100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1491

 

Introduced 2/9/2017, by Sen. Chuck Weaver

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 405/2201  from Ch. 48, par. 681
820 ILCS 405/2201.1  from Ch. 48, par. 681.1

    Amends the Unemployment Insurance Act. Provides that no later than 3 years after the date of an overpayment, rather than 3 years after notification by the Director of an overpayment, an employing unit may file a claim for an adjustment in contributions or a refund. Provides that the Director shall provide statements of employer account balances quarterly rather than semi-annually. Applies to credits and refunds after January 1, 2018. Effective January 1, 2018.


LRB100 09328 JLS 19489 b

 

 

A BILL FOR

 

SB1491LRB100 09328 JLS 19489 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Unemployment Insurance Act is amended by
5changing Sections 2201 and 2201.1 as follows:
 
6    (820 ILCS 405/2201)  (from Ch. 48, par. 681)
7    Sec. 2201. Refund or adjustment of contributions. Not
8later than 3 years after the date of overpayment by upon which
9the Director first notifies an employing unit of that it has
10paid contributions, interest or penalties thereon erroneously,
11the employing unit may file a claim with the Director for an
12adjustment thereof in connection with subsequent contribution
13payments, or for a refund thereof where such adjustment cannot
14be made; provided, however, that no refund or adjustment shall
15be made of any contribution, the amount of which has been
16determined and assessed by the Director, if such contribution
17was paid after the determination and assessment of the Director
18became final, and provided, further, that any such adjustment
19or refund, involving contributions with respect to wages on the
20basis of which benefits have been paid, shall be reduced by the
21amount of benefits so paid. Upon receipt of a claim the
22Director shall make his determination, either allowing such
23claim in whole or in part, or ordering that it be denied, and

 

 

SB1491- 2 -LRB100 09328 JLS 19489 b

1serve notice upon the claimant of such determination. Such
2determination of the Director shall be final at the expiration
3of 20 days from the date of service of such notice unless the
4claimant shall have filed with the Director a written protest
5and a petition for hearing, specifying his objections thereto.
6Upon receipt of such petition within the 20 days allowed, the
7Director shall fix the time and place for a hearing and shall
8notify the claimant thereof. At any hearing held as herein
9provided, the determination of the Director shall be prima
10facie correct and the burden shall be upon the protesting
11employing unit to prove that it is incorrect. All of the
12provisions of this Act applicable to hearings conducted
13pursuant to Section 2200 shall be applicable to hearings
14conducted pursuant to this Section. Upon the conclusion of such
15hearing, a decision shall be made by the Director and notice
16thereof given to the claimant. If the Director shall decide
17that the claim be allowed in whole or in part, or if such
18allowance be ordered by the Court pursuant to Section 2205 and
19the judgment of said Court has become final, the Director
20shall, if practicable, make adjustment without interest in
21connection with subsequent contribution payments by the
22claimant, and if adjustments thereof cannot practicably be made
23in connection with such subsequent contribution payments, then
24the Director shall refund to the claimant the amount so
25allowed, without interest except as otherwise provided in
26Section 2201.1 from moneys in the benefit account established

 

 

SB1491- 3 -LRB100 09328 JLS 19489 b

1by this Act. Nothing herein contained shall prohibit the
2Director from making adjustment or refund upon his own
3initiative, within the time allowed for filing claim therefor,
4provided that the Director shall make no refund or adjustment
5of any contribution, the amount of which he has previously
6determined and assessed, if such contribution was paid after
7the determination and assessment became final.
8    If this State should not be certified for any year by the
9Secretary of Labor of the United States of America, or other
10appropriate Federal agency, under Section 3304 of the Federal
11Internal Revenue Code of 1954, the Director shall refund
12without interest to any instrumentality of the United States
13subject to this Act by virtue of permission granted in an Act
14of Congress, the amount of contributions paid by such
15instrumentality with respect to such year.
16    The Director may by regulation provide that, if there is a
17total credit balance of less than $2 in an employer's account
18with respect to contributions, interest, and penalties, the
19amount may be disregarded by the Director; once disregarded,
20the amount shall not be considered a credit balance in the
21account and shall not be subject to either an adjustment or a
22refund.
23    The changes made to this Section by this amendatory Act of
24the 100th General Assembly apply to refunds and credits after
25January 1, 2018.
26(Source: P.A. 98-1133, eff. 1-1-15.)
 

 

 

SB1491- 4 -LRB100 09328 JLS 19489 b

1    (820 ILCS 405/2201.1)  (from Ch. 48, par. 681.1)
2    Sec. 2201.1. Interest on Overpaid Contributions, Penalties
3and Interest. The Director shall quarterly semi-annually
4furnish each employer with a statement of credit balances in
5the employer's account where the balances with respect to all
6contributions, interest and penalties combined equal or exceed
7$2. Under regulations prescribed by the Director and subject to
8the limitations of Section 2201, the employer may file a
9request for an adjustment or refund of the amount erroneously
10paid. Interest shall be paid on refunds of erroneously paid
11contributions, penalties and interest imposed by this Act,
12except that if any refund is mailed by the Director within 90
13days after the date of the refund claim, no interest shall be
14due or paid. The interest shall begin to accrue as of the date
15of the refund claim and shall be paid at the rate of 1.5% per
16month computed at the rate of 12/365 of 1.5% for each day or
17fraction thereof. Interest paid pursuant to this Section shall
18be paid from monies in the special administrative account
19established by Sections 2100 and 2101. This Section shall apply
20only to refunds of contributions, penalties and interest which
21were paid as the result of wages paid after January 1, 1988.
22    The changes made to this Section by this amendatory Act of
23the 100th General Assembly apply to refunds and credits after
24January 1, 2018.
25(Source: P.A. 98-1133, eff. 1-1-15.)
 

 

 

SB1491- 5 -LRB100 09328 JLS 19489 b

1    Section 99. Effective date. This Act takes effect January
21, 2018.