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| [ Introduced ] | [ House Amendment 001 ] |
92_HB2935eng HB2935 Engrossed LRB9202351WHdv 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 5. The Unemployment Insurance Act is amended by 5 changing Sections 1403, 1404, 1405, 1501.1 and 1504 and 6 adding Section 409.1 as follows: 7 (820 ILCS 405/409.1 new) 8 Sec. 409.1. Additional Benefits. 9 A. For the purposes of this Section: 10 1. "Regular benefits", "extended benefits", and 11 "extended benefit period" have the meanings ascribed to 12 them under Section 409. 13 2. "Additional benefits" means benefits totally 14 financed by a State and payable to exhaustees (as defined 15 in subsection C). If an individual is eligible to receive 16 additional benefits under the provisions of this Section 17 and is eligible to receive additional benefits with 18 respect to the same week under the law of another State, 19 he may elect to claim additional benefits under either 20 State's law with respect to the week. 21 3. "Supplemental benefits" means any type of payment 22 to an individual, pursuant to federal law, with respect 23 to a week of unemployment, by virtue of the fact that 24 regular benefits are no longer payable to him under this 25 Act. 26 4. "Interstate Benefit Payment Plan" means the plan 27 approved by the National Association of State Workforce 28 Agencies under which benefits shall be payable to 29 unemployed individuals absent from the state (or states) 30 in which benefit credits have been accumulated. 31 5. "State" when used in this Section includes States HB2935 Engrossed -2- LRB9202351WHdv 1 of the United States of America, the District of 2 Columbia, Puerto Rico and the Virgin Islands. For 3 purposes of this Section, the term "state" shall also be 4 construed to include Canada. 5 6. Notwithstanding any of the provisions of Sections 6 1404, 1405B, and 1501, no employer shall be liable for 7 payments in lieu of contributions by reason of the 8 payment of additional benefits which are wholly 9 reimbursed to this State by the Federal Government. 10 Additional benefits shall become benefit charges under 11 Section 1501.1 only when an individual is paid such 12 benefits and they are not wholly reimbursed by the 13 Federal Government. 14 B. This Section applies only to an individual who becomes 15 an exhaustee in a week beginning on or after September 9, 16 2001, and before March 10, 2002. An individual to whom this 17 Section applies shall be eligible to receive additional 18 benefits pursuant to this Section for any week beginning 19 before June 9, 2002, if, with respect to such week he has 20 otherwise satisfied the terms and conditions with respect to 21 the receipt of regular benefits under this Act, including but 22 not limited to Sections 601, 602 and 603. 23 C. An individual is an exhaustee with respect to a week 24 if: 25 1. Prior to such week (a) he has received, with 26 respect to his current benefit year that includes such 27 week, the maximum total amount of benefits to which he 28 was entitled under the provisions of Section 403B, and 29 all of the regular benefits (including dependents' 30 allowances) to which he had entitlement (if any) on the 31 basis of wages or employment under any other State 32 unemployment compensation law; or (b) his benefit year 33 terminated, and he cannot meet the qualifying wage 34 requirements of Section 500E of this Act or the HB2935 Engrossed -3- LRB9202351WHdv 1 qualifying wage or employment requirements of any other 2 State unemployment compensation law to establish a new 3 benefit year which would include such week or, having 4 established a new benefit year that includes such week, 5 he is ineligible for regular benefits by reason of 6 Section 607 of this Act or a like provision of any other 7 State unemployment compensation law; and 8 2. For such week (a) he has no right to benefits or 9 allowances, as the case may be, under the Railroad 10 Unemployment Insurance Act and no rights to extended 11 benefits under Section 409 or any other state 12 unemployment insurance law consistent with the terms and 13 conditions of the Federal-State Unemployment Compensation 14 Act of 1970; and (b) he has not received and is not 15 seeking benefits under the unemployment compensation law 16 of Canada, except that if he is seeking such benefits and 17 the appropriate agency finally determines that he is not 18 entitled to benefits under such law, this clause shall 19 not apply. 20 For the purposes of clause (a) of paragraph 1, an 21 individual shall be deemed to have received, with respect to 22 his current benefit year, the maximum total amount of 23 benefits to which he was entitled or all of the regular 24 benefits to which he had entitlement, or all of the regular 25 benefits available to him, as the case may be, even though 26 (a) as a result of a pending reconsideration or appeal with 27 respect to the "finding" defined in Section 701, or of a 28 pending appeal with respect to wages or employment or both 29 under any other State unemployment compensation law, he may 30 subsequently be determined to be entitled to more regular 31 benefits; or (b) by reason of a seasonality provision in a 32 State unemployment compensation law which establishes the 33 weeks of the year for which regular benefits may be paid to 34 individuals on the basis of wages in seasonal employment he HB2935 Engrossed -4- LRB9202351WHdv 1 may be entitled to regular benefits for future weeks but such 2 benefits are not payable with respect to the week for which 3 he is claiming additional benefits, provided that he is 4 otherwise an exhaustee under the provisions of this 5 subsection with respect to his rights to regular benefits, 6 under such seasonality provision, during the portion of the 7 year in which that week occurs. 8 For the purposes of clause (a) of paragraph 1, an 9 individual is not an exhaustee if, with respect to his 10 current benefit year, any portion of his wage credits were 11 cancelled or any portion of his rights to regular benefits 12 were reduced by reason of the application of a 13 disqualification provision of a State unemployment 14 compensation law. For the purposes of clause (b) of paragraph 15 1, an individual is not an exhaustee if, with respect to his 16 last completed benefit year, any portion of his wage credits 17 were cancelled or any portion of his rights to regular 18 benefits were reduced by reason of the application of a 19 disqualification provision of a State unemployment 20 compensation law. 21 D. 1. The provisions of Section 607 and the waiting 22 period requirements of Section 500D shall not be applicable 23 to any week with respect to which benefits are otherwise 24 payable under this Section. 25 2. An individual shall not cease to be an exhaustee with 26 respect to any week solely because he meets the qualifying 27 wage requirements of Section 500E for a part of such week. 28 E. An exhaustee's "weekly additional benefit amount" for 29 a week shall be the same as his weekly benefit amount plus 30 dependents allowances during his benefit year which includes 31 such week or, if such week is not in a benefit year, during 32 his last completed benefit year. If the exhaustee had more 33 than one weekly benefit amount during his benefit year, his 34 weekly additional benefit amount with respect to such week HB2935 Engrossed -5- LRB9202351WHdv 1 shall be the latest of such weekly benefit amounts. 2 F. An eligible exhaustee shall be entitled to a maximum 3 total amount of additional benefits under this Section equal 4 to the lesser of the following amounts: 5 1. Fifty percent of the maximum total amount of 6 benefits to which he was entitled under Section 403B 7 during his applicable benefit year; or 8 2. Thirteen times his weekly additional benefit 9 amount as determined under subsection E. 10 G. 1. A claims adjudicator shall examine the first claim 11 filed by an individual for additional benefits under this 12 Section and, on the basis of the information in his 13 possession, shall make an "additional benefits finding". Such 14 finding shall state whether or not the individual became an 15 exhaustee within the period established by subsection B and, 16 if so, his weekly additional benefit amount and the maximum 17 total amount of additional benefits to which he is entitled. 18 The claims adjudicator shall promptly notify the individual 19 of his "additional benefits finding", and shall promptly 20 notify the individual's most recent employing unit and the 21 individual's last employer (referred to in Section 1502.1) 22 that the individual has filed a claim for additional 23 benefits. The claims adjudicator may reconsider his 24 "additional benefits finding" at any time within one year 25 after the last week with respect to which the individual 26 received additional benefits under this Section, and shall 27 promptly notify the individual of such reconsidered finding. 28 All of the provisions of this Act applicable to reviews from 29 findings or reconsidered findings made pursuant to Sections 30 701 and 703 which are not inconsistent with the provisions of 31 this subsection shall be applicable to reviews from 32 additional benefits findings and reconsidered additional 33 benefits findings. 34 2. If, pursuant to the reconsideration or appeal with HB2935 Engrossed -6- LRB9202351WHdv 1 respect to a "finding", referred to in paragraph 3 of 2 subsection C, an exhaustee is found to be entitled to more 3 regular benefits and, by reason thereof, is entitled to more 4 additional benefits, the claims adjudicator shall make a 5 reconsidered additional benefits finding and shall promptly 6 notify the exhaustee thereof. 7 H. The Director shall make an appropriate public 8 announcement of the additional benefits program under this 9 Section. 10 I. Notwithstanding any other provision of this Act, an 11 individual shall be eligible for a maximum of 2 weeks of 12 benefits payable under this Section after he files his 13 initial claim for additional benefits, under the Interstate 14 Benefit Payment Plan unless there exists an extended benefit 15 period in the state where such claim is filed. Such maximum 16 eligibility shall continue as long as the individual 17 continues to file his claim under the Interstate Benefit 18 Payment Plan, notwithstanding that the individual moves to 19 another state where an extended benefit period exists and 20 files for weeks prior to his initial Interstate claim in that 21 state. An individual who commutes from his state of residence 22 to work in Illinois and continues to reside in such state of 23 residence while filing his claim for unemployment insurance 24 under this Section of the Act shall not be considered filing 25 a claim under the Interstate Benefit Payment Plan so long as 26 he files his claim in and continues to report to the 27 employment office under the regulations applicable to 28 intrastate claimants in Illinois. 29 J. Subsection B is not applicable to any individual with 30 respect to any week with respect to which the individual has 31 a right to supplemental benefits or would have a right to 32 supplemental benefits but for subsection B. 33 K. The Director shall take any action or issue any 34 regulations necessary in the administration of this Section HB2935 Engrossed -7- LRB9202351WHdv 1 to ensure that its provisions are interpreted and applied so 2 as to meet the requirements for certification under Section 3 3304 of the Federal Unemployment Tax Act and Sections 302 and 4 303 of the Federal Social Security Act, as interpreted by the 5 United States Secretary of Labor or other appropriate Federal 6 agency. 7 (820 ILCS 405/1403) (from Ch. 48, par. 553) 8 Sec. 1403. Financing benefits paid to state employees. 9 Benefits paid to individuals on the basis of wages paid to 10 them for insured work in the employ of this State or any of 11 its wholly owned instrumentalities shall be financed by 12 appropriations to the Department of Employment Security. 13 There is hereby established a special fund to be known as the 14 State Employees' Unemployment Benefit Fund. Such Fund shall 15 consist of and there shall be deposited in such Fund all 16 moneys appropriated to the Department of Employment Security 17 pursuant to this Section, all interest earned upon such 18 moneys, any property or securities acquired through the use 19 thereof, all earnings of such property or securities, and all 20 other moneys for the Fund received from any other source. The 21 Fund shall be held by the State Treasurer, as ex-officio 22 custodian thereof, separate and apart from all public moneys 23 or funds of this State, but the moneys in the Fund shall be 24 deposited as required by law and maintained in a separate 25 account on the books of a savings and loan association or 26 bank. The Fund shall be administered by the Director 27 exclusively for the purposes of this Section. No moneys in 28 the Fund shall be paid or expended except upon the direction 29 of the Director exclusively for the purposes of this Section. 30 The State Treasurer shall be liable on his general 31 official bond for the faithful performance of his duties as 32 custodian of such moneys as may come into his hands by virtue 33 of this Section. Such liability on his official bond shall HB2935 Engrossed -8- LRB9202351WHdv 1 exist in addition to the liability upon any separate bond 2 given by him. All sums recovered for losses sustained by the 3 Fund herein described shall be deposited therein. 4 In lieu of contributions required of other employers 5 under this Act, the State Treasurer, upon the direction of 6 the Director, shall transfer to and deposit in the clearing 7 account established by Section 2100, an amount equivalent to 8 the amount of regular benefits and one-half the amount of 9 extended benefits (defined in Section 409) paid for weeks 10 which begin before January 1, 1979, and to the amount of all 11 benefits paid for weeks which begin on and after January 1, 12 1979, to individuals who, during there respective base 13 periods, were paid wages for insured work by the State or any 14 of its wholly owned instrumentalities. If an individual was 15 paid such wages during his base period both by the State or 16 any of such instrumentalities and by one or more other 17 employers, the amount to be so transferred by the State 18 Treasurer with respect to such individual shall be a sum 19 which bears the same ratio to the total benefits paid to the 20 individual as the wages for insured work paid to the 21 individual during his base period by the State and any such 22 instrumentalities bear to the total wages for insured work 23 paid to the individual during the base period by all of the 24 employers. Notwithstanding the previous provisions of this 25 Section with respect to benefit years beginning prior to July 26 1, 1989, any adjustment after September 30, 1989 to the base 27 period wages paid to the individual by any employer shall not 28 affect the ratio for determining the amount to be transferred 29 to the clearing account by the State Treasurer. Provided, 30 however, that with respect to benefit years beginning on or 31 after July 1, 1989, the State Treasurer shall transfer to and 32 deposit in the clearing account an amount equal to 100% of 33 regular or additional benefits, including dependents' 34 allowances, and 100% of extended benefits, including HB2935 Engrossed -9- LRB9202351WHdv 1 dependents' allowances paid to an individual, but only if the 2 State: (a) is the last employer as provided in Section 1502.1 3 and (b) paid, to the individual receiving benefits, wages for 4 insured work during his base period. If the State meets the 5 requirements of (a) but not (b), with respect to benefit 6 years beginning on or after July 1, 1989, it shall be 7 required to make payments in an amount equal to 50% of 8 regular or additional benefits, including dependents' 9 allowances, and 50% of extended benefits, including 10 dependents' allowances, paid to an individual. 11 The Director shall ascertain the amount to be so 12 transferred and deposited by the State Treasurer as soon as 13 practicable after the end of each calendar quarter. The 14 provisions of paragraphs 4 and 5 of Section 1404B shall be 15 applicable to a determination of the amount to be so 16 transferred and deposited. Such deposit shall be made by the 17 State Treasurer at such times and in such manner as the 18 Director may determine and direct. 19 Every department, institution, agency and instrumentality 20 of the State of Illinois shall make available to the Director 21 such information with respect to any individual who has 22 performed insured work for it as the Director may find 23 practicable and necessary for the determination of such 24 individual's rights under this Act. Each such department, 25 institution, agency and instrumentality shall file such 26 reports with the Director as he may by regulation prescribe. 27 (Source: P.A. 86-3.) 28 (820 ILCS 405/1404) (from Ch. 48, par. 554) 29 Sec. 1404. Payments in lieu of contributions by 30 nonprofit organizations. A. For the year 1972 and for each 31 calendar year thereafter, contributions shall accrue and 32 become payable, pursuant to Section 1400, by each nonprofit 33 organization (defined in Section 211.2) upon the wages paid HB2935 Engrossed -10- LRB9202351WHdv 1 by it with respect to employment after 1971, unless the 2 nonprofit organization elects, in accordance with the 3 provisions of this Section, to pay, in lieu of contributions, 4 an amount equal to the amount of regular benefits and 5 one-half the amount of extended benefits (defined in Section 6 409) paid to individuals, for any weeks which begin on or 7 after the effective date of the election, on the basis of 8 wages for insured work paid to them by such nonprofit 9 organization during the effective period of such election. 10 Notwithstanding the preceding provisions of this subsection 11 and the provisions of subsection D, with respect to benefit 12 years beginning prior to July 1, 1989, any adjustment after 13 September 30, 1989 to the base period wages paid to the 14 individual by any employer shall not affect the ratio for 15 determining the payments in lieu of contributions of a 16 nonprofit organization which has elected to make payments in 17 lieu of contributions. Provided, however, that with respect 18 to benefit years beginning on or after July 1, 1989, the 19 nonprofit organization shall be required to make payments 20 equal to 100% of regular or additional benefits, including 21 dependents' allowances, and 50% of extended benefits, 22 including dependents' allowances, paid to an individual with 23 respect to benefit years beginning during the effective 24 period of the election, but only if the nonprofit 25 organization: (a) is the last employer as provided in 26 Section 1502.1 and (b) paid to the individual receiving 27 benefits, wages for insured work during his base period. If 28 the nonprofit organization described in this paragraph meets 29 the requirements of (a) but not (b), with respect to benefit 30 years beginning on or after July 1, 1989, it shall be 31 required to make payments in an amount equal to 50% of 32 regular or additional benefits, including dependents' 33 allowances, and 25% of extended benefits, including 34 dependents' allowances, paid to an individual with respect to HB2935 Engrossed -11- LRB9202351WHdv 1 benefit years beginning during the effective period of the 2 election. 3 1. Any employing unit which becomes a nonprofit 4 organization on January 1, 1972, may elect to make payments 5 in lieu of contributions for not less than one calendar year 6 beginning with January 1, 1972, provided that it files its 7 written election with the Director not later than January 31, 8 1972. 9 2. Any employing unit which becomes a nonprofit 10 organization after January 1, 1972, may elect to make 11 payments in lieu of contributions for a period of not less 12 than one calendar year beginning as of the first day with 13 respect to which it would, in the absence of its election, 14 incur liability for the payment of contributions, provided 15 that it files its written election with the Director not 16 later than 30 days immediately following the end of the 17 calendar quarter in which it becomes a nonprofit 18 organization. 19 3. A nonprofit organization which has incurred liability 20 for the payment of contributions for at least 2 calendar 21 years and is not delinquent in such payment and in the 22 payment of any interest or penalties which may have accrued, 23 may elect to make payments in lieu of contributions beginning 24 January 1 of any calendar year, provided that it files its 25 written election with the Director prior to such January 1, 26 and provided, further, that such election shall be for a 27 period of not less than 2 calendar years. 28 4. An election to make payments in lieu of contributions 29 shall not terminate any liability incurred by an employer for 30 the payment of contributions, interest or penalties with 31 respect to any calendar quarter which ends prior to the 32 effective period of the election. 33 5. A nonprofit organization which has elected, pursuant 34 to paragraph 1, 2, or 3, to make payments in lieu of HB2935 Engrossed -12- LRB9202351WHdv 1 contributions may terminate the effective period of the 2 election as of January 1 of any calendar year subsequent to 3 the required minimum period of the election only if, prior to 4 such January 1, it files with the Director a written notice 5 to that effect. Upon such termination, the organization shall 6 become liable for the payment of contributions upon wages for 7 insured work paid by it on and after such January 1 and, 8 notwithstanding such termination, it shall continue to be 9 liable for payments in lieu of contributions with respect to 10 benefits paid to individuals on and after such January 1, 11 with respect to benefit years beginning prior to July 1, 12 1989, on the basis of wages for insured work paid to them by 13 the nonprofit organization prior to such January 1, and, with 14 respect to benefit years beginning after June 30, 1989, if 15 such employer was the last employer as provided in Section 16 1502.1 during a benefit year beginning prior to such January 17 1. 18 6. Written elections to make payments in lieu of 19 contributions and written notices of termination of election 20 shall be filed in such form and shall contain such 21 information as the Director may prescribe. Upon the filing of 22 such election or notice, the Director shall either order it 23 approved, or, if it appears to the Director that the 24 nonprofit organization has not filed such election or notice 25 within the time prescribed, he shall order it disapproved. 26 The Director shall serve notice of his order upon the 27 nonprofit organization. The Director's order shall be final 28 and conclusive upon the nonprofit organization unless, within 29 15 days after the date of mailing of notice thereof, the 30 nonprofit organization files with the Director an application 31 for its review, setting forth its reasons in support thereof. 32 Upon receipt of an application for review within the time 33 prescribed, the Director shall order it allowed, or shall 34 order that it be denied, and shall serve notice upon the HB2935 Engrossed -13- LRB9202351WHdv 1 nonprofit organization of his order. All of the provisions of 2 Section 1509, applicable to orders denying applications for 3 review of determinations of employers' rates of contribution 4 and not inconsistent with the provisions of this subsection, 5 shall be applicable to an order denying an application for 6 review filed pursuant to this subsection. 7 B. As soon as practicable following the close of each 8 calendar quarter, the Director shall mail to each nonprofit 9 organization which has elected to make payments in lieu of 10 contributions a Statement of the amount due from it for the 11 regular or additional benefits and one-half the extended 12 benefits paid (or the amounts otherwise provided for in 13 subsection A) during the calendar quarter, together with the 14 names of its workers or former workers and the amounts of 15 benefits paid to each of them during the calendar quarter, 16 with respect to benefit years beginning prior to July 1, 17 1989, on the basis of wages for insured work paid to them by 18 the nonprofit organization; or, with respect to benefit years 19 beginning after June 30, 1989, if such nonprofit organization 20 was the last employer as provided in Section 1502.1 with 21 respect to a benefit year beginning during the effective 22 period of the election. The amount due shall be payable, and 23 the nonprofit organization shall make payment of such amount 24 not later than 30 days after the date of mailing of the 25 Statement. The Statement shall be final and conclusive upon 26 the nonprofit organization unless, within 20 days after the 27 date of mailing of the Statement, the nonprofit organization 28 files with the Director an application for revision thereof. 29 Such application shall specify wherein the nonprofit 30 organization believes the Statement to be incorrect, and 31 shall set forth its reasons for such belief. All of the 32 provisions of Section 1508, applicable to applications for 33 revision of Statements of Benefit Wages and Statements of 34 Benefit Charges and not inconsistent with the provisions of HB2935 Engrossed -14- LRB9202351WHdv 1 this subsection, shall be applicable to an application for 2 revision of a Statement filed pursuant to this subsection. 3 1. Payments in lieu of contributions made by any 4 nonprofit organization shall not be deducted or deductible, 5 in whole or in part, from the remuneration of individuals in 6 the employ of the organization, nor shall any nonprofit 7 organization require or accept any waiver of any right under 8 this Act by an individual in its employ. The making of any 9 such deduction or the requirement or acceptance of any such 10 waiver is a Class A misdemeanor. Any agreement by an 11 individual in the employ of any person or concern to pay all 12 or any portion of a payment in lieu of contributions, 13 required under this Act from a nonprofit organization, is 14 void. 15 2. A nonprofit organization which fails to make any 16 payment in lieu of contributions when due under the 17 provisions of this subsection shall pay interest thereon at 18 the rates specified in Section 1401. A nonprofit organization 19 which has elected to make payments in lieu of contributions 20 shall be subject to the penalty provisions of Section 1402. 21 In the making of any payment in lieu of contributions or in 22 the payment of any interest or penalties, a fractional part 23 of a cent shall be disregarded unless it amounts to one-half 24 cent or more, in which case it shall be increased to one 25 cent. 26 3. All of the remedies available to the Director under 27 the provisions of this Act or of any other law to enforce the 28 payment of contributions, interest, or penalties under this 29 Act, including the making of determinations and assessments 30 pursuant to Section 2200, are applicable to the enforcement 31 of payments in lieu of contributions and of interest and 32 penalties, due under the provisions of this Section. For the 33 purposes of this paragraph, the term "contribution" or 34 "contributions" which appears in any such provision means HB2935 Engrossed -15- LRB9202351WHdv 1 "payment in lieu of contributions" or "payments in lieu of 2 contributions." The term "contribution" which appears in 3 Section 2800 also means "payment in lieu of contributions." 4 4. All of the provisions of Sections 2201 and 2201.1, 5 applicable to adjustment or refund of contributions, interest 6 and penalties erroneously paid and not inconsistent with the 7 provisions of this Section, shall be applicable to payments 8 in lieu of contributions erroneously made or interest or 9 penalties erroneously paid by a nonprofit organization. 10 5. Payment in lieu of contributions shall be due with 11 respect to any sum erroneously paid as benefits to an 12 individual unless such sum has been recouped pursuant to 13 Section 900 or has otherwise been recovered. If such payment 14 in lieu of contributions has been made, the amount thereof 15 shall be adjusted or refunded in accordance with the 16 provisions of paragraph 4 and Section 2201 if recoupment or 17 other recovery has been made. 18 6. A nonprofit organization which has elected to make 19 payments in lieu of contributions and thereafter ceases to be 20 an employer shall continue to be liable for payments in lieu 21 of contributions with respect to benefits paid to individuals 22 on and after the date it has ceased to be an employer, with 23 respect to benefit years beginning prior to July 1, 1989, on 24 the basis of wages for insured work paid to them by it prior 25 to the date it ceased to be an employer, and, with respect to 26 benefit years beginning after June 30, 1989, if such employer 27 was the last employer as provided in Section 1502.1 prior to 28 the date that it ceased to be an employer. 29 7. With respect to benefit years beginning prior to July 30 1, 1989, wages paid to an individual during his base period, 31 by a nonprofit organization which elects to make payments in 32 lieu of contributions, for less than full time work, 33 performed during the same weeks in the base period during 34 which the individual had other insured work, shall not be HB2935 Engrossed -16- LRB9202351WHdv 1 subject to payments in lieu of contributions (upon such 2 employer's request pursuant to the regulation of the 3 Director) so long as the employer continued after the end of 4 the base period, and continues during the applicable benefit 5 year, to furnish such less than full time work to the 6 individual on the same basis and in substantially the same 7 amount as during the base period. If the individual is paid 8 benefits with respect to a week (in the applicable benefit 9 year) after the employer has ceased to furnish the work 10 hereinabove described, the nonprofit organization shall be 11 liable for payments in lieu of contributions with respect to 12 the benefits paid to the individual after the date on which 13 the nonprofit organization ceases to furnish the work. 14 C. With respect to benefit years beginning prior to July 15 1, 1989, whenever benefits have been paid to an individual on 16 the basis of wages for insured work paid to him by a 17 nonprofit organization, and the organization incurred 18 liability for the payment of contributions on some of the 19 wages because only a part of the individual's base period was 20 within the effective period of the organization's written 21 election to make payments in lieu of contributions, the 22 organization shall pay an amount in lieu of contributions 23 which bears the same ratio to the total benefits paid to the 24 individual as the total wages for insured work paid to him 25 during the base period by the organization upon which it did 26 not incur liability for the payment of contributions (for the 27 aforesaid reason) bear to the total wages for insured work 28 paid to the individual during the base period by the 29 organization. 30 D. With respect to benefit years beginning prior to July 31 1, 1989, whenever benefits have been paid to an individual on 32 the basis of wages for insured work paid to him by a 33 nonprofit organization which has elected to make payments in 34 lieu of contributions, and by one or more other employers, HB2935 Engrossed -17- LRB9202351WHdv 1 the nonprofit organization shall pay an amount in lieu of 2 contributions which bears the same ratio to the total 3 benefits paid to the individual as the wages for insured work 4 paid to the individual during his base period by the 5 nonprofit organization bear to the total wages for insured 6 work paid to the individual during the base period by all of 7 the employers. If the nonprofit organization incurred 8 liability for the payment of contributions on some of the 9 wages for insured work paid to the individual, it shall be 10 treated, with respect to such wages, as one of the other 11 employers for the purposes of this paragraph. 12 E. Two or more nonprofit organizations which have 13 elected to make payments in lieu of contributions may file a 14 joint application with the Director for the establishment of 15 a group account, effective January 1 of any calendar year, 16 for the purpose of sharing the cost of benefits paid on the 17 basis of the wages for insured work paid by such nonprofit 18 organizations, provided that such joint application is filed 19 with the Director prior to such January 1. The application 20 shall identify and authorize a group representative to act as 21 the group's agent for the purposes of this paragraph, and 22 shall be filed in such form and shall contain such 23 information as the Director may prescribe. Upon his approval 24 of a joint application, the Director shall, by order, 25 establish a group account for the applicants and shall serve 26 notice upon the group's representative of such order. Such 27 account shall remain in effect for not less than 2 calendar 28 years and thereafter until terminated by the Director for 29 good cause or, as of the close of any calendar quarter, upon 30 application by the group. Upon establishment of the account, 31 the group shall be liable to the Director for payments in 32 lieu of contributions in an amount equal to the total amount 33 for which, in the absence of the group account, liability 34 would have been incurred by all of its members; provided, HB2935 Engrossed -18- LRB9202351WHdv 1 with respect to benefit years beginning prior to July 1, 2 1989, that the liability of any member to the Director with 3 respect to any payment in lieu of contributions, interest or 4 penalties not paid by the group when due with respect to any 5 calendar quarter shall be in an amount which bears the same 6 ratio to the total benefits paid during such quarter on the 7 basis of the wages for insured work paid by all members of 8 the group as the total wages for insured work paid by such 9 member during such quarter bear to the total wages for 10 insured work paid during the quarter by all members of the 11 group, and, with respect to benefit years beginning on or 12 after July 1, 1989, that the liability of any member to the 13 Director with respect to any payment in lieu of 14 contributions, interest or penalties not paid by the group 15 when due with respect to any calendar quarter shall be in an 16 amount which bears the same ratio to the total benefits paid 17 during such quarter to individuals with respect to whom any 18 member of the group was the last employer as provided in 19 Section 1502.1 as the total wages for insured work paid by 20 such member during such quarter bear to the total wages for 21 insured work paid during the quarter by all members of the 22 group. All of the provisions of this Section applicable to 23 nonprofit organizations which have elected to make payments 24 in lieu of contributions, and not inconsistent with the 25 provisions of this paragraph, shall apply to a group account 26 and, upon its termination, to each former member thereof. The 27 Director shall by regulation prescribe the conditions for 28 establishment, maintenance and termination of group accounts, 29 and for addition of new members to and withdrawal of active 30 members from such accounts. 31 F. Whenever service of notice is required by this 32 Section, such notice may be given and be complete by 33 depositing it with the United States Mail, addressed to the 34 nonprofit organization (or, in the case of a group account, HB2935 Engrossed -19- LRB9202351WHdv 1 to its representative) at its last known address. If such 2 organization is represented by counsel in proceedings before 3 the Director, service of notice may be made upon the 4 nonprofit organization by mailing the notice to such counsel. 5 (Source: P.A. 86-3.) 6 (820 ILCS 405/1405) (from Ch. 48, par. 555) 7 Sec. 1405. Financing Benefits for Employees of Local 8 Governments. A. For the year 1978 and for each calendar year 9 thereafter, contributions shall accrue and become payable, 10 pursuant to Section 1400, by each governmental entity (other 11 than the State of Illinois and its wholly owned 12 instrumentalities) referred to in clause (B) of Section 13 211.1, upon the wages paid by such entity with respect to 14 employment after 1977, unless the entity elects to make 15 payments in lieu of contributions pursuant to the provisions 16 of subsection B. Notwithstanding the provisions of Sections 17 1500 to 1510, inclusive, a governmental entity which has not 18 made such election shall, for liability for contributions 19 incurred prior to January 1, 1984, pay contributions equal to 20 1 percent with respect to wages for insured work paid during 21 each such calendar year or portion of such year as may be 22 applicable. As used in this subsection, the word "wages", 23 defined in Section 234, is subject to all of the provisions 24 of Section 235. 25 B. Any governmental entity subject to subsection A may 26 elect to make payments in lieu of contributions, in amounts 27 equal to the amounts of regular and extended benefits paid to 28 individuals, for any weeks which begin on or after the 29 effective date of the election, on the basis of wages for 30 insured work paid to them by the entity during the effective 31 period of such election. Notwithstanding the preceding 32 provisions of this subsection and the provisions of 33 subsection D of Section 1404, with respect to benefit years HB2935 Engrossed -20- LRB9202351WHdv 1 beginning prior to July 1, 1989, any adjustment after 2 September 30, 1989 to the base period wages paid to the 3 individual by any employer shall not affect the ratio for 4 determining payments in lieu of contributions of a 5 governmental entity which has elected to make payments in 6 lieu of contributions. Provided, however, that with respect 7 to benefit years beginning on or after July 1, 1989, the 8 governmental entity shall be required to make payments equal 9 to 100% of regular or additional benefits, including 10 dependents' allowances, and 100% of extended benefits, 11 including dependents' allowances, paid to an individual with 12 respect to benefit years beginning during the effective 13 period of the election, but only if the governmental entity: 14 (a) is the last employer as provided in Section 1502.1 and 15 (b) paid to the individual receiving benefits, wages for 16 insured work during his base period. If the governmental 17 entity described in this paragraph meets the requirements of 18 (a) but not (b), with respect to benefit years beginning on 19 or after July 1, 1989, it shall be required to make payments 20 in an amount equal to 50% of regular or additional benefits, 21 including dependents' allowances, and 50% of extended 22 benefits, including dependents' allowances, paid to an 23 individual with respect to benefit years beginning during the 24 effective period of the election. 25 1. Any such governmental entity which becomes an 26 employer on January 1, 1978 pursuant to Section 205 may elect 27 to make payments in lieu of contributions for not less than 28 one calendar year beginning with January 1, 1978, provided 29 that it files its written election with the Director not 30 later than January 31, 1978. 31 2. A governmental entity newly created after January 1, 32 1978, may elect to make payments in lieu of contributions for 33 a period of not less than one calendar year beginning as of 34 the first day with respect to which it would, in the absence HB2935 Engrossed -21- LRB9202351WHdv 1 of its election, incur liability for the payment of 2 contributions, provided that it files its written election 3 with the Director not later than 30 days immediately 4 following the end of the calendar quarter in which it has 5 been created. 6 3. A governmental entity which has incurred liability 7 for the payment of contributions for at least 2 calendar 8 years, and is not delinquent in such payment and in the 9 payment of any interest or penalties which may have accrued, 10 may elect to make payments in lieu of contributions beginning 11 January 1 of any calendar year, provided that it files its 12 written election with the Director prior to such January 1, 13 and provided, further, that such election shall be for a 14 period of not less than 2 calendar years. 15 4. An election to make payments in lieu of contributions 16 shall not terminate any liability incurred by a governmental 17 entity for the payment of contributions, interest or 18 penalties with respect to any calendar quarter which ends 19 prior to the effective period of the election. 20 5. The termination by a governmental entity of the 21 effective period of its election to make payments in lieu of 22 contributions, and the filing of and subsequent action upon 23 written notices of termination of election, shall be governed 24 by the provisions of paragraphs 5 and 6 of Section 1404A, 25 pertaining to nonprofit organizations. 26 6. With respect to benefit years beginning prior to July 27 1, 1989, wages paid to an individual during his base period 28 by a governmental entity which elects to make payments in 29 lieu of contributions for less than full time work, performed 30 during the same weeks in the base period during which the 31 individual had other insured work, shall not be subject to 32 payments in lieu of contribution (upon such employer's 33 request pursuant to the regulation of the Director) so long 34 as the employer continued after the end of the base period, HB2935 Engrossed -22- LRB9202351WHdv 1 and continues during the applicable benefit year, to furnish 2 such less than full time work to the individual on the same 3 basis and in substantially the same amount as during the base 4 period. If the individual is paid benefits with respect to a 5 week (in the applicable benefit year) after the employer has 6 ceased to furnish the work hereinabove described, the 7 governmental entity shall be liable for payments in lieu of 8 contributions with respect to the benefits paid to the 9 individual after the date on which the governmental entity 10 ceases to furnish the work. 11 C. As soon as practicable following the close of each 12 calendar quarter, the Director shall mail to each 13 governmental entity which has elected to make payments in 14 lieu of contributions a Statement of the amount due from it 15 for all the regular, additional, and extended benefits paid 16 during the calendar quarter, together with the names of its 17 workers or former workers and the amounts of benefits paid to 18 each of them during the calendar quarter with respect to 19 benefit years beginning prior to July 1, 1989, on the basis 20 of wages for insured work paid to them by the governmental 21 entity; or, with respect to benefit years beginning after 22 June 30, 1989, if such governmental entity was the last 23 employer as provided in Section 1502.1 with respect to a 24 benefit year beginning during the effective period of the 25 election. All of the provisions of subsection B of Section 26 1404 pertaining to nonprofit organizations, not inconsistent 27 with the preceding sentence, shall be applicable to payments 28 in lieu of contributions by a governmental entity. 29 D. The provisions of subsections C through F, inclusive, 30 of Section 1404, pertaining to nonprofit organizations, shall 31 be applicable to each governmental entity which has elected 32 to make payments in lieu of contributions. 33 (Source: P.A. 86-3.) HB2935 Engrossed -23- LRB9202351WHdv 1 (820 ILCS 405/1501.1) (from Ch. 48, par. 571.1) 2 Sec. 1501.1. Benefit charges. A. When an individual is 3 paid regular or additional benefits with respect to a week in 4 a benefit year which begins on or after July 1, 1989, an 5 amount equal to such regular or additional benefits, 6 including dependents' allowances, shall immediately become 7 benefit charges. 8 B. When an individual is paid regular benefits on or 9 after July 1, 1989, with respect to a week in a benefit year 10 which began prior to July 1, 1989, an amount equal to such 11 regular benefits, including dependents' allowances, shall 12 immediately become benefit charges. 13 C. When an individual is paid extended benefits with 14 respect to any week in his eligibility period beginning in a 15 benefit year which begins on or after July 1, 1989, an amount 16 equal to one-half of such extended benefits including 17 dependents' allowances, shall immediately become benefit 18 charges. 19 D. When an individual is paid extended benefits on or 20 after July 1, 1989, with respect to any week in his 21 eligibility period beginning in a benefit year which began 22 prior to July 1, 1989, an amount equal to one-half of such 23 extended benefits including dependents' allowances, shall 24 immediately become benefit charges. 25 E. Notwithstanding the foregoing subsections, the 26 payment of benefits shall not become benefit charges if, by 27 reason of the application of the third paragraph of Section 28 237, he is paid benefits based upon wages other than those 29 paid in a base period as defined in the second paragraph of 30 Section 237. 31 F. Notwithstanding the foregoing subsections, the 32 payment of regular or extended benefits on or after July 1, 33 1989, with respect to a week in a benefit year which began 34 prior to July 1, 1989, shall not become benefit charges under HB2935 Engrossed -24- LRB9202351WHdv 1 subsections B and D above where such benefit charges, had 2 they been benefit wages under Section 1501, would have been 3 subject to transfer under subsection F of Section 1501. 4 G. Notwithstanding any other provision of this Act, the 5 benefit charges with respect to the payment of regular or 6 extended benefits on or after July 1, 1989, with respect to a 7 week in a benefit year which began prior to July 1, 1989, 8 shall not exceed the difference between the base period wages 9 paid with respect to that benefit year and the wages which 10 became benefit wages with respect to that same benefit year 11 (not including any benefit wages transferred pursuant to 12 subsection F of Section 1501), provided that any change after 13 September 30, 1989, in either base period wages or wages 14 which became benefit wages as a result of benefit payments 15 made prior to July 1, 1989 shall not affect such benefit 16 charges. 17 H. For the purposes of this Section and of Section 1504, 18 benefits shall be deemed to have been paid on the date such 19 payment has been mailed to the individual by the Director. 20 (Source: P.A. 85-956.) 21 (820 ILCS 405/1504) (from Ch. 48, par. 574) 22 Sec. 1504. State experience factor. A. For each calendar 23 year prior to 1988, the total benefits paid from this State's 24 account in the unemployment trust fund during the 36 25 consecutive calendar month period ending June 30 of the 26 calendar year immediately preceding the calendar year for 27 which a contribution rate is being determined shall be termed 28 the loss experience. The loss experience less all repayments 29 (including payments in lieu of contributions pursuant to 30 Sections 1403, 1404 and 1405B and paragraph 2 of Section 31 302C) to this State's account in the unemployment trust fund 32 during the same 36 consecutive calendar month period divided 33 by the total benefit wages of all employers for the same HB2935 Engrossed -25- LRB9202351WHdv 1 period, after adjustment of any fraction to the nearer 2 multiple of one percent, shall be termed the state experience 3 factor. Whenever such fraction is exactly one-half, it shall 4 be adjusted to the next higher multiple of one percent. 5 B. For calendar year 1988 and each calendar year 6 thereafter, the state experience factor shall be the sum of 7 all regular and additional benefits paid plus the applicable 8 benefit reserve for fund building, pursuant to Section 1505, 9 during the three year period ending on June 30 of the year 10 immediately preceding the year for which a contribution rate 11 is being determined divided by the "net revenues" for the 12 three year period ending on September 30 of the year 13 immediately preceding the year for which a contribution rate 14 is being determined, after adjustment of any fraction to the 15 nearer multiple of one percent. Whenever such fraction is 16 exactly one-half, it shall be adjusted to the next higher 17 multiple of one percent. 18 For purposes of this subsection, "Net revenue" means, for 19 each one year period ending on September 30, the sum of the 20 amounts, as determined pursuant to (1) and (2) of this 21 subsection, in each quarter of such one year period. 22 (1) For each calendar quarter prior to the second 23 calendar quarter of 1988, "net revenue" means all repayments 24 (including payments in lieu of contributions pursuant to 25 Sections 1403, 1404 and 1405B and paragraph 2 of Section 26 302C) to this State's account in the unemployment trust fund 27 less "net voluntary debt repayments" during the same calendar 28 quarter. "Net voluntary debt repayments" means an amount 29 equal to repayments to Title XII advances less any new 30 advances. Any such repayments made after June 30, 1987 but 31 prior to November 10, 1987 shall be deemed to have been made 32 prior to June 30, 1987. 33 (2) For each calendar quarter after the first calendar 34 quarter of 1988, "net revenue" shall be the sum of: HB2935 Engrossed -26- LRB9202351WHdv 1 (a) the amount determined by (i) multiplying the benefit 2 wage or benefit ratios, pursuant to Sections 1503 or 1503.1, 3 respectively, of all employers who have not elected to make 4 payments in lieu of contributions applicable to the prior 5 quarter by the state experience factor for that same quarter, 6 (ii) adding this product to the fund building factor provided 7 for in Section 1506.3, (iii) constraining this sum by the 8 application of Sections 1506.1 and 1506.3, except that the 9 State experience factor shall be substituted for the adjusted 10 State experience factor in determining these constraints, and 11 then (iv) multiplying this sum by the total wages for insured 12 work subject to the payment of contributions under Sections 13 234, 235 and 245 of each employer for the prior quarter 14 except that such wages shall not include those wages 15 estimated by the Director prior to the issuance of a 16 Determination and Assessment or those wages estimated as a 17 result of an audit because of the employer's failure to 18 report wages; plus (b) all payments in lieu of contributions 19 pursuant to Sections 1403 and 1404 and subsection B of 20 Section 1405 and paragraph 2 of subsection C of Section 302 21 received during the same calendar quarter. For purposes of 22 computing "net revenue", employers who have not incurred 23 liability for the payment of contributions for at least three 24 years will be excluded from the calculation as will 25 predecessor employers pursuant to Section 1507. 26 C. The state experience factor shall be determined for 27 each calendar year by the Director. Any change in the benefit 28 wages or benefit charges of any employer or any change in 29 contributions (including payments in lieu of contributions 30 pursuant to Sections 1403 and 1404 and subsection B of 31 Section 1405 and paragraph 2 of subsection C of Section 302) 32 received into this State's account in the unemployment trust 33 fund after June 30 of the calendar year immediately preceding 34 the calendar year for which the state experience factor is HB2935 Engrossed -27- LRB9202351WHdv 1 being determined shall not affect the state experience factor 2 as determined by the Director for that year. 3 (Source: P.A. 86-3.) 4 Section 99. Effective date. This Act takes effect upon 5 becoming law.