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Public Act 92-0555
HB4531 Enrolled LRB9212337WHcs
AN ACT in relation to unemployment insurance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Unemployment Insurance Act is amended by
changing Sections 205, 211.1, 220, and 1405 and by adding
Section 205.1 as follows:
(820 ILCS 405/205) (from Ch. 48, par. 315)
Sec. 205. "Employer" means:
A. With respect to the years 1937, 1938, and 1939, any
employing unit which has or had in employment eight or more
individuals on some portion of a day, but not necessarily
simultaneously, and irrespective of whether the same
individuals are or were employed on each such day within each
of twenty or more calendar weeks, whether or not such weeks
are or were consecutive, within either the current or
preceding calendar year;
B. 1. With respect to the years 1940 through 1955,
inclusive, any employing unit which has or had in employment
six or more individuals within each of twenty or more
calendar weeks (but not necessarily simultaneously and
irrespective of whether the same individuals are or were
employed in each such week), whether or not such weeks are or
were consecutive, within either the current or preceding
calendar year;
2. With respect to the years 1956 through 1971,
inclusive, any employing unit which has or had in employment
four or more individuals within each of twenty or more
calendar weeks (but not necessarily simultaneously and
irrespective of whether the same individuals are or were
employed in each such week), whether or not such weeks are or
were consecutive, within either the current or preceding
calendar year;
3. With respect to the years 1972 and thereafter, except
as provided in subsection K and in Section 301, any employing
unit which (1) pays or paid, for services in employment,
wages of at least $1500 within any calendar quarter in either
the current or preceding calendar year; or (2) has or had in
employment at least one individual on some portion of a day,
irrespective of whether the same individual is or was
employed on each such day, within each of twenty or more
calendar weeks, whether or not such weeks are or were
consecutive, within either the current or preceding calendar
year;
4. With respect to the years 1972 and thereafter, any
nonprofit organization as defined in Section 211.2, except as
provided in subsection K and in Section 301;
5. With respect to the years 1972 and thereafter, the
State of Illinois and each of its instrumentalities; and with
respect to the years 1978 and thereafter, each governmental
entity referred to in clause (B) of Section 211.1, except as
provided in Section 301;
6. With respect to the years 1978 and thereafter, any
employing unit for which service in agricultural labor is
performed in employment as defined in Section 211.4, except
as provided in subsection K and in Section 301;
7. With respect to the years 1978 and thereafter, any
employing unit for which domestic service is performed in
employment as defined in Section 211.5, except as provided in
subsection K and in Section 301;
C. Any individual or employing unit which succeeded to
the organization, trade, or business of another employing
unit which at the time of such succession was an employer,
and any individual or employing unit which succeeded to the
organization, trade, or business of any distinct severable
portion of another employing unit, which portion, if treated
as a separate employing unit, would have been, at the time of
the succession, an employer under subsections A or B of this
Section;
D. Any individual or employing unit which succeeded to
any of the assets of an employer or to any of the assets of a
distinct severable portion thereof, if such portion, when
treated as a separate employing unit would be an employer
under subsections A or B of this Section, by any means
whatever, otherwise than in the ordinary course of business,
unless and until it is proven in any proceeding where such
issue is involved that all of the following exist:
1. The successor unit has not assumed a substantial
amount of the predecessor unit's obligations; and
2. The successor unit has not acquired a
substantial amount of the predecessor unit's good will;
and
3. The successor unit has not continued or resumed
a substantial part of the business of the predecessor
unit in the same establishment;
E. Any individual or employing unit which succeeded to
the organization, trade, or business, or to any of the assets
of a predecessor unit (unless and until it is proven in any
proceeding where such issue is involved that all the
conditions enumerated in subsection D of this Section exist),
if the experience of the successor unit subsequent to such
succession plus the experience of the predecessor unit prior
to such succession, both within the same calendar year, would
equal the experience necessary to constitute an employing
unit an employer under subsections A or B of this Section;
For the purposes of this subsection, the term
"predecessor unit" shall include any distinct severable
portion of an employing unit.
F. With respect to the years 1937 through 1955,
inclusive, any employing unit which together with one or more
other employing units is owned or controlled, directly or
indirectly, by legally enforceable means or otherwise, by the
same interests, or which owns or controls one or more other
employing units directly or indirectly, by legally
enforceable means or otherwise, and which if treated as a
single unit with such other employing units or interests or
both would be an employer under subsections A or B of this
Section;
G. Any employing unit which, having become an employer
under subsections A, B, C, D, E, or F of this Section, has
not, under Section 301, ceased to be an employer;
H. For the effective period of its election pursuant to
Section 302, any other employing unit which has elected to
become fully subject to this Act;
I. Any employing unit which is an employer under Section
245; or
J. Any employing unit which, having become an employer
under Section 245, has not, with respect to the year 1960 or
thereafter, ceased to be an employer under Section 301; or.
J-1. On and after December 21, 2000, any Indian tribe
for which service in "employment" as defined under this Act
is performed.
K. In determining whether or not an employing unit for
which service other than domestic service is also performed
is an employer under paragraphs 3, 4, or 6 of subsection B,
the domestic service of an individual and the wages paid
therefor shall not be taken into account. In determining
whether or not an employing unit for which service other than
agricultural labor is also performed is an employer under
paragraphs 4 or 7 of subsection B, the service of an
individual in agricultural labor and the wages paid therefor
shall not be taken into account. An employing unit which is
an employer under paragraph 6 of subsection B is an employer
under paragraph 3 of subsection B.
(Source: P.A. 87-1178.)
(820 ILCS 405/205.1 new)
Sec. 205.1. Indian tribe. "Indian tribe" has the meaning
given to that term by Section 4(e) of the Indian
Self-Determination and Education Assistance Act (25 U.S.C.
450(e)), and includes any subdivision, subsidiary, or
business enterprise wholly owned by such an Indian tribe.
(820 ILCS 405/211.1) (from Ch. 48, par. 321.1)
Sec. 211.1. Except as provided in Section 220, the term
"employment" shall include (A) service performed after
December 31, 1971, by an individual in the employ of this
State or any of its instrumentalities (and by an individual
in the employ of this State or any of its instrumentalities
and one or more other States or their instrumentalities for a
hospital or institution of higher education located in this
State), provided that such service is excluded from the
definition of "employment" in the Federal Unemployment Tax
Act solely by reason of Section 3306(c)(7) of that Act; and
(B) service performed after December 31, 1977 by an
individual in the employ of this State or any of its
instrumentalities, or any political subdivision or municipal
corporation thereof or any of their instrumentalities, or any
instrumentality of more than one of the foregoing, or any
instrumentality of any of the foregoing and one or more other
States or political subdivisions, provided that such service
is excluded from the definition of "employment" in the
Federal Unemployment Tax Act by Section 3306(c)(7) of that
Act; and (C) service performed after December 20, 2000, by an
individual in the employ of an Indian tribe.
(Source: P.A. 80-2dSS-1.)
(820 ILCS 405/220) (from Ch. 48, par. 330)
Sec. 220. A. The term "employment" shall not include
service performed prior to 1972 in the employ of this State,
or of any political subdivision thereof, or of any wholly
owned instrumentality of this State or its political
subdivisions.
B. The term "employment" shall not include service,
performed after 1971 and before 1978, in the employ of this
State or any of its instrumentalities:
1. In an elective position;
2. Of a professional or consulting nature,
compensated on a per diem or retainer basis;
3. For a State prison or other State correctional
institution, by an inmate of the prison or correctional
institution;
4. As part of an unemployment work-relief or
work-training program assisted or financed in whole or in
part by any Federal agency or an agency of this State, by
an individual receiving such work-relief or
work-training;
5. In a facility conducted for the purpose of
carrying out a program of rehabilitation for individuals
whose earning capacity is impaired by age or physical or
mental deficiency or injury or providing remunerative
work for individuals who because of their impaired
physical or mental capacity cannot be readily absorbed in
the competitive labor market, by an individual receiving
such rehabilitation or remunerative work;
6. Directly for the Illinois State Fair during its
active duration (including the week immediately preceding
and the week immediately following the Fair);
7. Directly and solely in connection with an
emergency, in fire-fighting, snow removal, flood control,
control of the effects of wind or flood, and the like, by
an individual hired solely for the period of such
emergency;
8. In the Illinois National Guard, directly and
solely in connection with its summer training camps or
during emergencies, by an individual called to duty
solely for such purposes.
C. Except as provided in Section 302, the term
"employment" shall not include service performed in the
employ of a political subdivision or a municipal corporation,
or an instrumentality of one or more of the foregoing or of
this State and one or more of the foregoing. This subsection
shall not apply to service performed after December 31, 1977.
D. The term "employment" shall not include service
performed after December 31, 1977:
1. In the employ of a governmental entity referred
to in clause (B) of Section 211.1 if such service is
performed in the exercise of duties
a. As an elected official;
b. As a member of a legislative body, or a
member of the judiciary, of this State or a
political subdivision or municipal corporation;
c. As a member of the Illinois National Guard
or Air National Guard;
d. As a worker serving on a temporary basis in
case of fire, storm, snow, earthquake, flood, or
similar emergency;
e. In a position which, under or pursuant to
the laws of this State, is designated as a major
nontenured policymaking or advisory position, or as
a policymaking position the performance of the
duties of which ordinarily does not require more
than 8 hours per week.
2. As part of an unemployment work-relief or
work-training program assisted or financed in whole or in
part by any Federal agency or an agency of this State, or
a political subdivision or municipal corporation, by an
individual receiving such work-relief or work-training.
3. In a facility conducted for the purpose of
carrying out a program of rehabilitation for individuals
whose earning capacity is impaired by age or physical or
mental deficiency or injury or providing remunerative
work for individuals who because of their impaired
physical or mental capacity cannot be readily absorbed in
the competitive labor market, by an individual receiving
such rehabilitation or remunerative work.
4. By an inmate of a custodial or penal
institution.
E. The term "employment" shall not include service
performed on or after January 1, 2002 in the employ of a
governmental entity referred to in clause (B) of Section
211.1 if the service is performed in the exercise of duties
as an election official or election worker and the amount of
remuneration received by the individual during the calendar
year for service as an election official or election worker
is less than $1,000.
F. The term "employment" shall not include service
performed in the employ of an Indian tribe if such service is
performed in the exercise of duties:
1. as an elected official;
2. as a member of a legislative body, or a member
of the judiciary, of that Indian tribe;
3. as a worker serving on a temporary basis in case
of fire, storm, snow, earthquake, flood, or similar
emergency;
4. in a position which, under or pursuant to tribal
law, is designated as a major nontenured policymaking or
advisory position, or as a policymaking position the
performance of the duties of which ordinarily does not
require more than 8 hours per week;
5. as part of an unemployment work-relief or
work-training program assisted or financed in whole or in
part by any federal agency or an agency of this State, or
a political subdivision or municipal corporation, or an
Indian tribe, by an individual receiving such work-relief
or work training;
6. in a facility conducted for the purpose of
carrying out a program of rehabilitation for individuals
whose earning capacity is impaired by age or physical or
mental deficiency or injury or providing remunerative
work for individuals who because of their impaired
physical or mental capacity cannot be readily absorbed in
the competitive labor market, by an individual receiving
such rehabilitation or remunerative work;
7. by an inmate of a custodial or penal
institution.
(Source: P.A. 92-441, eff. 1-1-02.)
(820 ILCS 405/1405) (from Ch. 48, par. 555)
Sec. 1405. Financing Benefits for Employees of Local
Governments. A. 1. For the year 1978 and for each calendar
year thereafter, contributions shall accrue and become
payable, pursuant to Section 1400, by each governmental
entity (other than the State of Illinois and its wholly owned
instrumentalities) referred to in clause (B) of Section
211.1, upon the wages paid by such entity with respect to
employment after 1977, unless the entity elects to make
payments in lieu of contributions pursuant to the provisions
of subsection B. Notwithstanding the provisions of Sections
1500 to 1510, inclusive, a governmental entity which has not
made such election shall, for liability for contributions
incurred prior to January 1, 1984, pay contributions equal to
1 percent with respect to wages for insured work paid during
each such calendar year or portion of such year as may be
applicable. As used in this subsection, the word "wages",
defined in Section 234, is subject to all of the provisions
of Section 235.
2. An Indian tribe for which service is exempted from
the federal unemployment tax under Section 3306(c)(7) of the
Federal Unemployment Tax Act may elect to make payments in
lieu of contributions in the same manner and subject to the
same conditions as provided in this Section with regard to
governmental entities, except as otherwise provided in
paragraphs 7, 8, and 9 of subsection B.
B. Any governmental entity subject to subsection A may
elect to make payments in lieu of contributions, in amounts
equal to the amounts of regular and extended benefits paid to
individuals, for any weeks which begin on or after the
effective date of the election, on the basis of wages for
insured work paid to them by the entity during the effective
period of such election. Notwithstanding the preceding
provisions of this subsection and the provisions of
subsection D of Section 1404, with respect to benefit years
beginning prior to July 1, 1989, any adjustment after
September 30, 1989 to the base period wages paid to the
individual by any employer shall not affect the ratio for
determining payments in lieu of contributions of a
governmental entity which has elected to make payments in
lieu of contributions. Provided, however, that with respect
to benefit years beginning on or after July 1, 1989, the
governmental entity shall be required to make payments equal
to 100% of regular benefits, including dependents'
allowances, and 100% of extended benefits, including
dependents' allowances, paid to an individual with respect to
benefit years beginning during the effective period of the
election, but only if the governmental entity: (a) is the
last employer as provided in Section 1502.1 and (b) paid to
the individual receiving benefits, wages for insured work
during his base period. If the governmental entity described
in this paragraph meets the requirements of (a) but not (b),
with respect to benefit years beginning on or after July 1,
1989, it shall be required to make payments in an amount
equal to 50% of regular benefits, including dependents'
allowances, and 50% of extended benefits, including
dependents' allowances, paid to an individual with respect to
benefit years beginning during the effective period of the
election.
1. Any such governmental entity which becomes an
employer on January 1, 1978 pursuant to Section 205 may elect
to make payments in lieu of contributions for not less than
one calendar year beginning with January 1, 1978, provided
that it files its written election with the Director not
later than January 31, 1978.
2. A governmental entity newly created after January 1,
1978, may elect to make payments in lieu of contributions for
a period of not less than one calendar year beginning as of
the first day with respect to which it would, in the absence
of its election, incur liability for the payment of
contributions, provided that it files its written election
with the Director not later than 30 days immediately
following the end of the calendar quarter in which it has
been created.
3. A governmental entity which has incurred liability
for the payment of contributions for at least 2 calendar
years, and is not delinquent in such payment and in the
payment of any interest or penalties which may have accrued,
may elect to make payments in lieu of contributions beginning
January 1 of any calendar year, provided that it files its
written election with the Director prior to such January 1,
and provided, further, that such election shall be for a
period of not less than 2 calendar years.
4. An election to make payments in lieu of contributions
shall not terminate any liability incurred by a governmental
entity for the payment of contributions, interest or
penalties with respect to any calendar quarter which ends
prior to the effective period of the election.
5. The termination by a governmental entity of the
effective period of its election to make payments in lieu of
contributions, and the filing of and subsequent action upon
written notices of termination of election, shall be governed
by the provisions of paragraphs 5 and 6 of Section 1404A,
pertaining to nonprofit organizations.
6. With respect to benefit years beginning prior to July
1, 1989, wages paid to an individual during his base period
by a governmental entity which elects to make payments in
lieu of contributions for less than full time work, performed
during the same weeks in the base period during which the
individual had other insured work, shall not be subject to
payments in lieu of contribution (upon such employer's
request pursuant to the regulation of the Director) so long
as the employer continued after the end of the base period,
and continues during the applicable benefit year, to furnish
such less than full time work to the individual on the same
basis and in substantially the same amount as during the base
period. If the individual is paid benefits with respect to a
week (in the applicable benefit year) after the employer has
ceased to furnish the work hereinabove described, the
governmental entity shall be liable for payments in lieu of
contributions with respect to the benefits paid to the
individual after the date on which the governmental entity
ceases to furnish the work.
7. An Indian tribe may elect to make payments in lieu of
contributions for calendar year 2003, provided that it files
its written election with the Director not later than January
31, 2003, and provided further that it is not delinquent in
the payment of any contributions, interest, or penalties.
8. Failure of an Indian tribe to make a payment in lieu
of contributions, or a payment of interest or penalties due
under this Act, within 90 days after the Department serves
notice of the finality of a determination and assessment
shall cause the Indian tribe to lose the option of making
payments in lieu of contributions, effective as of the
calendar year immediately following the date on which the
Department serves the notice. Notice of the loss of the
option to make payments in lieu of contributions may be
protested in the same manner as a determination and
assessment under Section 2200 of this Act.
9. An Indian tribe that, pursuant to paragraph 8, loses
the option of making payments in lieu of contributions may
again elect to make payments in lieu of contributions for a
calendar year if: (a) the Indian tribe has incurred liability
for the payment of contributions for at least one calendar
year since losing the option pursuant to paragraph 8, (b) the
Indian tribe is not delinquent in the payment of any
liabilities under the Act, including interest or penalties,
and (c) the Indian tribe files its written election with the
Director not later than January 31 of the year with respect
to which it is making the election.
C. As soon as practicable following the close of each
calendar quarter, the Director shall mail to each
governmental entity which has elected to make payments in
lieu of contributions a Statement of the amount due from it
for all the regular and extended benefits paid during the
calendar quarter, together with the names of its workers or
former workers and the amounts of benefits paid to each of
them during the calendar quarter with respect to benefit
years beginning prior to July 1, 1989, on the basis of wages
for insured work paid to them by the governmental entity; or,
with respect to benefit years beginning after June 30, 1989,
if such governmental entity was the last employer as provided
in Section 1502.1 with respect to a benefit year beginning
during the effective period of the election. All of the
provisions of subsection B of Section 1404 pertaining to
nonprofit organizations, not inconsistent with the preceding
sentence, shall be applicable to payments in lieu of
contributions by a governmental entity.
D. The provisions of subsections C through F, inclusive,
of Section 1404, pertaining to nonprofit organizations, shall
be applicable to each governmental entity which has elected
to make payments in lieu of contributions.
E. 1. If an Indian tribe fails to pay any liability
under this Act (including assessments of interest or penalty)
within 90 days after the Department issues a notice of the
finality of a determination and assessment, the Director
shall immediately notify the United States Internal Revenue
Service and the United States Department of Labor.
2. Notices of payment and reporting delinquencies to
Indian tribes shall include information that failure to make
full payment within the prescribed time frame:
a. will cause the Indian tribe to lose the
exemption provided by Section 3306(c)(7) of the Federal
Unemployment Tax Act with respect to the federal
unemployment tax;
b. will cause the Indian tribe to lose the option
to make payments in lieu of contributions.
(Source: P.A. 86-3.)
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly April 24, 2002.
Approved June 24, 2002.
Effective June 24, 2002.
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