Public Act 93-0634

HB0810 Enrolled                      LRB093 05611 WGH 05704 b

    AN ACT in relation to unemployment insurance.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  1.  Short  title.  This  Act may be cited as the
Illinois Unemployment Insurance Trust Fund Financing Act.

    Section 2.  Findings and Declaration  of  Policy.  It  is
hereby found and declared that:
    A.  It  is an essential governmental function to maintain
funds in an amount sufficient to  pay  unemployment  benefits
when due;
    B.  At   the   time   of   the  enactment  of  this  Act,
unemployment  benefits  payments  are  made  from   Illinois'
account  in  the Unemployment Trust Fund of the United States
Treasury and are funded by employer contributions;
    C.  At the time of the enactment of this  Act,  borrowing
from  the  Federal government is the only option available to
obtain sufficient funds to pay benefits when the  balance  in
Illinois'  account  in  the  Unemployment  Trust  Fund of the
United States Treasury  is  insufficient  to  make  necessary
payments;
    D.  Alternative methods of replenishing Illinois' account
in  the Unemployment Trust Fund of the United States Treasury
may reduce the costs of providing unemployment  benefits  and
employers' cost of doing business in the State;
    E.  It  is in the State's best interests to authorize the
issuance  of  bonds  when  appropriate  for  the  purpose  of
continuing the unemployment insurance program at  the  lowest
possible cost to the State and employers in Illinois; and
    F.  It  is the public policy of this State to promote and
encourage   the   full   participation   of    female-    and
minority-owned  firms  with  regard  to bonds issued by State
departments, agencies, and authorities.  The Director  shall,
therefore,  ensure  that  the process for procuring contracts
with  regard  to  Bonds  includes  outreach  to  female-  and
minority-owned firms and gives  due  consideration  to  those
firms in the selection and approval of any contracts with any
parties necessary to issue Bonds.

    Section 3.  Definitions. For purposes of this Act:
    A.  "Act"  shall mean the Illinois Unemployment Insurance
Trust Fund Financing Act.
    B.  "Benefits" shall have the  meaning  provided  in  the
Unemployment Insurance Act.
    C.  "Bond"   means   any   type  of  revenue  obligation,
including, without limitation,  fixed  rate,  variable  rate,
auction  rate  or  similar  bond, note, certificate, or other
instrument, including, without limitation, an  interest  rate
exchange  agreement,  an  interest  rate  lock  agreement,  a
currency  exchange  agreement,  a  forward payment conversion
agreement, an agreement to provide payments based  on  levels
of  or  changes in interest rates or currency exchange rates,
an agreement to exchange cash flows or a series of  payments,
an  option, put, or call to hedge payment, currency, interest
rate, or other exposure, payable from and secured by a pledge
of  Fund  Building  Receipts  collected   pursuant   to   the
Unemployment  Insurance  Act,  and  all  interest  and  other
earnings  upon  such amounts held in the Master Bond Fund, to
the  extent  provided  in  the  proceedings  authorizing  the
obligation.
    D.  "Bond Administrative  Expenses"  means  expenses  and
fees  incurred  to administer and issue, upon a conversion of
any of the Bonds from one mode to another and from taxable to
tax-exempt, the Bonds issued pursuant to this Act,  including
fees   for   paying  agents,  trustees,  financial  advisors,
underwriters, remarketing agents,  attorneys  and  for  other
professional  services  necessary  to  ensure compliance with
applicable state or federal law.
    E.  "Bond Obligations" means the principal of a Bond  and
any  premium  and  interest on a Bond issued pursuant to this
Act, together with any amount owed  under  a  related  Credit
Agreement.
    F.  "Credit  Agreement" means, without limitation, a loan
agreement,  a  revolving  credit  agreement,   an   agreement
establishing  a  line  of  credit, a letter of credit, notes,
municipal bond insurance, standby bond  purchase  agreements,
surety  bonds,  remarketing agreements and the like, by which
the Department may borrow funds to pay or redeem or  purchase
and   hold   its   bonds,  agreements  for  the  purchase  or
remarketing of bonds or any other agreement that enhances the
marketability, security, or creditworthiness of a Bond issued
under this Act.
         1.   Such  Credit  Agreement   shall   provide   the
    following:
              a.  The  choice of law for the obligations of a
         financial provider may be  made  for  any  state  of
         these  United  States, but the law which shall apply
         to the Bonds shall  be  the  law  of  the  State  of
         Illinois,  and  jurisdiction  to enforce such Credit
         Agreement  as  against  the  Department   shall   be
         exclusively  in  the courts of the State of Illinois
         or  in   the   applicable   federal   court   having
         jurisdiction   and   located  within  the  State  of
         Illinois.
              b.  Any such Credit Agreement  shall  be  fully
         enforceable  as  a valid and binding contract as and
         to the extent provided by applicable law.
         2.  Without  limiting  the  foregoing,  such  Credit
    Agreement, may include any of the following:
              a.  Interest rates on the Bonds may  vary  from
         time  to time depending upon criteria established by
         the Director, which may include, without limitation:
                   (i)  A variation in interest rates as  may
              be   necessary   to   cause  the  Bonds  to  be
              remarketed from time to time at a  price  equal
              to  their  principal  amount  plus  any accrued
              interest;
                   (ii)  Rates set by auctions; or
                   (iii)  Rates set by formula.
              b.  A national banking association, bank, trust
         company,  investment  banker  or   other   financial
         institution   may   be   appointed  to  serve  as  a
         remarketing  agent  in  that  connection,  and  such
         remarketing agent may be delegated authority by  the
         Department to determine interest rates in accordance
         with criteria established by the Department.
              c.  Alternative  interest  rates  or provisions
         may apply during such times as the Bonds are held by
         the  financial  providers  or  similar  persons   or
         entities  providing  a  Credit  Agreement  for those
         Bonds and, during such times, the  interest  on  the
         Bonds  may be deemed not exempt from income taxation
         under the Internal  Revenue  Code  for  purposes  of
         State  law,  as  contained in the Bond Authorization
         Act, relating to the permissible rate of interest to
         be borne thereon.
              d.  Fees may be paid to the financial providers
         or similar persons or entities  providing  a  Credit
         Agreement,  including  all reasonably related costs,
         including   therein   costs   of   enforcement   and
         litigation (all such fees and costs being  financial
         provider  payments)  and financial provider payments
         may be paid, without limitation,  from  proceeds  of
         the  Bonds  being the subject of such agreements, or
         from Bonds issued to  refund  such  Bonds,  provided
         that  such financial provider payments shall be made
         subordinate to the payments on the Bonds.
              e.  The Bonds need not be held in physical form
         by the financial providers  or  similar  persons  or
         entities providing a Credit Agreement when providing
         funds to purchase or carry the Bonds from others but
         may  be  represented  in  uncertificated form in the
         Credit Agreement.
              f.  The debt or obligation  of  the  Department
         represented  by  a  Bond tendered for purchase to or
         otherwise made available to the Department thereupon
         acquired by either the  Department  or  a  financial
         provider  shall not be deemed to be extinguished for
         purposes  of  State  law  until  cancelled  by   the
         Department or its agent.
              g.   Such  Credit  Agreement  may  provide  for
         acceleration  of  the  principal  amounts due on the
         Bonds.
    G.  "Department"  means  the   Illinois   Department   of
Employment Security.
    H.  "Director"   means   the  Director  of  the  Illinois
Department of Employment Security.
    I.  "Fund  Building  Rates"  are  those   rates   imposed
pursuant to Section 1506.3 of the Unemployment Insurance Act.
    J.  "Fund  Building  Receipts"  shall  have  the  meaning
provided in the Unemployment Insurance Act.
    K.  "Master  Bond  Fund"  shall  mean, for any particular
issuance of Bonds under this Act, the  fund  established  for
the  deposit  of  Fund Building Receipts upon or prior to the
issuance of Bonds under this Act, and during  the  time  that
any  Bonds  are outstanding under this Act and from which the
payment  of   Bond   Obligations   and   the   related   Bond
Administrative  Expenses  incurred  in  connection  with such
Bonds shall be made.  That portion of the  Master  Bond  Fund
containing  the  Required Fund Building Receipts Amount shall
be  irrevocably  pledged  to  the  timely  payment  of   Bond
Obligations and Bond Administrative Expenses due on any Bonds
issued  pursuant to this Act and any Credit Agreement entered
in connection with the Bonds. The Master Bond Fund  shall  be
held separate and apart from all other State funds. Moneys in
the Master Bond Fund shall not be commingled with other State
funds,  but  they  shall  be deposited as required by law and
maintained in a separate account on the books  of  a  savings
and  loan  association,  bank  or  other  qualified financial
institution. All interest  earnings  on  amounts  within  the
Master  Bond  Fund  shall accrue to the Master Bond Fund. The
Master Bond Fund may include such funds and accounts  as  are
necessary  for  the  deposit  of bond proceeds, Fund Building
Receipts,  payment  of  principal,  interest,  administrative
expenses, costs of issuance, in the case of bonds  which  are
exempt from Federal taxation, rebate payments, and such other
funds   and   accounts   which   may  be  necessary  for  the
implementation and administration of this Act.  The  Director
shall  be  liable on her or his general official bond for the
faithful performance of her or his duties as custodian of the
Master Bond Fund. Such liability on her or his official  bond
shall  exist  in  addition to the liability upon any separate
bond given by her or  him.  All  sums  recovered  for  losses
sustained by the Master Bond Fund shall be deposited into the
Fund.
    The  Director  shall  report  quarterly in writing to the
Employment Security Advisory Board concerning the actual  and
anticipated deposits into and expenditures and transfers made
from the Master Bond Fund.
    L.  "Required  Fund  Building  Receipts Amount" means the
aggregate amount of Fund Building  Receipts  required  to  be
maintained in the Master Bond Fund as set forth in Section 4I
of this Act.

    Section 4.  Authority to Issue Revenue Bonds.
    A.  The  Department  shall  have  the continuing power to
borrow money for the purpose of carrying out the following:
         1.  To reduce or avoid the need to borrow or  obtain
    a  federal  advance  under  Section 1201, et seq., of the
    Social Security Act (42 U.S.C. Section 1321), as amended,
    or any similar federal law; or
         2.  To refinance a previous advance received by  the
    Department with respect to the payment of Benefits; or
         3.  To  refinance, purchase, redeem, refund, advance
    refund or defease  (including,  any  combination  of  the
    foregoing)  any outstanding Bonds issued pursuant to this
    Act; or
         4.  To fund a surplus in Illinois'  account  in  the
    Unemployment Trust Fund of the United States Treasury.
    Paragraphs  1,  2  and  4  are  inoperative  on and after
January 1, 2010.
    B.  As evidence of the obligation of  the  Department  to
repay money borrowed for the purposes set forth in Section 4A
above,  the  Department may issue and dispose of its interest
bearing revenue Bonds and may also, from time-to-time,  issue
and   dispose  of  its  interest  bearing  revenue  Bonds  to
purchase,  redeem,  refund,   advance   refund   or   defease
(including,  any  combination  of the foregoing) any Bonds at
maturity or pursuant to redemption provisions or at any  time
before  maturity.  The  Director,  in  consultation  with the
Department's Employment Security Advisory Board,  shall  have
the  power  to  direct that the Bonds be issued. Bonds may be
issued in one or more series and under terms  and  conditions
as  needed  in  furtherance  of the purposes of this Act. The
Illinois  Finance  Authority  shall  provide  any  technical,
legal, or administrative services if and  when  requested  by
the  Director and the Employment Security Advisory Board with
regard to the issuance of Bonds. Such Bonds shall  be  issued
in  the  name of the State of Illinois for the benefit of the
Department and shall be executed by the Director. In case any
Director whose signature appears on any  Bond  ceases  (after
attaching  his  or her signature) to hold that office, her or
his signature shall nevertheless be valid and  effective  for
all purposes.
    C.  No  Bonds  shall  be  issued  without  the Director's
written certification that, based upon a reasonable financial
analysis, the issuance of Bonds is reasonably expected to:
              (i)  Result  in  a  savings  to  the  State  as
         compared to the cost of borrowing  or  obtaining  an
         advance under Section 1201, et seq., Social Security
         Act  (42  U.S.C.  Section  1321), as amended, or any
         similar federal law;
              (ii)  Result in terms which are advantageous to
         the State through refunding,  advance  refunding  or
         other similar restructuring of outstanding Bonds; or
              (iii)  Allow  the State to avoid an anticipated
         deficiency   in   the   State's   account   in   the
         Unemployment  Trust  Fund  of  the   United   States
         Treasury by funding a surplus in the State's account
         in  the Unemployment Trust Fund of the United States
         Treasury.
    D.  All such Bonds shall be payable  from  Fund  Building
Receipts.  Bonds  may  also  be  paid  from (i) to the extent
allowable by law, from monies in the State's account  in  the
Unemployment  Trust  Fund  of the United States Treasury; and
(ii) to the extent allowable by law, a federal advance  under
Section  1201, et seq., of the Social Security Act (42 U.S.C.
Section 1321); and (iii) proceeds of Bonds and receipts  from
related  credit and exchange agreements to the extent allowed
by this Act and applicable legal requirements.
    E.  The maximum  principal  amount  of  the  Bonds,  when
combined  with  the  outstanding principal of all other Bonds
issued pursuant to this Act, shall not  at  any  time  exceed
$1,400,000,000, excluding all of the outstanding principal of
any other Bonds issued pursuant to this Act for which payment
has been irrevocably provided by refunding or other manner of
defeasance. It is the intent of this Act that the outstanding
Bond  authorization  limits  provided  for in this Section 4E
shall be revolving in nature, such that the amount  of  Bonds
outstanding that are not refunded or otherwise defeased shall
be  included  in  determining  the  maximum  amount  of Bonds
authorized to be issued pursuant to the Act.
    F.  Such Bonds and refunding  Bonds  issued  pursuant  to
this Act may bear such date or dates, may mature at such time
or  times  not exceeding 10 years from their respective dates
of issuance, and may bear interest at such rate or rates  not
exceeding   the   maximum   rate   authorized   by  the  Bond
Authorization Act, as amended and in effect at  the  time  of
the issuance of the Bonds.
    G.  The  Department  may  enter  into  a Credit Agreement
pertaining to the issuance of the Bonds, upon terms which are
not inconsistent with this Act and any other  laws,  provided
that  the  term of such Credit Agreement shall not exceed the
term of the Bonds, plus any time period necessary to cure any
defaults under such Credit Agreement.
    H.  Interest earnings paid to holders of the Bonds  shall
not be exempt from income taxes imposed by the State.
    I.  While   any   Bond  Obligations  are  outstanding  or
anticipated to come due as a result of Bonds expected  to  be
issued  in  either  or  both  of the 2 immediately succeeding
calendar quarters, the Department shall collect  and  deposit
Fund Building Receipts into the Master Bond Fund in an amount
necessary  to  satisfy  the  Required  Fund Building Receipts
Amount prior to expending  Fund  Building  Receipts  for  any
other  purpose.  The  Required  Fund Building Receipts Amount
shall be that amount necessary to ensure the marketability of
the Bonds, which shall be specified in the  Bond  Sale  Order
executed  by  the Director in connection with the issuance of
the Bonds.
    J.  Holders of the Bonds shall have a first and  priority
claim  on  all Fund Building Receipts in the Master Bond Fund
in parity with all other holders of the Bonds, provided  that
such  claim may be subordinated to the provider of any Credit
Agreement for any of the Bonds.
    K.  To the extent that  Fund  Building  Receipts  in  the
Master  Bond  Fund  are  not  otherwise needed to satisfy the
requirements of this Act and the instruments authorizing  the
issuance  of  the  Bonds,  such  monies  shall be used by the
Department, in such amounts as determined by the Director  to
do either or both of the following:
         1.  To  purchase, refinance, redeem, refund, advance
    refund or defease (or any combination of  the  foregoing)
    outstanding  Bonds,  to the extent such action is legally
    available and does not impair the tax  exempt  status  of
    any  of the Bonds which are, in fact, exempt from Federal
    income taxation; or
         2.  As a deposit  in  the  State's  account  in  the
    Unemployment Trust Fund of the United States Treasury.
    L.  The Director shall determine the method of sale, type
of  bond, bond form, redemption provisions and other terms of
the Bonds that, in the Director's judgment, best achieve  the
purposes  of  this Act and effect the borrowing at the lowest
practicable cost, provided that those determinations are  not
inconsistent   with   this  Act  or  other  applicable  legal
requirements. Those determinations shall be set  forth  in  a
document  entitled  "Bond Sale Order" acceptable, in form and
substance, to  the  attorney  or  attorneys  acting  as  bond
counsel  for  the  Bonds  in connection with the rendering of
opinions necessary for the issuance of the Bonds and executed
by the Director.

    Section 5.  Bond Proceeds.
    A.  The proceeds of any Bonds  issued  pursuant  to  this
Act,  including  investment  income thereon, shall be held in
trust in the Master Bond Fund for the following  purpose  and
in such amounts as determined by the Director:
         1.  Paying   the   principal  and  interest  on  any
    outstanding federal advance received  by  the  Department
    under  Section  1201, et seq., of the Social Security Act
    (42 U.S.C. Section 1321),  as  amended,  or  any  similar
    federal law;
         2.  Being  deposited into the State's account in the
    Unemployment Trust Fund of the United States Treasury for
    the purpose of: (i) avoiding anticipated deficiencies  in
    that  account  or (ii) funding a surplus in that account,
    when doing either (i) or (ii) will result in a savings to
    the State or employers or both;
         3.  Paying the costs of issuing or  refinancing  any
    such Bonds;
         4.  Providing  an  appropriate  reserve for any such
    Bonds to the extent that the Department  determines  that
    an appropriate reserve is warranted; and
         5.  Paying capitalized interest on the Bonds for the
    period  determined  necessary  by  the Department, not to
    exceed 2 years.
    B.  Excess Bond proceeds remaining  available  after  the
payments  and  deposits  required  pursuant  to  Section  5A1
through  5A5  above  have  been  made,  may  be  used  in the
following manner as determined by the Director:
         1.  To  purchase,  redeem  or  defease   outstanding
    Bonds, to the extent such action is legally available and
    does not impair the tax-exempt status of any of the Bonds
    which are, in fact, tax-exempt; or
         2.  To   pay   any  scheduled  interest  payment  or
    payments due on any outstanding Bonds; or
         3.  Deposited  in  the  State's   account   in   the
    Unemployment Trust Fund of the United States Treasury.

    Section 6.  Bonds Not A Pledge of the State.
    A.  Any  Bonds  issued  under  this  Act, and any related
Credit Agreement, are not a pledge of the faith and credit or
moral  obligation  of  the  State  or  any  State  agency  or
political  subdivision  of  the  State.   All   Bonds,   Bond
Obligations  and payment obligations deriving from any Credit
Agreement are payable solely as provided in Section 4D.
    B.  Any Bonds and any  related  Credit  Agreement  issued
under  this  Act  must contain a conspicuous statement to the
effect that:
         1.  Neither  the  State,  nor  any   State   agency,
    political  corporation,  or  political subdivision of the
    State, is obligated to pay the principal of  or  interest
    on the Bonds except as provided by this Act; and
         2.  Neither the faith and credit of the State or any
    State   agency,   political   corporation,  or  political
    subdivision of the State, nor the moral obligation of any
    of them, is pledged to the payment of the principal of or
    interest on the Bonds.

    Section 7.  State Not to Impair Bond  Obligations.  While
Bonds  under  this Act are outstanding, the State irrevocably
pledges and covenants that it shall not:
    A.  Take action to limit or restrict the  rights  of  the
Department  to  fulfill  its  responsibilities  to  pay  Bond
Obligations, Bond Administrative Expenses or otherwise comply
with  instruments entered by the Department pertaining to the
issuance of the Bonds;
    B.  In any way impair the  rights  and  remedies  of  the
holders of the Bonds until the Bonds are fully discharged; or
    C.  Reduce:
         1.  The  Fund  Building  Rates  below  the levels in
    existence effective January 1, 2004;
         2.  The maximum amount includable as wages  pursuant
    to  Section  235  of the Unemployment Insurance Act below
    the levels in existence effective January 1, 2004; and
         3.  The Solvency  Adjustments  imposed  pursuant  to
    Section  1400.1  of  the Unemployment Insurance Act below
    the levels in existence effective January 1, 2004.

    Section  8.  Continuing  appropriation.  This  Act  shall
constitute an irrevocable and continuing appropriation of all
amounts necessary in respect to use of Fund Building Reciepts
and  Bond  Proceeds  for  purposes  specified  in  this  Act,
including, without limitation, for the provision for  payment
of  principal and interest on the Bonds and other amounts due
in connection with the issuance of the Bonds pursuant to this
Act, to the fullest extent such appropriation is required.

    Section  9.  Director's   Supplemental   Authority.   The
Director, on behalf of the Department, is authorized to enter
into  the covenants and agreements required by this Act, make
any   determinations,   calculations,    rules    or    other
promulgations  required  by  this  Act and engage or hire the
necessary   attorneys,   financial   advisors,   consultants,
verification  agents,  trustees,  underwriters,   remarketing
agents  and  other  professionals  necessary to carry out the
purposes and intent of this Act, unless  otherwise  expressly
specified or required under this Act.

    Section  10.  No Personal Liability. No director, officer
or  employee  of  the  Department  or  the  State  shall   be
personally  liable  as  a result of exercising the rights and
responsibilities granted under this Act.

    Section  11.  Omnibus  Bonds  Acts.   With   respect   to
instruments  for  the payment of money issued under this Act,
it is and always  has  been  the  intention  of  the  General
Assembly  (i)  that the Omnibus Bond Acts are and always have
been supplementary grants of power to  issue  instruments  in
accordance  with  the  Omnibus  Bond  Acts, regardless of any
provision of this Act that may appear to be or to  have  been
more  restrictive than those Omnibus Bond Acts, (ii) that the
provisions  of  this  Act  are  not  a  limitation   on   the
supplementary authority granted by the Omnibus Bond Acts, and
(iii)  that  instruments  issued  under  this  Act within the
supplementary authority granted by the Omnibus Bond Acts  are
not  invalid  because  of  any provision of this Act that may
appear to be or to have  been  more  restrictive  than  those
Omnibus Bond Acts.

    Section 12.  Mandatory Provisions. The provisions of this
Act are mandatory and not directory.

    Section  13.  Severability  and  inseverability.  If  any
provision  of  this  Act  or its application to any person or
circumstance  is  held  invalid,  the  invalidity   of   that
provision  or application does not affect other provisions or
applications of the Act that can be given effect without  the
invalid  provision  or  application,  except that this Act is
inseverable to the extent that if all or any substantial  and
material part of Sections 1 through 12 are held invalid, then
the entire Act (including both new and amendatory provisions)
is invalid.

    Section  13.1.  The Civil Administrative Code of Illinois
is amended by changing Section 5-540 as follows:

    (20 ILCS 5/5-540) (was 20 ILCS 5/6.28 and 5/7.01)
    Sec. 5-540.  In the Department  of  Employment  Security.
An  Employment  Security  Advisory  Board,  composed  of 12 9
persons.  Of the 12 9  members  of  the  Employment  Security
Advisory  Board, 4 3 members shall be representative citizens
chosen  from  the  employee  class,  4  3  members  shall  be
representative citizens chosen from the employing class,  and
4  3  members shall be representative citizens not identified
with either the employing class or the employee class.
(Source: P.A. 90-372, eff. 7-1-98; 91-239, eff. 1-1-00.)

    Section 13.2.  The Illinois Income Tax Act is amended  by
changing Section 701 as follows:

    (35 ILCS 5/701) (from Ch. 120, par. 7-701)
    Sec. 701.  Requirement and Amount of Withholding.
    (a)  In General.  Every employer maintaining an office or
transacting business within this State and required under the
provisions of the Internal Revenue Code to withhold a tax on:
         (1)  compensation  paid in this State (as determined
    under Section 304(a)(2)(B) to an individual; or
         (2)  payments  described  in  subsection  (b)  shall
    deduct and  withhold  from  such  compensation  for  each
    payroll  period  (as  defined  in  Section  3401  of  the
    Internal  Revenue  Code) an amount equal to the amount by
    which  such   individual's   compensation   exceeds   the
    proportionate   part   of   this   withholding  exemption
    (computed as provided in Section 702) attributable to the
    payroll period for which  such  compensation  is  payable
    multiplied  by  a  percentage equal to the percentage tax
    rate  for  individuals  provided  in  subsection  (b)  of
    Section 201.
    (b)  Payment  to  Residents.   Any   payment   (including
compensation)  to a resident by a payor maintaining an office
or transacting business  within  this  State  (including  any
agency,  officer,  or  employee  of  this  State  or  of  any
political subdivision of this State) and on which withholding
of  tax  is  required  under  the  provisions of the Internal
Revenue Code shall be deemed to be compensation paid in  this
State  by  an  employer  to  an  employee for the purposes of
Article 7 and Section 601(b)(1) to the extent such payment is
included in the recipient's base income and not subjected  to
withholding  by  another  state.  Notwithstanding  any  other
provision  to  the contrary, no amount shall be withheld from
unemployment insurance benefit payments made to an individual
pursuant  to  the  Unemployment  Insurance  Act  unless   the
individual  has  voluntarily elected the withholding pursuant
to rules promulgated by the Director of Employment Security.
    (c)  Special   Definitions.    Withholding    shall    be
considered  required  under  the  provisions  of the Internal
Revenue Code to the extent the Internal Revenue  Code  either
requires  withholding or allows for voluntary withholding the
payor and  recipient  have  entered  into  such  a  voluntary
withholding  agreement.  For  the  purposes  of Article 7 and
Section 1002(c) the term "employer" includes any payor who is
required to withhold tax pursuant to this Section.
    (d)  Reciprocal Exemption.  The Director may  enter  into
an  agreement  with the taxing authorities of any state which
imposes a tax on  or  measured  by  income  to  provide  that
compensation  paid  in  such state to residents of this State
shall be exempt from withholding of such tax; in  such  case,
any  compensation  paid  in  this  State to residents of such
state  shall  be  exempt  from  withholding.  All  reciprocal
agreements shall be subject to the  requirements  of  Section
2505-575   of   the   Department  of  Revenue  Law  (20  ILCS
2505/2505-575).
    (e)  Notwithstanding subsection (a)(2) of  this  Section,
no  withholding is required on payments for which withholding
is required under  Section  3405  or  3406  of  the  Internal
Revenue Code of 1954.
(Source: P.A. 91-239, eff. 1-1-00; 92-846, eff. 8-23-02.)

    Section  13.3.  The Unemployment Insurance Act is amended
by changing Sections 235, 237, 401, 601, 1401, 1502.1,  1505,
1506.3,  1507,  and  2100  and adding Sections 240.1, 1400.1,
1511.1, and 2106.1 as follows:

    (820 ILCS 405/235) (from Ch. 48, par. 345)
    Sec. 235.  The term "wages" does not include:
    A.  That  part   of   the   remuneration   which,   after
remuneration  equal  to $6,000 with respect to employment has
been paid to an individual by an employer during any calendar
year after 1977 and before 1980, is paid to  such  individual
by  such employer during such calendar year; and that part of
the remuneration which, after remuneration  equal  to  $6,500
with  respect to employment has been paid to an individual by
an employer during each calendar year 1980 and 1981, is  paid
to  such  individual  by  such  employer during that calendar
year;  and  that  part  of  the  remuneration  which,   after
remuneration  equal  to $7,000 with respect to employment has
been paid to an individual by an employer during the calendar
year 1982 is paid to such individual by such employer  during
that calendar year.
    With  respect  to the first calendar quarter of 1983, the
term "wages" shall include only the remuneration paid  to  an
individual by an employer during such quarter with respect to
employment  which does not exceed $7,000. With respect to the
three calendar quarters, beginning April 1,  1983,  the  term
"wages"  shall  include  only  the  remuneration  paid  to an
individual by an employer during such period with respect  to
employment which when added to the "wages" (as defined in the
preceding  sentence) paid to such individual by such employer
during the first calendar quarter of 1983,  does  not  exceed
$8,000.
    With  respect to the calendar year 1984, the term "wages"
shall include only the remuneration paid to an individual  by
an  employer  during  that  period with respect to employment
which does not exceed $8,000; with respect to calendar  years
1985,  1986 and 1987, the term "wages" shall include only the
remuneration paid to such individual by such employer  during
that  calendar year with respect to employment which does not
exceed $8,500.
    With respect to the calendar years 1988 through 2003  and
calendar  year  2005  and  each calendar year thereafter, the
term "wages" shall include only the remuneration paid  to  an
individual  by an employer during that period with respect to
employment which does not exceed $9,000.
    With respect to the calendar year 2004, the term  "wages"
shall  include only the remuneration paid to an individual by
an employer during that period  with  respect  to  employment
which  does  not  exceed  $9,800 $10,000. With respect to the
calendar years 2005 through  2009,  the  term  "wages"  shall
include  only  the  remuneration  paid to an individual by an
employer during that period with respect to employment  which
does  not  exceed the following amounts: $10,500 with respect
to the calendar  year  2005;  $11,000  with  respect  to  the
calendar year 2006; $11,500 with respect to the calendar year
2007;  $12,000  with  respect  to the calendar year 2008; and
$12,300 with respect to the calendar year 2009.
    With respect to the calendar year 2010 and each  calendar
year  thereafter,  the  term  "wages"  shall include only the
remuneration paid to an individual by an employer during that
period with respect to employment which does not  exceed  the
sum  of  the  wage  base  adjustment  applicable to that year
pursuant  to  Section  1400.1,  plus   the   maximum   amount
includable  as  "wages"  pursuant  to  this  subsection  with
respect   to   the   immediately   preceding  calendar  year.
Notwithstanding any provision to the  contrary,  the  maximum
amount  includable  as "wages" pursuant to this Section shall
not be less than $12,300 or greater than $12,960 with respect
to any calendar year after calendar year 2009.
    The remuneration paid to an  individual  by  an  employer
with  respect  to employment in another State or States, upon
which contributions were required of such employer  under  an
unemployment  compensation law of such other State or States,
shall be included as a part  of  the  remuneration  equal  to
$6,000,  $6,500,  $7,000, $8,000, $8,500, $9,000, or $10,000,
as the case may be, herein referred to. For the  purposes  of
this  subsection,  any  employing  unit which succeeds to the
organization, trade, or business, or to substantially all  of
the assets of another employing unit, or to the organization,
trade,  or business, or to substantially all of the assets of
a distinct severable portion of another employing unit, shall
be treated as a single unit  with  its  predecessor  for  the
calendar  year  in  which  such  succession  occurs,  and any
employing unit which is  owned  or  controlled  by  the  same
interests  which  own or control another employing unit shall
be treated as a  single  unit  with  the  unit  so  owned  or
controlled by such interests for any calendar year throughout
which  such  ownership  or  control  exists.  This subsection
applies only to Sections 1400, 1405A, and 1500.
    B.  The amount of any payment (including any amount  paid
by an employer for insurance or annuities, or into a fund, to
provide  for  any such payment), made to, or on behalf of, an
individual or any of his dependents under a  plan  or  system
established  by  an  employer which makes provision generally
for individuals performing services  for  him  (or  for  such
individuals generally and their dependents) or for a class or
classes  of  such  individuals  (or for a class or classes of
such individuals and their dependents),  on  account  of  (1)
sickness  or  accident  disability  (except those sickness or
accident disability payments which  would  be  includable  as
"wages"  in  Section  3306(b)(2)(A)  of  the Federal Internal
Revenue Code of 1954, in effect  on  January  1,  1985,  such
includable  payments  to  be  attributable  in such manner as
provided by Section 3306(b) of the Federal  Internal  Revenue
Code  of  1954, in effect on January 1, 1985), or (2) medical
or hospitalization expenses in connection  with  sickness  or
accident disability, or (3) death.
    C.  Any  payment made to, or on behalf of, an employee or
his beneficiary which  would  be  excluded  from  "wages"  by
subparagraph  (A), (B), (C), (D), (E), (F) or (G), of Section
3306(b)(5) of the Federal Internal Revenue Code of  1954,  in
effect on January 1, 1985.
    D.  The  amount  of any payment on account of sickness or
accident disability, or medical or  hospitalization  expenses
in  connection  with sickness or accident disability, made by
an employer to, or on behalf  of,  an  individual  performing
services  for him after the expiration of six calendar months
following the last calendar month  in  which  the  individual
performed services for such employer.
    E.  Remuneration paid in any medium other than cash by an
employing  unit  to an individual for service in agricultural
labor as defined in Section 214.
    F.  The amount of any supplemental  payment  made  by  an
employer  to an individual performing services for him, other
than remuneration for services performed, under a shared work
plan approved by the Director pursuant to Section 407.1.
(Source: P.A. 90-554, eff. 12-12-97; 91-342, eff. 7-29-99.)

    (820 ILCS 405/237) (from Ch. 48, par. 347)
    Sec.  237.  A. "Base   period"   means   (1)   the   four
consecutive calendar quarters ended on the preceding December
31,  for  benefit  years beginning in May, June, or July; (2)
the four consecutive calendar quarters ended on the preceding
March 31, for benefit years beginning in  August,  September,
or  October; (3) the four consecutive calendar quarters ended
on the preceding June 30,  for  benefit  years  beginning  in
November,  December, or January; and (4) the four consecutive
calendar quarters ended on the preceding  September  30,  for
benefit  years  beginning  in February, March, or April. This
paragraph shall apply to benefit  years  beginning  prior  to
November 1, 1981.
    For  each  benefit year beginning on or after November 1,
1981, "base period" means the first four  of  the  last  five
completed calendar quarters immediately preceding the benefit
year.  Further,  any  wages which had previously been used to
establish a valid claim pursuant  to  Section  242  and  with
respect  to  which  benefits  have  been  paid  shall  not be
included in the base period provided for in this subsection.
    B.  Notwithstanding subsection A the foregoing paragraph,
with respect to  any  benefit  year  beginning  on  or  after
January   1,  1988,  an  individual,  who  has  been  awarded
temporary total disability under  any  workers'  compensation
act or any occupational diseases act and does not qualify for
the  maximum weekly benefit amount  under Section 401 because
he was unemployed  and  awarded  temporary  total  disability
during   the   base  period  determined  in  accordance  with
subsection A the preceding paragraph, shall have  his  weekly
benefit  amount,  if  it  is  greater than the weekly benefit
amount  determined  in  accordance  with  subsection  A   the
preceding  paragraph,  determined  by  the  base  period of a
benefit year which began on the date of the beginning of  the
first   week   for  which  he  was  awarded  temporary  total
disability   under   any   workers'   compensation   act   or
occupational diseases act, provided, however, that such  base
period  shall  not  begin  more  than  one  year prior to the
individual's base period as determined under subsection A the
preceding paragraph.  Further, any wages which had previously
been used to establish a valid claim pursuant to Section  242
and  with  respect to which benefits have been paid shall not
be  included  in  the  base  period  provided  for  in   this
subsection paragraph.
    C.  With  respect  to  an individual who is ineligible to
receive benefits under this Act by reason of  the  provisions
of  Section  500E  during  the  base  periods  determined  in
accordance  with subsections A and B, "base period" means the
last 4 completed calendar quarters immediately preceding  the
benefit  year.  This  subsection shall not apply to establish
any benefit year beginning prior to January 1, 2008.
    D.  Notwithstanding  the  foregoing  provisions  of  this
Section, "base period" means the base period  as  defined  in
the  unemployment  compensation  law of any State under which
benefits are payable to an  individual  on  the  basis  of  a
combination of his wages pursuant to an arrangement described
in Section 2700 F.
(Source: P.A. 85-956; 85-1009.)

    (820 ILCS 405/240.1 new)
    Sec.   240.1.  "Fund  Building  Receipts"  means  amounts
directed for deposit into the Master Bond  Fund  pursuant  to
Section 1506.3.

    (820 ILCS 405/401) (from Ch. 48, par. 401)
    Sec.   401.    Weekly   Benefit   Amount   -  Dependents'
Allowances.
    A.  With respect to any week beginning prior to April 24,
1983, an individual's  weekly  benefit  amount  shall  be  an
amount  equal to the weekly benefit amount as defined in this
Act as in effect on November 30, 1982.
    B. 1.  With respect to any week  beginning  on  or  after
April  24,  1983  and before January 3, 1988, an individual's
weekly benefit amount shall  be  48%  of  his  prior  average
weekly  wage,  rounded  (if  not  already  a  multiple of one
dollar) to the next higher dollar;  provided,  however,  that
the  weekly  benefit  amount cannot exceed the maximum weekly
benefit amount, and cannot be less than 15% of the  statewide
average  weekly  wage,  rounded (if not already a multiple of
one dollar) to the next higher dollar.  However,  the  weekly
benefit  amount  for  an  individual  who  has  established a
benefit year  beginning  before  April  24,  1983,  shall  be
determined,  for  weeks  beginning on or after April 24, 1983
claimed with respect to that benefit year, as provided  under
this  Act as in effect on November 30, 1982.  With respect to
any week beginning on or after January  3,  1988  and  before
January  1, 1993, an individual's weekly benefit amount shall
be 49% of his prior average  weekly  wage,  rounded  (if  not
already  a multiple of one dollar) to the next higher dollar;
provided, however, that  the  weekly  benefit  amount  cannot
exceed  the maximum weekly benefit amount, and cannot be less
than $51. With respect to any  week  beginning  on  or  after
January  3,  1993  and during a benefit year beginning before
January 4, 2004, an individual's weekly benefit amount  shall
be  49.5%  of  his prior average weekly wage, rounded (if not
already a multiple of one dollar) to the next higher  dollar;
provided,  however,  that  the  weekly  benefit amount cannot
exceed the maximum weekly benefit amount and cannot  be  less
than  $51.  With  respect to any benefit year beginning on or
after  January  4,  2004  and  before  January  6,  2008,  an
individual's weekly benefit amount shall be 48% of his or her
prior average weekly wage, rounded (if not already a multiple
of one dollar) to the next higher dollar; provided,  however,
that  the  weekly  benefit  amount  cannot exceed the maximum
weekly benefit amount and  cannot  be  less  than  $51.  With
respect  to any benefit year beginning on or after January 6,
2008, an individual's weekly benefit amount shall be  47%  of
his or her prior average weekly wage, rounded (if not already
a  multiple  of  one  dollar)  to  the  next  higher  dollar;
provided,  however,  that  the  weekly  benefit amount cannot
exceed the maximum weekly benefit amount and cannot  be  less
than $51.
    2.  For the purposes of this subsection:
    With  respect to any week beginning on or after April 24,
1983, an individual's "prior average weekly wage"  means  the
total  wages  for insured work paid to that individual during
the 2 calendar quarters of his  base  period  in  which  such
total  wages were highest, divided by 26.  If the quotient is
not already a multiple of one dollar, it shall be rounded  to
the nearest dollar; however if the quotient is equally near 2
multiples  of  one  dollar, it shall be rounded to the higher
multiple of one dollar.
    "Determination date" means June 1, 1982, December 1, 1982
and December 1 of each succeeding calendar  year  thereafter.
However,  if  as of June 30, 1982, or any June 30 thereafter,
the net amount standing to the credit of this State's account
in the unemployment trust fund (less all outstanding advances
to that account, including advances pursuant to Title XII  of
the   federal   Social   Security   Act)   is   greater  than
$100,000,000, "determination date" shall mean December  1  of
that  year and June 1 of the succeeding year. Notwithstanding
the preceding sentence, for the purposes of  this  Act  only,
there shall be no June 1 determination date in any year after
1986.
    "Determination period" means, with respect to each June 1
determination date, the 12 consecutive calendar months ending
on the immediately preceding December 31 and, with respect to
each  December  1  determination  date,  the  12  consecutive
calendar months ending on the immediately preceding June 30.
    "Benefit  period" means the 12 consecutive calendar month
period beginning on the first day of the first calendar month
immediately following a determination date, except that, with
respect to any calendar year in  which  there  is  a  June  1
determination   date,  "benefit  period"  shall  mean  the  6
consecutive calendar month period beginning on the first  day
of   the  first  calendar  month  immediately  following  the
preceding December 1 determination date and the 6 consecutive
calendar month period beginning on the first day of the first
calendar month immediately following the June 1 determination
date. Notwithstanding the foregoing sentence, the 6  calendar
months  beginning  January  1,  1982 and ending June 30, 1982
shall be deemed a benefit period with respect  to  which  the
determination date shall be June 1, 1981.
    "Gross  wages"  means  all  the wages paid to individuals
during  the  determination  period  immediately  preceding  a
determination date for insured  work,  and  reported  to  the
Director  by  employers  prior  to the first day of the third
calendar month preceding that date.
    "Covered employment" for any  calendar  month  means  the
total  number  of individuals, as determined by the Director,
engaged in insured work at mid-month.
    "Average monthly covered employment" means one-twelfth of
the sum of the covered employment for  the  12  months  of  a
determination period.
    "Statewide  average  annual  wage"  means  the  quotient,
obtained  by  dividing gross wages by average monthly covered
employment for the same determination period, rounded (if not
already a multiple of one cent) to the nearest cent.
    "Statewide  average  weekly  wage"  means  the  quotient,
obtained by dividing the statewide average annual wage by 52,
rounded (if not already  a  multiple  of  one  cent)  to  the
nearest cent.  Notwithstanding any provisions of this Section
to  the  contrary,  the statewide average weekly wage for the
benefit period beginning July 1, 1982 and ending December 31,
1982 shall be the statewide average weekly wage in effect for
the immediately preceding benefit period plus one-half of the
result obtained by subtracting the statewide  average  weekly
wage  for  the  immediately preceding benefit period from the
statewide  average  weekly  wage  for  the   benefit   period
beginning  July  1, 1982 and ending December 31, 1982 as such
statewide average weekly wage would have been determined  but
for  the  provisions  of  this paragraph. Notwithstanding any
provisions of this Section to  the  contrary,  the  statewide
average  weekly  wage  for the benefit period beginning April
24, 1983 and ending January 31, 1984 shall be  $321  and  for
the  benefit  period  beginning  February  1, 1984 and ending
December 31, 1986 shall be $335, and for the  benefit  period
beginning  January  1,  1987,  and  ending December 31, 1987,
shall  be  $350,  except  that  for  an  individual  who  has
established a benefit year beginning before April  24,  1983,
the   statewide  average  weekly  wage  used  in  determining
benefits, for any week beginning on or after April 24,  1983,
claimed  with respect to that benefit year, shall be $334.80,
except that, for  the  purpose  of  determining  the  minimum
weekly  benefit  amount under subsection B(1) for the benefit
period beginning January 1, 1987,  and  ending  December  31,
1987,  the  statewide  average weekly wage shall be $335; for
the benefit periods January  1,  1988  through  December  31,
1988,  January 1, 1989 through December 31, 1989, and January
1, 1990 through December  31,  1990,  the  statewide  average
weekly  wage  shall  be  $359,  $381, and $406, respectively.
Notwithstanding the preceding sentences  of  this  paragraph,
for  the  benefit period of calendar year 1991, the statewide
average weekly wage shall be $406 plus (or minus)  an  amount
equal  to  the  percentage  change  in  the statewide average
weekly wage, as computed in  accordance  with  the  preceding
sentences  of  this paragraph, between the benefit periods of
calendar years 1989 and 1990, multiplied by  $406;  and,  for
the  benefit  periods of calendar years 1992 through 2003 and
calendar year 2005 and each  calendar  year  thereafter,  the
statewide average weekly wage, shall be the statewide average
weekly  wage, as determined in accordance with this sentence,
for the immediately preceding benefit period plus (or  minus)
an  amount  equal  to  the percentage change in the statewide
average weekly wage,  as  computed  in  accordance  with  the
preceding   sentences   of  this  paragraph,  between  the  2
immediately preceding  benefit  periods,  multiplied  by  the
statewide  average  weekly  wage, as determined in accordance
with this sentence, for  the  immediately  preceding  benefit
period. For the benefit period of 2004, the statewide average
weekly  wage  shall  be $600.  Provided however, that for any
benefit period after December 31, 1990, if 2 of the following
3 factors occur, then the statewide average weekly wage shall
be the statewide  average  weekly  wage  in  effect  for  the
immediately   preceding   benefit  period:  (a)  the  average
contribution rate for all employers in  this  State  for  the
calendar year 2 years prior to the benefit period, as a ratio
of total contribution payments (including payments in lieu of
contributions)  to  total wages reported by employers in this
State for that same period is 0.2% greater than the  national
average  of  this  ratio,  the  foregoing to be determined in
accordance with rules promulgated by the  Director;  (b)  the
balance  in  this  State's  account in the unemployment trust
fund, as of March 31 of the prior calendar year, is less than
$250,000,000; or (c) the number of first payments of  initial
claims, as determined in accordance with rules promulgated by
the  Director,  for  the one year period ending on June 30 of
the prior year, has increased more than 25% over the  average
number  of such payments during the 5 year period ending that
same June 30; and provided further that if (a), (b)  and  (c)
occur,  then the statewide average weekly wage, as determined
in accordance with the preceding sentence, shall be 10%  less
than  it  would  have  been but for these provisions.  If the
reduced amount, computed in  accordance  with  the  preceding
sentence,  is  not already a multiple of one dollar, it shall
be rounded to the nearest dollar.  The 10% reduction  in  the
statewide average weekly wage in the preceding sentence shall
not  be  in  effect  for more than 2 benefit periods of any 5
consecutive benefit periods.  This 10% reduction shall not be
cumulative from year to year.  Neither  the  freeze  nor  the
reduction   shall  be  considered  in  the  determination  of
subsequent years' calculations of  statewide  average  weekly
wage. However, for purposes of the Workers' Compensation Act,
the statewide average weekly wage will be computed using June
1  and  December  1 determination dates of each calendar year
and such determination shall not be subject to the limitation
of $321, $335,  $350,  $359,  $381,  $406  or  the  statewide
average  weekly  wage  as  computed  in  accordance  with the
preceding sentence 7 sentences of this paragraph.
    With respect to any week beginning on or after April  24,
1983  and  before  January  3,  1988, "maximum weekly benefit
amount" means 48%  of  the  statewide  average  weekly  wage,
rounded  (if  not  already  a  multiple of one dollar) to the
nearest dollar, provided however,  that  the  maximum  weekly
benefit  amount  for  an  individual  who  has  established a
benefit year  beginning  before  April  24,  1983,  shall  be
determined,  for  weeks  beginning on or after April 24, 1983
claimed with respect to that benefit year, as provided  under
this  Act  as  amended  and  in  effect on November 30, 1982,
except that the statewide average weekly wage  used  in  such
determination shall be $334.80.
    With  respect to any week beginning after January 2, 1988
and before January 1, 1993, "maximum weekly  benefit  amount"
with  respect  to each week beginning within a benefit period
means 49% of the statewide average weekly wage,  rounded  (if
not  already  a  multiple  of  one dollar) to the next higher
dollar.
    With respect to any week beginning on or after January 3,
1993 and during a benefit year beginning  before  January  4,
2004,  "maximum  weekly  benefit amount" with respect to each
week beginning within a benefit period  means  49.5%  of  the
statewide  average  weekly  wage,  rounded  (if not already a
multiple of one dollar) to the next higher dollar.
    With respect to any benefit year beginning  on  or  after
January  4,  2004 and before January 6, 2008, "maximum weekly
benefit amount" with respect to each week beginning within  a
benefit  period  means  48%  of  the statewide average weekly
wage, rounded (if not already a multiple of  one  dollar)  to
the next higher dollar.
    With  respect  to  any benefit year beginning on or after
January 6, 2008, "maximum weekly benefit amount" with respect
to each week beginning within a benefit period means  47%  of
the  statewide average weekly wage, rounded (if not already a
multiple of one dollar) to the next higher dollar.
    C.  With respect to any week beginning on or after  April
24,  1983  and  before January 3, 1988, an individual to whom
benefits are payable with  respect  to  any  week  shall,  in
addition  to  such  benefits,  be  paid, with respect to such
week, as follows:  in  the  case  of  an  individual  with  a
nonworking  spouse,  7%  of  his  prior  average weekly wage,
rounded (if not already a multiple  of  one  dollar)  to  the
higher dollar; provided, that the total amount payable to the
individual with respect to a week shall not exceed 55% of the
statewide  average  weekly  wage,  rounded  (if not already a
multiple of one dollar) to the nearest  dollar;  and  in  the
case  of  an  individual  with a dependent child or dependent
children, 14.4% of his prior average weekly wage, rounded (if
not already a multiple of one dollar) to the  higher  dollar;
provided,  that  the  total  amount payable to the individual
with respect  to  a  week  shall  not  exceed  62.4%  of  the
statewide  average  weekly  wage,  rounded  (if not already a
multiple of one  dollar)  to  the  next  higher  dollar  with
respect  to  the benefit period beginning January 1, 1987 and
ending December  31,  1987,  and  otherwise  to  the  nearest
dollar.   However, for an individual with a nonworking spouse
or with a dependent child or children who has  established  a
benefit  year  beginning before April 24, 1983, the amount of
additional benefits payable  on  account  of  the  nonworking
spouse  or  dependent  child or children shall be determined,
for weeks beginning on or after April 24, 1983  claimed  with
respect  to  that benefit year, as provided under this Act as
in effect on November 30, 1982,  except  that  the  statewide
average  weekly  wage  used  in  such  determination shall be
$334.80.
    With respect to any week beginning on or after January 2,
1988 and before January 1, 1991 and any week beginning on  or
after  January  1,  1992,  and  before  January  1,  1993, an
individual to whom benefits are payable with respect  to  any
week  shall,  in  addition  to  those benefits, be paid, with
respect  to  such  week,  as  follows:  in  the  case  of  an
individual with a nonworking spouse, 8% of his prior  average
weekly  wage,  rounded  (if  not  already  a  multiple of one
dollar) to the next higher dollar, provided, that  the  total
amount  payable  to  the  individual  with respect to a  week
shall not exceed 57% of the statewide  average  weekly  wage,
rounded (if not already a multiple of one dollar) to the next
higher  dollar;  and  in  the  case  of  an individual with a
dependent child or  dependent  children,  15%  of  his  prior
average  weekly  wage,  rounded (if not already a multiple of
one dollar) to the next  higher  dollar,  provided  that  the
total amount payable to the individual with respect to a week
shall  not  exceed  64% of the statewide average weekly wage,
rounded (if not already a multiple of one dollar) to the next
higher dollar.
    With respect to any week beginning on or after January 1,
1991 and before  January  1,  1992,  an  individual  to  whom
benefits  are  payable  with  respect  to  any week shall, in
addition to the benefits, be paid, with respect to such week,
as follows: in the case of an individual  with  a  nonworking
spouse,  8.3%  of  his prior average weekly wage, rounded (if
not already a multiple of one  dollar)  to  the  next  higher
dollar,  provided,  that  the  total  amount  payable  to the
individual with respect to a week shall not exceed  57.3%  of
the  statewide average weekly wage, rounded (if not already a
multiple of one dollar) to the next higher dollar; and in the
case of an individual with a  dependent  child  or  dependent
children, 15.3% of his prior average weekly wage, rounded (if
not  already  a  multiple  of  one dollar) to the next higher
dollar,  provided  that  the  total  amount  payable  to  the
individual with respect to a week shall not exceed  64.3%  of
the  statewide average weekly wage, rounded (if not already a
multiple of one dollar) to the next higher dollar.
    With respect to any week beginning on or after January 3,
1993, during a benefit year beginning before January 4, 2004,
an individual to whom benefits are payable  with  respect  to
any  week shall, in addition to those benefits, be paid, with
respect  to  such  week,  as  follows:  in  the  case  of  an
individual with a nonworking spouse, 9% of his prior  average
weekly  wage,  rounded  (if  not  already  a  multiple of one
dollar) to the next higher dollar, provided, that  the  total
amount  payable  to  the  individual  with respect to a  week
shall not exceed 58.5% of the statewide average weekly  wage,
rounded (if not already a multiple of one dollar) to the next
higher  dollar;  and  in  the  case  of  an individual with a
dependent child or  dependent  children,  16%  of  his  prior
average  weekly  wage,  rounded (if not already a multiple of
one dollar) to the next  higher  dollar,  provided  that  the
total amount payable to the individual with respect to a week
shall  not exceed 65.5% of the statewide average weekly wage,
rounded (if not already a multiple of one dollar) to the next
higher dollar.
    With respect to any benefit year beginning  on  or  after
January  4, 2004 and before January 6, 2008, an individual to
whom benefits are payable with respect to any week shall,  in
addition  to  those  benefits,  be paid, with respect to such
week, as follows:  in  the  case  of  an  individual  with  a
nonworking  spouse,  9%  of  his  or her prior average weekly
wage, rounded (if not already a multiple of  one  dollar)  to
the  next  higher  dollar,  provided,  that  the total amount
payable to the individual with respect to a  week  shall  not
exceed  57% of the statewide average weekly wage, rounded (if
not already a multiple of one  dollar)  to  the  next  higher
dollar;  and  in  the  case of an individual with a dependent
child or dependent  children,  17.2%  of  his  or  her  prior
average  weekly  wage,  rounded (if not already a multiple of
one dollar) to the next  higher  dollar,  provided  that  the
total amount payable to the individual with respect to a week
shall  not exceed 65.2% of the statewide average weekly wage,
rounded (if not already a multiple of one dollar) to the next
higher dollar.
    With respect to any benefit year beginning  on  or  after
January  6,  2008, an individual to whom benefits are payable
with  respect  to  any  week  shall,  in  addition  to  those
benefits, be paid, with respect to such week, as follows:  in
the case of an individual with a nonworking spouse, 9% of his
or  her  prior average weekly wage, rounded (if not already a
multiple of one dollar) to the next higher dollar,  provided,
that  the total amount payable to the individual with respect
to a week shall not  exceed  56%  of  the  statewide  average
weekly  wage,  rounded  (if  not  already  a  multiple of one
dollar) to the next higher dollar; and with  respect  to  any
benefit year beginning before January 1, 2010, in the case of
an  individual  with a dependent child or dependent children,
18.2% of his or her prior average weekly  wage,  rounded  (if
not  already  a  multiple  of  one dollar) to the next higher
dollar,  provided  that  the  total  amount  payable  to  the
individual with respect to a week shall not exceed  65.2%  of
the  statewide average weekly wage, rounded (if not already a
multiple of one  dollar)  to  the  next  higher  dollar.  The
additional  amount  paid  pursuant  to this subsection in the
case of an individual with a  dependent  child  or  dependent
children  shall  be  referred  to  as  the  "dependent  child
allowance".  With respect to each benefit year beginning in a
calendar year after calendar year 2009, the  percentage  rate
used  to calculate the dependent child allowance shall be the
sum  of  the  allowance  adjustment  applicable  pursuant  to
Section 1400.1 to the calendar year in which the benefit year
begins, plus  the  percentage  rate  used  to  calculate  the
dependent  child  allowance with respect to each benefit year
beginning  in  the  immediately  preceding   calendar   year,
provided that the total amount payable to the individual with
respect  to  a  week beginning in such benefit year shall not
exceed the product of  the  statewide  average  weekly  wage,
rounded (if not already a multiple of one dollar) to the next
higher  dollar  and  the  sum of 47% plus the percentage rate
used to calculate the individual's dependent child allowance.
Notwithstanding any provision to the contrary, the percentage
rate used to calculate the  dependent  child  allowance  with
respect  to any benefit year beginning on or after January 1,
2010, shall not be less than 17.3% or greater than 18.2%.
    For the purposes of this subsection:
    "Dependent" means a child or a nonworking spouse.
    "Child" means a  natural  child,  stepchild,  or  adopted
child  of an individual claiming benefits under this Act or a
child who is in the custody of any such individual  by  court
order, for whom the individual is supplying and, for at least
90  consecutive  days  (or  for  the duration of the parental
relationship if  it  has  existed  for  less  than  90  days)
immediately  preceding  any  week  with  respect to which the
individual has filed a claim, has supplied more than one-half
the cost of support, or has supplied at least 1/4 of the cost
of support if the individual and the other parent,  together,
are supplying and, during the aforesaid period, have supplied
more  than  one-half  the  cost of support, and are, and were
during the aforesaid period, members of the  same  household;
and  who, on the first day of such week (a) is under 18 years
of age, or (b)  is,  and  has  been  during  the  immediately
preceding 90 days, unable to work because of illness or other
disability:  provided, that no person who has been determined
to be a child of an individual who has been allowed  benefits
with respect to a week in the individual's benefit year shall
be  deemed  to  be  a child of the other parent, and no other
person shall be determined  to  be  a  child  of  such  other
parent, during the remainder of that benefit year.
    "Nonworking  spouse"  means the lawful husband or wife of
an individual claiming benefits under this Act, for whom more
than one-half the cost of support has been  supplied  by  the
individual  for  at  least  90  consecutive  days (or for the
duration of the marital relationship if it  has  existed  for
less  than  90  days)  immediately  preceding  any  week with
respect to which the individual has filed a claim,  but  only
if  the  nonworking spouse is currently ineligible to receive
benefits under this  Act  by  reason  of  the  provisions  of
Section 500E.
    An individual who was obligated by law to provide for the
support  of  a  child  or  of  a  nonworking  spouse  for the
aforesaid period of 90 consecutive days, but was prevented by
illness or injury from doing so,  shall  be  deemed  to  have
provided  more than one-half the cost of supporting the child
or nonworking spouse for that period.
(Source: P.A. 90-554, eff. 12-12-97; 91-342, eff. 7-29-99.)

    (820 ILCS 405/601) (from Ch. 48, par. 431)
    Sec. 601. Voluntary leaving.  A. An individual  shall  be
ineligible  for  benefits  for  the week in which he has left
work voluntarily  without  good  cause  attributable  to  the
employing   unit   and,   thereafter,  until  he  has  become
reemployed and has had earnings equal to or in excess of  his
current  weekly benefit amount in each of four calendar weeks
which are either for services in employment, or have been  or
will  be  reported  pursuant to the provisions of the Federal
Insurance Contributions Act by each employing unit for  which
such  services  are  performed  and which submits a statement
certifying to that fact.
    B.  The provisions of this Section shall not apply to  an
individual who has left work voluntarily:
    1.  Because he is deemed physically unable to perform his
work by a licensed and practicing physician, or has left work
voluntarily  upon  the  advice  of  a licensed and practicing
physician that assistance is necessary  for  the  purpose  of
caring  for  his  spouse,  child,  or  parent  who is in poor
physical health and such assistance will  not  allow  him  to
perform the usual and customary duties of his employment, and
he  has  notified  the  employing unit of the reasons for his
absence;
    2.  To accept  other  bona  fide  work  and,  after  such
acceptance,  the  individual is either not unemployed in each
of 2 weeks, or earns remuneration for such work equal  to  at
least twice his current weekly benefit amount;
    3.  In lieu of accepting a transfer to other work offered
to  the individual by the employing unit under the terms of a
collective bargaining agreement or pursuant to an established
employer plan, program, or policy, if the acceptance of  such
other  work  by  the  individual would require the separation
from that work of another individual currently performing it;
    4.  Solely  because  of  the  sexual  harassment  of  the
individual by another employee.  Sexual harassment means  (1)
unwelcome   sexual  advances,  requests  for  sexual  favors,
sexually motivated  physical  contact  or  other  conduct  or
communication  which  is  made  a  term  or  condition of the
employment or (2) the employee's submission to  or  rejection
of  such  conduct  or  communication  which  is the basis for
decisions affecting employment, or (3) when such  conduct  or
communication  has  the  purpose  or  effect of substantially
interfering with an individual's work performance or creating
an intimidating, hostile, or  offensive  working  environment
and the employer knows or should know of the existence of the
harassment and fails to take timely and appropriate action;
    5.  Which  he  had  accepted  after separation from other
work, and the work which he left voluntarily would be  deemed
unsuitable under the provisions of Section 603;.
    6.  (a) Because   the   individual   left   work  due  to
circumstances resulting from the individual being a victim of
domestic violence as defined in Section 103 of  the  Illinois
Domestic  Violence Act of 1986; and provided, such individual
has made reasonable efforts to preserve the employment.
    For the purposes of  this  paragraph  6,  the  individual
shall  be  treated  as being a victim of domestic violence if
the individual provides the following:
         (i)  written notice to the  employing  unit  of  the
    reason for the individual's voluntarily leaving; and
         (ii)  to the Department provides:
              (A)  an    order   of   protection   or   other
         documentation of equitable relief issued by a  court
         of competent jurisdiction; or
              (B)  a   police   report  or  criminal  charges
         documenting the domestic violence; or
              (C)  medical  documentation  of  the   domestic
         violence; or
              (D)  evidence   of  domestic  violence  from  a
         counselor, social worker, health worker or  domestic
         violence shelter worker.
    (b)  If  the  individual  does not meet the provisions of
subparagraph (a),  the  individual  shall  be  held  to  have
voluntarily   terminated   employment   for  the  purpose  of
determining  the  individual's   eligibility   for   benefits
pursuant to subsection A.
    (c)  Notwithstanding any other provision to the contrary,
evidence  of  domestic violence experienced by an individual,
including  the  individual's  statement   and   corroborating
evidence,  shall  not  be  disclosed by the Department unless
consent for disclosure is given by the individual.
(Source: P.A. 83-197.)

    (820 ILCS 405/1400.1 new)
    Sec.  1400.1.  Solvency  Adjustments.  As  used  in  this
Section, "prior year's trust  fund  balance"  means  the  net
amount  standing to the credit of this State's account in the
unemployment trust fund (less  all  outstanding  advances  to
that  account, including but not limited to advances pursuant
to Title XII of the federal Social Security Act) as  of  June
30 of the immediately preceding calendar year.
    The  wage base adjustment, rate adjustment, and allowance
adjustment applicable to any  calendar  year  after  calendar
year 2009 shall be as follows:
    If  the  prior  year's  trust  fund  balance is less than
$300,000,000, the wage base adjustment  shall  be  $220,  the
rate  adjustment shall be 0.05%, and the allowance adjustment
shall be -0.3% absolute.
    If the prior year's trust fund balance  is  equal  to  or
greater  than  $300,000,000  but  less than $700,000,000, the
wage base adjustment shall be $150, the rate adjustment shall
be 0.025%,  and  the  allowance  adjustment  shall  be  -0.2%
absolute.
    If  the  prior  year's  trust fund balance is equal to or
greater than $700,000,000 but less than  $1,000,000,000,  the
wage  base adjustment shall be $75, the rate adjustment shall
be 0, and the allowance adjustment shall be -0.1% absolute.
    If the prior year's trust fund balance  is  equal  to  or
greater than $1,000,000,000 but less than $1,300,000,000, the
wage base adjustment shall be -$75, the rate adjustment shall
be 0, and the allowance adjustment shall be 0.1% absolute.
    If  the  prior  year's  trust fund balance is equal to or
greater than $1,300,000,000 but less than $1,700,000,000, the
wage base adjustment shall  be  -$150,  the  rate  adjustment
shall  be -0.025%, and the allowance adjustment shall be 0.2%
absolute.
    If the prior year's trust fund balance  is  equal  to  or
greater  than  $1,700,000,000, the wage base adjustment shall
be -$220, the  rate  adjustment  shall  be  -0.05%,  and  the
allowance adjustment shall be 0.3% absolute.

    (820 ILCS 405/1401) (from Ch. 48, par. 551)
    Sec.  1401.  Interest. Any employer who shall fail to pay
any contributions (including  any  amounts  due  pursuant  to
Section 1506.3 or Section 1506.4) when required of him by the
provisions  of  this Act and the rules and regulations of the
Director,  whether  or  not  the  amount  thereof  has   been
determined  and  assessed  by  the Director, shall pay to the
Director, in addition to such contribution, interest  thereon
at  the  rate of one percent (1%) per month and one-thirtieth
(1/30) of one percent (1%) for each day or  fraction  thereof
computed  from  the  day  upon which said contribution became
due. After 1981, such interest shall accrue at the rate of 2%
per month, computed at the rate of 12/365 of 2% for each  day
or  fraction  thereof,  upon  any  unpaid contributions which
become due, provided that, after 1987, for the   purposes  of
calculating  interest  due  under this Section only, payments
received more than 30 days after  such  contributions  become
due  shall  be  deemed  received on the last day of the month
preceding the month in which they were received except  that,
if  the last day of such preceding month is less than 30 days
after the date that such contributions became due, then  such
payments  shall  be  deemed to have been received on the 30th
day after the date such contributions became due.
    However, all or part of any interest may be waived by the
Director for good cause shown.
(Source: P.A. 85-956; 86-1367.)

    (820 ILCS 405/1502.1) (from Ch. 48, par. 572.1)
    Sec. 1502.1.  Employer's benefit charges.
    A.  Benefit charges which result  from  payments  to  any
claimant made on or after July 1, 1989 shall be charged:
         1.  For  benefit  years  beginning  prior to July 1,
    1989, to each employer who paid  wages  to  the  claimant
    during his base period;
         2.  For  benefit years beginning on or after July 1,
    1989 but before January 1, 1993, to the later of:
              a.  the last employer prior to the beginning of
         the claimant's benefit year:
                   i.  from whom the claimant  was  separated
              or  who,  by  reduction of work offered, caused
              the claimant to become unemployed as defined in
              Section 239, and,
                   ii.  for  whom  the   claimant   performed
              services  in  employment,  on  each  of 30 days
              whether  or  not  such  days  are  consecutive,
              provided that the wages for such services  were
              earned  during the period from the beginning of
              the claimant's base period to the beginning  of
              the  claimant's benefit year; but that employer
              shall not be charged if:
                        (1)  the claimant's  last  separation
                   from that employer was a voluntary leaving
                   without good cause, as the term is used in
                   Section  601A  or  under the circumstances
                   described in paragraphs 1 and 2 of Section
                   601B; or
                        (2)  the claimant's  last  separation
                   from  that  employer  was  a discharge for
                   misconduct or a felony or theft  connected
                   with his work from that employer, as these
                   terms are used in Section 602; or
                        (3)  after  his  last separation from
                   that employer, prior to the  beginning  of
                   his  benefit year, the claimant refused to
                   accept  an  offer  of  or  to  apply   for
                   suitable  work  from that employer without
                   good cause, as these  terms  are  used  in
                   Section 603; or
                        (4)  the claimant, following his last
                   separation  from  that  employer, prior to
                   the beginning  of  his  benefit  year,  is
                   ineligible  or  would have been ineligible
                   under Section 612 if he  has  or  had  had
                   base  period  wages  from the employers to
                   which that Section applies; or
                        (5)  the    claimant     subsequently
                   performed  services  for  at least 30 days
                   for an  individual or  organization  which
                   is not an employer subject to this Act; or
              b.  the  single  employer who pays wages to the
         claimant that allow him to  requalify  for  benefits
         after  disqualification  under  Section  601, 602 or
         603, if:
                   i.  the disqualifying event occurred prior
              to the  beginning  of  the  claimant's  benefit
              year, and
                   ii.  the  requalification  occurred  after
              the  beginning  of the claimant's benefit year,
              and
                   iii.  even if the 30 day requirement given
              in this paragraph is not satisfied; but
                   iv.  the requalifying employer  shall  not
              be  charged  if the claimant is held ineligible
              with  respect  to  that  requalifying  employer
              under Section 601, 602 or 603.
         3.  For benefit years beginning on or after  January
    1, 1993, with respect to each week for which benefits are
    paid, to the later of:
              a.  the last employer:
                   i.  from  whom  the claimant was separated
              or who, by reduction of  work  offered,  caused
              the claimant to become unemployed as defined in
              Section 239, and
                   ii.  for   whom   the  claimant  performed
              services in employment,  on  each  of  30  days
              whether  or  not  such  days  are  consecutive,
              provided  that the wages for such services were
              earned since the beginning  of  the  claimant's
              base  period;  but  that  employer shall not be
              charged if:
                        (1)  the claimant's  separation  from
                   that  employer  was  a  voluntary  leaving
                   without good cause, as the term is used in
                   Section  601A  or  under the circumstances
                   described in paragraphs 1, and 2, and 6 of
                   Section 601B; or
                        (2)  the claimant's  separation  from
                   that   employer   was   a   discharge  for
                   misconduct or a felony or theft  connected
                   with his work from that employer, as these
                   terms are used in Section 602; or
                        (3)  the  claimant  refused to accept
                   an offer of or to apply for suitable  work
                   from  that employer without good cause, as
                   these terms are used in Section  603  (but
                   only  for  weeks  following the refusal of
                   work); or
                        (4)  the    claimant     subsequently
                   performed  services  for  at least 30 days
                   for an individual or organization which is
                   not an employer subject to this Act; or
                        (5)  the  claimant,   following   his
                   separation    from   that   employer,   is
                   ineligible or would have  been  ineligible
                   under  Section  612  if  he has or had had
                   base period wages from  the  employers  to
                   which  that  Section applies (but only for
                   the period of ineligibility  or  potential
                   ineligibility); or
              b.  the  single  employer who pays wages to the
         claimant that allow him to  requalify  for  benefits
         after  disqualification  under  Section 601, 602, or
         603, even if the 30 day requirement  given  in  this
         paragraph  is  not  satisfied;  but the requalifying
         employer shall not be charged  if  the  claimant  is
         held  ineligible  with  respect to that requalifying
         employer under Section 601, 602, or 603.
    B.  Whenever a claimant is ineligible pursuant to Section
614 on the basis of wages paid during his  base  period,  any
days  on which such wages were earned shall not be counted in
determining whether that claimant performed  services  during
at  least  30  days  for the employer that paid such wages as
required by paragraphs 2 and 3 of subsection A.
    C.  If no employer meets the requirements of paragraph  2
or 3 of subsection A, then no employer will be chargeable for
any benefit charges which result from the payment of benefits
to the claimant for that benefit year.
    D.  Notwithstanding  the  preceding  provisions  of  this
Section,  no  employer  shall  be  chargeable for any benefit
charges which result from the  payment  of  benefits  to  any
claimant  after  the effective date of this amendatory Act of
1992 where  the  claimant's  separation  from  that  employer
occurred  as  a  result  of  his detention, incarceration, or
imprisonment under State, local, or federal law.
    E.  For the purposes of Sections  302,  409,  701,  1403,
1404, 1405 and 1508.1, last employer means the employer that:
         1.  is  charged  for  benefit  payments which become
    benefit charges under this Section, or
         2.  would have been liable for such benefit  charges
    if  it  had  not  elected  to  make  payments  in lieu of
    contributions.
(Source: P.A. 86-3; 87-1178.)

    (820 ILCS 405/1505) (from Ch. 48, par. 575)
    Sec. 1505.  Adjustment of state  experience  factor.  The
state  experience factor shall be adjusted in accordance with
the following provisions:
    A.  This subsection shall apply  to  each  calendar  year
prior  to  1980  for which a state experience factor is being
determined.
    For every $7,000,000 (or fraction thereof) by  which  the
amount  standing to the credit of this State's account in the
unemployment trust fund as of June 30 of  the  calendar  year
immediately  preceding  the calendar year for which the state
experience   factor   is   being   determined   falls   below
$450,000,000, the state experience factor for the  succeeding
calendar year shall be increased 1 percent absolute.
    For  every  $7,000,000 (or fraction thereof) by which the
amount standing to the credit of this State's account in  the
unemployment  trust  fund  as of June 30 of the calendar year
immediately preceding the calendar year for which  the  state
experience  factor  is being determined exceeds $450,000,000,
the state experience factor for the succeeding year shall  be
reduced 1 percent absolute.
    B.  This  subsection  shall  apply  to the calendar years
1980 through 1987, for which the state experience  factor  is
being determined.
    For  every $12,000,000 (or fraction thereof) by which the
amount standing to the credit of this State's account in  the
unemployment  trust  fund  as of June 30 of the calendar year
immediately preceding the calendar year for which  the  state
experience   factor   is   being   determined   falls   below
$750,000,000,  the state experience factor for the succeeding
calendar year shall be increased 1 percent absolute.
    For every $12,000,000 (or fraction thereof) by which  the
amount  standing to the credit of this State's account in the
unemployment trust fund as of June 30 of  the  calendar  year
immediately  preceding  the calendar year for which the state
experience factor is being determined  exceeds  $750,000,000,
the  state experience factor for the succeeding year shall be
reduced 1 percent absolute.
    C.  This subsection shall apply to the calendar year 1988
and each  calendar  year  thereafter,  for  which  the  state
experience factor is being determined.
         1.  For  every  $50,000,000 (or fraction thereof) by
    which the adjusted trust fund  balance  falls  below  the
    target balance set forth in this subsection $750,000,000,
    the state experience factor for the succeeding year shall
    be increased one percent absolute.
         For every $50,000,000 (or fraction thereof) by which
    the  adjusted  trust  fund  balance  exceeds  the  target
    balance  set  forth  in this subsection $750,000,000, the
    state experience factor for the succeeding year shall  be
    decreased by one percent absolute.
         The  target  balance  in each calendar year prior to
    2003 is $750,000,000. The target balance in calendar year
    2003 is $920,000,000. The target balance in calendar year
    2004 is $960,000,000. The target balance in calendar year
    2005 and each calendar year thereafter is $1,000,000,000.
         2.  For the purposes of this subsection:
         "Net trust fund balance" is the amount  standing  to
    the  credit  of  this State's account in the unemployment
    trust fund as of June 30 of the calendar year immediately
    preceding the year for which a state experience factor is
    being determined.
         "Adjusted trust fund balance" is the net trust  fund
    balance  minus  the  sum of the benefit reserves for fund
    building for July 1, 1987 through June  30  of  the  year
    prior  to  the year for which the state experience factor
    is being determined.  The  adjusted  trust  fund  balance
    shall   not   be   less  than  zero.   If  the  preceding
    calculation results in a number which is less than  zero,
    the amount by which it is less than zero shall reduce the
    sum  of  the  benefit  reserves  for  fund  building  for
    subsequent years.
         For  the purpose of determining the state experience
    factor for 1989 and for each  calendar  year  thereafter,
    the  following "benefit reserves for fund building" shall
    apply for each state  experience  factor  calculation  in
    which that 12 month period is applicable:
              a.  For  the 12 month period ending on June 30,
         1988, the "benefit reserve for fund building"  shall
         be  8/104th  of the total benefits paid from January
         1, 1988 through June 30, 1988.
              b.  For the 12 month period ending on June  30,
         1989,  the "benefit reserve for fund building" shall
         be the sum of:
                   i.  8/104ths of the  total  benefits  paid
              from  July  1,  1988 through December 31, 1988,
              plus
                   ii.  4/108ths of the total  benefits  paid
              from January 1, 1989 through June 30, 1989.
              c.  For  the 12 month period ending on June 30,
         1990, the "benefit reserve for fund building"  shall
         be  4/108ths of the total benefits paid from July 1,
         1989 through December 31, 1989.
              d.  For  1992  and  for  each   calendar   year
         thereafter,  the "benefit reserve for fund building"
         for the 12 month period ending on June 30, 1991  and
         for each subsequent 12 month period shall be zero.
         3.  Notwithstanding the preceding provisions of this
    subsection,  for  calendar  years  1988 through 2003, the
    state  experience  factor  shall  not  be  increased   or
    decreased by more than 15 percent absolute.
    D.  Notwithstanding  the  provisions of subsection C, the
adjusted state experience factor:
         1.  Shall be 111 percent for calendar year 1988;
         2.  Shall not be less than 75  percent  nor  greater
    than  135  percent  for  calendar years year 1989 through
    2003; and shall not be less than  75%  nor  greater  than
    150%  for  calendar  year  2004  and  each  calendar year
    thereafter;
         3.  Shall not be decreased by more  than  5  percent
    absolute  for  any  calendar  year, beginning in calendar
    year 1989 and through calendar year 1992, by more than 6%
    absolute for calendar years 1993  through  1995,  and  by
    more  than  10%  absolute  for  calendar  years year 1999
    through 2003 and by more than 12% absolute  for  calendar
    year  2004  and  each  calendar year thereafter, from the
    adjusted state experience factor  of  the  calendar  year
    preceding  the calendar year for which the adjusted state
    experience factor is being determined;
         4.  Shall not be increased by more than 15% absolute
    for calendar year 1993, by more  than  14%  absolute  for
    calendar  years  1994  and  1995,  and  by  more than 10%
    absolute for calendar years year 1999 through 2003 and by
    more than 16% absolute for calendar year  2004  and  each
    calendar   year   thereafter,  from  the  adjusted  state
    experience factor for the  calendar  year  preceding  the
    calendar  year  for  which  the adjusted state experience
    factor is being determined;
         5.  Shall be 100% for calendar years 1996, 1997, and
    1998.
    E.  The amount standing to the  credit  of  this  State's
account in the unemployment trust fund as of June 30 shall be
deemed  to  include as part thereof (a) any amount receivable
on that date from any Federal governmental agency,  or  as  a
payment  in  lieu  of  contributions  under the provisions of
Sections 1403 and 1405 B and paragraph 2 of Section 302C,  in
reimbursement  of  benefits  paid  to  individuals,  and  (b)
amounts  credited  by  the  Secretary  of the Treasury of the
United States to this State's  account  in  the  unemployment
trust  fund  pursuant  to  Section  903 of the Federal Social
Security Act, as amended, including any  such  amounts  which
have  been appropriated by the General Assembly in accordance
with the  provisions  of  Section  2100  B  for  expenses  of
administration,  except any amounts which have been obligated
on or before that date pursuant to such appropriation.
(Source: P.A. 89-446, eff. 2-8-96.)
    (820 ILCS 405/1506.3) (from Ch. 48, par. 576.3)
    Sec.   1506.3.    Fund   building   rates   -   Temporary
Administrative Funding.
    A.  Notwithstanding any other provision of this Act,  the
following  fund  building  rates  shall  be in effect for the
following calendar years:
    For each employer whose contribution rate for 1988, 1989,
1990, the first, third, and fourth quarters  of  1991,  1992,
1993, 1994, 1995, and 1997 through 2003 and any calendar year
thereafter  would, in the absence of this Section, be 0.2% or
higher, a contribution rate which is the sum of such rate and
a fund building rate of 0.4%;
    For each employer whose contribution rate for the  second
quarter  of  1991  would,  in the absence of this Section, be
0.2% or higher, a contribution rate which is the sum of  such
rate and 0.3%;
    For each employer whose contribution rate for 1996 would,
in  the  absence  of  this  Section,  be  0.1%  or  higher, a
contribution rate which is the sum of such rate and 0.4%;
    For  each  employer  whose  contribution  rate  for  2004
through 2009 would, in the absence of this Section,  be  0.2%
or  higher, a contribution rate which is the sum of such rate
and the following: a fund building rate of 0.7% for  2004;  a
fund  building rate of 0.9% for 2005; a fund building rate of
0.8% for 2006 and 2007; a fund  building  rate  of  0.6%  for
2008; a fund building rate of 0.4% for 2009.
    For  each  employer  whose contribution rate for 2010 and
any calendar year thereafter would, in the  absence  of  this
Section,  be 0.2% or higher, a contribution rate which is the
sum of such rate and a fund building rate equal to the sum of
the rate adjustment  applicable  to  that  year  pursuant  to
Section  1400.1,  plus  the  fund  building  rate  in  effect
pursuant  to  this  Section  for  the  immediately  preceding
calendar year. Notwithstanding any provision to the contrary,
the  fund building rate in effect for any calendar year after
calendar year 2009 shall not be less  than  0.4%  or  greater
than 0.55%.
    Notwithstanding  the preceding paragraphs of this Section
or any other provision of this Act, except for the provisions
contained in Section 1500 pertaining to rates  applicable  to
employers  classified  under the Standard Industrial Code, or
another classification system sanctioned by the United States
Department of Labor and prescribed by the Director  by  rule,
no  employer  whose  total wages for insured work paid by him
during any calendar quarter in 1988  and  any  calendar  year
thereafter are less than $50,000 shall pay contributions at a
rate   with   respect  to  such  quarter  which  exceeds  the
following: with respect  to  calendar  year  1988,  5%;  with
respect to 1989 and any calendar year thereafter, 5.4%.
    Notwithstanding  the preceding paragraph of this Section,
or  any  other  provision  of   this   Act,   no   employer's
contribution rate with respect to calendar years 1993 through
1995  shall  exceed 5.4% if the employer ceased operations at
an Illinois  manufacturing  facility  in  1991  and  remained
closed  at that facility during all of 1992, and the employer
in 1993 commits to invest at least $5,000,000 for the purpose
of resuming operations at that  facility,  and  the  employer
rehires  during 1993 at least 250 of the individuals employed
by it at that facility during the one year  period  prior  to
the  cessation  of  its  operations, provided that, within 30
days after the effective date of this amendatory Act of 1993,
the employer makes application to the Department to have  the
provisions  of  this  paragraph apply to it.  The immediately
preceding sentence shall be null and void with respect to  an
employer  which  by  December  31, 1993 has not satisfied the
rehiring requirement specified by this paragraph or which  by
December  31,  1994  has not made the investment specified by
this  paragraph.   All  payments  attributable  to  the  fund
building rate  established  pursuant  to  this  Section  with
respect  to  the  fourth  quarter  of calendar year 2003, the
first quarter of calendar year 2004 and any calendar  quarter
thereafter  as  of  the  close of which there are either bond
obligations outstanding pursuant to the Illinois Unemployment
Insurance Trust  Fund  Financing  Act,  or  bond  obligations
anticipated  to  be outstanding as of either or both of the 2
immediately succeeding calendar quarters, shall  be  directed
for deposit into the Master Bond Fund.
    B.  Notwithstanding  any other provision of this Act, for
the second quarter of 1991, the  contribution  rate  of  each
employer  as  determined  in  accordance  with Sections 1500,
1506.1, and subsection A of this Section shall  be  equal  to
the  sum of such rate and 0.1%; provided that this subsection
shall not apply to any employer  whose  rate  computed  under
Section  1506.1  for  such  quarter is between 5.1% and 5.3%,
inclusive, and  who  qualifies  for  the  5.4%  rate  ceiling
imposed  by  the  last  paragraph  of  subsection  A for such
quarter.  All payments made pursuant to this subsection shall
be deposited in the Employment Security  Administrative  Fund
established   under   Section   2103.1   and   used  for  the
administration of this Act.
    C.  Payments  received  by   the   Director   which   are
insufficient to pay the total contributions due under the Act
shall  be first applied to satisfy the amount due pursuant to
subsection B.
    C-1.  Payments received by the Director with  respect  to
the  fourth  quarter of calendar year 2003, the first quarter
of calendar year 2004 and any calendar quarter thereafter  as
of  the  close  of  which  there  are either bond obligations
outstanding pursuant to the Illinois  Unemployment  Insurance
Trust  Fund Financing Act, or bond obligations anticipated to
be outstanding as of either or  both  of  the  2  immediately
succeeding  calendar  quarters, shall, to the extent they are
insufficient to pay the total amount due under the  Act  with
respect  to  the  quarter,  be  first  applied to satisfy the
amount due with respect to that quarter and  attributable  to
the  fund building rate established pursuant to this Section.
Notwithstanding any other provision  to  the  contrary,  with
respect  to  an employer whose contribution rate with respect
to a quarter subject to this subsection would  have  exceeded
5.4%  but  for  the  5.4%  rate  ceiling  imposed pursuant to
subsection A, the amount due from the employer  with  respect
to  that  quarter  and attributable to the fund building rate
established pursuant to subsection A shall equal the  amount,
if  any, by which the amount due and attributable to the 5.4%
rate  exceeds  the  amount  that  would  have  been  due  and
attributable to the employer's rate  determined  pursuant  to
Sections 1500 and 1506.1, without regard to the fund building
rate established pursuant to subsection A.
    D.  All   provisions   of  this  Act  applicable  to  the
collection or refund of any contribution due under  this  Act
shall  be  applicable  to the collection or refund of amounts
due pursuant to subsection B and amounts directed pursuant to
this Section for deposit into the Master  Bond  Fund  to  the
extent   they   would   not   otherwise   be   considered  as
contributions.
(Source: P.A. 91-342, eff. 1-1-00.)

    (820 ILCS 405/1507) (from Ch. 48, par. 577)
    Sec.  1507.   Contribution   rates   of   successor   and
predecessor employing units.
    A.  Whenever any employing unit succeeds to substantially
all  of  the employing enterprises of another employing unit,
then in determining contribution rates for any calendar year,
the experience rating record of the predecessor prior to  the
succession   shall   be  transferred  to  the  successor  and
thereafter it shall not be treated as the  experience  rating
record  of  the predecessor, except as provided in subsection
B. For the purposes of this Section, such  experience  rating
record  shall consist of all years during which liability for
the payment of contributions was incurred by the  predecessor
prior  to  the succession, all benefit wages based upon wages
paid by the predecessor prior to the succession, all  benefit
charges  based  on  separations  from,  or reductions in work
initiated by, benefits paid by the predecessor prior  to  the
succession,  and  all  wages  for  insured  work  paid by the
predecessor prior to the succession.  This amendatory Act  of
the 93rd General Assembly is intended to be a continuation of
prior law.
    B.  The provisions of this subsection shall be applicable
only  to  the  determination  of  contribution  rates for the
calendar year 1956 and for  each  calendar  year  thereafter.
Whenever  any  employing  unit has succeeded to substantially
all of the employing enterprises of another  employing  unit,
but  the  predecessor  employing unit has retained a distinct
severable portion of its employing  enterprises  or  whenever
any  employing  unit  has  succeeded  to a distinct severable
portion which is less than substantially all of the employing
enterprises  of  another  employing   unit,   the   successor
employing  unit  shall  acquire  the experience rating record
attributable to the portion to which it  has  succeeded,  and
the  predecessor  employing  unit shall retain the experience
rating record  attributable  to  the  portion  which  it  has
retained, if--
         1.  It   files   a   written  application  for  such
    experience rating  record  which  is  joined  in  by  the
    employing  unit which is then entitled to such experience
    rating record; and
         2.  The joint application contains such  information
    as  the Director shall by regulation prescribe which will
    show that such experience rating record  is  identifiable
    and   segregable   and,   therefore,   capable  of  being
    transferred; and
         3.  The  joint  application  is   filed   prior   to
    whichever  of the following dates is the latest: (a) July
    1, 1956; (b) one year after the date of  the  succession;
    or  (c)  the  date  that  the  rate  determination of the
    employing unit which  has  applied  for  such  experience
    rating  record  has  become  final  for the calendar year
    immediately following the  calendar  year  in  which  the
    succession   occurs.   The   filing  of  a  timely  joint
    application shall not affect any rate determination which
    has become final, as provided by Section 1509.
    If all of the foregoing requirements are  met,  then  the
Director  shall transfer such experience rating record to the
employing unit which has applied therefor, and it  shall  not
be  treated  as the experience rating record of the employing
unit which has joined in the application.
    Whenever any employing unit is reorganized  into  two  or
more  employing  units,  and  any of such employing units are
owned or controlled by the  same  interests  which  owned  or
controlled  the  predecessor prior to the reorganization, and
the provisions of this subsection become applicable  thereto,
then  such  affiliated  employing  units during the period of
their affiliation shall be treated as a single employing unit
for the purpose of determining their rates of contributions.
    C.  For the calendar year in which  a  succession  occurs
which   results  in  the  total  or  partial  transfer  of  a
predecessor's  experience  rating  record,  the  contribution
rates of the parties  thereto  shall  be  determined  in  the
following manner:
         1.  If  any  of such parties had a contribution rate
    applicable  to  it  for  that  calendar  year,  it  shall
    continue with such contribution rate.
         2.  If  any  successor  had  no  contribution   rate
    applicable  to  it  for  that calendar year, and only one
    predecessor is involved, then the  contribution  rate  of
    the   successor   shall  be  the  same  as  that  of  its
    predecessor.
         3.  If  any  successor  had  no  contribution   rate
    applicable  to it for that calendar year, and two or more
    predecessors are involved, then the contribution rate  of
    the   successor   shall  be  computed,  on  the  combined
    experience rating records of the predecessors or  on  the
    appropriate  part of such records if any partial transfer
    is involved,  as  provided  in  Sections  1500  to  1507,
    inclusive.
         4.  Notwithstanding  the  provisions of paragraphs 2
    and 3 of this subsection, if any succession occurs  prior
    to the calendar year 1956 and the successor acquires part
    of  the  experience  rating  record of the predecessor as
    provided in  subsection  B  of  this  Section,  then  the
    contribution rate of that successor for the calendar year
    in which such succession occurs shall be 2.7 percent.
(Source: P.A. 90-554, eff. 12-12-97; 91-342, eff. 1-1-00.)

    (820 ILCS 405/1511.1 new)
    Sec.  1511.1.  Effects  of 2004 Solvency Legislation. The
Employment Security Advisory Board shall hold public hearings
on the  progress  toward  meeting  the  Trust  Fund  solvency
projections  made  in  accordance with this amendatory Act of
the 93d General Assembly. The hearings  shall  also  consider
issues   related  to  benefit  eligibility,  benefit  levels,
employer contributions, and future trust fund solvency goals.
The  Board  shall,   in   accordance   with   its   operating
resolutions, approve and report findings from the hearings to
the Illinois General Assembly by April 1, 2007. A copy of the
findings shall be available to the public on the Department's
website.
    (820 ILCS 405/2100) (from Ch. 48, par. 660)
    Sec. 2100.  Handling of funds - Bond - Accounts.
    A.   All   contributions   and   payments   in   lieu  of
contributions collected under this  Act,  including  but  not
limited to fund building receipts, together with any interest
thereon;  all  penalties  collected pursuant to this Act; any
property or securities acquired through the use thereof;  all
moneys  advanced  to this State's account in the unemployment
trust fund pursuant to the provisions of  Title  XII  of  the
Social  Security  Act,  as  amended;  all moneys directed for
transfer from the Master Bond Fund to this State's account in
the unemployment trust fund received  from  the  federal  tax
avoidance surcharge established by Section 1506.4; all moneys
received   from  the  Federal  government  as  reimbursements
pursuant  to  Section  204  of  the  Federal-State   Extended
Unemployment Compensation Act of 1970, as amended; all moneys
credited  to  this  State's account in the unemployment trust
fund pursuant to Section 903 of the Federal  Social  Security
Act,  as  amended;    and  all  earnings  of such property or
securities and any interest earned upon any such moneys shall
be paid or turned over  to  and  held  by  the  Director,  as
ex-officio   custodian   of   the   clearing   account,   the
unemployment  trust fund account and the benefit account, and
by the  State  Treasurer,  as  ex-officio  custodian  of  the
special  administrative  account, separate and apart from all
public  moneys  or  funds  of  this  State,  as   hereinafter
provided.   Such moneys shall be administered by the Director
exclusively for the purposes of this Act.
    No such moneys shall be paid or expended except upon  the
direction of the Director in accordance with such regulations
as he shall prescribe pursuant to the provisions of this Act.
    The  State  Treasurer  shall  be  liable  on  his general
official bond for the faithful performance of his  duties  in
connection  with  the  moneys  in  the special administrative
account provided for under this Act.  Such liability  on  his
official  bond  shall exist in addition to the liability upon
any separate bond given  by  him.   All  sums  recovered  for
losses  sustained  by  the account shall be deposited in that
account.
    The Director shall be liable on his general official bond
for the faithful performance of his duties in connection with
the moneys in the clearing account, the benefit  account  and
unemployment  trust fund account provided for under this Act.
Such liability on his official bond shall exist  in  addition
to  the  liability  upon any separate bond given by him.  All
sums recovered  for  losses  sustained  by  any  one  of  the
accounts  shall  be  deposited  in the account that sustained
such loss.
    The Treasurer shall maintain for such  moneys  a  special
administrative  account.    The  Director  shall maintain for
such moneys  3  separate  accounts:  a  clearing  account,  a
benefit  account and an unemployment trust fund account.  All
moneys payable under this Act  (except  moneys  requisitioned
from  this State's account in the unemployment trust fund and
deposited in the benefit account), including but not  limited
to  moneys directed for transfer from the Master Bond Fund to
this State's account in the  unemployment  trust  fund,  upon
receipt   thereof  by  the  Director,  shall  be  immediately
deposited in the clearing account; provided,  however,  that,
except as is otherwise provided in this Section, interest and
penalties  shall not be deemed a part of the clearing account
but shall be transferred immediately upon  clearance  thereof
to the special administrative account.
    After clearance thereof, all other moneys in the clearing
account  shall  be immediately deposited by the Director with
the Secretary of the Treasury of the United States of America
to  the  credit  of  the  account  of  this  State   in   the
unemployment  trust fund, established and maintained pursuant
to the Federal Social Security Act, as amended,  except  fund
building  receipts,  which shall be deposited into the Master
Bond Fund. The benefit account shall consist  of  all  moneys
requisitioned  from  this State's account in the unemployment
trust fund.  The moneys  in  the  benefit  account  shall  be
expended  in  accordance  with  regulations prescribed by the
Director and solely for the payment of benefits,  refunds  of
contributions, interest and penalties under the provisions of
the  Act,  the payment of health insurance in accordance with
Section 410 of this Act, and the transfer or payment of funds
to  any  Federal  or  State  agency  pursuant  to  reciprocal
arrangements  entered  into  by  the   Director   under   the
provisions  of  Section 2700E, except that moneys credited to
this State's account in the unemployment trust fund  pursuant
to  Section  903  of  the  Federal  Social  Security  Act, as
amended, shall be used exclusively as provided in  subsection
B.   For purposes of this Section only, to the extent allowed
by applicable legal requirements,  the  payment  of  benefits
includes  but  is  not limited to the payment of principal on
any  bonds  issued  pursuant  to  the  Illinois  Unemployment
Insurance Trust Fund Financing Act, exclusive of any interest
or administrative expenses in connection with the bonds.  The
Director shall, from  time  to  time,  requisition  from  the
unemployment  trust  fund  such  amounts,  not  exceeding the
amounts standing to the State's account therein, as he  deems
necessary  solely  for the payment of such benefits, refunds,
and funds, for a reasonable future period.  The Director,  as
ex-officio  custodian  of the benefit account, which shall be
kept separate and apart from all other public  moneys,  shall
issue  his  checks for the payment of such benefits, refunds,
health insurance and funds solely from the moneys so received
into the benefit account.  However, after January 1, 1987, no
check shall be drawn on such benefit account  unless  at  the
time  of  drawing there is sufficient money in the account to
pay the check.  The Director shall  retain  in  the  clearing
account  an  amount  of  interest  and penalties equal to the
amount of interest and penalties  to  be  refunded  from  the
benefit  account.   After  clearance  thereof,  the amount so
retained shall be immediately deposited by the  Director,  as
are  all  other  moneys  in  the  clearing  account, with the
Secretary of the Treasury of the United States.  If,  at  any
time,  an  insufficient  amount  of interest and penalties is
available for retention in the clearing account, no refund of
interest or penalties shall be made from the benefit  account
until  a  sufficient amount is available for retention and is
so retained, or until the State Treasurer, upon the direction
of the Director,  transfers  to  the  Director  a  sufficient
amount from the special administrative account, for immediate
deposit in the benefit account.
    Any balance of moneys requisitioned from the unemployment
trust  fund  which remains unclaimed or unpaid in the benefit
account after the expiration of the  period  for  which  such
sums   were  requisitioned  shall  either  be  deducted  from
estimates of and may be utilized for authorized  expenditures
during  succeeding  periods,  or,  in  the  discretion of the
Director, shall be redeposited  with  the  Secretary  of  the
Treasury  of  the  United States to the credit of the State's
account in the unemployment trust fund.
    Moneys   in   the   clearing,   benefit    and    special
administrative  accounts  shall  not be commingled with other
State funds but they shall be deposited as  required  by  law
and maintained in separate accounts on the books of a savings
and loan association or bank.
    No  bank  or  savings  and loan association shall receive
public funds as permitted by  this  Section,  unless  it  has
complied   with  the  requirements  established  pursuant  to
Section 6 of "An  Act  relating  to  certain  investments  of
public  funds by public agencies", approved July 23, 1943, as
now or hereafter amended.
    B.  Moneys credited to the account of this State  in  the
unemployment  trust  fund by the Secretary of the Treasury of
the United States pursuant  to  Section  903  of  the  Social
Security  Act  may be requisitioned from this State's account
and used as authorized by Section 903.  Any interest required
to be paid on advances under Title XII of the Social Security
Act shall be paid in a timely manner and shall not  be  paid,
directly   or  indirectly,  by  an  equivalent  reduction  in
contributions or  payments  in  lieu  of  contributions  from
amounts  in  this  State's  account in the unemployment trust
fund.   Such moneys may be requisitioned  and  used  for  the
payment  of  expenses incurred for the administration of this
Act, but only pursuant to a  specific  appropriation  by  the
General  Assembly  and  only if the expenses are incurred and
the moneys  are  requisitioned  after  the  enactment  of  an
appropriation law which:
         1.  Specifies the purpose or purposes for which such
    moneys   are  appropriated  and  the  amount  or  amounts
    appropriated therefor;
         2.  Limits the period within which such  moneys  may
    be  obligated  to  a  period ending not more than 2 years
    after the date of the enactment of the appropriation law;
    and
         3.  Limits the amount which may be obligated  during
    any  fiscal  year  to an amount which does not exceed the
    amount  by  which  (a)  the  aggregate  of  the   amounts
    transferred  to  the  account  of  this State pursuant to
    Section 903 of the Social Security Act  exceeds  (b)  the
    aggregate  of  the amounts used by this State pursuant to
    this Act and charged against the amounts  transferred  to
    the account of this State.
    For  purposes  of  paragraph (3) above, amounts obligated
for administrative  purposes  pursuant  to  an  appropriation
shall  be chargeable against transferred amounts at the exact
time the obligation  is  entered  into.   The  appropriation,
obligation,  and  expenditure  or  other disposition of money
appropriated under this subsection shall be accounted for  in
accordance  with  standards  established by the United States
Secretary of Labor.
    Moneys appropriated as provided herein for the payment of
expenses of administration  shall  be  requisitioned  by  the
Director  as  needed  for the payment of obligations incurred
under such appropriation. Upon requisition, such moneys shall
be deposited with the State Treasurer, who  shall  hold  such
moneys,  as  ex-officio custodian thereof, in accordance with
the requirements of Section 2103 and, upon the  direction  of
the  Director, shall make payments therefrom pursuant to such
appropriation.  Moneys so deposited  shall,  until  expended,
remain a part of the unemployment trust fund and, if any will
not be expended, shall be returned promptly to the account of
this State in the unemployment trust fund.
    C.  The  Governor  is  authorized  to apply to the United
States Secretary of Labor for an advance or advances to  this
State's  account  in  the unemployment trust fund pursuant to
the conditions set forth in Title XII of the  Federal  Social
Security Act, as amended.  The amount of any such advance may
be repaid from this State's account in the unemployment trust
fund  provided  that  if  the  federal  penalty tax avoidance
surcharge established by Section 1506.4 is in effect for that
year, any outstanding advance  shall  first  be  repaid  from
amounts  in  this  State's  account in the unemployment trust
fund which were received from such surcharge by November 9 of
each year.
(Source: P.A. 91-342, eff. 1-1-00.)

    (820 ILCS 405/2106.1 new)
    Sec.  2106.1.  Master  Bond   Fund.   There   is   hereby
established  the Master Bond Fund held by the Director or his
or her designee as ex-officio custodian thereof separate  and
apart  from  all  other  State  funds. The moneys in the Fund
shall be used in accordance with  the  Illinois  Unemployment
Insurance Trust Fund Financing Act.

    (820 ILCS 405/1506.4 rep.)
    (820 ILCS 405/2104 rep.)
    Section  13.4.  The Unemployment Insurance Act is amended
by repealing Sections 1506.4 and 2104.

    Section 14.  Effective Date. This  Act  takes  effect  on
January 1, 2004.