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91_SB0879eng SB879 Engrossed LRB9104046WHdv 1 AN ACT to amend the Unemployment Insurance Act by 2 changing Sections 1506.1 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 1506.1 and 1506.3 as follows: 7 (820 ILCS 405/1506.1) (from Ch. 48, par. 576.1) 8 Sec. 1506.1. Determination of Employer's Contribution 9 Rate. 10 A. The contribution rate for any calendar year prior to 11 1982 of each employer who has incurred liability for the 12 payment of contributions within each of the three calendar 13 years immediately preceding the calendar year for which a 14 rate is being determined shall be determined in accordance 15 with the provisions of this Act as amended and in effect on 16 October 5, 1980. 17 B. The contribution rate for calendar years 1982 and 18 1983 of each employer who has incurred liability for the 19 payment of contributions within each of the three calendar 20 years immediately preceding the calendar year for which a 21 rate is being determined shall be the product obtained by 22 multiplying the employer's benefit wage ratio for that 23 calendar year by the adjusted state experience factor for the 24 same year, provided that: 25 1. No employer's contribution rate shall be lower 26 than two-tenths of 1 percent or higher than 5.3%; and 27 2. Intermediate contribution rates between such 28 minimum and maximum rates shall be at one-tenth of 1 29 percent intervals. 30 3. If the product obtained as provided in this 31 subsection is not an exact multiple of one-tenth of 1 SB879 Engrossed -2- LRB9104046WHdv 1 percent, it shall be increased or reduced, as the case 2 may be, to the nearer multiple of one-tenth of 1 percent. 3 If such product is equally near to two multiples of 4 one-tenth of 1 percent, it shall be increased to the 5 higher multiple of one-tenth of 1 percent. If such 6 product is less than two-tenths of one percent, it shall 7 be increased to two-tenths of 1 percent, and if greater 8 than 5.3%, it shall be reduced to 5.3%. 9 The contribution rate of each employer for whom wages 10 became benefit wages during the applicable period specified 11 in Section 1503, but who paid no contributions upon wages for 12 insured work during such period on or before the date 13 designated in Section 1503, shall be 5.3%. 14 The contribution rate of each employer for whom no wages 15 became benefit wages during the applicable period specified 16 in Section 1503, and who paid no contributions upon wages for 17 insured work during such period on or before the date 18 specified in Section 1503, shall be 2.7 percent. 19 Notwithstanding the other provisions of this Section, no 20 employer's contribution rate with respect to calendar years 21 1982 and 1983 shall exceed 2.7 percent of the wages for 22 insured work paid by him during any calendar quarter, if such 23 wages paid during such calendar quarter total less than 24 $50,000. 25 C. The contribution rate for calendar years 1984, 1985 26 and 1986 of each employer who has incurred liability for the 27 payment of contributions within each of the two calendar 28 years immediately preceding the calendar year for which a 29 rate is being determined shall be the product obtained by 30 multiplying the employer's benefit wage ratio for that 31 calendar year by the adjusted state experience factor for the 32 same year, provided that: 33 1. An employer's minimum contribution rate shall be 34 the greater of: .2%; or, the product obtained by SB879 Engrossed -3- LRB9104046WHdv 1 multiplying .2% by the adjusted state experience factor 2 for the applicable calendar year. 3 2. An employer's maximum contribution rate shall be 4 the greater of 5.5% or the product of 5.5% and the 5 adjusted State experience factor for the applicable 6 calendar year except that such maximum contribution rate 7 shall not be higher than 6.3% for calendar year 1984, nor 8 be higher than 6.6% or lower than 6.4% for calendar year 9 1985, nor be higher than 6.7% or lower than 6.5% for 10 calendar year 1986. 11 3. If any product obtained in this subsection is 12 not an exact multiple of one-tenth of one percent, it 13 shall be increased or reduced, as the case may be to the 14 nearer multiple of one-tenth of one percent. If such 15 product is equally near to two multiples of one-tenth of 16 one percent, it shall be increased to the higher multiple 17 of one-tenth of one percent. 18 4. Intermediate rates between such minimum and 19 maximum rates shall be at one-tenth of one percent 20 intervals. 21 The contribution rate of each employer for whom wages 22 became benefit wages during the applicable period specified 23 in Section 1503, but who paid no contributions upon wages for 24 insured work during such period on or before the date 25 designated in Section 1503, shall be the maximum contribution 26 rate as determined by paragraph 2 of this subsection. The 27 contribution rate for each employer for whom no wages became 28 benefit wages during the applicable period on or before the 29 date specified in Section 1503, and who paid no contributions 30 upon wages for insured work during such period on or before 31 the date specified in Section 1503, shall be the greater of 32 2.7% or 2.7% times the then current adjusted state experience 33 factor as determined by the Director in accordance with the 34 provisions of Sections 1504 and 1505. SB879 Engrossed -4- LRB9104046WHdv 1 Notwithstanding, the other provisions of this Section, no 2 employer's contribution rate with respect to the calendar 3 year 1984 shall exceed 2.7 percent times the then current 4 adjusted state experience factor as determined by the 5 Director in accordance with the provisions of Sections 1504 6 and 1505 of the wages for insured work paid by him during any 7 calendar quarter, if such wages paid during such calendar 8 quarter total less than $50,000. 9 D. The contribution rate for calendar years 1987, 1988, 10 1989 and 1990 of each employer who has incurred liability for 11 the payment of contributions within each of the three 12 calendar years immediately preceding the calendar year for 13 which a rate is being determined shall be the product 14 obtained by multiplying the employer's benefit wage ratio for 15 that calendar year by the adjusted state experience factor 16 for the same year, provided, that: 17 1. An employer's minimum contribution rate shall be 18 the greater of .2% or the product obtained by multiplying 19 .2% by the adjusted State experience factor for the 20 applicable calendar year. 21 2. An employer's maximum contribution rate shall be 22 the greater of 5.5% or the product of 5.5% and the 23 adjusted State experience factor for the calendar year 24 1987 except that such maximum contribution rate shall not 25 be higher than 6.7% or lower than 6.5% and an employer's 26 maximum contribution rate for 1988, 1989 and 1990 shall 27 be the greater of 6.4% or the product of 6.4% and the 28 adjusted State experience factor for the applicable 29 calendar year. 30 3. If any product obtained in this subsection is 31 not an exact multiple of one-tenth of one percent, it 32 shall be increased or reduced, as the case may be to the 33 nearer multiple of one-tenth of 1 percent. If such 34 product is equally near to two multiples of one-tenth of SB879 Engrossed -5- LRB9104046WHdv 1 1 percent, it shall be increased to the higher multiple 2 of one-tenth of 1 percent. 3 4. Intermediate rates between such minimum and 4 maximum rates shall be at one-tenth of 1 percent 5 intervals. 6 The contribution rate of each employer for whom wages 7 became benefit wages during the applicable period specified 8 in Section 1503, but who did not report wages for insured 9 work during such period, shall be the maximum contribution 10 rate as determined by paragraph 2 of this subsection. The 11 contribution rate for each employer for whom no wages became 12 benefit wages during the applicable period specified in 13 Section 1503, and who did not report wages for insured work 14 during such period, shall be the greater of 2.7% or 2.7% 15 times the then current adjusted State experience factor as 16 determined by the Director in accordance with the provisions 17 of Sections 1504 and 1505. 18 E. The contribution rate for calendar year 1991 and each 19 calendar year thereafter of each employer who has incurred 20 liability for the payment of contributions within each of the 21 three calendar years immediately preceding the calendar year 22 for which a rate is being determined shall be the product 23 obtained by multiplying the employer's benefit ratio defined 24 by Section 1503.1 for that calendar year by the adjusted 25 state experience factor for the same year, provided that: 26 1.Except as otherwise provided in this paragraph,27 An employer's minimum contribution rate for calendar 28 years prior to 2000 shall be the greater of 0.2% or the 29 product obtained by multiplying 0.2% by the adjusted 30 state experience factor for the applicable calendar year. 31 An employer's minimum contribution rate for calendar 32 years after 1999 shall be the greater of 0.1% or the 33 product obtained by multiplying 0.1% by the adjusted 34 state experience factor for the applicable calendar year. SB879 Engrossed -6- LRB9104046WHdv 1An employer's minimum contribution rate shall be 0.1%2for calendar year 1996.3 2. An employer's maximum contribution rate shall be 4 the greater of 6.4% or the product of 6.4% and the 5 adjusted state experience factor for the applicable 6 calendar year. 7 3. If any product obtained in this subsection is 8 not an exact multiple of one-tenth of one percent, it 9 shall be increased or reduced, as the case may be to the 10 nearer multiple of one-tenth of one percent. If such 11 product is equally near to two multiples of one-tenth of 12 one percent, it shall be increased to the higher multiple 13 of one-tenth of one percent. 14 4. Intermediate rates between such minimum and 15 maximum rates shall be at one-tenth of one percent 16 intervals. 17 The contribution rate of each employer for whom wages 18 became benefit wages during the applicable period specified 19 in Section 1503 or for whom benefit payments became benefit 20 charges during the applicable period specified in Section 21 1503.1, but who did not report wages for insured work during 22 such period, shall be the maximum contribution rate as 23 determined by paragraph 2 of this subsection. The 24 contribution rate for each employer for whom no wages became 25 benefit wages during the applicable period specified in 26 Section 1503 or for whom no benefit payments became benefit 27 charges during the applicable period specified in Section 28 1503.1, and who did not report wages for insured work during 29 such period, shall be the greater of 2.7% or 2.7% times the 30 then current adjusted state experience factor as determined 31 by the Director in accordance with the provisions of Sections 32 1504 and 1505. 33 F. Notwithstanding the other provisions of this Section, 34 and pursuant to Section 271 of the Tax Equity and Fiscal SB879 Engrossed -7- LRB9104046WHdv 1 Responsibility Act of 1982, as amended, no employer's 2 contribution rate with respect to calendar years 1985, 1986, 3 1987 and 1988 shall, for any calendar quarter during which 4 the wages paid by that employer are less than $50,000, exceed 5 the following: with respect to calendar year 1985, 3.7%; with 6 respect to calendar year 1986, 4.1%; with respect to calendar 7 year 1987, 4.5%; and with respect to calendar year 1988, 8 5.0%. 9 G. Notwithstanding the other provisions of this Section, 10 no employer's contribution rate with respect to calendar year 11 1989 and each calendar year thereafter shall exceed 5.4% of 12 the wages for insured work paid by him during any calendar 13 quarter, if such wages paid during such calendar quarter 14 total less than $50,000. 15 (Source: P.A. 89-446, eff. 2-8-96.) 16 (820 ILCS 405/1506.3) (from Ch. 48, par. 576.3) 17 Sec. 1506.3. Fund building rates - Temporary 18 Administrative Funding. 19 A. Notwithstanding any other provision of this Act, the 20 following fund building rates shall be in effect for the 21 following calendar years: 22 For each employer whose contribution rate for 1988, 1989, 23 1990, the first, third, and fourth quarters of 1991, and 1992 24 through 1999, 1993, 1994, 1995, and 1997 and any calendar25year thereafterwould, in the absence of this Section, be 26 0.2% or higher, or whose contribution rate for 2000 and any 27 calendar year thereafter would, in the absence of this 28 Section, be 0.1% or higher, a contribution rate which is the 29 sum of such rate and 0.4%; 30 For each employer whose contribution rate for the second 31 quarter of 1991 would, in the absence of this Section, be 32 0.2% or higher, a contribution rate which is the sum of such 33 rate and 0.3%; SB879 Engrossed -8- LRB9104046WHdv 1For each employer whose contribution rate for 1996 would,2in the absence of this Section, be 0.1% or higher, a3contribution rate which is the sum of such rate and 0.4%;4 Notwithstanding the preceding paragraphs of this Section 5 or any other provision of this Act, except for the provisions 6 contained in Section 1500 pertaining to rates applicable to 7 employers classified under the Standard Industrial Code, no 8 employer whose total wages for insured work paid by him 9 during any calendar quarter in 1988 and any calendar year 10 thereafter are less than $50,000 shall pay contributions at a 11 rate with respect to such quarter which exceeds the 12 following: with respect to calendar year 1988, 5%; with 13 respect to 1989 and any calendar year thereafter, 5.4%. 14 Notwithstanding the preceding paragraph of this Section, 15 or any other provision of this Act, no employer's 16 contribution rate with respect to calendar years 1993 through 17 1995 shall exceed 5.4% if the employer ceased operations at 18 an Illinois manufacturing facility in 1991 and remained 19 closed at that facility during all of 1992, and the employer 20 in 1993 commits to invest at least $5,000,000 for the purpose 21 of resuming operations at that facility, and the employer 22 rehires during 1993 at least 250 of the individuals employed 23 by it at that facility during the one year period prior to 24 the cessation of its operations, provided that, within 30 25 days after the effective date of this amendatory Act of 1993, 26 the employer makes application to the Department to have the 27 provisions of this paragraph apply to it. The immediately 28 preceding sentence shall be null and void with respect to an 29 employer which by December 31, 1993 has not satisfied the 30 rehiring requirement specified by this paragraph or which by 31 December 31, 1994 has not made the investment specified by 32 this paragraph. 33 B. Notwithstanding any other provision of this Act, for 34 the second quarter of 1991, the contribution rate of each SB879 Engrossed -9- LRB9104046WHdv 1 employer as determined in accordance with Sections 1500, 2 1506.1, and subsection A of this Section shall be equal to 3 the sum of such rate and 0.1%; provided that this subsection 4 shall not apply to any employer whose rate computed under 5 Section 1506.1 for such quarter is between 5.1% and 5.3%, 6 inclusive, and who qualifies for the 5.4% rate ceiling 7 imposed by the last paragraph of subsection A for such 8 quarter. All payments made pursuant to this subsection shall 9 be deposited in the Employment Security Administrative Fund 10 established under Section 2103.1 and used for the 11 administration of this Act. 12 C. Payments received by the Director which are 13 insufficient to pay the total contributions due under the Act 14 shall be first applied to satisfy the amount due pursuant to 15 subsection B. 16 D. All provisions of this Act applicable to the 17 collection or refund of any contribution due under this Act 18 shall be applicable to the collection or refund of amounts 19 due pursuant to subsection B. 20 (Source: P.A. 88-518; 89-446, eff. 2-8-96.)