Illinois General Assembly - Full Text of HB4127
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Full Text of HB4127  102nd General Assembly

HB4127 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4127

 

Introduced 9/3/2021, by Rep. Lindsey LaPointe, Kelly M. Cassidy, Sam Yingling, Deb Conroy, Jennifer Gong-Gershowitz, et al.

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 405/900  from Ch. 48, par. 490

    Amends the Unemployment Insurance Act. In a provision concerning the recoupment of any overpayment made to an individual who is found to have been ineligible for benefits, provides that the individual must be provided written notice of his or her appeal rights including the ability to request waiver of any recovery. Provides that if the Department of Employment Security has previously recouped or recovered overpayment funds from an individual and that individual is granted waiver with respect to those funds, then the individual shall be refunded those funds.


LRB102 19288 KTG 28054 b

 

 

A BILL FOR

 

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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 Section 900 as follows:
 
6    (820 ILCS 405/900)  (from Ch. 48, par. 490)
7    Sec. 900. Recoupment.)
8    A. Whenever an individual has received any sum as benefits
9for which he or she is found to have been ineligible, the
10individual must be provided written notice of his or her
11appeal rights, including the ability to request waiver of any
12recovery or recoupment ordered and the standard for such
13waiver to be granted. Thereafter, the amount thereof may be
14recovered by suit in the name of the People of the State of
15Illinois, or, from benefits payable to him, may be recouped:
16        1. At any time, if, to receive such sum, he knowingly
17    made a false statement or knowingly failed to disclose a
18    material fact.
19        2. Within 3 years from any date prior to January 1,
20    1984, on which he has been found to have been ineligible
21    for any other reason, pursuant to a reconsidered finding
22    or a reconsidered determination, or pursuant to the
23    decision of a Referee (or of the Director or his

 

 

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1    representative under Section 604) which modifies or sets
2    aside a finding or a reconsidered finding or a
3    determination or a reconsidered determination; or within 5
4    years from any date after December 31, 1983, on which he
5    has been found to have been ineligible for any other
6    reason, pursuant to a reconsidered finding or a
7    reconsidered determination, or pursuant to the decision of
8    a Referee (or of the Director or his representative under
9    Section 604) which modifies or sets aside a finding or a
10    reconsidered finding or a determination or a reconsidered
11    determination. Recoupment pursuant to the provisions of
12    this paragraph from benefits payable to an individual for
13    any week may be waived upon the individual's request, if
14    the sum referred to in paragraph A was received by the
15    individual without fault on his part and if such
16    recoupment would be against equity and good conscience.
17    Such waiver may be denied with respect to any subsequent
18    week if, in that week, the facts and circumstances upon
19    which waiver was based no longer exist.
20    Recovery by suit in the name of the People of the State of
21Illinois, recoupment pursuant to paragraph 2 of this
22subsection A from benefits payable to an individual for any
23week, and, notwithstanding any provision to the contrary in
24the Illinois State Collection Act of 1986, withholding
25pursuant to subsection E shall be permanently waived if the
26sum referred to in this subsection A was received by the

 

 

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1individual without fault on his or her part and if such
2recoupment would be against equity and good conscience, and
3the sum referred to in this subsection A was received by the
4individual on or after March 8, 2020, but prior to the last day
5of a disaster period established by the gubernatorial disaster
6proclamation in response to COVID-19, dated March 9, 2020, and
7any consecutive gubernatorial disaster proclamation in
8response to COVID-19. If the Department has previously
9recouped or recovered overpayment funds from an individual and
10that individual is granted a waiver under this Section with
11respect to those funds, then that individual shall be refunded
12those funds. To be eligible for permanent waiver under this
13paragraph, an individual must request a waiver pursuant to
14this paragraph within 45 days of the mailing date of the notice
15from the Department that the individual may request a waiver.
16A determination under this paragraph may be appealed to a
17Referee within the time limits prescribed by Section 800 for
18an appeal from a determination. Any such appeal, and any
19appeal from the Referee's decision thereon, shall be governed
20by the applicable provisions of Sections 801, 803, 804, and
21805. This paragraph shall not apply with respect to benefits
22that are received pursuant to any program that the Department
23administers as an agent of the federal government and for
24which the individual is found to have been ineligible, unless
25otherwise allowed by the federal government.
26    B. Whenever the claims adjudicator referred to in Section

 

 

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1702 decides that any sum received by a claimant as benefits
2shall be recouped, or denies recoupment waiver requested by
3the claimant, he shall promptly notify the claimant of his
4decision and the reasons therefor. The decision and the notice
5thereof shall state the amount to be recouped, the weeks with
6respect to which such sum was received by the claimant, and the
7time within which it may be recouped and, as the case may be,
8the reasons for denial of recoupment waiver. The claims
9adjudicator may reconsider his decision within one year after
10the date when the decision was made. Such decision or
11reconsidered decision may be appealed to a Referee within the
12time limits prescribed by Section 800 for appeal from a
13determination. Any such appeal, and any appeal from the
14Referee's decision thereon, shall be governed by the
15applicable provisions of Sections 801, 803, 804 and 805. No
16recoupment shall be begun until the expiration of the time
17limits prescribed by Section 800 of this Act or, if an appeal
18has been filed, until the decision of a Referee has been made
19thereon affirming the decision of the Claims Adjudicator.
20    C. Any sums recovered under the provisions of this Section
21shall be treated as repayments to the Department of sums
22improperly obtained by the claimant.
23    D. Whenever, by reason of a back pay award made by any
24governmental agency or pursuant to arbitration proceedings, or
25by reason of a payment of wages wrongfully withheld by an
26employing unit, an individual has received wages for weeks

 

 

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1with respect to which he has received benefits, the amount of
2such benefits may be recouped or otherwise recovered as herein
3provided. An employing unit making a back pay award to an
4individual for weeks with respect to which the individual has
5received benefits shall make the back pay award by check
6payable jointly to the individual and to the Department.
7    E. The amount recouped pursuant to paragraph 2 of
8subsection A from benefits payable to an individual for any
9week shall not exceed 25% of the individual's weekly benefit
10amount.
11    In addition to the remedies provided by this Section, when
12an individual has received any sum as benefits for which he is
13found to be ineligible, the Director may request the
14Comptroller to withhold such sum in accordance with Section
1510.05 of the State Comptroller Act and the Director may
16request the Secretary of the Treasury to withhold such sum to
17the extent allowed by and in accordance with Section 6402(f)
18of the federal Internal Revenue Code of 1986, as amended.
19Benefits paid pursuant to this Act shall not be subject to such
20withholding. Where the Director requests withholding by the
21Secretary of the Treasury pursuant to this Section, in
22addition to the amount of benefits for which the individual
23has been found ineligible, the individual shall be liable for
24any legally authorized administrative fee assessed by the
25Secretary, with such fee to be added to the amount to be
26withheld by the Secretary.

 

 

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1(Source: P.A. 102-26, eff. 6-25-21.)