Full Text of HB2539 94th General Assembly
HB2539 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 HB2539
Introduced 2/18/2005, by Rep. Cynthia Soto - Jay C. Hoffman SYNOPSIS AS INTRODUCED: |
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820 ILCS 405/1500 |
from Ch. 48, par. 570 |
820 ILCS 405/1506.1 |
from Ch. 48, par. 576.1 |
820 ILCS 405/1506.3 |
from Ch. 48, par. 576.3 |
820 ILCS 405/1507 |
from Ch. 48, par. 577 |
820 ILCS 405/1507.1 new |
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Amends the Unemployment Insurance Act. Provides that, if an individual or entity transfers all or a portion of its trade or business and the transferor and transferee have any material common ownership, management, or control of the trade or business, the experience rating records of the transferor and transferee shall be combined for the purpose of determining their contribution rate. Provides that, except under specified conditions, if the transferor or transferee had a contribution rate applicable to it for the calendar year in which the transfer occurred, it shall continue with that contribution rate for the remainder of the calendar year and, if the transferee had no contribution rate applicable to it for the calendar year in which the transfer occurred, the contribution rate of the transferee shall be the same as the contribution rate of the transferor for the remainder of the calendar year, subject to a rate ceiling. Provides that, if the contribution rate of the transferor immediately prior to the transfer is higher than the contribution rate of the transferee for the calendar year in which the transfer occurs, the contribution rate of the transferee shall be the same for the calendar year as the contribution rate of the transferor, subject to a rate ceiling. Provides that, if an individual or entity that is not an employer under the Act acquires the trade or business of an employing unit, the experience rating record of the acquired business shall not be transferred to the individual or entity if the Director of Employment Security finds that the individual or entity acquired the business solely or primarily to obtain a lower contribution rate. Sets forth penalties for violations. Provides that the new provisions shall be interpreted and applied to meet the minimum requirements of any guidance or regulations issued by the U.S. Department of Labor. Makes other changes.
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CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY | |
FISCAL NOTE ACT MAY APPLY |
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A BILL FOR
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HB2539 |
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| AN ACT concerning unemployment insurance.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Unemployment Insurance Act is amended by | 5 |
| changing Sections 1500, 1506.1, 1506.3, and 1507 and by adding | 6 |
| Section 1507.1 as follows:
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| (820 ILCS 405/1500) (from Ch. 48, par. 570)
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| Sec. 1500. Rate of contribution.
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| A. For the six months' period beginning July 1, 1937, and | 10 |
| for each of the
calendar years 1938 to 1959, inclusive, each | 11 |
| employer shall pay contributions
on wages at the percentages | 12 |
| specified in or determined in accordance with
the provisions of | 13 |
| this Act as amended and in effect on July 11, 1957.
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| B. For the calendar years 1960 through 1983,
each employer | 15 |
| shall pay contributions equal to 2.7 percent with respect
to | 16 |
| wages for insured work paid during each such calendar year, | 17 |
| except that
the contribution rate of each employer who has | 18 |
| incurred liability for the
payment of contributions within each | 19 |
| of the three calendar years immediately
preceding the calendar | 20 |
| year for which a rate is being determined, shall
be determined | 21 |
| as provided in Sections 1501 to 1507, inclusive.
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| For the calendar year 1984 and each calendar year | 23 |
| thereafter, except as provided in Section 1507.1, each
employer | 24 |
| shall pay contributions at a percentage rate equal
to the | 25 |
| greatest of 2.7%, or 2.7% multiplied by the current adjusted | 26 |
| State
experience factor, as determined for each calendar year | 27 |
| by the Director
in accordance with the provisions of Sections | 28 |
| 1504 and 1505, or the average
contribution rate for his major | 29 |
| classification in the Standard Industrial
Code,
or another | 30 |
| classification sanctioned by the United States Department of | 31 |
| Labor
and prescribed by the Director by rule,
with respect to | 32 |
| wages for insured work paid during such year. The
Director of |
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| Employment Security shall
determine for calendar year 1984 and | 2 |
| each calendar year
thereafter by a method pursuant to adopted | 3 |
| rules each
individual employer's industrial code and the | 4 |
| average contribution rate for
each major classification in the | 5 |
| Standard Industrial Code, or each other
classification | 6 |
| sanctioned by the United States Department of Labor and
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| prescribed by the Director by rule. Notwithstanding
the | 8 |
| preceding provisions of this paragraph, the contribution rate | 9 |
| for
calendar years 1984, 1985 and 1986 of each
employer who has | 10 |
| incurred liability for the payment of contributions within
each | 11 |
| of the two calendar years immediately preceding the calendar | 12 |
| year for
which a rate is being determined,
and the contribution | 13 |
| rate for calendar year 1987 and each calendar year
thereafter | 14 |
| of each employer who has incurred liability for the payment of
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| contributions within each of the three calendar years | 16 |
| immediately preceding
the calendar year for which a rate is | 17 |
| being determined
shall be determined as provided in Sections | 18 |
| 1501 to 1507.1
1507 , inclusive.
Provided, however, that the | 19 |
| contribution rate for calendar years 1989 and
1990 of each | 20 |
| employer who has had experience with the risk of unemployment
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| for at least 13 consecutive months ending June 30 of the | 22 |
| preceding calendar
year shall be a rate determined in | 23 |
| accordance with this Section or a rate
determined as if it had | 24 |
| been calculated in accordance with Sections 1501
through 1507, | 25 |
| inclusive, whichever is greater, except that for purposes of
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| calculating the benefit wage ratio as provided in Section 1503, | 27 |
| such
benefit wage ratio shall be a percentage equal to the | 28 |
| total of benefit
wages for the 12 consecutive calendar month | 29 |
| period ending on the above
preceding June 30, divided by the | 30 |
| total wages for insured work subject to
the payment of | 31 |
| contributions under Sections 234, 235 and 245 for the same
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| period and provided, further, however, that the contribution | 33 |
| rate for
calendar year 1991 and for each calendar year | 34 |
| thereafter of each employer
who has had experience with the | 35 |
| risk of unemployment for at least 13
consecutive months ending | 36 |
| June 30 of the preceding calendar year shall be a
rate |
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| determined in accordance with this Section or a rate determined | 2 |
| as if
it had been calculated in accordance with Sections 1501 | 3 |
| through 1507.1
1507 ,
inclusive,
whichever is greater, except | 4 |
| that for purposes of calculating the benefit
ratio as provided | 5 |
| in Section 1503.1, such benefit ratio shall be a
percentage | 6 |
| equal to the total of benefit charges for the 12 consecutive
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| calendar month period ending on the above preceding June 30, | 8 |
| multiplied by
the benefit conversion factor applicable to such | 9 |
| year, divided by the total
wages for insured work subject to | 10 |
| the payment of contributions under
Sections 234, 235 and 245 | 11 |
| for the same period.
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| C. Except as expressly provided in this Act, the provisions | 13 |
| of
Sections 1500 to 1510, inclusive, do not apply to any | 14 |
| nonprofit
organization for any period with respect to which it | 15 |
| does not incur
liability for the payment of contributions by | 16 |
| reason of having elected
to make payments in lieu of | 17 |
| contributions, or to any political
subdivision or municipal | 18 |
| corporation for any period with respect to
which it is not | 19 |
| subject to payments in lieu of contributions under the
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| provisions of paragraph 1 of Section 302C by reason of having | 21 |
| elected to
make payments in lieu of contributions under | 22 |
| paragraph 2 of that
Section or to any governmental entity | 23 |
| referred to in clause (B) of Section
211.1. Wages paid to an | 24 |
| individual which are subject to contributions under
Section | 25 |
| 1405 A, or on the basis of which benefits are paid to him which | 26 |
| are
subject to payment in lieu of contributions under Sections | 27 |
| 1403, 1404, or
1405 B, or under paragraph 2 of Section 302C, | 28 |
| shall not become benefit
wages or benefit charges under the | 29 |
| provisions of Sections 1501 or
1501.1, respectively, except for | 30 |
| purposes of determining a rate of
contribution for 1984 and | 31 |
| each calendar year thereafter for any
governmental entity | 32 |
| referred to in clause (B) of Section 211.1 which does
not elect | 33 |
| to make payments in lieu of contributions.
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| D. If an employer's business is closed solely because of | 35 |
| the
entrance of one or more of the owners, partners, officers, | 36 |
| or the
majority stockholder into the armed forces of the United |
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| States, or of
any of its allies, or of the United Nations, and, | 2 |
| if the business is
resumed within two years after the discharge | 3 |
| or release of such person
or persons from active duty in the | 4 |
| armed forces, the employer will be
deemed to have incurred | 5 |
| liability for the payment of contributions
continuously | 6 |
| throughout such period. Such an employer, for the purposes
of | 7 |
| Section 1506.1, will be deemed to have paid
contributions upon | 8 |
| wages for insured work during the applicable period
specified | 9 |
| in Section 1503 on or before the date designated therein,
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| provided that no wages became benefit wages during the | 11 |
| applicable period
specified in Section 1503.
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| (Source: P.A. 91-342, eff. 1-1-00.)
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| (820 ILCS 405/1506.1) (from Ch. 48, par. 576.1)
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| Sec. 1506.1. Determination of Employer's Contribution | 15 |
| Rate.
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| A. The contribution rate for any calendar year prior to | 17 |
| 1982 of each
employer who has incurred liability for the | 18 |
| payment of contributions within
each of the three calendar | 19 |
| years immediately preceding the calendar year for
which a rate | 20 |
| is being determined shall be determined in accordance with
the | 21 |
| provisions of this Act as amended and in effect on October 5, | 22 |
| 1980.
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| B. The contribution rate for calendar years 1982 and 1983 | 24 |
| of
each employer who has incurred liability for the payment of | 25 |
| contributions
within each of the three calendar years | 26 |
| immediately preceding the calendar
year for which a rate is | 27 |
| being determined shall be the product obtained by
multiplying | 28 |
| the employer's benefit wage ratio for that calendar year by the
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| adjusted state experience factor for the same year, provided | 30 |
| that:
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| 1. No employer's contribution rate shall be lower than | 32 |
| two-tenths of
1 percent or higher than 5.3%; and
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| 2. Intermediate contribution rates between such | 34 |
| minimum and maximum
rates shall be at one-tenth of 1 | 35 |
| percent intervals.
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| 3. If the product obtained as provided in this | 2 |
| subsection is not an
exact multiple of one-tenth of 1 | 3 |
| percent, it shall be increased or
reduced, as the case may | 4 |
| be, to the nearer multiple of one-tenth of 1
percent. If | 5 |
| such product is equally near to two multiples of one-tenth
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| of 1 percent, it shall be increased to the higher multiple | 7 |
| of one-tenth
of 1 percent. If such product is less than | 8 |
| two-tenths of one percent,
it shall be increased to | 9 |
| two-tenths of 1 percent, and if greater than 5.3%,
it shall | 10 |
| be reduced to 5.3%.
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| The contribution rate of each employer for whom wages | 12 |
| became
benefit wages during the applicable period specified in | 13 |
| Section 1503,
but who paid no contributions upon wages for | 14 |
| insured work during such
period on or before the date | 15 |
| designated in Section 1503, shall be 5.3%.
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| The contribution rate of each employer for whom no wages | 17 |
| became
benefit wages during the applicable period specified in | 18 |
| Section 1503,
and who paid no contributions upon wages for | 19 |
| insured work during such
period on or before the date specified | 20 |
| in Section 1503, shall be 2.7 percent.
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| Notwithstanding the other provisions of this Section, no | 22 |
| employer's
contribution rate with respect to calendar years | 23 |
| 1982 and
1983 shall exceed 2.7 percent of the wages for insured | 24 |
| work paid
by him during any calendar quarter, if such wages | 25 |
| paid during such
calendar quarter total less than $50,000.
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| C. The contribution rate for calendar years 1984, 1985 and | 27 |
| 1986 of each
employer who has incurred liability
for the | 28 |
| payment of contributions within each of the two calendar years
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| immediately preceding the calendar year for which a rate is | 30 |
| being determined
shall be the product obtained by multiplying | 31 |
| the employer's benefit wage
ratio for that calendar year by the | 32 |
| adjusted state experience factor for
the same year, provided | 33 |
| that:
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| 1. An employer's minimum contribution rate shall be the | 35 |
| greater of: .2%;
or, the product obtained by multiplying | 36 |
| .2% by the adjusted state experience
factor for the |
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| applicable calendar year.
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| 2. An employer's maximum contribution rate shall be the | 3 |
| greater of 5.5%
or the product of 5.5% and the adjusted | 4 |
| State experience factor for the
applicable calendar year | 5 |
| except that such maximum contribution rate shall
not be | 6 |
| higher than 6.3% for calendar year 1984, nor be higher than | 7 |
| 6.6%
or lower than 6.4% for calendar year 1985, nor be | 8 |
| higher than 6.7% or lower
than 6.5% for calendar year 1986.
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| 3. If any product obtained in this subsection is not an | 10 |
| exact
multiple of one-tenth of one percent, it shall be | 11 |
| increased or reduced,
as the case may be to the nearer | 12 |
| multiple of one-tenth of one percent. If
such product is | 13 |
| equally near to two multiples of one-tenth of one percent,
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| it shall be increased to the higher multiple of one-tenth | 15 |
| of one percent.
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| 4. Intermediate rates between such minimum and maximum | 17 |
| rates shall be
at one-tenth of one percent intervals.
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| The contribution rate of each employer for whom wages | 19 |
| became benefit wages
during the applicable period specified in | 20 |
| Section 1503, but who paid no
contributions upon wages for | 21 |
| insured work during such period on or before
the date | 22 |
| designated in Section 1503, shall be the maximum contribution | 23 |
| rate
as determined by paragraph 2 of this subsection. The | 24 |
| contribution rate for
each employer for whom no wages became | 25 |
| benefit wages during the applicable
period on or before the | 26 |
| date specified in Section 1503, and who paid no
contributions | 27 |
| upon wages for insured work during such period on or before
the | 28 |
| date specified in Section 1503, shall be the greater of 2.7% or | 29 |
| 2.7%
times the then current adjusted state experience factor as | 30 |
| determined by
the Director in accordance with the provisions of | 31 |
| Sections 1504 and 1505.
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| Notwithstanding, the other provisions of this Section, no | 33 |
| employer's
contribution rate with respect to the calendar year | 34 |
| 1984 shall exceed 2.7
percent times the then current adjusted | 35 |
| state experience factor as
determined by the Director in | 36 |
| accordance with the provisions of Sections
1504 and 1505 of the |
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| wages for insured work paid by him during any calendar
quarter, | 2 |
| if such wages paid during such calendar quarter total less than
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| $50,000.
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| D. The contribution rate for calendar years 1987, 1988, | 5 |
| 1989 and 1990
of each employer who
has incurred liability for | 6 |
| the payment of contributions within each of the
three calendar | 7 |
| years immediately preceding the calendar year for which a
rate | 8 |
| is being determined shall be the product obtained by | 9 |
| multiplying the
employer's benefit wage ratio for that calendar | 10 |
| year by the adjusted state
experience factor for the same year, | 11 |
| provided, that:
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| 1. An employer's minimum contribution rate shall be the | 13 |
| greater of .2%
or the product obtained by multiplying .2% | 14 |
| by the adjusted State
experience factor for the applicable | 15 |
| calendar year.
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| 2. An employer's maximum contribution rate shall be the | 17 |
| greater of 5.5%
or the product of 5.5% and the adjusted | 18 |
| State experience factor for the
calendar year 1987 except | 19 |
| that such maximum contribution rate shall not be
higher | 20 |
| than 6.7% or lower than 6.5% and an employer's maximum
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| contribution rate for 1988, 1989 and 1990 shall be the | 22 |
| greater of 6.4% or
the product of 6.4% and the adjusted | 23 |
| State experience factor for the
applicable calendar year.
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| 3. If any product obtained in this subsection is not an | 25 |
| exact multiple
of one-tenth of one percent, it shall be | 26 |
| increased or reduced, as the case
may be to the nearer | 27 |
| multiple of one-tenth of 1 percent. If such product
is | 28 |
| equally near to two multiples of one-tenth of 1 percent, it | 29 |
| shall be
increased to the higher multiple of one-tenth of 1 | 30 |
| percent.
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| 4. Intermediate rates between such minimum and maximum | 32 |
| rates shall be at
one-tenth of 1 percent intervals.
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| The contribution rate of each employer for whom wages | 34 |
| became benefit
wages during the applicable period specified in | 35 |
| Section 1503, but who did
not report wages for insured work | 36 |
| during such period, shall be the maximum
contribution rate as |
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| determined by paragraph 2 of this subsection. The
contribution | 2 |
| rate for each employer for whom no wages became benefit wages
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| during the applicable period specified in Section 1503, and who | 4 |
| did not
report wages for insured work during such period, shall | 5 |
| be the greater of 2.7%
or 2.7% times the then current adjusted | 6 |
| State experience factor as
determined by the Director in | 7 |
| accordance with the provisions of Sections 1504 and 1505.
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| E. Except as provided in Section 1507.1, the
The
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| contribution rate for calendar year 1991 and
each calendar year | 10 |
| thereafter of each employer who has
incurred liability for the | 11 |
| payment of contributions
within each of the three calendar | 12 |
| years immediately
preceding the calendar year for which a rate | 13 |
| is being
determined shall be the product obtained by | 14 |
| multiplying
the employer's benefit ratio defined by Section | 15 |
| 1503.1
for that calendar year by the adjusted state experience
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| factor for the same year, provided that:
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| 1. Except as otherwise provided in this paragraph, an | 18 |
| employer's
minimum contribution rate shall be the greater | 19 |
| of 0.2% or the
product obtained by multiplying 0.2% by the | 20 |
| adjusted state
experience factor for the applicable
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| calendar year. An employer's minimum contribution rate | 22 |
| shall be 0.1% for
calendar year 1996.
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| 2. Except as provided in Section 1507.1, an
An
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| employer's maximum contribution rate shall be the greater | 25 |
| of 6.4% or
the product of 6.4%
and the adjusted state | 26 |
| experience factor for the applicable calendar year.
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| 3. If any product obtained in this subsection is not
an | 28 |
| exact multiple of one-tenth of one percent, it shall
be | 29 |
| increased or reduced, as the case may be to the nearer
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| multiple of one-tenth of one percent. If such product
is | 31 |
| equally near to two multiples of one-tenth of one percent,
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| it shall be increased to the higher multiple of one-tenth
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| of one percent.
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| 4. Intermediate rates between such minimum and maximum
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| rates shall be at one-tenth of one percent intervals.
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| Except as provided in Section 1507.1, the
The contribution |
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| rate of each employer for whom wages
became benefit wages | 2 |
| during the applicable period specified
in Section 1503 or for | 3 |
| whom benefit payments became
benefit charges during the | 4 |
| applicable period specified
in Section 1503.1, but who did not | 5 |
| report wages for
insured work during such period, shall be the | 6 |
| maximum
contribution rate as determined by paragraph 2 of this
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| subsection. Except as provided in Section 1507.1, the
The
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| contribution rate for each employer
for whom no wages became | 9 |
| benefit wages during the applicable
period specified in Section | 10 |
| 1503 or for whom no benefit
payments became benefit charges | 11 |
| during the applicable
period specified in Section 1503.1, and | 12 |
| who did not
report wages for insured work during such period, | 13 |
| shall
be the greater of 2.7% or 2.7% times the then current
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| adjusted state experience factor as determined by the
Director | 15 |
| in accordance with the provisions of Sections
1504 and 1505.
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| F. Notwithstanding the other provisions of this Section, | 17 |
| and pursuant to
Section 271 of the Tax Equity and Fiscal | 18 |
| Responsibility Act of 1982, as
amended, no employer's | 19 |
| contribution rate with respect to calendar years
1985, 1986, | 20 |
| 1987 and 1988 shall, for any calendar quarter during which the
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| wages paid by that employer are less than $50,000, exceed the | 22 |
| following:
with respect to calendar year 1985, 3.7%; with | 23 |
| respect to calendar year 1986,
4.1%; with respect to calendar | 24 |
| year 1987, 4.5%; and with respect to
calendar year 1988, 5.0%.
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| G. Notwithstanding the other provisions of this Section, | 26 |
| except as provided in subsection C of Section 1507.1, no | 27 |
| employer's
contribution rate with respect to calendar year 1989 | 28 |
| and each calendar year
thereafter shall exceed 5.4% of the | 29 |
| wages for insured work paid by him
during any calendar quarter, | 30 |
| if such wages paid during such calendar
quarter total less than | 31 |
| $50,000.
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| (Source: P.A. 89-446, eff. 2-8-96.)
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| (820 ILCS 405/1506.3) (from Ch. 48, par. 576.3)
| 34 |
| Sec. 1506.3. Fund building rates - Temporary | 35 |
| Administrative Funding.
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| A. Notwithstanding any other provision of this Act, the | 2 |
| following fund
building rates shall be in effect for the | 3 |
| following calendar years:
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| For each employer whose contribution rate for 1988, 1989, | 5 |
| 1990, the
first, third, and fourth quarters of 1991, 1992, | 6 |
| 1993, 1994, 1995,
and 1997 through 2003 would, in the
absence | 7 |
| of this
Section, be 0.2% or higher, a contribution rate which | 8 |
| is the sum of such rate
and a fund building rate of 0.4%;
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| For each employer whose contribution rate for the second | 10 |
| quarter of
1991 would, in the absence of this Section, be 0.2% | 11 |
| or higher, a
contribution rate which is the sum of such rate | 12 |
| and 0.3%;
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| For each employer whose contribution rate for 1996 would, | 14 |
| in the absence of
this Section, be 0.1% or higher, a | 15 |
| contribution rate which is the sum of such
rate and 0.4%;
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| Except as provided in Section 1507.1, for
For each employer | 17 |
| whose contribution rate for 2004 through 2009 would, in
the
| 18 |
| absence
of this Section, be 0.2% or higher, a contribution rate | 19 |
| which is the sum of
such rate and the
following: a fund | 20 |
| building rate of 0.7% for 2004; a fund building rate of 0.9%
| 21 |
| for 2005; a fund
building rate of 0.8% for 2006 and 2007; a | 22 |
| fund building rate of 0.6% for 2008;
a fund building
rate of | 23 |
| 0.4% for 2009.
| 24 |
| Except as provided in Section 1507.1, for
For each employer | 25 |
| whose contribution rate for 2010 and any calendar year
| 26 |
| thereafter
would, in the absence of this Section, be 0.2% or | 27 |
| higher, a contribution rate
which is the sum of
such rate and a | 28 |
| fund building rate equal to the sum of the rate adjustment
| 29 |
| applicable to that year
pursuant to Section 1400.1, plus the | 30 |
| fund building rate in effect pursuant to
this Section for the
| 31 |
| immediately preceding calendar year. Notwithstanding any | 32 |
| provision to the
contrary, the fund
building rate in effect for | 33 |
| any calendar year after calendar year 2009 shall
not be less | 34 |
| than 0.4%
or greater than 0.55%.
| 35 |
| Notwithstanding the preceding paragraphs of this Section
| 36 |
| or any other provision of this Act, except for the provisions
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| contained in Section 1500 pertaining to rates applicable
to | 2 |
| employers classified under the Standard Industrial
Code,
or | 3 |
| another classification system sanctioned by the United States | 4 |
| Department
of Labor and prescribed by the Director by rule,
and | 5 |
| except as provided in subsection C of Section 1507.1, no | 6 |
| employer whose total wages for insured work
paid by him during | 7 |
| any calendar quarter in 1988 and
any calendar year thereafter | 8 |
| are less than $50,000 shall
pay contributions at a rate with | 9 |
| respect to such quarter
which exceeds the following: with | 10 |
| respect to calendar year
1988, 5%; with respect to 1989 and any | 11 |
| calendar year thereafter, 5.4%.
| 12 |
| Notwithstanding the preceding paragraph of this Section, | 13 |
| or any other
provision of this Act, no employer's contribution | 14 |
| rate with respect to calendar
years 1993 through 1995 shall | 15 |
| exceed 5.4% if the employer ceased operations at
an Illinois | 16 |
| manufacturing facility in 1991 and remained closed at that | 17 |
| facility
during all of 1992, and the employer in 1993 commits | 18 |
| to invest at least
$5,000,000 for the purpose of resuming | 19 |
| operations at that facility, and the
employer rehires during | 20 |
| 1993 at least 250 of the individuals employed by it at
that | 21 |
| facility during the one year period prior to the cessation of | 22 |
| its
operations, provided that, within 30 days after the | 23 |
| effective date of this
amendatory Act of 1993, the employer | 24 |
| makes application to the Department to
have the provisions of | 25 |
| this paragraph apply to it. The immediately preceding
sentence | 26 |
| shall be null and void with respect to an employer which by | 27 |
| December
31, 1993 has not satisfied the rehiring requirement | 28 |
| specified by this paragraph
or which by December 31, 1994 has | 29 |
| not made the investment specified by this
paragraph. All | 30 |
| payments attributable to the fund building rate established
| 31 |
| pursuant to
this Section with
respect to the fourth quarter of | 32 |
| calendar year 2003, the first quarter of
calendar year 2004 and
| 33 |
| any calendar quarter thereafter as of the close of which there | 34 |
| are either bond
obligations
outstanding pursuant to the | 35 |
| Illinois Unemployment Insurance Trust Fund
Financing Act, or | 36 |
| bond
obligations anticipated to be outstanding as of either or |
|
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| 1 |
| both of the 2
immediately succeeding
calendar quarters, shall | 2 |
| be directed for deposit into the Master Bond Fund.
| 3 |
| B. Notwithstanding any other provision of this Act, for the | 4 |
| second
quarter of 1991, the contribution rate of each employer | 5 |
| as determined in
accordance with Sections 1500, 1506.1, and | 6 |
| subsection A of this Section
shall be equal to the sum of such | 7 |
| rate and 0.1%; provided that this
subsection shall not apply to | 8 |
| any employer whose rate computed under
Section 1506.1 for such | 9 |
| quarter is between 5.1% and 5.3%, inclusive, and
who qualifies | 10 |
| for the 5.4% rate ceiling imposed by the last paragraph of
| 11 |
| subsection A for such quarter. All payments made pursuant to | 12 |
| this
subsection shall be deposited in the Employment Security | 13 |
| Administrative
Fund established under Section 2103.1 and used | 14 |
| for the administration of
this Act.
| 15 |
| C. Payments received by the Director which are insufficient | 16 |
| to pay the
total contributions due under the Act shall be first | 17 |
| applied to satisfy the
amount due pursuant to subsection B.
| 18 |
| C-1. Payments received by the Director with respect to the | 19 |
| fourth quarter
of
calendar year
2003, the first quarter of | 20 |
| calendar year 2004 and any calendar quarter
thereafter as of | 21 |
| the close of
which there are either bond obligations | 22 |
| outstanding pursuant to the Illinois
Unemployment
Insurance | 23 |
| Trust Fund Financing Act, or bond obligations anticipated to be
| 24 |
| outstanding as of either or both of the 2 immediately | 25 |
| succeeding calendar
quarters, shall, to the extent they are | 26 |
| insufficient to pay the total
amount due under the Act with | 27 |
| respect to the quarter, be first applied to
satisfy the amount | 28 |
| due
with respect to that quarter and attributable to the fund | 29 |
| building rate
established pursuant to this
Section. | 30 |
| Notwithstanding any other provision to the contrary, with | 31 |
| respect to
an employer whose
contribution rate with respect to | 32 |
| a quarter subject to this subsection would
have exceeded 5.4%
| 33 |
| but for the 5.4% rate ceiling imposed pursuant to subsection A, | 34 |
| the amount due
from the
employer with respect to that quarter | 35 |
| and attributable to the fund building
rate established
pursuant | 36 |
| to subsection A shall equal the amount, if any, by which the |
|
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| amount
due and
attributable to the 5.4% rate exceeds the amount | 2 |
| that would have been due and
attributable to the
employer's | 3 |
| rate determined pursuant to Sections 1500 and 1506.1, without | 4 |
| regard
to the fund
building rate established pursuant to | 5 |
| subsection A and without regard to paragraph (2) of subsection | 6 |
| A of Section 1507.1 .
| 7 |
| D. All provisions of this Act applicable to the collection | 8 |
| or refund of
any contribution due under this Act shall be | 9 |
| applicable to the collection or
refund of amounts due pursuant | 10 |
| to subsection B and amounts directed pursuant
to this Section | 11 |
| for deposit into the Master
Bond Fund to the extent
they would | 12 |
| not otherwise be considered as contributions.
| 13 |
| (Source: P.A. 93-634, eff. 1-1-04.)
| 14 |
| (820 ILCS 405/1507) (from Ch. 48, par. 577)
| 15 |
| Sec. 1507. Contribution rates of successor and predecessor | 16 |
| employing units.
| 17 |
| A. Whenever any employing unit succeeds to substantially | 18 |
| all of the
employing enterprises of another employing unit, | 19 |
| then in determining
contribution rates for any calendar year, | 20 |
| the experience rating record of
the predecessor prior to the | 21 |
| succession shall be transferred to the
successor and thereafter | 22 |
| it shall not be treated as the experience rating
record of the | 23 |
| predecessor, except as provided in subsection B.
For the | 24 |
| purposes of this Section, such experience rating record shall
| 25 |
| consist of all years during which liability for the payment of | 26 |
| contributions
was incurred by the predecessor prior to the | 27 |
| succession, all benefit wages
based upon wages paid by the | 28 |
| predecessor prior to the succession, all
benefit charges based | 29 |
| on separations from, or reductions in work initiated
by, the | 30 |
| predecessor prior to the
succession, and all wages for insured | 31 |
| work paid by the predecessor prior
to the succession. This | 32 |
| amendatory Act of the 93rd General Assembly is
intended to be a
| 33 |
| continuation of
prior law.
| 34 |
| B. The provisions of this subsection shall be applicable | 35 |
| only to the
determination of contribution rates for the |
|
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| calendar year 1956 and for each
calendar year thereafter. | 2 |
| Whenever any employing unit has succeeded to
substantially all | 3 |
| of the employing enterprises of another employing unit,
but the | 4 |
| predecessor employing unit has retained a distinct severable
| 5 |
| portion of its employing enterprises or whenever any employing | 6 |
| unit has
succeeded to a distinct severable portion which is | 7 |
| less than substantially
all of the employing enterprises of | 8 |
| another employing unit, the successor
employing unit shall | 9 |
| acquire the experience rating record attributable to
the | 10 |
| portion to which it has succeeded, and the predecessor | 11 |
| employing unit
shall retain the experience rating record | 12 |
| attributable to the portion which
it has retained, if--
| 13 |
| 1. It files a written application for such experience | 14 |
| rating record
which is joined in by the employing unit | 15 |
| which is then entitled to such
experience rating record; | 16 |
| and
| 17 |
| 2. The joint application contains such information as | 18 |
| the Director shall
by regulation prescribe which will show | 19 |
| that such experience rating record
is identifiable and | 20 |
| segregable and, therefore, capable of being
transferred; | 21 |
| and
| 22 |
| 3. The joint application is filed prior to whichever of | 23 |
| the following
dates is the latest: (a) July 1, 1956; (b) | 24 |
| one year after the date of the
succession; or (c) the date | 25 |
| that the rate determination of the employing
unit which has | 26 |
| applied for such experience rating record has become final
| 27 |
| for the calendar year immediately following the calendar | 28 |
| year in which the
succession occurs. The filing of a timely | 29 |
| joint application shall not
affect any rate determination | 30 |
| which has become final, as provided by
Section 1509.
| 31 |
| If all of the foregoing requirements are met, then the | 32 |
| Director shall
transfer such experience rating record to the | 33 |
| employing unit which has
applied therefor, and it shall not be | 34 |
| treated as the experience rating
record of the employing unit | 35 |
| which has joined in the application.
| 36 |
| Whenever any employing unit is reorganized into two or more |
|
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| employing
units, and any of such employing units are owned or | 2 |
| controlled by the same
interests which owned or controlled the | 3 |
| predecessor prior to the
reorganization, and the provisions of | 4 |
| this subsection become applicable
thereto, then such | 5 |
| affiliated employing units during the period of their
| 6 |
| affiliation shall be treated as a single employing unit for the | 7 |
| purpose of
determining their rates of contributions.
| 8 |
| C. For the calendar year in which a succession occurs which | 9 |
| results in
the total or partial transfer of a predecessor's | 10 |
| experience rating record,
the contribution rates of the parties | 11 |
| thereto shall be determined in the
following manner:
| 12 |
| 1. If any of such parties had a contribution rate | 13 |
| applicable to it for
that calendar year, it shall continue | 14 |
| with such contribution rate.
| 15 |
| 2. If any successor had no contribution rate applicable | 16 |
| to it for that
calendar year, and only one predecessor is | 17 |
| involved, then the contribution
rate of the successor shall | 18 |
| be the same as that of its predecessor.
| 19 |
| 3. If any successor had no contribution rate applicable | 20 |
| to it for that
calendar year, and two or more predecessors | 21 |
| are involved, then the
contribution rate of the successor | 22 |
| shall be computed, on the combined
experience rating | 23 |
| records of the predecessors or on the appropriate part of
| 24 |
| such records if any partial transfer is involved, as | 25 |
| provided in Sections
1500 to 1507, inclusive.
| 26 |
| 4. Notwithstanding the provisions of paragraphs 2 and 3 | 27 |
| of this
subsection, if any succession occurs prior to the | 28 |
| calendar year 1956 and
the successor acquires part of the | 29 |
| experience rating record of the
predecessor as provided in | 30 |
| subsection B of this Section, then the
contribution rate of | 31 |
| that successor for the calendar year in which such
| 32 |
| succession occurs shall be 2.7 percent.
| 33 |
| D. The provisions of this Section shall not be applicable | 34 |
| if the provisions of Section 1507.1 are applicable.
| 35 |
| (Source: P.A. 93-634, eff. 1-1-04.)
|
|
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| (820 ILCS 405/1507.1 new) | 2 |
| Sec. 1507.1. Transfer of trade or business; contribution | 3 |
| rate. Notwithstanding any other provision of this Act: | 4 |
| A.(1) If an individual or entity transfers its trade or | 5 |
| business, or a portion thereof, and, at the time of the | 6 |
| transfer, there is any material common ownership, management, | 7 |
| or control of the transferor and transferee, then the | 8 |
| experience rating records of the transferor and transferee | 9 |
| shall be combined for the purpose of determining their rates of | 10 |
| contribution. For purposes of this subsection, a transfer of | 11 |
| trade or business includes but is not limited to the transfer | 12 |
| of some or all of the transferor's workforce. | 13 |
| (2) In the case of a transfer to which paragraph (1) | 14 |
| applies: | 15 |
| (a) Except as otherwise provided in subparagraph (c), | 16 |
| if the transferor or transferee had a contribution rate | 17 |
| applicable to it for the calendar year in which the | 18 |
| transfer occurred, it shall continue with that | 19 |
| contribution rate for the remainder of the calendar year. | 20 |
| (b) If the transferee had no contribution rate | 21 |
| applicable to it for the calendar year in which the | 22 |
| transfer occurred, then, subject to the 5.4% rate ceiling | 23 |
| established pursuant to subsection G of Section 1506.1 and | 24 |
| subsection A of Section 1506.3, the contribution rate of | 25 |
| the transferee shall be the same as the contribution rate | 26 |
| of the transferor for the remainder of the calendar year; | 27 |
| where there are 2 or more transferors involved, this | 28 |
| subparagraph shall be applied using the highest | 29 |
| contribution rate of any of the transferors. | 30 |
| (c) If, immediately prior to the transfer, the | 31 |
| contribution rate of the transferor is higher for the | 32 |
| calendar year in which the transfer occurs than the | 33 |
| contribution rate of the transferee, then, subject to the | 34 |
| 5.4% rate ceiling established pursuant to subsection G of | 35 |
| Section 1506.1 and subsection A of Section 1506.3, the | 36 |
| contribution rate of the transferee shall be the same, for |
|
|
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| 1 |
| the calendar year, retroactive to the beginning of the | 2 |
| calendar year, as the contribution rate of the transferor; | 3 |
| where there are 2 or more transferors involved, this | 4 |
| subparagraph shall be applied using the highest | 5 |
| contribution rate of any of the transferors. | 6 |
| B. If any individual or entity that is not an employer | 7 |
| under this Act at the time of the acquisition acquires the | 8 |
| trade or business of an employing unit, the experience rating | 9 |
| record of the acquired business shall not be transferred to the | 10 |
| individual or entity if the Director finds that the individual | 11 |
| or entity acquired the business solely or primarily for the | 12 |
| purpose of obtaining a lower rate of contributions. Evidence | 13 |
| that a business was acquired solely or primarily for the | 14 |
| purpose of obtaining a lower rate of contributions includes but | 15 |
| is not necessarily limited to the following: the cost of | 16 |
| acquiring the business is low in relation to the individual's | 17 |
| or entity's overall operating costs subsequent to the | 18 |
| acquisition; the individual or entity discontinued the | 19 |
| business enterprise of the acquired business immediately or | 20 |
| shortly after the acquisition; or the individual or entity | 21 |
| hired a significant number of individuals for performance of | 22 |
| duties unrelated to the business activity conducted prior to | 23 |
| acquisition. | 24 |
| C. An individual or entity to which subsection A applies | 25 |
| shall pay contributions with respect to each calendar year at a | 26 |
| rate consistent with that subsection, and an individual or | 27 |
| entity to which subsection B applies shall pay contributions | 28 |
| with respect to each calendar year at a rate consistent with | 29 |
| that subsection. If an individual or entity knowingly violates | 30 |
| or attempts to violate this subsection, the individual or | 31 |
| entity shall be subject to the following penalties: | 32 |
| (1) If the individual or entity is an employer, then, | 33 |
| in addition to the rate that would otherwise be calculated, | 34 |
| the employer shall be assigned a penalty contribution rate | 35 |
| equivalent to 50% of the rate calculated in accordance with | 36 |
| Sections 1500 through 1507 and subsections A and B for the |
|
|
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| 1 |
| calendar year with respect to which the violation or | 2 |
| attempted violation occurred and the 3 calendar years | 3 |
| immediately following that year. If any product obtained | 4 |
| pursuant to this subsection is not an exact multiple of | 5 |
| one-tenth of 1%, it shall be increased or reduced, as the | 6 |
| case may be, to the nearer multiple of one-tenth of 1%. If | 7 |
| such product is equally near to 2 multiples of one-tenth of | 8 |
| 1%, it shall be increased to the higher multiple of | 9 |
| one-tenth of 1%. | 10 |
| (2) If the individual or entity is not an employer, the | 11 |
| individual or entity shall be subject to a penalty of | 12 |
| $10,000 for each violation. Any such penalty shall be | 13 |
| deposited into the Special Administrative Account. | 14 |
| D. An individual or entity shall not knowingly advise | 15 |
| another in a way that results in a violation of subsection C. | 16 |
| An individual or entity that violates this subsection shall be | 17 |
| subject to a penalty of $10,000 for each violation. Any such | 18 |
| penalty shall be deposited into the Special Administrative | 19 |
| Account. | 20 |
| E. Any individual or entity that violates subsection C or D | 21 |
| shall be guilty of a Class B misdemeanor. In the case of a | 22 |
| corporation, the president, the secretary, and the treasurer, | 23 |
| and any other officer exercising corresponding functions, | 24 |
| shall each be subject to the aforesaid penalty for the | 25 |
| violation of subsection C or D of which he or she had or, in the | 26 |
| exercise of his or her duties, ought to have had knowledge. | 27 |
| F. The Director shall establish procedures to identify the | 28 |
| transfer or acquisition of a trade or business for purposes of | 29 |
| this Section. | 30 |
| G. For purposes of this Section: | 31 |
| "Experience rating record" shall consist of years | 32 |
| during which liability for the payment of contributions was | 33 |
| incurred, all benefit charges incurred, and all wages paid | 34 |
| for insured work, including but not limited to years, | 35 |
| benefit charges, and wages attributed to an individual or | 36 |
| entity pursuant to Section 1507 or subsection A. |
|
|
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| 1 |
| "Knowingly" means having actual knowledge of or acting | 2 |
| with deliberate ignorance of or reckless disregard for the | 3 |
| statutory provision involved. There is a rebuttable | 4 |
| presumption that an individual's or entity's violation of | 5 |
| subsection C is knowing if, prior to the violation, the | 6 |
| individual or entity did not provide the Department with | 7 |
| notice of the transfer that gave rise to the violation. | 8 |
| "Transferee" means any individual or entity to which | 9 |
| the transferor transfers its trade or business or any | 10 |
| portion thereof. | 11 |
| "Transferor" means the individual or entity that | 12 |
| transfers its trade or business or any portion thereof. | 13 |
| H. This Section shall be interpreted and applied in such a | 14 |
| manner as to meet the minimum requirements contained in any | 15 |
| guidance or regulations issued by the United States Department | 16 |
| of Labor.
|
|