Illinois General Assembly - Full Text of HB3397
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Full Text of HB3397  93rd General Assembly

HB3397 93rd General Assembly


093_HB3397

 
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 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 Section 409 as follows:

 6        (820 ILCS 405/409) (from Ch. 48, par. 409)
 7        Sec. 409.  Extended Benefits.
 8        A.  For the purposes of this Section:
 9             1.  "Extended benefit period" means a  period  which
10        begins  with  the third week after a week for which there
11        is a State "on" indicator; and ends with  either  of  the
12        following  weeks,  whichever  occurs later: (1) the third
13        week after the first week for  which  there  is  a  State
14        "off"  indicator,  or (2) the thirteenth consecutive week
15        of such period.  No extended benefit period  shall  begin
16        by reason of a State "on" indicator before the fourteenth
17        week  following  the  end  of  a  prior  extended benefit
18        period.
19             2.  There is a "State 'on' indicator" for a week:
20                  (a)  if the Director determines, in  accordance
21             with  the regulations of the United States Secretary
22             of Labor or other appropriate Federal  agency,  that
23             for  the  period  consisting  of  such  week and the
24             immediately preceding  twelve  weeks,  the  rate  of
25             insured  unemployment  (not  seasonally adjusted) in
26             this State (a) equaled or exceeded 4% and equaled or
27             exceeded 120% of the average of such rates  for  the
28             corresponding  13-week  period ending in each of the
29             preceding two calendar  years,  or  (b)  equaled  or
30             exceeded 5%; for weeks beginning after September 25,
31             1982  (1)  equaled  or  exceeded  5%  and equaled or
 
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 1             exceeded 120% of the average of such rates  for  the
 2             corresponding  13-week  period ending in each of the
 3             preceding  2  calendar  years,  or  (2)  equaled  or
 4             exceeded 6 percent; or
 5                  (b)  if the United States  Secretary  of  Labor
 6             determines  that  (1)  the  average  rate  of  total
 7             unemployment in this State (seasonally adjusted) for
 8             the  period  of  the  most recent 3 months for which
 9             data for all states are published before  the  close
10             of  the  week  equals  or  exceeds 6.5%, and (2) the
11             average rate of total  unemployment  in  this  State
12             (seasonally   adjusted)   for   the  3-month  period
13             referred to in clause (1) equals or exceeds 110%  of
14             the   average   for   either   (or   both)   of  the
15             corresponding  3-month  periods  ending  in  the   2
16             preceding calendar years.
17             3.  There is a "State 'off' indicator" for a week:
18                  (a)  if  the Director determines, in accordance
19             with the regulations of the United States  Secretary
20             of  Labor  or other appropriate Federal agency, that
21             for the period  consisting  of  such  week  and  the
22             immediately  preceding  twelve  weeks,  the  rate of
23             insured unemployment (not  seasonally  adjusted)  in
24             this  State  (a)  was less than 5% and was less than
25             120%  of  the  average  of  such   rates   for   the
26             corresponding  13-week  period ending in each of the
27             preceding 2 calendar years, or (b) was less than 4%;
28             and for weeks beginning after  September  25,  1982,
29             (1)  was  less  than  6%  and  less than 120% of the
30             average of such rates for the corresponding  13-week
31             period  ending  in  each of the preceding 2 calendar
32             years, or (2) was less than 5%; and
33                  (b)  if the United States  Secretary  of  Labor
34             determines  that  (1)  the  average  rate  of  total
 
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 1             unemployment in this State (seasonally adjusted) for
 2             the  period  of  the  most recent 3 months for which
 3             data for all states are published before  the  close
 4             of  the  week was less than 6.5%, or (2) the average
 5             rate of total unemployment in this State (seasonally
 6             adjusted) for the  3-month  period  referred  to  in
 7             clause (1) is less than 110% of the average for both
 8             of the corresponding 3-month periods ending in the 2
 9             preceding calendar years.
10             4.  "Rate  of insured unemployment", for the purpose
11        of paragraphs 2 and 3, means the  percentage  derived  by
12        dividing  (a)  the  average  weekly number of individuals
13        filing claims for "regular benefits" in  this  State  for
14        weeks  of unemployment with respect to the most recent 13
15        consecutive week period, as determined by the Director on
16        the basis of his reports to the United  States  Secretary
17        of  Labor or other appropriate Federal agency, by (b) the
18        average monthly employment covered under this Act for the
19        first four of the  most  recent  six  completed  calendar
20        quarters ending before the close of such 13-week period.
21             5.  "Regular  benefits"  means  benefits, other than
22        extended benefits and additional benefits, payable to  an
23        individual  (including dependents' allowances) under this
24        Act or under any other  State  unemployment  compensation
25        law  (including  benefits  payable  to  Federal  civilian
26        employees and ex-servicemen pursuant to 5 U.S.C.  chapter
27        85).
28             6.  "Extended  benefits"  means  benefits (including
29        benefits  payable  to  Federal  civilian  employees   and
30        ex-servicemen pursuant to 5 U.S.C. chapter 85) payable to
31        an  individual  under  the provisions of this Section for
32        weeks which begin in his eligibility period.
33             7.  "Additional  benefits"  means  benefits  totally
34        financed by a State and payable to exhaustees (as defined
 
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 1        in  subsection  C)  by  reason  of  conditions  of   high
 2        unemployment  or by reason of other specified factors. If
 3        an individual is eligible to  receive  extended  benefits
 4        under  the  provisions of this Section and is eligible to
 5        receive additional benefits with respect to the same week
 6        under the law of another State, he  may  elect  to  claim
 7        either  extended  benefits  or  additional  benefits with
 8        respect to the week.
 9             8.  "Eligibility period" means the period consisting
10        of the weeks in an individual's benefit year which  begin
11        in  an  extended  benefit period and, if his benefit year
12        ends within  such  extended  benefit  period,  any  weeks
13        thereafter which begin in such period.
14             9.  Notwithstanding   any   of   the  provisions  of
15        Sections 1404, 1405B, and  1501,  no  employer  shall  be
16        liable  for  payments in lieu of contributions, and wages
17        shall not become benefit wages, by reason of the  payment
18        of  extended benefits which are wholly reimbursed to this
19        State  by  the  Federal  Government.    With  respect  to
20        extended benefits, paid prior  to  July  1,  1989,  wages
21        shall  become  benefit wages under Section 1501 only when
22        an individual is first paid such benefits with respect to
23        his eligibility period which are not wholly reimbursed to
24        this State by the Federal Government. Extended  benefits,
25        paid  on  or  after  July  1,  1989, shall become benefit
26        charges under Section 1501.1 only when any individual  is
27        paid such benefits with respect to his eligibility period
28        which   are   not   wholly   reimbursed  by  the  Federal
29        Government.
30        B.  An individual shall be eligible to  receive  extended
31    benefits  pursuant  to this Section for any week which begins
32    in his eligibility period if, with respect to such  week  (1)
33    he  has  been  paid  wages  for  insured work during his base
34    period equal to at least 1 1/2 times the wages paid  in  that
 
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 1    calendar  quarter of his base period in which such wages were
 2    highest, provided  that  this  provision  applies  only  with
 3    respect  to  weeks beginning after September 25, 1982; (2) he
 4    has met the requirements of Section 500E of this Act; (3)  he
 5    is  an  exhaustee;  and  (4) except  when the result would be
 6    inconsistent with the provisions  of  this  Section,  he  has
 7    satisfied  the  requirements  of  this Act for the receipt of
 8    regular benefits.
 9        C.  An individual is an exhaustee with respect to a  week
10    which begins in his eligibility period if:
11             1.  Prior  to  such  week  (a) he has received, with
12        respect to his current benefit year  that  includes  such
13        week,  the  maximum  total amount of benefits to which he
14        was entitled under the provisions of  Section  403B,  and
15        all   of  the  regular  benefits  (including  dependents'
16        allowances) to which he had entitlement (if any)  on  the
17        basis  of  wages  or  employment  under  any  other State
18        unemployment compensation law; or (b) he has received all
19        the regular benefits available to him with respect to his
20        current benefit year that includes such week, under  this
21        Act  and  under any other State unemployment compensation
22        law, after a cancellation of some  or  all  of  his  wage
23        credits  or the partial or total reduction of his regular
24        benefit rights; or (c) his benefit year  terminated,  and
25        he  cannot  meet  the  qualifying  wage  requirements  of
26        Section  500E  of  this  Act  or  the  qualifying wage or
27        employment requirements of any other  State  unemployment
28        compensation  law  to  establish a new benefit year which
29        would include such week  or,  having  established  a  new
30        benefit  year  that  includes such week, he is ineligible
31        for regular benefits by reason of Section 607 of this Act
32        or a like  provision  of  any  other  State  unemployment
33        compensation law; and
34             2.  For such week (a) he has no right to benefits or
 
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 1        allowances,  as  the  case  may  be,  under  the Railroad
 2        Unemployment Insurance Act, or such other Federal laws as
 3        are  specified  in  regulations  of  the  United   States
 4        Secretary  of  Labor or other appropriate Federal agency;
 5        and (b) he has not received and is not  seeking  benefits
 6        under the unemployment compensation law of Canada, except
 7        that  if  he is seeking such benefits and the appropriate
 8        agency finally determines that  he  is  not  entitled  to
 9        benefits under such law, this clause shall not apply.
10             3.  For  the  purposes  of  clauses  (a)  and (b) of
11        paragraph 1 of this subsection, an  individual  shall  be
12        deemed  to  have  received,  with  respect to his current
13        benefit year, the maximum total  amount  of  benefits  to
14        which  he  was entitled or all of the regular benefits to
15        which he had entitlement, or all of the regular  benefits
16        available  to him, as the case may be, even though (a) as
17        a result of a  pending  reconsideration  or  appeal  with
18        respect  to the "finding" defined in Section 701, or of a
19        pending appeal with respect to  wages  or  employment  or
20        both under any other State unemployment compensation law,
21        he  may subsequently be determined to be entitled to more
22        regular benefits; or  (b)  by  reason  of  a  seasonality
23        provision  in a State unemployment compensation law which
24        establishes the weeks  of  the  year  for  which  regular
25        benefits may be paid to individuals on the basis of wages
26        in  seasonal  employment  he  may  be entitled to regular
27        benefits for future  weeks  but  such  benefits  are  not
28        payable with respect to the week for which he is claiming
29        extended  benefits,  provided  that  he  is  otherwise an
30        exhaustee under the provisions of  this  subsection  with
31        respect  to  his  rights  to regular benefits, under such
32        seasonality provision, during the portion of the year  in
33        which  that  week  occurs;  or  (c)  having established a
34        benefit year, no regular benefits are payable to him with
 
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 1        respect to  such  year  because  his  wage  credits  were
 2        cancelled  or his rights to regular benefits were totally
 3        reduced   by   reason   of   the   application    of    a
 4        disqualification   provision   of  a  State  unemployment
 5        compensation law.
 6        D. 1.  The provisions of  Section  607  and  the  waiting
 7        period   requirements   of  Section  500D  shall  not  be
 8        applicable to any week with respect to which benefits are
 9        otherwise payable under this Section.
10             2.  An individual shall not cease to be an exhaustee
11        with respect to any week  solely  because  he  meets  the
12        qualifying  wage  requirements of Section 500E for a part
13        of such week.
14             3.  For the purposes  of  this  Section,  the  "base
15        period"  referred to in Sections 601 and 602 shall be the
16        base period with respect to the benefit year in which the
17        individual's eligibility period begins.
18        E.  With  respect  to  any  week  which  begins  in   his
19    eligibility  period,  an exhaustee's "weekly extended benefit
20    amount" shall be the same as his weekly benefit amount during
21    his benefit year which includes such week or, if such week is
22    not in a benefit year, during his applicable benefit year, as
23    defined in regulations issued by the United States  Secretary
24    of  Labor  or  other  appropriate  Federal  agency.   If  the
25    exhaustee  had more than one weekly benefit amount during his
26    benefit year, his weekly extended benefit amount with respect
27    to such week shall be  the  latest  of  such  weekly  benefit
28    amounts.
29        F.  An  eligible  exhaustee shall be entitled, during any
30    eligibility period, to a maximum  total  amount  of  extended
31    benefits equal to the lesser of the following amounts:
32             1.  Fifty  percent  of  the  maximum total amount of
33        benefits to which he  was  entitled  under  Section  403B
34        during his applicable benefit year; or
 
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 1             2.  Thirteen   times  his  weekly  extended  benefit
 2        amount as determined under subsection E.
 3             2.1.  Effective with respect to weeks beginning in a
 4        high unemployment period,  this  subsection  F  shall  be
 5        applied by substituting "eighty" for "fifty" in paragraph
 6        1  and  "twenty"  for  "thirteen"  in  paragraph  2.  For
 7        purposes  of  this paragraph, the term "high unemployment
 8        period" means any period during which an extended benefit
 9        period would be in effect if paragraph 2 of subsection  A
10        were applied by substituting "8%" for "6.5%".
11             3.  Notwithstanding  subparagraphs 1, and 2, and 2.1
12        of this subsection F, and  if  the  benefit  year  of  an
13        individual  ends  within  an extended benefit period, the
14        remaining  balance  of   extended   benefits   that   the
15        individual would, but for this subsection F, be otherwise
16        entitled  to receive in that extended benefit period, for
17        weeks of unemployment beginning  after  the  end  of  the
18        benefit  year,  shall  be reduced (but not below zero) by
19        the  product  of  the  number  of  weeks  for  which  the
20        individual received any  amounts  as  trade  readjustment
21        allowances  as  defined  in the federal Trade Act of 1974
22        within that benefit year multiplied by his weekly benefit
23        amount for extended benefits.
24        G. 1.  A claims adjudicator shall examine the first claim
25        filed by an individual with respect  to  his  eligibility
26        period  and,  on  the  basis  of  the  information in his
27        possession, shall make an  "extended  benefits  finding".
28        Such  finding  shall  state whether or not the individual
29        has  met  the  requirement  of  subsection  B(1),  is  an
30        exhaustee and, if he  is,  his  weekly  extended  benefit
31        amount  and the maximum total amount of extended benefits
32        to which he is entitled.  The  claims  adjudicator  shall
33        promptly  notify the individual of his "extended benefits
34        finding", and shall promptly notify the individual's most
 
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 1        recent employing unit,  with  respect  to  benefit  years
 2        beginning  on  or after July 1, 1989 and the individual's
 3        last employer (referred to in Section  1502.1)  that  the
 4        individual has filed a claim for extended benefits.   The
 5        claims  adjudicator may reconsider his "extended benefits
 6        finding" at any time within one year after the  close  of
 7        the  individual's  eligibility period, and shall promptly
 8        notify the individual of such reconsidered finding.   All
 9        of  the provisions of this Act applicable to reviews from
10        findings  or  reconsidered  findings  made  pursuant   to
11        Sections  701 and 703 which are not inconsistent with the
12        provisions of this  subsection  shall  be  applicable  to
13        reviews  from extended benefits findings and reconsidered
14        extended benefits findings.
15             2.  If,  pursuant  to  the reconsideration or appeal
16        with respect to a "finding", referred to in  paragraph  3
17        of  subsection C, an exhaustee is found to be entitled to
18        more regular benefits and, by reason thereof, is entitled
19        to more extended benefits, the claims  adjudicator  shall
20        make  a  reconsidered extended benefits finding and shall
21        promptly notify the exhaustee thereof.
22        H.  Whenever an extended benefit period is  to  begin  in
23    this  State  because  there  is  a  State  "on" indicator, or
24    whenever an extended benefit period is to end in  this  State
25    because  there is a State "off" indicator, the Director shall
26    make an appropriate public announcement.
27        I.  Computations required by the provisions of  paragraph
28    6 of subsection A shall be made by the Director in accordance
29    with regulations prescribed by the United States Secretary of
30    Labor, or other appropriate Federal agency.
31        J. 1.  Interstate  Benefit  Payment  Plan  means the plan
32        approved  by  the  Interstate  Conference  of  Employment
33        Security Agencies under which benefits shall  be  payable
34        to  unemployed  individuals  absent  from  the  state (or
 
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 1        states) in which benefit credits have been accumulated.
 2             2.  An individual who commutes  from  his  state  of
 3        residence  to  work  in  another  state  and continues to
 4        reside in such state of residence while filing his  claim
 5        for  unemployment insurance under this Section of the Act
 6        shall  not  be  considered  filing  a  claim  under   the
 7        Interstate  Benefit  Payment Plan so long as he files his
 8        claim in and continues to report to the employment office
 9        under the regulations applicable to intrastate  claimants
10        in the state in which he was so employed.
11             3.  "State"  when  used  in this subsection includes
12        States of the United States of America, the  District  of
13        Columbia,   Puerto  Rico  and  the  Virgin  Islands.  For
14        purposes of this subsection, the term "state" shall  also
15        be construed to include Canada.
16             4.  Notwithstanding any other provision of this Act,
17        effective  with  weeks beginning on or after June 1, 1981
18        an individual shall be eligible for a maximum of 2  weeks
19        of benefits payable under this Section after he files his
20        initial  claim  for  extended  benefits  in  an  extended
21        benefit  period,  as defined in paragraph 1 of subsection
22        A, under the Interstate Benefit Payment Plan unless there
23        also exists an extended benefit  period,  as  defined  in
24        paragraph  1  of  subsection  A,  in the state where such
25        claim is filed. Such maximum eligibility  shall  continue
26        as  long  as  the  individual continues to file his claim
27        under    the    Interstate    Benefit    Payment    Plan,
28        notwithstanding that  the  individual  moves  to  another
29        state  where  an extended benefit period exists and files
30        for weeks prior to his initial Interstate claim  in  that
31        state.
32             5.  To  assure  full  tax credit to the employers of
33        this  state  against  the  tax  imposed  by  the  Federal
34        Unemployment Tax Act, the Director shall take any  action
 
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 1        or  issue any regulations necessary in the administration
 2        of this subsection to insure that its provisions  are  so
 3        interpreted  and  applied  as to meet the requirements of
 4        such Federal Act as  interpreted  by  the  United  States
 5        Secretary of Labor or other appropriate Federal agency.
 6        K. 1.  Notwithstanding  any other provisions of this Act,
 7        an individual shall be  ineligible  for  the  payment  of
 8        extended  benefits  for  any  week of unemployment in his
 9        eligibility period if the Director finds that during such
10        period:
11                  a.  he failed to accept any offer  of  suitable
12             work  (as defined in paragraph 3 below) or failed to
13             apply for any suitable work to which he was referred
14             by the Director; or
15                  b.  he failed to  actively  engage  in  seeking
16             work as prescribed under paragraph 5 below.
17             2.  Any individual who has been found ineligible for
18        extended   benefits   by  reason  of  the  provisions  of
19        paragraph 1 of this subsection shall be  denied  benefits
20        beginning  with  the  first day of the week in which such
21        failure has occurred and until he has  been  employed  in
22        each  of  4 subsequent weeks (whether or not consecutive)
23        and has earned remuneration equal to at least 4 times his
24        weekly benefit amount.
25             3.  For purposes of this subsection only,  the  term
26        "suitable  work"  means,  with respect to any individual,
27        any work which is within such individual's  capabilities,
28        provided,   however,   that   the  gross  average  weekly
29        remuneration payable for the work must exceed the sum of:
30                  a.  the individual's  extended  weekly  benefit
31             amount as determined under subsection E above plus
32                  b.  the   amount,   if   any,  of  supplemental
33             unemployment  benefits  (as   defined   in   Section
34             501(c)(17)(D)  of the Internal Revenue Code of 1954)
 
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 1             payable  to  such  individual  for  such  week;  and
 2             further,
 3                  c.  pays wages not less than the higher of --
 4                       (i)  the minimum wage provided by  Section
 5                  6  (a)(1)  of  the  Fair Labor Standards Act of
 6                  1938, without regard to any exemption; or
 7                       (ii)  the  applicable   state   or   local
 8                  minimum wage;
 9                  d.  provided, however, that no individual shall
10             be denied extended benefits for failure to accept an
11             offer  of  or  apply  for  any  job  which meets the
12             definition of suitability as described above if:
13                       (i)  the position was not offered to  such
14                  individual  in  writing  or was not listed with
15                  the employment service;
16                       (ii)  such failure could not result  in  a
17                  denial  of  benefits  under  the  definition of
18                  suitable work for regular benefits claimants in
19                  Section 603 to the extent that the criteria  of
20                  suitability    in    that   Section   are   not
21                  inconsistent  with  the  provisions   of   this
22                  paragraph 3;
23                       (iii)  the       individual      furnishes
24                  satisfactory evidence to the Director that  his
25                  prospects  for  obtaining work in his customary
26                  occupation within a reasonably short period are
27                  good. If such evidence is  deemed  satisfactory
28                  for  this purpose, the determination of whether
29                  any work  is  suitable  with  respect  to  such
30                  individual shall be made in accordance with the
31                  definition   of   suitable   work  for  regular
32                  benefits in Section 603 without regard  to  the
33                  definition specified by this paragraph.
34             4.  Notwithstanding the provisions of paragraph 3 to
 
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 1        the contrary, no work shall be deemed to be suitable work
 2        for  an  individual  which does not accord with the labor
 3        standard provisions required by Section 3304(a)(5) of the
 4        Internal Revenue Code of 1954 and set forth herein  under
 5        Section 603 of this Act.
 6             5.  For  the purposes of subparagraph b of paragraph
 7        1, an individual shall be treated as actively engaged  in
 8        seeking work during any week if --
 9                  a.  the  individual has engaged in a systematic
10             and sustained effort  to  obtain  work  during  such
11             week, and
12                  b.  the  individual furnishes tangible evidence
13             that he has engaged in such effort during such week.
14             6.  The   employment   service   shall   refer   any
15        individual entitled to extended benefits under  this  Act
16        to  any suitable work which meets the criteria prescribed
17        in paragraph 3.
18             7.  Notwithstanding any other provision of this Act,
19        an individual shall  not be eligible to receive  extended
20        benefits,  otherwise  payable  under  this  Section, with
21        respect to any week of unemployment  in  his  eligibility
22        period  if  such  individual has been held ineligible for
23        benefits under the provisions of Sections 601, 602 or 603
24        of this Act until such  individual  had  requalified  for
25        such  benefits  by returning to employment and satisfying
26        the monetary  requalification  provision  by  earning  at
27        least his weekly benefit amount.
28             8.  This  subsection  shall  be  effective for weeks
29        beginning on or after March 31, 1981, and before March 7,
30        1993, and for weeks beginning  on  or  after  January  1,
31        1995.
32        L.  Notwithstanding  any  other  provision of this Act to
33    the contrary, the Governor may require, by  Executive  Order,
34    that  an  individual  who  would  otherwise  be  eligible for
 
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 1    benefits  under  this  Section  exhaust  all  entitlement  to
 2    benefits for which he or she is eligible  under  the  federal
 3    Temporary  Unemployment  Compensation  Act  of  2002  or  any
 4    similar federal law prior to receiving any benefits for which
 5    he or she might otherwise be eligible under this Section.
 6        M.  If,  pursuant  to subdivision 2(b) of subsection A of
 7    this Section, there is an "on"  indicator  for  the  week  in
 8    which  this amendatory Act of the 93rd General Assembly takes
 9    effect, this Section shall be applied as though that week  is
10    the  first week for which there is an "on" indicator pursuant
11    to subdivision 2(b) of subsection A of this Section.
12    (Source: P.A. 86-3; 87-1266.)

13        Section 99.  Effective date.  This Act takes effect  upon
14    becoming law.