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90_SB0785eng 35 ILCS 5/917 from Ch. 120, par. 9-917 35 ILCS 105/8 from Ch. 120, par. 439.8 35 ILCS 115/8 from Ch. 120, par. 439.108 35 ILCS 120/11 from Ch. 120, par. 450 35 ILCS 630/5 from Ch. 120, par. 2005 35 ILCS 735/3-7 from Ch. 120, par. 2603-7 405 ILCS 5/5-105.1 new 405 ILCS 5/5-111 from Ch. 91 1/2, par. 5-111 35 ILCS 405/16 from Ch. 120, par. 405A-16 820 ILCS 405/1900 from Ch. 48, par. 640 Amends the Illinois Income Tax Act, the Retailer's Occupation Tax Act, and the Unemployment Insurance Act to authorize the disclosure of certain taxpayer information to State agencies and the Attorney General in the case of a taxpayer owing a debt to the State or any of its agencies. Amends the Use Tax Act, the Service Use Tax Act, and the Telecommunications Excise Tax Act. Deletes current provisions stating that amounts due under the Act constitute a debt to the State. Provides that a retailer or serviceman authorized to collect the taxes is liable for those taxes unless the retailer or serviceman pays the tax under the Retailers' Occupation Tax Act or the Service Occupation Tax Act. Provides that to the extent the retailer or serviceman collects the taxes, the taxes are held in trust for the benefit of the Department of Revenue. Amends the Uniform Penalty and Interest Act. Provides that any person who collects, withholds, or receives a tax under the Act holds the amount collected in trust for the Department of Revenue. Amends the Mental Health and Developmental Disabilities Code to provide that when a person neglects to pay charges due to the Department under the Code, the amount owed, plus interest, is a lien in favor of the State upon all property and rights to property of that person. Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Requires disclosure of certain federal estate tax information to the Attorney General if there is possible Illinois estate tax liability. Effective immediately. LRB9002781KDks SB785 Engrossed LRB9002781KDks 1 AN ACT in relation to State government, amending named 2 Acts. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Income Tax Act is amended by 6 changing Section 917 as follows: 7 (35 ILCS 5/917) (from Ch. 120, par. 9-917) 8 (Text of Section before amendment by P.A. 89-507) 9 Sec. 917. Confidentiality and information sharing. 10 (a) Confidentiality. Except as provided in this Section, 11 all information received by the Department from returns filed 12 under this Act, or from any investigation conducted under the 13 provisions of this Act, shall be confidential, except for 14 official purposes within the Department or pursuant to 15 official procedures for collection of any State tax or 16 pursuant to an investigation or audit by the Illinois State 17 Scholarship Commission of a delinquent student loan or 18 monetary award or enforcement of any civil or criminal 19 penalty or sanction imposed by this Act or by another statute 20 imposing a State tax, and any person who divulges any such 21 information in any manner, except for such purposes and 22 pursuant to order of the Director or in accordance with a 23 proper judicial order, shall be guilty of a Class A 24 misdemeanor. However, the provisions of this paragraph are 25 not applicable to information furnished to a licensed 26 attorney representing the taxpayer where an appeal or a 27 protest has been filed on behalf of the taxpayer. 28 (b) Public information. Nothing contained in this Act 29 shall prevent the Director from publishing or making 30 available to the public the names and addresses of persons 31 filing returns under this Act, or from publishing or making SB785 Engrossed -2- LRB9002781KDks 1 available reasonable statistics concerning the operation of 2 the tax wherein the contents of returns are grouped into 3 aggregates in such a way that the information contained in 4 any individual return shall not be disclosed. 5 (c) Governmental agencies. The Director may make 6 available to the Secretary of the Treasury of the United 7 States or his delegate, or the proper officer or his delegate 8 of any other state imposing a tax upon or measured by income, 9 for exclusively official purposes, information received by 10 the Department in the administration of this Act, but such 11 permission shall be granted only if the United States or such 12 other state, as the case may be, grants the Department 13 substantially similar privileges. The Director may exchange 14 information with the Illinois Department of Public Aid for 15 the purpose of verifying sources and amounts of income and 16 for other purposes directly connected with the administration 17 of this Act and The Illinois Public Aid Code. The Director 18 may exchange information with the Director of the Department 19 of Employment Security for the purpose of verifying sources 20 and amounts of income and for other purposes directly 21 connected with the administration of this Act and Acts 22 administered by the Department of Employment Security. The 23 Director may make available to the Illinois Industrial 24 Commission information regarding employers for the purpose of 25 verifying the insurance coverage required under the Workers' 26 Compensation Act and Workers' Occupational Diseases Act. 27 The Director may make available to any State agency, 28 including the Illinois Supreme Court, which licenses persons 29 to engage in any occupation, information that a person 30 licensed by such agency has failed to file returns under this 31 Act or pay the tax, penalty and interest shown therein, or 32 has failed to pay any final assessment of tax, penalty or 33 interest due under this Act. The Director may also make 34 available to the Secretary of State information that a SB785 Engrossed -3- LRB9002781KDks 1 corporation which has been issued a certificate of 2 incorporation by the Secretary of State has failed to file 3 returns under this Act or pay the tax, penalty and interest 4 shown therein, or has failed to pay any final assessment of 5 tax, penalty or interest due under this Act. An assessment is 6 final when all proceedings in court for review of such 7 assessment have terminated or the time for the taking thereof 8 has expired without such proceedings being instituted. For 9 taxable years ending on or after December 31, 1987, the 10 Director may make available to the Director or principal 11 officer of any Department of the State of Illinois, 12 information that a person employed by such Department has 13 failed to file returns under this Act or pay the tax, penalty 14 and interest shown therein. For purposes of this paragraph, 15 the word "Department" shall have the same meaning as provided 16 in Section 3 of the State Employees Group Insurance Act of 17 1971. In addition, the Director may make available to another 18 State agency information regarding a taxpayer's place of 19 employment, bank accounts, or other financial information 20 contained in the Department's records if the taxpayer owes a 21 debt to the State agency making the request for information. 22 The Director may also make such employment and financial 23 information on a taxpayer available to the Attorney General 24 when the Attorney General is seeking the recovery of any debt 25 due the State or any of its agencies from that taxpayer. 26 (d) The Director shall make available for public 27 inspection in the Department's principal office and for 28 publication, at cost, administrative decisions issued on or 29 after January 1, 1995. These decisions are to be made 30 available in a manner so that the following taxpayer 31 information is not disclosed: 32 (1) The names, addresses, and identification 33 numbers of the taxpayer, related entities, and employees. 34 (2) At the sole discretion of the Director, trade SB785 Engrossed -4- LRB9002781KDks 1 secrets or other confidential information identified as 2 such by the taxpayer, no later than 30 days after receipt 3 of an administrative decision, by such means as the 4 Department shall provide by rule. 5 The Director shall determine the appropriate extent of 6 the deletions allowed in paragraph (2). In the event the 7 taxpayer does not submit deletions, the Director shall make 8 only the deletions specified in paragraph (1). 9 The Director shall make available for public inspection 10 and publication an administrative decision within 180 days 11 after the issuance of the administrative decision. The term 12 "administrative decision" has the same meaning as defined in 13 Section 3-101 of Article III of the Code of Civil Procedure. 14 Costs collected under this Section shall be paid into the Tax 15 Compliance and Administration Fund. 16 (Source: P.A. 88-669, eff. 11-29-94.) 17 (Text of Section after amendment by P.A. 89-507) 18 Sec. 917. Confidentiality and information sharing. 19 (a) Confidentiality. Except as provided in this Section, 20 all information received by the Department from returns filed 21 under this Act, or from any investigation conducted under the 22 provisions of this Act, shall be confidential, except for 23 official purposes within the Department or pursuant to 24 official procedures for collection of any State tax or 25 pursuant to an investigation or audit by the Illinois State 26 Scholarship Commission of a delinquent student loan or 27 monetary award or enforcement of any civil or criminal 28 penalty or sanction imposed by this Act or by another statute 29 imposing a State tax, and any person who divulges any such 30 information in any manner, except for such purposes and 31 pursuant to order of the Director or in accordance with a 32 proper judicial order, shall be guilty of a Class A 33 misdemeanor. However, the provisions of this paragraph are 34 not applicable to information furnished to a licensed SB785 Engrossed -5- LRB9002781KDks 1 attorney representing the taxpayer where an appeal or a 2 protest has been filed on behalf of the taxpayer. 3 (b) Public information. Nothing contained in this Act 4 shall prevent the Director from publishing or making 5 available to the public the names and addresses of persons 6 filing returns under this Act, or from publishing or making 7 available reasonable statistics concerning the operation of 8 the tax wherein the contents of returns are grouped into 9 aggregates in such a way that the information contained in 10 any individual return shall not be disclosed. 11 (c) Governmental agencies. The Director may make 12 available to the Secretary of the Treasury of the United 13 States or his delegate, or the proper officer or his delegate 14 of any other state imposing a tax upon or measured by income, 15 for exclusively official purposes, information received by 16 the Department in the administration of this Act, but such 17 permission shall be granted only if the United States or such 18 other state, as the case may be, grants the Department 19 substantially similar privileges. The Director may exchange 20 information with the Illinois Department of Public Aid and 21 the Department of Human Services (acting as successor to the 22 Department of Public Aid under the Department of Human 23 Services Act) for the purpose of verifying sources and 24 amounts of income and for other purposes directly connected 25 with the administration of this Act and the Illinois Public 26 Aid Code. The Director may exchange information with the 27 Director of the Department of Employment Security for the 28 purpose of verifying sources and amounts of income and for 29 other purposes directly connected with the administration of 30 this Act and Acts administered by the Department of 31 Employment Security. The Director may make available to the 32 Illinois Industrial Commission information regarding 33 employers for the purpose of verifying the insurance coverage 34 required under the Workers' Compensation Act and Workers' SB785 Engrossed -6- LRB9002781KDks 1 Occupational Diseases Act. 2 The Director may make available to any State agency, 3 including the Illinois Supreme Court, which licenses persons 4 to engage in any occupation, information that a person 5 licensed by such agency has failed to file returns under this 6 Act or pay the tax, penalty and interest shown therein, or 7 has failed to pay any final assessment of tax, penalty or 8 interest due under this Act. The Director may also make 9 available to the Secretary of State information that a 10 corporation which has been issued a certificate of 11 incorporation by the Secretary of State has failed to file 12 returns under this Act or pay the tax, penalty and interest 13 shown therein, or has failed to pay any final assessment of 14 tax, penalty or interest due under this Act. An assessment is 15 final when all proceedings in court for review of such 16 assessment have terminated or the time for the taking thereof 17 has expired without such proceedings being instituted. For 18 taxable years ending on or after December 31, 1987, the 19 Director may make available to the Director or principal 20 officer of any Department of the State of Illinois, 21 information that a person employed by such Department has 22 failed to file returns under this Act or pay the tax, penalty 23 and interest shown therein. For purposes of this paragraph, 24 the word "Department" shall have the same meaning as provided 25 in Section 3 of the State Employees Group Insurance Act of 26 1971. In addition, the Director may make available to another 27 State agency information regarding a taxpayer's place of 28 employment, bank accounts, or other financial information 29 contained in the Department's records if the taxpayer owes a 30 debt to the State agency making the request for information. 31 The Director may also make such employment and financial 32 information on a taxpayer available to the Attorney General 33 when the Attorney General is seeking the recovery of any debt 34 due the State or any of its agencies from that taxpayer. SB785 Engrossed -7- LRB9002781KDks 1 (d) The Director shall make available for public 2 inspection in the Department's principal office and for 3 publication, at cost, administrative decisions issued on or 4 after January 1, 1995. These decisions are to be made 5 available in a manner so that the following taxpayer 6 information is not disclosed: 7 (1) The names, addresses, and identification 8 numbers of the taxpayer, related entities, and employees. 9 (2) At the sole discretion of the Director, trade 10 secrets or other confidential information identified as 11 such by the taxpayer, no later than 30 days after receipt 12 of an administrative decision, by such means as the 13 Department shall provide by rule. 14 The Director shall determine the appropriate extent of 15 the deletions allowed in paragraph (2). In the event the 16 taxpayer does not submit deletions, the Director shall make 17 only the deletions specified in paragraph (1). 18 The Director shall make available for public inspection 19 and publication an administrative decision within 180 days 20 after the issuance of the administrative decision. The term 21 "administrative decision" has the same meaning as defined in 22 Section 3-101 of Article III of the Code of Civil Procedure. 23 Costs collected under this Section shall be paid into the Tax 24 Compliance and Administration Fund. 25 (Source: P.A. 88-669, eff. 11-29-94; 89-507, eff. 7-1-97.) 26 Section 10. The Use Tax Act is amended by changing 27 Section 8 as follows: 28 (35 ILCS 105/8) (from Ch. 120, par. 439.8) 29 Sec. 8. Any retailer required to collect the tax imposed 30 by this Act shall be liable to the Department for such tax, 31 whether or not the tax has been collected by the retailer, 32 except when the retailer is relieved of the duty of remitting SB785 Engrossed -8- LRB9002781KDks 1 the tax to the Department by virtue of having paid a tax 2 imposed by the Retailers' Occupation Tax Act upon his or her 3 gross receipts from the same transactions. To the extent 4 that a retailer required to collect the tax imposed by this 5 Act has actually collected that tax, such tax is held in 6 trust for the benefit of the Department.The tax herein7required to be collected by any retailer pursuant to this8Act, and any such tax collected by any retailer shall9constitute a debt owed by the retailer to this State, except10when such retailer is relieved of the duty of remitting such11tax to the Department by virtue of his being required to pay,12and his in fact paying, the tax imposed by the "Retailers'13Occupation Tax Act" upon his gross receipts from the same14transaction.15 (Source: P.A. 76-222.) 16 Section 15. The Service Use Tax Act is amended by 17 changing Section 8 as follows: 18 (35 ILCS 110/8) (from Ch. 120, par. 439.38) 19 Sec. 8. Any serviceman required to collect the tax 20 imposed by this Act shall be liable to the Department for the 21 tax, whether or not the tax has been collected by the 22 serviceman, except when the serviceman is relieved of the 23 duty of remitting the tax to the Department by virtue of 24 having paid a tax imposed by the Service Occupation Tax Act 25 upon his or her sale of service involving the incidental 26 transfer by him or her of the same property. To the extent 27 that a serviceman required to collect the tax imposed by this 28 Act has actually collected that tax, the tax is held in trust 29 for the benefit of the Department.The tax herein required to30be collected by any serviceman pursuant to this Act, and any31such tax collected by any serviceman shall constitute a debt32owed by the serviceman to this State, except when suchSB785 Engrossed -9- LRB9002781KDks 1serviceman is relieved of the duty of remitting such tax to2the Department by virtue of his being required to pay, and3his in fact paying, the tax imposed by the "Service4Occupation Tax Act" upon his sale of service involving the5incidental transfer by him of the same property.6 (Source: P.A. 76-223.) 7 Section 20. The Retailers' Occupation Tax Act is amended 8 by changing Section 11 as follows: 9 (35 ILCS 120/11) (from Ch. 120, par. 450) 10 Sec. 11. All information received by the Department from 11 returns filed under this Act, or from any investigation 12 conducted under this Act, shall be confidential, except for 13 official purposes, and any person who divulges any such 14 information in any manner, except in accordance with a proper 15 judicial order or as otherwise provided by law, shall be 16 guilty of a Class B misdemeanor. 17 Nothing in this Act prevents the Director of Revenue from 18 publishing or making available to the public the names and 19 addresses of persons filing returns under this Act, or 20 reasonable statistics concerning the operation of the tax by 21 grouping the contents of returns so the information in any 22 individual return is not disclosed. 23 Nothing in this Act prevents the Director of Revenue from 24 divulging to the United States Government or the government 25 of any other state, or any village that does not levy any 26 real property taxes for village operations and that receives 27 more than 60% of its general corporate revenue from taxes 28 under the Use Tax Act, the Service Use Tax Act, the Service 29 Occupation Tax Act, and the Retailers' Occupation Tax Act, or 30 any officer or agency thereof, for exclusively official 31 purposes, information received by the Department in 32 administering this Act, provided that such other governmental SB785 Engrossed -10- LRB9002781KDks 1 agency agrees to divulge requested tax information to the 2 Department. 3 The Department's furnishing of information derived from a 4 taxpayer's return or from an investigation conducted under 5 this Act to the surety on a taxpayer's bond that has been 6 furnished to the Department under this Act, either to provide 7 notice to such surety of its potential liability under the 8 bond or, in order to support the Department's demand for 9 payment from such surety under the bond, is an official 10 purpose within the meaning of this Section. 11 The furnishing upon request of information obtained by 12 the Department from returns filed under this Act or 13 investigations conducted under this Act to the Illinois 14 Liquor Control Commission for official use is deemed to be an 15 official purpose within the meaning of this Section. 16 Notice to a surety of potential liability shall not be 17 given unless the taxpayer has first been notified, not less 18 than 10 days prior thereto, of the Department's intent to so 19 notify the surety. 20 The furnishing upon request of the Auditor General, or 21 his authorized agents, for official use, of returns filed and 22 information related thereto under this Act is deemed to be an 23 official purpose within the meaning of this Section. 24 Where an appeal or a protest has been filed on behalf of 25 a taxpayer, the furnishing upon request of the attorney for 26 the taxpayer of returns filed by the taxpayer and information 27 related thereto under this Act is deemed to be an official 28 purpose within the meaning of this Section. 29 The furnishing of financial information to a home rule 30 unit that has imposed a tax similar to that imposed by this 31 Act pursuant to its home rule powers, or to any village that 32 does not levy any real property taxes for village operations 33 and that receives more than 60% of its general corporate 34 revenue from taxes under the Use Tax Act, the Service Use Tax SB785 Engrossed -11- LRB9002781KDks 1 Act, the Service Occupation Tax Act, and the Retailers' 2 Occupation Tax Act, upon request of the Chief Executive 3 thereof, is an official purpose within the meaning of this 4 Section, provided the home rule unit or village that does 5 not levy any real property taxes for village operations and 6 that receives more than 60% of its general corporate revenue 7 from taxes under the Use Tax Act, the Service Use Tax Act, 8 the Service Occupation Tax Act, and the Retailers' Occupation 9 Tax Act agrees in writing to the requirements of this 10 Section. 11 For a village that does not levy any real property taxes 12 for village operations and that receives more than 60% of its 13 general corporate revenue from taxes under the Use Tax Act, 14 Service Use Tax Act, Service Occupation Tax Act, and 15 Retailers' Occupation Tax Act, the officers eligible to 16 receive information from the Department of Revenue under this 17 Section are the village manager and the chief financial 18 officer of the village. 19 Information so provided shall be subject to all 20 confidentiality provisions of this Section. The written 21 agreement shall provide for reciprocity, limitations on 22 access, disclosure, and procedures for requesting 23 information. 24 The Director may make available to any State agency, 25 including the Illinois Supreme Court, which licenses persons 26 to engage in any occupation, information that a person 27 licensed by such agency has failed to file returns under this 28 Act or pay the tax, penalty and interest shown therein, or 29 has failed to pay any final assessment of tax, penalty or 30 interest due under this Act. The Director may also make 31 available to the Secretary of State information that a 32 limited liability company, which has filed articles of 33 organization with the Secretary of State, or corporation 34 which has been issued a certificate of incorporation by the SB785 Engrossed -12- LRB9002781KDks 1 Secretary of State has failed to file returns under this Act 2 or pay the tax, penalty and interest shown therein, or has 3 failed to pay any final assessment of tax, penalty or 4 interest due under this Act. An assessment is final when all 5 proceedings in court for review of such assessment have 6 terminated or the time for the taking thereof has expired 7 without such proceedings being instituted. In addition, the 8 Director may make available to another State agency 9 information regarding a taxpayer's place of employment, bank 10 accounts, or other financial information contained in the 11 Department's records if the taxpayer owes a debt to the State 12 agency making the request for information. The Director may 13 also make such employment and financial information on a 14 taxpayer available to the Attorney General when the Attorney 15 General is seeking the recovery of any debt due the State or 16 any of its agencies from that taxpayer. 17 The Director shall make available for public inspection 18 in the Department's principal office and for publication, at 19 cost, administrative decisions issued on or after January 1, 20 1995. These decisions are to be made available in a manner so 21 that the following taxpayer information is not disclosed: 22 (1) The names, addresses, and identification 23 numbers of the taxpayer, related entities, and employees. 24 (2) At the sole discretion of the Director, trade 25 secrets or other confidential information identified as 26 such by the taxpayer, no later than 30 days after receipt 27 of an administrative decision, by such means as the 28 Department shall provide by rule. 29 The Director shall determine the appropriate extent of 30 the deletions allowed in paragraph (2). In the event the 31 taxpayer does not submit deletions, the Director shall make 32 only the deletions specified in paragraph (1). 33 The Director shall make available for public inspection 34 and publication an administrative decision within 180 days SB785 Engrossed -13- LRB9002781KDks 1 after the issuance of the administrative decision. The term 2 "administrative decision" has the same meaning as defined in 3 Section 3-101 of Article III of the Code of Civil Procedure. 4 Costs collected under this Section shall be paid into the Tax 5 Compliance and Administration Fund. 6 (Source: P.A. 88-480; 88-669, eff. 11-29-94; 89-89, eff. 7 6-30-95.) 8 Section 25. The Telecommunications Excise Tax Act is 9 amended by changing Section 5 as follows: 10 (35 ILCS 630/5) (from Ch. 120, par. 2005) 11 Sec. 5. Any retailer maintaining a place of business in 12 this State shall collect and remit to the Department the tax 13 imposed by this Act. Any such retailer shall be liable for 14 the tax whether or not the tax has been collected by the 15 retailer. To the extent that a retailer required to collect 16 the tax imposed by this Act has actually collected that tax, 17 such tax is held in trust for the benefit of the Department. 18The tax imposed hereunder shall be collected from the19taxpayer by a retailer maintaining a place of business in20this State and remitted to the Department pursuant to Section215 hereof. The tax required to be collected by this Article22and any such tax collected by such retailer shall constitute23a debt owed by the retailer to this State.Retailers shall 24 collect the tax from the taxpayer by adding the tax to the 25 gross charge for the act or privilege of originating or 26 receiving telecommunications in this State, when sold for 27 use, in the manner prescribed by the Department. Whenever 28 possible, the tax imposed by this Article shall, when 29 collected, be stated as a distinct item separate and apart 30 from the gross charge for telecommunications. The tax 31 imposed by this Article shall constitute a debt of the 32 purchaser to the retailer who provides such taxable services SB785 Engrossed -14- LRB9002781KDks 1 until paid, and, if unpaid, is recoverable at law in the same 2 manner as the original charge for such taxable services. 3 (Source: P.A. 86-905.) 4 Section 30. The Uniform Penalty and Interest Act is 5 amended by changing Section 3-7 as follows: 6 (35 ILCS 735/3-7) (from Ch. 120, par. 2603-7) 7 Sec. 3-7. Personal Liability Penalty. 8 (a) Any officer or employee of any taxpayer subject to 9 the provisions of a tax Act administered by the Department 10 who has the control, supervision or responsibility of filing 11 returns and making payment of the amount of any trust tax 12 imposed in accordance with that Act and who wilfully fails to 13 file the return or make the payment to the Department or 14 wilfully attempts in any other manner to evade or defeat the 15 tax shall be personally liable for a penalty equal to the 16 total amount of tax unpaid by the taxpayer including interest 17 and penalties thereon. The Department shall determine a 18 penalty due under this Section according to its best judgment 19 and information, and that determination shall be prima facie 20 correct and shall be prima facie evidence of a penalty due 21 under this Section. Proof of that determination by the 22 Department shall be made at any hearing before it or in any 23 legal proceeding by reproduced copy or computer printout of 24 the Department's record relating thereto in the name of the 25 Department under the certificate of the Director of Revenue. 26 If reproduced copies of the Department's records are offered 27 as proof of that determination, the Director must certify 28 that those copies are true and exact copies of records on 29 file with the Department. If computer print-outs of the 30 Department's records are offered as proof of such 31 determination, the Director must certify that those computer 32 print-outs are true and exact representations of records SB785 Engrossed -15- LRB9002781KDks 1 properly entered into standard electronic computing 2 equipment, in the regular course of the Department's 3 business, at or reasonably near the time of the occurrence of 4 the facts recorded, from trustworthy and reliable 5 information. That certified reproduced copy or certified 6 computer print-out shall without further proof, be admitted 7 into evidence before the Department or in any legal 8 proceeding and shall be prima facie proof of the correctness 9 of the amount of tax or penalty due. 10 (b) The Department shall issue a notice of penalty 11 liability for the amount claimed by the Department pursuant 12 to this Section. Procedures for protest and review of a 13 notice of penalty liability issued pursuant to this Section 14 and assessment of the penalty due hereunder shall be the same 15 as those prescribed for protest and review of a notice of tax 16 liability or a notice of deficiency, as the case may be, and 17 the assessment of tax liability under the Act imposing that 18 liability. 19 (b-5) A court, on its own motion or on motion of the 20 Department, shall dismiss an action under the Administrative 21 Review Law to review a final assessment or revised final 22 assessment issued by the Department under this Section (i) 23 unless the plaintiff files with the court, within 20 days 24 after the filing of the complaint and the issuance of the 25 summons in the action, a bond with good and sufficient surety 26 or sureties residing in this State or licensed to do business 27 in this State or (ii) unless the court, in place of the bond 28 and with plaintiff's consent, enters an order imposing a lien 29 upon the plaintiff's property as provided in this subsection. 30 Upon dismissal of a complaint for failure to comply with 31 this subsection, the court shall enter judgment against the 32 taxpayer and in favor of the Department in the amount of the 33 final assessment or revised final assessment, together with 34 any interest that has accrued since the Department issued the SB785 Engrossed -16- LRB9002781KDks 1 final assessment or revised final assessment, and for costs. 2 The judgment is enforceable as other judgments for the 3 payment of money. 4 The amount of the bond shall be fixed and approved by the 5 court, but shall not be less than the amount of the tax and 6 penalty claimed to be due by the Department in its final 7 assessment or revised final assessment to the person filing 8 the bond, plus the amount of interest due from that person to 9 the Department at the time when the Department issued its 10 final assessment or revised final assessment to that person. 11 The bond must be executed in favor of the Department and 12 conditioned on the taxpayer's payment within 30 days after 13 termination of the proceedings for judicial review of the 14 amount of tax, penalty, and interest found by the court to be 15 due in those proceedings. The bond, when filed and approved, 16 is, from that time until 2 years after termination of the 17 proceedings for judicial review in which the bond is filed, a 18 lien against the real estate situated in the county in which 19 the bond is filed of the person filing the bond and of the 20 surety or sureties on the bond, until the condition of the 21 bond is complied with or until the bond is canceled as 22 provided in this subsection. The lien does not apply, 23 however, to the real property of a corporate surety duly 24 licensed to do business in this State. If the person filing 25 the bond fails to keep its condition, the bond is forfeited, 26 and the Department may institute an action upon the bond in 27 its own name for the entire amount of the bond and costs. An 28 action upon the bond is in addition to any other remedy 29 provided by law. If the person filing the bond complies with 30 its condition or if, in the proceedings for judicial review 31 in which the bond is filed, the court determines that no tax, 32 penalty, or interest is due, the bond shall be canceled by 33 the issuer of the bond. 34 If the court finds in a particular case that the SB785 Engrossed -17- LRB9002781KDks 1 plaintiff cannot furnish a satisfactory surety or sureties 2 for the kind of bond required in this subsection, the court 3 may relieve the plaintiff of the obligation of filing a bond 4 if, upon the timely application of the plaintiff for a lien 5 in place of a bond and accompanying proof, the court is 6 satisfied that a lien would secure the assessment as well as 7 would a bond. Upon that finding, the court shall enter an 8 order subjecting the plaintiff's real and personal property 9 (including subsequently acquired property) situated in the 10 county in which the order is entered to a lien in favor of 11 the Department. The lien shall be for the amount of the tax 12 and penalty claimed to be due by the Department in its final 13 assessment or revised final assessment, plus the amount of 14 interest due from that person to the Department at the time 15 when the Department issued its final assessment or revised 16 final assessment to that person. The lien shall continue 17 until the court determines in the proceedings for judicial 18 review that no tax, penalty, or interest is due, or until the 19 plaintiff pays to the Department the tax, penalty, and 20 interest secured by the lien. In its discretion, the court 21 may impose a lien regardless of the ratio of the taxpayer's 22 assets to the final assessment or revised final assessment 23 plus the amount of the interest and penalty. This subsection 24 does not give the Department a preference over the rights of 25 a bona fide purchaser, mortgagee, judgment creditor, or other 26 lien holder arising before the entry of the order creating 27 the lien in favor of the Department. "Bona fide", as used in 28 this subsection, does not include a mortgage of real or 29 personal property or other credit transaction that results in 30 the mortgagee or the holder of the security acting as trustee 31 for unsecured creditors of the taxpayer who executed the 32 chattel or real property mortgage or the document evidencing 33 the credit transaction. The lien is inferior to the lien of 34 general taxes, special assessments, and special taxes levied SB785 Engrossed -18- LRB9002781KDks 1 by a political subdivision of this State. The lien is not 2 effective against a purchaser with respect to an item in a 3 retailer's stock in trade purchased from the retailer in the 4 usual course of the retailer's business. The lien may not be 5 enforced against the household effects, wearing apparel, 6 books, or tools or implements of a trade or profession kept 7 for use by any person. The lien is not effective against real 8 property unless and until a certified copy or memorandum of 9 such order is recorded in the Office of the Recorder of Deeds 10 for the county or counties in which the property is located. 11 The lien is not effective against real property whose title 12 is registered under the provisions of the Registered Titles 13 (Torrens) Act until the provisions of Section 85 of that Act 14 are complied with. 15 Service upon the Director of Revenue or the Assistant 16 Director of Revenue of summons issued in an action to review 17 a final administrative decision of the Department is service 18 upon the Department. The Department shall certify the record 19 of its proceedings if the taxpayer pays to it 75¢ per page of 20 testimony taken before the Department and 25¢ per page of all 21 other matters contained in the record, except that these 22 charges may be waived when the Department is satisfied that 23 the aggrieved party is a poor person who cannot afford to pay 24 the charges. If payment for the record is not made by the 25 taxpayer within 30 days after notice from the Department or 26 the Attorney General of the cost, the court in which the 27 proceeding is pending, on motion of the Department, shall 28 dismiss the complaint and (when the administrative decision 29 as to which the action for judicial review was filed is a 30 final assessment or revised final assessment) shall enter 31 judgment against the taxpayer and in favor of the Department 32 for the amount of tax and penalty shown by the Department's 33 final assessment or revised final assessment to be due, plus 34 interest as provided for in this Act from the date when the SB785 Engrossed -19- LRB9002781KDks 1 liability upon which the interest accrued became delinquent 2 until the entry of the judgment in the action for judicial 3 review under the Administrative Review Law, and also for 4 costs. 5 (c) The personal liability imposed by this Section shall 6 survive the dissolution of a partnership, limited liability 7 company, or corporation. No notice of penalty liability 8 shall be issued after the expiration of 3 years after the 9 date all proceedings in court for the review of any final or 10 revised final assessments issued against a taxpayer which 11 constitute the basis of such penalty liability have 12 terminated or the time for the taking thereof has expired 13 without such proceedings being instituted or after the 14 expiration of 3 years after the date a return is filed with 15 the Department by a taxpayer in cases where the return 16 constitutes the basis of such liability. Interest shall 17 continue to accrue on that portion of the penalty imposed by 18 this Section which represents the tax unpaid by the taxpayer 19 at the same rate and in the same amount as interest accrues 20 on the tax unpaid by the taxpayer. 21 (d) In addition to any other remedy provided for by the 22 laws of this State, and provided that no hearing or 23 proceeding for review is pending, any Section of a tax Act 24 which provides a means for collection of taxes shall in the 25 same manner and to the same extent provide a means for the 26 collection of the penalty imposed by this Section. The 27 procedures for the filing of an action for collection of the 28 penalty imposed by this Section shall be the same as those 29 prescribed by a tax Act for the filing of an action for 30 collection of the tax assessed under that Act. The time 31 limitation period on the Department's right to bring suit to 32 recover the amount of such tax, or portion thereof, or 33 penalty or interest from such person, or if deceased or 34 incompetent to file a claim thereof against his estate, shall SB785 Engrossed -20- LRB9002781KDks 1 not run during: (1) any period of time in which the order of 2 any Court has the effect of enjoining or restraining the 3 Department from bringing such suit or claim against such 4 person, or (2) any period of time in which the order of the 5 Court has the effect of enjoining or restraining the 6 Department from bringing suit or initiating other proper 7 proceedings for the collection of such amounts from the 8 taxpayer, or (3) any period of time the person departs from 9 and remains out of the State; but the foregoing provisions 10 concerning absence from the State shall not apply to any case 11 in which, at the time when a tax or penalty becomes due under 12 this Act, the person allegedly liable therefor is not a 13 resident of this State. 14 (e) For the purposes of this Section, "officer or 15 employee of any taxpayer" includes a partner of a 16 partnership, a manager or member of a limited liability 17 corporation, and a member of a registered limited liability 18 partnership. 19 (f) A trust tax is any tax for which an amount is 20 collected or withheld by a taxpayer from another person, and 21 any tax for which an amount is required to be collected or 22 withheld by a taxpayer from another person, regardless of 23 whether it is in fact collected or withheld. 24 (g) The personal liability imposed by this Section is in 25 addition to liability incurred by a partner of a partnership 26 or limited liability partnership resulting from the issuance 27 of a notice of tax liability issued to the partnership or 28 limited liability partnership. 29 (h) In addition to any other basis for imposition of 30 liability under this Act including under subsection (a) of 31 this Section, any person who collects, withholds, or receives 32 a tax, or any amount represented to be a tax, from another 33 person holds the amount so collected or withheld in special 34 trust for the benefit of the Department and is liable to the SB785 Engrossed -21- LRB9002781KDks 1 Department for the amount so withheld or collected plus 2 accrued interest and penalty on that amount. For purposes of 3 this subsection, "person" shall have the same definition as 4 provided in Section 1 of the Retailers' Occupation Tax Act. 5 (Source: P.A. 88-480; 88-683, eff. 1-24-95; 89-399, eff. 6 8-20-95; 89-626, eff. 8-9-96.) 7 Section 40. The Mental Health and Developmental 8 Disabilities Code is amended by adding Section 5-105.1 and 9 changing Section 5-111 as follows: 10 (405 ILCS 5/5-105.1 new) 11 Sec. 5-105.1. Lien for Department charges. 12 (a) For purposes of this Section, "Department" means the 13 Department of Mental Health and Developmental Disabilities 14 before July 1, 1997 and the Department of Human Services in 15 its capacity as successor to the Department of Mental Health 16 and Developmental Disabilities on and after July 1, 1997. 17 (b) Lien. If any person liable for the payment of 18 Department charges for services, as provided in Section 19 5-105, neglects or refuses to pay charges after a notice of 20 determination and assessment of charges issued under Section 21 5-111 has become final, the amount owed, plus interest, 22 whether billed or not, is a lien in favor of the State of 23 Illinois upon all property and rights to property, whether 24 real or personal, belonging to that person. Unless another 25 date is specifically fixed by law, the lien imposed under 26 this Section arises at the time the notice of determination 27 of charges for services becomes final, and continues until 28 the liability for the amount owed, or a judgment against the 29 debtor arising out of that liability, is satisfied or becomes 30 unenforceable by reason of lapse of time. 31 (c) Notice of lien. The lien for charges for services 32 terminates unless a notice of lien is filed within 3 years SB785 Engrossed -22- LRB9002781KDks 1 from the date all proceedings in court for the review of the 2 assessment on which the lien is based have terminated or the 3 time for review of the determination has expired without 4 review proceedings being instituted. 5 (d) Filing with recorder. Nothing in this Section shall 6 be construed to give the lien created by this Section a 7 preference over the rights of any bona fide purchaser, holder 8 of a security interest, mechanics lienor, mortgagee, or 9 judgment lien creditor arising before the filing of a notice 10 of the lien created by this Section in the office of the 11 recorder in the county in which the property subject to the 12 lien is located. For purposes of this Section, the term 13 "bona fide" does not include any mortgage of real or personal 14 property or any other credit transaction that results in the 15 mortgagee or the holder of the security acting as trustee for 16 unsecured creditors of the debtor mentioned in the notice of 17 lien who executed the chattel or real property mortgage or 18 the document evidencing the credit transaction. The lien 19 created by this Section is inferior to the lien of general 20 taxes, special assessments, and special taxes levied by any 21 political subdivision of this State. 22 (e) Filing with registrar. If title to land to be 23 affected by the notice of lien created by this Section is 24 registered under the provisions of the Registered Titles 25 (Torrens) Act, notice of that lien shall be filed in the 26 office of the registrar of titles of the county within which 27 the property subject to the lien is situated and shall be 28 entered upon the register of titles as a memorial of charge 29 upon each folium of the register of titles affected by that 30 notice, and the State of Illinois shall not have a preference 31 over the rights of any bona fide purchaser, mortgagee, 32 judgment creditor, or other lien holder arising before the 33 registration of that notice. 34 (f) Payment of costs and fees. No recorder or registrar SB785 Engrossed -23- LRB9002781KDks 1 of titles of any county shall require that the Department or 2 the State of Illinois pay any costs or fees for recording, 3 filing, or registering any notice or other document. The 4 recorder or registrar of each county, in order to receive 5 payment for fees or costs incurred by the Department, shall 6 present the Department with monthly statements indicating the 7 amount of fees and costs incurred by the Department for which 8 no payment has been received. This applies to all liens, 9 whenever filed. 10 (g) Duration of lien. The lien provided for in this 11 Section shall continue for 20 years from the date of filing 12 or registering the notice of lien as provided in this 13 Section, unless sooner released, or otherwise discharged. 14 (h) Release of liens. The Department shall release all 15 or any portion of the property subject to any lien provided 16 for in this Section if it determines that the release will 17 not endanger or jeopardize the collection of the amount 18 secured. 19 (i) Judicial determination. If on judicial review a 20 court enters final judgment that the debtor does not owe some 21 or all of the amount secured by the lien against the debtor, 22 the Department shall release its lien to the extent of the 23 finding of nonliability. 24 (j) Payment. The Department shall also release its lien 25 against the debtor when the charges for services on which the 26 lien is based, plus any interest that may be due, are paid. 27 (k) Certificate of release. The Department shall issue 28 a certificate of complete or partial release of the lien: 29 (1) To the extent that the fair market value of any 30 property subject to the lien exceeds the amount of the 31 lien plus the amount of all prior liens upon the 32 property. 33 (2) To the extent that the lien is unenforceable. 34 (3) To the extent that the amount of the lien is SB785 Engrossed -24- LRB9002781KDks 1 paid by the person whose property is subject to the lien, 2 together with any interest that may become due under this 3 Section between the date when the notice of the lien is 4 filed or registered and the date when the amount of the 5 lien is paid. 6 (4) To the extent that there is furnished to the 7 Department, on a form approved by and with a surety or 8 sureties satisfactory to the Department, a bond that is 9 conditioned upon the payment of the amount of the lien, 10 together with any interest that may become due under this 11 Section after the notice of lien is filed, but before the 12 amount of the lien is fully paid. 13 To the extent that, and under the circumstances specified 14 in this Section, a certificate of complete or partial release 15 of any lien shall be conclusive that the lien on the property 16 indicated on the certificate is extinguished. 17 The release of lien shall be issued to the person, or his 18 or her agent, against whom the lien was obtained and shall 19 contain in legible letters a statement as follows: 20 FOR THE PROTECTION OF THE OWNER, THIS RELEASE MUST BE 21 FILED WITH THE RECORDER OR THE REGISTRAR OF TITLES IN WHOSE 22 OFFICE THE LIEN WAS FILED. 23 (l) Filing. When a certificate of complete or partial 24 release of lien issued by the Department is presented for 25 filing in the office of the recorder or registrar of titles 26 where a notice of lien was filed: 27 (1) In the case of nonregistered property, the 28 recorder shall permanently attach the certificate or 29 release to the notice of lien and shall enter the 30 certificate of release and the date on the lien where the 31 notice of lien is entered. 32 (2) In the case of registered property, the 33 registrar of titles shall file and enter upon each 34 affected folium of the register of titles a memorial of SB785 Engrossed -25- LRB9002781KDks 1 the certificate of release. The memorial when so entered 2 shall act as a release pro tanto of any memorial of the 3 notice of lien previously filed and registered. 4 (m) Nonliability for costs. The State of Illinois and 5 the Department shall not be required to furnish any bond to, 6 make any deposit for, or pay any costs of fees of any court 7 or court officer in any legal proceedings under this Section. 8 (n) Claim to property. Whenever any process, issued 9 from any court for the enforcement or collection of any 10 liability created by this Section, is levied by any sheriff 11 or other authorized person on any personal property, and that 12 property is claimed by any person other than the defendant as 13 exempt from enforcement of a judgment thereon by virtue of 14 the exemption laws of this State, then it shall be the duty 15 of the person making that claim to give notice in writing of 16 his or her claim and of his or her intention to prosecute the 17 claim, to the sheriff or other person within 10 days after 18 the making of the levy. On receiving that notice, the 19 sheriff or other person shall proceed in accordance with the 20 provisions of Part 2 of Article XII of the Code of Civil 21 Procedure. Giving the notice within the 10-day period is a 22 condition precedent to any judicial action against the 23 sheriff or other authorized person for wrongfully levying, 24 seizing, or selling the property, and any person who fails to 25 give notice within that time is forever barred from bringing 26 any judicial action against the sheriff or other person for 27 injury or damages to or conversion of the property. 28 (o) Foreclosure on real property. In addition to any 29 other remedy under the laws of this State, and provided that 30 no hearing or proceeding for review under this Section is 31 pending and the time for review has expired, the Department 32 may foreclose in the circuit court any lien on real property 33 for any charges for services imposed by this Section to the 34 same extent and in the same manner as in the enforcement of SB785 Engrossed -26- LRB9002781KDks 1 other liens. Proceedings to foreclose shall not be 2 instituted more than 5 years after filing the notice of lien 3 under subsection (b). The process, practice, and procedure 4 for foreclosure shall be the same as provided in the Civil 5 Practice Law, except that foreclosure of any lien created 6 herein shall not be available against the homestead property 7 of a recipient during the recipient's life. Furthermore, the 8 lien interest created herein against property held in joint 9 tenancy or tenancy by the entirety shall be extinguished upon 10 the death of the recipient, when a joint tenant or tenant by 11 the entirety survives the recipient. 12 (405 ILCS 5/5-111) (from Ch. 91 1/2, par. 5-111) 13 (Text of Section before amendment by P.A. 89-507) 14 Sec. 5-111. Review of Notice of Determination. 15 (a) Any person who has been issued a Notice of 16 Determination of sums due as services charges may petition 17 the Department for a review of that determination. The 18 petition must be in writing and filed with the Department 19 within 90 days from the date of the Notice of Determination. 20 The Department shall provide for a hearing to be held on the 21 charges for the period covered by the petition. The 22 Department may after such hearing, cancel, modify or increase 23 such former determination to an amount not to exceed the 24 maximum provided for such person by this Act. The Department 25 at its expense shall take testimony and preserve a record of 26 all proceedings at the hearing upon any petition for a 27 release from or modification of such determination. The 28 petition and other documents in the nature of pleadings and 29 motions filed in the case, a transcript of testimony, 30 findings of the Department, and orders of the Director 31 constitute the record. The Director shall furnish a 32 transcript of such record to any person upon payment therefor 33 of 75¢ per page for each original transcript and 25¢ per page SB785 Engrossed -27- LRB9002781KDks 1 for each copy thereof. Any person aggrieved by the decision 2 of the Department upon such hearing may, within 30 days 3 thereafter, file a petition with the Department for review of 4 such decision by the Board of Reimbursement Appeals. The 5 Board of Reimbursement Appeals may approve action taken by 6 the Department or may remand the case to the Director with 7 recommendations for redetermination of charges. 8 (b) The statutory lien under Section 5-105.1 is based on 9 a final Notice of Determination. A Notice of Determination 10 becomes final when the recipient of services or responsible 11 relative has completed administrative or judicial review and 12 the Department's Notice of Determination has been upheld, or 13 when the recipient of services or responsible relative has 14 failed to seek administrative or judicial review or has 15 waived his or her right to seek administrative or judicial 16 review of the Notice of Determination. 17 (Source: P.A. 80-1414.) 18 (Text of Section after amendment by P.A. 89-507) 19 Sec. 5-111. Review of Notice of Determination. 20 (a) Any person who has been issued a Notice of 21 Determination of sums due as services charges may petition 22 the Department for a review of that determination. The 23 petition must be in writing and filed with the Department 24 within 90 days from the date of the Notice of Determination. 25 The Department shall provide for a hearing to be held on the 26 charges for the period covered by the petition. The 27 Department may after such hearing, cancel, modify or increase 28 such former determination to an amount not to exceed the 29 maximum provided for such person by this Act. The Department 30 at its expense shall take testimony and preserve a record of 31 all proceedings at the hearing upon any petition for a 32 release from or modification of such determination. The 33 petition and other documents in the nature of pleadings and 34 motions filed in the case, a transcript of testimony, SB785 Engrossed -28- LRB9002781KDks 1 findings of the Department, and orders of the Secretary 2 constitute the record. The Secretary shall furnish a 3 transcript of such record to any person upon payment therefor 4 of 75¢ per page for each original transcript and 25¢ per page 5 for each copy thereof. Any person aggrieved by the decision 6 of the Department upon such hearing may, within 30 days 7 thereafter, file a petition with the Department for review of 8 such decision by the Board of Reimbursement Appeals. The 9 Board of Reimbursement Appeals may approve action taken by 10 the Department or may remand the case to the Secretary with 11 recommendations for redetermination of charges. 12 (b) The statutory lien under Section 5-105.1 is based on 13 a final Notice of Determination. A Notice of Determination 14 becomes final when the recipient of services or responsible 15 relative has completed administrative or judicial review and 16 the Department's Notice of Determination has been upheld, or 17 when the recipient of services or responsible relative has 18 failed to seek administrative or judicial review or has 19 waived his or her right to seek administrative or judicial 20 review of the Notice of Determination. 21 (Source: P.A. 89-507, eff. 7-1-97.) 22 Section 50. The Illinois Estate and Generation-Skipping 23 Transfer Tax Act is amended by changing Section 16 as 24 follows: 25 (35 ILCS 405/16) (from Ch. 120, par. 405A-16) 26 Sec. 16. Duty of Attorney General; failure to pay tax; 27 proceedings. 28 (a) Duty of the Attorney General. It is the duty of the 29 Attorney General to exercise general supervision over the 30 assessment and collection of the tax provided in this Act, 31 and in the discharge of that duty, the Attorney General may 32 prescribe rules and regulations as are deemed necessary and SB785 Engrossed -29- LRB9002781KDks 1 may institute and prosecute suits and proceedings as may be 2 necessary and proper, appearing therein for that purpose; and 3 it shall be the duty of the several State's Attorneys to 4 render assistance when requested by the Attorney General to 5 do so. The Attorney General shall determine and assess the 6 tax as provided for in this Act. 7 (b) Disclosure of federal return information. When 8 receipt of estate tax information from the Internal Revenue 9 Service under the Agreement on Coordination of Tax 10 Administration between the Internal Revenue Service and the 11 Attorney General discloses possible Illinois estate tax 12 liability, any person possessing federal estate tax 13 information shall be required to submit such information to 14 the Attorney General upon request to enable the Attorney 15 General to audit the return or Internal Revenue Service audit 16 adjustments and to determine whether any tax, penalty, or 17 interest is due the State of Illinois where such return 18 information has not been filed with the Attorney General. A 19 claim of confidentiality under Section 48.1 of the Illinois 20 Banking Act shall not prohibit or preclude the dissemination 21 of tax information required under this Section and shall not 22 constitute grounds for failing or refusing to surrender such 23 tax information to the Attorney General in the administration 24 and enforcement of this Act. Any tax information submitted 25 in compliance with this Section shall be treated and afforded 26 with the same confidentiality as a return filed under the 27 Act. 28 (Source: P.A. 86-737.) 29 Section 55. The Unemployment Insurance Act is amended by 30 changing Section 1900 as follows: 31 (820 ILCS 405/1900) (from Ch. 48, par. 640) 32 Sec. 1900. Disclosure of information. SB785 Engrossed -30- LRB9002781KDks 1 A. Except as provided in this Section, information 2 obtained from any individual or employing unit during the 3 administration of this Act shall: 4 1. be confidential, 5 2. not be published or open to public inspection, 6 3. not be used in any court in any pending action 7 or proceeding, 8 4. not be admissible in evidence in any action or 9 proceeding other than one arising out of this Act. 10 B. No finding, determination, decision, ruling or order 11 (including any finding of fact, statement or conclusion made 12 therein) issued pursuant to this Act shall be admissible or 13 used in evidence in any action other than one arising out of 14 this Act, nor shall it be binding or conclusive except as 15 provided in this Act, nor shall it constitute res judicata, 16 regardless of whether the actions were between the same or 17 related parties or involved the same facts. 18 C. Any officer or employee of this State who, except 19 with authority of the Director under this Section, shall 20 disclose information shall be guilty of a Class B misdemeanor 21 and shall be disqualified from holding any appointment or 22 employment by the State. 23 D. An individual or his duly authorized agent may be 24 supplied with information from records only to the extent 25 necessary for the proper presentation of his claim for 26 benefits or with his existing or prospective rights to 27 benefits. Discretion to disclose this information belongs 28 solely to the Director and is not subject to a release or 29 waiver by the individual. 30 E. An employing unit may be furnished with information, 31 only if deemed by the Director as necessary to enable it to 32 fully discharge its obligations or safeguard its rights under 33 the Act. Discretion to disclose this information belongs 34 solely to the Director and is not subject to a release or SB785 Engrossed -31- LRB9002781KDks 1 waiver by the employing unit. 2 F. The Director may furnish any information that he may 3 deem proper to any public officer or public agency of this or 4 any other State or of the federal government dealing with: 5 1. the administration of relief, 6 2. public assistance, 7 3. unemployment compensation, 8 4. a system of public employment offices, 9 5. wages and hours of employment, or 10 6. a public works program. 11 The Director may make available to the Illinois 12 Industrial Commission information regarding employers for the 13 purpose of verifying the insurance coverage required under 14 the Workers' Compensation Act and Workers' Occupational 15 Diseases Act. 16 G. The Director may disclose information submitted by 17 the State or any of its political subdivisions, municipal 18 corporations, instrumentalities, or school or community 19 college districts, except for information which specifically 20 identifies an individual claimant. 21 H. The Director shall disclose only that information 22 required to be disclosed under Section 303 of the Social 23 Security Act, as amended, including: 24 1. any information required to be given the United 25 States Department of Labor under Section 303(a)(6); and 26 2. the making available upon request to any agency 27 of the United States charged with the administration of 28 public works or assistance through public employment, the 29 name, address, ordinary occupation and employment status 30 of each recipient of unemployment compensation, and a 31 statement of such recipient's right to further 32 compensation under such law as required by Section 33 303(a)(7); and 34 3. records to make available to the Railroad SB785 Engrossed -32- LRB9002781KDks 1 Retirement Board as required by Section 303(c)(1); and 2 4. information that will assure reasonable 3 cooperation with every agency of the United States 4 charged with the administration of any unemployment 5 compensation law as required by Section 303(c)(2); and 6 5. information upon request and on a reimbursable 7 basis to the United States Department of Agriculture and 8 to any State food stamp agency concerning any information 9 required to be furnished by Section 303(d); and 10 6. any wage information upon request and on a 11 reimbursable basis to any State or local child support 12 enforcement agency required by Section 303(e); and 13 7. any information required under the income 14 eligibility and verification system as required by 15 Section 303(f); and 16 8. information that might be useful in locating an 17 absent parent or that parent's employer for the purpose 18 of a child support enforcement program under Title IV of 19 the Social Security Act upon the request of the public 20 agency administering the Federal Parent Locator Service 21 as required by Section 303(h); and 22 9. information, upon request, to representatives of 23 any federal, State or local governmental public housing 24 agency with respect to individuals who have signed the 25 appropriate consent form approved by the Secretary of 26 Housing and Urban Development and who are applying for or 27 participating in any housing assistance program 28 administered by the United States Department of Housing 29 and Urban Development as required by Section 303(i). 30 I. The Director, upon the request of a public agency of 31 Illinois, of the federal government or of any other state 32 charged with the investigation or enforcement of Section 10-5 33 of the Criminal Code of 1961 (or a similar federal law or 34 similar law of another State), may furnish the public agency SB785 Engrossed -33- LRB9002781KDks 1 information regarding the individual specified in the request 2 as to: 3 1. the current or most recent home address of the 4 individual, and 5 2. the names and addresses of the individual's 6 employers. 7 J. Nothing in this Section shall be deemed to interfere 8 with the disclosure of certain records as provided for in 9 Section 1706 or with the right to make available to the 10 Internal Revenue Service of the United States Department of 11 the Treasury, or the Department of Revenue of the State of 12 Illinois, information obtained under this Act. 13 K. The Department shall make available to the State 14 Scholarship Commission, upon request that it may be necessary 15 or useful to the Commission in the collection of defaulted or 16 delinquent student loans which the Commission administers, 17 information limited to the names and addresses of a 18 borrower's employers. 19 L. The Department shall make available to the State 20 Employees' Retirement System, the State Universities 21 Retirement System, and the Teachers' Retirement System of the 22 State of Illinois, upon request, information in the 23 possession of the Department that may be necessary or useful 24 to the System for the purpose of determining whether any 25 recipient of a disability benefit from the System is 26 gainfully employed. 27 M. This Section shall be applicable to the information 28 obtained in the administration of the State employment 29 service, except that the Director may publish or release 30 general labor market information and may furnish information 31 that he may deem proper to an individual, public officer or 32 public agency of this or any other State or the federal 33 government (in addition to those public officers or public 34 agencies specified in this Section) as he prescribes by Rule. SB785 Engrossed -34- LRB9002781KDks 1 N. The Director may require such safeguards as he deems 2 proper to insure that information disclosed pursuant to this 3 Section is used only for the purposes set forth in this 4 Section. 5 O. (Blank). 6 P. Within 30 days after the effective date of this 7 amendatory Act of 1993 and annually thereafter, the 8 Department shall provide to the Department of Financial 9 Institutions a list of individuals or entities that, for the 10 most recently completed calendar year, report to the 11 Department as paying wages to workers. The lists shall be 12 deemed confidential and may not be disclosed to any other 13 person. 14 Q. The Director shall make available to an elected 15 federal official the name and address of an individual or 16 entity that is located within the jurisdiction from which the 17 official was elected and that, for the most recently 18 completed calendar year, has reported to the Department as 19 paying wages to workers, where the information will be used 20 in connection with the official duties of the official and 21 the official requests the information in writing, specifying 22 the purposes for which it will be used. For purposes of this 23 subsection, the use of information in connection with the 24 official duties of an official does not include use of the 25 information in connection with the solicitation of 26 contributions or expenditures, in money or in kind, to or on 27 behalf of a candidate for public or political office or a 28 political party or with respect to a public question, as 29 defined in Section 1-3 of the Election Code, or in connection 30 with any commercial solicitation. Any elected federal 31 official who, in submitting a request for information covered 32 by this subsection, knowingly makes a false statement or 33 fails to disclose a material fact, with the intent to obtain 34 the information for a purpose not authorized by this SB785 Engrossed -35- LRB9002781KDks 1 subsection, shall be guilty of a Class B misdemeanor. 2 R. The Department shall make available to any State 3 agency, upon request that it may be necessary or useful to 4 the State agency in the collection of delinquent accounts 5 receivable due that agency, information limited to the names 6 and addresses of a debtor's employers. The Director shall 7 also make such employment information available to the 8 Attorney General when the Attorney General is seeking the 9 recovery of any debt due the State or any of its agencies. 10 (Source: P.A. 88-435; 89-446, eff. 2-8-96; 89-493, eff. 11 1-1-97.) 12 Section 95. No acceleration or delay. Where this Act 13 makes changes in a statute that is represented in this Act by 14 text that is not yet or no longer in effect (for example, a 15 Section represented by multiple versions), the use of that 16 text does not accelerate or delay the taking effect of (i) 17 the changes made by this Act or (ii) provisions derived from 18 any other Public Act. 19 Section 99. Effective date. This Act takes effect upon 20 becoming law.