Senate Sponsors: LAUZEN. House Sponsors: MADIGAN,MJ-HOFFMAN-STROGER-LINDNER Short description: UNEMP INS-FUND BUILDING RATES Synopsis of Bill as introduced: Amends the Unemployment Insurance Act. Eliminates provisions specifying fund building rates for certain employers in 2002 and subsequent years. FISCAL NOTE (Department of Employment Security) Elimination of the 0.4% fund builder would equate to a maximum tax break of $36 per covered employee for all affected employ- ers. The estimated first year impact totals $176 million (15% of all projected tax revenues that first year. All 288,584 employers assigned a tax rate for CY 2001 would benefit from the tax reduction in 2002. Unemployment benefit payments would not be affected by this proposal. Illinois' unemployment trust fund, where employer taxes are deposited and from which unem- ployment benefits are paid, has a current balance of $1.7 bil- lion. If future economic changes result in trust fund insolven- cy, State law triggers benefit freezes or reductions and an additional State surcharge on employers, and federal law trig- gers penalty taxes on employers and assesses interest on any debt that must be paid with other State funds. HOUSE AMENDMENT NO. 1. Deletes reference to: 820 ILCS 405/1506.3 Adds reference to: 820 ILCS 405/3200 from Ch. 48, par. 820 Deletes everything. Amends the Unemployment Insurance Act. Makes a technical change in a Section concerning the short title of the Act. Last action on Bill: SESSION SINE DIE Last action date: JAN-07-2003 Location: Senate Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 0 END OF INQUIRY Full Text Bill Status