103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5260

 

Introduced 2/9/2024, by Rep. Hoan Huynh

 

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

    Amends the Unemployment Insurance Act. In provisions concerning the recoupment of benefits granted to an ineligible individual, provides that an applicant for a waiver shall be rebuttably presumed to be eligible for the waiver unless the Department of Employment Security can show by clear and convincing evidence that the applicant does not meet one or more of the required criteria. Provides that an applicant for the waiver whose application was denied prior to the effective date of the amendatory Act may reapply for a waiver and shall be rebuttably presumed to be eligible for the waiver unless the Department can show by clear and convincing evidence that the applicant does not meet one or more of the required criteria. Provides that the Department shall mail a notice to every applicant for a waiver who was denied prior to the effective date of the amendatory Act to inform them that they may reapply for a waiver as provided in the provisions.


LRB103 38151 SPS 68284 b

 

 

A BILL FOR

 

HB5260LRB103 38151 SPS 68284 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 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
12recoupment ordered and the standard for such waiver to be
13granted. Thereafter, the amount thereof may be recovered by
14suit in the name of the People of the State of Illinois, or,
15from 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. To be eligible for permanent waiver
9under this paragraph, an individual must request a waiver
10pursuant to this paragraph within 45 days of the mailing date
11of the notice from the Department that the individual may
12request a waiver. An applicant for a waiver shall be
13rebuttably presumed to be eligible for the waiver unless the
14Department can show by clear and convincing evidence that the
15applicant does not meet one or more of the required criteria.
16An applicant for the waiver whose application was denied prior
17to the effective date of this amendatory Act of the 103rd
18General Assembly may reapply for a waiver and shall be
19rebuttably presumed to be eligible for the waiver unless the
20Department can show by clear and convincing evidence that the
21applicant does not meet one or more of the required criteria.
22The Department shall mail a notice to every applicant for a
23waiver who was denied prior to the effective date of this
24amendatory Act of the 103rd General Assembly to inform them
25that they may reapply for a waiver as provided in this
26subsection. A determination under this paragraph may be

 

 

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1appealed to a Referee within the time limits prescribed by
2Section 800 for an appeal from a determination. Any such
3appeal, and any appeal from the Referee's decision thereon,
4shall be governed by the applicable provisions of Sections
5801, 803, 804, and 805. This paragraph shall not apply with
6respect to benefits that are received pursuant to any program
7that the Department administers as an agent of the federal
8government and for which the individual is found to have been
9ineligible.
10    B. Whenever the claims adjudicator referred to in Section
11702 decides that any sum received by a claimant as benefits
12shall be recouped, or denies recoupment waiver requested by
13the claimant, he shall promptly notify the claimant of his
14decision and the reasons therefor. The decision and the notice
15thereof shall state the amount to be recouped, the weeks with
16respect to which such sum was received by the claimant, and the
17time within which it may be recouped and, as the case may be,
18the reasons for denial of recoupment waiver. The claims
19adjudicator may reconsider his decision within one year after
20the date when the decision was made. Such decision or
21reconsidered decision may be appealed to a Referee within the
22time limits prescribed by Section 800 for appeal from a
23determination. Any such appeal, and any appeal from the
24Referee's decision thereon, shall be governed by the
25applicable provisions of Sections 801, 803, 804 and 805. No
26recoupment shall be begun until the expiration of the time

 

 

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1limits prescribed by Section 800 of this Act or, if an appeal
2has been filed, until the decision of a Referee has been made
3thereon affirming the decision of the Claims Adjudicator.
4    C. Any sums recovered under the provisions of this Section
5shall be treated as repayments to the Department of sums
6improperly obtained by the claimant.
7    D. Whenever, by reason of a back pay award made by any
8governmental agency or pursuant to arbitration proceedings, or
9by reason of a payment of wages wrongfully withheld by an
10employing unit, an individual has received wages for weeks
11with respect to which he has received benefits, the amount of
12such benefits may be recouped or otherwise recovered as herein
13provided. An employing unit making a back pay award to an
14individual for weeks with respect to which the individual has
15received benefits shall make the back pay award by check
16payable jointly to the individual and to the Department.
17    E. The amount recouped pursuant to paragraph 2 of
18subsection A from benefits payable to an individual for any
19week shall not exceed 25% of the individual's weekly benefit
20amount.
21    In addition to the remedies provided by this Section, when
22an individual has received any sum as benefits for which he is
23found to be ineligible, the Director may request the
24Comptroller to withhold such sum in accordance with Section
2510.05 of the State Comptroller Act and the Director may
26request the Secretary of the Treasury to withhold such sum to

 

 

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1the extent allowed by and in accordance with Section 6402(f)
2of the federal Internal Revenue Code of 1986, as amended.
3Benefits paid pursuant to this Act shall not be subject to such
4withholding. Where the Director requests withholding by the
5Secretary of the Treasury pursuant to this Section, in
6addition to the amount of benefits for which the individual
7has been found ineligible, the individual shall be liable for
8any legally authorized administrative fee assessed by the
9Secretary, with such fee to be added to the amount to be
10withheld by the Secretary.
11(Source: P.A. 102-26, eff. 6-25-21.)