Sen. Daniel Biss
Filed: 5/19/2015
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1 | AMENDMENT TO HOUSE BILL 3220
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2 | AMENDMENT NO. ______. Amend House Bill 3220 on page 1 by | ||||||
3 | replacing line 5 with the following:
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4 | "is amended by changing Sections 5, 16, 80, 85, and 90 as | ||||||
5 | follows:
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6 | (820 ILCS 80/5) | ||||||
7 | (This Section may contain text from a Public Act with a | ||||||
8 | delayed effective date )
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9 | Sec. 5. Definitions. Unless the context requires a | ||||||
10 | different meaning or as expressly provided in this Section, all | ||||||
11 | terms shall have the same meaning as when used in a comparable | ||||||
12 | context in the Internal Revenue Code. As used in this Act: | ||||||
13 | "Board" means the Illinois Secure Choice Savings Board | ||||||
14 | established under this Act. | ||||||
15 | "Department" means the Department of Revenue. | ||||||
16 | "Director" means the Director of Revenue. |
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1 | "Employee" means any individual who is 18 years of age or | ||||||
2 | older, who is employed by an employer, and who has wages that | ||||||
3 | are allocable to Illinois during a calendar year under the | ||||||
4 | provisions of Section 304(a)(2)(B) of the Illinois Income Tax | ||||||
5 | Act. | ||||||
6 | "Employer" means a person or entity engaged in a business, | ||||||
7 | industry, profession, trade, or other enterprise in Illinois, | ||||||
8 | whether for profit or not for profit, that (i) has at no time | ||||||
9 | during the previous calendar year employed fewer than 25 | ||||||
10 | employees in the State, (ii) has been in business at least 2 | ||||||
11 | years, and (iii) has not offered a qualified retirement plan, | ||||||
12 | including, but not limited to, a plan qualified under Section | ||||||
13 | 401(a), Section 401(k), Section 403(a), Section 403(b), | ||||||
14 | Section 408(k), Section 408(p), or Section 457(b) of the | ||||||
15 | Internal Revenue Code of 1986 in the preceding 2 years. | ||||||
16 | "Enrollee" means any employee who is enrolled in the | ||||||
17 | Program.
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18 | "Fund" means the Illinois Secure Choice Savings Program | ||||||
19 | Fund.
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20 | "Internal Revenue Code" means Internal Revenue Code of | ||||||
21 | 1986, or any successor law, in effect for the calendar year.
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22 | "IRA" means a Roth IRA (individual retirement account) | ||||||
23 | under Section 408A of the Internal Revenue Code.
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24 | "Participating employer" means an employer or small | ||||||
25 | employer that provides a payroll deposit retirement savings | ||||||
26 | arrangement as provided for by this Act for its employees who |
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1 | are enrollees in the Program. | ||||||
2 | "Payroll deposit retirement savings arrangement" means an | ||||||
3 | arrangement by which a participating employer allows enrollees | ||||||
4 | to remit payroll deduction contributions to the Program. | ||||||
5 | "Program" means the Illinois Secure Choice Savings | ||||||
6 | Program.
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7 | "Small employer" means a person or entity engaged in a | ||||||
8 | business, industry, profession, trade, or other enterprise in | ||||||
9 | Illinois, whether for profit or not for profit, that (i) | ||||||
10 | employed less than 25 employees at any one time in the State | ||||||
11 | throughout the previous calendar year, or (ii) has been in | ||||||
12 | business less than 2 years, or both items (i) and (ii), but | ||||||
13 | that notifies the Board Department that it is interested in | ||||||
14 | being a participating employer. | ||||||
15 | "Wages" means any compensation within the meaning of | ||||||
16 | Section 219(f)(1) of the Internal Revenue Code that is received | ||||||
17 | by an enrollee from a participating employer during the | ||||||
18 | calendar year.
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19 | (Source: P.A. 98-1150, eff. 6-1-15.) | ||||||
20 | (820 ILCS 80/16) | ||||||
21 | (This Section may contain text from a Public Act with a | ||||||
22 | delayed effective date )
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23 | Sec. 16. Illinois Secure Choice Administrative Fund. The | ||||||
24 | Illinois Secure Choice Administrative Fund ("Administrative | ||||||
25 | Fund") is created as a nonappropriated separate and apart trust |
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1 | fund in the State Treasury. The Board shall use moneys in the | ||||||
2 | Administrative Fund to pay for administrative expenses it | ||||||
3 | incurs in the performance of its duties under this Act. The | ||||||
4 | Board shall use moneys in the Administrative Fund to cover | ||||||
5 | start-up administrative expenses it incurs in the performance | ||||||
6 | of its duties under this Act. The Administrative Fund may | ||||||
7 | receive any grants or other moneys designated for | ||||||
8 | administrative purposes from the State, or any unit of federal | ||||||
9 | or local government, or any other person, firm, partnership, or | ||||||
10 | corporation. Any interest earnings that are attributable to | ||||||
11 | moneys in the Administrative Fund must be deposited into the | ||||||
12 | Administrative Fund. The State Treasurer shall be the | ||||||
13 | administering agency for the Administrative Fund on behalf of | ||||||
14 | the Board.
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15 | (Source: P.A. 98-1150, eff. 6-1-15.)"; and | ||||||
16 | on page 2 by inserting immediately below line 25 the following: | ||||||
17 | "(820 ILCS 80/85) | ||||||
18 | (This Section may contain text from a Public Act with a | ||||||
19 | delayed effective date )
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20 | Sec. 85. Penalties.
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21 | (a) An employer who fails without reasonable cause to | ||||||
22 | enroll an employee in the Program within the time prescribed | ||||||
23 | under Section 60 of this Act shall be subject to a penalty | ||||||
24 | equal to:
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1 | (1) $250 for each employee for each calendar year or | ||||||
2 | portion of a calendar year during which the employee | ||||||
3 | neither was enrolled in the Program nor had elected out of | ||||||
4 | participation in the Program; or
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5 | (2) for each calendar year beginning after the date a | ||||||
6 | penalty has been assessed with respect to an employee, $500 | ||||||
7 | for any portion of that calendar year during which such | ||||||
8 | employee continues to be unenrolled without electing out of | ||||||
9 | participation in the Program.
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10 | (b) After determining that an employer is subject to | ||||||
11 | penalty under this Section for a calendar year, the Department | ||||||
12 | shall issue a notice of proposed assessment to such employer, | ||||||
13 | stating the number of employees for which the penalty is | ||||||
14 | proposed under item (1) of subsection (a) of this Section and | ||||||
15 | the number of employees for which the penalty is proposed under | ||||||
16 | item (2) of subsection (a) of this Section for such calendar | ||||||
17 | year, and the total amount of penalties proposed.
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18 | Upon the expiration of 90 days after the date on which a | ||||||
19 | notice of proposed assessment was issued, the penalties | ||||||
20 | specified therein shall be deemed assessed, unless the employer | ||||||
21 | had filed a protest with the Department under subsection (c) of | ||||||
22 | this Section.
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23 | If, within 90 days after the date on which it was issued, a | ||||||
24 | protest of a notice of proposed assessment is filed under | ||||||
25 | subsection (c) of this Section, the penalties specified therein | ||||||
26 | shall be deemed assessed upon the date when the decision of the |
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1 | Department with respect to the protest becomes final. | ||||||
2 | (c) A written protest against the proposed assessment shall | ||||||
3 | be filed with the Department in such form as the Department may | ||||||
4 | by rule prescribe, setting forth the grounds on which such | ||||||
5 | protest is based. If such a protest is filed within 90 days | ||||||
6 | after the date the notice of proposed assessment is issued, the | ||||||
7 | Department shall reconsider the proposed assessment and shall | ||||||
8 | grant the employer a hearing. As soon as practicable after such | ||||||
9 | reconsideration and hearing, the Department shall issue a | ||||||
10 | notice of decision to the employer, setting forth the | ||||||
11 | Department's findings of fact and the basis of decision. The | ||||||
12 | decision of the Department shall become final: | ||||||
13 | (1) if no action for review of the decision is | ||||||
14 | commenced under the Administrative Review Law, on the date | ||||||
15 | on which the time for commencement of such review has | ||||||
16 | expired; or
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17 | (2) if a timely action for review of the decision is | ||||||
18 | commenced under the Administrative Review Law, on the date | ||||||
19 | all proceedings in court for the review of such assessment | ||||||
20 | have terminated or the time for the taking thereof has | ||||||
21 | expired without such proceedings being instituted.
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22 | (d) As soon as practicable after the penalties specified in | ||||||
23 | a notice of proposed assessment are deemed assessed, the | ||||||
24 | Department shall give notice to the employer liable for any | ||||||
25 | unpaid portion of such assessment, stating the amount due and | ||||||
26 | demanding payment. If an employer neglects or refuses to pay |
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1 | the entire liability shown on the notice and demand within 10 | ||||||
2 | days after the notice and demand is issued, the unpaid amount | ||||||
3 | of the liability shall be a lien in favor of the State of | ||||||
4 | Illinois upon all property and rights to property, whether real | ||||||
5 | or personal,
belonging to the employer, and the provisions in | ||||||
6 | the Illinois Income Tax Act regarding liens, levies and | ||||||
7 | collection actions with regard to assessed and unpaid | ||||||
8 | liabilities under that Act, including the periods for taking | ||||||
9 | any action, shall apply.
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10 | (e) An employer who has overpaid a penalty assessed under | ||||||
11 | this Section may file a claim for refund with the Department. A | ||||||
12 | claim shall be in writing in such form as the Department may by | ||||||
13 | rule prescribe and shall state the specific grounds upon which | ||||||
14 | it is founded. As soon as practicable after a claim for refund | ||||||
15 | is filed, the Department shall examine it and either issue a | ||||||
16 | refund or issue a notice of denial. If such a protest is filed, | ||||||
17 | the Department shall reconsider the denial and grant the | ||||||
18 | employer a hearing. As soon as practicable after such | ||||||
19 | reconsideration and hearing, the Department shall issue a | ||||||
20 | notice of decision to the employer. The notice shall set forth | ||||||
21 | briefly the Department's findings of fact and the basis of | ||||||
22 | decision in each case decided in whole or in part adversely to | ||||||
23 | the employer. A denial of a claim for refund becomes final 90 | ||||||
24 | days after the date of issuance of the notice of the denial | ||||||
25 | except for such amounts denied as to which the employer has | ||||||
26 | filed a protest with the Department. If a protest has been |
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1 | timely filed, the decision of the Department shall become | ||||||
2 | final:
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3 | (1) if no action for review of the decision is | ||||||
4 | commenced under the Administrative Review Law, on the date | ||||||
5 | on which the time for commencement of such review has | ||||||
6 | expired; or
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7 | (2) if a timely action for review of the decision is | ||||||
8 | commenced under the Administrative Review Law, on the date | ||||||
9 | all proceedings in court for the review of such assessment | ||||||
10 | have terminated or the time for the taking thereof has | ||||||
11 | expired without such proceedings being instituted.
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12 | (f) No notice of proposed assessment may be issued with | ||||||
13 | respect to a calendar year after June 30 of the fourth | ||||||
14 | subsequent calendar year. No claim for refund may be filed more | ||||||
15 | than 1 year after the date of payment of the amount to be | ||||||
16 | refunded.
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17 | (g) The provisions of the Administrative Review Law and the | ||||||
18 | rules adopted pursuant to it shall apply to and govern all | ||||||
19 | proceedings for the judicial review of final decisions of the | ||||||
20 | Department in response to a protest filed by the employer under | ||||||
21 | subsections (c) and (e) of this Section. Final decisions of the | ||||||
22 | Department shall constitute "administrative decisions" as | ||||||
23 | defined in Section 3-101 of the Code of Civil Procedure.
The | ||||||
24 | Department may adopt any rules necessary to carry out its | ||||||
25 | duties pursuant to this Section. | ||||||
26 | (h) Whenever notice is required by this Section, it may be |
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1 | given or issued by mailing it by first-class mail addressed to | ||||||
2 | the person concerned at his or her last known address.
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3 | (i) All books and records and other papers and documents | ||||||
4 | relevant to the determination of any penalty due under this | ||||||
5 | Section shall, at all times during business hours of the day, | ||||||
6 | be subject to inspection by the Department or its duly | ||||||
7 | authorized agents and employees.
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8 | (j) The Department may require employers to report | ||||||
9 | information relevant to their compliance with this Act on | ||||||
10 | returns otherwise due from the employers under Section 704A of | ||||||
11 | the Illinois Income Tax Act and failure to provide the | ||||||
12 | requested information on a return shall cause such return to be | ||||||
13 | treated as unprocessable.
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14 | (k) For purposes of any provision of State law allowing the | ||||||
15 | Department or any other agency of this State to offset an | ||||||
16 | amount owed to a taxpayer against a tax liability of that | ||||||
17 | taxpayer or allowing the Department to offset an overpayment of | ||||||
18 | tax against any liability owed to the State, a penalty assessed | ||||||
19 | under this Section shall be deemed to be a tax liability of the | ||||||
20 | employer and any refund due to an employer shall be deemed to | ||||||
21 | be an overpayment of tax of the employer.
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22 | (l) Except as provided in this subsection, all information | ||||||
23 | received by the Department from returns filed by an employer or | ||||||
24 | from any investigation conducted under the provisions of this | ||||||
25 | Act shall be confidential, except for official purposes within | ||||||
26 | the Department or pursuant to official procedures for |
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1 | collection of penalties assessed under this Act. Nothing | ||||||
2 | contained in this subsection shall prevent the Director from | ||||||
3 | publishing or making available to the public reasonable | ||||||
4 | statistics concerning the operation of this Act wherein the | ||||||
5 | contents of returns are grouped into aggregates in such a way | ||||||
6 | that the specific information of any employer shall not be | ||||||
7 | disclosed. Nothing contained in this subsection shall prevent | ||||||
8 | the Director from divulging information to an authorized | ||||||
9 | representative of the employer or to any person pursuant to a | ||||||
10 | request or authorization made by the employer or by an | ||||||
11 | authorized representative of the employer.
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12 | (m) Civil penalties collected under this Act and fees | ||||||
13 | collected pursuant to subsection (n) of this Section shall be | ||||||
14 | deposited into the Tax Compliance and Administration Fund. The | ||||||
15 | Department may, subject to appropriation, use moneys in the | ||||||
16 | fund to cover expenses it incurs in the performance of its | ||||||
17 | duties under this Act. Interest attributable to moneys in the | ||||||
18 | Tax Compliance and Administration Fund shall be credited to the | ||||||
19 | Tax Compliance and Administration Fund. | ||||||
20 | (n) The Department may charge the Board a reasonable fee | ||||||
21 | for its costs in performing its duties under this Section to | ||||||
22 | the extent that such costs have not been recovered from | ||||||
23 | penalties imposed under this Section.
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24 | (o) This Section shall become operative 9 months after the | ||||||
25 | Board notifies the Director that the Program has been | ||||||
26 | implemented. Upon receipt of such notification from the Board, |
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1 | the Department shall immediately post on its Internet website a | ||||||
2 | notice stating that this Section is operative and the date that | ||||||
3 | it is first operative.
This notice shall include a statement | ||||||
4 | that rather than enrolling employees in the Program under this | ||||||
5 | Act, employers may sponsor an alternative arrangement, | ||||||
6 | including, but not limited to, a defined benefit plan, 401(k) | ||||||
7 | plan, a Simplified Employee Pension (SEP) plan, a Savings | ||||||
8 | Incentive Match Plan for Employees (SIMPLE) plan, or an | ||||||
9 | automatic payroll deduction IRA offered through a private | ||||||
10 | provider. The Board shall provide a link to the vendor Internet | ||||||
11 | website described in subsection (i) of Section 60 of this Act.
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12 | (Source: P.A. 98-1150, eff. 6-1-15.) | ||||||
13 | (820 ILCS 80/90) | ||||||
14 | (This Section may contain text from a Public Act with a | ||||||
15 | delayed effective date )
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16 | Sec. 90. Rules. The Board and the State Treasurer | ||||||
17 | Department shall adopt, in accordance with the Illinois | ||||||
18 | Administrative Procedure Act, any rules that may be necessary | ||||||
19 | to implement this Act.
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20 | (Source: P.A. 98-1150, eff. 6-1-15.) | ||||||
21 | Section 99. Effective date. This Act takes effect on June | ||||||
22 | 1, 2015.".
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