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| [ Introduced ] | [ House Amendment 001 ] |
92_SB0795eng SB795 Engrossed LRB9204812WHcs 1 AN ACT concerning 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 1506.1 and 1506.3 as follows: 6 (820 ILCS 405/1506.1) (from Ch. 48, par. 576.1) 7 Sec. 1506.1. Determination of Employer's Contribution 8 Rate. 9 A. The contribution rate for any calendar year prior to 10 1982 of each employer who has incurred liability for the 11 payment of contributions within each of the three calendar 12 years immediately preceding the calendar year for which a 13 rate is being determined shall be determined in accordance 14 with the provisions of this Act as amended and in effect on 15 October 5, 1980. 16 B. The contribution rate for calendar years 1982 and 17 1983 of each employer who has incurred liability for the 18 payment of contributions within each of the three calendar 19 years immediately preceding the calendar year for which a 20 rate is being determined shall be the product obtained by 21 multiplying the employer's benefit wage ratio for that 22 calendar year by the adjusted state experience factor for the 23 same year, provided that: 24 1. No employer's contribution rate shall be lower 25 than two-tenths of 1 percent or higher than 5.3%; and 26 2. Intermediate contribution rates between such 27 minimum and maximum rates shall be at one-tenth of 1 28 percent intervals. 29 3. If the product obtained as provided in this 30 subsection is not an exact multiple of one-tenth of 1 31 percent, it shall be increased or reduced, as the case SB795 Engrossed -2- LRB9204812WHcs 1 may be, to the nearer multiple of one-tenth of 1 percent. 2 If such product is equally near to two multiples of 3 one-tenth of 1 percent, it shall be increased to the 4 higher multiple of one-tenth of 1 percent. If such 5 product is less than two-tenths of one percent, it shall 6 be increased to two-tenths of 1 percent, and if greater 7 than 5.3%, it shall be reduced to 5.3%. 8 The contribution rate of each employer for whom wages 9 became benefit wages during the applicable period specified 10 in Section 1503, but who paid no contributions upon wages for 11 insured work during such period on or before the date 12 designated in Section 1503, shall be 5.3%. 13 The contribution rate of each employer for whom no wages 14 became benefit wages during the applicable period specified 15 in Section 1503, and who paid no contributions upon wages for 16 insured work during such period on or before the date 17 specified in Section 1503, shall be 2.7 percent. 18 Notwithstanding the other provisions of this Section, no 19 employer's contribution rate with respect to calendar years 20 1982 and 1983 shall exceed 2.7 percent of the wages for 21 insured work paid by him during any calendar quarter, if such 22 wages paid during such calendar quarter total less than 23 $50,000. 24 C. The contribution rate for calendar years 1984, 1985 25 and 1986 of each employer who has incurred liability for the 26 payment of contributions within each of the two calendar 27 years immediately preceding the calendar year for which a 28 rate is being determined shall be the product obtained by 29 multiplying the employer's benefit wage ratio for that 30 calendar year by the adjusted state experience factor for the 31 same year, provided that: 32 1. An employer's minimum contribution rate shall be 33 the greater of: .2%; or, the product obtained by 34 multiplying .2% by the adjusted state experience factor SB795 Engrossed -3- LRB9204812WHcs 1 for the applicable calendar year. 2 2. An employer's maximum contribution rate shall be 3 the greater of 5.5% or the product of 5.5% and the 4 adjusted State experience factor for the applicable 5 calendar year except that such maximum contribution rate 6 shall not be higher than 6.3% for calendar year 1984, nor 7 be higher than 6.6% or lower than 6.4% for calendar year 8 1985, nor be higher than 6.7% or lower than 6.5% for 9 calendar year 1986. 10 3. If any product obtained in this subsection is 11 not an exact multiple of one-tenth of one percent, it 12 shall be increased or reduced, as the case may be to the 13 nearer multiple of one-tenth of one percent. If such 14 product is equally near to two multiples of one-tenth of 15 one percent, it shall be increased to the higher multiple 16 of one-tenth of one percent. 17 4. Intermediate rates between such minimum and 18 maximum rates shall be at one-tenth of one percent 19 intervals. 20 The contribution rate of each employer for whom wages 21 became benefit wages during the applicable period specified 22 in Section 1503, but who paid no contributions upon wages for 23 insured work during such period on or before the date 24 designated in Section 1503, shall be the maximum contribution 25 rate as determined by paragraph 2 of this subsection. The 26 contribution rate for each employer for whom no wages became 27 benefit wages during the applicable period on or before the 28 date specified in Section 1503, and who paid no contributions 29 upon wages for insured work during such period on or before 30 the date specified in Section 1503, shall be the greater of 31 2.7% or 2.7% times the then current adjusted state experience 32 factor as determined by the Director in accordance with the 33 provisions of Sections 1504 and 1505. 34 Notwithstanding, the other provisions of this Section, no SB795 Engrossed -4- LRB9204812WHcs 1 employer's contribution rate with respect to the calendar 2 year 1984 shall exceed 2.7 percent times the then current 3 adjusted state experience factor as determined by the 4 Director in accordance with the provisions of Sections 1504 5 and 1505 of the wages for insured work paid by him during any 6 calendar quarter, if such wages paid during such calendar 7 quarter total less than $50,000. 8 D. The contribution rate for calendar years 1987, 1988, 9 1989 and 1990 of each employer who has incurred liability for 10 the payment of contributions within each of the three 11 calendar years immediately preceding the calendar year for 12 which a rate is being determined shall be the product 13 obtained by multiplying the employer's benefit wage ratio for 14 that calendar year by the adjusted state experience factor 15 for the same year, provided, that: 16 1. An employer's minimum contribution rate shall be 17 the greater of .2% or the product obtained by multiplying 18 .2% by the adjusted State experience factor for the 19 applicable calendar year. 20 2. An employer's maximum contribution rate shall be 21 the greater of 5.5% or the product of 5.5% and the 22 adjusted State experience factor for the calendar year 23 1987 except that such maximum contribution rate shall not 24 be higher than 6.7% or lower than 6.5% and an employer's 25 maximum contribution rate for 1988, 1989 and 1990 shall 26 be the greater of 6.4% or the product of 6.4% and the 27 adjusted State experience factor for the applicable 28 calendar year. 29 3. If any product obtained in this subsection is 30 not an exact multiple of one-tenth of one percent, it 31 shall be increased or reduced, as the case may be to the 32 nearer multiple of one-tenth of 1 percent. If such 33 product is equally near to two multiples of one-tenth of 34 1 percent, it shall be increased to the higher multiple SB795 Engrossed -5- LRB9204812WHcs 1 of one-tenth of 1 percent. 2 4. Intermediate rates between such minimum and 3 maximum rates shall be at one-tenth of 1 percent 4 intervals. 5 The contribution rate of each employer for whom wages 6 became benefit wages during the applicable period specified 7 in Section 1503, but who did not report wages for insured 8 work during such period, shall be the maximum contribution 9 rate as determined by paragraph 2 of this subsection. The 10 contribution rate for each employer for whom no wages became 11 benefit wages during the applicable period specified in 12 Section 1503, and who did not report wages for insured work 13 during such period, shall be the greater of 2.7% or 2.7% 14 times the then current adjusted State experience factor as 15 determined by the Director in accordance with the provisions 16 of Sections 1504 and 1505. 17 E. The contribution rate for calendar year 1991 and each 18 calendar year thereafter of each employer who has incurred 19 liability for the payment of contributions within each of the 20 three calendar years immediately preceding the calendar year 21 for which a rate is being determined shall be the product 22 obtained by multiplying the employer's benefit ratio defined 23 by Section 1503.1 for that calendar year by the adjusted 24 state experience factor for the same year, provided that: 25 1.Except as otherwise provided in this paragraph,26 An employer's minimum contribution rate for calendar 27 years prior to 2002 shall be the greater of 0.2% or the 28 product obtained by multiplying 0.2% by the adjusted 29 state experience factor for the applicable calendar year. 30 An employer's minimum contribution rate for calendar 31 years after 2001 shall be the greater of 0.1% or the 32 product obtained by multiplying 0.1% by the adjusted 33 state experience factor for the applicable calendar year. 34An employer's minimum contribution rate shall be 0.1% forSB795 Engrossed -6- LRB9204812WHcs 1calendar year 1996.2 2. An employer's maximum contribution rate shall be 3 the greater of 6.4% or the product of 6.4% and the 4 adjusted state experience factor for the applicable 5 calendar year. 6 3. If any product obtained in this subsection is 7 not an exact multiple of one-tenth of one percent, it 8 shall be increased or reduced, as the case may be to the 9 nearer multiple of one-tenth of one percent. If such 10 product is equally near to two multiples of one-tenth of 11 one percent, it shall be increased to the higher multiple 12 of one-tenth of one percent. 13 4. Intermediate rates between such minimum and 14 maximum rates shall be at one-tenth of one percent 15 intervals. 16 The contribution rate of each employer for whom wages 17 became benefit wages during the applicable period specified 18 in Section 1503 or for whom benefit payments became benefit 19 charges during the applicable period specified in Section 20 1503.1, but who did not report wages for insured work during 21 such period, shall be the maximum contribution rate as 22 determined by paragraph 2 of this subsection. The 23 contribution rate for each employer for whom no wages became 24 benefit wages during the applicable period specified in 25 Section 1503 or for whom no benefit payments became benefit 26 charges during the applicable period specified in Section 27 1503.1, and who did not report wages for insured work during 28 such period, shall be the greater of 2.7% or 2.7% times the 29 then current adjusted state experience factor as determined 30 by the Director in accordance with the provisions of Sections 31 1504 and 1505. 32 F. Notwithstanding the other provisions of this Section, 33 and pursuant to Section 271 of the Tax Equity and Fiscal 34 Responsibility Act of 1982, as amended, no employer's SB795 Engrossed -7- LRB9204812WHcs 1 contribution rate with respect to calendar years 1985, 1986, 2 1987 and 1988 shall, for any calendar quarter during which 3 the wages paid by that employer are less than $50,000, exceed 4 the following: with respect to calendar year 1985, 3.7%; with 5 respect to calendar year 1986, 4.1%; with respect to calendar 6 year 1987, 4.5%; and with respect to calendar year 1988, 7 5.0%. 8 G. Notwithstanding the other provisions of this Section, 9 no employer's contribution rate with respect to calendar year 10 1989 and each calendar year thereafter shall exceed 5.4% of 11 the wages for insured work paid by him during any calendar 12 quarter, if such wages paid during such calendar quarter 13 total less than $50,000. 14 (Source: P.A. 89-446, eff. 2-8-96.) 15 (820 ILCS 405/1506.3) (from Ch. 48, par. 576.3) 16 Sec. 1506.3. Fund building rates - Temporary 17 Administrative Funding. 18 A. Notwithstanding any other provision of this Act, the 19 following fund building rates shall be in effect for the 20 following calendar years: 21 For each employer whose contribution rate for 1988, 1989, 22 1990, the first, third, and fourth quarters of 1991, and 1992 23 through 2001, 1993, 1994, 1995, and 1997 and any calendar24year thereafterwould, in the absence of this Section, be 25 0.2% or higher, or whose contribution rate for 2002 and any 26 calendar year thereafter would, in the absence of this 27 Section, be 0.1% or higher, a contribution rate which is the 28 sum of such rate and 0.4%; 29 For each employer whose contribution rate for the second 30 quarter of 1991 would, in the absence of this Section, be 31 0.2% or higher, a contribution rate which is the sum of such 32 rate and 0.3%; 33For each employer whose contribution rate for 1996 would,SB795 Engrossed -8- LRB9204812WHcs 1in the absence of this Section, be 0.1% or higher, a2contribution rate which is the sum of such rate and 0.4%;3 Notwithstanding the preceding paragraphs of this Section 4 or any other provision of this Act, except for the provisions 5 contained in Section 1500 pertaining to rates applicable to 6 employers classified under the Standard Industrial Code, or 7 another classification system sanctioned by the United States 8 Department of Labor and prescribed by the Director by rule, 9 no employer whose total wages for insured work paid by him 10 during any calendar quarter in 1988 and any calendar year 11 thereafter are less than $50,000 shall pay contributions at a 12 rate with respect to such quarter which exceeds the 13 following: with respect to calendar year 1988, 5%; with 14 respect to 1989 and any calendar year thereafter, 5.4%. 15 Notwithstanding the preceding paragraph of this Section, 16 or any other provision of this Act, no employer's 17 contribution rate with respect to calendar years 1993 through 18 1995 shall exceed 5.4% if the employer ceased operations at 19 an Illinois manufacturing facility in 1991 and remained 20 closed at that facility during all of 1992, and the employer 21 in 1993 commits to invest at least $5,000,000 for the purpose 22 of resuming operations at that facility, and the employer 23 rehires during 1993 at least 250 of the individuals employed 24 by it at that facility during the one year period prior to 25 the cessation of its operations, provided that, within 30 26 days after the effective date of this amendatory Act of 1993, 27 the employer makes application to the Department to have the 28 provisions of this paragraph apply to it. The immediately 29 preceding sentence shall be null and void with respect to an 30 employer which by December 31, 1993 has not satisfied the 31 rehiring requirement specified by this paragraph or which by 32 December 31, 1994 has not made the investment specified by 33 this paragraph. 34 B. Notwithstanding any other provision of this Act, for SB795 Engrossed -9- LRB9204812WHcs 1 the second quarter of 1991, the contribution rate of each 2 employer as determined in accordance with Sections 1500, 3 1506.1, and subsection A of this Section shall be equal to 4 the sum of such rate and 0.1%; provided that this subsection 5 shall not apply to any employer whose rate computed under 6 Section 1506.1 for such quarter is between 5.1% and 5.3%, 7 inclusive, and who qualifies for the 5.4% rate ceiling 8 imposed by the last paragraph of subsection A for such 9 quarter. All payments made pursuant to this subsection shall 10 be deposited in the Employment Security Administrative Fund 11 established under Section 2103.1 and used for the 12 administration of this Act. 13 C. Payments received by the Director which are 14 insufficient to pay the total contributions due under the Act 15 shall be first applied to satisfy the amount due pursuant to 16 subsection B. 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. 21 (Source: P.A. 91-342, eff. 1-1-00.)