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1     AN ACT concerning employment.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Unemployment Insurance Act is amended by
5 changing Section 1300 as follows:
 
6     (820 ILCS 405/1300)  (from Ch. 48, par. 540)
7     Sec. 1300. Waiver or transfer of benefit rights - Partial
8 exemption.
9     (A) Except as otherwise provided herein any agreement by an
10 individual to waive, release or commute his rights under this
11 Act shall be void.
12     (B) Benefits due under this Act shall not be assigned,
13 pledged, encumbered, released or commuted and shall be exempt
14 from all claims of creditors and from levy, execution and
15 attachment or other remedy for recovery or collection of a
16 debt. However, nothing in this Section shall prohibit a
17 specified or agreed upon deduction from benefits by an
18 individual, or a court or administrative order for withholding
19 of income, for payment of past due child support from being
20 enforced and collected by the Department of Public Aid on
21 behalf of persons receiving a grant of financial aid under
22 Article IV of the Illinois Public Aid Code, persons for whom an
23 application has been made and approved for child support
24 enforcement services under Section 10-1 of such Code, or
25 persons similarly situated and receiving like services in other
26 states. It is provided that:
27         (1) The aforementioned deduction of benefits and order
28     for withholding of income apply only if appropriate
29     arrangements have been made for reimbursement to the
30     Director by the Department of Public Aid for any
31     administrative costs incurred by the Director under this
32     Section.

 

 

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1         (2) The Director shall deduct and withhold from
2     benefits payable under this Act, or under any arrangement
3     for the payment of benefits entered into by the Director
4     pursuant to the powers granted under Section 2700 of this
5     Act, the amount specified or agreed upon. In the case of a
6     court or administrative order for withholding of income,
7     the Director shall withhold the amount of the order.
8         (3) Any amount deducted and withheld by the Director
9     shall be paid to the Department of Public Aid or the State
10     Disbursement Unit established under Section 10-26 of the
11     Illinois Public Aid Code, as directed by the Department of
12     Public Aid, on behalf of the individual.
13         (4) Any amount deducted and withheld under subsection
14     (3) shall for all purposes be treated as if it were paid to
15     the individual as benefits and paid by such individual to
16     the Department of Public Aid or the State Disbursement Unit
17     in satisfaction of the individual's child support
18     obligations.
19         (5) For the purpose of this Section, child support is
20     defined as those obligations which are being enforced
21     pursuant to a plan described in Title IV, Part D, Section
22     454 of the Social Security Act and approved by the
23     Secretary of Health and Human Services.
24         (6) The deduction of benefits and order for withholding
25     of income for child support shall be governed by Titles III
26     and IV of the Social Security Act and all regulations duly
27     promulgated thereunder.
28     (C) Nothing in this Section prohibits an individual from
29 voluntarily electing to have federal income tax deducted and
30 withheld from his or her unemployment insurance benefit
31 payments.
32         (1) The Director shall, at the time that an individual
33     files his or her claim for benefits that establishes his or
34     her benefit year, inform the individual that:
35             (a) unemployment insurance is subject to federal,
36         State, and local income taxes;

 

 

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1             (b) requirements exist pertaining to estimated tax
2         payments;
3             (c) the individual may elect to have federal income
4         tax deducted and withheld from his or her payments of
5         unemployment insurance in the amount specified in the
6         federal Internal Revenue Code; and
7             (d) the individual is permitted to change a
8         previously elected withholding status.
9         (2) Amounts deducted and withheld from unemployment
10     insurance shall remain in the unemployment fund until
11     transferred to the federal taxing authority as a payment of
12     income tax.
13         (3) The Director shall follow all procedures specified
14     by the United States Department of Labor and the federal
15     Internal Revenue Service pertaining to the deducting and
16     withholding of income tax.
17         (4) Amounts shall be deducted and withheld in
18     accordance with the priorities established in rules
19     promulgated by the Director.
20     (D) Nothing in this Section prohibits an individual from
21 voluntarily electing to have State of Illinois income tax
22 deducted and withheld from his or her unemployment insurance
23 benefit payments if such deduction and withholding is provided
24 for pursuant to rules promulgated by the Director.
25         (1) The If pursuant to rules promulgated by the
26     Director, an individual may voluntarily elect to have State
27     of Illinois income tax deducted and withheld from his or
28     her unemployment insurance benefit payments, the Director
29     shall, at the time that an individual files his or her
30     claim for benefits that establishes his or her benefit
31     year, in addition to providing the notice required under
32     subsection C, inform the individual that:
33             (a) the individual may elect to have State of
34         Illinois income tax deducted and withheld from his or
35         her payments of unemployment insurance in the amount
36         specified pursuant to rules promulgated by the

 

 

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1         Director; and
2             (b) the individual is permitted to change a
3         previously elected withholding status.
4         (2) Amounts deducted and withheld from unemployment
5     insurance shall remain in the unemployment fund until
6     transferred to the Department of Revenue as a payment of
7     State of Illinois income tax.
8         (3) Amounts shall be deducted and withheld in
9     accordance with the priorities established in rules
10     promulgated by the Director.
11     (E) Nothing in this Section prohibits the deduction and
12 withholding of an uncollected overissuance of food stamp
13 coupons from unemployment insurance benefits pursuant to this
14 subsection (E).
15         (1) At the time that an individual files a claim for
16     benefits that establishes his or her benefit year, that
17     individual must disclose whether or not he or she owes an
18     uncollected overissuance (as defined in Section 13(c)(1)
19     of the federal Food Stamp Act of 1977) of food stamp
20     coupons. The Director shall notify the State food stamp
21     agency enforcing such obligation of any individual who
22     discloses that he or she owes an uncollected overissuance
23     of food stamp coupons and who meets the monetary
24     eligibility requirements of subsection E of Section 500.
25         (2) The Director shall deduct and withhold from any
26     unemployment insurance benefits payable to an individual
27     who owes an uncollected overissuance of food stamp coupons:
28             (a) the amount specified by the individual to the
29         Director to be deducted and withheld under this
30         subsection (E);
31             (b) the amount (if any) determined pursuant to an
32         agreement submitted to the State food stamp agency
33         under Section 13(c)(3)(A) of the federal Food Stamp Act
34         of 1977; or
35             (c) any amount otherwise required to be deducted
36         and withheld from unemployment insurance benefits

 

 

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1         pursuant to Section 13(c)(3)(B) of the federal Food
2         Stamp Act of 1977.
3         (3) Any amount deducted and withheld pursuant to this
4     subsection (E) shall be paid by the Director to the State
5     food stamp agency.
6         (4) Any amount deducted and withheld pursuant to this
7     subsection (E) shall for all purposes be treated as if it
8     were paid to the individual as unemployment insurance
9     benefits and paid by the individual to the State food stamp
10     agency as repayment of the individual's uncollected
11     overissuance of food stamp coupons.
12         (5) For purposes of this subsection (E), "unemployment
13     insurance benefits" means any compensation payable under
14     this Act including amounts payable by the Director pursuant
15     to an agreement under any federal law providing for
16     compensation, assistance, or allowances with respect to
17     unemployment.
18         (6) This subsection (E) applies only if arrangements
19     have been made for reimbursement by the State food stamp
20     agency for the administrative costs incurred by the
21     Director under this subsection (E) which are attributable
22     to the repayment of uncollected overissuances of food stamp
23     coupons to the State food stamp agency.
24 (Source: P.A. 91-212, eff. 7-20-99; 91-712, eff. 7-1-00;
25 92-590, eff. 7-1-02.)