Full Text of HB3220 99th General Assembly
HB3220sam001 99TH GENERAL ASSEMBLY | Sen. Daniel Biss Filed: 5/19/2015
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| 1 | | AMENDMENT TO HOUSE BILL 3220
| 2 | | AMENDMENT NO. ______. Amend House Bill 3220 on page 1 by | 3 | | replacing line 5 with the following:
| 4 | | "is amended by changing Sections 5, 16, 80, 85, and 90 as | 5 | | follows:
| 6 | | (820 ILCS 80/5) | 7 | | (This Section may contain text from a Public Act with a | 8 | | delayed effective date )
| 9 | | Sec. 5. Definitions. Unless the context requires a | 10 | | different meaning or as expressly provided in this Section, all | 11 | | terms shall have the same meaning as when used in a comparable | 12 | | context in the Internal Revenue Code. As used in this Act: | 13 | | "Board" means the Illinois Secure Choice Savings Board | 14 | | established under this Act. | 15 | | "Department" means the Department of Revenue. | 16 | | "Director" means the Director of Revenue. |
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| 1 | | "Employee" means any individual who is 18 years of age or | 2 | | older, who is employed by an employer, and who has wages that | 3 | | are allocable to Illinois during a calendar year under the | 4 | | provisions of Section 304(a)(2)(B) of the Illinois Income Tax | 5 | | Act. | 6 | | "Employer" means a person or entity engaged in a business, | 7 | | industry, profession, trade, or other enterprise in Illinois, | 8 | | whether for profit or not for profit, that (i) has at no time | 9 | | during the previous calendar year employed fewer than 25 | 10 | | employees in the State, (ii) has been in business at least 2 | 11 | | years, and (iii) has not offered a qualified retirement plan, | 12 | | including, but not limited to, a plan qualified under Section | 13 | | 401(a), Section 401(k), Section 403(a), Section 403(b), | 14 | | Section 408(k), Section 408(p), or Section 457(b) of the | 15 | | Internal Revenue Code of 1986 in the preceding 2 years. | 16 | | "Enrollee" means any employee who is enrolled in the | 17 | | Program.
| 18 | | "Fund" means the Illinois Secure Choice Savings Program | 19 | | Fund.
| 20 | | "Internal Revenue Code" means Internal Revenue Code of | 21 | | 1986, or any successor law, in effect for the calendar year.
| 22 | | "IRA" means a Roth IRA (individual retirement account) | 23 | | under Section 408A of the Internal Revenue Code.
| 24 | | "Participating employer" means an employer or small | 25 | | employer that provides a payroll deposit retirement savings | 26 | | arrangement as provided for by this Act for its employees who |
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| 1 | | are enrollees in the Program. | 2 | | "Payroll deposit retirement savings arrangement" means an | 3 | | arrangement by which a participating employer allows enrollees | 4 | | to remit payroll deduction contributions to the Program. | 5 | | "Program" means the Illinois Secure Choice Savings | 6 | | Program.
| 7 | | "Small employer" means a person or entity engaged in a | 8 | | business, industry, profession, trade, or other enterprise in | 9 | | Illinois, whether for profit or not for profit, that (i) | 10 | | employed less than 25 employees at any one time in the State | 11 | | throughout the previous calendar year, or (ii) has been in | 12 | | business less than 2 years, or both items (i) and (ii), but | 13 | | that notifies the Board Department that it is interested in | 14 | | being a participating employer. | 15 | | "Wages" means any compensation within the meaning of | 16 | | Section 219(f)(1) of the Internal Revenue Code that is received | 17 | | by an enrollee from a participating employer during the | 18 | | calendar year.
| 19 | | (Source: P.A. 98-1150, eff. 6-1-15.) | 20 | | (820 ILCS 80/16) | 21 | | (This Section may contain text from a Public Act with a | 22 | | delayed effective date )
| 23 | | Sec. 16. Illinois Secure Choice Administrative Fund. The | 24 | | Illinois Secure Choice Administrative Fund ("Administrative | 25 | | Fund") is created as a nonappropriated separate and apart trust |
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| 1 | | fund in the State Treasury. The Board shall use moneys in the | 2 | | Administrative Fund to pay for administrative expenses it | 3 | | incurs in the performance of its duties under this Act. The | 4 | | Board shall use moneys in the Administrative Fund to cover | 5 | | start-up administrative expenses it incurs in the performance | 6 | | of its duties under this Act. The Administrative Fund may | 7 | | receive any grants or other moneys designated for | 8 | | administrative purposes from the State, or any unit of federal | 9 | | or local government, or any other person, firm, partnership, or | 10 | | corporation. Any interest earnings that are attributable to | 11 | | moneys in the Administrative Fund must be deposited into the | 12 | | Administrative Fund. The State Treasurer shall be the | 13 | | administering agency for the Administrative Fund on behalf of | 14 | | the Board.
| 15 | | (Source: P.A. 98-1150, eff. 6-1-15.)"; and | 16 | | on page 2 by inserting immediately below line 25 the following: | 17 | | "(820 ILCS 80/85) | 18 | | (This Section may contain text from a Public Act with a | 19 | | delayed effective date )
| 20 | | Sec. 85. Penalties.
| 21 | | (a) An employer who fails without reasonable cause to | 22 | | enroll an employee in the Program within the time prescribed | 23 | | under Section 60 of this Act shall be subject to a penalty | 24 | | equal to:
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| 1 | | (1) $250 for each employee for each calendar year or | 2 | | portion of a calendar year during which the employee | 3 | | neither was enrolled in the Program nor had elected out of | 4 | | participation in the Program; or
| 5 | | (2) for each calendar year beginning after the date a | 6 | | penalty has been assessed with respect to an employee, $500 | 7 | | for any portion of that calendar year during which such | 8 | | employee continues to be unenrolled without electing out of | 9 | | participation in the Program.
| 10 | | (b) After determining that an employer is subject to | 11 | | penalty under this Section for a calendar year, the Department | 12 | | shall issue a notice of proposed assessment to such employer, | 13 | | stating the number of employees for which the penalty is | 14 | | proposed under item (1) of subsection (a) of this Section and | 15 | | the number of employees for which the penalty is proposed under | 16 | | item (2) of subsection (a) of this Section for such calendar | 17 | | year, and the total amount of penalties proposed.
| 18 | | Upon the expiration of 90 days after the date on which a | 19 | | notice of proposed assessment was issued, the penalties | 20 | | specified therein shall be deemed assessed, unless the employer | 21 | | had filed a protest with the Department under subsection (c) of | 22 | | this Section.
| 23 | | If, within 90 days after the date on which it was issued, a | 24 | | protest of a notice of proposed assessment is filed under | 25 | | subsection (c) of this Section, the penalties specified therein | 26 | | shall be deemed assessed upon the date when the decision of the |
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| 1 | | Department with respect to the protest becomes final. | 2 | | (c) A written protest against the proposed assessment shall | 3 | | be filed with the Department in such form as the Department may | 4 | | by rule prescribe, setting forth the grounds on which such | 5 | | protest is based. If such a protest is filed within 90 days | 6 | | after the date the notice of proposed assessment is issued, the | 7 | | Department shall reconsider the proposed assessment and shall | 8 | | grant the employer a hearing. As soon as practicable after such | 9 | | reconsideration and hearing, the Department shall issue a | 10 | | notice of decision to the employer, setting forth the | 11 | | Department's findings of fact and the basis of decision. The | 12 | | decision of the Department shall become final: | 13 | | (1) if no action for review of the decision is | 14 | | commenced under the Administrative Review Law, on the date | 15 | | on which the time for commencement of such review has | 16 | | expired; or
| 17 | | (2) if a timely action for review of the decision is | 18 | | commenced under the Administrative Review Law, on the date | 19 | | all proceedings in court for the review of such assessment | 20 | | have terminated or the time for the taking thereof has | 21 | | expired without such proceedings being instituted.
| 22 | | (d) As soon as practicable after the penalties specified in | 23 | | a notice of proposed assessment are deemed assessed, the | 24 | | Department shall give notice to the employer liable for any | 25 | | unpaid portion of such assessment, stating the amount due and | 26 | | demanding payment. If an employer neglects or refuses to pay |
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| 1 | | the entire liability shown on the notice and demand within 10 | 2 | | days after the notice and demand is issued, the unpaid amount | 3 | | of the liability shall be a lien in favor of the State of | 4 | | Illinois upon all property and rights to property, whether real | 5 | | or personal,
belonging to the employer, and the provisions in | 6 | | the Illinois Income Tax Act regarding liens, levies and | 7 | | collection actions with regard to assessed and unpaid | 8 | | liabilities under that Act, including the periods for taking | 9 | | any action, shall apply.
| 10 | | (e) An employer who has overpaid a penalty assessed under | 11 | | this Section may file a claim for refund with the Department. A | 12 | | claim shall be in writing in such form as the Department may by | 13 | | rule prescribe and shall state the specific grounds upon which | 14 | | it is founded. As soon as practicable after a claim for refund | 15 | | is filed, the Department shall examine it and either issue a | 16 | | refund or issue a notice of denial. If such a protest is filed, | 17 | | the Department shall reconsider the denial and grant the | 18 | | employer a hearing. As soon as practicable after such | 19 | | reconsideration and hearing, the Department shall issue a | 20 | | notice of decision to the employer. The notice shall set forth | 21 | | briefly the Department's findings of fact and the basis of | 22 | | decision in each case decided in whole or in part adversely to | 23 | | the employer. A denial of a claim for refund becomes final 90 | 24 | | days after the date of issuance of the notice of the denial | 25 | | except for such amounts denied as to which the employer has | 26 | | filed a protest with the Department. If a protest has been |
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| 1 | | timely filed, the decision of the Department shall become | 2 | | final:
| 3 | | (1) if no action for review of the decision is | 4 | | commenced under the Administrative Review Law, on the date | 5 | | on which the time for commencement of such review has | 6 | | expired; or
| 7 | | (2) if a timely action for review of the decision is | 8 | | commenced under the Administrative Review Law, on the date | 9 | | all proceedings in court for the review of such assessment | 10 | | have terminated or the time for the taking thereof has | 11 | | expired without such proceedings being instituted.
| 12 | | (f) No notice of proposed assessment may be issued with | 13 | | respect to a calendar year after June 30 of the fourth | 14 | | subsequent calendar year. No claim for refund may be filed more | 15 | | than 1 year after the date of payment of the amount to be | 16 | | refunded.
| 17 | | (g) The provisions of the Administrative Review Law and the | 18 | | rules adopted pursuant to it shall apply to and govern all | 19 | | proceedings for the judicial review of final decisions of the | 20 | | Department in response to a protest filed by the employer under | 21 | | subsections (c) and (e) of this Section. Final decisions of the | 22 | | Department shall constitute "administrative decisions" as | 23 | | defined in Section 3-101 of the Code of Civil Procedure.
The | 24 | | Department may adopt any rules necessary to carry out its | 25 | | duties pursuant to this Section. | 26 | | (h) Whenever notice is required by this Section, it may be |
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| 1 | | given or issued by mailing it by first-class mail addressed to | 2 | | the person concerned at his or her last known address.
| 3 | | (i) All books and records and other papers and documents | 4 | | relevant to the determination of any penalty due under this | 5 | | Section shall, at all times during business hours of the day, | 6 | | be subject to inspection by the Department or its duly | 7 | | authorized agents and employees.
| 8 | | (j) The Department may require employers to report | 9 | | information relevant to their compliance with this Act on | 10 | | returns otherwise due from the employers under Section 704A of | 11 | | the Illinois Income Tax Act and failure to provide the | 12 | | requested information on a return shall cause such return to be | 13 | | treated as unprocessable.
| 14 | | (k) For purposes of any provision of State law allowing the | 15 | | Department or any other agency of this State to offset an | 16 | | amount owed to a taxpayer against a tax liability of that | 17 | | taxpayer or allowing the Department to offset an overpayment of | 18 | | tax against any liability owed to the State, a penalty assessed | 19 | | under this Section shall be deemed to be a tax liability of the | 20 | | employer and any refund due to an employer shall be deemed to | 21 | | be an overpayment of tax of the employer.
| 22 | | (l) Except as provided in this subsection, all information | 23 | | received by the Department from returns filed by an employer or | 24 | | from any investigation conducted under the provisions of this | 25 | | Act shall be confidential, except for official purposes within | 26 | | the Department or pursuant to official procedures for |
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| 1 | | collection of penalties assessed under this Act. Nothing | 2 | | contained in this subsection shall prevent the Director from | 3 | | publishing or making available to the public reasonable | 4 | | statistics concerning the operation of this Act wherein the | 5 | | contents of returns are grouped into aggregates in such a way | 6 | | that the specific information of any employer shall not be | 7 | | disclosed. Nothing contained in this subsection shall prevent | 8 | | the Director from divulging information to an authorized | 9 | | representative of the employer or to any person pursuant to a | 10 | | request or authorization made by the employer or by an | 11 | | authorized representative of the employer.
| 12 | | (m) Civil penalties collected under this Act and fees | 13 | | collected pursuant to subsection (n) of this Section shall be | 14 | | deposited into the Tax Compliance and Administration Fund. The | 15 | | Department may, subject to appropriation, use moneys in the | 16 | | fund to cover expenses it incurs in the performance of its | 17 | | duties under this Act. Interest attributable to moneys in the | 18 | | Tax Compliance and Administration Fund shall be credited to the | 19 | | Tax Compliance and Administration Fund. | 20 | | (n) The Department may charge the Board a reasonable fee | 21 | | for its costs in performing its duties under this Section to | 22 | | the extent that such costs have not been recovered from | 23 | | penalties imposed under this Section.
| 24 | | (o) This Section shall become operative 9 months after the | 25 | | Board notifies the Director that the Program has been | 26 | | implemented. Upon receipt of such notification from the Board, |
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| 1 | | the Department shall immediately post on its Internet website a | 2 | | notice stating that this Section is operative and the date that | 3 | | it is first operative.
This notice shall include a statement | 4 | | that rather than enrolling employees in the Program under this | 5 | | Act, employers may sponsor an alternative arrangement, | 6 | | including, but not limited to, a defined benefit plan, 401(k) | 7 | | plan, a Simplified Employee Pension (SEP) plan, a Savings | 8 | | Incentive Match Plan for Employees (SIMPLE) plan, or an | 9 | | automatic payroll deduction IRA offered through a private | 10 | | provider. The Board shall provide a link to the vendor Internet | 11 | | website described in subsection (i) of Section 60 of this Act.
| 12 | | (Source: P.A. 98-1150, eff. 6-1-15.) | 13 | | (820 ILCS 80/90) | 14 | | (This Section may contain text from a Public Act with a | 15 | | delayed effective date )
| 16 | | Sec. 90. Rules. The Board and the State Treasurer | 17 | | Department shall adopt, in accordance with the Illinois | 18 | | Administrative Procedure Act, any rules that may be necessary | 19 | | to implement this Act.
| 20 | | (Source: P.A. 98-1150, eff. 6-1-15.) | 21 | | Section 99. Effective date. This Act takes effect on June | 22 | | 1, 2015.".
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