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91_HB2649
LRB9102428WHpr
1 AN ACT to amend the Unemployment Insurance Act by
2 changing Section 2100.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Unemployment Insurance Act is amended by
6 changing Section 2100 as follows:
7 (820 ILCS 405/2100) (from Ch. 48, par. 660)
8 Sec. 2100. Handling of funds - Bond - Accounts.
9 A. All contributions and payments in lieu of
10 contributions collected under this Act together with any
11 interest thereon; all penalties collected pursuant to this
12 Act; any property or securities acquired through the use
13 thereof; all moneys advanced to this State's account in the
14 unemployment trust fund pursuant to the provisions of Title
15 XII of the Social Security Act, as amended; all moneys
16 received from the federal tax avoidance surcharge established
17 by Section 1506.4; all moneys received from the Federal
18 government as reimbursements pursuant to Section 204 of the
19 Federal-State Extended Unemployment Compensation Act of 1970,
20 as amended; all moneys credited to this State's account in
21 the unemployment trust fund pursuant to Section 903 of the
22 Federal Social Security Act, as amended; and all earnings of
23 such property or securities and any interest earned upon any
24 such moneys shall be paid or turned over to and held by the
25 Director, as ex-officio custodian of the clearing account,
26 the unemployment trust fund account and the benefit account,
27 and by the State Treasurer, as ex-officio custodian of the
28 special administrative account, separate and apart from all
29 public moneys or funds of this State, as hereinafter
30 provided. Such moneys shall be administered by the Director
31 exclusively for the purposes of this Act.
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1 No such moneys shall be paid or expended except upon the
2 direction of the Director in accordance with such regulations
3 as he shall prescribe pursuant to the provisions of this Act.
4 The State Treasurer shall be liable on his general
5 official bond for the faithful performance of his duties in
6 connection with the moneys in the special administrative
7 account provided for under this Act. Such liability on his
8 official bond shall exist in addition to the liability upon
9 any separate bond given by him. All sums recovered for
10 losses sustained by the account shall be deposited in that
11 account.
12 The Director shall be liable on his general official bond
13 for the faithful performance of his duties in connection with
14 the moneys in the clearing account, the benefit account and
15 unemployment trust fund account provided for under this Act.
16 Such liability on his official bond shall exist in addition
17 to the liability upon any separate bond given by him. All
18 sums recovered for losses sustained by any one of the
19 accounts shall be deposited in the account that sustained
20 such loss.
21 The Treasurer shall maintain for such moneys a special
22 administrative account. The Director shall maintain for such
23 moneys 3 separate accounts: a clearing account, a benefit
24 account and an unemployment trust fund account. All moneys
25 payable under this Act (except moneys requisitioned from this
26 State's account in the unemployment trust fund and deposited
27 in the benefit account), upon receipt thereof by the
28 Director, shall be immediately deposited in the clearing
29 account; provided, however, that, except as is otherwise
30 provided in this Section, interest and penalties shall not be
31 deemed a part of the clearing account but shall be
32 transferred immediately upon clearance thereof to the special
33 administrative account.
34 After clearance thereof, all other moneys in the clearing
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1 account shall be immediately deposited by the Director with
2 the Secretary of the Treasury of the United States of America
3 to the credit of the account of this State in the
4 unemployment trust fund, established and maintained pursuant
5 to the Federal Social Security Act, as amended.
6 The benefit account shall consist of all moneys
7 requisitioned from this State's account in the unemployment
8 trust fund. The moneys in the benefit account shall be
9 expended in accordance with regulations prescribed by the
10 Director and solely for the payment of benefits, refunds of
11 contributions, interest and penalties under the provisions of
12 the Act, the payment of health insurance in accordance with
13 Section 410 of this Act, and the transfer or payment of funds
14 to any Federal or State agency pursuant to reciprocal
15 arrangements entered into by the Director under the
16 provisions of Section 2700E, except that moneys credited to
17 this State's account in the unemployment trust fund pursuant
18 to Section 903 of the Federal Social Security Act, as
19 amended, shall be used exclusively as provided in subsection
20 B. The Director shall, from time to time, requisition from
21 the unemployment trust fund such amounts, not exceeding the
22 amounts standing to the State's account therein, as he deems
23 necessary solely for the payment of such benefits, refunds,
24 and funds, for a reasonable future period. The Director, as
25 ex-officio custodian of the benefit account, which shall be
26 kept separate and apart from all other public moneys, shall
27 issue his checks for the payment of such benefits, refunds,
28 health insurance and funds solely from the moneys so received
29 into the benefit account. However, after January 1, 1987, no
30 check shall be drawn on such benefit account unless at the
31 time of drawing there is sufficient money in the account to
32 pay the check. The Director shall retain in the clearing
33 account an amount of interest and penalties equal to the
34 amount of interest and penalties to be refunded from the
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1 benefit account. After clearance thereof, the amount so
2 retained shall be immediately deposited by the Director, as
3 are all other moneys in the clearing account, with the
4 Secretary of the Treasury of the United States. If, at any
5 time, an insufficient amount of interest and penalties is
6 available for retention in the clearing account, no refund of
7 interest or penalties shall be made from the benefit account
8 until a sufficient amount is available for retention and is
9 so retained, or until the State Treasurer, upon the direction
10 of the Director, transfers to the Director a sufficient
11 amount from the special administrative account, for immediate
12 deposit in the benefit account.
13 Any balance of moneys requisitioned from the unemployment
14 trust fund which remains unclaimed or unpaid in the benefit
15 account after the expiration of the period for which such
16 sums were requisitioned shall either be deducted from
17 estimates of and may be utilized for authorized expenditures
18 during succeeding periods, or, in the discretion of the
19 Director, shall be redeposited with the Secretary of the
20 Treasury of the United States to the credit of the State's
21 account in the unemployment trust fund.
22 Moneys in the clearing, benefit and special
23 administrative accounts shall not be commingled with other
24 State funds but they shall be deposited as required by law
25 and maintained in separate accounts on the books of a savings
26 and loan association or bank.
27 No bank or savings and loan association shall receive
28 public funds as permitted by this Section, unless it has
29 complied with the requirements established pursuant to
30 Section 6 of "An Act relating to certain investments of
31 public funds by public agencies", approved July 23, 1943, as
32 now or hereafter amended.
33 B. Moneys credited to the account of this State in the
34 unemployment trust fund by the Secretary of the Treasury of
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1 the United States pursuant to Section 903 of the Social
2 Security Act may not be requisitioned from this State's
3 account or and used as authorized by Section 903 except for
4 the payment of benefits and for the payment of expenses
5 incurred for the administration of this Act. Any interest
6 required to be paid on advances under Title XII of the Social
7 Security Act shall be paid in a timely manner and shall not
8 be paid, directly or indirectly, by an equivalent reduction
9 in contributions or payments in lieu of contributions from
10 amounts in this State's account in the unemployment trust
11 fund. Such moneys may be requisitioned pursuant to
12 subsection A for the payment of benefits. Such moneys may
13 also be requisitioned and used for the payment of expenses
14 incurred for the administration of this Act, but only
15 pursuant to a specific appropriation by the General Assembly
16 and only if the expenses are incurred and the moneys are
17 requisitioned after the enactment of an appropriation law
18 which:
19 1. Specifies the purpose or purposes for which such
20 moneys are appropriated and the amount or amounts
21 appropriated therefor;
22 2. Limits the period within which such moneys may
23 be obligated to a period ending not more than 2 years
24 after the date of the enactment of the appropriation law;
25 and
26 3. Limits the amount which may be obligated during
27 any fiscal year to an amount which does not exceed the
28 amount by which (a) the aggregate of the amounts
29 transferred to the account of this State pursuant to
30 Section 903 of the Social Security Act exceeds (b) the
31 aggregate of the amounts used by this State pursuant to
32 this Act and charged against the amounts transferred to
33 the account of this State.
34 For purposes of paragraph (3) above, amounts obligated
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1 for administrative purposes pursuant to an appropriation
2 shall be chargeable against transferred amounts at the exact
3 time the obligation is entered into. The appropriation,
4 obligation, and expenditure or other disposition of money
5 appropriated under this subsection shall be accounted for in
6 accordance with standards established by the United States
7 Secretary of Labor.
8 Moneys appropriated as provided herein for the payment of
9 expenses of administration shall be requisitioned by the
10 Director as needed for the payment of obligations incurred
11 under such appropriation. Upon requisition, such moneys shall
12 be deposited with the State Treasurer, who shall hold such
13 moneys, as ex-officio custodian thereof, in accordance with
14 the requirements of Section 2103 and, upon the direction of
15 the Director, shall make payments therefrom pursuant to such
16 appropriation. Moneys so deposited shall, until expended,
17 remain a part of the unemployment trust fund and, if any will
18 not be expended, shall be returned promptly to the account of
19 this State in the unemployment trust fund.
20 C. The Governor is authorized to apply to the United
21 States Secretary of Labor for an advance or advances to this
22 State's account in the unemployment trust fund pursuant to
23 the conditions set forth in Title XII of the Federal Social
24 Security Act, as amended. The amount of any such advance may
25 be repaid from this State's account in the unemployment trust
26 fund provided that if the federal penalty tax avoidance
27 surcharge established by Section 1506.4 is in effect for that
28 year, any outstanding advance shall first be repaid from
29 amounts in this State's account in the unemployment trust
30 fund which were received from such surcharge by November 9 of
31 each year.
32 (Source: P.A. 86-3; 87-122.)