Bill Text: IL SB3739 | 2011-2012 | 97th General Assembly | Introduced
Bill Title: Amends the Unemployment Insurance Act. Provides that, for an annual administrative fee not to exceed $5, an employer may pay its quarterly contributions due for wages paid in the first 3 quarters of 2013, 2014, and 2015 in specified equal installments. Contains provisions regarding: collection and deposit of the annual administrative fee; interest; and penalties. Effective immediately.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2013-01-08 - Session Sine Die [SB3739 Detail]
Download: Illinois-2011-SB3739-Introduced.html
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1 | AN ACT concerning employment.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Unemployment Insurance Act is amended by | ||||||||||||||||||||||||||
5 | adding Section 1512 and by changing Section 2100 as follows:
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6 | (820 ILCS 405/1512 new) | ||||||||||||||||||||||||||
7 | Sec. 1512. Payments for 2013, 2014, and 2015 contributions. | ||||||||||||||||||||||||||
8 | For an annual
administrative fee not to exceed $5, an employer | ||||||||||||||||||||||||||
9 | may pay its
quarterly contributions due for wages paid in the | ||||||||||||||||||||||||||
10 | first 3 quarters of 2013, 2014, and 2015 in equal installments | ||||||||||||||||||||||||||
11 | if those contributions are paid as
follows: | ||||||||||||||||||||||||||
12 | 1. For contributions due for wages paid in the first | ||||||||||||||||||||||||||
13 | quarter of each year,
one-fourth of the contributions due | ||||||||||||||||||||||||||
14 | must be paid on or before April 30, one-fourth
must be paid | ||||||||||||||||||||||||||
15 | on or before July 31, one-fourth must be paid on or before
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16 | October 31, and one-fourth must be paid on or before | ||||||||||||||||||||||||||
17 | December 31. | ||||||||||||||||||||||||||
18 | 2. In addition to the payments specified in paragraph | ||||||||||||||||||||||||||
19 | 1, for
contributions due for wages paid in the second | ||||||||||||||||||||||||||
20 | quarter of each year, one-third
of the contributions due | ||||||||||||||||||||||||||
21 | must be paid on or before July 31, one-third
must be paid | ||||||||||||||||||||||||||
22 | on or before October 31, and one-third must be paid on or | ||||||||||||||||||||||||||
23 | before
December 31. |
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1 | 3. In addition to the payments specified in paragraphs | ||||||
2 | 1 and 2, for
contributions due for wages paid in the third | ||||||
3 | quarter of each year, one-half of
the contributions due | ||||||
4 | must be paid on or before October 31, and one-half
must be | ||||||
5 | paid on or before December 31. | ||||||
6 | 4. The annual administrative fee assessed for electing | ||||||
7 | to pay under the
installment method shall be collected at | ||||||
8 | the time the employer makes the
first installment payment | ||||||
9 | each year. The fee shall be segregated from the
payment and | ||||||
10 | deposited as provided in Section 2100. | ||||||
11 | 5. Interest does not accrue on any contribution that | ||||||
12 | becomes due for
wages paid in the first 3 quarters of each | ||||||
13 | year if the employer pays the
contribution in accordance | ||||||
14 | with paragraphs 1 through 4. Interest and fees
continue to | ||||||
15 | accrue on prior delinquent contributions and commence | ||||||
16 | accruing
on all contributions due for wages paid in the | ||||||
17 | first 3 quarters of each year
which are not paid in | ||||||
18 | accordance with paragraphs 1 through 3. Penalties may be
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19 | assessed in accordance with this Act. The contributions due | ||||||
20 | for wages
paid in the fourth quarter of 2013, 2014, and | ||||||
21 | 2015 are not affected by this
paragraph and are due and | ||||||
22 | payable in accordance with this Act.
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23 | (820 ILCS 405/2100) (from Ch. 48, par. 660)
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24 | Sec. 2100. Handling of funds - Bond - Accounts.
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25 | A. All contributions
and payments in lieu of contributions |
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1 | collected under this Act, including but
not limited to fund | ||||||
2 | building receipts and receipts attributable to the surcharge | ||||||
3 | established pursuant to Section 1506.5, together
with any | ||||||
4 | interest thereon; all penalties collected pursuant to this Act; | ||||||
5 | any
property or securities acquired through the use thereof; | ||||||
6 | all moneys advanced
to this State's account in the unemployment | ||||||
7 | trust fund pursuant to the
provisions
of Title XII of the | ||||||
8 | Social Security Act, as amended; all moneys directed for
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9 | transfer from the Master Bond Fund or the Title XII Interest | ||||||
10 | Fund to this State's account in the unemployment
trust fund;
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11 | all moneys received
from the Federal government as | ||||||
12 | reimbursements pursuant to Section 204 of
the Federal-State | ||||||
13 | Extended Unemployment Compensation Act of 1970, as amended;
all | ||||||
14 | moneys credited to this State's account in the unemployment | ||||||
15 | trust fund
pursuant to Section 903 of the Federal Social | ||||||
16 | Security Act, as amended;
all administrative fees collected | ||||||
17 | from individuals pursuant to Section 900 or from employing | ||||||
18 | units pursuant to Section 1512 or 2206.1; and all earnings of | ||||||
19 | such property or securities and any interest earned
upon any | ||||||
20 | such moneys shall be paid or turned over to and held by the | ||||||
21 | Director,
as ex-officio custodian of
the clearing account, the | ||||||
22 | unemployment trust fund account and the benefit
account, and by | ||||||
23 | the State Treasurer, as ex-officio custodian of the special
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24 | administrative account, separate
and apart from all public | ||||||
25 | moneys or funds of this State, as hereinafter
provided. Such | ||||||
26 | moneys shall be administered by the Director exclusively
for |
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1 | the purposes of this Act.
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2 | No such moneys shall be paid or expended except upon the | ||||||
3 | direction of the
Director in accordance with such regulations | ||||||
4 | as he shall prescribe pursuant
to the provisions of this Act.
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5 | The State Treasurer shall be liable on his general official | ||||||
6 | bond for the
faithful performance of his duties in connection | ||||||
7 | with the moneys in the
special administrative account provided | ||||||
8 | for under
this Act. Such liability on his official bond shall | ||||||
9 | exist in addition to
the liability upon any separate bond given | ||||||
10 | by him. All sums recovered for
losses sustained by the account | ||||||
11 | shall be
deposited in that account.
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12 | The Director shall be liable on his general official bond | ||||||
13 | for the faithful
performance of his duties in connection with | ||||||
14 | the moneys in the clearing
account, the benefit account and | ||||||
15 | unemployment trust fund account provided
for under this Act. | ||||||
16 | Such liability on his official bond shall exist in
addition to | ||||||
17 | the liability upon any separate bond given by him. All sums
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18 | recovered for losses sustained by any one of the accounts shall | ||||||
19 | be deposited
in the account that sustained such loss.
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20 | The Treasurer shall maintain for such moneys a special
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21 | administrative account. The Director shall
maintain for such | ||||||
22 | moneys 3 separate accounts: a clearing account,
a benefit | ||||||
23 | account and an unemployment trust fund account. All moneys | ||||||
24 | payable
under this Act (except moneys requisitioned from this | ||||||
25 | State's account in
the unemployment trust fund and deposited in | ||||||
26 | the benefit account and moneys directed for deposit into the |
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1 | Special Programs Fund provided for under Section 2107), | ||||||
2 | including
but not limited to moneys directed for transfer from | ||||||
3 | the Master
Bond Fund or the Title XII Interest Fund to this | ||||||
4 | State's account in the unemployment trust fund,
upon
receipt | ||||||
5 | thereof by the Director, shall be immediately deposited in the
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6 | clearing account;
provided, however, that, except as is | ||||||
7 | otherwise provided in this Section,
interest and penalties | ||||||
8 | shall not be deemed a part of the clearing account
but shall be | ||||||
9 | transferred immediately upon clearance thereof to the special
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10 | administrative account; further provided that an amount not to | ||||||
11 | exceed $90,000,000 in payments attributable to the surcharge | ||||||
12 | established pursuant to Section 1506.5, including any interest | ||||||
13 | thereon, shall not be deemed a part of the clearing account but | ||||||
14 | shall be transferred immediately upon clearance thereof to the | ||||||
15 | Title XII Interest Fund.
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16 | After clearance thereof, all other moneys in the clearing | ||||||
17 | account shall
be immediately deposited by the Director with the
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18 | Secretary of the Treasury of the United States of America to | ||||||
19 | the credit
of the account of this State in the unemployment | ||||||
20 | trust fund, established
and maintained pursuant to the Federal | ||||||
21 | Social Security Act, as amended,
except fund building receipts, | ||||||
22 | which shall be deposited into the Master Bond
Fund.
The benefit | ||||||
23 | account shall consist of all moneys requisitioned from this
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24 | State's account in the unemployment trust fund. The moneys in | ||||||
25 | the benefit
account shall be expended in accordance with | ||||||
26 | regulations prescribed by the
Director and solely for the |
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1 | payment of benefits, refunds of contributions,
interest and | ||||||
2 | penalties under the provisions of the Act, the payment of
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3 | health insurance in accordance with Section 410 of this Act, | ||||||
4 | and the transfer
or payment of funds to any Federal or State | ||||||
5 | agency pursuant to reciprocal
arrangements entered into by the | ||||||
6 | Director under the provisions of Section
2700E, except that | ||||||
7 | moneys credited to this State's account in the unemployment
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8 | trust fund pursuant to Section 903 of the Federal Social | ||||||
9 | Security Act, as
amended, shall be used exclusively as provided | ||||||
10 | in subsection B. For purposes
of this Section only, to the | ||||||
11 | extent allowed by applicable legal
requirements, the
payment of | ||||||
12 | benefits includes but is not limited to the payment of | ||||||
13 | principal on
any bonds issued
pursuant to the Illinois | ||||||
14 | Unemployment Insurance Trust Fund Financing Act,
exclusive of | ||||||
15 | any
interest or administrative expenses in connection with the | ||||||
16 | bonds. The
Director
shall, from time to time, requisition from | ||||||
17 | the unemployment trust fund such
amounts, not exceeding the | ||||||
18 | amounts standing to the State's account therein,
as he deems | ||||||
19 | necessary solely for the payment of such benefits, refunds,
and | ||||||
20 | funds, for a reasonable future period. The Director, as | ||||||
21 | ex-officio
custodian of the benefit account, which shall be | ||||||
22 | kept separate and apart
from all other public moneys, shall | ||||||
23 | issue payment of
such benefits, refunds, health insurance and | ||||||
24 | funds solely from the moneys so
received
into the benefit | ||||||
25 | account. However, after January 1, 1987, no payment shall
be | ||||||
26 | drawn on such benefit account unless at the time of drawing |
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1 | there is
sufficient money in the account to make the payment. | ||||||
2 | The Director shall
retain in the clearing account
an amount of | ||||||
3 | interest and
penalties equal to the amount of
interest and | ||||||
4 | penalties to be refunded from the benefit account. After
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5 | clearance thereof, the amount so retained shall be immediately | ||||||
6 | deposited
by the Director, as are all other moneys in the | ||||||
7 | clearing account,
with the Secretary of the Treasury of the | ||||||
8 | United States. If, at any
time, an insufficient amount of | ||||||
9 | interest and penalties is available for
retention in the | ||||||
10 | clearing account, no refund of interest or penalties
shall be | ||||||
11 | made from the benefit account until a sufficient amount is
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12 | available for retention and is so retained, or until the State
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13 | Treasurer, upon the direction of the Director, transfers to the | ||||||
14 | Director
a sufficient amount from the special administrative | ||||||
15 | account, for
immediate deposit in the benefit account.
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16 | Any balance of moneys requisitioned from the unemployment | ||||||
17 | trust fund
which remains unclaimed or unpaid in the benefit | ||||||
18 | account
after the expiration of the period for which such sums | ||||||
19 | were
requisitioned
shall either be deducted from estimates of | ||||||
20 | and may be utilized for authorized
expenditures during | ||||||
21 | succeeding periods, or, in the discretion of the
Director, | ||||||
22 | shall be redeposited with the Secretary of the Treasury of the
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23 | United States to the credit of the State's account in the | ||||||
24 | unemployment
trust fund.
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25 | Moneys in the clearing, benefit and special administrative | ||||||
26 | accounts
shall not be commingled with other State funds but |
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1 | they shall be
deposited as required by law and maintained in | ||||||
2 | separate accounts on the
books of a savings and loan | ||||||
3 | association or bank.
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4 | No bank or savings and loan association shall receive | ||||||
5 | public funds as
permitted by this Section, unless it has | ||||||
6 | complied with the requirements
established pursuant to Section | ||||||
7 | 6 of "An Act relating to certain investments
of public funds by | ||||||
8 | public agencies", approved July 23, 1943, as now or
hereafter
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9 | amended.
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10 | B. Moneys credited to the account of this State in the | ||||||
11 | unemployment
trust fund by the Secretary of the Treasury of the | ||||||
12 | United States
pursuant to Section 903 of the Social Security | ||||||
13 | Act may be
requisitioned from this State's account and used as | ||||||
14 | authorized by
Section 903. Any interest required to be paid on | ||||||
15 | advances
under Title XII of the Social Security Act shall be | ||||||
16 | paid in a timely manner
and shall not be paid, directly or | ||||||
17 | indirectly, by an equivalent reduction
in contributions or | ||||||
18 | payments in lieu of contributions from amounts in this
State's | ||||||
19 | account in the unemployment trust fund. Such moneys may be
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20 | requisitioned and used for the payment of expenses incurred for | ||||||
21 | the
administration of this Act, but only pursuant to a specific
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22 | appropriation by the General Assembly and only if the expenses | ||||||
23 | are
incurred and the moneys are requisitioned after the | ||||||
24 | enactment of an
appropriation law which:
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25 | 1. Specifies the purpose or purposes for which such | ||||||
26 | moneys are
appropriated and the amount or amounts |
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1 | appropriated therefor;
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2 | 2. Limits the period within which such moneys may be | ||||||
3 | obligated to a
period ending not more than 2 years after | ||||||
4 | the date of the enactment of
the appropriation law; and
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5 | 3. Limits the amount which may be obligated during any | ||||||
6 | fiscal year
to an amount which does not exceed the amount | ||||||
7 | by which (a) the aggregate
of the amounts transferred to | ||||||
8 | the account of this State
pursuant to Section
903 of the | ||||||
9 | Social Security Act exceeds (b) the aggregate of the | ||||||
10 | amounts used
by this State pursuant to
this Act and charged | ||||||
11 | against the amounts transferred to the account of this
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12 | State.
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13 | For purposes of paragraph (3) above, amounts obligated for
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14 | administrative purposes pursuant to an appropriation shall be | ||||||
15 | chargeable
against transferred amounts at the exact time the | ||||||
16 | obligation is entered
into. The appropriation, obligation, and | ||||||
17 | expenditure or other disposition
of money appropriated under | ||||||
18 | this subsection shall be accounted for in
accordance with | ||||||
19 | standards established by the United States Secretary of Labor.
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20 | Moneys appropriated as provided herein for the payment of | ||||||
21 | expenses of
administration shall be requisitioned by the | ||||||
22 | Director as needed for the
payment of obligations incurred | ||||||
23 | under such appropriation. Upon
requisition,
such moneys shall | ||||||
24 | be deposited with the State Treasurer, who shall hold
such | ||||||
25 | moneys, as ex-officio custodian thereof, in accordance with the
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26 | requirements of Section 2103 and, upon the direction of the |
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1 | Director,
shall make payments therefrom pursuant to such | ||||||
2 | appropriation. Moneys so
deposited shall, until expended, | ||||||
3 | remain a part of the unemployment trust
fund and, if any will | ||||||
4 | not be expended, shall be returned promptly to the
account of | ||||||
5 | this State in the unemployment trust fund.
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6 | C. The Governor is authorized to apply to the United States
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7 | Secretary of Labor for an advance or advances to this State's | ||||||
8 | account in
the unemployment trust fund pursuant to the | ||||||
9 | conditions set forth in
Title XII of the Federal Social | ||||||
10 | Security Act, as amended. The amount of
any such advance may be | ||||||
11 | repaid from this State's account in the
unemployment trust | ||||||
12 | fund. | ||||||
13 | D. The Director shall annually on or before the first day | ||||||
14 | of March report in writing to the Employment Security Advisory | ||||||
15 | Board concerning the deposits into and expenditures from this | ||||||
16 | State's account in the Unemployment Trust Fund.
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17 | (Source: P.A. 97-1, eff. 3-31-11; 97-621, eff. 11-18-11.)
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18 | Section 99. Effective date. This Act takes effect upon | ||||||
19 | becoming law.
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