Illinois General Assembly - Full Text of Public Act 094-1083
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Public Act 094-1083


 

Public Act 1083 94TH GENERAL ASSEMBLY



 


 
Public Act 094-1083
 
SB0490 Enrolled LRB094 10306 RSP 40576 b

    AN ACT concerning State Government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Unemployment Insurance Trust Fund
Financing Act is amended by changing Sections 3 and 4 as
follows:
 
    (30 ILCS 440/3)
    Sec. 3. Definitions. For purposes of this Act:
    A. "Act" shall mean the Illinois Unemployment Insurance
Trust Fund Financing Act.
    B. "Benefits" shall have the meaning provided in the
Unemployment Insurance Act.
    C. "Bond" means any type of revenue obligation, including,
without limitation, fixed rate, variable rate, auction rate or
similar bond, note, certificate, or other instrument,
including, without limitation, an interest rate exchange
agreement, an interest rate lock agreement, a currency exchange
agreement, a forward payment conversion agreement, an
agreement to provide payments based on levels of or changes in
interest rates or currency exchange rates, an agreement to
exchange cash flows or a series of payments, an option, put, or
call to hedge payment, currency, interest rate, or other
exposure, payable from and secured by a pledge of Fund Building
Receipts collected pursuant to the Unemployment Insurance Act,
and all interest and other earnings upon such amounts held in
the Master Bond Fund, to the extent provided in the proceedings
authorizing the obligation.
    D. "Bond Administrative Expenses" means expenses and fees
incurred to administer and issue, upon a conversion of any of
the Bonds from one mode to another and from taxable to
tax-exempt, the Bonds issued pursuant to this Act, including
fees for paying agents, trustees, financial advisors,
underwriters, remarketing agents, attorneys and for other
professional services necessary to ensure compliance with
applicable state or federal law.
    E. "Bond Obligations" means the principal of a Bond and any
premium and interest on a Bond issued pursuant to this Act,
together with any amount owed under a related Credit Agreement.
    F. "Credit Agreement" means, without limitation, a loan
agreement, a revolving credit agreement, an agreement
establishing a line of credit, a letter of credit, notes,
municipal bond insurance, standby bond purchase agreements,
surety bonds, remarketing agreements and the like, by which the
Department may borrow funds to pay or redeem or purchase and
hold its bonds, agreements for the purchase or remarketing of
bonds or any other agreement that enhances the marketability,
security, or creditworthiness of a Bond issued under this Act.
        1. Such Credit Agreement shall provide the following:
            a. The choice of law for the obligations of a
        financial provider may be made for any state of these
        United States, but the law which shall apply to the
        Bonds shall be the law of the State of Illinois, and
        jurisdiction to enforce such Credit Agreement as
        against the Department shall be exclusively in the
        courts of the State of Illinois or in the applicable
        federal court having jurisdiction and located within
        the State of Illinois.
            b. Any such Credit Agreement shall be fully
        enforceable as a valid and binding contract as and to
        the extent provided by applicable law.
        2. Without limiting the foregoing, such Credit
    Agreement, may include any of the following:
            a. Interest rates on the Bonds may vary from time
        to time depending upon criteria established by the
        Director, which may include, without limitation:
                (i) A variation in interest rates as may be
            necessary to cause the Bonds to be remarketed from
            time to time at a price equal to their principal
            amount plus any accrued interest;
                (ii) Rates set by auctions; or
                (iii) Rates set by formula.
            b. A national banking association, bank, trust
        company, investment banker or other financial
        institution may be appointed to serve as a remarketing
        agent in that connection, and such remarketing agent
        may be delegated authority by the Department to
        determine interest rates in accordance with criteria
        established by the Department.
            c. Alternative interest rates or provisions may
        apply during such times as the Bonds are held by the
        financial providers or similar persons or entities
        providing a Credit Agreement for those Bonds and,
        during such times, the interest on the Bonds may be
        deemed not exempt from income taxation under the
        Internal Revenue Code for purposes of State law, as
        contained in the Bond Authorization Act, relating to
        the permissible rate of interest to be borne thereon.
            d. Fees may be paid to the financial providers or
        similar persons or entities providing a Credit
        Agreement, including all reasonably related costs,
        including therein costs of enforcement and litigation
        (all such fees and costs being financial provider
        payments) and financial provider payments may be paid,
        without limitation, from proceeds of the Bonds being
        the subject of such agreements, or from Bonds issued to
        refund such Bonds, provided that such financial
        provider payments shall be made subordinate to the
        payments on the Bonds.
            e. The Bonds need not be held in physical form by
        the financial providers or similar persons or entities
        providing a Credit Agreement when providing funds to
        purchase or carry the Bonds from others but may be
        represented in uncertificated form in the Credit
        Agreement.
            f. The debt or obligation of the Department
        represented by a Bond tendered for purchase to or
        otherwise made available to the Department thereupon
        acquired by either the Department or a financial
        provider shall not be deemed to be extinguished for
        purposes of State law until cancelled by the Department
        or its agent.
            g. Such Credit Agreement may provide for
        acceleration of the principal amounts due on the Bonds.
    G. "Department" means the Illinois Department of
Employment Security.
    H. "Director" means the Director of the Illinois Department
of Employment Security.
    I. "Fund Building Rates" are those rates imposed pursuant
to Section 1506.3 of the Unemployment Insurance Act.
    J. "Fund Building Receipts" shall have the meaning provided
in the Unemployment Insurance Act and includes earnings on such
receipts.
    K. "Master Bond Fund" shall mean, for any particular
issuance of Bonds under this Act, the fund established for the
deposit of Fund Building Receipts upon or prior to the issuance
of Bonds under this Act, and during the time that any Bonds are
outstanding under this Act and from which the payment of Bond
Obligations and the related Bond Administrative Expenses
incurred in connection with such Bonds shall be made. That
portion of the Master Bond Fund containing the Required Fund
Building Receipts Amount shall be irrevocably pledged to the
timely payment of Bond Obligations and Bond Administrative
Expenses due on any Bonds issued pursuant to this Act and any
Credit Agreement entered in connection with the Bonds. The
Master Bond Fund shall be held separate and apart from all
other State funds. Moneys in the Master Bond Fund shall not be
commingled with other State funds, but they shall be deposited
as required by law and maintained in a separate account on the
books of a savings and loan association, bank or other
qualified financial institution. All interest earnings on
amounts within the Master Bond Fund shall accrue to the Master
Bond Fund. The Master Bond Fund may include such funds and
accounts as are necessary for the deposit of bond proceeds,
Fund Building Receipts, payment of principal, interest,
administrative expenses, costs of issuance, in the case of
bonds which are exempt from Federal taxation, rebate payments,
and such other funds and accounts which may be necessary for
the implementation and administration of this Act. The Director
shall be liable on her or his general official bond for the
faithful performance of her or his duties as custodian of the
Master Bond Fund. Such liability on her or his official bond
shall exist in addition to the liability upon any separate bond
given by her or him. All sums recovered for losses sustained by
the Master Bond Fund shall be deposited into the Fund.
    The Director shall report quarterly in writing to the
Employment Security Advisory Board concerning the actual and
anticipated deposits into and expenditures and transfers made
from the Master Bond Fund.
    L. "Required Fund Building Receipts Amount" means the
aggregate amount of Fund Building Receipts required to be
maintained in the Master Bond Fund as set forth in Section 4I
of this Act.
(Source: P.A. 93-634, eff. 1-1-04.)
 
    (30 ILCS 440/4)
    Sec. 4. Authority to Issue Revenue Bonds.
    A. The Department shall have the continuing power to borrow
money for the purpose of carrying out the following:
        1. To reduce or avoid the need to borrow or obtain a
    federal advance under Section 1201, et seq., of the Social
    Security Act (42 U.S.C. Section 1321), as amended, or any
    similar federal law; or
        2. To refinance a previous advance received by the
    Department with respect to the payment of Benefits; or
        3. To refinance, purchase, redeem, refund, advance
    refund or defease (including, any combination of the
    foregoing) any outstanding Bonds issued pursuant to this
    Act; or
        4. To fund a surplus in Illinois' account in the
    Unemployment Trust Fund of the United States Treasury.
    Paragraphs 1, 2 and 4 are inoperative on and after January
1, 2010.
    B. As evidence of the obligation of the Department to repay
money borrowed for the purposes set forth in Section 4A above,
the Department may issue and dispose of its interest bearing
revenue Bonds and may also, from time-to-time, issue and
dispose of its interest bearing revenue Bonds to purchase,
redeem, refund, advance refund or defease (including, any
combination of the foregoing) any Bonds at maturity or pursuant
to redemption provisions or at any time before maturity. The
Director, in consultation with the Department's Employment
Security Advisory Board, shall have the power to direct that
the Bonds be issued. Bonds may be issued in one or more series
and under terms and conditions as needed in furtherance of the
purposes of this Act. The Illinois Finance Authority shall
provide any technical, legal, or administrative services if and
when requested by the Director and the Employment Security
Advisory Board with regard to the issuance of Bonds. Such Bonds
shall be issued in the name of the State of Illinois for the
benefit of the Department and shall be executed by the
Director. In case any Director whose signature appears on any
Bond ceases (after attaching his or her signature) to hold that
office, her or his signature shall nevertheless be valid and
effective for all purposes.
    C. No Bonds shall be issued without the Director's written
certification that, based upon a reasonable financial
analysis, the issuance of Bonds is reasonably expected to:
            (i) Result in a savings to the State as compared to
        the cost of borrowing or obtaining an advance under
        Section 1201, et seq., Social Security Act (42 U.S.C.
        Section 1321), as amended, or any similar federal law;
            (ii) Result in terms which are advantageous to the
        State through refunding, advance refunding or other
        similar restructuring of outstanding Bonds; or
            (iii) Allow the State to avoid an anticipated
        deficiency in the State's account in the Unemployment
        Trust Fund of the United States Treasury by funding a
        surplus in the State's account in the Unemployment
        Trust Fund of the United States Treasury.
    D. All such Bonds shall be payable from Fund Building
Receipts. Bonds may also be paid from (i) to the extent
allowable by law, from monies in the State's account in the
Unemployment Trust Fund of the United States Treasury; and (ii)
to the extent allowable by law, a federal advance under Section
1201, et seq., of the Social Security Act (42 U.S.C. Section
1321); and (iii) proceeds of Bonds and receipts from related
credit and exchange agreements to the extent allowed by this
Act and applicable legal requirements.
    E. The maximum principal amount of the Bonds, when combined
with the outstanding principal of all other Bonds issued
pursuant to this Act, shall not at any time exceed
$1,400,000,000, excluding all of the outstanding principal of
any other Bonds issued pursuant to this Act for which payment
has been irrevocably provided by refunding or other manner of
defeasance. It is the intent of this Act that the outstanding
Bond authorization limits provided for in this Section 4E shall
be revolving in nature, such that the amount of Bonds
outstanding that are not refunded or otherwise defeased shall
be included in determining the maximum amount of Bonds
authorized to be issued pursuant to the Act.
    F. Such Bonds and refunding Bonds issued pursuant to this
Act may bear such date or dates, may mature at such time or
times not exceeding 10 years from their respective dates of
issuance, and may bear interest at such rate or rates not
exceeding the maximum rate authorized by the Bond Authorization
Act, as amended and in effect at the time of the issuance of
the Bonds.
    G. The Department may enter into a Credit Agreement
pertaining to the issuance of the Bonds, upon terms which are
not inconsistent with this Act and any other laws, provided
that the term of such Credit Agreement shall not exceed the
term of the Bonds, plus any time period necessary to cure any
defaults under such Credit Agreement.
    H. Interest earnings paid to holders of the Bonds shall not
be exempt from income taxes imposed by the State.
    I. While any Bond Obligations are outstanding or
anticipated to come due as a result of Bonds expected to be
issued in either or both of the 2 immediately succeeding
calendar quarters, the Department shall collect and deposit
Fund Building Receipts into the Master Bond Fund in an amount
necessary to satisfy the Required Fund Building Receipts Amount
prior to expending Fund Building Receipts for any other
purpose. The Required Fund Building Receipts Amount shall be
that amount necessary to ensure the marketability of the Bonds,
which shall be specified in the Bond Sale Order executed by the
Director in connection with the issuance of the Bonds.
    J. Holders of the Bonds shall have a first and priority
claim on all Fund Building Receipts in the Master Bond Fund in
parity with all other holders of the Bonds, provided that such
claim may be subordinated to the provider of any Credit
Agreement for any of the Bonds.
    K. To the extent that Fund Building Receipts in the Master
Bond Fund are not otherwise needed to satisfy the requirements
of this Act and the instruments authorizing the issuance of the
Bonds, such monies shall be used by the Department, in such
amounts as determined by the Director to do any one or a
combination either or both of the following:
        1. To purchase, refinance, redeem, refund, advance
    refund or defease (or any combination of the foregoing)
    outstanding Bonds, to the extent such action is legally
    available and does not impair the tax exempt status of any
    of the Bonds which are, in fact, exempt from Federal income
    taxation; or
        2. As a deposit in the State's account in the
    Unemployment Trust Fund of the United States Treasury; or
        3. As a deposit into the Special Programs Fund provided
    for under Section 2107 of the Unemployment Insurance Act.
    L. The Director shall determine the method of sale, type of
bond, bond form, redemption provisions and other terms of the
Bonds that, in the Director's judgment, best achieve the
purposes of this Act and effect the borrowing at the lowest
practicable cost, provided that those determinations are not
inconsistent with this Act or other applicable legal
requirements. Those determinations shall be set forth in a
document entitled "Bond Sale Order" acceptable, in form and
substance, to the attorney or attorneys acting as bond counsel
for the Bonds in connection with the rendering of opinions
necessary for the issuance of the Bonds and executed by the
Director.
(Source: P.A. 93-634, eff. 1-1-04.)
 
    Section 10. The Unemployment Insurance Act is amended by
changing Sections 2100 and 2101 and by adding Sections 2101.1
and 2107 as follows:
 
    (820 ILCS 405/2100)  (from Ch. 48, par. 660)
    Sec. 2100. Handling of funds - Bond - Accounts.
    A. All contributions and payments in lieu of contributions
collected under this Act, including but not limited to fund
building receipts, together with any interest thereon; all
penalties collected pursuant to this Act; any property or
securities acquired through the use thereof; all moneys
advanced to this State's account in the unemployment trust fund
pursuant to the provisions of Title XII of the Social Security
Act, as amended; all moneys directed for transfer from the
Master Bond Fund to this State's account in the unemployment
trust fund; all moneys received from the Federal government as
reimbursements pursuant to Section 204 of the Federal-State
Extended Unemployment Compensation Act of 1970, as amended; all
moneys credited to this State's account in the unemployment
trust fund pursuant to Section 903 of the Federal Social
Security Act, as amended; and all earnings of such property or
securities and any interest earned upon any such moneys shall
be paid or turned over to and held by the Director, as
ex-officio custodian of the clearing account, the unemployment
trust fund account and the benefit account, and by the State
Treasurer, as ex-officio custodian of the special
administrative account, separate and apart from all public
moneys or funds of this State, as hereinafter provided. Such
moneys shall be administered by the Director exclusively for
the purposes of this Act.
    No such moneys shall be paid or expended except upon the
direction of the Director in accordance with such regulations
as he shall prescribe pursuant to the provisions of this Act.
    The State Treasurer shall be liable on his general official
bond for the faithful performance of his duties in connection
with the moneys in the special administrative account provided
for under this Act. Such liability on his official bond shall
exist in addition to the liability upon any separate bond given
by him. All sums recovered for losses sustained by the account
shall be deposited in that account.
    The Director shall be liable on his general official bond
for the faithful performance of his duties in connection with
the moneys in the clearing account, the benefit account and
unemployment trust fund account provided for under this Act.
Such liability on his official bond shall exist in addition to
the liability upon any separate bond given by him. All sums
recovered for losses sustained by any one of the accounts shall
be deposited in the account that sustained such loss.
    The Treasurer shall maintain for such moneys a special
administrative account. The Director shall maintain for such
moneys 3 separate accounts: a clearing account, a benefit
account and an unemployment trust fund account. All moneys
payable under this Act (except moneys requisitioned from this
State's account in the unemployment trust fund and deposited in
the benefit account and moneys directed for deposit into the
Special Programs Fund provided for under Section 2107),
including but not limited to moneys directed for transfer from
the Master Bond Fund to this State's account in the
unemployment trust fund, upon receipt thereof by the Director,
shall be immediately deposited in the clearing account;
provided, however, that, except as is otherwise provided in
this Section, interest and penalties shall not be deemed a part
of the clearing account but shall be transferred immediately
upon clearance thereof to the special administrative account.
    After clearance thereof, all other moneys in the clearing
account shall be immediately deposited by the Director with the
Secretary of the Treasury of the United States of America to
the credit of the account of this State in the unemployment
trust fund, established and maintained pursuant to the Federal
Social Security Act, as amended, except fund building receipts,
which shall be deposited into the Master Bond Fund. The benefit
account shall consist of all moneys requisitioned from this
State's account in the unemployment trust fund. The moneys in
the benefit account shall be expended in accordance with
regulations prescribed by the Director and solely for the
payment of benefits, refunds of contributions, interest and
penalties under the provisions of the Act, the payment of
health insurance in accordance with Section 410 of this Act,
and the transfer or payment of funds to any Federal or State
agency pursuant to reciprocal arrangements entered into by the
Director under the provisions of Section 2700E, except that
moneys credited to this State's account in the unemployment
trust fund pursuant to Section 903 of the Federal Social
Security Act, as amended, shall be used exclusively as provided
in subsection B. For purposes of this Section only, to the
extent allowed by applicable legal requirements, the payment of
benefits includes but is not limited to the payment of
principal on any bonds issued pursuant to the Illinois
Unemployment Insurance Trust Fund Financing Act, exclusive of
any interest or administrative expenses in connection with the
bonds. The Director shall, from time to time, requisition from
the unemployment trust fund such amounts, not exceeding the
amounts standing to the State's account therein, as he deems
necessary solely for the payment of such benefits, refunds, and
funds, for a reasonable future period. The Director, as
ex-officio custodian of the benefit account, which shall be
kept separate and apart from all other public moneys, shall
issue his checks for the payment of such benefits, refunds,
health insurance and funds solely from the moneys so received
into the benefit account. However, after January 1, 1987, no
check shall be drawn on such benefit account unless at the time
of drawing there is sufficient money in the account to pay the
check. The Director shall retain in the clearing account an
amount of interest and penalties equal to the amount of
interest and penalties to be refunded from the benefit account.
After clearance thereof, the amount so retained shall be
immediately deposited by the Director, as are all other moneys
in the clearing account, with the Secretary of the Treasury of
the United States. If, at any time, an insufficient amount of
interest and penalties is available for retention in the
clearing account, no refund of interest or penalties shall be
made from the benefit account until a sufficient amount is
available for retention and is so retained, or until the State
Treasurer, upon the direction of the Director, transfers to the
Director a sufficient amount from the special administrative
account, for immediate deposit in the benefit account.
    Any balance of moneys requisitioned from the unemployment
trust fund which remains unclaimed or unpaid in the benefit
account after the expiration of the period for which such sums
were requisitioned shall either be deducted from estimates of
and may be utilized for authorized expenditures during
succeeding periods, or, in the discretion of the Director,
shall be redeposited with the Secretary of the Treasury of the
United States to the credit of the State's account in the
unemployment trust fund.
    Moneys in the clearing, benefit and special administrative
accounts shall not be commingled with other State funds but
they shall be deposited as required by law and maintained in
separate accounts on the books of a savings and loan
association or bank.
    No bank or savings and loan association shall receive
public funds as permitted by this Section, unless it has
complied with the requirements established pursuant to Section
6 of "An Act relating to certain investments of public funds by
public agencies", approved July 23, 1943, as now or hereafter
amended.
    B. Moneys credited to the account of this State in the
unemployment trust fund by the Secretary of the Treasury of the
United States pursuant to Section 903 of the Social Security
Act may be requisitioned from this State's account and used as
authorized by Section 903. Any interest required to be paid on
advances under Title XII of the Social Security Act shall be
paid in a timely manner and shall not be paid, directly or
indirectly, by an equivalent reduction in contributions or
payments in lieu of contributions from amounts in this State's
account in the unemployment trust fund. Such moneys may be
requisitioned and used for the payment of expenses incurred for
the administration of this Act, but only pursuant to a specific
appropriation by the General Assembly and only if the expenses
are incurred and the moneys are requisitioned after the
enactment of an appropriation law which:
        1. Specifies the purpose or purposes for which such
    moneys are appropriated and the amount or amounts
    appropriated therefor;
        2. Limits the period within which such moneys may be
    obligated to a period ending not more than 2 years after
    the date of the enactment of the appropriation law; and
        3. Limits the amount which may be obligated during any
    fiscal year to an amount which does not exceed the amount
    by which (a) the aggregate of the amounts transferred to
    the account of this State pursuant to Section 903 of the
    Social Security Act exceeds (b) the aggregate of the
    amounts used by this State pursuant to this Act and charged
    against the amounts transferred to the account of this
    State.
    For purposes of paragraph (3) above, amounts obligated for
administrative purposes pursuant to an appropriation shall be
chargeable against transferred amounts at the exact time the
obligation is entered into. The appropriation, obligation, and
expenditure or other disposition of money appropriated under
this subsection shall be accounted for in accordance with
standards established by the United States Secretary of Labor.
    Moneys appropriated as provided herein for the payment of
expenses of administration shall be requisitioned by the
Director as needed for the payment of obligations incurred
under such appropriation. Upon requisition, such moneys shall
be deposited with the State Treasurer, who shall hold such
moneys, as ex-officio custodian thereof, in accordance with the
requirements of Section 2103 and, upon the direction of the
Director, shall make payments therefrom pursuant to such
appropriation. Moneys so deposited shall, until expended,
remain a part of the unemployment trust fund and, if any will
not be expended, shall be returned promptly to the account of
this State in the unemployment trust fund.
    C. The Governor is authorized to apply to the United States
Secretary of Labor for an advance or advances to this State's
account in the unemployment trust fund pursuant to the
conditions set forth in Title XII of the Federal Social
Security Act, as amended. The amount of any such advance may be
repaid from this State's account in the unemployment trust
fund.
    D. The Director shall annually on or before the first day
of March report in writing to the Employment Security Advisory
Board concerning the deposits into and expenditures from this
State's account in the Unemployment Trust Fund.
(Source: P.A. 93-634, eff. 1-1-04.)
 
    (820 ILCS 405/2101)  (from Ch. 48, par. 661)
    Sec. 2101. Special administrative account. Except as
provided in Section 2100, all interest and penalties collected
pursuant to this Act shall be deposited in the special
administrative account. The amount in this account in excess of
$100,000 on the close of business of the last day of each
calendar quarter shall be immediately transferred to this
State's account in the unemployment trust fund. However,
subject to Section 2101.1, such funds shall not be transferred
where it is determined by the Director that it is necessary to
accumulate funds in the account in order to have sufficient
funds to pay interest that may become due under the terms of
Section 1202 (b) of the Federal Social Security Act, as
amended, upon advances made to the Illinois Unemployment
Insurance Trust Fund under Title XII of the Federal Social
Security Act or where it is determined by the Director that it
is necessary to accumulate funds in the special administrative
account in order to have sufficient funds to expend for any
other purpose authorized by this Section. The moneys available
in the special administrative account shall be expended upon
the direction of the Director whenever it appears to him that
such expenditure is necessary for:
    A. 1. The proper administration of this Act and no Federal
funds are available for the specific purpose for which such
expenditure is to be made, provided the moneys are not
substituted for appropriations from Federal funds, which in the
absence of such moneys would be available and provided the
monies are appropriated by the General Assembly.
    2. The proper administration of this Act for which purpose
appropriations from Federal funds have been requested but not
yet received, provided the special administrative account will
be reimbursed upon receipt of the requested Federal
appropriation.
    B. To the extent possible, the repayment to the fund
established for financing the cost of administration of this
Act of moneys found by the Secretary of Labor of the United
States of America, or other appropriate Federal agency, to have
been lost or expended for purposes other than, or in amounts in
excess of, those found necessary by the Secretary of Labor, or
other appropriate Federal agency, for the administration of
this Act.
    C. The payment of refunds or adjustments of interest or
penalties, paid pursuant to Sections 901 or 2201.
    D. The payment of interest on refunds of erroneously paid
contributions, penalties and interest pursuant to Section
2201.1.
    E. The payment or transfer of interest or penalties to any
Federal or State agency, pursuant to reciprocal arrangements
entered into by the Director under the provisions of Section
2700E.
    F. The payment of any costs incurred, pursuant to Section
1700.1.
    G. Beginning January 1, 1989, for the payment for the legal
services authorized by subsection B of Section 802, up to
$1,000,000 per year for the representation of the individual
claimants and up to $1,000,000 per year for the representation
of "small employers".
    H. The payment of any fees for collecting past due
contributions, payments in lieu of contributions, penalties,
and interest shall be paid (without an appropriation) from
interest and penalty monies received from collection agents
that have contracted with the Department under Section 2206 to
collect such amounts, provided however, that the amount of such
payment shall not exceed the amount of past due interest and
penalty collected.
    I. The payment of interest that may become due under the
terms of Section 1202 (b) of the Federal Social Security Act,
as amended, for advances made to the Illinois Unemployment
Insurance Trust Fund.
    The Director shall annually on or before the first day of
March report in writing to the Employment Security Advisory
Board concerning the expenditures made from the special
administrative account and the purposes for which funds are
being accumulated.
    If Federal legislation is enacted which will permit the use
by the Director of some part of the contributions collected or
to be collected under this Act, for the financing of
expenditures incurred in the proper administration of this Act,
then, upon the availability of such contributions for such
purpose, the provisions of this Section shall be inoperative
and interest and penalties collected pursuant to this Act shall
be deposited in and be deemed a part of the clearing account.
In the event of the enactment of the foregoing Federal
legislation, and within 90 days after the date upon which
contributions become available for expenditure for costs of
administration, the total amount in the special administrative
account shall be transferred to the clearing account, and after
clearance thereof shall be deposited with the Secretary of the
Treasury of the United States of America to the credit of the
account of this State in the unemployment trust fund,
established and maintained pursuant to the Federal Social
Security Act, as amended.
(Source: P.A. 85-956; 85-1009.)
 
    (820 ILCS 405/2101.1 new)
    Sec. 2101.1. Mandatory transfers. Notwithstanding any
other provision in Section 2101 to the contrary, no later than
June 30, 2007, an amount equal to at least $1,400,136 but not
to exceed $7,000,136 shall be transferred from the special
administrative account to this State's account in the
Unemployment Trust Fund. No later than June 30, 2008, and June
30 of each of the three immediately succeeding calendar years,
there shall be transferred from the special administrative
account to this State's account in the Unemployment Trust Fund
an amount at least equal to the lesser of $1,400,000 or the
unpaid principal. For purposes of this Section, the unpaid
principal is the difference between $7,000,136 and the sum of
amounts, excluding interest, previously transferred pursuant
to this Section. In addition to the amounts otherwise specified
in this Section, each transfer shall include a payment of any
interest accrued pursuant to this Section through the end of
the immediately preceding calendar quarter for which the
federal Department of the Treasury has published the yield for
state accounts in the Unemployment Trust Fund. Interest
pursuant to this Section shall accrue daily beginning on
January 1, 2007, and be calculated on the basis of the unpaid
principal as of the beginning of the day. The rate at which the
interest shall accrue for each calendar day within a calendar
quarter shall equal the quotient obtained by dividing the yield
for that quarter for state accounts in the Unemployment Trust
Fund as published by the federal Department of the Treasury by
the total number of calendar days within that quarter. Interest
accrued but not yet due at the time the unpaid principal is
paid in full shall be transferred within 30 days after the
federal Department of the Treasury has published the yield for
state accounts in the Unemployment Trust Fund for all quarters
for which interest has accrued pursuant to this Section but not
yet been paid. A transfer required pursuant to this Section in
a fiscal year of this State shall occur before any transfer
made with respect to that same fiscal year from the special
administrative account to the Title III Social Security and
Employment Fund.
 
    (820 ILCS 405/2107 new)
    Sec. 2107. Special Programs Fund. The Special Programs Fund
shall be held separate and apart from all public moneys or
funds of this State. All moneys that may be received by the
State for the payment of trade readjustment allowances or
alternative trade adjustment assistance for older workers
under the Trade Act of 1974, as amended, or disaster
unemployment assistance under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act, as amended, or for the
payment of any other benefits where the Department will pay the
benefits as an agent of the United States Department of Labor
or its successor agency pursuant to federal law (except
benefits payable through the State's account in the federal
Unemployment Trust Fund established and maintained pursuant to
the federal Social Security Act, as amended), shall be
deposited into the Special Programs Fund, together with any
moneys that may otherwise be directed for deposit into that
Fund. No such moneys shall be paid or expended except upon the
direction of the Director who, as ex officio custodian of the
Special Programs Fund, shall expend such moneys only in
accordance with the directions of the United States Department
of Labor or its successor agency, as an agent of the United
States Department of Labor or its successor agency. Moneys in
the Special Programs Fund shall not be commingled with other
State funds, but they shall be deposited as required by law and
maintained in a separate account on the books of a savings and
loan association, bank, or other qualified financial
institution. All interest earnings on amounts within the
Special Programs Fund shall accrue to the Special Programs
Fund. The Director shall be liable on her or his general
official bond for the faithful performance of her or his duties
in connection with the moneys in the Special Programs Fund.
Such liability on her or his official bond shall exist in
addition to the liability upon any separate bond given by her
or him. All sums recovered for losses sustained by the Special
Programs Fund shall be deposited into the Fund.
    This amendatory Act of the 94th General Assembly is not
intended to alter processes or requirements with respect to the
Special Programs Fund from those in existence immediately prior
to the effective date of this amendatory Act of the 94th
General Assembly.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 1/19/2007