HB1654 104TH GENERAL ASSEMBLY

LRB104 02998 SPS 13016 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB1654

Introduced 1/28/2025, by Rep. Jawaharial Williams

SYNOPSIS AS INTRODUCED:

820 ILCS 405/503 new
820 ILCS 405/504 new
820 ILCS 405/612	from Ch. 48, par. 442

Amends the Unemployment Insurance Act. Provides that, subject to appropriation, school districts and public institutions of higher education are eligible to receive unemployment insurance aid. Sets forth provisions concerning the calculation of the amount of unemployment insurance aid to be given to each school district and public institutions of higher education. Provides that, if the total unemployment insurance aid for a fiscal year is greater than the annual appropriation for that year, the State Board of Education or the Board of Higher Education shall proportionately reduce the aid payment to each school district and public institution of higher education. Sets forth reporting requirements. Makes conforming changes. Effective January 1, 2026.

A BILL FOR

AN ACT concerning employment.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Unemployment Insurance Act is amended by changing Section 612 and by adding Sections 503 and 504 as follows:

(820 ILCS 405/503 new)

Sec. 503. School districts; unemployment insurance benefits.

(a) As used in this Section, "school district" has the meaning given to that term in Section 2-3.25a of the School Code.

(b) Subject to appropriation, school districts are eligible to receive unemployment insurance aid under this Section. For each fiscal year, a school district's aid is the difference between:

(1) the net audited unemployment costs for the prior fiscal year; and

(2) the base period net audited unemployment costs described in subsection (c).

(c) The base period net audited unemployment costs equals the school district's fiscal year 2024 net audited unemployment costs.

(d) If the total unemployment insurance aid for a fiscal year is greater than the annual appropriation for that year, the State Board of Education shall proportionately reduce the aid payment to each school district.

(e) By January 15 of each year, the State Board of Education, in consultation with the Department of Employment Security, shall report to the General Assembly the balances in unemployment insurance aid accounts and information about the annual changes in reimbursable costs for school workers receiving unemployment insurance benefits. To the extent possible, the report shall break out the costs by district and major job classes.

(820 ILCS 405/504 new)

Sec. 504. Institutions of higher education; unemployment insurance aid.

(a) As used in this Section, "public institution of higher education" has the meaning given to that term in Section 1 of the Board of Higher Education Act.

(b) Subject to appropriation, public institutions of higher education are eligible to receive unemployment insurance aid under this Section. For each fiscal year, a public institution of higher education's aid is the difference between:

(1) the net audited unemployment costs for the prior fiscal year; and

(2) the base period net audited unemployment costs described in subsection (c).

(c) The base period net audited unemployment costs equals the public institution of higher education's fiscal year 2024 net audited unemployment costs.

(d) If the total eligible unemployment insurance aid for a fiscal year is greater than the annual appropriation for that year, the Board of Higher Education shall proportionately reduce the aid payment to each

(e) By January 15 of each year, the Board of Higher Education, in consultation with the Department of Employment Security, shall report to the General Assembly the balances in unemployment insurance aid accounts and information about the annual changes in reimbursable costs for school workers receiving unemployment insurance benefits. To the extent possible, the report shall break out the costs by campus and major job classes.

(820 ILCS 405/612) (from Ch. 48, par. 442)

Sec. 612. Academic personnel; ineligibility between academic years or terms.

A. Benefits based on wages for services which are employment under the provisions of Sections 211.1, 211.2, and 302C shall be payable in the same amount, on the same terms, and subject to the same conditions as benefits payable on the basis of wages for other services which are employment under this Act; except that:

1. An individual shall be ineligible for benefits, on the basis of wages for employment in an instructional, research, or principal administrative capacity performed for an institution of higher education, for any week which begins during the period between two successive academic years, or during a similar period between two regular terms, whether or not successive, or during a period of paid sabbatical leave provided for in the individual's contract, if the individual has a contract or contracts to perform services in any such capacity for any institution or institutions of higher education for both such academic years or both such terms.

This paragraph 1 shall apply with respect to any week which begins prior to January 1, 1978.

2. An individual shall be ineligible for benefits, on the basis of wages for service in employment in any capacity other than those referred to in paragraph 1, performed for an institution of higher learning, for any week which begins after September 30, 1983, during a period between two successive academic years or terms, if the individual performed such service in the first of such academic years or terms and there is a reasonable assurance that the individual will perform such service in the second of such academic years or terms.

3. (Blank). An individual shall be ineligible for benefits, on the basis of wages for service in employment in any capacity other than those referred to in paragraph 1, performed for an institution of higher education, for any week which begins after January 5, 1985, during an established and customary vacation period or holiday recess, if the individual performed such service in the period immediately before such vacation period or holiday recess and there is a reasonable assurance that the individual will perform such service in the period immediately following such vacation period or holiday recess.

B. Benefits based on wages for services which are employment under the provisions of Sections 211.1 and 211.2 shall be payable in the same amount, on the same terms, and subject to the same conditions, as benefits payable on the basis of wages for other services which are employment under this Act, except that:

1. An individual shall be ineligible for benefits, on the basis of wages for service in employment in an instructional, research, or principal administrative capacity performed for an educational institution, for any week which begins after December 31, 1977, during a period between two successive academic years, or during a similar period between two regular terms, whether or not successive, or during a period of paid sabbatical leave provided for in the individual's contract, if the individual performed such service in the first of such academic years (or terms) and if there is a contract or a reasonable assurance that the individual will perform service in any such capacity for any educational institution in the second of such academic years (or terms).

2. An individual shall be ineligible for benefits, on the basis of wages for service in employment in any capacity other than those referred to in paragraph 1, performed for an educational institution, for any week which begins after December 31, 1977, during a period between two successive academic years or terms, if the individual performed such service in the first of such academic years or terms and there is a reasonable assurance that the individual will perform such service in the second of such academic years or terms.

3. (Blank). An individual shall be ineligible for benefits, on the basis of wages for service in employment in any capacity performed for an educational institution, for any week which begins after January 5, 1985, during an established and customary vacation period or holiday recess, if the individual performed such service in the period immediately before such vacation period or holiday recess and there is a reasonable assurance that the individual will perform such service in the period immediately following such vacation period or holiday recess.

4. An individual shall be ineligible for benefits on the basis of wages for service in employment in any capacity performed in an educational institution while in the employ of an educational service agency for any week which begins after January 5, 1985, (a) during a period between two successive academic years or terms, if the individual performed such service in the first of such academic years or terms and there is a reasonable assurance that the individual will perform such service in the second of such academic years or terms; and (b) during an established and customary vacation period or holiday recess, if the individual performed such service in the period immediately before such vacation period or holiday recess and there is a reasonable assurance that the individual will perform such service in the period immediately following such vacation period or holiday recess. The term "educational service agency" means a governmental agency or governmental entity which is established and operated exclusively for the purpose of providing such services to one or more educational institutions.

C. 1. If benefits are denied to any individual under the provisions of paragraph 2 of either subsection A or B of this Section for any week which begins on or after September 3, 1982 and such individual is not offered a bona fide opportunity to perform such services for the educational institution for the second of such academic years or terms, such individual shall be entitled to a retroactive payment of benefits for each week for which the individual filed a timely claim for benefits as determined by the rules and regulations issued by the Director for the filing of claims for benefits, provided that such benefits were denied solely because of the provisions of paragraph 2 of either subsection A or B of this Section.

2. If benefits on the basis of wages for service in employment in other than an instructional, research, or principal administrative capacity performed in an educational institution while in the employ of an educational service agency are denied to any individual under the provisions of subparagraph (a) of paragraph 4 of subsection B and such individual is not offered a bona fide opportunity to perform such services in an educational institution while in the employ of an educational service agency for the second of such academic years or terms, such individual shall be entitled to a retroactive payment of benefits for each week for which the individual filed a timely claim for benefits as determined by the rules and regulations issued by the Director for the filing of claims for benefits, provided that such benefits were denied solely because of subparagraph (a) of paragraph 4 of subsection B of this Section.

D. Notwithstanding any other provision in this Section or paragraph 2 of subsection C of Section 500 to the contrary, with respect to a week of unemployment beginning on or after March 15, 2020, and before September 4, 2021 (including any week of unemployment beginning on or after January 1, 2021 and on or before June 25, 2021 (the effective date of Public Act 102-26)), benefits shall be payable to an individual on the basis of wages for employment in other than an instructional, research, or principal administrative capacity performed for an educational institution or an educational service agency under any of the circumstances described in this Section, to the extent permitted under Section 3304(a)(6) of the Federal Unemployment Tax Act, as long as the individual is otherwise eligible for benefits.

(Source: P.A. 101-633, eff. 6-5-20; 102-26, eff. 6-25-21; 102-687, eff. 12-17-21.)

Section 99. Effective date. This Act takes effect January 1, 2026.