96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB5670

 

Introduced 2/9/2010, by Rep. Timothy L. Schmitz

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 405/1300   from Ch. 48, par. 540

    Amends the Unemployment Insurance Act. Provides that an individual may voluntarily elect to have current child support payments deducted and withheld from his or her unemployment insurance benefit payments, and that the Director of Employment Security shall adopt rules for the implementation of the new provision.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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

 

 

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1 child support enforcement services under Section 10-1 of such
2 Code, or persons similarly situated and receiving like services
3 in other states. It is provided that:
4         (1) The aforementioned deduction of benefits and order
5     for withholding of income apply only if appropriate
6     arrangements have been made for reimbursement to the
7     Director by the Department of Healthcare and Family
8     Services for any administrative costs incurred by the
9     Director under this Section.
10         (2) The Director shall deduct and withhold from
11     benefits payable under this Act, or under any arrangement
12     for the payment of benefits entered into by the Director
13     pursuant to the powers granted under Section 2700 of this
14     Act, the amount specified or agreed upon. In the case of a
15     court or administrative order for withholding of income,
16     the Director shall withhold the amount of the order.
17         (3) Any amount deducted and withheld by the Director
18     shall be paid to the Department of Healthcare and Family
19     Services or the State Disbursement Unit established under
20     Section 10-26 of the Illinois Public Aid Code, as directed
21     by the Department of Healthcare and Family Services, on
22     behalf of the individual.
23         (4) Any amount deducted and withheld under subsection
24     (3) shall for all purposes be treated as if it were paid to
25     the individual as benefits and paid by such individual to
26     the Department of Healthcare and Family Services or the

 

 

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1     State Disbursement Unit in satisfaction of the
2     individual's child support obligations.
3         (5) For the purpose of this Section, child support is
4     defined as those obligations which are being enforced
5     pursuant to a plan described in Title IV, Part D, Section
6     454 of the Social Security Act and approved by the
7     Secretary of Health and Human Services.
8         (6) The deduction of benefits and order for withholding
9     of income for child support shall be governed by Titles III
10     and IV of the Social Security Act and all regulations duly
11     promulgated thereunder.
12     (B-5) Nothing in this Section prohibits an individual from
13 voluntarily electing to have current child support payments
14 deducted and withheld from his or her unemployment insurance
15 benefit payments. The Director shall adopt rules for the
16 implementation of this subsection (B-5).
17     (C) Nothing in this Section prohibits an individual from
18 voluntarily electing to have federal income tax deducted and
19 withheld from his or her unemployment insurance benefit
20 payments.
21         (1) The Director shall, at the time that an individual
22     files his or her claim for benefits that establishes his or
23     her benefit year, inform the individual that:
24             (a) unemployment insurance is subject to federal,
25         State, and local income taxes;
26             (b) requirements exist pertaining to estimated tax

 

 

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

 

 

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

 

 

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1         (2) The Director shall deduct and withhold from any
2     unemployment insurance benefits payable to an individual
3     who owes an uncollected overissuance of food stamp coupons:
4             (a) the amount specified by the individual to the
5         Director to be deducted and withheld under this
6         subsection (E);
7             (b) the amount (if any) determined pursuant to an
8         agreement submitted to the State food stamp agency
9         under Section 13(c)(3)(A) of the federal Food Stamp Act
10         of 1977; or
11             (c) any amount otherwise required to be deducted
12         and withheld from unemployment insurance benefits
13         pursuant to Section 13(c)(3)(B) of the federal Food
14         Stamp Act of 1977.
15         (3) Any amount deducted and withheld pursuant to this
16     subsection (E) shall be paid by the Director to the State
17     food stamp agency.
18         (4) Any amount deducted and withheld pursuant to this
19     subsection (E) shall for all purposes be treated as if it
20     were paid to the individual as unemployment insurance
21     benefits and paid by the individual to the State food stamp
22     agency as repayment of the individual's uncollected
23     overissuance of food stamp coupons.
24         (5) For purposes of this subsection (E), "unemployment
25     insurance benefits" means any compensation payable under
26     this Act including amounts payable by the Director pursuant

 

 

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1     to an agreement under any federal law providing for
2     compensation, assistance, or allowances with respect to
3     unemployment.
4         (6) This subsection (E) applies only if arrangements
5     have been made for reimbursement by the State food stamp
6     agency for the administrative costs incurred by the
7     Director under this subsection (E) which are attributable
8     to the repayment of uncollected overissuances of food stamp
9     coupons to the State food stamp agency.
10 (Source: P.A. 94-237, eff. 1-1-06; 95-331, eff. 8-21-07.)