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90_HB3097 New Act Creates the Unemployment Compensation Gap Act. Establishes an Unemployment Compensation Gap Program, operated by the Department of Employment Security, to provide unemployment benefits to persons who do not qualify for unemployment insurance but meet specified criteria. LRB9011096WHmg LRB9011096WHmg 1 AN ACT in relation to unemployment benefits. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 1. Short title. This Act may be cited as the 5 Unemployment Compensation Gap Act. 6 Section 5. Findings and Purpose. 7 (a) The unemployment insurance program is highly 8 successful at supporting workers when they lose a job, 9 facilitating prompt re-employment, and keeping workers out of 10 poverty after a job loss. 11 (b) The unemployment insurance program, due to its 12 structure and technical eligibility rules, does not cover 13 many workers when they lose their jobs for reasons other than 14 misconduct connected with work. 15 (c) The working poor, workers recently entering the 16 workforce after a period of unemployment, part-time and 17 temporary workers, and workers with external demands that 18 interfere with work, such as single parents or caretakers of 19 disabled family members, are among those most likely not to 20 qualify for unemployment insurance when they lose a job for 21 reasons other than misconduct connected with the work. These 22 are the groups most likely to fall into poverty after a job 23 loss, placing them at risk of needing welfare and of 24 encountering mounting barriers to staying in the workforce. 25 (d) Women workers are far less likely to qualify for 26 unemployment insurance benefits when they lose a job for 27 reasons other than misconduct connected to the work than male 28 workers. This is because women are more likely to hold the 29 types of jobs, exhibit the types of work patterns, and 30 experience the types of job loss that result in ineligibility 31 for unemployment insurance. -2- LRB9011096WHmg 1 (e) Employers fund the unemployment insurance program 2 through a special tax. While the unemployment insurance 3 program is the preferred method of providing unemployment 4 insurance, it cannot be expanded sufficiently at this time to 5 address the gaps addressed by this Act. 6 (f) The purpose of this Act is to make the re-employment 7 strategy of the unemployment insurance program available to 8 more poor and female workers by providing unemployment 9 compensation even though they fail to qualify for the regular 10 unemployment insurance program, thereby helping more working 11 poor and working women who lose jobs avoid poverty and the 12 need for welfare, retain their attachment to the workforce, 13 and become quickly re-employed. 14 Section 10. Unemployment Compensation Gap Program. 15 There is established an Unemployment Compensation Gap 16 Program, to be operated by the Department of Employment 17 Security as a part of the unemployment insurance program, and 18 funded with appropriations from the general revenues of the 19 State. The Department shall operate the Unemployment 20 Compensation Gap Program using all rules, procedures, and 21 practices used under the unemployment insurance program 22 except as provided in this Act. 23 Section 15. Coordination with Unemployment Insurance. 24 (a) The Unemployment Compensation Gap Program provides 25 expanded eligibility for unemployment compensation to 26 eligible persons who fail to qualify for unemployment 27 insurance under the rules of the unemployment insurance 28 program. The Department shall operate the Unemployment 29 Compensation Gap Program in the same manner as the 30 unemployment insurance program, applying all definitions, 31 rules, procedures, and practices provided for under the 32 Unemployment Insurance Act and implementing rules that are -3- LRB9011096WHmg 1 not inconsistent with this Act. To the extent the provisions 2 of the Unemployment Insurance Act are not inconsistent with 3 this Act, they are incorporated in this Act by reference. 4 The Department shall adopt by rule further definitions and 5 procedures necessary for implementation of the Unemployment 6 Compensation Gap Program. Base period employers of 7 beneficiaries under the Unemployment Compensation Gap Program 8 shall not have their status with respect to the unemployment 9 insurance program, or their tax liability under the 10 unemployment insurance program, affected by a former 11 employee's receipt of benefits under the Unemployment 12 Compensation Gap Program. The Department shall pay for 13 Unemployment Compensation Gap Program benefits and related 14 administrative costs with appropriations from the general 15 revenues of the State rather than moneys in the Unemployment 16 Insurance Trust Fund. 17 (b) Any person eligible for regular unemployment 18 insurance under current or future rules, regardless of 19 amount, is not eligible for Unemployment Compensation Gap 20 benefits. 21 Section 20. Eligibility. An applicant must meet all 22 eligibility and procedural rules applicable to the 23 unemployment insurance program, except that the following 24 eligibility rules apply to the Unemployment Compensation Gap 25 Program: 26 (a) The minimum base period earnings requirement may be 27 satisfied by aggregate earnings in the base period, without 28 any requirement that the earnings be distributed in any 29 particular way among the base period quarters. 30 (b) The base period shall consist of the first 4 31 quarters preceding the date of application, including the 32 incomplete quarter in which the application is filed, as to 33 which there is a complete record of the applicant's earnings -4- LRB9011096WHmg 1 as proven by the State's records, the applicant's records, or 2 the applicant's employer's records. 3 (c) The disqualification from unemployment insurance for 4 voluntary leaving of employment for reasons not attributable 5 to the employer shall not apply if the applicant proves that 6 the reason for leaving employment was the loss of child care 7 arrangements necessitating the applicant personally caring 8 for the children rather than working. "Loss of child care 9 arrangements" includes loss for any reason not the fault of 10 the applicant in spite of a good faith effort to find 11 replacement care on time to enable continuing employment. 12 Section 25. Benefits. Based upon base period earnings 13 as specified in subsections (a) and (b) Section 20, benefits 14 shall be calculated the in the same manner as under the 15 unemployment insurance program and paid on the same basis and 16 schedule, subject to the same conditions and other ongoing 17 eligibility rules as under the unemployment insurance 18 program.