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1    AN ACT concerning State government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the
5Illinois State Training and Employment Program (I-STEP) Act.
6    Section 5. Definitions. In this Act:
7    "Agreement" means a written agreement between the
8Department of Commerce and Economic Opportunity or the
9Department of Employment Security and an employer or a business
10association, labor organization, local workforce investment
11board, community college, or nonprofit corporation concerning
12a project and any amendments to that agreement.
13    "Base employment" means the highest number of workers
14employed by the employer in the last 4 completed quarters
15preceding the effective date of the agreement establishing the
16project. The Department of Employment Security shall verify an
17employer's base employment through means including, but not
18limited to, wage reports submitted pursuant to the Unemployment
19Insurance Act.
20    "Business association" means an organization formed under
21Section 501(c)(6) of the Internal Revenue Code or a generally
22recognized entity or organization that represents the
23interests of multiple businesses in Illinois.



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1    "Community college" means a community college as defined in
2Section 1-2 of the Public Community College Act.
3    "Credit" or "I-STEP Credit" means an amount agreed to in an
4agreement with an employer under this Act that does not exceed
5the Incremental Income Tax attributable to the employer's
7    "Employer" means a for-profit, legal entity, including,
8but not limited to, a sole proprietorship, partnership,
9corporation, joint venture, association, or cooperative, that
10has in its employ one or more individuals performing services
11for it.
12    "Federal minimum wage" means the minimum wage as defined by
13the federal Fair Labor Standards Act (29 U.S.C. 201 et seq.).
14    "Full-time, permanent job" means a job in which the
15employee works for the employer at a rate of at least 35 hours
16per week.
17    "I-STEP Fund" means the fund established in Section 20 of
18this Act.
19    "Incremental income tax" means the total amount withheld
20during the taxable year under Article 7 of the Illinois Income
21Tax Act from the compensation paid to employees in new jobs
22that are the subject of an agreement.
23    "Labor organization" means an organization defined as a
24"labor organization" under the National Labor Relations Act.
25    "New job" means a full-time, permanent job located in this
26State that meets all of the following:



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1        (1) The job results in a net increase in the base
2    employment in this State for the employer.
3        (2) The job is not being filled or refilled as a result
4    of a layoff or to replace an employee who is or has been on
5    strike or locked out by the employer.
6        (3) The job is not a job that existed in the employer's
7    business within this State within the last 4 completed
8    quarters preceding the effective date of the agreement.
9        (4) The wage paid for the job is equal to or exceeds
10    175% of the federal minimum wage on the effective date of
11    the agreement.
12        (5) The employer has posted the job on the
13 System or its successor system for at
14    least 2 weeks preceding the effective date of the agreement
15    and did not locate an individual who has the requisite
16    expertise, experience, and background, except that this
17    requirement does not apply if either (i) the job would be
18    covered by a collective bargaining agreement between the
19    employer and a labor organization that includes provisions
20    concerning hiring or training or (ii) the employer does not
21    have employees performing services in this State as of the
22    effective date of the agreement.
23    A new job may not be filled by a child, grandchild, parent,
24or spouse, other than a spouse who is legally separated from
25the individual, of any individual who has a direct or indirect
26ownership interest of at least 5% in the profits, capital, or



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1value of the employer.
2    "Program costs" means all necessary and incidental costs of
3providing program services in connection with a project,
4including administrative costs.
5    "Program services" includes, but is not limited to, any of
6the following items needed to hire or train a worker for a new
8        (1) Training or retraining including, but not limited
9    to, training or retraining provided by apprenticeship and
10    training programs approved by and registered with the
11    United States Department of Labor's Bureau of
12    Apprenticeship and Training.
13        (2) Adult basic education and job-related instruction.
14        (3) Developmental, readiness, and remedial education.
15        (4) Vocational and skill-assessment services and
16    testing.
17        (5) Training facilities, equipment, materials, and
18    supplies.
19    "Project" means an arrangement for program services that
20are the subject of an agreement entered into under this Act.
21    Section 10. Agreement.
22    (a) The Director of Commerce and Economic Opportunity and
23the Director of Employment Security shall each have the power
24to enter into an agreement to establish a project with an
25employer. The agreement may be directly with an employer or



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1with a business association, labor organization, local
2workforce investment board, community college, or nonprofit
3corporation acting on behalf of an employer. The Directors of
4Commerce and Economic Opportunity and Employment Security may
5consult with the I-STEP Panel before entering into an
7    (b) An agreement shall, at a minimum:
8        (1) State the project's total program costs.
9        (2) State that the employer may use the I-STEP Credit
10    pursuant to Section 15 to reimburse up to 75% of the
11    project's total program costs. If the Department of
12    Employment Security or the Department of Commerce and
13    Economic Opportunity determines that the project will
14    reduce long-term unemployment in the State, the agreement
15    shall state that the employer may use the I-STEP Credit to
16    reimburse up to 100% of the project's total program costs.
17        (3) Describe the program services to be provided.
18        (4) Specify the number of new jobs covered by the
19    project.
20        (5) Include a certification by the employer that it
21    shall (i) offer to assume the collective bargaining
22    obligations of a prior employer, including any existing
23    collective bargaining agreement with the bargaining
24    representative of any existing collective bargaining unit
25    or units performing substantially similar work to the work
26    being performed by any employee in a new job and (ii) offer



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1    employment to all employees currently employed in any
2    existing bargaining unit performing substantially similar
3    work to the work being performed by any employee in a new
4    job.
5        (6) Include a provision that fixes the maximum amount
6    of I-STEP Credit for the reimbursement of program costs for
7    each taxable year.
8        (7) Specify the duration of the I-STEP Credit and the
9    first taxable year for which the Credit may be claimed.
10        (8) Require that an employer shall at all times keep
11    proper books of record and account, in accordance with
12    generally accepted accounting principles consistently
13    applied, with the books, records, or papers related to the
14    agreement in the custody or control of the employer open
15    for reasonable inspection and audits by the Department of
16    Commerce and Economic Opportunity and Department of
17    Employment Security and including, without limitation, the
18    making of copies of the books, records, or papers and the
19    inspection or appraisal of any of the employer or project
20    assets related to the project.
21        (9) Indicate the amount of administrative costs that
22    the employer will be required to deposit into the I-STEP
23    Fund.
24        (10) Contain other provisions the Department of
25    Commerce and Economic Opportunity and Department of
26    Employment Security consider appropriate or necessary.



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1    (c) The administrative costs of the Department of Commerce
2and Economic Opportunity with respect to each project shall not
3exceed 5% of the program costs. The Department of Employment
4Security's administrative costs with respect to each project
5shall not exceed 5% of the program costs. In the case of an
6agreement between the Department of Commerce and Economic
7Opportunity or the Department of Employment Security and a
8business association, labor organization, local workforce
9investment board, community college, or nonprofit corporation
10acting on behalf of an employer, the administrative costs of
11the business association, labor organization, local workforce
12investment board, community college, or nonprofit corporation
13shall not exceed 5% of the program costs and shall be in
14addition to the program costs of the Department of Commerce and
15Economic Opportunity and the Department of Employment
17    (d) The Department of Commerce and Economic Opportunity and
18the Department of Employment Security shall annually report to
19the General Assembly, no later than December 31, on the new
20jobs created and amount of credits for which employers have
21been certified as eligible pursuant to this Act.
22    (e) A summary of each agreement shall be posted on the
23website maintained pursuant to the Corporate Accountability
24for Tax Expenditures Act.
25    Section 15. I-STEP Credit.



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1    (a) Subject to the conditions set forth in this Act, for
2any taxable year ending on or after December 31, 2014, an
3employer is entitled to a credit against its obligation to pay
4over withholding under Section 704A of the Illinois Income Tax
5Act, if the employer is awarded a Credit under this Act for
6that taxable year.
7    (b) The duration of the credit may not exceed 10 taxable
8years. The credit may be stated as a percentage of the
9incremental income tax attributable to the employer's project
10and shall include a fixed dollar limitation that shall not
11exceed the amount calculated pursuant to paragraph (2) of
12subsection (b) of Section 10.
13    (c) An employer claiming a credit under this Act shall
14submit to the Department of Revenue a copy of the certificate
15of verification under this Act for the taxable year. However,
16failure to submit a copy of the certificate with the employer's
17tax return shall not invalidate a claim for a credit.
18    (d) For an employer to be eligible for a certificate of
19verification, the employer shall provide proof as required by
20the Department of Commerce and Economic Opportunity or the
21Department of Employment Security prior to the end of each
22calendar year including, but not limited to, attestation by the
24        (1) regarding the number of new jobs specified in its
25    agreement and into which it has hired employees;
26        (2) that employees received the program services



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1    specified in the agreement; and
2        (3) regarding the amount of program costs incurred by
3    the employer with respect to those new jobs.
4    (e) For a certificate of verification to be valid, it shall
5be signed by the Director of Commerce and Economic Opportunity
6or the Director of Employment Security.
7    Section 20. I-STEP Fund.
8    (a) There is established in the State treasury a special
9fund to be known as the I-STEP Fund.
10    (b) Money received, earned, or collected pursuant to this
11Act shall be credited to the I-STEP Fund. All interest earnings
12on amounts within the I-STEP Fund shall accrue to the I-STEP
13Fund. The I-STEP Fund may include such funds and accounts as
14are necessary for the implementation and administration of this
15Act. All sums recovered for losses sustained by the I-STEP Fund
16shall be deposited into the I-STEP Fund.
17    (c) Moneys may be paid or expended from the I-STEP Fund for
18the payment of administrative costs associated with projects
19established pursuant to this Act.
20    (d) Any payments or expenditures from the I-STEP Fund,
21other than administrative costs associated with projects
22established pursuant to this Act, shall require the approval of
23both the Director of Employment Security and the Director of
24Commerce and Economic Opportunity.



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1    Section 25. I-STEP Panel.
2    (a) There is created the I-STEP Panel. The I-STEP Panel
3shall consist of the Director of Commerce and Economic
4Opportunity and the Director of Employment Security, who shall
5serve as co-chairpersons, and 11 members who shall be appointed
6by the Governor with the advice and consent of the Senate.
7    (b) The members of the I-STEP Panel shall include a
8representative from each of the following businesses and
9groups: manufacturing, small business, a local or State
10business association or chamber of commerce, building and
11construction trades unions, a labor organization representing
12workers engaged in manufacturing, a labor organization
13representing workers engaged in service professions, a
14not-for-profit corporation providing workforce training, a
15community college, and a local workforce investment board.
16There shall be 2 at-large voting members who reside within
17counties or municipalities that have had an annual average
18unemployment rate of at least 120% of the State's annual
19average unemployment rate as reported by Department of
20Employment Security for the 5 years preceding the date of
21appointment. All appointments shall be made in a geographically
22diverse manner.
23    (c) For the initial appointments to the I-STEP Panel, 5
24members shall be appointed to serve a 2-year term and 6 members
25shall be appointed to serve a 4-year term. Thereafter, all
26appointments shall be for terms of 4 years. The initial term of



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1appointed members shall commence on July 1, 2014. Thereafter,
2the terms of appointed members shall commence on July 1, except
3in the case of an appointment to fill a vacancy. Vacancies
4occurring among the members shall be filled in the same manner
5as the original appointment for the remainder of the unexpired
6term. For a vacancy occurring when the Senate is not in
7session, the Governor may make a temporary appointment until
8the next meeting of the Senate when a person shall be nominated
9to fill the office, and, upon confirmation by the Senate, he or
10she shall hold office during the remainder of the term. A
11vacancy in membership does not impair the ability of a quorum
12to exercise all rights and perform all duties of the I-STEP
13Panel. A member is eligible for reappointment.
14    (d) The I-STEP Panel shall advise the Department of
15Commerce and Economic Opportunity and Department of Employment
16Security on the implementation and administration of this Act.
17    (e) Members of the I-STEP Panel shall serve without
18compensation, but shall be reimbursed for any necessary
19expenses from funds appropriated for that purpose.
20    Section 30. Powers of the Departments. In addition to those
21powers granted under the Civil Administrative Code of Illinois,
22the Department of Commerce and Economic Opportunity and the
23Department of Employment Security are granted and shall have
24all the powers necessary or convenient to carry out and
25effectuate the purposes and provisions of this Act. These



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1powers shall include, but are not limited to, power and
2authority to:
3        (1) Jointly promulgate procedures or rules necessary
4    and appropriate for the administration of this Act,
5    establish forms for applications, notifications,
6    contracts, or any other agreements, and accept
7    applications at any time during the year.
8        (2) Establish, negotiate, and effectuate any term,
9    agreement, or other document with any person necessary or
10    appropriate to accomplish the purposes of this Act, and to
11    consent, subject to the provisions of any agreement with
12    another party, to the modification or restructuring of any
13    agreement made pursuant to this Act to which the Department
14    of Commerce and Economic Opportunity or the Department of
15    Employment Security is a party.
16        (3) Fix, determine, charge, and collect any premiums,
17    fees, charges, costs, and expenses from employers,
18    including, without limitation, application fees,
19    commitment fees, program fees, financing charges, or
20    publication fees, deemed appropriate to pay expenses
21    necessary or incident to the (i) administration, staffing,
22    or operation in connection with the Department of Commerce
23    and Economic Opportunity's or the Department of Employment
24    Security's activities under this Act, (ii) preparation,
25    implementation, and enforcement of the terms of the
26    agreement, or (iii) consultation, advisory and legal fees



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1    and other costs; however, all fees and expenses incident
2    thereto shall be the responsibility of the employer.
3        (4) Provide for sufficient personnel to permit
4    administration, staffing, operation, and related support
5    required to adequately discharge its duties and
6    responsibilities described in this Act from funds made
7    available for that purpose.
8        (5) Gather information and conduct inquiries, in the
9    manner and by methods as deemed desirable including,
10    without limitation, gathering information with respect to
11    employers for the purpose of making any designations or
12    certifications necessary or desirable or to gather
13    information to assist the I-STEP Panel with any
14    recommendation or guidance in the furtherance of the
15    purposes of this Act.
16    Section 85. The State Finance Act is amended by adding
17Section 5.855 as follows:
18    (30 ILCS 105/5.855 new)
19    Sec. 5.855. The I-STEP Fund.
20    Section 90. The Unemployment Insurance Act is amended by
21changing Sections 500 and 2101 as follows:
22    (820 ILCS 405/500)  (from Ch. 48, par. 420)



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1    Sec. 500. Eligibility for benefits. An unemployed
2individual shall be eligible to receive benefits with respect
3to any week only if the Director finds that:
4    A. He has registered for work at and thereafter has
5continued to report at an employment office in accordance with
6such regulations as the Director may prescribe, except that the
7Director may, by regulation, waive or alter either or both of
8the requirements of this subsection as to individuals attached
9to regular jobs, and as to such other types of cases or
10situations with respect to which he finds that compliance with
11such requirements would be oppressive or inconsistent with the
12purposes of this Act, provided that no such regulation shall
13conflict with Section 400 of this Act.
14    B. He has made a claim for benefits with respect to such
15week in accordance with such regulations as the Director may
17    C. He is able to work, and is available for work; provided
18that during the period in question he was actively seeking work
19and he has certified such. Whenever requested to do so by the
20Director, the individual shall, in the manner the Director
21prescribes by regulation, inform the Department of the places
22at which he has sought work during the period in question.
23Nothing in this subsection shall limit the Director's approval
24of alternate methods of demonstrating an active search for work
25based on regular reporting to a trade union office.
26        1. If an otherwise eligible individual is unable to



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1    work or is unavailable for work on any normal workday of
2    the week, he shall be eligible to receive benefits with
3    respect to such week reduced by one-fifth of his weekly
4    benefit amount for each day of such inability to work or
5    unavailability for work. For the purposes of this
6    paragraph, an individual who reports on a day subsequent to
7    his designated report day shall be deemed unavailable for
8    work on his report day if his failure to report on that day
9    is without good cause, and on each intervening day, if any,
10    on which his failure to report is without good cause. As
11    used in the preceding sentence, "report day" means the day
12    which has been designated for the individual to report to
13    file his claim for benefits with respect to any week. This
14    paragraph shall not be construed so as to effect any change
15    in the status of part-time workers as defined in Section
16    407.
17        2. An individual shall be considered to be unavailable
18    for work on days listed as whole holidays in "An Act to
19    revise the law in relation to promissory notes, bonds, due
20    bills and other instruments in writing," approved March 18,
21    1874, as amended; on days which are holidays in his
22    religion or faith, and on days which are holidays according
23    to the custom of his trade or occupation, if his failure to
24    work on such day is a result of the holiday. In determining
25    the claimant's eligibility for benefits and the amount to
26    be paid him, with respect to the week in which such holiday



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1    occurs, he shall have attributed to him as additional
2    earnings for that week an amount equal to one-fifth of his
3    weekly benefit amount for each normal work day on which he
4    does not work because of a holiday of the type above
5    enumerated.
6        3. An individual shall be deemed unavailable for work
7    if, after his separation from his most recent employing
8    unit, he has removed himself to and remains in a locality
9    where opportunities for work are substantially less
10    favorable than those in the locality he has left.
11        4. An individual shall be deemed unavailable for work
12    with respect to any week which occurs in a period when his
13    principal occupation is that of a student in attendance at,
14    or on vacation from, a public or private school.
15        5. Notwithstanding any other provisions of this Act, an
16    individual shall not be deemed unavailable for work or to
17    have failed actively to seek work, nor shall he be
18    ineligible for benefits by reason of the application of the
19    provisions of Section 603, with respect to any week,
20    because he is enrolled in and is in regular attendance at a
21    training course approved for him by the Director:
22            (a) but only if, with respect to that week, the
23        individual presents, upon request, to the claims
24        adjudicator referred to in Section 702 a statement
25        executed by a responsible person connected with the
26        training course, certifying that the individual was in



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1        full-time attendance at such course during the week.
2        The Director may approve such course for an individual
3        only if he finds that (1) reasonable work opportunities
4        for which the individual is fitted by training and
5        experience do not exist in his locality; (2) the
6        training course relates to an occupation or skill for
7        which there are, or are expected to be in the immediate
8        future, reasonable work opportunities in his locality;
9        (3) the training course is offered by a competent and
10        reliable agency, educational institution, or employing
11        unit; (4) the individual has the required
12        qualifications and aptitudes to complete the course
13        successfully; and (5) the individual is not receiving
14        and is not eligible (other than because he has claimed
15        benefits under this Act) for subsistence payments or
16        similar assistance under any public or private
17        retraining program: Provided, that the Director shall
18        not disapprove such course solely by reason of clause
19        (5) if the subsistence payment or similar assistance is
20        subject to reduction by an amount equal to any benefits
21        payable to the individual under this Act in the absence
22        of the clause. In the event that an individual's weekly
23        unemployment compensation benefit is less than his
24        certified training allowance, that person shall be
25        eligible to receive his entire unemployment
26        compensation benefits, plus such supplemental training



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1        allowances that would make an applicant's total weekly
2        benefit identical to the original certified training
3        allowance.
4            (b) The Director shall have the authority to grant
5        approval pursuant to subparagraph (a) above prior to an
6        individual's formal admission into a training course.
7        Requests for approval shall not be made more than 30
8        days prior to the actual starting date of such course.
9        Requests shall be made at the appropriate unemployment
10        office.
11            (c) The Director shall for purposes of paragraph C
12        have the authority to issue a blanket approval of
13        training programs implemented pursuant to the federal
14        Workforce Investment Act of 1998 if both the training
15        program and the criteria for an individual's
16        participation in such training meet the requirements
17        of this paragraph C.
18            (d) Notwithstanding the requirements of
19        subparagraph (a), the Director shall have the
20        authority to issue blanket approval of training
21        programs implemented under the terms of a collective
22        bargaining agreement.
23            (e) Notwithstanding any other provision of this
24        Act, program services implemented under the Illinois
25        State Training and Employment Program (I-STEP) Act
26        shall constitute training approved pursuant to this



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1        paragraph C.
2        6. Notwithstanding any other provisions of this Act, an
3    individual shall not be deemed unavailable for work or to
4    have failed actively to seek work, nor shall he be
5    ineligible for benefits, by reason of the application of
6    the provisions of Section 603 with respect to any week
7    because he is in training approved under Section 236 (a)(1)
8    of the federal Trade Act of 1974, nor shall an individual
9    be ineligible for benefits under the provisions of Section
10    601 by reason of leaving work voluntarily to enter such
11    training if the work left is not of a substantially equal
12    or higher skill level than the individual's past adversely
13    affected employment as defined under the federal Trade Act
14    of 1974 and the wages for such work are less than 80% of
15    his average weekly wage as determined under the federal
16    Trade Act of 1974.
17    D. If his benefit year begins prior to July 6, 1975 or
18subsequent to January 2, 1982, he has been unemployed for a
19waiting period of 1 week during such benefit year. If his
20benefit year begins on or after July 6, l975, but prior to
21January 3, 1982, and his unemployment continues for more than
22three weeks during such benefit year, he shall be eligible for
23benefits with respect to each week of such unemployment,
24including the first week thereof. An individual shall be deemed
25to be unemployed within the meaning of this subsection while
26receiving public assistance as remuneration for services



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1performed on work projects financed from funds made available
2to governmental agencies for such purpose. No week shall be
3counted as a week of unemployment for the purposes of this
5        1. Unless it occurs within the benefit year which
6    includes the week with respect to which he claims payment
7    of benefits, provided that, for benefit years beginning
8    prior to January 3, 1982, this requirement shall not
9    interrupt the payment of benefits for consecutive weeks of
10    unemployment; and provided further that the week
11    immediately preceding a benefit year, if part of one
12    uninterrupted period of unemployment which continues into
13    such benefit year, shall be deemed (for the purpose of this
14    subsection only and with respect to benefit years beginning
15    prior to January 3, 1982, only) to be within such benefit
16    year, as well as within the preceding benefit year, if the
17    unemployed individual would, except for the provisions of
18    the first paragraph and paragraph 1 of this subsection and
19    of Section 605, be eligible for and entitled to benefits
20    for such week.
21        2. If benefits have been paid with respect thereto.
22        3. Unless the individual was eligible for benefits with
23    respect thereto except for the requirements of this
24    subsection and of Section 605.
25    E. With respect to any benefit year beginning prior to
26January 3, 1982, he has been paid during his base period wages



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1for insured work not less than the amount specified in Section
2500E of this Act as amended and in effect on October 5, 1980.
3With respect to any benefit year beginning on or after January
43, 1982, he has been paid during his base period wages for
5insured work equal to not less than $1,600, provided that he
6has been paid wages for insured work equal to at least $440
7during that part of his base period which does not include the
8calendar quarter in which the wages paid to him were highest.
9    F. During that week he has participated in reemployment
10services to which he has been referred, including but not
11limited to job search assistance services, pursuant to a
12profiling system established by the Director by rule in
13conformity with Section 303(j)(1) of the federal Social
14Security Act, unless the Director determines that:
15        1. the individual has completed such services; or
16        2. there is justifiable cause for the claimant's
17    failure to participate in such services.
18    This subsection F is added by this amendatory Act of 1995
19to clarify authority already provided under subsections A and C
20in connection with the unemployment insurance claimant
21profiling system required under subsections (a)(10) and (j)(1)
22of Section 303 of the federal Social Security Act as a
23condition of federal funding for the administration of the
24Unemployment Insurance Act.
25(Source: P.A. 92-396, eff. 1-1-02.)



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1    (820 ILCS 405/2101)  (from Ch. 48, par. 661)
2    Sec. 2101. Special administrative account. Except as
3provided in Section 2100, all interest and penalties collected
4pursuant to this Act shall be deposited in the special
5administrative account. The amount in this account in excess of
6$100,000 on the close of business of the last day of each
7calendar quarter shall be immediately transferred to this
8State's account in the unemployment trust fund. However,
9subject to Section 2101.1, such funds shall not be transferred
10where it is determined by the Director that it is necessary to
11accumulate funds in the account in order to have sufficient
12funds to pay interest that may become due under the terms of
13Section 1202 (b) of the Federal Social Security Act, as
14amended, upon advances made to the Illinois Unemployment
15Insurance Trust Fund under Title XII of the Federal Social
16Security Act or where it is determined by the Director that it
17is necessary to accumulate funds in the special administrative
18account in order to have sufficient funds to expend for any
19other purpose authorized by this Section. The moneys available
20in the special administrative account shall be expended upon
21the direction of the Director whenever it appears to him that
22such expenditure is necessary for:
23    A. 1. The proper administration of this Act and no Federal
24funds are available for the specific purpose for which such
25expenditure is to be made, provided the moneys are not
26substituted for appropriations from Federal funds, which in the



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1absence of such moneys would be available and provided the
2monies are appropriated by the General Assembly.
3    2. The proper administration of this Act for which purpose
4appropriations from Federal funds have been requested but not
5yet received, provided the special administrative account will
6be reimbursed upon receipt of the requested Federal
8    B. To the extent possible, the repayment to the fund
9established for financing the cost of administration of this
10Act of moneys found by the Secretary of Labor of the United
11States of America, or other appropriate Federal agency, to have
12been lost or expended for purposes other than, or in amounts in
13excess of, those found necessary by the Secretary of Labor, or
14other appropriate Federal agency, for the administration of
15this Act.
16    C. The payment of refunds or adjustments of interest or
17penalties, paid pursuant to Sections 901 or 2201.
18    D. The payment of interest on refunds of erroneously paid
19contributions, penalties and interest pursuant to Section
21    E. The payment or transfer of interest or penalties to any
22Federal or State agency, pursuant to reciprocal arrangements
23entered into by the Director under the provisions of Section
25    F. The payment of any costs incurred, pursuant to Section



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1    G. Beginning January 1, 1989, for the payment for the legal
2services authorized by subsection B of Section 802, up to
3$1,000,000 per year for the representation of the individual
4claimants and up to $1,000,000 per year for the representation
5of "small employers".
6    H. The payment of any fees for collecting past due
7contributions, payments in lieu of contributions, penalties,
8and interest shall be paid (without an appropriation) from
9interest and penalty monies received from collection agents
10that have contracted with the Department under Section 2206 to
11collect such amounts, provided however, that the amount of such
12payment shall not exceed the amount of past due interest and
13penalty collected.
14    I. The payment of interest that may become due under the
15terms of Section 1202 (b) of the Federal Social Security Act,
16as amended, for advances made to the Illinois Unemployment
17Insurance Trust Fund.
18    J. Expenses incurred by the Department in the
19administration of the Illinois State Training and Employment
20Program (I-STEP) Act.
21    The Director shall annually on or before the first day of
22March report in writing to the Employment Security Advisory
23Board concerning the expenditures made from the special
24administrative account and the purposes for which funds are
25being accumulated.
26    If Federal legislation is enacted which will permit the use



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1by the Director of some part of the contributions collected or
2to be collected under this Act, for the financing of
3expenditures incurred in the proper administration of this Act,
4then, upon the availability of such contributions for such
5purpose, the provisions of this Section shall be inoperative
6and interest and penalties collected pursuant to this Act shall
7be deposited in and be deemed a part of the clearing account.
8In the event of the enactment of the foregoing Federal
9legislation, and within 90 days after the date upon which
10contributions become available for expenditure for costs of
11administration, the total amount in the special administrative
12account shall be transferred to the clearing account, and after
13clearance thereof shall be deposited with the Secretary of the
14Treasury of the United States of America to the credit of the
15account of this State in the unemployment trust fund,
16established and maintained pursuant to the Federal Social
17Security Act, as amended.
18(Source: P.A. 94-1083, eff. 1-19-07.)
19    Section 99. Effective date. This Act takes effect upon
20becoming law.