HB2560 102ND GENERAL ASSEMBLY

LRB102 14972 JLS 20327 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2560

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

SYNOPSIS AS INTRODUCED:

820 ILCS 405/901.5 new

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

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning employment.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Unemployment Insurance Act is amended by adding Section 901.5 as follows:

(820 ILCS 405/901.5 new)

Sec. 901.5. Fraudulent benefit claims through identity theft.

(a) If an individual becomes aware that an application has been made for benefits in his or her name and neither that individual nor anyone acting on that individual's behalf has applied for benefits, the individual shall notify the Department of the potential for a fraudulent claim involving identity theft. If an employer becomes aware that an application has been made for benefits in the name of a current or former employee or someone representing himself or herself to be a current or former employee and reasonably believes the application is fraudulent for reasons of identity theft, the employer shall notify the Department of the potential for a fraudulent claim or identity theft.

(b) The Department shall publish on its website both an email address and a postal service address to accept correspondence relating to fraud notifications under subsection (a).

(c) The Department shall respond to the notification of fraud within 48 hours of receipt. Such notification shall constitute proof of service of the fraudulent report. The Department shall also notify the Illinois Department of Revenue.

(d) Within 15 calendar days after receipt of a notification, the Department must notify, in writing, if submissions were provided in writing, or electronically, if submissions were made electronically, the individual who provided notice of the alleged fraud or identity theft whether the State of Illinois has issued any monetary payments based on that claim.

(e) Neither the Department nor the Department of Revenue may impose any penalties or seek reimbursement from any individual or employer for fraudulent benefit claims involving the individual or employer unless the individual or employer was a knowing, voluntary participant in the fraudulent scheme.

(f) If the reason for the fraudulent claim for benefits or identity theft is the result of a breach of State systems, an individual or employer has the right to secure reimbursement for reasonably foreseeable expenses resulting from the breach.

(g) All cases of fraud or identity theft must be referred by the Department to the Attorney General. Within 90 days after the referral is made, the Attorney General must report to the victim, in writing, the result of the investigation and what action was taken toward prosecution. If no action was taken toward prosecution, the reason shall be stated in writing.