HB5632 EngrossedLRB097 18216 JLS 65924 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Unemployment Insurance Act is amended by
5changing Sections 401, 706, 900, 1300, 1401, 1402, 1501.1,
61505, 1506.1, 1506.3, 1506.5, 1801.1, 2100, and 2103 and by
7adding Section 901.1 as follows:
 
8    (820 ILCS 405/401)  (from Ch. 48, par. 401)
9    Sec. 401. Weekly Benefit Amount - Dependents' Allowances.
10    A. With respect to any week beginning in a benefit year
11beginning prior to January 4, 2004 April 24, 1983, an
12individual's weekly benefit amount shall be an amount equal to
13the weekly benefit amount as defined in the provisions of this
14Act as amended and in effect on November 18, 2011 30, 1982.
15    B. 1. With respect to any week beginning on or after April
1624, 1983 and before January 3, 1988, an individual's weekly
17benefit amount shall be 48% of his prior average weekly wage,
18rounded (if not already a multiple of one dollar) to the next
19higher dollar; provided, however, that the weekly benefit
20amount cannot exceed the maximum weekly benefit amount, and
21cannot be less than 15% of the statewide average weekly wage,
22rounded (if not already a multiple of one dollar) to the next
23higher dollar. However, the weekly benefit amount for an

 

 

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1individual who has established a benefit year beginning before
2April 24, 1983, shall be determined, for weeks beginning on or
3after April 24, 1983 claimed with respect to that benefit year,
4as provided under this Act as in effect on November 30, 1982.
5With respect to any week beginning on or after January 3, 1988
6and before January 1, 1993, an individual's weekly benefit
7amount shall be 49% of his prior average weekly wage, rounded
8(if not already a multiple of one dollar) to the next higher
9dollar; provided, however, that the weekly benefit amount
10cannot exceed the maximum weekly benefit amount, and cannot be
11less than $51. With respect to any week beginning on or after
12January 3, 1993 and during a benefit year beginning before
13January 4, 2004, an individual's weekly benefit amount shall be
1449.5% of his prior average weekly wage, rounded (if not already
15a multiple of one dollar) to the next higher dollar; provided,
16however, that the weekly benefit amount cannot exceed the
17maximum weekly benefit amount and cannot be less than $51. With
18respect to any benefit year beginning on or after January 4,
192004 and before January 6, 2008, an individual's weekly benefit
20amount shall be 48% of his or her prior average weekly wage,
21rounded (if not already a multiple of one dollar) to the next
22higher dollar; provided, however, that the weekly benefit
23amount cannot exceed the maximum weekly benefit amount and
24cannot be less than $51. Except as otherwise provided in this
25Section, with respect to any benefit year beginning on or after
26January 6, 2008, an individual's weekly benefit amount shall be

 

 

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147% of his or her prior average weekly wage, rounded (if not
2already a multiple of one dollar) to the next higher dollar;
3provided, however, that the weekly benefit amount cannot exceed
4the maximum weekly benefit amount and cannot be less than $51.
5With respect to any benefit year beginning in calendar year
62016, an individual's weekly benefit amount shall be 42.8% of
7his or her prior average weekly wage, rounded (if not already a
8multiple of one dollar) to the next higher dollar; provided,
9however, that the weekly benefit amount cannot exceed the
10maximum weekly benefit amount and cannot be less than $51. With
11respect to any benefit year beginning in calendar year 2018, an
12individual's weekly benefit amount shall be 42.9% of his or her
13prior average weekly wage, rounded (if not already a multiple
14of one dollar) to the next higher dollar; provided, however,
15that the weekly benefit amount cannot exceed the maximum weekly
16benefit amount and cannot be less than $51.
17    2. For the purposes of this subsection:
18    An With respect to any week beginning on or after April 24,
191983, an individual's "prior average weekly wage" means the
20total wages for insured work paid to that individual during the
212 calendar quarters of his base period in which such total
22wages were highest, divided by 26. If the quotient is not
23already a multiple of one dollar, it shall be rounded to the
24nearest dollar; however if the quotient is equally near 2
25multiples of one dollar, it shall be rounded to the higher
26multiple of one dollar.

 

 

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1    "Determination date" means June 1 and , 1982, December 1,
21982 and December 1 of each succeeding calendar year except
3that thereafter. However, if as of June 30, 1982, or any June
430 thereafter, the net amount standing to the credit of this
5State's account in the unemployment trust fund (less all
6outstanding advances to that account, including advances
7pursuant to Title XII of the federal Social Security Act) is
8greater than $100,000,000, "determination date" shall mean
9December 1 of that year and June 1 of the succeeding year.
10Notwithstanding the preceding sentence, for the purposes of
11this Act only, there shall be no June 1 determination date in
12any year after 1986.
13    "Determination period" means, with respect to each June 1
14determination date, the 12 consecutive calendar months ending
15on the immediately preceding December 31 and, with respect to
16each December 1 determination date, the 12 consecutive calendar
17months ending on the immediately preceding June 30.
18    "Benefit period" means the 12 consecutive calendar month
19period beginning on the first day of the first calendar month
20immediately following a determination date, except that, with
21respect to any calendar year in which there is a June 1
22determination date, "benefit period" shall mean the 6
23consecutive calendar month period beginning on the first day of
24the first calendar month immediately following the preceding
25December 1 determination date and the 6 consecutive calendar
26month period beginning on the first day of the first calendar

 

 

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1month immediately following the June 1 determination date.
2Notwithstanding the foregoing sentence, the 6 calendar months
3beginning January 1, 1982 and ending June 30, 1982 shall be
4deemed a benefit period with respect to which the determination
5date shall be June 1, 1981.
6    "Gross wages" means all the wages paid to individuals
7during the determination period immediately preceding a
8determination date for insured work, and reported to the
9Director by employers prior to the first day of the third
10calendar month preceding that date.
11    "Covered employment" for any calendar month means the total
12number of individuals, as determined by the Director, engaged
13in insured work at mid-month.
14    "Average monthly covered employment" means one-twelfth of
15the sum of the covered employment for the 12 months of a
16determination period.
17    "Statewide average annual wage" means the quotient,
18obtained by dividing gross wages by average monthly covered
19employment for the same determination period, rounded (if not
20already a multiple of one cent) to the nearest cent.
21    "Statewide average weekly wage" means the quotient,
22obtained by dividing the statewide average annual wage by 52,
23rounded (if not already a multiple of one cent) to the nearest
24cent. Notwithstanding any provision of this Section to the
25contrary, the statewide average weekly wage for any benefit
26period prior to calendar year 2012 shall be as determined by

 

 

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1the provisions of this Act as amended and in effect on November
218, 2011. Notwithstanding any provisions of this Section to the
3contrary, the statewide average weekly wage for the benefit
4period of beginning July 1, 1982 and ending December 31, 1982
5shall be the statewide average weekly wage in effect for the
6immediately preceding benefit period plus one-half of the
7result obtained by subtracting the statewide average weekly
8wage for the immediately preceding benefit period from the
9statewide average weekly wage for the benefit period beginning
10July 1, 1982 and ending December 31, 1982 as such statewide
11average weekly wage would have been determined but for the
12provisions of this paragraph. Notwithstanding any provisions
13of this Section to the contrary, the statewide average weekly
14wage for the benefit period beginning April 24, 1983 and ending
15January 31, 1984 shall be $321 and for the benefit period
16beginning February 1, 1984 and ending December 31, 1986 shall
17be $335, and for the benefit period beginning January 1, 1987,
18and ending December 31, 1987, shall be $350, except that for an
19individual who has established a benefit year beginning before
20April 24, 1983, the statewide average weekly wage used in
21determining benefits, for any week beginning on or after April
2224, 1983, claimed with respect to that benefit year, shall be
23$334.80, except that, for the purpose of determining the
24minimum weekly benefit amount under subsection B(1) for the
25benefit period beginning January 1, 1987, and ending December
2631, 1987, the statewide average weekly wage shall be $335; for

 

 

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1the benefit periods January 1, 1988 through December 31, 1988,
2January 1, 1989 through December 31, 1989, and January 1, 1990
3through December 31, 1990, the statewide average weekly wage
4shall be $359, $381, and $406, respectively. Notwithstanding
5the preceding sentences of this paragraph, for the benefit
6period of calendar year 1991, the statewide average weekly wage
7shall be $406 plus (or minus) an amount equal to the percentage
8change in the statewide average weekly wage, as computed in
9accordance with the preceding sentences of this paragraph,
10between the benefit periods of calendar years 1989 and 1990,
11multiplied by $406; and, for the benefit periods of calendar
12years 1992 through 2003 and calendar year 2012 shall be $856.55
132005 and for each calendar year thereafter, the statewide
14average weekly wage, shall be the statewide average weekly
15wage, as determined in accordance with this sentence, for the
16immediately preceding benefit period plus (or minus) an amount
17equal to the percentage change in the statewide average weekly
18wage, as computed in accordance with the first sentence
19preceding sentences of this paragraph, between the 2
20immediately preceding benefit periods, multiplied by the
21statewide average weekly wage, as determined in accordance with
22this sentence, for the immediately preceding benefit period.
23However, for purposes of the Workers' Compensation Act, the
24statewide average weekly wage will be computed using June 1 and
25December 1 determination dates of each calendar year and such
26determination shall not be subject to the limitation of $321,

 

 

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1$335, $350, $359, $381, $406 or the statewide average weekly
2wage as computed in accordance with the preceding sentence of
3this paragraph.
4    With respect to any week beginning in a benefit year
5beginning prior to January 4, 2004, "maximum weekly benefit
6amount" with respect to each week beginning within a benefit
7period shall be as defined in the provisions of this Act as
8amended and in effect on November 18, 2011.
9    With respect to any week beginning on or after April 24,
101983 and before January 3, 1988, "maximum weekly benefit
11amount" means 48% of the statewide average weekly wage, rounded
12(if not already a multiple of one dollar) to the nearest
13dollar, provided however, that the maximum weekly benefit
14amount for an individual who has established a benefit year
15beginning before April 24, 1983, shall be determined, for weeks
16beginning on or after April 24, 1983 claimed with respect to
17that benefit year, as provided under this Act as amended and in
18effect on November 30, 1982, except that the statewide average
19weekly wage used in such determination shall be $334.80.
20    With respect to any week beginning after January 2, 1988
21and before January 1, 1993, "maximum weekly benefit amount"
22with respect to each week beginning within a benefit period
23means 49% of the statewide average weekly wage, rounded (if not
24already a multiple of one dollar) to the next higher dollar.
25    With respect to any week beginning on or after January 3,
261993 and during a benefit year beginning before January 4,

 

 

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12004, "maximum weekly benefit amount" with respect to each week
2beginning within a benefit period means 49.5% of the statewide
3average weekly wage, rounded (if not already a multiple of one
4dollar) to the next higher dollar.
5    With respect to any benefit year beginning on or after
6January 4, 2004 and before January 6, 2008, "maximum weekly
7benefit amount" with respect to each week beginning within a
8benefit period means 48% of the statewide average weekly wage,
9rounded (if not already a multiple of one dollar) to the next
10higher dollar.
11    Except as otherwise provided in this Section, with respect
12to any benefit year beginning on or after January 6, 2008,
13"maximum weekly benefit amount" with respect to each week
14beginning within a benefit period means 47% of the statewide
15average weekly wage, rounded (if not already a multiple of one
16dollar) to the next higher dollar.
17    With respect to any benefit year beginning in calendar year
182016, "maximum weekly benefit amount" with respect to each week
19beginning within a benefit period means 42.8% of the statewide
20average weekly wage, rounded (if not already a multiple of one
21dollar) to the next higher dollar.
22    With respect to any benefit year beginning in calendar year
232018, "maximum weekly benefit amount" with respect to each week
24beginning within a benefit period means 42.9% of the statewide
25average weekly wage, rounded (if not already a multiple of one
26dollar) to the next higher dollar.

 

 

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1    C. With respect to any week beginning in a benefit year
2beginning prior to January 4, 2004, an individual's eligibility
3for a dependent allowance with respect to a nonworking spouse
4or one or more dependent children shall be as defined by the
5provisions of this Act as amended and in effect on November 18,
62011. on or after April 24, 1983 and before January 3, 1988, an
7individual to whom benefits are payable with respect to any
8week shall, in addition to such benefits, be paid, with respect
9to such week, as follows: in the case of an individual with a
10nonworking spouse, 7% of his prior average weekly wage, rounded
11(if not already a multiple of one dollar) to the higher dollar;
12provided, that the total amount payable to the individual with
13respect to a week shall not exceed 55% of the statewide average
14weekly wage, rounded (if not already a multiple of one dollar)
15to the nearest dollar; and in the case of an individual with a
16dependent child or dependent children, 14.4% of his prior
17average weekly wage, rounded (if not already a multiple of one
18dollar) to the higher dollar; provided, that the total amount
19payable to the individual with respect to a week shall not
20exceed 62.4% of the statewide average weekly wage, rounded (if
21not already a multiple of one dollar) to the next higher dollar
22with respect to the benefit period beginning January 1, 1987
23and ending December 31, 1987, and otherwise to the nearest
24dollar. However, for an individual with a nonworking spouse or
25with a dependent child or children who has established a
26benefit year beginning before April 24, 1983, the amount of

 

 

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1additional benefits payable on account of the nonworking spouse
2or dependent child or children shall be determined, for weeks
3beginning on or after April 24, 1983 claimed with respect to
4that benefit year, as provided under this Act as in effect on
5November 30, 1982, except that the statewide average weekly
6wage used in such determination shall be $334.80.
7    With respect to any week beginning on or after January 2,
81988 and before January 1, 1991 and any week beginning on or
9after January 1, 1992, and before January 1, 1993, an
10individual to whom benefits are payable with respect to any
11week shall, in addition to those benefits, be paid, with
12respect to such week, as follows: in the case of an individual
13with a nonworking spouse, 8% of his prior average weekly wage,
14rounded (if not already a multiple of one dollar) to the next
15higher dollar, provided, that the total amount payable to the
16individual with respect to a week shall not exceed 57% of the
17statewide average weekly wage, rounded (if not already a
18multiple of one dollar) to the next higher dollar; and in the
19case of an individual with a dependent child or dependent
20children, 15% of his prior average weekly wage, rounded (if not
21already a multiple of one dollar) to the next higher dollar,
22provided that the total amount payable to the individual with
23respect to a week shall not exceed 64% of the statewide average
24weekly wage, rounded (if not already a multiple of one dollar)
25to the next higher dollar.
26    With respect to any week beginning on or after January 1,

 

 

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11991 and before January 1, 1992, an individual to whom benefits
2are payable with respect to any week shall, in addition to the
3benefits, be paid, with respect to such week, as follows: in
4the case of an individual with a nonworking spouse, 8.3% of his
5prior average weekly wage, rounded (if not already a multiple
6of one dollar) to the next higher dollar, provided, that the
7total amount payable to the individual with respect to a week
8shall not exceed 57.3% of the statewide average weekly wage,
9rounded (if not already a multiple of one dollar) to the next
10higher dollar; and in the case of an individual with a
11dependent child or dependent children, 15.3% of his prior
12average weekly wage, rounded (if not already a multiple of one
13dollar) to the next higher dollar, provided that the total
14amount payable to the individual with respect to a week shall
15not exceed 64.3% of the statewide average weekly wage, rounded
16(if not already a multiple of one dollar) to the next higher
17dollar.
18    With respect to any week beginning on or after January 3,
191993, during a benefit year beginning before January 4, 2004,
20an individual to whom benefits are payable with respect to any
21week shall, in addition to those benefits, be paid, with
22respect to such week, as follows: in the case of an individual
23with a nonworking spouse, 9% of his prior average weekly wage,
24rounded (if not already a multiple of one dollar) to the next
25higher dollar, provided, that the total amount payable to the
26individual with respect to a week shall not exceed 58.5% of the

 

 

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1statewide average weekly wage, rounded (if not already a
2multiple of one dollar) to the next higher dollar; and in the
3case of an individual with a dependent child or dependent
4children, 16% of his prior average weekly wage, rounded (if not
5already a multiple of one dollar) to the next higher dollar,
6provided that the total amount payable to the individual with
7respect to a week shall not exceed 65.5% of the statewide
8average weekly wage, rounded (if not already a multiple of one
9dollar) to the next higher dollar.
10    With respect to any benefit year beginning on or after
11January 4, 2004 and before January 6, 2008, an individual to
12whom benefits are payable with respect to any week shall, in
13addition to those benefits, be paid, with respect to such week,
14as follows: in the case of an individual with a nonworking
15spouse, 9% of his or her prior average weekly wage, rounded (if
16not already a multiple of one dollar) to the next higher
17dollar, provided, that the total amount payable to the
18individual with respect to a week shall not exceed 57% of the
19statewide average weekly wage, rounded (if not already a
20multiple of one dollar) to the next higher dollar; and in the
21case of an individual with a dependent child or dependent
22children, 17.2% of his or her prior average weekly wage,
23rounded (if not already a multiple of one dollar) to the next
24higher dollar, provided that the total amount payable to the
25individual with respect to a week shall not exceed 65.2% of the
26statewide average weekly wage, rounded (if not already a

 

 

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1multiple of one dollar) to the next higher dollar.
2    With respect to any benefit year beginning on or after
3January 6, 2008 and before January 1, 2010, an individual to
4whom benefits are payable with respect to any week shall, in
5addition to those benefits, be paid, with respect to such week,
6as follows: in the case of an individual with a nonworking
7spouse, 9% of his or her prior average weekly wage, rounded (if
8not already a multiple of one dollar) to the next higher
9dollar, provided, that the total amount payable to the
10individual with respect to a week shall not exceed 56% of the
11statewide average weekly wage, rounded (if not already a
12multiple of one dollar) to the next higher dollar; and in the
13case of an individual with a dependent child or dependent
14children, 18.2% of his or her prior average weekly wage,
15rounded (if not already a multiple of one dollar) to the next
16higher dollar, provided that the total amount payable to the
17individual with respect to a week shall not exceed 65.2% of the
18statewide average weekly wage, rounded (if not already a
19multiple of one dollar) to the next higher dollar.
20    The additional amount paid pursuant to this subsection in
21the case of an individual with a dependent child or dependent
22children shall be referred to as the "dependent child
23allowance", and the percentage rate by which an individual's
24prior average weekly wage is multiplied pursuant to this
25subsection to calculate the dependent child allowance shall be
26referred to as the "dependent child allowance rate".

 

 

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1    Except as otherwise provided in this Section, with respect
2to any benefit year beginning on or after January 1, 2010, an
3individual to whom benefits are payable with respect to any
4week shall, in addition to those benefits, be paid, with
5respect to such week, as follows: in the case of an individual
6with a nonworking spouse, the greater of (i) 9% of his or her
7prior average weekly wage, rounded (if not already a multiple
8of one dollar) to the next higher dollar, or (ii) $15, provided
9that the total amount payable to the individual with respect to
10a week shall not exceed 56% of the statewide average weekly
11wage, rounded (if not already a multiple of one dollar) to the
12next higher dollar; and in the case of an individual with a
13dependent child or dependent children, the greater of (i) the
14product of the dependent child allowance rate multiplied by his
15or her prior average weekly wage, rounded (if not already a
16multiple of one dollar) to the next higher dollar, or (ii) the
17lesser of $50 or 50% of his or her weekly benefit amount,
18rounded (if not already a multiple of one dollar) to the next
19higher dollar, provided that the total amount payable to the
20individual with respect to a week shall not exceed the product
21of the statewide average weekly wage multiplied by the sum of
2247% plus the dependent child allowance rate, rounded (if not
23already a multiple of one dollar) to the next higher dollar.
24    With respect to any benefit year beginning in calendar year
252016, an individual to whom benefits are payable with respect
26to any week shall, in addition to those benefits, be paid, with

 

 

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1respect to such week, as follows: in the case of an individual
2with a nonworking spouse, the greater of (i) 9% of his or her
3prior average weekly wage, rounded (if not already a multiple
4of one dollar) to the next higher dollar, or (ii) $15, provided
5that the total amount payable to the individual with respect to
6a week shall not exceed 51.8% of the statewide average weekly
7wage, rounded (if not already a multiple of one dollar) to the
8next higher dollar; and in the case of an individual with a
9dependent child or dependent children, the greater of (i) the
10product of the dependent child allowance rate multiplied by his
11or her prior average weekly wage, rounded (if not already a
12multiple of one dollar) to the next higher dollar, or (ii) the
13lesser of $50 or 50% of his or her weekly benefit amount,
14rounded (if not already a multiple of one dollar) to the next
15higher dollar, provided that the total amount payable to the
16individual with respect to a week shall not exceed the product
17of the statewide average weekly wage multiplied by the sum of
1842.8% plus the dependent child allowance rate, rounded (if not
19already a multiple of one dollar) to the next higher dollar.
20    With respect to any benefit year beginning in calendar year
212018, an individual to whom benefits are payable with respect
22to any week shall, in addition to those benefits, be paid, with
23respect to such week, as follows: in the case of an individual
24with a nonworking spouse, the greater of (i) 9% of his or her
25prior average weekly wage, rounded (if not already a multiple
26of one dollar) to the next higher dollar, or (ii) $15, provided

 

 

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1that the total amount payable to the individual with respect to
2a week shall not exceed 51.9% of the statewide average weekly
3wage, rounded (if not already a multiple of one dollar) to the
4next higher dollar; and in the case of an individual with a
5dependent child or dependent children, the greater of (i) the
6product of the dependent child allowance rate multiplied by his
7or her prior average weekly wage, rounded (if not already a
8multiple of one dollar) to the next higher dollar, or (ii) the
9lesser of $50 or 50% of his or her weekly benefit amount,
10rounded (if not already a multiple of one dollar) to the next
11higher dollar, provided that the total amount payable to the
12individual with respect to a week shall not exceed the product
13of the statewide average weekly wage multiplied by the sum of
1442.9% plus the dependent child allowance rate, rounded (if not
15already a multiple of one dollar) to the next higher dollar.
16    With respect to each benefit year beginning after calendar
17year 2012 2009, the dependent child allowance rate shall be the
18sum of the allowance adjustment applicable pursuant to Section
191400.1 to the calendar year in which the benefit year begins,
20plus the dependent child allowance rate with respect to each
21benefit year beginning in the immediately preceding calendar
22year, except as otherwise provided in this subsection. The
23dependent child allowance rate with respect to each benefit
24year beginning in calendar year 2010 shall not be 17.9% greater
25than 18.2%. The dependent child allowance rate with respect to
26each benefit year beginning in calendar year 2011 shall be

 

 

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117.4%. The reduced by 0.2% absolute below the rate it would
2otherwise have been pursuant to this subsection and, with
3respect to each benefit year beginning after calendar year
42010, except as otherwise provided, shall not be less than
517.1% or greater than 18.0%. Unless, as a result of this
6sentence, the agreement between the Federal Government and
7State regarding the Federal Additional Compensation program
8established under Section 2002 of the American Recovery and
9Reinvestment Act, or a successor program, would not apply or
10would cease to apply, the dependent child allowance rate with
11respect to each benefit year beginning in calendar year 2012
12shall be 17.0% reduced by 0.1% absolute below the rate it would
13otherwise have been pursuant to this subsection and, with
14respect to each benefit year beginning after calendar year 2012
152011, shall not be less than 17.0% or greater than 17.9%.
16    For the purposes of this subsection:
17    "Dependent" means a child or a nonworking spouse.
18    "Child" means a natural child, stepchild, or adopted child
19of an individual claiming benefits under this Act or a child
20who is in the custody of any such individual by court order,
21for whom the individual is supplying and, for at least 90
22consecutive days (or for the duration of the parental
23relationship if it has existed for less than 90 days)
24immediately preceding any week with respect to which the
25individual has filed a claim, has supplied more than one-half
26the cost of support, or has supplied at least 1/4 of the cost

 

 

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1of support if the individual and the other parent, together,
2are supplying and, during the aforesaid period, have supplied
3more than one-half the cost of support, and are, and were
4during the aforesaid period, members of the same household; and
5who, on the first day of such week (a) is under 18 years of age,
6or (b) is, and has been during the immediately preceding 90
7days, unable to work because of illness or other disability:
8provided, that no person who has been determined to be a child
9of an individual who has been allowed benefits with respect to
10a week in the individual's benefit year shall be deemed to be a
11child of the other parent, and no other person shall be
12determined to be a child of such other parent, during the
13remainder of that benefit year.
14    "Nonworking spouse" means the lawful husband or wife of an
15individual claiming benefits under this Act, for whom more than
16one-half the cost of support has been supplied by the
17individual for at least 90 consecutive days (or for the
18duration of the marital relationship if it has existed for less
19than 90 days) immediately preceding any week with respect to
20which the individual has filed a claim, but only if the
21nonworking spouse is currently ineligible to receive benefits
22under this Act by reason of the provisions of Section 500E.
23    An individual who was obligated by law to provide for the
24support of a child or of a nonworking spouse for the aforesaid
25period of 90 consecutive days, but was prevented by illness or
26injury from doing so, shall be deemed to have provided more

 

 

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1than one-half the cost of supporting the child or nonworking
2spouse for that period.
3(Source: P.A. 96-30, eff. 6-30-09; 97-621, eff. 11-18-11.)
 
4    (820 ILCS 405/706)  (from Ch. 48, par. 456)
5    Sec. 706. Benefits undisputed or allowed - Prompt payment.
6Benefits shall be paid promptly in accordance with a claims
7adjudicator's finding and determination, or reconsidered
8finding or reconsidered determination, or the decision of a
9Referee, the Board of Review or a reviewing court, upon the
10issuance of such finding and determination, reconsidered
11finding, reconsidered determination or decision, regardless of
12the pendency of the period to apply for reconsideration, file
13an appeal, or file a complaint for judicial review, or the
14pendency of any such application or filing, unless and until
15such finding, determination, reconsidered finding,
16reconsidered determination or decision has been modified or
17reversed by a subsequent reconsidered finding or reconsidered
18determination or decision, in which event benefits shall be
19paid or denied with respect to weeks thereafter in accordance
20with such reconsidered finding, reconsidered determination, or
21modified or reversed finding, determination, reconsidered
22finding, reconsidered determination or decision. Except as
23otherwise provided in this Section, if If benefits are paid
24pursuant to a finding or a determination, or a reconsidered
25finding, or a reconsidered determination, or a decision of a

 

 

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1Referee, the Board of Review or a court, which is finally
2reversed or modified in subsequent proceedings with respect
3thereto, the benefit wages on which such benefits are based
4shall, for the purposes set forth in Section 1502, or benefit
5charges, for purposes set forth in Section 1502.1, be treated
6in the same manner as if such final reconsidered finding,
7reconsidered determination, or decision had been the finding or
8determination of the claims adjudicator. If benefits are paid
9pursuant to a finding, determination, reconsidered finding or
10determination, or a decision of a Referee, the Board of Review,
11or a court which is finally reversed or modified in subsequent
12proceedings with respect thereto, the benefit charges, for
13purposes set forth in Section 1502.1, shall be treated in the
14same manner as if the finding, determination, reconsidered
15finding or determination, or decision of the Referee, the Board
16of Review, or the court pursuant to which benefits were paid
17had not been reversed if: (1) the benefits were paid because
18the employer or an agent of the employer was at fault for
19failing to respond timely or adequately to the Department's
20request for information relating to the claim; and (2) the
21employer or agent has established a pattern of failing to
22respond timely or adequately to such requests.
23(Source: P.A. 85-956.)
 
24    (820 ILCS 405/900)  (from Ch. 48, par. 490)
25    Sec. 900. Recoupment.) A. Whenever an individual has

 

 

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1received any sum as benefits for which he is found to have been
2ineligible, the amount thereof may be recovered by suit in the
3name of the People of the State of Illinois, or, from benefits
4payable to him, may be recouped:
5    1. At any time, if, to receive such sum, he knowingly made
6a false statement or knowingly failed to disclose a material
7fact.
8    2. Within 3 years from any date prior to January 1, 1984,
9on which he has been found to have been ineligible for any
10other reason, pursuant to a reconsidered finding or a
11reconsidered determination, or pursuant to the decision of a
12Referee (or of the Director or his representative under Section
13604) which modifies or sets aside a finding or a reconsidered
14finding or a determination or a reconsidered determination; or
15within 5 years from any date after December 31, 1983, on which
16he has been found to have been ineligible for any other reason,
17pursuant to a reconsidered finding or a reconsidered
18determination, or pursuant to the decision of a Referee (or of
19the Director or his representative under Section 604) which
20modifies or sets aside a finding or a reconsidered finding or a
21determination or a reconsidered determination. Recoupment
22pursuant to the provisions of this paragraph from benefits
23payable to an individual for any week may be waived upon the
24individual's request, if the sum referred to in paragraph A was
25received by the individual without fault on his part and if
26such recoupment would be against equity and good conscience.

 

 

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1Such waiver may be denied with respect to any subsequent week
2if, in that week, the facts and circumstances upon which waiver
3was based no longer exist.
4    B. Whenever the claims adjudicator referred to in Section
5702 decides that any sum received by a claimant as benefits
6shall be recouped, or denies recoupment waiver requested by the
7claimant, he shall promptly notify the claimant of his decision
8and the reasons therefor. The decision and the notice thereof
9shall state the amount to be recouped, the weeks with respect
10to which such sum was received by the claimant, and the time
11within which it may be recouped and, as the case may be, the
12reasons for denial of recoupment waiver. The claims adjudicator
13may reconsider his decision within one year after the date when
14the decision was made. Such decision or reconsidered decision
15may be appealed to a Referee within the time limits prescribed
16by Section 800 for appeal from a determination. Any such
17appeal, and any appeal from the Referee's decision thereon,
18shall be governed by the applicable provisions of Sections 801,
19803, 804 and 805. No recoupment shall be begun until the
20expiration of the time limits prescribed by Section 800 of this
21Act or, if an appeal has been filed, until the decision of a
22Referee has been made thereon affirming the decision of the
23Claims Adjudicator.
24    C. Any sums recovered under the provisions of this Section
25shall be treated as repayments to the Department Director of
26sums improperly obtained by the claimant.

 

 

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1    D. Whenever, by reason of a back pay award made by any
2governmental agency or pursuant to arbitration proceedings, or
3by reason of a payment of wages wrongfully withheld by an
4employing unit, an individual has received wages for weeks with
5respect to which he has received benefits, the amount of such
6benefits may be recouped or otherwise recovered as herein
7provided. An employing unit making a back pay award to an
8individual for weeks with respect to which the individual has
9received benefits shall make the back pay award by check
10payable jointly to the individual and to the Department
11Director.
12    E. The amount recouped pursuant to paragraph 2 of
13subsection A from benefits payable to an individual for any
14week shall not exceed 25% of the individual's weekly benefit
15amount.
16    In addition to the remedies provided by this Section, when
17an individual has received any sum as benefits for which he is
18found to be ineligible, the Director may request the
19Comptroller to withhold such sum in accordance with Section
2010.05 of the State Comptroller Act and the Director may request
21the Secretary of the Treasury to withhold such sum to the
22extent allowed by and in accordance with Section 6402(f) of the
23federal Internal Revenue Code of 1986, as amended. Benefits
24paid pursuant to this Act shall not be subject to such
25withholding. Where the Director requests withholding by the
26Secretary of the Treasury pursuant to this Section, in addition

 

 

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1to the amount of benefits for which the individual has been
2found ineligible, the individual shall be liable for any
3legally authorized administrative fee assessed by the
4Secretary, with such fee to be added to the amount to be
5withheld by the Secretary.
6(Source: P.A. 97-621, eff. 11-18-11.)
 
7    (820 ILCS 405/901.1 new)
8    Sec. 901.1. Additional penalty. In addition to the
9penalties imposed under Section 901, an individual who, for the
10purposes of obtaining benefits, knowingly makes a false
11statement or knowingly fails to disclose a material fact, and
12thereby obtains any sum as benefits for which he or she is not
13eligible, shall be required to pay a penalty in an amount equal
14to 15% of such sum. All of the provisions of Section 900
15applicable to the recovery of sums described in paragraph 1 of
16subsection A of Section 900 shall apply to penalties imposed
17pursuant to this Section. All penalties collected under this
18Section shall be treated in the same manner as benefits
19recovered from such individual.
 
20    (820 ILCS 405/1300)  (from Ch. 48, par. 540)
21    Sec. 1300. Waiver or transfer of benefit rights - Partial
22exemption.
23    (A) Except as otherwise provided herein any agreement by an
24individual to waive, release or commute his rights under this

 

 

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1Act shall be void.
2    (B) Benefits due under this Act shall not be assigned,
3pledged, encumbered, released or commuted and shall be exempt
4from all claims of creditors and from levy, execution and
5attachment or other remedy for recovery or collection of a
6debt. However, nothing in this Section shall prohibit a
7specified or agreed upon deduction from benefits by an
8individual, or a court or administrative order for withholding
9of income, for payment of past due child support from being
10enforced and collected by the Department of Healthcare and
11Family Services on behalf of persons receiving a grant of
12financial aid under Article IV of the Illinois Public Aid Code,
13persons for whom an application has been made and approved for
14child support enforcement services under Section 10-1 of such
15Code, or persons similarly situated and receiving like services
16in other states. It is provided that:
17        (1) The aforementioned deduction of benefits and order
18    for withholding of income apply only if appropriate
19    arrangements have been made for reimbursement to the
20    Department Director by the Department of Healthcare and
21    Family Services for any administrative costs incurred by
22    the Director under this Section.
23        (2) The Director shall deduct and withhold from
24    benefits payable under this Act, or under any arrangement
25    for the payment of benefits entered into by the Director
26    pursuant to the powers granted under Section 2700 of this

 

 

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1    Act, the amount specified or agreed upon. In the case of a
2    court or administrative order for withholding of income,
3    the Director shall withhold the amount of the order.
4        (3) Any amount deducted and withheld by the Director
5    shall be paid to the Department of Healthcare and Family
6    Services or the State Disbursement Unit established under
7    Section 10-26 of the Illinois Public Aid Code, as directed
8    by the Department of Healthcare and Family Services, on
9    behalf of the individual.
10        (4) Any amount deducted and withheld under subsection
11    (3) shall for all purposes be treated as if it were paid to
12    the individual as benefits and paid by such individual to
13    the Department of Healthcare and Family Services or the
14    State Disbursement Unit in satisfaction of the
15    individual's child support obligations.
16        (5) For the purpose of this Section, child support is
17    defined as those obligations which are being enforced
18    pursuant to a plan described in Title IV, Part D, Section
19    454 of the Social Security Act and approved by the
20    Secretary of Health and Human Services.
21        (6) The deduction of benefits and order for withholding
22    of income for child support shall be governed by Titles III
23    and IV of the Social Security Act and all regulations duly
24    promulgated thereunder.
25    (C) Nothing in this Section prohibits an individual from
26voluntarily electing to have federal income tax deducted and

 

 

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1withheld from his or her unemployment insurance benefit
2payments.
3        (1) The Director shall, at the time that an individual
4    files his or her claim for benefits that establishes his or
5    her benefit year, inform the individual that:
6            (a) unemployment insurance is subject to federal,
7        State, and local income taxes;
8            (b) requirements exist pertaining to estimated tax
9        payments;
10            (c) the individual may elect to have federal income
11        tax deducted and withheld from his or her payments of
12        unemployment insurance in the amount specified in the
13        federal Internal Revenue Code; and
14            (d) the individual is permitted to change a
15        previously elected withholding status.
16        (2) Amounts deducted and withheld from unemployment
17    insurance shall remain in the unemployment fund until
18    transferred to the federal taxing authority as a payment of
19    income tax.
20        (3) The Director shall follow all procedures specified
21    by the United States Department of Labor and the federal
22    Internal Revenue Service pertaining to the deducting and
23    withholding of income tax.
24        (4) Amounts shall be deducted and withheld in
25    accordance with the priorities established in rules
26    promulgated by the Director.

 

 

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1    (D) Nothing in this Section prohibits an individual from
2voluntarily electing to have State of Illinois income tax
3deducted and withheld from his or her unemployment insurance
4benefit payments.
5        (1) The Director shall, at the time that an individual
6    files his or her claim for benefits that establishes his or
7    her benefit year, in addition to providing the notice
8    required under subsection C, inform the individual that:
9            (a) the individual may elect to have State of
10        Illinois income tax deducted and withheld from his or
11        her payments of unemployment insurance; and
12            (b) the individual is permitted to change a
13        previously elected withholding status.
14        (2) Amounts deducted and withheld from unemployment
15    insurance shall remain in the unemployment fund until
16    transferred to the Department of Revenue as a payment of
17    State of Illinois income tax.
18        (3) Amounts shall be deducted and withheld in
19    accordance with the priorities established in rules
20    promulgated by the Director.
21    (E) Nothing in this Section prohibits the deduction and
22withholding of an uncollected overissuance of food stamp
23coupons from unemployment insurance benefits pursuant to this
24subsection (E).
25        (1) At the time that an individual files a claim for
26    benefits that establishes his or her benefit year, that

 

 

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1    individual must disclose whether or not he or she owes an
2    uncollected overissuance (as defined in Section 13(c)(1)
3    of the federal Food Stamp Act of 1977) of food stamp
4    coupons. The Director shall notify the State food stamp
5    agency enforcing such obligation of any individual who
6    discloses that he or she owes an uncollected overissuance
7    of food stamp coupons and who meets the monetary
8    eligibility requirements of subsection E of Section 500.
9        (2) The Director shall deduct and withhold from any
10    unemployment insurance benefits payable to an individual
11    who owes an uncollected overissuance of food stamp coupons:
12            (a) the amount specified by the individual to the
13        Director to be deducted and withheld under this
14        subsection (E);
15            (b) the amount (if any) determined pursuant to an
16        agreement submitted to the State food stamp agency
17        under Section 13(c)(3)(A) of the federal Food Stamp Act
18        of 1977; or
19            (c) any amount otherwise required to be deducted
20        and withheld from unemployment insurance benefits
21        pursuant to Section 13(c)(3)(B) of the federal Food
22        Stamp Act of 1977.
23        (3) Any amount deducted and withheld pursuant to this
24    subsection (E) shall be paid by the Director to the State
25    food stamp agency.
26        (4) Any amount deducted and withheld pursuant to this

 

 

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1    subsection (E) shall for all purposes be treated as if it
2    were paid to the individual as unemployment insurance
3    benefits and paid by the individual to the State food stamp
4    agency as repayment of the individual's uncollected
5    overissuance of food stamp coupons.
6        (5) For purposes of this subsection (E), "unemployment
7    insurance benefits" means any compensation payable under
8    this Act including amounts payable by the Director pursuant
9    to an agreement under any federal law providing for
10    compensation, assistance, or allowances with respect to
11    unemployment.
12        (6) This subsection (E) applies only if arrangements
13    have been made for reimbursement by the State food stamp
14    agency for the administrative costs incurred by the
15    Director under this subsection (E) which are attributable
16    to the repayment of uncollected overissuances of food stamp
17    coupons to the State food stamp agency.
18(Source: P.A. 94-237, eff. 1-1-06; 95-331, eff. 8-21-07.)
 
19    (820 ILCS 405/1401)  (from Ch. 48, par. 551)
20    Sec. 1401. Interest. Any employer who shall fail to pay
21any contributions (including any amounts due pursuant to
22Section 1506.3) when required of him by the provisions of this
23Act and the rules and regulations of the Director, whether or
24not the amount thereof has been determined and assessed by the
25Director, shall pay to the Department Director, in addition to

 

 

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1such contribution, interest thereon at the rate of one percent
2(1%) per month and one-thirtieth (1/30) of one percent (1%) for
3each day or fraction thereof computed from the day upon which
4said contribution became due. After 1981, such interest shall
5accrue at the rate of 2% per month, computed at the rate of
612/365 of 2% for each day or fraction thereof, upon any unpaid
7contributions which become due, provided that, after 1987, for
8the purposes of calculating interest due under this Section
9only, payments received more than 30 days after such
10contributions become due shall be deemed received on the last
11day of the month preceding the month in which they were
12received except that, if the last day of such preceding month
13is less than 30 days after the date that such contributions
14became due, then such payments shall be deemed to have been
15received on the 30th day after the date such contributions
16became due.
17    However, all or part of any interest may be waived by the
18Director for good cause shown.
19(Source: P.A. 93-634, eff. 1-1-04.)
 
20    (820 ILCS 405/1402)  (from Ch. 48, par. 552)
21    Sec. 1402. Penalties.
22    A. If any employer fails, within the time prescribed in
23this Act as amended and in effect on October 5, 1980, and the
24regulations of the Director, to file a report of wages paid to
25each of his workers, or to file a sufficient report of such

 

 

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1wages after having been notified by the Director to do so, for
2any period which begins prior to January 1, 1982, he shall pay
3to the Department Director as a penalty a sum determined in
4accordance with the provisions of this Act as amended and in
5effect on October 5, 1980.
6    B. Except as otherwise provided in this Section, any
7employer who fails to file a report of wages paid to each of
8his workers for any period which begins on or after January 1,
91982, within the time prescribed by the provisions of this Act
10and the regulations of the Director, or, if the Director
11pursuant to such regulations extends the time for filing the
12report, fails to file it within the extended time, shall, in
13addition to any sum otherwise payable by him under the
14provisions of this Act, pay to the Department Director as a
15penalty a sum equal to the lesser of (1) $5 for each $10,000 or
16fraction thereof of the total wages for insured work paid by
17him during the period or (2) $2,500, for each month or part
18thereof of such failure to file the report. With respect to an
19employer who has elected to file reports of wages on an annual
20basis pursuant to Section 1400.2, in assessing penalties for
21the failure to submit all reports by the due date established
22pursuant to that Section, the 30-day period immediately
23following the due date shall be considered as one month.
24    If the Director deems an employer's report of wages paid to
25each of his workers for any period which begins on or after
26January 1, 1982, insufficient, he shall notify the employer to

 

 

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1file a sufficient report. If the employer fails to file such
2sufficient report within 30 days after the mailing of the
3notice to him, he shall, in addition to any sum otherwise
4payable by him under the provisions of this Act, pay to the
5Department Director as a penalty a sum determined in accordance
6with the provisions of the first paragraph of this subsection,
7for each month or part thereof of such failure to file such
8sufficient report after the date of the notice.
9    For wages paid in calendar years prior to 1988, the penalty
10or penalties which accrue under the two foregoing paragraphs
11with respect to a report for any period shall not be less than
12$100, and shall not exceed the lesser of (1) $10 for each
13$10,000 or fraction thereof of the total wages for insured work
14paid during the period or (2) $5,000. For wages paid in
15calendar years after 1987, the penalty or penalties which
16accrue under the 2 foregoing paragraphs with respect to a
17report for any period shall not be less than $50, and shall not
18exceed the lesser of (1) $10 for each $10,000 or fraction of
19the total wages for insured work paid during the period or (2)
20$5,000. With respect to an employer who has elected to file
21reports of wages on an annual basis pursuant to Section 1400.2,
22for purposes of calculating the minimum penalty prescribed by
23this Section for failure to file the reports on a timely basis,
24a calendar year shall constitute a single period. For reports
25of wages paid after 1986, the Director shall not, however,
26impose a penalty pursuant to either of the two foregoing

 

 

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1paragraphs on any employer who can prove within 30 working days
2after the mailing of a notice of his failure to file such a
3report, that (1) the failure to file the report is his first
4such failure during the previous 20 consecutive calendar
5quarters, and (2) the amount of the total contributions due for
6the calendar quarter of such report is less than $500.
7    Any employer who wilfully fails to pay any contribution or
8part thereof, based upon wages paid prior to 1987, when
9required by the provisions of this Act and the regulations of
10the Director, with intent to defraud the Director, shall in
11addition to such contribution or part thereof pay to the
12Department Director a penalty equal to 50 percent of the amount
13of such contribution or part thereof, as the case may be,
14provided that the penalty shall not be less than $200.
15    Any employer who willfully fails to pay any contribution or
16part thereof, based upon wages paid in 1987 and in each
17calendar year thereafter, when required by the provisions of
18this Act and the regulations of the Director, with intent to
19defraud the Director, shall in addition to such contribution or
20part thereof pay to the Department Director a penalty equal to
2160% of the amount of such contribution or part thereof, as the
22case may be, provided that the penalty shall not be less than
23$400.
24    However, all or part of any penalty may be waived by the
25Director for good cause shown.
26(Source: P.A. 94-723, eff. 1-19-06.)
 

 

 

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1    (820 ILCS 405/1501.1)  (from Ch. 48, par. 571.1)
2    Sec. 1501.1. Benefit charges. A. When an individual is paid
3regular benefits with respect to a week in a benefit year which
4begins on or after July 1, 1989, an amount equal to such
5regular benefits, including dependents' allowances, shall
6immediately become benefit charges.
7    B. (Blank). When an individual is paid regular benefits on
8or after July 1, 1989, with respect to a week in a benefit year
9which began prior to July 1, 1989, an amount equal to such
10regular benefits, including dependents' allowances, shall
11immediately become benefit charges.
12    C. When an individual is paid extended benefits with
13respect to any week in his eligibility period beginning in a
14benefit year which begins on or after July 1, 1989, an amount
15equal to one-half of such extended benefits including
16dependents' allowances, shall immediately become benefit
17charges.
18    D. (Blank). When an individual is paid extended benefits on
19or after July 1, 1989, with respect to any week in his
20eligibility period beginning in a benefit year which began
21prior to July 1, 1989, an amount equal to one-half of such
22extended benefits including dependents' allowances, shall
23immediately become benefit charges.
24    E. Notwithstanding the foregoing subsections, the payment
25of benefits shall not become benefit charges if, by reason of

 

 

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1the application of subsection B the third paragraph of Section
2237, he is paid benefits based upon wages other than those paid
3in a base period as defined in subsections A and C the second
4paragraph of Section 237.
5    F. (Blank). Notwithstanding the foregoing subsections, the
6payment of regular or extended benefits on or after July 1,
71989, with respect to a week in a benefit year which began
8prior to July 1, 1989, shall not become benefit charges under
9subsections B and D above where such benefit charges, had they
10been benefit wages under Section 1501, would have been subject
11to transfer under subsection F of Section 1501.
12    G. (Blank). Notwithstanding any other provision of this
13Act, the benefit charges with respect to the payment of regular
14or extended benefits on or after July 1, 1989, with respect to
15a week in a benefit year which began prior to July 1, 1989,
16shall not exceed the difference between the base period wages
17paid with respect to that benefit year and the wages which
18became benefit wages with respect to that same benefit year
19(not including any benefit wages transferred pursuant to
20subsection F of Section 1501), provided that any change after
21September 30, 1989, in either base period wages or wages which
22became benefit wages as a result of benefit payments made prior
23to July 1, 1989 shall not affect such benefit charges.
24    H. For the purposes of this Section and of Section 1504,
25benefits shall be deemed to have been paid on the date such
26payment has been mailed to the individual by the Director or

 

 

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1the date on which the Director initiates an electronic transfer
2of the benefits to the individual's debit card or financial
3institution account.
4(Source: P.A. 85-956.)
 
5    (820 ILCS 405/1505)  (from Ch. 48, par. 575)
6    Sec. 1505. Adjustment of state experience factor. The state
7experience factor shall be adjusted in accordance with the
8following provisions:
9    A. For calendar years prior to 1988, the state experience
10factor shall be adjusted in accordance with the provisions of
11this Act as amended and in effect on November 18, 2011. This
12subsection shall apply to each calendar year prior to 1980 for
13which a state experience factor is being determined.
14    For every $7,000,000 (or fraction thereof) by which the
15amount standing to the credit of this State's account in the
16unemployment trust fund as of June 30 of the calendar year
17immediately preceding the calendar year for which the state
18experience factor is being determined falls below
19$450,000,000, the state experience factor for the succeeding
20calendar year shall be increased 1 percent absolute.
21    For every $7,000,000 (or fraction thereof) by which the
22amount standing to the credit of this State's account in the
23unemployment trust fund as of June 30 of the calendar year
24immediately preceding the calendar year for which the state
25experience factor is being determined exceeds $450,000,000,

 

 

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1the state experience factor for the succeeding year shall be
2reduced 1 percent absolute.
3    B. (Blank). This subsection shall apply to the calendar
4years 1980 through 1987, for which the state experience factor
5is being determined.
6    For every $12,000,000 (or fraction thereof) by which the
7amount standing to the credit of this State's account in the
8unemployment trust fund as of June 30 of the calendar year
9immediately preceding the calendar year for which the state
10experience factor is being determined falls below
11$750,000,000, the state experience factor for the succeeding
12calendar year shall be increased 1 percent absolute.
13    For every $12,000,000 (or fraction thereof) by which the
14amount standing to the credit of this State's account in the
15unemployment trust fund as of June 30 of the calendar year
16immediately preceding the calendar year for which the state
17experience factor is being determined exceeds $750,000,000,
18the state experience factor for the succeeding year shall be
19reduced 1 percent absolute.
20    C. For This subsection shall apply to the calendar year
211988 and each calendar year thereafter, for which the state
22experience factor is being determined.
23        1. For every $50,000,000 (or fraction thereof) by which
24    the adjusted trust fund balance falls below the target
25    balance set forth in this subsection, the state experience
26    factor for the succeeding year shall be increased one

 

 

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1    percent absolute.
2        For every $50,000,000 (or fraction thereof) by which
3    the adjusted trust fund balance exceeds the target balance
4    set forth in this subsection, the state experience factor
5    for the succeeding year shall be decreased by one percent
6    absolute.
7        The target balance in each calendar year prior to 2003
8    is $750,000,000. The target balance in calendar year 2003
9    is $920,000,000. The target balance in calendar year 2004
10    is $960,000,000. The target balance in calendar year 2005
11    and each calendar year thereafter is $1,000,000,000.
12        2. For the purposes of this subsection:
13        "Net trust fund balance" is the amount standing to the
14    credit of this State's account in the unemployment trust
15    fund as of June 30 of the calendar year immediately
16    preceding the year for which a state experience factor is
17    being determined.
18        "Adjusted trust fund balance" is the net trust fund
19    balance minus the sum of the benefit reserves for fund
20    building for July 1, 1987 through June 30 of the year prior
21    to the year for which the state experience factor is being
22    determined. The adjusted trust fund balance shall not be
23    less than zero. If the preceding calculation results in a
24    number which is less than zero, the amount by which it is
25    less than zero shall reduce the sum of the benefit reserves
26    for fund building for subsequent years.

 

 

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1        For the purpose of determining the state experience
2    factor for 1989 and for each calendar year thereafter, the
3    following "benefit reserves for fund building" shall apply
4    for each state experience factor calculation in which that
5    12 month period is applicable:
6            a. For the 12 month period ending on June 30, 1988,
7        the "benefit reserve for fund building" shall be
8        8/104th of the total benefits paid from January 1, 1988
9        through June 30, 1988.
10            b. For the 12 month period ending on June 30, 1989,
11        the "benefit reserve for fund building" shall be the
12        sum of:
13                i. 8/104ths of the total benefits paid from
14            July 1, 1988 through December 31, 1988, plus
15                ii. 4/108ths of the total benefits paid from
16            January 1, 1989 through June 30, 1989.
17            c. For the 12 month period ending on June 30, 1990,
18        the "benefit reserve for fund building" shall be
19        4/108ths of the total benefits paid from July 1, 1989
20        through December 31, 1989.
21            d. For 1992 and for each calendar year thereafter,
22        the "benefit reserve for fund building" for the 12
23        month period ending on June 30, 1991 and for each
24        subsequent 12 month period shall be zero.
25        3. Notwithstanding the preceding provisions of this
26    subsection, for calendar years 1988 through 2003, the state

 

 

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1    experience factor shall not be increased or decreased by
2    more than 15 percent absolute.
3    D. Notwithstanding the provisions of subsection C, the
4adjusted state experience factor:
5        1. Shall be 111 percent for calendar year 1988;
6        2. Shall not be less than 75 percent nor greater than
7    135 percent for calendar years 1989 through 2003; and shall
8    not be less than 75% nor greater than 150% for calendar
9    year 2004 and each calendar year thereafter, not counting
10    any increase pursuant to subsection D-1, D-2, or D-3;
11        3. Shall not be decreased by more than 5 percent
12    absolute for any calendar year, beginning in calendar year
13    1989 and through calendar year 1992, by more than 6%
14    absolute for calendar years 1993 through 1995, by more than
15    10% absolute for calendar years 1999 through 2003 and by
16    more than 12% absolute for calendar year 2004 and each
17    calendar year thereafter, from the adjusted state
18    experience factor of the calendar year preceding the
19    calendar year for which the adjusted state experience
20    factor is being determined;
21        4. Shall not be increased by more than 15% absolute for
22    calendar year 1993, by more than 14% absolute for calendar
23    years 1994 and 1995, by more than 10% absolute for calendar
24    years 1999 through 2003 and by more than 16% absolute for
25    calendar year 2004 and each calendar year thereafter, from
26    the adjusted state experience factor for the calendar year

 

 

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1    preceding the calendar year for which the adjusted state
2    experience factor is being determined;
3        5. Shall be 100% for calendar years 1996, 1997, and
4    1998.
5    D-1. The adjusted state experience factor for each of
6calendar years 2013 through 2015 shall be increased by 5%
7absolute above the adjusted state experience factor as
8calculated without regard to this subsection. The adjusted
9state experience factor for each of calendar years 2016 through
102018 shall be increased by 6% absolute above the adjusted state
11experience factor as calculated without regard to this
12subsection. The increase in the adjusted state experience
13factor for calendar year 2018 pursuant to this subsection shall
14not be counted for purposes of applying paragraph 3 or 4 of
15subsection D to the calculation of the adjusted state
16experience factor for calendar year 2019.
17    D-2. The adjusted state experience factor for calendar year
182016 shall be increased by 19% absolute above the adjusted
19state experience factor as calculated without regard to this
20subsection. The increase in the adjusted state experience
21factor for calendar year 2016 pursuant to this subsection shall
22not be counted for purposes of applying paragraph 3 or 4 of
23subsection D to the calculation of the adjusted state
24experience factor for calendar year 2017.
25    D-3. The adjusted state experience factor for calendar year
262018 shall be increased by 19% absolute above the adjusted

 

 

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1state experience factor as calculated without regard to this
2subsection. The increase in the adjusted state experience
3factor for calendar year 2018 pursuant to this subsection shall
4not be counted for purposes of applying paragraph 3 or 4 of
5subsection D to the calculation of the adjusted state
6experience factor for calendar year 2019.
7    E. The amount standing to the credit of this State's
8account in the unemployment trust fund as of June 30 shall be
9deemed to include as part thereof (a) any amount receivable on
10that date from any Federal governmental agency, or as a payment
11in lieu of contributions under the provisions of Sections 1403
12and 1405 B and paragraph 2 of Section 302C, in reimbursement of
13benefits paid to individuals, and (b) amounts credited by the
14Secretary of the Treasury of the United States to this State's
15account in the unemployment trust fund pursuant to Section 903
16of the Federal Social Security Act, as amended, including any
17such amounts which have been appropriated by the General
18Assembly in accordance with the provisions of Section 2100 B
19for expenses of administration, except any amounts which have
20been obligated on or before that date pursuant to such
21appropriation.
22(Source: P.A. 97-621, eff. 11-18-11.)
 
23    (820 ILCS 405/1506.1)  (from Ch. 48, par. 576.1)
24    Sec. 1506.1. Determination of Employer's Contribution
25Rate.

 

 

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1    A. The contribution rate for any calendar year prior to
21991 1982 of each employer whose contribution rate is
3determined as provided in Sections 1501 through 1507,
4inclusive, who has incurred liability for the payment of
5contributions within each of the three calendar years
6immediately preceding the calendar year for which a rate is
7being determined shall be determined in accordance with the
8provisions of this Act as amended and in effect on November 18,
92011 October 5, 1980.
10    B. (Blank). The contribution rate for calendar years 1982
11and 1983 of each employer who has incurred liability for the
12payment of contributions within each of the three calendar
13years immediately preceding the calendar year for which a rate
14is being determined shall be the product obtained by
15multiplying the employer's benefit wage ratio for that calendar
16year by the adjusted state experience factor for the same year,
17provided that:
18        1. No employer's contribution rate shall be lower than
19    two-tenths of 1 percent or higher than 5.3%; and
20        2. Intermediate contribution rates between such
21    minimum and maximum rates shall be at one-tenth of 1
22    percent intervals.
23        3. If the product obtained as provided in this
24    subsection is not an exact multiple of one-tenth of 1
25    percent, it shall be increased or reduced, as the case may
26    be, to the nearer multiple of one-tenth of 1 percent. If

 

 

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1    such product is equally near to two multiples of one-tenth
2    of 1 percent, it shall be increased to the higher multiple
3    of one-tenth of 1 percent. If such product is less than
4    two-tenths of one percent, it shall be increased to
5    two-tenths of 1 percent, and if greater than 5.3%, it shall
6    be reduced to 5.3%.
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 5.3%.
12    The contribution rate of each employer for whom no wages
13became benefit wages during the applicable period specified in
14Section 1503, and who paid no contributions upon wages for
15insured work during such period on or before the date specified
16in Section 1503, shall be 2.7 percent.
17    Notwithstanding the other provisions of this Section, no
18employer's contribution rate with respect to calendar years
191982 and 1983 shall exceed 2.7 percent of the wages for insured
20work paid by him during any calendar quarter, if such wages
21paid during such calendar quarter total less than $50,000.
22    C. (Blank). The contribution rate for calendar years 1984,
231985 and 1986 of each employer who has incurred liability for
24the payment of contributions within each of the two calendar
25years immediately preceding the calendar year for which a rate
26is being determined shall be the product obtained by

 

 

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1multiplying the employer's benefit wage ratio for that calendar
2year by the adjusted state experience factor for the same year,
3provided that:
4        1. An employer's minimum contribution rate shall be the
5    greater of: .2%; or, the product obtained by multiplying
6    .2% by the adjusted state experience factor for the
7    applicable calendar year.
8        2. An employer's maximum contribution rate shall be the
9    greater of 5.5% or the product of 5.5% and the adjusted
10    State experience factor for the applicable calendar year
11    except that such maximum contribution rate shall not be
12    higher than 6.3% for calendar year 1984, nor be higher than
13    6.6% or lower than 6.4% for calendar year 1985, nor be
14    higher than 6.7% or lower than 6.5% for calendar year 1986.
15        3. If any product obtained in this subsection is not an
16    exact multiple of one-tenth of one percent, it shall be
17    increased or reduced, as the case may be to the nearer
18    multiple of one-tenth of one percent. If such product is
19    equally near to two multiples of one-tenth of one percent,
20    it shall be increased to the higher multiple of one-tenth
21    of one percent.
22        4. Intermediate rates between such minimum and maximum
23    rates shall be at one-tenth of one percent intervals.
24    The contribution rate of each employer for whom wages
25became benefit wages during the applicable period specified in
26Section 1503, but who paid no contributions upon wages for

 

 

HB5632 Engrossed- 48 -LRB097 18216 JLS 65924 b

1insured work during such period on or before the date
2designated in Section 1503, shall be the maximum contribution
3rate as determined by paragraph 2 of this subsection. The
4contribution rate for each employer for whom no wages became
5benefit wages during the applicable period on or before the
6date specified in Section 1503, and who paid no contributions
7upon wages for insured work during such period on or before the
8date specified in Section 1503, shall be the greater of 2.7% or
92.7% times the then current adjusted state experience factor as
10determined by the Director in accordance with the provisions of
11Sections 1504 and 1505.
12    Notwithstanding, the other provisions of this Section, no
13employer's contribution rate with respect to the calendar year
141984 shall exceed 2.7 percent times the then current adjusted
15state experience factor as determined by the Director in
16accordance with the provisions of Sections 1504 and 1505 of the
17wages for insured work paid by him during any calendar quarter,
18if such wages paid during such calendar quarter total less than
19$50,000.
20    D. (Blank). The contribution rate for calendar years 1987,
211988, 1989 and 1990 of each employer who has incurred liability
22for the payment of contributions within each of the three
23calendar years immediately preceding the calendar year for
24which a rate is being determined shall be the product obtained
25by multiplying the employer's benefit wage ratio for that
26calendar year by the adjusted state experience factor for the

 

 

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1same year, provided, that:
2        1. An employer's minimum contribution rate shall be the
3    greater of .2% or the product obtained by multiplying .2%
4    by the adjusted State experience factor for the applicable
5    calendar year.
6        2. An employer's maximum contribution rate shall be the
7    greater of 5.5% or the product of 5.5% and the adjusted
8    State experience factor for the calendar year 1987 except
9    that such maximum contribution rate shall not be higher
10    than 6.7% or lower than 6.5% and an employer's maximum
11    contribution rate for 1988, 1989 and 1990 shall be the
12    greater of 6.4% or the product of 6.4% and the adjusted
13    State experience factor for the applicable calendar year.
14        3. If any product obtained in this subsection is not an
15    exact multiple of one-tenth of one percent, it shall be
16    increased or reduced, as the case may be to the nearer
17    multiple of one-tenth of 1 percent. If such product is
18    equally near to two multiples of one-tenth of 1 percent, it
19    shall be increased to the higher multiple of one-tenth of 1
20    percent.
21        4. Intermediate rates between such minimum and maximum
22    rates shall be at one-tenth of 1 percent intervals.
23    The contribution rate of each employer for whom wages
24became benefit wages during the applicable period specified in
25Section 1503, but who did not report wages for insured work
26during such period, shall be the maximum contribution rate as

 

 

HB5632 Engrossed- 50 -LRB097 18216 JLS 65924 b

1determined by paragraph 2 of this subsection. The contribution
2rate for each employer for whom no wages became benefit wages
3during the applicable period specified in Section 1503, and who
4did not report wages for insured work during such period, shall
5be the greater of 2.7% or 2.7% times the then current adjusted
6State experience factor as determined by the Director in
7accordance with the provisions of Sections 1504 and 1505.
8    E. The contribution rate for calendar year 1991 and each
9calendar year thereafter of each employer who has incurred
10liability for the payment of contributions within each of the
11three calendar years immediately preceding the calendar year
12for which a rate is being determined shall be the product
13obtained by multiplying the employer's benefit ratio defined by
14Section 1503.1 for that calendar year by the adjusted state
15experience factor for the same year, provided that:
16        1. Except as otherwise provided in this paragraph, an
17    employer's minimum contribution rate shall be the greater
18    of 0.2% or the product obtained by multiplying 0.2% by the
19    adjusted state experience factor for the applicable
20    calendar year. An employer's minimum contribution rate
21    shall be 0.1% for calendar year 1996. An employer's minimum
22    contribution rate shall be 0.0% for calendar years 2012
23    through 2019.
24        2. An employer's maximum contribution rate shall be the
25    greater of 6.4% or the product of 6.4% and the adjusted
26    state experience factor for the applicable calendar year.

 

 

HB5632 Engrossed- 51 -LRB097 18216 JLS 65924 b

1        3. If any product obtained in this subsection is not an
2    exact multiple of one-tenth of one percent, it shall be
3    increased or reduced, as the case may be to the nearer
4    multiple of one-tenth of one percent. If such product is
5    equally near to two multiples of one-tenth of one percent,
6    it shall be increased to the higher multiple of one-tenth
7    of one percent.
8        4. Intermediate rates between such minimum and maximum
9    rates shall be at one-tenth of one percent intervals.
10    The contribution rate of each employer for whom wages
11became benefit wages during the applicable period specified in
12Section 1503 or for whom benefit payments became benefit
13charges during the applicable period specified in Section
141503.1, but who did not report wages for insured work during
15such period, shall be the maximum contribution rate as
16determined by paragraph 2 of this subsection. The contribution
17rate for each employer for whom no wages became benefit wages
18during the applicable period specified in Section 1503 or for
19whom no benefit payments became benefit charges during the
20applicable period specified in Section 1503.1, and who did not
21report wages for insured work during such period, shall be the
22greater of 2.7% or 2.7% times the then current adjusted state
23experience factor as determined by the Director in accordance
24with the provisions of Sections 1504 and 1505.
25    F. (Blank). Notwithstanding the other provisions of this
26Section, and pursuant to Section 271 of the Tax Equity and

 

 

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1Fiscal Responsibility Act of 1982, as amended, no employer's
2contribution rate with respect to calendar years 1985, 1986,
31987 and 1988 shall, for any calendar quarter during which the
4wages paid by that employer are less than $50,000, exceed the
5following: with respect to calendar year 1985, 3.7%; with
6respect to calendar year 1986, 4.1%; with respect to calendar
7year 1987, 4.5%; and with respect to calendar year 1988, 5.0%.
8    G. Notwithstanding the other provisions of this Section, no
9employer's contribution rate with respect to calendar year 1989
10and each calendar year thereafter shall exceed 5.4% of the
11wages for insured work paid by him during any calendar quarter,
12if such wages paid during such calendar quarter total less than
13$50,000, plus any applicable penalty contribution rate
14calculated pursuant to subsection C of Section 1507.1.
15(Source: P.A. 97-621, eff. 11-18-11.)
 
16    (820 ILCS 405/1506.3)  (from Ch. 48, par. 576.3)
17    Sec. 1506.3. Fund building rates - Temporary
18Administrative Funding.
19    A. Notwithstanding any other provision of this Act, an
20employer's contribution rate for calendar years prior to 2004
21shall be determined in accordance with the provisions of this
22Act as amended and in effect on November 18, 2011. The the
23following fund building rates shall be in effect for the
24following calendar years:
25    For each employer whose contribution rate for 1988, 1989,

 

 

HB5632 Engrossed- 53 -LRB097 18216 JLS 65924 b

11990, the first, third, and fourth quarters of 1991, 1992,
21993, 1994, 1995, and 1997 through 2003 would, in the absence
3of this Section, be 0.2% or higher, a contribution rate which
4is the sum of such rate and a fund building rate of 0.4%;
5    For each employer whose contribution rate for the second
6quarter of 1991 would, in the absence of this Section, be 0.2%
7or higher, a contribution rate which is the sum of such rate
8and 0.3%;
9    For each employer whose contribution rate for 1996 would,
10in the absence of this Section, be 0.1% or higher, a
11contribution rate which is the sum of such rate and 0.4%;
12    For each employer whose contribution rate for 2004 through
132009 would, in the absence of this Section, be 0.2% or higher,
14a contribution rate which is the sum of such rate and the
15following: a fund building rate of 0.7% for 2004; a fund
16building rate of 0.9% for 2005; a fund building rate of 0.8%
17for 2006 and 2007; a fund building rate of 0.6% for 2008; a
18fund building rate of 0.4% for 2009.
19    Except as otherwise provided in this Section, for each
20employer whose contribution rate for 2010 and any calendar year
21thereafter is determined pursuant to Section 1500 or 1506.1,
22including but not limited to an employer whose contribution
23rate pursuant to Section 1506.1 is 0.0%, a contribution rate
24which is the sum of the rate determined pursuant to Section
251500 or 1506.1 and a fund building rate equal to the sum of the
26rate adjustment applicable to that year pursuant to Section

 

 

HB5632 Engrossed- 54 -LRB097 18216 JLS 65924 b

11400.1, plus the fund building rate in effect pursuant to this
2Section for the immediately preceding calendar year.
3    For calendar year 2012 and any outstanding bond year
4thereafter, for each employer whose contribution rate is
5determined pursuant to Section 1500 or 1506.1, including but
6not limited to an employer whose contribution rate pursuant to
7Section 1506.1 is 0.0%, a contribution rate which is the sum of
8the rate determined pursuant to Section 1500 or 1506.1 and
9.55%. For purposes of this subsection, a calendar year is an
10outstanding bond year if, as of October 31 of the immediately
11preceding calendar year, there are bonds outstanding pursuant
12to the Illinois Unemployment Insurance Trust Fund Financing
13Act.
14    Notwithstanding any provision to the contrary, the fund
15building rate in effect for any calendar year after calendar
16year 2009 shall not be less than 0.4% or greater than 0.55%.
17Notwithstanding any other provision to the contrary, the fund
18building rate established pursuant to this Section shall not
19apply with respect to the first quarter of calendar year 2011.
20The changes made to Section 235 by this amendatory Act of the
2197th General Assembly are intended to offset the loss of
22revenue to the State's account in the unemployment trust fund
23with respect to the first quarter of calendar year 2011 as a
24result of Section 1506.5 and the changes made to this Section
25by this amendatory Act of the 97th General Assembly.
26    Notwithstanding the preceding paragraphs of this Section

 

 

HB5632 Engrossed- 55 -LRB097 18216 JLS 65924 b

1or any other provision of this Act, except for the provisions
2contained in Section 1500 pertaining to rates applicable to
3employers classified under the Standard Industrial Code, or
4another classification system sanctioned by the United States
5Department of Labor and prescribed by the Director by rule, no
6employer whose total wages for insured work paid by him during
7any calendar quarter in 1988 and any calendar year thereafter
8are less than $50,000 shall pay contributions at a rate with
9respect to such quarter which exceeds the following: with
10respect to calendar year 1988, 5%; with respect to 1989 and any
11calendar year thereafter, 5.4%, plus any penalty contribution
12rate calculated pursuant to subsection C of Section 1507.1.
13    Notwithstanding the preceding paragraph of this Section,
14or any other provision of this Act, no employer's contribution
15rate with respect to calendar years 1993 through 1995 shall
16exceed 5.4% if the employer ceased operations at an Illinois
17manufacturing facility in 1991 and remained closed at that
18facility during all of 1992, and the employer in 1993 commits
19to invest at least $5,000,000 for the purpose of resuming
20operations at that facility, and the employer rehires during
211993 at least 250 of the individuals employed by it at that
22facility during the one year period prior to the cessation of
23its operations, provided that, within 30 days after the
24effective date of this amendatory Act of 1993, the employer
25makes application to the Department to have the provisions of
26this paragraph apply to it. The immediately preceding sentence

 

 

HB5632 Engrossed- 56 -LRB097 18216 JLS 65924 b

1shall be null and void with respect to an employer which by
2December 31, 1993 has not satisfied the rehiring requirement
3specified by this paragraph or which by December 31, 1994 has
4not made the investment specified by this paragraph.
5     All payments attributable to the fund building rate
6established pursuant to this Section with respect to the first
7quarter of calendar year 2013 and any calendar quarter
8thereafter as of the close of which there are either bond
9obligations outstanding pursuant to the Illinois Unemployment
10Insurance Trust Fund Financing Act, or bond obligations
11anticipated to be outstanding as of either or both of the 2
12immediately succeeding calendar quarters, shall be directed
13for deposit into the Master Bond Fund. Notwithstanding any
14other provision of this subsection, no fund building rate shall
15be added to any penalty contribution rate assessed pursuant to
16subsection C of Section 1507.1.
17    B. (Blank). Notwithstanding any other provision of this
18Act, for the second quarter of 1991, the contribution rate of
19each employer as determined in accordance with Sections 1500,
201506.1, and subsection A of this Section shall be equal to the
21sum of such rate and 0.1%; provided that this subsection shall
22not apply to any employer whose rate computed under Section
231506.1 for such quarter is between 5.1% and 5.3%, inclusive,
24and who qualifies for the 5.4% rate ceiling imposed by the last
25paragraph of subsection A for such quarter. All payments made
26pursuant to this subsection shall be deposited in the

 

 

HB5632 Engrossed- 57 -LRB097 18216 JLS 65924 b

1Employment Security Administrative Fund established under
2Section 2103.1 and used for the administration of this Act.
3    C. (Blank). Payments received by the Director which are
4insufficient to pay the total contributions due under the Act
5shall be first applied to satisfy the amount due pursuant to
6subsection B.
7    C-1. Payments received by the Department Director with
8respect to the first quarter of calendar year 2013 and any
9calendar quarter thereafter as of the close of which there are
10either bond obligations outstanding pursuant to the Illinois
11Unemployment Insurance Trust Fund Financing Act, or bond
12obligations anticipated to be outstanding as of either or both
13of the 2 immediately succeeding calendar quarters, shall, to
14the extent they are insufficient to pay the total amount due
15under the Act with respect to the quarter, be first applied to
16satisfy the amount due with respect to that quarter and
17attributable to the fund building rate established pursuant to
18this Section. Notwithstanding any other provision to the
19contrary, with respect to an employer whose contribution rate
20with respect to a quarter subject to this subsection would have
21exceeded 5.4% but for the 5.4% rate ceiling imposed pursuant to
22subsection A, the amount due from the employer with respect to
23that quarter and attributable to the fund building rate
24established pursuant to subsection A shall equal the amount, if
25any, by which the amount due and attributable to the 5.4% rate
26exceeds the amount that would have been due and attributable to

 

 

HB5632 Engrossed- 58 -LRB097 18216 JLS 65924 b

1the employer's rate determined pursuant to Sections 1500 and
21506.1, without regard to the fund building rate established
3pursuant to subsection A.
4    D. All provisions of this Act applicable to the collection
5or refund of any contribution due under this Act shall be
6applicable to the collection or refund of amounts due pursuant
7to subsection B and amounts directed pursuant to this Section
8for deposit into the Master Bond Fund to the extent they would
9not otherwise be considered as contributions.
10(Source: P.A. 97-1, eff. 3-31-11; 97-621, eff. 11-18-11.)
 
11    (820 ILCS 405/1506.5)
12    Sec. 1506.5. Surcharge; specified period. With respect to
13the first quarter of calendar year 2011, each employer shall
14pay a surcharge equal to 0.5% of the total wages for insured
15work subject to the payment of contributions under Sections
16234, 235, and 245. The surcharge established by this Section
17shall be due at the same time as contributions with respect to
18the first quarter of calendar year 2011 are due, as provided in
19Section 1400. Notwithstanding any other provision to the
20contrary, with respect to an employer whose contribution rate
21with respect to the first quarter of calendar year 2011,
22calculated without regard to this amendatory Act of the 97th
23General Assembly, would have exceeded 5.4% but for the 5.4%
24rate ceiling imposed pursuant to subsection A of Section
251506.3, the amount due from the employer with respect to that

 

 

HB5632 Engrossed- 59 -LRB097 18216 JLS 65924 b

1quarter and attributable to the surcharge established pursuant
2to this Section shall equal the amount, if any, by which the
3amount due and attributable to the 5.4% rate exceeds the amount
4that would have been due and attributable to the employer's
5rate determined pursuant to Sections 1500 and 1506.1. Payments
6received by the Department Director with respect to the first
7quarter of calendar year 2011 shall, to the extent they are
8insufficient to pay the total amount due under the Act with
9respect to the quarter, be first applied to satisfy the amount
10due with respect to that quarter and attributable to the
11surcharge established pursuant to this Section. All provisions
12of this Act applicable to the collection or refund of any
13contribution due under this Act shall be applicable to the
14collection or refund of amounts due pursuant to this Section.
15Interest shall accrue with respect to amounts due pursuant to
16this Section to the same extent and under the same terms and
17conditions as provided by Section 1401 with respect to
18contributions. The changes made to Section 235 by this
19amendatory Act of the 97th General Assembly are intended to
20offset the loss of revenue to the State's account in the
21unemployment trust fund with respect to the first quarter of
22calendar year 2011 as a result of this Section 1506.5 and the
23changes made to Section 1506.3 by this amendatory Act of the
2497th General Assembly.
25(Source: P.A. 97-1, eff. 3-31-11.)
 

 

 

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1    (820 ILCS 405/1801.1)
2    Sec. 1801.1. Directory of New Hires.
3    A. The Director shall establish and operate an automated
4directory of newly hired employees which shall be known as the
5"Illinois Directory of New Hires" which shall contain the
6information required to be reported by employers to the
7Department under subsection B. In the administration of the
8Directory, the Director shall comply with any requirements
9concerning the Employer New Hire Reporting Program established
10by the federal Personal Responsibility and Work Opportunity
11Reconciliation Act of 1996. The Director is authorized to use
12the information contained in the Directory of New Hires to
13administer any of the provisions of this Act.
14    B. Each employer in Illinois, except a department, agency,
15or instrumentality of the United States, shall file with the
16Department a report in accordance with rules adopted by the
17Department (but in any event not later than 20 days after the
18date the employer hires the employee or, in the case of an
19employer transmitting reports magnetically or electronically,
20by 2 monthly transmissions, if necessary, not less than 12 days
21nor more than 16 days apart) providing the following
22information concerning each newly hired employee: the
23employee's name, address, and social security number, the date
24services for remuneration were first performed by the employee,
25and the employer's name, address, Federal Employer
26Identification Number assigned under Section 6109 of the

 

 

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1Internal Revenue Code of 1986, and such other information as
2may be required by federal law or regulation, provided that
3each employer may voluntarily file the address to which the
4employer wants income withholding orders to be mailed, if it is
5different from the address given on the Federal Employer
6Identification Number. An employer in Illinois which transmits
7its reports electronically or magnetically and which also has
8employees in another state may report all newly hired employees
9to a single designated state in which the employer has
10employees if it has so notified the Secretary of the United
11States Department of Health and Human Services in writing. An
12employer may, at its option, submit information regarding any
13rehired employee in the same manner as information is submitted
14regarding a newly hired employee. Each report required under
15this subsection shall, to the extent practicable, be made on an
16Internal Revenue Service Form W-4 or, at the option of the
17employer, an equivalent form, and may be transmitted by first
18class mail, by telefax, magnetically, or electronically.
19    C. An employer which knowingly fails to comply with the
20reporting requirements established by this Section shall be
21subject to a civil penalty of $15 for each individual whom it
22fails to report. An employer shall be considered to have
23knowingly failed to comply with the reporting requirements
24established by this Section with respect to an individual if
25the employer has been notified by the Department that it has
26failed to report an individual, and it fails, without

 

 

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1reasonable cause, to supply the required information to the
2Department within 21 days after the date of mailing of the
3notice. Any individual who knowingly conspires with the newly
4hired employee to cause the employer to fail to report the
5information required by this Section or who knowingly conspires
6with the newly hired employee to cause the employer to file a
7false or incomplete report shall be guilty of a Class B
8misdemeanor with a fine not to exceed $500 with respect to each
9employee with whom the individual so conspires.
10    D. As used in this Section, "newly hired employee" means an
11individual who (i) is an employee within the meaning of Chapter
1224 of the Internal Revenue Code of 1986, and (ii) either has
13not previously been employed by the employer or was previously
14employed by the employer but has been separated from that prior
15employment for at least 60 consecutive days whose reporting to
16work which results in earnings from the employer is the first
17instance within the preceding 180 days that the individual has
18reported for work for which earnings were received from that
19employer; however, "newly hired employee" does not include an
20employee of a federal or State agency performing intelligence
21or counterintelligence functions, if the head of that agency
22has determined that the filing of the report required by this
23Section with respect to the employee could endanger the safety
24of the employee or compromise an ongoing investigation or
25intelligence mission.
26    Notwithstanding Section 205, and for the purposes of this

 

 

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1Section only, the term "employer" has the meaning given by
2Section 3401(d) of the Internal Revenue Code of 1986 and
3includes any governmental entity and labor organization as
4defined by Section 2(5) of the National Labor Relations Act,
5and includes any entity (also known as a hiring hall) which is
6used by the organization and an employer to carry out the
7requirements described in Section 8(f)(3) of that Act of an
8agreement between the organization and the employer.
9(Source: P.A. 97-621, eff. 11-18-11.)
 
10    (820 ILCS 405/2100)  (from Ch. 48, par. 660)
11    Sec. 2100. Handling of funds - Bond - Accounts.
12    A. All contributions and payments in lieu of contributions
13collected under this Act, including but not limited to fund
14building receipts and receipts attributable to the surcharge
15established pursuant to Section 1506.5, together with any
16interest thereon; all penalties collected pursuant to this Act;
17any property or securities acquired through the use thereof;
18all moneys advanced to this State's account in the unemployment
19trust fund pursuant to the provisions of Title XII of the
20Social Security Act, as amended; all moneys directed for
21transfer from the Master Bond Fund or the Title XII Interest
22Fund to this State's account in the unemployment trust fund;
23all moneys received from the Federal government as
24reimbursements pursuant to Section 204 of the Federal-State
25Extended Unemployment Compensation Act of 1970, as amended; all

 

 

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1moneys credited to this State's account in the unemployment
2trust fund pursuant to Section 903 of the Federal Social
3Security Act, as amended; all administrative fees collected
4from individuals pursuant to Section 900 or from employing
5units pursuant to Section 2206.1; and all earnings of such
6property or securities and any interest earned upon any such
7moneys shall be paid or turned over to the Department and held
8by the Director, as ex-officio custodian of the clearing
9account, the unemployment trust fund account and the benefit
10account, and by the State Treasurer, as ex-officio custodian of
11the special administrative account, separate and apart from all
12public moneys or funds of this State, as hereinafter provided.
13Such moneys shall be administered by the Director exclusively
14for the purposes of this Act.
15    No such moneys shall be paid or expended except upon the
16direction of the Director in accordance with such regulations
17as he shall prescribe pursuant to the provisions of this Act.
18    The State Treasurer shall be liable on his general official
19bond for the faithful performance of his duties in connection
20with the moneys in the special administrative account provided
21for under this Act. Such liability on his official bond shall
22exist in addition to the liability upon any separate bond given
23by him. All sums recovered for losses sustained by the account
24shall be deposited in that account.
25    The Director shall be liable on his general official bond
26for the faithful performance of his duties in connection with

 

 

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1the moneys in the clearing account, the benefit account and
2unemployment trust fund account provided for under this Act.
3Such liability on his official bond shall exist in addition to
4the liability upon any separate bond given by him. All sums
5recovered for losses sustained by any one of the accounts shall
6be deposited in the account that sustained such loss.
7    The Treasurer shall maintain for such moneys a special
8administrative account. The Director shall maintain for such
9moneys 3 separate accounts: a clearing account, a benefit
10account, and an unemployment trust fund account. All moneys
11payable under this Act (except moneys requisitioned from this
12State's account in the unemployment trust fund and deposited in
13the benefit account and moneys directed for deposit into the
14Special Programs Fund provided for under Section 2107),
15including but not limited to moneys directed for transfer from
16the Master Bond Fund or the Title XII Interest Fund to this
17State's account in the unemployment trust fund, upon receipt
18thereof by the Director, shall be immediately deposited in the
19clearing account; provided, however, that, except as is
20otherwise provided in this Section, interest and penalties
21shall not be deemed a part of the clearing account but shall be
22transferred immediately upon clearance thereof to the special
23administrative account; further provided that an amount not to
24exceed $90,000,000 in payments attributable to the surcharge
25established pursuant to Section 1506.5, including any interest
26thereon, shall not be deemed a part of the clearing account but

 

 

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1shall be transferred immediately upon clearance thereof to the
2Title XII Interest Fund.
3    After clearance thereof, all other moneys in the clearing
4account shall be immediately deposited by the Director with the
5Secretary of the Treasury of the United States of America to
6the credit of the account of this State in the unemployment
7trust fund, established and maintained pursuant to the Federal
8Social Security Act, as amended, except fund building receipts,
9which shall be deposited into the Master Bond Fund. The benefit
10account shall consist of all moneys requisitioned from this
11State's account in the unemployment trust fund. The moneys in
12the benefit account shall be expended in accordance with
13regulations prescribed by the Director and solely for the
14payment of benefits, refunds of contributions, interest and
15penalties under the provisions of the Act, the payment of
16health insurance in accordance with Section 410 of this Act,
17and the transfer or payment of funds to any Federal or State
18agency pursuant to reciprocal arrangements entered into by the
19Director under the provisions of Section 2700E, except that
20moneys credited to this State's account in the unemployment
21trust fund pursuant to Section 903 of the Federal Social
22Security Act, as amended, shall be used exclusively as provided
23in subsection B. For purposes of this Section only, to the
24extent allowed by applicable legal requirements, the payment of
25benefits includes but is not limited to the payment of
26principal on any bonds issued pursuant to the Illinois

 

 

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1Unemployment Insurance Trust Fund Financing Act, exclusive of
2any interest or administrative expenses in connection with the
3bonds. The Director shall, from time to time, requisition from
4the unemployment trust fund such amounts, not exceeding the
5amounts standing to the State's account therein, as he deems
6necessary solely for the payment of such benefits, refunds, and
7funds, for a reasonable future period. The Director, as
8ex-officio custodian of the benefit account, which shall be
9kept separate and apart from all other public moneys, shall
10issue payment of such benefits, refunds, health insurance and
11funds solely from the moneys so received into the benefit
12account. However, after January 1, 1987, no payment shall be
13drawn on such benefit account unless at the time of drawing
14there is sufficient money in the account to make the payment.
15The Director shall retain in the clearing account an amount of
16interest and penalties equal to the amount of interest and
17penalties to be refunded from the benefit account. After
18clearance thereof, the amount so retained shall be immediately
19deposited by the Director, as are all other moneys in the
20clearing account, with the Secretary of the Treasury of the
21United States. If, at any time, an insufficient amount of
22interest and penalties is available for retention in the
23clearing account, no refund of interest or penalties shall be
24made from the benefit account until a sufficient amount is
25available for retention and is so retained, or until the State
26Treasurer, upon the direction of the Director, transfers to the

 

 

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1Director a sufficient amount from the special administrative
2account, for immediate deposit in the benefit account.
3    Any balance of moneys requisitioned from the unemployment
4trust fund which remains unclaimed or unpaid in the benefit
5account after the expiration of the period for which such sums
6were requisitioned shall either be deducted from estimates of
7and may be utilized for authorized expenditures during
8succeeding periods, or, in the discretion of the Director,
9shall be redeposited with the Secretary of the Treasury of the
10United States to the credit of the State's account in the
11unemployment trust fund.
12    Moneys in the clearing, benefit and special administrative
13accounts shall not be commingled with other State funds but
14they shall be deposited as required by law and maintained in
15separate accounts on the books of a savings and loan
16association or bank.
17    No bank or savings and loan association shall receive
18public funds as permitted by this Section, unless it has
19complied with the requirements established pursuant to Section
206 of "An Act relating to certain investments of public funds by
21public agencies", approved July 23, 1943, as now or hereafter
22amended.
23    B. Moneys credited to the account of this State in the
24unemployment trust fund by the Secretary of the Treasury of the
25United States pursuant to Section 903 of the Social Security
26Act may be requisitioned from this State's account and used as

 

 

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1authorized by Section 903. Any interest required to be paid on
2advances under Title XII of the Social Security Act shall be
3paid in a timely manner and shall not be paid, directly or
4indirectly, by an equivalent reduction in contributions or
5payments in lieu of contributions from amounts in this State's
6account in the unemployment trust fund. Such moneys may be
7requisitioned and used for the payment of expenses incurred for
8the administration of this Act, but only pursuant to a specific
9appropriation by the General Assembly and only if the expenses
10are incurred and the moneys are requisitioned after the
11enactment of an appropriation law which:
12        1. Specifies the purpose or purposes for which such
13    moneys are appropriated and the amount or amounts
14    appropriated therefor;
15        2. Limits the period within which such moneys may be
16    obligated to a period ending not more than 2 years after
17    the date of the enactment of the appropriation law; and
18        3. Limits the amount which may be obligated during any
19    fiscal year to an amount which does not exceed the amount
20    by which (a) the aggregate of the amounts transferred to
21    the account of this State pursuant to Section 903 of the
22    Social Security Act exceeds (b) the aggregate of the
23    amounts used by this State pursuant to this Act and charged
24    against the amounts transferred to the account of this
25    State.
26    For purposes of paragraph (3) above, amounts obligated for

 

 

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1administrative purposes pursuant to an appropriation shall be
2chargeable against transferred amounts at the exact time the
3obligation is entered into. The appropriation, obligation, and
4expenditure or other disposition of money appropriated under
5this subsection shall be accounted for in accordance with
6standards established by the United States Secretary of Labor.
7    Moneys appropriated as provided herein for the payment of
8expenses of administration shall be requisitioned by the
9Director as needed for the payment of obligations incurred
10under such appropriation. Upon requisition, such moneys shall
11be deposited with the State Treasurer, who shall hold such
12moneys, as ex-officio custodian thereof, in accordance with the
13requirements of Section 2103 and, upon the direction of the
14Director, shall make payments therefrom pursuant to such
15appropriation. Moneys so deposited shall, until expended,
16remain a part of the unemployment trust fund and, if any will
17not be expended, shall be returned promptly to the account of
18this State in the unemployment trust fund.
19    C. The Governor is authorized to apply to the United States
20Secretary of Labor for an advance or advances to this State's
21account in the unemployment trust fund pursuant to the
22conditions set forth in Title XII of the Federal Social
23Security Act, as amended. The amount of any such advance may be
24repaid from this State's account in the unemployment trust
25fund.
26    D. The Director shall annually on or before the first day

 

 

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1of March report in writing to the Employment Security Advisory
2Board concerning the deposits into and expenditures from this
3State's account in the Unemployment Trust Fund.
4(Source: P.A. 97-1, eff. 3-31-11; 97-621, eff. 11-18-11.)
 
5    (820 ILCS 405/2103)  (from Ch. 48, par. 663)
6    Sec. 2103. Unemployment compensation administration and
7other workforce development costs. All moneys received by the
8State or by the Department Director from any source for the
9financing of the cost of administration of this Act, including
10all federal moneys allotted or apportioned to the State or to
11the Department Director for that purpose, including moneys
12received directly or indirectly from the federal government
13under the Job Training Partnership Act, and including moneys
14received from the Railroad Retirement Board as compensation for
15services or facilities supplied to said Board, or any moneys
16made available by this State or its political subdivisions and
17matched by moneys granted to this State pursuant to the
18provisions of the Wagner-Peyser Act, shall be received and held
19by the State Treasurer as ex-officio custodian thereof,
20separate and apart from all other State moneys, in the Title
21III Social Security and Employment Fund, and such funds shall
22be distributed or expended upon the direction of the Director
23and, except money received pursuant to the last paragraph of
24Section 2100B, shall be distributed or expended solely for the
25purposes and in the amounts found necessary by the Secretary of

 

 

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1Labor of the United States of America, or other appropriate
2federal agency, for the proper and efficient administration of
3this Act. Notwithstanding any provision of this Section, all
4money requisitioned and deposited with the State Treasurer
5pursuant to the last paragraph of Section 2100B shall remain
6part of the unemployment trust fund and shall be used only in
7accordance with the conditions specified in the last paragraph
8of Section 2100B.
9    If any moneys received from the Secretary of Labor, or
10other appropriate federal agency, under Title III of the Social
11Security Act, or any moneys granted to this State pursuant to
12the provisions of the Wagner-Peyser Act, or any moneys made
13available by this State or its political subdivisions and
14matched by moneys granted to this State pursuant to the
15provisions of the Wagner-Peyser Act, are found by the Secretary
16of Labor, or other appropriate Federal agency, because of any
17action or contingency, to have been lost or expended for
18purposes other than, or in amounts in excess of, those found
19necessary, by the Secretary of Labor, or other appropriate
20Federal agency, for the proper administration of this Act, it
21is the policy of this State that such moneys shall be replaced
22by moneys appropriated for such purpose from the general funds
23of this State for expenditure as provided in the first
24paragraph of this Section. The Director shall report to the
25Governor's Office of Management and Budget, in the same manner
26as is provided generally for the submission by State

 

 

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1Departments of financial requirements for the ensuing fiscal
2year, and the Governor shall include in his budget report to
3the next regular session of the General Assembly, the amount
4required for such replacement.
5    Moneys in the Title III Social Security and Employment Fund
6shall not be commingled with other State funds, but they shall
7be deposited as required by law and maintained in a separate
8account on the books of a savings and loan association or bank.
9    The State Treasurer shall be liable on his general official
10bond for the faithful performance of his duties as custodian of
11all moneys in the Title III Social Security and Employment
12Fund. Such liability on his official bond shall exist in
13addition to the liability upon any separate bond given by him.
14All sums recovered for losses sustained by the fund herein
15described shall be deposited therein.
16    Upon the effective date of this amendatory Act of 1987
17(January 1, 1988), the Comptroller shall transfer all
18unobligated funds from the Job Training Fund into the Title III
19Social Security and Employment Fund.
20    On September 1, 2000, or as soon thereafter as may be
21reasonably practicable, the State Comptroller shall transfer
22all unobligated moneys from the Job Training Partnership Fund
23into the Title III Social Security and Employment Fund. The
24moneys transferred pursuant to this amendatory Act may be used
25or expended for purposes consistent with the conditions under
26which those moneys were received by the State.

 

 

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1    Beginning on the effective date of this amendatory Act of
2the 91st General Assembly, all moneys that would otherwise be
3deposited into the Job Training Partnership Fund shall instead
4be deposited into the Title III Social Security and Employment
5Fund, to be used for purposes consistent with the conditions
6under which those moneys are received by the State, except that
7any moneys that may be necessary to pay liabilities outstanding
8as of June 30, 2000 shall be deposited into the Job Training
9Partnership Fund.
10(Source: P.A. 94-793, eff. 5-19-06.)
 
11    (820 ILCS 405/1503 rep.)
12    Section 25. The Unemployment Insurance Act is amended by
13repealing Section 1503.
 
14    Section 99. Effective date. This Act takes effect January
151, 2013.