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90_SB0806ham001
LRB9000438WHmgam02
1 AMENDMENT TO SENATE BILL 806
2 AMENDMENT NO. . Amend Senate Bill 806 by replacing
3 the title with the following:
4 "AN ACT to amend the Unemployment Insurance Act by
5 changing Sections 1300 and 1900 and adding Section 1801.1.";
6 and
7 by replacing everything after the enacting clause with the
8 following:
9 "Section 5. The Unemployment Insurance Act is amended by
10 changing Sections 1300 and 1900 and adding Section 1801.1 as
11 follows:
12 (820 ILCS 405/1300) (from Ch. 48, par. 540)
13 Sec. 1300. Waiver or transfer of benefit rights -
14 Partial exemption.
15 (A) Except as otherwise provided herein any agreement by
16 an individual to waive, release or commute his rights under
17 this Act shall be void.
18 (B) Benefits due under this Act shall not be assigned,
19 pledged, encumbered, released or commuted and shall be exempt
20 from all claims of creditors and from levy, execution and
21 attachment or other remedy for recovery or collection of a
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1 debt. However, nothing in this Section shall prohibit a
2 specified or agreed upon deduction from benefits by an
3 individual, or a court or administrative order for
4 withholding of income, for payment of past due child support
5 from being enforced and collected by the Department of Public
6 Aid on behalf of persons receiving a grant of financial aid
7 under Article IV of The Illinois Public Aid Code, persons for
8 whom an application has been made and approved for support
9 services under Section 10-1 of such Code, or persons
10 similarly situated and receiving like support services in
11 other states. It is provided that:
12 (1) The aforementioned deduction of benefits and
13 order for withholding of income apply only if appropriate
14 arrangements have been made for reimbursement to the
15 Director by the Department of Public Aid for any
16 administrative costs incurred by the Director under this
17 Section.
18 (2) The Director shall deduct and withhold from
19 benefits payable under this Act, or under any arrangement
20 for the payment of benefits entered into by the Director
21 pursuant to the powers granted under Section 2700 of this
22 Act, the amount specified or agreed upon. In the case of
23 a court or administrative order for withholding of
24 income, the Director shall withhold the amount of the
25 order.
26 (3) Any amount deducted and withheld by the
27 Director shall be paid to the Department of Public Aid on
28 behalf of the individual.
29 (4) Any amount deducted and withheld under
30 subsection (3) shall for all purposes be treated as if it
31 were paid to the individual as benefits and paid by such
32 individual to the Department of Public Aid in
33 satisfaction of the individual's child support
34 obligations.
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1 (5) For the purpose of this Section, child support
2 is defined as those obligations which are being enforced
3 pursuant to a plan described in Title IV, Part D, Section
4 454 of the Social Security Act and approved by the
5 Secretary of Health and Human Services.
6 (6) The deduction of benefits and order for
7 withholding of income for child support shall be governed
8 by Titles III and IV of the Social Security Act and all
9 regulations duly promulgated thereunder.
10 (C) Nothing in this Section prohibits an individual from
11 voluntarily electing to have federal income tax deducted and
12 withheld from his or her unemployment insurance benefit
13 payments.
14 (1) The Director shall, at the time that an
15 individual files his or her claim for benefits that
16 establishes his or her benefit year, inform the
17 individual that:
18 (a) unemployment insurance is subject to
19 federal, State, and local income taxes;
20 (b) requirements exist pertaining to estimated
21 tax payments;
22 (c) the individual may elect to have federal
23 income tax deducted and withheld from his or her
24 payments of unemployment insurance in the amount
25 specified in the federal Internal Revenue Code; and
26 (d) the individual is permitted to change a
27 previously elected withholding status no more than
28 once each calendar year.
29 (2) Amounts deducted and withheld from unemployment
30 insurance shall remain in the unemployment fund until
31 transferred to the federal taxing authority as a payment
32 of income tax.
33 (3) The Director shall follow all procedures
34 specified by the United States Department of Labor and
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1 the federal Internal Revenue Service pertaining to the
2 deducting and withholding of income tax.
3 (4) Amounts shall be deducted and withheld in
4 accordance with the priorities established in rules
5 promulgated by the Director.
6 (D) Nothing in this Section prohibits an individual from
7 voluntarily electing to have State of Illinois income tax
8 deducted and withheld from his or her unemployment insurance
9 benefit payments if such deduction and withholding is
10 provided for pursuant to rules promulgated by the Director.
11 (1) If pursuant to rules promulgated by the
12 Director, an individual may voluntarily elect to have
13 State of Illinois income tax deducted and withheld from
14 his or her unemployment insurance benefit payments, the
15 Director shall, at the time that an individual files his
16 or her claim for benefits that establishes his or her
17 benefit year, in addition to providing the notice
18 required under subsection C, inform the individual that:
19 (a) the individual may elect to have State of
20 Illinois income tax deducted and withheld from his
21 or her payments of unemployment insurance in the
22 amount specified pursuant to rules promulgated by
23 the Director; and
24 (b) the individual is permitted to change a
25 previously elected withholding status no more than
26 once each calendar year.
27 (2) Amounts deducted and withheld from unemployment
28 insurance shall remain in the unemployment fund until
29 transferred to the Department of Revenue as a payment of
30 State of Illinois income tax.
31 (3) Amounts shall be deducted and withheld in
32 accordance with the priorities established in rules
33 promulgated by the Director.
34 (E) Nothing in this Section prohibits the deduction and
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1 withholding of an uncollected overissuance of food stamp
2 coupons from unemployment insurance benefits pursuant to this
3 subsection (E).
4 (1) At the time that an individual files a claim
5 for benefits that establishes his or her benefit year,
6 that individual must disclose whether or not he or she
7 owes an uncollected overissuance (as defined in Section
8 13(c)(1) of the federal Food Stamp Act of 1977) of food
9 stamp coupons. The Director shall notify the State food
10 stamp agency enforcing such obligation of any individual
11 who discloses that he or she owes an uncollected
12 overissuance of food stamp coupons and who meets the
13 monetary eligibility requirements of subsection E of
14 Section 500.
15 (2) The Director shall deduct and withhold from any
16 unemployment insurance benefits payable to an individual
17 who owes an uncollected overissuance of food stamp
18 coupons:
19 (a) the amount specified by the individual to
20 the Director to be deducted and withheld under this
21 subsection (E);
22 (b) the amount (if any) determined pursuant to
23 an agreement submitted to the State food stamp
24 agency under Section 13(c)(3)(A) of the federal Food
25 Stamp Act of 1977; or
26 (c) any amount otherwise required to be
27 deducted and withheld from unemployment insurance
28 benefits pursuant to Section 13(c)(3)(B) of the
29 federal Food Stamp Act of 1977.
30 (3) Any amount deducted and withheld pursuant to
31 this subsection (E) shall be paid by the Director to the
32 State food stamp agency.
33 (4) Any amount deducted and withheld pursuant to
34 this subsection (E) shall for all purposes be treated as
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1 if it were paid to the individual as unemployment
2 insurance benefits and paid by the individual to the
3 State food stamp agency as repayment of the individual's
4 uncollected overissuance of food stamp coupons.
5 (5) For purposes of this subsection (E),
6 "unemployment insurance benefits" means any compensation
7 payable under this Act including amounts payable by the
8 Director pursuant to an agreement under any federal law
9 providing for compensation, assistance, or allowances
10 with respect to unemployment.
11 (6) This subsection (E) applies only if
12 arrangements have been made for reimbursement by the
13 State food stamp agency for the administrative costs
14 incurred by the Director under this subsection (E) which
15 are attributable to the repayment of uncollected
16 overissuances of food stamp coupons to the State food
17 stamp agency.
18 (Source: P.A. 89-446, eff. 1-1-97.)
19 (820 ILCS 405/1801.1 new)
20 Sec. 1801.1. Directory of New Hires.
21 A. The Director shall establish and operate an automated
22 directory of newly hired employees which shall be known as
23 the "Illinois Directory of New Hires" which shall contain the
24 information required to be reported by employers to the
25 Department under subsection B. In the administration of the
26 Directory, the Director shall comply with any requirements
27 concerning the Employer New Hire Reporting Program
28 established by the federal Personal Responsibility and Work
29 Opportunity Reconciliation Act of 1996. The Director is
30 authorized to use the information contained in the Directory
31 of New Hires to administer any of the provisions of this Act.
32 B. On and after October 1, 1997, each employer in
33 Illinois, except a department, agency, or instrumentality of
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1 the United States, shall file with the Department a report in
2 accordance with rules adopted by the Department (but in any
3 event not later than 20 days after the date the employer
4 hires the employee or, in, the case of an employer
5 transmitting reports magnetically or electronically, by 2
6 monthly transmissions, if necessary, not less than 12 days
7 nor more than 16 days apart) providing the following
8 information concerning each newly hired employee: the
9 employee's name, address, and social security number, and the
10 employer's name, address, Federal Employer Identification
11 Number assigned under Section 6109 of the Internal Revenue
12 Code of 1986, and such other information as may be required
13 by federal law or regulation, provided that each employer may
14 voluntarily file the date of new hire, and the address to
15 which the employer wants income withholding orders to be
16 mailed, if it is different from the address given on the
17 Federal Employer Identification Number. An employer in
18 Illinois which transmits its reports electronically or
19 magnetically and which also has employees in another state
20 may report all newly hired employees to a single designated
21 state in which the employer has employees if it has so
22 notified the Secretary of the United States Department of
23 Health and Human Services in writing. Each report required
24 under this subsection shall be made on an Internal Revenue
25 Service Form W-4 or, at the option of the employer, an
26 equivalent form, and may be transmitted by first class mail,
27 by telefax, magnetically, or electronically.
28 C. An employer which knowingly fails to comply with the
29 reporting requirements established by this Section shall be
30 subject to a civil penalty of $15 for each individual whom it
31 fails to report. An employer shall be considered to have
32 knowingly failed to comply with the reporting requirements
33 established by this Section with respect to an individual if
34 the employer has been notified by the Department that it has
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1 failed to report an individual, and it fails, without
2 reasonable cause, to supply the required information to the
3 Department within 21 days after the date of mailing of the
4 notice. Any individual who knowingly conspires with the newly
5 hired employee to cause the employer to fail to report the
6 information required by this Section or who knowingly
7 conspires with the newly hired employee to cause the employer
8 to file a false or incomplete report shall be guilty of a
9 Class B misdemeanor with a fine not to exceed $500 with
10 respect to each employee with whom the individual so
11 conspires.
12 D. As used in this Section, "newly hired employee" means
13 an individual who is an employee within the meaning of
14 Chapter 24 of the Internal Revenue Code of 1986, and whose
15 reporting to work which results in earnings from the employer
16 is the first instance within the preceding 180 days that the
17 individual has reported for work for which earnings were
18 received from that employer; however, "newly hired employee"
19 does not include an employee of a federal or State agency
20 performing intelligence or counterintelligence functions, if
21 the head of that agency has determined that the filing of the
22 report required by this Section with respect to the employee
23 could endanger the safety of the employee or compromise an
24 ongoing investigation or intelligence mission.
25 Notwithstanding Section 205, and for the purposes of this
26 Section only, the term "employer" has the meaning given by
27 Section 3401(d) of the Internal Revenue Code of 1986 and
28 includes any governmental entity and labor organization as
29 defined by Section 2(5) of the National Labor Relations Act,
30 and includes any entity (also known as a hiring hall) which
31 is used by the organization and an employer to carry out the
32 requirements described in Section 8(f)(3) of that Act of an
33 agreement between the organization and the employer.
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1 (820 ILCS 405/1900) (from Ch. 48, par. 640)
2 Sec. 1900. Disclosure of information.
3 A. Except as provided in this Section, information
4 obtained from any individual or employing unit during the
5 administration of this Act shall:
6 1. be confidential,
7 2. not be published or open to public inspection,
8 3. not be used in any court in any pending action
9 or proceeding,
10 4. not be admissible in evidence in any action or
11 proceeding other than one arising out of this Act.
12 B. No finding, determination, decision, ruling or order
13 (including any finding of fact, statement or conclusion made
14 therein) issued pursuant to this Act shall be admissible or
15 used in evidence in any action other than one arising out of
16 this Act, nor shall it be binding or conclusive except as
17 provided in this Act, nor shall it constitute res judicata,
18 regardless of whether the actions were between the same or
19 related parties or involved the same facts.
20 C. Any officer or employee of this State, any officer or
21 employee of any entity authorized to obtain information
22 pursuant to this Section, and any agent of this State or of
23 such entity who, except with authority of the Director under
24 this Section, shall disclose information shall be guilty of a
25 Class B misdemeanor and shall be disqualified from holding
26 any appointment or employment by the State.
27 D. An individual or his duly authorized agent may be
28 supplied with information from records only to the extent
29 necessary for the proper presentation of his claim for
30 benefits or with his existing or prospective rights to
31 benefits. Discretion to disclose this information belongs
32 solely to the Director and is not subject to a release or
33 waiver by the individual.
34 E. An employing unit may be furnished with information,
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1 only if deemed by the Director as necessary to enable it to
2 fully discharge its obligations or safeguard its rights under
3 the Act. Discretion to disclose this information belongs
4 solely to the Director and is not subject to a release or
5 waiver by the employing unit.
6 F. The Director may furnish any information that he may
7 deem proper to any public officer or public agency of this or
8 any other State or of the federal government dealing with:
9 1. the administration of relief,
10 2. public assistance,
11 3. unemployment compensation,
12 4. a system of public employment offices,
13 5. wages and hours of employment, or
14 6. a public works program.
15 The Director may make available to the Illinois
16 Industrial Commission information regarding employers for the
17 purpose of verifying the insurance coverage required under
18 the Workers' Compensation Act and Workers' Occupational
19 Diseases Act.
20 G. The Director may disclose information submitted by
21 the State or any of its political subdivisions, municipal
22 corporations, instrumentalities, or school or community
23 college districts, except for information which specifically
24 identifies an individual claimant.
25 H. The Director shall disclose only that information
26 required to be disclosed under Section 303 of the Social
27 Security Act, as amended, including:
28 1. any information required to be given the United
29 States Department of Labor under Section 303(a)(6); and
30 2. the making available upon request to any agency
31 of the United States charged with the administration of
32 public works or assistance through public employment, the
33 name, address, ordinary occupation and employment status
34 of each recipient of unemployment compensation, and a
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1 statement of such recipient's right to further
2 compensation under such law as required by Section
3 303(a)(7); and
4 3. records to make available to the Railroad
5 Retirement Board as required by Section 303(c)(1); and
6 4. information that will assure reasonable
7 cooperation with every agency of the United States
8 charged with the administration of any unemployment
9 compensation law as required by Section 303(c)(2); and
10 5. information upon request and on a reimbursable
11 basis to the United States Department of Agriculture and
12 to any State food stamp agency concerning any information
13 required to be furnished by Section 303(d); and
14 6. any wage information upon request and on a
15 reimbursable basis to any State or local child support
16 enforcement agency required by Section 303(e); and
17 7. any information required under the income
18 eligibility and verification system as required by
19 Section 303(f); and
20 8. information that might be useful in locating an
21 absent parent or that parent's employer, establishing
22 paternity or establishing, modifying, or enforcing child
23 support orders for the purpose of a child support
24 enforcement program under Title IV of the Social Security
25 Act upon the request of and on a reimbursable basis to
26 the public agency administering the Federal Parent
27 Locator Service as required by Section 303(h); and
28 9. information, upon request, to representatives of
29 any federal, State or local governmental public housing
30 agency with respect to individuals who have signed the
31 appropriate consent form approved by the Secretary of
32 Housing and Urban Development and who are applying for or
33 participating in any housing assistance program
34 administered by the United States Department of Housing
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1 and Urban Development as required by Section 303(i).
2 I. The Director, upon the request of a public agency of
3 Illinois, of the federal government or of any other state
4 charged with the investigation or enforcement of Section 10-5
5 of the Criminal Code of 1961 (or a similar federal law or
6 similar law of another State), may furnish the public agency
7 information regarding the individual specified in the request
8 as to:
9 1. the current or most recent home address of the
10 individual, and
11 2. the names and addresses of the individual's
12 employers.
13 J. Nothing in this Section shall be deemed to interfere
14 with the disclosure of certain records as provided for in
15 Section 1706 or with the right to make available to the
16 Internal Revenue Service of the United States Department of
17 the Treasury, or the Department of Revenue of the State of
18 Illinois, information obtained under this Act.
19 K. The Department shall make available to the State
20 Scholarship Commission, upon request that it may be necessary
21 or useful to the Commission in the collection of defaulted or
22 delinquent student loans which the Commission administers,
23 information limited to the names and addresses of a
24 borrower's employers.
25 L. The Department shall make available to the State
26 Employees' Retirement System, the State Universities
27 Retirement System, and the Teachers' Retirement System of the
28 State of Illinois, upon request, information in the
29 possession of the Department that may be necessary or useful
30 to the System for the purpose of determining whether any
31 recipient of a disability benefit from the System is
32 gainfully employed.
33 M. This Section shall be applicable to the information
34 obtained in the administration of the State employment
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1 service, except that the Director may publish or release
2 general labor market information and may furnish information
3 that he may deem proper to an individual, public officer or
4 public agency of this or any other State or the federal
5 government (in addition to those public officers or public
6 agencies specified in this Section) as he prescribes by Rule.
7 N. The Director may require such safeguards as he deems
8 proper to insure that information disclosed pursuant to this
9 Section is used only for the purposes set forth in this
10 Section.
11 O. (Blank).
12 P. Within 30 days after the effective date of this
13 amendatory Act of 1993 and annually thereafter, the
14 Department shall provide to the Department of Financial
15 Institutions a list of individuals or entities that, for the
16 most recently completed calendar year, report to the
17 Department as paying wages to workers. The lists shall be
18 deemed confidential and may not be disclosed to any other
19 person.
20 Q. The Director shall make available to an elected
21 federal official the name and address of an individual or
22 entity that is located within the jurisdiction from which the
23 official was elected and that, for the most recently
24 completed calendar year, has reported to the Department as
25 paying wages to workers, where the information will be used
26 in connection with the official duties of the official and
27 the official requests the information in writing, specifying
28 the purposes for which it will be used. For purposes of this
29 subsection, the use of information in connection with the
30 official duties of an official does not include use of the
31 information in connection with the solicitation of
32 contributions or expenditures, in money or in kind, to or on
33 behalf of a candidate for public or political office or a
34 political party or with respect to a public question, as
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1 defined in Section 1-3 of the Election Code, or in connection
2 with any commercial solicitation. Any elected federal
3 official who, in submitting a request for information covered
4 by this subsection, knowingly makes a false statement or
5 fails to disclose a material fact, with the intent to obtain
6 the information for a purpose not authorized by this
7 subsection, shall be guilty of a Class B misdemeanor.
8 R. The Director may provide to any State or local child
9 support agency, upon request and on a reimbursable basis,
10 information that might be useful in locating an absent parent
11 or that parent's employer, establishing paternity, or
12 establishing, modifying, or enforcing child support orders.
13 (Source: P.A. 88-435; 89-446, eff. 2-8-96; 89-493, eff.
14 1-1-97.)
15 Section 99. Effective date. This Act takes effect upon
16 becoming law.".