Full Text of HB4719 103rd General Assembly
HB4719enr 103RD GENERAL ASSEMBLY | | | HB4719 Enrolled | | LRB103 36560 SPS 66667 b |
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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 Illinois Secure Choice Savings Program Act | 5 | | is amended by changing Sections 60 and 85 as follows: | 6 | | (820 ILCS 80/60) | 7 | | Sec. 60. Program implementation and enrollment. Except as | 8 | | otherwise provided in Section 93 of this Act, the Program | 9 | | shall be implemented, and enrollment of employees shall begin | 10 | | in 2018. The Board shall establish an implementation timeline | 11 | | under which employers shall enroll their employees in the | 12 | | Program. The timeline shall include the date by which an | 13 | | employer must begin enrollment of its employees in the Program | 14 | | and the date by which enrollment must be complete. The Board | 15 | | shall adopt the implementation timeline at a public meeting of | 16 | | the Board and shall publicize the implementation timeline. The | 17 | | Board shall provide advance notice to employers of their | 18 | | enrollment date and the amount of time to complete enrollment. | 19 | | The enrollment deadline for employers with fewer than 25 | 20 | | employees and more than 15 employees shall be no sooner than | 21 | | September 1, 2022. The enrollment deadline for employers with | 22 | | at least 5 employees but not more than 15 employees shall be no | 23 | | sooner than September 1, 2023. The provisions of this Section |
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| 1 | | shall be in force after the Board opens the Program for | 2 | | enrollment. | 3 | | (a) Each employer shall establish a payroll deposit | 4 | | retirement savings arrangement to allow each employee to | 5 | | participate in the Program within the timeline set by the | 6 | | Board after the Program opens for enrollment. | 7 | | (b) Employers shall automatically enroll in the Program | 8 | | each of their employees who has not opted out of participation | 9 | | in the Program in the manner using the form described in | 10 | | subsection (c) of Section 55 of this Act and shall provide | 11 | | payroll deduction retirement savings arrangements for such | 12 | | employees and deposit, on behalf of such employees, these | 13 | | funds into the Program. Small employers may, but are not | 14 | | required to, provide payroll deduction retirement savings | 15 | | arrangements for each employee who elects to participate in | 16 | | the Program. Utilization of automatic enrollment by small | 17 | | employers may be allowed only if it does not create employer | 18 | | liability under the federal Employee Retirement Income | 19 | | Security Act. | 20 | | (c) Enrollees shall have the ability to select a | 21 | | contribution level into the Fund. This level may be expressed | 22 | | as a percentage of wages or as a dollar amount up to the | 23 | | deductible amount for the enrollee's taxable year under | 24 | | Section 219(b)(1)(A) of the Internal Revenue Code. Enrollees | 25 | | may change their contribution level at any time, subject to | 26 | | rules promulgated by the Board. If an enrollee fails to select |
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| 1 | | a contribution level using the form described in subsection | 2 | | (c) of Section 55 of this Act, then he or she shall contribute | 3 | | the default contribution rate of his or her wages to the | 4 | | Program, provided that such contributions shall not cause the | 5 | | enrollee's total contributions to IRAs for the year to exceed | 6 | | the deductible amount for the enrollee's taxable year under | 7 | | Section 219(b)(1)(A) of the Internal Revenue Code. | 8 | | (d) Enrollees may select an investment option from the | 9 | | permitted investment options listed in Section 45 of this Act. | 10 | | Enrollees may change their investment option at any time, | 11 | | subject to rules promulgated by the Board. In the event that an | 12 | | enrollee fails to select an investment option, that enrollee | 13 | | shall be placed in the investment option selected by the Board | 14 | | as the default under subsection (c) of Section 45 of this Act. | 15 | | If the Board has not selected a default investment option | 16 | | under subsection (c) of Section 45 of this Act, then an | 17 | | enrollee who fails to select an investment option shall be | 18 | | placed in the life-cycle fund investment option. | 19 | | (e) Following initial implementation of the Program | 20 | | pursuant to this Section, at least once every year, | 21 | | participating employers may shall designate an open enrollment | 22 | | period during which employees who previously opted out of the | 23 | | Program may enroll in the Program. | 24 | | (f) (Blank). An employee who opts out of the Program who | 25 | | subsequently wants to participate through the participating | 26 | | employer's payroll deposit retirement savings arrangement may |
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| 1 | | only enroll during the participating employer's designated | 2 | | open enrollment period or if permitted by the participating | 3 | | employer at an earlier time. | 4 | | (g) Employers shall retain the option at all times to set | 5 | | up a qualified retirement plan, including, but not limited to, | 6 | | any type of employer-sponsored retirement plan, such as a | 7 | | defined benefit plan or a 401(k), a Simplified Employee | 8 | | Pension (SEP) plan, or a Savings Incentive Match Plan for | 9 | | Employees (SIMPLE) plan, or to offer an automatic enrollment | 10 | | payroll deduction IRA, instead of facilitating their | 11 | | employees' having a payroll deposit retirement savings | 12 | | arrangement to allow employee participation in the Program. | 13 | | (h) An employee may terminate his or her participation in | 14 | | the Program at any time in a manner prescribed by the Board. | 15 | | (i) The Board shall establish and maintain an Internet | 16 | | website designed to assist employers in identifying private | 17 | | sector providers of retirement arrangements that can be set up | 18 | | by the employer rather than allowing employee participation in | 19 | | the Program under this Act; however, the Board shall only | 20 | | establish and maintain an Internet website under this | 21 | | subsection if there is sufficient interest in such an Internet | 22 | | website by private sector providers and if the private sector | 23 | | providers furnish the funding necessary to establish and | 24 | | maintain the Internet website. The Board must provide public | 25 | | notice of the availability of and the process for inclusion on | 26 | | the Internet website before it becomes publicly available. |
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| 1 | | This Internet website must be available to the public before | 2 | | the Board opens the Program for enrollment, and the Internet | 3 | | website address must be included on any Internet website | 4 | | posting or other materials regarding the Program offered to | 5 | | the public by the Board. | 6 | | (Source: P.A. 102-179, eff. 1-1-22 .) | 7 | | (820 ILCS 80/85) | 8 | | Sec. 85. Penalties. | 9 | | (a) An employer who fails without reasonable cause to | 10 | | enroll an employee in the Program within the time prescribed | 11 | | under Section 60 of this Act shall be subject to a penalty | 12 | | equal to: | 13 | | (1) $250 per employee for the first calendar year the | 14 | | employer is noncompliant; or | 15 | | (2) $500 per employee for each subsequent calendar | 16 | | year the employer is noncompliant; noncompliance does not | 17 | | need to be consecutive to qualify for the $500 penalty. | 18 | | The Department shall determine total employee count using | 19 | | the annual average from employer-reported quarterly data. | 20 | | (b) After determining that an employer is subject to a | 21 | | penalty under this Section for a calendar year, the Department | 22 | | shall issue a notice of proposed assessment to such employer, | 23 | | stating the number of employees for which the penalty is | 24 | | proposed under item (1) of subsection (a) of this Section or | 25 | | the number of employees for which the penalty is proposed |
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| 1 | | under item (2) of subsection (a) of this Section for such | 2 | | calendar year, and the total amount of penalties proposed. | 3 | | Upon the expiration of 120 days after the date on which a | 4 | | notice of proposed assessment was issued, the penalties | 5 | | specified therein shall be deemed assessed, unless the | 6 | | employer had filed a protest with the Department under | 7 | | subsection (c) of this Section or come into full compliance | 8 | | with the Program as required under Section 60 of this Act. | 9 | | If, within 120 days after the date on which it was issued, | 10 | | a protest of a notice of proposed assessment is filed under | 11 | | subsection (c) of this Section, the penalties specified | 12 | | therein shall be deemed assessed upon the date when the | 13 | | decision of the Department with respect to the protest becomes | 14 | | final. | 15 | | (c) A written protest against the proposed assessment | 16 | | shall be filed with the Department in such form as the | 17 | | Department may by rule prescribe, setting forth the grounds on | 18 | | which such protest is based. If such a protest is filed within | 19 | | 120 days after the date the notice of proposed assessment is | 20 | | issued, the Department shall reconsider the proposed | 21 | | assessment and shall grant the employer a hearing. As soon as | 22 | | practicable after such reconsideration and hearing, the | 23 | | Department shall issue a notice of decision to the employer, | 24 | | setting forth the Department's findings of fact and the basis | 25 | | of decision. The decision of the Department shall become | 26 | | final: |
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| 1 | | (1) if no action for review of the decision is | 2 | | commenced under the Administrative Review Law, on the date | 3 | | on which the time for commencement of such review has | 4 | | expired; or | 5 | | (2) if a timely action for review of the decision is | 6 | | commenced under the Administrative Review Law, on the date | 7 | | all proceedings in court for the review of such assessment | 8 | | have terminated or the time for the taking thereof has | 9 | | expired without such proceedings being instituted. | 10 | | (d) As soon as practicable after the penalties specified | 11 | | in a notice of proposed assessment are deemed assessed, the | 12 | | Department shall give notice to the employer liable for any | 13 | | unpaid portion of such assessment, stating the amount due and | 14 | | demanding payment. If an employer neglects or refuses to pay | 15 | | the entire liability shown on the notice and demand within 10 | 16 | | days after the notice and demand is issued, the unpaid amount | 17 | | of the liability shall be a lien in favor of the State of | 18 | | Illinois upon all property and rights to property, whether | 19 | | real or personal, belonging to the employer, and the | 20 | | provisions in the Illinois Income Tax Act regarding liens, | 21 | | levies and collection actions with regard to assessed and | 22 | | unpaid liabilities under that Act, including the periods for | 23 | | taking any action, shall apply. | 24 | | (e) An employer who has overpaid a penalty assessed under | 25 | | this Section may file a claim for refund with the Department. A | 26 | | claim shall be in writing in such form as the Department may by |
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| 1 | | rule prescribe and shall state the specific grounds upon which | 2 | | it is founded. As soon as practicable after a claim for refund | 3 | | is filed, the Department shall examine it and either issue a | 4 | | refund or issue a notice of denial. If such a protest is filed, | 5 | | the Department shall reconsider the denial and grant the | 6 | | employer a hearing. As soon as practicable after such | 7 | | reconsideration and hearing, the Department shall issue a | 8 | | notice of decision to the employer. The notice shall set forth | 9 | | briefly the Department's findings of fact and the basis of | 10 | | decision in each case decided in whole or in part adversely to | 11 | | the employer. A denial of a claim for refund becomes final 120 | 12 | | days after the date of issuance of the notice of the denial | 13 | | except for such amounts denied as to which the employer has | 14 | | filed a protest with the Department. If a protest has been | 15 | | timely filed, the decision of the Department shall become | 16 | | final: | 17 | | (1) if no action for review of the decision is | 18 | | commenced under the Administrative Review Law, on the date | 19 | | on which the time for commencement of such review has | 20 | | expired; or | 21 | | (2) if a timely action for review of the decision is | 22 | | commenced under the Administrative Review Law, on the date | 23 | | all proceedings in court for the review of such assessment | 24 | | have terminated or the time for the taking thereof has | 25 | | expired without such proceedings being instituted. | 26 | | (f) No notice of proposed assessment may be issued with |
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| 1 | | respect to a calendar year after June 30 of the fourth | 2 | | subsequent calendar year. No claim for refund may be filed | 3 | | more than 1 year after the date of payment of the amount to be | 4 | | refunded. | 5 | | (g) The provisions of the Administrative Review Law and | 6 | | the rules adopted pursuant to it shall apply to and govern all | 7 | | proceedings for the judicial review of final decisions of the | 8 | | Department in response to a protest filed by the employer | 9 | | under subsections (c) and (e) of this Section. Final decisions | 10 | | of the Department shall constitute "administrative decisions" | 11 | | as defined in Section 3-101 of the Code of Civil Procedure. The | 12 | | Department may adopt any rules necessary to carry out its | 13 | | duties pursuant to this Section. | 14 | | (h) Whenever notice is required by this Section, it may be | 15 | | given or issued by mailing it by first-class mail addressed to | 16 | | the person concerned at his or her last known address or in an | 17 | | electronic format as determined by the Department. | 18 | | (i) All books and records and other papers and documents | 19 | | relevant to the determination of any penalty due under this | 20 | | Section shall, at all times during business hours of the day, | 21 | | be subject to inspection by the Department or its duly | 22 | | authorized agents and employees. | 23 | | (j) The Department may require employers to report | 24 | | information relevant to their compliance with this Act on | 25 | | returns otherwise due from the employers under Section 704A of | 26 | | the Illinois Income Tax Act and failure to provide the |
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| 1 | | requested information on a return shall cause such return to | 2 | | be treated as unprocessable. | 3 | | (k) For purposes of any provision of State law allowing | 4 | | the Department or any other agency of this State to offset an | 5 | | amount owed to a taxpayer against a tax liability of that | 6 | | taxpayer or allowing the Department to offset an overpayment | 7 | | of tax against any liability owed to the State, a penalty | 8 | | assessed under this Section shall be deemed to be a tax | 9 | | liability of the employer and any refund due to an employer | 10 | | shall be deemed to be an overpayment of tax of the employer. | 11 | | (l) Except as provided in this subsection, all information | 12 | | received by the Department from returns filed by an employer | 13 | | or from any investigation conducted under the provisions of | 14 | | this Act shall be confidential, except for official purposes | 15 | | within the Department or pursuant to official procedures for | 16 | | collection of penalties assessed under this Act. Nothing | 17 | | contained in this subsection shall prevent the Director from | 18 | | publishing or making available to the public reasonable | 19 | | statistics concerning the operation of this Act wherein the | 20 | | contents of returns are grouped into aggregates in such a way | 21 | | that the specific information of any employer shall not be | 22 | | disclosed. Nothing contained in this subsection shall prevent | 23 | | the Director from divulging information to an authorized | 24 | | representative of the employer or to any person pursuant to a | 25 | | request or authorization made by the employer or by an | 26 | | authorized representative of the employer. |
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| 1 | | (m) Civil penalties collected under this Act and fees | 2 | | collected pursuant to subsection (n) of this Section shall be | 3 | | deposited into the Tax Compliance and Administration Fund. The | 4 | | Department may, subject to appropriation, use moneys in the | 5 | | fund to cover expenses it incurs in the performance of its | 6 | | duties under this Act. Interest attributable to moneys in the | 7 | | Tax Compliance and Administration Fund shall be credited to | 8 | | the Tax Compliance and Administration Fund. | 9 | | (n) The Department may charge the Board a reasonable fee | 10 | | for its costs in performing its duties under this Section to | 11 | | the extent that such costs have not been recovered from | 12 | | penalties imposed under this Section. | 13 | | (o) The Department shall post on its Internet website a | 14 | | notice stating that this Section is operative and the date | 15 | | that it is first operative. This notice shall include a | 16 | | statement that rather than enrolling employees in the Program | 17 | | under this Act, employers may set up a qualified retirement | 18 | | plan sponsor an alternative arrangement , including, but not | 19 | | limited to, a defined benefit plan, 401(k) plan | | | , a Simplified | 20 | | Employee Pension (SEP) plan, or a Savings Incentive Match Plan | 21 | | for Employees (SIMPLE) plan , or an automatic enrollment | 22 | | payroll deduction IRA offered through a private provider . The | 23 | | Board shall provide a link to the vendor Internet website | 24 | | described in subsection (i) of Section 60 of this Act, if | 25 | | applicable. | 26 | | (Source: P.A. 102-179, eff. 1-1-22 .) |
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