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91_HB2652
LRB9102430WHdv
1 AN ACT to amend the Unemployment Insurance Act by
2 changing Sections 1500 and 1506.3.
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 Sections 1500 and 1506.3 as follows:
7 (820 ILCS 405/1500) (from Ch. 48, par. 570)
8 Sec. 1500. Rate of contribution.
9 A. For the six months' period beginning July 1, 1937,
10 and for each of the calendar years 1938 to 1959, inclusive,
11 each employer shall pay contributions on wages at the
12 percentages specified in or determined in accordance with the
13 provisions of this Act as amended and in effect on July 11,
14 1957.
15 B. For the calendar years 1960 through 1983, each
16 employer shall pay contributions equal to 2.7 percent with
17 respect to wages for insured work paid during each such
18 calendar year, except that the contribution rate of each
19 employer who has incurred liability for the payment of
20 contributions within each of the three calendar years
21 immediately preceding the calendar year for which a rate is
22 being determined, shall be determined as provided in Sections
23 1501 to 1507, inclusive.
24 For the calendar year 1984 and each calendar year
25 thereafter, each employer shall pay contributions at a
26 percentage rate equal to the greatest of 2.7%, or 2.7%
27 multiplied by the current adjusted State experience factor,
28 as determined for each calendar year by the Director in
29 accordance with the provisions of Sections 1504 and 1505, or
30 the average contribution rate for his major classification in
31 the Standard Industrial Code, or another classification
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1 sanctioned by the United States Department of Labor and
2 prescribed by the Director by rule, with respect to wages for
3 insured work paid during such year. The Director of
4 Employment Security shall determine for calendar year 1984
5 and each calendar year thereafter by a method pursuant to
6 adopted rules each individual employer's industrial code and
7 the average contribution rate for each major classification
8 in the Standard Industrial Code, or each other classification
9 sanctioned by the United States Department of Labor and
10 prescribed by the Director by rule. Notwithstanding the
11 preceding provisions of this paragraph, the contribution rate
12 for calendar years 1984, 1985 and 1986 of each employer who
13 has incurred liability for the payment of contributions
14 within each of the two calendar years immediately preceding
15 the calendar year for which a rate is being determined, and
16 the contribution rate for calendar year 1987 and each
17 calendar year thereafter of each employer who has incurred
18 liability for the payment of contributions within each of the
19 three calendar years immediately preceding the calendar year
20 for which a rate is being determined shall be determined as
21 provided in Sections 1501 to 1507, inclusive. Provided,
22 however, that the contribution rate for calendar years 1989
23 and 1990 of each employer who has had experience with the
24 risk of unemployment for at least 13 consecutive months
25 ending June 30 of the preceding calendar year shall be a rate
26 determined in accordance with this Section or a rate
27 determined as if it had been calculated in accordance with
28 Sections 1501 through 1507, inclusive, whichever is greater,
29 except that for purposes of calculating the benefit wage
30 ratio as provided in Section 1503, such benefit wage ratio
31 shall be a percentage equal to the total of benefit wages for
32 the 12 consecutive calendar month period ending on the above
33 preceding June 30, divided by the total wages for insured
34 work subject to the payment of contributions under Sections
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1 234, 235 and 245 for the same period and provided, further,
2 however, that the contribution rate for calendar year 1991
3 and for each calendar year thereafter of each employer who
4 has had experience with the risk of unemployment for at least
5 13 consecutive months ending June 30 of the preceding
6 calendar year shall be a rate determined in accordance with
7 this Section or a rate determined as if it had been
8 calculated in accordance with Sections 1501 through 1507,
9 inclusive, whichever is greater, except that for purposes of
10 calculating the benefit ratio as provided in Section 1503.1,
11 such benefit ratio shall be a percentage equal to the total
12 of benefit charges for the 12 consecutive calendar month
13 period ending on the above preceding June 30, multiplied by
14 the benefit conversion factor applicable to such year,
15 divided by the total wages for insured work subject to the
16 payment of contributions under Sections 234, 235 and 245 for
17 the same period.
18 C. Except as expressly provided in this Act, the
19 provisions of Sections 1500 to 1510, inclusive, do not apply
20 to any nonprofit organization for any period with respect to
21 which it does not incur liability for the payment of
22 contributions by reason of having elected to make payments in
23 lieu of contributions, or to any political subdivision or
24 municipal corporation for any period with respect to which it
25 is not subject to payments in lieu of contributions under the
26 provisions of paragraph 1 of Section 302C by reason of having
27 elected to make payments in lieu of contributions under
28 paragraph 2 of that Section or to any governmental entity
29 referred to in clause (B) of Section 211.1. Wages paid to an
30 individual which are subject to contributions under Section
31 1405 A, or on the basis of which benefits are paid to him
32 which are subject to payment in lieu of contributions under
33 Sections 1403, 1404, or 1405 B, or under paragraph 2 of
34 Section 302C, shall not become benefit wages or benefit
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1 charges under the provisions of Sections 1501 or 1501.1,
2 respectively, except for purposes of determining a rate of
3 contribution for 1984 and each calendar year thereafter for
4 any governmental entity referred to in clause (B) of Section
5 211.1 which does not elect to make payments in lieu of
6 contributions.
7 D. If an employer's business is closed solely because of
8 the entrance of one or more of the owners, partners,
9 officers, or the majority stockholder into the armed forces
10 of the United States, or of any of its allies, or of the
11 United Nations, and, if the business is resumed within two
12 years after the discharge or release of such person or
13 persons from active duty in the armed forces, the employer
14 will be deemed to have incurred liability for the payment of
15 contributions continuously throughout such period. Such an
16 employer, for the purposes of Section 1506.1, will be deemed
17 to have paid contributions upon wages for insured work during
18 the applicable period specified in Section 1503 on or before
19 the date designated therein, provided that no wages became
20 benefit wages during the applicable period specified in
21 Section 1503.
22 (Source: P.A. 85-956.)
23 (820 ILCS 405/1506.3) (from Ch. 48, par. 576.3)
24 Sec. 1506.3. Fund building rates - Temporary
25 Administrative Funding.
26 A. Notwithstanding any other provision of this Act, the
27 following fund building rates shall be in effect for the
28 following calendar years:
29 For each employer whose contribution rate for 1988, 1989,
30 1990, the first, third, and fourth quarters of 1991, 1992,
31 1993, 1994, 1995, and 1997 and any calendar year thereafter
32 would, in the absence of this Section, be 0.2% or higher, a
33 contribution rate which is the sum of such rate and 0.4%;
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1 For each employer whose contribution rate for the second
2 quarter of 1991 would, in the absence of this Section, be
3 0.2% or higher, a contribution rate which is the sum of such
4 rate and 0.3%;
5 For each employer whose contribution rate for 1996 would,
6 in the absence of this Section, be 0.1% or higher, a
7 contribution rate which is the sum of such rate and 0.4%;
8 Notwithstanding the preceding paragraphs of this Section
9 or any other provision of this Act, except for the provisions
10 contained in Section 1500 pertaining to rates applicable to
11 employers classified under the Standard Industrial Code, or
12 another classification system sanctioned by the United States
13 Department of Labor and prescribed by the Director by rule,
14 no employer whose total wages for insured work paid by him
15 during any calendar quarter in 1988 and any calendar year
16 thereafter are less than $50,000 shall pay contributions at a
17 rate with respect to such quarter which exceeds the
18 following: with respect to calendar year 1988, 5%; with
19 respect to 1989 and any calendar year thereafter, 5.4%.
20 Notwithstanding the preceding paragraph of this Section,
21 or any other provision of this Act, no employer's
22 contribution rate with respect to calendar years 1993 through
23 1995 shall exceed 5.4% if the employer ceased operations at
24 an Illinois manufacturing facility in 1991 and remained
25 closed at that facility during all of 1992, and the employer
26 in 1993 commits to invest at least $5,000,000 for the purpose
27 of resuming operations at that facility, and the employer
28 rehires during 1993 at least 250 of the individuals employed
29 by it at that facility during the one year period prior to
30 the cessation of its operations, provided that, within 30
31 days after the effective date of this amendatory Act of 1993,
32 the employer makes application to the Department to have the
33 provisions of this paragraph apply to it. The immediately
34 preceding sentence shall be null and void with respect to an
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1 employer which by December 31, 1993 has not satisfied the
2 rehiring requirement specified by this paragraph or which by
3 December 31, 1994 has not made the investment specified by
4 this paragraph.
5 B. Notwithstanding any other provision of this Act, for
6 the second quarter of 1991, the contribution rate of each
7 employer as determined in accordance with Sections 1500,
8 1506.1, and subsection A of this Section shall be equal to
9 the sum of such rate and 0.1%; provided that this subsection
10 shall not apply to any employer whose rate computed under
11 Section 1506.1 for such quarter is between 5.1% and 5.3%,
12 inclusive, and who qualifies for the 5.4% rate ceiling
13 imposed by the last paragraph of subsection A for such
14 quarter. All payments made pursuant to this subsection shall
15 be deposited in the Employment Security Administrative Fund
16 established under Section 2103.1 and used for the
17 administration of this Act.
18 C. Payments received by the Director which are
19 insufficient to pay the total contributions due under the Act
20 shall be first applied to satisfy the amount due pursuant to
21 subsection B.
22 D. All provisions of this Act applicable to the
23 collection or refund of any contribution due under this Act
24 shall be applicable to the collection or refund of amounts
25 due pursuant to subsection B.
26 (Source: P.A. 88-518; 89-446, eff. 2-8-96.)