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90_HB1337enr
New Act
305 ILCS 5/10-16.2 from Ch. 23, par. 10-16.2
750 ILCS 5/706.1 from Ch. 40, par. 706.1
750 ILCS 15/4.1 from Ch. 40, par. 1107.1
750 ILCS 20/26.1 from Ch. 40, par. 1226.1
750 ILCS 45/20 from Ch. 40, par. 2520
Creates the New Hire Reporting Act. Requires employers
to report newly hired employees to the Department of
Employment Security, and requires that Department to maintain
a database of reported information and share that information
with the Departments of Public Aid and Human Services,
circuit clerks, and federal offices for purposes of enabling
them to perform their duties concerning collection of child
support. Provides penalties for failure to comply with
reporting requirements. Requires the Department of Public
Aid to establish a community advisory committee to oversee
implementation of the Act and to take other actions. Amends
the income withholding provisions of the Public Aid Code, the
Marriage and Dissolution of Marriage Act, the Non-Support of
Spouse and Children Act, the Revised Uniform Reciprocal
Enforcement of Support Act, and the Parentage Act of 1984.
Provides for orders for withholding to be served by regular
or certified mail or facsimile (now, by certified mail or
personal delivery). Requires a payor's nonperformance within
specified time periods to be documented by certified mail
return receipt. Provides that an order for withholding need
not be served again on a payor if income withholding is
terminated because of an interruption in the obligor's
employment of less than 180 days. Effective immediately.
LRB9004559DJbd
HB1337 Enrolled LRB9004559DJbd
1 AN ACT to amend the Unemployment Insurance Act by
2 changing Sections 1300 and 1900 and adding Section 1801.1.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Unemployment Insurance Act is amended by
6 changing Sections 1300 and 1900 and adding Section 1801.1 as
7 follows:
8 (820 ILCS 405/1300) (from Ch. 48, par. 540)
9 Sec. 1300. Waiver or transfer of benefit rights -
10 Partial exemption.
11 (A) Except as otherwise provided herein any agreement by
12 an individual to waive, release or commute his rights under
13 this Act shall be void.
14 (B) Benefits due under this Act shall not be assigned,
15 pledged, encumbered, released or commuted and shall be exempt
16 from all claims of creditors and from levy, execution and
17 attachment or other remedy for recovery or collection of a
18 debt. However, nothing in this Section shall prohibit a
19 specified or agreed upon deduction from benefits by an
20 individual, or a court or administrative order for
21 withholding of income, for payment of past due child support
22 from being enforced and collected by the Department of Public
23 Aid on behalf of persons receiving a grant of financial aid
24 under Article IV of The Illinois Public Aid Code, persons for
25 whom an application has been made and approved for support
26 services under Section 10-1 of such Code, or persons
27 similarly situated and receiving like support services in
28 other states. It is provided that:
29 (1) The aforementioned deduction of benefits and
30 order for withholding of income apply only if appropriate
31 arrangements have been made for reimbursement to the
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1 Director by the Department of Public Aid for any
2 administrative costs incurred by the Director under this
3 Section.
4 (2) The Director shall deduct and withhold from
5 benefits payable under this Act, or under any arrangement
6 for the payment of benefits entered into by the Director
7 pursuant to the powers granted under Section 2700 of this
8 Act, the amount specified or agreed upon. In the case of
9 a court or administrative order for withholding of
10 income, the Director shall withhold the amount of the
11 order.
12 (3) Any amount deducted and withheld by the
13 Director shall be paid to the Department of Public Aid on
14 behalf of the individual.
15 (4) Any amount deducted and withheld under
16 subsection (3) shall for all purposes be treated as if it
17 were paid to the individual as benefits and paid by such
18 individual to the Department of Public Aid in
19 satisfaction of the individual's child support
20 obligations.
21 (5) For the purpose of this Section, child support
22 is defined as those obligations which are being enforced
23 pursuant to a plan described in Title IV, Part D, Section
24 454 of the Social Security Act and approved by the
25 Secretary of Health and Human Services.
26 (6) The deduction of benefits and order for
27 withholding of income for child support shall be governed
28 by Titles III and IV of the Social Security Act and all
29 regulations duly promulgated thereunder.
30 (C) Nothing in this Section prohibits an individual from
31 voluntarily electing to have federal income tax deducted and
32 withheld from his or her unemployment insurance benefit
33 payments.
34 (1) The Director shall, at the time that an
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1 individual files his or her claim for benefits that
2 establishes his or her benefit year, inform the
3 individual that:
4 (a) unemployment insurance is subject to
5 federal, State, and local income taxes;
6 (b) requirements exist pertaining to estimated
7 tax payments;
8 (c) the individual may elect to have federal
9 income tax deducted and withheld from his or her
10 payments of unemployment insurance in the amount
11 specified in the federal Internal Revenue Code; and
12 (d) the individual is permitted to change a
13 previously elected withholding status no more than
14 once each calendar year.
15 (2) Amounts deducted and withheld from unemployment
16 insurance shall remain in the unemployment fund until
17 transferred to the federal taxing authority as a payment
18 of income tax.
19 (3) The Director shall follow all procedures
20 specified by the United States Department of Labor and
21 the federal Internal Revenue Service pertaining to the
22 deducting and withholding of income tax.
23 (4) Amounts shall be deducted and withheld in
24 accordance with the priorities established in rules
25 promulgated by the Director.
26 (D) Nothing in this Section prohibits an individual from
27 voluntarily electing to have State of Illinois income tax
28 deducted and withheld from his or her unemployment insurance
29 benefit payments if such deduction and withholding is
30 provided for pursuant to rules promulgated by the Director.
31 (1) If pursuant to rules promulgated by the
32 Director, an individual may voluntarily elect to have
33 State of Illinois income tax deducted and withheld from
34 his or her unemployment insurance benefit payments, the
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1 Director shall, at the time that an individual files his
2 or her claim for benefits that establishes his or her
3 benefit year, in addition to providing the notice
4 required under subsection C, inform the individual that:
5 (a) the individual may elect to have State of
6 Illinois income tax deducted and withheld from his
7 or her payments of unemployment insurance in the
8 amount specified pursuant to rules promulgated by
9 the Director; and
10 (b) the individual is permitted to change a
11 previously elected withholding status no more than
12 once each calendar year.
13 (2) Amounts deducted and withheld from unemployment
14 insurance shall remain in the unemployment fund until
15 transferred to the Department of Revenue as a payment of
16 State of Illinois income tax.
17 (3) Amounts shall be deducted and withheld in
18 accordance with the priorities established in rules
19 promulgated by the Director.
20 (E) Nothing in this Section prohibits the deduction and
21 withholding of an uncollected overissuance of food stamp
22 coupons from unemployment insurance benefits pursuant to this
23 subsection (E).
24 (1) At the time that an individual files a claim
25 for benefits that establishes his or her benefit year,
26 that individual must disclose whether or not he or she
27 owes an uncollected overissuance (as defined in Section
28 13(c)(1) of the federal Food Stamp Act of 1977) of food
29 stamp coupons. The Director shall notify the State food
30 stamp agency enforcing such obligation of any individual
31 who discloses that he or she owes an uncollected
32 overissuance of food stamp coupons and who meets the
33 monetary eligibility requirements of subsection E of
34 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
4 coupons:
5 (a) the amount specified by the individual to
6 the Director to be deducted and withheld under this
7 subsection (E);
8 (b) the amount (if any) determined pursuant to
9 an agreement submitted to the State food stamp
10 agency under Section 13(c)(3)(A) of the federal Food
11 Stamp Act of 1977; or
12 (c) any amount otherwise required to be
13 deducted and withheld from unemployment insurance
14 benefits pursuant to Section 13(c)(3)(B) of the
15 federal Food Stamp Act of 1977.
16 (3) Any amount deducted and withheld pursuant to
17 this subsection (E) shall be paid by the Director to the
18 State food stamp agency.
19 (4) Any amount deducted and withheld pursuant to
20 this subsection (E) shall for all purposes be treated as
21 if it were paid to the individual as unemployment
22 insurance benefits and paid by the individual to the
23 State food stamp agency as repayment of the individual's
24 uncollected overissuance of food stamp coupons.
25 (5) For purposes of this subsection (E),
26 "unemployment insurance benefits" means any compensation
27 payable under this Act including amounts payable by the
28 Director pursuant to an agreement under any federal law
29 providing for compensation, assistance, or allowances
30 with respect to unemployment.
31 (6) This subsection (E) applies only if
32 arrangements have been made for reimbursement by the
33 State food stamp agency for the administrative costs
34 incurred by the Director under this subsection (E) which
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1 are attributable to the repayment of uncollected
2 overissuances of food stamp coupons to the State food
3 stamp agency.
4 (Source: P.A. 89-446, eff. 1-1-97.)
5 (820 ILCS 405/1801.1 new)
6 Sec. 1801.1. Directory of New Hires.
7 A. The Director shall establish and operate an automated
8 directory of newly hired employees which shall be known as
9 the "Illinois Directory of New Hires" which shall contain the
10 information required to be reported by employers to the
11 Department under subsection B. In the administration of the
12 Directory, the Director shall comply with any requirements
13 concerning the Employer New Hire Reporting Program
14 established by the federal Personal Responsibility and Work
15 Opportunity Reconciliation Act of 1996. The Director is
16 authorized to use the information contained in the Directory
17 of New Hires to administer any of the provisions of this Act.
18 B. On and after October 1, 1997, each employer in
19 Illinois, except a department, agency, or instrumentality of
20 the United States, shall file with the Department a report in
21 accordance with rules adopted by the Department (but in any
22 event not later than 20 days after the date the employer
23 hires the employee or, in, the case of an employer
24 transmitting reports magnetically or electronically, by 2
25 monthly transmissions, if necessary, not less than 12 days
26 nor more than 16 days apart) providing the following
27 information concerning each newly hired employee: the
28 employee's name, address, and social security number, and the
29 employer's name, address, Federal Employer Identification
30 Number assigned under Section 6109 of the Internal Revenue
31 Code of 1986, and such other information as may be required
32 by federal law or regulation, provided that each employer may
33 voluntarily file the date of new hire, and the address to
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1 which the employer wants income withholding orders to be
2 mailed, if it is different from the address given on the
3 Federal Employer Identification Number. An employer in
4 Illinois which transmits its reports electronically or
5 magnetically and which also has employees in another state
6 may report all newly hired employees to a single designated
7 state in which the employer has employees if it has so
8 notified the Secretary of the United States Department of
9 Health and Human Services in writing. An employer may, at its
10 option, submit information regarding any rehired employee in
11 the same manner as information is submitted regarding a newly
12 hired employee. Each report required under this subsection
13 shall be made on an Internal Revenue Service Form W-4 or, at
14 the option of the employer, an equivalent form, and may be
15 transmitted by first class mail, by telefax, magnetically, or
16 electronically.
17 C. An employer which knowingly fails to comply with the
18 reporting requirements established by this Section shall be
19 subject to a civil penalty of $15 for each individual whom it
20 fails to report. An employer shall be considered to have
21 knowingly failed to comply with the reporting requirements
22 established by this Section with respect to an individual if
23 the employer has been notified by the Department that it has
24 failed to report an individual, and it fails, without
25 reasonable cause, to supply the required information to the
26 Department within 21 days after the date of mailing of the
27 notice. Any individual who knowingly conspires with the newly
28 hired employee to cause the employer to fail to report the
29 information required by this Section or who knowingly
30 conspires with the newly hired employee to cause the employer
31 to file a false or incomplete report shall be guilty of a
32 Class B misdemeanor with a fine not to exceed $500 with
33 respect to each employee with whom the individual so
34 conspires.
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1 D. As used in this Section, "newly hired employee" means
2 an individual who is an employee within the meaning of
3 Chapter 24 of the Internal Revenue Code of 1986, and whose
4 reporting to work which results in earnings from the employer
5 is the first instance within the preceding 180 days that the
6 individual has reported for work for which earnings were
7 received from that employer; however, "newly hired employee"
8 does not include an employee of a federal or State agency
9 performing intelligence or counterintelligence functions, if
10 the head of that agency has determined that the filing of the
11 report required by this Section with respect to the employee
12 could endanger the safety of the employee or compromise an
13 ongoing investigation or intelligence mission.
14 Notwithstanding Section 205, and for the purposes of this
15 Section only, the term "employer" has the meaning given by
16 Section 3401(d) of the Internal Revenue Code of 1986 and
17 includes any governmental entity and labor organization as
18 defined by Section 2(5) of the National Labor Relations Act,
19 and includes any entity (also known as a hiring hall) which
20 is used by the organization and an employer to carry out the
21 requirements described in Section 8(f)(3) of that Act of an
22 agreement between the organization and the employer.
23 (820 ILCS 405/1900) (from Ch. 48, par. 640)
24 Sec. 1900. Disclosure of information.
25 A. Except as provided in this Section, information
26 obtained from any individual or employing unit during the
27 administration of this Act shall:
28 1. be confidential,
29 2. not be published or open to public inspection,
30 3. not be used in any court in any pending action
31 or proceeding,
32 4. not be admissible in evidence in any action or
33 proceeding other than one arising out of this Act.
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1 B. No finding, determination, decision, ruling or order
2 (including any finding of fact, statement or conclusion made
3 therein) issued pursuant to this Act shall be admissible or
4 used in evidence in any action other than one arising out of
5 this Act, nor shall it be binding or conclusive except as
6 provided in this Act, nor shall it constitute res judicata,
7 regardless of whether the actions were between the same or
8 related parties or involved the same facts.
9 C. Any officer or employee of this State, any officer or
10 employee of any entity authorized to obtain information
11 pursuant to this Section, and any agent of this State or of
12 such entity who, except with authority of the Director under
13 this Section, shall disclose information shall be guilty of a
14 Class B misdemeanor and shall be disqualified from holding
15 any appointment or employment by the State.
16 D. An individual or his duly authorized agent may be
17 supplied with information from records only to the extent
18 necessary for the proper presentation of his claim for
19 benefits or with his existing or prospective rights to
20 benefits. Discretion to disclose this information belongs
21 solely to the Director and is not subject to a release or
22 waiver by the individual.
23 E. An employing unit may be furnished with information,
24 only if deemed by the Director as necessary to enable it to
25 fully discharge its obligations or safeguard its rights under
26 the Act. Discretion to disclose this information belongs
27 solely to the Director and is not subject to a release or
28 waiver by the employing unit.
29 F. The Director may furnish any information that he may
30 deem proper to any public officer or public agency of this or
31 any other State or of the federal government dealing with:
32 1. the administration of relief,
33 2. public assistance,
34 3. unemployment compensation,
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1 4. a system of public employment offices,
2 5. wages and hours of employment, or
3 6. a public works program.
4 The Director may make available to the Illinois
5 Industrial Commission information regarding employers for the
6 purpose of verifying the insurance coverage required under
7 the Workers' Compensation Act and Workers' Occupational
8 Diseases Act.
9 G. The Director may disclose information submitted by
10 the State or any of its political subdivisions, municipal
11 corporations, instrumentalities, or school or community
12 college districts, except for information which specifically
13 identifies an individual claimant.
14 H. The Director shall disclose only that information
15 required to be disclosed under Section 303 of the Social
16 Security Act, as amended, including:
17 1. any information required to be given the United
18 States Department of Labor under Section 303(a)(6); and
19 2. the making available upon request to any agency
20 of the United States charged with the administration of
21 public works or assistance through public employment, the
22 name, address, ordinary occupation and employment status
23 of each recipient of unemployment compensation, and a
24 statement of such recipient's right to further
25 compensation under such law as required by Section
26 303(a)(7); and
27 3. records to make available to the Railroad
28 Retirement Board as required by Section 303(c)(1); and
29 4. information that will assure reasonable
30 cooperation with every agency of the United States
31 charged with the administration of any unemployment
32 compensation law as required by Section 303(c)(2); and
33 5. information upon request and on a reimbursable
34 basis to the United States Department of Agriculture and
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1 to any State food stamp agency concerning any information
2 required to be furnished by Section 303(d); and
3 6. any wage information upon request and on a
4 reimbursable basis to any State or local child support
5 enforcement agency required by Section 303(e); and
6 7. any information required under the income
7 eligibility and verification system as required by
8 Section 303(f); and
9 8. information that might be useful in locating an
10 absent parent or that parent's employer, establishing
11 paternity or establishing, modifying, or enforcing child
12 support orders for the purpose of a child support
13 enforcement program under Title IV of the Social Security
14 Act upon the request of and on a reimbursable basis to
15 the public agency administering the Federal Parent
16 Locator Service as required by Section 303(h); and
17 9. information, upon request, to representatives of
18 any federal, State or local governmental public housing
19 agency with respect to individuals who have signed the
20 appropriate consent form approved by the Secretary of
21 Housing and Urban Development and who are applying for or
22 participating in any housing assistance program
23 administered by the United States Department of Housing
24 and Urban Development as required by Section 303(i).
25 I. The Director, upon the request of a public agency of
26 Illinois, of the federal government or of any other state
27 charged with the investigation or enforcement of Section 10-5
28 of the Criminal Code of 1961 (or a similar federal law or
29 similar law of another State), may furnish the public agency
30 information regarding the individual specified in the request
31 as to:
32 1. the current or most recent home address of the
33 individual, and
34 2. the names and addresses of the individual's
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1 employers.
2 J. Nothing in this Section shall be deemed to interfere
3 with the disclosure of certain records as provided for in
4 Section 1706 or with the right to make available to the
5 Internal Revenue Service of the United States Department of
6 the Treasury, or the Department of Revenue of the State of
7 Illinois, information obtained under this Act.
8 K. The Department shall make available to the State
9 Scholarship Commission, upon request that it may be necessary
10 or useful to the Commission in the collection of defaulted or
11 delinquent student loans which the Commission administers,
12 information limited to the names and addresses of a
13 borrower's employers.
14 L. The Department shall make available to the State
15 Employees' Retirement System, the State Universities
16 Retirement System, and the Teachers' Retirement System of the
17 State of Illinois, upon request, information in the
18 possession of the Department that may be necessary or useful
19 to the System for the purpose of determining whether any
20 recipient of a disability benefit from the System is
21 gainfully employed.
22 M. This Section shall be applicable to the information
23 obtained in the administration of the State employment
24 service, except that the Director may publish or release
25 general labor market information and may furnish information
26 that he may deem proper to an individual, public officer or
27 public agency of this or any other State or the federal
28 government (in addition to those public officers or public
29 agencies specified in this Section) as he prescribes by Rule.
30 N. The Director may require such safeguards as he deems
31 proper to insure that information disclosed pursuant to this
32 Section is used only for the purposes set forth in this
33 Section.
34 O. (Blank).
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1 P. Within 30 days after the effective date of this
2 amendatory Act of 1993 and annually thereafter, the
3 Department shall provide to the Department of Financial
4 Institutions a list of individuals or entities that, for the
5 most recently completed calendar year, report to the
6 Department as paying wages to workers. The lists shall be
7 deemed confidential and may not be disclosed to any other
8 person.
9 Q. The Director shall make available to an elected
10 federal official the name and address of an individual or
11 entity that is located within the jurisdiction from which the
12 official was elected and that, for the most recently
13 completed calendar year, has reported to the Department as
14 paying wages to workers, where the information will be used
15 in connection with the official duties of the official and
16 the official requests the information in writing, specifying
17 the purposes for which it will be used. For purposes of this
18 subsection, the use of information in connection with the
19 official duties of an official does not include use of the
20 information in connection with the solicitation of
21 contributions or expenditures, in money or in kind, to or on
22 behalf of a candidate for public or political office or a
23 political party or with respect to a public question, as
24 defined in Section 1-3 of the Election Code, or in connection
25 with any commercial solicitation. Any elected federal
26 official who, in submitting a request for information covered
27 by this subsection, knowingly makes a false statement or
28 fails to disclose a material fact, with the intent to obtain
29 the information for a purpose not authorized by this
30 subsection, shall be guilty of a Class B misdemeanor.
31 R. The Director may provide to any State or local child
32 support agency, upon request and on a reimbursable basis,
33 information that might be useful in locating an absent parent
34 or that parent's employer, establishing paternity, or
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1 establishing, modifying, or enforcing child support orders.
2 (Source: P.A. 88-435; 89-446, eff. 2-8-96; 89-493, eff.
3 1-1-97.)
4 Section 99. Effective date. This Act takes effect upon
5 becoming law.