practicably be made in
connection with such subsequent | 25 | | contribution payments, then the Director
shall refund to the | 26 | | claimant the amount so allowed, without interest
except as |
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| 1 | | otherwise provided in Section 2201.1 from
moneys in the benefit | 2 | | account established by this Act. Nothing herein
contained shall | 3 | | prohibit the Director from making adjustment or refund upon
his | 4 | | own initiative, within the time allowed for filing claim | 5 | | therefor,
provided that the Director shall make no refund or | 6 | | adjustment of any
contribution, the amount of which he has | 7 | | previously determined and
assessed, if such contribution was | 8 | | paid after the determination and
assessment became final.
| 9 | | If this State should not be certified for any year by the | 10 | | Secretary of
Labor of the United States of America, or other | 11 | | appropriate Federal agency,
under Section 3304 of the Federal | 12 | | Internal Revenue Code of 1954, the
Director shall refund | 13 | | without interest to any instrumentality of the United
States | 14 | | subject to this Act by virtue of permission granted in an Act | 15 | | of
Congress, the amount of contributions paid by such | 16 | | instrumentality with
respect to such year.
| 17 | | The Director may by regulation provide that, if there is a | 18 | | total credit
balance of less than $2 in an employer's account | 19 | | with respect to contributions,
interest, and penalties, the | 20 | | amount may be disregarded by the Director; once
disregarded, | 21 | | the amount shall not be considered a credit balance in the
| 22 | | account and shall not be subject to either an adjustment or a | 23 | | refund.
| 24 | | (Source: P.A. 98-1133, eff. 1-1-15.)
| 25 | | (820 ILCS 405/2201.1) (from Ch. 48, par. 681.1)
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| 1 | | Sec. 2201.1. Interest on Overpaid Contributions, Penalties | 2 | | and
Interest. The Director shall quarterly semi-annually | 3 | | furnish each employer with a
statement of credit balances in | 4 | | the employer's account where the balances
with respect to all | 5 | | contributions, interest and penalties combined equal or
exceed | 6 | | $2. Under regulations
prescribed by the Director and subject to | 7 | | the limitations of Section 2201,
the employer may file a | 8 | | request for an adjustment or refund of the amount
erroneously | 9 | | paid. Interest shall be paid on refunds of erroneously paid
| 10 | | contributions, penalties and interest imposed by this Act, | 11 | | except that if
any refund is mailed by the Director within 90 | 12 | | days after the date of the
refund claim, no interest shall be | 13 | | due or paid. The interest shall begin
to accrue as of the date | 14 | | of the refund claim and shall be paid at the rate
of 1.5% per | 15 | | month computed at the rate of 12/365 of 1.5% for each day or
| 16 | | fraction thereof. Interest paid pursuant to this Section shall | 17 | | be paid from
monies in the special administrative account | 18 | | established by Sections 2100
and 2101. This Section shall apply | 19 | | only to refunds of contributions,
penalties and interest which | 20 | | were paid as the result of wages paid after
January 1, 1988.
| 21 | | (Source: P.A. 98-1133, eff. 1-1-15.)".
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