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91_HB2655
LRB9102431WHdv
1 AN ACT to amend the Unemployment Insurance Act by
2 changing Section 1507.
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 1507 as follows:
7 (820 ILCS 405/1507) (from Ch. 48, par. 577)
8 Sec. 1507. Contribution rates of successor and
9 predecessor employing units.
10 A. Whenever any employing unit succeeds to substantially
11 all of the employing enterprises of another employing unit,
12 then in determining contribution rates for any calendar year,
13 the experience rating record of the predecessor prior to the
14 succession shall be transferred to the successor and
15 thereafter it shall not be treated as the experience rating
16 record of the predecessor, except as provided in subsection
17 B. For the purposes of this Section, such experience rating
18 record shall consist of all years during which liability for
19 the payment of contributions was incurred by the predecessor
20 prior to the succession, all benefit wages based upon wages
21 paid by the predecessor prior to the succession, all benefit
22 charges based on benefits paid by the predecessor prior to
23 the succession, and all wages for insured work paid by the
24 predecessor prior to the succession.
25 B. The provisions of this subsection shall be applicable
26 only to the determination of contribution rates for the
27 calendar year 1956 and for each calendar year thereafter.
28 Whenever any employing unit has succeeded to substantially
29 all of the employing enterprises of another employing unit,
30 but the predecessor employing unit has retained a distinct
31 severable portion of its employing enterprises or whenever
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1 any employing unit has succeeded to a distinct severable
2 portion which is less than substantially all of the employing
3 enterprises of another employing unit, the successor
4 employing unit shall acquire the experience rating record
5 attributable to the portion to which it has succeeded, and
6 the predecessor employing unit shall retain the experience
7 rating record attributable to the portion which it has
8 retained, if--
9 1. The employing unit which desires to acquire or
10 retain such a distinct severable portion of such
11 experience rating record has filed such reports giving
12 notice of the transfer as may be required by the Director
13 within 120 days of such transfer; and
14 2. It files a written application for such
15 experience rating record which is joined in by the
16 employing unit which is then entitled to such experience
17 rating record; and
18 2. 3. The joint application contains such
19 information as the Director shall by regulation prescribe
20 which will show that such experience rating record is
21 identifiable and segregable and, therefore, capable of
22 being transferred; and
23 3. 4. The joint application is filed prior to
24 whichever of the following dates is the latest: (a) July
25 1, 1956; (b) one year after the date of the succession;
26 or (c) the date that the rate determination of the
27 employing unit which has applied for such experience
28 rating record has become final for the calendar year
29 immediately following the calendar year in which the
30 succession occurs. The filing of a timely joint
31 application shall not affect any rate determination which
32 has become final, as provided by Section 1509.
33 If all of the foregoing requirements are met, then the
34 Director shall transfer such experience rating record to the
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1 employing unit which has applied therefor, and it shall not
2 be treated as the experience rating record of the employing
3 unit which has joined in the application.
4 Whenever any employing unit is reorganized into two or
5 more employing units, and any of such employing units are
6 owned or controlled by the same interests which owned or
7 controlled the predecessor prior to the reorganization, and
8 the provisions of this subsection become applicable thereto,
9 then such affiliated employing units during the period of
10 their affiliation shall be treated as a single employing unit
11 for the purpose of determining their rates of contributions.
12 C. For the calendar year in which a succession occurs
13 which results in the total or partial transfer of a
14 predecessor's experience rating record, the contribution
15 rates of the parties thereto shall be determined in the
16 following manner:
17 1. If any of such parties had a contribution rate
18 applicable to it for that calendar year, it shall
19 continue with such contribution rate.
20 2. If any successor had no contribution rate
21 applicable to it for that calendar year, and only one
22 predecessor is involved, then the contribution rate of
23 the successor shall be the same as that of its
24 predecessor.
25 3. If any successor had no contribution rate
26 applicable to it for that calendar year, and two or more
27 predecessors are involved, then the contribution rate of
28 the successor shall be computed, on the combined
29 experience rating records of the predecessors or on the
30 appropriate part of such records if any partial transfer
31 is involved, as provided in Sections 1500 to 1507,
32 inclusive.
33 4. Notwithstanding the provisions of paragraphs 2
34 and 3 of this subsection, if any succession occurs prior
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1 to the calendar year 1956 and the successor acquires part
2 of the experience rating record of the predecessor as
3 provided in subsection B of this Section, then the
4 contribution rate of that successor for the calendar year
5 in which such succession occurs shall be 2.7 percent.
6 (Source: P.A. 90-554, eff. 12-12-97.)