093_HB0810enr

 
HB0810 Enrolled                      LRB093 05611 WGH 05704 b

 1        AN ACT in relation to unemployment insurance.

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

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

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

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

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

 3        Section 5.  Bond Proceeds.
 4        A.  The proceeds of any Bonds  issued  pursuant  to  this
 5    Act,  including  investment  income thereon, shall be held in
 6    trust in the Master Bond Fund for the following  purpose  and
 7    in such amounts as determined by the Director:
 8             1.  Paying   the   principal  and  interest  on  any
 9        outstanding federal advance received  by  the  Department
10        under  Section  1201, et seq., of the Social Security Act
11        (42 U.S.C. Section 1321),  as  amended,  or  any  similar
12        federal law;
13             2.  Being  deposited into the State's account in the
14        Unemployment Trust Fund of the United States Treasury for
15        the purpose of: (i) avoiding anticipated deficiencies  in
16        that  account  or (ii) funding a surplus in that account,
17        when doing either (i) or (ii) will result in a savings to
18        the State or employers or both;
19             3.  Paying the costs of issuing or  refinancing  any
20        such Bonds;
21             4.  Providing  an  appropriate  reserve for any such
22        Bonds to the extent that the Department  determines  that
23        an appropriate reserve is warranted; and
24             5.  Paying capitalized interest on the Bonds for the
25        period  determined  necessary  by  the Department, not to
26        exceed 2 years.
27        B.  Excess Bond proceeds remaining  available  after  the
28    payments  and  deposits  required  pursuant  to  Section  5A1
29    through  5A5  above  have  been  made,  may  be  used  in the
30    following manner as determined by the Director:
31             1.  To  purchase,  redeem  or  defease   outstanding
32        Bonds, to the extent such action is legally available and
33        does not impair the tax-exempt status of any of the Bonds
 
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 1        which are, in fact, tax-exempt; or
 2             2.  To   pay   any  scheduled  interest  payment  or
 3        payments due on any outstanding Bonds; or
 4             3.  Deposited  in  the  State's   account   in   the
 5        Unemployment Trust Fund of the United States Treasury.

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

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

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

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

30        Section  10.  No Personal Liability. No director, officer
31    or  employee  of  the  Department  or  the  State  shall   be
 
HB0810 Enrolled            -14-      LRB093 05611 WGH 05704 b
 1    personally  liable  as  a result of exercising the rights and
 2    responsibilities granted under this Act.

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

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

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

30        Section  13.1.  The Civil Administrative Code of Illinois
 
HB0810 Enrolled            -15-      LRB093 05611 WGH 05704 b
 1    is amended by changing Section 5-540 as follows:

 2        (20 ILCS 5/5-540) (was 20 ILCS 5/6.28 and 5/7.01)
 3        Sec. 5-540.  In the Department  of  Employment  Security.
 4    An  Employment  Security  Advisory  Board,  composed  of 12 9
 5    persons.  Of the 12 9  members  of  the  Employment  Security
 6    Advisory  Board, 4 3 members shall be representative citizens
 7    chosen  from  the  employee  class,  4  3  members  shall  be
 8    representative citizens chosen from the employing class,  and
 9    4  3  members shall be representative citizens not identified
10    with either the employing class or the employee class.
11    (Source: P.A. 90-372, eff. 7-1-98; 91-239, eff. 1-1-00.)

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

14        (35 ILCS 5/701) (from Ch. 120, par. 7-701)
15        Sec. 701.  Requirement and Amount of Withholding.
16        (a)  In General.  Every employer maintaining an office or
17    transacting business within this State and required under the
18    provisions of the Internal Revenue Code to withhold a tax on:
19             (1)  compensation  paid in this State (as determined
20        under Section 304(a)(2)(B) to an individual; or
21             (2)  payments  described  in  subsection  (b)  shall
22        deduct and  withhold  from  such  compensation  for  each
23        payroll  period  (as  defined  in  Section  3401  of  the
24        Internal  Revenue  Code) an amount equal to the amount by
25        which  such   individual's   compensation   exceeds   the
26        proportionate   part   of   this   withholding  exemption
27        (computed as provided in Section 702) attributable to the
28        payroll period for which  such  compensation  is  payable
29        multiplied  by  a  percentage equal to the percentage tax
30        rate  for  individuals  provided  in  subsection  (b)  of
31        Section 201.
 
HB0810 Enrolled            -16-      LRB093 05611 WGH 05704 b
 1        (b)  Payment  to  Residents.   Any   payment   (including
 2    compensation)  to a resident by a payor maintaining an office
 3    or transacting business  within  this  State  (including  any
 4    agency,  officer,  or  employee  of  this  State  or  of  any
 5    political subdivision of this State) and on which withholding
 6    of  tax  is  required  under  the  provisions of the Internal
 7    Revenue Code shall be deemed to be compensation paid in  this
 8    State  by  an  employer  to  an  employee for the purposes of
 9    Article 7 and Section 601(b)(1) to the extent such payment is
10    included in the recipient's base income and not subjected  to
11    withholding  by  another  state.  Notwithstanding  any  other
12    provision  to  the contrary, no amount shall be withheld from
13    unemployment insurance benefit payments made to an individual
14    pursuant  to  the  Unemployment  Insurance  Act  unless   the
15    individual  has  voluntarily elected the withholding pursuant
16    to rules promulgated by the Director of Employment Security.
17        (c)  Special   Definitions.    Withholding    shall    be
18    considered  required  under  the  provisions  of the Internal
19    Revenue Code to the extent the Internal Revenue  Code  either
20    requires  withholding or allows for voluntary withholding the
21    payor and  recipient  have  entered  into  such  a  voluntary
22    withholding  agreement.  For  the  purposes  of Article 7 and
23    Section 1002(c) the term "employer" includes any payor who is
24    required to withhold tax pursuant to this Section.
25        (d)  Reciprocal Exemption.  The Director may  enter  into
26    an  agreement  with the taxing authorities of any state which
27    imposes a tax on  or  measured  by  income  to  provide  that
28    compensation  paid  in  such state to residents of this State
29    shall be exempt from withholding of such tax; in  such  case,
30    any  compensation  paid  in  this  State to residents of such
31    state  shall  be  exempt  from  withholding.  All  reciprocal
32    agreements shall be subject to the  requirements  of  Section
33    2505-575   of   the   Department  of  Revenue  Law  (20  ILCS
34    2505/2505-575).
 
HB0810 Enrolled            -17-      LRB093 05611 WGH 05704 b
 1        (e)  Notwithstanding subsection (a)(2) of  this  Section,
 2    no  withholding is required on payments for which withholding
 3    is required under  Section  3405  or  3406  of  the  Internal
 4    Revenue Code of 1954.
 5    (Source: P.A. 91-239, eff. 1-1-00; 92-846, eff. 8-23-02.)

 6        Section  13.3.  The Unemployment Insurance Act is amended
 7    by changing Sections 235, 237, 401, 601, 1401, 1502.1,  1505,
 8    1506.3,  1507,  and  2100  and adding Sections 240.1, 1400.1,
 9    1511.1, and 2106.1 as follows:

10        (820 ILCS 405/235) (from Ch. 48, par. 345)
11        Sec. 235.  The term "wages" does not include:
12        A.  That  part   of   the   remuneration   which,   after
13    remuneration  equal  to $6,000 with respect to employment has
14    been paid to an individual by an employer during any calendar
15    year after 1977 and before 1980, is paid to  such  individual
16    by  such employer during such calendar year; and that part of
17    the remuneration which, after remuneration  equal  to  $6,500
18    with  respect to employment has been paid to an individual by
19    an employer during each calendar year 1980 and 1981, is  paid
20    to  such  individual  by  such  employer during that calendar
21    year;  and  that  part  of  the  remuneration  which,   after
22    remuneration  equal  to $7,000 with respect to employment has
23    been paid to an individual by an employer during the calendar
24    year 1982 is paid to such individual by such employer  during
25    that calendar year.
26        With  respect  to the first calendar quarter of 1983, the
27    term "wages" shall include only the remuneration paid  to  an
28    individual by an employer during such quarter with respect to
29    employment  which does not exceed $7,000. With respect to the
30    three calendar quarters, beginning April 1,  1983,  the  term
31    "wages"  shall  include  only  the  remuneration  paid  to an
32    individual by an employer during such period with respect  to
 
HB0810 Enrolled            -18-      LRB093 05611 WGH 05704 b
 1    employment which when added to the "wages" (as defined in the
 2    preceding  sentence) paid to such individual by such employer
 3    during the first calendar quarter of 1983,  does  not  exceed
 4    $8,000.
 5        With  respect to the calendar year 1984, the term "wages"
 6    shall include only the remuneration paid to an individual  by
 7    an  employer  during  that  period with respect to employment
 8    which does not exceed $8,000; with respect to calendar  years
 9    1985,  1986 and 1987, the term "wages" shall include only the
10    remuneration paid to such individual by such employer  during
11    that  calendar year with respect to employment which does not
12    exceed $8,500.
13        With respect to the calendar years 1988 through 2003  and
14    calendar  year  2005  and  each calendar year thereafter, the
15    term "wages" shall include only the remuneration paid  to  an
16    individual  by an employer during that period with respect to
17    employment which does not exceed $9,000.
18        With respect to the calendar year 2004, the term  "wages"
19    shall  include only the remuneration paid to an individual by
20    an employer during that period  with  respect  to  employment
21    which  does  not  exceed  $9,800 $10,000. With respect to the
22    calendar years 2005 through  2009,  the  term  "wages"  shall
23    include  only  the  remuneration  paid to an individual by an
24    employer during that period with respect to employment  which
25    does  not  exceed the following amounts: $10,500 with respect
26    to the calendar  year  2005;  $11,000  with  respect  to  the
27    calendar year 2006; $11,500 with respect to the calendar year
28    2007;  $12,000  with  respect  to the calendar year 2008; and
29    $12,300 with respect to the calendar year 2009.
30        With respect to the calendar year 2010 and each  calendar
31    year  thereafter,  the  term  "wages"  shall include only the
32    remuneration paid to an individual by an employer during that
33    period with respect to employment which does not  exceed  the
34    sum  of  the  wage  base  adjustment  applicable to that year
 
HB0810 Enrolled            -19-      LRB093 05611 WGH 05704 b
 1    pursuant  to  Section  1400.1,  plus   the   maximum   amount
 2    includable  as  "wages"  pursuant  to  this  subsection  with
 3    respect   to   the   immediately   preceding  calendar  year.
 4    Notwithstanding any provision to the  contrary,  the  maximum
 5    amount  includable  as "wages" pursuant to this Section shall
 6    not be less than $12,300 or greater than $12,960 with respect
 7    to any calendar year after calendar year 2009.
 8        The remuneration paid to an  individual  by  an  employer
 9    with  respect  to employment in another State or States, upon
10    which contributions were required of such employer  under  an
11    unemployment  compensation law of such other State or States,
12    shall be included as a part  of  the  remuneration  equal  to
13    $6,000,  $6,500,  $7,000, $8,000, $8,500, $9,000, or $10,000,
14    as the case may be, herein referred to. For the  purposes  of
15    this  subsection,  any  employing  unit which succeeds to the
16    organization, trade, or business, or to substantially all  of
17    the assets of another employing unit, or to the organization,
18    trade,  or business, or to substantially all of the assets of
19    a distinct severable portion of another employing unit, shall
20    be treated as a single unit  with  its  predecessor  for  the
21    calendar  year  in  which  such  succession  occurs,  and any
22    employing unit which is  owned  or  controlled  by  the  same
23    interests  which  own or control another employing unit shall
24    be treated as a  single  unit  with  the  unit  so  owned  or
25    controlled by such interests for any calendar year throughout
26    which  such  ownership  or  control  exists.  This subsection
27    applies only to Sections 1400, 1405A, and 1500.
28        B.  The amount of any payment (including any amount  paid
29    by an employer for insurance or annuities, or into a fund, to
30    provide  for  any such payment), made to, or on behalf of, an
31    individual or any of his dependents under a  plan  or  system
32    established  by  an  employer which makes provision generally
33    for individuals performing services  for  him  (or  for  such
34    individuals generally and their dependents) or for a class or
 
HB0810 Enrolled            -20-      LRB093 05611 WGH 05704 b
 1    classes  of  such  individuals  (or for a class or classes of
 2    such individuals and their dependents),  on  account  of  (1)
 3    sickness  or  accident  disability  (except those sickness or
 4    accident disability payments which  would  be  includable  as
 5    "wages"  in  Section  3306(b)(2)(A)  of  the Federal Internal
 6    Revenue Code of 1954, in effect  on  January  1,  1985,  such
 7    includable  payments  to  be  attributable  in such manner as
 8    provided by Section 3306(b) of the Federal  Internal  Revenue
 9    Code  of  1954, in effect on January 1, 1985), or (2) medical
10    or hospitalization expenses in connection  with  sickness  or
11    accident disability, or (3) death.
12        C.  Any  payment made to, or on behalf of, an employee or
13    his beneficiary which  would  be  excluded  from  "wages"  by
14    subparagraph  (A), (B), (C), (D), (E), (F) or (G), of Section
15    3306(b)(5) of the Federal Internal Revenue Code of  1954,  in
16    effect on January 1, 1985.
17        D.  The  amount  of any payment on account of sickness or
18    accident disability, or medical or  hospitalization  expenses
19    in  connection  with sickness or accident disability, made by
20    an employer to, or on behalf  of,  an  individual  performing
21    services  for him after the expiration of six calendar months
22    following the last calendar month  in  which  the  individual
23    performed services for such employer.
24        E.  Remuneration paid in any medium other than cash by an
25    employing  unit  to an individual for service in agricultural
26    labor as defined in Section 214.
27        F.  The amount of any supplemental  payment  made  by  an
28    employer  to an individual performing services for him, other
29    than remuneration for services performed, under a shared work
30    plan approved by the Director pursuant to Section 407.1.
31    (Source: P.A. 90-554, eff. 12-12-97; 91-342, eff. 7-29-99.)

32        (820 ILCS 405/237) (from Ch. 48, par. 347)
33        Sec.  237.  A. "Base   period"   means   (1)   the   four
 
HB0810 Enrolled            -21-      LRB093 05611 WGH 05704 b
 1    consecutive calendar quarters ended on the preceding December
 2    31,  for  benefit  years beginning in May, June, or July; (2)
 3    the four consecutive calendar quarters ended on the preceding
 4    March 31, for benefit years beginning in  August,  September,
 5    or  October; (3) the four consecutive calendar quarters ended
 6    on the preceding June 30,  for  benefit  years  beginning  in
 7    November,  December, or January; and (4) the four consecutive
 8    calendar quarters ended on the preceding  September  30,  for
 9    benefit  years  beginning  in February, March, or April. This
10    paragraph shall apply to benefit  years  beginning  prior  to
11    November 1, 1981.
12        For  each  benefit year beginning on or after November 1,
13    1981, "base period" means the first four  of  the  last  five
14    completed calendar quarters immediately preceding the benefit
15    year.  Further,  any  wages which had previously been used to
16    establish a valid claim pursuant  to  Section  242  and  with
17    respect  to  which  benefits  have  been  paid  shall  not be
18    included in the base period provided for in this subsection.
19        B.  Notwithstanding subsection A the foregoing paragraph,
20    with respect to  any  benefit  year  beginning  on  or  after
21    January   1,  1988,  an  individual,  who  has  been  awarded
22    temporary total disability under  any  workers'  compensation
23    act or any occupational diseases act and does not qualify for
24    the  maximum weekly benefit amount  under Section 401 because
25    he was unemployed  and  awarded  temporary  total  disability
26    during   the   base  period  determined  in  accordance  with
27    subsection A the preceding paragraph, shall have  his  weekly
28    benefit  amount,  if  it  is  greater than the weekly benefit
29    amount  determined  in  accordance  with  subsection  A   the
30    preceding  paragraph,  determined  by  the  base  period of a
31    benefit year which began on the date of the beginning of  the
32    first   week   for  which  he  was  awarded  temporary  total
33    disability   under   any   workers'   compensation   act   or
34    occupational diseases act, provided, however, that such  base
 
HB0810 Enrolled            -22-      LRB093 05611 WGH 05704 b
 1    period  shall  not  begin  more  than  one  year prior to the
 2    individual's base period as determined under subsection A the
 3    preceding paragraph.  Further, any wages which had previously
 4    been used to establish a valid claim pursuant to Section  242
 5    and  with  respect to which benefits have been paid shall not
 6    be  included  in  the  base  period  provided  for  in   this
 7    subsection paragraph.
 8        C.  With  respect  to  an individual who is ineligible to
 9    receive benefits under this Act by reason of  the  provisions
10    of  Section  500E  during  the  base  periods  determined  in
11    accordance  with subsections A and B, "base period" means the
12    last 4 completed calendar quarters immediately preceding  the
13    benefit  year.  This  subsection shall not apply to establish
14    any benefit year beginning prior to January 1, 2008.
15        D.  Notwithstanding  the  foregoing  provisions  of  this
16    Section, "base period" means the base period  as  defined  in
17    the  unemployment  compensation  law of any State under which
18    benefits are payable to an  individual  on  the  basis  of  a
19    combination of his wages pursuant to an arrangement described
20    in Section 2700 F.
21    (Source: P.A. 85-956; 85-1009.)

22        (820 ILCS 405/240.1 new)
23        Sec.   240.1.  "Fund  Building  Receipts"  means  amounts
24    directed for deposit into the Master Bond  Fund  pursuant  to
25    Section 1506.3.

26        (820 ILCS 405/401) (from Ch. 48, par. 401)
27        Sec.   401.    Weekly   Benefit   Amount   -  Dependents'
28    Allowances.
29        A.  With respect to any week beginning prior to April 24,
30    1983, an individual's  weekly  benefit  amount  shall  be  an
31    amount  equal to the weekly benefit amount as defined in this
32    Act as in effect on November 30, 1982.
 
HB0810 Enrolled            -23-      LRB093 05611 WGH 05704 b
 1        B. 1.  With respect to any week  beginning  on  or  after
 2    April  24,  1983  and before January 3, 1988, an individual's
 3    weekly benefit amount shall  be  48%  of  his  prior  average
 4    weekly  wage,  rounded  (if  not  already  a  multiple of one
 5    dollar) to the next higher dollar;  provided,  however,  that
 6    the  weekly  benefit  amount cannot exceed the maximum weekly
 7    benefit amount, and cannot be less than 15% of the  statewide
 8    average  weekly  wage,  rounded (if not already a multiple of
 9    one dollar) to the next higher dollar.  However,  the  weekly
10    benefit  amount  for  an  individual  who  has  established a
11    benefit year  beginning  before  April  24,  1983,  shall  be
12    determined,  for  weeks  beginning on or after April 24, 1983
13    claimed with respect to that benefit year, as provided  under
14    this  Act as in effect on November 30, 1982.  With respect to
15    any week beginning on or after January  3,  1988  and  before
16    January  1, 1993, an individual's weekly benefit amount shall
17    be 49% of his prior average  weekly  wage,  rounded  (if  not
18    already  a multiple of one dollar) to the next higher dollar;
19    provided, however, that  the  weekly  benefit  amount  cannot
20    exceed  the maximum weekly benefit amount, and cannot be less
21    than $51. With respect to any  week  beginning  on  or  after
22    January  3,  1993  and during a benefit year beginning before
23    January 4, 2004, an individual's weekly benefit amount  shall
24    be  49.5%  of  his prior average weekly wage, rounded (if not
25    already a multiple of one dollar) to the next higher  dollar;
26    provided,  however,  that  the  weekly  benefit amount cannot
27    exceed the maximum weekly benefit amount and cannot  be  less
28    than  $51.  With  respect to any benefit year beginning on or
29    after  January  4,  2004  and  before  January  6,  2008,  an
30    individual's weekly benefit amount shall be 48% of his or her
31    prior average weekly wage, rounded (if not already a multiple
32    of one dollar) to the next higher dollar; provided,  however,
33    that  the  weekly  benefit  amount  cannot exceed the maximum
34    weekly benefit amount and  cannot  be  less  than  $51.  With
 
HB0810 Enrolled            -24-      LRB093 05611 WGH 05704 b
 1    respect  to any benefit year beginning on or after January 6,
 2    2008, an individual's weekly benefit amount shall be  47%  of
 3    his or her prior average weekly wage, rounded (if not already
 4    a  multiple  of  one  dollar)  to  the  next  higher  dollar;
 5    provided,  however,  that  the  weekly  benefit amount cannot
 6    exceed the maximum weekly benefit amount and cannot  be  less
 7    than $51.
 8        2.  For the purposes of this subsection:
 9        With  respect to any week beginning on or after April 24,
10    1983, an individual's "prior average weekly wage"  means  the
11    total  wages  for insured work paid to that individual during
12    the 2 calendar quarters of his  base  period  in  which  such
13    total  wages were highest, divided by 26.  If the quotient is
14    not already a multiple of one dollar, it shall be rounded  to
15    the nearest dollar; however if the quotient is equally near 2
16    multiples  of  one  dollar, it shall be rounded to the higher
17    multiple of one dollar.
18        "Determination date" means June 1, 1982, December 1, 1982
19    and December 1 of each succeeding calendar  year  thereafter.
20    However,  if  as of June 30, 1982, or any June 30 thereafter,
21    the net amount standing to the credit of this State's account
22    in the unemployment trust fund (less all outstanding advances
23    to that account, including advances pursuant to Title XII  of
24    the   federal   Social   Security   Act)   is   greater  than
25    $100,000,000, "determination date" shall mean December  1  of
26    that  year and June 1 of the succeeding year. Notwithstanding
27    the preceding sentence, for the purposes of  this  Act  only,
28    there shall be no June 1 determination date in any year after
29    1986.
30        "Determination period" means, with respect to each June 1
31    determination date, the 12 consecutive calendar months ending
32    on the immediately preceding December 31 and, with respect to
33    each  December  1  determination  date,  the  12  consecutive
34    calendar months ending on the immediately preceding June 30.
 
HB0810 Enrolled            -25-      LRB093 05611 WGH 05704 b
 1        "Benefit  period" means the 12 consecutive calendar month
 2    period beginning on the first day of the first calendar month
 3    immediately following a determination date, except that, with
 4    respect to any calendar year in  which  there  is  a  June  1
 5    determination   date,  "benefit  period"  shall  mean  the  6
 6    consecutive calendar month period beginning on the first  day
 7    of   the  first  calendar  month  immediately  following  the
 8    preceding December 1 determination date and the 6 consecutive
 9    calendar month period beginning on the first day of the first
10    calendar month immediately following the June 1 determination
11    date. Notwithstanding the foregoing sentence, the 6  calendar
12    months  beginning  January  1,  1982 and ending June 30, 1982
13    shall be deemed a benefit period with respect  to  which  the
14    determination date shall be June 1, 1981.
15        "Gross  wages"  means  all  the wages paid to individuals
16    during  the  determination  period  immediately  preceding  a
17    determination date for insured  work,  and  reported  to  the
18    Director  by  employers  prior  to the first day of the third
19    calendar month preceding that date.
20        "Covered employment" for any  calendar  month  means  the
21    total  number  of individuals, as determined by the Director,
22    engaged in insured work at mid-month.
23        "Average monthly covered employment" means one-twelfth of
24    the sum of the covered employment for  the  12  months  of  a
25    determination period.
26        "Statewide  average  annual  wage"  means  the  quotient,
27    obtained  by  dividing gross wages by average monthly covered
28    employment for the same determination period, rounded (if not
29    already a multiple of one cent) to the nearest cent.
30        "Statewide  average  weekly  wage"  means  the  quotient,
31    obtained by dividing the statewide average annual wage by 52,
32    rounded (if not already  a  multiple  of  one  cent)  to  the
33    nearest cent.  Notwithstanding any provisions of this Section
34    to  the  contrary,  the statewide average weekly wage for the
 
HB0810 Enrolled            -26-      LRB093 05611 WGH 05704 b
 1    benefit period beginning July 1, 1982 and ending December 31,
 2    1982 shall be the statewide average weekly wage in effect for
 3    the immediately preceding benefit period plus one-half of the
 4    result obtained by subtracting the statewide  average  weekly
 5    wage  for  the  immediately preceding benefit period from the
 6    statewide  average  weekly  wage  for  the   benefit   period
 7    beginning  July  1, 1982 and ending December 31, 1982 as such
 8    statewide average weekly wage would have been determined  but
 9    for  the  provisions  of  this paragraph. Notwithstanding any
10    provisions of this Section to  the  contrary,  the  statewide
11    average  weekly  wage  for the benefit period beginning April
12    24, 1983 and ending January 31, 1984 shall be  $321  and  for
13    the  benefit  period  beginning  February  1, 1984 and ending
14    December 31, 1986 shall be $335, and for the  benefit  period
15    beginning  January  1,  1987,  and  ending December 31, 1987,
16    shall  be  $350,  except  that  for  an  individual  who  has
17    established a benefit year beginning before April  24,  1983,
18    the   statewide  average  weekly  wage  used  in  determining
19    benefits, for any week beginning on or after April 24,  1983,
20    claimed  with respect to that benefit year, shall be $334.80,
21    except that, for  the  purpose  of  determining  the  minimum
22    weekly  benefit  amount under subsection B(1) for the benefit
23    period beginning January 1, 1987,  and  ending  December  31,
24    1987,  the  statewide  average weekly wage shall be $335; for
25    the benefit periods January  1,  1988  through  December  31,
26    1988,  January 1, 1989 through December 31, 1989, and January
27    1, 1990 through December  31,  1990,  the  statewide  average
28    weekly  wage  shall  be  $359,  $381, and $406, respectively.
29    Notwithstanding the preceding sentences  of  this  paragraph,
30    for  the  benefit period of calendar year 1991, the statewide
31    average weekly wage shall be $406 plus (or minus)  an  amount
32    equal  to  the  percentage  change  in  the statewide average
33    weekly wage, as computed in  accordance  with  the  preceding
34    sentences  of  this paragraph, between the benefit periods of
 
HB0810 Enrolled            -27-      LRB093 05611 WGH 05704 b
 1    calendar years 1989 and 1990, multiplied by  $406;  and,  for
 2    the  benefit  periods of calendar years 1992 through 2003 and
 3    calendar year 2005 and each  calendar  year  thereafter,  the
 4    statewide average weekly wage, shall be the statewide average
 5    weekly  wage, as determined in accordance with this sentence,
 6    for the immediately preceding benefit period plus (or  minus)
 7    an  amount  equal  to  the percentage change in the statewide
 8    average weekly wage,  as  computed  in  accordance  with  the
 9    preceding   sentences   of  this  paragraph,  between  the  2
10    immediately preceding  benefit  periods,  multiplied  by  the
11    statewide  average  weekly  wage, as determined in accordance
12    with this sentence, for  the  immediately  preceding  benefit
13    period. For the benefit period of 2004, the statewide average
14    weekly  wage  shall  be $600.  Provided however, that for any
15    benefit period after December 31, 1990, if 2 of the following
16    3 factors occur, then the statewide average weekly wage shall
17    be the statewide  average  weekly  wage  in  effect  for  the
18    immediately   preceding   benefit  period:  (a)  the  average
19    contribution rate for all employers in  this  State  for  the
20    calendar year 2 years prior to the benefit period, as a ratio
21    of total contribution payments (including payments in lieu of
22    contributions)  to  total wages reported by employers in this
23    State for that same period is 0.2% greater than the  national
24    average  of  this  ratio,  the  foregoing to be determined in
25    accordance with rules promulgated by the  Director;  (b)  the
26    balance  in  this  State's  account in the unemployment trust
27    fund, as of March 31 of the prior calendar year, is less than
28    $250,000,000; or (c) the number of first payments of  initial
29    claims, as determined in accordance with rules promulgated by
30    the  Director,  for  the one year period ending on June 30 of
31    the prior year, has increased more than 25% over the  average
32    number  of such payments during the 5 year period ending that
33    same June 30; and provided further that if (a), (b)  and  (c)
34    occur,  then the statewide average weekly wage, as determined
 
HB0810 Enrolled            -28-      LRB093 05611 WGH 05704 b
 1    in accordance with the preceding sentence, shall be 10%  less
 2    than  it  would  have  been but for these provisions.  If the
 3    reduced amount, computed in  accordance  with  the  preceding
 4    sentence,  is  not already a multiple of one dollar, it shall
 5    be rounded to the nearest dollar.  The 10% reduction  in  the
 6    statewide average weekly wage in the preceding sentence shall
 7    not  be  in  effect  for more than 2 benefit periods of any 5
 8    consecutive benefit periods.  This 10% reduction shall not be
 9    cumulative from year to year.  Neither  the  freeze  nor  the
10    reduction   shall  be  considered  in  the  determination  of
11    subsequent years' calculations of  statewide  average  weekly
12    wage. However, for purposes of the Workers' Compensation Act,
13    the statewide average weekly wage will be computed using June
14    1  and  December  1 determination dates of each calendar year
15    and such determination shall not be subject to the limitation
16    of $321, $335,  $350,  $359,  $381,  $406  or  the  statewide
17    average  weekly  wage  as  computed  in  accordance  with the
18    preceding sentence 7 sentences of this paragraph.
19        With respect to any week beginning on or after April  24,
20    1983  and  before  January  3,  1988, "maximum weekly benefit
21    amount" means 48%  of  the  statewide  average  weekly  wage,
22    rounded  (if  not  already  a  multiple of one dollar) to the
23    nearest dollar, provided however,  that  the  maximum  weekly
24    benefit  amount  for  an  individual  who  has  established a
25    benefit year  beginning  before  April  24,  1983,  shall  be
26    determined,  for  weeks  beginning on or after April 24, 1983
27    claimed with respect to that benefit year, as provided  under
28    this  Act  as  amended  and  in  effect on November 30, 1982,
29    except that the statewide average weekly wage  used  in  such
30    determination shall be $334.80.
31        With  respect to any week beginning after January 2, 1988
32    and before January 1, 1993, "maximum weekly  benefit  amount"
33    with  respect  to each week beginning within a benefit period
34    means 49% of the statewide average weekly wage,  rounded  (if
 
HB0810 Enrolled            -29-      LRB093 05611 WGH 05704 b
 1    not  already  a  multiple  of  one dollar) to the next higher
 2    dollar.
 3        With respect to any week beginning on or after January 3,
 4    1993 and during a benefit year beginning  before  January  4,
 5    2004,  "maximum  weekly  benefit amount" with respect to each
 6    week beginning within a benefit period  means  49.5%  of  the
 7    statewide  average  weekly  wage,  rounded  (if not already a
 8    multiple of one dollar) to the next higher dollar.
 9        With respect to any benefit year beginning  on  or  after
10    January  4,  2004 and before January 6, 2008, "maximum weekly
11    benefit amount" with respect to each week beginning within  a
12    benefit  period  means  48%  of  the statewide average weekly
13    wage, rounded (if not already a multiple of  one  dollar)  to
14    the next higher dollar.
15        With  respect  to  any benefit year beginning on or after
16    January 6, 2008, "maximum weekly benefit amount" with respect
17    to each week beginning within a benefit period means  47%  of
18    the  statewide average weekly wage, rounded (if not already a
19    multiple of one dollar) to the next higher dollar.
20        C.  With respect to any week beginning on or after  April
21    24,  1983  and  before January 3, 1988, an individual to whom
22    benefits are payable with  respect  to  any  week  shall,  in
23    addition  to  such  benefits,  be  paid, with respect to such
24    week, as follows:  in  the  case  of  an  individual  with  a
25    nonworking  spouse,  7%  of  his  prior  average weekly wage,
26    rounded (if not already a multiple  of  one  dollar)  to  the
27    higher dollar; provided, that the total amount payable to the
28    individual with respect to a week shall not exceed 55% of the
29    statewide  average  weekly  wage,  rounded  (if not already a
30    multiple of one dollar) to the nearest  dollar;  and  in  the
31    case  of  an  individual  with a dependent child or dependent
32    children, 14.4% of his prior average weekly wage, rounded (if
33    not already a multiple of one dollar) to the  higher  dollar;
34    provided,  that  the  total  amount payable to the individual
 
HB0810 Enrolled            -30-      LRB093 05611 WGH 05704 b
 1    with respect  to  a  week  shall  not  exceed  62.4%  of  the
 2    statewide  average  weekly  wage,  rounded  (if not already a
 3    multiple of one  dollar)  to  the  next  higher  dollar  with
 4    respect  to  the benefit period beginning January 1, 1987 and
 5    ending December  31,  1987,  and  otherwise  to  the  nearest
 6    dollar.   However, for an individual with a nonworking spouse
 7    or with a dependent child or children who has  established  a
 8    benefit  year  beginning before April 24, 1983, the amount of
 9    additional benefits payable  on  account  of  the  nonworking
10    spouse  or  dependent  child or children shall be determined,
11    for weeks beginning on or after April 24, 1983  claimed  with
12    respect  to  that benefit year, as provided under this Act as
13    in effect on November 30, 1982,  except  that  the  statewide
14    average  weekly  wage  used  in  such  determination shall be
15    $334.80.
16        With respect to any week beginning on or after January 2,
17    1988 and before January 1, 1991 and any week beginning on  or
18    after  January  1,  1992,  and  before  January  1,  1993, an
19    individual to whom benefits are payable with respect  to  any
20    week  shall,  in  addition  to  those benefits, be paid, with
21    respect  to  such  week,  as  follows:  in  the  case  of  an
22    individual with a nonworking spouse, 8% of his prior  average
23    weekly  wage,  rounded  (if  not  already  a  multiple of one
24    dollar) to the next higher dollar, provided, that  the  total
25    amount  payable  to  the  individual  with respect to a  week
26    shall not exceed 57% of the statewide  average  weekly  wage,
27    rounded (if not already a multiple of one dollar) to the next
28    higher  dollar;  and  in  the  case  of  an individual with a
29    dependent child or  dependent  children,  15%  of  his  prior
30    average  weekly  wage,  rounded (if not already a multiple of
31    one dollar) to the next  higher  dollar,  provided  that  the
32    total amount payable to the individual with respect to a week
33    shall  not  exceed  64% of the statewide average weekly wage,
34    rounded (if not already a multiple of one dollar) to the next
 
HB0810 Enrolled            -31-      LRB093 05611 WGH 05704 b
 1    higher dollar.
 2        With respect to any week beginning on or after January 1,
 3    1991 and before  January  1,  1992,  an  individual  to  whom
 4    benefits  are  payable  with  respect  to  any week shall, in
 5    addition to the benefits, be paid, with respect to such week,
 6    as follows: in the case of an individual  with  a  nonworking
 7    spouse,  8.3%  of  his prior average weekly wage, rounded (if
 8    not already a multiple of one  dollar)  to  the  next  higher
 9    dollar,  provided,  that  the  total  amount  payable  to the
10    individual with respect to a week shall not exceed  57.3%  of
11    the  statewide average weekly wage, rounded (if not already a
12    multiple of one dollar) to the next higher dollar; and in the
13    case of an individual with a  dependent  child  or  dependent
14    children, 15.3% of his prior average weekly wage, rounded (if
15    not  already  a  multiple  of  one dollar) to the next higher
16    dollar,  provided  that  the  total  amount  payable  to  the
17    individual with respect to a week shall not exceed  64.3%  of
18    the  statewide average weekly wage, rounded (if not already a
19    multiple of one dollar) to the next higher dollar.
20        With respect to any week beginning on or after January 3,
21    1993, during a benefit year beginning before January 4, 2004,
22    an individual to whom benefits are payable  with  respect  to
23    any  week shall, in addition to those benefits, be paid, with
24    respect  to  such  week,  as  follows:  in  the  case  of  an
25    individual with a nonworking spouse, 9% of his prior  average
26    weekly  wage,  rounded  (if  not  already  a  multiple of one
27    dollar) to the next higher dollar, provided, that  the  total
28    amount  payable  to  the  individual  with respect to a  week
29    shall not exceed 58.5% of the statewide average weekly  wage,
30    rounded (if not already a multiple of one dollar) to the next
31    higher  dollar;  and  in  the  case  of  an individual with a
32    dependent child or  dependent  children,  16%  of  his  prior
33    average  weekly  wage,  rounded (if not already a multiple of
34    one dollar) to the next  higher  dollar,  provided  that  the
 
HB0810 Enrolled            -32-      LRB093 05611 WGH 05704 b
 1    total amount payable to the individual with respect to a week
 2    shall  not exceed 65.5% of the statewide average weekly wage,
 3    rounded (if not already a multiple of one dollar) to the next
 4    higher dollar.
 5        With respect to any benefit year beginning  on  or  after
 6    January  4, 2004 and before January 6, 2008, an individual to
 7    whom benefits are payable with respect to any week shall,  in
 8    addition  to  those  benefits,  be paid, with respect to such
 9    week, as follows:  in  the  case  of  an  individual  with  a
10    nonworking  spouse,  9%  of  his  or her prior average weekly
11    wage, rounded (if not already a multiple of  one  dollar)  to
12    the  next  higher  dollar,  provided,  that  the total amount
13    payable to the individual with respect to a  week  shall  not
14    exceed  57% of the statewide average weekly wage, rounded (if
15    not already a multiple of one  dollar)  to  the  next  higher
16    dollar;  and  in  the  case of an individual with a dependent
17    child or dependent  children,  17.2%  of  his  or  her  prior
18    average  weekly  wage,  rounded (if not already a multiple of
19    one dollar) to the next  higher  dollar,  provided  that  the
20    total amount payable to the individual with respect to a week
21    shall  not exceed 65.2% of the statewide average weekly wage,
22    rounded (if not already a multiple of one dollar) to the next
23    higher dollar.
24        With respect to any benefit year beginning  on  or  after
25    January  6,  2008, an individual to whom benefits are payable
26    with  respect  to  any  week  shall,  in  addition  to  those
27    benefits, be paid, with respect to such week, as follows:  in
28    the case of an individual with a nonworking spouse, 9% of his
29    or  her  prior average weekly wage, rounded (if not already a
30    multiple of one dollar) to the next higher dollar,  provided,
31    that  the total amount payable to the individual with respect
32    to a week shall not  exceed  56%  of  the  statewide  average
33    weekly  wage,  rounded  (if  not  already  a  multiple of one
34    dollar) to the next higher dollar; and with  respect  to  any
 
HB0810 Enrolled            -33-      LRB093 05611 WGH 05704 b
 1    benefit year beginning before January 1, 2010, in the case of
 2    an  individual  with a dependent child or dependent children,
 3    18.2% of his or her prior average weekly  wage,  rounded  (if
 4    not  already  a  multiple  of  one dollar) to the next higher
 5    dollar,  provided  that  the  total  amount  payable  to  the
 6    individual with respect to a week shall not exceed  65.2%  of
 7    the  statewide average weekly wage, rounded (if not already a
 8    multiple of one  dollar)  to  the  next  higher  dollar.  The
 9    additional  amount  paid  pursuant  to this subsection in the
10    case of an individual with a  dependent  child  or  dependent
11    children  shall  be  referred  to  as  the  "dependent  child
12    allowance".  With respect to each benefit year beginning in a
13    calendar year after calendar year 2009, the  percentage  rate
14    used  to calculate the dependent child allowance shall be the
15    sum  of  the  allowance  adjustment  applicable  pursuant  to
16    Section 1400.1 to the calendar year in which the benefit year
17    begins, plus  the  percentage  rate  used  to  calculate  the
18    dependent  child  allowance with respect to each benefit year
19    beginning  in  the  immediately  preceding   calendar   year,
20    provided that the total amount payable to the individual with
21    respect  to  a  week beginning in such benefit year shall not
22    exceed the product of  the  statewide  average  weekly  wage,
23    rounded (if not already a multiple of one dollar) to the next
24    higher  dollar  and  the  sum of 47% plus the percentage rate
25    used to calculate the individual's dependent child allowance.
26    Notwithstanding any provision to the contrary, the percentage
27    rate used to calculate the  dependent  child  allowance  with
28    respect  to any benefit year beginning on or after January 1,
29    2010, shall not be less than 17.3% or greater than 18.2%.
30        For the purposes of this subsection:
31        "Dependent" means a child or a nonworking spouse.
32        "Child" means a  natural  child,  stepchild,  or  adopted
33    child  of an individual claiming benefits under this Act or a
34    child who is in the custody of any such individual  by  court
 
HB0810 Enrolled            -34-      LRB093 05611 WGH 05704 b
 1    order, for whom the individual is supplying and, for at least
 2    90  consecutive  days  (or  for  the duration of the parental
 3    relationship if  it  has  existed  for  less  than  90  days)
 4    immediately  preceding  any  week  with  respect to which the
 5    individual has filed a claim, has supplied more than one-half
 6    the cost of support, or has supplied at least 1/4 of the cost
 7    of support if the individual and the other parent,  together,
 8    are supplying and, during the aforesaid period, have supplied
 9    more  than  one-half  the  cost of support, and are, and were
10    during the aforesaid period, members of the  same  household;
11    and  who, on the first day of such week (a) is under 18 years
12    of age, or (b)  is,  and  has  been  during  the  immediately
13    preceding 90 days, unable to work because of illness or other
14    disability:  provided, that no person who has been determined
15    to be a child of an individual who has been allowed  benefits
16    with respect to a week in the individual's benefit year shall
17    be  deemed  to  be  a child of the other parent, and no other
18    person shall be determined  to  be  a  child  of  such  other
19    parent, during the remainder of that benefit year.
20        "Nonworking  spouse"  means the lawful husband or wife of
21    an individual claiming benefits under this Act, for whom more
22    than one-half the cost of support has been  supplied  by  the
23    individual  for  at  least  90  consecutive  days (or for the
24    duration of the marital relationship if it  has  existed  for
25    less  than  90  days)  immediately  preceding  any  week with
26    respect to which the individual has filed a claim,  but  only
27    if  the  nonworking spouse is currently ineligible to receive
28    benefits under this  Act  by  reason  of  the  provisions  of
29    Section 500E.
30        An individual who was obligated by law to provide for the
31    support  of  a  child  or  of  a  nonworking  spouse  for the
32    aforesaid period of 90 consecutive days, but was prevented by
33    illness or injury from doing so,  shall  be  deemed  to  have
34    provided  more than one-half the cost of supporting the child
 
HB0810 Enrolled            -35-      LRB093 05611 WGH 05704 b
 1    or nonworking spouse for that period.
 2    (Source: P.A. 90-554, eff. 12-12-97; 91-342, eff. 7-29-99.)

 3        (820 ILCS 405/601) (from Ch. 48, par. 431)
 4        Sec. 601. Voluntary leaving.  A. An individual  shall  be
 5    ineligible  for  benefits  for  the week in which he has left
 6    work voluntarily  without  good  cause  attributable  to  the
 7    employing   unit   and,   thereafter,  until  he  has  become
 8    reemployed and has had earnings equal to or in excess of  his
 9    current  weekly benefit amount in each of four calendar weeks
10    which are either for services in employment, or have been  or
11    will  be  reported  pursuant to the provisions of the Federal
12    Insurance Contributions Act by each employing unit for  which
13    such  services  are  performed  and which submits a statement
14    certifying to that fact.
15        B.  The provisions of this Section shall not apply to  an
16    individual who has left work voluntarily:
17        1.  Because he is deemed physically unable to perform his
18    work by a licensed and practicing physician, or has left work
19    voluntarily  upon  the  advice  of  a licensed and practicing
20    physician that assistance is necessary  for  the  purpose  of
21    caring  for  his  spouse,  child,  or  parent  who is in poor
22    physical health and such assistance will  not  allow  him  to
23    perform the usual and customary duties of his employment, and
24    he  has  notified  the  employing unit of the reasons for his
25    absence;
26        2.  To accept  other  bona  fide  work  and,  after  such
27    acceptance,  the  individual is either not unemployed in each
28    of 2 weeks, or earns remuneration for such work equal  to  at
29    least twice his current weekly benefit amount;
30        3.  In lieu of accepting a transfer to other work offered
31    to  the individual by the employing unit under the terms of a
32    collective bargaining agreement or pursuant to an established
33    employer plan, program, or policy, if the acceptance of  such
 
HB0810 Enrolled            -36-      LRB093 05611 WGH 05704 b
 1    other  work  by  the  individual would require the separation
 2    from that work of another individual currently performing it;
 3        4.  Solely  because  of  the  sexual  harassment  of  the
 4    individual by another employee.  Sexual harassment means  (1)
 5    unwelcome   sexual  advances,  requests  for  sexual  favors,
 6    sexually motivated  physical  contact  or  other  conduct  or
 7    communication  which  is  made  a  term  or  condition of the
 8    employment or (2) the employee's submission to  or  rejection
 9    of  such  conduct  or  communication  which  is the basis for
10    decisions affecting employment, or (3) when such  conduct  or
11    communication  has  the  purpose  or  effect of substantially
12    interfering with an individual's work performance or creating
13    an intimidating, hostile, or  offensive  working  environment
14    and the employer knows or should know of the existence of the
15    harassment and fails to take timely and appropriate action;
16        5.  Which  he  had  accepted  after separation from other
17    work, and the work which he left voluntarily would be  deemed
18    unsuitable under the provisions of Section 603;.
19        6.  (a) Because   the   individual   left   work  due  to
20    circumstances resulting from the individual being a victim of
21    domestic violence as defined in Section 103 of  the  Illinois
22    Domestic  Violence Act of 1986; and provided, such individual
23    has made reasonable efforts to preserve the employment.
24        For the purposes of  this  paragraph  6,  the  individual
25    shall  be  treated  as being a victim of domestic violence if
26    the individual provides the following:
27             (i)  written notice to the  employing  unit  of  the
28        reason for the individual's voluntarily leaving; and
29             (ii)  to the Department provides:
30                  (A)  an    order   of   protection   or   other
31             documentation of equitable relief issued by a  court
32             of competent jurisdiction; or
33                  (B)  a   police   report  or  criminal  charges
34             documenting the domestic violence; or
 
HB0810 Enrolled            -37-      LRB093 05611 WGH 05704 b
 1                  (C)  medical  documentation  of  the   domestic
 2             violence; or
 3                  (D)  evidence   of  domestic  violence  from  a
 4             counselor, social worker, health worker or  domestic
 5             violence shelter worker.
 6        (b)  If  the  individual  does not meet the provisions of
 7    subparagraph (a),  the  individual  shall  be  held  to  have
 8    voluntarily   terminated   employment   for  the  purpose  of
 9    determining  the  individual's   eligibility   for   benefits
10    pursuant to subsection A.
11        (c)  Notwithstanding any other provision to the contrary,
12    evidence  of  domestic violence experienced by an individual,
13    including  the  individual's  statement   and   corroborating
14    evidence,  shall  not  be  disclosed by the Department unless
15    consent for disclosure is given by the individual.
16    (Source: P.A. 83-197.)

17        (820 ILCS 405/1400.1 new)
18        Sec.  1400.1.  Solvency  Adjustments.  As  used  in  this
19    Section, "prior year's trust  fund  balance"  means  the  net
20    amount  standing to the credit of this State's account in the
21    unemployment trust fund (less  all  outstanding  advances  to
22    that  account, including but not limited to advances pursuant
23    to Title XII of the federal Social Security Act) as  of  June
24    30 of the immediately preceding calendar year.
25        The  wage base adjustment, rate adjustment, and allowance
26    adjustment applicable to any  calendar  year  after  calendar
27    year 2009 shall be as follows:
28        If  the  prior  year's  trust  fund  balance is less than
29    $300,000,000, the wage base adjustment  shall  be  $220,  the
30    rate  adjustment shall be 0.05%, and the allowance adjustment
31    shall be -0.3% absolute.
32        If the prior year's trust fund balance  is  equal  to  or
33    greater  than  $300,000,000  but  less than $700,000,000, the
 
HB0810 Enrolled            -38-      LRB093 05611 WGH 05704 b
 1    wage base adjustment shall be $150, the rate adjustment shall
 2    be 0.025%,  and  the  allowance  adjustment  shall  be  -0.2%
 3    absolute.
 4        If  the  prior  year's  trust fund balance is equal to or
 5    greater than $700,000,000 but less than  $1,000,000,000,  the
 6    wage  base adjustment shall be $75, the rate adjustment shall
 7    be 0, and the allowance adjustment shall be -0.1% absolute.
 8        If the prior year's trust fund balance  is  equal  to  or
 9    greater than $1,000,000,000 but less than $1,300,000,000, the
10    wage base adjustment shall be -$75, the rate adjustment shall
11    be 0, and the allowance adjustment shall be 0.1% absolute.
12        If  the  prior  year's  trust fund balance is equal to or
13    greater than $1,300,000,000 but less than $1,700,000,000, the
14    wage base adjustment shall  be  -$150,  the  rate  adjustment
15    shall  be -0.025%, and the allowance adjustment shall be 0.2%
16    absolute.
17        If the prior year's trust fund balance  is  equal  to  or
18    greater  than  $1,700,000,000, the wage base adjustment shall
19    be -$220, the  rate  adjustment  shall  be  -0.05%,  and  the
20    allowance adjustment shall be 0.3% absolute.

21        (820 ILCS 405/1401) (from Ch. 48, par. 551)
22        Sec.  1401.  Interest. Any employer who shall fail to pay
23    any contributions (including  any  amounts  due  pursuant  to
24    Section 1506.3 or Section 1506.4) when required of him by the
25    provisions  of  this Act and the rules and regulations of the
26    Director,  whether  or  not  the  amount  thereof  has   been
27    determined  and  assessed  by  the Director, shall pay to the
28    Director, in addition to such contribution, interest  thereon
29    at  the  rate of one percent (1%) per month and one-thirtieth
30    (1/30) of one percent (1%) for each day or  fraction  thereof
31    computed  from  the  day  upon which said contribution became
32    due. After 1981, such interest shall accrue at the rate of 2%
33    per month, computed at the rate of 12/365 of 2% for each  day
 
HB0810 Enrolled            -39-      LRB093 05611 WGH 05704 b
 1    or  fraction  thereof,  upon  any  unpaid contributions which
 2    become due, provided that, after 1987, for the   purposes  of
 3    calculating  interest  due  under this Section only, payments
 4    received more than 30 days after  such  contributions  become
 5    due  shall  be  deemed  received on the last day of the month
 6    preceding the month in which they were received except  that,
 7    if  the last day of such preceding month is less than 30 days
 8    after the date that such contributions became due, then  such
 9    payments  shall  be  deemed to have been received on the 30th
10    day after the date such contributions became due.
11        However, all or part of any interest may be waived by the
12    Director for good cause shown.
13    (Source: P.A. 85-956; 86-1367.)

14        (820 ILCS 405/1502.1) (from Ch. 48, par. 572.1)
15        Sec. 1502.1.  Employer's benefit charges.
16        A.  Benefit charges which result  from  payments  to  any
17    claimant made on or after July 1, 1989 shall be charged:
18             1.  For  benefit  years  beginning  prior to July 1,
19        1989, to each employer who paid  wages  to  the  claimant
20        during his base period;
21             2.  For  benefit years beginning on or after July 1,
22        1989 but before January 1, 1993, to the later of:
23                  a.  the last employer prior to the beginning of
24             the claimant's benefit year:
25                       i.  from whom the claimant  was  separated
26                  or  who,  by  reduction of work offered, caused
27                  the claimant to become unemployed as defined in
28                  Section 239, and,
29                       ii.  for  whom  the   claimant   performed
30                  services  in  employment,  on  each  of 30 days
31                  whether  or  not  such  days  are  consecutive,
32                  provided that the wages for such services  were
33                  earned  during the period from the beginning of
 
HB0810 Enrolled            -40-      LRB093 05611 WGH 05704 b
 1                  the claimant's base period to the beginning  of
 2                  the  claimant's benefit year; but that employer
 3                  shall not be charged if:
 4                            (1)  the claimant's  last  separation
 5                       from that employer was a voluntary leaving
 6                       without good cause, as the term is used in
 7                       Section  601A  or  under the circumstances
 8                       described in paragraphs 1 and 2 of Section
 9                       601B; or
10                            (2)  the claimant's  last  separation
11                       from  that  employer  was  a discharge for
12                       misconduct or a felony or theft  connected
13                       with his work from that employer, as these
14                       terms are used in Section 602; or
15                            (3)  after  his  last separation from
16                       that employer, prior to the  beginning  of
17                       his  benefit year, the claimant refused to
18                       accept  an  offer  of  or  to  apply   for
19                       suitable  work  from that employer without
20                       good cause, as these  terms  are  used  in
21                       Section 603; or
22                            (4)  the claimant, following his last
23                       separation  from  that  employer, prior to
24                       the beginning  of  his  benefit  year,  is
25                       ineligible  or  would have been ineligible
26                       under Section 612 if he  has  or  had  had
27                       base  period  wages  from the employers to
28                       which that Section applies; or
29                            (5)  the    claimant     subsequently
30                       performed  services  for  at least 30 days
31                       for an  individual or  organization  which
32                       is not an employer subject to this Act; or
33                  b.  the  single  employer who pays wages to the
34             claimant that allow him to  requalify  for  benefits
 
HB0810 Enrolled            -41-      LRB093 05611 WGH 05704 b
 1             after  disqualification  under  Section  601, 602 or
 2             603, if:
 3                       i.  the disqualifying event occurred prior
 4                  to the  beginning  of  the  claimant's  benefit
 5                  year, and
 6                       ii.  the  requalification  occurred  after
 7                  the  beginning  of the claimant's benefit year,
 8                  and
 9                       iii.  even if the 30 day requirement given
10                  in this paragraph is not satisfied; but
11                       iv.  the requalifying employer  shall  not
12                  be  charged  if the claimant is held ineligible
13                  with  respect  to  that  requalifying  employer
14                  under Section 601, 602 or 603.
15             3.  For benefit years beginning on or after  January
16        1, 1993, with respect to each week for which benefits are
17        paid, to the later of:
18                  a.  the last employer:
19                       i.  from  whom  the claimant was separated
20                  or who, by reduction of  work  offered,  caused
21                  the claimant to become unemployed as defined in
22                  Section 239, and
23                       ii.  for   whom   the  claimant  performed
24                  services in employment,  on  each  of  30  days
25                  whether  or  not  such  days  are  consecutive,
26                  provided  that the wages for such services were
27                  earned since the beginning  of  the  claimant's
28                  base  period;  but  that  employer shall not be
29                  charged if:
30                            (1)  the claimant's  separation  from
31                       that  employer  was  a  voluntary  leaving
32                       without good cause, as the term is used in
33                       Section  601A  or  under the circumstances
34                       described in paragraphs 1, and 2, and 6 of
 
HB0810 Enrolled            -42-      LRB093 05611 WGH 05704 b
 1                       Section 601B; or
 2                            (2)  the claimant's  separation  from
 3                       that   employer   was   a   discharge  for
 4                       misconduct or a felony or theft  connected
 5                       with his work from that employer, as these
 6                       terms are used in Section 602; or
 7                            (3)  the  claimant  refused to accept
 8                       an offer of or to apply for suitable  work
 9                       from  that employer without good cause, as
10                       these terms are used in Section  603  (but
11                       only  for  weeks  following the refusal of
12                       work); or
13                            (4)  the    claimant     subsequently
14                       performed  services  for  at least 30 days
15                       for an individual or organization which is
16                       not an employer subject to this Act; or
17                            (5)  the  claimant,   following   his
18                       separation    from   that   employer,   is
19                       ineligible or would have  been  ineligible
20                       under  Section  612  if  he has or had had
21                       base period wages from  the  employers  to
22                       which  that  Section applies (but only for
23                       the period of ineligibility  or  potential
24                       ineligibility); or
25                  b.  the  single  employer who pays wages to the
26             claimant that allow him to  requalify  for  benefits
27             after  disqualification  under  Section 601, 602, or
28             603, even if the 30 day requirement  given  in  this
29             paragraph  is  not  satisfied;  but the requalifying
30             employer shall not be charged  if  the  claimant  is
31             held  ineligible  with  respect to that requalifying
32             employer under Section 601, 602, or 603.
33        B.  Whenever a claimant is ineligible pursuant to Section
34    614 on the basis of wages paid during his  base  period,  any
 
HB0810 Enrolled            -43-      LRB093 05611 WGH 05704 b
 1    days  on which such wages were earned shall not be counted in
 2    determining whether that claimant performed  services  during
 3    at  least  30  days  for the employer that paid such wages as
 4    required by paragraphs 2 and 3 of subsection A.
 5        C.  If no employer meets the requirements of paragraph  2
 6    or 3 of subsection A, then no employer will be chargeable for
 7    any benefit charges which result from the payment of benefits
 8    to the claimant for that benefit year.
 9        D.  Notwithstanding  the  preceding  provisions  of  this
10    Section,  no  employer  shall  be  chargeable for any benefit
11    charges which result from the  payment  of  benefits  to  any
12    claimant  after  the effective date of this amendatory Act of
13    1992 where  the  claimant's  separation  from  that  employer
14    occurred  as  a  result  of  his detention, incarceration, or
15    imprisonment under State, local, or federal law.
16        E.  For the purposes of Sections  302,  409,  701,  1403,
17    1404, 1405 and 1508.1, last employer means the employer that:
18             1.  is  charged  for  benefit  payments which become
19        benefit charges under this Section, or
20             2.  would have been liable for such benefit  charges
21        if  it  had  not  elected  to  make  payments  in lieu of
22        contributions.
23    (Source: P.A. 86-3; 87-1178.)

24        (820 ILCS 405/1505) (from Ch. 48, par. 575)
25        Sec. 1505.  Adjustment of state  experience  factor.  The
26    state  experience factor shall be adjusted in accordance with
27    the following provisions:
28        A.  This subsection shall apply  to  each  calendar  year
29    prior  to  1980  for which a state experience factor is being
30    determined.
31        For every $7,000,000 (or fraction thereof) by  which  the
32    amount  standing to the credit of this State's account in the
33    unemployment trust fund as of June 30 of  the  calendar  year
 
HB0810 Enrolled            -44-      LRB093 05611 WGH 05704 b
 1    immediately  preceding  the calendar year for which the state
 2    experience   factor   is   being   determined   falls   below
 3    $450,000,000, the state experience factor for the  succeeding
 4    calendar year shall be increased 1 percent absolute.
 5        For  every  $7,000,000 (or fraction thereof) by which the
 6    amount standing to the credit of this State's account in  the
 7    unemployment  trust  fund  as of June 30 of the calendar year
 8    immediately preceding the calendar year for which  the  state
 9    experience  factor  is being determined exceeds $450,000,000,
10    the state experience factor for the succeeding year shall  be
11    reduced 1 percent absolute.
12        B.  This  subsection  shall  apply  to the calendar years
13    1980 through 1987, for which the state experience  factor  is
14    being determined.
15        For  every $12,000,000 (or fraction thereof) by which the
16    amount standing to the credit of this State's account in  the
17    unemployment  trust  fund  as of June 30 of the calendar year
18    immediately preceding the calendar year for which  the  state
19    experience   factor   is   being   determined   falls   below
20    $750,000,000,  the state experience factor for the succeeding
21    calendar year shall be increased 1 percent absolute.
22        For every $12,000,000 (or fraction thereof) by which  the
23    amount  standing to the credit of this State's account in the
24    unemployment trust fund as of June 30 of  the  calendar  year
25    immediately  preceding  the calendar year for which the state
26    experience factor is being determined  exceeds  $750,000,000,
27    the  state experience factor for the succeeding year shall be
28    reduced 1 percent absolute.
29        C.  This subsection shall apply to the calendar year 1988
30    and each  calendar  year  thereafter,  for  which  the  state
31    experience factor is being determined.
32             1.  For  every  $50,000,000 (or fraction thereof) by
33        which the adjusted trust fund  balance  falls  below  the
34        target balance set forth in this subsection $750,000,000,
 
HB0810 Enrolled            -45-      LRB093 05611 WGH 05704 b
 1        the state experience factor for the succeeding year shall
 2        be increased one percent absolute.
 3             For every $50,000,000 (or fraction thereof) by which
 4        the  adjusted  trust  fund  balance  exceeds  the  target
 5        balance  set  forth  in this subsection $750,000,000, the
 6        state experience factor for the succeeding year shall  be
 7        decreased by one percent absolute.
 8             The  target  balance  in each calendar year prior to
 9        2003 is $750,000,000. The target balance in calendar year
10        2003 is $920,000,000. The target balance in calendar year
11        2004 is $960,000,000. The target balance in calendar year
12        2005 and each calendar year thereafter is $1,000,000,000.
13             2.  For the purposes of this subsection:
14             "Net trust fund balance" is the amount  standing  to
15        the  credit  of  this State's account in the unemployment
16        trust fund as of June 30 of the calendar year immediately
17        preceding the year for which a state experience factor is
18        being determined.
19             "Adjusted trust fund balance" is the net trust  fund
20        balance  minus  the  sum of the benefit reserves for fund
21        building for July 1, 1987 through June  30  of  the  year
22        prior  to  the year for which the state experience factor
23        is being determined.  The  adjusted  trust  fund  balance
24        shall   not   be   less  than  zero.   If  the  preceding
25        calculation results in a number which is less than  zero,
26        the amount by which it is less than zero shall reduce the
27        sum  of  the  benefit  reserves  for  fund  building  for
28        subsequent years.
29             For  the purpose of determining the state experience
30        factor for 1989 and for each  calendar  year  thereafter,
31        the  following "benefit reserves for fund building" shall
32        apply for each state  experience  factor  calculation  in
33        which that 12 month period is applicable:
34                  a.  For  the 12 month period ending on June 30,
 
HB0810 Enrolled            -46-      LRB093 05611 WGH 05704 b
 1             1988, the "benefit reserve for fund building"  shall
 2             be  8/104th  of the total benefits paid from January
 3             1, 1988 through June 30, 1988.
 4                  b.  For the 12 month period ending on June  30,
 5             1989,  the "benefit reserve for fund building" shall
 6             be the sum of:
 7                       i.  8/104ths of the  total  benefits  paid
 8                  from  July  1,  1988 through December 31, 1988,
 9                  plus
10                       ii.  4/108ths of the total  benefits  paid
11                  from January 1, 1989 through June 30, 1989.
12                  c.  For  the 12 month period ending on June 30,
13             1990, the "benefit reserve for fund building"  shall
14             be  4/108ths of the total benefits paid from July 1,
15             1989 through December 31, 1989.
16                  d.  For  1992  and  for  each   calendar   year
17             thereafter,  the "benefit reserve for fund building"
18             for the 12 month period ending on June 30, 1991  and
19             for each subsequent 12 month period shall be zero.
20             3.  Notwithstanding the preceding provisions of this
21        subsection,  for  calendar  years  1988 through 2003, the
22        state  experience  factor  shall  not  be  increased   or
23        decreased by more than 15 percent absolute.
24        D.  Notwithstanding  the  provisions of subsection C, the
25    adjusted state experience factor:
26             1.  Shall be 111 percent for calendar year 1988;
27             2.  Shall not be less than 75  percent  nor  greater
28        than  135  percent  for  calendar years year 1989 through
29        2003; and shall not be less than  75%  nor  greater  than
30        150%  for  calendar  year  2004  and  each  calendar year
31        thereafter;
32             3.  Shall not be decreased by more  than  5  percent
33        absolute  for  any  calendar  year, beginning in calendar
34        year 1989 and through calendar year 1992, by more than 6%
 
HB0810 Enrolled            -47-      LRB093 05611 WGH 05704 b
 1        absolute for calendar years 1993  through  1995,  and  by
 2        more  than  10%  absolute  for  calendar  years year 1999
 3        through 2003 and by more than 12% absolute  for  calendar
 4        year  2004  and  each  calendar year thereafter, from the
 5        adjusted state experience factor  of  the  calendar  year
 6        preceding  the calendar year for which the adjusted state
 7        experience factor is being determined;
 8             4.  Shall not be increased by more than 15% absolute
 9        for calendar year 1993, by more  than  14%  absolute  for
10        calendar  years  1994  and  1995,  and  by  more than 10%
11        absolute for calendar years year 1999 through 2003 and by
12        more than 16% absolute for calendar year  2004  and  each
13        calendar   year   thereafter,  from  the  adjusted  state
14        experience factor for the  calendar  year  preceding  the
15        calendar  year  for  which  the adjusted state experience
16        factor is being determined;
17             5.  Shall be 100% for calendar years 1996, 1997, and
18        1998.
19        E.  The amount standing to the  credit  of  this  State's
20    account in the unemployment trust fund as of June 30 shall be
21    deemed  to  include as part thereof (a) any amount receivable
22    on that date from any Federal governmental agency,  or  as  a
23    payment  in  lieu  of  contributions  under the provisions of
24    Sections 1403 and 1405 B and paragraph 2 of Section 302C,  in
25    reimbursement  of  benefits  paid  to  individuals,  and  (b)
26    amounts  credited  by  the  Secretary  of the Treasury of the
27    United States to this State's  account  in  the  unemployment
28    trust  fund  pursuant  to  Section  903 of the Federal Social
29    Security Act, as amended, including any  such  amounts  which
30    have  been appropriated by the General Assembly in accordance
31    with the  provisions  of  Section  2100  B  for  expenses  of
32    administration,  except any amounts which have been obligated
33    on or before that date pursuant to such appropriation.
34    (Source: P.A. 89-446, eff. 2-8-96.)
 
HB0810 Enrolled            -48-      LRB093 05611 WGH 05704 b
 1        (820 ILCS 405/1506.3) (from Ch. 48, par. 576.3)
 2        Sec.   1506.3.    Fund   building   rates   -   Temporary
 3    Administrative Funding.
 4        A.  Notwithstanding any other provision of this Act,  the
 5    following  fund  building  rates  shall  be in effect for the
 6    following calendar years:
 7        For each employer whose contribution rate for 1988, 1989,
 8    1990, the first, third, and fourth quarters  of  1991,  1992,
 9    1993, 1994, 1995, and 1997 through 2003 and any calendar year
10    thereafter  would, in the absence of this Section, be 0.2% or
11    higher, a contribution rate which is the sum of such rate and
12    a fund building rate of 0.4%;
13        For each employer whose contribution rate for the  second
14    quarter  of  1991  would,  in the absence of this Section, be
15    0.2% or higher, a contribution rate which is the sum of  such
16    rate and 0.3%;
17        For each employer whose contribution rate for 1996 would,
18    in  the  absence  of  this  Section,  be  0.1%  or  higher, a
19    contribution rate which is the sum of such rate and 0.4%;
20        For  each  employer  whose  contribution  rate  for  2004
21    through 2009 would, in the absence of this Section,  be  0.2%
22    or  higher, a contribution rate which is the sum of such rate
23    and the following: a fund building rate of 0.7% for  2004;  a
24    fund  building rate of 0.9% for 2005; a fund building rate of
25    0.8% for 2006 and 2007; a fund  building  rate  of  0.6%  for
26    2008; a fund building rate of 0.4% for 2009.
27        For  each  employer  whose contribution rate for 2010 and
28    any calendar year thereafter would, in the  absence  of  this
29    Section,  be 0.2% or higher, a contribution rate which is the
30    sum of such rate and a fund building rate equal to the sum of
31    the rate adjustment  applicable  to  that  year  pursuant  to
32    Section  1400.1,  plus  the  fund  building  rate  in  effect
33    pursuant  to  this  Section  for  the  immediately  preceding
34    calendar year. Notwithstanding any provision to the contrary,
 
HB0810 Enrolled            -49-      LRB093 05611 WGH 05704 b
 1    the  fund building rate in effect for any calendar year after
 2    calendar year 2009 shall not be less  than  0.4%  or  greater
 3    than 0.55%.
 4        Notwithstanding  the preceding paragraphs of this Section
 5    or any other provision of this Act, except for the provisions
 6    contained in Section 1500 pertaining to rates  applicable  to
 7    employers  classified  under the Standard Industrial Code, or
 8    another classification system sanctioned by the United States
 9    Department of Labor and prescribed by the Director  by  rule,
10    no  employer  whose  total wages for insured work paid by him
11    during any calendar quarter in 1988  and  any  calendar  year
12    thereafter are less than $50,000 shall pay contributions at a
13    rate   with   respect  to  such  quarter  which  exceeds  the
14    following: with respect  to  calendar  year  1988,  5%;  with
15    respect to 1989 and any calendar year thereafter, 5.4%.
16        Notwithstanding  the preceding paragraph of this Section,
17    or  any  other  provision  of   this   Act,   no   employer's
18    contribution rate with respect to calendar years 1993 through
19    1995  shall  exceed 5.4% if the employer ceased operations at
20    an Illinois  manufacturing  facility  in  1991  and  remained
21    closed  at that facility during all of 1992, and the employer
22    in 1993 commits to invest at least $5,000,000 for the purpose
23    of resuming operations at that  facility,  and  the  employer
24    rehires  during 1993 at least 250 of the individuals employed
25    by it at that facility during the one year  period  prior  to
26    the  cessation  of  its  operations, provided that, within 30
27    days after the effective date of this amendatory Act of 1993,
28    the employer makes application to the Department to have  the
29    provisions  of  this  paragraph apply to it.  The immediately
30    preceding sentence shall be null and void with respect to  an
31    employer  which  by  December  31, 1993 has not satisfied the
32    rehiring requirement specified by this paragraph or which  by
33    December  31,  1994  has not made the investment specified by
34    this  paragraph.   All  payments  attributable  to  the  fund
 
HB0810 Enrolled            -50-      LRB093 05611 WGH 05704 b
 1    building rate  established  pursuant  to  this  Section  with
 2    respect  to  the  fourth  quarter  of calendar year 2003, the
 3    first quarter of calendar year 2004 and any calendar  quarter
 4    thereafter  as  of  the  close of which there are either bond
 5    obligations outstanding pursuant to the Illinois Unemployment
 6    Insurance Trust  Fund  Financing  Act,  or  bond  obligations
 7    anticipated  to  be outstanding as of either or both of the 2
 8    immediately succeeding calendar quarters, shall  be  directed
 9    for deposit into the Master Bond Fund.
10        B.  Notwithstanding  any other provision of this Act, for
11    the second quarter of 1991, the  contribution  rate  of  each
12    employer  as  determined  in  accordance  with Sections 1500,
13    1506.1, and subsection A of this Section shall  be  equal  to
14    the  sum of such rate and 0.1%; provided that this subsection
15    shall not apply to any employer  whose  rate  computed  under
16    Section  1506.1  for  such  quarter is between 5.1% and 5.3%,
17    inclusive, and  who  qualifies  for  the  5.4%  rate  ceiling
18    imposed  by  the  last  paragraph  of  subsection  A for such
19    quarter.  All payments made pursuant to this subsection shall
20    be deposited in the Employment Security  Administrative  Fund
21    established   under   Section   2103.1   and   used  for  the
22    administration of this Act.
23        C.  Payments  received  by   the   Director   which   are
24    insufficient to pay the total contributions due under the Act
25    shall  be first applied to satisfy the amount due pursuant to
26    subsection B.
27        C-1.  Payments received by the Director with  respect  to
28    the  fourth  quarter of calendar year 2003, the first quarter
29    of calendar year 2004 and any calendar quarter thereafter  as
30    of  the  close  of  which  there  are either bond obligations
31    outstanding pursuant to the Illinois  Unemployment  Insurance
32    Trust  Fund Financing Act, or bond obligations anticipated to
33    be outstanding as of either or  both  of  the  2  immediately
34    succeeding  calendar  quarters, shall, to the extent they are
 
HB0810 Enrolled            -51-      LRB093 05611 WGH 05704 b
 1    insufficient to pay the total amount due under the  Act  with
 2    respect  to  the  quarter,  be  first  applied to satisfy the
 3    amount due with respect to that quarter and  attributable  to
 4    the  fund building rate established pursuant to this Section.
 5    Notwithstanding any other provision  to  the  contrary,  with
 6    respect  to  an employer whose contribution rate with respect
 7    to a quarter subject to this subsection would  have  exceeded
 8    5.4%  but  for  the  5.4%  rate  ceiling  imposed pursuant to
 9    subsection A, the amount due from the employer  with  respect
10    to  that  quarter  and attributable to the fund building rate
11    established pursuant to subsection A shall equal the  amount,
12    if  any, by which the amount due and attributable to the 5.4%
13    rate  exceeds  the  amount  that  would  have  been  due  and
14    attributable to the employer's rate  determined  pursuant  to
15    Sections 1500 and 1506.1, without regard to the fund building
16    rate established pursuant to subsection A.
17        D.  All   provisions   of  this  Act  applicable  to  the
18    collection or refund of any contribution due under  this  Act
19    shall  be  applicable  to the collection or refund of amounts
20    due pursuant to subsection B and amounts directed pursuant to
21    this Section for deposit into the Master  Bond  Fund  to  the
22    extent   they   would   not   otherwise   be   considered  as
23    contributions.
24    (Source: P.A. 91-342, eff. 1-1-00.)

25        (820 ILCS 405/1507) (from Ch. 48, par. 577)
26        Sec.  1507.   Contribution   rates   of   successor   and
27    predecessor employing units.
28        A.  Whenever any employing unit succeeds to substantially
29    all  of  the employing enterprises of another employing unit,
30    then in determining contribution rates for any calendar year,
31    the experience rating record of the predecessor prior to  the
32    succession   shall   be  transferred  to  the  successor  and
33    thereafter it shall not be treated as the  experience  rating
 
HB0810 Enrolled            -52-      LRB093 05611 WGH 05704 b
 1    record  of  the predecessor, except as provided in subsection
 2    B. For the purposes of this Section, such  experience  rating
 3    record  shall consist of all years during which liability for
 4    the payment of contributions was incurred by the  predecessor
 5    prior  to  the succession, all benefit wages based upon wages
 6    paid by the predecessor prior to the succession, all  benefit
 7    charges  based  on  separations  from,  or reductions in work
 8    initiated by, benefits paid by the predecessor prior  to  the
 9    succession,  and  all  wages  for  insured  work  paid by the
10    predecessor prior to the succession.  This amendatory Act  of
11    the 93rd General Assembly is intended to be a continuation of
12    prior law.
13        B.  The provisions of this subsection shall be applicable
14    only  to  the  determination  of  contribution  rates for the
15    calendar year 1956 and for  each  calendar  year  thereafter.
16    Whenever  any  employing  unit has succeeded to substantially
17    all of the employing enterprises of another  employing  unit,
18    but  the  predecessor  employing unit has retained a distinct
19    severable portion of its employing  enterprises  or  whenever
20    any  employing  unit  has  succeeded  to a distinct severable
21    portion which is less than substantially all of the employing
22    enterprises  of  another  employing   unit,   the   successor
23    employing  unit  shall  acquire  the experience rating record
24    attributable to the portion to which it  has  succeeded,  and
25    the  predecessor  employing  unit shall retain the experience
26    rating record  attributable  to  the  portion  which  it  has
27    retained, if--
28             1.  It   files   a   written  application  for  such
29        experience rating  record  which  is  joined  in  by  the
30        employing  unit which is then entitled to such experience
31        rating record; and
32             2.  The joint application contains such  information
33        as  the Director shall by regulation prescribe which will
34        show that such experience rating record  is  identifiable
 
HB0810 Enrolled            -53-      LRB093 05611 WGH 05704 b
 1        and   segregable   and,   therefore,   capable  of  being
 2        transferred; and
 3             3.  The  joint  application  is   filed   prior   to
 4        whichever  of the following dates is the latest: (a) July
 5        1, 1956; (b) one year after the date of  the  succession;
 6        or  (c)  the  date  that  the  rate  determination of the
 7        employing unit which  has  applied  for  such  experience
 8        rating  record  has  become  final  for the calendar year
 9        immediately following the  calendar  year  in  which  the
10        succession   occurs.   The   filing  of  a  timely  joint
11        application shall not affect any rate determination which
12        has become final, as provided by Section 1509.
13        If all of the foregoing requirements are  met,  then  the
14    Director  shall transfer such experience rating record to the
15    employing unit which has applied therefor, and it  shall  not
16    be  treated  as the experience rating record of the employing
17    unit which has joined in the application.
18        Whenever any employing unit is reorganized  into  two  or
19    more  employing  units,  and  any of such employing units are
20    owned or controlled by the  same  interests  which  owned  or
21    controlled  the  predecessor prior to the reorganization, and
22    the provisions of this subsection become applicable  thereto,
23    then  such  affiliated  employing  units during the period of
24    their affiliation shall be treated as a single employing unit
25    for the purpose of determining their rates of contributions.
26        C.  For the calendar year in which  a  succession  occurs
27    which   results  in  the  total  or  partial  transfer  of  a
28    predecessor's  experience  rating  record,  the  contribution
29    rates of the parties  thereto  shall  be  determined  in  the
30    following manner:
31             1.  If  any  of such parties had a contribution rate
32        applicable  to  it  for  that  calendar  year,  it  shall
33        continue with such contribution rate.
34             2.  If  any  successor  had  no  contribution   rate
 
HB0810 Enrolled            -54-      LRB093 05611 WGH 05704 b
 1        applicable  to  it  for  that calendar year, and only one
 2        predecessor is involved, then the  contribution  rate  of
 3        the   successor   shall  be  the  same  as  that  of  its
 4        predecessor.
 5             3.  If  any  successor  had  no  contribution   rate
 6        applicable  to it for that calendar year, and two or more
 7        predecessors are involved, then the contribution rate  of
 8        the   successor   shall  be  computed,  on  the  combined
 9        experience rating records of the predecessors or  on  the
10        appropriate  part of such records if any partial transfer
11        is involved,  as  provided  in  Sections  1500  to  1507,
12        inclusive.
13             4.  Notwithstanding  the  provisions of paragraphs 2
14        and 3 of this subsection, if any succession occurs  prior
15        to the calendar year 1956 and the successor acquires part
16        of  the  experience  rating  record of the predecessor as
17        provided in  subsection  B  of  this  Section,  then  the
18        contribution rate of that successor for the calendar year
19        in which such succession occurs shall be 2.7 percent.
20    (Source: P.A. 90-554, eff. 12-12-97; 91-342, eff. 1-1-00.)

21        (820 ILCS 405/1511.1 new)
22        Sec.  1511.1.  Effects  of 2004 Solvency Legislation. The
23    Employment Security Advisory Board shall hold public hearings
24    on the  progress  toward  meeting  the  Trust  Fund  solvency
25    projections  made  in  accordance with this amendatory Act of
26    the 93d General Assembly. The hearings  shall  also  consider
27    issues   related  to  benefit  eligibility,  benefit  levels,
28    employer contributions, and future trust fund solvency goals.
29    The  Board  shall,   in   accordance   with   its   operating
30    resolutions, approve and report findings from the hearings to
31    the Illinois General Assembly by April 1, 2007. A copy of the
32    findings shall be available to the public on the Department's
33    website.
 
HB0810 Enrolled            -55-      LRB093 05611 WGH 05704 b
 1        (820 ILCS 405/2100) (from Ch. 48, par. 660)
 2        Sec. 2100.  Handling of funds - Bond - Accounts.
 3        A.   All   contributions   and   payments   in   lieu  of
 4    contributions collected under this  Act,  including  but  not
 5    limited to fund building receipts, together with any interest
 6    thereon;  all  penalties  collected pursuant to this Act; any
 7    property or securities acquired through the use thereof;  all
 8    moneys  advanced  to this State's account in the unemployment
 9    trust fund pursuant to the provisions of  Title  XII  of  the
10    Social  Security  Act,  as  amended;  all moneys directed for
11    transfer from the Master Bond Fund to this State's account in
12    the unemployment trust fund received  from  the  federal  tax
13    avoidance surcharge established by Section 1506.4; all moneys
14    received   from  the  Federal  government  as  reimbursements
15    pursuant  to  Section  204  of  the  Federal-State   Extended
16    Unemployment Compensation Act of 1970, as amended; all moneys
17    credited  to  this  State's account in the unemployment trust
18    fund pursuant to Section 903 of the Federal  Social  Security
19    Act,  as  amended;    and  all  earnings  of such property or
20    securities and any interest earned upon any such moneys shall
21    be paid or turned over  to  and  held  by  the  Director,  as
22    ex-officio   custodian   of   the   clearing   account,   the
23    unemployment  trust fund account and the benefit account, and
24    by the  State  Treasurer,  as  ex-officio  custodian  of  the
25    special  administrative  account, separate and apart from all
26    public  moneys  or  funds  of  this  State,  as   hereinafter
27    provided.   Such moneys shall be administered by the Director
28    exclusively for the purposes of this Act.
29        No such moneys shall be paid or expended except upon  the
30    direction of the Director in accordance with such regulations
31    as he shall prescribe pursuant to the provisions of this Act.
32        The  State  Treasurer  shall  be  liable  on  his general
33    official bond for the faithful performance of his  duties  in
34    connection  with  the  moneys  in  the special administrative
 
HB0810 Enrolled            -56-      LRB093 05611 WGH 05704 b
 1    account provided for under this Act.  Such liability  on  his
 2    official  bond  shall exist in addition to the liability upon
 3    any separate bond given  by  him.   All  sums  recovered  for
 4    losses  sustained  by  the account shall be deposited in that
 5    account.
 6        The Director shall be liable on his general official bond
 7    for the faithful performance of his duties in connection with
 8    the moneys in the clearing account, the benefit  account  and
 9    unemployment  trust fund account provided for under this Act.
10    Such liability on his official bond shall exist  in  addition
11    to  the  liability  upon any separate bond given by him.  All
12    sums recovered  for  losses  sustained  by  any  one  of  the
13    accounts  shall  be  deposited  in the account that sustained
14    such loss.
15        The Treasurer shall maintain for such  moneys  a  special
16    administrative  account.    The  Director  shall maintain for
17    such moneys  3  separate  accounts:  a  clearing  account,  a
18    benefit  account and an unemployment trust fund account.  All
19    moneys payable under this Act  (except  moneys  requisitioned
20    from  this State's account in the unemployment trust fund and
21    deposited in the benefit account), including but not  limited
22    to  moneys directed for transfer from the Master Bond Fund to
23    this State's account in the  unemployment  trust  fund,  upon
24    receipt   thereof  by  the  Director,  shall  be  immediately
25    deposited in the clearing account; provided,  however,  that,
26    except as is otherwise provided in this Section, interest and
27    penalties  shall not be deemed a part of the clearing account
28    but shall be transferred immediately upon  clearance  thereof
29    to the special administrative account.
30        After clearance thereof, all other moneys in the clearing
31    account  shall  be immediately deposited by the Director with
32    the Secretary of the Treasury of the United States of America
33    to  the  credit  of  the  account  of  this  State   in   the
34    unemployment  trust fund, established and maintained pursuant
 
HB0810 Enrolled            -57-      LRB093 05611 WGH 05704 b
 1    to the Federal Social Security Act, as amended,  except  fund
 2    building  receipts,  which shall be deposited into the Master
 3    Bond Fund. The benefit account shall consist  of  all  moneys
 4    requisitioned  from  this State's account in the unemployment
 5    trust fund.  The moneys  in  the  benefit  account  shall  be
 6    expended  in  accordance  with  regulations prescribed by the
 7    Director and solely for the payment of benefits,  refunds  of
 8    contributions, interest and penalties under the provisions of
 9    the  Act,  the payment of health insurance in accordance with
10    Section 410 of this Act, and the transfer or payment of funds
11    to  any  Federal  or  State  agency  pursuant  to  reciprocal
12    arrangements  entered  into  by  the   Director   under   the
13    provisions  of  Section 2700E, except that moneys credited to
14    this State's account in the unemployment trust fund  pursuant
15    to  Section  903  of  the  Federal  Social  Security  Act, as
16    amended, shall be used exclusively as provided in  subsection
17    B.   For purposes of this Section only, to the extent allowed
18    by applicable legal requirements,  the  payment  of  benefits
19    includes  but  is  not limited to the payment of principal on
20    any  bonds  issued  pursuant  to  the  Illinois  Unemployment
21    Insurance Trust Fund Financing Act, exclusive of any interest
22    or administrative expenses in connection with the bonds.  The
23    Director shall, from  time  to  time,  requisition  from  the
24    unemployment  trust  fund  such  amounts,  not  exceeding the
25    amounts standing to the State's account therein, as he  deems
26    necessary  solely  for the payment of such benefits, refunds,
27    and funds, for a reasonable future period.  The Director,  as
28    ex-officio  custodian  of the benefit account, which shall be
29    kept separate and apart from all other public  moneys,  shall
30    issue  his  checks for the payment of such benefits, refunds,
31    health insurance and funds solely from the moneys so received
32    into the benefit account.  However, after January 1, 1987, no
33    check shall be drawn on such benefit account  unless  at  the
34    time  of  drawing there is sufficient money in the account to
 
HB0810 Enrolled            -58-      LRB093 05611 WGH 05704 b
 1    pay the check.  The Director shall  retain  in  the  clearing
 2    account  an  amount  of  interest  and penalties equal to the
 3    amount of interest and penalties  to  be  refunded  from  the
 4    benefit  account.   After  clearance  thereof,  the amount so
 5    retained shall be immediately deposited by the  Director,  as
 6    are  all  other  moneys  in  the  clearing  account, with the
 7    Secretary of the Treasury of the United States.  If,  at  any
 8    time,  an  insufficient  amount  of interest and penalties is
 9    available for retention in the clearing account, no refund of
10    interest or penalties shall be made from the benefit  account
11    until  a  sufficient amount is available for retention and is
12    so retained, or until the State Treasurer, upon the direction
13    of the Director,  transfers  to  the  Director  a  sufficient
14    amount from the special administrative account, for immediate
15    deposit in the benefit account.
16        Any balance of moneys requisitioned from the unemployment
17    trust  fund  which remains unclaimed or unpaid in the benefit
18    account after the expiration of the  period  for  which  such
19    sums   were  requisitioned  shall  either  be  deducted  from
20    estimates of and may be utilized for authorized  expenditures
21    during  succeeding  periods,  or,  in  the  discretion of the
22    Director, shall be redeposited  with  the  Secretary  of  the
23    Treasury  of  the  United States to the credit of the State's
24    account in the unemployment trust fund.
25        Moneys   in   the   clearing,   benefit    and    special
26    administrative  accounts  shall  not be commingled with other
27    State funds but they shall be deposited as  required  by  law
28    and maintained in separate accounts on the books of a savings
29    and loan association or bank.
30        No  bank  or  savings  and loan association shall receive
31    public funds as permitted by  this  Section,  unless  it  has
32    complied   with  the  requirements  established  pursuant  to
33    Section 6 of "An  Act  relating  to  certain  investments  of
34    public  funds by public agencies", approved July 23, 1943, as
 
HB0810 Enrolled            -59-      LRB093 05611 WGH 05704 b
 1    now or hereafter amended.
 2        B.  Moneys credited to the account of this State  in  the
 3    unemployment  trust  fund by the Secretary of the Treasury of
 4    the United States pursuant  to  Section  903  of  the  Social
 5    Security  Act  may be requisitioned from this State's account
 6    and used as authorized by Section 903.  Any interest required
 7    to be paid on advances under Title XII of the Social Security
 8    Act shall be paid in a timely manner and shall not  be  paid,
 9    directly   or  indirectly,  by  an  equivalent  reduction  in
10    contributions or  payments  in  lieu  of  contributions  from
11    amounts  in  this  State's  account in the unemployment trust
12    fund.   Such moneys may be requisitioned  and  used  for  the
13    payment  of  expenses incurred for the administration of this
14    Act, but only pursuant to a  specific  appropriation  by  the
15    General  Assembly  and  only if the expenses are incurred and
16    the moneys  are  requisitioned  after  the  enactment  of  an
17    appropriation law which:
18             1.  Specifies the purpose or purposes for which such
19        moneys   are  appropriated  and  the  amount  or  amounts
20        appropriated therefor;
21             2.  Limits the period within which such  moneys  may
22        be  obligated  to  a  period ending not more than 2 years
23        after the date of the enactment of the appropriation law;
24        and
25             3.  Limits the amount which may be obligated  during
26        any  fiscal  year  to an amount which does not exceed the
27        amount  by  which  (a)  the  aggregate  of  the   amounts
28        transferred  to  the  account  of  this State pursuant to
29        Section 903 of the Social Security Act  exceeds  (b)  the
30        aggregate  of  the amounts used by this State pursuant to
31        this Act and charged against the amounts  transferred  to
32        the account of this State.
33        For  purposes  of  paragraph (3) above, amounts obligated
34    for administrative  purposes  pursuant  to  an  appropriation
 
HB0810 Enrolled            -60-      LRB093 05611 WGH 05704 b
 1    shall  be chargeable against transferred amounts at the exact
 2    time the obligation  is  entered  into.   The  appropriation,
 3    obligation,  and  expenditure  or  other disposition of money
 4    appropriated under this subsection shall be accounted for  in
 5    accordance  with  standards  established by the United States
 6    Secretary of Labor.
 7        Moneys appropriated as provided herein for the payment of
 8    expenses of administration  shall  be  requisitioned  by  the
 9    Director  as  needed  for the payment of obligations incurred
10    under such appropriation. Upon requisition, such moneys shall
11    be deposited with the State Treasurer, who  shall  hold  such
12    moneys,  as  ex-officio custodian thereof, in accordance with
13    the requirements of Section 2103 and, upon the  direction  of
14    the  Director, shall make payments therefrom pursuant to such
15    appropriation.  Moneys so deposited  shall,  until  expended,
16    remain a part of the unemployment trust fund and, if any will
17    not be expended, shall be returned promptly to the account of
18    this State in the unemployment trust fund.
19        C.  The  Governor  is  authorized  to apply to the United
20    States Secretary of Labor for an advance or advances to  this
21    State's  account  in  the unemployment trust fund pursuant to
22    the conditions set forth in Title XII of the  Federal  Social
23    Security Act, as amended.  The amount of any such advance may
24    be repaid from this State's account in the unemployment trust
25    fund  provided  that  if  the  federal  penalty tax avoidance
26    surcharge established by Section 1506.4 is in effect for that
27    year, any outstanding advance  shall  first  be  repaid  from
28    amounts  in  this  State's  account in the unemployment trust
29    fund which were received from such surcharge by November 9 of
30    each year.
31    (Source: P.A. 91-342, eff. 1-1-00.)

32        (820 ILCS 405/2106.1 new)
33        Sec.  2106.1.  Master  Bond   Fund.   There   is   hereby
 
HB0810 Enrolled            -61-      LRB093 05611 WGH 05704 b
 1    established  the Master Bond Fund held by the Director or his
 2    or her designee as ex-officio custodian thereof separate  and
 3    apart  from  all  other  State  funds. The moneys in the Fund
 4    shall be used in accordance with  the  Illinois  Unemployment
 5    Insurance Trust Fund Financing Act.

 6        (820 ILCS 405/1506.4 rep.)
 7        (820 ILCS 405/2104 rep.)
 8        Section  13.4.  The Unemployment Insurance Act is amended
 9    by repealing Sections 1506.4 and 2104.

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