Illinois 2023-2024 Regular Session

Illinois House Bill HB4719 Compare Versions

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1-Public Act 103-0681
21 HB4719 EnrolledLRB103 36560 SPS 66667 b HB4719 Enrolled LRB103 36560 SPS 66667 b
32 HB4719 Enrolled LRB103 36560 SPS 66667 b
4-AN ACT concerning employment.
5-Be it enacted by the People of the State of Illinois,
6-represented in the General Assembly:
7-Section 5. The Illinois Secure Choice Savings Program Act
8-is amended by changing Sections 60 and 85 as follows:
9-(820 ILCS 80/60)
10-Sec. 60. Program implementation and enrollment. Except as
11-otherwise provided in Section 93 of this Act, the Program
12-shall be implemented, and enrollment of employees shall begin
13-in 2018. The Board shall establish an implementation timeline
14-under which employers shall enroll their employees in the
15-Program. The timeline shall include the date by which an
16-employer must begin enrollment of its employees in the Program
17-and the date by which enrollment must be complete. The Board
18-shall adopt the implementation timeline at a public meeting of
19-the Board and shall publicize the implementation timeline. The
20-Board shall provide advance notice to employers of their
21-enrollment date and the amount of time to complete enrollment.
22-The enrollment deadline for employers with fewer than 25
23-employees and more than 15 employees shall be no sooner than
24-September 1, 2022. The enrollment deadline for employers with
25-at least 5 employees but not more than 15 employees shall be no
26-sooner than September 1, 2023. The provisions of this Section
3+1 AN ACT concerning employment.
4+2 Be it enacted by the People of the State of Illinois,
5+3 represented in the General Assembly:
6+4 Section 5. The Illinois Secure Choice Savings Program Act
7+5 is amended by changing Sections 60 and 85 as follows:
8+6 (820 ILCS 80/60)
9+7 Sec. 60. Program implementation and enrollment. Except as
10+8 otherwise provided in Section 93 of this Act, the Program
11+9 shall be implemented, and enrollment of employees shall begin
12+10 in 2018. The Board shall establish an implementation timeline
13+11 under which employers shall enroll their employees in the
14+12 Program. The timeline shall include the date by which an
15+13 employer must begin enrollment of its employees in the Program
16+14 and the date by which enrollment must be complete. The Board
17+15 shall adopt the implementation timeline at a public meeting of
18+16 the Board and shall publicize the implementation timeline. The
19+17 Board shall provide advance notice to employers of their
20+18 enrollment date and the amount of time to complete enrollment.
21+19 The enrollment deadline for employers with fewer than 25
22+20 employees and more than 15 employees shall be no sooner than
23+21 September 1, 2022. The enrollment deadline for employers with
24+22 at least 5 employees but not more than 15 employees shall be no
25+23 sooner than September 1, 2023. The provisions of this Section
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33-shall be in force after the Board opens the Program for
34-enrollment.
35-(a) Each employer shall establish a payroll deposit
36-retirement savings arrangement to allow each employee to
37-participate in the Program within the timeline set by the
38-Board after the Program opens for enrollment.
39-(b) Employers shall automatically enroll in the Program
40-each of their employees who has not opted out of participation
41-in the Program in the manner using the form described in
42-subsection (c) of Section 55 of this Act and shall provide
43-payroll deduction retirement savings arrangements for such
44-employees and deposit, on behalf of such employees, these
45-funds into the Program. Small employers may, but are not
46-required to, provide payroll deduction retirement savings
47-arrangements for each employee who elects to participate in
48-the Program. Utilization of automatic enrollment by small
49-employers may be allowed only if it does not create employer
50-liability under the federal Employee Retirement Income
51-Security Act.
52-(c) Enrollees shall have the ability to select a
53-contribution level into the Fund. This level may be expressed
54-as a percentage of wages or as a dollar amount up to the
55-deductible amount for the enrollee's taxable year under
56-Section 219(b)(1)(A) of the Internal Revenue Code. Enrollees
57-may change their contribution level at any time, subject to
58-rules promulgated by the Board. If an enrollee fails to select
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34+1 shall be in force after the Board opens the Program for
35+2 enrollment.
36+3 (a) Each employer shall establish a payroll deposit
37+4 retirement savings arrangement to allow each employee to
38+5 participate in the Program within the timeline set by the
39+6 Board after the Program opens for enrollment.
40+7 (b) Employers shall automatically enroll in the Program
41+8 each of their employees who has not opted out of participation
42+9 in the Program in the manner using the form described in
43+10 subsection (c) of Section 55 of this Act and shall provide
44+11 payroll deduction retirement savings arrangements for such
45+12 employees and deposit, on behalf of such employees, these
46+13 funds into the Program. Small employers may, but are not
47+14 required to, provide payroll deduction retirement savings
48+15 arrangements for each employee who elects to participate in
49+16 the Program. Utilization of automatic enrollment by small
50+17 employers may be allowed only if it does not create employer
51+18 liability under the federal Employee Retirement Income
52+19 Security Act.
53+20 (c) Enrollees shall have the ability to select a
54+21 contribution level into the Fund. This level may be expressed
55+22 as a percentage of wages or as a dollar amount up to the
56+23 deductible amount for the enrollee's taxable year under
57+24 Section 219(b)(1)(A) of the Internal Revenue Code. Enrollees
58+25 may change their contribution level at any time, subject to
59+26 rules promulgated by the Board. If an enrollee fails to select
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61-a contribution level using the form described in subsection
62-(c) of Section 55 of this Act, then he or she shall contribute
63-the default contribution rate of his or her wages to the
64-Program, provided that such contributions shall not cause the
65-enrollee's total contributions to IRAs for the year to exceed
66-the deductible amount for the enrollee's taxable year under
67-Section 219(b)(1)(A) of the Internal Revenue Code.
68-(d) Enrollees may select an investment option from the
69-permitted investment options listed in Section 45 of this Act.
70-Enrollees may change their investment option at any time,
71-subject to rules promulgated by the Board. In the event that an
72-enrollee fails to select an investment option, that enrollee
73-shall be placed in the investment option selected by the Board
74-as the default under subsection (c) of Section 45 of this Act.
75-If the Board has not selected a default investment option
76-under subsection (c) of Section 45 of this Act, then an
77-enrollee who fails to select an investment option shall be
78-placed in the life-cycle fund investment option.
79-(e) Following initial implementation of the Program
80-pursuant to this Section, at least once every year,
81-participating employers may shall designate an open enrollment
82-period during which employees who previously opted out of the
83-Program may enroll in the Program.
84-(f) (Blank). An employee who opts out of the Program who
85-subsequently wants to participate through the participating
86-employer's payroll deposit retirement savings arrangement may
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89-only enroll during the participating employer's designated
90-open enrollment period or if permitted by the participating
91-employer at an earlier time.
92-(g) Employers shall retain the option at all times to set
93-up a qualified retirement plan, including, but not limited to,
94-any type of employer-sponsored retirement plan, such as a
95-defined benefit plan or a 401(k), a Simplified Employee
96-Pension (SEP) plan, or a Savings Incentive Match Plan for
97-Employees (SIMPLE) plan, or to offer an automatic enrollment
98-payroll deduction IRA, instead of facilitating their
99-employees' having a payroll deposit retirement savings
100-arrangement to allow employee participation in the Program.
101-(h) An employee may terminate his or her participation in
102-the Program at any time in a manner prescribed by the Board.
103-(i) The Board shall establish and maintain an Internet
104-website designed to assist employers in identifying private
105-sector providers of retirement arrangements that can be set up
106-by the employer rather than allowing employee participation in
107-the Program under this Act; however, the Board shall only
108-establish and maintain an Internet website under this
109-subsection if there is sufficient interest in such an Internet
110-website by private sector providers and if the private sector
111-providers furnish the funding necessary to establish and
112-maintain the Internet website. The Board must provide public
113-notice of the availability of and the process for inclusion on
114-the Internet website before it becomes publicly available.
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117-This Internet website must be available to the public before
118-the Board opens the Program for enrollment, and the Internet
119-website address must be included on any Internet website
120-posting or other materials regarding the Program offered to
121-the public by the Board.
122-(Source: P.A. 102-179, eff. 1-1-22.)
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70+1 a contribution level using the form described in subsection
71+2 (c) of Section 55 of this Act, then he or she shall contribute
72+3 the default contribution rate of his or her wages to the
73+4 Program, provided that such contributions shall not cause the
74+5 enrollee's total contributions to IRAs for the year to exceed
75+6 the deductible amount for the enrollee's taxable year under
76+7 Section 219(b)(1)(A) of the Internal Revenue Code.
77+8 (d) Enrollees may select an investment option from the
78+9 permitted investment options listed in Section 45 of this Act.
79+10 Enrollees may change their investment option at any time,
80+11 subject to rules promulgated by the Board. In the event that an
81+12 enrollee fails to select an investment option, that enrollee
82+13 shall be placed in the investment option selected by the Board
83+14 as the default under subsection (c) of Section 45 of this Act.
84+15 If the Board has not selected a default investment option
85+16 under subsection (c) of Section 45 of this Act, then an
86+17 enrollee who fails to select an investment option shall be
87+18 placed in the life-cycle fund investment option.
88+19 (e) Following initial implementation of the Program
89+20 pursuant to this Section, at least once every year,
90+21 participating employers may shall designate an open enrollment
91+22 period during which employees who previously opted out of the
92+23 Program may enroll in the Program.
93+24 (f) (Blank). An employee who opts out of the Program who
94+25 subsequently wants to participate through the participating
95+26 employer's payroll deposit retirement savings arrangement may
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106+1 only enroll during the participating employer's designated
107+2 open enrollment period or if permitted by the participating
108+3 employer at an earlier time.
109+4 (g) Employers shall retain the option at all times to set
110+5 up a qualified retirement plan, including, but not limited to,
111+6 any type of employer-sponsored retirement plan, such as a
112+7 defined benefit plan or a 401(k), a Simplified Employee
113+8 Pension (SEP) plan, or a Savings Incentive Match Plan for
114+9 Employees (SIMPLE) plan, or to offer an automatic enrollment
115+10 payroll deduction IRA, instead of facilitating their
116+11 employees' having a payroll deposit retirement savings
117+12 arrangement to allow employee participation in the Program.
118+13 (h) An employee may terminate his or her participation in
119+14 the Program at any time in a manner prescribed by the Board.
120+15 (i) The Board shall establish and maintain an Internet
121+16 website designed to assist employers in identifying private
122+17 sector providers of retirement arrangements that can be set up
123+18 by the employer rather than allowing employee participation in
124+19 the Program under this Act; however, the Board shall only
125+20 establish and maintain an Internet website under this
126+21 subsection if there is sufficient interest in such an Internet
127+22 website by private sector providers and if the private sector
128+23 providers furnish the funding necessary to establish and
129+24 maintain the Internet website. The Board must provide public
130+25 notice of the availability of and the process for inclusion on
131+26 the Internet website before it becomes publicly available.
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142+1 This Internet website must be available to the public before
143+2 the Board opens the Program for enrollment, and the Internet
144+3 website address must be included on any Internet website
145+4 posting or other materials regarding the Program offered to
146+5 the public by the Board.
147+6 (Source: P.A. 102-179, eff. 1-1-22.)
148+7 (820 ILCS 80/85)
149+8 Sec. 85. Penalties.
150+9 (a) An employer who fails without reasonable cause to
151+10 enroll an employee in the Program within the time prescribed
152+11 under Section 60 of this Act shall be subject to a penalty
153+12 equal to:
154+13 (1) $250 per employee for the first calendar year the
155+14 employer is noncompliant; or
156+15 (2) $500 per employee for each subsequent calendar
157+16 year the employer is noncompliant; noncompliance does not
158+17 need to be consecutive to qualify for the $500 penalty.
159+18 The Department shall determine total employee count using
160+19 the annual average from employer-reported quarterly data.
161+20 (b) After determining that an employer is subject to a
162+21 penalty under this Section for a calendar year, the Department
163+22 shall issue a notice of proposed assessment to such employer,
164+23 stating the number of employees for which the penalty is
165+24 proposed under item (1) of subsection (a) of this Section or
166+25 the number of employees for which the penalty is proposed
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177+1 under item (2) of subsection (a) of this Section for such
178+2 calendar year, and the total amount of penalties proposed.
179+3 Upon the expiration of 120 days after the date on which a
180+4 notice of proposed assessment was issued, the penalties
181+5 specified therein shall be deemed assessed, unless the
182+6 employer had filed a protest with the Department under
183+7 subsection (c) of this Section or come into full compliance
184+8 with the Program as required under Section 60 of this Act.
185+9 If, within 120 days after the date on which it was issued,
186+10 a protest of a notice of proposed assessment is filed under
187+11 subsection (c) of this Section, the penalties specified
188+12 therein shall be deemed assessed upon the date when the
189+13 decision of the Department with respect to the protest becomes
190+14 final.
191+15 (c) A written protest against the proposed assessment
192+16 shall be filed with the Department in such form as the
193+17 Department may by rule prescribe, setting forth the grounds on
194+18 which such protest is based. If such a protest is filed within
195+19 120 days after the date the notice of proposed assessment is
196+20 issued, the Department shall reconsider the proposed
197+21 assessment and shall grant the employer a hearing. As soon as
198+22 practicable after such reconsideration and hearing, the
199+23 Department shall issue a notice of decision to the employer,
200+24 setting forth the Department's findings of fact and the basis
201+25 of decision. The decision of the Department shall become
202+26 final:
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213+1 (1) if no action for review of the decision is
214+2 commenced under the Administrative Review Law, on the date
215+3 on which the time for commencement of such review has
216+4 expired; or
217+5 (2) if a timely action for review of the decision is
218+6 commenced under the Administrative Review Law, on the date
219+7 all proceedings in court for the review of such assessment
220+8 have terminated or the time for the taking thereof has
221+9 expired without such proceedings being instituted.
222+10 (d) As soon as practicable after the penalties specified
223+11 in a notice of proposed assessment are deemed assessed, the
224+12 Department shall give notice to the employer liable for any
225+13 unpaid portion of such assessment, stating the amount due and
226+14 demanding payment. If an employer neglects or refuses to pay
227+15 the entire liability shown on the notice and demand within 10
228+16 days after the notice and demand is issued, the unpaid amount
229+17 of the liability shall be a lien in favor of the State of
230+18 Illinois upon all property and rights to property, whether
231+19 real or personal, belonging to the employer, and the
232+20 provisions in the Illinois Income Tax Act regarding liens,
233+21 levies and collection actions with regard to assessed and
234+22 unpaid liabilities under that Act, including the periods for
235+23 taking any action, shall apply.
236+24 (e) An employer who has overpaid a penalty assessed under
237+25 this Section may file a claim for refund with the Department. A
238+26 claim shall be in writing in such form as the Department may by
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249+1 rule prescribe and shall state the specific grounds upon which
250+2 it is founded. As soon as practicable after a claim for refund
251+3 is filed, the Department shall examine it and either issue a
252+4 refund or issue a notice of denial. If such a protest is filed,
253+5 the Department shall reconsider the denial and grant the
254+6 employer a hearing. As soon as practicable after such
255+7 reconsideration and hearing, the Department shall issue a
256+8 notice of decision to the employer. The notice shall set forth
257+9 briefly the Department's findings of fact and the basis of
258+10 decision in each case decided in whole or in part adversely to
259+11 the employer. A denial of a claim for refund becomes final 120
260+12 days after the date of issuance of the notice of the denial
261+13 except for such amounts denied as to which the employer has
262+14 filed a protest with the Department. If a protest has been
263+15 timely filed, the decision of the Department shall become
264+16 final:
265+17 (1) if no action for review of the decision is
266+18 commenced under the Administrative Review Law, on the date
267+19 on which the time for commencement of such review has
268+20 expired; or
269+21 (2) if a timely action for review of the decision is
270+22 commenced under the Administrative Review Law, on the date
271+23 all proceedings in court for the review of such assessment
272+24 have terminated or the time for the taking thereof has
273+25 expired without such proceedings being instituted.
274+26 (f) No notice of proposed assessment may be issued with
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285+1 respect to a calendar year after June 30 of the fourth
286+2 subsequent calendar year. No claim for refund may be filed
287+3 more than 1 year after the date of payment of the amount to be
288+4 refunded.
289+5 (g) The provisions of the Administrative Review Law and
290+6 the rules adopted pursuant to it shall apply to and govern all
291+7 proceedings for the judicial review of final decisions of the
292+8 Department in response to a protest filed by the employer
293+9 under subsections (c) and (e) of this Section. Final decisions
294+10 of the Department shall constitute "administrative decisions"
295+11 as defined in Section 3-101 of the Code of Civil Procedure. The
296+12 Department may adopt any rules necessary to carry out its
297+13 duties pursuant to this Section.
298+14 (h) Whenever notice is required by this Section, it may be
299+15 given or issued by mailing it by first-class mail addressed to
300+16 the person concerned at his or her last known address or in an
301+17 electronic format as determined by the Department.
302+18 (i) All books and records and other papers and documents
303+19 relevant to the determination of any penalty due under this
304+20 Section shall, at all times during business hours of the day,
305+21 be subject to inspection by the Department or its duly
306+22 authorized agents and employees.
307+23 (j) The Department may require employers to report
308+24 information relevant to their compliance with this Act on
309+25 returns otherwise due from the employers under Section 704A of
310+26 the Illinois Income Tax Act and failure to provide the
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321+1 requested information on a return shall cause such return to
322+2 be treated as unprocessable.
323+3 (k) For purposes of any provision of State law allowing
324+4 the Department or any other agency of this State to offset an
325+5 amount owed to a taxpayer against a tax liability of that
326+6 taxpayer or allowing the Department to offset an overpayment
327+7 of tax against any liability owed to the State, a penalty
328+8 assessed under this Section shall be deemed to be a tax
329+9 liability of the employer and any refund due to an employer
330+10 shall be deemed to be an overpayment of tax of the employer.
331+11 (l) Except as provided in this subsection, all information
332+12 received by the Department from returns filed by an employer
333+13 or from any investigation conducted under the provisions of
334+14 this Act shall be confidential, except for official purposes
335+15 within the Department or pursuant to official procedures for
336+16 collection of penalties assessed under this Act. Nothing
337+17 contained in this subsection shall prevent the Director from
338+18 publishing or making available to the public reasonable
339+19 statistics concerning the operation of this Act wherein the
340+20 contents of returns are grouped into aggregates in such a way
341+21 that the specific information of any employer shall not be
342+22 disclosed. Nothing contained in this subsection shall prevent
343+23 the Director from divulging information to an authorized
344+24 representative of the employer or to any person pursuant to a
345+25 request or authorization made by the employer or by an
346+26 authorized representative of the employer.
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