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| [ Introduced ] | [ Engrossed ] | [ House Amendment 001 ] |
92_HB4531enr HB4531 Enrolled LRB9212337WHcs 1 AN ACT in relation to unemployment insurance. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Unemployment Insurance Act is amended by 5 changing Sections 205, 211.1, 220, and 1405 and by adding 6 Section 205.1 as follows: 7 (820 ILCS 405/205) (from Ch. 48, par. 315) 8 Sec. 205. "Employer" means: 9 A. With respect to the years 1937, 1938, and 1939, any 10 employing unit which has or had in employment eight or more 11 individuals on some portion of a day, but not necessarily 12 simultaneously, and irrespective of whether the same 13 individuals are or were employed on each such day within each 14 of twenty or more calendar weeks, whether or not such weeks 15 are or were consecutive, within either the current or 16 preceding calendar year; 17 B. 1. With respect to the years 1940 through 1955, 18 inclusive, any employing unit which has or had in employment 19 six or more individuals within each of twenty or more 20 calendar weeks (but not necessarily simultaneously and 21 irrespective of whether the same individuals are or were 22 employed in each such week), whether or not such weeks are or 23 were consecutive, within either the current or preceding 24 calendar year; 25 2. With respect to the years 1956 through 1971, 26 inclusive, any employing unit which has or had in employment 27 four or more individuals within each of twenty or more 28 calendar weeks (but not necessarily simultaneously and 29 irrespective of whether the same individuals are or were 30 employed in each such week), whether or not such weeks are or 31 were consecutive, within either the current or preceding HB4531 Enrolled -2- LRB9212337WHcs 1 calendar year; 2 3. With respect to the years 1972 and thereafter, except 3 as provided in subsection K and in Section 301, any employing 4 unit which (1) pays or paid, for services in employment, 5 wages of at least $1500 within any calendar quarter in either 6 the current or preceding calendar year; or (2) has or had in 7 employment at least one individual on some portion of a day, 8 irrespective of whether the same individual is or was 9 employed on each such day, within each of twenty or more 10 calendar weeks, whether or not such weeks are or were 11 consecutive, within either the current or preceding calendar 12 year; 13 4. With respect to the years 1972 and thereafter, any 14 nonprofit organization as defined in Section 211.2, except as 15 provided in subsection K and in Section 301; 16 5. With respect to the years 1972 and thereafter, the 17 State of Illinois and each of its instrumentalities; and with 18 respect to the years 1978 and thereafter, each governmental 19 entity referred to in clause (B) of Section 211.1, except as 20 provided in Section 301; 21 6. With respect to the years 1978 and thereafter, any 22 employing unit for which service in agricultural labor is 23 performed in employment as defined in Section 211.4, except 24 as provided in subsection K and in Section 301; 25 7. With respect to the years 1978 and thereafter, any 26 employing unit for which domestic service is performed in 27 employment as defined in Section 211.5, except as provided in 28 subsection K and in Section 301; 29 C. Any individual or employing unit which succeeded to 30 the organization, trade, or business of another employing 31 unit which at the time of such succession was an employer, 32 and any individual or employing unit which succeeded to the 33 organization, trade, or business of any distinct severable 34 portion of another employing unit, which portion, if treated HB4531 Enrolled -3- LRB9212337WHcs 1 as a separate employing unit, would have been, at the time of 2 the succession, an employer under subsections A or B of this 3 Section; 4 D. Any individual or employing unit which succeeded to 5 any of the assets of an employer or to any of the assets of a 6 distinct severable portion thereof, if such portion, when 7 treated as a separate employing unit would be an employer 8 under subsections A or B of this Section, by any means 9 whatever, otherwise than in the ordinary course of business, 10 unless and until it is proven in any proceeding where such 11 issue is involved that all of the following exist: 12 1. The successor unit has not assumed a substantial 13 amount of the predecessor unit's obligations; and 14 2. The successor unit has not acquired a 15 substantial amount of the predecessor unit's good will; 16 and 17 3. The successor unit has not continued or resumed 18 a substantial part of the business of the predecessor 19 unit in the same establishment; 20 E. Any individual or employing unit which succeeded to 21 the organization, trade, or business, or to any of the assets 22 of a predecessor unit (unless and until it is proven in any 23 proceeding where such issue is involved that all the 24 conditions enumerated in subsection D of this Section exist), 25 if the experience of the successor unit subsequent to such 26 succession plus the experience of the predecessor unit prior 27 to such succession, both within the same calendar year, would 28 equal the experience necessary to constitute an employing 29 unit an employer under subsections A or B of this Section; 30 For the purposes of this subsection, the term 31 "predecessor unit" shall include any distinct severable 32 portion of an employing unit. 33 F. With respect to the years 1937 through 1955, 34 inclusive, any employing unit which together with one or more HB4531 Enrolled -4- LRB9212337WHcs 1 other employing units is owned or controlled, directly or 2 indirectly, by legally enforceable means or otherwise, by the 3 same interests, or which owns or controls one or more other 4 employing units directly or indirectly, by legally 5 enforceable means or otherwise, and which if treated as a 6 single unit with such other employing units or interests or 7 both would be an employer under subsections A or B of this 8 Section; 9 G. Any employing unit which, having become an employer 10 under subsections A, B, C, D, E, or F of this Section, has 11 not, under Section 301, ceased to be an employer; 12 H. For the effective period of its election pursuant to 13 Section 302, any other employing unit which has elected to 14 become fully subject to this Act; 15 I. Any employing unit which is an employer under Section 16 245;or17 J. Any employing unit which, having become an employer 18 under Section 245, has not, with respect to the year 1960 or 19 thereafter, ceased to be an employer under Section 301; or.20 J-1. On and after December 21, 2000, any Indian tribe 21 for which service in "employment" as defined under this Act 22 is performed. 23 K. In determining whether or not an employing unit for 24 which service other than domestic service is also performed 25 is an employer under paragraphs 3, 4, or 6 of subsection B, 26 the domestic service of an individual and the wages paid 27 therefor shall not be taken into account. In determining 28 whether or not an employing unit for which service other than 29 agricultural labor is also performed is an employer under 30 paragraphs 4 or 7 of subsection B, the service of an 31 individual in agricultural labor and the wages paid therefor 32 shall not be taken into account. An employing unit which is 33 an employer under paragraph 6 of subsection B is an employer 34 under paragraph 3 of subsection B. HB4531 Enrolled -5- LRB9212337WHcs 1 (Source: P.A. 87-1178.) 2 (820 ILCS 405/205.1 new) 3 Sec. 205.1. Indian tribe. "Indian tribe" has the meaning 4 given to that term by Section 4(e) of the Indian 5 Self-Determination and Education Assistance Act (25 U.S.C. 6 450(e)), and includes any subdivision, subsidiary, or 7 business enterprise wholly owned by such an Indian tribe. 8 (820 ILCS 405/211.1) (from Ch. 48, par. 321.1) 9 Sec. 211.1. Except as provided in Section 220, the term 10 "employment" shall include (A) service performed after 11 December 31, 1971, by an individual in the employ of this 12 State or any of its instrumentalities (and by an individual 13 in the employ of this State or any of its instrumentalities 14 and one or more other States or their instrumentalities for a 15 hospital or institution of higher education located in this 16 State), provided that such service is excluded from the 17 definition of "employment" in the Federal Unemployment Tax 18 Act solely by reason of Section 3306(c)(7) of that Act;and19 (B) service performed after December 31, 1977 by an 20 individual in the employ of this State or any of its 21 instrumentalities, or any political subdivision or municipal 22 corporation thereof or any of their instrumentalities, or any 23 instrumentality of more than one of the foregoing, or any 24 instrumentality of any of the foregoing and one or more other 25 States or political subdivisions, provided that such service 26 is excluded from the definition of "employment" in the 27 Federal Unemployment Tax Act by Section 3306(c)(7) of that 28 Act; and (C) service performed after December 20, 2000, by an 29 individual in the employ of an Indian tribe. 30 (Source: P.A. 80-2dSS-1.) 31 (820 ILCS 405/220) (from Ch. 48, par. 330) HB4531 Enrolled -6- LRB9212337WHcs 1 Sec. 220. A. The term "employment" shall not include 2 service performed prior to 1972 in the employ of this State, 3 or of any political subdivision thereof, or of any wholly 4 owned instrumentality of this State or its political 5 subdivisions. 6 B. The term "employment" shall not include service, 7 performed after 1971 and before 1978, in the employ of this 8 State or any of its instrumentalities: 9 1. In an elective position; 10 2. Of a professional or consulting nature, 11 compensated on a per diem or retainer basis; 12 3. For a State prison or other State correctional 13 institution, by an inmate of the prison or correctional 14 institution; 15 4. As part of an unemployment work-relief or 16 work-training program assisted or financed in whole or in 17 part by any Federal agency or an agency of this State, by 18 an individual receiving such work-relief or 19 work-training; 20 5. In a facility conducted for the purpose of 21 carrying out a program of rehabilitation for individuals 22 whose earning capacity is impaired by age or physical or 23 mental deficiency or injury or providing remunerative 24 work for individuals who because of their impaired 25 physical or mental capacity cannot be readily absorbed in 26 the competitive labor market, by an individual receiving 27 such rehabilitation or remunerative work; 28 6. Directly for the Illinois State Fair during its 29 active duration (including the week immediately preceding 30 and the week immediately following the Fair); 31 7. Directly and solely in connection with an 32 emergency, in fire-fighting, snow removal, flood control, 33 control of the effects of wind or flood, and the like, by 34 an individual hired solely for the period of such HB4531 Enrolled -7- LRB9212337WHcs 1 emergency; 2 8. In the Illinois National Guard, directly and 3 solely in connection with its summer training camps or 4 during emergencies, by an individual called to duty 5 solely for such purposes. 6 C. Except as provided in Section 302, the term 7 "employment" shall not include service performed in the 8 employ of a political subdivision or a municipal corporation, 9 or an instrumentality of one or more of the foregoing or of 10 this State and one or more of the foregoing. This subsection 11 shall not apply to service performed after December 31, 1977. 12 D. The term "employment" shall not include service 13 performed after December 31, 1977: 14 1. In the employ of a governmental entity referred 15 to in clause (B) of Section 211.1 if such service is 16 performed in the exercise of duties 17 a. As an elected official; 18 b. As a member of a legislative body, or a 19 member of the judiciary, of this State or a 20 political subdivision or municipal corporation; 21 c. As a member of the Illinois National Guard 22 or Air National Guard; 23 d. As a worker serving on a temporary basis in 24 case of fire, storm, snow, earthquake, flood, or 25 similar emergency; 26 e. In a position which, under or pursuant to 27 the laws of this State, is designated as a major 28 nontenured policymaking or advisory position, or as 29 a policymaking position the performance of the 30 duties of which ordinarily does not require more 31 than 8 hours per week. 32 2. As part of an unemployment work-relief or 33 work-training program assisted or financed in whole or in 34 part by any Federal agency or an agency of this State, or HB4531 Enrolled -8- LRB9212337WHcs 1 a political subdivision or municipal corporation, by an 2 individual receiving such work-relief or work-training. 3 3. In a facility conducted for the purpose of 4 carrying out a program of rehabilitation for individuals 5 whose earning capacity is impaired by age or physical or 6 mental deficiency or injury or providing remunerative 7 work for individuals who because of their impaired 8 physical or mental capacity cannot be readily absorbed in 9 the competitive labor market, by an individual receiving 10 such rehabilitation or remunerative work. 11 4. By an inmate of a custodial or penal 12 institution. 13 E. The term "employment" shall not include service 14 performed on or after January 1, 2002 in the employ of a 15 governmental entity referred to in clause (B) of Section 16 211.1 if the service is performed in the exercise of duties 17 as an election official or election worker and the amount of 18 remuneration received by the individual during the calendar 19 year for service as an election official or election worker 20 is less than $1,000. 21 F. The term "employment" shall not include service 22 performed in the employ of an Indian tribe if such service is 23 performed in the exercise of duties: 24 1. as an elected official; 25 2. as a member of a legislative body, or a member 26 of the judiciary, of that Indian tribe; 27 3. as a worker serving on a temporary basis in case 28 of fire, storm, snow, earthquake, flood, or similar 29 emergency; 30 4. in a position which, under or pursuant to tribal 31 law, is designated as a major nontenured policymaking or 32 advisory position, or as a policymaking position the 33 performance of the duties of which ordinarily does not 34 require more than 8 hours per week; HB4531 Enrolled -9- LRB9212337WHcs 1 5. as part of an unemployment work-relief or 2 work-training program assisted or financed in whole or in 3 part by any federal agency or an agency of this State, or 4 a political subdivision or municipal corporation, or an 5 Indian tribe, by an individual receiving such work-relief 6 or work training; 7 6. in a facility conducted for the purpose of 8 carrying out a program of rehabilitation for individuals 9 whose earning capacity is impaired by age or physical or 10 mental deficiency or injury or providing remunerative 11 work for individuals who because of their impaired 12 physical or mental capacity cannot be readily absorbed in 13 the competitive labor market, by an individual receiving 14 such rehabilitation or remunerative work; 15 7. by an inmate of a custodial or penal 16 institution. 17 (Source: P.A. 92-441, eff. 1-1-02.) 18 (820 ILCS 405/1405) (from Ch. 48, par. 555) 19 Sec. 1405. Financing Benefits for Employees of Local 20 Governments. A. 1. For the year 1978 and for each calendar 21 year thereafter, contributions shall accrue and become 22 payable, pursuant to Section 1400, by each governmental 23 entity (other than the State of Illinois and its wholly owned 24 instrumentalities) referred to in clause (B) of Section 25 211.1, upon the wages paid by such entity with respect to 26 employment after 1977, unless the entity elects to make 27 payments in lieu of contributions pursuant to the provisions 28 of subsection B. Notwithstanding the provisions of Sections 29 1500 to 1510, inclusive, a governmental entity which has not 30 made such election shall, for liability for contributions 31 incurred prior to January 1, 1984, pay contributions equal to 32 1 percent with respect to wages for insured work paid during 33 each such calendar year or portion of such year as may be HB4531 Enrolled -10- LRB9212337WHcs 1 applicable. As used in this subsection, the word "wages", 2 defined in Section 234, is subject to all of the provisions 3 of Section 235. 4 2. An Indian tribe for which service is exempted from 5 the federal unemployment tax under Section 3306(c)(7) of the 6 Federal Unemployment Tax Act may elect to make payments in 7 lieu of contributions in the same manner and subject to the 8 same conditions as provided in this Section with regard to 9 governmental entities, except as otherwise provided in 10 paragraphs 7, 8, and 9 of subsection B. 11 B. Any governmental entity subject to subsection A may 12 elect to make payments in lieu of contributions, in amounts 13 equal to the amounts of regular and extended benefits paid to 14 individuals, for any weeks which begin on or after the 15 effective date of the election, on the basis of wages for 16 insured work paid to them by the entity during the effective 17 period of such election. Notwithstanding the preceding 18 provisions of this subsection and the provisions of 19 subsection D of Section 1404, with respect to benefit years 20 beginning prior to July 1, 1989, any adjustment after 21 September 30, 1989 to the base period wages paid to the 22 individual by any employer shall not affect the ratio for 23 determining payments in lieu of contributions of a 24 governmental entity which has elected to make payments in 25 lieu of contributions. Provided, however, that with respect 26 to benefit years beginning on or after July 1, 1989, the 27 governmental entity shall be required to make payments equal 28 to 100% of regular benefits, including dependents' 29 allowances, and 100% of extended benefits, including 30 dependents' allowances, paid to an individual with respect to 31 benefit years beginning during the effective period of the 32 election, but only if the governmental entity: (a) is the 33 last employer as provided in Section 1502.1 and (b) paid to 34 the individual receiving benefits, wages for insured work HB4531 Enrolled -11- LRB9212337WHcs 1 during his base period. If the governmental entity described 2 in this paragraph meets the requirements of (a) but not (b), 3 with respect to benefit years beginning on or after July 1, 4 1989, it shall be required to make payments in an amount 5 equal to 50% of regular benefits, including dependents' 6 allowances, and 50% of extended benefits, including 7 dependents' allowances, paid to an individual with respect to 8 benefit years beginning during the effective period of the 9 election. 10 1. Any such governmental entity which becomes an 11 employer on January 1, 1978 pursuant to Section 205 may elect 12 to make payments in lieu of contributions for not less than 13 one calendar year beginning with January 1, 1978, provided 14 that it files its written election with the Director not 15 later than January 31, 1978. 16 2. A governmental entity newly created after January 1, 17 1978, may elect to make payments in lieu of contributions for 18 a period of not less than one calendar year beginning as of 19 the first day with respect to which it would, in the absence 20 of its election, incur liability for the payment of 21 contributions, provided that it files its written election 22 with the Director not later than 30 days immediately 23 following the end of the calendar quarter in which it has 24 been created. 25 3. A governmental entity which has incurred liability 26 for the payment of contributions for at least 2 calendar 27 years, and is not delinquent in such payment and in the 28 payment of any interest or penalties which may have accrued, 29 may elect to make payments in lieu of contributions beginning 30 January 1 of any calendar year, provided that it files its 31 written election with the Director prior to such January 1, 32 and provided, further, that such election shall be for a 33 period of not less than 2 calendar years. 34 4. An election to make payments in lieu of contributions HB4531 Enrolled -12- LRB9212337WHcs 1 shall not terminate any liability incurred by a governmental 2 entity for the payment of contributions, interest or 3 penalties with respect to any calendar quarter which ends 4 prior to the effective period of the election. 5 5. The termination by a governmental entity of the 6 effective period of its election to make payments in lieu of 7 contributions, and the filing of and subsequent action upon 8 written notices of termination of election, shall be governed 9 by the provisions of paragraphs 5 and 6 of Section 1404A, 10 pertaining to nonprofit organizations. 11 6. With respect to benefit years beginning prior to July 12 1, 1989, wages paid to an individual during his base period 13 by a governmental entity which elects to make payments in 14 lieu of contributions for less than full time work, performed 15 during the same weeks in the base period during which the 16 individual had other insured work, shall not be subject to 17 payments in lieu of contribution (upon such employer's 18 request pursuant to the regulation of the Director) so long 19 as the employer continued after the end of the base period, 20 and continues during the applicable benefit year, to furnish 21 such less than full time work to the individual on the same 22 basis and in substantially the same amount as during the base 23 period. If the individual is paid benefits with respect to a 24 week (in the applicable benefit year) after the employer has 25 ceased to furnish the work hereinabove described, the 26 governmental entity shall be liable for payments in lieu of 27 contributions with respect to the benefits paid to the 28 individual after the date on which the governmental entity 29 ceases to furnish the work. 30 7. An Indian tribe may elect to make payments in lieu of 31 contributions for calendar year 2003, provided that it files 32 its written election with the Director not later than January 33 31, 2003, and provided further that it is not delinquent in 34 the payment of any contributions, interest, or penalties. HB4531 Enrolled -13- LRB9212337WHcs 1 8. Failure of an Indian tribe to make a payment in lieu 2 of contributions, or a payment of interest or penalties due 3 under this Act, within 90 days after the Department serves 4 notice of the finality of a determination and assessment 5 shall cause the Indian tribe to lose the option of making 6 payments in lieu of contributions, effective as of the 7 calendar year immediately following the date on which the 8 Department serves the notice. Notice of the loss of the 9 option to make payments in lieu of contributions may be 10 protested in the same manner as a determination and 11 assessment under Section 2200 of this Act. 12 9. An Indian tribe that, pursuant to paragraph 8, loses 13 the option of making payments in lieu of contributions may 14 again elect to make payments in lieu of contributions for a 15 calendar year if: (a) the Indian tribe has incurred liability 16 for the payment of contributions for at least one calendar 17 year since losing the option pursuant to paragraph 8, (b) the 18 Indian tribe is not delinquent in the payment of any 19 liabilities under the Act, including interest or penalties, 20 and (c) the Indian tribe files its written election with the 21 Director not later than January 31 of the year with respect 22 to which it is making the election. 23 C. As soon as practicable following the close of each 24 calendar quarter, the Director shall mail to each 25 governmental entity which has elected to make payments in 26 lieu of contributions a Statement of the amount due from it 27 for all the regular and extended benefits paid during the 28 calendar quarter, together with the names of its workers or 29 former workers and the amounts of benefits paid to each of 30 them during the calendar quarter with respect to benefit 31 years beginning prior to July 1, 1989, on the basis of wages 32 for insured work paid to them by the governmental entity; or, 33 with respect to benefit years beginning after June 30, 1989, 34 if such governmental entity was the last employer as provided HB4531 Enrolled -14- LRB9212337WHcs 1 in Section 1502.1 with respect to a benefit year beginning 2 during the effective period of the election. All of the 3 provisions of subsection B of Section 1404 pertaining to 4 nonprofit organizations, not inconsistent with the preceding 5 sentence, shall be applicable to payments in lieu of 6 contributions by a governmental entity. 7 D. The provisions of subsections C through F, inclusive, 8 of Section 1404, pertaining to nonprofit organizations, shall 9 be applicable to each governmental entity which has elected 10 to make payments in lieu of contributions. 11 E. 1. If an Indian tribe fails to pay any liability 12 under this Act (including assessments of interest or penalty) 13 within 90 days after the Department issues a notice of the 14 finality of a determination and assessment, the Director 15 shall immediately notify the United States Internal Revenue 16 Service and the United States Department of Labor. 17 2. Notices of payment and reporting delinquencies to 18 Indian tribes shall include information that failure to make 19 full payment within the prescribed time frame: 20 a. will cause the Indian tribe to lose the 21 exemption provided by Section 3306(c)(7) of the Federal 22 Unemployment Tax Act with respect to the federal 23 unemployment tax; 24 b. will cause the Indian tribe to lose the option 25 to make payments in lieu of contributions. 26 (Source: P.A. 86-3.) 27 Section 99. Effective date. This Act takes effect upon 28 becoming law.