HB 810 — UNEMPLOYMENT INSURANCE-TECH

Any such Credit Agreement shall be fully enforceable as a valid and binding contract as and to the extent provided by applicable law.

2.

Without limiting the foregoing, such Credit Agreement, may include any of the following:

a.

Interest rates on the Bonds may vary from HB0810 Enrolled -4- LRB093 05611 WGH 05704 b time to time depending upon criteria established by the Director, which may include, without limitation:

(i) A variation in interest rates as may be necessary to cause the Bonds to be remarketed from time to time at a price equal to their principal amount plus any accrued interest;

(ii) Rates set by auctions;

or (iii) Rates set by formula.

b.

A national banking association, bank, trust company, investment banker or other financial institution may be appointed to serve as a remarketing agent in that connection, and such remarketing agent may be delegated authority by the Department to determine interest rates in accordance with criteria established by the Department.

c.

Alternative interest rates or provisions may apply during such times as the Bonds are held by the financial providers or similar persons or entities providing a Credit Agreement for those Bonds and, during such times, the interest on the Bonds may be deemed not exempt from income taxation under the Internal Revenue Code for purposes of State law, as contained in the Bond Authorization Act, relating to the permissible rate of interest to be borne thereon.

d.

Fees may be paid to the financial providers or similar persons or entities providing a Credit Agreement, including all reasonably related costs, including therein costs of enforcement and litigation (all such fees and costs being financial provider payments) and financial provider payments may be paid, without limitation, from proceeds of the Bonds being the subject of such agreements, or HB0810 Enrolled -5- LRB093 05611 WGH 05704 b from Bonds issued to refund such Bonds, provided that such financial provider payments shall be made subordinate to the payments on the Bonds.

e.

The Bonds need not be held in physical form by the financial providers or similar persons or entities providing a Credit Agreement when providing funds to purchase or carry the Bonds from others but may be represented in uncertificated form in the Credit Agreement.

f.

The debt or obligation of the Department represented by a Bond tendered for purchase to or otherwise made available to the Department thereupon acquired by either the Department or a financial provider shall not be deemed to be extinguished for purposes of State law until cancelled by the Department or its agent.

g.

Such Credit Agreement may provide for acceleration of the principal amounts due on the Bonds.

G.

"Department" means the Illinois Department of Employment Security.

H.

"Director" means the Director of the Illinois Department of Employment Security.

I.

"Fund Building Rates" are those rates imposed pursuant to Section 1506.3 of the Unemployment Insurance Act.

J.

"Fund Building Receipts" shall have the meaning provided in the Unemployment Insurance Act.

K.

"Master Bond Fund" shall mean, for any particular issuance of Bonds under this Act, the fund established for the deposit of Fund Building Receipts upon or prior to the issuance of Bonds under this Act, and during the time that any Bonds are outstanding under this Act and from which the payment of Bond Obligations and the related Bond Administrative Expenses incurred in connection with such HB0810 Enrolled -6- LRB093 05611 WGH 05704 b Bonds shall be made.

That portion of the Master Bond Fund containing the Required Fund Building Receipts Amount shall be irrevocably pledged to the timely payment of Bond Obligations and Bond Administrative Expenses due on any Bonds issued pursuant to this Act and any Credit Agreement entered in connection with the Bonds.

The Master Bond Fund shall be held separate and apart from all other State funds.

Moneys in the Master Bond Fund shall not be commingled with other State funds, but they shall be deposited as required by law and maintained in a separate account on the books of a savings and loan association, bank or other qualified financial institution.

All interest earnings on amounts within the Master Bond Fund shall accrue to the Master Bond Fund.

The Master Bond Fund may include such funds and accounts as are necessary for the deposit of bond proceeds, Fund Building Receipts, payment of principal, interest, administrative expenses, costs of issuance, in the case of bonds which are exempt from Federal taxation, rebate payments, and such other funds and accounts which may be necessary for the implementation and administration of this Act.

The Director shall be liable on her or his general official bond for the faithful performance of her or his duties as custodian of the Master Bond Fund.

Such liability on her or his official bond shall exist in addition to the liability upon any separate bond given by her or him.

All sums recovered for losses sustained by the Master Bond Fund shall be deposited into the Fund.

The Director shall report quarterly in writing to the Employment Security Advisory Board concerning the actual and anticipated deposits into and expenditures and transfers made from the Master Bond Fund.

L.

"Required Fund Building Receipts Amount" means the aggregate amount of Fund Building Receipts required to be maintained in the Master Bond Fund as set forth in Section 4I HB0810 Enrolled -7- LRB093 05611 WGH 05704 b of this Act.

Section 4.

Authority to Issue Revenue Bonds.

A.

The Department shall have the continuing power to borrow money for the purpose of carrying out the following:

1.

To reduce or avoid the need to borrow or obtain a federal advance under Section 1201, et seq., of the Social Security Act (42 U.S.C.

Section 1321), as amended, or any similar federal law;

or 2.

To refinance a previous advance received by the Department with respect to the payment of Benefits;

or 3.

To refinance, purchase, redeem, refund, advance refund or defease (including, any combination of the foregoing) any outstanding Bonds issued pursuant to this Act;

or 4.

To fund a surplus in Illinois' account in the Unemployment Trust Fund of the United States Treasury.

Paragraphs 1, 2 and 4 are inoperative on and after January 1, 2010.

B.

As evidence of the obligation of the Department to repay money borrowed for the purposes set forth in Section 4A above, the Department may issue and dispose of its interest bearing revenue Bonds and may also, from time-to-time, issue and dispose of its interest bearing revenue Bonds to purchase, redeem, refund, advance refund or defease (including, any combination of the foregoing) any Bonds at maturity or pursuant to redemption provisions or at any time before maturity.

The Director, in consultation with the Department's Employment Security Advisory Board, shall have the power to direct that the Bonds be issued.

Bonds may be issued in one or more series and under terms and conditions as needed in furtherance of the purposes of this Act.

The Illinois Finance Authority shall provide any technical, legal, or administrative services if and when requested by HB0810 Enrolled -8- LRB093 05611 WGH 05704 b the Director and the Employment Security Advisory Board with regard to the issuance of Bonds.

Such Bonds shall be issued in the name of the State of Illinois for the benefit of the Department and shall be executed by the Director.

In case any Director whose signature appears on any Bond ceases (after attaching his or her signature) to hold that office, her or his signature shall nevertheless be valid and effective for all purposes.

C.

No Bonds shall be issued without the Director's written certification that, based upon a reasonable financial analysis, the issuance of Bonds is reasonably expected to:

(i) Result in a savings to the State as compared to the cost of borrowing or obtaining an advance under Section 1201, et seq., Social Security Act (42 U.S.C.

Section 1321), as amended, or any similar federal law;

(ii) Result in terms which are advantageous to the State through refunding, advance refunding or other similar restructuring of outstanding Bonds;

or (iii) Allow the State to avoid an anticipated deficiency in the State's account in the Unemployment Trust Fund of the United States Treasury by funding a surplus in the State's account in the Unemployment Trust Fund of the United States Treasury.

D.

All such Bonds shall be payable from Fund Building Receipts.

Bonds may also be paid from (i) to the extent allowable by law, from monies in the State's account in the Unemployment Trust Fund of the United States Treasury;

and (ii) to the extent allowable by law, a federal advance under Section 1201, et seq., of the Social Security Act (42 U.S.C.

Section 1321);

and (iii) proceeds of Bonds and receipts from related credit and exchange agreements to the extent allowed by this Act and applicable legal requirements.

HB0810 Enrolled -9- LRB093 05611 WGH 05704 b E.

The maximum principal amount of the Bonds, when combined with the outstanding principal of all other Bonds issued pursuant to this Act, shall not at any time exceed $1,400,000,000, excluding all of the outstanding principal of any other Bonds issued pursuant to this Act for which payment has been irrevocably provided by refunding or other manner of defeasance.

It is the intent of this Act that the outstanding Bond authorization limits provided for in this Section 4E shall be revolving in nature, such that the amount of Bonds outstanding that are not refunded or otherwise defeased shall be included in determining the maximum amount of Bonds authorized to be issued pursuant to the Act.

F.

Such Bonds and refunding Bonds issued pursuant to this Act may bear such date or dates, may mature at such time or times not exceeding 10 years from their respective dates of issuance, and may bear interest at such rate or rates not exceeding the maximum rate authorized by the Bond Authorization Act, as amended and in effect at the time of the issuance of the Bonds.

G.

The Department may enter into a Credit Agreement pertaining to the issuance of the Bonds, upon terms which are not inconsistent with this Act and any other laws, provided that the term of such Credit Agreement shall not exceed the term of the Bonds, plus any time period necessary to cure any defaults under such Credit Agreement.

H.

Interest earnings paid to holders of the Bonds shall not be exempt from income taxes imposed by the State.

I.

While any Bond Obligations are outstanding or anticipated to come due as a result of Bonds expected to be issued in either or both of the 2 immediately succeeding calendar quarters, the Department shall collect and deposit Fund Building Receipts into the Master Bond Fund in an amount necessary to satisfy the Required Fund Building Receipts Amount prior to expending Fund Building Receipts for any HB0810 Enrolled -10- LRB093 05611 WGH 05704 b other purpose.

The Required Fund Building Receipts Amount shall be that amount necessary to ensure the marketability of the Bonds, which shall be specified in the Bond Sale Order executed by the Director in connection with the issuance of the Bonds.

J.

Holders of the Bonds shall have a first and priority claim on all Fund Building Receipts in the Master Bond Fund in parity with all other holders of the Bonds, provided that such claim may be subordinated to the provider of any Credit Agreement for any of the Bonds.

K.

To the extent that Fund Building Receipts in the Master Bond Fund are not otherwise needed to satisfy the requirements of this Act and the instruments authorizing the issuance of the Bonds, such monies shall be used by the Department, in such amounts as determined by the Director to do either or both of the following:

1.

To purchase, refinance, redeem, refund, advance refund or defease (or any combination of the foregoing) outstanding Bonds, to the extent such action is legally available and does not impair the tax exempt status of any of the Bonds which are, in fact, exempt from Federal income taxation;

or 2.

As a deposit in the State's account in the Unemployment Trust Fund of the United States Treasury.

L.

The Director shall determine the method of sale, type of bond, bond form, redemption provisions and other terms of the Bonds that, in the Director's judgment, best achieve the purposes of this Act and effect the borrowing at the lowest practicable cost, provided that those determinations are not inconsistent with this Act or other applicable legal requirements.

Those determinations shall be set forth in a document entitled "Bond Sale Order" acceptable, in form and substance, to the attorney or attorneys acting as bond counsel for the Bonds in connection with the rendering of HB0810 Enrolled -11- LRB093 05611 WGH 05704 b opinions necessary for the issuance of the Bonds and executed by the Director.

TheBond UnemploymentProceeds. Insurance Act is amended by changing Section 3200 as follows:

(820A. ILCS 405/3200) (from Ch.

The proceeds of any Bonds issued pursuant to this Act, including investment income thereon, shall be held in trust in the Master Bond Fund for the following purpose and in such amounts as determined by the Director:

1.

Paying the principal and interest on any outstanding federal advance received by the Department under Section 1201, et seq., of the Social Security Act (42 U.S.C.

Section 1321), as amended, or any similar federal law;

2.

Being deposited into the State's account in the Unemployment Trust Fund of the United States Treasury for the purpose of:

(i) avoiding anticipated deficiencies in that account or (ii) funding a surplus in that account, when doing either (i) or (ii) will result in a savings to the State or employers or both;

3.

Paying the costs of issuing or refinancing any such Bonds;

4.

Providing an appropriate reserve for any such Bonds to the extent that the Department determines that an appropriate reserve is warranted;

and 5.

Paying capitalized interest on the Bonds for the period determined necessary by the Department, not to exceed 2 years.

B.

Excess Bond proceeds remaining available after the payments and deposits required pursuant to Section 5A1 through 5A5 above have been made, may be used in the following manner as determined by the Director:

1.

To purchase, redeem or defease outstanding Bonds, to the extent such action is legally available and does not impair the tax-exempt status of any of the Bonds HB0810 Enrolled -12- LRB093 05611 WGH 05704 b which are, in fact, tax-exempt;

or 2.

To pay any scheduled interest payment or payments due on any outstanding Bonds;

or 3.

Deposited in the State's account in the Unemployment Trust Fund of the United States Treasury.

Section 6.

Bonds Not A Pledge of the State.

A.

Any Bonds issued under this Act, and any related Credit Agreement, are not a pledge of the faith and credit or moral obligation of the State or any State agency or political subdivision of the State.

All Bonds, Bond Obligations and payment obligations deriving from any Credit Agreement are payable solely as provided in Section 4D.

B.

Any Bonds and any related Credit Agreement issued under this Act must contain a conspicuous statement to the effect that:

1.

Neither the State, nor any State agency, political corporation, or political subdivision of the State, is obligated to pay the principal of or interest on the Bonds except as provided by this Act;

and 2.

Neither the faith and credit of the State or any State agency, political corporation, or political subdivision of the State, nor the moral obligation of any of them, is pledged to the payment of the principal of or interest on the Bonds.

Section 7.

State Not to Impair Bond Obligations.

While Bonds under this Act are outstanding, the State irrevocably pledges and covenants that it shall not:

A.

Take action to limit or restrict the rights of the Department to fulfill its responsibilities to pay Bond Obligations, Bond Administrative Expenses or otherwise comply with instruments entered by the Department pertaining to the issuance of the Bonds;

HB0810 Enrolled -13- LRB093 05611 WGH 05704 b B.

In any way impair the rights and remedies of the holders of the Bonds until the Bonds are fully discharged;

or C.

Reduce:

1.

The Fund Building Rates below the levels in existence effective January 1, 2004;

2.

The maximum amount includable as wages pursuant to Section 235 of the Unemployment Insurance Act below the levels in existence effective January 1, 2004;

and 3.

The Solvency Adjustments imposed pursuant to Section 1400.1 of the Unemployment Insurance Act below the levels in existence effective January 1, 2004.

Section 8.

Continuing appropriation.

This Act shall constitute an irrevocable and continuing appropriation of all amounts necessary in respect to use of Fund Building Reciepts and Bond Proceeds for purposes specified in this Act, including, without limitation, for the provision for payment of principal and interest on the Bonds and other amounts due in connection with the issuance of the Bonds pursuant to this Act, to the fullest extent such appropriation is required.

Section 9.

Director's Supplemental Authority.

The Director, on behalf of the Department, is authorized to enter into the covenants and agreements required by this Act, make any determinations, calculations, rules or other promulgations required by this Act and engage or hire the necessary attorneys, financial advisors, consultants, verification agents, trustees, underwriters, remarketing agents and other professionals necessary to carry out the purposes and intent of this Act, unless otherwise expressly specified or required under this Act.

Section 10.

No Personal Liability.

No director, officer or employee of the Department or the State shall be HB0810 Enrolled -14- LRB093 05611 WGH 05704 b personally liable as a result of exercising the rights and responsibilities granted under this Act.

Section 11.

Omnibus Bonds Acts.

With respect to instruments for the payment of money issued under this Act, it is and always has been the intention of the General Assembly (i) that the Omnibus Bond Acts are and always have been supplementary grants of power to issue instruments in accordance with the Omnibus Bond Acts, regardless of any provision of this Act that may appear to be or to have been more restrictive than those Omnibus Bond Acts, (ii) that the provisions of this Act are not a limitation on the supplementary authority granted by the Omnibus Bond Acts, and (iii) that instruments issued under this Act within the supplementary authority granted by the Omnibus Bond Acts are not invalid because of any provision of this Act that may appear to be or to have been more restrictive than those Omnibus Bond Acts.

Section 12.

Mandatory Provisions.

The provisions of this Act are mandatory and not directory.

Section 13.

Severability and inseverability.

If any provision of this Act or its application to any person or circumstance is held invalid, the invalidity of that provision or application does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, except that this Act is inseverable to the extent that if all or any substantial and material part of Sections 1 through 12 are held invalid, then the entire Act (including both new and amendatory provisions) is invalid.

Section 13.1.

The Civil Administrative Code of Illinois HB0810 Enrolled -15- LRB093 05611 WGH 05704 b is amended by changing Section 5-540 as follows:

(20 ILCS 5/5-540) (was 20 ILCS 5/6.28 and 5/7.01) Sec.

5-540.

In the Department of Employment Security.

An Employment Security Advisory Board, composed of __ - persons.

Of the __ - members of the Employment Security Advisory Board, _ - members shall be representative citizens chosen from the employee class, _ - members shall be representative citizens chosen from the employing class, and _ - members shall be representative citizens not identified with either the employing class or the employee class.

(Source:

P.A.

90-372, eff.

7-1-98;

91-239, eff.

1-1-00.) Section 13.2.

The Illinois Income Tax Act is amended by changing Section 701 as follows:

(35 ILCS 5/701) (from Ch.

120, par.

7-701) Sec.

701.

Requirement and Amount of Withholding.

(a) In General.

Every employer maintaining an office or transacting business within this State and required under the provisions of the Internal Revenue Code to withhold a tax on:

(1) compensation paid in this State (as determined under Section 304(a)(2)(B) to an individual;

or (2) payments described in subsection (b) shall deduct and withhold from such compensation for each payroll period (as defined in Section 3401 of the Internal Revenue Code) an amount equal to the amount by which such individual's compensation exceeds the proportionate part of this withholding exemption (computed as provided in Section 702) attributable to the payroll period for which such compensation is payable multiplied by a percentage equal to the percentage tax rate for individuals provided in subsection (b) of Section 201.

HB0810 Enrolled -16- LRB093 05611 WGH 05704 b (b) Payment to Residents.

Any payment (including compensation) to a resident by a payor maintaining an office or transacting business within this State (including any agency, officer, or employee of this State or of any political subdivision of this State) and on which withholding of tax is required under the provisions of the Internal Revenue Code shall be deemed to be compensation paid in this State by an employer to an employee for the purposes of Article 7 and Section 601(b)(1) to the extent such payment is included in the recipient's base income and not subjected to withholding by another state.

______________g_____________ _____s_____________________y______________________w_____________ _____l_____________________e______________________a_____________ _____a_____________________y_______________________u____________ _____i_____________________l______________________d_____________ _____l_____________________e______________________n____________ (c) Special Definitions.

Withholding shall be considered required under the provisions of the Internal Revenue Code to the extent the Internal Revenue Code either requires withholding or allows for voluntary withholding the payor and recipient have entered into such a voluntary withholding agreement.

For the purposes of Article 7 and Section 1002(c) the term "employer" includes any payor who is required to withhold tax pursuant to this Section.

(d) Reciprocal Exemption.

The Director may enter into an agreement with the taxing authorities of any state which imposes a tax on or measured by income to provide that compensation paid in such state to residents of this State shall be exempt from withholding of such tax;

in such case, any compensation paid in this State to residents of such state shall be exempt from withholding.

All reciprocal agreements shall be subject to the requirements of Section 2505-575 of the Department of Revenue Law (20 ILCS 2505/2505-575).

HB0810 Enrolled -17- LRB093 05611 WGH 05704 b (e) Notwithstanding subsection (a)(2) of this Section, no withholding is required on payments for which withholding is required under Section 3405 or 3406 of the Internal Revenue Code of 1954.

(Source:

P.A.

91-239, eff.

1-1-00;

92-846, eff.

8-23-02.) Section 13.3.

The Unemployment Insurance Act is amended by changing Sections 235, 237, 401, 601, 1401, 1502.1, 1505, 1506.3, 1507, and 2100 and adding Sections 240.1, 1400.1, 1511.1, and 2106.1 as follows:

(820 ILCS 405/235) (from Ch.

820)345) Sec.

3200.235.

TitleThe ofterm act."wages" does not include:

ThisA. Act may be cited as the Unemployment Insurance Act.

WheneverThat part of the termremuneration "unemploymentwhich, compensation"after appearsremuneration inequal thisto Act$6,000 itwith _____respect -----------to "unemploymentemployment insurance".has been paid to an individual by an employer during any calendar year after 1977 and before 1980, is paid to such individual by such employer during such calendar year;

and that part of the remuneration which, after remuneration equal to $6,500 with respect to employment has been paid to an individual by an employer during each calendar year 1980 and 1981, is paid to such individual by such employer during that calendar year;

and that part of the remuneration which, after remuneration equal to $7,000 with respect to employment has been paid to an individual by an employer during the calendar year 1982 is paid to such individual by such employer during that calendar year.

With respect to the first calendar quarter of 1983, the term "wages" shall include only the remuneration paid to an individual by an employer during such quarter with respect to employment which does not exceed $7,000.

With respect to the three calendar quarters, beginning April 1, 1983, the term "wages" shall include only the remuneration paid to an individual by an employer during such period with respect to HB0810 Enrolled -18- LRB093 05611 WGH 05704 b employment which when added to the "wages" (as defined in the preceding sentence) paid to such individual by such employer during the first calendar quarter of 1983, does not exceed $8,000.

With respect to the calendar year 1984, the term "wages" shall include only the remuneration paid to an individual by an employer during that period with respect to employment which does not exceed $8,000;

with respect to calendar years 1985, 1986 and 1987, the term "wages" shall include only the remuneration paid to such individual by such employer during that calendar year with respect to employment which does not exceed $8,500.

With respect to the calendar years 1988 through 2003 and calendar year 2005 and each calendar year thereafter, the term "wages" shall include only the remuneration paid to an individual by an employer during that period with respect to employment which does not exceed $9,000.

With respect to the calendar year 2004, the term "wages" shall include only the remuneration paid to an individual by an employer during that period with respect to employment which does not exceed ______ -------.

______e_____________ _____d_____________________h______________________w_____________ _____d_____________________r______________________i_____________ _____y_____________________d______________________o_____________ ______n____________________o_______________________w____________ _____e_____________________5______________________p_____________ _____d_____________________0______________________c_____________ _______$___________________e______________________e_____________ _____0_____________________e_____________________ _i_____________________l______________________a_____________ ______t____________________r______________________l_____________ _____e_____________________d______________________r_____________ _____d_____________________l________________________e___________ _____o_____________________a_______________________t____________ HB0810 Enrolled -19- LRB093 05611 WGH 05704 b _____a_____________________0______________________i_____________ _____d_____________________u______________________s_____________ _____c_____________________i______________________l_____________ _____t_____________________i_______________________t____________ _____t_____________________g______________________S_____________ _____e_____________________r_______________________w____________ _____y______________________c___________________ The remuneration paid to an individual by an employer with respect to employment in another State or States, upon which contributions were required of such employer under an unemployment compensation law of such other State or States, shall be included as a part of the remuneration --------- -----0---------------------$----------------------,------------- -----e-------------- herein referred to.

For the purposes of this subsection, any employing unit which succeeds to the organization, trade, or business, or to substantially all of the assets of another employing unit, or to the organization, trade, or business, or to substantially all of the assets of a distinct severable portion of another employing unit, shall be treated as a single unit with its predecessor for the calendar year in which such succession occurs, and any employing unit which is owned or controlled by the same interests which own or control another employing unit shall be treated as a single unit with the unit so owned or controlled by such interests for any calendar year throughout which such ownership or control exists.

This subsection applies only to Sections 1400, 1405A, and 1500.

B.

The amount of any payment (including any amount paid by an employer for insurance or annuities, or into a fund, to provide for any such payment), made to, or on behalf of, an individual or any of his dependents under a plan or system established by an employer which makes provision generally for individuals performing services for him (or for such individuals generally and their dependents) or for a class or HB0810 Enrolled -20- LRB093 05611 WGH 05704 b classes of such individuals (or for a class or classes of such individuals and their dependents), on account of (1) sickness or accident disability (except those sickness or accident disability payments which would be includable as "wages" in Section 3306(b)(2)(A) of the Federal Internal Revenue Code of 1954, in effect on January 1, 1985, such includable payments to be attributable in such manner as provided by Section 3306(b) of the Federal Internal Revenue Code of 1954, in effect on January 1, 1985), or (2) medical or hospitalization expenses in connection with sickness or accident disability, or (3) death.

C.

Any payment made to, or on behalf of, an employee or his beneficiary which would be excluded from "wages" by subparagraph (A), (B), (C), (D), (E), (F) or (G), of Section 3306(b)(5) of the Federal Internal Revenue Code of 1954, in effect on January 1, 1985.

D.

The amount of any payment on account of sickness or accident disability, or medical or hospitalization expenses in connection with sickness or accident disability, made by an employer to, or on behalf of, an individual performing services for him after the expiration of six calendar months following the last calendar month in which the individual performed services for such employer.

E.

Remuneration paid in any medium other than cash by an employing unit to an individual for service in agricultural labor as defined in Section 214.

F.

The amount of any supplemental payment made by an employer to an individual performing services for him, other than remuneration for services performed, under a shared work plan approved by the Director pursuant to Section 407.1.

86-1475.)90-554, eff.

12-12-97;

91-342, eff.

7-29-99.) (820 ILCS 405/237) (from Ch.

48, par.

347) Sec.

237.

__ "Base period" --------------t---------- HB0810 Enrolled -21- LRB093 05611 WGH 05704 b -----c---------------------e----------------------d------------- -----f---------------------e-----------------------o------------ -----o---------------------d----------------------t------------- ------3--------------------s----------------------,------------- -----c---------------------c----------------------u------------- -----e----------------------f---------------------b------------- -----b---------------------n----------------------r------------- -----d----------------------t---------------------b------------- -----i----------------------i---------------------r------------- -----r---------------------e----------------------n------------- -----b------------ -o---------------------r----------------------r------------- ------"------------- means the first four of the last five completed calendar quarters immediately preceding the benefit year.

___________________s_______________________b____________ _____l_____________________r______________________4_____________ _____c_____________________t______________________s_____________ _____d_____________________d_______________________s___________ _._ Notwithstanding __b__________ -----------n------------- -----r---------------------f----------------------o------------- -----r-------------, an individual, who has been awarded temporary total disability under any workers' compensation act or any occupational diseases act and does not qualify for the maximum weekly benefit amount under Section 401 because he was unemployed and awarded temporary total disability during the base period determined in accordance with _____c_______ --------------p---------, shall have his weekly benefit amount, if it is greater than the weekly benefit amount determined in accordance with ______t_______ --- -----d---------------, determined by the base period of a benefit year which began on the date of the beginning of the first week for which he was awarded temporary total disability under any workers' compensation act or occupational diseases act, provided, however, that such base HB0810 Enrolled -22- LRB093 05611 WGH 05704 b period shall not begin more than one year prior to the individual's base period as determined under s ___s_________ --- -----d--------------.

Further, any wages which had previously been used to establish a valid claim pursuant to Section 242 and with respect to which benefits have been paid shall not be included in the base period provided for in this _____c_____ ---------.

_.______________________a_____________________i_____________ _____v_____________________s______________________e_____________ _____e______________________t_____________________e_____________ _____d_____________________n______________________o_____________ _____4_____________________q______________________r_____________ _____i_____________________e_______________________t____________ _____e______________________p_____________________0____ _._ Notwithstanding the foregoing provisions of this Section, "base period" means the base period as defined in the unemployment compensation law of any State under which benefits are payable to an individual on the basis of a combination of his wages pursuant to an arrangement described in Section 2700 F.

(Source:

P.A.

85-956;

85-1009.) (820 ILCS 405/240.1 new) _e_____________________B______________________e_____________ _____t_____________________t_______________________p____________ _____o__________ (820 ILCS 405/401) (from Ch.

48, par.

401) Sec.

401.

Weekly Benefit Amount - Dependents' Allowances.

A.

With respect to any week beginning prior to April 24, 1983, an individual's weekly benefit amount shall be an amount equal to the weekly benefit amount as defined in this Act as in effect on November 30, 1982.

HB0810 Enrolled -23- LRB093 05611 WGH 05704 b B.

1.

With respect to any week beginning on or after April 24, 1983 and before January 3, 1988, an individual's weekly benefit amount shall be 48% of his prior average weekly wage, rounded (if not already a multiple of one dollar) to the next higher dollar;

provided, however, that the weekly benefit amount cannot exceed the maximum weekly benefit amount, and cannot be less than 15% of the statewide average weekly wage, rounded (if not already a multiple of one dollar) to the next higher dollar.

However, the weekly benefit amount for an individual who has established a benefit year beginning before April 24, 1983, shall be determined, for weeks beginning on or after April 24, 1983 claimed with respect to that benefit year, as provided under this Act as in effect on November 30, 1982.

With respect to any week beginning on or after January 3, 1988 and before January 1, 1993, an individual's weekly benefit amount shall be 49% of his prior average weekly wage, rounded (if not already a multiple of one dollar) to the next higher dollar;

provided, however, that the weekly benefit amount cannot exceed the maximum weekly benefit amount, and cannot be less than $51.

With respect to any week beginning on or after January 3, 1993 _______i______________________i_____________ _____r__________, an individual's weekly benefit amount shall be 49.5% of his prior average weekly wage, rounded (if not already a multiple of one dollar) to the next higher dollar;

provided, however, that the weekly benefit amount cannot exceed the maximum weekly benefit amount and cannot be less than $51.

______________t______________________g_____________ _______J___________________a______________________6_____________ _____i_____________________t______________________o_____________ ______a_____________________r_____________________d_____________ _____e______________________h_____________________e_____________ ______t______________________a____________________d_____________ _____y______________________c_____________________n_____________ HB0810 Enrolled -24- LRB093 05611 WGH 05704 b _____c_____________________a______________________e_____________ ______a____________________l______________________l_____________ _____r_____________________e______________________f_____________ _____l_____________________a______________________g_____________ _____d______________________t_____________________a_____________ _____d_____________________b______________________n_____________ _____$____ 2.

For the purposes of this subsection:

With respect to any week beginning on or after April 24, 1983, an individual's "prior average weekly wage" means the total wages for insured work paid to that individual during the 2 calendar quarters of his base period in which such total wages were highest, divided by 26.

If the quotient is not already a multiple of one dollar, it shall be rounded to the nearest dollar;

however if the quotient is equally near 2 multiples of one dollar, it shall be rounded to the higher multiple of one dollar.

"Determination date" means June 1, 1982, December 1, 1982 and December 1 of each succeeding calendar year thereafter.

However, if as of June 30, 1982, or any June 30 thereafter, the net amount standing to the credit of this State's account in the unemployment trust fund (less all outstanding advances to that account, including advances pursuant to Title XII of the federal Social Security Act) is greater than $100,000,000, "determination date" shall mean December 1 of that year and June 1 of the succeeding year.

Notwithstanding the preceding sentence, for the purposes of this Act only, there shall be no June 1 determination date in any year after 1986.

"Determination period" means, with respect to each June 1 determination date, the 12 consecutive calendar months ending on the immediately preceding December 31 and, with respect to each December 1 determination date, the 12 consecutive calendar months ending on the immediately preceding June 30.

HB0810 Enrolled -25- LRB093 05611 WGH 05704 b "Benefit period" means the 12 consecutive calendar month period beginning on the first day of the first calendar month immediately following a determination date, except that, with respect to any calendar year in which there is a June 1 determination date, "benefit period" shall mean the 6 consecutive calendar month period beginning on the first day of the first calendar month immediately following the preceding December 1 determination date and the 6 consecutive calendar month period beginning on the first day of the first calendar month immediately following the June 1 determination date.

Notwithstanding the foregoing sentence, the 6 calendar months beginning January 1, 1982 and ending June 30, 1982 shall be deemed a benefit period with respect to which the determination date shall be June 1, 1981.

"Gross wages" means all the wages paid to individuals during the determination period immediately preceding a determination date for insured work, and reported to the Director by employers prior to the first day of the third calendar month preceding that date.

"Covered employment" for any calendar month means the total number of individuals, as determined by the Director, engaged in insured work at mid-month.

"Average monthly covered employment" means one-twelfth of the sum of the covered employment for the 12 months of a determination period.

"Statewide average annual wage" means the quotient, obtained by dividing gross wages by average monthly covered employment for the same determination period, rounded (if not already a multiple of one cent) to the nearest cent.

"Statewide average weekly wage" means the quotient, obtained by dividing the statewide average annual wage by 52, rounded (if not already a multiple of one cent) to the nearest cent.

Notwithstanding any provisions of this Section to the contrary, the statewide average weekly wage for the HB0810 Enrolled -26- LRB093 05611 WGH 05704 b benefit period beginning July 1, 1982 and ending December 31, 1982 shall be the statewide average weekly wage in effect for the immediately preceding benefit period plus one-half of the result obtained by subtracting the statewide average weekly wage for the immediately preceding benefit period from the statewide average weekly wage for the benefit period beginning July 1, 1982 and ending December 31, 1982 as such statewide average weekly wage would have been determined but for the provisions of this paragraph.

Notwithstanding any provisions of this Section to the contrary, the statewide average weekly wage for the benefit period beginning April 24, 1983 and ending January 31, 1984 shall be $321 and for the benefit period beginning February 1, 1984 and ending December 31, 1986 shall be $335, and for the benefit period beginning January 1, 1987, and ending December 31, 1987, shall be $350, except that for an individual who has established a benefit year beginning before April 24, 1983, the statewide average weekly wage used in determining benefits, for any week beginning on or after April 24, 1983, claimed with respect to that benefit year, shall be $334.80, except that, for the purpose of determining the minimum weekly benefit amount under subsection B(1) for the benefit period beginning January 1, 1987, and ending December 31, 1987, the statewide average weekly wage shall be $335;

for the benefit periods January 1, 1988 through December 31, 1988, January 1, 1989 through December 31, 1989, and January 1, 1990 through December 31, 1990, the statewide average weekly wage shall be $359, $381, and $406, respectively.

Notwithstanding the preceding sentences of this paragraph, for the benefit period of calendar year 1991, the statewide average weekly wage shall be $406 plus (or minus) an amount equal to the percentage change in the statewide average weekly wage, as computed in accordance with the preceding sentences of this paragraph, between the benefit periods of HB0810 Enrolled -27- LRB093 05611 WGH 05704 b calendar years 1989 and 1990, multiplied by $406;

and, for the benefit periods of calendar years 1992 through 2003 and calendar year 2005 and each calendar year thereafter, the statewide average weekly wage, shall be the statewide average weekly wage, as determined in accordance with this sentence, for the immediately preceding benefit period plus (or minus) an amount equal to the percentage change in the statewide average weekly wage, as computed in accordance with the preceding sentences of this paragraph, between the 2 immediately preceding benefit periods, multiplied by the statewide average weekly wage, as determined in accordance with this sentence, for the immediately preceding benefit period.

F------------------r----------------------e------------- -----y---------------------0-----------------------t------------ -----i---------------------b----------------------t------------- -----t---------------------s----------------------l------------- -----e----------------------w---------------------e------------- -----i---------------------b-----------------------t------------ -----i---------------------e----------------------a------------- -----d---------------------r----------------------d------------- -----t---------------------e----------------------t------------- -----i---------------------w----------------------o------------- ------f---------------------i---------------------t------------- -----g----------------------t---------------------d------------- -----d---------------------u----------------------o------------- -----c-----------------------a--------------------l------------- ------a--------------------e-----------------------i------------ -----0---------------------u----------------------s------------- -----s---------------------c----------------------r------------- -----D---------------------n----------------------o------------- -----r---------------------s-----------------------t------------ -----r---------------------u----------------------d------------- -----J----------------------f---------------------(------------- -----,----------------------a---------------------a------------- HB0810 Enrolled -28- LRB093 05611 WGH 05704 b -----c---------------------c-----------------------b------------ ------i--------------------n----------------------i------------- -----e---------------------n----------------------h------------- -----n----------------------a---------------------l------------- -----u---------------------d----------------------t------------- -----w---------------------a----------------------e------------- -----b---------------------o----------------------i------------- -----c---------------------s-----------------------s------------ -----a---------------------a----------------------e------------- -----t---------------------s----------------------r------------- -----q---------------------i----------------------e------------- ----- However, for purposes of the Workers' Compensation Act, the statewide average weekly wage will be computed using June 1 and December 1 determination dates of each calendar year and such determination shall not be subject to the limitation of $321, $335, $350, $359, $381, $406 or the statewide average weekly wage as computed in accordance with the preceding s________ -------n---- of this paragraph.

With respect to any week beginning on or after April 24, 1983 and before January 3, 1988, "maximum weekly benefit amount" means 48% of the statewide average weekly wage, rounded (if not already a multiple of one dollar) to the nearest dollar, provided however, that the maximum weekly benefit amount for an individual who has established a benefit year beginning before April 24, 1983, shall be determined, for weeks beginning on or after April 24, 1983 claimed with respect to that benefit year, as provided under this Act as amended and in effect on November 30, 1982, except that the statewide average weekly wage used in such determination shall be $334.80.

With respect to any week beginning after January 2, 1988 and before January 1, 1993, "maximum weekly benefit amount" with respect to each week beginning within a benefit period means 49% of the statewide average weekly wage, rounded (if HB0810 Enrolled -29- LRB093 05611 WGH 05704 b not already a multiple of one dollar) to the next higher dollar.

With respect to any week beginning on or after January 3, 1993 a_____________________y________________________J___________ ____, "maximum weekly benefit amount" with respect to each week beginning within a benefit period means 49.5% of the statewide average weekly wage, rounded (if not already a multiple of one dollar) to the next higher dollar.

_i_____________________n______________________o_____________ _____r_____________________r______________________a_____________ _____i_____________________c______________________i_____________ _____i_____________________%______________________v_____________ ______r____________________a________________________d___________ _____e__________________ _i______________________b_____________________g_____________ _____r_____________________w_______________________w____________ _____c_____________________h______________________e_____________ _____s_____________________k______________________n_____________ _____p______________________t_____________________r__ C.

With respect to any week beginning on or after April 24, 1983 and before January 3, 1988, an individual to whom benefits are payable with respect to any week shall, in addition to such benefits, be paid, with respect to such week, as follows:

in the case of an individual with a nonworking spouse, 7% of his prior average weekly wage, rounded (if not already a multiple of one dollar) to the higher dollar;

provided, that the total amount payable to the individual with respect to a week shall not exceed 55% of the statewide average weekly wage, rounded (if not already a multiple of one dollar) to the nearest dollar;

and in the case of an individual with a dependent child or dependent children, 14.4% of his prior average weekly wage, rounded (if not already a multiple of one dollar) to the higher dollar;

provided, that the total amount payable to the individual HB0810 Enrolled -30- LRB093 05611 WGH 05704 b with respect to a week shall not exceed 62.4% of the statewide average weekly wage, rounded (if not already a multiple of one dollar) to the next higher dollar with respect to the benefit period beginning January 1, 1987 and ending December 31, 1987, and otherwise to the nearest dollar.

However, for an individual with a nonworking spouse or with a dependent child or children who has established a benefit year beginning before April 24, 1983, the amount of additional benefits payable on account of the nonworking spouse or dependent child or children shall be determined, for weeks beginning on or after April 24, 1983 claimed with respect to that benefit year, as provided under this Act as in effect on November 30, 1982, except that the statewide average weekly wage used in such determination shall be $334.80.

With respect to any week beginning on or after January 2, 1988 and before January 1, 1991 and any week beginning on or after January 1, 1992, and before January 1, 1993, an individual to whom benefits are payable with respect to any week shall, in addition to those benefits, be paid, with respect to such week, as follows:

in the case of an individual with a nonworking spouse, 8% of his prior average weekly wage, rounded (if not already a multiple of one dollar) to the next higher dollar, provided, that the total amount payable to the individual with respect to a week shall not exceed 57% of the statewide average weekly wage, rounded (if not already a multiple of one dollar) to the next higher dollar;

and in the case of an individual with a dependent child or dependent children, 15% of his prior average weekly wage, rounded (if not already a multiple of one dollar) to the next higher dollar, provided that the total amount payable to the individual with respect to a week shall not exceed 64% of the statewide average weekly wage, rounded (if not already a multiple of one dollar) to the next HB0810 Enrolled -31- LRB093 05611 WGH 05704 b higher dollar.

With respect to any week beginning on or after January 1, 1991 and before January 1, 1992, an individual to whom benefits are payable with respect to any week shall, in addition to the benefits, be paid, with respect to such week, as follows:

in the case of an individual with a nonworking spouse, 8.3% of his prior average weekly wage, rounded (if not already a multiple of one dollar) to the next higher dollar, provided, that the total amount payable to the individual with respect to a week shall not exceed 57.3% of the statewide average weekly wage, rounded (if not already a multiple of one dollar) to the next higher dollar;

and in the case of an individual with a dependent child or dependent children, 15.3% of his prior average weekly wage, rounded (if not already a multiple of one dollar) to the next higher dollar, provided that the total amount payable to the individual with respect to a week shall not exceed 64.3% of the statewide average weekly wage, rounded (if not already a multiple of one dollar) to the next higher dollar.

With respect to any week beginning on or after January 3, 1993, d____________________r______________________u_____________ an individual to whom benefits are payable with respect to any week shall, in addition to those benefits, be paid, with respect to such week, as follows:

in the case of an individual with a nonworking spouse, 9% of his prior average weekly wage, rounded (if not already a multiple of one dollar) to the next higher dollar, provided, that the total amount payable to the individual with respect to a week shall not exceed 58.5% of the statewide average weekly wage, rounded (if not already a multiple of one dollar) to the next higher dollar;

and in the case of an individual with a dependent child or dependent children, 16% of his prior average weekly wage, rounded (if not already a multiple of one dollar) to the next higher dollar, provided that the HB0810 Enrolled -32- LRB093 05611 WGH 05704 b total amount payable to the individual with respect to a week shall not exceed 65.5% of the statewide average weekly wage, rounded (if not already a multiple of one dollar) to the next higher dollar.

_i_____________________n______________________o_____________ _____r_____________________e______________________i_____________ _____b_____________________w______________________e_____________ _____i_____________________i______________________s_____________ ______a______________________c____________________d_____________ _____r_____________________f______________________v_____________ ______r____________________a________________________d___________ _____n_______________________p_____________________t____________ _____l_____________________w______________________k_____________ _____d_____________________d______________________,_____________ _____l_____________________o_______________________n____________ _____r_____________________e______________________h_____________ ______o____________________e______________________r_____________ _____g_____________________u______________________a_____________ _____o_____________________i______________________e_____________ ______a____________________e______________________e_____________ _______n____________________t______________________w____________ _____e_____________________m______________________)_____________ _____r_________ _i_____________________n______________________o_____________ _____r_____________________v______________________s_____________ ______r____________________e______________________o_____________ _____i_____________________s_______________________f____________ _____a_____________________w______________________s_____________ _____e_____________________k______________________n_____________ _____p______________________t_____________________r_____________ ______t____________________a_______________________w____________ _____w_____________________d______________________w_____________ _____y_____________________f______________________l_____________ _____r______________________d_____________________p_____________ HB0810 Enrolled -33- LRB093 05611 WGH 05704 b _____i_____________________o______________________n_____________ _____n_____________________e______________________e_____________ ______o____________________a_______________________r____________ _____a______________________o_____________________e_____________ _____r_____________________h______________________a_____________ _____i______________________a_____________________e_____________ _____s_____________________k______________________n_____________ _____p_____________________t_______________________d____________ _____i_____________________p______________________e_____________ _____o______________________a_____________________o_____________ _____r_____________________r______________________e_____________ _____a_____________________t______________________e_____________ _____d_____________________a______________________c_____________ ______t____________________e_______________________s____________ _____o_____________________d_______________________p____________ _____o_____________________n_______________________b____________ _____s_____________________a______________________a_____________ _____d_____________________e_______________________b____________ _____n_____________________a______________________e_____________ _____d_____________________o______________________d_____________ _____c_____________________n______________________e_____________ _____d_______________________s____________________w_____________ _____e_____________________m______________________)_____________ _____r_____________________s______________________r_____________ _____t_____________________v______________________l_____________ _____t_____________________i______________________h_____________ _____u_______________________d____________________l_____________ _____c_____________________a______________________e_____________ ______s____________________a______________________a_________ For the purposes of this subsection:

"Dependent" means a child or a nonworking spouse.

"Child" means a natural child, stepchild, or adopted child of an individual claiming benefits under this Act or a child who is in the custody of any such individual by court HB0810 Enrolled -34- LRB093 05611 WGH 05704 b order, for whom the individual is supplying and, for at least 90 consecutive days (or for the duration of the parental relationship if it has existed for less than 90 days) immediately preceding any week with respect to which the individual has filed a claim, has supplied more than one-half the cost of support, or has supplied at least 1/4 of the cost of support if the individual and the other parent, together, are supplying and, during the aforesaid period, have supplied more than one-half the cost of support, and are, and were during the aforesaid period, members of the same household;

and who, on the first day of such week (a) is under 18 years of age, or (b) is, and has been during the immediately preceding 90 days, unable to work because of illness or other disability:

provided, that no person who has been determined to be a child of an individual who has been allowed benefits with respect to a week in the individual's benefit year shall be deemed to be a child of the other parent, and no other person shall be determined to be a child of such other parent, during the remainder of that benefit year.

"Nonworking spouse" means the lawful husband or wife of an individual claiming benefits under this Act, for whom more than one-half the cost of support has been supplied by the individual for at least 90 consecutive days (or for the duration of the marital relationship if it has existed for less than 90 days) immediately preceding any week with respect to which the individual has filed a claim, but only if the nonworking spouse is currently ineligible to receive benefits under this Act by reason of the provisions of Section 500E.

An individual who was obligated by law to provide for the support of a child or of a nonworking spouse for the aforesaid period of 90 consecutive days, but was prevented by illness or injury from doing so, shall be deemed to have provided more than one-half the cost of supporting the child HB0810 Enrolled -35- LRB093 05611 WGH 05704 b or nonworking spouse for that period.

(Source:

P.A.

90-554, eff.

12-12-97;

91-342, eff.

7-29-99.) (820 ILCS 405/601) (from Ch.

48, par.

431) Sec.

601.

Voluntary leaving.

A.

An individual shall be ineligible for benefits for the week in which he has left work voluntarily without good cause attributable to the employing unit and, thereafter, until he has become reemployed and has had earnings equal to or in excess of his current weekly benefit amount in each of four calendar weeks which are either for services in employment, or have been or will be reported pursuant to the provisions of the Federal Insurance Contributions Act by each employing unit for which such services are performed and which submits a statement certifying to that fact.

B.

The provisions of this Section shall not apply to an individual who has left work voluntarily:

1.

Because he is deemed physically unable to perform his work by a licensed and practicing physician, or has left work voluntarily upon the advice of a licensed and practicing physician that assistance is necessary for the purpose of caring for his spouse, child, or parent who is in poor physical health and such assistance will not allow him to perform the usual and customary duties of his employment, and he has notified the employing unit of the reasons for his absence;

2.

To accept other bona fide work and, after such acceptance, the individual is either not unemployed in each of 2 weeks, or earns remuneration for such work equal to at least twice his current weekly benefit amount;

3.

In lieu of accepting a transfer to other work offered to the individual by the employing unit under the terms of a collective bargaining agreement or pursuant to an established employer plan, program, or policy, if the acceptance of such HB0810 Enrolled -36- LRB093 05611 WGH 05704 b other work by the individual would require the separation from that work of another individual currently performing it;

4.

Solely because of the sexual harassment of the individual by another employee.

Sexual harassment means (1) unwelcome sexual advances, requests for sexual favors, sexually motivated physical contact or other conduct or communication which is made a term or condition of the employment or (2) the employee's submission to or rejection of such conduct or communication which is the basis for decisions affecting employment, or (3) when such conduct or communication has the purpose or effect of substantially interfering with an individual's work performance or creating an intimidating, hostile, or offensive working environment and the employer knows or should know of the existence of the harassment and fails to take timely and appropriate action;

5.

Which he had accepted after separation from other work, and the work which he left voluntarily would be deemed unsuitable under the provisions of Section 603;

_- _._______________________i____________________w_____________ _____m_____________________o______________________g_____________ _____t_____________________e______________________t_____________ _____t_____________________1______________________c_____________ _____a_____________________s______________________o_______ _o_____________________h______________________e_____________ _______b___________________n______________________c_____________ _____n_____________________e____________ _________________c______________________u_____________ _e_____________________u______________________i________ _________________r________________ ____________r_________________________o__________ _________________e______________________d_____________ _________________s____________ ____________i______________________i_____________ _________________o____________________ HB0810 Enrolled -37- LRB093 05611 WGH 05704 b ______________d____________________h_____________ ____________ ____________e______________________e_____________ __________________w______________________o____________ _________________w_______ _b_____________________a______________________p_____________ _____r_____________________d______________________e_____________ _____t______________________e_______________________p___________ _____m_____________________a______________________o_____________ _____a____________________ _c_____________________n______________________t_____________ _____n_____________________l______________________n_____________ _____d_____________________'______________________c_____________ _____n______________________d_____________________r_____________ _____n_____________________g______________________l__ (Source:

P.A.

83-197.) (820 ILCS 405/1400.1 new) _e_____________________y______________________s_____________ _____o_____________________s______________________a_____________ _____t_____________________e______________________c_____________ _____l_____________________e_______________________a____________ ______a____________________u______________________n_____________ _____t_____________________l_______________________a____________ ______t____________________e____________________ _h_____________________e______________________a_____________ _____t_____________________n______________________t_____________ _____2_____________________o____ _f_______________________t_____________________i____________ _____0_____________________e______________________e_____________ ______a____________________0______________________c_____________ ______b__________________ _f_____________________u______________________e_____________ _____e_____________________0______________________,_____________ HB0810 Enrolled -38- LRB093 05611 WGH 05704 b _____b______________________b_____________________u_____________ _____0_____________________w______________________l_____________ _____u____ _f_______________________t____________________s_____________ _____e_____________________b______________________0_____________ ______b____________________l______________________u_____________ ______a____________________j______________________%___________ _f_____________________u______________________e_____________ _____e_____________________0______________________,_____________ _____b______________________b_____________________u_____________ ______a____________________j_______________________a_________ _f_______________________t____________________s_____________ _____e_____________________0______________________,_____________ _____b_______________________b____________________e_____________ _______b____________________a_____________________s_____________ _____u____ _f_____________________u______________________e_____________ _____e_____________________0______________________u_____________ _____2_____________________t______________________5_____________ _____a______________________b_________________ (820 ILCS 405/1401) (from Ch.

48, par.

551) Sec.

1401.

Interest.

Any employer who shall fail to pay any contributions (including any amounts due pursuant to Section 1506.3 o-----------1------) when required of him by the provisions of this Act and the rules and regulations of the Director, whether or not the amount thereof has been determined and assessed by the Director, shall pay to the Director, in addition to such contribution, interest thereon at the rate of one percent (1%) per month and one-thirtieth (1/30) of one percent (1%) for each day or fraction thereof computed from the day upon which said contribution became due.

After 1981, such interest shall accrue at the rate of 2% per month, computed at the rate of 12/365 of 2% for each day HB0810 Enrolled -39- LRB093 05611 WGH 05704 b or fraction thereof, upon any unpaid contributions which become due, provided that, after 1987, for the purposes of calculating interest due under this Section only, payments received more than 30 days after such contributions become due shall be deemed received on the last day of the month preceding the month in which they were received except that, if the last day of such preceding month is less than 30 days after the date that such contributions became due, then such payments shall be deemed to have been received on the 30th day after the date such contributions became due.

However, all or part of any interest may be waived by the Director for good cause shown.

(Source:

P.A.

85-956;

86-1367.) (820 ILCS 405/1502.1) (from Ch.

48, par.

572.1) Sec.

1502.1.

Employer's benefit charges.

A.

Benefit charges which result from payments to any claimant made on or after July 1, 1989 shall be charged:

1.

For benefit years beginning prior to July 1, 1989, to each employer who paid wages to the claimant during his base period;

2.

For benefit years beginning on or after July 1, 1989 but before January 1, 1993, to the later of:

a.

the last employer prior to the beginning of the claimant's benefit year:

i.

from whom the claimant was separated or who, by reduction of work offered, caused the claimant to become unemployed as defined in Section 239, and, ii.

for whom the claimant performed services in employment, on each of 30 days whether or not such days are consecutive, provided that the wages for such services were earned during the period from the beginning of HB0810 Enrolled -40- LRB093 05611 WGH 05704 b the claimant's base period to the beginning of the claimant's benefit year;

but that employer shall not be charged if:

(1) the claimant's last separation from that employer was a voluntary leaving without good cause, as the term is used in Section 601A or under the circumstances described in paragraphs 1 and 2 of Section 601B;

or (2) the claimant's last separation from that employer was a discharge for misconduct or a felony or theft connected with his work from that employer, as these terms are used in Section 602;

or (3) after his last separation from that employer, prior to the beginning of his benefit year, the claimant refused to accept an offer of or to apply for suitable work from that employer without good cause, as these terms are used in Section 603;

or (4) the claimant, following his last separation from that employer, prior to the beginning of his benefit year, is ineligible or would have been ineligible under Section 612 if he has or had had base period wages from the employers to which that Section applies;

or (5) the claimant subsequently performed services for at least 30 days for an individual or organization which is not an employer subject to this Act;

or b.

the single employer who pays wages to the claimant that allow him to requalify for benefits HB0810 Enrolled -41- LRB093 05611 WGH 05704 b after disqualification under Section 601, 602 or 603, if:

i.

the disqualifying event occurred prior to the beginning of the claimant's benefit year, and ii.

the requalification occurred after the beginning of the claimant's benefit year, and iii.

even if the 30 day requirement given in this paragraph is not satisfied;

but iv.

the requalifying employer shall not be charged if the claimant is held ineligible with respect to that requalifying employer under Section 601, 602 or 603.

3.

For benefit years beginning on or after January 1, 1993, with respect to each week for which benefits are paid, to the later of:

a.

the last employer:

i.

from whom the claimant was separated or who, by reduction of work offered, caused the claimant to become unemployed as defined in Section 239, and ii.

for whom the claimant performed services in employment, on each of 30 days whether or not such days are consecutive, provided that the wages for such services were earned since the beginning of the claimant's base period;

but that employer shall not be charged if:

(1) the claimant's separation from that employer was a voluntary leaving without good cause, as the term is used in Section 601A or under the circumstances described in paragraphs 1,_ --d- 2_______ of HB0810 Enrolled -42- LRB093 05611 WGH 05704 b Section 601B;

or (2) the claimant's separation from that employer was a discharge for misconduct or a felony or theft connected with his work from that employer, as these terms are used in Section 602;

or (3) the claimant refused to accept an offer of or to apply for suitable work from that employer without good cause, as these terms are used in Section 603 (but only for weeks following the refusal of work);

or (4) the claimant subsequently performed services for at least 30 days for an individual or organization which is not an employer subject to this Act;

or (5) the claimant, following his separation from that employer, is ineligible or would have been ineligible under Section 612 if he has or had had base period wages from the employers to which that Section applies (but only for the period of ineligibility or potential ineligibility);

or b.

the single employer who pays wages to the claimant that allow him to requalify for benefits after disqualification under Section 601, 602, or 603, even if the 30 day requirement given in this paragraph is not satisfied;

but the requalifying employer shall not be charged if the claimant is held ineligible with respect to that requalifying employer under Section 601, 602, or 603.

B.

Whenever a claimant is ineligible pursuant to Section 614 on the basis of wages paid during his base period, any HB0810 Enrolled -43- LRB093 05611 WGH 05704 b days on which such wages were earned shall not be counted in determining whether that claimant performed services during at least 30 days for the employer that paid such wages as required by paragraphs 2 and 3 of subsection A.

C.

If no employer meets the requirements of paragraph 2 or 3 of subsection A, then no employer will be chargeable for any benefit charges which result from the payment of benefits to the claimant for that benefit year.

D.

Notwithstanding the preceding provisions of this Section, no employer shall be chargeable for any benefit charges which result from the payment of benefits to any claimant after the effective date of this amendatory Act of 1992 where the claimant's separation from that employer occurred as a result of his detention, incarceration, or imprisonment under State, local, or federal law.

E.

For the purposes of Sections 302, 409, 701, 1403, 1404, 1405 and 1508.1, last employer means the employer that:

1.

is charged for benefit payments which become benefit charges under this Section, or 2.

would have been liable for such benefit charges if it had not elected to make payments in lieu of contributions.

(Source:

P.A.

86-3;

87-1178.) (820 ILCS 405/1505) (from Ch.

48, par.

575) Sec.

1505.

Adjustment of state experience factor.

The state experience factor shall be adjusted in accordance with the following provisions:

A.

This subsection shall apply to each calendar year prior to 1980 for which a state experience factor is being determined.

For every $7,000,000 (or fraction thereof) by which the amount standing to the credit of this State's account in the unemployment trust fund as of June 30 of the calendar year HB0810 Enrolled -44- LRB093 05611 WGH 05704 b immediately preceding the calendar year for which the state experience factor is being determined falls below $450,000,000, the state experience factor for the succeeding calendar year shall be increased 1 percent absolute.

For every $7,000,000 (or fraction thereof) by which the amount standing to the credit of this State's account in the unemployment trust fund as of June 30 of the calendar year immediately preceding the calendar year for which the state experience factor is being determined exceeds $450,000,000, the state experience factor for the succeeding year shall be reduced 1 percent absolute.

B.

This subsection shall apply to the calendar years 1980 through 1987, for which the state experience factor is being determined.

For every $12,000,000 (or fraction thereof) by which the amount standing to the credit of this State's account in the unemployment trust fund as of June 30 of the calendar year immediately preceding the calendar year for which the state experience factor is being determined falls below $750,000,000, the state experience factor for the succeeding calendar year shall be increased 1 percent absolute.

For every $12,000,000 (or fraction thereof) by which the amount standing to the credit of this State's account in the unemployment trust fund as of June 30 of the calendar year immediately preceding the calendar year for which the state experience factor is being determined exceeds $750,000,000, the state experience factor for the succeeding year shall be reduced 1 percent absolute.

C.

This subsection shall apply to the calendar year 1988 and each calendar year thereafter, for which the state experience factor is being determined.

1.

For every $50,000,000 (or fraction thereof) by which the adjusted trust fund balance falls below ___ _a_____________________t_____________________ $------------, HB0810 Enrolled -45- LRB093 05611 WGH 05704 b the state experience factor for the succeeding year shall be increased one percent absolute.

For every $50,000,000 (or fraction thereof) by which the adjusted trust fund balance exceeds ___________ _a_____________________n_________________ ----,--------, the state experience factor for the succeeding year shall be decreased by one percent absolute.

_________________n______________________y_____________ _0_____________________T______________________c_____________ _0_____________________T______________________c_____________ _0_____________________T______________________c_____________ _0______________________y_____________________,_____________ 2.

For the purposes of this subsection:

"Net trust fund balance" is the amount standing to the credit of this State's account in the unemployment trust fund as of June 30 of the calendar year immediately preceding the year for which a state experience factor is being determined.

"Adjusted trust fund balance" is the net trust fund balance minus the sum of the benefit reserves for fund building for July 1, 1987 through June 30 of the year prior to the year for which the state experience factor is being determined.

The adjusted trust fund balance shall not be less than zero.

If the preceding calculation results in a number which is less than zero, the amount by which it is less than zero shall reduce the sum of the benefit reserves for fund building for subsequent years.

For the purpose of determining the state experience factor for 1989 and for each calendar year thereafter, the following "benefit reserves for fund building" shall apply for each state experience factor calculation in which that 12 month period is applicable:

a.

For the 12 month period ending on June 30, HB0810 Enrolled -46- LRB093 05611 WGH 05704 b 1988, the "benefit reserve for fund building" shall be 8/104th of the total benefits paid from January 1, 1988 through June 30, 1988.

b.

For the 12 month period ending on June 30, 1989, the "benefit reserve for fund building" shall be the sum of:

i.

8/104ths of the total benefits paid from July 1, 1988 through December 31, 1988, plus ii.

4/108ths of the total benefits paid from January 1, 1989 through June 30, 1989.

c.

For the 12 month period ending on June 30, 1990, the "benefit reserve for fund building" shall be 4/108ths of the total benefits paid from July 1, 1989 through December 31, 1989.

d.

For 1992 and for each calendar year thereafter, the "benefit reserve for fund building" for the 12 month period ending on June 30, 1991 and for each subsequent 12 month period shall be zero.

3.

Notwithstanding the preceding provisions of this subsection, _________n______________________u_________ the state experience factor shall not be increased or decreased by more than 15 percent absolute.

D.

Notwithstanding the provisions of subsection C, the adjusted state experience factor:

1.

Shall be 111 percent for calendar year 1988;

2.

Shall not be less than 75 percent nor greater than 135 percent for calendar _____ ---- 1989 t_______ _0______________________l_____________________g_____________ _5_____________________e_________ and each calendar year thereafter;

3.

Shall not be decreased by more than 5 percent absolute for any calendar year, beginning in calendar year 1989 and through calendar year 1992, by more than 6% HB0810 Enrolled -47- LRB093 05611 WGH 05704 b absolute for calendar years 1993 through 1995, --- by more than 10% absolute for calendar __a___ ---- 1999 _h_____________________r______________________f_____________ _e_________ and each calendar year thereafter, from the adjusted state experience factor of the calendar year preceding the calendar year for which the adjusted state experience factor is being determined;

4.

Shall not be increased by more than 15% absolute for calendar year 1993, by more than 14% absolute for calendar years 1994 and 1995, --- by more than 10% absolute for calendar y _____ ---- 1999 ______h_____________ _o______________________f_____________________0__ and each calendar year thereafter, from the adjusted state experience factor for the calendar year preceding the calendar year for which the adjusted state experience factor is being determined;

5.

Shall be 100% for calendar years 1996, 1997, and 1998.

E.

The amount standing to the credit of this State's account in the unemployment trust fund as of June 30 shall be deemed to include as part thereof (a) any amount receivable on that date from any Federal governmental agency, or as a payment in lieu of contributions under the provisions of Sections 1403 and 1405 B and paragraph 2 of Section 302C, in reimbursement of benefits paid to individuals, and (b) amounts credited by the Secretary of the Treasury of the United States to this State's account in the unemployment trust fund pursuant to Section 903 of the Federal Social Security Act, as amended, including any such amounts which have been appropriated by the General Assembly in accordance with the provisions of Section 2100 B for expenses of administration, except any amounts which have been obligated on or before that date pursuant to such appropriation.