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| [ Introduced ] | [ Engrossed ] | [ House Amendment 001 ] |
91_HB2654enr HB2654 Enrolled LRB9102422WHmg 1 AN ACT to amend the Unemployment Insurance Act by 2 changing Sections 235, 401, 901, 1500, 1506.3, 1507, 1900, 3 and 2100. 4 Be it enacted by the People of the State of Illinois, 5 represented in the General Assembly: 6 Section 5. The Unemployment Insurance Act is amended by 7 changing Sections 235, 401, 901, 1500, 1506.3, 1507, 1900, 8 and 2100 as follows: 9 (820 ILCS 405/235) (from Ch. 48, par. 345) 10 Sec. 235. The term "wages" does not include: 11 A. That part of the remuneration which, after 12 remuneration equal to $6,000 with respect to employment has 13 been paid to an individual by an employer during any calendar 14 year after 1977 and before 1980, is paid to such individual 15 by such employer during such calendar year; and that part of 16 the remuneration which, after remuneration equal to $6,500 17 with respect to employment has been paid to an individual by 18 an employer during each calendar year 1980 and 1981, is paid 19 to such individual by such employer during that calendar 20 year; and that part of the remuneration which, after 21 remuneration equal to $7,000 with respect to employment has 22 been paid to an individual by an employer during the calendar 23 year 1982 is paid to such individual by such employer during 24 that calendar year. 25 With respect to the first calendar quarter of 1983, the 26 term "wages" shall include only the remuneration paid to an 27 individual by an employer during such quarter with respect to 28 employment which does not exceed $7,000. With respect to the 29 three calendar quarters, beginning April 1, 1983, the term 30 "wages" shall include only the remuneration paid to an 31 individual by an employer during such period with respect to HB2654 Enrolled -2- LRB9102422WHmg 1 employment which when added to the "wages" (as defined in the 2 preceding sentence) paid to such individual by such employer 3 during the first calendar quarter of 1983, does not exceed 4 $8,000. 5 With respect to the calendar year 1984, the term "wages" 6 shall include only the remuneration paid to an individual by 7 an employer during that period with respect to employment 8 which does not exceed $8,000; with respect to calendar years 9 1985, 1986 and 1987, the term "wages" shall include only the 10 remuneration paid to such individual by such employer during 11 that calendar year with respect to employment which does not 12 exceed $8,500. 13 With respect to the calendar years 1988 through 2003199914and calendar year 20052001and each calendar year 15 thereafter, the term "wages" shall include only the 16 remuneration paid to an individual by an employer during that 17 period with respect to employment which does not exceed 18 $9,000. 19 With respect to the calendar year 20042000, the term 20 "wages" shall include only the remuneration paid to an 21 individual by an employer during that period with respect to 22 employment which does not exceed $10,000. The remuneration 23 paid to an individual by an employer with respect to 24 employment in another State or States, upon which 25 contributions were required of such employer under an 26 unemployment compensation law of such other State or States, 27 shall be included as a part of the remuneration equal to 28 $6,000, $6,500, $7,000, $8,000, $8,500, $9,000, or $10,000, 29 as the case may be, herein referred to. For the purposes of 30 this subsection, any employing unit which succeeds to the 31 organization, trade, or business, or to substantially all of 32 the assets of another employing unit, or to the organization, 33 trade, or business, or to substantially all of the assets of 34 a distinct severable portion of another employing unit, shall HB2654 Enrolled -3- LRB9102422WHmg 1 be treated as a single unit with its predecessor for the 2 calendar year in which such succession occurs, and any 3 employing unit which is owned or controlled by the same 4 interests which own or control another employing unit shall 5 be treated as a single unit with the unit so owned or 6 controlled by such interests for any calendar year throughout 7 which such ownership or control exists. This subsection 8 applies only to Sections 1400, 1405A, and 1500. 9 B. The amount of any payment (including any amount paid 10 by an employer for insurance or annuities, or into a fund, to 11 provide for any such payment), made to, or on behalf of, an 12 individual or any of his dependents under a plan or system 13 established by an employer which makes provision generally 14 for individuals performing services for him (or for such 15 individuals generally and their dependents) or for a class or 16 classes of such individuals (or for a class or classes of 17 such individuals and their dependents), on account of (1) 18 sickness or accident disability (except those sickness or 19 accident disability payments which would be includable as 20 "wages" in Section 3306(b)(2)(A) of the Federal Internal 21 Revenue Code of 1954, in effect on January 1, 1985, such 22 includable payments to be attributable in such manner as 23 provided by Section 3306(b) of the Federal Internal Revenue 24 Code of 1954, in effect on January 1, 1985), or (2) medical 25 or hospitalization expenses in connection with sickness or 26 accident disability, or (3) death. 27 C. Any payment made to, or on behalf of, an employee or 28 his beneficiary which would be excluded from "wages" by 29 subparagraph (A), (B), (C), (D), (E), (F) or (G), of Section 30 3306(b)(5) of the Federal Internal Revenue Code of 1954, in 31 effect on January 1, 1985. 32 D. The amount of any payment on account of sickness or 33 accident disability, or medical or hospitalization expenses 34 in connection with sickness or accident disability, made by HB2654 Enrolled -4- LRB9102422WHmg 1 an employer to, or on behalf of, an individual performing 2 services for him after the expiration of six calendar months 3 following the last calendar month in which the individual 4 performed services for such employer. 5 E. Remuneration paid in any medium other than cash by an 6 employing unit to an individual for service in agricultural 7 labor as defined in Section 214. 8 F. The amount of any supplemental payment made by an 9 employer to an individual performing services for him, other 10 than remuneration for services performed, under a shared work 11 plan approved by the Director pursuant to Section 407.1. 12 (Source: P.A. 89-633, eff. 1-1-97; 90-554, eff. 12-12-97.) 13 (820 ILCS 405/401) (from Ch. 48, par. 401) 14 Sec. 401. Weekly Benefit Amount - Dependents' 15 Allowances. 16 A. With respect to any week beginning prior to April 24, 17 1983, an individual's weekly benefit amount shall be an 18 amount equal to the weekly benefit amount as defined in this 19 Act as in effect on November 30, 1982. 20 B. 1. With respect to any week beginning on or after 21 April 24, 1983 and before January 3, 1988, an individual's 22 weekly benefit amount shall be 48% of his prior average 23 weekly wage, rounded (if not already a multiple of one 24 dollar) to the next higher dollar; provided, however, that 25 the weekly benefit amount cannot exceed the maximum weekly 26 benefit amount, and cannot be less than 15% of the statewide 27 average weekly wage, rounded (if not already a multiple of 28 one dollar) to the next higher dollar. However, the weekly 29 benefit amount for an individual who has established a 30 benefit year beginning before April 24, 1983, shall be 31 determined, for weeks beginning on or after April 24, 1983 32 claimed with respect to that benefit year, as provided under 33 this Act as in effect on November 30, 1982. With respect to HB2654 Enrolled -5- LRB9102422WHmg 1 any week beginning on or after January 3, 1988 and before 2 January 1, 1993, an individual's weekly benefit amount shall 3 be 49% of his prior average weekly wage, rounded (if not 4 already a multiple of one dollar) to the next higher dollar; 5 provided, however, that the weekly benefit amount cannot 6 exceed the maximum weekly benefit amount, and cannot be less 7 than $51. With respect to any week beginning on or after 8 January 3, 1993, an individual's weekly benefit amount shall 9 be 49.5% of his prior average weekly wage, rounded (if not 10 already a multiple of one dollar) to the next higher dollar; 11 provided, however, that the weekly benefit amount cannot 12 exceed the maximum weekly benefit amount and cannot be less 13 than $51. 14 2. For the purposes of this subsection: 15 With respect to any week beginning on or after April 24, 16 1983, an individual's "prior average weekly wage" means the 17 total wages for insured work paid to that individual during 18 the 2 calendar quarters of his base period in which such 19 total wages were highest, divided by 26. If the quotient is 20 not already a multiple of one dollar, it shall be rounded to 21 the nearest dollar; however if the quotient is equally near 2 22 multiples of one dollar, it shall be rounded to the higher 23 multiple of one dollar. 24 "Determination date" means June 1, 1982, December 1, 1982 25 and December 1 of each succeeding calendar year thereafter. 26 However, if as of June 30, 1982, or any June 30 thereafter, 27 the net amount standing to the credit of this State's account 28 in the unemployment trust fund (less all outstanding advances 29 to that account, including advances pursuant to Title XII of 30 the federal Social Security Act) is greater than 31 $100,000,000, "determination date" shall mean December 1 of 32 that year and June 1 of the succeeding year. Notwithstanding 33 the preceding sentence, for the purposes of this Act only, 34 there shall be no June 1 determination date in any year after HB2654 Enrolled -6- LRB9102422WHmg 1 1986. 2 "Determination period" means, with respect to each June 1 3 determination date, the 12 consecutive calendar months ending 4 on the immediately preceding December 31 and, with respect to 5 each December 1 determination date, the 12 consecutive 6 calendar months ending on the immediately preceding June 30. 7 "Benefit period" means the 12 consecutive calendar month 8 period beginning on the first day of the first calendar month 9 immediately following a determination date, except that, with 10 respect to any calendar year in which there is a June 1 11 determination date, "benefit period" shall mean the 6 12 consecutive calendar month period beginning on the first day 13 of the first calendar month immediately following the 14 preceding December 1 determination date and the 6 consecutive 15 calendar month period beginning on the first day of the first 16 calendar month immediately following the June 1 determination 17 date. Notwithstanding the foregoing sentence, the 6 calendar 18 months beginning January 1, 1982 and ending June 30, 1982 19 shall be deemed a benefit period with respect to which the 20 determination date shall be June 1, 1981. 21 "Gross wages" means all the wages paid to individuals 22 during the determination period immediately preceding a 23 determination date for insured work, and reported to the 24 Director by employers prior to the first day of the third 25 calendar month preceding that date. 26 "Covered employment" for any calendar month means the 27 total number of individuals, as determined by the Director, 28 engaged in insured work at mid-month. 29 "Average monthly covered employment" means one-twelfth of 30 the sum of the covered employment for the 12 months of a 31 determination period. 32 "Statewide average annual wage" means the quotient, 33 obtained by dividing gross wages by average monthly covered 34 employment for the same determination period, rounded (if not HB2654 Enrolled -7- LRB9102422WHmg 1 already a multiple of one cent) to the nearest cent. 2 "Statewide average weekly wage" means the quotient, 3 obtained by dividing the statewide average annual wage by 52, 4 rounded (if not already a multiple of one cent) to the 5 nearest cent. Notwithstanding any provisions of this Section 6 to the contrary, the statewide average weekly wage for the 7 benefit period beginning July 1, 1982 and ending December 31, 8 1982 shall be the statewide average weekly wage in effect for 9 the immediately preceding benefit period plus one-half of the 10 result obtained by subtracting the statewide average weekly 11 wage for the immediately preceding benefit period from the 12 statewide average weekly wage for the benefit period 13 beginning July 1, 1982 and ending December 31, 1982 as such 14 statewide average weekly wage would have been determined but 15 for the provisions of this paragraph. Notwithstanding any 16 provisions of this Section to the contrary, the statewide 17 average weekly wage for the benefit period beginning April 18 24, 1983 and ending January 31, 1984 shall be $321 and for 19 the benefit period beginning February 1, 1984 and ending 20 December 31, 1986 shall be $335, and for the benefit period 21 beginning January 1, 1987, and ending December 31, 1987, 22 shall be $350, except that for an individual who has 23 established a benefit year beginning before April 24, 1983, 24 the statewide average weekly wage used in determining 25 benefits, for any week beginning on or after April 24, 1983, 26 claimed with respect to that benefit year, shall be $334.80, 27 except that, for the purpose of determining the minimum 28 weekly benefit amount under subsection B(1) for the benefit 29 period beginning January 1, 1987, and ending December 31, 30 1987, the statewide average weekly wage shall be $335; for 31 the benefit periods January 1, 1988 through December 31, 32 1988, January 1, 1989 through December 31, 1989, and January 33 1, 1990 through December 31, 1990, the statewide average 34 weekly wage shall be $359, $381, and $406, respectively. HB2654 Enrolled -8- LRB9102422WHmg 1 Notwithstanding the preceding sentences of this paragraph, 2 for the benefit period of calendar year 1991, the statewide 3 average weekly wage shall be $406 plus (or minus) an amount 4 equal to the percentage change in the statewide average 5 weekly wage, as computed in accordance with the preceding 6 sentences of this paragraph, between the benefit periods of 7 calendar years 1989 and 1990, multiplied by $406; and, for 8 the benefit periods of calendar years 1992 through 200319999 and calendar year 20052001and each calendar year 10 thereafter, the statewide average weekly wage, shall be the 11 statewide average weekly wage, as determined in accordance 12 with this sentence, for the immediately preceding benefit 13 period plus (or minus) an amount equal to the percentage 14 change in the statewide average weekly wage, as computed in 15 accordance with the preceding sentences of this paragraph, 16 between the 2 immediately preceding benefit periods, 17 multiplied by the statewide average weekly wage, as 18 determined in accordance with this sentence, for the 19 immediately preceding benefit period. For the benefit period 20 of 20042000, the statewide average weekly wage shall be $600 21$524. Provided however, that for any benefit period after 22 December 31, 1990, if 2 of the following 3 factors occur, 23 then the statewide average weekly wage shall be the statewide 24 average weekly wage in effect for the immediately preceding 25 benefit period: (a) the average contribution rate for all 26 employers in this State for the calendar year 2 years prior 27 to the benefit period, as a ratio of total contribution 28 payments (including payments in lieu of contributions) to 29 total wages reported by employers in this State for that same 30 period is 0.2% greater than the national average of this 31 ratio, the foregoing to be determined in accordance with 32 rules promulgated by the Director; (b) the balance in this 33 State's account in the unemployment trust fund, as of March 34 31 of the prior calendar year, is less than $250,000,000; or HB2654 Enrolled -9- LRB9102422WHmg 1 (c) the number of first payments of initial claims, as 2 determined in accordance with rules promulgated by the 3 Director, for the one year period ending on June 30 of the 4 prior year, has increased more than 25% over the average 5 number of such payments during the 5 year period ending that 6 same June 30; and provided further that if (a), (b) and (c) 7 occur, then the statewide average weekly wage, as determined 8 in accordance with the preceding sentence, shall be 10% less 9 than it would have been but for these provisions. If the 10 reduced amount, computed in accordance with the preceding 11 sentence, is not already a multiple of one dollar, it shall 12 be rounded to the nearest dollar. The 10% reduction in the 13 statewide average weekly wage in the preceding sentence shall 14 not be in effect for more than 2 benefit periods of any 5 15 consecutive benefit periods. This 10% reduction shall not be 16 cumulative from year to year. Neither the freeze nor the 17 reduction shall be considered in the determination of 18 subsequent years' calculations of statewide average weekly 19 wage. However, for purposes of the Workers' Compensation Act, 20 the statewide average weekly wage will be computed using June 21 1 and December 1 determination dates of each calendar year 22 and such determination shall not be subject to the limitation 23 of $321, $335, $350, $359, $381, $406 or the statewide 24 average weekly wage as computed in accordance with the 25 preceding 7 sentences of this paragraph. 26 With respect to any week beginning on or after April 24, 27 1983 and before January 3, 1988, "maximum weekly benefit 28 amount" means 48% of the statewide average weekly wage, 29 rounded (if not already a multiple of one dollar) to the 30 nearest dollar, provided however, that the maximum weekly 31 benefit amount for an individual who has established a 32 benefit year beginning before April 24, 1983, shall be 33 determined, for weeks beginning on or after April 24, 1983 34 claimed with respect to that benefit year, as provided under HB2654 Enrolled -10- LRB9102422WHmg 1 this Act as amended and in effect on November 30, 1982, 2 except that the statewide average weekly wage used in such 3 determination shall be $334.80. 4 With respect to any week beginning after January 2, 1988 5 and before January 1, 1993, "maximum weekly benefit amount" 6 with respect to each week beginning within a benefit period 7 means 49% of the statewide average weekly wage, rounded (if 8 not already a multiple of one dollar) to the next higher 9 dollar. 10 With respect to any week beginning on or after January 3, 11 1993, "maximum weekly benefit amount" with respect to each 12 week beginning within a benefit period means 49.5% of the 13 statewide average weekly wage, rounded (if not already a 14 multiple of one dollar) to the next higher dollar. 15 C. With respect to any week beginning on or after April 16 24, 1983 and before January 3, 1988, an individual to whom 17 benefits are payable with respect to any week shall, in 18 addition to such benefits, be paid, with respect to such 19 week, as follows: in the case of an individual with a 20 nonworking spouse, 7% of his prior average weekly wage, 21 rounded (if not already a multiple of one dollar) to the 22 higher dollar; provided, that the total amount payable to the 23 individual with respect to a week shall not exceed 55% of the 24 statewide average weekly wage, rounded (if not already a 25 multiple of one dollar) to the nearest dollar; and in the 26 case of an individual with a dependent child or dependent 27 children, 14.4% of his prior average weekly wage, rounded (if 28 not already a multiple of one dollar) to the higher dollar; 29 provided, that the total amount payable to the individual 30 with respect to a week shall not exceed 62.4% of the 31 statewide average weekly wage, rounded (if not already a 32 multiple of one dollar) to the next higher dollar with 33 respect to the benefit period beginning January 1, 1987 and 34 ending December 31, 1987, and otherwise to the nearest HB2654 Enrolled -11- LRB9102422WHmg 1 dollar. However, for an individual with a nonworking spouse 2 or with a dependent child or children who has established a 3 benefit year beginning before April 24, 1983, the amount of 4 additional benefits payable on account of the nonworking 5 spouse or dependent child or children shall be determined, 6 for weeks beginning on or after April 24, 1983 claimed with 7 respect to that benefit year, as provided under this Act as 8 in effect on November 30, 1982, except that the statewide 9 average weekly wage used in such determination shall be 10 $334.80. 11 With respect to any week beginning on or after January 2, 12 1988 and before January 1, 1991 and any week beginning on or 13 after January 1, 1992, and before January 1, 1993, an 14 individual to whom benefits are payable with respect to any 15 week shall, in addition to those benefits, be paid, with 16 respect to such week, as follows: in the case of an 17 individual with a nonworking spouse, 8% of his prior average 18 weekly wage, rounded (if not already a multiple of one 19 dollar) to the next higher dollar, provided, that the total 20 amount payable to the individual with respect to a week 21 shall not exceed 57% of the statewide average weekly wage, 22 rounded (if not already a multiple of one dollar) to the next 23 higher dollar; and in the case of an individual with a 24 dependent child or dependent children, 15% of his prior 25 average weekly wage, rounded (if not already a multiple of 26 one dollar) to the next higher dollar, provided that the 27 total amount payable to the individual with respect to a week 28 shall not exceed 64% of the statewide average weekly wage, 29 rounded (if not already a multiple of one dollar) to the next 30 higher dollar. 31 With respect to any week beginning on or after January 1, 32 1991 and before January 1, 1992, an individual to whom 33 benefits are payable with respect to any week shall, in 34 addition to the benefits, be paid, with respect to such week, HB2654 Enrolled -12- LRB9102422WHmg 1 as follows: in the case of an individual with a nonworking 2 spouse, 8.3% of his prior average weekly wage, rounded (if 3 not already a multiple of one dollar) to the next higher 4 dollar, provided, that the total amount payable to the 5 individual with respect to a week shall not exceed 57.3% of 6 the statewide average weekly wage, rounded (if not already a 7 multiple of one dollar) to the next higher dollar; and in the 8 case of an individual with a dependent child or dependent 9 children, 15.3% of his prior average weekly wage, rounded (if 10 not already a multiple of one dollar) to the next higher 11 dollar, provided that the total amount payable to the 12 individual with respect to a week shall not exceed 64.3% of 13 the statewide average weekly wage, rounded (if not already a 14 multiple of one dollar) to the next higher dollar. 15 With respect to any week beginning on or after January 3, 16 1993, an individual to whom benefits are payable with respect 17 to any week shall, in addition to those benefits, be paid, 18 with respect to such week, as follows: in the case of an 19 individual with a nonworking spouse, 9% of his prior average 20 weekly wage, rounded (if not already a multiple of one 21 dollar) to the next higher dollar, provided, that the total 22 amount payable to the individual with respect to a week 23 shall not exceed 58.5% of the statewide average weekly wage, 24 rounded (if not already a multiple of one dollar) to the next 25 higher dollar; and in the case of an individual with a 26 dependent child or dependent children, 16% of his prior 27 average weekly wage, rounded (if not already a multiple of 28 one dollar) to the next higher dollar, provided that the 29 total amount payable to the individual with respect to a week 30 shall not exceed 65.5% of the statewide average weekly wage, 31 rounded (if not already a multiple of one dollar) to the next 32 higher dollar. 33 For the purposes of this subsection: 34 "Dependent" means a child or a nonworking spouse. HB2654 Enrolled -13- LRB9102422WHmg 1 "Child" means a natural child, stepchild, or adopted 2 child of an individual claiming benefits under this Act or a 3 child who is in the custody of any such individual by court 4 order, for whom the individual is supplying and, for at least 5 90 consecutive days (or for the duration of the parental 6 relationship if it has existed for less than 90 days) 7 immediately preceding any week with respect to which the 8 individual has filed a claim, has supplied more than one-half 9 the cost of support, or has supplied at least 1/4 of the cost 10 of support if the individual and the other parent, together, 11 are supplying and, during the aforesaid period, have supplied 12 more than one-half the cost of support, and are, and were 13 during the aforesaid period, members of the same household; 14 and who, on the first day of such week (a) is under 18 years 15 of age, or (b) is, and has been during the immediately 16 preceding 90 days, unable to work because of illness or other 17 disability: provided, that no person who has been determined 18 to be a child of an individual who has been allowed benefits 19 with respect to a week in the individual's benefit year shall 20 be deemed to be a child of the other parent, and no other 21 person shall be determined to be a child of such other 22 parent, during the remainder of that benefit year. 23 "Nonworking spouse" means the lawful husband or wife of 24 an individual claiming benefits under this Act, for whom more 25 than one-half the cost of support has been supplied by the 26 individual for at least 90 consecutive days (or for the 27 duration of the marital relationship if it has existed for 28 less than 90 days) immediately preceding any week with 29 respect to which the individual has filed a claim, but only 30 if the nonworking spouse is currently ineligible to receive 31 benefits under this Act by reason of the provisions of 32 Section 500E. 33 An individual who was obligated by law to provide for the 34 support of a child or of a nonworking spouse for the HB2654 Enrolled -14- LRB9102422WHmg 1 aforesaid period of 90 consecutive days, but was prevented by 2 illness or injury from doing so, shall be deemed to have 3 provided more than one-half the cost of supporting the child 4 or nonworking spouse for that period. 5 (Source: P.A. 89-633, eff. 1-1-97; 90-554, eff. 12-12-97.) 6 (820 ILCS 405/901) (from Ch. 48, par. 491) 7 Sec. 901. Fraud - Repayment - Ineligibility. An 8 individual who, for the purpose of obtaining benefits, 9 knowingly makes a false statement or knowingly fails to 10 disclose a material fact, and thereby obtains any sum as 11 benefits for which he is not eligible: 12 A. Shall be required to repay such sum in cash, or the 13 amount thereof may be recovered or recouped pursuant to the 14 provisions of Section 900. 15 B. Shall be ineligible, except to the extent that such 16 benefits are subject to recoupment pursuant to this Section, 17 for benefits for the week in which he or she has been 18 notified of the determination of the claims adjudicator 19 referred to in Section 702 that he or she has committedis20ineligible for benefits by reason ofthe offense described in 21 the first paragraph and, thereafter, for 6 weeks (with 22 respect to each of which he or she would be eligible for 23 benefits but for the provisions of this paragraph, not 24 including weeks for which such benefits are subject to 25 recoupment pursuant to this Section) for the first offense, 26 and for 2 additional weeks (with respect to each of which he 27 or she would be eligible for benefits but for the provisions 28 of this paragraph, not including weeks for which such 29 benefits are subject to recoupment pursuant to this Section) 30 for each subsequent offense. For the purposes of this 31 paragraph, a separate offense shall be deemed to have been 32 committed in each week for which such an individual has 33 received a sum as benefits for which he or she was not HB2654 Enrolled -15- LRB9102422WHmg 1 eligible. No ineligibility under the provisions of this 2 paragraph shall accrue with respect to any week beginning 3 after whichever of the following occurs first: (1) 26 weeks ( 4 with respect to each of which the individual would be 5 eligible for benefits but for the provisions of this 6 paragraph, not including weeks for which such benefits are 7 subject to recoupment pursuant to this Section) have elapsed 8 since the date that he or she is notified of the 9 determination of the claims adjudicator referred to in 10 Section 702 that he or she has committed the offense 11 described in the first paragraphhis ineligibility began12pursuant to this paragraph, or (2) 2 years have elapsed since 13 the date that he or she is notified of the determination of 14 the claims adjudicator referred to in Section 702 that he or 15 she has committed the offense described in the first 16 paragraphhis ineligibility began pursuant to this paragraph. 17 (Source: P.A. 80-2dSS-1.) 18 (820 ILCS 405/1500) (from Ch. 48, par. 570) 19 Sec. 1500. Rate of contribution. 20 A. For the six months' period beginning July 1, 1937, 21 and for each of the calendar years 1938 to 1959, inclusive, 22 each employer shall pay contributions on wages at the 23 percentages specified in or determined in accordance with the 24 provisions of this Act as amended and in effect on July 11, 25 1957. 26 B. For the calendar years 1960 through 1983, each 27 employer shall pay contributions equal to 2.7 percent with 28 respect to wages for insured work paid during each such 29 calendar year, except that the contribution rate of each 30 employer who has incurred liability for the payment of 31 contributions within each of the three calendar years 32 immediately preceding the calendar year for which a rate is 33 being determined, shall be determined as provided in Sections HB2654 Enrolled -16- LRB9102422WHmg 1 1501 to 1507, inclusive. 2 For the calendar year 1984 and each calendar year 3 thereafter, each employer shall pay contributions at a 4 percentage rate equal to the greatest of 2.7%, or 2.7% 5 multiplied by the current adjusted State experience factor, 6 as determined for each calendar year by the Director in 7 accordance with the provisions of Sections 1504 and 1505, or 8 the average contribution rate for his major classification in 9 the Standard Industrial Code, or another classification 10 sanctioned by the United States Department of Labor and 11 prescribed by the Director by rule, with respect to wages for 12 insured work paid during such year. The Director of 13 Employment Security shall determine for calendar year 1984 14 and each calendar year thereafter by a method pursuant to 15 adopted rules each individual employer's industrial code and 16 the average contribution rate for each major classification 17 in the Standard Industrial Code, or each other classification 18 sanctioned by the United States Department of Labor and 19 prescribed by the Director by rule. Notwithstanding the 20 preceding provisions of this paragraph, the contribution rate 21 for calendar years 1984, 1985 and 1986 of each employer who 22 has incurred liability for the payment of contributions 23 within each of the two calendar years immediately preceding 24 the calendar year for which a rate is being determined, and 25 the contribution rate for calendar year 1987 and each 26 calendar year thereafter of each employer who has incurred 27 liability for the payment of contributions within each of the 28 three calendar years immediately preceding the calendar year 29 for which a rate is being determined shall be determined as 30 provided in Sections 1501 to 1507, inclusive. Provided, 31 however, that the contribution rate for calendar years 1989 32 and 1990 of each employer who has had experience with the 33 risk of unemployment for at least 13 consecutive months 34 ending June 30 of the preceding calendar year shall be a rate HB2654 Enrolled -17- LRB9102422WHmg 1 determined in accordance with this Section or a rate 2 determined as if it had been calculated in accordance with 3 Sections 1501 through 1507, inclusive, whichever is greater, 4 except that for purposes of calculating the benefit wage 5 ratio as provided in Section 1503, such benefit wage ratio 6 shall be a percentage equal to the total of benefit wages for 7 the 12 consecutive calendar month period ending on the above 8 preceding June 30, divided by the total wages for insured 9 work subject to the payment of contributions under Sections 10 234, 235 and 245 for the same period and provided, further, 11 however, that the contribution rate for calendar year 1991 12 and for each calendar year thereafter of each employer who 13 has had experience with the risk of unemployment for at least 14 13 consecutive months ending June 30 of the preceding 15 calendar year shall be a rate determined in accordance with 16 this Section or a rate determined as if it had been 17 calculated in accordance with Sections 1501 through 1507, 18 inclusive, whichever is greater, except that for purposes of 19 calculating the benefit ratio as provided in Section 1503.1, 20 such benefit ratio shall be a percentage equal to the total 21 of benefit charges for the 12 consecutive calendar month 22 period ending on the above preceding June 30, multiplied by 23 the benefit conversion factor applicable to such year, 24 divided by the total wages for insured work subject to the 25 payment of contributions under Sections 234, 235 and 245 for 26 the same period. 27 C. Except as expressly provided in this Act, the 28 provisions of Sections 1500 to 1510, inclusive, do not apply 29 to any nonprofit organization for any period with respect to 30 which it does not incur liability for the payment of 31 contributions by reason of having elected to make payments in 32 lieu of contributions, or to any political subdivision or 33 municipal corporation for any period with respect to which it 34 is not subject to payments in lieu of contributions under the HB2654 Enrolled -18- LRB9102422WHmg 1 provisions of paragraph 1 of Section 302C by reason of having 2 elected to make payments in lieu of contributions under 3 paragraph 2 of that Section or to any governmental entity 4 referred to in clause (B) of Section 211.1. Wages paid to an 5 individual which are subject to contributions under Section 6 1405 A, or on the basis of which benefits are paid to him 7 which are subject to payment in lieu of contributions under 8 Sections 1403, 1404, or 1405 B, or under paragraph 2 of 9 Section 302C, shall not become benefit wages or benefit 10 charges under the provisions of Sections 1501 or 1501.1, 11 respectively, except for purposes of determining a rate of 12 contribution for 1984 and each calendar year thereafter for 13 any governmental entity referred to in clause (B) of Section 14 211.1 which does not elect to make payments in lieu of 15 contributions. 16 D. If an employer's business is closed solely because of 17 the entrance of one or more of the owners, partners, 18 officers, or the majority stockholder into the armed forces 19 of the United States, or of any of its allies, or of the 20 United Nations, and, if the business is resumed within two 21 years after the discharge or release of such person or 22 persons from active duty in the armed forces, the employer 23 will be deemed to have incurred liability for the payment of 24 contributions continuously throughout such period. Such an 25 employer, for the purposes of Section 1506.1, will be deemed 26 to have paid contributions upon wages for insured work during 27 the applicable period specified in Section 1503 on or before 28 the date designated therein, provided that no wages became 29 benefit wages during the applicable period specified in 30 Section 1503. 31 (Source: P.A. 85-956.) 32 (820 ILCS 405/1506.3) (from Ch. 48, par. 576.3) 33 Sec. 1506.3. Fund building rates - Temporary HB2654 Enrolled -19- LRB9102422WHmg 1 Administrative Funding. 2 A. Notwithstanding any other provision of this Act, the 3 following fund building rates shall be in effect for the 4 following calendar years: 5 For each employer whose contribution rate for 1988, 1989, 6 1990, the first, third, and fourth quarters of 1991, 1992, 7 1993, 1994, 1995, and 1997 and any calendar year thereafter 8 would, in the absence of this Section, be 0.2% or higher, a 9 contribution rate which is the sum of such rate and 0.4%; 10 For each employer whose contribution rate for the second 11 quarter of 1991 would, in the absence of this Section, be 12 0.2% or higher, a contribution rate which is the sum of such 13 rate and 0.3%; 14 For each employer whose contribution rate for 1996 would, 15 in the absence of this Section, be 0.1% or higher, a 16 contribution rate which is the sum of such rate and 0.4%; 17 Notwithstanding the preceding paragraphs of this Section 18 or any other provision of this Act, except for the provisions 19 contained in Section 1500 pertaining to rates applicable to 20 employers classified under the Standard Industrial Code, or 21 another classification system sanctioned by the United States 22 Department of Labor and prescribed by the Director by rule, 23 no employer whose total wages for insured work paid by him 24 during any calendar quarter in 1988 and any calendar year 25 thereafter are less than $50,000 shall pay contributions at a 26 rate with respect to such quarter which exceeds the 27 following: with respect to calendar year 1988, 5%; with 28 respect to 1989 and any calendar year thereafter, 5.4%. 29 Notwithstanding the preceding paragraph of this Section, 30 or any other provision of this Act, no employer's 31 contribution rate with respect to calendar years 1993 through 32 1995 shall exceed 5.4% if the employer ceased operations at 33 an Illinois manufacturing facility in 1991 and remained 34 closed at that facility during all of 1992, and the employer HB2654 Enrolled -20- LRB9102422WHmg 1 in 1993 commits to invest at least $5,000,000 for the purpose 2 of resuming operations at that facility, and the employer 3 rehires during 1993 at least 250 of the individuals employed 4 by it at that facility during the one year period prior to 5 the cessation of its operations, provided that, within 30 6 days after the effective date of this amendatory Act of 1993, 7 the employer makes application to the Department to have the 8 provisions of this paragraph apply to it. The immediately 9 preceding sentence shall be null and void with respect to an 10 employer which by December 31, 1993 has not satisfied the 11 rehiring requirement specified by this paragraph or which by 12 December 31, 1994 has not made the investment specified by 13 this paragraph. 14 B. Notwithstanding any other provision of this Act, for 15 the second quarter of 1991, the contribution rate of each 16 employer as determined in accordance with Sections 1500, 17 1506.1, and subsection A of this Section shall be equal to 18 the sum of such rate and 0.1%; provided that this subsection 19 shall not apply to any employer whose rate computed under 20 Section 1506.1 for such quarter is between 5.1% and 5.3%, 21 inclusive, and who qualifies for the 5.4% rate ceiling 22 imposed by the last paragraph of subsection A for such 23 quarter. All payments made pursuant to this subsection shall 24 be deposited in the Employment Security Administrative Fund 25 established under Section 2103.1 and used for the 26 administration of this Act. 27 C. Payments received by the Director which are 28 insufficient to pay the total contributions due under the Act 29 shall be first applied to satisfy the amount due pursuant to 30 subsection B. 31 D. All provisions of this Act applicable to the 32 collection or refund of any contribution due under this Act 33 shall be applicable to the collection or refund of amounts 34 due pursuant to subsection B. HB2654 Enrolled -21- LRB9102422WHmg 1 (Source: P.A. 88-518; 89-446, eff. 2-8-96.) 2 (820 ILCS 405/1507) (from Ch. 48, par. 577) 3 Sec. 1507. Contribution rates of successor and 4 predecessor employing units. 5 A. Whenever any employing unit succeeds to substantially 6 all of the employing enterprises of another employing unit, 7 then in determining contribution rates for any calendar year, 8 the experience rating record of the predecessor prior to the 9 succession shall be transferred to the successor and 10 thereafter it shall not be treated as the experience rating 11 record of the predecessor, except as provided in subsection 12 B. For the purposes of this Section, such experience rating 13 record shall consist of all years during which liability for 14 the payment of contributions was incurred by the predecessor 15 prior to the succession, all benefit wages based upon wages 16 paid by the predecessor prior to the succession, all benefit 17 charges based on benefits paid by the predecessor prior to 18 the succession, and all wages for insured work paid by the 19 predecessor prior to the succession. 20 B. The provisions of this subsection shall be applicable 21 only to the determination of contribution rates for the 22 calendar year 1956 and for each calendar year thereafter. 23 Whenever any employing unit has succeeded to substantially 24 all of the employing enterprises of another employing unit, 25 but the predecessor employing unit has retained a distinct 26 severable portion of its employing enterprises or whenever 27 any employing unit has succeeded to a distinct severable 28 portion which is less than substantially all of the employing 29 enterprises of another employing unit, the successor 30 employing unit shall acquire the experience rating record 31 attributable to the portion to which it has succeeded, and 32 the predecessor employing unit shall retain the experience 33 rating record attributable to the portion which it has HB2654 Enrolled -22- LRB9102422WHmg 1 retained, if-- 2 1.The employing unit which desires to acquire or3retain such a distinct severable portion of such4experience rating record has filed such reports giving5notice of the transfer as may be required by the Director6within 120 days of such transfer; and72.It files a written application for such 8 experience rating record which is joined in by the 9 employing unit which is then entitled to such experience 10 rating record; and 11 2.3.The joint application contains such 12 information as the Director shall by regulation prescribe 13 which will show that such experience rating record is 14 identifiable and segregable and, therefore, capable of 15 being transferred; and 16 3.4.The joint application is filed prior to 17 whichever of the following dates is the latest: (a) July 18 1, 1956; (b) one year after the date of the succession; 19 or (c) the date that the rate determination of the 20 employing unit which has applied for such experience 21 rating record has become final for the calendar year 22 immediately following the calendar year in which the 23 succession occurs. The filing of a timely joint 24 application shall not affect any rate determination which 25 has become final, as provided by Section 1509. 26 If all of the foregoing requirements are met, then the 27 Director shall transfer such experience rating record to the 28 employing unit which has applied therefor, and it shall not 29 be treated as the experience rating record of the employing 30 unit which has joined in the application. 31 Whenever any employing unit is reorganized into two or 32 more employing units, and any of such employing units are 33 owned or controlled by the same interests which owned or 34 controlled the predecessor prior to the reorganization, and HB2654 Enrolled -23- LRB9102422WHmg 1 the provisions of this subsection become applicable thereto, 2 then such affiliated employing units during the period of 3 their affiliation shall be treated as a single employing unit 4 for the purpose of determining their rates of contributions. 5 C. For the calendar year in which a succession occurs 6 which results in the total or partial transfer of a 7 predecessor's experience rating record, the contribution 8 rates of the parties thereto shall be determined in the 9 following manner: 10 1. If any of such parties had a contribution rate 11 applicable to it for that calendar year, it shall 12 continue with such contribution rate. 13 2. If any successor had no contribution rate 14 applicable to it for that calendar year, and only one 15 predecessor is involved, then the contribution rate of 16 the successor shall be the same as that of its 17 predecessor. 18 3. If any successor had no contribution rate 19 applicable to it for that calendar year, and two or more 20 predecessors are involved, then the contribution rate of 21 the successor shall be computed, on the combined 22 experience rating records of the predecessors or on the 23 appropriate part of such records if any partial transfer 24 is involved, as provided in Sections 1500 to 1507, 25 inclusive. 26 4. Notwithstanding the provisions of paragraphs 2 27 and 3 of this subsection, if any succession occurs prior 28 to the calendar year 1956 and the successor acquires part 29 of the experience rating record of the predecessor as 30 provided in subsection B of this Section, then the 31 contribution rate of that successor for the calendar year 32 in which such succession occurs shall be 2.7 percent. 33 (Source: P.A. 90-554, eff. 12-12-97.) HB2654 Enrolled -24- LRB9102422WHmg 1 (820 ILCS 405/1900) (from Ch. 48, par. 640) 2 Sec. 1900. Disclosure of information. 3 A. Except as provided in this Section, information 4 obtained from any individual or employing unit during the 5 administration of this Act shall: 6 1. be confidential, 7 2. not be published or open to public inspection, 8 3. not be used in any court in any pending action 9 or proceeding, 10 4. not be admissible in evidence in any action or 11 proceeding other than one arising out of this Act. 12 B. No finding, determination, decision, ruling or order 13 (including any finding of fact, statement or conclusion made 14 therein) issued pursuant to this Act shall be admissible or 15 used in evidence in any action other than one arising out of 16 this Act, nor shall it be binding or conclusive except as 17 provided in this Act, nor shall it constitute res judicata, 18 regardless of whether the actions were between the same or 19 related parties or involved the same facts. 20 C. Any officer or employee of this State, any officer or 21 employee of any entity authorized to obtain information 22 pursuant to this Section, and any agent of this State or of 23 such entity who, except with authority of the Director under 24 this Section, shall disclose information shall be guilty of a 25 Class B misdemeanor and shall be disqualified from holding 26 any appointment or employment by the State. 27 D. An individual or his duly authorized agent may be 28 supplied with information from records only to the extent 29 necessary for the proper presentation of his claim for 30 benefits or with his existing or prospective rights to 31 benefits. Discretion to disclose this information belongs 32 solely to the Director and is not subject to a release or 33 waiver by the individual. Notwithstanding any other provision 34 to the contrary, an individual or his or her duly authorized HB2654 Enrolled -25- LRB9102422WHmg 1 agent may be supplied with a statement of the amount of 2 benefits paid to the individual during the 18 months 3 preceding the date of his or her request. 4 E. An employing unit may be furnished with information, 5 only if deemed by the Director as necessary to enable it to 6 fully discharge its obligations or safeguard its rights under 7 the Act. Discretion to disclose this information belongs 8 solely to the Director and is not subject to a release or 9 waiver by the employing unit. 10 F. The Director may furnish any information that he may 11 deem proper to any public officer or public agency of this or 12 any other State or of the federal government dealing with: 13 1. the administration of relief, 14 2. public assistance, 15 3. unemployment compensation, 16 4. a system of public employment offices, 17 5. wages and hours of employment, or 18 6. a public works program. 19 The Director may make available to the Illinois 20 Industrial Commission information regarding employers for the 21 purpose of verifying the insurance coverage required under 22 the Workers' Compensation Act and Workers' Occupational 23 Diseases Act. 24 G. The Director may disclose information submitted by 25 the State or any of its political subdivisions, municipal 26 corporations, instrumentalities, or school or community 27 college districts, except for information which specifically 28 identifies an individual claimant. 29 H. The Director shall disclose only that information 30 required to be disclosed under Section 303 of the Social 31 Security Act, as amended, including: 32 1. any information required to be given the United 33 States Department of Labor under Section 303(a)(6); and 34 2. the making available upon request to any agency HB2654 Enrolled -26- LRB9102422WHmg 1 of the United States charged with the administration of 2 public works or assistance through public employment, the 3 name, address, ordinary occupation and employment status 4 of each recipient of unemployment compensation, and a 5 statement of such recipient's right to further 6 compensation under such law as required by Section 7 303(a)(7); and 8 3. records to make available to the Railroad 9 Retirement Board as required by Section 303(c)(1); and 10 4. information that will assure reasonable 11 cooperation with every agency of the United States 12 charged with the administration of any unemployment 13 compensation law as required by Section 303(c)(2); and 14 5. information upon request and on a reimbursable 15 basis to the United States Department of Agriculture and 16 to any State food stamp agency concerning any information 17 required to be furnished by Section 303(d); and 18 6. any wage information upon request and on a 19 reimbursable basis to any State or local child support 20 enforcement agency required by Section 303(e); and 21 7. any information required under the income 22 eligibility and verification system as required by 23 Section 303(f); and 24 8. information that might be useful in locating an 25 absent parent or that parent's employer, establishing 26 paternity or establishing, modifying, or enforcing child 27 support orders for the purpose of a child support 28 enforcement program under Title IV of the Social Security 29 Act upon the request of and on a reimbursable basis to 30 the public agency administering the Federal Parent 31 Locator Service as required by Section 303(h); and 32 9. information, upon request, to representatives of 33 any federal, State or local governmental public housing 34 agency with respect to individuals who have signed the HB2654 Enrolled -27- LRB9102422WHmg 1 appropriate consent form approved by the Secretary of 2 Housing and Urban Development and who are applying for or 3 participating in any housing assistance program 4 administered by the United States Department of Housing 5 and Urban Development as required by Section 303(i). 6 I. The Director, upon the request of a public agency of 7 Illinois, of the federal government or of any other state 8 charged with the investigation or enforcement of Section 10-5 9 of the Criminal Code of 1961 (or a similar federal law or 10 similar law of another State), may furnish the public agency 11 information regarding the individual specified in the request 12 as to: 13 1. the current or most recent home address of the 14 individual, and 15 2. the names and addresses of the individual's 16 employers. 17 J. Nothing in this Section shall be deemed to interfere 18 with the disclosure of certain records as provided for in 19 Section 1706 or with the right to make available to the 20 Internal Revenue Service of the United States Department of 21 the Treasury, or the Department of Revenue of the State of 22 Illinois, information obtained under this Act. 23 K. The Department shall make available to the Illinois 24 Student Assistance Commission, upon request, information in 25 the possession of the Department that may be necessary or 26 useful to the Commission in the collection of defaulted or 27 delinquent student loans which the Commission administers. 28 L. The Department shall make available to the State 29 Employees' Retirement System, the State Universities 30 Retirement System, and the Teachers' Retirement System of the 31 State of Illinois, upon request, information in the 32 possession of the Department that may be necessary or useful 33 to the System for the purpose of determining whether any 34 recipient of a disability benefit from the System is HB2654 Enrolled -28- LRB9102422WHmg 1 gainfully employed. 2 M. This Section shall be applicable to the information 3 obtained in the administration of the State employment 4 service, except that the Director may publish or release 5 general labor market information and may furnish information 6 that he may deem proper to an individual, public officer or 7 public agency of this or any other State or the federal 8 government (in addition to those public officers or public 9 agencies specified in this Section) as he prescribes by Rule. 10 N. The Director may require such safeguards as he deems 11 proper to insure that information disclosed pursuant to this 12 Section is used only for the purposes set forth in this 13 Section. 14 O. (Blank). 15 P. Within 30 days after the effective date of this 16 amendatory Act of 1993 and annually thereafter, the 17 Department shall provide to the Department of Financial 18 Institutions a list of individuals or entities that, for the 19 most recently completed calendar year, report to the 20 Department as paying wages to workers. The lists shall be 21 deemed confidential and may not be disclosed to any other 22 person. 23 Q. The Director shall make available to an elected 24 federal official the name and address of an individual or 25 entity that is located within the jurisdiction from which the 26 official was elected and that, for the most recently 27 completed calendar year, has reported to the Department as 28 paying wages to workers, where the information will be used 29 in connection with the official duties of the official and 30 the official requests the information in writing, specifying 31 the purposes for which it will be used. For purposes of this 32 subsection, the use of information in connection with the 33 official duties of an official does not include use of the 34 information in connection with the solicitation of HB2654 Enrolled -29- LRB9102422WHmg 1 contributions or expenditures, in money or in kind, to or on 2 behalf of a candidate for public or political office or a 3 political party or with respect to a public question, as 4 defined in Section 1-3 of the Election Code, or in connection 5 with any commercial solicitation. Any elected federal 6 official who, in submitting a request for information covered 7 by this subsection, knowingly makes a false statement or 8 fails to disclose a material fact, with the intent to obtain 9 the information for a purpose not authorized by this 10 subsection, shall be guilty of a Class B misdemeanor. 11 R. The Director may provide to any State or local child 12 support agency, upon request and on a reimbursable basis, 13 information that might be useful in locating an absent parent 14 or that parent's employer, establishing paternity, or 15 establishing, modifying, or enforcing child support orders. 16 (Source: P.A. 89-446, eff. 2-8-96; 89-493, eff. 1-1-97; 17 90-425, eff. 8-15-97; 90-488, eff. 8-17-97; 90-655, eff. 18 7-30-98.) 19 (820 ILCS 405/2100) (from Ch. 48, par. 660) 20 Sec. 2100. Handling of funds - Bond - Accounts. 21 A. All contributions and payments in lieu of 22 contributions collected under this Act together with any 23 interest thereon; all penalties collected pursuant to this 24 Act; any property or securities acquired through the use 25 thereof; all moneys advanced to this State's account in the 26 unemployment trust fund pursuant to the provisions of Title 27 XII of the Social Security Act, as amended; all moneys 28 received from the federal tax avoidance surcharge established 29 by Section 1506.4; all moneys received from the Federal 30 government as reimbursements pursuant to Section 204 of the 31 Federal-State Extended Unemployment Compensation Act of 1970, 32 as amended; all moneys credited to this State's account in 33 the unemployment trust fund pursuant to Section 903 of the HB2654 Enrolled -30- LRB9102422WHmg 1 Federal Social Security Act, as amended; and all earnings of 2 such property or securities and any interest earned upon any 3 such moneys shall be paid or turned over to and held by the 4 Director, as ex-officio custodian of the clearing account, 5 the unemployment trust fund account and the benefit account, 6 and by the State Treasurer, as ex-officio custodian of the 7 special administrative account, separate and apart from all 8 public moneys or funds of this State, as hereinafter 9 provided. Such moneys shall be administered by the Director 10 exclusively for the purposes of this Act. 11 No such moneys shall be paid or expended except upon the 12 direction of the Director in accordance with such regulations 13 as he shall prescribe pursuant to the provisions of this Act. 14 The State Treasurer shall be liable on his general 15 official bond for the faithful performance of his duties in 16 connection with the moneys in the special administrative 17 account provided for under this Act. Such liability on his 18 official bond shall exist in addition to the liability upon 19 any separate bond given by him. All sums recovered for 20 losses sustained by the account shall be deposited in that 21 account. 22 The Director shall be liable on his general official bond 23 for the faithful performance of his duties in connection with 24 the moneys in the clearing account, the benefit account and 25 unemployment trust fund account provided for under this Act. 26 Such liability on his official bond shall exist in addition 27 to the liability upon any separate bond given by him. All 28 sums recovered for losses sustained by any one of the 29 accounts shall be deposited in the account that sustained 30 such loss. 31 The Treasurer shall maintain for such moneys a special 32 administrative account. The Director shall maintain for such 33 moneys 3 separate accounts: a clearing account, a benefit 34 account and an unemployment trust fund account. All moneys HB2654 Enrolled -31- LRB9102422WHmg 1 payable under this Act (except moneys requisitioned from this 2 State's account in the unemployment trust fund and deposited 3 in the benefit account), upon receipt thereof by the 4 Director, shall be immediately deposited in the clearing 5 account; provided, however, that, except as is otherwise 6 provided in this Section, interest and penalties shall not be 7 deemed a part of the clearing account but shall be 8 transferred immediately upon clearance thereof to the special 9 administrative account. 10 After clearance thereof, all other moneys in the clearing 11 account shall be immediately deposited by the Director with 12 the Secretary of the Treasury of the United States of America 13 to the credit of the account of this State in the 14 unemployment trust fund, established and maintained pursuant 15 to the Federal Social Security Act, as amended. 16 The benefit account shall consist of all moneys 17 requisitioned from this State's account in the unemployment 18 trust fund. The moneys in the benefit account shall be 19 expended in accordance with regulations prescribed by the 20 Director and solely for the payment of benefits, refunds of 21 contributions, interest and penalties under the provisions of 22 the Act, the payment of health insurance in accordance with 23 Section 410 of this Act, and the transfer or payment of funds 24 to any Federal or State agency pursuant to reciprocal 25 arrangements entered into by the Director under the 26 provisions of Section 2700E, except that moneys credited to 27 this State's account in the unemployment trust fund pursuant 28 to Section 903 of the Federal Social Security Act, as 29 amended, shall be used exclusively as provided in subsection 30 B. The Director shall, from time to time, requisition from 31 the unemployment trust fund such amounts, not exceeding the 32 amounts standing to the State's account therein, as he deems 33 necessary solely for the payment of such benefits, refunds, 34 and funds, for a reasonable future period. The Director, as HB2654 Enrolled -32- LRB9102422WHmg 1 ex-officio custodian of the benefit account, which shall be 2 kept separate and apart from all other public moneys, shall 3 issue his checks for the payment of such benefits, refunds, 4 health insurance and funds solely from the moneys so received 5 into the benefit account. However, after January 1, 1987, no 6 check shall be drawn on such benefit account unless at the 7 time of drawing there is sufficient money in the account to 8 pay the check. The Director shall retain in the clearing 9 account an amount of interest and penalties equal to the 10 amount of interest and penalties to be refunded from the 11 benefit account. After clearance thereof, the amount so 12 retained shall be immediately deposited by the Director, as 13 are all other moneys in the clearing account, with the 14 Secretary of the Treasury of the United States. If, at any 15 time, an insufficient amount of interest and penalties is 16 available for retention in the clearing account, no refund of 17 interest or penalties shall be made from the benefit account 18 until a sufficient amount is available for retention and is 19 so retained, or until the State Treasurer, upon the direction 20 of the Director, transfers to the Director a sufficient 21 amount from the special administrative account, for immediate 22 deposit in the benefit account. 23 Any balance of moneys requisitioned from the unemployment 24 trust fund which remains unclaimed or unpaid in the benefit 25 account after the expiration of the period for which such 26 sums were requisitioned shall either be deducted from 27 estimates of and may be utilized for authorized expenditures 28 during succeeding periods, or, in the discretion of the 29 Director, shall be redeposited with the Secretary of the 30 Treasury of the United States to the credit of the State's 31 account in the unemployment trust fund. 32 Moneys in the clearing, benefit and special 33 administrative accounts shall not be commingled with other 34 State funds but they shall be deposited as required by law HB2654 Enrolled -33- LRB9102422WHmg 1 and maintained in separate accounts on the books of a savings 2 and loan association or bank. 3 No bank or savings and loan association shall receive 4 public funds as permitted by this Section, unless it has 5 complied with the requirements established pursuant to 6 Section 6 of "An Act relating to certain investments of 7 public funds by public agencies", approved July 23, 1943, as 8 now or hereafter amended. 9 B. Moneys credited to the account of this State in the 10 unemployment trust fund by the Secretary of the Treasury of 11 the United States pursuant to Section 903 of the Social 12 Security Act maynotbe requisitioned from this State's 13 accountorand used as authorized by Section 903except for14the payment of benefits and for the payment of expenses15incurred for the administration of this Act. Any interest 16 required to be paid on advances under Title XII of the Social 17 Security Act shall be paid in a timely manner and shall not 18 be paid, directly or indirectly, by an equivalent reduction 19 in contributions or payments in lieu of contributions from 20 amounts in this State's account in the unemployment trust 21 fund.Such moneys may be requisitioned pursuant to22subsection A for the payment of benefits.Such moneys may 23alsobe requisitioned and used for the payment of expenses 24 incurred for the administration of this Act, but only 25 pursuant to a specific appropriation by the General Assembly 26 and only if the expenses are incurred and the moneys are 27 requisitioned after the enactment of an appropriation law 28 which: 29 1. Specifies the purpose or purposes for which such 30 moneys are appropriated and the amount or amounts 31 appropriated therefor; 32 2. Limits the period within which such moneys may 33 be obligated to a period ending not more than 2 years 34 after the date of the enactment of the appropriation law; HB2654 Enrolled -34- LRB9102422WHmg 1 and 2 3. Limits the amount which may be obligated during 3 any fiscal year to an amount which does not exceed the 4 amount by which (a) the aggregate of the amounts 5 transferred to the account of this State pursuant to 6 Section 903 of the Social Security Act exceeds (b) the 7 aggregate of the amounts used by this State pursuant to 8 this Act and charged against the amounts transferred to 9 the account of this State. 10 For purposes of paragraph (3) above, amounts obligated 11 for administrative purposes pursuant to an appropriation 12 shall be chargeable against transferred amounts at the exact 13 time the obligation is entered into. The appropriation, 14 obligation, and expenditure or other disposition of money 15 appropriated under this subsection shall be accounted for in 16 accordance with standards established by the United States 17 Secretary of Labor. 18 Moneys appropriated as provided herein for the payment of 19 expenses of administration shall be requisitioned by the 20 Director as needed for the payment of obligations incurred 21 under such appropriation. Upon requisition, such moneys shall 22 be deposited with the State Treasurer, who shall hold such 23 moneys, as ex-officio custodian thereof, in accordance with 24 the requirements of Section 2103 and, upon the direction of 25 the Director, shall make payments therefrom pursuant to such 26 appropriation. Moneys so deposited shall, until expended, 27 remain a part of the unemployment trust fund and, if any will 28 not be expended, shall be returned promptly to the account of 29 this State in the unemployment trust fund. 30 C. The Governor is authorized to apply to the United 31 States Secretary of Labor for an advance or advances to this 32 State's account in the unemployment trust fund pursuant to 33 the conditions set forth in Title XII of the Federal Social 34 Security Act, as amended. The amount of any such advance may HB2654 Enrolled -35- LRB9102422WHmg 1 be repaid from this State's account in the unemployment trust 2 fund provided that if the federal penalty tax avoidance 3 surcharge established by Section 1506.4 is in effect for that 4 year, any outstanding advance shall first be repaid from 5 amounts in this State's account in the unemployment trust 6 fund which were received from such surcharge by November 9 of 7 each year. 8 (Source: P.A. 86-3; 87-122.) 9 Section 99. This Section and the changes to Sections 235 10 and 401 of the Unemployment Insurance Act take effect upon 11 becoming law.