Illinois General Assembly - Full Text of SB0217
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Full Text of SB0217  98th General Assembly


Sen. Melinda Bush

Filed: 3/26/2014





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2    AMENDMENT NO. ______. Amend Senate Bill 217 by replacing
3everything after the enacting clause with the following:
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



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1employer's base employment through means including, but not
2limited to, wage reports submitted pursuant to the Unemployment
3Insurance Act.
4    "Business association" means an organization formed under
5Section 501(c)(6) of the Internal Revenue Code or a generally
6recognized entity or organization that represents the
7interests of multiple businesses in Illinois.
8    "Community college" means a community college as defined in
9Section 1-2 of the Public Community College Act.
10    "Credit" or "I-STEP Credit" means an amount agreed to in an
11agreement with an employer under this Act that does not exceed
12the Incremental Income Tax attributable to the employer's
14    "Employer" means a for-profit, legal entity including, but
15not limited to, a sole proprietorship, partnership,
16corporation, joint venture, association, or cooperative, that
17has in its employ one or more individuals performing services
18for it.
19    "Federal minimum wage" means the minimum wage as defined by
20the federal Fair Labor Standards Act (29 U.S.C. 201 et seq.).
21    "Full-time, permanent job" means a job in which the
22employee works for the employer at a rate of at least 35 hours
23per week.
24    "I-STEP Fund" means the fund established in Section 20 of
25this Act.
26    "Incremental income tax" means the total amount withheld



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1during the taxable year under Article 7 of the Illinois Income
2Tax Act from the compensation paid to employees in new jobs
3that are the subject of an agreement.
4    "Labor organization" means an organization defined as a
5"labor organization" under the National Labor Relations Act.
6    "New job" means a full-time, permanent job located in this
7State that meets all of the following:
8        (1) The job results in a net increase in the base
9    employment in this State for the employer.
10        (2) The job is not being filled or refilled as a result
11    of a layoff or to replace an employee who is or has been on
12    strike or locked out by the employer.
13        (3) The job is not a job that existed in the employer's
14    business within this State within the last 4 completed
15    quarters preceding the effective date of the agreement.
16        (4) The wage paid for the job is equal to or exceeds
17    175% of the federal minimum wage on the effective date of
18    the agreement.
19        (5) The employer has posted the job on the
20 System or its successor system for at
21    least 2 weeks preceding the effective date of the agreement
22    and did not locate an individual who has the requisite
23    expertise, experience, and background, except that this
24    requirement does not apply if either (i) the job would be
25    covered by a collective bargaining agreement between the
26    employer and a labor organization that includes provisions



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1    concerning hiring or training or (ii) the employer does not
2    have employees performing services in this State as of the
3    effective date of the Agreement.
4    A new job may not be filled by a child, grandchild, parent,
5or spouse, other than a spouse who is legally separated from
6the individual, of any individual who has a direct or indirect
7ownership interest of at least 5% in the profits, capital, or
8value of the employer.
9    "Program costs" means all necessary and incidental costs of
10providing program services in connection with a project,
11including administrative costs.
12    "Program services" includes, but is not limited to, any of
13the following items needed to hire or train a worker for a new
15        (1) Training or retraining including, but not limited
16    to, training or retraining provided by apprenticeship and
17    training programs approved by and registered with the
18    United States Department of Labor's Bureau of
19    Apprenticeship and Training.
20        (2) Adult basic education and job-related instruction.
21        (3) Developmental, readiness, and remedial education.
22        (4) Vocational and skill-assessment services and
23    testing.
24        (5) Training facilities, equipment, materials, and
25    supplies.
26    "Project" means an arrangement for program services that



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1are the subject of an agreement entered into under this Act.
2    Section 10. Agreement.
3    (a) The Director of Commerce and Economic Opportunity and
4the Director of Employment Security shall each have the power
5to enter into an agreement to establish a project with an
6employer. The agreement may be directly with an employer or
7with a business association, labor organization, local
8workforce investment board, community college, or nonprofit
9corporation acting on behalf of an employer. The Directors of
10Commerce and Economic Opportunity and Employment Security may
11consult with the I-STEP Panel before entering into an
13    (b) An agreement shall, at a minimum:
14        (1) State the project's total program costs.
15        (2) State that the employer may use the I-STEP Credit
16    pursuant to Section 15 to reimburse up to 75% of the
17    project's total program costs. If the Department of
18    Employment Security or the Department of Commerce and
19    Economic Opportunity determines that the project will
20    reduce long-term unemployment in the State, the agreement
21    shall state that the employer may use the I-STEP Credit to
22    reimburse up to 100% of the project's total program costs.
23        (3) Describe the program services to be provided.
24        (4) Specify the number of new jobs covered by the
25    project.



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



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1    assets related to the project.
2        (9) Indicate the amount of administrative costs that
3    the employer will be required to deposit into the I-STEP
4    Fund.
5        (10) Contain other provisions the Department of
6    Commerce and Economic Opportunity and Department of
7    Employment Security consider appropriate or necessary.
8    (c) The administrative costs of the Department of Commerce
9and Economic Opportunity' with respect to each project shall
10not exceed 5% of the program costs. The Department of
11Employment Security's administrative costs with respect to
12each project shall not exceed 5% of the program costs. In the
13case of an agreement between the Department of Commerce and
14Economic Opportunity or the Department of Employment Security
15and a business association, labor organization, local
16workforce investment board, community college, or nonprofit
17corporation acting on behalf of an employer, the administrative
18costs of the business association, labor organization, local
19workforce investment board, community college, or nonprofit
20corporation shall not exceed 5% of the program costs and shall
21be in addition to the program costs of the Department of
22Commerce and Economic Opportunity and the Department of
23Employment Security.
24    (d) The Department of Commerce and Economic Opportunity and
25the Department of Employment Security shall annually report to
26the General Assembly, no later than December 31, on the new



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1jobs created and amount of credits for which employers have
2been certified as eligible pursuant to this Act.
3    (e) A summary of each agreement shall be posted on the
4website maintained pursuant to the Corporate Accountability
5for Tax Expenditures Act.
6    Section 15. I-STEP Credit.
7    (a) Subject to the conditions set forth in this Act, for
8any taxable year ending on or after December 31, 2014, an
9employer is entitled to a credit against its obligation to pay
10over withholding under Section 704A of the Illinois Income Tax
11Act, if the employer is awarded a Credit under this Act for
12that taxable year.
13    (b) The duration of the credit may not exceed 10 taxable
14years. The credit may be stated as a percentage of the
15incremental income tax attributable to the employer's project
16and shall include a fixed dollar limitation that shall not
17exceed the amount calculated pursuant to paragraph (2) of
18subsection (b) of Section 10.
19    (c) An employer claiming a credit under this Act shall
20submit to the Department of Revenue a copy of the certificate
21of verification under this Act for the taxable year. However,
22failure to submit a copy of the certificate with the employer's
23tax return shall not invalidate a claim for a credit.
24    (d) For an employer to be eligible for a certificate of
25verification, the employer shall provide proof as required by



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1the Department of Commerce and Economic Opportunity or the
2Department of Employment Security prior to the end of each
3calendar year including, but not limited to, attestation by the
5        (1) regarding the number of new jobs specified in its
6    agreement and into which it has hired employees;
7        (2) that employees received the program services
8    specified in the agreement; and
9        (3) regarding the amount of program costs incurred by
10    the employer with respect to those new jobs.
11    (e) For a certificate of verification to be valid, it shall
12be signed by the Director of Commerce and Economic Opportunity
13or the Director of Employment Security.
14    Section 20. I-STEP Fund.
15    (a) There is established in the State Treasury a special
16fund to be known as the I-STEP Fund.
17    (b) Money received, earned, or collected pursuant to this
18Act shall be credited to the I-STEP Fund. All interest earnings
19on amounts within the I-STEP Fund shall accrue to the I-STEP
20Fund. The I-STEP Fund may include such funds and accounts as
21are necessary for the implementation and administration of this
22Act. All sums recovered for losses sustained by the I-STEP Fund
23shall be deposited into the I-STEP Fund.
24    (c) Moneys may be paid or expended from the I-STEP Fund for
25the payment of administrative costs associated with projects



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1established pursuant to this Act.
2    (d) Any payments or expenditures from the I-STEP Fund,
3other than administrative costs associated with projects
4established pursuant to this Act, shall require the approval of
5both the Director of Employment Security and the Director of
6Commerce and Economic Opportunity.
7    Section 25. I-STEP Panel.
8    (a) There is created the I-STEP Panel. The I-STEP Panel
9shall consist of the Director of Commerce and Economic
10Opportunity and the Director of Employment Security, who shall
11serve as co-chairpersons, and 11 members who shall be appointed
12by the Governor with the advice and consent of the Senate.
13    (b) The members of the I-STEP Panel shall include a
14representative from each of the following businesses and
15groups: manufacturing, small business, a local or State
16business association or chamber of commerce, building and
17construction trades unions, a labor organization representing
18workers engaged in manufacturing, a labor organization
19representing workers engaged in service professions, a
20not-for-profit corporation providing workforce training, a
21community college, and a local workforce investment board.
22There shall be 2 at-large voting members who reside within
23counties or municipalities that have had an annual average
24unemployment rate of at least 120% of the State's annual
25average unemployment rate as reported by Department of



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1Employment Security for the 5 years preceding the date of
2appointment. All appointments shall be made in a geographically
3diverse manner.
4    (c) For the initial appointments to the I-STEP Panel, 5
5members shall be appointed to serve a 2-year term and 6 members
6shall be appointed to serve a 4-year term. Thereafter, all
7appointments shall be for terms of 4 years. The initial term of
8appointed members shall commence on July 1, 2014. Thereafter,
9the terms of appointed members shall commence on July 1, except
10in the case of an appointment to fill a vacancy. Vacancies
11occurring among the members shall be filled in the same manner
12as the original appointment for the remainder of the unexpired
13term. For a vacancy occurring when the Senate is not in
14session, the Governor may make a temporary appointment until
15the next meeting of the Senate when a person shall be nominated
16to fill the office, and, upon confirmation by the Senate, he or
17she shall hold office during the remainder of the term. A
18vacancy in membership does not impair the ability of a quorum
19to exercise all rights and perform all duties of the I-STEP
20Panel. A member is eligible for reappointment.
21    (d) The I-STEP Panel shall advise the Department of
22Commerce and Economic Opportunity and Department of Employment
23Security on the implementation and administration of this Act.
24    (e) Members of the I-STEP Panel shall serve without
25compensation, but shall be reimbursed for any necessary
26expenses from funds appropriated for that purpose.



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1    Section 30. Powers of the Departments. In addition to those
2powers granted under the Civil Administrative Code of Illinois,
3the Department of Commerce and Economic Opportunity and the
4Department of Employment Security are granted and shall have
5all the powers necessary or convenient to carry out and
6effectuate the purposes and provisions of this Act. These
7powers shall include, but are not limited to, power and
8authority to:
9        (1) Jointly promulgate procedures or rules necessary
10    and appropriate for the administration of this Act,
11    establish forms for applications, notifications,
12    contracts, or any other agreements, and accept
13    applications at any time during the year.
14        (2) Establish, negotiate, and effectuate any term,
15    agreement, or other document with any person, necessary or
16    appropriate to accomplish the purposes of this Act, and to
17    consent, subject to the provisions of any agreement with
18    another party, to the modification or restructuring of any
19    agreement made pursuant to this Act to which the Department
20    of Commerce and Economic Opportunity or the Department of
21    Employment Security is a party.
22        (3) Fix, determine, charge, and collect any premiums,
23    fees, charges, costs, and expenses from employers
24    including, without limitation, application fees,
25    commitment fees, program fees, financing charges, or



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1    publication fees, deemed appropriate to pay expenses
2    necessary or incident to the (i) administration, staffing,
3    or operation in connection with the Department of Commerce
4    and Economic Opportunity's or the Department of Employment
5    Security's activities under this Act, (ii) preparation,
6    implementation, and enforcement of the terms of the
7    agreement, or (iii) consultation, advisory and legal fees
8    and other costs; however, all fees and expenses incident
9    thereto shall be the responsibility of the employer.
10        (4) Provide for sufficient personnel to permit
11    administration, staffing, operation, and related support
12    required to adequately discharge its duties and
13    responsibilities described in this Act from funds made
14    available for that purpose.
15        (5) Gather information and conduct inquiries, in the
16    manner and by methods as deemed desirable including,
17    without limitation, gathering information with respect to
18    employers for the purpose of making any designations or
19    certifications necessary or desirable or to gather
20    information to assist the I-STEP Panel with any
21    recommendation or guidance in the furtherance of the
22    purposes of this Act.
23    Section 85. The State Finance Act is amended by adding
24Section 5.855 as follows:



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1    (30 ILCS 105/5.855 new)
2    Sec. 5.855. The I-STEP Fund.
3    Section 90. The Unemployment Insurance Act is amended by
4changing Sections 500, 1402, and 2101 as follows:
5    (820 ILCS 405/500)  (from Ch. 48, par. 420)
6    Sec. 500. Eligibility for benefits. An unemployed
7individual shall be eligible to receive benefits with respect
8to any week only if the Director finds that:
9    A. He has registered for work at and thereafter has
10continued to report at an employment office in accordance with
11such regulations as the Director may prescribe, except that the
12Director may, by regulation, waive or alter either or both of
13the requirements of this subsection as to individuals attached
14to regular jobs, and as to such other types of cases or
15situations with respect to which he finds that compliance with
16such requirements would be oppressive or inconsistent with the
17purposes of this Act, provided that no such regulation shall
18conflict with Section 400 of this Act.
19    B. He has made a claim for benefits with respect to such
20week in accordance with such regulations as the Director may
22    C. He is able to work, and is available for work; provided
23that during the period in question he was actively seeking work
24and he has certified such. Whenever requested to do so by the



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1Director, the individual shall, in the manner the Director
2prescribes by regulation, inform the Department of the places
3at which he has sought work during the period in question.
4Nothing in this subsection shall limit the Director's approval
5of alternate methods of demonstrating an active search for work
6based on regular reporting to a trade union office.
7        1. If an otherwise eligible individual is unable to
8    work or is unavailable for work on any normal workday of
9    the week, he shall be eligible to receive benefits with
10    respect to such week reduced by one-fifth of his weekly
11    benefit amount for each day of such inability to work or
12    unavailability for work. For the purposes of this
13    paragraph, an individual who reports on a day subsequent to
14    his designated report day shall be deemed unavailable for
15    work on his report day if his failure to report on that day
16    is without good cause, and on each intervening day, if any,
17    on which his failure to report is without good cause. As
18    used in the preceding sentence, "report day" means the day
19    which has been designated for the individual to report to
20    file his claim for benefits with respect to any week. This
21    paragraph shall not be construed so as to effect any change
22    in the status of part-time workers as defined in Section
23    407.
24        2. An individual shall be considered to be unavailable
25    for work on days listed as whole holidays in "An Act to
26    revise the law in relation to promissory notes, bonds, due



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1    bills and other instruments in writing," approved March 18,
2    1874, as amended; on days which are holidays in his
3    religion or faith, and on days which are holidays according
4    to the custom of his trade or occupation, if his failure to
5    work on such day is a result of the holiday. In determining
6    the claimant's eligibility for benefits and the amount to
7    be paid him, with respect to the week in which such holiday
8    occurs, he shall have attributed to him as additional
9    earnings for that week an amount equal to one-fifth of his
10    weekly benefit amount for each normal work day on which he
11    does not work because of a holiday of the type above
12    enumerated.
13        3. An individual shall be deemed unavailable for work
14    if, after his separation from his most recent employing
15    unit, he has removed himself to and remains in a locality
16    where opportunities for work are substantially less
17    favorable than those in the locality he has left.
18        4. An individual shall be deemed unavailable for work
19    with respect to any week which occurs in a period when his
20    principal occupation is that of a student in attendance at,
21    or on vacation from, a public or private school.
22        5. Notwithstanding any other provisions of this Act, an
23    individual shall not be deemed unavailable for work or to
24    have failed actively to seek work, nor shall he be
25    ineligible for benefits by reason of the application of the
26    provisions of Section 603, with respect to any week,



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1    because he is enrolled in and is in regular attendance at a
2    training course approved for him by the Director:
3            (a) but only if, with respect to that week, the
4        individual presents, upon request, to the claims
5        adjudicator referred to in Section 702 a statement
6        executed by a responsible person connected with the
7        training course, certifying that the individual was in
8        full-time attendance at such course during the week.
9        The Director may approve such course for an individual
10        only if he finds that (1) reasonable work opportunities
11        for which the individual is fitted by training and
12        experience do not exist in his locality; (2) the
13        training course relates to an occupation or skill for
14        which there are, or are expected to be in the immediate
15        future, reasonable work opportunities in his locality;
16        (3) the training course is offered by a competent and
17        reliable agency, educational institution, or employing
18        unit; (4) the individual has the required
19        qualifications and aptitudes to complete the course
20        successfully; and (5) the individual is not receiving
21        and is not eligible (other than because he has claimed
22        benefits under this Act) for subsistence payments or
23        similar assistance under any public or private
24        retraining program: Provided, that the Director shall
25        not disapprove such course solely by reason of clause
26        (5) if the subsistence payment or similar assistance is



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1        subject to reduction by an amount equal to any benefits
2        payable to the individual under this Act in the absence
3        of the clause. In the event that an individual's weekly
4        unemployment compensation benefit is less than his
5        certified training allowance, that person shall be
6        eligible to receive his entire unemployment
7        compensation benefits, plus such supplemental training
8        allowances that would make an applicant's total weekly
9        benefit identical to the original certified training
10        allowance.
11            (b) The Director shall have the authority to grant
12        approval pursuant to subparagraph (a) above prior to an
13        individual's formal admission into a training course.
14        Requests for approval shall not be made more than 30
15        days prior to the actual starting date of such course.
16        Requests shall be made at the appropriate unemployment
17        office.
18            (c) The Director shall for purposes of paragraph C
19        have the authority to issue a blanket approval of
20        training programs implemented pursuant to the federal
21        Workforce Investment Act of 1998 if both the training
22        program and the criteria for an individual's
23        participation in such training meet the requirements
24        of this paragraph C.
25            (d) Notwithstanding the requirements of
26        subparagraph (a), the Director shall have the



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1        authority to issue blanket approval of training
2        programs implemented under the terms of a collective
3        bargaining agreement.
4            (e) Notwithstanding any other provision of this
5        Act, program services implemented under the Illinois
6        State Training and Employment Program (I-STEP) Act
7        shall constitute training approved pursuant to this
8        paragraph C.
9        6. Notwithstanding any other provisions of this Act, an
10    individual shall not be deemed unavailable for work or to
11    have failed actively to seek work, nor shall he be
12    ineligible for benefits, by reason of the application of
13    the provisions of Section 603 with respect to any week
14    because he is in training approved under Section 236 (a)(1)
15    of the federal Trade Act of 1974, nor shall an individual
16    be ineligible for benefits under the provisions of Section
17    601 by reason of leaving work voluntarily to enter such
18    training if the work left is not of a substantially equal
19    or higher skill level than the individual's past adversely
20    affected employment as defined under the federal Trade Act
21    of 1974 and the wages for such work are less than 80% of
22    his average weekly wage as determined under the federal
23    Trade Act of 1974.
24    D. If his benefit year begins prior to July 6, 1975 or
25subsequent to January 2, 1982, he has been unemployed for a
26waiting period of 1 week during such benefit year. If his



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1benefit year begins on or after July 6, l975, but prior to
2January 3, 1982, and his unemployment continues for more than
3three weeks during such benefit year, he shall be eligible for
4benefits with respect to each week of such unemployment,
5including the first week thereof. An individual shall be deemed
6to be unemployed within the meaning of this subsection while
7receiving public assistance as remuneration for services
8performed on work projects financed from funds made available
9to governmental agencies for such purpose. No week shall be
10counted as a week of unemployment for the purposes of this
12        1. Unless it occurs within the benefit year which
13    includes the week with respect to which he claims payment
14    of benefits, provided that, for benefit years beginning
15    prior to January 3, 1982, this requirement shall not
16    interrupt the payment of benefits for consecutive weeks of
17    unemployment; and provided further that the week
18    immediately preceding a benefit year, if part of one
19    uninterrupted period of unemployment which continues into
20    such benefit year, shall be deemed (for the purpose of this
21    subsection only and with respect to benefit years beginning
22    prior to January 3, 1982, only) to be within such benefit
23    year, as well as within the preceding benefit year, if the
24    unemployed individual would, except for the provisions of
25    the first paragraph and paragraph 1 of this subsection and
26    of Section 605, be eligible for and entitled to benefits



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1    for such week.
2        2. If benefits have been paid with respect thereto.
3        3. Unless the individual was eligible for benefits with
4    respect thereto except for the requirements of this
5    subsection and of Section 605.
6    E. With respect to any benefit year beginning prior to
7January 3, 1982, he has been paid during his base period wages
8for insured work not less than the amount specified in Section
9500E of this Act as amended and in effect on October 5, 1980.
10With respect to any benefit year beginning on or after January
113, 1982, he has been paid during his base period wages for
12insured work equal to not less than $1,600, provided that he
13has been paid wages for insured work equal to at least $440
14during that part of his base period which does not include the
15calendar quarter in which the wages paid to him were highest.
16    F. During that week he has participated in reemployment
17services to which he has been referred, including but not
18limited to job search assistance services, pursuant to a
19profiling system established by the Director by rule in
20conformity with Section 303(j)(1) of the federal Social
21Security Act, unless the Director determines that:
22        1. the individual has completed such services; or
23        2. there is justifiable cause for the claimant's
24    failure to participate in such services.
25    This subsection F is added by this amendatory Act of 1995
26to clarify authority already provided under subsections A and C



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1in connection with the unemployment insurance claimant
2profiling system required under subsections (a)(10) and (j)(1)
3of Section 303 of the federal Social Security Act as a
4condition of federal funding for the administration of the
5Unemployment Insurance Act.
6(Source: P.A. 92-396, eff. 1-1-02.)
7    (820 ILCS 405/1402)  (from Ch. 48, par. 552)
8    Sec. 1402. Penalties.
9    A. If any employer fails, within the time prescribed in
10this Act as amended and in effect on October 5, 1980, and the
11regulations of the Director, to file a report of wages paid to
12each of his workers, or to file a sufficient report of such
13wages after having been notified by the Director to do so, for
14any period which begins prior to January 1, 1982, he shall pay
15to the Department as a penalty a sum determined in accordance
16with the provisions of this Act as amended and in effect on
17October 5, 1980.
18    B. Except as otherwise provided in this Section, any
19employer who fails to file a report of wages paid to each of
20his workers for any period which begins on or after January 1,
211982, within the time prescribed by the provisions of this Act
22and the regulations of the Director, or, if the Director
23pursuant to such regulations extends the time for filing the
24report, fails to file it within the extended time, shall, in
25addition to any sum otherwise payable by him under the



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1provisions of this Act, pay to the Department as a penalty a
2sum equal to the lesser of (1) $5 for each $10,000 or fraction
3thereof of the total wages for insured work paid by him during
4the period or (2) $2,500, for each month or part thereof of
5such failure to file the report. With respect to an employer
6who has elected to file reports of wages on an annual basis
7pursuant to Section 1400.2, in assessing penalties for the
8failure to submit all reports by the due date established
9pursuant to that Section, the 30-day period immediately
10following the due date shall be considered as one month.
11    If the Director deems an employer's report of wages paid to
12each of his workers for any period which begins on or after
13January 1, 1982, insufficient, he shall notify the employer to
14file a sufficient report. If the employer fails to file such
15sufficient report within 30 days after the mailing of the
16notice to him, he shall, in addition to any sum otherwise
17payable by him under the provisions of this Act, pay to the
18Department as a penalty a sum determined in accordance with the
19provisions of the first paragraph of this subsection, for each
20month or part thereof of such failure to file such sufficient
21report after the date of the notice.
22    For wages paid in calendar years prior to 1988, the penalty
23or penalties which accrue under the two foregoing paragraphs
24with respect to a report for any period shall not be less than
25$100, and shall not exceed the lesser of (1) $10 for each
26$10,000 or fraction thereof of the total wages for insured work



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1paid during the period or (2) $5,000. For wages paid in
2calendar years after 1987, the penalty or penalties which
3accrue under the 2 foregoing paragraphs with respect to a
4report for any period shall not be less than $50, and shall not
5exceed the lesser of (1) $10 for each $10,000 or fraction of
6the total wages for insured work paid during the period or (2)
7$5,000. With respect to an employer who has elected to file
8reports of wages on an annual basis pursuant to Section 1400.2,
9for purposes of calculating the minimum penalty prescribed by
10this Section for failure to file the reports on a timely basis,
11a calendar year shall constitute a single period. For reports
12of wages paid after 1986, the Director shall not, however,
13impose a penalty pursuant to either of the two foregoing
14paragraphs on any employer who can prove within 30 working days
15after the mailing of a notice of his failure to file such a
16report, that (1) the failure to file the report is his first
17such failure during the previous 20 consecutive calendar
18quarters, and (2) the amount of the total contributions due for
19the calendar quarter of such report (or, in the case of an
20employer who is required to file the reports on a monthly
21basis, the amount of the total contributions due for the
22calendar quarter that includes the month of such report) is
23less than $500.
24    For any month which begins on or after January 1, 2013, a
25report of the wages paid to each of an employer's workers shall
26be due on or before the last day of the month next following



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1the calendar month in which the wages were paid if the employer
2is required to report such wages electronically pursuant to the
3regulations of the Director or if the employer has entered into
4an agreement pursuant to the Illinois State Training and
5Employment Program (I-STEP) Act and the period during which the
6employer could be eligible for a credit pursuant to that Act
7has not yet expired (in which case the employer shall also be
8required to report such wages electronically); otherwise a
9report of the wages paid to each of the employer's workers
10shall be due on or before the last day of the month next
11following the calendar quarter in which the wages were paid.
12    Any employer who wilfully fails to pay any contribution or
13part thereof, based upon wages paid prior to 1987, when
14required by the provisions of this Act and the regulations of
15the Director, with intent to defraud the Director, shall in
16addition to such contribution or part thereof pay to the
17Department a penalty equal to 50 percent of the amount of such
18contribution or part thereof, as the case may be, provided that
19the penalty shall not be less than $200.
20    Any employer who willfully fails to pay any contribution or
21part thereof, based upon wages paid in 1987 and in each
22calendar year thereafter, when required by the provisions of
23this Act and the regulations of the Director, with intent to
24defraud the Director, shall in addition to such contribution or
25part thereof pay to the Department a penalty equal to 60% of
26the amount of such contribution or part thereof, as the case



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1may be, provided that the penalty shall not be less than $400.
2    However, all or part of any penalty may be waived by the
3Director for good cause shown.
4(Source: P.A. 97-689, eff. 6-14-12; 97-791, eff. 1-1-13;
598-463, eff. 8-16-13.)
6    (820 ILCS 405/2101)  (from Ch. 48, par. 661)
7    Sec. 2101. Special administrative account. Except as
8provided in Section 2100, all interest and penalties collected
9pursuant to this Act shall be deposited in the special
10administrative account. The amount in this account in excess of
11$100,000 on the close of business of the last day of each
12calendar quarter shall be immediately transferred to this
13State's account in the unemployment trust fund. However,
14subject to Section 2101.1, such funds shall not be transferred
15where it is determined by the Director that it is necessary to
16accumulate funds in the account in order to have sufficient
17funds to pay interest that may become due under the terms of
18Section 1202 (b) of the Federal Social Security Act, as
19amended, upon advances made to the Illinois Unemployment
20Insurance Trust Fund under Title XII of the Federal Social
21Security Act or where it is determined by the Director that it
22is necessary to accumulate funds in the special administrative
23account in order to have sufficient funds to expend for any
24other purpose authorized by this Section. The moneys available
25in the special administrative account shall be expended upon



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1the direction of the Director whenever it appears to him that
2such expenditure is necessary for:
3    A. 1. The proper administration of this Act and no Federal
4funds are available for the specific purpose for which such
5expenditure is to be made, provided the moneys are not
6substituted for appropriations from Federal funds, which in the
7absence of such moneys would be available and provided the
8monies are appropriated by the General Assembly.
9    2. The proper administration of this Act for which purpose
10appropriations from Federal funds have been requested but not
11yet received, provided the special administrative account will
12be reimbursed upon receipt of the requested Federal
14    B. To the extent possible, the repayment to the fund
15established for financing the cost of administration of this
16Act of moneys found by the Secretary of Labor of the United
17States of America, or other appropriate Federal agency, to have
18been lost or expended for purposes other than, or in amounts in
19excess of, those found necessary by the Secretary of Labor, or
20other appropriate Federal agency, for the administration of
21this Act.
22    C. The payment of refunds or adjustments of interest or
23penalties, paid pursuant to Sections 901 or 2201.
24    D. The payment of interest on refunds of erroneously paid
25contributions, penalties and interest pursuant to Section



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1    E. The payment or transfer of interest or penalties to any
2Federal or State agency, pursuant to reciprocal arrangements
3entered into by the Director under the provisions of Section
5    F. The payment of any costs incurred, pursuant to Section
7    G. Beginning January 1, 1989, for the payment for the legal
8services authorized by subsection B of Section 802, up to
9$1,000,000 per year for the representation of the individual
10claimants and up to $1,000,000 per year for the representation
11of "small employers".
12    H. The payment of any fees for collecting past due
13contributions, payments in lieu of contributions, penalties,
14and interest shall be paid (without an appropriation) from
15interest and penalty monies received from collection agents
16that have contracted with the Department under Section 2206 to
17collect such amounts, provided however, that the amount of such
18payment shall not exceed the amount of past due interest and
19penalty collected.
20    I. The payment of interest that may become due under the
21terms of Section 1202 (b) of the Federal Social Security Act,
22as amended, for advances made to the Illinois Unemployment
23Insurance Trust Fund.
24    J. Expenses incurred by the Department in the
25administration of the Illinois State Training and Employment
26Program (I-STEP) Act.



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1    The Director shall annually on or before the first day of
2March report in writing to the Employment Security Advisory
3Board concerning the expenditures made from the special
4administrative account and the purposes for which funds are
5being accumulated.
6    If Federal legislation is enacted which will permit the use
7by the Director of some part of the contributions collected or
8to be collected under this Act, for the financing of
9expenditures incurred in the proper administration of this Act,
10then, upon the availability of such contributions for such
11purpose, the provisions of this Section shall be inoperative
12and interest and penalties collected pursuant to this Act shall
13be deposited in and be deemed a part of the clearing account.
14In the event of the enactment of the foregoing Federal
15legislation, and within 90 days after the date upon which
16contributions become available for expenditure for costs of
17administration, the total amount in the special administrative
18account shall be transferred to the clearing account, and after
19clearance thereof shall be deposited with the Secretary of the
20Treasury of the United States of America to the credit of the
21account of this State in the unemployment trust fund,
22established and maintained pursuant to the Federal Social
23Security Act, as amended.
24(Source: P.A. 94-1083, eff. 1-19-07.)
25    Section 99. Effective date. This Act takes effect upon



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1becoming law.".