Full Text of SB1771 94th General Assembly
SB1771 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 SB1771
Introduced 2/25/2005, by Sen. James A. DeLeo SYNOPSIS AS INTRODUCED: |
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820 ILCS 405/1403 |
from Ch. 48, par. 553 |
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Amends the Unemployment Insurance Act. Provides that, on July 1, 2005 or as soon thereafter as may be reasonably practicable, all remaining funds in the State Employees' Unemployment Benefit Fund shall be transferred to the clearing account, and provides that the State Employees' Unemployment Benefit Fund is abolished upon the transfer of those funds. Provides that, on and after July 1, 2005, transfers to the clearing account for payment of benefits to individuals with respect to whom the State or its wholly owned instrumentalities
is the last employer shall be made directly from such funds and accounts as the appropriations to the Department of Employment Security authorize, as designated by the Director of Employment Security. Eliminates certain language regarding transfers in 1989 and earlier years, and makes other changes. Effective July 1, 2005.
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A BILL FOR
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SB1771 |
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LRB094 03704 WGH 33709 b |
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| AN ACT concerning unemployment insurance.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Unemployment Insurance Act is amended by | 5 |
| changing Section 1403 as follows:
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| (820 ILCS 405/1403) (from Ch. 48, par. 553)
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| Sec. 1403. Financing benefits paid to state employees. | 8 |
| Benefits paid
to individuals with respect to whom
on the basis | 9 |
| of wages paid to them for insured work in
the employ of this | 10 |
| State or any of its wholly owned instrumentalities
is the last | 11 |
| employer as provided in Section 1502.1 shall be financed by | 12 |
| appropriations to the Department of Employment
Security. There | 13 |
| is hereby established a special fund to be known as the
State | 14 |
| Employees' Unemployment Benefit Fund. Such Fund shall consist | 15 |
| of and
there shall be deposited in such Fund all moneys | 16 |
| appropriated to the
Department of Employment Security pursuant | 17 |
| to this Section, all
interest earned upon such moneys, any | 18 |
| property or securities acquired
through the use thereof, all | 19 |
| earnings of such property or securities,
and all other moneys | 20 |
| for the Fund received from any other source. The
Fund shall be | 21 |
| held by the State Treasurer, as ex-officio custodian thereof,
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| separate and apart from all public moneys or funds of this | 23 |
| State, but the
moneys in the Fund shall be deposited as | 24 |
| required by law and maintained in
a separate account on the | 25 |
| books of a savings and loan association or
bank. The Fund shall | 26 |
| be administered by the Director exclusively for the
purposes of | 27 |
| this Section. No moneys in the Fund shall be paid or
expended | 28 |
| except upon the direction of the Director exclusively for the
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| purposes of this Section.
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| The State Treasurer shall be liable on his general official | 31 |
| bond for
the faithful performance of his duties with regard to
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| as custodian of such moneys as
may come into his hands by |
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SB1771 |
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| virtue of this Section. Such liability on his
official bond | 2 |
| shall exist in addition to the liability upon any separate
bond | 3 |
| given by him. All sums recovered for losses sustained by the | 4 |
| clearing account
Fund
herein described shall be deposited | 5 |
| therein.
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| In lieu of contributions required of other employers under | 7 |
| this Act,
the State Treasurer, upon the direction of the | 8 |
| Director, shall transfer
to and deposit in the clearing account | 9 |
| established by Section 2100, an
amount equivalent to the amount | 10 |
| of regular benefits and one-half the
amount of extended | 11 |
| benefits (defined in Section 409) paid for weeks
which begin | 12 |
| before January 1, 1979, and to the amount of all benefits
paid | 13 |
| for weeks which begin on and after January 1, 1979, to | 14 |
| individuals
who, during there respective base periods, were | 15 |
| paid wages for insured
work by the State or any of its wholly | 16 |
| owned instrumentalities. If an
individual was paid such wages | 17 |
| during his base period both by the State
or any of such | 18 |
| instrumentalities and by one or more other employers,
the | 19 |
| amount to be so transferred by the State Treasurer with respect | 20 |
| to
such individual shall be a sum which bears the same ratio to | 21 |
| the total
benefits paid to the individual as the wages for | 22 |
| insured work paid to
the individual during his base period by | 23 |
| the State and any such
instrumentalities bear to the total | 24 |
| wages for insured work paid to the
individual during the base | 25 |
| period by all of the employers.
Notwithstanding the previous | 26 |
| provisions of this Section with respect to
benefit years | 27 |
| beginning prior to July 1, 1989, any adjustment after
September | 28 |
| 30, 1989 to the base period wages paid to the individual by any
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| employer shall not affect the ratio for determining the amount | 30 |
| to be
transferred to the clearing account by the State | 31 |
| Treasurer. Provided,
however, that with respect to benefit | 32 |
| years beginning on or after July 1,
1989, the State Treasurer | 33 |
| shall transfer to and deposit in the clearing
account an amount | 34 |
| equal to 100% of regular benefits, including dependents'
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| allowances, and 100% of extended benefits, including | 36 |
| dependents' allowances
paid to an individual, but only if the |
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| State: (a) is the last
employer as provided in Section 1502.1 | 2 |
| and (b) paid, to the individual
receiving benefits, wages for | 3 |
| insured work during his base period. If the
State meets the | 4 |
| requirements of (a) but not (b), with respect to benefit
years | 5 |
| beginning on or after July 1, 1989, it shall be required to | 6 |
| make
payments in an amount equal to 50% of regular benefits, | 7 |
| including
dependents' allowances, and 50% of extended | 8 |
| benefits, including dependents'
allowances, paid to an | 9 |
| individual.
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| On and after July 1, 2005, transfers to the clearing | 11 |
| account pursuant to this Section shall be made directly from | 12 |
| such funds and accounts as the appropriations to the Department | 13 |
| authorize, as designated by the Director. On July 1, 2005, or | 14 |
| as soon thereafter as may be reasonably practicable, all | 15 |
| remaining funds in the State Employees' Unemployment Benefit | 16 |
| Fund shall be transferred to the clearing account, and, upon | 17 |
| the transfer of those funds, the State Employees' Unemployment | 18 |
| Benefit Fund is abolished.
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| The Director shall ascertain the amount to be so | 20 |
| transferred and
deposited by the State Treasurer as soon as | 21 |
| practicable after the end of
each calendar quarter. The | 22 |
| provisions of paragraphs 4 and 5 of Section
1404B shall be | 23 |
| applicable to a determination of the amount to be so
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| transferred and deposited. Such deposit shall be made by the | 25 |
| State
Treasurer at such times and in such manner as the | 26 |
| Director may determine
and direct.
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| Every department, institution, agency and instrumentality | 28 |
| of the
State of Illinois shall make available to the Director | 29 |
| such information
with respect to any individual who has | 30 |
| performed insured work for it as
the Director may find | 31 |
| practicable and necessary for the determination of
such | 32 |
| individual's rights under this Act. Each such department,
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| institution, agency and instrumentality shall file such | 34 |
| reports with the
Director as he may by regulation prescribe.
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| (Source: P.A. 86-3.)
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| Section 99. Effective date. This Act takes effect July 1, | 2 |
| 2005.
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