State of Illinois
90th General Assembly
Legislation

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90_HB0311

      820 ILCS 405/1506.1       from Ch. 48, par. 576.1
      820 ILCS 405/1506.3       from Ch. 48, par. 576.3
          Amends the Unemployment  Insurance  Act  in  relation  to
      contributions  required  from  employers  for  the purpose of
      paying  benefits.   Deletes  language   providing   that   an
      employer's minimum contribution rate for 1996 is 0.1% and for
      other years is the greater of 0.2% or the product obtained by
      multiplying  0.2%  by  the  adjusted state experience factor.
      Inserts  language  providing  that  an   employer's   minimum
      contribution  rate  for  calendar  year 1996 and for calendar
      years after 1997 is  the  greater  of  0.1%  or  the  product
      obtained by multiplying 0.1% by the adjusted state experience
      factor.     Provides  that an employer's minimum contribution
      rate for 1997 is the greater of 0.2% or the product  obtained
      by  multiplying 0.2% by the adjusted state experience factor.
      Also  changes  provisions  concerning  fund  building  rates.
      Effective immediately.
                                                     LRB9002127WHmg
                                               LRB9002127WHmg
 1        AN  ACT  to  amend  the  Unemployment  Insurance  Act  by
 2    changing Sections 1506.1 and 1506.3.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  5.  The Unemployment Insurance Act is amended by
 6    changing Sections 1506.1 and 1506.3 as follows:
 7        (820 ILCS 405/1506.1) (from Ch. 48, par. 576.1)
 8        Sec. 1506.1.  Determination  of  Employer's  Contribution
 9    Rate.
10        A.  The  contribution rate for any calendar year prior to
11    1982 of each employer who  has  incurred  liability  for  the
12    payment  of  contributions  within each of the three calendar
13    years immediately preceding the calendar  year  for  which  a
14    rate  is  being  determined shall be determined in accordance
15    with the provisions of this Act as amended and in  effect  on
16    October 5, 1980.
17        B.  The  contribution  rate  for  calendar years 1982 and
18    1983 of each employer who  has  incurred  liability  for  the
19    payment  of  contributions  within each of the three calendar
20    years immediately preceding the calendar  year  for  which  a
21    rate  is  being  determined  shall be the product obtained by
22    multiplying  the  employer's  benefit  wage  ratio  for  that
23    calendar year by the adjusted state experience factor for the
24    same year, provided that:
25             1.  No employer's contribution rate shall  be  lower
26        than two-tenths of 1 percent or higher than 5.3%; and
27             2.  Intermediate  contribution  rates  between  such
28        minimum  and  maximum  rates  shall  be at one-tenth of 1
29        percent intervals.
30             3.  If the product  obtained  as  provided  in  this
31        subsection  is  not  an  exact multiple of one-tenth of 1
                            -2-                LRB9002127WHmg
 1        percent, it shall be increased or reduced,  as  the  case
 2        may be, to the nearer multiple of one-tenth of 1 percent.
 3        If  such  product  is  equally  near  to two multiples of
 4        one-tenth of 1 percent, it  shall  be  increased  to  the
 5        higher  multiple  of  one-tenth  of  1  percent.  If such
 6        product is less than two-tenths of one percent, it  shall
 7        be  increased  to two-tenths of 1 percent, and if greater
 8        than 5.3%, it shall be reduced to 5.3%.
 9        The contribution rate of each  employer  for  whom  wages
10    became  benefit  wages during the applicable period specified
11    in Section 1503, but who paid no contributions upon wages for
12    insured work  during  such  period  on  or  before  the  date
13    designated in Section 1503, shall be 5.3%.
14        The  contribution rate of each employer for whom no wages
15    became benefit wages during the applicable  period  specified
16    in Section 1503, and who paid no contributions upon wages for
17    insured  work  during  such  period  on  or  before  the date
18    specified in Section 1503, shall be 2.7 percent.
19        Notwithstanding the other provisions of this Section,  no
20    employer's  contribution  rate with respect to calendar years
21    1982 and 1983 shall exceed  2.7  percent  of  the  wages  for
22    insured work paid by him during any calendar quarter, if such
23    wages  paid  during  such  calendar  quarter  total less than
24    $50,000.
25        C.  The contribution rate for calendar years  1984,  1985
26    and  1986 of each employer who has incurred liability for the
27    payment of contributions within  each  of  the  two  calendar
28    years  immediately  preceding  the  calendar year for which a
29    rate is being determined shall be  the  product  obtained  by
30    multiplying  the  employer's  benefit  wage  ratio  for  that
31    calendar year by the adjusted state experience factor for the
32    same year, provided that:
33             1.  An employer's minimum contribution rate shall be
34        the   greater  of:  .2%;  or,  the  product  obtained  by
                            -3-                LRB9002127WHmg
 1        multiplying .2% by the adjusted state  experience  factor
 2        for the applicable calendar year.
 3             2.  An employer's maximum contribution rate shall be
 4        the  greater  of  5.5%  or  the  product  of 5.5% and the
 5        adjusted  State  experience  factor  for  the  applicable
 6        calendar year except that such maximum contribution  rate
 7        shall not be higher than 6.3% for calendar year 1984, nor
 8        be  higher than 6.6% or lower than 6.4% for calendar year
 9        1985, nor be higher than 6.7%  or  lower  than  6.5%  for
10        calendar year 1986.
11             3.  If  any  product  obtained in this subsection is
12        not an exact multiple of one-tenth  of  one  percent,  it
13        shall  be increased or reduced, as the case may be to the
14        nearer multiple of one-tenth  of  one  percent.  If  such
15        product  is equally near to two multiples of one-tenth of
16        one percent, it shall be increased to the higher multiple
17        of one-tenth of one percent.
18             4.  Intermediate  rates  between  such  minimum  and
19        maximum rates  shall  be  at  one-tenth  of  one  percent
20        intervals.
21        The  contribution  rate  of  each employer for whom wages
22    became benefit wages during the applicable  period  specified
23    in Section 1503, but who paid no contributions upon wages for
24    insured  work  during  such  period  on  or  before  the date
25    designated in Section 1503, shall be the maximum contribution
26    rate as determined by paragraph 2  of  this  subsection.  The
27    contribution  rate for each employer for whom no wages became
28    benefit wages during the applicable period on or  before  the
29    date specified in Section 1503, and who paid no contributions
30    upon  wages  for insured work during such period on or before
31    the date specified in Section 1503, shall be the  greater  of
32    2.7% or 2.7% times the then current adjusted state experience
33    factor  as  determined by the Director in accordance with the
34    provisions of Sections 1504 and 1505.
                            -4-                LRB9002127WHmg
 1        Notwithstanding, the other provisions of this Section, no
 2    employer's contribution rate with  respect  to  the  calendar
 3    year  1984  shall  exceed  2.7 percent times the then current
 4    adjusted  state  experience  factor  as  determined  by   the
 5    Director  in  accordance with the provisions of Sections 1504
 6    and 1505 of the wages for insured work paid by him during any
 7    calendar quarter, if such wages  paid  during  such  calendar
 8    quarter total less than $50,000.
 9        D.  The  contribution rate for calendar years 1987, 1988,
10    1989 and 1990 of each employer who has incurred liability for
11    the  payment  of  contributions  within  each  of  the  three
12    calendar years immediately preceding the  calendar  year  for
13    which  a  rate  is  being  determined  shall  be  the product
14    obtained by multiplying the employer's benefit wage ratio for
15    that calendar year by the adjusted  state  experience  factor
16    for the same year, provided, that:
17             1.  An employer's minimum contribution rate shall be
18        the greater of .2% or the product obtained by multiplying
19        .2%  by  the  adjusted  State  experience  factor for the
20        applicable calendar year.
21             2.  An employer's maximum contribution rate shall be
22        the greater of 5.5%  or  the  product  of  5.5%  and  the
23        adjusted  State  experience  factor for the calendar year
24        1987 except that such maximum contribution rate shall not
25        be higher than 6.7% or lower than 6.5% and an  employer's
26        maximum  contribution  rate for 1988, 1989 and 1990 shall
27        be the greater of 6.4% or the product  of  6.4%  and  the
28        adjusted  State  experience  factor  for  the  applicable
29        calendar year.
30             3.  If  any  product  obtained in this subsection is
31        not an exact multiple of one-tenth  of  one  percent,  it
32        shall  be increased or reduced, as the case may be to the
33        nearer multiple of  one-tenth  of  1  percent.   If  such
34        product  is equally near to two multiples of one-tenth of
                            -5-                LRB9002127WHmg
 1        1 percent, it shall be increased to the  higher  multiple
 2        of one-tenth of 1 percent.
 3             4.  Intermediate  rates  between  such  minimum  and
 4        maximum   rates  shall  be  at  one-tenth  of  1  percent
 5        intervals.
 6        The contribution rate of each  employer  for  whom  wages
 7    became  benefit  wages during the applicable period specified
 8    in Section 1503, but who did not  report  wages  for  insured
 9    work  during  such  period, shall be the maximum contribution
10    rate as determined by paragraph 2 of  this  subsection.   The
11    contribution  rate for each employer for whom no wages became
12    benefit wages  during  the  applicable  period  specified  in
13    Section  1503,  and who did not report wages for insured work
14    during such period, shall be the  greater  of  2.7%  or  2.7%
15    times  the  then  current adjusted State experience factor as
16    determined by the Director in accordance with the  provisions
17    of Sections 1504 and 1505.
18        E.  The contribution rate for calendar year 1991 and each
19    calendar  year  thereafter  of each employer who has incurred
20    liability for the payment of contributions within each of the
21    three calendar years immediately preceding the calendar  year
22    for  which  a  rate  is being determined shall be the product
23    obtained by multiplying the employer's benefit ratio  defined
24    by  Section  1503.1  for  that  calendar year by the adjusted
25    state experience factor for the same year, provided that:
26             1.  Except as otherwise provided in this  paragraph,
27        An  employer's  minimum  contribution  rate  for calendar
28        years prior to 1996 and for calendar year 1997  shall  be
29        the   greater   of   0.2%  or  the  product  obtained  by
30        multiplying 0.2% by the adjusted state experience  factor
31        for  the  applicable calendar year. An employer's minimum
32        contribution rate for calendar year 1996 and any calendar
33        year after 1997 shall be  the  greater  of  0.1%  or  the
34        product  obtained  by  multiplying  0.1%  by the adjusted
                            -6-                LRB9002127WHmg
 1        state experience factor for the applicable calendar year.
 2        An employer's minimum contribution rate shall be 0.1% for
 3        calendar year 1996.
 4             2.  An employer's maximum contribution rate shall be
 5        the greater of 6.4%  or  the  product  of  6.4%  and  the
 6        adjusted  state  experience  factor  for  the  applicable
 7        calendar year.
 8             3.  If  any  product  obtained in this subsection is
 9        not an exact multiple of one-tenth  of  one  percent,  it
10        shall  be increased or reduced, as the case may be to the
11        nearer multiple of one-tenth  of  one  percent.  If  such
12        product  is equally near to two multiples of one-tenth of
13        one percent, it shall be increased to the higher multiple
14        of one-tenth of one percent.
15             4.  Intermediate  rates  between  such  minimum  and
16        maximum rates  shall  be  at  one-tenth  of  one  percent
17        intervals.
18        The  contribution  rate  of  each employer for whom wages
19    became benefit wages during the applicable  period  specified
20    in  Section  1503 or for whom benefit payments became benefit
21    charges during the applicable  period  specified  in  Section
22    1503.1,  but who did not report wages for insured work during
23    such period,  shall  be  the  maximum  contribution  rate  as
24    determined   by   paragraph   2   of  this  subsection.   The
25    contribution rate for each employer for whom no wages  became
26    benefit  wages  during  the  applicable  period  specified in
27    Section 1503 or for whom no benefit payments  became  benefit
28    charges  during  the  applicable  period specified in Section
29    1503.1, and who did not report wages for insured work  during
30    such  period,  shall be the greater of 2.7% or 2.7% times the
31    then current adjusted state experience factor  as  determined
32    by the Director in accordance with the provisions of Sections
33    1504 and 1505.
34        F.  Notwithstanding the other provisions of this Section,
                            -7-                LRB9002127WHmg
 1    and  pursuant  to  Section  271  of the Tax Equity and Fiscal
 2    Responsibility  Act  of  1982,  as  amended,  no   employer's
 3    contribution  rate with respect to calendar years 1985, 1986,
 4    1987 and 1988 shall, for any calendar  quarter  during  which
 5    the wages paid by that employer are less than $50,000, exceed
 6    the following: with respect to calendar year 1985, 3.7%; with
 7    respect to calendar year 1986, 4.1%; with respect to calendar
 8    year  1987,  4.5%;  and  with  respect to calendar year 1988,
 9    5.0%.
10        G.  Notwithstanding the other provisions of this Section,
11    no employer's contribution rate with respect to calendar year
12    1989 and each calendar year thereafter shall exceed  5.4%  of
13    the  wages  for  insured work paid by him during any calendar
14    quarter, if such wages  paid  during  such  calendar  quarter
15    total less than $50,000.
16    (Source: P.A. 89-446, eff. 2-8-96.)
17        (820 ILCS 405/1506.3) (from Ch. 48, par. 576.3)
18        Sec.   1506.3.    Fund   building   rates   -   Temporary
19    Administrative Funding.
20        A.  Notwithstanding  any other provision of this Act, the
21    following fund building rates shall  be  in  effect  for  the
22    following calendar years:
23        For each employer whose contribution rate for 1988, 1989,
24    1990,  the  first,  third,  and fourth quarters of 1991, 1992
25    through, 1993, 1994, 1995, and 1997  and  any  calendar  year
26    thereafter  would, in the absence of this Section, be 0.2% or
27    higher, or whose contribution rate for 1996 and any  calendar
28    year  after  1997  would,  in the absence of this Section, be
29    0.1% or higher, a contribution rate which is the sum of  such
30    rate and 0.4%;
31        For  each employer whose contribution rate for the second
32    quarter of 1991 would, in the absence  of  this  Section,  be
33    0.2%  or higher, a contribution rate which is the sum of such
                            -8-                LRB9002127WHmg
 1    rate and 0.3%;
 2        For each employer whose contribution rate for 1996 would,
 3    in the  absence  of  this  Section,  be  0.1%  or  higher,  a
 4    contribution rate which is the sum of such rate and 0.4%;
 5        Notwithstanding  the preceding paragraphs of this Section
 6    or any other provision of this Act, except for the provisions
 7    contained in Section 1500 pertaining to rates  applicable  to
 8    employers  classified  under the Standard Industrial Code, no
 9    employer whose total wages  for  insured  work  paid  by  him
10    during  any  calendar  quarter  in 1988 and any calendar year
11    thereafter are less than $50,000 shall pay contributions at a
12    rate  with  respect  to  such  quarter  which   exceeds   the
13    following:  with  respect  to  calendar  year  1988, 5%; with
14    respect to 1989 and any calendar year thereafter, 5.4%.
15        Notwithstanding the preceding paragraph of this  Section,
16    or   any   other   provision   of  this  Act,  no  employer's
17    contribution rate with respect to calendar years 1993 through
18    1995 shall exceed 5.4% if the employer ceased  operations  at
19    an  Illinois  manufacturing  facility  in  1991  and remained
20    closed at that facility during all of 1992, and the  employer
21    in 1993 commits to invest at least $5,000,000 for the purpose
22    of  resuming  operations  at  that facility, and the employer
23    rehires during 1993 at least 250 of the individuals  employed
24    by  it  at  that facility during the one year period prior to
25    the cessation of its operations,  provided  that,  within  30
26    days after the effective date of this amendatory Act of 1993,
27    the  employer makes application to the Department to have the
28    provisions of this paragraph apply to  it.   The  immediately
29    preceding  sentence shall be null and void with respect to an
30    employer which by December 31, 1993  has  not  satisfied  the
31    rehiring  requirement specified by this paragraph or which by
32    December 31, 1994 has not made the  investment  specified  by
33    this paragraph.
34        B.  Notwithstanding  any other provision of this Act, for
                            -9-                LRB9002127WHmg
 1    the second quarter of 1991, the  contribution  rate  of  each
 2    employer  as  determined  in  accordance  with Sections 1500,
 3    1506.1, and subsection A of this Section shall  be  equal  to
 4    the  sum of such rate and 0.1%; provided that this subsection
 5    shall not apply to any employer  whose  rate  computed  under
 6    Section  1506.1  for  such  quarter is between 5.1% and 5.3%,
 7    inclusive, and  who  qualifies  for  the  5.4%  rate  ceiling
 8    imposed  by  the  last  paragraph  of  subsection  A for such
 9    quarter.  All payments made pursuant to this subsection shall
10    be deposited in the Employment Security  Administrative  Fund
11    established   under   Section   2103.1   and   used  for  the
12    administration of this Act.
13        C.  Payments  received  by   the   Director   which   are
14    insufficient to pay the total contributions due under the Act
15    shall  be first applied to satisfy the amount due pursuant to
16    subsection B.
17        D.  All  provisions  of  this  Act  applicable   to   the
18    collection  or  refund of any contribution due under this Act
19    shall be applicable to the collection or  refund  of  amounts
20    due pursuant to subsection B.
21    (Source: P.A. 88-518; 89-446, eff. 2-8-96.)
22        Section  99.  Effective date.  This Act takes effect upon
23    becoming law.

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