State of Illinois
90th General Assembly
Legislation

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90_HB0614ham002

                                           LRB9000328WHmgam03
 1                     AMENDMENT TO HOUSE BILL 614
 2        AMENDMENT NO.     .  Amend House Bill  614  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
                            -2-            LRB9000328WHmgam03
 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.
                            -3-            LRB9000328WHmgam03
 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
                            -4-            LRB9000328WHmgam03
 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
                            -5-            LRB9000328WHmgam03
 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
                            -6-            LRB9000328WHmgam03
 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
                            -7-            LRB9000328WHmgam03
 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    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 by certified
                            -8-            LRB9000328WHmgam03
 1    mail  that  it  has  failed  to  report an individual, and it
 2    knowingly fails, without  reasonable  cause,  to  supply  the
 3    required  information  to the Department within 21 days after
 4    the date  of  mailing  of  the  notice.  Any  individual  who
 5    knowingly  conspires  with  the newly hired employee to cause
 6    the employer to fail to report the  information  required  by
 7    this  Section or who knowingly conspires with the newly hired
 8    employee to cause the employer to file a false or  incomplete
 9    report  shall  be guilty of a Class B misdemeanor with a fine
10    not to exceed $500 with respect to each  employee  with  whom
11    the individual so 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.
                            -9-            LRB9000328WHmgam03
 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,
                            -10-           LRB9000328WHmgam03
 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
                            -11-           LRB9000328WHmgam03
 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
                            -12-           LRB9000328WHmgam03
 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
                            -13-           LRB9000328WHmgam03
 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
                            -14-           LRB9000328WHmgam03
 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.".

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