102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3851

 

Introduced 2/22/2021, by Rep. Lindsey LaPointe

 

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

    Amends the Unemployment Insurance Act to provide that if an individual's benefit year begins on or after March 8, 2020, but before the week following the last week of a disaster period established by the gubernatorial disaster proclamations in response to COVID-19, recovery by suit in the name of the People of the State of Illinois or recoupment from benefits payable to an individual for any week shall be permanently waived if the sum was received by the individual without fault on his or her part. Provides that, in cases of such permanent waiver of recovery or recoupment, the Director of Employment Security may not request the Comptroller or the Secretary of the Treasury to withhold a sum of benefits for which an individual is found to be ineligible. Effective immediately.


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A BILL FOR

 

HB3851LRB102 10749 JLS 16078 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 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 is found to have been ineligible, the amount
10thereof may be recovered by suit in the name of the People of
11the State of Illinois, or, from benefits payable to him, may be
12recouped:
13        1. At any time, if, to receive such sum, he knowingly
14    made a false statement or knowingly failed to disclose a
15    material fact.
16        2. Within 3 years from any date prior to January 1,
17    1984, on which he has been found to have been ineligible
18    for any other reason, pursuant to a reconsidered finding
19    or a reconsidered determination, or pursuant to the
20    decision of a Referee (or of the Director or his
21    representative under Section 604) which modifies or sets
22    aside a finding or a reconsidered finding or a
23    determination or a reconsidered determination; or within 5

 

 

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1    years from any date after December 31, 1983, on which he
2    has been found to have been ineligible for any other
3    reason, pursuant to a reconsidered finding or a
4    reconsidered determination, or pursuant to the decision of
5    a Referee (or of the Director or his representative under
6    Section 604) which modifies or sets aside a finding or a
7    reconsidered finding or a determination or a reconsidered
8    determination. Recoupment pursuant to the provisions of
9    this paragraph from benefits payable to an individual for
10    any week may be waived upon the individual's request, if
11    the sum referred to in paragraph A was received by the
12    individual without fault on his part and if such
13    recoupment would be against equity and good conscience.
14    Such waiver may be denied with respect to any subsequent
15    week if, in that week, the facts and circumstances upon
16    which waiver was based no longer exist.
17        3. Notwithstanding paragraph 2, if the individual's
18    benefit year begins on or after March 8, 2020, but prior to
19    the week following the last week of a disaster period
20    established by the gubernatorial disaster proclamation in
21    response to COVID-19, dated March 9, 2020, and any
22    subsequent gubernatorial disaster proclamation in response
23    to COVID-19, recovery by suit in the name of the People of
24    the State of Illinois or recoupment pursuant to paragraph
25    2 from benefits payable to an individual for any week
26    shall be permanently waived if the sum referred to in

 

 

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1    subsection A was received by the individual without fault
2    on his or her part and if such recoupment or recovery would
3    be against equity and good conscience.
4    B. Whenever the claims adjudicator referred to in Section
5702 decides that any sum received by a claimant as benefits
6shall be recouped, or denies recoupment waiver requested by
7the claimant, he shall promptly notify the claimant of his
8decision and the reasons therefor. The decision and the notice
9thereof shall state the amount to be recouped, the weeks with
10respect to which such sum was received by the claimant, and the
11time within which it may be recouped and, as the case may be,
12the reasons for denial of recoupment waiver. The claims
13adjudicator may reconsider his decision within one year after
14the date when the decision was made. Such decision or
15reconsidered decision may be appealed to a Referee within the
16time limits prescribed by Section 800 for appeal from a
17determination. Any such appeal, and any appeal from the
18Referee's decision thereon, shall be governed by the
19applicable provisions of Sections 801, 803, 804 and 805. No
20recoupment shall be begun until the expiration of the time
21limits prescribed by Section 800 of this Act or, if an appeal
22has been filed, until the decision of a Referee has been made
23thereon affirming the decision of the Claims Adjudicator.
24    C. Any sums recovered under the provisions of this Section
25shall be treated as repayments to the Department of sums
26improperly obtained by the claimant.

 

 

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1    D. Whenever, by reason of a back pay award made by any
2governmental agency or pursuant to arbitration proceedings, or
3by reason of a payment of wages wrongfully withheld by an
4employing unit, an individual has received wages for weeks
5with respect to which he has received benefits, the amount of
6such benefits may be recouped or otherwise recovered as herein
7provided. An employing unit making a back pay award to an
8individual for weeks with respect to which the individual has
9received benefits shall make the back pay award by check
10payable jointly to the individual and to the Department.
11    E. The amount recouped pursuant to paragraph 2 of
12subsection A from benefits payable to an individual for any
13week shall not exceed 25% of the individual's weekly benefit
14amount.
15    Except in the case of permanent waiver of recovery or
16recoupment as provided in paragraph 3 of subsection A, in In
17addition to the remedies provided by this Section, when an
18individual has received any sum as benefits for which he is
19found to be ineligible, the Director may request the
20Comptroller to withhold such sum in accordance with Section
2110.05 of the State Comptroller Act and the Director may
22request the Secretary of the Treasury to withhold such sum to
23the extent allowed by and in accordance with Section 6402(f)
24of the federal Internal Revenue Code of 1986, as amended.
25Benefits paid pursuant to this Act shall not be subject to such
26withholding. Where the Director requests withholding by the

 

 

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1Secretary of the Treasury pursuant to this Section, in
2addition to the amount of benefits for which the individual
3has been found ineligible, the individual shall be liable for
4any legally authorized administrative fee assessed by the
5Secretary, with such fee to be added to the amount to be
6withheld by the Secretary.
7(Source: P.A. 97-621, eff. 11-18-11; 97-791, eff. 1-1-13.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.