illinois...the proposed rulemaking may have an impact on small businesses, small municipalities and...

ILLINOIS REGISTER RULES

OF GOVERNMENTAL AGENCIES

PUBLISHED BY JESSE WHITE • SECRETARY OF STATE

Index DepartmentAdministrative Code Division111 E. Monroe St.Springfield, IL 62756217-782-7017www.cyberdriveillinois.com

Printed on recycled paper

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TABLE OF CONTENTS

September 28, 2018 Volume 42, Issue 39

PROPOSED RULES EMPLOYMENT SECURITY, DEPARTMENT OF

Claims, Adjudication, Appeals and Hearings

56 Ill. Adm. Code 2720..........................................................................16965

Administrative Hearings and Appeals

56 Ill. Adm. Code 2725..........................................................................16978

Employment

56 Ill. Adm. Code 2732..........................................................................17002

Notices, Records, Reports

56 Ill. Adm. Code 2760..........................................................................17008

Payment of Unemployment Contributions, Interest and Penalties

56 Ill. Adm. Code 2765..........................................................................17028

Collection of Unemployment Contributions

56 Ill. Adm. Code 2790..........................................................................17048

Payment of Benefits

56 Ill. Adm. Code 2830..........................................................................17052

HEALTHCARE AND FAMILY SERVICES, DEPARTMENT OF

Medical Payment

89 Ill. Adm. Code 140............................................................................17067

LABOR, DEPARTMENT OF

Minimum Wage Law

56 Ill. Adm. Code 210............................................................................17091

STATE TREASURER, OFFICE OF THE

Illinois Public Treasurers' Investment Pool for Public Treasurers in the

State of Illinois (Repealer)

74 Ill. Adm. Code 740............................................................................17103

Illinois Public Treasurers' Investment Pool for Public Treasurers in the

State of Illinois (New Part)

74 Ill. Adm. Code 740............................................................................17109

Uniform Disposition of Unclaimed Property Act (Repealer)

74 Ill. Adm. Code 760............................................................................17121

Revised Uniform Disposition of Unclaimed Property Act

74 Ill. Adm. Code 760............................................................................17145

STUDENT ASSISTANCE COMMISSION, ILLINOIS

AIM HIGH Grant Pilot Program

23 Ill. Adm. Code 2766..........................................................................17233

ADOPTED RULES HUMAN RIGHTS, DEPARTMENT OF

Procedures of the Department of Human Rights

56 Ill. Adm. Code 2520..........................................................................17235

EMERGENCY RULES

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REVENUE, DEPARTMENT OF

Use Tax

86 Ill. Adm. Code 150............................................................................17247

STUDENT ASSISTANCE COMMISSION, ILLINOIS

AIM HIGH Grant Pilot Program

23 Ill. Adm. Code 2766..........................................................................17265

SECOND NOTICES RECEIVED JOINT COMMITTEE ON ADMINISTRATIVE RULES

Second Notices Received…...........................................................................17279

OTHER INFORMATION REQUIRED BY LAW TO BE PUBLISHED IN THE

ILLINOIS REGISTER HOUSING DEVELOPMENT AUTHORITY, ILLINOIS

Public Information, Rulemaking and Organization (Agency Response

to JCAR Objection)

2 Ill. Adm. Code 1975............................................................................17281

iii

INTRODUCTION

The Illinois Register is the official state document for publishing public notice of rulemaking

activity initiated by State governmental agencies. The table of contents is arranged categorically

by rulemaking activity and alphabetically by agency within each category.

Rulemaking activity consists of proposed or adopted new rules; amendments to or repealers of

existing rules; and rules promulgated by emergency or peremptory action. Executive Orders and

Proclamations issued by the Governor; notices of public information required by State Statute;

and activities (meeting agendas; Statements of Objection or Recommendation, etc.) of the Joint

Committee on Administrative Rules (JCAR), a legislative oversight committee which monitors

the rulemaking activities of State Agencies; is also published in the Register.

The Register is a weekly update of the Illinois Administrative Code (a compilation of the rules

adopted by State agencies). The most recent edition of the Code, along with the Register,

comprise the most current accounting of State agencies' rulemakings.

The Illinois Register is the property of the State of Illinois, granted by the authority of the Illinois

Administrative Procedure Act [5 ILCS 100/1-1, et seq.].

ILLINOIS REGISTER PUBLICATION SCHEDULE FOR 2018

Issue# Rules Due Date Date of Issue

1 December 26, 2017 January 5, 2018

2 January 2, 2018 January 12, 2018



5 January 22, 2018 February 2, 2018

6 January 29, 2018 February 9, 2018

7 February 5, 2018 February 16, 2018

8 February 13, 2018 February 23, 2018

9 February 20, 2018 March 2, 2018

10 February 26, 2018 March 9, 2018

11 March 5, 2018 March 16, 2018

12 March 12, 2018 March 23, 2018

13 March 19, 2018 March 30, 2018

14 March 26, 2018 April 6, 2018

15 April 2, 2018 April 13, 2018

16 April 9, 2018 April 20, 2018

17 April 16, 2018 April 27, 2018

18 April 23, 2018 May 4, 2018

19 April 30, 2018 May 11, 2018

20 May 7, 2018 May 18, 2018

21 May 14, 2018 May 25, 2018

22 May 21, 2018 June 1, 2018

23 May 29, 2018 June 8, 2018

24 June 4, 2018 June 15, 2018

25 June 11, 2018 June 22, 2018

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26 June 18, 2018 June 29, 2018

27 June 25, 2018 July 6, 2018

28 July 2, 2018 July 13, 2018

29 July 9, 2018 July 20, 2018

30 July 16, 2018 July 27, 2018

31 July 23, 2018 August 3, 2018

32 July 30, 2018 August 10, 2018

33 August 6, 2018 August 17, 2018

34 August 13, 2018 August 24, 2018

35 August 20, 2018 August 31, 2018

36 August 27, 2018 September 7, 2018

37 September 4, 2018 September 14, 2018



40 September 24, 2018 October 5, 2018

41 October 1, 2018 October 12, 2018

42 October 9, 2018 October 19, 2018

43 October 15, 2018 October 26, 2018

44 October 22, 2018 November 2, 2018

45 October 29, 2018 November 9, 2018

46 November 5, 2018 November 16, 2018



49 November 26, 2018 December 7, 2018

50 December 3, 2018 December 14, 2018



ILLINOIS REGISTER 16965

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DEPARTMENT OF EMPLOYMENT SECURITY

NOTICE OF PROPOSED AMENDMENTS

1) Heading of the Part: Claims, Adjudication, Appeals and Hearings

2) Code Citation: 56 Ill. Adm. Code 2720

3) Section Numbers: Proposed Actions:

2720.35 New Section

2720.100 Amendment

2720.130 Amendment

4) Statutory Authority: Implementing and authorized by Sections 239, 409, 500, 604, 700,

701, 702, 703, 705, 706, 800, 801, 803, 804, 805, 1000, 1001, 1002, 1004, 1200, 1700,

1701, 2300, 2301, 2302 and 2304 of the Unemployment Insurance Act [820 ILCS

405/239, 409, 500, 604, 700, 701, 702, 703, 705, 706, 800, 801, 803, 804, 805, 1000,

1001, 1002, 1004, 1200, 1700, 1701, 2300, 2301, 2302 and 2304].

5) A Complete Description of the Subjects and Issues involved: Specifies what constitutes

the last known address regarding notices sent to claimants or employers. Clarifies the

process for filing unemployment-benefit claims. Clarifies the procedure for curing an

insufficient protest.

6) Published studies or reports, and sources of underlying data, used to compose this

rulemaking: None

7) Will this rulemaking replace an emergency rule currently in effect? No

8) Does this rulemaking contain an automatic repeal date? No

9) Does this rulemaking contain incorporations by reference? No

10) Are there any other rulemakings pending on this Part? No

11) Statement of Statewide Policy Objective: These proposed amendments neither create nor

expand a State mandate.

12) Time, Place and Manner in which interested persons may comment on this proposed

rulemaking: Interested persons may submit written comments to:

Thomas D. Chan, Acting General Counsel

Illinois Department of Employment Security


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33 South State Street – Room 933

Chicago IL 60603

312/793-2338

fax: 312/793-5645

e-mail: [email protected]

The Department requests the submission of written comments within 45 days after the

publication of this Notice. The Department will consider all written comments it receives

during the First Notice period as required by Section 5-40 of the Illinois Administrative

Procedure Act [5 ILCS 100/5-40].

The proposed rulemaking may have an impact on small businesses, small municipalities

and not-for-profit corporations as defined in Sections 1-75, 1-80 and 1-85 of the Illinois

Administrative Procedure Act [5 ILCS 100/1-75, 1-80 and 1-85]. These entities may

submit comments in writing to the Department at the above address in accordance with

the regulatory flexibility provisions in Section 5-30 of the Illinois Administrative

Procedure Act [5 ILCS 100/5-30]. These entities shall indicate their status as a small

business, small municipality or not-for-profit corporation as part of any written comments

submitted to the Department.

13) Initial Regulatory Flexibility Analysis:

A) Types of small businesses, small municipalities and not-for-profit corporations

affected: This rulemaking has no direct effect on small businesses, small

municipalities and not-for-profit corporations.

B) Reporting, bookkeeping or other procedures required for compliance: No

reporting or bookkeeping is required for compliance.

C) Types of professional skills necessary for compliance: None

14) Regulatory Agenda on which this rulemaking was summarized: This rule was not

included on either of the 2 most recent agendas because: the revisions were not

anticipated at the time.

The full text of the Proposed Amendments begins on the next page:


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TITLE 56: LABOR AND EMPLOYMENT

CHAPTER IV: DEPARTMENT OF EMPLOYMENT SECURITY

SUBCHAPTER a: GENERAL PROVISIONS

PART 2720

CLAIMS, ADJUDICATION, APPEALS AND HEARINGS

SUBPART A: GENERAL PROVISIONS

Section

2720.1 Definitions

2720.3 "Week" In Relation To "Benefit Year"

2720.5 Service Of Notices, Decisions, Orders

2720.7 Application For Electronic Data Transmission

2720.10 Computation Of Time

2720.11 Methods Of Payment

2720.15 Disqualification Of Adjudicator, Referee, Or Board Of Review

2720.20 Attorney Representation Of Claimants

2720.25 Form of Papers Filed

2720.30 Correction Of Technical Errors

2720.35 A Claimant's "Last Known Address"

SUBPART B: APPLYING FOR UNEMPLOYMENT INSURANCE BENEFITS

Section

2720.100 Filing a Claim

2720.101 Filing, Registering And Reporting By Mail Under Special Circumstances

2720.105 Time For Filing An Initial Claim For Benefits

2720.106 Dating Of Claims For Weeks Of Partial Unemployment

2720.107 Employing Unit Reports for Partial Unemployment

2720.108 Alternative "Base Period"

2720.110 Required Second Visit To Local Office (Repealed)

2720.112 Telephone Certification

2720.115 Continuing Eligibility Requirements

2720.120 Time For Filing Claim Certification For Continued Benefits

2720.125 Work Search Requirements For Regular Unemployment Insurance Benefits

(Repealed)

2720.126 Availability For Part Time Work Only (Repealed)

2720.127 Director's Approval Of Training (Repealed)


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2720.128 Active Search For Work: Attendance At Training Courses (Repealed)

2720.129 Regular Attendance In Approved Training (Repealed)

2720.130 Employing Unit Protest Of Benefit Payment

2720.132 Required Notice By An Employer Of Separation For Alleged Felony Or Theft

Connected With The Work

2720.135 Adjudicator Investigation

2720.140 Adjudicator Determination

2720.145 Payment Of Unemployment Insurance Benefits For Initial Claims

2720.150 Applying For Unemployment Insurance Benefits Under Extension Programs

2720.155 Non-Resident Application For Benefits

2720.160 Reconsidered Findings Or Determination

SUBPART C: APPEALS TO REFEREE

Section

2720.200 Filing of Appeal

2720.201 Application For Electronic Data Transmission Of Notice Of Hearing

2720.205 Notice Of Hearing

2720.207 Untimely Appeals

2720.210 Preparation for the Hearing

2720.215 Format Of Hearings

2720.220 Ex Parte (One Party Only) Communications

2720.225 Subpoenas

2720.227 Depositions

2720.230 Consolidation Or Severance Of Proceedings

2720.235 Withdrawal Of Appeal

2720.240 Continuances

2720.245 Conduct Of Hearing

2720.250 Rules Of Evidence

2720.255 Failure Of Party To Appear At The Scheduled Hearing

2720.265 The Record

2720.270 Referee's Decision

2720.275 Labor Dispute Appeals

2720.277 Prehearing Conference In Labor Dispute Appeal

SUBPART D: APPEALS TO THE BOARD OF REVIEW

Section

2720.300 Filing of Appeal


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2720.305 Notice Of Appeal

2720.310 Request for Oral Argument

2720.315 Submission of Written Argument or Request to Submit Additional Evidence

2720.320 Access To Record

2720.325 Withdrawal Of Appeal

2720.330 Consolidation Or Severance Of Appeals

2720.335 Decision Of The Board Of Review

2720.340 Extensions Of Time In Which To Issue A Board Of Review Decision

2720.345 Issuance Of Notice Of Right To Sue

AUTHORITY: Implementing and authorized by Sections 239, 409, 500, 604, 700, 701, 702,

703, 705, 706, 800, 801, 803, 804, 805, 1000, 1001, 1002, 1004, 1200, 1700, 1701, 2300, 2301,

2302 and 2304 of the Unemployment Insurance Act [820 ILCS 405/239, 409, 500, 604, 700,

701, 702, 703, 705, 706, 800, 801, 803, 804, 805, 1000, 1001, 1002, 1004, 1200, 1700, 1701,

2300, 2301, 2302 and 2304].

SOURCE: Adopted at 8 Ill. Reg. 24957, effective January 1, 1985; amended at 10 Ill. Reg.

12620, effective July 7, 1986; amended at 11 Ill. Reg. 14338, effective August 20, 1987;

amended at 11 Ill. Reg. 18671, effective October 29, 1987; amended at 12 Ill. Reg. 14660,

effective September 6, 1988; emergency amendments at 13 Ill. Reg. 11890, effective July 1,

1989, for a maximum of 150 days; amended at 13 Ill. Reg. 18263, effective November 9, 1989;

amended at 14 Ill. Reg. 15334, effective September 10, 1990; amended at 14 Ill. Reg. 18489,

effective November 5, 1990; amended at 16 Ill. Reg. 2556, effective January 30, 1992;

emergency amendment at 16 Ill. Reg. 7506, effective April 22, 1992, for a maximum of 150

days; emergency expired September 19, 1992; amended at 17 Ill. Reg. 17937, effective October

4, 1993; amended at 18 Ill. Reg. 16340, effective October 24, 1994; amended at 21 Ill. Reg.

9441, effective July 7, 1997; amended at 21 Ill. Reg. 12129, effective August 20, 1997;

emergency amendment at 27 Ill. Reg. 4217, effective February 15, 2003, for a maximum of 150

days; emergency expired July 15, 2003; amended at 29 Ill. Reg. 1909, effective January 24,

2005; amended at 32 Ill. Reg. 13177, effective July 24, 2008; amended at 33 Ill. Reg. 9623,

effective August 1, 2009; amended at 35 Ill. Reg. 6114, effective March 25, 2011; amended at 42

Ill. Reg. ______, effective ____________.


Section 2720.35 A Claimant's "Last Known Address"

Notwithstanding any provision to the contrary, a claimant's "last known address", as that term is

used in the Act, is the last address provided to the Department by the claimant as provided in this


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Section. The address provided by a claimant on his or her most recent unemployment insurance

claim application is the claimant's last known address until the claimant informs the Department

of a change of address by telephone or in person at any local office, or through the internet at the

Department's website, www.ides.illinois.gov. The telephone number for submitting a change of

address can be found on the Department's website. Noting a change of address on an appeal or

other correspondence is not sufficient to change one's "last known address".

(Source: Added at 42 Ill. Reg. ______, effective ____________)

SUBPART B: APPLYING FOR UNEMPLOYMENT INSURANCE BENEFITS

Section 2720.100 Filing a Claim

a) Each employer shall deliver the form What Every Worker Should Know About

Unemployment Insurance form to each worker separated from employment for an

expected duration of 7 or more days. The form shall be delivered to the worker at

the time of separation or, if delivery is impracticable, it shall be mailed, within 5

days after the date of the separation, to the worker's last known address. The

forms shall be available for downloading from the Department's websitesupplied

by the Agency to each employer without cost. Every employer subject to the

provisions of the Unemployment Insurance Act (including every employing unit

that has elected, with the approval of the Director, to become an employer subject

to the Act) shall post and maintain thesuch notices as may be furnished by the

Director. These printed notices shall be posted in conspicuous places in all of the

establishments of the employer and shall be easily accessible for examination by

the worker. These notices can also be downloaded from the Department's

websiteThe Director will, upon request, supply a sufficient number of duplicate

notices to ensure that the notices are accessible to all workers.

b) Unless a claimant is otherwise instructed by the DepartmentAgency and except as

otherwise provided in subsection (e), an initial claim for unemployment insurance

benefits may be filed in person at any local office or over the telephone or on the

internet at the Department'sAgency's website, www.ides.state.il.us. Subject to

Section 2720.25, when filing a claim in person, the claimant, when requested,

shall provide the following to the local office:

1) A valid Social Security card or other evidence of his or her Social Security

number, such as a W-2 form;


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2) Any other form of positive identification such as a driver's license, state

photo ID card or payroll check stub showing his or her name, address and

date of birth;

3) For each employing unit for whom the claimant worked during the past 2

years:

A) The employing unit's name and address;

B) Dates of service;

C) Reasons for the claimant's separation:

i) If the employing unit is the federal government, Standard

Form 8 and Personnel Action Form 50, or any other

documents, such as a Form W-2 or check stub, that show

he or she has worked for the federal government;. or

ii) If the employing unit is the military, Separation Form DD-

214;

4) The Social Security number, name and birthdate of all of the claimant'sthe

claimant's youngest dependent childrenchild;

5) Social Security numberNumber, if any, of the claimant's spouse and

information about the spouse's employment during the last 2 years if the

claimant is claiming the spouse as a dependent;

6) Information about other income, such as Social Security benefits,

pensions, workers' compensation, payment for services, irrespective of

whether the claimant regards the services as employmentseverance,

vacation or bonus pay or other unemployment insurance benefits that the

claimant has received or will receive after the termination of his or her

employment.

c) The DepartmentAgency will accept and process any claim filed. When the

claimant files his or her claim, the claimant will be informed of the requirements

for receiving unemployment insurance benefits, including the requirement that the

claimant be able to work, available for work and actively seeking work.


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d) Within a reasonable time thereafter (customarily within 7 days), the claimant will

be provided with a finding showing whether he or she has monetary eligibility

and, if so, the amount of benefits.

e) The DepartmentAgency shall require a claimant to file in person at a local office

if there is a significant discrepancy between information that the claimant

provides while attempting to file a claim via the internet and information

contained in DepartmentAgency records or such other government records as the

DepartmentAgency may utilize.

EXAMPLE: An individual named Smith attempts to file an unemployment

insurance claim via the internet and, as part of the internet claims process, enters

his Social Security number. However, Department records indicate a previous

claim was filed by someone other than Smith, using the same Social Security

number that Smith has provided. Smith will have to file his claim in person in a

local office to clear up the discrepancy.

f) Once a claimant establishes a "valid" claim (, that is, one on which the claimant is

monetarily eligible for benefits), that claim cannot be withdrawn. The local office

is under no obligation to advise an individual when to file his or her claim so as to

qualify for the optimum benefit amount.

EXAMPLE: An individual files a valid claim effective June 6, 2010. He later

learns that, if he had waited until after July 1, 2010 to file his claim, he would

have been entitled to a higher weekly benefit amount. The individual cannot

withdraw the claim that he established effective June 6 to obtain a higher weekly

benefit amount.

(Source: Amended at 42 Ill. Reg. ______, effective ____________)

Section 2720.130 Employing Unit Protest Of Benefit Payment

a) A protest, ("Notice Of Possible Ineligibility" or a letter in lieu of that

noticethereof) raises questions of eligibility, entitles an employing unit to receive

an Adjudicator's Determination regarding questions of eligibility raised, and, if

timely and sufficient as set out in this Sectionbelow, provides party status and

appeal rights of thesuch Determination relating to the protest.


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1) The employing unit shall file, either by mail or by hand delivery, the

protest within 10ten calendar days after the date of notice shown on the

Form "Notice of Claim to Last Employing Unit and Last Employer or

Other Interested Party" form (see Section 2720.10 for the computation of

time). The protest shall be addressed, if mailed, or hand delivered to the

Director at the local office designated on the form received by the

employing unit. If the employing unit mails or hand delivers the protest to

an address other than the address designated on the form received by the

employing unit, timeliness of the notice shall be measured from the date of

receipt at the proper address instead of the postmark date or the hand

delivery date, as the case may be.

2) The protest should include the names, addresses and telephone numbers of

persons having knowledge of the facts and circumstances supporting the

allegation whom the employing unit designates for the DepartmentAgency

to contact for further information. The protest must meet the sufficiency

requirements of subsection (d) of this Section.

b) Because, during a claim series, acts or circumstances may occur thatwhich could

result in ineligibility, an employing unit's protest with respect to those acts or

circumstances will be deemed timely (irrespective of the 10ten day time limit set

forth in subsection (a)) and will, if also sufficient, provide party status; except, if

the employing unit protests that, under Section 500C of the Act, the individual

was not able to work, available for work or actively seeking work, then (that part

of) the employing unit's protest will not be deemed timely and will not provide

status for any week prior to the week in which it was received by the

DepartmentAgency. Whether or not protest is deemed timely or an employing

unit is provided party status, ineligibility is determined from the week in which

the acts or circumstances occurred.

1) EXAMPLEExample: The employing unit from which the individual was

separated does not respond within 10 days after theof date of mailing of

the Notice of Claim to Last Employer, Last Employing Unit or other

Interested Party. Later, during the claim series, the employing unit offers

the individual suitable work that he refuses without good cause. The

employing unit then protests, alleging that the individual should be

ineligible under Section 603 of the Act, (refusal of suitable work). This

protest shall be deemed timely beginning with the week in which the

refusal of work occurred.


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2) EXAMPLEExample: During the third week of the claim series, the school

district thatwhich employed the individual as a teacher during the last

academic term offers him a contract to teach again in the next academic

term. During the seventh week of the claims series, the school district

protests that the individual should be ineligible under Section 612 of the

Act. This protest shall be deemed timely as of the date that it is

determined that the contract was offered to the individual.

3) EXAMPLEExample: The individual has been receiving benefits for

14fourteen weeks. In the 15thfifteenth week, his former employer hears

that the individual may have been incapacitated by an injury beginning in

week 6six of the claim series. The employer protests that the individual

should be ineligible for benefits under Section 500C of the Act beginning

with week 6six of the claim series. While the DepartmentAgency will

investigate this individual's eligibility for benefits beginning with week

6six, the employer will only be a party to the determination of eligibility

beginning with the week in which the employer notifies the

DepartmentAgency of its allegation of possible ineligibility.

c) WhenWhere an employer alleges that an individual who was initially an

unemployed individual but was later not unemployed under Section 239 of the

Act, because the individual returned to work for the employer and continued to

claim benefits, a protest shall be considered timely if filed within 45 days afterof

the date the DepartmentAgency mails the employer a Statement of Benefit

ChargesWages (BEN-118) thatwhich includes a period in which the employer

alleges that the individual claimed benefits while he was employed by the

employer.

d) As long as the employing unit gives a reason or reasons for the allegation and the

reasonreason(s) is directly related to the issue raised and is not a general

conclusion of law, the allegation shall be considered sufficient. A protest under

this Section is sufficient only if limited to one claimant, except as otherwise

provided belowin subsection (d)(3), and only if it:

1) Alleges on the protest that the claimant is not eligible for benefits or

waiting week credit by providing material reasons or facts in support of

the allegation, other than a conclusion of law, which would support the

claimant being held ineligible for benefits; or,


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A) EXAMPLEExample: Sufficient – Employing Unit's Protest

Alleges:

i) The claimant is not able to and available for work because

she is in school.

ii) The claimant is not able to and available for work because

he has no child care during working hours.

iii) The claimant is not able to and available for work because

he has removed himself to an area of substantially less

favorable work opportunities.

iv) The claimant is not able to and available for work because

she is seeking part-time work.

v) The claimant is not able to and available for work because

he is in an occupation for which there is no demand in the

labor market area.

B) EXAMPLEExample: Not Sufficient – Employing Unit's Protest

Alleges:

i) The claimant is not actively seeking work. (generalGeneral

conclusion of law).

ii) The claimant is not available for work. (noNo reason given

for allegation).

iii) The claimant is not able to and available for work because

he was discharged from his last job. (reasonReason given is

not related to the issue raised);

2) Alleges that the claimant is not eligible for benefits, because, in

connection with any separation or layoff, the claimant has been or will be

paid vacation pay, vacation pay allowance, or pay in lieu of vacation, in

which event, the employing unit must designate, on the protest, within 10

calendar days after notification of the filing of thehis claim, or within 10


18



calendar days afterof the date thesuch vacation pay is paid or payable, the

period to which thatsuch pay is allocated. It is not necessary that a protest

be filed for each individual vacation payment. No such designation is

necessary for disqualification purposes, for vacation payments made

during an announced period of shutdown for the purposepurposes of

inventory, vacation, or both; or

3) Alleges that the claimant is not eligible for benefits because he is

unemployed due to his involvement in a labor dispute,; and the employing

unit, within 5 days afterof the start of the period of the work stoppage due

to a labor dispute, provides the DepartmentAgency with the name and

Social Security number of each worker involved in the dispute. ThisThe

list of workers shall be filed with the Department'sAgency's Labor Dispute

section. Upon receipt of the list, the DepartmentAgency will mail a Labor

Dispute Questionnaire to the employing unit and the union or

representative of the employees involved in the labor dispute. The

employing unit, union, and/or employee representative must respond to

the questionnaire within 10 days. If the questionnaire is not received

within 10 days, the DepartmentAgency will issue a decision based on the

information contained in the record at that time. The filing of the above

list will constitute an allegation of possible ineligibility under the labor

dispute provision (Section 604 of the Act) only and shall not be construed

as an allegation of possible ineligibility under any other provisions of the

Act.

e) In instances in whichwhen the DepartmentAgency decides that the protest has not

met the sufficiency requirements of subsection (d)(1) of this Section, the

DepartmentAgency shall immediately provide the employing unit with a notice,

includingreturn the protest with a description of the needed information. If the

protest with all required information is refiled within 10 days afterof the date the

DepartmentAgency mailed the noticeit back to the employing unit, the protest

shall be considered filed on the date the DepartmentAgency originally received it.

In no event shall the employing unit have the right to cure an insufficient protest

regarding the same claimAgency return an inadequate protest more than once. In

the event that a protest does not meet the sufficiency requirements of subsection

(d)(1) of this Section after being refiled pursuant to this subsectionreturned to the

employing unit once, the Adjudicator shall determine the protest to be

insufficient. A Decision that a protest is insufficient may be appealed pursuant to

Section 2720.200.


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1) Heading of the Part: Administrative Hearings and Appeals



2725.30 New Section

2725.35 New Section

2725.40 New Section

2725.45 New Section

2725.50 New Section

2725.55 New Section

2725.105 Amendment

2725.110 Amendment

2725.115 Amendment

2725.125 New Section

2725.200 Amendment

2725.250 Amendment


1501.1, 1502, 1502.1, 1508, 1508.1, 1509, 1510, 1700, 1701, 2200, 2201, 2203, 2300,

2301, 2302, 2304 and 2305 of the Unemployment Insurance Act [820 ILCS 405/701,

702, 703, 706, 1501, 1501.1, 1502, 1502.1, 1508, 1508.1, 1509, 1510, 1700, 1701, 2200,

2201, 2203, 2300, 2301, 2302, 2304, and 2305].

5) A Complete Description of the Subjects and Issues Involved: The Department no longer

pays unemployment benefits by check. All payments are made by direct deposit or debit

card. This rulemaking explains how debit cards are mailed, how misdirected payment

claims are investigated, and how benefits due to a deceased or comatose claimant are

paid. Specifies the requirements for an electronic signature. Section 2830.50 is repealed

because the language this Section defined was removed from Section 401 (PA 93-634).

Eliminates obsolete language that suggested IDES was a party to administrative hearings

regarding tax/liability issues. Provides how an employer can elect to exclusively receive

tax-related notices electronically.


rulemaking: None



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9) Does the rulemaking contain incorporations by reference? No









Chicago IL 60603

312/793-2338

fax: 312/793-5645


















18







14) Regulatory Agenda on which this rulemaking was summarized: This rulemaking was not





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SUBCHAPTER a: GENERAL PROVISIONS

PART 2725

ADMINISTRATIVE HEARINGS AND APPEALS


Section

2725.1 Definitions

2725.3 Burden Of Proof

2725.5 Designation Of Agents

2725.10 Computation Of Time

2725.11 Use of Private Messenger Services

2725.15 Disqualification Of Agency Employee

2725.20 Request For Clarification

2725.25 Form Of Papers Filed

2725.30 An Employer's "Last Known Address"

2725.35 Electronic Submissions

2725.40 Electronic Posting of Notices

2725.45 Signature Requirement

2725.50 Electronic Signature

2725.55 Forms

SUBPART B: FILING OF APPLICATIONS AND CLAIMS FOR RELIEF

Section

2725.100 Application For Revision Of Statement Of Benefit Charges

2725.105 Application forFor Review ofOf Rate Determination

2725.110 Protest ofOf Determination andAnd Assessment

2725.115 Claim For Adjustments (Credits) And Refunds

2725.120 Application For Cancellation Of Benefit Charges Due To Lack Of Notice

2725.125 Elections to Make Payments in Lieu of Contributions and Written Notices of

Termination of Election by a Nonprofit Organization or Governmental Entity

SUBPART C: APPEAL TO DIRECTOR'S REPRESENTATIVE

Section


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2725.200 Filing Of Appeal

2725.205 Pre-Hearing Conference

2725.210 Notice Of Hearing

2725.215 Preparation for the Hearing

2725.220 Telephone Hearings

2725.225 Ex Parte (One Party Only) Communications

2725.230 Subpoenas

2725.232 Depositions

2725.235 Consolidation Or Severance Of Proceedings

2725.237 Adding Necessary Parties

2725.240 Withdrawal Of Petition For Hearing


2725.250 Conduct of Hearing

2725.255 Rules of Evidence

2725.260 Oral Argument-Memoranda-Post Hearing Documents

2725.265 The Record

2725.270 Recommended Decision

2725.275 Objections To Recommended Decision

2725.280 Decision Of Director

AUTHORITY: Implementing and authorized by Sections 701, 702, 703, 706, 1501, 1501.1,

1502, 1502.1, 1508, 1508.1, 1509, 1510, 1700, 1701, 2200, 2201, 2203, 2300, 2301, 2302, 2304

and 2305 of the Unemployment Insurance Act [820 ILCS 405/701, 702, 703, 706, 1501, 1501.1,

1502, 1502.1, 1508, 1508.1, 1509, 1510, 1700, 1701, 2200, 2201, 2203, 2300, 2301, 2302, 2304,

and 2305].

SOURCE: Adopted at 11 Ill. Reg. 11065, effective July 1, 1987; amended at 12 Ill. Reg. 14653,

effective September 6, 1988; amended at 12 Ill. Reg. 16060, effective September 23, 1988;

emergency amendments at 13 Ill. Reg. 11872, effective July 1, 1989, for a maximum of 150

days; amended at 13 Ill. Reg. 17383, effective October 30, 1989; amended at 14 Ill. Reg. 5126,

effective March 22, 1990; amended at 16 Ill. Reg. 113, effective December 23, 1991; amended at

16 Ill. Reg. 2122, effective January 27, 1992; emergency amendment at 16 Ill. Reg. 7502,

effective April 22, 1992, for a maximum of 150 days; emergency expired on September 19,

1992; amended at 20 Ill. Reg. 6378, effective April 29, 1996; amended at 33 Ill. Reg. 9641,

effective July 1, 2009; amended at 35 Ill. Reg. 6129, effective March 25, 2011; amended at 42




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Section 2725.30 An Employer's "Last Known Address"

a) Notwithstanding any provision to the contrary, and except as provided in

subsection (b) and Section 2725.40, an employing unit's "last known address" or

"last known place of business or residence", as those terms are used in the Act, is

the last address provided to the Department by the employing unit.

EXAMPLE: On September 1, 2016, the Director mails an annual contribution

rate notice to Employer A at the last address provided to the Department by

Employer A. For purposes of Section 1509 of the Act, the annual contribution rate

notice mailed on September 1, 2016 is mailed to Employer A's last known

address.

b) The Department receives manual and electronic address correction notices from

the United States Postal Service (USPS) to update employing unit addresses

maintained in Department records when mail is sent to the last address provided

by the employing unit but is undeliverable as addressed. Except as provided in

this Section, when the Department receives notification from USPS that the

employing unit's address is different from the last address provided to the

Department by the employing unit, the new address provided by USPS shall be

the employing unit's last known address or last known place of business or

residence. The last address obtained from USPS is the employing unit's last

known address or last known place of business or residence until the employing

unit informs the Department of a change of address as provided in subsection (c).

EXAMPLE: When Employer A began business in 2010, it filed a "Report To

Determine Liability Under the Illinois Unemployment Insurance Act" (see 56 Ill.

Adm. Code 2760.105), listing its address as 1234 S. Main St., Springfield IL. On

September 1, 2016, Employer A files a change of address with USPS, listing its

new address as 5678 N. State St., Chicago IL. Employer A does not inform the

Department of its change of address. On November 1, 2016, the Director mails an

annual contribution rate notice to Employer A at 1234 S. Main St., Springfield IL,

which is the last address provided to the Department by Employer A. For

purposes of Section 1509 of the Act, the annual contribution rate notice mailed on

November 1, 2016 is mailed to Employer A's last known address. Since Employer

A filed a change of address with USPS, the annual contribution rate notice is

forwarded to Employer A's new address by USPS. A few days later the

Department receives notice of Employer A's change of address from USPS. The

Department will update its records with the new address received by USPS.


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Subsequent mail sent to Employer A at 5678 N. State St., Chicago IL is mailed to

Employer A's last known address.

c) It is the employing unit's responsibility to inform the Department of any address

change through MyTax Illinois (mytax.illinois.gov), by mailing a UI-50A Notice

of Change to the Department, or by calling, faxing or writing the Department and

providing the same information as would be provided on the UI-50A. A change

of address request must be signed unless the request is made by telephone. The

mailing address and telephone and fax numbers for submitting a change of

address can be found on the UI-50A, which is available on the Department's

website (ides.illinois.gov). Except as otherwise provided for in Section 2725.40

for Electronic Posting of Notices, a change of address is effective the day on

which it is received by the Department. If an employing unit does not file a UI-

50A Notice of Change with the Department and instead relies on the Department

to update its address based on information received by USPS, the employing unit

bears the risk that the Department will not receive correct change of address

information from USPS in a timely manner. A new last known address or last

known place of business or residence received from USPS is not effective until

the Department updates its records with the new address.

EXAMPLE 1: In January 2010, Employer A filed a UI-50A notifying the

Department that its mailing address was 1234 S. Main St., Springfield IL. On

March 1, 2015, Employer A files a change of address with USPS, listing its new

address as 5678 N. State St., Chicago IL. On November 23, 2015, the Director

mails Employer A's annual contribution rate notice to Employer A at 1234 S.

Main St., Springfield IL, the last address provided to the Department by Employer

A. For purposes of Section 1509 of the Act, the annual contribution rate notice

mailed on November 23, 2015 is mailed to Employer A's last known address. The

USPS forwards the annual contribution rate notice to Employer A at its new

address but does not notify the Department of Employer A's change of address

information. A little over a year later, on November 25, 2016, after USPS has

stopped forwarding Employer A's mail, the Department sends another annual

contribution rate notice to Employer A at its 1234 S. Main St., Springfield IL

address. For purposes of the Act, the annual contribution rate notice mailed on

November 25, 2016 to 1234 S. Main St., Springfield IL is mailed to Employer A's

last known address.

EXAMPLE 2: Same facts as Example 1 except, in addition to filing a change of

address with USPS, on March 1, 2015, Employer A also files a UI-50A with the


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Department, listing its new address as 5678 N. State St., Chicago IL. If the

Department does not timely update its records before sending the annual

contribution rate notice on November 23, 2015, since Employer A properly

notified the Department of its change of address, the annual contribution rate

notice mailed to Employer A's old address will not be treated as having been

mailed to Employer A's last known address for purposes of the Act.


Section 2725.35 Electronic Submissions

a) For purposes of this Section, "electronic submission" means any document that is

transmitted to the Department through MyTax Illinois (mytax.illinois.gov),

including, but not limited to, a contribution and wage report required by 56 Ill.

Adm. Code 2760.120, 2760.125 or 2760.145, an application for review of rate

determination (see Section 2725.105), a protest of a determination and assessment

as provided by Section 2725.110, a claim for adjustments or refund (see Section

2725.115), an election to make payments in lieu of contributions, or a written

notice of termination of election, an application for review of a Director's order

allowing or denying an election to make payments in lieu of contributions, or a

written notice of termination of election (see Section 2725.125), an application for

waiver (see Section 2765.75), or an appeal of an order or determination and

assessment of the Director (see Section 2725.200).

b) The date that the Department confirms receipt of the electronic submission, as

shown in the "Date Submitted" field of the electronic submission, will constitute

the date of filing. An electronic submission will be confirmed as received only if

all required information is provided in accordance with the instructions. An

electronic submission will not be considered filed unless it has been confirmed as

received by the Department, as evidenced by the electronic confirmation number

and confirmation page provided.


Section 2725.40 Electronic Posting of Notices

a) On and after the effective date of this amendatory rulemaking of 2018, when a

person or employing unit uses the Department's online tax system, MyTax Illinois

(mytax.illinois.gov), the Department will post an electronic version of all notices,


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except as provided in subsection (c), that are required to be mailed to the person

or employing unit, including, but not limited to, notices under Sections 1400,

1509, 2200 and 2201 of the Act, in the correspondence tab of the account of the

person or employing unit on the MyTax Illinois website.

b) An email address is needed to register an account in MyTax Illinois. When a

notice is posted to the MyTax Illinois account of a person or employing unit as

provided in subsection (a), the Department will send an email to each email

address that has been provided on the account. A person or employing unit that

uses MyTax Illinois will continue to receive, in addition to receiving email

notifications and notices within MyTax Illinois, all notices as a paper document

sent through USPS to its last known address as provided in Section 2725.30,

unless the person or employing unit elects to stop receiving notice under

subsection (d). Unless the person or employing unit elects to stop receiving notice

as a paper document sent through USPS, the last known address for purposes of

the notices described in subsection (a) shall be as provided by Section 2725.30.

c) Electronic versions of the following notices are not posted on the MyTax Illinois

website and, regardless of an election under subsection (d), will always be sent as

a paper document through USPS:

1) All notices that a person or employing unit is entitled to receive after the

filing of an appeal of an order or Determination and Assessment of the

Director as provided in Subpart C, including, but not limited to, hearing

notices (see Section 2725.210), recommended decisions (see Section

2725.270), and decisions of the Director (see Section 2725.280); and

2) Certificates of withdrawal or release of a notice of lien (see Section 2401

of the Act).

d) A person or employing unit that uses the Department's online tax system may

elect to stop receiving notice as a paper document sent through USPS for any

notice, except those notices described in subsection (c), that is required to be

mailed by the Department as provided in subsection (a). An election under this

subsection must be made on the MyTax Illinois website.

e) If, pursuant to subsection (d), a person or employing unit elects to stop receiving

notice as a paper document sent through USPS, the email address or addresses

provided by the person or employing unit shall be the last known address for


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purposes of Section 2725.30 for each notice described in subsection (a). The

notices described in subsection (a) will not be mailed to the person or employing

unit through USPS. If, pursuant to subsection (d), a person or employing unit

elects to stop receiving notice as a paper document sent through USPS, then

notice shall be deemed to have been served on the person or employing unit if the

Department posts an electronic version of the notice in the correspondence tab of

the account of the person or employing unit on the MyTax Illinois website and

transmits an email to at least one of the email addresses provided on the account

of the person or employing unit, even if the email is not accepted by the server of

the person or employing unit.

EXAMPLE 1: An employing unit establishes a MyTax Illinois account and,

pursuant to subsection (d), elects to stop receiving notice as a paper document

sent through the USPS. The employing unit provides a total of four different

email addresses for the account. The Department posts a Determination and

Assessment in the correspondence tab of the employer's MyTax Illinois profile

and attempts to send an email notification to each of the four email addresses

provided by the employing unit. Due to a computer glitch, only one email is sent.

Because the Department transmitted an email to at least one of the email

addresses provided on the account of the employing unit, notice of the

Determination and Assessment will be treated as having been served on the

employing unit.



sent through USPS. The employing unit provides an email address for the

account. The Department posts a Determination and Assessment in the

correspondence tab of the employer's MyTax Illinois profile and sends an email

notification to the email address provided by the employing unit. The email is

rejected as undeliverable. Because the email was sent to the email address

provided by the employing unit, notice of the Determination and Assessment will

be treated as having been served on the employing unit.

f) If, pursuant to subsection (d), a person or employing unit elects to stop receiving

notice as a paper document sent through USPS, the date of mailing of the notice

for purposes of the Act shall be whichever of the following dates is later:

1) The mail date listed on the notice that is posted on the MyTax Illinois

website; or


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2) The date that the email notifying the person or employing unit that a

notice has been posted to the MyTax Illinois website is transmitted to the

person or employing unit.

EXAMPLE 1: An employer has elected to stop receiving notice through

USPS under subsection (d). On October 1, 2017, the Department posts a

Determination and Assessment in the correspondence tab of the

employer's MyTax Illinois profile. The mail date on the Determination and

Assessment is October 3, 2017 to allow time for system processing. Due

to a system error, the Department does not email the employer until

October 4, 2017 to inform it that the Determination and Assessment has

been posted to the MyTax Illinois website. Even if the employer logs into

its MyTax Illinois account and views the document on October 1, 2017,

notice of the Determination and Assessment will be treated as having been

mailed on October 4, 2017.

EXAMPLE 2: An employer has elected to stop receiving notice through

USPS under subsection (d). On October 1, 2017, the Department posts a

Determination and Assessment in the correspondence tab of the

employer's MyTax Illinois profile. The mail date on the Determination and

Assessment is October 3, 2017 to allow time for system processing. The

Department sends the employer an email on October 2, 2017 to inform it

that a notice has been posted to the MyTax Illinois website. Notice of the

Determination and Assessment will be treated as having been mailed on

October 3, 2017.

g) The email notifying the person or employing unit that a notice has been posted to

the MyTax Illinois website may not be responded to by email. If the notice posted

to the MyTax Illinois website provides for appeal rights or otherwise allows or

requires a response by the person or employing unit, the person or employing unit

must appeal or respond according to the instructions provided on the notice,

whether posted to the MyTax Illinois website or sent through USPS.

EXAMPLE: On November 1, 2017, the Department sends an employing unit an

email notifying the employing unit that a notice has been posted to the MyTax

Illinois website. The notice posted to the MyTax Illinois website is an Annual

Notice of Contribution Rate Determination. The notice informs the employing

unit that, pursuant to Section 2725.105, it may file an application for review of the


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notice of contribution rate determination online using MyTax Illinois or by mail at

the address on the Notice of Contribution Rate Determination. On November 2,

2017, the president of the employing unit signs into MyTax Illinois and sees the

rate notice. Instead of submitting an application for review on MyTax Illinois or

by mail, the president of the employing unit sends an application for review of the

rate notice in an email response to the email that the Department sent to the

employing unit. Since the application for review was not submitted to the

Department in accordance with Section 2725.105, as explained on the Notice of

Contribution Rate Determination, the application for review will not be treated as

filed for purposes of Section 1509 of the Act, and the rate determination will be

final against the employing unit. Under Section 2725.105 and subsection (g), it is

the employing unit's responsibility to respond to the notice according to the

instructions provided on the notice.

h) If, pursuant to subsection (d), a person or employing unit elects to stop receiving

notice as a paper document sent through USPS, the email address or addresses

provided by the person or employing unit will continue to be the last known

address of the person or employing unit for purposes of the notices described in

subsection (a) until the person or employing unit changes its email address or

cancels its election to stop receiving notice as a paper document sent through

USPS. An election to change an email address or cancel an election to stop

receiving notice as a paper document sent through USPS may be completed

within MyTax Illinois. A change pursuant to this subsection is not effective until

it has been processed by the Department.

EXAMPLE 1: Six months after electing to stop receiving notice as a paper

document sent through USPS as provided in subsection (d), an employer loses

access to the email address it provided to the Department and begins using a new

email address. However, the employing unit does not notify the Department of the

new email address. On November 1, 2017, the Department posts an Annual

Notice of Contribution Rate Determination in the correspondence tab of the

employer's MyTax Illinois profile. On the same day, the Department sends the

employing unit an email to the email address the employing unit provided to the

Department, notifying the employing unit that a notice has been posted to the

MyTax Illinois website. The Notice of Contribution Rate Determination informs

the employing unit that, pursuant to Section 1509 of the Act, the employing unit

has 15 days from November 1, 2017 to file an application for review of the rate

determination. Since the employing unit no longer has access to the email address

it provided to the Department, it does not receive the email or retrieve the notice


18



in MyTax Illinois. On November 20, 2017, the employing unit signs into MyTax

Illinois, sees the rate notice, and immediately files an application for its review.

Since the application for review was filed more than 15 days after the mail date

listed on the notice, which was also the date that the Department sent an email to

the employing unit's last known address, the application for review is not timely,

and the rate determination will be treated as final against the employing unit.

Under subsection (h), it is the employing unit's responsibility to notify the

Department of its new mailing address through MyTax Illinois.



sent through USPS. The employing unit provides an email address for the account

"[email protected]." The Department posts a Determination and

Assessment in the correspondence tab of the employer's MyTax Illinois profile

and sends an email notification to the email address provided by the employing

unit. The employing unit's email sends an automatic reply to the Department that

states: "My email address has changed. Please email me at my new email address:

[email protected]". Since the email sent by the Department is an

automated notification and is unable to receive replies, the Department does not

update the email address of the employing unit. Notice will be treated as properly

served on the employing unit when sent to the original email address provided by

the employing unit ([email protected]). It is the employing unit's

responsibility to notify the Department of its new mailing address through MyTax

Illinois.


Section 2725.45 Signature Requirement

Unless otherwise provided, a letter, form or request that is required to be signed by this Part and

56 Ill. Adm. Code 2760 and 2765 and that is submitted on behalf of an employing unit must be

signed by the owner, partner or authorized officer or official of the employing unit, or its

authorized agent. Unless otherwise provided, a letter, form or request that is required to be

signed by this Part and 56 Ill. Adm. Code 2760 and 2765 and that is submitted by or on behalf of

an individual that is not himself or herself an employing unit must be signed by the individual or

his or her agent. A letter, form or request that is required to be signed as provided in this Section

may be electronically signed (see Section 2725.50). A signature, including an electronic

signature, constitutes an attestation that the information submitted is true and correct to the best

of the signatory's knowledge and belief.

mailto:[email protected]%22.


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Section 2725.50 Electronic Signature

An electronic submission, as defined by Section 2725.35, that must be signed shall be signed

using an electronic signature in lieu of a written signature by clicking the "I Agree" check box

beneath the certification statement prior to submission on the MyTax Illinois website

(mytax.illinois.gov). An electronic submission has the same legal effect as a signature on a

paper document.


Section 2725.55 Forms

Blank copies of all reports and forms mentioned in this Part and 56 Ill. Adm. Code 2760 and

2765 are available on the Department's website (ides.illinois.gov) and, except the reports

described in 56 Ill. Adm. Code 2760.105, may also be obtained by contacting the Department's

Revenue Division at 33 S. State St., 10th Floor, Chicago IL 60603. Copies of the reports

described in that Section may be obtained from the Illinois Department of Revenue at Central

Registration Division, Illinois Department of Revenue, PO Box 19030, Mail Code 3-222,

Springfield IL 62794-9030.


SUBPART B: FILING OF APPLICATIONS AND CLAIMS FOR RELIEF

Section 2725.105 Application forFor Review ofOf Rate Determination

a) An Application for Review of Rate Determination shouldmust be filed online

using MyTax Illinois (mytax.illinois.gov) or at the address on the Notice of

Contribution Rate Determination. An application must be signed and filed within

15 days afterof the mailing of the Notice of Contribution Rate Determination to

the employer. If an application has been timely filed, an employer may file

additional information to be considered as part of its application within 30 days

after the period for filing an application has ended.

b) A sufficient applicationApplication shall set forth the following:


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1) If the rate determination is based in whole or in part on erroneous benefit

charges, the applicationApplication must allege:

A) The employer was not served with a Statement of Benefit Charges

containing the benefit charges used in the calculation of the

employer's contribution rate; or

B) The employer has received an order or decision allowing an

adjustment of the benefit charges used in calculating the

employer's contribution rate. A copy of thesuch order or decision

must be attached to the application.

2) If a determination or decision allowing the payment of benefits has finally

been reversed or modified and the benefit charges resulting from thesuch

benefit payment were not revised in accordance with the provisions of

Section 706 of the Act, the employer shall provide a copy of thesuch final

reconsidered finding, reconsidered determination or decision.

3) If the DepartmentAgency has made a mathematical error, the employer

shall provide a detailed, clear statement showing the correct calculations.

4) If the employer alleges that the provisions of Section 1507 of the Act have

been erroneously applied, the employer must show that it complied with

56 Ill. Adm. Code 2760.105(b), if applicable, and shall provide a

statement of whether the employer has succeeded to substantially all or to

a distinct severable portion of the employing enterprises of a predecessor,

or whether a successor has succeeded to substantially all or a distinct

severable portion of the employer's employing enterprises, and the factual

basis for thosesuch statements.

5) If the employer alleges an incorrect North American Industry

Classification System (NAICS)Standard Industrial Classification code, a

statement of the employer's primary activity and the factual basis for

thatsuch statement must be provided.

6) If the employer alleges that it has not been credited with the full amount of

wages for insured work subject to the payment of contributions that it

reported, it shall state the exact amount of thesuch wages and the quarters

for which thesuch wages were reported and shall provide a copy of its


18



"Employer's Contribution and Wage Report" (see 56 Ill. Adm. Code

2760.25) and any forms, Social Security Number Correction and Name

Change Notice, used to report additional wages for the same quarters (see

56 Ill. Adm. Code 2760.145).

c) An application thatApplication which does not specify the factual basis for relief

sought, or does not contain the information required by the applicable Section of

this Part, shall be ruled insufficient. The ruling shall be final and conclusive

unless the employer files, within 10 days afterof the date of mailing of thesuch

ruling, a written objection or revised applicationApplication, specifically

responding to the reasons the original applicationApplication was ruled

insufficient. If a written objection or revised application has been timely filed, an

employer may file additional information to be considered as part of its objection

or revised application within 30 days after the period for filing a written objection

or revised application has ended. The written objection or revised

applicationApplication shall be reviewed and an order allowing or denying relief

issued.

d) If the applicationApplication is sufficient, the DepartmentAgency shall

investigate the allegations in the applicationApplication based on agency records

and any documents supplied by the employer. The DepartmentAgency shall issue

a written order with reasons for denying the applicationApplication or allowing

the applicationApplication in whole or in part.

e) An employer disagreeing with the order may appeal to a Director's

representativeRepresentative under Subpart C of this Part.

f) If the basis for review of the rate determination is a pending benefit charge matter,

thesuch matter is not a basis for relief under this Section, but rather the employer's

remedy is pursuant to Section 1508 of the Act and Section 2725.100 of this Part.

If the benefit charges are modified or cancelled, as appropriate, through the

operation of Section 2725.100 of this Part, appropriate relief will be granted

through the operation of Sections 1508 and 1509 of the Act.

EXAMPLE: While review of a benefit charge matter is pending, the employer

receives a Notice of Contribution Rate Determination based on the contested

benefit charges. This employer's pending Application for Revision of Statement

of Benefit Charges shall be deemed to be an Application for Review of that

portion of its rate based on the contested Statement. If thesuch employer prevails


18



on the applicationApplication for Review of Statement of Benefit Charges, its

benefit ratio shall be modified accordingly and, if this results in a change to its

rate, a revised Notice of Contribution Rate Determination will be issued.


Section 2725.110 Protest ofOf Determination andAnd Assessment

a) A protestProtest of a Determination and Assessment must be filed in the form of a

petition and should be filed online using MyTax Illinois (mytax.illinois.gov) orin

the form of a Petition at the address shown on the Determination and Assessment.

A protest must be signed and filed within 20 days afterof service. If a protest has

been timely filed, an employer may file additional information to be considered as

part of its protest within 30 days after the period for filing a protest has ended.

b) A sufficient Petition shall set forth the specific part of the Determination and

Assessment with which the employing unit disagrees and the specific legal and

factual basis for the disagreement and, in the specific situations described in this

subsection (b), will state the following:

1) If the employing unit alleges that it has paid all or part of the amount

assessed,: the exact amount of the contributions, penalties and interest

paid, if any, the datedate[s] paid and the quarterquarter[s] to which the

payment relatespayment[s] relate[s]; or

2) If the employing unit alleges that the Determination and Assessment is

erroneous because of clerical error,: the specific nature of the clerical

error; or

3) If the employing unit claims one or more persons whose wages are the

basis of the Determination and Assessment were not in employment,: the

names, addresses and Social Security account numbers of thosesuch

persons, the nature of the services performed, if any, and the reasons the

person or persons are not considered in employment; or

4) If the employing unit alleges that it is not an employer subject to the Act,:

the reasons for that allegation and supporting facts.

c) An employing unit thatwhich files a petitionPetition that does not contain the


18



information required by subsection (b) shall be notified of the insufficiency and

given 20 days after from the date of mailing of thatsuch notice to revise the

petitionPetition or file objections to the notice. A revised petition or objections to

the notice must be signed and should be filed online using MyTax Illinois or at

the address shown on the notice of insufficiency. If a revised petition or

objections to the notice of insufficiency have been timely filed, an employer may

file additional information to be considered as part of its application within 30

days after the period for filing a petition has ended. If, within the 20 day period, a

revised petitionPetition or objections responding to the notice are filed within 20

days after the date of mailing of the notice and the petitionPetition or revised

petitionPetition is still determined to be insufficient, the revised petitionPetition or

original petitionPetition and objections, as the case may be, shall be adjudicated

under Subpart C of this Part. If, within the 20 day period, no further documents

are filed or corrections made, electronically or by mail, within 20 days after the

date of mailing of the notice of insufficiency, the petitionPetition shall be ruled

insufficient and thesuch ruling, notice of which shall be provided to the

employing unit, shall be final and subject to review under the State's

Administrative Review Law [735 ILCS 5/Art. III].

d) An employing unit thatwhich files a petitionPetition, but not within the time

prescribed, shall be notified of its untimeliness and given 20 days after from the

date of mailing of thesuch notice to submit further information or objections to

the notice of untimeliness. Objections to the Notice of Untimeliness must be

signed and should be filed online using MyTax Illinois or at the address shown on

the notice of untimeliness. If further information or objections to the notice of

untimeliness has been timely filed, an employer may file additional information to

be considered as part of its submission within 30 days after the period for

submitting further information or objections has ended. If, within the 20 days

after the date of mailing of the Notice of Untimelinessday period, such

information or objections are filed but do not sufficiently respond to the notice of

untimeliness, the petitionPetition shall be adjudicated under Subpart C. If, within

the 20 days after the date of mailing of the notice of untimelinessday period, no

such information or objections are filed, the petitionPetition shall be ruled

untimely and thesuch ruling, notice of which shall be provided to the employing

unit, shall be final and subject to review under the State's Administrative Review

Law [735 ILCS 5/Art. III].

e) Except as provided in subsection (f), if the petitionPetition is sufficient and

timely, the Department willAgency shall investigate the allegations in the


18



petitionPetition based upon DepartmentAgency records and any documents

supplied by the employing unit. If the DepartmentAgency determines that the

petitionPetition should be allowed, the DepartmentAgency shall cancel the

Determination and Assessment by written order. If the DepartmentAgency

determines that the petitionPetition should be allowed in part and denied in part,

the DepartmentAgency shall modify the Determination and Assessment by

written order, with reasons for the partial denial. An employing unit disagreeing

with the Order to Modify the Determination and Assessment may file a

petitionPetition to the Modified Determination and Assessment as provided in

subsections (a) and (b). If the DepartmentAgency determines that the

Determination and Assessment should be affirmed, the petitionPetition shall be

adjudicated under Subpart C of this Part.

f) If an employing unit files a timely and sufficient petitionPetition in response to a

Modified Determination and Assessment issued under subsection (e) or a

Determination and Assessment thatwhich is issued as a result of an audit, thesuch

petitionPetition shall be adjudicated under Subpart C of this Part.


Section 2725.115 Claim For Adjustments (Credits) And Refunds

a) Claims for Adjustments (creditsCredits) or Refunds must be signed and should be

made online using MyTax Illinois (mytax.illinois.gov) or on the

Departmentagency form, "Employer's Claim for Adjustment/Refund," and filed at

the address listed on the form. Except as provided in this subsection, Such a

claim must be filed within three (3) years after the date on which the employing

unit paid the contributions, interest or penalties thatwhich are the basis of the

employing unit's claim. In the case of an erroneous payment that occurred

January 1, 2015 through September 8, 2017, the employing unit may file the

claim for adjustment or refund not later than June 30, 2018 or three years after the

date of the erroneous payment, whichever is later. If a claim for adjustment or

refund has been timely filed, an employer may file additional information to be

considered part of its claim within 30 days after filing the claim.

b) A sufficient Claim for Adjustment (creditCredit) or Refund must meet the

requirements set forth in 56 Ill. Adm. Code 2760.150 and shall set forth the

reason for the refund as follows:


18



1) The employer overpaid due to a mathematical error. For example, the

employer misplaced a decimal point in computing his or her contributions

due;

2) The employer paid at an incorrect rate. For example, the assigned rate

was 2.0% and the employer paid at 3.7%. This frequently occurs the first

year an employer receivesreceived a rate based on its experience;

3) The employer reported wages paid to workers to Illinois that should have

been reported to a different state. In thissuch a case, the employer must

supply the DepartmentAgency with a list of workers' names and Social

Security account numbers on the form titled "Employer's Correction

Report of Wages Previously Reported" if he or she has not already done so

on form UC-40C "Employer's Correction Report For The Quarter" (see 56

Ill. Adm. Code 2760.145(a)). If any benefits have been paid to these

workers by Illinois, the refund amount shall be adjusted downward to

reflect any benefits paid due to the employer's error;

4) The employer reported payments that are excluded from the definition of

"wages" by the Act. For example, a sole proprietor reported compensation

paid to his or her parents. In thesesuch cases, the employer must supply

the Departmentagency with a list of the workers' names and Social

Security account numbers on an "Employer's Correction Report For

Wages Previously Reported" if he or she has not already done so on an

"Employer's Correction Report For The Quarter" (see 56 Ill. Adm. Code

2760.145(a)). If any benefits have been paid to these workers, the refund

amount shall be adjusted downward to reflect any benefits paid due to the

employer's error;

5) The employer incorrectly reported total payments as wages subject to the

payment of contributions;

EXAMPLE: The employer made an error in computing the excess wages.

In thissuch case, the employer must file an "Employer's Correction Report

Of Wages Previously Reported" to correct his or her error if he or she has

already not done so on an "Employer's Correction Report For Thethe

Quarter" (see 56 Ill. Adm. Code 2760.145(a)).

6) The employer overpaid due to a rate revision;


18



EXAMPLE: The employer's rate is revised downward after he or she has

already paid the contributions for the quarter, thus creating a credit

balance for which he or she can request a refund or adjustment.

7) The employing unit is not an employer subject to the Act, but has paid

contributions;

8) Any other circumstances thatwhich would show that the employer

overpaid his or her contributions;

9) The employing unit has paid interest and/or penalties thatwhich were

determined not due.

c) If the Claim for Adjustment (creditCredit) or Refund is sufficient, the Department

willAgency shall investigate the allegation in the claim by examining

DepartmentAgency records and documents supplied by the employer and then

issue a written order.

d) A claim thatwhich does not specify the factual basis for the relief sought or does

not contain the information required by subsection (b) shall be ruled insufficient.

The ruling shall be final and conclusive unless the employer files, within 20 days

afterof the date of mailing of thesuch ruling in accordance with Section 2203 of

the Act, a written objection or revised claimClaim, specifically responding to the

reasons the original claimClaim was ruled insufficient. The written objection or

revised claim must be signed and should be filed online using MyTax Illinois or at

the address listed on the ruling. If a written objection or revised claim has been

timely filed, an employer may file additional information to be considered as part

of its submission within 30 days after the period for filing a written objection or

revised claim has ended. The written objection or revised claimClaim shall be

reviewed and an order, allowing in whole or in part or denying in whole or in part,

shall be issued. An employer disagreeing with thesuch order may appeal to a

Director's representativeRepresentative under Subpart C.


Section 2725.125 Elections to Make Payments in Lieu of Contributions and Written

Notices of Termination of Election by a Nonprofit Organization or Governmental Entity


18



a) Elections by a nonprofit organization or governmental entity to make payments in

lieu of contributions must be signed and should be made online using MyTax

Illinois (mytax.illinois.gov) or on the Department form "Reimburse Benefits in

Lieu of Paying Contributions", mailed to the address listed on the form.

b) A nonprofit organization or governmental entity that would like to terminate its

election to be reimbursable may do so either online using MyTax Illinois or in

writing, mailed to: Illinois Department of Employment Security, Revenue

Division, 33 S. State St., 10th Floor, Chicago IL 60603. There is no special form

needed to terminate an election to be reimbursable if submitted by mail. A notice

to terminate an election to be reimbursable must be signed, whether submitted

online using MyTax Illinois or by mail.

c) An application for review of a Director's order allowing or denying an election to

make payments in lieu of contributions and written notices of termination of

election must be signed and filed within 15 days after the date of mailing of the

order and should be filed online using MyTax Illinois or in writing, mailed to the

address listed on the order.


SUBPART C: APPEAL TO DIRECTOR'S REPRESENTATIVE

Section 2725.200 Filing Of Appeal

a) An employing unit may appeal an order or Determination and Assessment of the

Director by filing a written petitionPetition. The petitionPetition should be filed

online using MyTax Illinois (mytax.illinois.gov) or at the address shown on the

order or Determination and Assessment being appealed. The Petition must be

filed within 20 days after the Director's order or Determination and Assessment

was served on the employing unit, except for orders on applicationApplication for

review of rate determinations, which must be filed within 10 days afterof the date

of service.

b) No special form is necessary to file a petitionPetition. However, in addition to the

requirements of Section 2725.25, the following must be included:

1) The petitionPetition must be in writing, dated and signed by the employing

unit appealing or its agent; and


18



2) The petitionPetition must set forth the specific parts of the order or

Determination and Assessment and whenwith which the employing unit

disagrees and the specific legal and factual basis for that disagreement.

c) The employing unit may request a prehearingpre-hearing conference.


Section 2725.250 Conduct of Hearing

a) The Director's representativeRepresentative will control the hearing, which will

be confined to the relevant factual and/or legal issues.

b) At the hearing, the petitioning employer must produce testimony, argument or

other evidence to establish that the Director's order or Determination and

Assessmentdetermination and assessment is incorrect.

c) Following the testimony of each witness, the witness may be questioned and

cross-examined by the opposing party, if any, and then may be questioned and

cross-examined by the Director's representativeRepresentative or anysuch other

employee of the DepartmentDirector as the Director may designate. The

Director's Representative or such other employee of the Director as the Director

may designate shall represent the Director and may present any evidence to

support the Director's order or determination and assessment.

d) It is the duty of the Director's representativeRepresentative to ensure that the party

or parties, as appropriate, have full opportunity to present all evidence relevant to

the issues before the Director's representativeRepresentative.

e) If any person becomes disruptive or abusive, the Director's

representativeRepresentative shall exclude that person from the hearing and the

hearing will continue without the participation of the excluded individual. The

Director's representativeRepresentative shall render a decision based on all

evidence in the record.

f) The Director shall prohibit any person from representing a party in any

proceeding under this Part if the Director finds that the person is or has been

guilty of violating the Code of Professional Responsibility, or Article 8 of the


18



Rules of the Illinois Supreme Court, or has intentionally disregarded the

provisions of the Act, rules promulgated under the Act,thereunder or written

instructions of the Director. The prohibition shall be in writing and shall be

applicable for a period not to exceed 120 days afterfrom the date the decision is

mailed to the party.



18


NOTICE OF PROPOSED AMENDMENT

1) Heading of the Part: Employment


3) Section Number: Proposed Action:

2732.306 Amendment

4) Statutory Authority: Implementing and authorized by Sections 205, 206, 206.1, 211.5,

212, 212.1, 215, 217, 218, 225, 1700 and 1701 of the Unemployment Insurance Act [820

ILCS 405/205, 206, 206.1, 211.5, 212, 212.1, 215, 217, 218, 225, 1700 and 1701].

5) A Complete Description of the Subjects and Issues Involved: Clarify the right of an

employer to request a transfer of contributions under 56 Ill. Adm. Code 2765.64. Permits

the electronic submission of various tax-related documents.


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The full text of the Proposed Amendment begins on the next page:


18





SUBCHAPTER c: RIGHTS AND DUTIES OF EMPLOYERS

PART 2732

EMPLOYMENT

SUBPART A: COVERAGE

Section

2732.125 Requirement That "Four Or More" Employees Of A Nonprofit Organization

Perform Services Within This State

SUBPART B: SERVICES IN EMPLOYMENT

Section

2732.200 Section 212 of the Act – Services in Employment

2732.203 The Effect Of Regulation By A Governmental Entity On "Direction Or Control"

Under Section 212 Of The Act

2732.205 Owner-Operators Of Motorized Vehicles

2732.210 Mandatory Jury Service

2732.215 Exemption From The Definition Of Employment For Participants In The

Americorps Program

2732.220 Exemption From The Definition Of Employment For Direct Sellers Of Consumer

Goods

2732.225 Exemption From The Definition Of Employment For Freelance Editorial Or

Photographic Work

2732.227 Exemption For The Delivery Or Distribution Of Newspapers Or Shopping News

To The Ultimate Consumer

2732.230 Domestic Service

2732.235 Effect Of Section 218 Of The Act On The Employment Status Of Certain

Relatives

SUBPART C: DETERMINING THE EMPLOYER

Section

2732.305 Employee Leasing Companies (Repealed)

2732.306 Employee Leasing Company – Obligation to Report the Identities of its Clients


18



AUTHORITY: Implementing and authorized by Sections 205, 206, 206.1, 211.5, 212, 212.1,

215, 217, 218, 225, 1700 and 1701 of the Unemployment Insurance Act [820 ILCS 405/205,

206, 206.1, 211.5, 212, 212.1, 215, 217, 218, 225, 1700 and 1701].

SOURCE: Adopted at 13 Ill. Reg. 8864, effective May 30, 1989; amended at 14 Ill. Reg. 673,

effective January 2, 1990; amended at 15 Ill. Reg. 11423, effective July 30, 1991; amended at 16

Ill. Reg. 8173, effective May 18, 1992; amended at 16 Ill. Reg. 12159, effective July 20, 1992;

amended at 17 Ill. Reg. 8809, effective June 2, 1993; amended at 17 Ill. Reg. 17947, effective

October 4, 1993; amended at 18 Ill. Reg. 16355, effective October 24, 1994; amended at 21 Ill.

Reg. 9456, effective July 2, 1997; emergency amendment at 24 Ill. Reg. 14788, effective

September 22, 2000, for a maximum of 150 days; amended at 25 Ill. Reg. 2003, effective

January 18, 2001; amended at 33 Ill. Reg. 9646, effective July 1, 2009; emergency amendment at

36 Ill. Reg. 18936, effective December 17, 2012 through June 30, 2013; amended at 37 Ill. Reg.

7440, effective May 14, 2013; amended at 42 Ill. Reg. ______, effective ____________.

SUBPART C: DETERMINING THE EMPLOYER

Section 2732.306 Employee Leasing Company − Obligation to Report the Identities of its

Clients

a) A report submitted to the Department in the manner provided for in subsection

(e), with the contents required by subsection (b), will satisfy the reporting

requirement in Section 206.1(B)(4) of the Act for each month or calendar quarter,

as applicable the case may be, ending on or after the date of the report's

submission. The report will also satisfy the reporting requirements for the month

or calendar quarter ending immediately prior to its submission when the employee

leasing company's contract with the client took effect in that month or quarter and

either:

1) the report is submitted within 30 days after the effective date of the

contract; or

2) the last day of the month or quarter is a day on which the Department is

closed and the report is submitted on the first succeeding day on which the

Department is open.

EXAMPLE: Employee Leasing Company A contracts with Client B to

lease employees to Client B, effective July 1, 2001. Client B has a

contribution rate of 1.0% for 2001. Employee Leasing Company A has a


18



contribution rate of 4.0% for 2001, and its relationship with Client B

meets the conditions set forth in Section 206.1(B)(1), (2) and (3) of the

Act. Beginning with the report due for the third quarter of 2001,

Employee Leasing Company A reports the leased employees on its wage

reports and pays contributions on those wages at its contribution rate.

Client B terminates its liability as of July 1, 2001 and stops filing any

wage reports. However, the Employee Leasing Company does not report

the leasing relationship to the Director until February 1, 2002. As a result,

Employee Leasing Company A cannot report the workers in question for

the third and fourth quarters of 2001 as its employees. The workers must

be reported by Client B. Since timely wage reports were not filed, nor

were contributions paid by Client B, penalties will be assessed and interest

charged. Waiver of thesuch penalty and interest can be granted only for

the reasons set forth in 56 Ill. Adm. Code 2765. Employee Leasing

Company A may amend its wage reports to remove the workers and then

file for a refund or adjustment as provided in Section 2201 of the Act or

request a transfer of contributions from the account of the employee

leasing company to the account of the client pursuant to Section 2765.64.

b) Contents of Report

1) In order to satisfy the reporting requirement in Section 206.1(B)(4) of the

Act, a report must contain:

A) the name of the client;

B) a general description of the client's business and business

locations;

C) the client's unemployment insurance account number (if any); and

D) the effective date of the employee leasing company's contract with

the client.

2) The report shall be accompanied by either a power of attorney to represent

the client or a certification by an officer or employee of the employee

leasing company that the information contained in the report is true and

correct to the best of his or her knowledge.


18



c) Whenever the employee leasing relationship between an employee leasing

company and its client is terminated, the employee leasing company must report

the name of the client, the client's unemployment insurance account number (if

any) and the effective date of the termination within 30 days after that date.

d) The terms used in this Section shall have the meanings set forth for them in

Section 206.1 of the Act.

e) The notices required by this Section shouldshall be submitted online using MyTax

Illinois (mytax.illinois.gov) or by mailmailed or sent by facsimile transmission to

the Illinois Department of Employment Security, Revenue Division, 33 S. State

St., 10th Floor, Chicago IL 60603, Attn: Employer Services (FAX No.: 217-557-

1948312-793-6296). A facsimile transmission is subject to 56 Ill. Adm. Code

2712.1 with respect to the risk of nontransmission and the effect of the dates

imprinted by the Department's and sender's respective telefax machines.



18



1) Heading of the Part: Notices, Records, Reports



2760.105 Amendment

2760.120 Amendment

2760.125 Amendment

2760.135 Amendment

2760.140 Amendment

2760.145 Amendment

2760.150 Amendment


700, 1400, 1400.2, 1401, 1402, 1404, 1405, 1507, 1700, 1701, 1706, 1800, 1801, 2201

and 2208 of the Unemployment Insurance Act [820 ILCS 405/204, 234, 245, 300, 302,

700, 1400, 1400.2, 1401, 1402, 1404, 1405, 1507, 1700, 1701, 1706, 1800, 1801, 2201

and 2208].

5) A Complete Description of the Subjects and Issues Involved: Permits the electronic

submission of various tax-related documents. Provides for the discontinuation of the

practice of mailing quarterly wage reports and remittance forms to employers through the

U.S. Mail and provide for downloading of the material.


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Chicago IL 60603

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fax: 312/793-5645






















18




included on either of the 2 most recent agendas because the revisions were not anticipated

at the time.



18






PART 2760

NOTICES, RECORDS, REPORTS

SUBPART A: GENERAL OBLIGATIONS

Section

2760.1 Posting And Maintaining Notices

2760.5 Identification Of Workers Covered By The Act

2760.10 Filing By Mail

SUBPART B: REPORTS AND RECORDS

Section

2760.100 Reports and the Report for Household Employers

2760.105 Reports ofOf Employing Units as toAs To Their Status

2760.110 Employing Unit Terminating Business

2760.115 Records With Respect To Employment

2760.120 Employer's Contribution and Wage Report and Report for Household Employers

2760.125 Employer's Wage Report

2760.128 Wage Report Filing for Employers that Employ Household Workers and Elect to

Report Their Wages on an Annual Basis

2760.130 Reporting "Excess" Wages

2760.135 Remittance of Contributions Due and Use of Payment VoucherTransmittal Form

2760.140 Use of Electronic Data Processing Media for Quarterly Reporting Prior to 2013

2760.141 Use of Electronic Data Processing Media for Monthly or Quarterly Reporting

2760.145 Correcting the Employer's Contribution and Wage Report or Report for

Household Employers

2760.150 Consequences of an Error in the Preparation of the Employer's Contribution and

Wage Report or Report for Household Employers and Procedures for the Waiver

or Elimination of Certain Penalties


1400.2, 1401, 1402, 1404, 1405, 1507, 1700, 1701, 1706, 1800, 1801, 2201 and 2208 of the

Unemployment Insurance Act [820 ILCS 405/204, 234, 245, 300, 302, 700, 1400, 1400.2, 1401,

1402, 1404, 1405, 1507, 1700, 1701, 1706, 1800, 1801, 2201 and 2208].


18



SOURCE: Department of Labor, Bureau of Employment Security Regulations 4, 7 and 8, filed

as amended May 3, 1977, effective May 13, 1977; Regulation 11 filed as amended May 4, 1977,

effective May 14, 1977; Regulations 5 and 32 filed as amended June 23, 1977, effective July 3,

1977; Regulations 6 and 12 filed as amended September 12, 1977, effective September 12, 1977;

rules repealed by operation of law on October 1, 1984; new rules adopted at 10 Ill. Reg. 6939,

effective April 15, 1986; emergency amendment at 12 Ill. Reg. 222, effective January 1, 1988,

for a maximum of 150 days; amended at 12 Ill. Reg. 13604, effective August 4, 1988; amended

at 12 Ill. Reg. 16070, effective September 23, 1988; amended at 16 Ill. Reg. 3993, effective

February 27, 1992; emergency amendment at 17 Ill. Reg. 13798, effective August 4, 1993, for a

maximum of 150 days; amended at 18 Ill. Reg. 261, effective December 27, 1993; emergency

amendment at 18 Ill. Reg. 2631, effective February 3, 1994, for a maximum of 150 days;

emergency amendment modified at 18 Ill. Reg. 7492; emergency expired July 3, 1994; amended

at 18 Ill. Reg. 14942, effective September 27, 1994; amended at 29 Ill. Reg. 1917, effective

January 24, 2005; emergency amendment at 29 Ill. Reg. 6783, effective April 25, 2005, for a

maximum of 150 days; emergency expired September 25, 2005; amended at 33 Ill. Reg. 9652,

effective July 1, 2009; amended at 35 Ill. Reg. 6136, effective March 25, 2011; emergency

amendment at 36 Ill. Reg. 18947, effective December 17, 2012 through June 30, 2013; amended

at 37 Ill. Reg. 7451, effective May 14, 2013; emergency amendment at 38 Ill. Reg. 22249,

effective November 17, 2014, for a maximum of 150 days; emergency expired April 15, 2015;

amended at 39 Ill. Reg. 10755, effective July 27, 2015; amended at 42 Ill. Reg. ______, effective

____________.

SUBPART B: REPORTS AND RECORDS

Section 2760.105 Reports ofOf Employing Units as toAs To Their Status

a) Any employing unit that commences business in any manner whatsoever, whether

by purchase of a business already being operated, by starting a new business, or

otherwise, shall, within 30 days after thesuch commencement, file a signed form

REG-UI-1 ("Report To Determine Liability Under the Illinois Unemployment

Insurance Act)", or a document that includes the same information.

b) In addition to complying with the requirements of subsection (a), whenwhere

applicable, any employing unit that succeeds to substantially all of the assets of an

organization, trade or business, or of a severable portion of those assets, shall file

a signed form UI-1 S&P ("Report To Determine Succession)" or a document that

includes the same information. A report of such a sale or transfer by the successor

to a severable portion of the predecessor's organization, trade or business shall not


18



constitute a joint application for the predecessor's experience rating record,

unless the report also includes the additional requirements set forth in Section

1507(B)(2) through -(3) of the Unemployment Insurance Act [820 ILCS 405]

(Act).

c) The reports required under subsections (a) and (b) shouldshall be filed online

using MyTax Illinois (mytax.illinois.gov) or by mail to: Central Registration

Division, Illinois Department of Revenue, PO Box 19030, Mail Code 3-222,

Springfield IL 62794-9030with the Director of Employment Security, 33 South

State Street, 10th Floor, Chicago, Illinois 60603, Attn: Revenue Division. Copies

of forms REG-UI-1 and UI-1 S&P are available at that address and at

www.ides.illinois.govstate.il.us.


Section 2760.120 Employer's Contribution and Wage Report and Report for Household

Employers

a) Except for employers that file the Report for Household Employers, as provided

in Sections 2760.125 and 2760.128 and employers subject to Section 2760.140,

each quarter Thethe Department shall make available on its website

(ides.illinois.gov), anprovide each employer subject to the Unemployment

Insurance Act, including employers electing to make payments in lieu of paying

contributions under Section 302, 1404 or 1405 of the Act [820 ILCS 405/302,

1404 or 1405], with a preprinted packet that includes a form Employer's

Contribution and Wage Report form, in part, for filing its quarterly

unemployment insurance contribution reports and a Report for Household

Employers form for employers that file annually pursuant to Section 1400.2.

Except for employers subject to Section 2760.141, and except for other employers

that file unemployment insurance contribution and wage reports using the

Department of Revenue's online tax system, MyTax Illinois (mytax.illinois.gov),

each employer subject to the Act, including employers electing to make payments

in lieu of paying contributions under Section 302, 1404 or 1405 of the Act, must

file unemployment insurance contribution and wage reports using the contribution

and wage report provided on the Department's website or otherwise provide all of

the information required by the form as provided in Section 2760.125(a)(5), and

shall provide all of the information required on the Employer's Contribution and

Wage Report form or Report for Household Employers form. If the employer fails

to sign and complete the form provided on the Department's website or otherwise


18



provide all of the information required by the form, the report may. The use of a

blank (not preprinted for the employer) form will be considered an incomplete

submission and be returned to the employer for resubmission. Replacement

preprinted forms are available upon request (see Section 2760.125(a)(6) for

extensions of the time for filing).

1) In the event that an employer files a petition forin bankruptcy under the

Bankruptcy Code (USC Title 11), the employer shall file two Employer's

Contribution and Wage Reports or two Reports for Household Employers,

as applicablethe case may be, for the quarter in which the petition is filed.

An employer subject to the mandatory electronic reporting requirement of

Section 2760.1412760.140 shall file two contribution reports for the

quarter in which the petition is filed and two reports pursuant to Section

2760.125(a)(1) for the third month of the quarter in which the petition is

filed. One report shall address the period beginning on the first day of the

quarter to, and including, the day prior to the date of the filing of the

petition. The other report shall address the period beginning on the date of

the filing of the petition to, and including, the last day of the calendar

quarter.

EXAMPLE 1: Corporation A, which is not subject to the mandatory

electronic reporting requirement of Section 2760.1412760.140, files a

petition forin bankruptcy on August 15, 2013. Corporation A is required to

file two Employer's Contribution and Wage Reports for the third quarter

of 2013, both due October 31, 2013. One will cover the period throughto

and including August 14, 2013, and Corporation A will calculate

contributions due for that period. The other report will cover the period

ofbeginning August 15, 2013 throughto and including, September 30,

2013 and will reflect the contributions due for that period.

EXAMPLE 2: Employer A, which is a household annual filer, files a

petition forin bankruptcy on August 15, 2013. Employer A is required to

file two reports for Household Employers, both due April 15, 2014. One

will cover the period throughto and including August 14, 2013, and

Employer A will calculate contributions due for that period. The other

report will cover the period ofbeginning August 15, 2013 throughto and

including December 31, 2013 and will reflect the contributions due for

that period.


18



2) IfIn the event that an employer transfers substantially all of its employing

enterprises to another employing unit but continues to be a liable

employer, the employer shall file two Employer's Contribution and Wage

Reports for the calendar quarter in which the transfer occurs. An

employer subject to the mandatory electronic reporting requirement of

Section 2760.1412760.140 shall file two contribution reports for the

quarter in which the transfer occurs and two reports pursuant to Section

2760.125(a)(1) for the third month of the quarter in which the transfer

occurs. One report shall address the period beginning on the first day of

the quarter to, and including, the date of transfer. The other report shall

address the period beginning on the first day after the date of transfer to,

and including, the last day of the calendar quarter.

EXAMPLE: On August 15, 1994, Corporation A, which owns a retail

establishment named the XYZ Store, and is not subject to the mandatory

electronic reporting requirement of Section 2760.1412760.140, sells the

entire business except the name "XYZ Store" to Corporation B. The

officers of Corporation A continue to perform services and are paid wages

after the transfer. Corporation A is required to file two Employer's

Contribution and Wage Reports for the third quarter of 1994, both due

October 31, 1994. One will cover the period throughto, and including,

August 15, 1994, and Corporation A will calculate contributions due for

that period. The other report will cover the period ofbeginning August 16,

1994 throughto, and including, September 30, 1994, and will reflect the

contributions due for that period.

3) The employer may obtain a second imprinted Employer's Contribution and

Wage Report form or Report for Household Employers upon request (see

Section 2760.125(a)(6) for extensions of time for filing).

34) IfIn the event the employer files only one report for a quarter for which

two reports are required under subsection (a)(1) or (a)(2) and provides the

total and taxable wages for the entire quarter in the report, or filesfiled

only one report for a year for which two reports are required, and provides

the total and taxable wages for the entire year in the report, the report will

be deemed to be insufficient as provided in Section 1402 of the Act. The

employer must file, within 30 days after the mailing of a notice to it of

insufficiency, the two reports as required in either subsection (a)(1) or

(a)(2), as applicable, or the penalties provided in Section 1402 of the Act


18



shall apply.

45) Except as otherwise provided in this subsection (a)(45), with respect to an

employer not subject to the mandatory electronic reporting requirement of

Section 2760.1412760.140, the penalties provided for in Section 1402 of

the Act regarding each report required under subsection (a)(1) or (a)(2) of

this Section shall be calculated on the basis of the total wages paid and

contributions due for the period to which that report applies. Regardless

of whether the employer fails to timely file one or both of the reports, the

total penalty for that failure shall not exceed $5,000, and the minimum

penalty for the failure shall be $50. The minimum penalty for willful

failure to pay any contribution, or part of any contribution, with intent to

defraud the Director, shall be $400, regardless of whether the employer

fails to make the payment for both or only one of the periods.

EXAMPLE: An employer not subject to the mandatory electronic

reporting requirement of Section 2760.1412760.140 timely files a report

representing the part of the quarter prior to the date of filing of the petition

forin bankruptcy. He or she is late in filing the report for the part of the

quarter including the date the petition is filed. The penalty will be

calculated only on the amount of wages paid as reflected in the report for

the period including the date the petition forin bankruptcy is filed.

b) In addition to the employer providing its name, address, account number and

Federal Employer Identification Number on the Employer's Contribution and

Wage Report or Report for Household Employers, the employer must provide the

total wages paid during the quarter, the taxable wages paid during the quarter and

the number of employees during the pay period that includes the 12th day of each

month of that quarter. For purposes of this subsection (b), when an employer is

required to file two reports pursuant to subsection (a)(1) or (a)(2), "quarter" shall

mean the period required to be addressed by the report.


Section 2760.125 Employer's Wage Report

a) Filing Wage Reports

1) Except as provided in subsection (a)(4), an employer subject to the


18



mandatory electronic reporting requirement of Section 2760.1412760.140

shall, for each of the first two months of each calendar quarter, report, in

addition to the employer's name, account number and Federal Employer

Identification Number (FEIN), the name and Social Security

numberNumber of each covered worker, the total wages paid to each

covered worker (except as provided in Section 2760.130), and the total

wages paid to all covered workers combined. Except as provided in

subsection (a)(4), an employer subject to the mandatory electronic

reporting requirement of Section 2760.1412760.140 shall, for the third

month of each calendar quarter, submit a report (or reports if so required

under Section 2760.120(a)(1) or (2)) containing the same information for

the entire calendar quarter as is required pursuant to subsection (a)(2). The

report required under this subsection (a)(1) for each month shall be filed

on or before the last day of the calendar month next following the close of

the month.

EXAMPLE: In 2011 and 2012, Employer A is subject to the mandatory

electronic reporting requirement of Section 2760.141 for the period July 1,

2016 through June 30, 2017had more than 250 employees for the calendar

year, as determined in accordance with Section 2760.140(b). Therefore,

for each of January and February of 20172013, Employer A is required to

report its name, account number and FEIN; and also report the name,

Social Security numberNumber and total wages for the month of each

covered worker (except as provided in Section 2760.130);, and the total

wages for the month of all covered workers combined.

A) For the purpose of calculating the monthly wages to determine any

penalty for the third month of each quarter, the wages reported for

the first and second months of the quarter shall be deducted from

the quarterly wages reported by the employer for the third month

of the quarter.

i) EXAMPLE: Employer A reports $5,000 in wages for

January and $4,000 in wages for February. On the report

for March, Employer A then reports $17,000 in wages for

the entire first quarter. The Department will calculate

March wages as follows: $17,000 - ($5,000 + $4,000) =

$8,000.


18



ii) EXAMPLE: Employer A timely reports wages of $7,000 for

July 2013 and $8,000 for August 2013. On November 3,

2013, Employer A files its wage report for September of

2013, reporting a total of $15,000 in wages paid for the

quarter. Employer A will be assessed a minimum penalty of

$50 for September 2013 because it filed its report for the

month late, even though it apparently paid no wages for the

month of September.

B) If the employer fails to file its monthly wage reports for the first

two months of a quarter, for the purpose of determining the penalty

to be assessed, the Department shall use the Employer's quarterly

reported wages and divide by three.

EXAMPLE: Employer X fails to report monthly wages for April

and May of 2013, but Employer X reports quarterly wages of

$6,000 for the second quarter of 2013. The Department shall

estimate monthly wages of $2,000 for April and $2,000 for May.

2) Except as provided in subsection (a)(3) or (a)(4), every employer subject

to the Unemployment Insurance Act, and not subject to the electronic

reporting requirement of Section 2760.1412760.140, including employers

electing to make payments in lieu of paying contributions under Section

302, 1404 or 1405 of the Act [820 ILCS 405/302, 1404 or 1405], shall file

a report, or reports if so required under Section 2760.120(a)(1) or (2), each

calendar quarter, listing the name and Social Security numberNumber of

each covered worker and, except as provided in Section 2760.130, the

total wages paid to each worker. Except as provided in Section

2760.1412760.140, the reports shall be made on the form designated

Employer's Contribution and Wage Report, which is available on the

Department's website (ides.illinois.gov). The report due under this

subsection (a)(2)part of a preprinted packet provided each quarter by the

Department of Employment Security (Agency) and shall be filed on or

before the last day of the calendar month next following the close of the

calendar quarter.

3) Except as provided in subsection (a)(4), for the quarter in which an

employing unit that becomes an employer, including employers electing to

make payments in lieu of paying contributions under Sections 302, 1404


18



and 1405 of the Act, it shall file the form designated by the Director as

Employer's Contribution and Wage Report (listing the information

required by subsection (a)(2)) for the quarter in which it becomes an

employer and each subsequent quarter ending prior to the mailing of the

notice described in subsection (a)(3)(A). The reports due under this

subsection (a)(3) shall be filed on or before whichever of the following

dates is later:

A) The 30th day following the date upon which the Director mails the

employing unit a notice that includes information on how the

employing unit can file a wage report required by this Section,

Section 2760.120 or Section 2760.145 using MyTax Illinois

(mytax.illinois.gov), or how to access blank copies of the forms for

employing units that are not subject to Section 2760.141 and

would like to file on paperform designated by the Director as the

Employer's Contribution and Wage Report is mailed to the

employing unit for completion; or

EXAMPLE 1: An employing unit files a (mytax.illinois.gov) REG-

UI-1 on April 13, 2018, showing that it became an employer in the

first quarter of 2018. The Director mails the notice described in

this subsection (a)(3)(A) on April 20, 2018. The employer has until

May 20, 2018 to file its contribution and wage report for the first

quarter of 2018. The deadline for filing the wage report for the

second quarter of 2018, and all subsequent reports, is governed by

subsection (a)(2).

EXAMPLE 2: An employing unit files a REG-UI-1 on August 14,

2018, showing that it became an employer in the first quarter of

2018. The Director mails the notice described in this subsection

(a)(3)(A) on August 21, 2018. The employer has until September

20, 2018 to file its contribution and wage report for the first and

second quarters of 2018. The deadline for filing the wage report for

the third quarter of 2018, and all subsequent reports, is governed

by subsection (a)(2).

B) The last day of the calendar month next following the calendar

quarter in which the employing unit becomes an employer.


18



EXAMPLE 1: An employing unit files a REG-UI-1 on February

15, 2018, showing that it became an employer in the first quarter of

2018. The Director mails the notice described in subsection

(a)(3)(A) on February 20, 2018. The employer has until April 30,

2018 to file its contribution and wage report for the first quarter of

2018. The deadline for filing all subsequent reports is governed by

subsection (a)(2). When a notice described in subsection (a)(3)(A)

has been mailed to the employer and a due date for the report for a

quarter is initially established pursuant to this subsection (a)(3)(B),

the due date shall not change as the result of mailing another notice

subsequent to the initially established due date.

EXAMPLE 2: An employing unit files a REG-UI-1 on April 13,

2018, showing that it became an employer in the second quarter of

2018. The Director mails the notice described in subsection

(a)(3)(A) on April 19, 2018. The employer has until July 31, 2018

to file its contribution and wage report for the second quarter of

2018 (the last day of the calendar month next following the

calendar quarter in which the employing unit became an

employer). The employer files its contribution and wage report for

the second quarter of 2018 on August 1, 2018, making it late and,

therefore, subject to a penalty. Included in the employer's filing for

the second quarter is a contribution and wage report for the first

quarter of 2018. Based on this report, the liability date of the

employer is moved to January 1, 2018. Since the liability date of

the employer was moved to an earlier quarter, the Director mails

an additional notice described in subsection (a)(3)(A) to the

employer on August 8, 2018. Pursuant to subsection (a)(3)(A), the

employer has until September 7, 2018 to file its contribution and

wage report for the first quarter of 2018. Since the employer

already filed its report for the first quarter, the first quarter report

will not be considered late. However, the July 31, 2018 due date

initially established for the second quarter report will not change as

result of the mailing of the second notice.

4) For employers who have elected to file annually pursuant to Section

1400.2 of the Act, with respect to the first quarter for which the employing

unit has made the election and each quarter thereafter for which the

election remains in effect, it shall file the form designated as the Report


18



for Household Employers listing the information required by subsection

(a)(2). The report due under this subsection (a)(4) shall be filed on or

before whichever of the following dates is later:

A) The 30th day following the date upon which the Director mails the

employer a notice that includes information on how to access the

form designated as the Report for Household Employers is mailed

to the employing unit for completion; or

B) April 15 of the calendar year immediately following the close of

the quarter to which the report applies.

5) The information with respect to each worker required by subsection (a)(2)

may be submitted on a form other than that designated by the Director as

the Employer's Contribution and Wage Report, or the Report for

Household Employers, provided that the Director has approved the use of

the substitute form.

6) Upon written request filed with the Director prior to the due date of the

report, the Director shall, for any reasonable cause shown, grant in writing

an extension of a maximum of 15 days for the filing of any report required

on a monthly basis under subsection (a)(1) and 30 days for the filing of

any report required under subsection (a)(2), (a)(3) or (a)(4). A reasonable

cause is when an employer cannot meet a due date through no fault of its

own or because of circumstances beyond its control.

A) The request shall make a full explanation of the reasons for the

request and shall state the date to which the extension is desired.

B) If an employer that has been granted an extension of time pursuant

to this subsection (a)(6) fails to file the report on or before the

extended due date, the penalty referred to in subsection (b) shall

accrue from the original due date as if no extension had been

granted.

b) Any employer, including an employer electing to make payments in lieu of

paying contributions under Section 302, 1404 or 1405 of the Act, which, during

any calendar quarter (or any calendar month, in the case of an employer subject to

the mandatory electronic reporting requirement of Section 2760.1412760.140),


18



has paid wages to any of its workers and thatwhich fails to file reports of those

wages on or before the dates they are due under the provisions of this Section,

shall pay penalties as set forth in Section 1402 of the Act and 56 Ill. Adm. Code

2765.

c) An extension in the period of time for filing a wage report does not extend the

deadline for making payment of any required contributions.


Section 2760.135 Remittance of Contributions Due and Use of Payment

VoucherTransmittal Form

a) Except in the case of an employer subject to Section 2760.140, each quarter, or

once a year for employers who file the Report for Household Employers, Thethe

Department shall make available, through the Department of Revenue's online tax

system, MyTax Illinois (mytax.illinois.gov) and on the Department of

Employment Security's website (ides.illinois.gov), Agency will provide each

employer subject to the Unemployment Insurance Act with a preprinted packet

that includes a Payment VoucherTransmittal Form that is to be returned with any

payment, except a payment that is made through electronic funds transfera check

for any unemployment insurance contributions due for the quarter covered by that

packet. Except for payments made through electronic funds transfer, every

employer must enclose a Payment Voucher with any payment or otherwise

provide all of the information the Payment Voucher would provide, regardless of

the amount due. For any payment that is not made through electronic funds

transfer, failure of the employer to enclose a Payment Voucher with its payment,

or otherwise provide all of the information the Payment Voucher would provide,

may result in a return of that payment to the employer for resubmission.

1) The Payment VoucherTransmittal Form and check must be sent to the

address indicated on the formin the packet.

2) A separate check, made payable to the DepartmentDirector of

Employment Security, must accompany each Payment

Voucher,Transmittal Form and the Employer's Illinois Account Number

should be written on the face of the check.

b) Failure of the employer to submit a check to the address indicated on the form


18



maypacket will result in a return of that check to the employer for resubmission.

If the resubmitted check is received at the proper address after the due date

provided in Section 1400 of the Act, interest shall accrue as provided in Section

1401 of the Act. The Director shall not grant waiver for any interest so accrued.

c) Notwithstanding any other provisions to the contrary, an employer may remit

payments other than by check in accordance with instructions provided on the

Department'sAgency's website, www.ides.state.il.us.


Section 2760.140 Use of Electronic Data Processing Media for Quarterly Reporting Prior

to 2013

a) Except as provided in subsections (g) and (h), the reports required by Sections

2760.120 and 2760.125 for a quarter beginning prior to calendar year 2013 must

be filed by the use of an electronic data processing medium that meets the

approval of the Director. The Director shall approve the use of electronic data

processing media for reporting if he/she finds that:

1) All of the data required by the Director for quarterly reporting are also

provided by the employer on the electronic data processing medium; and

2) The employer's electronically data processed reports are compatible and

readable by the electronic data processing equipment used by the Director

without the need for any programming adjustment by the Director.

b) Subsection (a) shall only apply to an employer for a calendar year if the employer

had 250 or more individuals in its employ (though not necessarily at the same

time) during the prior calendar year.

EXAMPLE: During 2011, the employer has no more than 225 individuals in its

employ at any one time. However, during the year, 30 of these individuals leave

the employ of the employer and are replaced by 30 other individuals. Though the

employer's labor force never exceeds 225 individuals at any one time, the

employer had 255 individuals in its employ during 2011 and, therefore, is subject

to subsection (a) for 2012.

c) The failure of an employer that is subject to subsection (a) to report in the manner


18



required by that subsection shall subject the employer to the penalties set forth in

Section 1402 of the Act.

EXAMPLE: On October 20, 2012, an employer subject to the reporting

requirements of subsection (a) mails a paper version of the report due for the third

quarter of 2012 instead of filing it as required by subsection (a). On November1,

2012, if that employer has not yet complied with subsection (a), it is delinquent in

the filing of its report for the third quarter of 2012, the penalty set forth in Section

1402 of the Act shall be imposed, and any payment it ultimately submits for the

third quarter of 2012 shall be reallocated in accordance with 56 Ill. Adm. Code

2765.45 to reflect the payment of the penalty and a delinquency in contributions

due. If the requirements of subsection (a) have still not been complied with

before December 1, 2012 and the maximum penalty has not yet been imposed, the

penalty will be increased on that date and the employer's payment again

reallocated to reflect payment of the increased penalty and an additional

delinquency.

d) When not required by subsection (a), the reports required by Sections 2760.120

and 2760.125 may be made by the use of an electronic data processing medium

that meets the prior approval of the Director. The Director shall approve the use

of an electronic data processing medium for reporting if it meets the requirements

of subsection (a) and if the employer agrees to file both reports by the use of that

electronic data processing medium.

e) Any employer that was authorized by the Director, before December 27, 1993, to

submit both of its quarterly reports on an electronic data processing medium may

continue to do so without further approval by the Director, on the condition that

the medium continues to meet the requirements of subsection (a). The employer

is, however, subject to the requirements of subsection (f).

f) The first report submitted electronically pursuant to this Section for any calendar

year must be accompanied by a certification, on a form provided for this purpose

by the Director, signed by the owner, partner or authorized officer or official, that

the information submitted is true and correct to the best of his or her knowledge

and belief and that no part of the contribution reported was or is to be deducted

from the worker's wages. This subsection (f) does not apply if the method of

electronic submission being used includes the certification described in this

subsection (f) as part of the report.


18



g) When the employer demonstrates that the Commissioner of the Internal Revenue

Service has waived the electronic reporting requirements of Treasury Regulation

301.6011-2 (26 CFR 301.6011-2), as in effect on January 1, 2012, for the

employer with respect to documents covering a calendar year, the Director shall

waive the reporting requirements of this Section for the employer with respect to

reports covering the subsequent calendar year.

EXAMPLE: In February 2012, the Commissioner of the Internal Revenue

Service notifies an employer that the requirements of Treasury Regulation

301.6011-2 (26 CFR 301.6011-2) have been waived with respect to Form W-2

data covering calendar year 2011, meaning that the employer will not be required

to submit the data electronically in 2012. If the employer demonstrates the waiver

to the Director, the Director will waive the requirements of subsection (a) with

respect to reports covering 2012.

h) When an employer was not subject to the mandatory electronic reporting

requirements of this Section for any quarter of the prior calendar year, but is

subject to those requirements for the current calendar year, the employer may, for

any period through the second quarter of the current calendar year, file its

quarterly reports by mailing paper versions of the reports in compliance with

Sections 2760.120 and 2760.125.

EXAMPLE: The employer had, in total, 240 individuals in its employ during

calendar year 2010. In calendar year 2011, the employer had, in total, 260

individuals in its employ. The employer will not be required to report

electronically for any period through the second quarter of calendar year 2012 but

will be required to report electronically for at least the third and fourth quarters of

that year.


Section 2760.145 Correcting the Employer's Contribution and Wage Report or Report for

Household Employers

a) Should an employer make an error in the reporting of total or taxable wages paid

during a quarter or in the calculation of its contributions due, it shall correct that

error by preparation of the form "Employer's Correction Report For The Quarter

Ending ." This same form shall be used to correct errors in reporting wages of

individual workers. This form requires the same information as the original


18



Report in addition to the corrected information and an explanation of the change.

b) When an employer incorrectly reports the name or Social Security Number of a

worker on the wage report portion of the Employer's Contribution and Wage

Report or Report for Household Employers, or, in the case of an employer subject

to the mandatory electronic reporting requirement of Section 2760.1412760.140,

on the report for the third month of the quarter, a correction shall be made by the

use of form "Social Security Number And Name Change Notice" . This form

requires the original information reported and the corrected information.

c) An employer may make the corrections described in subsections (a) and (b) by

mailing a signed "Employer's Correction Report For The Quarter Ending ___" or

"Social Security Number Correction And Name Change Notice", as applicable, to

the address provided on the forms, which are available on the Department's

website (ides.illinois.gov). An employer may also amend an Employer's

Contribution and Wage Report or Report for Household Employers as described

in subsections (a) and (b) online using MyTax Illinois by submitting a signed

form "Amend Quarterly Wage Report". In the case of an employer subject to the

mandatory electronic reporting requirement of Section 2760.141, an employer

may make corrections to the reports required for the first two months of a

calendar quarter through the MyTax Illinois website by submitting a signed form

"Employer's Correction Report for the Month Ending ___" on or before the last

day of the second calendar month following the close of the month for which the

report is due. Corrections to a monthly wage report may not be made by mail.


Section 2760.150 Consequences of an Error in the Preparation of the Employer's

Contribution and Wage Report or Report for Household Employers and Procedures for

the Waiver or Elimination of Certain Penalties

a) If an error in the preparation of the Employer's Contribution and Wage Report or

Report for Household Employers results in an underreporting of contributions

due, the employer shall be liable for any penalty and the delinquent contributions

plus interest, calculated in accordance with Section 1401 of the Act [820 ILCS

405/1401], from the date that the original report was due.

b) Except as provided in subsection (c), if an error in the preparation of the

Employer's Contribution and Wage Report or Report for Household Employers


18



resulted in an overpayment of contributions, the employer may file a claim for an

adjustment or refund. The claim must be signed and filed within the period

provided in Section 2201 of the Act. The request shall be filed on thea form

entitled "Employer's Claim for Adjustment/Refund" as provided in 56 Ill. Adm.

Code 2725.115. The forms may be obtained by writing to the Department of

Employment Security, Revenue Division, 33 S. State St., 10th Floor, Chicago IL

60603 or on-line from the Agency's website, www.ides.state.il.us. On the form,

the employer must provide certain identifying information (name, account

number, address and telephone number), its computation of the amount of its

claim and the basis for its claim. This form must be signed by the owner, a

partner, an officer of a corporation or its authorized agent who states that the

information contained in the form is true and correct to the best knowledge and

belief of the signer.

c) Except as otherwise provided in subsection (d), in the event that the employer is

mailed a Statement of Account that indicates the employer's account has a credit

balance and the employer wishes to obtain a cash refund, the employer may file

for the refund within the period provided in Section 2201 of the Act, on the form,

Employer Request for Refund − Statement of Account. The form may be

obtained and shall be completed in the same manner as provided in subsection (b).

d) Except as otherwise provided in this subsection, in the event that the employer has

overpaid a penalty as the result of Section 2760.141 or 56 Ill. Adm. Code

2765.62, the Department shall apply the credit as an adjustment against other

liabilities of the employer under the Act. The Department shall grant a refund of

any credit resulting from Section 2760.141 or 56 Ill. Adm. Code 2765.62 if the

credit has not been used as an adjustment by January 31, 2016.



18



1) Heading of the Part: Payment of Unemployment Contributions, Interest and Penalties



2765.30 Amendment

2765.45 Amendment

2765.64 Amendment

2765.71 Amendment

2765.73 Amendment

2765.74 Amendment

2765.75 Amendment

2765.85 Amendment

2765.200 Amendment


603, 612, 701, 1400, 1401, 1402, 1403, 1404, 1405, 1502.1, 1503, 1507, 1508, 1509,

1700, 1701, 2041 and 2600 of the Unemployment Insurance Act [820 ILCS 405/212,

302, 500, 601, 602, 603, 612, 701, 1400, 1401, 1402, 1403, 1404, 1405, 1502.1, 1503,

1507, 1508, 1509, 1700, 1701, 2401 and 2600].

5) A Complete Description of the Subjects and Issues Involved: Updates the amount that

will be disregarded from $1 to $2 to reflect the statutory change made by PA 90-554.

Clarifies how employer payments will be applied within a quarter. Establishes

circumstances under which an employee leasing company's former client can request that

payments the leasing company erroneously made to its own account, rather than the

client's account, be transferred to the client's account. Clarifies the period for which IDES

will waive interest where the agency does not issue a final decision regarding a

determination and assessment within 180 days after the determination and assessment is

protested. Establishes a penalty/interest waiver for a federally chartered nonprofit

organization under certain circumstances. Clarifies time frames within which employers

can submit additional materials regarding various tax/liability-related issues. Establishes

how experience will be allocated in the event of a transfer of trade or business between

two or more employers under substantial common ownership, management or control.


rulemaking: None



18













Chicago IL 60603

312/793-2338

fax: 312/793-5645
















18














18






PART 2765

PAYMENT OF UNEMPLOYMENT CONTRIBUTIONS, INTEREST AND PENALTIES


Section

2765.1 Unemployment Contributions Not Deductible From Wages

2765.5 Definitions

2765.10 Payment Of Contributions

2765.11 Employers Who Employ Household Workers and Pay Contributions on an

Annual Basis

2765.15 Liability For The Entire Year

2765.18 Liability Of A Third Party Purchaser Or Transferee For The Due And Unpaid

Contributions, Interest And Penalties Of The Seller Or Transferor's Seller or

Transferor

2765.20 Contributions Of EmployerEmployers By Election

2765.25 Payments In Lieu Of Contributions

2765.30 When Payments inIn Lieu ofOf Contributions Are Payable

2765.35 Payments When Reimbursable Employer Becomes Contributory

2765.40 Payments When Contributory Employer Becomes Reimbursable

2765.44 Fee For Not Sufficient Funds (NSF) Checks

2765.45 Application ofOf Payment

2765.50 Accrual Of Interest

2765.55 Imposition Of Penalty

2765.56 Imposition of Late Reporting Penalty for Employers Who Employ Household

Workers and Elect to File Reports on an Annual Basis

2765.60 Payment Or Filing By Mail

2765.61 Waiver of Interest and Penalty for Employers Who Employ Household Workers

and Who File Reports and Pay Contributions on an Annual Basis (Repealed)

2765.62 Temporary Waivers of Penalty

2765.63 When Payment Due And Consequences Of Upward Revision In Employer's

Contribution Rate

2765.64 Consequences When anWhere An Employee Leasing Company Has Erroneously

Reported Wages andAnd Paid Contributions When theWhich Wages Should

Have Been Reported andAnd Contributions Paid byBy Its Client


18



2765.65 Waiver Of Interest Or Penalty

2765.66 Waiver Of Interest Accruing Because Of Certain Types Of Employees For

Periods Prior To January 1, 1988

2765.67 Partial Waiver Of Interest Where An Employer Has Erroneously Reported Wages

To The Wrong State

2765.68 Waiver of Penalty for Certain Employers for 1987 and Thereafter Wage Reports

2765.69 Partial Waiver Of Interest Where An Employer Has Erroneously Paid Its Federal

Unemployment Tax Act (FUTA) Tax In Full But Has Failed To Pay Its Illinois

Unemployment Insurance Contributions

2765.70 Waiver Of Interest For Certain Nonprofit Organizations or Local Governmental

Entities

2765.71 Waiver of Interest Accruing Due to aTo A Delay in theIn The Issuance of aOf A

Decision on aOn A Protested Determination andAnd Assessment

2765.73 Waiver ofOf Penalties and Interest forFor Certain Nonprofit

OrganizationsHospitals

2765.74 Time forFor Paying orOr Filing Delayed Payment orOr Report

2765.75 Application for Waiver

2765.80 Approval Of Application For Waiver

2765.85 Insufficient orOr Incomplete Application

2765.90 Disapproval Of Application Conclusive

2765.95 Appeal And Hearing

SUBPART B: EXPERIENCE RATING

Section

2765.200 Duty to Provide Information Related to a Transfer of Trade or BusinessEffect Of

A Successor Employing Unit's Failure To Notify The Director Of Its Succession

2765.210 Prohibition On Withdrawal Of Joint Application For Partial Transfer Of

Experience Rating Record

2765.220 Determination Of Benefit Wage And Benefit Ratio

2765.225 Requirement For Privity In Order To Have A Predecessor Successor Relationship

2765.228 No Requirement For Continuous Operation In Order For A Predecessor Successor

Relationship To Exist

2765.230 Effect Of A Transfer Of Physical Assets On A Finding That A Predecessor

Successor Relationship Exists

SUBPART C: BENEFIT CHARGES

Section


18



2765.325 Application Of "30 Day" Requirement For Determining The Chargeable

Employer Pursuant To Section 1502.1 Of The Act

2765.326 Requirement For A Separation Or A Reduction In The Work Offered In

Determining The Chargeable Employer Pursuant To Section 1502.1 Of The Act

2765.328 What Constitutes A Day For Purposes Of The "30 Day" Requirement In Section

1502.1 Of The Act

2765.329 Application Of "30 Day" Requirement For Determining The Chargeable

Employer Pursuant To Section 1502.1 Of The Act For Benefit Years Beginning

On Or After January 1, 1993

2765.330 Chargeability Where The Individual Is Discharged As A Result Of His

Incarceration

2765.332 Effect Of Ineligibility Under Section 602(B) On Chargeability Under Section

1502.1 Of The Act

2765.333 Effect Of Ineligibility Under Section 612 On Chargeability Under Section 1502.1

Of The Act

2765.334 Effect Of Ineligibility Under Section 614 On Chargeability Under Section 1502.1

Of The Act

2765.335 Procedural Requirements And Right Of Appeal


701, 1400, 1401, 1402, 1403, 1404, 1405, 1502.1, 1503, 1507, 1508, 1509, 1700, 1701, 2401 and

2600 of the Unemployment Insurance Act [820 ILCS 405/212, 302, 500, 601, 602, 603, 612,

701, 1400, 1401, 1402, 1403, 1404, 1405, 1502.1, 1503, 1507, 1508, 1509, 1700, 1701, 2401 and

2600].

SOURCE: Adopted at 6 Ill. Reg. 3863, effective March 31, 1982; amended at 7 Ill. Reg. 13266,

effective September 28, 1983; recodified at 8 Ill. Reg. 15027; amended at 11 Ill. Reg. 3972,

effective February 23, 1987; amended at 11 Ill. Reg. 11743, effective June 26, 1987; amended at

11 Ill. Reg. 12882, effective July 22, 1987; emergency amendment at 12 Ill. Reg. 225, effective

January 1, 1988, for a maximum of 150 days; emergency expired May 30, 1988; amended at 12

Ill. Reg. 11740, effective July 5, 1988; amended at 12 Ill. Reg. 17342, effective October 12,

1988; amended at 12 Ill. Reg. 20484, effective November 28, 1988; emergency amendment at 13

Ill. Reg. 11911, effective July 1, 1989, for a maximum of 150 days; amended at 13 Ill. Reg.

17410, effective October 30, 1989; amended at 14 Ill. Reg. 6218, effective April 16, 1990;

amended at 14 Ill. Reg. 19886, effective November 29, 1990; amended at 15 Ill. Reg. 185,

effective December 28, 1990; amended at 15 Ill. Reg. 11122, effective July 19, 1991; amended at

16 Ill. Reg. 2131, effective January 27, 1992; amended at 16 Ill. Reg. 12165, effective July 20,

1992; amended at 17 Ill. Reg. 308, effective December 28, 1992; amended at 17 Ill. Reg. 614,

effective January 4, 1993; amended at 17 Ill. Reg. 10275, effective June 29, 1993; emergency


18



amendment at 17 Ill. Reg. 13801, effective August 20, 1993, for a maximum of 150 days;

emergency expired January 1, 1994; amended at 18 Ill. Reg. 14952, effective September 27,

1994; emergency amendment at 19 Ill. Reg. 16113, effective November 13, 1995, for a

maximum of 150 days; amended at 20 Ill. Reg. 4307, effective February 29, 1996; amended at

25 Ill. Reg. 2011, effective January 18, 2001; emergency amendment at 29 Ill. Reg. 6788,

effective April 25, 2005, for a maximum of 150 days; amended at 29 Ill. Reg. 13988, effective

September 1, 2005; amended at 33 Ill. Reg. 9658, effective July 1, 2009; emergency amendment

at 36 Ill. Reg. 18968, effective December 17, 2012 through June 30, 2013; emergency

amendment at 37 Ill. Reg. 2506, effective February 11, 2013 through June 30, 2013; amended at

37 Ill. Reg. 7471, effective May 14, 2013; emergency amendment at 38 Ill. Reg. 22262, effective

November 17, 2014, for a maximum of 150 days; emergency expired April 15, 2015; amended at

39 Ill. Reg. 10768, effective July 27, 2015; amended at 42 Ill. Reg. ______, effective

____________.


Section 2765.30 When Payments inIn Lieu ofOf Contributions Are Payable

a) The payments in lieu of contributions are due within 30 days afterfrom the

mailing date of the Statement of Amount Due for Benefits Paid (Form Ben-118R)

unless the payment period is shortened pursuant to 56 Ill. Adm. Code 2790.5.

The Ben-118R shows the amount of benefits paid and is mailed as soon as

practicable to the reimbursable employer after the end of the calendar quarter to

which it refers.

b) Whenever the total amount due on the Statement of Amount Due for Benefits

Paid (Ben-118R) is less than $2.00$1.00, thatsuch amount may be disregarded.

Any amount disregarded pursuant to this subsection shall be deemed paid for all

other purposes under the Act. However, nothing in this subsection is intended to

relieve any employer from filing reports required by the Act or rules promulgated

thereunder.


Section 2765.45 Application ofOf Payment

a) Whenever the employer makes a payment, and it is accompanied by a letter,

Employer's Contribution Report or a Statement of Account, the money received

shall be applied to the quarter or quarters indicated by thesuch employer.


18



b) If no designation is made for the application of the remittance, or if the payment

received is more than sufficient to cover the quarter to which it applies, the

remittance or the excess shall be applied beginning with the oldest or earliest

unpaid quarters of the employer, if any.

c) The application of remittance within a quarter is not subject to designation.

Within a quarterExcept for the second quarter of 1991, when payment must first

be applied to the Temporary Administrative Funding required by Section 1506.3B

of the Act, all remittance shall be applied first to recording fees paid with respect

to liens, as required by 56 Ill. Adm. Code 2790.25, if any, in the order of earliest

to latest, then tothe NSF feesfee required by Section 2765.44 of this Part, in the

order of earliest to latest, then to the penalties, interest and unemployment

contributions, in that order.

EXAMPLEExample: An employer owes $200 in contributions and $50 in

interest for the first quarter of 20161993. The employer remits $100 and asks that

it be credited to the unpaid contributions due for the first quarter of 20161993.

$50 will be credited to the accrued interest for the first quarter of 20161993, and

$50 will be credited to the unpaid contributions due for the first quarter of

20161993.


Section 2765.64 Consequences When anWhere An Employee Leasing Company Has

Erroneously Reported Wages andAnd Paid Contributions When theWhich Wages Should

Have Been Reported andAnd Contributions Paid byBy Its Client

a) WhenWhere wages should have been reported and contributions paid by a client,

but the wages were erroneously reported and the contributions paid by an

employee leasing company, the Director shall, upon the joint request of the client

and the employee leasing company, on a form available from the Director,

transfer thesuch contributions from the account of the employee leasing company

to the account of the client, effective as of the dates that the report was submitted

and the contributions paid by the employee leasing company, respectively. As a

result, interest shall be due only to the extent that the amount due from the client

exceeds the amount paid by the employee leasing company.

EXAMPLEExample: Employee Leasing Company X erroneously reports the


18



wages of certain workers on its Wage Report and pays the contributions due on

these wages. It is determined that thesuch wages should have been reported

instead by its client, Company Y. The Director shall, upon the joint request of

Employee Leasing Company X and Company Y, transfer the payment made by

Employee Leasing Company X to the credit of Company Y. The wages reported

by the leasing company for Company Y's workers will also be credited to

Company Y. As a result, Company Y will only owe any additional contributions

due, if any, to the extent that the amount due from it exceeds the amount paid by

the employee leasing firm. To the extent that the payment by the employee

leasing company was untimely or not sufficient to cover the amount due, interest

shall accrue. If the amount paid by the employee leasing company exceeds the

amount due from Company Y, Company Y may file a request for an adjustment

or a refund of the overpayment to the extent and within the time allowed by

Section 2201 of the Act.

b) Upon proper application of the client, on a form available from the Director, when

wages should have been reported and contributions paid by a client, but the wages

were erroneously reported and the contributions paid by an employee leasing

company and the client presents evidence that the employee leasing company is

no longer in business in Illinois and that the client was unable to obtain the

assistance of the employee leasing company in complying with the requirements

of subsection (a), the Director shall transfer available contributions from the

account of the employee leasing company to the account of the client, effective as

of the dates that the report was submitted and the contributions paid by the

employee leasing company, respectively. As a result, interest shall be due only to

the extent that the amount due from the client exceeds the amount paid by the

employee leasing company and transferred to the client. For purposes of

determining the amount of wages that should have been reported and

contributions that should have been paid by the client, the Department shall use

the amounts stated in any determination and assessment that has become final for

the relevant quarters or, if none, the amount stated in an audit completed by the

Department for the relevant quarters or, if none, the amounts stated in an amended

wage report filed by the client. The Department shall use the total wages and

wages subject to the payment of contributions stated in the determination and

assessment, audit or amended wage report to adjust the employee leasing

company's total wages and wages subject to the payment of contributions for each

erroneously reported individual. For purposes of this subsection, available

contributions, with respect to a quarter, means the product of the contribution rate

used to calculate the amount of contributions that the employee leasing company


18



paid for the quarter, multiplied by the wages on which the client should have paid

contributions for the quarter, except as otherwise provided in this subsection. The

amount of available contributions with respect to a quarter shall not exceed the

amount of any credit standing to the employee leasing company's account for the

quarter, as of the time of the application, based on the adjustment pursuant to this

subsection with respect to the wages on which the client should have reported

contributions. Before making a transfer pursuant to this subsection, the

Department shall notify the employee leasing company, by certified mail at its last

known address, of its intention to make a transfer of contributions pursuant to this

subsection. The Department shall transfer the contributions unless the employee

leasing company responds with information that contradicts the information

provided by the client within 20 days after the date of mailing of the notice. If the

employee leasing company timely responds with information that contradicts the

information provided by the client, contributions shall not be transferred unless

the parties submit a joint request under subsection (a). The notice shall not be

necessary if the matter has been adjudicated as described in 56 Ill. Adm. Code

2725, and the employee leasing company was added as a necessary party under

Section 2725.237 of that Part and given proper notice. The total amount of

contributions transferred from an employee leasing company's account to a client's

account pursuant to this subsection shall not exceed $1,000,000.

EXAMPLE 1: Employee Leasing Company X erroneously reports the wages of

certain workers on its wage report and pays the contributions due on these wages.

It is determined that the wages should have been reported instead by its client,

Company Y. Y presents evidence that X is no longer in business and that there is

no one who could agree to the joint transfer of contributions. The Director shall

transfer any available contributions. If the amount of contributions available in

the account of X is insufficient to cover the amount of contributions owed by Y,

Y must pay the unpaid contribution balance, with interest, itself.

EXAMPLE 2: Employee Leasing Company X erroneously reports the wages of

certain workers on its wage report and pays the contributions due on these wages.

At the time, X's contribution rate was 1%, which resulted in $100 in contributions

owed. It is determined that the wages should have been reported instead by its

client, Company Y. Y presents evidence that X is no longer in business and that

there is no one who could agree to the joint transfer of contributions. Y's

contribution rate for the year was 6%, which will result in $600 in contributions

owed by Y. Upon proper application of Y, the Director shall transfer the $100 in


18



available contributions from the account of X to the account of Y. Y must pay the

$500 in unpaid contributions, with interest, itself.

EXAMPLE 3: Employee Leasing Company A had agreements with Employers

B, C and D for A to assume responsibility for personnel management of workers

leased to each of B, C and D during the year 2016. Company A reported the

identity of its clients B and C to the Department, as required by 56 Ill. Adm. Code

2732.306, but failed to report the identity of its client D. B, C and D each had one

leased worker performing services for them; each leased worker was paid $10,000

in the first quarter of 2016. A's contribution rate for 2016 was 5%. Company A

timely reported to the Department the wages of the leased workers providing

services to B, C and D. According to the report submitted by A, A owed a total of

$1,500 in contributions for the first quarter of 2016. However, A made payments

to the Department totaling only $1,200. For 2016, B, C and D each had a

contribution rate of 3.75%. In 2017, it is discovered that A failed to report D's

identity to the Department and, therefore, D remained liable for the payment of

contributions regarding its leased worker. D presents evidence that A is no longer

in business in Illinois and that there is no one who could agree to the joint transfer

of contributions. Under subsection (b), the amount of contributions available for

transfer to D's account cannot exceed the amount of the credit standing to A's

account for the quarter, as of the time of the application, based on the adjustment

with respect to the wages on which D should have reported contributions due.

The amount necessary to pay the contributions owed by A for the first quarter of

2016 is $1,000 (5% x $20,000). So even though D owes a total of $375 in

contributions for 2016 (3.75% x $10,000), there is only $200 in available

contributions to transfer to D's account ($1,200 - $1,000). D must pay the

additional $175, plus interest, itself.

c) When multiple applications have been submitted under subsection (b), the

applications shall be processed in the order in which the applications were

received.

d) When multiple applications have been submitted under subsection (b), available

contributions shall be transferred, as they become available, to the account that

submitted the application that created the available contributions.

EXAMPLE: Employee Leasing Company A had agreements with Employers B,

C and D for A to assume responsibility for personnel management of workers

leased to each of B, C and D during the year 2016. Company A did not report the


18



identity of B, C or D to the Department, as required by 56 Ill. Adm. Code

2732.306. B, C and D each had one leased worker performing services for them;

each leased worker was paid $10,000 in the first quarter of 2016. A's contribution

rate for 2016 was 5%. Company A timely reported to the Department the wages

of the leased workers providing services to B, C and D. According to the report

submitted by A, A owed a total of $1,500 in contributions. However, A made

payments to the Department totaling only $500. For 2016, B, C and D also had

contribution rates of 5%. In 2017, it is discovered that A failed to report D's

identity to the Department and, therefore, D remained liable for the payment of

contributions regarding its leased worker. D presents evidence that A is no longer

in business in Illinois and that there is no one who could agree to the joint transfer

of contributions. Under subsection (b), the amount of contributions available for

transfer to D's account cannot exceed the amount of the credit standing to A's

account for the quarter, as of the time of the application, based on the adjustment

with respect to the wages on which D should have reported contributions due. At

the time of D's application, the Department was not aware of A's relationship to B

and C, or A's failure to report its relationship with B and C, and there was no

credit standing to A's account. At the time of D's application, it appeared that the

employee leasing company should have paid contributions of $1,000 for the first

quarter of 2016. Since A paid only $500, there are no funds available to transfer

to D. Subsequently, the Department discovers A's relationship with C, and the fact

that the relationship was not properly reported to the Department, as required by

56 Ill. Adm. Code 2732.306. C's wages are removed from A's account, but still,

there are no contributions available to transfer to C's account. At the time of C's

application, it appears that A owes $500 in contributions for the first quarter of

2016. Since that is all A paid for the quarter, there is no credit standing to its

account. Subsequently, the Department discovers A's relationship with B, and the

fact that the relationship was not properly reported to the Department, as required

by 56 Ill. Adm. Code 2732.306. B's wages are removed from A's account, which

creates a credit balance of $500 in A's account. The available balance will transfer

to the account of B.


Section 2765.71 Waiver ofOf Interest Accruing Due to aTo A Delay in theIn The Issuance

of aOf A Decision on aOn A Protested Determination andAnd Assessment

a) The Director shall find good cause for the waiver of all interest accrued upon

unpaid contributions which are due and owing pursuant to a Determination and


18



Assessment for any period from the 181st day after the date on which the

employer filed its sufficient Petition in protest to the Determination and

Assessment (see 56 Ill. Adm. Code 2725.110) to 60 days after the later of the date

of the decisionDecision of the Director in the matter (see 56 Ill. Adm. Code

2725.280) or the date that the Department mails the employer a statement of the

balance due on its account as a result of the recommended decision in the matter

(see 56 Ill. Adm. Code 2725.270) or the decision of the Director in the matter, but

only to the extent that the delay was not caused by the employer or its agent.

1) EXAMPLEExample 1: The employer files its sufficient Petition to protest

a Determination and Assessment on March 1, 20171993. After

completion of the administrative process within the Department, a

decisionDecision of the Director, affirming the Determination and

Assessment, is issued on October 16, 201715, 1993. On October 19,

2017, the Department mails the employer a statement of the balance due

on its account as a result of the decision of the Director. Pursuant to this

subsection (a), this employer will be entitled to a waiver of interest from

August 29, 20171993 (the 181st day after the date on which the employer

filed its Petition) to December 15, 2017 (60 days after the Department

mailed the employer a statement of the balance due on its account as a

result of the decision of the Director)14, 1993.

2) EXAMPLEExample 2: The employer files a sufficient Petition to protest

a Determination and Assessment on March 1, 20171993. A hearing is

scheduled for April 3, 20171, 1993. The employer's accountant is not

available on April 3, 20171, 1993, so the employer requests a continuance

until April 5, 20171993. Because the Director's representative

Representative already has hearings scheduled for the month of April, a

continuance is granted until May 12, 20171993, the next available hearing

date. After completion of the administrative process within the

Department, a decisionDecision of the Director, affirming the

Determination and Assessment, is issued on October 16, 201715, 1993.

On the same day, the Department mails the employer a statement of the

balance due on its account as a result of the decision of the Director.

Pursuant to this subsection (a), this employer will be entitled to a waiver

of interest from October 7, 20179, 1993 (the 181st day after the date on

which the employer filed its petition plus the 3941 day delay attributable

to the employer's request for a continuance) to December 15, 201714,

1993.


18



3) EXAMPLEExample 3: An employer association requests that the

Director not make any decision on Determination and Assessments based

on a particular issue while the legislature is discussing a possible change

in the statute on that issue. Any delays in issuing decisions on that

particular issue caused by the Director agreeing to hold thosesuch cases

are not attributable to the employer or its agent.

4) EXAMPLEExample 4: On March 1, 20171993, an employer files a

sufficient Petition to protest a Determination and Assessment. A hearing

is held on April 3, 20171, 1993. At the conclusion of the hearing, the

employer's attorney requests 45 days in which to submit a brief in support

of its position. Because this additional delay is attributable to the agent of

the employer, these additional days are added in determining the extent of

waiver to be granted to this employer.

b) The provisions of Section 2765.74 shall not be applicable to requests for waiver

under this Section.

c) The payment of all contributions assessed, all penalties due and any interest not

subject to waiver, within 60 days afterfrom the date of the decisionDecision of the

Director or the date that the Department mails the employer a statement of the

balance due on its account as a result of the decision of the Director in the matter,

whichever is later, is a condition precedent to a waiver of interest pursuant to this

Section.

EXAMPLEExample: On July 1, 2016, an employer files a sufficient Petition in

protest to a Determination and Assessment. The Director issues a decision

Decision affirming the Determination and Assessment on March 1, 20171993.

On the same day, the Department mails the employer a statement of the balance

due on its account as a result of the decision of the Director. In the decisionthis

Decision, the Director grants a conditional waiver underpursuant to this Section

from December 29, 2016October 15, 1992 to April 30, 20171993. December 29,

2016 is the 181st day after the date on which the employer filed its sufficient

Petition in protest to the Determination and Assessment. If this employer has not

yet paid this assessment, it has until April 30, 20171993 to pay the contributions

due. If the contributions are not paid by April 30, 20171993, the condition

precedent is not met, and the employer is not entitled to waiver under this Section.


18



d) The granting of waiver under this Section does not foreclose the granting of

waiver to the employer under another Section of this Part for another period.

e) WhenIn a case where no objection is filed to the recommended

decisionRecommended Decision of the Director's representativeRepresentative

and that recommended decisionRecommended Decision becomes the

decisionDecision of the Director pursuant to 56 Ill. Adm. Code

2725.270(d)Section 2725.270(d), the date of the Director's decisionDecision shall

be the date on which the recommended decisionRecommended Decision of the

Director's representativeRepresentative becomes the decisionDecision of the

Director.

EXAMPLEExample 1: The recommended decisionRecommended Decision of

the Director's representativeRepresentative is issued on October 2, 20171, 1993.

If no objections are filed by October 22, 201721, 1993, the recommended

decisionRecommended Decision becomes the decisionDecision of the Director on

October 23, 201722, 1993. October 23, 201722, 1993 is the date of the

decisionDecision of the Director.

EXAMPLE 2: The employer files a sufficient Petition to protest a Determination

and Assessment on March 1, 2017. The recommended decision of the Director's

representative is issued on October 2, 2017. The employer calls the Department

on October 3, 2017 to ask for a statement of the balance due on its account as a

result of the recommended decision. The Department mails the employer the

statement on October 4, 2017. The employer does not file objections by October

22, 2017, so the recommended decision becomes the decision of the Director on

October 23, 2017. This employer will be entitled to a waiver of interest from

August 29, 2017 (the 181st day after the date on which the employer filed its

petition) to December 22, 2017 (60 days after the date of the decision of the

Director).

EXAMPLE 3: The employer files a sufficient Petition to protest a Determination

and Assessment on March 1, 2017. The recommended decision of the Director's

representative is issued on October 2, 2017. The employer calls the Department

on October 3, 2017 to ask for a statement of the balance due on its account as a

result of the recommended decision. The Department mails the employer the

statement on November 6, 2017. If no objections are filed by October 22, 2017,

the recommended decision becomes the decision of the Director on October 23,

2017. This employer will be entitled to a waiver of interest from August 29, 2017


18



(the 181st day after the date on which the employer filed its Petition) to January 5,

2018 (60 days after the Department mailed the employer a statement of the

balance due on its account as a result of the decision of the Director).


Section 2765.73 Waiver ofOf Penalties and Interest forFor Certain Nonprofit

OrganizationsHospitals

a) Upon application of an employer, the Director shall find good cause to grant a

conditional waiver of any reporting penalty required by Section 1402 of the Act

and any interest owed by the employer with respect to contributions due, and

interest on past due payments in lieu of contributions, for quarters prior to

calendar year 2014 and specified in the conditional waiver, providedwhere the

employer is a nonprofit organization, as that term is used in Section 211.2 of the

Act [820 ILCS 405/211.2], operating as a hospital and the following conditions

are met:

1) the employer is an Illinois nonprofit organization, as that term is used in

Section 211.2 of the Act, and a local affiliate of a national organization

that holds a congressional charter under 36 USC, whose purpose is to

promote the health, social, educational, vocational, and character

development of youthhas experienced a year-end loss of more than

$1,000,000 in each of at least three of the employer's fiscal years during

the period in which the interest has accrued; and

2) the employer experienced a decrease of more than $50,000 from its prior

fiscal year in the value of its total net assets in:

A) each of the employer's two fiscal years preceding the first quarter

specified in the conditional waiver; and

B) each of at least two of the employer's fiscal years that include one

or more quarters specified in the conditional waiver; and

3) the losses described in subsection (a)(21) are established by certified,

audited statements of the financial condition of the employer.

b) The Director shall waive penalties and interest covered by a conditional waiver


18



granted under subsection (a) upon payment, within four years after the date on

which the conditional waiver is granted, of the full amount of all contributions

and payments in lieu of contributions due for the quarters specified in the

conditional waiver.

c) A conditional waiver granted under subsection (a) shall be revoked by the

Director when:where

1) payment of the contributions due, and past due payments in lieu of

contributions, for the quarters specified in the conditional waiver is to be

made pursuant to a deferred payment agreement and the employer

commits a substantial breach of that agreement; or where

2) the employer fails to timely pay contributions or payments in lieu of

contributions due for quarters not specified in the conditional waiver.

d) Notwithstanding subsection (a), the Director shall not grant more than one

conditional waiver of interest with respect to contributions due, or past due

payments in lieu of contributions, for the same quarter.


Section 2765.74 Time forFor Paying orOr Filing Delayed Payment orOr Report

In order to obtain a waiver of all or part of any interest or penalty, the employer must (in addition

to filing an application for waiver as provided in Section 2765.68 or 2765.75) either make,

except if the ground for waiver is Section 2765.65(c), the late payment of all contributions due or

file the delayed report, as the case may be, within 30 days afterfrom the date of the resolution of

the occurrenceoccurence or event relied upon as a ground for waiver. In order to obtain a waiver

of all or part of any interest, the employer must (in addition to filing an application for waiver as

provided in Section 2765.75), except if the ground for waiver is Section 2765.65(c), make the

late payment of all contributions due and file all wage reports for the period covered by the

waiver within 30 days from the date of the resolution of the occurrence or event relied upon as a

ground for waiver.


Section 2765.75 Application for Waiver


18



In order to obtain a waiver of all or part of any interest or penalty, theThe employer must file a

signedsworn written application for waiver of the interest or penalty, or both, with the

Department within the time limits set forth in Section 2765.74. The application should be filed

online using MyTax Illinois (mytax.illinois.gov) or by mail to: Illinois Department of

Employment Security, Revenue Division, 33 S.South State St.,Street – 10th Floor, Chicago, IL

60603, within the time limits set forth in Section 2765.74. An application is not complete unless

it contains the name and address of the employer, the U.I. account number, the period involved

and the good cause applicable. The late payment or missing report, as provided in Section

2765.74, must accompany the application. If an application for waiver has been timely filed, an

employer may file additional information to be considered as part of its application within 30

days after filing the application.


Section 2765.85 Insufficient orOr Incomplete Application

If the application contains an allowable good cause but otherwise is insufficient or incomplete in

other respects, the employer has 15fifteen days afterfrom the date of the Director's notice of

application deficiency within which to file an amended application based on the same ground. If

an amended application for waiver has been timely filed, an employer may file additional

information to be considered as part of its amended application within 30 days after the period

for filing an amended application for waiver has ended.An amended application that alleges a

different good cause is to be stricken and the Director shall order the original application

disapproved.


SUBPART B: EXPERIENCE RATING

Section 2765.200 Duty to Provide Information Related to a Transfer of Trade or

BusinessEffect Of A Successor Employing Unit's Failure To Notify The Director Of Its

Succession

a) Within 30 days after the date of any transfer to which Section 1507.1(A)(1) of the

Act applies, the transferor and transferee shall provide the Department the number

of covered workers employed by the transferor on the last day of business

immediately preceding the date of transfer and the number of those workers

transferred to the transferee.Pursuant to 56 Ill. Adm. Code 2760.105(b) and

Section 1507 of the Act, any employing unit which succeeds to substantially all of


18



the employing enterprises of another employing unit or which desires to acquire

or retain a distinct, severable portion of the employing enterprises of an

employing unit shall notify the Director within 120 days of such succession,

acquisition or retention.

b) In the case of a transfer to which Section 1507.1 (A)(1) of the Act applies:Any

employing unit which fails to comply with the provisions of subsection (a) shall

not be entitled to the experience rating record of the predecessor except where

such transfer would result in a higher revised contribution rate for the successor in

the year of the succession. In the situation where the employing unit fails to give

notice of the succession as required by subsection (a), but where the transfer

would result in a higher revised contribution rate for the successor in the year of

the succession, the entire experience rating record of the predecessor shall be

transferred to the successor.

1) The benefit charges that were incurred by the transferor, and wages that

were paid by the transferor for insured work, for each calendar quarter

prior to the quarter in which the transfer takes effect, the percentage

apportioned to the transferee shall equal the percentage of the covered

workers transferred to the transferee, and the percentage apportioned to

the transferor shall equal the percentage of the covered workers retained

by the transferor.

2) The benefit charges that were incurred by the transferor, and wages that

were paid by the transferor for insured work, for the calendar quarter in

which the transfer takes effect, the percentage apportioned to the

transferee shall equal the percentage of the covered workers transferred to

the transferee multiplied by the quotient obtained by dividing the number

of the days elapsed in the quarter as of the day of the transfer, including

the day of the transfer, by the total number of days in the quarter, rounded

to the nearest whole percentage point (e.g., if the transfer occurred on

November 7th, the quotient would be 41% because the transfer occurs on

the 38th day of the quarter and there are 92 days in that quarter), and the

percentage apportioned to the transferor shall equal the difference between

100% and the percentage apportioned to the transferee pursuant to this

subsection (b)(2).

EXAMPLE: On November 7, 2017, Employer A transfers 30% of its

trade or business to Employer B. At the time of the transfer, there was


18



substantial common ownership, management, or control of Employers A

and B. Thirty percent of the benefit charges incurred by A, and 30% of the

wages paid by A for insured work, for all quarters prior to the 4th quarter

of 2017 will be transferred to Employer B. For the 4th quarter of 2017,

since there are 92 days in the quarter, and since the transfer occurred on

the 38th day of the quarter, 12.3% of the benefit charges Employer A

incurred, and 12.3% of the wages Employer A paid for insured work, for

the quarter (30% of 41%) will be apportioned to Employer B. The

remainder will be apportioned to Employer A.

3) As of the effective date of the transfer, the transferor and transferee shall

each be considered to have been liable for the payment of contributions

during each calendar year during which the transferor was liable for the

payment of contributions.

EXAMPLE: Employer A incurred liability for the payment of

contributions in each of the calendar years 2010 through 2017. Prior to the

transfer, Employer B incurred liability for the payment of contributions in

calendar year 2017. On May 7, 2017, Employer A transfers a portion of its

trade or business to Employer B. At the time of the transfer, there was

substantial common ownership, management, or control of Employers A

and B. As a result, Employers A and B will have incurred liability for the

payment of contributions in each of the calendar years 2010 through 2017.



18



1) Heading of the Part: Collection of Unemployment Contributions



2790.15 Amendment

2790.20 Amendment

2790.25 New Section

4) Statutory Authority: Implementing and authorized by Sections 1400, 1401, 1402, 1404,

1405, 1700, and 1701 of the Illinois Unemployment Insurance Act (Ill. Rev. Stat. 1983,

ch. 48, pars. 550, 551, 552, 554, 555, 610 and 611).

5) A Complete Description of the Subjects and Issues Involved: Changes the amount that

will be disregarded from $1 to $2 to reflect the statutory change made by PA 90-554.

Requires an employer to reimburse the Department for the recording fee as a condition

for releasing a lien, to reflect changes made by PA 98-107 and PA 98-1133.


rulemaking: None












Chicago IL 60603


18



312/793-2338

fax: 312/793-5645


























18





SUBCHAPTER d: COLLECTION AND REFUND

PART 2790

COLLECTION OF UNEMPLOYMENT CONTRIBUTIONS


Section

2790.1 Collection Remedies The Same For Contributions And Payment In Lieu Of

Contributions

2790.5 When Collection In Jeopardy, Payment Period Shortened

2790.10 Cases When Collection May Be Deferred

2790.15 Contributions ofOf Less Than $2.00 Disregarded$1.00Deemed Paid

2790.20 No Refund ofOf Disregarded Contributions Deemed Paid

2790.25 Reimbursement of Lien Recording Fee

AUTHORITY: Implementing and authorized by Sections 1400, 1401, 1402, 1404, 1405, 1700,

1701 and 2401 of the Illinois Unemployment Insurance Act [820 ILCS 405/1400, 1401, 1402,

1404, 1405, 1700, 1701 and 2401].

SOURCE: Adopted as 56 Ill. Adm. Code 700: Subpart A at 6 Ill. Reg. 3858, effective March

31, 1982; recodified to 56 Ill. Adm. Code 2790: Subpart A at 8 Ill. Reg. 19421; amended at 42



Section 2790.15 Contributions ofOf Less Than $2.00 Disregarded$1.00 Deemed Paid

If, at any time, the total amount payable with respect to a quarter, including any contributions,

payments in lieu of contributions, interest or penaltiesof quarterly contributions plus interest, if

any, is payable and that amount is less than $2.00, that amount shall be disregardedone dollar

($1.00) and there is no penalty for late filing of the applicable report provided in Section 1402 of

the Act, the payment of such total amount shall be excused. For experience rating and

certification purposes, amounts disregarded pursuant to this Sectionsuch excused non-payment

of contributions shall be considered as paid.



18



Section 2790.20 No Refund ofOf Disregarded Contributions Deemed Paid

No refund or adjustment under Section 2201 of the Act will be granted for an amount

disregardeddeemed paid but not actually paid (see Sectionpursuant to 56 Ill. Adm. Code Part

2790.15).


Section 2790.25 Reimbursement of Lien Recording Fee

Except in instances in which the Department filed its lien in error, and except when an

employing unit's liability covered by a lien arose solely under Section 2600 of the Act, the

Director shall not issue a release, withdrawal or partial release of his or her lien unless and until

the employer reimburses the Director for any recording fees paid with respect to the lien. If a

recorded lien covers multiple quarters, recording fees will be attributed to the oldest quarter

covered by the lien that is not attributable to liability that arose solely under Section 2600 of the

Act.

EXAMPLE: An employer owes contributions, penalties and interest for a quarter totaling $500.

The Director has incurred $50 in recording fees with respect to the filing of a lien. The employer

sends a payment of $500 to the Department and requests a release of the recorded lien. The

Department will not release the recorded lien because the first $50 was applied to reimburse the

Director for the lien recording fee under the application of payment provisions at Section

2765.45 and, therefore, the liability that gave rise to the lien has not been paid in full.



18



1) Heading of the Part: Payment of Benefits



2830.10 Amendment

2830.50 Repealed

2830.200 Amendment

2830.205 Repealed

2830.206 Repealed

2830.210 Repealed

2830.215 Repealed

2830.220 Repealed

2830.300 Amendment

2830.305 Repealed

2830.310 Amendment

2830.315 Amendment

2830.320 Amendment

2830.325 Amendment

2830.330 Amendment

2830.335 Amendment

2830.340 Amendment

4) Statutory Authority: Implementing and authorized by Sections 400, 401, 404, 1700 and

1701 of the Unemployment Insurance Act [820 ILCS 405/400, 401, 404, 1700 and 1701].

5) A Complete Description of the Subjects and Issues Involved: The Department no longer

pays unemployment benefits by check. All payments are made by direct deposit or debit

card. This rulemaking explains how debit cards are mailed, how misdirected payment

claims are investigated, and how benefits due to a deceased or comatose claimant are

paid. Section 2830.50 is repealed because the language this section defined was removed

from Section 401 (PA 93-634).


rulemaking: None




18












Chicago IL 60603

312/793-2338

fax: 312/793-5645



















18











18





SUBCHAPTER e: RIGHTS AND DUTIES OF EMPLOYEES

PART 2830

PAYMENT OF BENEFITS


Section

2830.10 Mailing Address forFor Debit CardsBenefit Checks

2830.50 Calculating The "National Average Of This Ratio" Under Section 401 Of The Act

(Repealed)

SUBPART B: PAYMENT TO DECEASED CLAIMANTS

Section

2830.200 Payment of Benefits Due a Deceased or Comatose Claimant

2830.205 Order Of Payment To Survivors Of A Deceased Claimant (Repealed)

2830.206 Order of Payment on Behalf of a Comatose Claimant (Repealed)

2830.210 Payment to a Minor Survivor of a Deceased Claimant or to a Minor When the

Claimant is Comatose (Repealed)

2830.215 Time and Manner for Claiming Benefits Due a Deceased or a Comatose Claimant

(Repealed)

2830.220 Right of Appeal (Repealed)

SUBPART C: REISSUANCE OF BENEFIT CHECKS, MISDIRECTED

PAYMENTS OR LOST OR STOLEN DEBIT CARDS

Section

2830.300 Requests forFor Reissuance Of Checks Or Replacement ofOf Electronic

Payments

2830.303 Lost Or Stolen Debit Cards

2830.305 Where Original Benefit Check Has Been Processed By The Payor Bank Or Where

Direct Deposit Has Been Established Without Authorization(Repealed)

2830.310 Debit CardCheck Or Direct Deposit Authorization Forgery Investigation

2830.315 Notice ofOf Interview


2830.325 Debit Card orCheck Or Direct Deposit Authorization Forgery Interview


18



2830.330 The Record

2830.335 Decision

2830.340 Appeals

AUTHORITY: Implementing and authorized by Sections 400, 401, 404, 1700 and 1701 of the

Unemployment Insurance Act [820 ILCS 405/400, 401, 404, 1700 and 1701].

SOURCE: Illinois Department of Labor, Bureau of Employment Security, Regulation 26, filed

as amended May 2, 1952, effective May 12, 1952; rule repealed by operation of law, October 1,

1984; new rules adopted at 9 Ill. Reg. 10005, effective June 15, 1985; amended at 14 Ill. Reg.

9101, effective May 23, 1990; amended at 15 Ill. Reg. 16960, effective November 12, 1991;

amended at 32 Ill. Reg. 13183, effective July 24, 2008; expedited correction at 32 Ill. Reg.

19178, effective July 24, 2008; amended at 32 Ill. Reg. 18972, effective December 1, 2008;

amended at 42 Ill. Reg. ______, effective ____________.


Section 2830.10 Mailing Address forFor Debit CardsBenefit Checks

a) The Department utilizes a third-party vendor to issue, mail and manage all debit

cards. Debit cards willBenefit checks shall be mailed to the address provided by

the claimant in accordance with 56 Ill. Adm. Code 2720.35to the local office

where the claim is filed. Envelopes in which benefit checks are mailed shall

advise the United States Postal Service that such checks shall be returned to the

Agency, as defined in 56 Ill. Adm. Code 2720.1, if delivery cannot be made at the

address indicated on the envelope. The vendor will only mail a debit card to the

address given to the vendor by the Department. It is the claimant's responsibility

to ensure the Department has the claimant's correct address.

b) Debit cardsBenefit checks shall not be mailed to a Post Office boxBox unless the

claimant provides the local office with his or her home address and an explanation

of why he or she wants his or her debit card checks sent to a Post Office boxBox.

c) Debit cardsBenefit checks shall not be mailed to an address outside of the United

States or Canada unless the claimant provides a reason thatwhich indicates only a

temporary absence from this country or Canada.



18



Section 2830.50 Calculating The "National Average Of This Ratio" Under Section 401 Of

The Act (Repealed)

Section 401 of the Act (Ill. Rev. Stat. 1989, ch. 48, par. 401) provides that, if certain factors

occur, the "Statewide average weekly wage" will be frozen for a particular benefit period. One of

these factors involves a determination of whether the average contribution rate for all employers

in this State for the calendar two years prior to the benefit period, as a ratio of total contribution

payments (including payments in lieu of contributions) to the total wages reported by employers

in this State for that same period is 0.2% greater than the national average of this ratio. For

purposes of calculating the "national average of this ratio":

a) Payments in lieu of contributions shall be included in the total contribution

payments;

b) Contribution payments made by workers shall be included in the total

contribution payments;

c) Contribution payments and total wages reported in Puerto Rico, the Virgin Islands

and the District of Columbia shall be included.

(Source: Repealed at 42 Ill. Reg. ______, effective ____________)

SUBPART B: PAYMENT TO DECEASED CLAIMANTS

Section 2830.200 Payment of Benefits Due a Deceased or Comatose Claimant

a) In the event that an individual dies or becomes comatose before receiving benefits

to which he or she is entitled, the Department will make payment to the account

designated by the individual for direct deposit or the debit card assigned to the

claimant by the Department. If the Department is unable to make payment to the

deceased or comatose claimant's direct deposit account, the Department will make

payment by debit cardthe benefits shall be paid over to the person or persons

determined to be entitled to receive those benefits, in accordance with Section

2830.205 or 2830.206 of this Part. However, any benefit checks previously

issued to the individual that have not been presented for payment must be

returned to the Director, or an affidavit must be submitted stating that the benefit

checks were lost, stolen, or destroyed.

b) In the case of a claimant who became and remains comatose or who died prior to


18



certifying for benefits, a completed certification form must be submitted by an

individual with first hand knowledge of the matters asserted in the certification,

together with an affidavit attesting that the individual has first hand knowledge

and that the matters asserted are true to the best of his or her knowledge. The

completed certification form must be submitted within nine months after the date

of death or entry into the comatose state. Unless the certification form is received

within nine months after the date of death or entry into the comatose state, any

benefits due the deceased or comatose claimant shall revert to and be returned to

the State's unemployment trust fund. The certification form shall be submitted to

the local unemployment office where the deceased or comatose claimant last filed

his or her claim for benefits or serving the geographic area in which the claimant

resides or resided. The certification form shall be submitted either in person or by

certified mail, shall be supported by an affidavit setting forth the relationship to

the deceased or comatose claimant, and shall be accompanied by a certified copy

of the death certificate for the deceased claimant or, in the case of a comatose

claimant, the statement of a licensed and practicing physician indicating the date

as of which the claimant became comatose. The forms required to certify for a

deceased or comatose claimant are available at local unemployment offices.

Under no circumstances shall the claimant's eligibility extend beyond the date that

he or she died. Under no circumstances shall a claimant be eligible for benefits

for the period during which he or she was in aentered the comatose state or died.


Section 2830.205 Order Of Payment To Survivors Of A Deceased Claimant (Repealed)

Benefits which are payable, but as yet unpaid or not yet presented for payment, to a deceased

individual shall be paid over to the persons claiming such benefits on behalf of the deceased

claimant in the following order:

a) The administrator or executor of the decedent's estate;

b) The decedent's surviving spouse;

c) The surviving children in equal shares, if the decedent has no surviving spouse;

d) The surviving parents in equal shares, if no spouse or child survives the decedent;

e) Such brothers or sisters who survive the decedent in equal shares, if no spouse,


18



child or parent survives the decedent;

f) Such other relatives, either by blood or marriage, who have paid the funeral

expenses connected with the last illness of the decedent, in such shares as may be

equitable, depending on the proportional contribution of said relative to said

expenses, if no spouse, child, parent, sister or brother survives the decedent.


Section 2830.206 Order of Payment on Behalf of a Comatose Claimant (Repealed)

Benefits that are payable, but as yet unpaid or not yet processed for payment, to a comatose

individual shall be paid over to the persons claiming the benefits on behalf of the comatose

claimant in the following order:

a) The guardian of his or her estate, if one has been appointed;

b) The living spouse;

c) The living children in equal shares, if the claimant has no living spouse;

d) The living parents in equal shares, if there is no living spouse or living child of

the claimant;

e) The living brothers or sisters of the claimant in equal shares, if there is no living

spouse, child or parent of the claimant; or

f) Other relatives, either by blood or marriage, who have paid the expenses

connected with the claimant's care in his or her comatose state, in such shares as

may be equitable, depending on the proportional contribution of the relative to the

expenses, if there is no living spouse, child, parent, sister or brother of the

claimant.


Section 2830.210 Payment to a Minor Survivor of a Deceased Claimant or to a Minor

When the Claimant is Comatose (Repealed)

Whenever any share of benefits payable to a deceased or comatose claimant is payable to a


18



person who has not attained majority age, the payment shall be paid to the person legally entitled

to receive the payment on behalf of the minor for his or her use and for the benefit of the minor

without further responsibility on the part of the Director as to its actual distribution.


Section 2830.215 Time and Manner for Claiming Benefits Due a Deceased or a Comatose

Claimant (Repealed)

a) Any individual specified in Section 2830.205 or 2830.206 of this Part who wishes

to make application for any benefits due a deceased or comatose claimant must do

so within nine months after the date of death or entry into the comatose state, as

the case may be, or within nine months after the date when the payment is finally

authorized, whichever is later.

1) The application shall be made to the local unemployment office where the

deceased or comatose claimant last filed his or her claim for benefits or

serving the geographic area in which the claimant resides or resided.

2) The application shall be made either in person or by certified mail and

shall be supported by an affidavit setting forth the relationship to the

deceased or comatose claimant, along with the names, addresses and

relationship of all other living relatives in the order specified in Section

2830.205 or 2830.206 of this Part, and shall be accompanied by a certified

copy of the death certificate for the deceased claimant or, in the case of a

comatose claimant, the statement of a licensed and practicing physician

indicating the date as of which the claimant became comatose. The

application forms shall be available at the local unemployment offices.

b) Unless the application is received within the time limits specified in subsection

(a), any benefits due the deceased claimant shall revert to and be returned to the

State's unemployment trust fund.


Section 2830.220 Right of Appeal (Repealed)

Whenever an individual claiming a share of benefits payable to a deceased or comatose claimant

is denied that share because of the provisions of Section 2830.205 or 2830.215 of this Part, the


18



individual shall be notified in writing and have the right to appeal the determination in

accordance with the provisions of Section 800 of the Unemployment Insurance Act [820 ILCS

405/800].


SUBPART C: REISSUANCE OF BENEFIT CHECKS, MISDIRECTED

PAYMENTS OR LOST OR STOLEN DEBIT CARDS

Section 2830.300 Requests forFor Reissuance Of Checks Or Replacement ofOf Electronic

Payments

Any issue concerning a benefit payment that, in the case of a debit card, was deposited into an

account assigned to the claimant or, in the case of direct deposit, was deposited into an account

designated by the claimant, must be resolved between the claimant and the financial institution at

which the payment was deposited according to the terms and conditions of the cardholder or

account agreement. When the claimant alleges that a debit card was mailed to an address that the

claimant did not authorize, that a benefit payment was not deposited into an account that the

claimant authorized, or that a benefit payment was not credited to the debit card assigned to the

claimant, the claimant may file a request for review of the payment at a local office, on a form

provided by the Department, or by calling Claimant Services (see 56 Ill. Adm. Code 2714 for

interstate claims). The telephone number for Claimant Services is available at ides.illinois.gov. If

a claimant's telephone inquiry cannot be resolved over the phone, the Department will provide

the claimant with any forms needed to proceed. All requests for review of payment shall be

submitted to the Department's Accounting Services Subdivision to determine if the issue can be

resolved by the Department or if the claimant should be referred to the financial institution in

which the payment was deposited. If the request is made in person at the local office, the forms

needed to request review by the Department's Accounting Services Subdivision shall be

forwarded by local office staff. Forms submitted by the claimant directly must be mailed to the

Department's address provided on the form. When identity theft has been alleged, the

Department's Accounting Services Subdivision shall refer the matter to the Department's Benefit

Payment Control Subdivision for an investigation as provided in Section 2830.310.

a) If the claimant is filing an intrastate claim (see 56 Ill. Adm. Code 2714 for

interstate claims), his or her request for the reissuance of a payment must be made

in person at the claimant's local office. Such request shall be made in writing on a

form provided by the Department.

1) If the original check has already been processed by the payor bank, the


18



claimant will be sent instructions as outlined in Section 2830.305.

2) If the original check has been returned to the Agency by either the

individual or the Post Office, it shall be immediately reissued to the

individual.

3) If the original check has not been processed by the payor bank, the

Department will submit a stop payment order. After confirmation that the

stop payment order has been processed, a replacement check will

immediately be issued.

b) Requests by a second endorser for replacement of a benefit check that has not

already been processed by the payor bank shall be made in writing to Accounting

Services Division, Trust Fund Subdivision, 33 S. State St., Chicago IL 60603.

1) If the original benefit check was lost, mutilated or stale-dated after receipt

by the second endorser, and if proof of that action is provided to the

Department, disbursement of the funds to cover the check will be made to

the second endorser.

2) If the original benefit check was subject to a stop payment order initiated

by the claimant pursuant to subsection (a)(3), the matter will be sent to the

Benefit Payment Control Division for an interview pursuant to Section

2830.310.


Section 2830.305 Where Original Benefit Check Has Been Processed By The Payor Bank

Or Where Direct Deposit Has Been Established Without Authorization (Repealed)

a) When a request for reissuance of a payment is made by a claimant pursuant to

Section 2830.300 and it is determined that the check has already been processed

by the payor bank or when the payment has been directly deposited into a

financial institution account the claimant asserts he or she did not authorize

pursuant to 56 Ill. Adm. Code 2720.11, the claimant will be sent a copy of the

check or the Direct Deposit Authorization/Change Form and an Affidavit of Non-

Endorsement or an Affidavit of Non-Authorization for Direct Deposit. If the

claimant believes that neither the claimant nor the claimant's authorized agent

endorsed the check or completed the direct deposit authorization, within 30 days


18



after the mailing of the copy of the check or Direct Deposit Authorization/Change

Form, the claimant must file the completed Affidavit of Non-Endorsement or

Affidavit of Non-Authorization for Direct Deposit, as appropriate, at the local

office where the claimant last filed a claim for benefits.

b) When a request for reissuance of a benefit check is made by a second endorser

and the original benefit check has been processed by the payor bank, the request

must be made within 90 days after the date that the check was paid by the payor

bank.


Section 2830.310 Debit CardCheck Or Direct Deposit Authorization Forgery Investigation

a) When ana forgery investigation is to be conducted because the claimant claims he

or she did not receive the proceeds of a payment, the claimant must file a

completed Affidavit of Non-Receipt of UI Benefits at a local office, by mail at the

address listed on the Affidavit, or by fax at the number provided on the Affidavit.

This form is available on the Department's website (ides.illinois.gov). When

submitting a completed Affidavit of Non-Receipt of UI Benefits by fax, the

claimant must also submit proof of identification by including a photocopy of a

current and valid driver's license or State identification card and a valid Social

Security card or other evidence of his or her Social Security number, such as a W-

2 form. When an Affidavit has been filed at a local office, all materials relevant to

the investigationmatter shall be forwarded to the Department's Benefit Payment

Control Subdivision where a special agent shall investigate the matter and prepare

a recommendation as to whether to reissue the payment to the claimant.

b) The Department's Benefit Payment Control Subdivision will conduct an

investigation, including an interview of the claimant as provided in Section

2830.325, and shall issue a decision either allowing or denying the request for

reissuance of payment as provided in Section 2830.335If the recommendation of

the special agent is not to reissue the payment, the special agent shall set the

matter for a forgery interview pursuant to Section 2830.315.

c) Prior to the forgery interview required byprovided in Section 2830.3252830.315,

the Department employeespecial agent who conducted the initial investigation

shall prepare a form, SI-1F, Report of Forgery Investigation, and record the

results of the following in chronological order:


18



1) Any contact with the second endorser or payor bankof the check. Any

relevant information or evidence, such as check cashing registration cards

or direct deposit information, should be noted and included in the file;

2) Contact with additional witnesses as might be deemed necessary by the

Department employee who conducted the investigation; andspecial agent;

3) Any contact with the claimant, including any background information that

might have been discovered.; and

4) A summary of all relevant facts and the basis for the decision not to

reissue the payment.


Section 2830.315 Notice ofOf Interview

a) Written notice of the date, time and place of the forgery interview shallwill be

mailed to the claimant, at the address shown on the Affidavit of Non-Receipt of

UI Benefits submitted by the claimant, at least 10 days prior to the date of the

interview.

b) The notice of interview shall identify the facts and issues to be covered by the

interview.

c) The notice of interview shall be sent to the claimant at the address shown on the

Affidavit of Non-Endorsement or Affidavit of Non-Authorization for Direct

Deposit, as the case may be.


Section 2830.320 Continuances

The Department employeespecial agent to whom the matter is assigned shall grant continuances

only for good cause shown. When a continuance is granted, the interview shall be rescheduled

forat the earliest possible time convenient to all parties. All parties shall be informed of the date,

time and place of the rescheduled interview either orally or in writing.


18




Section 2830.325 Debit Card orCheck Or Direct Deposit Authorization Forgery Interview

a) The Department employee assigned to the matter shall conduct an A special agent

other than the special agent who conducted the investigation will control the

interview of the claimant that is, which will be limited to the issues set forth in the

notice of interview.;

b) All testimony at the interview shall be made under oath or affirmation.;

c) At the interview, the Department employee assigned to the matterspecial agent

shall:

1) Inform the parties of the purpose of the interview and of their rights under

the Act and the rules promulgated thereunder;

2) Present to the claimant all relevant material obtained during the

investigation;

3) If the second endorser is present, take any testimony that he or she can

offer on the cashing of the benefit check;

34) Provide the claimant with an opportunity to explain any reasons or to

present any evidence that would show that the signature on the change of

addressbenefit check or direct deposit authorization form is not his or hers

(or otherwise that one of these formsthe direct deposit authorization form

is not authentic if it was submitted via the internet), and then allow the

claimant to cross-examine any witnesses at the hearing or rebut any other

evidence presented; and

45) Issue ahis or her decision on the available facts, even if the claimant does

not appear at the interview (there shall be no defaults for want of

prosecution, though the claimant may withdraw his or her request for

reissuance).


Section 2830.330 The Record


18



A complete record shall be maintained of the interview bybefore the Department employee

assigned to the matterspecial agent. The record will consist of athe special agent's written

summary of the testimony of the parties and their witnesses and copies of all documents, reports,

briefs, motions and findings in the matter.


Section 2830.335 Decision

a) A decision shall be made in writing, shall separately state findings of fact and

conclusions of law, and shall be mailed to the parties thereto.;

b) A decision to allow or deny a claim for reissuance of paymenta benefit check

under this Subpart shall be based on the testimony and evidence in the record and

not solely on an analysis of the claimant's handwriting. The formal rules of

evidence shall not, however, apply in these matters.;

c) No decision shall be based solely on unobjected to hearsay testimony whenwhere

the claimant has testified to the contrary under oath unless the Department

employee assigned to the matterspecial agent finds that the claimant's testimony is

incredible, inconsistent or inherently improbable.

d) No decision shall be based on evidence thatwhich the claimant has not had an

opportunity to review and rebut. The claimant shall be deemed to have waived

his or her right to review and rebut when he or she fails to appear at the scheduled

hearing.


Section 2830.340 Appeals

The decision described in Section 2830.335of the special agent shall constitute a final

administrative decision, subject to review under the State's Administrative Review Law [735

ILCS 5/Art. III].



18

DEPARTMENT OF HEALTHCARE AND FAMILY SERVICES


1) Heading of the Part: Medical Payment



140.439 New Section

4) Statutory Authority: Section 12-13 of the Illinois Public Aid Code [305 ILCS 5/12-13]

5) Complete Description of the Subjects and Issues Involved: This proposed amendment

implements PA 100-587 and creates a Critical Access Care Pharmacy Payment.


rulemaking: None

7) Will this rulemaking replace any emergency rule currently in effect? No



10) Are there any other rulemakings pending on this Part? Yes

Section Numbers: Proposed Actions: Illinois Register Citations:

140.417 Amendment 42 Ill. Reg. 27; January 5, 2018

140.3 Amendment 42 Ill. Reg. 7285; April 20, 2018



140.421 Amendment 42 Ill. Reg. 8119; May 18, 2018

140.513 Amendment 42 Ill. Reg. 9052; June 8, 2018

140.80 Amendment 42 Ill. Reg. 13411; July 13, 2018





140.TABLE N Amendment 42 Ill. Reg. 14043; July 20, 2018

140.421 Amendment 42 Ill. Reg. 16364; August 31, 2018

140.492 Amendment 42 Ill. Reg. 16364; August 31, 2018

140.TABLE D Amendment 42 Ill. Reg. 16364; August 31, 2018


18



11) Statement of Statewide Policy Objective: This rulemaking does not affect units of local

government.

12) Time, Place, and Manner in which interested persons may comment on this proposed

rulemaking: Any interested parties may submit comments, data, views, or arguments

concerning this proposed rulemaking. All comments must be in writing and should be

addressed to:

Christopher Gange

Acting General Counsel

Illinois Department of Healthcare and Family Services

201 South Grand Avenue East, 3rd Floor

Springfield IL 62763-0002

[email protected]



during the first notice period as required by Section 5-40 of the Illinois Administrative




affected: None

B) Reporting, bookkeeping or other procedures required for compliance: None


14) Regulatory Agenda on which this rulemaking was summarized: July 2018



18



TITLE 89: SOCIAL SERVICES

CHAPTER I: DEPARTMENT OF HEALTHCARE AND FAMILY SERVICES

SUBCHAPTER d: MEDICAL PROGRAMS

PART 140

MEDICAL PAYMENT


Section

140.1 Incorporation By Reference

140.2 Medical Assistance Programs

140.3 Covered Services Under Medical Assistance Programs

140.4 Covered Medical Services Under AFDC-MANG for non-pregnant persons who

are 18 years of age or older (Repealed)

140.5 Covered Medical Services Under General Assistance

140.6 Medical Services Not Covered

140.7 Medical Assistance Provided to Individuals Under the Age of Eighteen Who Do

Not Qualify for AFDC and Children Under Age Eight

140.8 Medical Assistance For Qualified Severely Impaired Individuals

140.9 Medical Assistance for a Pregnant Woman Who Would Not Be Categorically

Eligible for AFDC/AFDC-MANG if the Child Were Already Born Or Who Do

Not Qualify As Mandatory Categorically Needy

140.10 Medical Assistance Provided to Persons Confined or Detained by the Criminal

Justice System

SUBPART B: MEDICAL PROVIDER PARTICIPATION

Section

140.11 Enrollment Conditions for Medical Providers

140.12 Participation Requirements for Medical Providers

140.13 Definitions

140.14 Denial of Application to Participate in the Medical Assistance Program

140.15 Suspension and Denial of Payment, Recovery of Money and Penalties

140.16 Termination, Suspension or Exclusion of a Vendor's Eligibility to Participate in

the Medical Assistance Program

140.17 Suspension of a Vendor's Eligibility to Participate in the Medical Assistance

Program

140.18 Effect of Termination, Suspension, Exclusion or Revocation on Persons


18



Associated with Vendor

140.19 Application to Participate or for Reinstatement Subsequent to Termination,

Suspension, Exclusion or Barring

140.20 Submittal of Claims

140.21 Reimbursement for QMB Eligible Medical Assistance Recipients and QMB

Eligible Only Recipients and Individuals Who Are Entitled to Medicare Part A or

Part B and Are Eligible for Some Form of Medicaid Benefits

140.22 Magnetic Tape Billings (Repealed)

140.23 Payment of Claims

140.24 Payment Procedures

140.25 Overpayment or Underpayment of Claims

140.26 Payment to Factors Prohibited

140.27 Assignment of Vendor Payments

140.28 Record Requirements for Medical Providers

140.30 Audits

140.31 Emergency Services Audits

140.32 Prohibition on Participation, and Special Permission for Participation

140.33 Publication of List of Sanctioned Entities

140.35 False Reporting and Other Fraudulent Activities

140.40 Prior Approval for Medical Services or Items

140.41 Prior Approval in Cases of Emergency

140.42 Limitation on Prior Approval

140.43 Post Approval for Items or Services When Prior Approval Cannot Be Obtained

140.44 Withholding of Payments Due to Fraud or Misrepresentation

140.45 Withholding of Payments Upon Provider Audit, Quality of Care Review, Credible

Allegation of Fraud or Failure to Cooperate

140.55 Electronic Data Interchange Service

140.71 Reimbursement for Medical Services Through the Use of a C-13 Invoice Voucher

Advance Payment and Expedited Payments

140.72 Drug Manual (Recodified)

140.73 Drug Manual Updates (Recodified)

140.74 Resolution of Claims Related to Inaccurate or Updated Enrollment Information

SUBPART C: PROVIDER ASSESSMENTS

Section

140.80 Hospital Provider Fund

140.82 Developmentally Disabled Care Provider Fund

140.84 Long Term Care Provider Fund


18



140.86 Supportive Living Facility Funds

140.94 Medicaid Developmentally Disabled Provider Participation Fee Trust

Fund/Medicaid Long Term Care Provider Participation Fee Trust Fund

(Repealed)

140.95 Hospital Services Trust Fund (Repealed)

140.96 General Requirements (Recodified)

140.97 Special Requirements (Recodified)

140.98 Covered Hospital Services (Recodified)

140.99 Hospital Services Not Covered (Recodified)

140.100 Limitation On Hospital Services (Recodified)

140.101 Transplants (Recodified)

140.102 Heart Transplants (Recodified)

140.103 Liver Transplants (Recodified)

140.104 Bone Marrow Transplants (Recodified)

140.110 Disproportionate Share Hospital Adjustments (Recodified)

140.116 Payment for Inpatient Services for GA (Recodified)

140.117 Hospital Outpatient and Clinic Services (Recodified)

140.200 Payment for Hospital Services During Fiscal Year 1982 (Recodified)

140.201 Payment for Hospital Services After June 30, 1982 (Repealed)

140.202 Payment for Hospital Services During Fiscal Year 1983 (Recodified)

140.203 Limits on Length of Stay by Diagnosis (Recodified)

140.300 Payment for Pre-operative Days and Services Which Can Be Performed in an

Outpatient Setting (Recodified)

140.350 Copayments (Recodified)

140.360 Payment Methodology (Recodified)

140.361 Non-Participating Hospitals (Recodified)

140.362 Pre July 1, 1989 Services (Recodified)

140.363 Post June 30, 1989 Services (Recodified)

140.364 Prepayment Review (Recodified)

140.365 Base Year Costs (Recodified)

140.366 Restructuring Adjustment (Recodified)

140.367 Inflation Adjustment (Recodified)

140.368 Volume Adjustment (Repealed)

140.369 Groupings (Recodified)

140.370 Rate Calculation (Recodified)

140.371 Payment (Recodified)

140.372 Review Procedure (Recodified)

140.373 Utilization (Repealed)

140.374 Alternatives (Recodified)


18



140.375 Exemptions (Recodified)

140.376 Utilization, Case-Mix and Discretionary Funds (Repealed)

140.390 Subacute Alcoholism and Substance Abuse Services (Recodified)

140.391 Definitions (Recodified)

140.392 Types of Subacute Alcoholism and Substance Abuse Services (Recodified)

140.394 Payment for Subacute Alcoholism and Substance Abuse Services (Recodified)

140.396 Rate Appeals for Subacute Alcoholism and Substance Abuse Services

(Recodified)

140.398 Hearings (Recodified)

SUBPART D: PAYMENT FOR NON-INSTITUTIONAL SERVICES

Section

140.400 Payment to Practitioners

140.402 Copayments for Noninstitutional Medical Services

140.403 Telehealth Services

140.405 Non-Institutional Rate Reductions

140.410 Physicians' Services

140.411 Covered Services By Physicians

140.412 Services Not Covered By Physicians

140.413 Limitation on Physician Services

140.414 Requirements for Prescriptions and Dispensing of Pharmacy Items – Prescribers

140.416 Optometric Services and Materials

140.417 Limitations on Optometric Services

140.418 Department of Corrections Laboratory

140.420 Dental Services

140.421 Limitations on Dental Services

140.422 Requirements for Prescriptions and Dispensing Items of Pharmacy Items –

Dentists (Repealed)

140.423 Licensed Clinical Psychologist Services

140.424 Licensed Clinical Social Worker Services

140.425 Podiatry Services

140.426 Limitations on Podiatry Services

140.427 Requirement for Prescriptions and Dispensing of Pharmacy Items – Podiatry

(Repealed)

140.428 Chiropractic Services

140.429 Limitations on Chiropractic Services (Repealed)

140.430 Independent Clinical Laboratory Services

140.431 Services Not Covered by Independent Clinical Laboratories


18



140.432 Limitations on Independent Clinical Laboratory Services

140.433 Payment for Clinical Laboratory Services

140.434 Record Requirements for Independent Clinical Laboratories

140.435 Advanced Practice Nurse Services

140.436 Limitations on Advanced Practice Nurse Services

140.438 Diagnostic Imaging Services

140.439 Critical Access Care Pharmacy Payment

140.440 Pharmacy Services

140.441 Pharmacy Services Not Covered

140.442 Prior Approval of Prescriptions

140.443 Filling of Prescriptions

140.444 Compounded Prescriptions

140.445 Legend Prescription Items (Not Compounded)

140.446 Over-the-Counter Items

140.447 Reimbursement

140.448 Returned Pharmacy Items

140.449 Payment of Pharmacy Items

140.450 Record Requirements for Pharmacies

140.451 Prospective Drug Review and Patient Counseling

140.452 Community-based Mental Health Providers Qualified for Payment

140.453 Community-based Mental Health Service Definitions and Professional

Qualifications

140.454 Types of Mental Health Services

140.455 Payment for Mental Health Services

140.456 Hearings

140.457 Therapy Services

140.458 Prior Approval for Therapy Services

140.459 Payment for Therapy Services

140.460 Clinic Services

140.461 Clinic Participation, Data and Certification Requirements

140.462 Covered Services in Clinics

140.463 Clinic Service Payment

140.464 Hospital-Based and Encounter Rate Clinic Payments

140.465 Speech and Hearing Clinics (Repealed)

140.466 Rural Health Clinics (Repealed)

140.467 Independent Clinics

140.469 Hospice

140.470 Eligible Home Health Care, Nursing and Public Health Providers

140.471 Description of Home Health Care Services


18



140.472 Home Health Care Services

140.473 Prior Approval for Home Health Care Services

140.474 Payment for Home Health Care Services

140.475 Medical Equipment, Supplies, Prosthetic Devices and Orthotic Devices

140.476 Medical Equipment, Supplies, Prosthetic Devices and Orthotic Devices for Which

Payment Will Not Be Made

140.477 Limitations on Equipment, Prosthetic Devices and Orthotic Devices

140.478 Prior Approval for Medical Equipment, Supplies, Prosthetic Devices and Orthotic

Devices

140.479 Limitations, Medical Supplies

140.480 Equipment Rental Limitations

140.481 Payment for Medical Equipment, Supplies, Prosthetic Devices and Hearing Aids

140.482 Family Planning Services

140.483 Limitations on Family Planning Services

140.484 Payment for Family Planning Services

140.485 Healthy Kids Program

140.486 Illinois Healthy Women

140.487 Healthy Kids Program Timeliness Standards

140.488 Periodicity Schedules, Immunizations and Diagnostic Laboratory Procedures

140.490 Medical Transportation

140.491 Medical Transportation Limitations and Authorization Process

140.492 Payment for Medical Transportation

140.493 Payment for Helicopter Transportation

140.494 Record Requirements for Medical Transportation Services

140.495 Psychological Services

140.496 Payment for Psychological Services

140.497 Hearing Aids

140.498 Fingerprint-Based Criminal Background Checks

140.499 Behavioral Health Clinic

SUBPART E: GROUP CARE

Section

140.500 Long Term Care Services

140.502 Cessation of Payment at Federal Direction

140.503 Cessation of Payment for Improper Level of Care

140.504 Cessation of Payment Because of Termination of Facility

140.505 Informal Hearing Process for Denial of Payment for New ICF/MR

140.506 Provider Voluntary Withdrawal


18



140.507 Continuation of Provider Agreement

140.510 Determination of Need for Group Care

140.511 Long Term Care Services Covered By Department Payment

140.512 Utilization Control

140.513 Notification of Change in Resident Status

140.514 Certifications and Recertifications of Care (Repealed)

140.515 Management of Recipient Funds – Personal Allowance Funds

140.516 Recipient Management of Funds

140.517 Correspondent Management of Funds

140.518 Facility Management of Funds

140.519 Use or Accumulation of Funds

140.520 Management of Recipient Funds – Local Office Responsibility

140.521 Room and Board Accounts

140.522 Reconciliation of Recipient Funds

140.523 Bed Reserves

140.524 Cessation of Payment Due to Loss of License

140.525 Quality Incentive Program (QUIP) Payment Levels

140.526 County Contribution to Medicaid Reimbursement (Repealed)

140.527 Quality Incentive Survey (Repealed)

140.528 Payment of Quality Incentive (Repealed)

140.529 Reviews (Repealed)

140.530 Basis of Payment for Long Term Care Services

140.531 General Service Costs

140.532 Health Care Costs

140.533 General Administration Costs

140.534 Ownership Costs

140.535 Costs for Interest, Taxes and Rent

140.536 Organization and Pre-Operating Costs

140.537 Payments to Related Organizations

140.538 Special Costs

140.539 Reimbursement for Basic Nursing Assistant, Developmental Disabilities Aide,

Basic Child Care Aide and Habilitation Aide Training and Nursing Assistant

Competency Evaluation

140.540 Costs Associated With Nursing Home Care Reform Act and Implementing

Regulations

140.541 Salaries Paid to Owners or Related Parties

140.542 Cost Reports – Filing Requirements

140.543 Time Standards for Filing Cost Reports

140.544 Access to Cost Reports (Repealed)


18



140.545 Penalty for Failure to File Cost Reports

140.550 Update of Operating Costs

140.551 General Service Costs Updates

140.552 Nursing and Program Costs

140.553 General Administrative Costs Updates

140.554 Component Inflation Index (Repealed)

140.555 Minimum Wage

140.560 Components of the Base Rate Determination

140.561 Support Costs Components

140.562 Nursing Costs

140.563 Capital Costs

140.565 Kosher Kitchen Reimbursement

140.566 Out-of-State Placement

140.567 Level II Incentive Payments (Repealed)

140.568 Duration of Incentive Payments (Repealed)

140.569 Clients With Exceptional Care Needs

140.570 Capital Rate Component Determination

140.571 Capital Rate Calculation

140.572 Total Capital Rate

140.573 Other Capital Provisions

140.574 Capital Rates for Rented Facilities

140.575 Newly Constructed Facilities (Repealed)

140.576 Renovations (Repealed)

140.577 Capital Costs for Rented Facilities (Renumbered)

140.578 Property Taxes

140.579 Specialized Living Centers

140.580 Mandated Capital Improvements (Repealed)

140.581 Qualifying as Mandated Capital Improvement (Repealed)

140.582 Cost Adjustments

140.583 Campus Facilities

140.584 Illinois Municipal Retirement Fund (IMRF)

140.590 Audit and Record Requirements

140.642 Screening Assessment for Nursing Facility and Alternative Residential Settings

and Services

140.643 In-Home Care Program

140.645 Home and Community Based Services Waivers for Medically Fragile,

Technology Dependent, Disabled Persons Under Age 21 (Repealed)

140.646 Reimbursement for Developmental Training (DT) Services for Individuals With

Developmental Disabilities Who Reside in Long Term Care (ICF and SNF) and


18



Residential (ICF/MR) Facilities

140.647 Description of Developmental Training (DT) Services

140.648 Determination of the Amount of Reimbursement for Developmental Training

(DT) Programs

140.649 Effective Dates of Reimbursement for Developmental Training (DT) Programs

140.650 Certification of Developmental Training (DT) Programs

140.651 Decertification of Day Programs

140.652 Terms of Assurances and Contracts

140.680 Effective Date Of Payment Rate

140.700 Discharge of Long Term Care Residents

140.830 Appeals of Rate Determinations

140.835 Determination of Cap on Payments for Long Term Care (Repealed)

SUBPART F: FEDERAL CLAIMING FOR STATE AND

LOCAL GOVERNMENTAL ENTITIES

Section

140.850 Reimbursement of Administrative Expenditures

140.855 Administrative Claim Review and Reconsideration Procedure

140.860 County Owned or Operated Nursing Facilities

140.865 Sponsor Qualifications (Repealed)

140.870 Sponsor Responsibilities (Repealed)

140.875 Department Responsibilities (Repealed)

140.880 Provider Qualifications (Repealed)

140.885 Provider Responsibilities (Repealed)

140.890 Payment Methodology (Repealed)

140.895 Contract Monitoring (Repealed)

140.896 Reimbursement For Program Costs (Active Treatment) For Clients in Long Term

Care Facilities For the Developmentally Disabled (Recodified)

140.900 Reimbursement For Nursing Costs For Geriatric Residents in Group Care

Facilities (Recodified)

140.901 Functional Areas of Needs (Recodified)

140.902 Service Needs (Recodified)

140.903 Definitions (Recodified)

140.904 Times and Staff Levels (Repealed)

140.905 Statewide Rates (Repealed)

140.906 Reconsiderations (Recodified)

140.907 Midnight Census Report (Recodified)

140.908 Times and Staff Levels (Recodified)


18



140.909 Statewide Rates (Recodified)

140.910 Referrals (Recodified)

140.911 Basic Rehabilitation Aide Training Program (Recodified)

140.912 Interim Nursing Rates (Recodified)

SUBPART G: MATERNAL AND CHILD HEALTH PROGRAM

Section

140.920 General Description

140.922 Covered Services

140.924 Maternal and Child Health Provider Participation Requirements

140.926 Client Eligibility (Repealed)

140.928 Client Enrollment and Program Components (Repealed)

140.930 Reimbursement

140.932 Payment Authorization for Referrals (Repealed)

SUBPART H: ILLINOIS COMPETITIVE ACCESS AND

REIMBURSEMENT EQUITY (ICARE) PROGRAM

Section

140.940 Illinois Competitive Access and Reimbursement Equity (ICARE) Program

(Recodified)

140.942 Definition of Terms (Recodified)

140.944 Notification of Negotiations (Recodified)

140.946 Hospital Participation in ICARE Program Negotiations (Recodified)

140.948 Negotiation Procedures (Recodified)

140.950 Factors Considered in Awarding ICARE Contracts (Recodified)

140.952 Closing an ICARE Area (Recodified)

140.954 Administrative Review (Recodified)

140.956 Payments to Contracting Hospitals (Recodified)

140.958 Admitting and Clinical Privileges (Recodified)

140.960 Inpatient Hospital Care or Services by Non-Contracting Hospitals Eligible for

Payment (Recodified)

140.962 Payment to Hospitals for Inpatient Services or Care not Provided under the

ICARE Program (Recodified)

140.964 Contract Monitoring (Recodified)

140.966 Transfer of Recipients (Recodified)

140.968 Validity of Contracts (Recodified)

140.970 Termination of ICARE Contracts (Recodified)


18



140.972 Hospital Services Procurement Advisory Board (Recodified)

140.980 Elimination Of Aid To The Medically Indigent (AMI) Program (Emergency

Expired)

140.982 Elimination Of Hospital Services For Persons Age Eighteen (18) And Older And

Persons Married And Living With Spouse, Regardless Of Age (Emergency

Expired)

SUBPART I: PRIMARY CARE CASE MANAGEMENT PROGRAM

Section

140.990 Primary Care Case Management Program

140.991 Primary Care Provider Participation Requirements

140.992 Populations Eligible to Participate in the Primary Care Case Management

Program

140.993 Care Management Fees

140.994 Panel Size and Affiliated Providers

140.995 Mandatory Enrollment

140.996 Access to Health Care Services

140.997 Payment for Services

SUBPART J: ALTERNATE PAYEE PARTICIPATION

Section

140.1001 Registration Conditions for Alternate Payees

140.1002 Participation Requirements for Alternate Payees

140.1003 Recovery of Money for Alternate Payees

140.1004 Conditional Registration for Alternate Payees

140.1005 Revocation of an Alternate Payee

SUBPART K: MANDATORY MCO ENROLLMENT

Section

140.1010 Mandatory Enrollment in MCOs

SUBPART L: UNAUTHORIZED USE OF MEDICAL ASSISTANCE

Section

140.1300 Definitions

140.1310 Recovery of Money


18



140.1320 Penalties

140.1330 Enforcement

140.TABLE A Criteria for Non-Emergency Ambulance Transportation

140.TABLE B Geographic Areas

140.TABLE C Capital Cost Areas

140.TABLE D Schedule of Dental Procedures

140.TABLE E Time Limits for Processing of Prior Approval Requests

140.TABLE F Podiatry Service Schedule

140.TABLE G Travel Distance Standards

140.TABLE H Areas of Major Life Activity

140.TABLE I Staff Time and Allocation for Training Programs (Recodified)

140.TABLE J Rate Regions

140.TABLE K Services Qualifying for 10% Add-On (Repealed)

140.TABLE L Services Qualifying for 10% Add-On to Surgical Incentive Add-On

(Repealed)

140.TABLE M Enhanced Rates for Maternal and Child Health Provider Services (Repealed)

140.TABLE N Program Approval for Specified Behavioral Health Services

140.TABLE O Criteria for Participation as a Behavioral Health Clinic

AUTHORITY: Implementing and authorized by Articles III, IV, V and VI and Section 12-13 of

the Illinois Public Aid Code [305 ILCS 5/Arts. III, IV, V and VI and 12-13].

SOURCE: Adopted at 3 Ill. Reg. 24, p. 166, effective June 10, 1979; rule repealed and new rule

adopted at 6 Ill. Reg. 8374, effective July 6, 1982; emergency amendment at 6 Ill. Reg. 8508,

effective July 6, 1982, for a maximum of 150 days; amended at 7 Ill. Reg. 681, effective

December 30, 1982; amended at 7 Ill. Reg. 7956, effective July 1, 1983; amended at 7 Ill. Reg.

8308, effective July 1, 1983; amended at 7 Ill. Reg. 8271, effective July 5, 1983; emergency

amendment at 7 Ill. Reg. 8354, effective July 5, 1983, for a maximum of 150 days; amended at 7

Ill. Reg. 8540, effective July 15, 1983; amended at 7 Ill. Reg. 9382, effective July 22, 1983;

amended at 7 Ill. Reg. 12868, effective September 20, 1983; peremptory amendment at 7 Ill.

Reg. 15047, effective October 31, 1983; amended at 7 Ill. Reg. 17358, effective December 21,

1983; amended at 8 Ill. Reg. 254, effective December 21, 1983; emergency amendment at 8 Ill.

Reg. 580, effective January 1, 1984, for a maximum of 150 days; codified at 8 Ill. Reg. 2483;

amended at 8 Ill. Reg. 3012, effective February 22, 1984; amended at 8 Ill. Reg. 5262, effective

April 9, 1984; amended at 8 Ill. Reg. 6785, effective April 27, 1984; amended at 8 Ill. Reg. 6983,

effective May 9, 1984; amended at 8 Ill. Reg. 7258, effective May 16, 1984; emergency

amendment at 8 Ill. Reg. 7910, effective May 22, 1984, for a maximum of 150 days; amended at

8 Ill. Reg. 7910, effective June 1, 1984; amended at 8 Ill. Reg. 10032, effective June 18, 1984;


18



emergency amendment at 8 Ill. Reg. 10062, effective June 20, 1984, for a maximum of 150 days;

amended at 8 Ill. Reg. 13343, effective July 17, 1984; amended at 8 Ill. Reg. 13779, effective

July 24, 1984; Sections 140.72 and 140.73 recodified to 89 Ill. Adm. Code 141 at 8 Ill. Reg.

16354; amended (by adding sections being codified with no substantive change) at 8 Ill. Reg.

17899; peremptory amendment at 8 Ill. Reg. 18151, effective September 18, 1984; amended at 8

Ill. Reg. 21629, effective October 19, 1984; peremptory amendment at 8 Ill. Reg. 21677,

effective October 24, 1984; amended at 8 Ill. Reg. 22097, effective October 24, 1984;

peremptory amendment at 8 Ill. Reg. 22155, effective October 29, 1984; amended at 8 Ill. Reg.

23218, effective November 20, 1984; emergency amendment at 8 Ill. Reg. 23721, effective

November 21, 1984, for a maximum of 150 days; amended at 8 Ill. Reg. 25067, effective

December 19, 1984; emergency amendment at 9 Ill. Reg. 407, effective January 1, 1985, for a

maximum of 150 days; amended at 9 Ill. Reg. 2697, effective February 22, 1985; amended at 9

Ill. Reg. 6235, effective April 19, 1985; amended at 9 Ill. Reg. 8677, effective May 28, 1985;

amended at 9 Ill. Reg. 9564, effective June 5, 1985; amended at 9 Ill. Reg. 10025, effective June

26, 1985; emergency amendment at 9 Ill. Reg. 11403, effective June 27, 1985, for a maximum of

150 days; amended at 9 Ill. Reg. 11357, effective June 28, 1985; amended at 9 Ill. Reg. 12000,

effective July 24, 1985; amended at 9 Ill. Reg. 12306, effective August 5, 1985; amended at 9 Ill.

Reg. 13998, effective September 3, 1985; amended at 9 Ill. Reg. 14684, effective September 13,

1985; amended at 9 Ill. Reg. 15503, effective October 4, 1985; amended at 9 Ill. Reg. 16312,

effective October 11, 1985; amended at 9 Ill. Reg. 19138, effective December 2, 1985; amended

at 9 Ill. Reg. 19737, effective December 9, 1985; amended at 10 Ill. Reg. 238, effective

December 27, 1985; emergency amendment at 10 Ill. Reg. 798, effective January 1, 1986, for a

maximum of 150 days; amended at 10 Ill. Reg. 672, effective January 6, 1986; amended at 10 Ill.

Reg. 1206, effective January 13, 1986; amended at 10 Ill. Reg. 3041, effective January 24, 1986;

amended at 10 Ill. Reg. 6981, effective April 16, 1986; amended at 10 Ill. Reg. 7825, effective

April 30, 1986; amended at 10 Ill. Reg. 8128, effective May 7, 1986; emergency amendment at

10 Ill. Reg. 8912, effective May 13, 1986, for a maximum of 150 days; amended at 10 Ill. Reg.

11440, effective June 20, 1986; amended at 10 Ill. Reg. 14714, effective August 27, 1986;

amended at 10 Ill. Reg. 15211, effective September 12, 1986; emergency amendment at 10 Ill.

Reg. 16729, effective September 18, 1986, for a maximum of 150 days; amended at 10 Ill. Reg.

18808, effective October 24, 1986; amended at 10 Ill. Reg. 19742, effective November 12, 1986;

amended at 10 Ill. Reg. 21784, effective December 15, 1986; amended at 11 Ill. Reg. 698,

effective December 19, 1986; amended at 11 Ill. Reg. 1418, effective December 31, 1986;

amended at 11 Ill. Reg. 2323, effective January 16, 1987; amended at 11 Ill. Reg. 4002, effective

February 25, 1987; Section 140.71 recodified to 89 Ill. Adm. Code 141 at 11 Ill. Reg. 4302;

amended at 11 Ill. Reg. 4303, effective March 6, 1987; amended at 11 Ill. Reg. 7664, effective

April 15, 1987; emergency amendment at 11 Ill. Reg. 9342, effective April 20, 1987, for a

maximum of 150 days; amended at 11 Ill. Reg. 9169, effective April 28, 1987; amended at 11 Ill.

Reg. 10903, effective June 1, 1987; amended at 11 Ill. Reg. 11528, effective June 22, 1987;


18




July 6, 1987; amended at 11 Ill. Reg. 14048, effective August 14, 1987; amended at 11 Ill. Reg.

14771, effective August 25, 1987; amended at 11 Ill. Reg. 16758, effective September 28, 1987;

amended at 11 Ill. Reg. 17295, effective September 30, 1987; amended at 11 Ill. Reg. 18696,

effective October 27, 1987; amended at 11 Ill. Reg. 20909, effective December 14, 1987;

amended at 12 Ill. Reg. 916, effective January 1, 1988; emergency amendment at 12 Ill. Reg.

1960, effective January 1, 1988, for a maximum of 150 days; amended at 12 Ill. Reg. 5427,

effective March 15, 1988; amended at 12 Ill. Reg. 6246, effective March 16, 1988; amended at

12 Ill. Reg. 6728, effective March 22, 1988; Sections 140.900 thru 140.912 and 140.Table H and

140.Table I recodified to 89 Ill. Adm. Code 147.5 thru 147.205 and 147.Table A and 147.Table

B at 12 Ill. Reg. 6956; amended at 12 Ill. Reg. 6927, effective April 5, 1988; Sections 140.940

thru 140.972 recodified to 89 Ill. Adm. Code 149.5 thru 149.325 at 12 Ill. Reg. 7401; amended at

12 Ill. Reg. 7695, effective April 21, 1988; amended at 12 Ill. Reg. 10497, effective June 3,

1988; amended at 12 Ill. Reg. 10717, effective June 14, 1988; emergency amendment at 12 Ill.

Reg. 11868, effective July 1, 1988, for a maximum of 150 days; amended at 12 Ill. Reg. 12509,

effective July 15, 1988; amended at 12 Ill. Reg. 14271, effective August 29, 1988; emergency

amendment at 12 Ill. Reg. 16921, effective September 28, 1988, for a maximum of 150 days;


effective October 24, 1988; amended at 12 Ill. Reg. 18198, effective November 4, 1988;

amended at 12 Ill. Reg. 19396, effective November 6, 1988; amended at 12 Ill. Reg. 19734,

effective November 15, 1988; amended at 13 Ill. Reg. 125, effective January 1, 1989; amended

at 13 Ill. Reg. 2475, effective February 14, 1989; amended at 13 Ill. Reg. 3069, effective

February 28, 1989; amended at 13 Ill. Reg. 3351, effective March 6, 1989; amended at 13 Ill.

Reg. 3917, effective March 17, 1989; amended at 13 Ill. Reg. 5115, effective April 3, 1989;


April 24, 1989; Sections 140.850 thru 140.896 recodified to 89 Ill. Adm. Code 146.5 thru

146.225 at 13 Ill. Reg. 7040; amended at 13 Ill. Reg. 7786, effective May 20, 1989; Sections

140.94 thru 140.398 recodified to 89 Ill. Adm. Code 148.10 thru 148.390 at 13 Ill. Reg. 9572;

emergency amendment at 13 Ill. Reg. 10977, effective July 1, 1989, for a maximum of 150 days;

emergency expired November 28, 1989; amended at 13 Ill. Reg. 11516, effective July 3, 1989;

amended at 13 Ill. Reg. 12119, effective July 7, 1989; Section 140.110 recodified to 89 Ill. Adm.

Code 148.120 at 13 Ill. Reg. 12118; amended at 13 Ill. Reg. 12562, effective July 17, 1989;

amended at 13 Ill. Reg. 14391, effective August 31, 1989; emergency amendment at 13 Ill. Reg.

15473, effective September 12, 1989, for a maximum of 150 days; amended at 13 Ill. Reg.

16992, effective October 16, 1989; amended at 14 Ill. Reg. 190, effective December 21, 1989;

amended at 14 Ill. Reg. 2564, effective February 9, 1990; emergency amendment at 14 Ill. Reg.

3241, effective February 14, 1990, for a maximum of 150 days; emergency expired July 14,

1990; amended at 14 Ill. Reg. 4543, effective March 12, 1990; emergency amendment at 14 Ill.

Reg. 4577, effective March 6, 1990, for a maximum of 150 days; emergency expired August 3,


18



1990; emergency amendment at 14 Ill. Reg. 5575, effective April 1, 1990, for a maximum of 150

days; emergency expired August 29, 1990; emergency amendment at 14 Ill. Reg. 5865, effective

April 3, 1990, for a maximum of 150 days; amended at 14 Ill. Reg. 7141, effective April 27,

1990; emergency amendment at 14 Ill. Reg. 7249, effective April 27, 1990, for a maximum of

150 days; amended at 14 Ill. Reg. 10062, effective June 12, 1990; amended at 14 Ill. Reg. 10409,

effective June 19, 1990; emergency amendment at 14 Ill. Reg. 12082, effective July 5, 1990, for

a maximum of 150 days; amended at 14 Ill. Reg. 13262, effective August 6, 1990; emergency

amendment at 14 Ill. Reg. 14184, effective August 16, 1990, for a maximum of 150 days;

emergency amendment at 14 Ill. Reg. 14570, effective August 22, 1990, for a maximum of 150

days; amended at 14 Ill. Reg. 14826, effective August 31, 1990; amended at 14 Ill. Reg. 15366,

effective September 12, 1990; amended at 14 Ill. Reg. 15981, effective September 21, 1990;


effective October 22, 1990; amended at 14 Ill. Reg. 18508, effective October 30, 1990; amended

at 14 Ill. Reg. 18813, effective November 6, 1990; Notice of Corrections to Adopted

Amendment at 15 Ill. Reg. 1174; amended at 14 Ill. Reg. 20478, effective December 7, 1990;


effective December 28, 1990; emergency amendment at 15 Ill. Reg. 592, effective January 1,

1991, for a maximum of 150 days; amended at 15 Ill. Reg. 1051, effective January 18, 1991;


April 30, 1991; amended at 15 Ill. Reg. 8264, effective May 23, 1991; amended at 15 Ill. Reg.

8972, effective June 17, 1991; amended at 15 Ill. Reg. 10114, effective June 21, 1991; amended

at 15 Ill. Reg. 10468, effective July 1, 1991; amended at 15 Ill. Reg. 11176, effective August 1,

1991; emergency amendment at 15 Ill. Reg. 11515, effective July 25, 1991, for a maximum of

150 days; emergency expired December 22, 1991; emergency amendment at 15 Ill. Reg. 12919,

effective August 15, 1991, for a maximum of 150 days; emergency expired January 12, 1992;

emergency amendment at 15 Ill. Reg. 16366, effective October 22, 1991, for a maximum of 150

days; amended at 15 Ill. Reg. 17318, effective November 18, 1991; amended at 15 Ill. Reg.

17733, effective November 22, 1991; emergency amendment at 16 Ill. Reg. 300, effective

December 20, 1991, for a maximum of 150 days; amended at 16 Ill. Reg. 174, effective

December 24, 1991; amended at 16 Ill. Reg. 1877, effective January 24, 1992; amended at 16 Ill.

Reg. 3552, effective February 28, 1992; amended at 16 Ill. Reg. 4006, effective March 6, 1992;

amended at 16 Ill. Reg. 6408, effective March 20, 1992; expedited correction at 16 Ill. Reg.

11348, effective March 20, 1992; amended at 16 Ill. Reg. 6849, effective April 7, 1992; amended

at 16 Ill. Reg. 7017, effective April 17, 1992; amended at 16 Ill. Reg. 10050, effective June 5,

1992; amended at 16 Ill. Reg. 11174, effective June 26, 1992; emergency amendment at 16 Ill.

Reg. 11947, effective July 10, 1992, for a maximum of 150 days; amended at 16 Ill. Reg. 12186,

effective July 24, 1992; emergency amendment at 16 Ill. Reg. 13337, effective August 14, 1992,

for a maximum of 150 days; emergency amendment at 16 Ill. Reg. 15109, effective September

21, 1992, for a maximum of 150 days; amended at 16 Ill. Reg. 15561, effective September 30,


18



1992; amended at 16 Ill. Reg. 17302, effective November 2, 1992; emergency amendment at 16

Ill. Reg. 18097, effective November 17, 1992, for a maximum of 150 days; amended at 16 Ill.

Reg. 19146, effective December 1, 1992; expedited correction at 17 Ill. Reg. 7078, effective

December 1, 1992; amended at 16 Ill. Reg. 19879, effective December 7, 1992; amended at 17

Ill. Reg. 837, effective January 11, 1993; amended at 17 Ill. Reg. 1112, effective January 15,

1993; amended at 17 Ill. Reg. 2290, effective February 15, 1993; amended at 17 Ill. Reg. 2951,

effective February 17, 1993; amended at 17 Ill. Reg. 3421, effective February 19, 1993; amended

at 17 Ill. Reg. 6196, effective April 5, 1993; amended at 17 Ill. Reg. 6839, effective April 21,

1993; amended at 17 Ill. Reg. 7004, effective May 17, 1993; emergency amendment at 17 Ill.

Reg. 11201, effective July 1, 1993, for a maximum of 150 days; emergency amendment at 17 Ill.

Reg. 15162, effective September 2, 1993, for a maximum of 150 days; emergency amendment

suspended at 17 Ill. Reg. 18902, effective October 12, 1993; emergency amendment at 17 Ill.

Reg. 18152, effective October 1, 1993, for a maximum of 150 days; amended at 17 Ill. Reg.

18571, effective October 8, 1993; emergency amendment at 17 Ill. Reg. 18611, effective October

1, 1993, for a maximum of 150 days; amended at 17 Ill. Reg. 20999, effective November 24,

1993; emergency amendment repealed at 17 Ill. Reg. 22583, effective December 20, 1993;

amended at 18 Ill. Reg. 3620, effective February 28, 1994; amended at 18 Ill. Reg. 4250,

effective March 4, 1994; amended at 18 Ill. Reg. 5951, effective April 1, 1994; emergency

amendment at 18 Ill. Reg. 10922, effective July 1, 1994, for a maximum of 150 days; emergency

amendment suspended at 18 Ill. Reg. 17286, effective November 15, 1994; emergency

amendment repealed at 19 Ill. Reg. 5839, effective April 4, 1995; amended at 18 Ill. Reg. 11244,

effective July 1, 1994; amended at 18 Ill. Reg. 14126, effective August 29, 1994; amended at 18

Ill. Reg. 16675, effective November 1, 1994; amended at 18 Ill. Reg. 18059, effective December

19, 1994; amended at 19 Ill. Reg. 1082, effective January 20, 1995; amended at 19 Ill. Reg.

2933, effective March 1, 1995; emergency amendment at 19 Ill. Reg. 3529, effective March 1,

1995, for a maximum of 150 days; amended at 19 Ill. Reg. 5663, effective April 1, 1995;

amended at 19 Ill. Reg. 7919, effective June 5, 1995; emergency amendment at 19 Ill. Reg. 8455,

effective June 9, 1995, for a maximum of 150 days; emergency amendment at 19 Ill. Reg. 9297,

effective July 1, 1995, for a maximum of 150 days; emergency amendment at 19 Ill. Reg. 10252,


September 5, 1995; amended at 19 Ill. Reg. 14440, effective September 29, 1995; emergency

amendment at 19 Ill. Reg. 14833, effective October 6, 1995, for a maximum of 150 days;


effective November 6, 1995; amended at 19 Ill. Reg. 16677, effective November 28, 1995;


effective March 4, 1996; amended at 20 Ill. Reg. 5858, effective April 5, 1996; amended at 20

Ill. Reg. 6929, effective May 6, 1996; amended at 20 Ill. Reg. 7922, effective May 31, 1996;

amended at 20 Ill. Reg. 9081, effective June 28, 1996; emergency amendment at 20 Ill. Reg.

9312, effective July 1, 1996, for a maximum of 150 days; amended at 20 Ill. Reg. 11332,


18



effective August 1, 1996; amended at 20 Ill. Reg. 14845, effective October 31, 1996; emergency

amendment at 21 Ill. Reg. 705, effective December 31, 1996, for a maximum of 150 days;

emergency amendment at 21 Ill. Reg. 3734, effective March 5, 1997, for a maximum of 150

days; amended at 21 Ill. Reg. 4777, effective April 2, 1997; amended at 21 Ill. Reg. 6899,

effective May 23, 1997; amended at 21 Ill. Reg. 9763, effective July 15, 1997; amended at 21 Ill.

Reg. 11569, effective August 1, 1997; emergency amendment at 21 Ill. Reg. 13857, effective

October 1, 1997, for a maximum of 150 days; amended at 22 Ill. Reg. 1416, effective December

29, 1997; amended at 22 Ill. Reg. 4412, effective February 27, 1998; amended at 22 Ill. Reg.

7024, effective April 1, 1998; amended at 22 Ill. Reg. 10606, effective June 1, 1998; emergency

amendment at 22 Ill. Reg. 13117, effective July 1, 1998, for a maximum of 150 days; amended at

22 Ill. Reg. 16302, effective August 28, 1998; amended at 22 Ill. Reg. 18979, effective

September 30, 1998; amended at 22 Ill. Reg. 19898, effective October 30, 1998; emergency

amendment at 22 Ill. Reg. 22108, effective December 1, 1998, for a maximum of 150 days;

emergency expired April 29, 1999; amended at 23 Ill. Reg. 5796, effective April 30, 1999;

amended at 23 Ill. Reg. 7122, effective June 1, 1999; emergency amendment at 23 Ill. Reg. 8236,


August 3, 1999; amended at 23 Ill. Reg. 12697, effective October 1, 1999; amended at 23 Ill.

Reg. 13646, effective November 1, 1999; amended at 23 Ill. Reg. 14567, effective December 1,

1999; amended at 24 Ill. Reg. 661, effective January 3, 2000; amended at 24 Ill. Reg. 10277,

effective July 1, 2000; emergency amendment at 24 Ill. Reg. 10436, effective July 1, 2000, for a

maximum of 150 days; amended at 24 Ill. Reg. 15086, effective October 1, 2000; amended at 24

Ill. Reg. 18320, effective December 1, 2000; emergency amendment at 24 Ill. Reg. 19344,

effective December 15, 2000, for a maximum of 150 days; amended at 25 Ill. Reg. 3897,

effective March 1, 2001; amended at 25 Ill. Reg. 6665, effective May 11, 2001; amended at 25

Ill. Reg. 8793, effective July 1, 2001; emergency amendment at 25 Ill. Reg. 8850, effective July

1, 2001, for a maximum of 150 days; amended at 25 Ill. Reg. 11880, effective September 1,


effective November 1, 2001; emergency amendment at 25 Ill. Reg. 16127, effective November

28, 2001, for a maximum of 150 days; emergency amendment at 25 Ill. Reg. 16292, effective

December 3, 2001, for a maximum of 150 days; emergency amendment at 26 Ill. Reg. 514,

effective January 1, 2002, for a maximum of 150 days; amended at 26 Ill. Reg. 663, effective

January 7, 2002; amended at 26 Ill. Reg. 4781, effective March 15, 2002; emergency amendment

at 26 Ill. Reg. 5984, effective April 15, 2002, for a maximum of 150 days; amended at 26 Ill.

Reg. 7285, effective April 29, 2002; emergency amendment at 26 Ill. Reg. 8594, effective June

1, 2002, for a maximum of 150 days; emergency amendment at 26 Ill. Reg. 11259, effective July

1, 2002, for a maximum of 150 days; emergency amendment at 26 Ill. Reg. 12461, effective July

29, 2002, for a maximum of 150 days; emergency amendment repealed at 26 Ill. Reg. 16593,

effective October 22, 2002; emergency amendment at 26 Ill. Reg. 12772, effective August 12,

2002, for a maximum of 150 days; amended at 26 Ill. Reg. 13641, effective September 3, 2002;


18



amended at 26 Ill. Reg. 14789, effective September 26, 2002; emergency amendment at 26 Ill.

Reg. 15076, effective October 1, 2002, for a maximum of 150 days; amended at 26 Ill. Reg.

16303, effective October 25, 2002; amended at 26 Ill. Reg. 17751, effective November 27, 2002;

amended at 27 Ill. Reg. 768, effective January 3, 2003; amended at 27 Ill. Reg. 3041, effective

February 10, 2003; amended at 27 Ill. Reg. 4364, effective February 24, 2003; amended at 27 Ill.

Reg. 7823, effective May 1, 2003; amended at 27 Ill. Reg. 9157, effective June 2, 2003;

emergency amendment at 27 Ill. Reg. 10813, effective July 1, 2003, for a maximum of 150 days;

amended at 27 Ill. Reg. 13784, effective August 1, 2003; amended at 27 Ill. Reg. 14799,

effective September 5, 2003; emergency amendment at 27 Ill. Reg. 15584, effective September

20, 2003, for a maximum of 150 days; emergency amendment at 27 Ill. Reg. 16161, effective

October 1, 2003, for a maximum of 150 days; amended at 27 Ill. Reg. 18629, effective

November 26, 2003; amended at 28 Ill. Reg. 2744, effective February 1, 2004; amended at 28 Ill.

Reg. 4958, effective March 3, 2004; emergency amendment at 28 Ill. Reg. 6622, effective April

19, 2004, for a maximum of 150 days; amended at 28 Ill. Reg. 7081, effective May 3, 2004;

emergency amendment at 28 Ill. Reg. 8108, effective June 1, 2004, for a maximum of 150 days;

amended at 28 Ill. Reg. 9640, effective July 1, 2004; emergency amendment at 28 Ill. Reg.

10135, effective July 1, 2004, for a maximum of 150 days; amended at 28 Ill. Reg. 11161,

effective August 1, 2004; emergency amendment at 28 Ill. Reg. 12198, effective August 11,

2004, for a maximum of 150 days; amended at 28 Ill. Reg. 13775, effective October 1, 2004;



at 29 Ill. Reg. 6945, effective May 1, 2005; emergency amendment at 29 Ill. Reg. 8509, effective

June 1, 2005, for a maximum of 150 days; emergency amendment at 29 Ill. Reg. 12534, effective

August 1, 2005, for a maximum of 150 days; amended at 29 Ill. Reg. 14957, effective September

30, 2005; emergency amendment at 29 Ill. Reg. 15064, effective October 1, 2005, for a

maximum of 150 days; emergency amendment repealed by emergency rulemaking at 29 Ill. Reg.

15985, effective October 5, 2005, for the remainder of the 150 days; emergency amendment at

29 Ill. Reg. 15610, effective October 1, 2005, for a maximum of 150 days; emergency

amendment at 29 Ill. Reg. 16515, effective October 5, 2005, for a maximum of 150 days;

amended at 30 Ill. Reg. 349, effective December 28, 2005; emergency amendment at 30 Ill. Reg.

573, effective January 1, 2006, for a maximum of 150 days; amended at 30 Ill. Reg. 796,

effective January 1, 2006; amended at 30 Ill. Reg. 2802, effective February 24, 2006; amended at

30 Ill. Reg. 10370, effective May 26, 2006; emergency amendment at 30 Ill. Reg. 12376,

effective July 1, 2006, for a maximum of 150 days; emergency amendment at 30 Ill. Reg. 13909,

effective August 2, 2006, for a maximum of 150 days; amended at 30 Ill. Reg. 14280, effective

August 18, 2006; expedited correction at 31 Ill. Reg. 1745, effective August 18, 2006;

emergency amendment at 30 Ill. Reg. 17970, effective November 1, 2006, for a maximum of 150

days; amended at 30 Ill. Reg. 18648, effective November 27, 2006; emergency amendment at 30

Ill. Reg. 19400, effective December 1, 2006, for a maximum of 150 days; amended at 31 Ill.


18



Reg. 388, effective December 29, 2006; emergency amendment at 31 Ill. Reg. 1580, effective

January 1, 2007, for a maximum of 150 days; amended at 31 Ill. Reg. 2413, effective January 19,

2007; amended at 31 Ill. Reg. 5561, effective March 30, 2007; amended at 31 Ill. Reg. 6930,

effective April 29, 2007; amended at 31 Ill. Reg. 8485, effective May 30, 2007; emergency

amendment at 31 Ill. Reg. 10115, effective June 30, 2007, for a maximum of 150 days; amended

at 31 Ill. Reg. 14749, effective October 22, 2007; emergency amendment at 32 Ill. Reg. 383,

effective January 1, 2008, for a maximum of 150 days; peremptory amendment at 32 Ill. Reg.

6743, effective April 1, 2008; peremptory amendment suspended at 32 Ill. Reg. 8449, effective

May 21, 2008; suspension withdrawn by the Joint Committee on Administrative Rules at 32 Ill.

Reg. 18323, effective November 12, 2008; peremptory amendment repealed by emergency

rulemaking at 32 Ill. Reg. 18422, effective November 12, 2008, for a maximum of 150 days;

emergency expired April 10, 2009; peremptory amendment repealed at 33 Ill. Reg. 6667,

effective April 29, 2009; amended at 32 Ill. Reg. 7727, effective May 5, 2008; emergency


expired November 27, 2008; amended at 32 Ill. Reg. 17133, effective October 15, 2008;


effective June 15, 2009; emergency amendment at 33 Ill. Reg. 10800, effective June 30, 2009,

for a maximum of 150 days; amended at 33 Ill. Reg. 11287, effective July 14, 2009; amended at

33 Ill. Reg. 11938, effective August 17, 2009; amended at 33 Ill. Reg. 12227, effective October

1, 2009; emergency amendment at 33 Ill. Reg. 14324, effective October 1, 2009, for a maximum

of 150 days; emergency expired February 27, 2010; amended at 33 Ill. Reg. 16573, effective

November 16, 2009; amended at 34 Ill. Reg. 516, effective January 1, 2010; amended at 34 Ill.

Reg. 903, effective January 29, 2010; amended at 34 Ill. Reg. 3761, effective March 14, 2010;

amended at 34 Ill. Reg. 5215, effective March 25, 2010; amended at 34 Ill. Reg. 19517, effective

December 6, 2010; amended at 35 Ill. Reg. 394, effective December 27, 2010; amended at 35 Ill.

Reg. 7648, effective May 1, 2011; amended at 35 Ill. Reg. 7962, effective May 1, 2011;


July 25, 2011; amended at 36 Ill. Reg. 2271, effective February 1, 2012; amended at 36 Ill. Reg.

7010, effective April 27, 2012; amended at 36 Ill. Reg. 7545, effective May 7, 2012; amended at

36 Ill. Reg. 9113, effective June 11, 2012; emergency amendment at 36 Ill. Reg. 11329, effective

July 1, 2012 through June 30, 2013; emergency amendment to Section 140.442(e)(4) suspended

at 36 Ill. Reg. 13736, effective August 15, 2012; suspension withdrawn from Section

140.442(e)(4) at 36 Ill. Reg. 14529, September 11, 2012; emergency amendment in response to

Joint Committee on Administrative Rules action on Section 140.442(e)(4) at 36 Ill. Reg. 14820,

effective September 21, 2012 through June 30, 2013; emergency amendment to Section 140.491

suspended at 36 Ill. Reg. 13738, effective August 15, 2012; suspension withdrawn by the Joint

Committee on Administrative Rules from Section 140.491 at 37 Ill. Reg. 890, January 8, 2013;

emergency amendment in response to Joint Committee on Administrative Rules action on

Section 140.491 at 37 Ill. Reg. 1330, effective January 15, 2013 through June 30, 2013; amended


18



at 36 Ill. Reg. 15361, effective October 15, 2012; emergency amendment at 37 Ill. Reg. 253,

effective January 1, 2013 through June 30, 2013; emergency amendment at 37 Ill. Reg. 846,



effective February 1, 2013 through June 30, 2013; amended at 37 Ill. Reg. 3831, effective March

13, 2013; emergency amendment at 37 Ill. Reg. 5058, effective April 1, 2013 through June 30,

2013; emergency amendment at 37 Ill. Reg. 5170, effective April 8, 2013 through June 30, 2013;


May 29, 2013; amended at 37 Ill. Reg. 10282, effective June 27, 2013; amended at 37 Ill. Reg.

12855, effective July 24, 2013; emergency amendment at 37 Ill. Reg. 14196, effective August

20, 2013, for a maximum of 150 days; amended at 37 Ill. Reg. 17584, effective October 23,

2013; amended at 37 Ill. Reg. 18275, effective November 4, 2013; amended at 37 Ill. Reg.

20339, effective December 9, 2013; amended at 38 Ill. Reg. 859, effective December 23, 2013;

emergency amendment at 38 Ill. Reg. 1174, effective January 1, 2014, for a maximum of 150

days; amended at 38 Ill. Reg. 4330, effective January 29, 2014; amended at 38 Ill. Reg. 7156,

effective March 13, 2014; amended at 38 Ill. Reg. 12141, effective May 30, 2014; amended at 38

Ill. Reg. 15081, effective July 2, 2014; emergency amendment at 38 Ill. Reg. 15673, effective

July 7, 2014, for a maximum of 150 days; emergency amendment at 38 Ill. Reg. 18216, effective

August 18, 2014, for a maximum of 150 days; amended at 38 Ill. Reg. 18462, effective August

19, 2014; amended at 38 Ill. Reg. 23623, effective December 2, 2014; amended at 39 Ill. Reg.

4394, effective March 11, 2015; emergency amendment at 39 Ill. Reg. 6903, effective May 1,

2015 through June 30, 2015; emergency amendment at 39 Ill. Reg. 8137, effective May 20,

2015, for a maximum of 150 days; emergency amendment at 39 Ill. Reg. 10427, effective July

10, 2015, for a maximum of 150 days; emergency expired December 6, 2015; amended at 39 Ill.

Reg. 12825, effective September 4, 2015; amended at 39 Ill. Reg. 13380, effective September

25, 2015; amended at 39 Ill. Reg. 14138, effective October 14, 2015; emergency amendment at

40 Ill. Reg. 13677, effective September 16, 2016, for a maximum of 150 days; emergency

expired February 12, 2017; amended at 41 Ill. Reg. 999, effective January 19, 2017; amended at

41 Ill. Reg. 3296, effective March 8, 2017; amended at 41 Ill. Reg. 7526, effective June 15,

2017; amended at 41 Ill. Reg. 10950, effective August 9, 2017; amended at 42 Ill. Reg. 4829,

effective March 1, 2018; amended at 42 Ill. Reg. 12986, effective June 25, 2018; emergency


amendment to emergency rule at 42 Ill. Reg. 16265, effective August 13, 2018, for the remainder

of the 150 days; amended at 42 Ill. Reg. 14383, effective July 23, 2018; amended at 42 Ill. Reg.

______, effective ____________.

SUBPART D: PAYMENT FOR NON-INSTITUTIONAL SERVICES

Section 140.439 Critical Access Care Pharmacy Payment


18



a) To be eligible to receive a Critical Access Care Pharmacy Payment (CAP

Payment), a pharmacy provider must:

1) Attest to meeting all the following criteria for the entire previous fiscal

quarter:

A) Pharmacy is physically located within Illinois;

B) Pharmacy is brick and mortar, meaning the pharmacy location is

open to the public, recipients present at the pharmacy to fill

prescriptions, and the majority of the pharmacy's business is not

mail order based;

C) Pharmacy owners have an ownership or control interest in fewer

than 10 pharmacies; and

D) Pharmacy is located in a county with fewer than 50,000 residents,

or is located in a county with 50,000 or more residents and in an

area within Illinois that is designated as a Medically Underserved

Area by the Health Resources & Services Administration (HRSA),

an agency of the U.S. Department of Health and Human Services.

2) Submit an attestation to the Department within 30 calendar days after the

end of the fiscal quarter in a form and manner prescribed by the

Department.

b) CAP Payments for a fiscal year will be made quarterly and may not exceed the

lesser of $10,000,000 or the total amount specifically appropriated to the

Department for CAP Payments.

c) All CAP Payment calculations shall be based on "CAP-Eligible Claims", which

are defined as pharmacy claims:

1) Billed by an eligible CAP to a Managed Care Organization (MCO)

contracted with the Department for HealthChoice Illinois, or its successor

program, for dates of service during the quarter being calculated;

2) Paid for by the MCO; and


18



3) For which a paid encounter claim record exists in the Department's

Electronic Data Warehouse (EDW) prior to 90 calendar days after the end

of the quarter being calculated.

d) Individual CAP Payments will be made to individual pharmacy providers that

meet the requirements of subsection (a). Individual CAP Payment amounts are

calculated using the total number of the individual pharmacy's CAP-Eligible

Claims for the quarter being calculated multiplied by the lesser of:

1) The individual payment amount; or

2) The Department's dispensing fee for the medical assistance program in

effect on April 1, 2018.

e) The "individual payment amount" is equal to one quarter of the total amount

appropriated for the CAP Program for a fiscal year divided by the total number of

CAP-Eligible Claims for the quarter for all CAP pharmacies.

f) To ensure the proper distribution of CAP Payments under this Section, the

Department may conduct audits in accordance with 89 Ill. Adm. Code 140.30.

g) Definitions. For purposes of this Section, an "ownership or control interest" shall

have the same meaning as a person with an ownership or control interest as

defined in 42 CFR 455.101.



18

DEPARTMENT OF LABOR


1) Heading of the Part: Minimum Wage Law



210.110 Amendment

4) Statutory Authority: Minimum Wage Law [820 ILCS 105]

5) A Complete Description of the Subjects and Issues Involved: Factors to be considered by

the Director of Labor in determining whether an individual is an employee or an

independent contractor under the Minimum Wage Law.


rulemaking: None





11) Statement of Statewide Policy Objective: To clarify the factors to be considered by the

Director of Labor in determining whether an individual is an employee or an independent

contractor under the Minimum Wage Law.


rulemaking: Interested parties may submit comments in writing within 45 days after

publication to:

Andrew Proctor

Chief Legislative Liaison

Illinois Department of Labor

900 S. Spring St.

Springfield IL 62704

217/558-1270


18

DEPARTMENT OF LABOR




affected: All employers currently covered by the Minimum Wage Law will be

affected.



14) Regulatory Agenda on which this rulemaking was summarized: The rulemaking was not

anticipated at the time Agendas were published.



18

DEPARTMENT OF LABOR



CHAPTER I: DEPARTMENT OF LABOR

SUBCHAPTER b: REGULATION OF WORKING CONDITIONS

PART 210

MINIMUM WAGE LAW


Section

210.100 Application of the Act

210.110 Definitions

210.120 The Use of Federal Definitions of Various Terms

210.130 Length of Coverage for an Employer

210.140 Uniforms

210.150 Forbidden Activity Covered by Other Laws

210.160 Communication with the Department and the Director

SUBPART B: ESTABLISHMENT OF MINIMUM

WAGE ALLOWANCE FOR GRATUITIES

Section

210.200 Meals and Lodging

SUBPART C: SEX DISCRIMINATION

Section

210.300 Sex Discrimination

SUBPART D: OVERTIME

Section

210.400 Determining Workweek for Overtime

210.410 Exclusions from the Regular Rate

210.420 Regular Rate of Pay for Determination of Overtime

210.430 Methods of Computing Overtime

210.440 Overtime – General

SUBPART E: EMPLOYMENT OF AN INDIVIDUAL WITH A DISABILITY


18

DEPARTMENT OF LABOR


AT A WAGE LESS THAN THE MINIMUM WAGE RATE

Section

210.500 Application for a License to Employ an Individual with a Disability at a Wage

Less than the Minimum Wage Rate

210.510 Criteria Used to Establish the Necessity of a Sub-Minimum Wage

SUBPART F: EMPLOYMENT OF LEARNERS AT A WAGE

LESS THAN THE MINIMUM WAGE RATE

Section

210.600 General Provisions

210.610 Application to Employ a Learner

210.620 Employing More Than One Learner

210.630 Basic Learner Training Requirements

210.640 Student Learners in Work Study Programs

SUBPART G: RECORDS, POSTING AND NOTICE REQUIREMENTS

Section

210.700 Contents of Records

210.710 Identification of Learner or Individual with a Disability

210.720 Minimum Records of Gratuities

210.730 Records Kept Outside of the Business Premises

210.740 Notice to Employers – Copies of the Act and Rules and Regulations

SUBPART H: INSPECTION PROCEDURE

Section

210.800 Investigations

210.810 Investigation Procedures

210.820 Enforcement Procedures

SUBPART I: INFORMAL INVESTIGATIVE CONFERENCE

ON INSPECTION RESULTS

Section

210.900 Request for Review by Employer Subject to an Inspection

210.910 Petition to Intervene by Employee or Former Employee Covered by an Inspection


18

DEPARTMENT OF LABOR


210.920 Convening an Informal Investigative Conference

210.925 Continuances of Informal Investigative Conference

210.930 Application of the Rules of Evidence – Pleadings and Procedures in an

Investigative Conference

210.940 Attorney and Witnesses in Investigative Conference

210.950 Contumacious Conduct in Investigative Conference

210.960 Telephone Conference

210.970 Request for Review

SUBPART J: ASSESSMENT OF PENALTIES AND PUNITIVE DAMAGES

Section

210.1000 Assessment and Notice of Underpayment, Penalties, and Punitive Damages

210.1010 Employer Conduct Deemed Wilful

210.1020 Uncontested Payment of Underpayments, Penalties, and Punitive Damages

210.1030 Exception to Notice of Underpayments, Penalties, and Punitive Damages

210.1040 Informal Investigative Conference on the Assessment of Underpayments,

Penalties, and Punitive Damages

210.1050 Final Determination of Penalties and Punitive Damages

AUTHORITY: Implementing and authorized by the Minimum Wage Law [820 ILCS 105].

SOURCE: Adopted at 19 Ill. Reg. 6576, effective May 2, 1995; amended at 20 Ill. Reg. 15312,


at 29 Ill. Reg. 4734, effective March 21, 2005; amended at 42 Ill. Reg. ______, effective

____________.


Section 210.110 Definitions

"Act" means Minimum Wage Law [820 ILCS 105].

"Agriculture" means farming in all of its branches and, among other things,

includes the cultivation and tillage of the soil, dairying, the production,

cultivation, growing, and harvesting of any agricultural or horticultural

commodities (including commodities defined as agricultural commodities in

Section 15(g) of the Agricultural Marketing Act, as amended (12 U.S.C. 1141 et

seq.)), the raising of livestock, bees, fur-bearing animals, or poultry, and any


18

DEPARTMENT OF LABOR


practices (including forestry or lumbering operations) performed by a farmer or

on a farm as an incident, to or in conjunction with, such farming operations,

including preparation for market, delivery to storage or to market or to carriers for

transportation to market, but not the operation of processing thesuch commodities

and any activities subsequent to the such operation. Agriculture shall not include

the cultivation, growing, harvesting, or preparation for the storage or marketing of

Christmas trees, as defined in the regulations promulgated under the federal Fair

Labor Standards Act of 1938, at (29 C.F.R. 780.200 through - 780.209

(2018)(1994, no subsequent dates or editions), as amended at 36 FR 12084. The

phrase "incident to or in conjunction with" shall not include construction by a

private contractor of farm buildings on a farm.

"Any individual permitted to work in domestic service in or about a private

home", as used in Section 3(d)(3) of the Act, means a person whose primary duty

is to perform non-commercial labor ordinarily carried out by a family member (in

or about his/her immediate family's private home) without wages, including but

not limited to: housekeeping, cooking, laundry, babysitting, gardening, dog

walking, running errands, chauffeuring of automobiles for family use, or butler,

valet, maid, governess or night watch services. The phrase shall not include a

person whose primary duty is to be a companion for individualsindividual(s) who

are aged or infirm or a worker whose primary duty is to perform health care

services in or about a private home.

"Aquaculture" means the controlled propagation, growth and harvest of aquatic

organisms, including but not limited to fish, shellfish, mollusks, crustaceans,

algae and other aquatic plants, as defined in the Aquaculture Development Act

[20 ILCS 215].

"Compliance Officer" means an authorized representative of the Director who is

charged with the duty to:

investigate and gather data regarding the wages, hours and other

conditions and practices of employment in any industry subject to thethis

Act; and

investigate such facts, conditions, practices or matters as he or she

deemsmay deem necessary or appropriate to determine whether any

person has violated any provision of thethis Act, or thatwhich may aid in

the enforcement of thethis Act.


18

DEPARTMENT OF LABOR


"Department" means the Illinois Department of Labor.

"Director" means the Director of the Department or a duly authorized

representative.

"Employee" means any individual permitted or suffered to work by an employer.

The Director will consider the following factors as significant when

determining whether an individual is an employee or an independent

contractor:

the degree of control the alleged employer exercised over the

individual. In considering this factor, the Director will weigh,

among other facts, whether:

the alleged employer gave the individual discretion to

accept or reject specific jobs or tasks;

the alleged employer allowed the individual to choose the

days and/or hours in which the work was performed;

the alleged employer allowed the individual to perform, or

did not prohibit the individual from performing, work for

other employers or entities during the alleged employment

relationship;

the individual was permitted to hire other individuals to

assist him or her with performing the work that is the

subject of the alleged performance relationship;

the alleged employer did not require the individual to

attend mandatory meetings or other events;

the alleged employer did not supervise the performance of

the services provided by the individual; and


18

DEPARTMENT OF LABOR


the alleged employer did not require the individual to wear

a uniform or other specific attire while performing the

work.

In addition to weighing any other relevant facts, the Director

will weigh the presence of the factors in this definition in favor

of a finding of independent contractor status;

the extent to which the services rendered by the individual are an

integral part of the alleged employer's business. In considering this

factor, the Director may consider, among other facts, whether the

service or output the individual was providing was distinct from

the service or output that the alleged employer's business provided

to its customers. In addition to weighing any other relevant facts,

the Director will weigh the presence of this factor in favor of a

finding of independent contractor status;

the extent of the relative investments of the individual and alleged

employer. In considering this factor, the Director may consider,

among other facts, whether:

the individual used his or her own tools, equipment, or

supplies in performing the work; and

the individual was responsible for costs associated with

maintaining, repairing, or replacing tools, equipment or

supplies used in performing the work;


will weigh the presence of these two factors in favor of a


the degree to which the individual's opportunity for profit and loss

is determined by the alleged employer. In considering this factor,

the Director may consider, among other facts, whether:

the individual had the opportunity to exercise his or her

own managerial skill to ensure that revenues exceeded

expenses;


18

DEPARTMENT OF LABOR


the alleged employer allowed the individual to perform, or

did not prohibit the individual from performing, work for

other employers or entities during the alleged employment

relationship;

the individual was primarily responsible for the cost of

maintaining and repairing equipment or other tools used in

the performance of the work; and

the individual's compensation was based on the service or

other output provided, as opposed to being based on

another measure, such as an hourly wage;


will weigh the presence of these four factors in favor of a


the permanency of the relationship. In considering this factor, the

Director may consider, among other facts, whether the alleged

employer allowed the individual to perform work with other

employers or entities during the alleged employment relationship.

In addition to weighing any other relevant facts, the Director will

weigh the presence of this factor in favor of a finding of

independent contractor status;

the skill required in the claimed independent operation. In

considering this factor, the Director may consider, among other

facts, whether:

specialized training or skill was required to perform the

work; and

the individual's own good will and provision of customer

service to third parties impacted the individual's earnings.


will weigh the presence of these two factors in favor of a

finding of independent contractor status.


18

DEPARTMENT OF LABOR


While no one factor or fact listed in this definition will determine if an

individual is an independent contractor or an employee, the business

reality or totality of circumstances will determine the presence of this

condition.

The common law standards relating to master and servant, the parties'

designations and terminology, and the individual's status for tax purposes,

are not dispositive. Rather, it is the total activity or situation thatwhich is

controlling. In the case of an individual employed by a public agency,

thesuch term "employee" means any individual employed by the State of

Illinois or any of its political subdivisions, except for an individual who is

a bona fide elective or appointed official.

"Governmental body" means the State and its agencies, municipalities and units

of local government, and school districts.

"Hours worked" means all the time an employee is required to be on duty, or on

the employer's premises, or at other prescribed places of work, and any additional

time he or she is required or permitted to work for the employer.

An employee's meal periods and time spent in on-call status away from

his/her employer's premise are compensable hours worked when thatsuch

time is spent predominantly for the benefit of the employer, rather than for

the employee.

An employee's travel, performed for the employer's benefit (for example,

in response to an emergency call back to work outside his/her normal

work hours, or at the employer's special request to perform a particular

and unusual assignment, or as a part of the employee's primary duty, or in

substitution of his/her ordinary duties during normal hours) is

compensable work time as defined in 29 CFR 785.33 through – 785.41

(2018)(1994, no subsequent dates or editions), as amended at 26 FR 190.

"Immediate family", as used in Section 3(d)(1) of the Act, means a person related

to a subject employer either by blood, marriage or adoption and living as part of

the same household. An employer who employs fewer than four employees

exclusive of the employer's parent, spouse or child or other member of his or her

immediate family is not subject to the provisions of the Act or this Part.


18

DEPARTMENT OF LABOR


"Including any radio or television announcer, news editor, or chief engineer, as

defined by or covered by the Federal Fair Labor Standards Act of 1938", as used

in Section 4a(2)(E) of the Act, means any employee employed as an announcer,

news editor, or chief engineer by a radio or television station the major studio of

which is located:

in a city or town of 100,000one hundred thousand population or less,

according to the latest available decennial census figures as compiled by

the Bureau of the Census, except when thatwhere such city or town is part

of a standard metropolitan statistical area, as defined and designated by the

federal Office of Management andBureau of the Budget, thatwhich has a

total population in excess of 100,000; or

in a city or town of 25,000 population or less that, which is part of such an

area but is at least 40 airline miles from the principal city in thesuch area,

as defined in the Fair Labor Standards Act of 1938 (29 USCU.S.C.

213(b)(9)) (2018) and the regulations promulgated thereunder at 29

CFRC.F.R. Part 793 (2018)(1995, no subsequent dates or editions), as

amended at 26 FR 10275.

"Individuals whose capacity is impaired by age or physical or mental deficiency",

as used in Section 5 of the Act and in Subpart E of this Part, means individuals

whose earning or productive capacity are impaired by a physical or mental

disability, including those relating to age or injury, for the work to be performed.

Disabilities thatwhich may affect earning or productive capacity include

blindness, mental illness, mental retardation, cerebral palsy, alcoholism, and drug

addiction. The following, taken by themselves, are not considered disabilities for

the purposes of Section 5 of the Act and Subpart E of this Part: vocational, social,

cultural, educational disabilities; chronic unemployment; receipt of welfare

benefits; nonattendance at school; juvenile delinquency; and correctional parole

or probation. Further, a disability thatwhich may affect earning or productive

capacity for one type of work may not affect one'ssuch capacity for another.

"Learners", as used in Section 6 of the Act and Subpart F of this Part, means

individuals who are participating in a training program for an occupation in which

they are employed. TheSuch a training program must involve either formal

instruction or on-the-job training during a period when the learners are entrusted

with limited responsibility and are under supervision or guidance.


18

DEPARTMENT OF LABOR


"Man-day" means any day during which an employee performs any agricultural

labor for not less than one hour.

"MemberA member of a religious corporation or organization" means an

individual whose functions are spiritual or religious, such as a priest, rabbi,

minister, nun, reverend or other such individuals who perform similar functions as

their primary duties.

"Student learner", as used in Section 6 of the Act and Subpart F of this Part,

means a student who receives course credit for participating in school-approved

work study programs.

"Tipped employee" means an employee engaged in an occupation in which

gratuities are customarily recognized as part of the remuneration of thesuch

employee as referred to in Section 4(c) of the Act; an employee cannot be deemed

a tipped employee unless he or she received $20 or more per month in gratuities.

"Volunteer" means a person who works for an employer under no contract of hire,

expressed or implied, and with no promise of compensation, other than

reimbursement for expenses as part of the conditions for work. A volunteer is not

an employee for the purposes of thethis Act.

"Wages" means compensation due to an employee by reason of his/her

employment, including allowances determined by the Director in accordance with

the provisions of this Act. These allowances will include gratuities and, when

customarily furnished by a group of employers to their employees, meals, lodging

and other facilities. When the reasonable cost of these allowances is not recorded

by the employer, the Director will determine the fair value of thesuch meals,

lodging or other facilities for defined classes of employees based on the average

cost to the employer or groups of employers, or other appropriate measures of fair

value. TheSuch evaluations, when applicable and pertinent, shall be used in lieu

of the actual measure of cost in determining the wage paid to any employee.



18

OFFICE OF THE STATE TREASURER

NOTICE OF PROPOSED REPEALER

1) Heading of the Part: Illinois Public Treasurers' Investment Pool for Public Treasurers in

the State of Illinois



740.5 Repealed

740.10 Repealed

740.20 Repealed

740.30 Repealed

4) Statutory Authority: Implementing and authorized by Sections 7 and 17 of the State

Treasurer Act [15 ILCS 505/7 and 17].

5) A Complete Description of the Subjects and Issues Involved: This outdated Part is being

repealed and replaced with a new proposed one in order to provide further guidance on

the process for state and local governments to utilize this convenient investment pool

option, including the Treasurer's responsibilities, the custodian bank’s responsibilities,

and the enrollment process.


rulemaking: None



9) Does this rulemaking contain incorporations by reference? Yes


11) Statement of Statewide Policy Objective: This rulemaking does not create or expand a

State mandate as defined in Section 3(b) of the State Mandates Act [30 ILCS 805/3(b)].


rulemaking: Comments on this proposed rulemaking may be submitted in writing for a

period of 45 days following publication of this Notice. Comments should be submitted

to:


18



Laura Duque

Assistant General Counsel

Illinois State Treasurer

100 W. Randolph Street, Suite 15-600

Chicago IL 60601

312/814-3573

fax: 217/785-2777

email: [email protected]

The Department will consider fully all written comments on this proposed rulemaking

submitted during the 45-day comment period. Comments submitted by small businesses

should be identified as such.



affected: Units of local and state government that utilize the Treasurer's resources

to safely invest their funds may be affected.


C) Types of Professional skills necessary for compliance: None

14) Regulatory Agenda on which this rulemaking was summarized: July 6, 2018

The full text of the Proposed Repealer begins on the next page:


18



TITLE 74: PUBLIC FINANCE

CHAPTER V: TREASURER

PART 740

ILLINOIS PUBLIC TREASURERS' INVESTMENT POOL FOR PUBLIC

TREASURERS IN THE STATE OF ILLINOIS (REPEALED)

Section

740.5 Definitions

740.10 Eligibility Requirements

740.20 Participation Requirements

740.30 Custodial Account

AUTHORITY: Authorized by and implementing Section 17 of the State Treasurer Act [15 ILCS

505/17].

SOURCE: Repealed at 42 Ill. Reg. ______, effective ____________.


"Administrator and Fiscal Agent" The Treasurer of the State of Illinois or

designee.

"Application Form" The form prepared by the administrator providing all required

pertinent information to be filed by the participant prior to the deposit of any

public funds in IPTIP.

"Custodian" Institution appointed by the Treasurer responsible for accounting and

trust services for IPTIP.

"Custodial Accounts" Accounts established by a public agency to hold and not

invest public funds.

"IPTIP" Illinois Public Treasurers' Investment Pool for Public Treasurers in the

State of Illinois.

"Money Market Fund" A liquid fund, available for Participants to invest public

funds without a minimum deposit period, which offers a host of account services

such as free checking, free wire transfers, direct deposit of Illinois payments and


18



many others.

"Participant" Governmental officials who on behalf of units of local government

or other public agencies file an application and deposit public funds in IPTIP.

"Prime Fund" A fund available for Participants to invest public funds which must

be on deposit for a minimum of 30 days. A notice of withdrawal must be issued a

minimum of 7 days before withdrawal.

"Public Agency" In the State of Illinois, the various counties, townships, cities,

villages, school districts, special road districts, public water supply districts, fire

protection districts, drainage districts, levy districts, sewer districts, housing

authorities, the Illinois Bank Examiners Education Foundation, the Chicago Park

District, and all other political corporations or subdivisions of the State of Illinois,

specifically including any and all agencies of the State and any and all pension

funds duly created and constituted under Illinois law, now or hereafter created,

whether or not herein specifically mentioned.

"Public Funds" Current operating funds, special funds, interest and sinking funds,

and funds of any kind or character belonging to or in the custody of any public

agency.

"Treasurer" The duly elected Treasurer of the State of Illinois.

Section 740.10 Eligibility Requirements

a) Funds so invested must be public funds invested by a public agency.

b) Application form prescribed by the State Treasurer must be completed and

approved.

Section 740.20 Participation Requirements

a) Any funds on deposit with IPTIP's Money Market Fund may be withdrawn if a

withdrawal notification is received by the custodian by 11:00 a.m. on the day on

which the funds are to be withdrawn. If the withdrawal notification is received

after 11:00 a.m., the funds must be available no later than the next business day.

The administrator shall require that funds on deposit with IPTIP's Prime Fund be

deposited for a minimum of 30 days and shall require a seven-day notice of


18



withdrawal of funds from the Prime Fund. The administrator may assess penalties

if the requirements are not met.

b) Interest income will be computed daily, paid monthly and reinvested in the

participant's account or distributed to the participant. Cash or wired funds

received by 11:00 a.m. on any business day begin earning interest on that day.

Checks representing good funds begin earning interest if received before 11:00

a.m. on that day. Checks representing good funds that are received after 11:00

a.m. may not begin earning interest until the next business day after receipt.

c) Administrative fees will be charged to the participants. The administrative fees

will be determined by the State Treasurer and paid from earnings of IPTIP, and

interest earnings in excess of expenses shall be credited or paid to participants in a

manner that equitably reflects the differing amounts of their respective

investments in IPTIP and the differing periods of time for which those amounts

were in the custody of IPTIP when the surplus exceeds the projected

administrative expenses for the following year. In determining the administrative

fee, the Treasurer shall weigh the following factors:

1) the total asset size of the IPTIP Pool;

2) projected cash flows; and

3) anticipated administrative and management expenses. The Treasurer shall

notify all participants of any increase in the administrative fee above 5

basis points. In no event shall the administrative fee exceed 25 basis

points (annualized), calculated on a daily basis. One basis point equals

.01%.

d) Minimum time for participation in the Money Market Fund is one day and the

minimum time for participation in the Prime Fund is 30 days. Each deposit or

withdrawal must be no less than $1.00.

e) Each participant will be permitted to invest in any or all investment accounts.

f) The Treasurer shall have the authority, and the participant will agree in the

application, that the proceeds from any account that has been inactive for a period

of one year and during that period has not equalled or exceeded at any time

$1,000 shall be returned to the participant listed in the application after notice of


18



the pending action has been provided by mail to the participant.

Section 740.30 Custodial Account

a) The custodian shall establish custodial accounts for participants who request the

establishment of those accounts for the safekeeping of securities.

b) The custodian shall determine the fees to be paid for the establishment of

custodial accounts, and such fees shall be listed on the application for the

establishment of a custodial account that must be completed by the public agency

when establishing the account.


18


NOTICE OF PROPOSED RULES

1) Heading of the Part: Illinois Public Treasurers' Investment Pool for Public Treasurers in

the State of Illinois



740.100 New Section

740.110 New Section

740.200 New Section

740.300 New Section

740.310 New Section

740.320 New Section

740.330 New Section

740.340 New Section

740.400 New Section

740.410 New Section

740.420 New Section

740.500 New Section

4) Statutory Authority: Implementing and authorized by Sections 7 and 17 of the State

Treasurer Act [15 ILCS 505/7 and 17].

5) A Complete Description of the Subjects and Issues Involved: This rulemaking updates

the existing Part and provides further guidance on the process for State and local

governments to utilize this convenient investment pool option, including the Treasurer's

responsibilities, the custodian bank's responsibilities, and the enrollment process.


rulemaking: None






18






rulemaking: Comments on this proposed rulemaking may be submitted in writing for a

period of 45 days following publication of this Notice. Comments should be submitted

to:

Laura Duque

Assistant General Counsel


100 W. Randolph Street, Suite 15-600

Chicago IL 60601

312/814-3573

fax: 217/785-2777


The Department will consider fully all written comments on this proposed rulemaking

submitted during the 45-day comment period. Comments submitted by small businesses

should be identified as such.



affected: IPTIP offers units of local and State government a convenient

investment pool option that utilizes the Treasurer's resources to safely invest their

funds. The Program allows participants to enjoy economies of scale and save on

costs for State and local governmental units.

B) Reporting, bookkeeping or other procedures required for compliance: Units of

local and State government who wish to participate in IPTIP are required to

submit an enrollment form and sign an Illinois Funds agreement.




18



The full text of the Proposed Rules begins on the next page:


18





PART 740

ILLINOIS PUBLIC TREASURERS' INVESTMENT POOL FOR PUBLIC

TREASURERS IN THE STATE OF ILLINOIS

SUBPART A: INTRODUCTION AND PURPOSE

Section

740.100 Establishment

740.110 Purpose

SUBPART B: DEFINITIONS

Section

740.200 Definitions

SUBPART C: ADMINISTRATION

Section

740.300 Treasurer Responsibilities

740.310 Investment Policy

740.320 Custodian Bank Responsibilities

740.330 Fees

740.340 Allocation of Investment Earnings or Losses

SUBPART D: PARTICIPATION AND ENROLLMENT IN IPTIP

Section

740.400 Participation

740.410 Enrollment

740.420 Termination

SUBPART E: CUSTODIAL ACCOUNT

Section

740.500 Custodial Account


18



AUTHORITY: Authorized by and implementing Sections 7 and 17 of the State Treasurer Act

[15 ILCS 505/7 and 17].

SOURCE: Illinois Public Treasurers' Investment Pool for Public Treasurers in the State of

Illinois, effective December 29, 1977; codified at 5 Ill. Reg. 11090; amended at 17 Ill. Reg.

6663, effective April 19, 1993; amended at 25 Ill. Reg. 14527, effective October 23, 2001;

emergency amendment at 35 Ill. Reg. 8893, effective May 26, 2011, for a maximum of 150 days;

emergency amendment suspended at 35 Ill. Reg. 12832, effective July 14, 2011; suspension

withdrawn at 35 Ill. Reg. 14862, effective August 17, 2011; amended at 35 Ill. Reg. 14659,

effective August 17, 2011; former Part repealed at 42 Ill. Reg. ______ and new Part adopted at

42 Ill. Reg. ______, effective ____________.

SUBPART A: INTRODUCTION AND PURPOSE

Section 740.100 Establishment

This Part governs the Illinois Public Treasurers' Investment Pool for Public Treasurers in the

State of Illinois, permitted by Sections 7 and 17 of the Act.

Section 740.110 Purpose

a) The Act allows the Treasurer to establish and administer a Public Treasurers'

Investment Pool called Illinois Funds to supplement and enhance the investment

opportunities otherwise available to other custodians of public funds for public

agencies in this State.

b) In administering the Illinois Public Treasurers' Investment Pool, the Act permits

the Treasurer to receive public funds paid into the pool by any other custodian of

such funds and to serve as the fiscal agent of that custodian of public funds for the

purpose of holding and investing those funds. [15 ILCS 505/17]

c) Pursuant to this authority, the Treasurer has established IPTIP, which provides

units of State and local government a convenient investment pool option that

utilizes the Treasurer's resources to safely invest their funds while allowing

participants to enjoy economies of scale. IPTIP allows participants to safely

invest their monies, while providing a competitive rate of return and daily access

to invested funds. IPTIP assists participants in complying with the Deposit of

State Moneys Act [15 ILCS 520] or the Public Funds Investment Act [30 ILCS

235], as applicable.


18





"Act" means the State Treasurer Act [15 ILCS 505].

"Custodian Bank" means the financial institution, designated by the Treasurer,

responsible for fund accounting, recordkeeping, transfer agent, custodial and trust

services for IPTIP.

"Custodian Bank Agreement" means the participant agreement that sets forth the

Custodian Bank's terms and conditions.

"Custodial Accounts" means the accounts established for a public agency to hold

and invest public funds.

"Enrollment Form" means the form provided by the Treasurer to collect the

required pertinent participant information prior to the deposit of any public funds

in IPTIP.

"Fiscal Agent" means the Treasurer of the State of Illinois or his or her designees.

"Illinois Funds Agreement" means the participant agreement that sets forth the

Treasurer's terms and conditions for participation in IPTIP.

"IPTIP" or "Illinois Funds" means the Illinois Public Treasurers' Investment Pool

provided to public agencies to supplement and enhance investment opportunities

otherwise available to managers of public funds or public agencies in the State.

"Participant" means a public agency that has been accepted by the Treasurer and

enrolled into IPTIP.

"Pool" means combined public monies invested through IPTIP.

"Principal" means an individual who is authorized by the public agency or statute

to execute contractual agreements on behalf of the public agency.


18



"Public Agency" has the same meaning as in Section 17 of the Act. Questions

regarding whether an entity qualifies as a component unit of a public agency shall

be resolved by reference to Governmental Accounting Standards Board (GASB)

pronouncements, including but not limited to GASB Statement 14: The Financial

Reporting Entity.

"Public Funds" means current operating funds, special funds, interest and sinking

funds, and funds of any kind or character belonging to or in the custody of any

public agency. [30 ILCS 235/1]

"Signer" means the individual authorized by the principal, public agency, or

statute to open, close or make changes to a custodial account.

"Trader" means the individuals authorized by the principal or signer to do any or

all of the following: receive balance and transaction information on the custodial

account, make changes to the custodial account, and direct investments.

"Treasurer" means the duly elected Treasurer of the State of Illinois or his or her

designees.

SUBPART C: ADMINISTRATION

Section 740.300 Treasurer Responsibilities

The Treasurer is responsible for overseeing the management of IPTIP and will perform the

following:

a) review the eligibility of public agencies prior to enrollment;

b) establish enrollment, quality control and maintenance requirements and processes;

c) establish terms and conditions;

d) establish customer service processes;

e) determine the administrative fees paid from earnings of IPTIP in accordance with

Section 330;


18



f) notify all participants of any increase in the administrative fee above 5 basis

points, in accordance with Section 330;

g) provide investment management services through the use of authorized securities

to achieve investment returns for the participants;

h) procure any necessary custodial, investment, or banking services administered

through IPTIP;

i) retain documents in compliance with State statutes, including the State Records

Act [5 ILCS 160], the State Records Commission administrative rules (44 Ill.

Adm. Code 4400) and the Treasurer's Application for Authority to Dispose of

State Records (Application 98-02M), approved by the State Records Commission;

j) provide administrative accounting; and

k) other tasks necessary to administer IPTIP.

Section 740.310 Investment Policy

The Treasurer shall develop, publish, and implement an investment policy covering the

management of funds in the Public Treasurers' Investment Pool. The policy shall be published

each year as part of the audit of IPTIP by the Auditor General, which shall be distributed to all

participants. The Treasurer shall notify all IPTIP participants in writing, and the Treasurer shall

publish in at least one newspaper of general circulation in both Springfield and Chicago, any

changes to a previously published investment policy at least 30 calendar days before

implementing the policy. Any such investment policy adopted by the Treasurer shall be reviewed,

and updated if necessary, within 90 days following the installation of a new Treasurer. [15 ILCS

505/17]

a) The investment policy is a written statement describing the investment objectives,

permissible investments, pool oversight and due diligence, and risk management

practices and should be designed to:

1) describe the Treasurer's investment objectives;

2) state permissible investments;


18



3) describe the process of evaluating pool performance compared to

applicable performance benchmarks and standards;

4) ensure that risks taken are prudent, properly managed and adequately

compensated compared to applicable performance benchmarks and

standards; and

5) ensure that an effective risk management process is in place to monitor the

risk levels of the pool.

b) Permissible Investments – The pool's permissible investments may include, but

are not limited to:

1) short-term investments (i.e., money market funds rated AAA); and

2) fixed income investments (i.e., government agency bonds, corporate

bonds, and supranational bonds).

c) No participant may, directly or indirectly, cause the investment of any monies to

an account to be made to any investment option other than one currently offered

to all the participants.

Section 740.320 Custodian Bank Responsibilities

The custodian bank is responsible for the day-to-day management of IPTIP and will perform the

following:

a) Enroll public agencies that meet the participation requirements set forth in Section

740.400;

b) Provide participant accounting services;

c) Provide custodial services to participants;

d) Provide customer service;

e) Provide transfer agent and recordkeeping services;

f) Provide training;


18



g) Retain copies of participant documents; and

h) Provide sufficient reporting capabilities to the Treasurer and to participants.

Section 740.330 Fees

Administrative fees will be charged to the participants. Administrative fees cover expenses

related to the pool, such as fund accounting, transfer agent services, customer service, marketing,

and investment management. Administrative fees shall be publicly available and disclosed to

public agencies prior to enrollment.

a) The administrative fees will be determined by the Treasurer as set forth in this

Section and paid from earnings of IPTIP. In determining the administrative fees,

the Treasurer shall weigh the following factors:

1) the IPTIP current and projected asset size; and

2) the Treasurer's anticipated administrative and management expenses.

b) The Treasurer shall notify all participants of any increase in the total

administrative fees above 5 basis points. In no event shall the total administrative

fees exceed 25 basis points (annualized), calculated on a daily basis. One basis

point equals .01%.

c) The Treasurer may reduce administrative fees to ensure a certain level of

participant earnings.

Section 740.340 Allocation of Investment Earnings or Losses

Interest income will be computed daily, credited or paid monthly, and reinvested in the

participant's account or distributed to the participant in a manner that equitably reflects the

differing amounts of their respective investments in the pool and the differing periods of time for

which those amounts were in the custody of the pool.

SUBPART D: PARTICIPATION AND ENROLLMENT IN IPTIP

Section 740.400 Participation


18



In order to participate in IPTIP, a public agency shall submit an enrollment form and agree to the

terms and conditions established by the Treasurer and its custodian bank.

Section 740.410 Enrollment

A public agency may enroll in IPTIP on documents prescribed by the Treasurer and the

custodian bank. Electronic signatures are permitted when electronically submitting any

documents, Illinois Funds agreements, or custodian bank agreements.

a) The enrollment forms shall require public agencies to provide the following

information:

1) name of public agency;

2) name and title of person who will be the principal;

3) names and titles of authorized traders;

4) names and titles of authorized signers;

5) tax identification number;

6) mailing and physical street address;

7) email address;

8) phone number;

9) bank instructions; and

10) any additional information needed to assist in clarifying when the

enrollment form is unclear or insufficient.

b) If applicable, public agencies shall sign a custodian bank agreement in which they

agree to the terms and conditions of the custodian bank.

c) Public agencies shall sign an Illinois Funds agreement in which they agree to the

terms and conditions of the Treasurer.


18



Section 744.420 Termination

The Treasurer reserves the right to freeze and/or terminate the participant's IPTIP services for

failure to comply with the terms and conditions of the custodian bank as set forth in the

custodian bank agreement or the Treasurer as set forth in the Illinois Funds agreement (see

Section 744.410(b) and (c)). Prior to freezing or terminating any services, the Treasurer will

provide a minimum of 30 days' notice of the intent to freeze or terminate. The notice will

identify the grounds for freezing or terminating. If satisfactory remedial action is not taken by

the participant within the 30 day period, the Treasurer will freeze or terminate the services,

depending upon the type of notice given. Notwithstanding anything to the contrary in this

Section, the Treasurer may freeze the participant's custodial accounts without notice if there is

illegal, or suspected illegal, use of the custodial accounts; if there is use of the custodial accounts

that is unauthorized by the participant, or suspected to be so unauthorized; if there is a request

from law enforcement; or for any reason that the custodial accounts cannot be provided through

no fault of the Treasurer's (e.g., problems with the custodian bank). Failure by the Treasurer to

freeze or terminate services in one instance does not waive the Treasurer's right to freeze or

terminate services in subsequent instances.

SUBPART E: CUSTODIAL ACCOUNT

Section 740.500 Custodial Account

Funding from investment activity will be distributed to the participant's custodial account at the

custodian bank. The custodian bank must, at minimum, be authorized to do business in Illinois as

an Illinois bank or a national bank with a presence in Illinois. In addition, the custodian bank

must be a member of the Automated Clearing House network, participate in the Federal

Reserve's wire network, and qualify as a depository for public funds pursuant to the Deposit of

State Moneys Act [15 ILCS 520].


18

OFFICE OF THE TREASURER


1) Heading of the Part: Uniform Disposition of Unclaimed Property Act



760.10 Repealed

760.15 Repealed

760.20 Repealed

760.21 Repealed

760.22 Repealed

760.24 Repealed

760.25 Repealed

760.30 Repealed

760.35 Repealed

760.40 Repealed

760.50 Repealed

760.60 Repealed

760.70 Repealed

760.85 Repealed

760.89 Repealed

760.90 Repealed

760.92 Repealed

760.94 Repealed

760.95 Repealed

760.100 Repealed

760.110 Repealed

760.115 Repealed

4) Statutory Authority: 765 ILCS 1025/26

5) A Complete Description of the Subjects and Issues Involved: This Part is being replaced

with a new Part.

6) Will this repealer replace any emergency rule currently in effect? No

7) Does this repealer contain an automatic repeal date? No



18



9) Are there any other rulemakings pending on this Part? Yes, a new Part is being proposed.

10) Statement of Statewide Policy Objective: This unit does not affect local governments.

11) Time, Place and Manner in which interested persons may comment on this rulemaking:

Interested persons may comment to:

Roxanne Hollenstrine

Office of the State Treasurer

219 State House


217/782-2211



affected: None




included on either of the 2 most recent regulatory agendas because the need for it was not

anticipated.

The full text of the Proposed Repealer begins on the next page:


18





PART 760

UNIFORM DISPOSITION OF UNCLAIMED PROPERTY ACT (REPEALED)

Section

760.10 Definitions

760.15 Presumption of Abandonment

760.20 Negative Reports

760.21 Reporting

760.22 Format/Form of Reports

760.24 Incomplete/Inaccurate Report or Remittance

760.25 Filing Extensions

760.30 Safe Deposit Boxes

760.35 Due Diligence

760.40 Cost of Mailing

760.50 Nominee and Street Name Property

760.60 Lawful Charges

760.70 Discontinuance of Interest or Dividends

760.80 Statute of Limitations (Repealed)

760.85 Situs

760.89 Fees

760.90 Examination of Property Holders

760.92 Remittance of Securities and Commodities

760.94 Receipt and Sale of Securities and Commodities

760.95 Examination Gap

760.100 Claims

760.110 Hearings on Claims

760.115 Non-Claim Hearings

AUTHORITY: Implementing and authorized by Section 26 of the Uniform Disposition of

Unclaimed Property Act [765 ILCS 1025/26].

SOURCE: Filed November 20, 1977; emergency amendment at 3 Ill. Reg. 39, p. 225, effective

September 14, 1979, for a maximum of 150 days; amended at 3 Ill. Reg. 48, p. 153, effective

November 20, 1979; rules repealed, new rules adopted and codified at 8 Ill. Reg. 1464, effective

January 18, 1984; amended at 15 Ill. Reg. 8555, effective May 24, 1991; amended at 17 Ill. Reg.

123, effective December 21, 1992; emergency amendment at 17 Ill. Reg. 6321, effective April 6,


18



1993; amended at 17 Ill. Reg. 9893, effective June 21, 1993; amended at 18 Ill. Reg. 18001,

effective December 12, 1994; amended at 20 Ill. Reg. 8325, effective June 8, 1996; recodified

from the Department of Financial Institutions (38 Ill. Adm. Code 180) to the State Treasurer,

pursuant to PA 91-16, at 26 Ill. Reg. 8164; emergency amendment at 28 Ill. Reg. 13919,

effective October 5, 2004, for a maximum of 150 days; emergency expired March 3, 2005;


April 18, 2013; amended at 40 Ill. Reg. 16804, effective December 19, 2016; repealed at 42 Ill.

Reg. ______, effective ____________.


"Act" – means the Uniform Disposition of Unclaimed Property Act [765 ILCS

1025] and the rules in this Part.

"Active Express Trust" – excludes any trust:

the purpose for which it was created no longer exists and no court having

jurisdiction shall have entered an order in connection therewith; or

of which no beneficiary can be located to whom income or increment from

such trust is payable or distributable. Intangible personal property held for

the benefit of a person, firm or entity not designated as beneficiary

pursuant to the terms of said trust shall not be deemed to be held in a

fiduciary capacity by said trustee.

"Activity" – occurs when the owner takes any action described in Section 2 of the

Act which prevents a presumption of abandonment.

Activity in any account on a consolidated statement shall constitute activity for

any other account on that statement.

Non return of mail shall constitute activity only if the holder sends a notice to the

owner, return receipt requested, and has on file the signed return receipt.

"Additional like period" as used in Section 2(e) of the Act, except where the

original deposit instrument agreed to by the parties contains a fixed final maturity

date, means, where the right to extend is exercised by the organization, one

extension or rollover with the date of the expiration of the extension or rollover

period becoming the final maturity date for the deposit.


18



"A Matured Time Deposit", except as provided for in Section 2(e) of the Act, is

any time deposit, certificate of deposit, money market certificate or like

instrument on which the initial term has expired.

"Commodities" – means a basic item or staple product underlying commodity

future contracts, or traded as physical units of delivery for immediate delivery in

the cash or spot market.

"Delivery Date" as used in Section 760.89(a)(2) means the date when a report

would be deemed received and filed by the Department.

"Deposit" as used in Section 2 of the Act includes all accounts of an individual

owner which are reported by the banking or financial institution to the owner on a

consolidated statement.

"Last Activity Date" means, for other than property reported in the aggregate

under Section 11(b)(1) of the Act, the last verifiable date of owner contact with

the property being remitted to the State Treasurer. In the alternative, where the

holder's records are insufficient, it is the earliest date in the holder's records for

which property can be identified minus 12 months.

"Net Worth" means the difference between total assets and total liabilities.

"Property" – means any property, tangible or intangible, reportable to the State

Treasurer pursuant to the Act. Property which would be reportable prior to

deduction of service charges is deemed reportable under this definition.

"Safe Deposit Box" – includes any safe, vault, safekeeping repository, agency, or

collateral deposit box.

"Security" – means any note, stock, treasury stock, bond, debenture, evidence of

indebtedness, certificate of interest or participation in any profit-sharing

agreement, collateral-trust certificate, preorganization certificate or subscription,

transferable share, investment contract, investment fund share, face-amount

certificate, voting-trust certificate, certificate of deposit for a security, fractional

undivided interest in oil, gas or other mineral lease, right or royalty, any put, call,

straddle, option, or privilege entered into on a national securities exchange

relating to foreign currency, or, in general, any interest or instrument commonly


18



known as a "security", or any certificate of interest or participation in, temporary

or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe

to or purchase, any of the foregoing.

"Service Charges" – constitute any charge deducted by a holder from property

subject to the Act, which is imposed solely by virtue of the inactivity of that

property; this includes service charges, handling charges, and administrative

costs.

Section 760.15 Presumption of Abandonment

Actions which do not prevent the presumption of abandonment include, but are not limited to,

automated clearing house transfers, automatic postings to accounts, computer system conversion

dates, non-return of mail, those which are non-owner initiated and those not requiring a direct

owner response.

Section 760.20 Negative Reports

Holders, except as provided in Section 760.21, having no property to report shall so report to the

State Treasurer on such forms provided by the Director at the reporting time designated in

Section 11(d) of the Act.

Section 760.21 Reporting

a) Reporting Requirements

1) Business associations who have no reportable property and annual sales of

less than $500,000, and whose securities are not publicly traded, whose

net worth is less than $1,000,000, and who employ 49 or fewer persons,

are not required to file annual reports under Section 11 of the Act.

2) Business associations who have no reportable property and annual sales of

less than $500,000, and whose securities are not publicly traded, whose

net worth is less than $1,000,000, and who employ 50 or more people but

fewer than 100 persons, are required to file reports in even-numbered

years on the reporting date specified in Section 11 of the Act.

3) Notwithstanding the provisions of subsections (a)(1) and (2), a business

association must file a report with the State Treasurer for all reportable


18



property.

b) Information to be Reported

In applying Section 11(d) of the Act, the verified information to be included on

reports to the Treasurer shall include:

1) the name, Social Security or federal tax identification number, if known,

and last known address, including zip code, of each person appearing from

the records of the holder to be the owner of any property specified in

Section 11(b)(1) of the Act;

2) in case of unclaimed funds of life insurance corporations due beneficiaries

from a life or endowment insurance policy or annuity held by life

insurance corporations, the full name of the insured, the annuitant and any

beneficiary, if known, and the last known address according to the life

insurance corporation's records; and

3) the date when the property becomes "reportable property" as that term is

defined in Section 1(1) of the Act [765 ILCS 1025/1(l)].

c) Within counties having a total population under 100,000, the County and

Municipal Governments and Special Taxing Districts are only required to file a

report with the Treasurer for reportable property.

d) In applying Section 10.5(d) of the Act, fraudulent reporting includes, but is not

limited to, a determination by a court or administrative hearing that a holder has

fraudulently reported or fraudulently failed to remit presumptively abandoned

property.

e) In applying Section 10.5(d) of the Act, failure to report includes, but is not limited

to, the issuance by the Treasurer of a Notice of Delinquency on a report filed by a

holder.

f) A report required to be filed under the Act is deemed received and filed when it

has been delivered complete, accurate and in correct form to the Treasurer's

Unclaimed Property Division office at 1 West Old Capitol Plaza, Suite 400,

Springfield IL 62701-1390, and includes any required remittance.

g) A report will be deemed not to be timely received and filed under the Act if it:


18



1) is submitted after the required filing date;

2) is submitted in other than a form authorized in Section 760.22;

3) is unsigned or undated;

4) is incomplete, as defined in Section 760.24;

5) is inaccurate, as defined in Section 760.24;

6) is without the required remittance; or

7) does not meet any other requirement under the Act.

h) Reportable property that is not timely reported and remitted by a holder on the

first reporting date specified in Section 11 of the Act after the property's initial

date of presumptive abandonment must be reported upon discovery of the

omission. The holder in the report must identify this property as being reported

late and the reason.

i) Any remittance submitted under the Act must be made in United States Currency.

Any submission made in foreign currency, money, checks or any other medium of

a foreign country is unacceptable.

Section 760.22 Format/Form of Reports

Commencing January 1, 1993 a holder must file the report required under Section 111(b) of the

Act on a:

a) paper form provided by or approved by the Treasurer;

b) computer disk formated according to the Treasurer's instructions;

c) magnetic tape formated according to the Treasurer's instructions; or

d) compact disk formated according to the Treasurer's instructions.

Section 760.24 Incomplete/Inaccurate Report or Remittance


18



a) Any report or remittance submitted to the State Treasurer which is:

1) incomplete (i.e., reports which do not include vital and pertinent

information, appropriate detail, correct format or remittances made out to

an improper payee, or account, or security designee); or

2) inaccurate (i.e., reports that are out of balance and remittances that are less

than the property reported or do not include remittable interest, dividends,

stock splits or underlying securities)

shall be returned to the holder for correction.

b) The holder shall submit a corrected report or remittance to the Treasurer within 20

calendar days after the Treasurer's return of the original report or remittance to the

holder.

c) Failure of the holder to submit a corrected, accurate and complete report or

remittance within the time set forth in subsection (b) above shall be sufficient

reason to believe and grounds for examination of the holder under section 123 of

the Act.

Section 760.25 Filing Extensions

a) A request from a holder for extension of time to report or remit, including a

request for an extension of time to report or remit a part of a report or remittance,

must be received by the State Treasurer a minimum of 15 business days prior to

the date specified in Section 11 of the Act for the filing of a report.

b) A request by a holder for an extension of time to report or remit must include a

reasonable cause for delaying the report or remittance. Reasonable cause

includes, but is not limited to, natural disaster, criminal activity related to the

holder's books and records, recent changes in the form of ownership of the holder

through merger, acquisition or reorganization, and, for a holder having three or

fewer employees, a recent change in management. Reasonable cause does not

include a failure of a holder to perform a requirement such as due diligence

pursuant to Section 11(e) of the Act.

c) The Treasurer will, where possible, respond to each request for extension within


18



10 business days after receipt.

Section 760.30 Safe Deposit Boxes

a) Pursuant to Section 2(d) of the Act, safe deposit boxes which have been

unclaimed for 5 years or more shall be opened. Unless opened by the owner, such

boxes shall be opened and inventoried in the presence of at least two employees

of the holder who shall verify the accuracy of said inventory. The property shall

then be sealed for safekeeping until delivered to the owner or the State Treasurer.

b) The property shall be offered by the Treasurer for public sale pursuant to Section

17 of the Act or by the holder pursuant to the Sale of Unclaimed Property Act

[770 ILCS 90]. In the case of sale by holder, the proceeds shall be delivered to

the Treasurer.

c) The holder may be reimbursed or may deduct actual mailing, drilling and opening

costs as prescribed by Section 2(d) of the Act. No other charges may be deducted

unless otherwise authorized by law or expressly provided for by lawful contract

with the owner.

Section 760.35 Due Diligence

a) Letters mailed to owners as required by Section 11(e) of the Act shall include as a

minimum:

1) the name, address, position and telephone number of the person to contact

of the holder;

2) the steps required by the owner to have the holder remit the property to the

owner;

3) the steps required by the owner to have the holder continue to maintain the

property for the owner;

4) a statement that, if the owner's property is remitted to the State, the owner

or heirs may file a claim for the property with the State;

5) a statement that the State is a perpetual custodian for presumptively

abandoned property remitted to the State;


18



6) a date, not less than 15 business days prior to the date the holder will remit

the property to the State Treasurer, by which the owner must contact the

holder.

b) A holder is not required to make a due diligence mailing to owners whose

property, prior to deducting allowable service charges, has an aggregate value of

less than $10, and is not included in the categories of securities, commodities, safe

deposit boxes, and tangible property.

Section 760.40 Cost of Mailing

Holders reporting money may deduct from total amounts reported, the actual costs of mailing as

required by Section 11(e) of the Act. This shall consist of the cost of envelopes, postage and

stationery. No other cost of mailing may be deducted. Prior to reimbursement, holder may be

required to document or certify to the costs incurred.

Section 760.50 Nominee and Street Name Property

No amounts received by a banking or financial organization, or business association as the

nominee, custodian, agent, or in the "street name" of the owner of any stocks, bonds or other

securities which are not allocable, distributable, or payable to an express trust of which it is the

trustee, shall:

a) for purposes of Section 5 of the Act be deemed to be held as agent or as trustee of

an express trust; and

b) for purposes of Section 7(a) of the Act be deemed to be in an active express trust.

Section 760.60 Lawful Charges

a) There must be a valid, enforceable, written contract between the holder and the

customer to permit the lawful withholding of charges described in Sections 2, 2a,

4 and 9 of the Act. No holder may seek to implement the terms of any contract

against the State if they do not against the customers who claim their assets prior

to remittance.

b) The holder shall provide the following information as part of any remittance

report filed pursuant to Section 13 of the Act from which service charges have


18



been deducted:

1) the citation of the Act or a copy of the form of contract authorizing such

service charges;

2) the value or amount of each item or property, prior to deduction of service

charges as well as the total amount of service charges deducted from each

item;

3) such other information or documentation as the State Treasurer may

reasonably require to substantiate the deduction of service charges. This

may include correspondence, passbook provisions, signature card,

regulations, by-laws, or any other documentation concerning any

agreement between the holder and the customer.

c) Intangible personal property, including but not limited to certificates, coupons,

credit memos and tokens which are issued for the redemption of unspecified

merchandise, unless specifically authorized by the Act, are not subject to service

charges.

Section 760.70 Discontinuance of Interest or Dividends

The holder shall cite, in its remittance report, the legal authority for discontinuing interest or

dividend payments on property during the period of its inactivity. If such payments would not

have been discontinued had the property been claimed by the owner prior to being reported or

remitted to the State Treasurer, such discontinuance is prohibited.

Section 760.80 Statute of Limitations (Repealed)

Section 760.85 Situs

Where a subsidiary or affiliate of a banking organization, business association or other entity

incorporated, organized or created under the laws of another state is incorporated, organized or

created under the laws of this State or by federal statute, unclaimed property held by such

subsidiary or affiliate is deemed to be held by a holder incorporated, organized or created under

the laws of this State.

Section 760.89 Fees


18



a) The fee for the past due property or the failure to remit property, other than the

contents of safe deposit boxes, shall be calculated using the formula: rate times

delinquency period times value equals the fee.

1) The rate is defined in Section 25.5(c) of the Act.

2) The delinquency period is the period of time elapsed between the

reporting due date under Section 11(d) of the Act and the delivery date.

3) The value is cash value. For securities and commodities the value is the

cash value on the earlier of the date of delivery of the security or

commodity to the State Treasurer or the date of receipt of the actual

deposit confirmation by the Treasurer.

b) In charging a fee for a failure to timely perform due diligence in accordance with

the provisions of Section 11(e) of the Act, the following conditions must be met:

1) due diligence was required to be conducted.

2) within 24 months after the filing the report, at least 35% of the claims are

paid or authorized for payment to owners whose addresses were as

reported to the Treasurer by the holder or whose mail forwarding from the

reported address had not expired as of the date the report was filed.

c) The Treasurer may, for reasonable cause, waive all or a portion of any

administrative charges, fees and interest charges. Reasonable cause shall include,

but not be limited to, inadvertent error, pending legal proceedings involving

otherwise reportable property, and unresolved bankruptcy.

Section 760.90 Examination of Property Holders

a) The State Treasurer shall notify the holder, in writing, ten days prior to an

examination conducted pursuant to Section 23 of the Act. The Treasurer may

waive the ten-day notice prior to performing an unclaimed property examination

if, as a result of past experience or an examiner consultation, the Treasurer

determines that the existence of the records may be placed in jeopardy by use of

the notice provision.

b) If unreported property is discovered, the Treasurer shall order the holder to report


18



and remit the property pursuant to the Act and the Rules.

c) Pursuant to Section 23 of the Act, the Treasurer shall have reason to believe that a

holder has failed to report property in accordance with the Act and may examine

the records of the holder, anytime one of the following conditions exist:

1) A holder has submitted reports to the Treasurer in two successive calendar

years in which the holder's reports state it has no unclaimed property.

2) A holder has not submitted a report to the Treasurer for two successive

calendar years.

3) A personal interview by State Treasurer staff with the appropriate

representative of the holder reveals any of the following:

A) The holder adjusts its asset statements by writing-off property such

as check or credit balances that could be deemed unclaimed

property under the Act; or

B) The holder does not follow generally-accepted accounting

principles (Financial Accounting and Reporting Standards of the

Financial Accounting Standards Board, 407 Merritt 7, P.O. Box

5116, Norwalk, CT 06856-5116 (1994), no subsequent dates or

editions), or the Act with regard to unidentified remittances or the

establishment of unclaimed property liability accounts; or

C) The holder does not follow generally-accepted accounting

principles (Financial Accounting and Reporting Standards of the

Financial Accounting Standards Board, 407 Merritt 7, P.O. Box

5116, Norwalk, CT 06856-5116 (1994), no subsequent dates or

editions), or the Act with regard to the disposition of unidentified

credits; or

D) The holder does not retain records for five (5) years beyond the

period of abandonment to determine the disposition of property

which could be deemed abandoned under the Act; or

E) The holder's records preclude the Treasurer from determining the

disposition of property which could be deemed abandoned under


18



the Act.

4) The Treasurer is notified by another governmental agency in writing or

verbally with written confirmation that a holder is not in compliance with

the Act.

5) The total unclaimed property remitted by a holder is below the average

remittance for other holders in the same industry and that have assets of

similar size to the holder.

6) A holder does not report all types of unclaimed assets they may be holding

as indicated by but not limited to:

A) A previous examination of the holder; or

B) A comparison with the asset types reported by other holders in the

same industry and that have assets of similar size to the holder.

7) A holder is discovered as a subsidiary or affiliate of another holder which

has been or is being examined.

8) A holder is discovered as a principal or holding company of another

holder which has been or is being examined.

9) An unclaimed property examination of the records of the holder has not

been performed for 5 or more calendar years.

10) Changes in a holder's business practices, including, but not limited to,

changes in financial status, technological advances, corporate structure,

change in ownership, etc.

11) The Treasurer has issued a written notice of deficiency to a holder.

12) The Treasurer issued a fee assessment to a holder.

d) Notwithstanding the enumerated conditions listed in subsections (c)(1)-(c)(12)

above, the Treasurer may conduct an examination of a holder based on facts

within the knowledge of or imparted to the Treasurer by others.


18



Section 760.92 Remittance of Securities and Commodities

a) Unless otherwise provided, all securities and commodities when remitted to the

State Treasurer shall:

1) be registered as "Treasurer of the State of Illinois"; or

2) be deposited into a new or existing securities or commodities account in

the name of "Treasurer of the State of Illinois"; and

3) include all dividends, interest, warrants, or other rights, or associated cash

in a check payable to "Treasurer of the State of Illinois".

b) The Treasurer may, when remittance cannot be made as provided in subsection

(a) above, provide written instructions to the holder for remittance of the

particular security or commodity.

Section 760.94 Receipt and Sale of Securities and Commodities

a) Securities and commodities received by the State Treasurer as unclaimed property

shall be sold no sooner than one year or later than two years from the date of their

respective publications pursuant to Section 12 of the Act, subject to the following:

1) The Treasurer or the Treasurer's authorized representative determines it

would be in the best interests of the owner (such as: responding to a

tender offer, bankruptcy filing, liquidation, adverse or favorable market

conditions) for the sale to occur prior to the expiration of the one year

period following the publication of the securities or commodities.

2) Securities and commodities eligible for sale will not be sold when a claim

has been filed with the Treasurer by a potential owner, heir or agent.

However, upon approval of a claim, the owner, heir or agent may request

the Treasurer to dispose of the securities or, commodities by sale and

remit the net proceeds to the owner, heir or agent, or, upon disapproval of

the claim, the Treasurer shall dispose of the securities or commodities by

sale.

b) Securities and commodities that become reportable abandoned property under the

Act, when remitted to the Treasurer, must include all interest, dividends, stock


18



splits, if any, warrants or other rights even though the interest, dividends, stock

splits, warrants or other rights standing alone would not be reportable abandoned

property.

c) Interest, dividends, stock splits, warrants or other rights that become reportable

abandoned property under the Act must, when remitted to the Treasurer, include

the underlying security or commodity giving rise to the interest, dividends, splits,

warrants or other rights.

Section 760.95 Examination Gap

a) For examinations of business associations commenced, completed and with the

unclaimed property remitted to the Department of Financial Institutions on or

after May 1, 1993 but prior to August 20, 1993, the limitation provision

applicable to intangible personal property contained in Section 9 of the Act shall

apply.

b) For examinations of other than business associations commenced, completed and

with the unclaimed property remitted to the Department of Financial Institutions

on or after May 1, 1993 but prior to August 20, 1993, the limitation period

applicable to presumptively abandoned property contained in Section 27 of the

Act shall apply.

Section 760.100 Claims

a) In General

Any person claiming an interest in any property delivered to the State under the

Act may file a claim to that interest or to the proceeds from the sale of the

property on the form prescribed by the State Treasurer and that is available on the

Treasurer's website at https://icash.illinoistreasurer.gov/ [765 ILCS 1025/19]. Any

claim of an interest in property that is filed pursuant to the Act shall be

considered and a finding and decision shall be issued by the Office of the State

Treasurer in a timely and expeditious manner [765 ILCS 1025/20(a)] (see

subsection (c)(5)).

b) Burden of Proof

The Treasurer is the custodian for property delivered to the State under the Act

and is responsible for the safekeeping of that property [765 ILCS 1025/14].

Therefore, any person who files a claim for any property held by the Treasurer


18



pursuant to the Act shall bear the burden of proof in establishing that person is the

lawful owner of the property or an interest in the property. The Office of the

State Treasurer will release the property to a claimant only after the person

establishes his or her ownership of the property or an interest in the property by a

preponderance of the evidence.

c) Filing of Claims

1) Claimants may file claims with the Office of the State Treasurer as

provided in this Section, either in writing on forms prescribed by the

Treasurer or through completion of an internet form on the Treasurer's

website. Claims shall be verified or signed by the claimant under penalty

of perjury.

2) The claimant shall assert on the appropriate form that he or she is the true

owner of the unclaimed property and agrees to indemnify and hold

harmless the Treasurer, its officers and employees, and the State of Illinois

in the event of a successful claim to the property by another claimant.

3) If the subject property is valued at more than $500, the signatures of the

claimants shall be notarized by a notary public or be guaranteed by an

officer of a bank or financial institution with which the claimants currently

do business.

4) If a claimant is the owner and the value of the property does not exceed

$500, a fully completed owner claim form and owner indemnification

form, submitted to the Treasurer either in writing or through completion of

an internet form on the Treasurer's website, will be accepted as prima facie

evidence of validity of the claim, unless the Office of the State Treasurer

has facts within its knowledge that would tend to rebut the claim.

5) A claim will be considered complete when a claimant has provided all the

information and documentation requested by the Treasurer as necessary to

establish legal ownership and such information or documentation is

entered into the Treasurer's unclaimed property system. Unless extended

for reasonable cause, the Treasurer shall issue a decision no more than 90

days after a claim is complete. If a claimant fails to provide all the

information and documentation requested by the Treasurer as necessary to

establish legal ownership of the property and the claim is inactive for at


18



least 90 days, then the Treasurer may close the claim without issuing a

final decision. However, if the claimant makes a request in writing for a

final decision prior to the Treasurer's closing of the claim, the Treasurer

shall issue a final decision. If, after a claim is closed, a claimant

subsequently provides additional information or documentation

concerning the same property, the Treasurer shall open a new claim and

shall incorporate by reference all information and documentation provided

for the closed claim.

6) If the subject property is a two-party check, the claimant must, in addition

to submitting a fully completed claim form:

A) submit the original check; or

B) submit verification in the form of an affidavit from the issuing

agent of the check that the claimant is the true owner of the check

and the issuing agent would pay the value of the check to the

claimant if the issuing agent had not remitted the funds to the

Treasurer; or

C) post a surety bond, issued by an insurance company with an A+ or

A rating by A.M. Best and Company, in the amount of the check;

however, if the amount of the two-party check is $500 or less, the

original check is missing or has been destroyed, and the issuing

agent of the check no longer has sufficient records to identify the

legal owner of the check, the Treasurer shall waive the requirement

of posting a surety bond unless the Office of the State Treasurer

has facts within its knowledge that would tend to rebut the claim;

or

D) submit a release of interest executed by all persons not claiming

the property; or

E) submit an indemnification form if:

i) the original check is missing or has been destroyed;

ii) incomplete information was reported by the holder and is

no longer obtainable; and


18



iii) the amount of the two-party check is $500 or less.

d) Assignment of Interest

The Treasurer shall consider the claim of a designee or attorney-in-fact of any

claimant, provided that:

1) a properly executed and notarized release of interest or power of attorney

is submitted with the claim form;

2) the person filing the claim has submitted an affidavit stating that the

claimant is the true owner of the property;

3) claim proceeds shall only be delivered to the rightful owner; and

4) no person or company shall be entitled to a fee for discovering

presumptively abandoned property until it has been in the custody of the

Treasurer for at least 24 months. Fees for discovering property that has

been in the custody of the Treasurer for more than 24 months shall be

limited to not more than 10% of the amount collected. [765 ILCS

1025/20(c)]

Section 760.110 Hearings on Claims

a) Hearing Officers.

The State Treasurer may designate, in writing, a hearing officer who shall have

the authority to:

1) examine or permit examination of any witness under oath;

2) determine the order of appearance of all parties;

3) receive all evidence or testimony and rule on its admissibility as well as

require the production of any relevant document or witness;

4) rule on objections to evidence;

5) make a report with recommendations to the Treasurer which shall include

findings of fact and conclusions of law with respect to the claim. Findings


18



of fact shall be based exclusively on the evidence and on matters officially

noticed; and

6) require any party or his attorney to provide proposed findings of fact or

conclusion of law for consideration in his report.

b) General Provisions.

1) If a hearing is required to consider a claim, the claimant or his attorney

shall be notified by certified or registered mail, return receipt requested, at

least fifteen days prior to the date set for such hearing. Delivery of notice

to the United States Postal Service shall constitute delivery.

2) A continuance shall be granted for good cause by the Treasurer or his

designee which shall be:

A) in writing, in duplicate and signed by the claimant or his attorney

and shall state the reasons for the request;

B) delivered to the Treasurer or his designee at least three days prior

to the scheduled hearing.

3) For purposes of this subsection, good cause shall require the petitioner to

demonstrate real and compelling need for additional time. It shall include

but is not limited to illness, other hardship, service in the armed forces,

etc.

4) Failure to attend a hearing shall result in the dismissal of the party's claim

and the assessment of the costs for such hearing upon the party. A person

whose claim has been so dismissed shall not resubmit his claim until the

assessed costs have been paid, unless he successfully petitions the

Treasurer for reconsideration, by establishing that his failure to attend was

occasioned by events beyond his control and he exercised due diligence to

attend or seek a continuance.

5) The petitioner shall pay the actual cost of making the transcript. Such

payment shall be made prior to the Treasurer's issuance of his decision.

6) The Treasurer may assess all costs and attorneys' fees against any party


18



who has unreasonably delayed a proceeding or has filed a claim in bad

faith.

A) Unreasonable delay of a proceeding shall be determined to exist

upon a preponderance of evidence indicating that the petitioner is

purposefully delaying the hearing either actively or through

inattention to detail.

B) A determination of filing a claim in bad faith requires a

preponderance of evidence that the hearing petition was filed

merely to stay Treasurer action with no intent for expeditious

resolution of the contested issue.

c) Conduct of Hearings.

1) The hearing officer shall open the hearing by presenting for the record his

letter of authorization from the Treasurer. The claimant or his attorney

shall then present his claim and the proof thereof. The proof of claim may

include testimony, or any document relevant to the claim.

2) The rules of evidence and privilege as applied in civil cases in the Circuit

Courts of the State shall be followed. The hearing officer may admit

evidence not admissible under such rules if such evidence could be

relevant to the claim.

3) The hearing officer may on his own motion or the motion of one of the

parties take notice of matters which the Circuit Courts of this State may

take judicial notice. Notice may be taken of generally recognized

technical or scientific facts within the Treasurer's specialized knowledge if

parties are notified, before or during the hearing, and shall be afforded an

opportunity to contest the material so noticed. The burden of opposing

any material admitted upon notice shall be upon the party so opposing.

4) No State Treasurer employee, or hearing officer shall, after notice of a

hearing, communicate with any party or his attorney in connection with

any issue in said hearing except upon notice and opportunity for all parties

to participate.

5) The record of any hearing shall include:


18



A) all pleadings, and evidence received whether admitted or excluded;

B) a statement of all matters officially noticed;

C) all offers of proof, objections and rulings thereon;

D) all proposed findings and exceptions submitted by the parties;

E) any decision, opinion, or report by the hearing officer;

F) any communication prohibited by this rule, although such

communication shall not form the basis for any finding of fact;

G) any evidence excluded by the hearing officer, even though such

evidence is not used in the determination of the claim;

H) a proceeding transcript which shall be recorded by such means as

to accurately insure the preservation of the testimony.

6) Within sixty days of the hearing or the receipt of all necessary documents,

the hearing officer shall report to the Treasurer, pursuant to Section

760.110(a)(5).

7) Within thirty days after receiving the report of the hearing officer, the

Treasurer shall issue his decision, which shall be served on claimant and

other parties personally or by registered or certified mail, return receipt

requested.

d) Petition to Reconsider.

1) Within thirty days after receipt of the Treasurer's decision, any party may

petition the Treasurer for reconsideration based upon a verified petition.

An affidavit shall accompany the petition stating that the decision was

against the manifest weight of the evidence, was contrary to law, or was

arbitrary or capricious, or is affected by newly discovered evidence not in

existence at the time of the initial hearing or which could not have been

discovered using due diligence at that time.


18



2) The Treasurer shall determine within fifteen days whether to reconsider

the case. If reconsideration is allowed, a hearing shall be held pursuant to

this rule and shall be limited to the issues raised by the petition and

affidavit. If reconsideration is denied, the Treasurer's initial decision shall

be the final administrative decision of the Treasurer.

Section 760.115 Non-Claim Hearings

Administrative hearings, except those regarding claims under Section 20 of the Act, will be

conducted in accordance with the State Treasurer's procedures.


18



1) Heading of the Part: Revised Uniform Unclaimed Property Act



760.100 New Section

760.200 New Section

760.210 New Section

760.215 New Section

760.220 New Section

760.230 New Section

760.240 New Section

760.250 New Section

760.260 New Section

760.270 New Section

760.280 New Section

760.290 New Section

760.300 New Section

760.310 New Section

760.400 New Section

760.410 New Section

760.420 New Section

760.430 New Section

760.440 New Section

760.450 New Section

760.460 New Section

760.470 New Section

760.500 New Section

760.510 New Section

760.520 New Section

760.530 New Section

760.540 New Section

760.550 New Section

760.560 New Section

760.570 New Section

760.600 New Section

760.610 New Section

760.620 New Section

760.630 New Section


18



760.640 New Section

760.650 New Section

760.660 New Section

760.670 New Section

760.680 New Section

760.690 New Section

760.700 New Section

760.710 New Section

760.720 New Section

760.730 New Section

760.740 New Section

760.750 New Section

760.760 New Section

760.770 New Section

760.780 New Section

760.790 New Section

760.800 New Section

760.810 New Section

760.820 New Section

760.830 New Section

760.840 New Section

760.850 New Section

760.900 New Section

760.910 New Section

760.920 New Section

760.930 New Section

760.940 New Section

760.950 New Section

760.960 New Section

760.970 New Section

760.980 New Section




760.APPENDIX A New Section

4) Statutory Authority: Implementing and authorized by the Revised Uniform Unclaimed

Property Act [765 ILCS 1026].


18



5) A Complete Description of the Subjects and Issues Involved: In 2017, the General

Assembly adopted the Revised Uniform Unclaimed Property Act (RUUPA), which was

based on the 2016 Uniform Law Commission (ULC) Act, and repealed the existing

Uniform Disposition of Unclaimed Property Act (765 ILCS 1025), which was based on

the 1954 ULC Act. These proposed rules implement the Illinois Revised Uniform

Unclaimed Property Act (765 ILCS 1026) as adopted by the General Assembly through

Public Acts 100-22 and 100-566.

The proposed rules include a definition section (Subpart A), which restates many of the

statutory definitions, with appropriate clarification, and adds new definitions for terms

that are used within the rules.

Subpart B provides clarity and guidance in determining when different types of properties

are presumed abandoned and how they should be reported, including tax-deferred

accounts, safe deposit boxes, stored value cards, gift cards, merchandise credits, and

securities. The rules also provide details on what actions do and do not qualify as

apparent owner interest sufficient to rebut a statutory presumption of abandonment.

Subpart C provides specific instructions for reporting and remitting unclaimed property

to the State Treasurer, including how and when to file reports, how to report early or

request an extension, and deadlines for refiling a rejected report. The due diligence

process, required before filing a report, along with statutory records retention

requirements are also explained in Subpart C.

Subpart D specifies the various methods that the State Treasurer will utilize in trying to

locate and notify apparent owners of unclaimed property in the custody of the State,

including notice by US mail, e-mail, and newspaper and website publications.

Subpart E explains the process of claiming unclaimed property from the State Treasurer,

including the burden of proof required to claim property, an expedited process for claims

of property of less than $500, and the use of tax return information to locate apparent

owners and return unclaimed property to them. Subpart E also explain how interest

payments on certain types of properties will be calculated.

Subpart F provides guidance and protections for persons subject to unclaimed property

examinations pursuant to the Act, including detailed requirements for the hiring and use

of contract auditors by the State Treasurer, guidelines for the conduct of examinations,

limits on the use of estimation in examinations, audit resolution agreements and a

voluntary disclosure program. This subpart also provide clarity concerning which entities


18



are to be examined by the Illinois Department of Financial and Professional Regulation

instead of the State Treasurer.

Subpart G details the State Treasurer's enforcement authority and the system of voluntary

reporting under RUUPA, details the process for issuing and seeking to enforce

administrative subpoenas as authorized by RUUPA, explains the State Treasurer's

interpretation of when interest and penalties shall and may be imposed, provides for

requesting the assistance of the Attorney General in seeking judicial enforcement of

RUUPA in Illinois or another State, and explains the statute of limitations.

Public Act 100-22 provided an explicit statutory exemption from the Freedom of

Information Act (FOIA) for some records and information obtained pursuant to RUUPA.

Subpart H authorizes the State Treasurer's Freedom of Information Officer to deny

requests for those records. In addition, the proposed rules make it clear that auditors are

restricted in their use of such confidential information.

Subpart I addresses issues related to the transition to RUUPA, including explaining the

look-back period, as well as waivers of interest and penalties, for certain property

reported pursuant to the transition provision of RUUPA.


rulemaking: Revised Uniform Unclaimed Property Act, National Conference of

Commissioners on Uniform State Laws, 1995; and the National Association of State

Treasurers (NAUPA) Standard Electronic File Format, https://www.unclaimed.org/

reporting/naupa-standard-electronic-file-format/, September 2013.



9) Does this rulemaking contain incorporations by reference? Yes. A variety of federal laws

and regulations, as well as standards developed by independent nationally recognized

associations have been incorporated and are available for public inspection at:

Office of the Treasurer

219 State House


fax: 217/785-2777


18







rulemaking: The Treasurer's Office will hold a public hearing on this proposed

rulemaking at the date and time listed below. Further details and the hearing agenda may

be found on the Treasurer's website at: www.illinoistreasurer.gov.

Public Hearing:

Thursday, October 18, 2018

2:00 PM – 4:00 PM

Stratton Office Building, Room C-1

401 S. Spring Street


Written comments on this proposed rulemaking may be submitted for a period of 45 days

following publication of this Notice. Comments should be submitted to:

Sara Meek

Deputy Director of Legislative Affairs


219 State House


217/524-0530

fax: 217/785-2777


The Department will consider fully all comments on this proposed rulemaking submitted

during the 45-day comment period. Comments submitted by small businesses should be

identified as such.



affected: Any small businesses, financial organizations, insurance companies,


18



local municipalities, and non-profit entities in the State of Illinois that are

obligated to hold, deliver, or pay property to a property owner will be affected by

Public Act 100-22 and this subsequent rulemaking.

B) Reporting, bookkeeping or other procedures required for compliance: Those

necessary for regulatory compliance.



The full text of the Proposed Rules begins on the next page:


18





PART 760

REVISED UNIFORM UNCLAIMED PROPERTY ACT

SUBPART A: DEFINITIONS

Section

760.100 Definitions

SUBPART B: PRESUMPTION OF ABANDONMENT

Section

760.200 Tax-Deferred Accounts

760.210 Safe Deposit Boxes

760.215 Deposits with Financial Organizations

760.220 Stored Value Cards

760.230 Gift Cards

760.240 Payroll Cards

760.250 Merchandise Credits

760.260 Loyalty Cards

760.270 Property Related to Preneed Death Care Contracts

760.280 Reporting Securities

760.290 Deceased Owner

760.300 Apparent Owner Interest

760.310 Anti-Limitations Provision

SUBPART C: REPORTING

Section

760.400 Holder Reporting Required

760.410 Report Contents

760.420 Filing Dates

760.430 Early Reporting and Remittance of Property

760.440 Extensions

760.450 Incomplete and Rejected Reports

760.460 Due Diligence Notice by Holder

760.470 Retention of Records by Holder


18



SUBPART D: NOTICE TO APPARENT OWNERS BY THE ADMINISTRATOR

Section

760.500 Notices by United States Mail

760.510 E-Mail Notices

760.520 Newspaper Notices

760.530 Website

760.540 Tax Return Identification of Apparent Owners

760.550 Updating Apparent Owner Data

760.560 Other Discretionary Means of Providing Notice

760.570 Confidentiality

SUBPART E: CLAIMS

Section

760.600 Claims

760.610 Burden of Proof

760.620 Filing of Claims

760.630 Tax Return Identification of Apparent Owners

760.640 Crediting Income or Gain to Owner's Account

760.650 Finders

760.660 Property Subject to Recovery by Another State

760.670 Debt Collection Agencies

760.680 Holder Reimbursement

760.690 Securities Sale and Claims

SUBPART F: EXAMINATIONS

Section

760.700 Authority

760.710 Purpose

760.720 Contract Auditors

760.730 Holder Advocates

760.740 Notice of Examination

760.750 Entrance Conference

760.760 Examination Guidelines

760.770 Confidentiality Agreement

760.780 Evidence of Unpaid Debt or Undischarged Obligation


18



760.790 Estimation

760.800 Multistate Examinations

760.810 Bankruptcy

760.820 Audit Resolution Agreements

760.830 Report to Holder

760.840 Voluntary Disclosure Agreement Program

760.850 Examination of State-Regulated Financial Organizations

SUBPART G: ENFORCEMENT

Section

760.900 Purpose of Enforcement

760.910 Verified Report of Property

760.920 Administrative Subpoenas

760.930 Determination of Liability

760.940 Interest and Penalties

760.950 Waiver of Interest and Penalties

760.960 Judicial Enforcement

760.970 Action Involving Another State or Foreign Country

760.980 Periods of Limitation and Repose

SUBPART H: CONFIDENTIALITY

Section

760.1000 Confidentiality

760.1010 Confidentiality of Records Obtained During Examination

SUBPART I: MISCELLANEOUS

Section

760.1100 Transition Provisions

760.APPENDIX A Background Information

AUTHORITY: Implementing and authorized by the Revised Uniform Unclaimed Property Act

[765 ILCS 1026].

SOURCE: Filed November 20, 1977; emergency amendment at 3 Ill. Reg. 39, p. 225, effective

September 14, 1979, for a maximum of 150 days; amended at 3 Ill. Reg. 48, p. 153, effective


18



November 20, 1979; rules repealed, new rules adopted and codified at 8 Ill. Reg. 1464, effective

January 18, 1984; amended at 15 Ill. Reg. 8555, effective May 24, 1991; amended at 17 Ill. Reg.

123, effective December 21, 1992; emergency amendment at 17 Ill. Reg. 6321, effective April 6,

1993; amended at 17 Ill. Reg. 9893, effective June 21, 1993; amended at 18 Ill. Reg. 18001,

effective December 12, 1994; amended at 20 Ill. Reg. 8325, effective June 8, 1996; recodified

from the Department of Financial Institutions (38 Ill. Adm. Code 180) to the State Treasurer,

pursuant to PA 91-16, at 26 Ill. Reg. 8164; emergency amendment at 28 Ill. Reg. 13919,

effective October 5, 2004, for a maximum of 150 days; emergency expired March 3, 2005;


April 18, 2013; amended at 40 Ill. Reg. 16804, effective December 19, 2016; old Part repealed at

42 Ill. Reg. ______ and new Part adopted at 42 Ill. Reg. ______, effective ____________.

SUBPART A: DEFINITIONS


"Act" or "Revised Act" means the Revised Uniform Unclaimed Property Act [765

ILCS 1026].

"Administrator" means the State Treasurer.

"Administrator's Agent" or "Auditor" means a person with whom the

administrator contracts to conduct an examination under Article 10 of the Act on

behalf of the administrator. The term includes an independent contractor of the

person and each individual participating in the examination on behalf of the

person or contractor.

"Apparent Owner" means a person whose name appears on the records of a

holder as the owner of property held, issued or owing by the holder.

"Business Association" means a corporation, joint stock company, investment

company, unincorporated association, joint venture, limited liability company,

business trust, trust company, land bank, safe deposit company, safekeeping

depository, financial organization, insurance company, federally chartered entity,

utility, sole proprietorship, or other business entity, whether or not for profit.

"Confidential Information" means information that is "personal information"

under the Personal Information Protection Act [815 ILCS 530/5], "private

information" under the Freedom of Information Act [5 ILCS 140/2(c-5)], or


18



personal information contained within public records, the disclosure of which

would constitute a clearly unwarranted invasion of personal privacy, unless the

disclosure is consented to in writing by the individual subjects of the information

as provided in the Freedom of Information Act [5 ILCS 140/7(1)(c)].

"Domicile" means:

for a corporation, the state of its incorporation;

for a business association whose formation requires a filing with a state,

other than a corporation, the state of its filing;

for a federally chartered entity or an investment company registered under

the Investment Company Act of 1940 (15 USC 80a-1 through 80a-63), the

state of its home office; and

for any other holder, the state of its principal place of business.

"DOR" means the Illinois Department of Revenue.

"Electronic" means relating to technology having electrical, digital, magnetic,

wireless, optical, electromagnetic or similar capabilities.

"Electronic Mail" or "E-mail" means a communication by electronic means that is

automatically retained and stored and may be readily accessed or retrieved.

"Escheat Fee" means any charge imposed solely by virtue of property being

reported as presumed abandoned.

"Financial Organization" means a bank, savings bank, foreign bank, corporate

fiduciary, currency exchange, money transmitter, or credit union.

"Former Act" means the Uniform Disposition of Unclaimed Property Act [765

ILCS 1025], repealed effective January 1, 2018.

"Game-Related Digital Content" means digital content that exists only in an

electronic game or electronic game platform. The term includes:


18



game-play currency such as a virtual wallet, even if denominated in

United States currency;

the following, if for use or redemption only within the game or platform or

another electronic game or electronic game platform:

points sometimes referred to as gems, tokens, gold and similar

names; and

digital codes; and

does not include an item that the issuer:

permits to be redeemed for use outside a game or platform for

money or goods/services that have more than minimal value; or

otherwise monetizes for use outside a game or platform.

"Gift Card" means a record evidencing a promise made for consideration by the

seller or issuer of the record that goods, services or money will be provided to the

owner of the record to the value or amount shown in the record that is either:

a record:

issued on a prepaid basis primarily for personal, family or

household purposes to a consumer in a specified amount;

the value of which does not expire;

that is not subject to a dormancy, inactivity or post-sale service

fee;

that is redeemable upon presentation for goods or services; and

that, unless required by law, may not be redeemed for or converted

into money or otherwise monetized by the issuer; or

a prepaid commercial mobile radio service, as defined in 47 CFR 20.3.


18



"Holder" means a person obligated to hold for the account of, or to deliver or pay

to, the owner, property subject to the Act.

"Insurance Company" means an association, corporation or fraternal or mutual-

benefit organization, whether or not for profit, engaged in the business of

providing life endowments, annuities or insurance, including accident, burial,

casualty, credit-life, contract performance, dental, disability, fidelity, fire, health,

hospitalization, illness, life, malpractice, marine, mortgage, surety, wage

protection, and workers' compensation insurance.

"Loyalty Card" means a record given without direct monetary consideration

under an award, reward, benefit, loyalty, incentive, rebate, or promotional

program that may be used or redeemed only to obtain goods or services or a

discount on goods or services. The term does not include a record that may be

redeemed for money or otherwise monetized by the issuer.

"Merchandise Credit" means in-store credit for returned merchandise redeemable

for merchandise, goods or services upon presentation at a single merchant or an

affiliated group of merchants.

"Mineral" means gas, oil, coal, oil shale, other gaseous liquid or solid

hydrocarbon, cement material, sand and gravel, road material, building stone,

chemical raw material, gemstone, fissionable and nonfissionable ores, colloidal

and other clay, steam and other geothermal resources, and any other substance

defined as a mineral by other law of this State.

"Mineral Proceeds" means an amount payable for extraction, production, or sale

of minerals, or, on the abandonment of the amount, an amount that becomes

payable after abandonment. The term includes an amount payable:

for the acquisition and retention of a mineral lease, including a bonus,

royalty, compensatory royalty, shut-in royalty, minimum royalty, and

delay rental;

for the extraction, production or sale of minerals, including a net revenue

interest, royalty, overriding royalty, extraction payment, and production

payment; and


18



under an agreement or option, including a joint-operating agreement, unit

agreement, pooling agreement, and farm-out agreement.

"Money Order" means a payment order for a specified amount of money. The

term includes an express money order and a personal money order on which the

remitter is the purchaser.

"Municipal Bond" means a bond or evidence of indebtedness issued by a

municipality or other political subdivision of a state.

"Net Card Value" means the original purchase price or original issued value of a

stored-value card, plus amounts added to the original price or value, minus

amounts used and any service charge, fee, or dormancy charge permitted by law.

"Non-Freely Transferable Security" means a security that cannot be delivered to

the administrator by the Depository Trust Clearing Corporation or similar

custodian of securities providing post-trade clearing and settlement services to

financial markets or cannot be delivered because there is no agent to effect

transfer. The term includes a worthless security.

"Owner", unless the context otherwise requires, means a person that has a legal,

beneficial, or equitable interest in property subject to the Act or the person's legal

representative when acting on behalf of the owner. The term includes:

a depositor, for a deposit;

a beneficiary, for a trust other than a deposit in trust;

a creditor, claimant or payee, for other property; and

the lawful bearer of a record that may be used to obtain money, a reward,

or a thing of value.

"Payroll Card" means a record that evidences a payroll-card account as defined

in 12 CFR 1005 (Regulation E).

"Payroll-Card Account" is an account that is directly or indirectly established

through an employer and to which electronic fund transfers of the consumer's

wages, salary or other employee compensation (such as commissions) are made


18



on a recurring basis, whether the account is operated or managed by the employer,

a third-party payroll processor, a depository institution, or any other person.

"Person" means an individual, estate, business association, public corporation,

government or governmental subdivision, agency, or instrumentality, or other

legal entity, whether or not for profit.

"Property" means tangible property described in Section 15-201 of the Act or a

fixed and certain interest in intangible property held, issued, or owed in the

course of a holder's business or by a government, governmental subdivision,

agency or instrumentality. The term:

includes all income from or increments to the property;

includes property referred to as or evidenced by:

money, virtual currency, interest, or a dividend, check, draft,

deposit or payroll card;

a credit balance, customer's overpayment, stored-value card,

security deposit, refund, credit memorandum, unpaid wage, unused

ticket for which the issuer has an obligation to provide a refund,

mineral proceeds, or unidentified remittance;

a security except for:

a worthless security; or

a security that is subject to a lien, legal hold, or restriction

evidenced on the records of the holder or imposed by

operation of law, if the lien, legal hold, or restriction

restricts the holder's or owner's ability to receive, transfer,

sell, or otherwise negotiate the security;

a bond, debenture, note, or other evidence of indebtedness;

money deposited to redeem a security, make a distribution, or pay

a dividend;


18



an amount due and payable under an annuity contract or

insurance policy;

an amount distributable from a trust or custodial fund established

under a plan to provide health, welfare, pension, vacation,

severance, retirement, death, stock purchase, profitsharing,

employee savings, supplemental unemployment insurance, or a

similar benefit; and

any instrument on which a financial organization or business

association is directly liable; and

does not include:

game related digital content;

a loyalty card; or

a gift card.

"Putative Holder" means a person believed by the administrator to be a holder,

until the person pays or delivers to the administrator property subject to the Act,

or the administrator or a court makes a final determination that the person is or

is not a holder.

"Record" means information that is inscribed on a tangible medium or that is

stored in an electronic or other medium and is retrievable in perceivable form.

"Records of the Holder" includes records maintained by a third party which has

contracted with the holder.

"Security" means:

a security as defined in Article 8 of the Uniform Commercial Code [810

ILCS 5/8-102];

a security entitlement as defined in Article 8 of the Uniform Commercial

Code, including a customer security account held by a registered broker-


18



dealer, to the extent the financial assets held in the security account are

not:

registered on the books of the issuer in the name of the person for

which the broker-dealer holds the assets;

payable to the order of the person; or

specifically indorsed to the person; or

an equity interest in a business association not included in the above

paragraph.

"Sign" means, with present intent to authenticate or adopt a record:

to execute or adopt a tangible symbol; or

to attach to or logically associate with the record an electronic symbol,

sound or process.

"State", when not limited to the State of Illinois, means a state of the United

States, the District of Columbia, the Commonwealth of Puerto Rico, the United

States Virgin Islands, or any territory or insular possession subject to the

jurisdiction of the United States. When capitalized, the term "State" means the

State of Illinois.

"State Treasurer" means the duly elected Treasurer of the State of Illinois.

"Stored-Value Card" means a card, code, or other device that is:

issued on a prepaid basis primarily for personal, family, or household

purposes to a consumer in a specified amount, whether or not that amount

may be increased or reloaded in exchange for payment; and

redeemable upon presentation at multiple unaffiliated merchants for

goods or services or usable at automated teller machines;

Stored value card does not include a gift card, payroll card, loyalty card, or

game related digital content.


18



"Utility" means a person that owns or operates for public use a plant, equipment,

real property, franchise, or license for the following public services:

transmission of communications or information;

production, storage, transmission, sale, delivery, or furnishing of

electricity, water, steam or gas; or

provision of sewage or septic services, or trash, garbage or recycling

disposal.

"Virtual Currency" means a digital representation of value used as a medium of

exchange, unit of account, or store of value that does not have legal tender status

recognized by the United States. The term does not include:

the software or protocols governing the transfer of the digital

representation of value;

game related digital content; or

a loyalty card or gift card.

"Worthless Security" means a security whose cost of liquidation and delivery to

the administrator would exceed the value of the security on the date a report is

due under the Act. [765 ILCS 1026/15-102]

SUBPART B: PRESUMPTION OF ABANDONMENT

Section 760.200 Tax-Deferred Accounts

a) Sections 15-202 and 15-203 of the Act indicate when "tax deferred" accounts are

presumptively abandoned. Section 15-202 prescribes the rules for tax deferred

retirement accounts and Section 15-203 prescribes the rules for other tax deferred

accounts. These rules for tax deferred accounts generally have longer periods of

abandonment than accounts covered by Section 15-201 of the Act.

b) A retirement account that is tax advantaged under the income tax laws of the

United States will generally be considered tax deferred under the Act. A Roth


18



IRA isshould be considered tax deferred under the Act and the rules under Section

15-202 apply to a Roth IRA.

c) In some cases, federal law, specifically ERISA (29 USC 1001 et seq.), may

preempt the Act and prevent reporting and remitting retirement accounts or other

property representing a retirement plan asset that would otherwise be reportable

under the Act. Concerning ERISA preemption and unclaimed property statutes,

see Commonwealth Edison Co. v. Vega, 174 F.3d 870 (7th Cir. 1999).

Nonqualified, government and church plans are not subject to an ERISA

preemption, nor are uncashed plan distribution checks issued by a qualified plan

that lacks, or has failed to exercise, a forfeiture or other reversionary interest.

d) If a holder is uncertain whether an account qualifies as tax deferred under the Act

(i.e., whether the account is covered by Section 15-201 or by Sections 15-202 and

15-203), whether ERISA preempts the Act for a retirement account, or whether an

account is covered by Section 15-202 or Section 15-203, the holder may

specifically identify the property in a report filed with the administrator or give

express notice to the administrator of a potential dispute regarding the property.

Specifically identifying the property in a report or providing express notice to the

administrator both ensures that the property will be covered by the limitations

period of Section 15-610 of the Act and demonstrates that the holder is attempting

to comply with the Act in good faith and without negligence. Specifically

identifying the property in a report filed with the administrator indicating that the

property is not being remitted because ERISA preemption allows a holder to

satisfy both its fiduciary obligation under ERISA, which would generally prohibit

remitting the property to the administrator, and any obligation under the Act.

e) Pursuant to Section 15-405 of the Act (property reportable and payable or

deliverable absent owner demand provision) and Section 15-610(a) of the Act

(anti-limitations provision) a nonqualified plan or plan not otherwise subject to

preemption under ERISA is prohibited from forfeiting an account or other

property.

f) The administrator will accept missing participants' account balances reported and

remitted by an ERISA plan fiduciary for a terminated defined contribution plan.

See United States Department of Labor Field Assistance Bulletin No. 2014-01

(available at www.dol.gov/agencies/ebsa/employers-and-advisers/guidance/field-

assistance-bulletins), which indicates that, despite the ERISA preemption for

ongoing plans, a plan fiduciary may report and remit "missing participants'


18



account balances under a state's unclaimed property statute to complete the plan

termination process".

Section 760.210 Safe Deposit Boxes

a) Safe deposit boxes with contents that have remained unclaimed for 5 years after

expiration of the lease or rental period are presumed abandoned. [765 ILCS

1026/15-205] Presumptively abandoned boxes shall be opened and inventoried in

the presence of at least two employees of the holder who shall verify the accuracy

of the inventory. The property shall then be sealed for safekeeping until delivered

to the owner or the administrator.

b) The Annual Report containing information about the contents of safe deposit

boxes must be filed before November 1, for financial organizations, and before

May 1, for all other business associations, in the year in which the report is due.

The Annual Report is to be submitted online. If a holder provides safe deposit

boxes, then the Annual Report must be completed in its entirety, verified for

accuracy, and filed regardless of whether a holder has abandoned safe deposit

boxes to report. A "negative report" indicating no safe deposit box contents are

being reported and remitted serves as a control to assist in detecting and

preventing fraud or theft.

c) Notice to the apparent owner must be given prior to remittance to the

administrator.

1) The holder of property presumed abandoned shall send to the apparent

owner notice by first-class United States mail that complies with Section

15-502 of the Act in a format acceptable to the administrator not more

than one year nor less than 60 days before filing the Annual Report under

Section 15-401 of the Act if:

A) the holder has in its records an address for the apparent owner

that the holder's records do not disclose to be invalid and is

sufficient to direct the delivery of first-class United States mail to

the apparent owner; and

B) the value of the property is $50 or more.


18



2) If an apparent owner has consented to receive electronic-mail delivery

from the holder, the holder shall send the notice both by first-class United

States mail to the apparent owner's last-known mailing address and by

electronic mail, unless the holder believes that the apparent owner's

electronic-mail address is invalid. [765 ILCS 1026/15-501]

d) Tangible property from a safe deposit box may not be delivered to the

administrator until a mutually agreed upon date that is no sooner than 60 days

after filing the Annual Report. [765 ILCS 1026/15-603(b)]

1) All safe deposit box shipments shall include a full copy of the previously

submitted Annual Report. The Annual Report shall list all properties

included and an inventory of each property.

2) Each property shall be provided in a tamper evident bag or envelope. An

inventory sheet for each specific property shall be attached to or enclosed

in the bag or envelope.

3) When remitting multiple properties at the same time, each property shall

be in a separate tamper evident bag or envelope and labeled with the name

of the owner. If a single property requires the use of more than one

bag/envelope, the bags/envelopes are to be numbered accordingly (i.e., 1

of 3, 2 of 3, etc.).

e) Reimbursement of Holder

1) Property removed from a safe-deposit box and delivered to the

administrator under the Act is subject to the holder's right to

reimbursement for the cost of opening the box and a lien or contract

providing reimbursement to the holder for unpaid rent charges for the

box. Upon application by the holder, and after there are sufficient cash

funds available either from the contents of the box or the sale of the

property, the administrator shall reimburse the holder from the proceeds.

[765 ILCS 1026/15-606]

2) Holders may only be reimbursed for any costs and charges that were

included in the Annual Report listing the contents of the safe deposit box

whose owner owes the costs and charges to the holder.


18



3) It is the responsibility of the holder to apply for reimbursement of costs

and charges under Section 15-606 of the Act. The administrator shall

make available on the administrator's website a form for holders to apply

for reimbursement under Section 15-606 of the Act.

4) If, after the sale of property removed from a safe deposit box and

delivered to the administrator, there are not sufficient cash funds available

to fully reimburse the holder for costs and charges allowed under Section

15-606 of the Act, the holder may apply to the administrator to be partially

reimbursed up to the amount of cash funds available. If, however, the

administrator pays all available cash funds to the holder under this

subsection (e), the holder may not claim any additional costs and charges

from the same safe deposit box.

Section 760.215 Deposits with Financial Organizations

a) Demand, Savings, or Time Deposits. A demand, savings, or time deposit, unless it

is automatically renewable, is presumed abandoned 3 years after the later of

maturity or the date of the last indication of interest in the property by the

apparent owner. [765 ILCS 1026/15-201(6)]

b) Automatically Renewable Deposits

1) General Rule. A deposit that is automatically renewable is presumed

abandoned 3 years after its initial date of maturity. [765 ILCS 1026/15-

201(6)]

2) Anti-penalty Provision. If property in a report under Section 15-401 of the

Act is an automatically renewable deposit and a penalty or forfeiture in

the payment of interest would result from paying the deposit to the

administrator at the time of the report, the date for payment of the

property to the administrator is extended until a penalty or forfeiture no

longer would result from payment, if the holder informs the administrator

of the extended date. [765 ILCS 1026/15-603(b)]

3) Under the Act, the time when a holder is required to remit to the

administrator a presumptively abandoned automatically renewable deposit

is dependent upon both the term of the deposit and whether there is a


18



penalty or forfeiture of interest provision applicable to such an

automatically renewable deposit.

4) If it does not have a penalty or forfeiture of interest provision, then a

presumptively abandoned automatically renewable deposit should be

remitted to the administrator with the holder's first report after the initial

term of the deposit plus 3 years.

5) When a holder is required to remit a presumptively abandoned

automatically renewable deposit with a penalty or forfeiture of interest

provision depends upon the term of the deposit.

A) A presumptively abandoned automatically renewable deposit with

a term of less than one year should be remitted to the administrator

in the holder's first report after the initial term plus 3 years.

EXAMPLE: A 6-month certificate of deposit would be remitted

with the holder's first report after 4 years have passed. This would

be the initial 6-month term plus the 6 additional 6-month terms that

comprise the 3-year period of abandonment and then the time,

which should be less than a year, until the holder's next report is

due under the Act.

B) A presumptively abandoned automatically renewable deposit with

a term of less than 3 years, but more than one year, should be

remitted to the administrator with the holder's first report after the

initial term plus 3 years plus any time needed to avoid a penalty.

EXAMPLE: A 2-year certificate of deposit would be remitted with

the holder's first report after 6 years have passed. This would be

the initial 2-year term plus the 3-year period of abandonment plus

the final year of the third 2-year term so as to avoid the penalty

(i.e., the first report after three 2-year terms).

C) A presumptively abandoned automatically renewable deposit with

a term of 3 years or more should be remitted to the administrator

with the holder's first report after the end of the second term of the

deposit.


18



EXAMPLE: A 5-year certificate of deposit would be remitted with

the holder's first report after 10 years have passed. After the first 5-

year term, the end of the 3-year period of abandonment falls within

the second 5-year term. So, to avoid any penalty, the certificate of

deposit is remitted with the holder's first report after the end of the

second 5-year term.

Section 760.220 Stored Value Cards

a) Stored Value Cards

1) Unless otherwise exempted by the Act or this Part, the net card value of a

stored value card is required to be reported and remitted under the Act as

property that is presumed abandoned pursuant to Section 15-206 of the

Act.

2) In determining whether property falls within the definition of stored value

card under the Act, the State Treasurer will consider the federal

regulations concerning gift cards and gift certificates and official staff

interpretations issued by the Board of Governors of the Federal Reserve

System as part of what is commonly known as "Regulation E" (12 CFR

1005 (2011)). A stored value card will, in most cases, be a "general-use

prepaid card" under those federal regulations. The use of those federal

regulations and interpretations by the State Treasurer is intended to

harmonize definitions and concepts used by state and federal regulators to

make compliance easier for affected businesses.

3) Property that satisfies the definition of payroll card, merchandise credit, or

gift card is not a stored value card.

4) If a holder has reported and remitted to the administrator the net card

value on a stored-value card presumed abandoned under the Act and the

stored-value card does not have an expiration date, then the holder must

honor the card on presentation indefinitely and may then request

reimbursement from the administrator under Section 15-605 of the Act.

A) This provision is required for the Act to avoid preemption by

federal law.


18



B) See Notice of preemption determination "Electronic Fund

Transfers; Determination of Effect on State Laws (Maine and

Tennessee)" (Docket No. CFPB-2012-0036) issued by the federal

Bureau of Consumer Financial Protection holding that Maine's

unclaimed property law was not preempted by federal law because

it contained an indefinite presentation provision, but Tennessee's

unclaimed property law, which did not contain an indefinite

presentation provision, was preempted by federal law.

Section 760.230 Gift Cards

a) Gift cards as defined in the Act are exempt from being reported and remitted as

property that is presumed abandoned. Gift cards are excluded from the definition

of property in the Act (see 765 ILCS 1026/15-102(24)(C)(iii)).

b) If property does not satisfy all the parts of the definition of gift card under the

Act, then it does not qualify for the gift card exemption.

c) Property that does not qualify as a gift card includes, but is not limited to,

property that:

1) has an expiration date;

2) is subject to a dormancy, inactivity, or post-sale service fee; or

3) may be redeemed for money, including at automated teller machines.

Section 760.240 Payroll Cards

a) Amounts held on payroll cards are presumed abandoned one year after the amount

becomes payable under Section 15-201(13) of the Act.

b) Because payroll cards are not stored value cards, this one year period of

abandonment applies to payroll cards instead of the 5-year period of abandonment

for stored value cards under Section 15-206 of the Act.

Section 760.250 Merchandise Credits


18



a) Merchandise credits are exempt from being reported and remitted under the Act

pursuant to Section 15-201(7) of the Act.

b) This exemption includes, but is not limited to, a stored value card that is given as

in-store credit for returned merchandise.

c) However, the exemption for merchandise credits does not include stored value

cards that:

1) are redeemable at multiple, unaffiliated merchants; or

2) may be redeemed for or converted into money or otherwise monetized by

the issuer.

Section 760.260 Loyalty Cards

A loyalty card as defined in the Act is not a stored value card and is exempt from being reported

and remitted.

Section 760.270 Property Related to Preneed Death Care Contracts

a) Illinois Funeral or Burial Funds Act [225 ILCS 45]

1) Funds on deposit or held in trust pursuant to the Illinois Funeral or Burial

Funds Act are covered under the Act pursuant to Section 15-201(9).

2) Proceeds of a life insurance policy or annuity contract, even if used to

fund a pre-need contract pursuant to the Illinois Funeral or Burial Funds

Act, are covered under the Act pursuant to Sections 15-201(8) and 15-211.

3) The relevant provisions of Section 4 of the Illinois Funeral or Burial Funds

Act determine the amount to be reported and remitted as unclaimed

property under the Act.

A) If, after the death of the beneficiary, no funeral merchandise or

services are provided or if the funeral is conducted by another

provider, the seller may keep no more than 10% of the payments

made under the pre-need contract or $300, whichever sum is less.

The remainder of the trust funds or insurance or annuity proceeds


18



shall be forwarded to the legal heirs of the deceased beneficiary or

as determined by probate action. [225 ILCS 45/4(c-5)] If the legal

heirs of the deceased beneficiary cannot be located and there is not

an active probate action, the remainder of trust funds should be

reported and remitted as unclaimed property pursuant to Section

15-201(9) of the Act and insurance or annuity proceeds should be

reported and remitted pursuant to Sections 15-201(8) and 15-211

of the Act.

B) Refunds provided pursuant to Section 4 of the Illinois Funeral or

Burial Funds Act may become unclaimed property as the debt of a

business association under Section 15-201(5) of the Act.

4) If a pre-need contract requires entrustment under both the Illinois Funeral

or Burial Funds Act and the Illinois Pre-Need Cemetery Sales Act [815

ILCS 390] and the only item that requires entrustment under the Illinois

Pre-Need Cemetery Sales Act is an outer burial container, then, for the

purposes of determining a presumption of abandonment under the Act, all

amounts entrusted under the pre-need contract shall be treated as though

they were entrusted under the Illinois Funeral or Burial Funds Act.

b) Illinois Pre-Need Cemetery Sales Act

1) Burial rights, along with rights of interment, entombment or inurnment are

all interests in real property. Interests in real property are not covered by

the Act and do not become unclaimed property under the Act.

2) Refunds provided pursuant to Section 18 of the Illinois Pre-Need

Cemetery Sales Act [815 ILCS 390] may become unclaimed property as

the debt of a business association under Section 15-201(5) of the Act.

c) Death Master File

1) The Act does not mandate holders of trust funds under the Illinois Funeral

or Burial Funds Act or the Illinois Pre-Need Cemetery Sales Act to

compare their records against the Social Security Administration's Death

Master File.


18



2) While the Act does not mandate holders of life insurance or annuities,

including those intended to fund a pre-need contract under the Illinois

Funeral or Burial Funds Act or Illinois Pre-Need Cemetery Sales Act, to

compare their records against the Social Security Administration's Death

Master File, holders must still comply with the provisions of the

Unclaimed Life Insurance Benefits Act [215 ILCS 185].

Section 760.280 Reporting Securities

Remittance of securities. Unless otherwise provided, all securities and commodities when

remitted to the State Treasurer shall:

a) be registered as "Treasurer of the State of Illinois"; or

b) be deposited into a new or existing securities or commodities account either in the

name of "Treasurer of the State of Illinois" or in a nominee account (aka "street

name" account) established by a vendor acting as a custodian for the

administrator; and

c) include all dividends, interest, warrants, or other rights, or associated cash in a

check payable to "Treasurer of the State of Illinois" unless otherwise directed by

the State Treasurer.

Section 760.290 Deceased Owner

a) Subject to the owner interest provisions of Section 15-210 of the Act, a deceased

owner cannot indicate interest in his or her property. [765 ILCS 1026/15-201]

1) Apparent owner interest shall include the activity of beneficiaries and

estate executors or other persons who have a legal or equitable right to

ownership or custody of the property when the apparent owner as listed in

the records of the holder is deceased.

2) Thus, while a deceased apparent owner can no longer indicate interest in

their own property, the new owner or his/her agent(s) may indicate interest

in the property and, thus, prevent abandonment.

b) If the apparent owner as listed in the records of the holder is deceased and the

abandonment period for the owner's property is greater than 2 years, then the


18



property, shall instead be presumed abandoned 2 years from the date of the

owner's last indication of interest in the property. This provision does not apply to

an amount owed by an insurance company on a life or endowment insurance

policy or an annuity contract that has matured or terminated. [765 ILCS

1026/15-201] This statutory provision does not apply to situations involving the

death of the apparent owner when the property is covered by either Section 15-

202(a)(2)(B) of the Act (tax-deferred retirement accounts) or Section 15-208(d) of

the Act (concerning securities), as in neither case is the abandonment period

greater than 2 years.

c) A holder who fails to report, pay, or deliver property within the time prescribed

by the Act shall not be required to pay interest or be subject to penalties if the

failure to report, pay, or deliver the property was due to lack of knowledge of the

death that established a shorter period of abandonment under the Act. [765 ILCS

1026/15-1204(c)]

d) The Act does not impose a new or separate duty on a holder to determine whether

an apparent owner is deceased. However, the Act does not relieve a holder of any

duty imposed by another law, whether state or federal, that may impose such a

duty.

e) Sections 15-202 and 15-208 of the Act both provide that when a holder, in the

ordinary course of its business, receives notice or an indication of the death of an

apparent owner, the holder shall attempt not later than 90 days after receipt of the

notice or indication to confirm whether the apparent owner is deceased.

1) These provisions are not intended to require a holder to independently

confirm the death of the apparent owner when the holder reasonably

believes that the apparent owner is deceased.

2) Instead, these provisions establish a 90-day deadline for a holder to

conduct any independent investigation or search to confirm the death of

the apparent owner.

3) EXAMPLE: If a holder learns that an apparent owner is listed on the

Social Security Administration's Death Master File (DMF) and the holder

is satisfied that the presumption of death from such a match is correct,

then the holder does not need to independently confirm the death of the

apparent owner.


18



Section 760.300 Apparent Owner Interest

a) Under Section 15-210(a) of the Act the period after which property is presumed

abandoned is measured from the later of:

1) the date the property is presumed abandoned under the Act; or

2) the latest indication of interest by the apparent owner in the property.

b) Under Section 15-210(b) of the Act, an indication of an apparent owner's interest

in property includes, but is not limited to:

1) a record communicated by the apparent owner to the holder or agent of

the holder concerning the property or the account in which the property is

held;

2) an oral communication by the apparent owner to the holder or agent of

the holder concerning the property or the account in which the property is

held, if the holder or its agent contemporaneously makes and preserves a

record of the fact of the apparent owner's communication;

3) presentment of a check or other instrument of payment of a dividend,

interest payment, or other distribution, or evidence of receipt of a

distribution made by electronic or similar means, with respect to an

account, underlying security, or interest in a business association;

4) activity directed by an apparent owner in the account in which the

property is held, including accessing the account or information

concerning the account, or a direction by the apparent owner to increase,

decrease, or otherwise change the amount or type of property held in the

account;

5) a deposit into or withdrawal from an account at a financial organization,

except for a recurring ACH debit or credit previously authorized by the

apparent owner or an automatic reinvestment of dividends or interest; and

6) subject to Section 15-210(e) of the Act, payment of a premium on an

insurance policy.


18



c) Owner-initiated Activity. Owner-initiated financial transactions or authenticated

owner-initiated administrative activity are an indication of an apparent owner's

interest in the property. A holder must maintain a record of owner-initiated

activity. These include, without limitation:

1) trading activity in the account;

2) depositing funds into the account or withdrawing funds from the account;

3) non-automated electronic distributions;

4) contacting the holder to discuss any account related matters;

5) sending the holder paperwork or documents related to the account;

6) meeting with (or otherwise interacting with) a financial advisor regarding

the account;

7) modifying the account profile;

8) sending the holder correspondence regarding the account whether via mail

or electronic means, including e-mail;

9) submitting an account service request online;

10) voting a proxy;

11) setting up the account for e-delivery; and,

12) accessing the account via the holder's website or other electronic means.

d) Holder-generated Activity. Apparent owner interest is distinguishable from

holder-generated activity such as, without limitation, crediting dividends, posting

account fees, and mailing account statements, which does not constitute apparent

owner interest.


18



1) Automatic financial or administrative transactions or activity, such as

automatic payments or distributions or automatic portfolio rebalancing,

shall not be considered apparent owner interest.

2) Non-return of Mail

A) Non-return of mail sent by the holder to an account owner does not

constitute apparent owner interest.

B) RPO Standard

i) Despite the general rule that non-return of mail does not

constitute apparent owner interest, certain types of property

are considered abandoned when first-class mail is returned

undelivered to the holder by the U.S. Postal Service. This is

commonly referred to as an RPO standard and is used in

Sections 15-202, 15-204 and 15-208 of the Act.

ii) When an RPO standard is used in the Act, the non-return of

mail still does not constitute apparent owner interest.

Instead, the presumption of abandonment is triggered by

the return of the mail instead of by the passage of time

without apparent owner interest.

iii) In Section 15-208 of the Act, a security is presumptively

abandoned on the earlier of 3 years after an RPO standard

is met or 5 years from the last indication of interest by the

apparent owner. The non-return of mail does not constitute

apparent owner interest for the 5-year presumption under

Section 15-208 of the Act.

e) Interest by a Person Other Than the Apparent Owner

1) An action by an agent or other representative of an apparent owner, other

than the holder acting as the apparent owner's agent, is presumed to be an

action on behalf of the apparent owner. [765 ILCS 1026/15-210(c)]

2) A communication with an apparent owner by a person other than the

holder or the holder's representative is not an indication of interest in the


18



property by the apparent owner unless a record of the communication

evidences the apparent owner's knowledge of a right to the property. [765

ILCS 1026/15-210(d)]

3) If an apparent owner is deceased, apparent owner interest shall include,

but is not limited to, activity of beneficiaries and estate executors or other

persons who have a legal or equitable right to ownership or custody of the

property.

f) Consolidated Statement Rule for Financial Organizations

1) If the apparent owner has another property with the holder to which

Section 201(6) of the Act applies, then activity directed by an apparent

owner in any other accounts, including loan accounts, at a financial

organization holding an inactive account of the apparent owner shall be

an indication of interest in all such accounts if the apparent owner

engages in one or more of the following activities:

A) the apparent owner undertakes one or more of the actions

described in this Section regarding any account that appears on a

consolidated statement with the inactive account;

B) the apparent owner increases or decreases the amount of funds in

any other account the apparent owner has with the financial

organization; or

C) the apparent owner engages in any other relationship with the

financial organization, including payment of any amounts due on a

loan.

2) This subsection (f) applies so long as the mailing address for the apparent

owner in the financial organization's books and records is the same for

both the inactive account and the active account. [765 ILCS 1026/15-

210(f)]

Section 760.310 Anti-Limitations Provision

a) Expiration of a period of limitation on an owner's right to receive or recover

property, whether specified by contract, statute, or court order, does not prevent


18



the property from being presumed abandoned or affect the duty of a holder under

the Act to file a report or pay or deliver property to the administrator. [765 ILCS

1026/15-610(a)]

b) This provision of the Act is a continuation of existing Illinois law. Under the

common law in Illinois, contracts could not serve as a limitation on the ability of

the State to take custody of unclaimed property. (See People ex rel. Callahan v.

Marshall Field & Co., 83 Ill. App. 3d 811, 818, 404 N.E.2d 368, 374 (1980) citing

Connecticut Mutual Life Insurance Co. v. Moore, 333 U.S. 541 (1948); Screen

Actors Guild, Inc. v. Cory (1979), 91 Cal. App. 3d 111, 154 Cal. Rptr. 77; and

State v. Jefferson Lake Sulphur Co. (1962), 36 N.J. 577, 178 A.2d 329.)

SUBPART C: REPORTING

Section 760.400 Holder Reporting Required

a) A holder of property presumed abandoned shall report to the administrator via the

internet in a format approved by the administrator, unless granted written

permission by the administrator to file a paper report.

b) A holder may contract with a third party to make the report required, but remains

responsible to the administrator for the complete, accurate, and timely reporting

of property presumed abandoned and for paying or delivering to the administrator

property described in the report.

c) The administrator will accept a report filed in the current National Association of

Unclaimed Property Administrators (NAUPA) standard format found on the

administrator's website: icash.illinoistreasurer.gov.

Section 760.410 Report Contents

a) The report required by Article 4 of the Act must:

1) be signed by or on behalf of the holder and verified as to its completeness

and accuracy;

2) if filed electronically, be in a secure format approved by the administrator

which protects confidential information of the apparent owner;


18



3) describe the property;

4) except for a traveler's check, money order, or similar instrument, contain

the name, if known, last-known address, if known, e-mail address, if

known, and Social Security number or taxpayer identification number, if

known or readily ascertainable, of the apparent owner of property with a

value of $5 or more;

5) for an amount held or owing under a life or endowment insurance policy,

annuity contract, or other property where ownership vests in a beneficiary

upon the death of the owner, contain the name and last-known address of

the insured, annuitant, or other apparent owner of the policy or contract

and of the beneficiary;

6) for property held in or removed from a safe-deposit box, indicate the

location of the property, where it may be inspected by the administrator,

and any amounts owed to the holder under Section 15-606 of the Act;

7) combine all dividend checks into one property for each reported account;

8) contain the commencement date for determining abandonment;

9) state that the holder has complied with the notice requirements of the Act;

and,

10) identify property that is a non-freely transferable security and explain why

it is a non-freely transferable security.

b) Holders may report property valued at less than $5 each in the aggregate. However,

the administrator may request that the holder provide information about the name,

address, Social Security number or taxpayer identification number of an apparent

owner of property with a value of less than $5 when the information is necessary to

verify or process a claim filed with the administrator by an apparent owner.

c) If a holder has changed its name while holding property presumed abandoned or is

a successor to another person that previously held the property for the apparent

owner, the holder must include in the report its former name or the name of the

previous holder, if any, and the known name and address of each previous holder

of the property. [765 ILCS 1026/15-402(d)]


18



Section 760.420 Filing Dates

a) Financial organizations, governments, governmental entities, and insurance

companies except life insurance companies must file a report before November 1

of each year that covers the 12 months preceding July 1 of that year.

b) All other business associations must file before May 1 of each year for the

immediately preceding calendar year.

Section 760.430 Early Reporting and Remittance of Property

a) A holder may pay or deliver property to the administrator before the property is

presumed abandoned under the Act if the holder:

1) provides the apparent owner of the property any notice required by

Section 15-501 of the Act and provides the administrator evidence of the

holder's compliance with any notice required by the Act;

2) includes with the payment or delivery a report regarding the property

conforming to the Act and this Section; and

3) first obtains the administrator's written consent to accept payment or

delivery of the property.

b) A holder's request for the administrator's consent to pay or deliver property

before the property is presumed abandoned under the Act must be in writing.

c) If the administrator fails to respond to the request not later than 30 days after

receipt of the request, the administrator is deemed to consent to the payment or

delivery of the property and the payment or delivery is considered to have been

made in good faith.

d) On payment or delivery of property under this Section, the property is presumed

abandoned. [765 ILCS 1026/15-608]

e) A holder that pays or delivers property to the administrator pursuant to Section

15-608 of the Act in good faith and substantially complies with Sections 15-501

and 15-502 of the Act is relieved of all liability that thereafter may arise or be


18



made in respect to the property to the extent of the value of the property so paid

or delivered. [765 ILCS 15-604(a)]

Section 760.440 Extensions

a) A holder may request an extension for filing. The request must be in writing and

must specify the proposed period of extension.

b) The request must include a reasonable cause for an extension.

1) Reasonable cause includes, without limitation, natural disaster, criminal

activity related to the holder's books and records, recent changes in the

form of ownership of the holder, etc.

2) Providing due diligence notices to apparent owners and other holder

actions required by the Act does not constitute reasonable cause.

c) Extension requests must be received by the administrator at least 15 business days

before the date the report would otherwise be due.

d) Not later than 10 business days after the date of the request, the administrator

shall respond to the request. The administrator may grant the request, deny the

request, or grant an extension for a different period of time.

e) If an extension is granted, the holder may pay or make a partial payment of the

amount the holder estimates ultimately will be due. The payment or partial

payment terminates accrual of interest on the amount paid. [765 ILCS 1026/15-

403(c)]

Section 760.450 Incomplete and Rejected Reports

If the administrator notifies a holder that a report is incomplete or incorrect, then a corrected

report must be filed by the holder no later than 20 calendar days after notification by the

administrator. The administrator may grant an extension in writing for good cause shown.

Section 760.460 Due Diligence Notice by Holder

a) Sections 15-501 and 15-502 of the Act specify when and how a holder must

provide notice to the apparent owner of property presumed abandoned. This


18



notice process is a "due diligence notice" from the holder to the apparent owner.

A due diligence notice is intended to provide an opportunity for an apparent

owner to indicate interest in the property presumed abandoned prior to such

property being reported and remitted to the administrator.

b) Unless otherwise provided by the Act or these rules, the holder of property

presumed abandoned shall send to the apparent owner a due diligence notice by

first-class U.S. Mail between 60 days and one year before reporting the property

(see 765 ILCS 1026/15-501(a)).

c) A holder does not need to send notice by first-class U.S. Mail if any of the

following are true:

1) the property is valued at less than $50;

2) the holder does not have in its records an address for the apparent owner

that is sufficient for delivery of first-class U.S. Mail;

3) the holder's records indicate that the address for the apparent owner is

invalid; or,

4) the holder sends notice by certified U.S. Mail.

d) If the holder has in its records an e-mail address for an apparent owner and the

apparent owner has consented to receive e-mail from the holder, then unless the

holder reasonably believes the e-mail address is invalid, the holder shall send a

due diligence notice by e-mail to the apparent owner in addition to any other due

diligence notice required by the Act (see 765 ILCS 1026/15-501(b)).

e) Certified Mail Due Diligence for Securities Valued at $1,000 or More

1) If the property presumed abandoned is securities valued at $1,000 or more

and the holder has in its records an address for the apparent owner that the

holder's records do not disclose to be invalid and is sufficient to direct the

delivery of U.S. Mail to the apparent owner, then the due diligence notice

shall be sent by certified U.S. Mail (see 765 ILCS 1026/15-501(c)). If the

apparent owner is a natural person, then the holder should utilize Certified

Mail Restricted Delivery to direct the due diligence notice to the apparent

owner or the apparent owner's authorized agent.


18



2) If the holder sends a due diligence notice by certified mail, then the holder

does not need to send a due diligence notice by first-class U.S. Mail.

3) A signed return receipt in response to a notice sent by certified U.S. Mail

shall constitute a record communicated by the apparent owner to the

holder concerning the property or the account in which the property is

held, and thus shall constitute an indication of interest by the apparent

owner in the property under Section 15-210 of the Act.

f) A holder may contract with a third party to provide the required due diligence

notice to an apparent owner under the Act and these rules.

1) Whether or not the holder contracts with a third party to provide required

due diligence notices, the holder remains responsible for ensuring that any

required due diligence notices are provided prior to the reporting and

remitting of property presumed abandoned to the administrator.

2) If a holder contracts with a third party to provide required due diligence

notices and the due diligence notice is being sent after the date the

property was presumed abandoned under the Act, then, pursuant to

Section 15-1302 of the Act, neither the holder nor the third party may

charge the apparent owner a fee to indicate an interest in property

presumed abandoned or to otherwise prevent the reporting and remitting

of property presumed abandoned to the administrator.

g) Contents of Due Diligence Notice

1) A due diligence notice by a holder must contain a heading that reads

substantially as follows: "Notice. The State of Illinois requires us to notify

you that your property may be transferred to the custody of the State

Treasurer if you do not contact us before (insert date that is 30 days after

the date of this notice)."

2) A due diligence notice by a holder must:

A) identify the nature and, except for property that does not have a

fixed value, the value of the property that is the subject of the

notice;


18



B) state that the property will be turned over to the State Treasurer;

C) state that after the property is turned over to the State Treasurer an

apparent owner that seeks return of the property may file a claim

with the State Treasurer;

D) state that property that is not legal tender of the United States may

be sold by the State Treasurer;

E) provide instructions that the apparent owner must follow to prevent

the holder from reporting and paying or delivering the property to

the State Treasurer; and,

F) provide the name, address, and e-mail address or telephone number

to contact the holder.

3) In a due diligence notice, the holder may also list a website where

apparent owners may obtain more information about how to prevent the

holder from reporting and paying or delivering the property to the State

Treasurer.

h) Holder Deduction of Costs of Due Diligence Notices

1) A holder that reports and remits money may deduct from total amounts

remitted, the actual costs of due diligence notices.

2) The deduction shall consist of the cost of envelopes, postage, and

stationery. No other costs may be deducted.

3) For purposes of holder deductions for due diligence mailings, postage

includes amounts paid to the United States Postal Service for first class

United States mail and certified United States mail.

4) A holder may be required to document or certify to the costs incurred and

deducted.

Section 760.470 Retention of Records by Holder


18



a) A holder is required to retain records for 10 years after the later of the date the

report was filed or the last date a timely report was due to be filed.

b) The records must contain:

1) the information required to be included in the report;

2) the date, place, and nature of the circumstances that gave rise to the

property right;

3) the amount or value of the property;

4) the last address of the apparent owner, if known to the holder;

5) sufficient records of items which were not reported as unclaimed, to allow

examination to determine whether the holder has complied with the Act.

EXAMPLE: Records related to property when the holder gave express

notice to the administrator of a dispute regarding the property. [765 ILCS

1026/15-610(b)]; and

6) a record of the instruments while they remain outstanding indicating the

state and date of issue if the holder sells, issues, or provides to others for

sale or issue in this State traveler's checks, money orders, or similar

instruments, other than third-party bank checks, on which the holder is

directly liable.

c) If a holder fails to maintain records required by Section 15-404 of the Act, the

administrator may determine the value of property due using a reasonable

method of estimation based on all information available to the administrator,

including extrapolation and use of statistical sampling when appropriate and

necessary, consistent with examination procedures and standards in this Part.

d) Both the records retention period of Section 15-404 of the Act and the statute of

limitations in Section 15-610(b) of the Act are 10 years. However, the statute of

limitations only applies after the holder specifically identified the property in a

report filed with the administrator or gave express notice to the administrator of a

dispute regarding the property. [765 ILCS 1026/15-610(b)] If the statute of

limitations has been tolled because the holder failed to either report property or


18



provide express notice to the administrator and the holder fails to maintain

sufficient records of items that were not reported as unclaimed, to allow

examination to determine whether the holder has complied with the Act [765

ILCS 1026/15-404(5)], the administrator may use estimation in an examination of

that holder pursuant to Section 15-1006 of the Act and this Part.

SUBPART D: NOTICE TO APPARENT OWNERS BY THE ADMINISTRATOR

Section 760.500 Notices by United States Mail

a) The administrator shall send at least one written notice by first-class U.S. Mail to

each apparent owner of unclaimed property held by the administrator and valued

at $100 or more.

b) However, the administrator shall not send a notice under this Section by first-class

U.S. Mail if the administrator reasonably believes that a mailing by first-class

U.S. Mail would not be received by the apparent owner.

c) In the case of a security held in an account for which the apparent owner had

consented to receiving e-mail from the holder, the administrator shall send notice

by e-mail if the e-mail address of the apparent owner is known to the

administrator, instead of by first-class U.S. Mail. [765 ILCS 1026/15-503(b)(1)]

Section 760.510 E-Mail Notices

a) Whenever the administrator has an e-mail address for an apparent owner of

unclaimed property held by the administrator and valued at $100 or more and the

administrator does not know that e-mail address to be invalid, the administrator

shall send at least one notice to the apparent owner by e-mail if the administrator

did not send a written notice by first-class U.S. Mail. (See 765 ILCS 1026/15-

503(b)(2).)

b) In addition to any notice mandated by the Act, the administrator may send an

additional notice to an apparent owner to any e-mail address for the apparent

owner that the administrator does not know to be invalid.

c) When practicable, e-mail notices from the administrator shall provide a hyperlink

to the website maintained by the administrator.


18



Section 760.520 Newspaper Notices

a) At least once every 6 months, the administrator shall cause to be published in at

least one English language newspaper of general circulation in each county in

this State a notice concerning the unclaimed property program.

b) The newspaper notice shall include the following information:

1) the total value of property received statewide by the administrator during

the preceding 6-month period;

2) the total value of claims paid by the administrator statewide during the

preceding 6-month period;

3) the address of the unclaimed property website maintained by the

administrator;

4) a telephone number and e-mail address to contact the administrator to

inquire about or claim property; and

5) a statement that computers may be available at a local public library to

search for unclaimed property. [765 ILCS 1026/15-503(c)(1)]

c) The administrator may contract with a vendor to cause to be published the

required newspaper notices. A contract concerning newspaper notices may, but is

not required to, be part of a more comprehensive marketing services contract or

specific contract.

d) Newspaper notices may include other information at the discretion of the

administrator.

e) The administrator may cause additional notices or advertisements to be published

in newspapers and print publications other than the required notices. The

additional notices do not need to contain the mandatory information listed in

subsection (b).

Section 760.530 Website


18



a) The administrator shall maintain a website accessible by the public and

electronically searchable that contains the names reported to the administrator of

apparent owners for whom property is being held by the administrator.

b) The administrator does not need to list property on the unclaimed property

website when:

1) no owner name was reported;

2) a claim has been initiated or is pending for the property;

3) the administrator has made direct contact with the apparent owner of the

property; and

4) in other instances in which the administrator reasonably believes

exclusion of the property is in the best interests of both the State and the

owner of the property. [765 ILCS 1026/15-503(c)(1)]

c) The administrator's unclaimed property website shall include an online claim

form and instructions for filing a claim with the administrator. The administrator

shall also make available a printable claim form with instructions for its use. [765

ILCS 1026/15-503(d)]

d) The administrator may include on the website the names and addresses of

apparent owners of property held by the administrator. [765 ILCS 1026/15-

1401(d)]

e) In addition to the required website, the administrator may utilize other websites,

including any websites endorsed by the National Association of Unclaimed

Property Administrators (NAUPA), to promote the unclaimed property program

and seek to reunite owners with their unclaimed property.

Section 760.540 Tax Return Identification of Apparent Owners

The administrator will work with the Illinois Department of Revenue (DOR) to facilitate the

return of unclaimed property to Illinois taxpayers through data sharing as required by the Act.

This data sharing is intended to update contact information for apparent owners in the

administrator's records, to allow the administrator to return some types of unclaimed property


18



directly to apparent owners without a claim being filed, and to otherwise facilitate the return of

unclaimed property in the custody of the administrator to the legal owners.

Section 760.550 Updating Apparent Owner Data

a) The administrator may utilize publicly and commercially available databases, as

well as information obtained through data sharing agreements authorized by the

Act, to find and update or add information for apparent owners of property held

by the administrator.

b) The administrator may, but is not required to, update or add a mailing address or

e-mail address for an apparent owner prior to sending notices required by the Act.

c) If a required notice has already been sent by the administrator, the administrator

does not need to send a new written notice merely because a mailing address or e-

mail address for an apparent owner has been subsequently updated or added.

Section 760.560 Other Discretionary Means of Providing Notice

a) Paid Advertising

1) The administrator may use paid advertising to increase awareness of the

unclaimed property program, provide notice to persons who may be the

owners of unclaimed property in the custody of the administrator, or to

otherwise facilitate the return of unclaimed property to legal owners.

2) Any paid advertising shall conform to the requirements of Section 5-20 of

the State Officials and Employees Ethics Act [5 ILCS 430].

b) Direct Contact

1) The administrator may use contact information reasonably believed to be

accurate to attempt to directly contact apparent owners of property held by

the administrator.

2) When directly contacting an apparent owner, the administrator may reveal

additional information concerning the apparent owner's property if the

administrator believes the information will assist in identifying and


18



returning property to the owner and does not disclose personal information

as defined in the Personal Information Protection Act [815 ILCS 530].

3) Direct contacts include, but are not limited to, telephone calls, in-person

meetings, direct electronic communications, targeted social media

contacts, and similar methods of contact.

c) Broadcast Media

1) The administrator may make agreements with broadcast media outlets to

use live telethons, call-in programs, and similar events of limited duration

to both promote the unclaimed property program authorized by the Act

and to notify owners of the existence of unclaimed property.

2) These broadcasts should be considered the dissemination of news and

should not be considered a public service announcement or advertisement.

d) Contractual Vendors

1) The administrator may contract with one or more vendors that provide

websites, including any websites endorsed by the National Association of

Unclaimed Property Administrators (NAUPA), to promote the unclaimed

property program and seek to reunite owners with their unclaimed

property.

2) The administrator may contract with one or more vendors that provide

applications to assist apparent owners in identifying and claiming property

in the custody of the administrator. The vendors shall be selected by a

competitive request for proposals pursuant to the Office of the Treasurer

Procurement Rules [44 Ill. Adm. Code 1400]. Compensation must

conform with the restrictions in Article 13 of the Act concerning

agreements to locate property of apparent owners held by the

administrator.

Section 760.570 Confidentiality

The administrator may include in published notices, printed publications, telecommunications,

the Internet, or other media and on the website or in the database additional information

concerning the apparent owner's property if the administrator believes the information will


18



assist in identifying and returning property to the owner and does not disclose personal

information as defined in the Personal Information Protection Act [815 ILCS 530]. [765 ILCS

1026/15-1401(d)]

SUBPART E: CLAIMS

Section 760.600 Claims

A person claiming to be the owner of property held under the Act by the administrator or of the

proceeds from the sale of property may file a claim for the property or proceeds from the sale of

property on a form prescribed by the administrator and that is available on the Administrator's

website at icash.illinoistreasurer.gov. [765 ILCS 1026/15-903]

Section 760.610 Burden of Proof

a) The administrator is the custodian for property delivered to the State under the

Act and is responsible for the safekeeping of that property. Therefore, any person

who files a claim for any property held by the administrator pursuant to the Act

shall bear the burden of proof in establishing that person is the lawful owner of

the property or has an interest in the property.

b) The administrator will release the property to a claimant after the person

establishes his or her ownership of the property or an interest in the property by a

preponderance of the evidence.

c) Notwithstanding the requirements of subsection (a) and (b), the administrator may

waive those requirements if a claimant satisfies the requirements for payment or

delivery of property under Section 760.620 or 760.630.

Section 760.620 Filing of Claims

a) Claimants may file claims with the administrator either in writing on forms

prescribed by the administrator or through completion of a form on the

administrator's website.

b) Claims shall be verified or signed by the claimant under penalty of perjury.


18



c) If the subject property is valued at more than $500, the signatures of the claimants

shall be notarized by a notary public or be guaranteed by an officer of a bank or

financial institution with which the claimants currently do business.

d) If the value of the subject property is less than $500:

1) a fully completed owner claim and owner indemnification form, submitted

to the administrator either in writing or through completion of a form on

the administrator's website, will be accepted as prima facie evidence of

validity of the claim, unless the administrator has facts within his or her

knowledge that would tend to rebut the claim; and

2) the administrator may waive the requirement to complete a claim form and

may pay or deliver property directly to a claimant if the person receiving

the property is shown to be the apparent owner of the property included on

a report filed pursuant to the Act, and the administrator reasonably

believes the claimant is entitled to receive the property or payment.

e) If the property being claimed is a two-party check, in addition to submitting a

fully completed claim form, the claimant must:

1) submit the original check;

2) submit verification in the form of an affidavit from the issuing agent of the

check that the claimant is the true owner of the check and the issuing agent

would then pay the value of the check to the claimant if the issuing agent

had not remitted the funds to the administrator;

3) post a surety bond, issued by an insurance company with an A+ or A

rating by A.M. Best and Company, in the amount of the check;

4) submit a release of interest executed by all persons not claiming the

property who were listed as apparent owners by the holder;

5) submit an order from a court of competent jurisdiction indicating the

claimant is the owner of the unclaimed property; or


18



6) submit an indemnification form if the administrator does not have facts

within its knowledge that would tend to rebut the claim and all the

following apply:

A) the original check is missing or has been destroyed;

B) the original check is older than 14 years;

C) incomplete information was reported by the holder and is no longer

obtainable; and

D) the amount of the two-party check is $500 or less.

f) A claim will be considered complete when a claimant has provided all the

information and documentation requested by the administrator as necessary to

establish legal ownership and that information or documentation is entered into

the unclaimed property system. Unless extended for reasonable cause, the

administrator shall issue a decision no later than 90 days after a claim is complete.

g) If a claimant is unable to provide documentation sufficient to establish ownership

by a preponderance of the evidence, the claimant may request that the

administrator formally deny the claim in order to allow the claimant to commence

a contested case, pursuant to Article 10 of the Illinois Administrative Procedure

Act [5 ILCS 100], for review of the administrator's decision.

h) Closing Claims

1) If a claimant fails to provide information and documentation necessary to

establish legal ownership of the property by a preponderance of the

evidence and the claim is inactive for at least 90 days, the administrator

may close the claim without issuing a final decision.

2) If the claimant makes a request in writing for a final decision prior to the

administrator's closing of the claim, the administrator shall issue a final

decision.

3) If, after a claim is closed, a claimant subsequently provides additional

information or documentation concerning the same property, the


18



administrator shall open a new claim and shall incorporate by reference all

information and documentation provided for the closed claim.

i) Not later than one year after filing a claim, a claimant may commence a contested

case pursuant to the Illinois Administrative Procedure Act to establish a claim by

the preponderance of the evidence after either receiving notice of the denial from

the administrator or the claim is deemed denied. [765 ILCS 1026/15-906]

Section 760.630 Tax Return Identification of Apparent Owners

a) At least annually the administrator shall notify the Illinois Department of Revenue

of the names of apparent owners of abandoned property.

1) The administrator shall also provide to DOR the social security numbers

of apparent owners of abandoned property, if available. [765 ILCS

1026/15-503(e)]

2) The administrator may also provide DOR with other data, such as the

mailing address of the apparent owner.

3) The administrator shall not provide DOR with the name of an apparent

owner of unclaimed property if a claim has been filed for that property

with the administrator and the claim has not been denied or closed.

4) The administrator does not need to notify DOR of the names or social

security numbers of apparent owners of abandoned property if he or she

reasonably believes that DOR will be unable to provide information that

would provide sufficient evidence to establish that the person in DOR's

records is the apparent owner of unclaimed property in the custody of the

administrator.

5) EXAMPLE: The administrator does not need to notify DOR of the name

of an apparent owner of unclaimed property in the custody of the

administrator when:

A) the administrator has previously notified DOR of the name of an

apparent owner, DOR was unable to match the name to any person

in DOR's records, and the administrator reasonably believes that

DOR would continue to not be able to match the name;


18



B) the administrator's records contain the name of an apparent owner

without an address or social security number and that name is so

common as to prevent an unique match with DOR records;

C) the administrator has reason to believe that the apparent owner is

deceased; or

D) even if DOR provided a current address for the apparent owner, the

administrator would not be able to deliver the unclaimed property

to that owner because the property is jointly owned, is an escrow

account, or has other legal impediments to clear ownership of the

property by a unique owner.

b) DOR shall notify the administrator if any person matching the name of an

apparent owner has filed an Illinois income tax return and shall provide the

administrator with the last known address and/or additional addresses of the

person as it appears in DOR records, except as prohibited by federal law.

c) The administrator may deliver property or pay the amount owing to a person

matched under this Section without the person filing a claim if the following

conditions are met:

1) the value of each individual property that is owed the apparent owner is

$2,000 or less;

2) the property is not either tangible property or securities;

3) there are no legal impediments to delivering the property or paying the

amount owed to an unique apparent owner;

4) the last known address for the apparent owner according to DOR records

is less than 12 months old; and

5) the administrator has evidence sufficient to establish that the person who

appears in DOR records is the owner of the property and the owner

currently resides at the last known address from DOR.


18



d) If the name, address and social security number of the apparent owner in the

records of the administrator and DOR match, there is a presumption that the

administrator has sufficient evidence to deliver property or pay the amount owing

to the apparent owner.

e) After receiving a match from DOR, the administrator may use additional

databases to verify the identity of the person and that the person currently resides

at the last known address. The administrator may utilize publicly and

commercially available databases to find and update or add information for

apparent owners of property held by the administrator. [765 ILCS 1026/15-

503(f)]

f) In determining whether there is sufficient evidence to deliver property or pay the

amount owing to the apparent owner, the administrator may rely upon evidence

beyond the match provided by DOR.

g) When the name of an apparent owner has an unique match with DOR records and

the property owed to the apparent owner is greater than $2,000, or is tangible

property or securities, the administrator shall provide notice to the person,

informing the person that he or she is the owner of abandoned property held by

the State and may file a claim with the administrator for return of the property.

The administrator may provide the notice by email, U.S. Mail, telephone, direct

contact, or any combination of these methods.

Section 760.640 Crediting Income or Gain to Owner's Account

a) If property other than money is delivered to the administrator, the owner is

entitled to receive from the administrator income or gain realized or accrued on

the property before the property is sold. [765 ILCS 1026/15-607(a)] (See Canel v.

Topinka, 212 Ill. 2d 311, 818 N.E.2d 311 (2004).)

b) The administrator will pay interest on an interest-bearing demand, savings, or

time deposit paid or delivered to the administrator after July 1, 2018.

c) The interest shall be paid to the owner at the lesser of:

1) The percentage increase in the Consumer Price Index for All Urban

Consumers (CPI-U) as reported by the U.S. Department of Labor Bureau

of Labor Statistics for all items; or


18



2) The rate the property earned while in the possession of the holder and

reported to the administrator.

d) Interest begins to accrue when the property is delivered to the administrator and

ends on the earlier of the expiration of 10 years or when payment is made to the

owner. [765 ILCS 1026/15-607(c)]

e) Interest shall accrue monthly at the applicable rate.

f) If the holder does not report a rate of interest earned by the property while in the

possession of the holder, the administrator will not pay interest. The Act requires

the administrator to pay the lower of the reported interest rate or the current CPI.

If no interest is reported, the lower rate will be zero.

Section 760.650 Finders

a) No person or company shall be entitled to a fee for discovering presumptively

abandoned property until it has been in the custody of the administrator for at

least 24 months. Fees for discovering property that has been in the custody of the

administrator for more than 24 months shall be limited to not more than 10% of

the amount collected. (See 765 ILCS 1026/15-1302.)

b) Notwithstanding anything in this Section to the contrary, a licensed attorney may

pursue a claim for recovery of specifically identified property held by the

administrator or to contest the administrator's denial of a claim for recovery of

the property provided he or she has an attorney-client relationship with the

apparent owner. [765 ILCS 1026/15-1302(f)]

c) For claims in which a finder is assisting an apparent owner, the following shall be

submitted to the administrator:

1) a signed, dated and notarized copy of the contract between the finder and

the apparent owner that satisfies the requirements of the Act, specifies the

obligations of the parties, and establishes the fee arrangement between the

finder and claimant; and


18



2) if the finder charges a contingent fee, a copy of the active private detective

license issued by the Illinois Department of Financial and Professional

Regulation to the finder.

Section 760.660 Property Subject to Recovery by Another State

a) If the administrator is aware that property held under the Act is subject to a

superior claim of another state, the administrator shall either report and deliver the

property to the other state or return the property to the holder for delivery to the

other state.

b) A claim by another state to recover property under this Section must be presented

in a form prescribed by the administrator, unless the administrator waives

presentation of the form.

c) The administrator shall decide a claim under this Section not later than 90 days

after it is presented.

d) To the extent permitted under the law of the other state, the administrator may

require another state to agree to indemnify the administrator and the State of

Illinois and its agents, officers and employees against any liability on a claim to

the property.

Section 760.670 Debt Collection Agencies

a) A debt collection agency shall initiate its own claims for unclaimed property in

the custody of the administrator. The administrator will not initiate claims for debt

collection agencies.

b) Debt collection agencies shall submit citations to discover assets to the

administrator at least 30 days in advance of the return date.

c) Unclaimed property held by the administrator for a debtor will be held pursuant to

a citation to discover assets for up to 90 days.

d) Claims submitted by debt collection agencies will be closed after 90 days without

the submission of a valid turnover order from a court of competent jurisdiction.


18



e) Claims submitted by debt collection agencies will be paid after receipt of a valid

turnover order from a court of competent jurisdiction.

Section 760.680 Holder Reimbursement

a) A holder that pays money to the administrator may file a claim for reimbursement

from the administrator of the amount paid if the holder:

1) paid the money to the administrator in error; or

2) after paying the money to the administrator, paid money to a person the

holder reasonably believed to be the legal owner.

b) If a claim for reimbursement is made for a payment made on a negotiable

instrument, the holder must submit proof that payment was made to a person the

holder reasonably believed to be the legal owner of the property. The holder may

claim reimbursement even if the payment was made to a person whose claim was

made after expiration of a period of limitation on the owner's right to receive or

recover property, whether specified by contract, statute or court order.

c) If a holder is reimbursed by the administrator, the holder may also recover any

income or gain that would have been paid by the administrator to the owner on

an owner claim provided the holder paid the earned income or gain to the owner.

d) A holder that delivers property other than money to the administrator may file a

claim for return of the property from the administrator if:

1) the holder delivered the property to the administrator in error; or

2) the apparent owner has claimed the property from the holder.

e) If a claim for return of property is made, the holder shall include with the claim

evidence sufficient to establish that the apparent owner has claimed the property

from the holder or that the property was delivered by the holder to the

administrator in error.

f) The administrator may make a determination that an affidavit submitted by a

holder is evidence sufficient to establish that the holder is entitled to

reimbursement or to recover property under this Section.


18



g) A holder is not required to pay a fee or other charge for reimbursement or return

of property.

h) The administrator shall allow or deny a holder's claim not later than 90 days

after the claim is complete and give the holder notice in a record of the decision.

The administrator may grant an extension for reasonable cause.

i) A claim will be considered complete when a holder has provided all the

information and documentation requested by the administrator as necessary to

establish legal ownership and that information or documentation is entered into

the administrator's unclaimed property system.

j) If a holder fails to provide all the information and documentation requested by

the administrator as necessary to establish legal ownership of the property and

the claim is inactive for at least 90 days, the administrator may close the claim

without issuing a final decision. However, if the claimant makes a request in

writing for a final decision prior to the administrator's closing of the claim, the

administrator shall issue a final decision.

k) The holder may initiate a proceeding under Article 10 of the Illinois

Administrative Procedure Act for review of the administrator's decision on the

earlier of 30 days following receipt of the notice of the administrator's decision or

120 days following the filing of a claim. [765 ILCS 1026/15-605]

Section 760.690 Securities Sale and Claims

a) Sale of Securities

1) The administrator may not sell a security prior to attempting to provide

notice as provided for in Section 15-503 of the Act.

2) Unless the administrator reasonably determines it would be in the best

interests of the owner for the sale to occur sooner, the administrator may

not sell or otherwise liquidate a security until 3 years after the

administrator receives the security.

A) Instances in which it would be in the best interest of the owner for

a sale of securities to occur prior to the expiration of the 3-year


18



period include, without limitation: responding to a tender offer; a

bankruptcy filing; a business liquidation; and instances in which

fees will significantly deplete the value.

B) If the administrator sells a security prior to the expiration of the 3-

year period, the administrator shall document in a record the

reasons for the sale.

3) Unless otherwise provided in the Act or this Part, the administrator may

sell a security at any time after 3 years after the administrator receives the

security.

A) The administrator may not sell a security listed on an established

stock exchange for less than the price prevailing on the exchange

at the time of sale.

B) The administrator may sell a security not listed on an established

exchange by any commercially reasonable method. [765 ILCS

1026/15-702(b)]

4) Securities will not be sold when a claim has been filed with the

administrator by an apparent owner for those securities.

A) However, the apparent owner may direct the administrator to

dispose of the securities by sale and remit the net proceeds to the

apparent owner.

B) Upon denial of a claim, the administrator may dispose of the

securities as provided in the Act and this Part.

C) The administrator may also dispose of the securities as provided in

the Act and this Part if, after being requested by the administrator,

the apparent owner fails to provide necessary and sufficient

information to allow the administrator to transfer the securities

within 30 days after the administrator's request.

b) Recovery of Securities or Value by Owner


18



1) If the administrator sells a security before the expiration of 3 years after

delivery of the security to the administrator, an apparent owner that files a

valid claim under the Act for the security before the 3-year period expires

is entitled, at the option of the owner, to receive:

A) replacement of the security;

B) the market value of the security at the time the claim is filed, plus

dividends, interest, and other increments on the security up to the

time the claim is paid; or

C) the net proceeds of the sale of the security, plus dividends, interest,

and other increments on the security up to the time the security

was sold. [765 ILCS 1026/15-703(a)]

2) Replacement of the security or calculation of market value under

subsection (b)(1) must take into account a stock split, reverse stock split,

stock dividend, or similar corporate action. [765 ILCS 1026/15-703(b)]

3) A person that makes a valid claim under the Act for a security after

expiration of 3 years after delivery of the security to the administrator is

entitled to receive:

A) the security the holder delivered to the administrator, if it is in the

custody of the administrator, plus dividends, interest, and other

increments on the security up to the time the administrator delivers

the security to the person; or

B) the net proceeds of the sale of the security, plus dividends, interest,

and other increments on the security up to the time the security

was sold. [765 ILCS 1026/15-703(c)]

SUBPART F: EXAMINATIONS

Section 760.700 Authority

Pursuant to the Act the administrator may, at reasonable times and on reasonable notice, examine

the records of any person to determine whether the person has complied with the Act even if the

person believes it is not in possession of any property that must be reported, paid, or delivered


18



under the Act. [765 ILCS 1026/15-1002(1)]

Section 760.710 Purpose

a) The goal of an unclaimed property examination shall be to determine whether a

person is in compliance with the Act. Unclaimed property is reported to the State

of Illinois pursuant to the Act and the federal common law as established by the

U.S. Supreme Court (Texas v. New Jersey, 379 U.S. 674 (1965); Pennsylvania v.

New York, 407 U.S. 206 (1972); and Delaware v. New York, 507 U.S.490

(1993)).

b) The administrator's goal in every examination is to be predictable, fair and

consistent while determining the historical compliance of the person being

examined, and to encourage and facilitate that person's ongoing and future

compliance with the Act.

Section 760.720 Contract Auditors

a) The administrator may contract with a person to conduct unclaimed property

examinations to determine compliance with the Act. Such a contract shall be

awarded pursuant to a request for proposals issued in compliance with the Office

of the Treasurer Procurement Rules (44 Ill. Adm. Code 1400). [765 ILCS

1026/15-1009(a)]

b) A contract to conduct an examination may provide for compensation of the

person based on a fixed fee, hourly fee, or contingent fee. [765 ILCS 1026/15-

1009(b)(1)]

1) A contingent fee arrangement may not provide for a payment that exceeds

15% of the amount or value of property paid or delivered as a result of the

examination. [765 ILCS 1026/15-1009(b)(2)]

2) As authorized in the State Officers and Employees Money Disposition Act

[30 ILCS 230/2(a)(3.5)], the administrator may permit the deduction of

fees from property recovered during an unclaimed property examination

prior to depositing funds received under the Act into the Unclaimed

Property Trust Fund. [765 ILCS 1026/15-1009(b)(3)]


18



c) A contract with a person to conduct an examination is a public record under the

Freedom of Information Act. [765 ILCS 1026/15-1009(c)]

d) An auditor shall collectively possess sufficient training and experience to

adequately perform unclaimed property examinations.

e) An auditor shall not engage in any unclaimed property examination to determine

compliance with the Act without written authorization from the administrator.

f) An auditor shall report in writing to the administrator at least monthly on the

status of all unclaimed property examinations the auditor has been authorized to

perform by the administrator.

Section 760.730 Holder Advocates

a) A person subject to examination may retain third party advocates to assist them in

the examination process.

b) The retention of an advocate is no basis to delay the commencement of the

examination and the administrator will not delay the examination so that the

advocate may conduct a review or its own audit of the books and records of the

person subject to examination in advance of the administrator's examination.

c) The administrator will, to the extent practicable, cooperate with the person subject

to examination and its advocate and keep both apprised of records requests,

interviews, and the progress of the audit in general.

Section 760.740 Notice of Examination

a) All unclaimed property examinations begin with an official notice of examination

letter.

b) A notice letter shall notify the person subject to examination that:

1) its books and records (including those belonging to subsidiary and related

entities or maintained by a third party that has contracted with the person)

are subject to examination;

2) identify the assigned auditor; and


18



3) include auditor contact information.

c) A notice letter may either be sent directly to the person subject to examination by

the administrator or to the auditor assigned to the examination for delivery to the

person subject to examination.

Section 760.750 Entrance Conference

a) Once an examination is assigned and written notice of an examination is provided

to the person subject to examination, an entrance conference will be scheduled

with the auditor and representatives of the person subject to examination. A

representative of the administrator may, but is not required, to participate in an

entrance conference. If the person subject to examination refuses to schedule an

entrance conference with the auditor, the auditor shall inform the administrator of

that refusal.

b) During the entrance conference, the auditor shall, to the extent practicable:

1) identify of the types of property that will be subject to the examination and

the time period covered by the examination;

2) discuss an examination work plan, a tentative schedule, and any potential

scoping issues;

3) provide contact information for both the auditor and the administrator;

4) if a draft has not been presented prior to the entrance conference, provide

the person subject to examination a draft confidentiality agreement;

5) notify the person subject to examination of his or her ability to request an

informal conference with the administrator pursuant to Section 15-1008 of

the Act;

6) advise the person subject to examination that the administrator and not the

auditor makes determinations concerning that person's liability under the

Act and that interpretations of the Act are made by the administrator;


18



7) request records and materials necessary to proceed with the next steps of

the examination;

8) explain the requirement to provide a due diligence notice to the apparent

owner of property presumed abandoned; and

9) explain that, unless otherwise agreed to in writing by the administrator, the

person subject to examination shall remit to the auditor any unclaimed

property identified during the examination that is owed to the State of

Illinois.

Section 760.760 Examination Guidelines

a) The auditor and the person subject to examination shall act in good faith to

conduct the examination under the terms and within the time frame established in

the entrance conference.

b) During the examination, the auditor may make subsequent requests, to the person

subject to examination, for additional books and records required to complete the

examination.

1) The auditor shall submit record requests to the person subject to

examination in writing or, if the request is made verbally, shall follow up

with written documentation of the request.

2) Record requests shall have reasonable deadlines in order to move the

examination forward and avoid unnecessary delays.

3) The auditor shall provide a reasonable timeframe for the person subject to

examination to respond to the request based on the type and extent of the

information requested and other relevant facts and circumstances.

4) The auditor shall provide confirmation of receipt with reasonable

projected response times to submissions received from the person subject

to examination.

c) The examination shall not be limited to a review of work papers, compilations, or

record summaries prepared by the person subject to examination or an advocate,


18



but shall include access to the original books and records deemed by the

administrator to be necessary to ascertain compliance with the Act.

d) The auditor shall properly document the examination and make the working

papers gathered during the unclaimed property examination available for review

by the administrator. The working papers shall include planning information and

all related calculations, statistical analyses, and summarizations.

Section 760.770 Confidentiality Agreement

a) A person subject to examination may require, as a condition of disclosure of the

records of the person to be examined, that the administrator, if the administrator

is performing the examination, or the administrator's agent execute and deliver to

the person to be examined a confidentiality agreement that:

1) is in a form that is reasonably satisfactory to the administrator; and

2) requires the person having access to the records to comply with the

provisions of Article 14 of the Act (Confidentiality and Security of

Information) applicable to the person. [765 ILCS 1026/15-1402]

b) If the person subject to examination and the auditor are unable to enter into a

confidentiality agreement within 60 calendar days from the date an agreement

reasonably satisfactory to the administrator was first presented to the person

subject to the examination by the auditor or the administrator, the examination

may commence without a confidentiality agreement in place and the parties shall

rely on the confidentiality provisions of Article 14 of the Act.

Section 760.780 Evidence of Unpaid Debt or Undischarged Obligation

a) A record of a person subject to examination showing an unpaid debt or

undischarged obligation is prima facie evidence of the debt or obligation. [765

ILCS 1026/15-1005(a)]

b) A person subject to examination may establish by a preponderance of the

evidence that there is no unpaid debt or undischarged obligation for a debt or

obligation or that the debt or obligation was not, or no longer is, a fixed and

certain obligation of the person subject to examination. [765 ILCS 1026/15-


18



1005(b)] Thus, the prima facie evidence may be rebutted by the person subject to

examination.

c) A person subject to examination may overcome prima facie evidence by

establishing by a preponderance of the evidence that a check, draft, or similar

instrument was:

1) issued as an unaccepted offer in settlement of an unliquidated amount;

2) issued but later was replaced with another instrument because the earlier

instrument was lost or contained an error that was corrected;

3) issued to a party affiliated with the issuer;

4) paid, satisfied, or discharged;

5) issued in error;

6) issued without consideration;

7) issued but there was a failure of consideration;

8) voided not later than 90 days after issuance for a valid business reason set

forth in a contemporaneous record;

A) for purposes of this provision "valid business reason" does not

include a policy of voiding outstanding checks, drafts, or similar

instruments after a specified number of days;

B) a policy of automatically voiding would be tantamount to a private

escheat law in violation of longstanding public policy in Illinois

(see People ex rel. Callahan v. Marshall Field & Co., 83 Ill. App.

3d 811, 818, 404 N.E.2d 368, 374 (1980));

C) this defense merely indicates that when a check, draft, or similar

instrument is voided quickly, for a valid business reason (i.e., not

as a private escheat law), and the reason is indicated in a

contemporaneous record, there is sufficient evidence to overcome

the prima facie evidence of the existence of a debt or obligation; or


18



9) issued but not delivered to the third-party payee for a sufficient reason

recorded within a reasonable time after issuance. [765 ILCS 1026/15-

1005(c)]

d) In asserting a defense under this Section, and subject to the records retention

requirements of the Act, a putative holder may present evidence of a course of

dealing between the putative holder and the apparent owner. [765 ILCS 1026/15-

1005(d)]

Section 760.790 Estimation

a) If a person subject to examination does not retain the records required by the Act,

the administrator may determine the value of property due using a reasonable

method of estimation based on all information available to the administrator,

including extrapolation and use of statistical sampling when appropriate and

necessary.

b) A payment made based on estimation under this Section is a penalty for failure to

maintain the records required by the Act and does not relieve a person from an

obligation to report and deliver property to a state in which the holder is

domiciled. [765 ILCS 1026/15-1006]

c) Unless agreed to by a person subject to examination, estimation should be used

only when there has been a violation of Section 15-404 of the Act. The ability of

the administrator to use estimation is intended as a deterrent to the intentional or

negligent destruction of records that would be used in an unclaimed property

examination to identify unclaimed property.

d) An auditor may not use estimation in an examination unless:

1) the person subject to examination agrees in writing to the use of estimation

as part of an audit resolution agreement; or

2) the administrator approves in writing the use of estimation in the

examination.

e) Estimation by the administrator should reasonably approximate the amount of

unclaimed property that should have been reported to Illinois if all reports had


18



been filed and records had been maintained as required by the Act. Thus,

estimation should attempt to determine the amount of unclaimed property that

should have been reported to Illinois under Sections 15-301, 15-302, and 15-303

(addressed property) and 15-304 (unaddressed property when the holder is

domiciled in Illinois).

f) Prior to approving the use of estimation in an examination, the administrator

shall:

1) notify the person subject to examination, in writing, that the administrator

is considering the use of estimation because of a failure to maintain the

records required by Section 15-404 of the Act;

2) after considering any evidence submitted by the auditor and the person

subject to examination, make a written determination that the person

subject to examination has failed to maintain the records required by

Section 15-404 of the Act;

3) provide an opportunity for the person subject to examination to submit

written objections, including, but not limited to:

A) submitting evidence that the person subject to examination has

maintained sufficient records to perform the examination for some

or all of the years during the time period covered by the

examination; or

B) proposing an estimation methodology;

4) notify in writing the person subject to examination of:

A) the estimation methodology to be used; and

B) for which years during the time period covered by the examination

estimation will be used.

Section 760.800 Multistate Examinations


18



a) The administrator may agree to participate in an examination of a person for

compliance with unclaimed property laws of multiple states, including the Act,

when a single auditor performs an examination for more than one state.

b) Multistate examinations are intended to be more efficient and effective for both

the person being examined and the states that have authorized the examination.

Having a single auditor conducting an unclaimed property examination reduces

the occurrence of a person being simultaneously subject to multiple unclaimed

property examinations by multiple auditors representing multiple states.

c) Because different states participating in a multistate examination will have

different rules for examinations, there may be conflicts between the statutory or

regulatory requirements for how the auditor should conduct the examination.

When practicable, the auditor should comply with the requirements of this Section

when conducting a multistate examination. However, if there is a conflict between

the requirements of this Section and the requirements of one or more other states,

the auditor may vary from the requirements of this Section so long as the auditor:

1) follows any requirements imposed by the Act, including but not limited to

confidentiality requirements;

2) uses the Act with regards to any property for which the State of Illinois

has the superior claim pursuant to the federal common law established in

the U.S. Supreme Court cases listed in Section 760.810(a); and

3) complies with the goal to be predictable, fair and consistent while

determining the historical compliance of the person being examined, and

to encourage and facilitate that person's ongoing and future compliance

with the Act.

d) A person subject to examination retains the ability to request an informal

conference with the administrator pursuant to Section 15-1008 of the Act.

Section 760.810 Bankruptcy

If, at any time before or during the course of an examination, the person subject to examination

files for bankruptcy, that person shall give notice of the filing to the auditor. The auditor shall,

within 7 calendar days after receiving notice or the discovery of the event, notify the

administrator of the bankruptcy filing. If the administrator so elects, the auditor shall assist the


18



administrator to ensure that a proper proof of claim is timely filed in the bankruptcy action.

Section 760.820 Audit Resolution Agreements

a) Pursuant to the administrator's authority to conduct an examination, the

administrator possesses the authority to resolve an examination via negotiation

and settlement with the person subject to examination. This provides flexibility to

both the person subject to examination and the administrator to resolve issues that

could require formal appeal or litigation. These settlements are often referred to as

audit resolution agreements.

b) The administrator may not agree in a settlement to provide indemnification

beyond that provided in Section 15-604 of the Act.

c) Pursuant to Section 15-1206(1) of the Act, the administrator may agree to reduce

or waive interest and penalties as part of a settlement.

d) A mutually-agreed upon settlement resolves a specific examination and does not

create any precedent on specific legal issues.

Section 760.830 Report to Holder

At the conclusion of an examination, unless waived in writing by the person being examined, the

administrator shall provide to the person whose records were examined a report that specifies:

a) the work performed;

b) the property types reviewed;

c) the methodology of any estimation technique, extrapolation, or statistical

sampling used in conducting the examination;

d) each calculation showing the value of property determined to be due; and

e) the findings of the person conducting the examination. [765 ILCS 1026/15-1007]

Section 760.840 Voluntary Disclosure Agreement Program


18



a) Pursuant to the authority of the administrator under Section 15-1206 of the Act to

waive, in whole or in part, interest and penalties, the administrator may establish a

voluntary disclosure agreement (VDA) program for persons who are not in

compliance with the Act.

b) Under a VDA program, the administrator will agree to waive, in whole or in part,

interest and penalties for a person who voluntarily reports and remits to the

administrator property that should have been previously reported, paid or

delivered to the administrator pursuant to the Act. The VDA program includes,

but is not limited to, property that is reportable pursuant to the transition

provisions of Section 15-1503 of the Act. Thus, property reportable under the Act

or the previous Uniform Disposition of Unclaimed Property Act may be eligible

to be voluntarily reported and remitted under the VDA program.

c) A person who has been sent an official notice of examination letter may not

participate in the VDA program.

d) Participation in the administrator's VDA program does not waive or otherwise

limit the administrator's authority to order and conduct an unclaimed property

examination pursuant to Section 15-1002 of the Act.

Section 760.850 Examination of State-Regulated Financial Organizations

a) Purpose of Section 15-1002.1 of the Act

1) Section 15-1002.1 of the Act establishes a system in which the Illinois

Department of Financial and Professional Regulation (DFPR) will include

unclaimed property compliance as part of the regular audits or

examinations performed on State-regulated financial organizations.

Because DFPR will perform regular examinations of these entities, the

administrator will not perform unclaimed property examinations of these

State-regulated financial organizations pursuant to Section 15-1002 of the

Act.

2) State-regulated financial organizations whose operations are either entirely

or almost entirely within the State of Illinois shall be regularly examined

by DFPR for compliance with unclaimed property laws. This should both

ensure compliance with the Act and generally subject these State-


18



regulated financial organizations to only one set of unclaimed property

examinations.

3) Section 15-1002.1 of the Act is not, however, intended to restrict the

ability of the administrator to examine national banks, national credit

unions, and other financial organizations that operate in multiple states.

For financial organizations that operate in multiple states or are created

pursuant to a national law, the administrator should either participate in

multi-state examinations to determine compliance with the Act and similar

unclaimed property laws of other states or otherwise perform an

unclaimed property examination pursuant to Section 15-1002 of the Act.

b) The administrator may perform an unclaimed property examination of a financial

organization for which DFPR is the primary prudential regulator when either:

1) the administrator consults with DFPR and DFPR has not examined the

State-regulated financial organization for compliance with the Act within

the past 5 years; or

2) DFPR waives, in writing, the restrictions of Section 15-1002.1 and permits

the administrator to examine a financial organization or group of financial

organizations for compliance with the Act.

c) Primary Prudential Regulator. For purposes of the Act, DFPR is the primary

prudential regulator for entities:

1) for which it performs regular regulatory examinations that include

unclaimed property compliance at least once every 5 years;

2) that operate primarily or exclusively in Illinois; and

3) that are created pursuant to one of the following Acts: Illinois Banking Act

[205 ILCS 5], Savings Bank Act [205 ILCS 205], Pawnbroker Regulation

Act [205 ILCS 510], Corporate Fiduciary Act [205 ILCS 620], Residential

Mortgage License Act of 1987 [205 ILCS 635], Illinois Credit Union Act

[205 ILCS 305], Currency Exchange Act [205 ILCS 405], Transmitters of

Money Act [205 ILCS 657], Sales Finance Agency Act [205 ILCS 660],

Debt Management Service Act [205 ILCS 665], Consumer Installment

Loan Act [205 ILCS 670], Title Insurance Act [215 ILCS 155], Debt


18



Settlement Consumer Protection Act [225 ILCS 429], Safety Deposit

License Act [240 ILCS 5], Payday Loan Reform Act [815 ILCS 122],

Foreign Banking Office Act [205 ILCS 645], and Foreign Bank

Representative Office Act [205 ILCS 650].

d) Related Entities Not Covered by Section 15-1002.1

1) Nothing in this Section is intended to restrict the ability of the

administrator to perform an unclaimed property examination pursuant to

Section 15-1002 of the Act when DFPR is not the primary prudential

regulator. Thus, if a financial organization has DFPR as a primary

prudential regulator under this Section, but a separate entity related to that

financial organization does not have DFPR as a primary prudential

regulator, the administrator may perform an unclaimed property

examination of that entity pursuant to Section 15-1002 of the Act even if

the administrator would defer to DFPR's unclaimed property examination

of the financial organization pursuant to Section 15-1002.1.

2) EXAMPLE: If an investment company is related to a state bank chartered

by DFPR, the administrator would be able to perform an unclaimed

property examination of the investment company even if the administrator

would defer to DFPR's examination of the state-chartered bank.

e) Disputes Over Application. If there is a dispute over whether an entity is covered

by Section 15-1002.1 of the Act, the administrator and DFPR should consult to

resolve the dispute using the framework established by Section 15-1002.1 of the

Act and subsection (a) of this Section.

f) Training. When requested by DFPR, the administrator shall provide or otherwise

make available appropriate training to employees or representatives of DFPR

regarding the examination for compliance with the Act. DFPR shall be

responsible for all expenses incurred for the training of DFPR employees or

representatives.

SUBPART G: ENFORCEMENT

Section 760.900 Purpose of Enforcement


18



a) State unclaimed property laws are based on a theory of truthful self-reporting by

the holders of unclaimed property. Enforcement actions by the administrator are

intended to both bring holders subject to enforcement actions into compliance

with the Act and to encourage voluntary compliance by other holders. The

expectation is that a holder who has been the subject of an enforcement action by

the administrator will voluntarily comply with the Act in the future. And, further,

a program of enforcement by the administrator will encourage holders to

voluntarily comply with the Act in order to avoid being subject to enforcement

actions.

b) Unclaimed property examinations are an essential aspect of unclaimed property

compliance. However, if a holder is reporting correctly under the Act, there

should be no determination of liability by the administrator. (For rules concerning

unclaimed property examinations, see Subpart F.)

Section 760.910 Verified Report of Property

a) If a person does not file a report required by Section 15-401 of the Act or the

administrator believes that a person may have filed an inaccurate, incomplete, or

false report, the administrator may require the person to file a verified report in a

form prescribed by the administrator.

b) The verified report must:

1) state whether the person is holding property reportable under the Act;

2) describe property not previously reported or about which the

administrator has inquired;

3) specifically identify property about which there is a dispute whether it is

reportable under the Act; and

4) state the amount or value of the property. [765 ILCS 1026/15-1001]

c) A verified report must otherwise comply with the requirements of Section 15-402

of the Act and Section 760.410 of this Part.

Section 760.920 Administrative Subpoenas


18



a) The administrator may, at reasonable times and on reasonable notice, issue an

administrative subpoena requiring the person or agent of that person to make

records available for examination pursuant to the Act. [765 ILCS 1026/15-

1002(2)]

b) Prior to issuance, administrative subpoenas shall be reviewed and approved by the

administrator's General Counsel or by another employee of the administrator who

is an attorney licensed to practice law in Illinois designated by the General

Counsel.

c) The administrator may request that the Attorney General bring an action seeking

judicial enforcement of a subpoena issued pursuant to the Act on behalf of the

administrator.

d) If a person to whom the administrator issues an administrative subpoena brings an

action seeking a judicial order to quash, limit, or otherwise prevent enforcement

of the administrative subpoena, then the administrator shall request that the

Attorney General represent the administrator in that action.

e) The administrator may request that the Attorney General appoint a Special

Assistant Attorney General to represent the administrator in any action to enforce

or defend an administrative subpoena issued pursuant to the Act.

Section 760.930 Determination of Liability

a) If the administrator determines from an examination conducted under Section 15-

1002 of the Act that a putative holder failed or refused to pay or deliver to the

administrator property that is reportable under the Act, the administrator shall

issue a determination of the putative holder's liability to pay or deliver and give

notice in a record to the putative holder of the determination. [765 ILCS 1026/15-

1011]

b) The administrator may give notice of any interest and civil penalties at the same

time that notice of a determination of liability is given.

Section 760.940 Interest and Penalties

a) Interest on Unreported Property. A holder that fails to report, pay or deliver

property within the time prescribed by the Act shall pay to the administrator


18



interest at a rate of 1% per month on the property or value of the property from

the date the property should have been reported, paid or delivered to the

administrator until the date reported, paid or delivered. [765 ILCS 1026/15-

1204(a)] Thus, unless waived by the administrator pursuant to Section 15-1206,

payment of interest on unreported reportable property is mandatory under the Act.

b) Civil Penalty for Failure to Act in Timely Manner. The administrator may require

a holder that fails to report, pay, or deliver property within the time prescribed by

the Act to pay to the administrator, in addition to interest, a civil penalty of $200

for each day the duty is not performed, up to a cumulative maximum amount of

$5,000. [765 ILCS 1026/15-1204(b)] Thus, unless the administrator determines

that the holder acted in good faith and without negligence pursuant to Section 15-

1206(b) of the Act, payment of a penalty for failure to act in a timely manner is a

discretionary enforcement action by the administrator.

c) Civil Penalty for Willful Failure to Perform a Duty Under the Act. If a holder

willfully fails to perform a duty imposed on the holder under the Act, the

administrator may require the holder to pay the administrator, in addition to

interest, a civil penalty of $1,000 for each day the obligation is evaded or the duty

is not performed, up to a cumulative maximum amount of $25,000, plus 25% of

the amount or value of property that should have been but was not reported, paid

or delivered as a result of the evasion or failure to perform. [765 ILCS 1026/15-

1205(a)]

d) Civil Penalty for Filing a Fraudulent Report. If a holder makes a fraudulent report

under the Act, the administrator may require the holder to pay to the

administrator, in addition to interest, a civil penalty of $1,000 for each day from

the date the report was made until corrected, up to a cumulative maximum of

$25,000, plus 25% of the amount or value of any property that should have been

reported but was not included in the report or was underreported. [765 ILCS

1026/15-1205(b)]

Section 760.950 Waiver of Interest and Penalties

a) The administrator may waive, in whole or in part, interest under Section 15-

1204(a) of the Act and penalties under Section 15-1204(b) [765 ILCS 1026/15-

1206(1)].


18



1) This authority does not provide for waiver of penalties imposed for willful

failure or filing a fraudulent report. However, the imposition of penalties

under Section 15-1205 is not mandatory.

2) The administrator may agree to reduce or waive interest and penalties as

part of an audit resolution agreement (see Section 760.820).

3) Unless the holder willfully failed to report, pay or deliver property within

the time prescribed by the Act, the administrator will waive the payment

of interest of less than 3 months.

b) The administrator shall waive a penalty under Section 15-1204(b) of the Act if the

administrator determines that the holder acted in good faith and without

negligence. [765 ILCS 1026/15-1206(2)]

1) Good faith is intended to apply to situations in which the holder has

attempted to comply with the Act.

2) If the holder has failed to file a report, there is a presumption that the

holder did not act in good faith and without negligence as the holder has

not attempted to comply with the Act.

c) A holder who fails to report, pay or deliver property within the time prescribed by

the Act shall not be required to pay interest, or be subject to penalties, if the

failure to report, pay or deliver the property was due to the lack of knowledge of

the death that established the period of abandonment under the Act. [765 ILCS

1026/15-1204(c)]

Section 760.960 Judicial Enforcement

a) The administrator may commence an action in the Circuit Court of Sangamon

County or Cook County, federal court, or an appropriate court of another state to

enforce a final determination of liability and secure payment or delivery of past

due, unpaid, or undelivered property.

b) An action to enforce a final determination of liability must be brought not later

than 5 years after the determination becomes final. [765 ILCS 1026/15-1201(a)]


18



c) If no court in Illinois has jurisdiction over the defendant, the administrator may

commence an action in any court having jurisdiction over the defendant. [765

ILCS 1026/15-1201(b)]

d) The administrator may request that the Attorney General appoint a Special

Assistant Attorney General to represent the administrator in any action to enforce

a final determination of liability.

Section 760.970 Action Involving Another State or Foreign Country

a) The administrator may join another state or foreign country to examine and seek

enforcement of the Act against a putative holder. [765 ILCS 1026/15-1203(a)]

b) On request of another state or foreign country, the Attorney General may

commence an action on behalf of the other state or country to enforce, in Illinois,

the law of the other state or country against a putative holder subject to a claim

by the other state or country. [765 ILCS 1026/15-1203(b)]

c) The administrator may request the official authorized to enforce the unclaimed

property law of another state or foreign country to commence an action to

recover property in the other state or country on behalf of the administrator.

Illinois may pay the costs, including reasonable attorney's fees and expenses,

incurred by the other state or foreign country in an action under this subsection.

[765 ILCS 1026/15-1203(c)]

d) The administrator may pursue an action on behalf of Illinois to recover property

subject to the Act but delivered to the custody of another state if the administrator

believes the property is subject to the custody of the administrator. [765 ILCS

1026/15-1203(d)]

e) At the request of the administrator, the Attorney General may commence an

action to recover property on behalf of the administrator in Illinois, another state,

or a foreign country. With the written consent of the Attorney General, the

administrator may retain an attorney in Illinois, another state, or a foreign

country as a special assistant attorney general to recover property on behalf of the

administrator in Illinois, another state, or a foreign country and may agree to pay

attorney's fees based in whole or in part on a fixed fee, hourly fee, or percentage

of the amounts or value of property recovered in the action. [765 ILCS 1026/15-

1203(e)]


18



f) In all actions commenced pursuant to Section 15-1203 of the Act, unless

otherwise given permission in writing by the Attorney General, the administrator

shall be represented by the Attorney General or a special assistant attorney

general appointed by the Attorney General.

g) Expenses incurred by Illinois in an action under Section 15-1203 of the Act may

be paid from property received under the Act or the net proceeds of the property.

Expenses paid to recover property may not be deducted from the amount that is

subject to a claim under the Act by the owner. [765 ILCS 1026/15-1203(f)]

Section 760.980 Periods of Limitation and Repose

a) An action or proceeding may not be maintained by the administrator to enforce

the Act in regard to the reporting, delivery or payment of property more than 10

years after the holder specifically identified the property in a report filed with the

administrator or gave express notice to the administrator of a dispute regarding

the property. [765 ILCS 1026/15-610(b)]

b) The 10-year period of limitation is tolled:

1) if the holder did not specifically identify the property in a report filed with

the administrator or provide other express notice to the administrator; or

2) by the filing of a report that is fraudulent. [765 ILCS 1026/15-610(b)]

c) Notwithstanding the tolling of the 10-year period of limitation because of a failure

of a holder to specifically identify property in a report filed with the administrator

or provide other express notice to the administrator, the administrator will not

maintain an action in regard to the reporting, delivery or payment of property

more than 10 years after that property should have been reported and remitted to

the administrator if all of the following apply:

1) the holder has filed reports with the administrator for the past 10 years;

2) the holder agrees in writing to file all reports required by the Act,

including providing express notice to the administrator of any future

disputes concerning the reporting of property;


18



3) the total amount of property, excluding any interest or penalties that the

administrator could impose under the Act, is less than $2,500 or is

otherwise de minimis as reasonably determined by the administrator; and

4) the administrator determines that the holder acted in good faith and

without negligence. [765 ILCS 1026/15-1206(2)]

AGENCY NOTE: The language of Section 15-610(b) of the Act comes from Section

19(b) of the 1995 Uniform Unclaimed Property Act promulgated by the Uniform Law

Commission (www.uniformlaws.org). The official comments to the 1995 Uniform

Unclaimed Property Act note that this provision parallels the Internal Revenue Code (26

USC 6501(c)). The official comments further note that as "the Unclaimed Property Act is

based on a theory of truthful self-reporting, a holder which conceals property, willfully or

otherwise, cannot expect the protection of the stated limitations period".

SUBPART H: CONFIDENTIALITY

Section 760.1000 Confidentiality

a) Information provided in reports filed pursuant to the Act and the database

required by Section 15-503 of the Act are specifically exempt from disclosure

under the Freedom of Information Act. [765 ILCS 1026/15-1401(b)] The

Freedom of Information Officer for the administrator may deny requests for

records containing such information as information specifically prohibited from

disclosure by federal or State law or rules and regulations implementing federal

or State law. [5 ILCS 140/7(1)(a)]

b) Under the Act "private information" as defined in the Freedom of Information Act

and "personal information" as defined in the Personal Information Protection Act

continues to be confidential when disclosed or delivered under the Act to the

administrator or administrator's agent. [765 ILCS 1026/15-1401(a)]

1) Private Information. The Freedom of Information Officer for the

administrator may deny requests for records containing private

information as information specifically prohibited from disclosure by

federal or State law or rules and regulations implementing federal or

State law; or unless disclosure is specifically required by a different State

or federal law or a court order. [5 ILCS 140/7(1)(a) and (b)]


18



2) Personal Information. Personal information as defined in the Personal

Information Protection Act is either private information or personal

information the disclosure of which would constitute a clearly

unwarranted invasion of personal privacy as defined in Section 2(c-5) and

7(1)(c) of the Freedom of Information Act and the Freedom of

Information Officer for the administrator may deny requests for records

containing personal information as information specifically prohibited

from disclosure by federal or State law or rules and regulations

implementing federal or State law; or unless disclosure is specifically

required by a different State or federal law or a court order. [5 ILCS

140/7(1)(a) and (b)]

Section 760.1010 Confidentiality of Records Obtained During Examination

a) Records obtained and records, including work papers, compiled by the

administrator or the administrator's agent in the course of conducting an

examination:

1) are exempt from disclosure under the Freedom of Information Act;

2) may be used by the administrator in an action to collect property or

otherwise enforce the Act;

3) may be used in a joint examination conducted with another state, the

United States, a foreign country or subordinate unit of a foreign country,

or any other governmental entity if the governmental entity conducting the

examination is legally bound to maintain the confidentiality and security

of information obtained from a person subject to examination in a manner

substantially equivalent to Article 14 of the Act;

4) may be disclosed, on request, to the person that administers the unclaimed

property law of another state for that state's use in circumstances

equivalent to circumstances described in Article 10 of the Act, if the other

state is required to maintain the confidentiality and security of information

obtained in a manner substantially equivalent to Article 14 of the Act;

5) must be produced by the administrator under an administrative or judicial

subpoena or administrative or court order; and


18



6) must be produced by the administrator on request of the person subject to

the examination in an administrative or judicial proceeding relating to the

property. [765 ILCS 1026/15-1004]

b) Auditors shall not disclose confidential information obtained during an unclaimed

property examination to any person other than the administrator or the

administrator's designee and, in the case of a multistate examination, to authorized

representatives of a state participating in the examination.

c) Auditors shall not use confidential information obtained from the person subject

to an examination for any purpose other than for purposes of the examination.

Auditors shall take reasonable steps to ensure that the confidential information

provided by the person subject to an examination is securely maintained.

d) Auditors must comply with any applicable federal and State laws and regulations

pertaining to unauthorized disclosures of confidential information, including the

Personal Information Protection Act.

SUBPART I: MISCELLANEOUS

Section 760.1100 Transition Provisions

a) An initial report filed under the Revised Act for property that was not required to

be reported before the effective date of the Revised Act, but that is required to be

reported under the Revised Act, must include all items of property that would

have been presumed abandoned during the 5-year period preceding the effective

date of the Revised Act as if the Revised Act had been in effect during that period.

[765 ILCS 1026/15-1503(a)]

AGENCY NOTE: A version of the transitional provision described in Section

15-1500(a) of the Act has been included in every uniform unclaimed property Act

promulgated by the ULC [765 ILCS 15-1500(a)]. While the Act has a 5-year look

back period, the ULC version of RUUPA has a 10-year look back period. This 5-

year period is identical to the requirement in the Former Act that the State

Treasurer "issue a Notice of Deficiency to a holder or direct the commencement

of an examination of a holder with respect to a report required under the Former

Act within 5 years after the report is filed."(See the repealed 765 ILCS

1025/23.5(a).) The Former Act, when it was adopted in 1961, had a transitional

provision that applied its provisions to any property for which the presumption of


18



abandonment prescribed by the Former Act occurred on or after August 17, 1946.

Thus, the look back period in the Former Act was 15 years. (See the repealed 765

ILCS 1025/17.)

1) Property Covered by the Transition Provision

A) As part of its report filed in calendar year 2018, a holder must

report all property that would have been reported in 2013 through

2017 as if the Revised Act had been in effect on January 1, 2013.

B) Property that was excluded in 2013 through 2017 under the Former

Act (Uniform Disposition of Unclaimed Property Act [765 ILCS

1025]), but that is not excluded under the Revised Act, must be

reported in 2018.

EXAMPLE: Property that was excluded from being reported and

remitted pursuant to provisions of Section 2a(b) of the Former Act

during 2013 through 2017 should be reported in 2018.

C) Which property should be reported under this transitional provision

is determined by looking at the applicable period of abandonment

in the Revised Act.

EXAMPLE: Section 15-201(5) provides that the debt of a business

association is reportable 3 years after the obligation to pay arises.

So, a debt owed to another business association that arose in 2010

would have been reportable in 2013 and, therefore, would be

reportable in the initial report filed in 2018.

2) Owner Interest

A) The requirement to report property that was previously excluded

from being reported under the Former Act is still subject to the

indication of apparent owner interest in property provisions of

Section 15-210 of the Revised Act.

B) The period of abandonment for property covered by subsection (a)

is measured from the later of:


18



i) the date the property would have been presumed abandoned

if the Revised Act had been in effect; or

ii) the date of the latest indication of interest by the apparent

owner in the property.

3) Due Diligence Notice Required. A holder reporting property pursuant to

subsection (a) is still required to provide notice to an apparent owner of

that property pursuant to the applicable provisions of Section 15-501 of

the Revised Act.

4) Interest and Penalties

A) If a holder reports property pursuant to subsection (a) in 2018, that

property is considered to have been reported at the time prescribed

by the Revised Act. As such, the administrator may not impose any

interest or penalties under Section 15-1204 of the Revised Act on

property reported in 2018 in compliance with subsection (a).

B) If a holder fails to report property in 2018 that should have been

reported under subsection (a), but reports that property in 2019, the

administrator shall waive any interest or penalties under Section

15-1204 of the Revised Act if the administrator determines that the

holder acted in good faith and without negligence.

5) Insufficient Holder Records. The following provisions apply to a holder

that has insufficient records to accurately report property that should be

reported in 2018 pursuant to subsection (a).

A) The holder:

i) shall report all property for which it has adequate records to

file a report under Section 15-401 of the Revised Act; and

ii) may enter into a written agreement with the administrator

to report and remit an estimate of any property that would

have been reportable to Illinois for which the holder does

not have adequate records to file a report under Section 15-

401 of the Revised Act.


18



B) If the holder is domiciled outside of Illinois, any estimate of

property that would have been reportable to Illinois will be an

estimate of property for which the last-known address of the

apparent owner would have been in Illinois.

C) If the holder is domiciled in Illinois, any estimate of property that

would have been reportable to Illinois will be an estimate both of

property for which the last-known address of the apparent owner

would have been in Illinois and of property that would have been

reportable to Illinois under Section 15-304 of the Revised Act.

6) If property exempted under the Former Act but not excluded under the

Revised Act has been paid to another state, the holder is not required to

pay again. In this case, the holder should provide notice to the

administrator, so that the administrator can make a determination whether

to attempt to reclaim that property from the state first taking possession.

To provide the notice, the holder may, but is not required to, provide the

administrator with a copy of the report or relevant portions of the report

filed with the other state to which the property was reported and remitted.

Providing notice to the administrator under this provision is a form of

"express notice" as provided in Section 15-610(b) of the Act.

b) The Act does not relieve a holder of a duty that arose before the effective date of

the Revised Act to report, pay or deliver property. Subject to Section 15-610(b) of

the Act, a holder that did not comply with the law governing unclaimed property

before the effective date of the Act is subject to applicable provisions for

enforcement and penalties in effect before the effective date of the Revised Act.

[765 ILCS 1026/15-1503(b)]

1) Holders are still required to report and remit any property that was

reportable under the Former Act prior to January 1, 2018, the effective

date of the Revised Act.

A) Property that would not be reportable under the Revised Act, that

should have been reported under the Former Act prior to January 1,

2018 will generally still be reportable to the administrator.


18



B) EXAMPLE: Property that should have been reported under the

Former Act on November 1, 2017 because it had been presumed

abandoned in the 12 months preceding July 1, 2017, but for

whatever reason was not reported and remitted to the administrator

by January 1, 2018, would still need to be reported and remitted to

the administrator.

C) The statute of limitations in Section 15-610 of the Revised Act,

including the tolling provisions in Section 610(b), still applies to

the ability of the administrator to bring an enforcement action

against a holder.

2) Unclaimed property examinations that were initiated before January 1,

2018, but are still ongoing on or after January 1, 2018, will be based on

the presumptions of abandonment from the appropriate Act given the

circumstances surrounding the property.

A) Property that would be reportable under the Revised Act will

generally be reportable under that Act.

B) Property that would not be reportable under the Revised Act, but

should have been reported under the Former Act prior to January 1,

2018 will generally still be reportable to the administrator.

C) When the standard for determining a presumption of abandonment

under the Revised Act is materially different from under the

Former Act, and it is in the best interests of the owner for the new

standard to apply, the Revised Act shall apply.

EXAMPLE: A tax-advantaged nonretirement account that would

have been presumed abandoned after 5 years of inactivity under

the Former Act, but would not be presumed abandoned until 3

years after the date by which distribution of the property must

begin to avoid a tax penalty under the Revised Act, would be a

case in which the new standard would be applied.

D) The administrator and the holder may agree in writing how to

resolve issues in which both unclaimed property Acts may

reasonably be interpreted as applying to property that is the subject


18



of the unclaimed property examination. Under Section 15-608(b)

of the Revised Act, the administrator has the authority to accept

property early and to waive or reduce interest and penalties.

E) Generally, an examination will toll the statute of limitations in

Section 15-610 of the Revised Act unless the holder specifically

identified the property in a report filed with the administrator or

gave other express notice to the administrator prior to the initiation

of the examination, because a person subject to an unclaimed

property examination generally does not file reports directly with

the administrator during that examination.


18



Section 760.APPENDIX A Background Information

a) Section 15-1501 of the Act provides that, when applying and construing the Act,

consideration must be given to the need to promote uniformity of the law with

respect to its subject matter among states that enact it. [765 ILCS 15-1501].

Given the provisions of Section 15-1501, this Appendix is intended to provide

background that will be useful to persons attempting to interpret the Act.

b) Every state has enacted legislation requiring that holders of presumptively

abandoned or unclaimed property report and deliver that property to the state. A

majority of states have adopted some form of one of the uniform acts promulgated

by the Uniform Law Commission (ULC). The problem of "lucrative silence" by

holders motivated the ULC to draft and promulgate the original Uniform

Disposition of Unclaimed Property Act (UDUPA) in 1954. Illinois passed its

version of UDUPA in 1961. Illinois' current law is based on the ULC's Revised

Uniform Unclaimed Property Act (RUUPA) that was approved and recommended

for enactment in all states in 2016.

c) Various courts have attempted to lay out the purposes of state unclaimed property

laws. The Minnesota Supreme Court summarized the four main purposes as:

1) to protect the interests of the owners of unclaimed property;

2) to relieve holders of the annoyance, expense and liability of keeping

unclaimed property;

3) to preclude multiple liability; and

4) to give the adopting state use of considerable sums of money that

otherwise is a windfall to holders. (State by Lord v. First National Bank,

313 N.W.2d 390, 393 (Minn. 1981))

d) Illinois' Appellate Court noted that Illinois' unclaimed property Act "protects the

rights of unknown owners and gives the benefit of the use of the unclaimed

property, most of which experience shows will never be claimed, to the State

rather than the holders." (People ex rel. Fahner v. Chicago Transit Authority, 127

Ill. App. 3d 405, 408, 468 N.E.2d 1316, 1318 (1st Dist. 1984) citing People ex rel.

Callahan v. Marshall Field & Co. (1980), 83 Ill. App. 3d 811, 404 N.E.2d 368;

and Douglas Aircraft Co. v. Cranston (1962), 58 Cal. 2d 462, 374 P.2d 819)


18



e) State unclaimed property Acts prevent the unjust enrichment by holders of

property to which they are not legally entitled and establish a process through

which unclaimed property may be reunited with its rightful owner. These statutes

essentially abolish the common law on abandoned property and remove the

escheatment by the state of intangible personal property. The state no longer

becomes the legal owner of unclaimed intangible personal property. Instead, it is

transferred to a state unclaimed property administrator, typically the State

Treasurer, who serves as a perpetual custodian of the unclaimed property.

f) The Uniform Unclaimed Property System

1) The uniform unclaimed property Acts, including Illinois' Act, set up a

system for dealing with unclaimed intangible property as well as tangible

unclaimed property recovered from safe deposit boxes. Each state's Act

establishes rules to determine when different types of property are

presumed abandoned. After property is presumptively abandoned, the

holder of the property is almost always required to attempt to contact the

owner of unclaimed property in writing. This is called a due diligence

notice. If the owner does not claim the property from the holder, then the

holder is required to report and remit that property to the state unclaimed

property administrator as part of an annual unclaimed property report.

2) The administrator once again attempts to contact owners. Historically, this

was done through newspaper advertisements; now, however, in addition to

print advertising, states maintain searchable online databases, work with

other government agencies to update contact information for owners, send

direct mail to apparent owners, and perform other types of in-person

outreach and media advertising to attempt to reunite owners, or their heirs,

with their unclaimed property.

3) Cash remitted to the administrator is deposited into a state fund. Non-cash

property is held for a period of time and then sold if the owner has not

been located, with the proceeds being deposited into the same state fund.

Owners can claim their property from the administrator using online or

paper claim forms and, when necessary, by supplying supporting

documentation to prove that they are the rightful owner. There is no

deadline for an owner to reclaim his or her property from the

administrator.


18



g) The U.S. Supreme Court has established federal common law rules to determine

which state is entitled to unclaimed property. The cases of Texas v. New Jersey,

379 U.S. 674 (1965), Pennsylvania v. New York, 407 U.S. 206 (1972), and

Delaware v. New York, 507 U.S. 490 (1993) have established the framework to

determine which state has priority in claiming unclaimed property.

h) The Act is not identical to the version of RUUPA promulgated by the ULC. The

ULC version, including the official comments, is available at

www.uniformlaws.org. While the General Assembly chose to adopt great portions

of the version of RUUPA promulgated by the ULC, certain provisions from the

Former Act were retained, language from prior versions of the uniform Act were

used in places, and sometimes provisions were modified or entirely rewritten.

However, the Act, Illinois' version of RUUPA, contains all of the elements of

modern unclaimed property law discussed in this Appendix.


18

ILLINOIS STUDENT ASSISTANCE COMMISSION


1) Heading of the Part: AIM HIGH Grant Pilot Program



2766.10 New Section

2766.15 New Section

2766.20 New Section

2766.30 New Section

2766.40 New Section

2766.50 New Section

4) Statutory Authority: Implementing and authorized by Section 65.100 of the Higher

Education Student Assistance Act [110 ILCS 947/65.100].

5) A Complete Description of the Subjects and Issues Involved: Effective June 4, 2018,

Section 65.100 was added to the Higher Education Student Assistance Act [110ILCS

947/65.100] to create the AIM HIGH Grant Pilot Program. The intent of the program is

to increase enrollment at Illinois public 4-year universities by providing those universities

with the option for additional funding through a new merit-based and means-tested

matching scholarship for Illinois students. As a result, the rules by which the program

will be implemented and administered are being created.


rulemaking: None






State mandate as defined in Section 3(b) of the State Mandates Act [30 ILCS 805/3(b)]

and does not necessitate a local government to establish, expand or modify its activities

in such a way as to necessitate additional expenditures from local revenues.


18




rulemaking: Persons who wish to comment on this proposed rulemaking may submit

written comments no later than 45 days after the publication of this Notice to:

Lynn Hynes

Agency Rules Coordinator

Illinois Student Assistance Commission

1755 Lake Cook Road

Deerfield IL 60015

847/948-8500, ext. 18032




affected: None




The full text of the Proposed Rules is identical to that of the text of the Emergency Rules in this

Part, and begins in this issue of the Illinois Register on page 17265.


18

DEPARTMENT OF HUMAN RIGHTS

NOTICE OF ADOPTED AMENDMENTS

1) Heading of the Part: Procedures of the Department of Human Rights


3) Section Numbers: Adopted Actions:

2520.40 Amendment

2520.405 Amendment


2520.575 Repealed

2520.577 Repealed

2520.580 Repealed

2520.583 Repealed

4) Statutory Authority: Implementing Articles 1 through 7B of the Illinois Human Rights

Act [775 ILCS 5/Arts. 1 through 7B] and authorized by Sections 7-101(A) and 7-105(A)

of the Illinois Human Rights Act [775 ILCS 5/7-101(A) and 7-105(A)].

5) Effective Date of Rules: September 17, 2018



8) A copy of the adopted rules, including any material incorporated, is on file in the

Agency's principal office and is available for public inspection.

9) Notice of Proposal published in the Illinois Register: 42 Ill. Reg. 8725; June 1, 2018.

10) Has JCAR issued a Statement of Objection to this rulemaking? No

11) Differences between Proposal and Final Version: There have not been any changes.

12) Have all the changes agreed upon by the Agency and JCAR been made as indicated in the

agreements issued by JCAR? There were no changes agreed upon by the Agency and

JCAR.


14) Are there any rulemakings pending on this Part? No


18



15) Summary and Purpose of Rulemaking: The amendments will modify the regulations of

the Illinois Department of Human Rights ("Department") regarding verified responses

and responses to Department charges pursuant to PA 100-492 and will repeal request for

review provisions of the Department’s rules, which are no longer current.

16) Information and questions regarding these adopted rules shall be directed to:

Mary M. (Betsey) Madden

Chief Legal Counsel and Ethics Officer

Illinois Department of Human Rights – Legal Division

100 W. Randolph St., Suite 10-100

Chicago IL 60601

312/814-3386

TTY: 866/740-3953

The full text of the Adopted Amendments begins on the next page:


18




CHAPTER II: DEPARTMENT OF HUMAN RIGHTS

PART 2520

PROCEDURES OF THE DEPARTMENT OF HUMAN RIGHTS

SUBPART A: INTERPRETATIONS

Section

2520.10 Definition of Terms

2520.20 Computation of Time

2520.30 Service of Documents

2520.40 Filing with the Department

2520.50 Separability

2520.110 Preservation of Records by Employers, Labor Organizations, Employment

Agencies and Respondents

SUBPART B: CHARGE

Section

2520.310 Time of Filing (Repealed)

2520.320 Form (Repealed)

2520.330 Contents

2520.340 Requirements for Charge (Repealed)

2520.350 Unperfected Charge

2520.360 Amendment

2520.370 Substitution and Addition of Parties (Repealed)

2520.380 Withdrawal of Charge

SUBPART C: PROCEDURE UPON CHARGE

Section

2520.405 Verified Response to Charge

2520.407 Response to Charge

2520.410 Docketing and Service of Charge (Repealed)

2520.415 Mediation

2520.420 Maintenance of Records (Repealed)

2520.430 Investigation

2520.440 Fact-Finding Conference


18



2520.450 Administrative Closure (Repealed)

2520.460 Determination After Investigation (Repealed)

2520.470 Conciliation (Repealed)

2520.480 Complaint (Repealed)

2520.490 EEOC Dual Filed Charges

SUBPART D: SETTLEMENTS

Section

2520.510 Settlement

2520.520 Non-Disclosure (Repealed)

2520.530 Dismissal for Refusal to Accept Settlement Offer (Repealed)

2520.540 Non-Compliance with Settlement Terms (Repealed)

SUBPART E: ADMINISTRATIVE CLOSURE, DISMISSAL AND DEFAULT

Section

2520.550 Administrative Closure

2520.560 Dismissal

2520.570 Default

SUBPART F: REQUESTS FOR REVIEW

Section

2520.573 Filing with Chief Legal Counsel

2520.575 Contents of Request for Review (Repealed)

2520.577 Notice by the Chief Legal Counsel (Repealed)

2520.580 Extensions of Time (Repealed)

2520.583 Reply to Request for Review and Surreply (Repealed)

2520.585 Additional Investigation

2520.587 Decision

SUBPART G: RELATIONS WITH LOCAL HUMAN RIGHTS AGENCIES

Section

2520.610 Scope and Purpose (Repealed)

2520.620 Definitions (Repealed)

2520.630 Cooperative Agreements

2520.640 Nature of Cooperative Agreements


18



2520.650 Training and Technical Assistance

2520.660 Promotion of Communication and Goodwill

SUBPART H: EQUAL EMPLOYMENT OPPORTUNITY AND

AFFIRMATIVE ACTION BY STATE EXECUTIVE AGENCIES

Section

2520.700 Definitions

2520.710 Scope and Purpose

2520.720 Affirmative Action Groups

2520.730 Consideration of Additional Groups

2520.740 Definitions (Renumbered)

2520.750 Nondiscrimination (Repealed)

2520.760 Plans

2520.770 Reporting and Record-Keeping

2520.780 Equal Employment Opportunity Officers

2520.790 Complaint Process

2520.795 EEO/AA Performance Reviews

2520.797 Sanctions for Noncompliance

SUBPART I: SEXUAL HARASSMENT IN HIGHER EDUCATION POLICIES

Section

2520.810 Posting of Sexual Harassment Policies

2520.820 Notice to Show Cause

2520.APPENDIX A Contents of Affirmative Action Plans

2520.APPENDIX B Value Weight Assignment Chart (Repealed)

2520.APPENDIX C Contents of Layoff Reports

2520.APPENDIX D Illinois Counties by Region

AUTHORITY: Implementing Articles 1 through 7B of the Illinois Human Rights Act [775

ILCS 5/Arts. 1 through 7B] and the Intergovernmental Cooperation Act [5 ILCS 220], and

authorized by Sections 7-101(A) and 7-105(A) of the Illinois Human Rights Act [775 ILCS 5/7-

101(A) and 7-105(A)].

SOURCE: Adopted November 20, 1972 by the Fair Employment Practices Commission;

transferred to the Department of Human Rights by P.A. 81-1216, effective July 1, 1980;

emergency amendments at 4 Ill. Reg. 39, p. 335, effective September 17, 1980, for a maximum


18



of 150 days; amended at 5 Ill. Reg. 1627, effective February 9, 1981; amended at 6 Ill. Reg.

2125, effective February 8, 1982; amended at 6 Ill. Reg. 3076, effective March 15, 1982;

amended at 6 Ill. Reg. 8090, effective July 1, 1982; codified at 8 Ill. Reg. 17884; amended at 17

Ill. Reg. 15556, effective September 13, 1993; amended at 18 Ill. Reg. 16829, effective

November 4, 1994; emergency amendment at 20 Ill. Reg. 445, effective January 1, 1996, for a

maximum of 150 days; emergency amendment at 20 Ill. Reg. 5084, effective March 15, 1996,

for a maximum of 150 days; amended at 20 Ill. Reg. 6291, effective April 18, 1996; amended at

20 Ill. Reg. 10631, effective July 24, 1996; amended at 21 Ill. Reg. 14081, effective October 10,

1997; amended at 26 Ill. Reg. 17217, effective November 18, 2002; amended at 29 Ill. Reg. 804,

effective December 28, 2004; amended at 30 Ill. Reg. 1343, effective January 13, 2006; amended

at 30 Ill. Reg. 13403, effective July 31, 2006; amended at 30 Ill. Reg. 18715, effective November

20, 2006; amended at 31 Ill. Reg. 12319, effective August 8, 2007; amended at 31 Ill. Reg.

14815, effective October 19, 2007; amended at 32 Ill. Reg. 13482, effective August 1, 2008;


December 4, 2009; amended at 34 Ill. Reg. 11413, effective July 20, 2010; amended at 36 Ill.

Reg. 8699, effective June 1, 2012; amended at 38 Ill. Reg. 9481, effective April 21, 2014;


August 29, 2017; amended at 42 Ill. Reg. 17235, effective September 17, 2018.

SUBPART A: INTERPRETATIONS

Section 2520.40 Filing with the Department

a) Documents required to be filed with the Department shall be deemed filed when

received, if hand-delivered, telefaxed, or electronically submitted pursuant to an

Electronic Filing Pilot Project (see subsection (b)), except that requests for review

filed pursuant to Section 2520.573, replies to requests for review and surreplies to

replies filed pursuant to Section 2520.583, and requests for extensions of time to

file those pleadings and responses pursuant to Section 2520.580 may not be

telefaxed. An item delivered by the U.S. Postal Service shall be deemed to have

been filed when postmarked, properly addressed and posted for delivery. An item

delivered by a private delivery service shall be deemed to have been filed on the

date sent as indicated on the label, or in the absence of such a date on the label,

shall be deemed filed on the date received.

b) The Department may develop an Electronic Filing Pilot Project authorizing

electronic filing and use of electronic signatures. The Electronic Filing Pilot

Project may designate the procedures for electronic filing, including, but not

limited to, the types of cases, types of documents, size of documents and format.


18



The Department shall post the Electronic Filing Pilot Project policy on its website

and make the policy available in writing, if requested. An item submitted by

electronic communication pursuant to the Department's Electronic Filing Pilot

Project shall be deemed to have been filed on the date received by the

Department's electronic communication system, unless it is submitted on a

Saturday, Sunday or legal State holiday, in which case, it is deemed filed on the

following business day.

(Source: Amended at 42 Ill. Reg. 17235, effective September 17, 2018)

SUBPART C: PROCEDURE UPON CHARGE

Section 2520.405 Verified Response to Charge

a) Pursuant to Section 7A-102(B), for charges filed prior to September 8, 2017, of

the Act within 60 days after receipt of the notice of the charge, or of a substantive

amendment to a charge that includes new harms, bases or respondents pursuant to

Section 2520.360(b) and (c) of this Part, respondent shall file a verified response

to the allegations in the charge. Respondent shall serve a copy of the verified

response on complainant or complainant's representative and shall show proof to

the Department that the copy was served on complainant or complainant's

representative.

b) Pursuant to Section 7B-102(B), for charges filed prior to September 8, 2017,

within 30 days after receipt of the notice of the charge, or of a substantive

amendment to a charge that includes new harms, bases or respondents pursuant to

Section 2520.360(b) and (c), respondent shall file a verified response to the

allegations in the charge. Respondent shall serve a copy of the verified response

on complainant or complainant's representative and shall show proof to the

Department that the copy was served on complainant or complainant's

representative.

cb) WhenWhere, without good cause shown, respondent's verified response is not

timely filed and/or served on complainant or complainant's representative,

complainant may raise that issue before the Department. The raising of an issue

of an untimely filed and/or served verified response with the Department does not

relieve complainant of complainant's duty to comply with the Department's

investigation.


18



dc) Pursuant to SectionsSection 7A-102(B) and 7B-102(B) of the Act, good cause for

untimely filing a verified response may include, but shall not be limited to:

1) Death or sudden, serious illness of respondent or respondent's

representative; or

2) Death or sudden, serious illness of an immediate family member of

respondent or respondent's representative; or

3) Respondent filed and served a timely verified response, but the

Department later determined that respondent's verified response was

defective; or

4) Respondent acted with due diligence and was not deliberate or

contumacious and did not unwarrantedly disregard the verified response

process, as supported by affidavit or other evidence; or

5) Respondent's failure to timely file a verified response was due to

circumstances beyond respondent's control, as supported by affidavit or

other evidence.

ed) Whether good cause exists is in the sole discretion of the Department.

fe) WhenWhere respondent is responding to a notice to show cause for failing to

timely file the verified response and/or timely serve a copy on complainant or

complainant's representative, respondent shall include the verified response with

the response to the notice to show cause and show proof that respondent has

served the verified response on complainant or complainant's representative.

(Source: Amended at 42 Ill. Reg. 17235, effective September 17, 2018)

Section 2520.407 Response to Charge

a) For charges filed on or after September 8, 2017, pursuant to Section 7A-102(B) of

the Act, the Department may require respondent to file a response to the

allegations in the charge. Respondent shall file a response to the charge within 60

days after service of the Department's request. If the Department does not require

a response, Respondent may still choose to file a response to the charge within 60

days after service of the charge. Respondent shall serve a copy of the response to


18



the charge on complainant or complainant's representative and shall show proof to


representative.

b) For charges filed on or after September 8, 2017, pursuant to Section 7B-102(B) of

the Act, the Department may require respondent to file a response to the

allegations in the charge. Respondent shall file a response to the charge within 30

days after service of the Department's request. If the Department does not require

a response, respondent may still choose to file a response to the charge within 30

days after service of the charge. Respondent shall serve a copy of the response to

the charge on complainant or complainant's representative and shall show proof to


representative.

c) Reasons for the Department to request that respondent file a response to the

charge may include, but are not limited to:

1) Circumstances of the allegations in the pending charge; or

2) Multiple charges have been filed or are pending against respondent; or

3) Complainant filing a substantive amendment to the charge or a new charge

that includes new allegations; or

4) Conflicting or insufficient evidence regarding the legal name or identity of

respondent; or

5) Respondent's failure to cooperate during the investigation of the pending

charge; or

6) The charge was initiated by the Director.

d) For charges filed on or after September 8, 2017, pursuant to Sections 7A-102(B)

and 7B-102(B) of the Act, good cause for untimely filing a response required by

the Department may include, but shall not be limited to:

1) Death or sudden, serious illness of respondent or respondent's

representative; or


18



2) Death or sudden, serious illness of an immediate family member of

respondent or respondent's representative; or

3) Respondent filed and served a timely response, but the Department later

determined that respondent's response was defective; or

4) Respondent acted with due diligence and was not deliberate or

contumacious and did not unwarrantedly disregard the response process,

as supported by affidavit or other evidence; or

5) Respondent's failure to timely file a response was due to circumstances

beyond respondent's control, as supported by affidavit or other evidence.

e) Whether to request a response and whether good cause exists are in the sole

discretion of the Department.

f) When respondent is responding to a notice to show cause for failing to timely file

the response to a charge required by the Department and/or when respondent is

responding to a notice to show cause for failing to timely serve a copy of the

response to charge on complainant or complainant's representative, respondent

shall include the response to the charge with the response to the notice to show

cause and show proof that respondent has served the response on complainant or

complainant's representative.

(Source: Added at 42 Ill. Reg. 17235, effective September 17, 2018)

SUBPART F: REQUESTS FOR REVIEW

Section 2520.575 Contents of Request for Review (Repealed)

A request for review must state the reasons the party disagrees with the Director's decision. A

request for review may also present relevant or supporting documents and/or identify witnesses

with direct knowledge and state how to contact each named witness. The party should state how

each document and/or witness is relevant to the request for review.

(Source: Repealed at 42 Ill. Reg. 17235, effective September 17, 2018)

Section 2520.577 Notice by the Chief Legal Counsel (Repealed)


18



a) When the Chief Legal Counsel receives a timely filed request for review or

request for extension of time, he/she shall notify the Director and all other parties

of its filing.

b) The Chief Legal Counsel shall notify a party that its request for review will not be

considered by the Chief Legal Counsel:

1) if an untimely request for review is filed with the Chief Legal Counsel and

a timely request for an extension has not previously been filed; or

2) if a party files an untimely request for an extension.


Section 2520.580 Extensions of Time (Repealed)

a) For good cause shown, a party may request in writing an extension of time to file

a request for review, reply or surreply of no more than 14 days. Requests for

extensions of time must be filed with the Chief Legal Counsel no later than the

original deadline and will be granted if the Chief Legal Counsel determines that

good cause has been established.

b) To determine whether there is good cause for extensions, the Chief Legal Counsel

will consider, among other factors:

1) complexity of the issues;

2) death or serious illness of a party or a party's representative; and

3) death or serious illness of an immediate family member of a party or a

party's representative.

c) Such determinations shall be sent to all parties and the Department

d) If a party files a timely request for an extension that is granted but does not file a

request for review, reply or surreply on or before the extended deadline, the Chief

Legal Counsel will consider the pleading to be one filed without evidence or

argument.


18




Section 2520.583 Reply to Request for Review and Surreply (Repealed)

a) Reply. When a party files a timely request for review, the Chief Legal Counsel

may request other parties and the Department to submit a reply to the request for

review. Such reply must be filed within 14 days after the request by the Chief

Legal Counsel. The reply must be served on all other parties and proof of service

must be provided or the Chief Legal Counsel cannot consider it. Replies should

be limited to the issues raised in the request for review.

b) Surreply. If a reply to a request for review is timely filed with the Department,

the party requesting review may file a surreply to the reply with the Chief Legal

Counsel within 14 days after the deadline for filing the reply. The surreply must

be served on all other parties and proof of service must be provided or the Chief

Legal Counsel cannot consider it. Surreplies should be limited to the issues raised

in the reply.



18

DEPARTMENT OF REVENUE

NOTICE OF EMERGENCY AMENDMENT

1) Heading of the Part: Use Tax


3) Section Number: Emergency Action:

150.803 New Section

4) Statutory Authority: 35 ILCS 105/2; 35 ILCS 105/12; 20 ILCS 2505/2505-90

5) Effective Date of Emergency Rule: September 11, 2018

6) If this Emergency Rule is to expire before the end of the 150-day period, please specify

the date on which it is to expire:

7) Date Filed with the Index Department: September 11, 2018

8) A copy of the emergency rule, including any material incorporated by reference, is on file

in the Agency's principal office and is available for public inspection.

9) Reason for Emergency: Article 80 of the FY 19 Budget Implementation Act, PA 100-

587, becomes effective October 1, 2018. The provisions of Article 80 establish a new

type of nexus for tax collection, patterned after the South Dakota nexus statute that was

recently upheld by the U.S. Supreme Court in South Dakota v. Wayfair, Inc., No. 17-494

(U.S. June 21, 2018). To implement the provisions of PA 100-587 by October 1, 2018,

emergency regulations are required. The new nexus provisions of PA 100-587 were an

important part of the FY19 budget. With an effective date of October 1, 2018, they are

estimated to generate an additional $200 million in sales tax revenues. It is critical that

regulations implementing the new nexus provisions be in place by October 1, 2018 so

that anticipated revenues can be realized. Use of regular rulemaking procedures would

not allow implementation by October 1, 2018.

10) A Complete Description of the Subjects and Issues Involved: These regulations

implement the provisions of Article 80 of PA 100-587, the FY19 Budget Implementation

Act ("Act"). Prior to the Act, an out-of-State retailer (a "remote seller") had to maintain a

physical presence in Illinois before it could be required to collect and remit Illinois Use

Tax on sales of tangible personal property to Illinois purchasers. The Act, however,

created a new type of nexus, which does not require a physical presence. The Act's nexus

standards are substantially similar to provisions enacted by South Dakota and upheld in

the recent U.S. Supreme Court case, South Dakota v. Wayfair, Inc., No. 17-494 (U.S.


18



June 21, 2018). Effective October 1, 2018, the Act requires remote sellers to register

with the Department and collect and remit Use Tax on sales to Illinois purchasers if they

meet specific selling thresholds. Retailers whose cumulative gross receipts from sales of

tangible personal property to purchasers in Illinois are $100,000 or more, or who enter

into 200 or more separate transactions for the sale of tangible personal property to

purchasers in Illinois, must register and collect and remit Use Tax. The Act provides that

retailers must determine on a quarterly basis whether they meet either of the selling

thresholds for the immediately preceding 12-month period; if they meet either of the

selling thresholds, they are required to collect and remit Use Tax and file returns for the

subsequent year. These regulations implement the provisions of the Act. They provide

key definitions; explain how retailers assess their selling activities by making quarterly

lookback determinations; and provide rules that retailers must apply in determining if

they have met either of the selling thresholds. Examples are provided throughout the

regulations. The regulations also generally describe the relationship of these regulations

to other nexus regulations, the types of retailers that may be affected by these new nexus

provisions, and the Use Tax that must be collected, including the way it is distributed in

Illinois.

11) Are there any other rulemakings to this Part pending? Yes

Section Numbers: Proposed Actions: Illinois Register Citations:

150.311 Repealed 42 Ill. Reg. 6280; April 6, 2018

150.340 Repealed 42 Ill. Reg. 6280; April 6, 2018

12) Statement of Statewide Policy Objective: This rulemaking neither imposes a State

mandate nor modifies an existing mandate.

13) Information and questions regarding this emergency rule shall be directed to:

Jerilynn Troxell Gorden

Illinois Department of Revenue

101 West Jefferson MC 5-500


217/782-2844

The full text of the Emergency Amendment begins on the next page:


18



TITLE 86: REVENUE

CHAPTER I: DEPARTMENT OF REVENUE

PART 150

USE TAX

SUBPART A: NATURE OF THE TAX

Section

150.101 Description of the Tax

150.105 Rate and Base of Tax

150.110 How To Compute Depreciation

150.115 How To Determine Effective Date

150.120 Effective Date of New Taxes

150.125 Relation of Use Tax to Retailers' Occupation Tax

150.130 Accounting for the Tax

150.135 How to Avoid Paying Tax on Use Tax Collected From the Purchaser


Section

150.201 General Definitions

SUBPART C: KINDS OF USES AND USERS NOT TAXED

Section

150.301 Cross References

150.305 Effect of Limitation that Purchase Must be at Retail From a Retailer to be Taxable

150.306 Interim Use and Demonstration Exemptions

150.310 Exemptions to Avoid Multi-State Taxation

150.311 Commercial Distribution Fee Sales Tax Exemption

150.315 Non-resident Exemptions

150.320 Meaning of "Acquired Outside This State"

150.325 Charitable, Religious, Educational and Senior Citizens Recreational

Organizations as Buyers

150.330 Governmental Bodies as Buyers

150.331 Persons Who Lease Tangible Personal Property to Exempt Hospitals

150.332 Persons Who Lease Tangible Personal Property to Governmental Bodies

150.335 Game or Game Birds Purchased at Game Breeding and Hunting Areas or Exotic


18



Game Hunting Areas

150.336 Fuel Brought into Illinois in Locomotives

150.337 Food, Drugs, Medicines and Medical Appliances When Purchased for Use by a

Person Receiving Medical Assistance under the Illinois Public Aid Code

150.340 Manufacturing Machinery and Equipment; Production Related Tangible Personal

Property; Department Determination of Amount of Exemption

SUBPART D: COLLECTION OF THE USE TAX FROM USERS BY RETAILERS

Section

150.401 Collection of the Tax by Retailers From Users

150.405 Tax Collection Brackets

150.410 Tax Collection Brackets for a 2¼% Rate of Tax (Repealed)

150.415 Tax Collection Brackets for a 2½% Rate of Tax (Repealed)

150.420 Tax Collection Brackets for a 2¾% Rate of Tax (Repealed)

150.425 Tax Collection Brackets for a 3% Rate of Tax (Repealed)

150.430 Tax Collection Brackets for a 3⅛% Rate of Tax (Repealed)















150.505 Optional 1% Schedule (Repealed)

150.510 Exact Collection of Tax Required When Practicable

150.515 Prohibition Against Retailer's Representing That He Will Absorb The Tax

150.520 Display of Tax Collection Schedule (Repealed)

150.525 Methods for Calculating Tax on Sales of Items Subject to Differing Tax Rates

SUBPART E: RECEIPT FOR THE TAX


18



Section

150.601 Requirements

SUBPART F: SPECIAL INFORMATION FOR TAXABLE USERS

Section

150.701 When and Where to File a Return

150.705 Use Tax on Items that are Titled or Registered in Illinois

150.710 Procedure in Claiming Exemption from Use Tax

150.715 Receipt for Tax or Proof of Exemption Must Accompany Application for Title or

Registration

150.716 Display Certificates for House Trailers

150.720 Issuance of Title or Registration Where Retailer Fails or Refuses to Remit Tax

Collected by Retailer from User

150.725 Direct Payment of Tax by User to Department on Intrastate Purchase Under

Certain Circumstances

150.730 Direct Reporting of Use Tax to Department by Registered Retailers

SUBPART G: REGISTRATION OF OUT-OF-STATE RETAILERS

Section

150.801 When Out-of-State Retailers Must Register and Collect Use Tax

150.802 Trade Show Appearances

150.803 Wayfair Nexus – Nexus Without Physical Presence

EMERGENCY

150.805 Voluntary Registration by Certain Out-of-State Retailers

150.810 Incorporation by Reference

SUBPART H: RETAILERS' RETURNS

Section

150.901 When and Where to File

150.905 Deduction for Collecting Tax


150.915 Itemization of Receipts from Sales and the Tax Among the Different States from

Which Sales are Made into Illinois

SUBPART I: PENALTIES, INTEREST, STATUTE OF LIMITATIONS

AND ADMINISTRATIVE PROCEDURES


18



Section

150.1001 General Information

SUBPART J: TRADED-IN PROPERTY

Section


SUBPART K: INCORPORATION OF ILLINOIS

RETAILERS' OCCUPATION TAX REGULATIONS BY REFERENCE

Section


SUBPART L: BOOKS AND RECORDS

Section

150.1301 Users' Records

150.1305 Retailers' Records

150.1310 Use of Signs to Prove Collection of Tax as a Separate Item

150.1315 Consequence of Not Complying with Requirement of Collecting Use Tax

Separately From the Selling Price


SUBPART M: CLAIMS TO RECOVER ERRONEOUSLY PAID TAX

Section

150.1401 Claims for Credit – Limitations – Procedure

150.1405 Disposition of Credit Memoranda by Holders Thereof

150.1410 Refunds

150.1415 Interest

150.TABLE A Tax Collection Brackets

AUTHORITY: Implementing the Use Tax Act [35 ILCS 105] and authorized by Section 2505-

90 of the Civil Administrative Code of Illinois [20 ILCS 2505/2505-90].


18



SOURCE: Adopted August 1, 1955; amended at 4 Ill. Reg. 24, p. 553, effective June 1, 1980;


October 6, 1981; codified at 6 Ill. Reg. 9326; amended at 8 Ill. Reg. 3704, effective March 12,

1984; amended at 8 Ill. Reg. 7278, effective May 11, 1984; amended at 8 Ill. Reg. 8623,

effective June 5, 1984; amended at 11 Ill. Reg. 6275, effective March 20, 1987; amended at 14

Ill. Reg. 6835, effective April 19, 1990; amended at 15 Ill. Reg. 5861, effective April 5, 1991;

emergency amendment at 16 Ill. Reg. 14889, effective September 9, 1992, for a maximum of

150 days; amended at 17 Ill. Reg. 1947, effective February 2, 1993; amended at 18 Ill. Reg.

1584, effective January 13, 1994; amended at 20 Ill. Reg. 7019, effective May 7, 1996; amended

at 20 Ill. Reg. 16224, effective December 16, 1996; amended at 22 Ill. Reg. 21670, effective

November 25, 1998; amended at 24 Ill. Reg. 10728, effective July 7, 2000; amended at 25 Ill.

Reg. 953, effective January 8, 2001; emergency amendment at 25 Ill. Reg. 1821, effective

January 16, 2001, for a maximum of 150 days; amended at 25 Ill. Reg. 5059, effective March 23,

2001; amended at 25 Ill. Reg. 6540, effective May 3, 2001; amended at 25 Ill. Reg. 10937,

effective August 13, 2001; amended at 26 Ill. Reg. 971, effective January 15, 2002; amended at

26 Ill. Reg. 9902, effective June 24, 2002; amended at 27 Ill. Reg. 1607, effective January 15,

2003; emergency amendment at 27 Ill. Reg. 11209, effective July 1, 2003, for a maximum of 150

days; emergency expired November 27, 2003; emergency amendment at 28 Ill. Reg. 15266,

effective November 3, 2004, for a maximum of 150 days; emergency expired April 1, 2005;

amended at 29 Ill. Reg. 7079, effective April 26, 2005; emergency amendment at 32 Ill. Reg.

8806, effective May 29, 2008, for a maximum of 150 days; emergency expired October 25,


effective December 1, 2008; amended at 38 Ill. Reg. 20022, effective October 1, 2014; amended

at 39 Ill. Reg. 11085, effective July 21, 2015; amended at 40 Ill. Reg. 13471, effective

September 12, 2016; amended at 42 Ill. Reg. 15446, effective July 27, 2018; emergency

amendment at 42 Ill. Reg. 17247, effective September 11, 2018, for a maximum of 150 days.

SUBPART G: REGISTRATION OF OUT-OF-STATE RETAILERS

Section 150.803 Wayfair Nexus – Nexus Without Physical Presence

EMERGENCY

a) Background. An out-of-State retailer (a "remote retailer") making sales to Illinois

purchasers from locations outside Illinois is required to register with the

Department and collect and remit Use Tax on those sales if it falls within the

definition of a "retailer maintaining a place of business in this State" in Section 2

of the Use Tax Act, 35 ILCS 105/2. The Department is authorized to require

these retailers to act as tax collectors because they have established sufficient


18



contacts, or nexus, with Illinois. There are two groups of remote retailers that

must collect Use Tax on sales to Illinois purchasers:

1) Remote retailers with a physical presence in Illinois. Prior to October 1,

2018, remote retailers must have a physical presence in Illinois before they

can be required to collect Use Tax. The types of activities constituting a

physical presence, as limited by the series of court cases described below,

are found in Section 2 of the Use Tax Act's definition of a "retailer

maintaining a place of business" in Illinois. See, 35 ILCS 105/2. The

physical presence requirement was established in a series of United States

Supreme Court decisions. See, for example, Scripto v. Carson, 362 U.S.

207 (1960); National Bellas Hess v. Department of Revenue of the State

of Illinois, 386 U.S. 753 (1967); Quill Corporation v. North Dakota, 504

U.S. 298 (1992). In 1996, the Illinois Supreme Court ruled that remote

retailers need only "more than the slightest" physical presence to be

required to collect Use Tax. See Brown's Furniture v. Wagner, 171 Ill. 2d

410 (1996). Any remote retailer that currently has a physical presence in

Illinois will continue to be required to act as a Use Tax collector.

Regulations describing these types of retailers are found at 86 Ill. Adm.

Code 150.801 and 150.802. NOTE: The provisions of this Section

150.803 do not apply to remote retailers with a physical presence in

Illinois.

2) Remote retailers without a physical presence in Illinois. In South Dakota

v. Wayfair, Inc., No. 17-494 (U.S. June 21, 2018), the U.S. Supreme Court

upheld a South Dakota statute that imposed tax collection obligations on

remote retailers that met specific selling thresholds but had no physical

presence in the state. This decision abrogated the longstanding physical

presence requirement of Quill, deeming it "unsound and incorrect."

Illinois Public Act 100-587 enacted nexus standards, effective October 1,

2018, that are virtually identical to those upheld in Wayfair. This

regulation explains the requirements for "Wayfair nexus" in Illinois.

b) Wayfair nexus. Public Act 100-587 requires remote retailers with no physical

presence in Illinois to register and collect and remit Use Tax, as provided below:

1) Beginning October 1, 2018, a retailer making sales of tangible personal

property to purchasers in Illinois from outside of Illinois must register

with the Department and collect and remit Use Tax if


18



A) The cumulative gross receipts from sales of tangible personal

property to purchasers in Illinois are $100,000 or more; or

B) The retailer enters into 200 or more separate transactions for the

sale of tangible personal property to purchasers in Illinois.

2) A retailer shall determine on a quarterly basis, ending on the last day of

March, June, September, and December, whether he or she meets either of

the criteria of subsection (b)(1) for the preceding 12-month period. If the

retailer meets either of the criteria of subsection (b)(1) for a 12-month

period, he or she is considered a retailer maintaining a place of business

in Illinois and is required to collect and remit the Use Tax and file returns

for one year.

A) At the end of that one-year period, the retailer shall determine

whether he or she met either of the criteria of subsection (b)(1)

during the preceding 12-month period. If the retailer met either of

the criteria in subsection (b)(1) for the preceding 12-month period,

he or she is considered a retailer maintaining a place of business

in Illinois and is required to collect and remit Use Tax and file

returns for the subsequent year.

B) If at the end of a one-year period a retailer that was required to

collect and remit the Use Tax determines that he or she did not

meet either of the criteria in subsection (b)(1) during the preceding

12-month period, the retailer shall subsequently determine on a

quarterly basis, ending on the last day of March, June, September,

and December, whether he or she meets either of the criteria of

subsection (b)(1) for the preceding 12-month period. [35 ILCS

105/2(9)]

c) Preliminary evaluation of applicability of this Section 150.803. This Section

150.803 is not applicable to the specific types of remote retailers described in

subsections (c)(1) and (c)(2). Remote retailers are cautioned to first evaluate

these provisions to determine whether they must proceed to calculate the

thresholds under subsection (c)(3).


18



1) This Section 150.803 applies only to remote retailers who do not have a

physical presence in Illinois. While remote retailers may believe they do

not have a physical presence in Illinois, they must carefully examine their

activities in making this determination. Many times, such retailers

actually do have a physical presence in Illinois because they maintain

inventory in Illinois from which sales are filled. When sales made to

Illinois purchasers are filled from Illinois inventory, these retailers incur

Retailers' Occupation Tax liability on those sales (for further information

on these transactions, see subsection (g)(4) of this Section). The presence

of inventory in Illinois creates physical presence nexus for these remote

retailers with respect to sales they make from outside Illinois that are not

filled from their Illinois inventory. As a result of this physical presence

nexus, they are required to collect Use Tax on sales made to Illinois

purchasers from outside Illinois that are not filled from their Illinois

inventory. Remote retailers that engage in these types of selling are not

subject to this Section 150.803 because they already have nexus through

their physical presence in Illinois.

2) This section does not apply to remote retailers who exclusively make

nontaxable sales (i.e., 100% of their sales to Illinois purchasers are

exempt). For example, if Remote Retailer A's only activities are sales of

exempt manufacturing machinery and equipment to Illinois manufacturers,

it is not required to register with the Department. If Remote Retailer A

makes any taxable sales, however, this Section 150.803 applies and it must

determine whether it meets either of the thresholds in subsection (b)(1)

and is required to collect Use Tax.

3) Calculation of the number of separate transactions or amount of gross

receipts. Wayfair nexus is created if a remote retailer's cumulative gross

receipts from sales of tangible personal property to purchasers in Illinois

are $100,000 or more, or if it enters into 200 or more separate transactions

for the sale of tangible personal property to purchasers in Illinois.

A) "Gross receipts" means all the consideration actually received for a

sale by the remote retailer. See 86 Ill. Adm. Code 130.401 for

additional information regarding gross receipts.


18



B) "Illinois purchaser" means a person in Illinois who, through a sale

at retail, acquires the ownership of tangible personal property for

a valuable consideration. See 35 ILCS 105/2.

C) "Entering into a sale" occurs when a remote retailer has taken

action that binds it to a sale. This may occur, even though the

tangible personal property that has been sold has not yet shipped to

the purchaser.

EXAMPLE: On August 20, 2018, a remote retailer takes actions

binding it to a sale that is scheduled for shipment on October 15.

This sale must be included in the calculation used to determine the

retailer's sales transactions for its initial lookback period under

subsection (d)(1).

D) "Separate transactions" means sales transactions which are

documented on separate invoices, regardless of the manner in

which the tangible personal property is delivered to the purchaser.

EXAMPLE 1: A purchaser orders 12 items of clothing from a

remote retailer. He receives an invoice confirming his order of 12

items. However, due to a back order, 3 of the clothing items are

shipped separately from the other 9 items. Shipment of the 3 back-

ordered items, even with a separate shipping invoice, is not

considered a separate transaction because the original transaction

was invoiced as one sale.

EXAMPLE 2: A purchaser places an order of home repair tools at

8:00 a.m. from a remote retailer. She receives an invoice

confirming her order at 8:15 a.m. At 2:00 p.m., the purchaser

realizes she needs 5 other tools to complete the job, and orders

these tools from the same remote retailer. The remote retailer

confirms this order with a separate invoice. In this example, two

different transactions have occurred. This is the case, even if the

retailer sends all the ordered tools to the purchaser in one package.

EXAMPLE 3: A mother places an order with Company B for care

packages to be delivered to her son's dormitory at 8 scheduled


18



intervals during the school year. Each delivery is separately

invoiced. These are counted as 8 separate transactions.

E) Remote retailers must apply the following rules governing whether

a transaction should be included or excluded when determining if

they meet either of the thresholds in subsection (b)(1):

i) Sales for resale must be excluded. See 86 Ill. Adm. Code

130.201.

EXAMPLE: Remote Retailer A makes sales of seedlings

to Company B. Company B provides a resale certificate

indicating that 60% of the seedlings will be sold to

customers at retail (a purchase for resale) and that it will

use 40% of the seedlings in its landscaping business (a

purchase for use). If Remote Retailer A calculates the

threshold using gross receipts, it should include only 40%

of the gross receipts. If it calculates the threshold using

transactions, however, the entire transaction with Company

B must be included.

ii) Sales of tangible personal property that is required to be

registered with an agency of this State, including motor

vehicles, watercraft, aircraft, and trailers, that are made

from locations outside Illinois to Illinois purchasers must

be excluded. Taxes on these items will continue to be paid,

as required by Section 10 of the Use Tax Act (35 ILCS

105/10), by purchasers as a condition of titling or

registering these items.

iii) Occasional sales must be excluded. See 86 Ill. Adm. Code

130.110. Such sales are not considered sales at retail. For

example, a retailer that engages in selling computers and

software over the Internet closes a regional office in

Michigan. As part of that closure, it sells its office

furniture and printing equipment on an Internet

marketplace platform. Transactions and gross receipts

from these sales are excluded from the calculation because

they are not considered sales at retail.


18



iv) Sales made by a remote retailer that are subject to Retailers'

Occupation Tax must be excluded. For example, sales

made by a remote retailer at an Illinois trade show that are

subject to Retailers' Occupation Tax are excluded for

purposes of calculating the thresholds in subsection (b)(1).

v) All sales of tangible personal property, other than those

excluded by this subsection (c)(3)(E), even if they are

exempt from tax, must be included for purposes of

calculating the thresholds in subsection (b)(1).

d) Determination of obligation to begin tax collection on October 1, 2018;

determination of obligation to continue tax collection.

1) In order to determine if it is required to begin collecting Use Tax on

October 1, 2018 for sales made on and after October 1, 2018, a remote

retailer must examine its selling activities for the period September 1,

2017 through August 31, 2018. If it met either of the thresholds in

subsection (b)(1) during this period, it must register with the Department

and collect Use Tax for a one-year period on sales made to Illinois

purchasers on and after October 1, 2018. Filing frequency may be

monthly or quarterly, as provided in accordance with regulations at 86 Ill.

Adm. Code 130.501 (monthly filing applies when a retailer's average

monthly tax liability exceeds $200) and 130.502 (quarterly filing applies

when a retailer's average monthly tax liability does not exceed $200). For

monthly filers, the first return for sales made in October 2018 is due on or

before November 20, 2018.

2) At the end of the one-year collection period in subsection (d)(1), the

remote retailer must examine its sales for the year it collected Use Tax. If

it determines its sales to Illinois purchasers met either of the thresholds in

subsection (b)(1) during that year, it must continue to collect taxes for

another year. The remote retailer must make this analysis each year

thereafter that it is required to collect Use Tax.

3) Alternatively, if at the end of the one-year collection period in subsection

(d)(1), the remote retailer determines that its sales to Illinois purchasers


18



did not meet either of the thresholds in subsection (b)(1) during that year,

it may discontinue acting as a Use Tax collector.

A) The Department strongly recommends that remote retailers

continue collecting the Use Tax as a courtesy to their Illinois

purchasers, as those purchasers will still incur a Use Tax liability

which they must otherwise self-assess and remit directly to the

Department. Such remote retailers may change their filing

frequency with the Department at this time in accordance with

regulations at 86 Ill. Adm. Code 130.501 (monthly as noted in

subsection (d)(1)), 130.502 (quarterly, as noted in subsection

(d)(1)), or 130.510 (annual filing applies if a retailer's average

monthly tax liability does not exceed $50).

B) If a remote retailer is no longer required to collect Use Tax and

chooses to discontinue collection, it must notify the Department.

C) If a remote retailer is no longer required to collect Use Tax and has

chosen to discontinue collection, it must redetermine, on a rolling

quarterly basis, whether it is obligated to once more begin

collecting Use Tax. For each quarter ending on the last day of

March, June, September and December, the remote retailer must

examine its sales for the immediately preceding 12-month period

to determine whether it met either of the thresholds in subsection

(b)(1). If it met either of those thresholds during that 12-month

lookback period, it must collect Use Tax for the following 12-

month period. At the end of that 12-month period, it must examine

its sales as provided in subsections (d)(2)-(3) to determine if it

must continue to collect tax.

e) Determination of tax collection obligation of remote sellers that first begin

making sales after October 1, 2018. Remote retailers that first begin making

sales to Illinois purchasers after October 1, 2018 must determine, on a quarterly

basis, whether they are obligated to begin collecting tax. For each quarter ending

on the last day of March, June, September and December, the remote retailer must

examine its sales for the immediately preceding 12-month period to determine

whether it met either of the thresholds in subsection (b)(1). If it met either of

those thresholds during that 12-month lookback period, it must collect Use Tax

for the following 12-month period. At the end of that 12-month period, it must


18



examine its sales as provided in subsections (d)(2)-(3) to determine if it must

continue to collect tax.

EXAMPLE : Remote Retailer A makes sales to Illinois customers beginning on

November 1, 2019. At the end of December (its first quarterly period), it

calculates that it made 500 sales transactions to Illinois purchasers. As a result, it

is required to collect taxes on sales to Illinois purchasers for a one-year period

beginning January 1, 2020 through December 31, 2020. On December 31, 2020,

it must examine its sales to Illinois purchasers for the one year lookback period

beginning January 1, 2020 through December 31, 2020 to determine if it must

continue to collect tax.

EXAMPLE 2: Remote Retailer A makes sales to Illinois customers beginning on

December 1, 2019. At the end of December, 2019 (its first quarterly period), it

calculates that it has not met the selling thresholds for the previous 12-month

period. Remote Retailer A is not required to begin collecting taxes at this time.

At the end of March, 2020 (its next quarterly period), however, it determines that

it made $200,000 in sales for the preceding 12-month period. As a result, it is

required to collect taxes on sales to Illinois purchasers for a one-year period

beginning April 1, 2020 through March 31, 2021. On March 31, 2021, it must

examine its sales to Illinois purchasers for the one year lookback period beginning

April 1, 2020 through March 31, 2021 to determine if it must continue to collect

tax.

f) Affected remote retailers. Remote retailers are advised to closely examine all their

activities to determine if they are required to register under the new nexus

standards of P.A. 100-587. For instance, remote retailers that voluntarily collect

Use Tax may become mandatory Use Tax collectors. Other remote retailers, such

as telephone, television and catalog sellers, may be required to register and collect

and remit Use Tax on sales to Illinois purchasers. Other types of remote retailers

that may be required to register could include:

1) Remote retailers without physical presence in Illinois who make sales to

Illinois purchasers using a traditional drop-ship arrangement. See 86 Ill.

Adm. Code 130.225.

2) Remote retailers without physical presence who make sales to Illinois

purchasers using an Internet marketplace platform.


18



3) Remote retailers that meet the "safe harbor" rules for trade shows, but who

may nonetheless meet the new Wayfair thresholds. See, 86 Ill. Adm.

Code 150.802.

EXAMPLE: Retailer A operates a booth at a trade show and meets the

"safe harbor" rules for trade show attendance. Prior to October 1, 2018, it

would not be required to collect Use Tax on sales made from outside

Illinois to Illinois purchasers because it is not considered to have a

physical presence in Illinois. On August 1, 2018, however, it determines

that it has met the thresholds under this Section for collecting Use Tax on

sales made from outside Illinois to Illinois customers. Beginning October

1, 2018, it is required to collect and remit Use Tax on all sales to Illinois

purchasers. NOTE: It must also remit Retailers' Occupation Tax on any

sales it makes to purchasers at an Illinois trade show. See Section 150.802

(e).

4) Internet auctioneers. Rules at 86 Ill. Adm. Code 130.1915 provide

additional information regarding the tax liability of auctioneers.

g) Tax collection. Once a remote retailer determines it has nexus, it must register

with the Department and collect and remit Use Tax on the sales it makes to

Illinois purchasers from its out-of-state location. Remote retailers are subject to

all provisions of the Use Tax Act, 35 ILCS 105, and regulations promulgated

thereunder. See 86 Ill. Adm. Code 150.

1) Sales made to purchasers by remote retailers from out-of-state locations

are subject to the State 6.25% Use Tax (1% for qualifying low rate items;

see 86 Ill. Adm. Code 130.310 and 130.311).

2) Illinois tax statutes do not authorize local jurisdictions, except for the City

of Chicago, to impose Use Tax on general merchandise (the tax imposed

by the City of Chicago is collected by the City of Chicago and not by the

Department). As a result, there is no local Use Tax for remote retailers to

collect on returns filed with the Department.

3) Illinois tax statutes only authorize local jurisdictions to impose occupation

taxes upon retailers who are engaged in the business of selling tangible

personal property within that jurisdiction. Activities that constitute

"engaging in the occupation of selling tangible personal property" are


18



described in regulations, for example, at 86 Ill. Adm. Code 270.115.

Typical examples include brick and mortar stores making over-the-counter

sales. Retailers that engage in selling tangible personal property in Illinois

are subject to the 6.25% State Retailers' Occupation Tax and any

applicable local occupation taxes.

4) It is important to note that a remote retailer that incurs a Use Tax

collection obligation may also make some sales that are subject to State

and local retailers' occupation tax. For instance, a retailer will incur State

and local retailers' occupation tax when the tangible personal property sold

by the remote retailer is in an inventory in the possession of the retailer

located within a jurisdiction in Illinois at the time of its sale. See, for

example, 86 Ill. Adm. Code 270.115 (d)(3)(A). As a result, remote

retailers are cautioned to examine the nature of their selling operations,

since some sales may be subject to State and local retailers' occupation

tax.

h) Tax distribution – Differences in distribution of Use Tax and Retailers'

Occupation Tax

1) Use Tax remitted by remote sellers is distributed differently than Retailers'

Occupation Tax and local occupation taxes. The 1.25% local share of the

State 6.25% Use Tax is deposited into the State and Local Sales Tax

Reform Fund, 30 ILCS 105/6z-17. After amounts are transferred to the

Tax Compliance and Administration Fund, specific percentages are

allocated to the City of Chicago, the Regional Transportation Authority

Occupation and Use Tax Replacement Fund, and the Madison County

Mass Transit District. Next, specific amounts are transferred into the

Build Illinois Fund. The remainder of the monies are transferred into the

Local Government Distributive Fund (30 ILCS 115/1), from which they

are distributed to all municipalities and counties (except for Chicago,

which is distributed above) based upon the population of each

municipality or county in proportion to the total State population.

2) In contrast, the 1.25% local share of the 6.25% State Retailers' Occupation

Tax, as well as the entire amount of locally-imposed occupation taxes, are

distributed to the local taxing jurisdiction in which the selling occurred.

The location in which selling occurs is determined in accordance with

regulations, for example, at 86 Ill. Adm. Code 270.115.


18



(Source: Added by emergency rulemaking at 42 Ill. Reg. 17247, effective September 11,

2018, for a maximum of 150 days)


18


NOTICE OF EMERGENCY RULES

1) Heading of the Part: AIM HIGH Grant Pilot Program


3) Section Numbers: Emergency Actions:

2766.10 New Section

2766.15 New Section

2766.20 New Section

2766.30 New Section

2766.40 New Section

2766.50 New Section

4) Statutory Authority: Implementing and authorized by Section 65.100 of the Higher

Education Student Assistance Act [110 ILCS 947/65.100].

5) Effective Date of Rules: September 13, 2018

6) If these emergency rules are to expire before the end of the 150-day period, please

specify the date on which it is to expire: None

7) Date Filed with the Index Department: September 13, 2018

8) A copy of these emergency rules, including any material incorporated by reference, is on

file in the Agency's principal office and is available for public inspection.

9) Reason for Emergency: As part of legislation during the spring 2018 session of the

Illinois General Assembly, PA 100.587 created this new program with an effective date

of June 4, 2018. As a result of this effective date, rules by which the program will be

implemented and administered are being created.

10) A Complete Description of the Subjects and Issues Involved: Effective June 4, 2018,

Section 65.100 was added to the Higher Education Student Assistance Act [110 ILCS

947/65.100] to create the AIM HIGH Grant Pilot Program. The intent of the program is

to increase enrollment at Illinois public 4-year universities by providing those universities

with the option for additional funding through a new, merit-based and means-tested

matching scholarship for Illinois students.

11) Are there any rulemakings pending on this Part? No


18




State mandate as defined in Section 3(b) of the State Mandates Act [30 ILCS 805/3(b)]

and does not necessitate a local government to establish, expand or modify its activities

in such a way as to necessitate additional expenditures from local revenues.

13) Information and questions regarding these emergency rules shall be directed to:

Lynn Hynes

Agency Rules Coordinator

Illinois Student Assistance Commission

1755 Lake Cook Road

Deerfield IL 60015

847/948-8500, ext. 18032


The full text of these Emergency Rules begins on the next page:


18



TITLE 23: EDUCATION AND CULTURAL RESOURCES

SUBTITLE A: EDUCATION

CHAPTER XIX: ILLINOIS STUDENT ASSISTANCE COMMISSION

PART 2766

AIM HIGH GRANT PILOT PROGRAM

Section

2766.10 Summary and Purpose

EMERGENCY

2766.15 Definitions

EMERGENCY

2766.20 Institutional Applicant Eligibility

EMERGENCY

2766.30 Program Procedures

EMERGENCY

2766.40 Institutional Procedures

EMERGENCY

2766.50 Student Applicant and Recipient Eligibility

EMERGENCY

AUTHORITY: Implementing and authorized by Section 65.100 of the Higher Education

Student Assistance Act [110 ILCS 947/65.100].

SOURCE: Former Part 2766 repealed at 31 Ill. Reg. 9523, effective July 1, 2007; new Part 2766

adopted by emergency rulemaking at 42 Ill. Reg. 17265, effective September 13, 2018, for a

maximum of 150 days.

Section 2766.10 Summary and Purpose

EMERGENCY

a) In an effort to increase enrollment of Illinois residents at Illinois public

universities, increase overall retention of Illinois college students in Illinois and

encourage Illinois residents to attain a college degree, state appropriated funds are

to be used to enable Illinois public universities to establish a merit-based, means-

tested award program known as the AIM HIGH Grant Pilot Program to make

college more affordable at their campuses while reducing the amount of student

loan debt. Each eligible public university campus must match those funds with

non-loan financial aid for eligible students and maintain or exceed levels of


18



financial aid to Illinois residents from fiscal year 2018. ISAC is responsible for

administering the distribution of AIM HIGH grant funds to the public universities

pursuant to this Part and governing laws.

b) This Part establishes rules that govern the Aspirational Institutional Match

Helping Illinois Grow Higher Education (AIM HIGH) Grant Pilot Program.

Additional rules and definitions are contained in General Provisions, 23 Ill. Adm.

Code 2700.


EMERGENCY

"Illinois High School" − any high school located in Illinois whether or not

recognized by the State Board of Education.

"Maintenance of Effort" or "MOE" − a requirement that in the academic year

AIM HIGH funds are received by the public university campus, the total amount

of qualifying non-loan financial aid the public university campus awards to its Illinois

resident undergraduate students must be at least as much as those same awards in

fiscal year 2018 and shall not include AIM HIGH funded awards or matching

requirement awards made in that academic year.

"Matching Requirement" − a requirement that the public university campus use its

own funds in the academic year for which the AIM HIGH funds are used, to

equally match those AIM HIGH funds allocated to it, to award non-loan financial

aid to pay for tuition and other necessary fees for its students who meet at least

the qualifications described in Section 2766.50(b).

"Public University" − any public 4-year university in Illinois.

"Public University Campus" − any campus under the governance or supervision

of a public university.

"Qualifying non-loan financial aid" – non-loan financial aid, the awarding of which is

mostly within the control of the public university campus; the data requested to

demonstrate such awarding shall be determined by ISAC and shall be applied

uniformly across university campuses.

"Resident of Illinois" or "Illinois Resident" − defined by the laws governing

eligibility for in-state tuition at the public university campus.


18



"Tuition and other necessary fees" − includes the customary charge for

instruction and use of facilities in general and the additional fixed fees charged

for specified purposes that are required generally of non-grant recipients for each

academic period for which the grant applicant actually enrolls, but does not

include fees payable only once or breakage fees and other contingent deposits

that are refundable in whole or in part. The Commission may adopt, by rule not

inconsistent with this Section, detailed provisions concerning the computation of

tuition and other necessary fees.

Section 2766.20 Institutional Applicant Eligibility

EMERGENCY

a) A public university applicant is eligible to apply for and receive an allocation of

an appropriation of AIM HIGH Grant Pilot Program funds if it:

1) submits a timely and complete application that includes a description of

the award(s) to be funded with AIM HIGH funds that meet program

eligibility criteria consistent with Section 2766.50(a), (b) and (c) to be

used solely for tuition and other necessary fees at that university or

university campus during the academic year, not including the summer

term;

2) certifies in good faith that it shall use its own funds in the academic year

for which the AIM HIGH funds are requested, to equally match those

AIM HIGH funds allocated to it, to award non-loan financial aid to pay for

tuition and other necessary fees for its students who meet at least the

qualifications described in Section 2766.50(b);

3) certifies the total amount of qualifying non-loan financial aid it awarded to

its Illinois resident undergraduate students in fiscal year 2018, which

number shall serve as a baseline for its MOE going forward;

4) certifies that during the academic year for which the AIM HIGH funds are

requested it shall, in addition to awards made for the matching

requirement, make a good faith effort to award qualifying non-loan

financial aid to its Illinois resident undergraduate students, not including

AIM HIGH funded awards, in an amount that is at least equal to the

amount of aid awarded to its Illinois resident undergraduate students at


18



that public institution in fiscal year 2018, or if such enrollment is less than

in fiscal year 2018, that total amount calculated on a per student basis;

5) has met all information reporting requirements in Section 2766.40(c);

6) has not been suspended or disqualified from receiving an allocation for the

upcoming academic year for noncompliance with the terms of the grant

agreement, the law, this Part, other administrative rules or policies and

procedures; and

7) enters into an AIM HIGH Grant Pilot program grant agreement with

ISAC.

b) For renewal applications, in addition to complying with Section 2766.20(a), the

public university campus shall:

1) demonstrate that it met its matching requirement and MOE in the previous

academic year;

2) in any academic year the public university campus fails to meet its entire

matching requirement, demonstrate that it made a good faith effort to meet

its matching requirement to be eligible for an allocation that is necessary

to fund only renewal AIM HIGH funded awards in the next academic

year; and

3) in any academic year where the public university campus fails to make its

entire MOE, demonstrate that it made a good faith effort to make its MOE

to be eligible for:

A) 100% of its allocation of AIM HIGH program funds if in the

preceding academic year the public university campus made its

entire MOE;

B) 90% of the previous academic year's AIM HIGH program funds

received and distributed by the public university campus if it is the

second consecutive academic year the public university campus

fails to make its entire MOE; and


18



C) an allocation that is necessary to fund only renewal AIM HIGH

program funded awards in any academic year where it is the third

or more consecutive academic year that the public university

campus fails to make its entire MOE.

Section 2766.30 Program Procedures

EMERGENCY

a) Each year, on a date determined by ISAC, ISAC will request from each public

university campus the number of undergraduate students who are residents of

Illinois and citizens or eligible noncitizens of the US and who were enrolled at

that public university campus in the previous academic year.

b) ISAC will determine for each public university campus its proportionate

allocation of appropriated funds for the upcoming academic year using enrollment

data provided pursuant to Section 2766.30(a).

c) After determining the allocation of the appropriation for each public university

campus, ISAC will inform each public university campus of the amount of its

available allocation for the upcoming academic year.

d) Annually, each public university campus may opt to apply for all or part of its

allocation of appropriated funds.

e) If a public institution does not request all or part of its allocation, ISAC will

reallocate those unclaimed funds, using the same methodology as the initial

allocation determination, among the remaining universities that have indicated a

desire to receive an additional allocation.

f) The university campus shall complete an application for the AIM HIGH funds

that shall be due by a date determined by ISAC in a form provided by ISAC and

shall include at a minimum the following information and documentation:

1) the amount of the allocation the university has claimed for the upcoming

academic year;

2) the total university campus funds used to match funds received from ISAC

in the previous academic year, if any;


18



3) the total number of undergraduate students who are residents of Illinois

from the previous academic year;

4) all information and certifications that demonstrate eligibility as described

in Section 2766.20 Institutional Applicant Eligibility; and

5) any other information or certifications required by law, the grant

agreement or ISAC procedures.

g) If the application is incomplete, ISAC will notify the applicant, who will have an

opportunity to furnish the missing information. The application will only be

considered for processing as of the date the completed application is received at

ISAC's Deerfield office.

h) A university that does not submit a complete application by the date designated

by ISAC may not be eligible to receive its allocation. Instead, its share may be

distributed by ISAC using the allocation determination methodology in Section

2766.30(a) to make the remaining funds available for other universities who filed

timely applications and indicate a desire for an additional allocation.

i) The total amount of grant funds to be distributed among eligible applicant

universities in a given academic year is contingent upon available funding from

the previous fiscal year and whether all eligible institutions elect to receive their

full allocation.

j) No funds shall be distributed to the public university campus until all AIM HIGH

funds from the previous academic year have been reconciled and any awarded

funds not used to fund awards consistent with Section 2766.20 Institutional

Applicant Eligibility have been returned.

k) Depending upon the number of academic years and the degree to which the public

university campus fails to make its matching requirement or MOE, the university

campus may be suspended from participating in the AIM HIGH program in an

academic year, but shall be eligible to regain eligibility in the academic year

following such suspension.

l) When making the determination to reduce an award consistent with Section

2766.20(b)(2) and (3), or suspend a university campus from the AIM HIGH

program for not meeting its matching requirement or MOE consistent with


18



Section 2766.30(k), ISAC shall take into account the circumstances that may have

contributed to such failure, such as, but not limited to, a reduction in state

appropriations to fund the public university campus in that academic year; the

number of matching requirement or MOE qualifying awards offered by the public

institution, but not accepted by students in that academic year; tuition waiver

limitations established by the Illinois Board of Higher Education; and the

commitment demonstrated by the public university campus to maintaining level

tuition and other necessary fees for Illinois residents over multiple academic

years.

m) On or before October 1, 2020 and annually on or before October 1 thereafter

ISAC shall submit a report with the findings under Section 2766.40(c) and any

other information regarding the AIM HIGH Grant Pilot Program to:

1) the Governor;

2) the Speaker of the House of Representatives;

3) the Minority Leader of the House of Representatives;

4) the President of the Senate; and

5) the Minority Leader of the Senate.

The reports to the General Assembly shall be filed with the Clerk of the House of

Representatives and the Secretary of the Senate in electronic form only, in the

manner that the Clerk and the Secretary shall direct.

n) ISAC's report may not disaggregate data to a level that may disclose personally

identifying information of individual students. The sharing and reporting of student

data under Section 2766.40(c) must be in accordance with the requirements under

the federal Family Educational Rights and Privacy Act of 1974 and the Illinois

School Student Records Act. All parties must preserve the confidentiality of the

information as required by law. The names of the student award recipients under

this Section are not subject to disclosure under the Freedom of Information Act.

Section 2766.40 Institutional Procedures

EMERGENCY


18



a) In addition to complying with the Program Procedures in Section 2766.30, the

public university campus shall be responsible for administering and making

awards to students in compliance with this section and the policies of the

university campus. For its own awards using its AIM HIGH allocation, a public

university campus shall:

1) establish the amount of the award based on an individual or broad basis

limited by any tuition waiver limitation established by the Illinois Board

of Higher Education;

2) establish reasonable criteria consistent with eligibility criteria in Section

2766.50;

3) use grant funds solely to fund tuition and other necessary fees at that

university campus during the academic year, not including summer terms;

4) renew the award each year for each student who meets the renewal criteria

established by the public university campus consistent with the renewal

eligibility criteria in Section 2766.50 in amounts not less than the amount

provided in the student's first year at that university campus per Section

2766.50;

5) give preference to eligible renewal applicants in any academic year

funding is insufficient to award to all eligible applicants;

6) use its best efforts to delegate grant funds amongst a racially diverse

range of students and not use a student's race, color, religion, sex

(including gender identity, sexual orientation, or pregnancy), national

origin, age, disability, or genetic information to disqualify him or her from

receiving funds under this program;

7) post on its website the criteria and eligibility requirements and the amount

of the award using AIM HIGH funds and provide that information to

ISAC and the Illinois Board of Higher Education to post on their

respective websites;

8) indicate in each initial student award application the renewal criteria for

each academic year and not change those criteria for that recipient;


18



9) make each renewal award contingent upon the availability of funding for

the academic year in which the award is used; and

10) reconcile and return the amount of AIM HIGH funds that were not used

for awards in the academic year for which funds were granted before

receiving the distribution of its allocation for the next academic year.

b) Each institution shall be responsible for meeting its statutorily-mandated

matching requirement and MOE pursuant to Sections 2766.15 and 2766.20 to

remain eligible for its allocation.

c) Annually, on a date and in a format determined by ISAC, each participating

public university campus shall report the following information to ISAC:

1) the Program's impact on tuition revenue and enrollment goals and

increase in access and affordability at the public university campus;

2) total funds received by the public university campus under the Program;

3) total non-loan financial aid awarded to undergraduate students attending

the public university campus;

4) total amount of funds matched by the public university campus;

5) total amount of funds refunded to ISAC by the public university campus;

6) the percentage of total financial aid including awards made with matching

funds distributed under the Program by the public university campus; and

7) the total number of students receiving awards from the public university

campus under the Program including awards made with matching funds

and those students' name, date of birth, grade level, race, ethnicity,

gender, income level, family size, Monetary Award Program eligibility,

Pell Grant eligibility, and ZIP code of residence, the amount of each

award and the total cost of attendance for each student after non-loan

financial aid. This information shall include unit record data on those

students regarding variables associated with the parameters of the public

university campus's Program, including, but not limited to, a student's


18



ACT or SAT college admissions test score, high school or university

cumulative grade point average, or program of study.

Section 2766.50 Student Applicant and Recipient Eligibility

EMERGENCY

a) An eligible student applicant for funding from the AIM HIGH Grant Pilot

Program allocation shall:

1) have attended an Illinois high school;

2) be engaged in a program of study that in due course will be completed by the

end of the school year;

3) apply to be enrolled for the first time at the public university campus where

the award will be used; and

4) meet all the student eligibility qualifications and requirements under

Section 2766.50(b) before receiving an award.

b) In order to meet the eligibility qualifications and requirements, an award recipient

shall:

1) be a resident of Illinois and a citizen or eligible noncitizen of the United

States;

2) file a Free Application for Federal Student Aid (FAFSA) and demonstrate

financial need with a household income no greater than 6 times the

poverty guidelines updated periodically in the Federal Register by the

U.S. Department of Health and Human Services under the authority of 42

U.S.C. 9902(2);

3) meet the minimum cumulative grade point average or ACT or SAT college

admissions test score, as determined by the public university campus;

4) be enrolled in a participating public university campus as an

undergraduate student on a full-time basis;

5) have not yet received a baccalaureate degree or the equivalent of 135

semester credit hours;


18



6) not be incarcerated;

7) not be in default on any student loan nor owe a refund or repayment on

any State or federal grant or scholarship; and

8) meet any other reasonable criteria, as determined by the public university

campus.

c) An AIM HIGH funded award recipient who meets the eligibility criteria for

renewals shall be eligible for an AIM HIGH renewal award in subsequent

academic years, the criteria for which shall be determined by the public university

campus consistent with the criteria in Section 2766.50. AIM HIGH funded award

renewal amounts shall be in an amount not less than the AIM HIGH funded

amount from the renewal applicant's first year of attendance at the university

campus, unless there is a reduction due to changes in the student's cost of

attendance which may be due to:

1) a reduction in credit hours in which he or she is enrolled, but remains a

full time student; or

2) switching to a course of study with a lower tuition rate.

d) An AIM HIGH funded award recipient under Section 2766.50(a) or a renewal

applicant thereof shall be eligible for tuition and other necessary fees in the

amount determined by the public university campus during the academic year, not

including summer terms and shall be eligible to receive other financial aid.

e) The total amount of the AIM HIGH funds awarded to a qualified recipient in a

given academic year when added to other financial aid available to the qualified

recipient for that year shall not exceed the cost of attendance.

f) The amount of the AIM HIGH funded award or the renewal thereof shall be

limited by any tuition waiver limitation established by the Illinois Board of

Higher Education and the availability of funding for that academic year.

g) Applicants eligible for an award using matching requirement funds must meet the

criteria in Section 2766.50(b), and renewal availability and eligibility criteria shall


18



be determined by the public university campus consistent with Section

2766.50(b).


18

JOINT COMMITTEE ON ADMINISTRATIVE RULES

ILLINOIS GENERAL ASSEMBLY

SECOND NOTICES RECEIVED

The following second notices were received during the period of September 11, 2018 through

September 17, 2018. The following rulemakings are scheduled for the October 16th meeting. Other

items not contained in this published list may also be considered. Members of the public wishing

to express their views with respect to a rulemaking should submit written comments to the

Committee at the following address: Joint Committee on Administrative Rules, 700 Stratton

Bldg., Springfield IL 62706.

Second

Notice

Expires

Agency and Rule

Start

of First

Notice

JCAR

Meeting

10/24/18 Illinois Racing Board, Approval of Racing

Officials (11 Ill. Adm. Code 422)

7/20/18

42 Ill. Reg.

14109

10/16/18

10/24/18 Illinois Racing Board, Licensing (11 Ill. Adm.

Code 502)

7/20/18

42 Ill. Reg.

14115

10/16/18

10/24/18 Department of Transportation, Bicycle Reflex

Reflector Requirements (92 Ill. Adm. Code 426)

7/13/18

42 Ill. Reg.

13446

10/16/18

10/25/18 Department of Human Services, Administration

of Medication in Community Settings (59 Ill.

Adm. Code 116)

7/13/18

42 Ill. Reg.

13422

10/16/18

10/27/18 Property Tax Appeal Board, Practice and

Procedure for Appeals Before the Property Tax

Appeal Board (86 Ill. Adm. Code 1910)

3/2/18

42 Ill. Reg.

3862

10/16/18

10/24/18 Department of Insurance, License Documents

Necessary to Engage in Activities and

Examinations (50 Ill. Adm. Code 752)

7/20/18

42 Ill. Reg.

12382

10/16/18

10/27/18 Department of Insurance, Uniform Accounting

Instructions for Fire and Marine and Casualty

7/6/18 10/16/18


18

and Surety Insurers (Repealer) (50 Ill. Adm.

Code 903)

42 Ill. Reg.

12387

10/27/18 Department of Insurance, Admitted Assets

(Repealer) (50 Ill. Adm. Code 945)

7/6/18

42 Ill. Reg.

12454

10/16/18

10/27/18 Capital Development Board, Illinois

Accessibility Code (Repealer) (71 Ill. Adm.

Code 400)

2/9/18

42 Ill. Reg.

2278

10/16/18

10/27/18 Department of Insurance, Internal Security

Standard and Fidelity Bonds (50 Ill. Adm. Code

904)

1/5/18

42 Ill. Reg.

53

10/16/18

10/27/18 Department of Insurance, Illinois Insurance

Exchange Annual Statement (Repealer) (50 Ill.

Adm. Code 551)

7/20/18

42 Ill. Reg.

12376

10/16/18


18

ILLINOIS HOUSING DEVELOPMENT AUTHORITY

AGENCY RESPONSE TO JOINT COMMITTEE ON ADMINISTRATIVE RULES

STATEMENT OF OBJECTION TO EMERGENCY AMENDMENTS

1) Heading of Part: Public Information, Rulemaking and Organization


3) Section Numbers: Emergency Actions:

1975.110 Amendment

1975.510 Amendment

1975.520 Amendment






4) Date Notice of Emergency Amendments published in the Illinois Register: 42 Ill. Reg.

12336; June 29, 2018

5) Date JCAR Statement of Objection published in the Illinois Register: 42 Ill. Reg. 14465;

August 3, 2018

6) Agency Response to Joint Committee Objection: In response to the Objection issued by

the Joint Committee on Administrative Rules at its hearing of July 17, 2018, the Illinois

Housing Development Authority is repealing the emergency rulemaking referenced

above.

ILLINOIS ADMINISTRATIVE CODE Issue Index - With Effective Dates

Rules acted upon in Volume 42, Issue 39 are listed in the Issues Index by Title number, Part number, Volume and Issue. Inquiries about the Issue Index may be directed to the Administrative Code Division at (217) 782-7017/18.

PROPOSED RULES 56 - 2720 ..................... 16965 56 - 2725 ..................... 16978 56 - 2732 ..................... 17002 56 - 2760 ..................... 17008 56 - 2765 ..................... 17028 56 - 2790 ..................... 17048 56 - 2830 ..................... 17052 89 - 140 ..................... 17067 56 - 210 ..................... 17091 74 - 740 ..................... 17103 74 - 740 ..................... 17109 74 - 760 ..................... 17121 74 - 760 ..................... 17145 23 - 2766 ..................... 17233 ADOPTED RULES 56 - 2520 9/17/2018 ..................... 17235 EMERGENCY RULES 86 - 150 9/11/2018 ..................... 17247 23 - 2766 9/13/2018 ..................... 17265 OTHER INFORMATION REQUIRED BY LAW TO BE PUBLISHED IN THE ILLINOIS REGISTER 2 - 1975 ..................... 17281