Illinois General Assembly - Full Text of SB4026
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Full Text of SB4026  101st General Assembly




State of Illinois
2019 and 2020


Introduced 1/4/2021, by Sen. Ram Villivalam


820 ILCS 405/702  from Ch. 48, par. 452
820 ILCS 405/900  from Ch. 48, par. 490
820 ILCS 405/1900  from Ch. 48, par. 640
820 ILCS 405/2206.2 new

    Amends the Unemployment Insurance Act. Provides that a claims adjuster's determination whether a claimant is eligible for unemployment benefits shall state whatever appeal rights the claimant or employer may have, including the ability to request waiver of any recoupment ordered and the standard for such waiver to be granted. Permits the Director of Employment Security to request that the Comptroller and the Secretary of the Treasury withhold any sum of benefits that an ineligible individual has received through the individual's own fault. In a provision prohibiting the disclosure of information obtained from an individual or employing unit in the administration of the Act, provides that an officer or employee of the State or other specified persons who disclose such information without the authority of the Director commit a business offense (rather than a Class B misdemeanor with disqualification from holding any appointment or employment by the State). Provides that, with the written consent of a claimant or employing unit and an agreement not to publicly disclose, the Director shall provide requested information related to a claim to a public officer or his or her agent. Provides that nothing under the Act prohibits the disclosure of contracts entered into by the Department of Employment Security in accordance with the Illinois Procurement Code. Provides that, except as otherwise provided in the Illinois Procurement Code, all contracts for services, purchases, or sales by the Department not subject to public bid shall be made available on the Department's website within 14 days of execution of the contract.

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SB4026LRB101 23028 KTG 74148 b

1    AN ACT concerning employment.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Unemployment Insurance Act is amended by
5changing Sections 702, 900, and 1900 and by adding Section
62206.2 as follows:
7    (820 ILCS 405/702)  (from Ch. 48, par. 452)
8    Sec. 702. Determinations. The claims adjudicator shall for
9each week with respect to which the claimant claims benefits or
10waiting period credit, make a "determination" which shall state
11whether or not the claimant is eligible for such benefits or
12waiting period credit and the sum to be paid the claimant with
13respect to such week. The claims adjudicator shall promptly
14notify the claimant and such employing unit as shall, within
15the time and in the manner prescribed by the Director, have
16filed a sufficient allegation that the claimant is ineligible
17to receive benefits or waiting period credit for said week, of
18his "determination" and the reasons therefor. The Director may,
19by rule adopted with the advice and aid of the Employment
20Security Advisory Board, require that an employing unit with 25
21or more individuals in its employ during a calendar year, or an
22entity representing 5 or more employing units during a calendar
23year, file an allegation of ineligibility electronically in a



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1manner prescribed by the Director for the one year period
2commencing on July 1 of the immediately succeeding calendar
3year and ending on June 30 of the second succeeding calendar
4year. In making his "determination," the claims adjudicator
5shall give consideration to the information, if any, contained
6in the employing unit's allegation, whether or not the
7allegation is sufficient. The claims adjudicator shall deem an
8employing unit's allegation sufficient only if it contains a
9reason or reasons therefor (other than general conclusions of
10law, and statements such as "not actively seeking work" or "not
11available for work" shall be deemed, for this purpose, to be
12conclusions of law). If the claims adjudicator deems an
13allegation insufficient, he shall make a decision accordingly,
14and shall notify the employing unit of such decision and the
15reasons therefor. In issuing his or her "determination", the
16claims adjudicator shall state whatever appeal rights the
17claimant or employer may have, including the ability to request
18waiver of any recoupment ordered and the standard for such
19waiver to be granted. Such decision may be appealed by the
20employing unit to a Referee within the time limits prescribed
21by Section 800 for appeal from a "determination". Any such
22appeal, and any appeal from the Referee's decision thereon,
23shall be governed by the applicable provisions of Sections 801,
24803, 804 and 805.
25(Source: P.A. 97-621, eff. 11-18-11; 98-1133, eff. 12-23-14.)



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1    (820 ILCS 405/900)  (from Ch. 48, par. 490)
2    Sec. 900. Recoupment.)
3    A. Whenever an individual has received any sum as benefits
4for which he is found to have been ineligible, the amount
5thereof may be recovered by suit in the name of the People of
6the State of Illinois, or, from benefits payable to him, may be
8        1. At any time, if, to receive such sum, he knowingly
9    made a false statement or knowingly failed to disclose a
10    material fact.
11        2. Within 3 years from any date prior to January 1,
12    1984, on which he has been found to have been ineligible
13    for any other reason, pursuant to a reconsidered finding or
14    a reconsidered determination, or pursuant to the decision
15    of a Referee (or of the Director or his representative
16    under Section 604) which modifies or sets aside a finding
17    or a reconsidered finding or a determination or a
18    reconsidered determination; or within 5 years from any date
19    after December 31, 1983, on which he has been found to have
20    been ineligible for any other reason, pursuant to a
21    reconsidered finding or a reconsidered determination, or
22    pursuant to the decision of a Referee (or of the Director
23    or his representative under Section 604) which modifies or
24    sets aside a finding or a reconsidered finding or a
25    determination or a reconsidered determination. Recoupment
26    pursuant to the provisions of this paragraph from benefits



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1    payable to an individual for any week may be waived upon
2    the individual's request, if the sum referred to in
3    paragraph A was received by the individual without fault on
4    his part and if such recoupment would be against equity and
5    good conscience. Such waiver may be denied with respect to
6    any subsequent week if, in that week, the facts and
7    circumstances upon which waiver was based no longer exist.
8    B. Whenever the claims adjudicator referred to in Section
9702 decides that any sum received by a claimant as benefits
10shall be recouped, or denies recoupment waiver requested by the
11claimant, he shall promptly notify the claimant of his decision
12and the reasons therefor. The decision and the notice thereof
13shall state the amount to be recouped, the weeks with respect
14to which such sum was received by the claimant, and the time
15within which it may be recouped and, as the case may be, the
16reasons for denial of recoupment waiver. The claims adjudicator
17may reconsider his decision within one year after the date when
18the decision was made. Such decision or reconsidered decision
19may be appealed to a Referee within the time limits prescribed
20by Section 800 for appeal from a determination. Any such
21appeal, and any appeal from the Referee's decision thereon,
22shall be governed by the applicable provisions of Sections 801,
23803, 804 and 805. No recoupment shall be begun until the
24expiration of the time limits prescribed by Section 800 of this
25Act or, if an appeal has been filed, until the decision of a
26Referee has been made thereon affirming the decision of the



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1Claims Adjudicator.
2    C. Any sums recovered under the provisions of this Section
3shall be treated as repayments to the Department of sums
4improperly obtained by the claimant.
5    D. Whenever, by reason of a back pay award made by any
6governmental agency or pursuant to arbitration proceedings, or
7by reason of a payment of wages wrongfully withheld by an
8employing unit, an individual has received wages for weeks with
9respect to which he has received benefits, the amount of such
10benefits may be recouped or otherwise recovered as herein
11provided. An employing unit making a back pay award to an
12individual for weeks with respect to which the individual has
13received benefits shall make the back pay award by check
14payable jointly to the individual and to the Department.
15    E. The amount recouped pursuant to paragraph 2 of
16subsection A from benefits payable to an individual for any
17week shall not exceed 25% of the individual's weekly benefit
19    In addition to the remedies provided by this Section, when
20an individual has, through his or her own fault, received any
21sum as benefits for which he is found to be ineligible, the
22Director may request the Comptroller to withhold such sum in
23accordance with Section 10.05 of the State Comptroller Act and
24the Director may request the Secretary of the Treasury to
25withhold such sum to the extent allowed by and in accordance
26with Section 6402(f) of the federal Internal Revenue Code of



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11986, as amended. Benefits paid pursuant to this Act shall not
2be subject to such withholding. Where the Director requests
3withholding by the Secretary of the Treasury pursuant to this
4Section, in addition to the amount of benefits for which the
5individual has been found ineligible, the individual shall be
6liable for any legally authorized administrative fee assessed
7by the Secretary, with such fee to be added to the amount to be
8withheld by the Secretary.
9(Source: P.A. 97-621, eff. 11-18-11; 97-791, eff. 1-1-13.)
10    (820 ILCS 405/1900)  (from Ch. 48, par. 640)
11    Sec. 1900. Disclosure of information.
12    A. Except as provided in this Section, information obtained
13from any individual or employing unit during the administration
14of this Act shall:
15        1. be confidential,
16        2. not be published or open to public inspection,
17        3. not be used in any court in any pending action or
18    proceeding,
19        4. not be admissible in evidence in any action or
20    proceeding other than one arising out of this Act.
21    B. No finding, determination, decision, ruling or order
22(including any finding of fact, statement or conclusion made
23therein) issued pursuant to this Act shall be admissible or
24used in evidence in any action other than one arising out of
25this Act, nor shall it be binding or conclusive except as



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1provided in this Act, nor shall it constitute res judicata,
2regardless of whether the actions were between the same or
3related parties or involved the same facts.
4    C. Any officer or employee of this State, any officer or
5employee of any entity authorized to obtain information
6pursuant to this Section, and any agent of this State or of
7such entity who, except with authority of the Director under
8this Section, shall disclose information shall be guilty of a
9business offense Class B misdemeanor and shall be disqualified
10from holding any appointment or employment by the State.
11    D. An individual or his duly authorized agent may be
12supplied with information from records only to the extent
13necessary for the proper presentation of his claim for benefits
14or with his existing or prospective rights to benefits.
15Discretion to disclose this information belongs solely to the
16Director and is not subject to a release or waiver by the
17individual. Notwithstanding any other provision to the
18contrary, an individual or his or her duly authorized agent may
19be supplied with a statement of the amount of benefits paid to
20the individual during the 18 months preceding the date of his
21or her request.
22    E. An employing unit may be furnished with information,
23only if deemed by the Director as necessary to enable it to
24fully discharge its obligations or safeguard its rights under
25the Act. Discretion to disclose this information belongs solely
26to the Director and is not subject to a release or waiver by



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1the employing unit.
2    F. The Director may furnish any information that he may
3deem proper to any public officer or public agency of this or
4any 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 Workers'
12Compensation Commission information regarding employers for
13the purpose of verifying the insurance coverage required under
14the Workers' Compensation Act and Workers' Occupational
15Diseases Act.
16    G. The Director may disclose information submitted by the
17State or any of its political subdivisions, municipal
18corporations, instrumentalities, or school or community
19college districts, except for information which specifically
20identifies an individual claimant.
21    H. The Director shall disclose only that information
22required to be disclosed under Section 303 of the Social
23Security 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 of



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1    the United States charged with the administration of public
2    works or assistance through public employment, the name,
3    address, ordinary occupation and employment status of each
4    recipient of unemployment compensation, and a statement of
5    such recipient's right to further compensation under such
6    law as required by Section 303(a)(7); and
7        3. records to make available to the Railroad Retirement
8    Board as required by Section 303(c)(1); and
9        4. information that will assure reasonable cooperation
10    with every agency of the United States charged with the
11    administration of any unemployment compensation law as
12    required by Section 303(c)(2); and
13        5. information upon request and on a reimbursable basis
14    to the United States Department of Agriculture and to any
15    State food stamp agency concerning any information
16    required to be furnished by Section 303(d); and
17        6. any wage information upon request and on a
18    reimbursable basis to any State or local child support
19    enforcement agency required by Section 303(e); and
20        7. any information required under the income
21    eligibility and verification system as required by Section
22    303(f); and
23        8. information that might be useful in locating an
24    absent parent or that parent's employer, establishing
25    paternity or establishing, modifying, or enforcing child
26    support orders for the purpose of a child support



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1    enforcement program under Title IV of the Social Security
2    Act upon the request of and on a reimbursable basis to the
3    public agency administering the Federal Parent Locator
4    Service as required by Section 303(h); and
5        9. information, upon request, to representatives of
6    any federal, State or local governmental public housing
7    agency with respect to individuals who have signed the
8    appropriate consent form approved by the Secretary of
9    Housing and Urban Development and who are applying for or
10    participating in any housing assistance program
11    administered by the United States Department of Housing and
12    Urban Development as required by Section 303(i).
13    I. The Director, upon the request of a public agency of
14Illinois, of the federal government or of any other state
15charged with the investigation or enforcement of Section 10-5
16of the Criminal Code of 2012 (or a similar federal law or
17similar law of another State), may furnish the public agency
18information regarding the individual specified in the request
19as to:
20        1. the current or most recent home address of the
21    individual, and
22        2. the names and addresses of the individual's
23    employers.
24    J. Nothing in this Section shall be deemed to interfere
25with the disclosure of certain records as provided for in
26Section 1706 or with the right to make available to the



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1Internal Revenue Service of the United States Department of the
2Treasury, or the Department of Revenue of the State of
3Illinois, information obtained under this Act.
4    K. The Department shall make available to the Illinois
5Student Assistance Commission, upon request, information in
6the possession of the Department that may be necessary or
7useful to the Commission in the collection of defaulted or
8delinquent student loans which the Commission administers.
9    L. The Department shall make available to the State
10Employees' Retirement System, the State Universities
11Retirement System, the Teachers' Retirement System of the State
12of Illinois, and the Department of Central Management Services,
13Risk Management Division, upon request, information in the
14possession of the Department that may be necessary or useful to
15the System or the Risk Management Division for the purpose of
16determining whether any recipient of a disability benefit from
17the System or a workers' compensation benefit from the Risk
18Management Division is gainfully employed.
19    M. This Section shall be applicable to the information
20obtained in the administration of the State employment service,
21except that the Director may publish or release general labor
22market information and may furnish information that he may deem
23proper to an individual, public officer or public agency of
24this or any other State or the federal government (in addition
25to those public officers or public agencies specified in this
26Section) as he prescribes by Rule.



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1    N. The Director may require such safeguards as he deems
2proper to insure that information disclosed pursuant to this
3Section is used only for the purposes set forth in this
5    O. Nothing in this Section prohibits communication with an
6individual or entity through unencrypted e-mail or other
7unencrypted electronic means as long as the communication does
8not contain the individual's or entity's name in combination
9with any one or more of the individual's or entity's social
10security number; driver's license or State identification
11number; credit or debit card number; or any required security
12code, access code, or password that would permit access to
13further information pertaining to the individual or entity.
14    P. (Blank).
15    P-1. With the express written consent of a claimant or
16employing unit and an agreement not to publicly disclose, the
17Director shall provide requested information related to a claim
18to a public officer or his or her agent.
19    Q. The Director shall make available to an elected federal
20official the name and address of an individual or entity that
21is located within the jurisdiction from which the official was
22elected and that, for the most recently completed calendar
23year, has reported to the Department as paying wages to
24workers, where the information will be used in connection with
25the official duties of the official and the official requests
26the information in writing, specifying the purposes for which



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1it will be used. For purposes of this subsection, the use of
2information in connection with the official duties of an
3official does not include use of the information in connection
4with the solicitation of contributions or expenditures, in
5money or in kind, to or on behalf of a candidate for public or
6political office or a political party or with respect to a
7public question, as defined in Section 1-3 of the Election
8Code, or in connection with any commercial solicitation. Any
9elected federal official who, in submitting a request for
10information covered by this subsection, knowingly makes a false
11statement or fails to disclose a material fact, with the intent
12to obtain the information for a purpose not authorized by this
13subsection, shall be guilty of a Class B misdemeanor.
14    R. The Director may provide to any State or local child
15support agency, upon request and on a reimbursable basis,
16information that might be useful in locating an absent parent
17or that parent's employer, establishing paternity, or
18establishing, modifying, or enforcing child support orders.
19    S. The Department shall make available to a State's
20Attorney of this State or a State's Attorney's investigator,
21upon request, the current address or, if the current address is
22unavailable, current employer information, if available, of a
23victim of a felony or a witness to a felony or a person against
24whom an arrest warrant is outstanding.
25    T. The Director shall make available to the Department of
26State Police, a county sheriff's office, or a municipal police



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1department, upon request, any information concerning the
2current address and place of employment or former places of
3employment of a person who is required to register as a sex
4offender under the Sex Offender Registration Act that may be
5useful in enforcing the registration provisions of that Act.
6    U. The Director shall make information available to the
7Department of Healthcare and Family Services and the Department
8of Human Services for the purpose of determining eligibility
9for public benefit programs authorized under the Illinois
10Public Aid Code and related statutes administered by those
11departments, for verifying sources and amounts of income, and
12for other purposes directly connected with the administration
13of those programs.
14    V. The Director shall make information available to the
15State Board of Elections as may be required by an agreement the
16State Board of Elections has entered into with a multi-state
17voter registration list maintenance system.
18    W. The Director shall make information available to the
19State Treasurer's office and the Department of Revenue for the
20purpose of facilitating compliance with the Illinois Secure
21Choice Savings Program Act, including employer contact
22information for employers with 25 or more employees and any
23other information the Director deems appropriate that is
24directly related to the administration of this program.
25    X. The Director shall make information available, upon
26request, to the Illinois Student Assistance Commission for the



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1purpose of determining eligibility for the adult vocational
2community college scholarship program under Section 65.105 of
3the Higher Education Student Assistance Act.
4    Y. Nothing in this Section prohibits disclosure of
5contracts entered into by the Department in accordance with the
6Illinois Procurement Code.
7(Source: P.A. 100-484, eff. 9-8-17; 101-315, eff. 1-1-20.)
8    (820 ILCS 405/2206.2 new)
9    Sec. 2206.2. Vendor contracts. Except as otherwise
10provided in the Illinois Procurement Code, all contracts for
11services, purchases, or sales by the Department not subject to
12public bid shall be made available on the Department's website
13within 14 days of execution of the contract. Any contract
14subject to publication under this Section shall also include a
15provision identifying an individual designated to act as
16community liaison for the purpose of responding to public
17inquiries regarding the contract. This Section shall apply
18regardless of the source of the funds with which the contracts
19are paid, including federal assistance moneys, unless
20otherwise prohibited by federal law.