96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB5094

 

Introduced 1/29/2010, by Rep. Karen May

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 405/1500   from Ch. 48, par. 570

    Amends the Unemployment Insurance Act. Establishes employer contribution rates for each calendar year after calendar year 2009 if the employer failed to incur liability for the payment of contributions in one of the 3 immediately preceding calendar years.


LRB096 19258 RLC 34649 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5094 LRB096 19258 RLC 34649 b

1     AN ACT concerning employment.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Unemployment Insurance Act is amended by
5 changing Section 1500 as follows:
 
6     (820 ILCS 405/1500)  (from Ch. 48, par. 570)
7     Sec. 1500. Rate of contribution.
8     A. For the six months' period beginning July 1, 1937, and
9 for each of the calendar years 1938 to 1959, inclusive, each
10 employer shall pay contributions on wages at the percentages
11 specified in or determined in accordance with the provisions of
12 this Act as amended and in effect on July 11, 1957.
13     B. For the calendar years 1960 through 1983, each employer
14 shall pay contributions equal to 2.7 percent with respect to
15 wages for insured work paid during each such calendar year,
16 except that the contribution rate of each employer who has
17 incurred liability for the payment of contributions within each
18 of the three calendar years immediately preceding the calendar
19 year for which a rate is being determined, shall be determined
20 as provided in Sections 1501 to 1507, inclusive.
21     For the calendar year 1984 and each calendar year
22 thereafter, each employer shall pay contributions at a
23 percentage rate equal to the greatest of 2.7%, or 2.7%

 

 

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1 multiplied by the current adjusted State experience factor, as
2 determined for each calendar year by the Director in accordance
3 with the provisions of Sections 1504 and 1505, or the average
4 contribution rate for his major classification in the Standard
5 Industrial Code, or another classification sanctioned by the
6 United States Department of Labor and prescribed by the
7 Director by rule, with respect to wages for insured work paid
8 during such year. The Director of Employment Security shall
9 determine for calendar year 1984 and each calendar year
10 thereafter by a method pursuant to adopted rules each
11 individual employer's industrial code and the average
12 contribution rate for each major classification in the Standard
13 Industrial Code, or each other classification sanctioned by the
14 United States Department of Labor and prescribed by the
15 Director by rule. Notwithstanding the preceding provisions of
16 this paragraph, the contribution rate for calendar years 1984,
17 1985 and 1986 of each employer who has incurred liability for
18 the payment of contributions within each of the two calendar
19 years immediately preceding the calendar year for which a rate
20 is being determined, and the contribution rate for calendar
21 year 1987 and each calendar year thereafter of each employer
22 who has incurred liability for the payment of contributions
23 within each of the three calendar years immediately preceding
24 the calendar year for which a rate is being determined shall be
25 determined as provided in Sections 1501 to 1507.1, inclusive.
26 Provided, however, that the contribution rate for calendar

 

 

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1 years 1989 and 1990 of each employer who has had experience
2 with the risk of unemployment for at least 13 consecutive
3 months ending June 30 of the preceding calendar year shall be a
4 rate determined in accordance with this Section or a rate
5 determined as if it had been calculated in accordance with
6 Sections 1501 through 1507, inclusive, whichever is greater,
7 except that for purposes of calculating the benefit wage ratio
8 as provided in Section 1503, such benefit wage ratio shall be a
9 percentage equal to the total of benefit wages for the 12
10 consecutive calendar month period ending on the above preceding
11 June 30, divided by the total wages for insured work subject to
12 the payment of contributions under Sections 234, 235 and 245
13 for the same period and provided, further, however, that the
14 contribution rate for calendar year 1991 and for each calendar
15 year thereafter of each employer who has had experience with
16 the risk of unemployment for at least 13 consecutive months
17 ending June 30 of the preceding calendar year shall be a rate
18 determined in accordance with this Section or a rate determined
19 as if it had been calculated in accordance with Sections 1501
20 through 1507.1, inclusive, whichever is greater, except that
21 for purposes of calculating the benefit ratio as provided in
22 Section 1503.1, such benefit ratio shall be a percentage equal
23 to the total of benefit charges for the 12 consecutive calendar
24 month period ending on the above preceding June 30, multiplied
25 by the benefit conversion factor applicable to such year,
26 divided by the total wages for insured work subject to the

 

 

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1 payment of contributions under Sections 234, 235 and 245 for
2 the same period. Notwithstanding any other provision to the
3 contrary, for each calendar year after calendar year 2009, an
4 employer's contribution rate is the rate calculated pursuant to
5 paragraph 1 of Section 1506.1E if (1) the employer's
6 contribution rate for one or more preceding calendar years was
7 calculated in accordance with Sections 1501 through 1507,
8 inclusive; (2) for the last year for which the employer's
9 contribution rate was calculated in accordance with Sections
10 1501 through 1507, inclusive, the employer's contribution rate
11 was the rate established pursuant to paragraph 1 of Section
12 1506.1E, and (3) the employer's contribution rate for the year
13 for which the rate is being determined would have been the rate
14 calculated pursuant to paragraph 1 of Section 1506.1E but for
15 the employer's failure to incur liability for the payment of
16 contributions in one of the 3 immediately preceding calendar
17 years.
18     C. Except as expressly provided in this Act, the provisions
19 of Sections 1500 to 1510, inclusive, do not apply to any
20 nonprofit organization for any period with respect to which it
21 does not incur liability for the payment of contributions by
22 reason of having elected to make payments in lieu of
23 contributions, or to any political subdivision or municipal
24 corporation for any period with respect to which it is not
25 subject to payments in lieu of contributions under the
26 provisions of paragraph 1 of Section 302C by reason of having

 

 

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1 elected to make payments in lieu of contributions under
2 paragraph 2 of that Section or to any governmental entity
3 referred to in clause (B) of Section 211.1. Wages paid to an
4 individual which are subject to contributions under Section
5 1405 A, or on the basis of which benefits are paid to him which
6 are subject to payment in lieu of contributions under Sections
7 1403, 1404, or 1405 B, or under paragraph 2 of Section 302C,
8 shall not become benefit wages or benefit charges under the
9 provisions of Sections 1501 or 1501.1, respectively, except for
10 purposes of determining a rate of contribution for 1984 and
11 each calendar year thereafter for any governmental entity
12 referred to in clause (B) of Section 211.1 which does not elect
13 to make payments in lieu of contributions.
14     D. If an employer's business is closed solely because of
15 the entrance of one or more of the owners, partners, officers,
16 or the majority stockholder into the armed forces of the United
17 States, or of any of its allies, or of the United Nations, and,
18 if the business is resumed within two years after the discharge
19 or release of such person or persons from active duty in the
20 armed forces, the employer will be deemed to have incurred
21 liability for the payment of contributions continuously
22 throughout such period. Such an employer, for the purposes of
23 Section 1506.1, will be deemed to have paid contributions upon
24 wages for insured work during the applicable period specified
25 in Section 1503 on or before the date designated therein,
26 provided that no wages became benefit wages during the

 

 

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1 applicable period specified in Section 1503.
2 (Source: P.A. 94-301, eff. 1-1-06.)