97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1550

 

Introduced 2/15/2011, by Rep. Michael J. Zalewski

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 405/1506.1  from Ch. 48, par. 576.1
820 ILCS 405/3150 new

    Amends the Unemployment Insurance Act. Changes employer contribution rates of each employer who has incurred liability for the payment of contributions within each of the 3 calendar years immediately preceding the calendar year for which a rate is being determined. Creates the Unemployment Insurance Task Force to study and make recommendations regarding ideas to reform unemployment insurance in Illinois in a way which encourages business growth while ensuring protection of workers who become involuntarily unemployed. Provides that reform ideas may include, but are not limited to, altering employer contribution rates to place a greater burden upon those employers with greater employment loss experience, allowing for and developing a private unemployment insurance market, and privatizing unemployment insurance through the establishment of employee-owned accounts similar to retirement accounts to be funded by contributions from the employer and employee to be used at the discretion of the employee if he or she becomes unemployed. Provides that the Task Force members shall serve voluntarily and without compensation. Provides that the Task Force shall submit a final report of its findings and recommendations to the Governor and the General Assembly on or before December 31, 2012. Provides that the final report shall include estimated costs and savings data for the State, Illinois businesses, and Illinois workers related to any recommendations. Provides that the Task Force is abolished on January 1, 2013. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1550LRB097 07934 AEK 48051 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Unemployment Insurance Act is amended by
5changing Section 1506.1 and by adding Section 3150 as follows:
 
6    (820 ILCS 405/1506.1)  (from Ch. 48, par. 576.1)
7    Sec. 1506.1. Determination of Employer's Contribution
8Rate.
9    A. The contribution rate for any calendar year prior to
101982 of each employer who has incurred liability for the
11payment of contributions within each of the three calendar
12years immediately preceding the calendar year for which a rate
13is being determined shall be determined in accordance with the
14provisions of this Act as amended and in effect on October 5,
151980.
16    B. The contribution rate for calendar years 1982 and 1983
17of each employer who has incurred liability for the payment of
18contributions within each of the three calendar years
19immediately preceding the calendar year for which a rate is
20being determined shall be the product obtained by multiplying
21the employer's benefit wage ratio for that calendar year by the
22adjusted state experience factor for the same year, provided
23that:

 

 

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1        1. No employer's contribution rate shall be lower than
2    two-tenths of 1 percent or higher than 5.3%; and
3        2. Intermediate contribution rates between such
4    minimum and maximum rates shall be at one-tenth of 1
5    percent intervals.
6        3. If the product obtained as provided in this
7    subsection is not an exact multiple of one-tenth of 1
8    percent, it shall be increased or reduced, as the case may
9    be, to the nearer multiple of one-tenth of 1 percent. If
10    such product is equally near to two multiples of one-tenth
11    of 1 percent, it shall be increased to the higher multiple
12    of one-tenth of 1 percent. If such product is less than
13    two-tenths of one percent, it shall be increased to
14    two-tenths of 1 percent, and if greater than 5.3%, it shall
15    be reduced to 5.3%.
16    The contribution rate of each employer for whom wages
17became benefit wages during the applicable period specified in
18Section 1503, but who paid no contributions upon wages for
19insured work during such period on or before the date
20designated in Section 1503, shall be 5.3%.
21    The contribution rate of each employer for whom no wages
22became benefit wages during the applicable period specified in
23Section 1503, and who paid no contributions upon wages for
24insured work during such period on or before the date specified
25in Section 1503, shall be 2.7 percent.
26    Notwithstanding the other provisions of this Section, no

 

 

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1employer's contribution rate with respect to calendar years
21982 and 1983 shall exceed 2.7 percent of the wages for insured
3work paid by him during any calendar quarter, if such wages
4paid during such calendar quarter total less than $50,000.
5    C. The contribution rate for calendar years 1984, 1985 and
61986 of each employer who has incurred liability for the
7payment of contributions within each of the two calendar years
8immediately preceding the calendar year for which a rate is
9being determined shall be the product obtained by multiplying
10the employer's benefit wage ratio for that calendar year by the
11adjusted state experience factor for the same year, provided
12that:
13        1. An employer's minimum contribution rate shall be the
14    greater of: .2%; or, the product obtained by multiplying
15    .2% by the adjusted state experience factor for the
16    applicable calendar year.
17        2. An employer's maximum contribution rate shall be the
18    greater of 5.5% or the product of 5.5% and the adjusted
19    State experience factor for the applicable calendar year
20    except that such maximum contribution rate shall not be
21    higher than 6.3% for calendar year 1984, nor be higher than
22    6.6% or lower than 6.4% for calendar year 1985, nor be
23    higher than 6.7% or lower than 6.5% for calendar year 1986.
24        3. If any product obtained in this subsection is not an
25    exact multiple of one-tenth of one percent, it shall be
26    increased or reduced, as the case may be to the nearer

 

 

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1    multiple of one-tenth of one percent. If such product is
2    equally near to two multiples of one-tenth of one percent,
3    it shall be increased to the higher multiple of one-tenth
4    of one percent.
5        4. Intermediate rates between such minimum and maximum
6    rates shall be at one-tenth of one percent intervals.
7    The contribution rate of each employer for whom wages
8became benefit wages during the applicable period specified in
9Section 1503, but who paid no contributions upon wages for
10insured work during such period on or before the date
11designated in Section 1503, shall be the maximum contribution
12rate as determined by paragraph 2 of this subsection. The
13contribution rate for each employer for whom no wages became
14benefit wages during the applicable period on or before the
15date specified in Section 1503, and who paid no contributions
16upon wages for insured work during such period on or before the
17date specified in Section 1503, shall be the greater of 2.7% or
182.7% times the then current adjusted state experience factor as
19determined by the Director in accordance with the provisions of
20Sections 1504 and 1505.
21    Notwithstanding, the other provisions of this Section, no
22employer's contribution rate with respect to the calendar year
231984 shall exceed 2.7 percent times the then current adjusted
24state experience factor as determined by the Director in
25accordance with the provisions of Sections 1504 and 1505 of the
26wages for insured work paid by him during any calendar quarter,

 

 

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1if such wages paid during such calendar quarter total less than
2$50,000.
3    D. The contribution rate for calendar years 1987, 1988,
41989 and 1990 of each employer who has incurred liability for
5the payment of contributions within each of the three calendar
6years immediately preceding the calendar year for which a rate
7is being determined shall be the product obtained by
8multiplying the employer's benefit wage ratio for that calendar
9year by the adjusted state experience factor for the same year,
10provided, that:
11        1. An employer's minimum contribution rate shall be the
12    greater of .2% or the product obtained by multiplying .2%
13    by the adjusted State experience factor for the applicable
14    calendar year.
15        2. An employer's maximum contribution rate shall be the
16    greater of 5.5% or the product of 5.5% and the adjusted
17    State experience factor for the calendar year 1987 except
18    that such maximum contribution rate shall not be higher
19    than 6.7% or lower than 6.5% and an employer's maximum
20    contribution rate for 1988, 1989 and 1990 shall be the
21    greater of 6.4% or the product of 6.4% and the adjusted
22    State experience factor for the applicable calendar year.
23        3. If any product obtained in this subsection is not an
24    exact multiple of one-tenth of one percent, it shall be
25    increased or reduced, as the case may be to the nearer
26    multiple of one-tenth of 1 percent. If such product is

 

 

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1    equally near to two multiples of one-tenth of 1 percent, it
2    shall be increased to the higher multiple of one-tenth of 1
3    percent.
4        4. Intermediate rates between such minimum and maximum
5    rates shall be at one-tenth of 1 percent intervals.
6    The contribution rate of each employer for whom wages
7became benefit wages during the applicable period specified in
8Section 1503, but who did not report wages for insured work
9during such period, shall be the maximum contribution rate as
10determined by paragraph 2 of this subsection. The contribution
11rate for each employer for whom no wages became benefit wages
12during the applicable period specified in Section 1503, and who
13did not report wages for insured work during such period, shall
14be the greater of 2.7% or 2.7% times the then current adjusted
15State experience factor as determined by the Director in
16accordance with the provisions of Sections 1504 and 1505.
17    E. The contribution rate for calendar year 1991 and each
18calendar year thereafter of each employer who has incurred
19liability for the payment of contributions within each of the
20three calendar years immediately preceding the calendar year
21for which a rate is being determined shall be the product
22obtained by multiplying the employer's benefit ratio defined by
23Section 1503.1 for that calendar year by the adjusted state
24experience factor for the same year, provided that:
25        1. Except as otherwise provided in this paragraph, an
26    employer's minimum contribution rate shall be the greater

 

 

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1    of 0.2% or the product obtained by multiplying 0.2% by the
2    adjusted state experience factor for the applicable
3    calendar year. An employer's minimum contribution rate
4    shall be 0.1% for calendar year 1996.
5        2. An employer's maximum contribution rate shall be the
6    greater of 6.4% or the product of 6.4% and the adjusted
7    state experience factor for the applicable calendar year.
8        3. If any product obtained in this subsection is not an
9    exact multiple of one-tenth of one percent, it shall be
10    increased or reduced, as the case may be to the nearer
11    multiple of one-tenth of one percent. If such product is
12    equally near to two multiples of one-tenth of one percent,
13    it shall be increased to the higher multiple of one-tenth
14    of one percent.
15        4. Intermediate rates between such minimum and maximum
16    rates shall be at one-tenth of one percent intervals.
17    The contribution rate of each employer for whom wages
18became benefit wages during the applicable period specified in
19Section 1503 or for whom benefit payments became benefit
20charges during the applicable period specified in Section
211503.1, but who did not report wages for insured work during
22such period, shall be the maximum contribution rate as
23determined by paragraph 2 of this subsection. The contribution
24rate for each employer for whom no wages became benefit wages
25during the applicable period specified in Section 1503 or for
26whom no benefit payments became benefit charges during the

 

 

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1applicable period specified in Section 1503.1, and who did not
2report wages for insured work during such period, shall be the
3greater of 2.7% or 2.7% times the then current adjusted state
4experience factor as determined by the Director in accordance
5with the provisions of Sections 1504 and 1505.
6    E-5. The contribution rate for calendar year 2012 and each
7calendar year thereafter of each employer who has incurred
8liability for the payment of contributions within each of the 3
9calendar years immediately preceding the calendar year for
10which a rate is being determined shall be the product obtained
11by multiplying the employer's benefit ratio defined by Section
121503.1 for that calendar year by the adjusted State experience
13factor for the same year, provided that:
14        1. Except as otherwise provided in this paragraph, an
15    employer's minimum contribution rate shall be 0.0%.
16        2. An employer's maximum contribution rate shall be the
17    greater of 7.4% or the product of 7.4% and the adjusted
18    State experience factor for the applicable calendar year.
19        3. If any product obtained in this subsection is not an
20    exact multiple of one-tenth of 1%, it shall be increased or
21    reduced, as the case may be, to the nearer multiple of
22    one-tenth of 1%. If such product is equally near to 2
23    multiples of one-tenth of 1%, it shall be increased to the
24    higher multiple of one-tenth of 1%.
25        4. Intermediate rates between such minimum and maximum
26    rates shall be at one-tenth of 1% intervals. The

 

 

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1    contribution rate of each employer for whom wages became
2    benefit wages during the applicable period specified in
3    Section 1503 or for whom benefit payments became benefit
4    charges during the applicable period specified in Section
5    1503.1, but who did not report wages for insured work
6    during such period, shall be the maximum contribution rate
7    as determined by paragraph 2 of this subsection. The
8    contribution rate for each employer for whom no wages
9    became benefit wages during the applicable period
10    specified in Section 1503 or for whom no benefit payments
11    became benefit charges during the applicable period
12    specified in Section 1503.1, and who did not report wages
13    for insured work during such period, shall be the greater
14    of 2.7% or 2.7% times the then current adjusted State
15    experience factor as determined by the Director in
16    accordance with the provisions of Sections 1504 and 1505.
17    F. Notwithstanding the other provisions of this Section,
18and pursuant to Section 271 of the Tax Equity and Fiscal
19Responsibility Act of 1982, as amended, no employer's
20contribution rate with respect to calendar years 1985, 1986,
211987 and 1988 shall, for any calendar quarter during which the
22wages paid by that employer are less than $50,000, exceed the
23following: with respect to calendar year 1985, 3.7%; with
24respect to calendar year 1986, 4.1%; with respect to calendar
25year 1987, 4.5%; and with respect to calendar year 1988, 5.0%.
26    G. Notwithstanding the other provisions of this Section, no

 

 

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1employer's contribution rate with respect to calendar year 1989
2and each calendar year thereafter shall exceed 5.4% of the
3wages for insured work paid by him during any calendar quarter,
4if such wages paid during such calendar quarter total less than
5$50,000, plus any applicable penalty contribution rate
6calculated pursuant to subsection C of Section 1507.1.
7(Source: P.A. 94-301, eff. 1-1-06.)
 
8    (820 ILCS 405/3150 new)
9    Sec. 3150. Unemployment Insurance Task Force.
10    (a) Definition. As used in this Section, "Task Force" means
11the Unemployment Insurance Task Force.
12    (b) Creation and duties. The Unemployment Insurance Task
13Force is created to study and make recommendations regarding
14ideas to reform unemployment insurance in Illinois in a way
15which encourages business growth while ensuring protection of
16workers who become involuntarily unemployed. Reform ideas may
17include, but are not limited to, altering employer contribution
18rates to place a greater burden upon those employers with
19greater employment loss experience, allowing for and
20developing a private unemployment insurance market, and
21privatizing unemployment insurance through the establishment
22of employee-owned accounts similar to retirement accounts to be
23funded by contributions from the employer and employee to be
24used at the discretion of the employee if he or she becomes
25unemployed.

 

 

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1    (c) Membership. The Task Force shall be comprised of the
2following individuals:
3        (1) one member appointed by the Governor, who shall
4    serve as chairperson of the Task Force;
5        (2) one member appointed by the Speaker of the House of
6    Representatives;
7        (3) one member appointed by the Minority Leader of the
8    House of Representatives;
9        (4) one member appointed by the President of the
10    Senate; and
11        (5) one member appointed by the Minority Leader of the
12    Senate.
13    (d) Appointments. Appointments shall be made 90 days from
14the effective date of this amendatory Act of the 97th General
15Assembly.
16    (e) Compensation. The Task Force members shall serve
17voluntarily and without compensation.
18    (f) Support. The Department shall be responsible for
19providing staff and administrative support to the Task Force.
20    (g) Hearings. The Task Force shall solicit comments and
21hold public hearings before filing any report required by this
22Section.
23    (h) Reporting requirements. The Task Force shall submit a
24final report of its findings and recommendations to the
25Governor and the General Assembly on or before December 31,
262012. The final report shall include estimated costs and

 

 

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1savings data for the State, Illinois businesses, and Illinois
2workers related to any recommendations.
3    (i) Abolishment. The Task Force is abolished on January 1,
42013.
5    (j) Repeal. This Section is repealed on January 1, 2013.
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.