(820 ILCS 405/302) (from Ch. 48, par. 382)
Sec. 302.
Election of coverage.
A. An employing unit not
otherwise subject to this Act, which files with the Director its written
election to become an employer for not less than two calendar years,
shall, with the written approval of the election by the Director, become
an employer to the same extent as all other employers, as of the date
stated in the approval, and shall cease to be subject to this Act as of
January 1 of any calendar year subsequent to such two calendar years,
only if prior to February 1 of that year it has filed with the Director
a written notice to that effect. The Director shall approve any election
so filed if he finds that the employment record of the applicant has not
been or is not likely to be such as will unduly threaten the full
payment of benefits when due under this Act.
B. Any employing unit for which services that do not constitute
employment are performed may file with the Director a written election
that all such services performed by individuals in its employ in one or
more distinct establishments or places of business shall be deemed to
constitute employment for all the purposes of this Act for not less than
two calendar years. Upon the written approval of the election by the
Director, the services shall be deemed to constitute employment from and
after the date stated in the approval. The services shall cease to be
deemed employment as of January 1 of any calendar year subsequent to
such two calendar years, only if prior to February 1 of that year the
employing unit has filed with the Director a written notice to that
effect. The basis for the approval by the Director of the election under
this subsection shall be the same as that provided under subsection A of
this Section.
C. Subsections A and B shall not apply to a political subdivision or a
municipal corporation, or an instrumentality of one or more of the
foregoing or of this State and one or more of the foregoing, and subsection
B shall not apply to this State or any of its instrumentalities, except that a
political subdivision or municipal corporation of this State may file
with the Director a written election that it be an employer with respect
to the services (except any services enumerated in Section 211.3)
performed prior to January 1, 1978, by individuals in its employ in all
of the hospitals and
institutions of higher education operated by it and that such services
be employment for all the purposes of this Act for not less than two
calendar years. The effective date of the written election shall be any
date after December 31, 1971, designated by the employing unit, provided
that the date shall not be prior to January 1 of the calendar year in
which the written election has been filed. The services described in
this subsection shall cease to be employment and the employing unit
shall cease to be an employer as of January 1 of any calendar year
subsequent to the two calendar years hereinabove mentioned only if,
prior to February 1 of that year, it files with the Director a written
notice to that effect.
1. With respect to the effective period of its election to be an
employer, the political subdivision or municipal corporation (unless it
elects to make payments under the provisions of paragraph 2) shall make
payments in lieu of contributions the amounts of which shall be
determined, in accordance with the provisions of Sections 1400 and 1500,
in the same manner and on the same basis as the amounts are determined
for employers who incur liability for the payment of contributions. All
of the provisions of this Act applicable to employers who incur
liability for the payment of contributions shall apply to a political
subdivision or municipal corporation which becomes subject to the making
of payments in lieu of contributions under this paragraph.
2. In lieu of the payments required by paragraph 1, a political
subdivision or municipal corporation which has elected to be an employer
may elect to make payments in lieu of contributions: with respect to
benefit years beginning prior to July 1, 1989, in amounts equal to
the amounts of regular benefits and one-half the extended benefits
(defined in Section 409) paid to individuals for any weeks which begin
on or after the effective date of the election to make such payments, on
the basis of wages for insured work paid to them by the political
subdivision or municipal corporation during their respective base
periods; and, with respect to benefit years beginning on or after July 1,
1989, in amounts equal to the amounts specified in the third and fourth
sentences of subsection B of Section 1405 paid to individuals where such
political subdivision or municipal corporation was the last employer of the
individual as provided in Section 1502.1 with respect to a benefit year
beginning during the effective period of the election. An election to
make payments pursuant to this paragraph shall
be made in accordance with and subject to the provisions of subsection A
of Section 1404, applicable to elections by nonprofit organizations. All
of the provisions of Section 1404 (except subsection E), applicable to
payments in lieu of contributions by nonprofit organizations, shall be
applicable to payments in lieu of contributions by a political
subdivision or municipal corporation pursuant to this paragraph. For the
purposes of this paragraph, the term "contributions" (relating to
payments determined pursuant to Sections 1400 and 1500) which appears in
Section 1404 means the payments in lieu of contributions required by
paragraph 1 of this subsection; and the term "incurred liability" for
the payment of contributions, or any variant thereof, which appears in
Section 1404 means "became liable" for the payments in lieu of
contributions required by paragraph 1 of this subsection, or a like
variant thereof, as the case may be.
(Source: P.A. 85-956.)
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