102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2560

 

Introduced 2/19/2021, by Rep. Deanne M. Mazzochi

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 405/901.5 new

    Amends the Unemployment Insurance Act in relation to fraudulent claims through identity theft. Provides that individuals and employers that become aware of a fraudulent claim for benefits relating to the individual or employer shall report the claim to the Department of Employment Security. Requires the Department to acknowledge receipt of the report within 48 hours of receipt. Provides that the Department shall disclose whether payments were made with respect to the claim. Limits penalties that the Department of the Department of Revenue may impose upon a party reporting a fraudulent claim. Authorizes recovery from the State if a State systems breach caused the fraudulent claim. Provides for referral to, and investigation by, the Attorney General.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2560LRB102 14972 JLS 20327 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Unemployment Insurance Act is amended by
5adding Section 901.5 as follows:
 
6    (820 ILCS 405/901.5 new)
7    Sec. 901.5. Fraudulent benefit claims through identity
8theft.
9    (a) If an individual becomes aware that an application has
10been made for benefits in his or her name and neither that
11individual nor anyone acting on that individual's behalf has
12applied for benefits, the individual shall notify the
13Department of the potential for a fraudulent claim involving
14identity theft. If an employer becomes aware that an
15application has been made for benefits in the name of a current
16or former employee or someone representing himself or herself
17to be a current or former employee and reasonably believes the
18application is fraudulent for reasons of identity theft, the
19employer shall notify the Department of the potential for a
20fraudulent claim or identity theft.
21    (b) The Department shall publish on its website both an
22email address and a postal service address to accept
23correspondence relating to fraud notifications under

 

 

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1subsection (a).
2    (c) The Department shall respond to the notification of
3fraud within 48 hours of receipt. Such notification shall
4constitute proof of service of the fraudulent report. The
5Department shall also notify the Illinois Department of
6Revenue.
7    (d) Within 15 calendar days after receipt of a
8notification, the Department must notify, in writing, if
9submissions were provided in writing, or electronically, if
10submissions were made electronically, the individual who
11provided notice of the alleged fraud or identity theft whether
12the State of Illinois has issued any monetary payments based
13on that claim.
14    (e) Neither the Department nor the Department of Revenue
15may impose any penalties or seek reimbursement from any
16individual or employer for fraudulent benefit claims involving
17the individual or employer unless the individual or employer
18was a knowing, voluntary participant in the fraudulent scheme.
19    (f) If the reason for the fraudulent claim for benefits or
20identity theft is the result of a breach of State systems, an
21individual or employer has the right to secure reimbursement
22for reasonably foreseeable expenses resulting from the breach.
23    (g) All cases of fraud or identity theft must be referred
24by the Department to the Attorney General. Within 90 days
25after the referral is made, the Attorney General must report
26to the victim, in writing, the result of the investigation and

 

 

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1what action was taken toward prosecution. If no action was
2taken toward prosecution, the reason shall be stated in
3writing.