Bill Text: IL SB1491 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Unemployment Insurance Act. Provides that no later than 3 years after the date of an overpayment, rather than 3 years after notification by the Director of an overpayment, an employing unit may file a claim for an adjustment in contributions or a refund. Provides that the Director shall provide statements of employer account balances quarterly rather than semi-annually. Applies to credits and refunds after January 1, 2018. Effective January 1, 2018.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2019-01-09 - Session Sine Die [SB1491 Detail]

Download: Illinois-2017-SB1491-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 SB1491 Introduced 2/9/2017, by Sen. Chuck Weaver SYNOPSIS AS INTRODUCED:
820 ILCS 405/2201 from Ch. 48, par. 681
820 ILCS 405/2201.1 from Ch. 48, par. 681.1
Amends the Unemployment Insurance Act. Provides that no later than 3 years after the date of an overpayment, rather than 3 years after notification by the Director of an overpayment, an employing unit may file a claim for an adjustment in contributions or a refund. Provides that the Director shall provide statements of employer account balances quarterly rather than semi-annually. Applies to credits and refunds after January 1, 2018. Effective January 1, 2018.
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A BILL FOR
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AN ACT concerning employment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Unemployment Insurance Act is amended by
changing Sections 2201 and 2201.1 as follows:
(820 ILCS 405/2201) (from Ch. 48, par. 681)
Sec. 2201. Refund or adjustment of contributions. Not
later than 3 years after the date of overpayment by upon which
the Director first notifies an employing unit of that it has
paid contributions, interest or penalties thereon erroneously,
the employing unit may file a claim with the Director for an
adjustment thereof in connection with subsequent contribution
payments, or for a refund thereof where such adjustment cannot
be made; provided, however, that no refund or adjustment shall
be made of any contribution, the amount of which has been
determined and assessed by the Director, if such contribution
was paid after the determination and assessment of the Director
became final, and provided, further, that any such adjustment
or refund, involving contributions with respect to wages on the
basis of which benefits have been paid, shall be reduced by the
amount of benefits so paid. Upon receipt of a claim the
Director shall make his determination, either allowing such
claim in whole or in part, or ordering that it be denied, and

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serve notice upon the claimant of such determination. Such
determination of the Director shall be final at the expiration
of 20 days from the date of service of such notice unless the
claimant shall have filed with the Director a written protest
and a petition for hearing, specifying his objections thereto.
Upon receipt of such petition within the 20 days allowed, the
Director shall fix the time and place for a hearing and shall
notify the claimant thereof. At any hearing held as herein
provided, the determination of the Director shall be prima
facie correct and the burden shall be upon the protesting
employing unit to prove that it is incorrect. All of the
provisions of this Act applicable to hearings conducted
pursuant to Section 2200 shall be applicable to hearings
conducted pursuant to this Section. Upon the conclusion of such
hearing, a decision shall be made by the Director and notice
thereof given to the claimant. If the Director shall decide
that the claim be allowed in whole or in part, or if such
allowance be ordered by the Court pursuant to Section 2205 and
the judgment of said Court has become final, the Director
shall, if practicable, make adjustment without interest in
connection with subsequent contribution payments by the
claimant, and if adjustments thereof cannot practicably be made
in connection with such subsequent contribution payments, then
the Director shall refund to the claimant the amount so
allowed, without interest except as otherwise provided in
Section 2201.1 from moneys in the benefit account established

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by this Act. Nothing herein contained shall prohibit the
Director from making adjustment or refund upon his own
initiative, within the time allowed for filing claim therefor,
provided that the Director shall make no refund or adjustment
of any contribution, the amount of which he has previously
determined and assessed, if such contribution was paid after
the determination and assessment became final.
If this State should not be certified for any year by the
Secretary of Labor of the United States of America, or other
appropriate Federal agency, under Section 3304 of the Federal
Internal Revenue Code of 1954, the Director shall refund
without interest to any instrumentality of the United States
subject to this Act by virtue of permission granted in an Act
of Congress, the amount of contributions paid by such
instrumentality with respect to such year.
The Director may by regulation provide that, if there is a
total credit balance of less than $2 in an employer's account
with respect to contributions, interest, and penalties, the
amount may be disregarded by the Director; once disregarded,
the amount shall not be considered a credit balance in the
account and shall not be subject to either an adjustment or a
refund.
The changes made to this Section by this amendatory Act of
the 100th General Assembly apply to refunds and credits after
January 1, 2018.
(Source: P.A. 98-1133, eff. 1-1-15.)

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(820 ILCS 405/2201.1) (from Ch. 48, par. 681.1)
Sec. 2201.1. Interest on Overpaid Contributions, Penalties
and Interest. The Director shall quarterly semi-annually
furnish each employer with a statement of credit balances in
the employer's account where the balances with respect to all
contributions, interest and penalties combined equal or exceed
$2. Under regulations prescribed by the Director and subject to
the limitations of Section 2201, the employer may file a
request for an adjustment or refund of the amount erroneously
paid. Interest shall be paid on refunds of erroneously paid
contributions, penalties and interest imposed by this Act,
except that if any refund is mailed by the Director within 90
days after the date of the refund claim, no interest shall be
due or paid. The interest shall begin to accrue as of the date
of the refund claim and shall be paid at the rate of 1.5% per
month computed at the rate of 12/365 of 1.5% for each day or
fraction thereof. Interest paid pursuant to this Section shall
be paid from monies in the special administrative account
established by Sections 2100 and 2101. This Section shall apply
only to refunds of contributions, penalties and interest which
were paid as the result of wages paid after January 1, 1988.
The changes made to this Section by this amendatory Act of
the 100th General Assembly apply to refunds and credits after
January 1, 2018.
(Source: P.A. 98-1133, eff. 1-1-15.)

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Section 99. Effective date. This Act takes effect January
1, 2018.