Full Text of SB2066 94th General Assembly
SB2066 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 SB2066
Introduced 2/25/2005, by Sen. Larry K. Bomke SYNOPSIS AS INTRODUCED: |
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820 ILCS 405/1300 |
from Ch. 48, par. 540 |
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Amends the Unemployment Insurance Act. Deletes provisions that an individual may voluntarily elect to have income tax deducted and withheld from his or her unemployment insurance benefit payments only if the Director of the Department of Employment Security promulgates rules concerning the withholding. Effective immediately.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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SB2066 |
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LRB094 11386 BDD 42268 b |
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| AN ACT concerning employment.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Unemployment Insurance Act is amended by | 5 |
| changing Section 1300 as follows:
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| (820 ILCS 405/1300) (from Ch. 48, par. 540)
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| Sec. 1300. Waiver or transfer of benefit rights - Partial | 8 |
| exemption.
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| (A) Except as otherwise provided herein any agreement by an | 10 |
| individual
to waive, release or commute his rights under this | 11 |
| Act shall be void.
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| (B) Benefits due under this Act shall not be assigned, | 13 |
| pledged, encumbered,
released or commuted and shall be exempt | 14 |
| from all claims of creditors and
from levy, execution and | 15 |
| attachment or other remedy for recovery or
collection of a | 16 |
| debt. However, nothing in this Section shall prohibit a
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| specified or agreed upon deduction from benefits by an | 18 |
| individual, or a
court or administrative order for withholding | 19 |
| of income, for payment of
past due child support from being | 20 |
| enforced and collected by the Department
of Public Aid on | 21 |
| behalf of persons receiving a grant of financial aid under
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| Article IV of the Illinois Public Aid Code, persons for whom an | 23 |
| application
has been made and approved for child support | 24 |
| enforcement services under
Section 10-1 of such
Code, or | 25 |
| persons similarly situated and receiving like services
in other | 26 |
| states. It is provided that:
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| (1) The aforementioned deduction of benefits and order | 28 |
| for withholding
of income apply only if appropriate | 29 |
| arrangements have been made for
reimbursement to the | 30 |
| Director by the Department of Public Aid for any
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| administrative costs incurred by the Director under this | 32 |
| Section.
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SB2066 |
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LRB094 11386 BDD 42268 b |
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| (2) The Director shall deduct and withhold from | 2 |
| benefits payable under
this Act, or under any arrangement | 3 |
| for the payment of benefits entered into
by the Director | 4 |
| pursuant to the powers granted under Section 2700 of this
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| Act, the amount specified or agreed upon. In the case of a | 6 |
| court
or administrative order for withholding of income, | 7 |
| the Director shall
withhold the amount of the order.
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| (3) Any amount deducted and withheld by the Director | 9 |
| shall be paid to
the Department of Public Aid or the State | 10 |
| Disbursement Unit established
under Section 10-26 of the | 11 |
| Illinois Public Aid Code, as directed by the
Department of | 12 |
| Public Aid, on behalf of the individual.
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| (4) Any amount deducted and withheld under subsection | 14 |
| (3) shall for all
purposes be treated as if it were paid to | 15 |
| the individual as benefits and
paid by such individual to | 16 |
| the Department of Public Aid or the State
Disbursement Unit | 17 |
| in satisfaction of the individual's child support
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| obligations.
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| (5) For the purpose of this Section, child support is | 20 |
| defined
as those obligations which are being enforced | 21 |
| pursuant to a plan described
in Title IV, Part D, Section | 22 |
| 454 of the Social Security Act and approved
by the | 23 |
| Secretary of Health and Human Services.
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| (6) The deduction of benefits and order for withholding | 25 |
| of income for
child support shall be governed by Titles III | 26 |
| and IV of the Social Security
Act and all regulations duly | 27 |
| promulgated thereunder.
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| (C) Nothing in this Section prohibits an individual from | 29 |
| voluntarily
electing to have federal income tax deducted and | 30 |
| withheld from his or her
unemployment insurance benefit | 31 |
| payments.
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| (1) The Director shall, at the time that an individual | 33 |
| files his or her
claim for benefits that establishes his or | 34 |
| her benefit year, inform the
individual that:
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| (a) unemployment insurance is subject to federal, | 36 |
| State, and local
income
taxes;
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LRB094 11386 BDD 42268 b |
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| (b) requirements exist pertaining to estimated tax | 2 |
| payments;
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| (c) the individual may elect to have federal income | 4 |
| tax deducted and
withheld from his or her payments of | 5 |
| unemployment insurance in the amount
specified in the | 6 |
| federal Internal Revenue Code; and
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| (d) the individual is permitted to change a | 8 |
| previously elected
withholding status.
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| (2) Amounts deducted and withheld from unemployment | 10 |
| insurance shall remain
in the unemployment fund until | 11 |
| transferred to the federal taxing authority as a
payment of | 12 |
| income tax.
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| (3) The Director shall follow all procedures specified | 14 |
| by the United
States Department of Labor and the federal | 15 |
| Internal Revenue Service pertaining
to the deducting and | 16 |
| withholding of income tax.
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| (4) Amounts shall be deducted and withheld in | 18 |
| accordance with the
priorities established in rules | 19 |
| promulgated by the Director.
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| (D) Nothing in this Section prohibits an individual from | 21 |
| voluntarily
electing to have State of Illinois income tax | 22 |
| deducted and withheld from his or
her unemployment insurance | 23 |
| benefit payments if such deduction and withholding
is provided | 24 |
| for pursuant to rules promulgated by the Director .
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| (1) The
If pursuant to rules promulgated by the | 26 |
| Director, an individual
may voluntarily elect to have State | 27 |
| of Illinois income tax deducted and
withheld from his or | 28 |
| her unemployment insurance benefit payments, the Director
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| shall, at the time that an individual files his or her | 30 |
| claim for benefits that
establishes his or her benefit | 31 |
| year, in addition to providing the notice
required under | 32 |
| subsection C, inform the individual that:
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| (a) the individual may elect to have State of | 34 |
| Illinois income tax
deducted and withheld from his or | 35 |
| her payments of unemployment insurance in the
amount | 36 |
| specified pursuant to rules promulgated by the |
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LRB094 11386 BDD 42268 b |
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| Director ; and
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| (b) the individual is permitted to change a | 3 |
| previously elected
withholding status.
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| (2) Amounts deducted and withheld from unemployment | 5 |
| insurance shall remain
in the unemployment fund until | 6 |
| transferred to the Department of Revenue as a
payment of | 7 |
| State of Illinois income tax.
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| (3) Amounts shall be deducted and withheld in | 9 |
| accordance with the
priorities established in rules | 10 |
| promulgated by the Director.
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| (E) Nothing in this Section prohibits the deduction and | 12 |
| withholding of an
uncollected overissuance of food stamp | 13 |
| coupons from unemployment insurance
benefits pursuant to this | 14 |
| subsection (E).
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| (1) At the time that an individual files a claim for | 16 |
| benefits that
establishes his or her benefit year, that | 17 |
| individual must disclose whether or
not he or she owes an | 18 |
| uncollected overissuance (as defined in Section 13(c)(1)
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| of the federal Food Stamp Act of 1977) of food stamp | 20 |
| coupons. The Director
shall notify the State food stamp | 21 |
| agency enforcing such obligation of any
individual who | 22 |
| discloses that he or she owes an uncollected overissuance | 23 |
| of
food stamp coupons and who meets the monetary | 24 |
| eligibility requirements of
subsection E of
Section 500.
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| (2) The Director shall deduct and withhold from any | 26 |
| unemployment insurance
benefits payable to an individual | 27 |
| who owes an uncollected overissuance of food
stamp coupons:
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| (a) the amount specified by the individual to the | 29 |
| Director to be
deducted and withheld under this | 30 |
| subsection (E);
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| (b) the amount (if any) determined pursuant to an | 32 |
| agreement submitted
to the State food stamp agency | 33 |
| under Section 13(c)(3)(A) of the federal Food
Stamp Act | 34 |
| of 1977; or
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| (c) any amount otherwise required to be deducted | 36 |
| and withheld from
unemployment insurance benefits |
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LRB094 11386 BDD 42268 b |
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| pursuant to Section 13(c)(3)(B) of the federal
Food | 2 |
| Stamp Act of 1977.
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| (3) Any amount deducted and withheld pursuant to this | 4 |
| subsection (E) shall
be paid by the Director to the State | 5 |
| food stamp agency.
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| (4) Any amount deducted and withheld pursuant to this | 7 |
| subsection (E) shall
for all purposes be treated as if it | 8 |
| were paid to the individual as
unemployment insurance | 9 |
| benefits and paid by the individual to the State food
stamp | 10 |
| agency as repayment of the individual's uncollected | 11 |
| overissuance of food
stamp coupons.
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| (5) For purposes of this subsection (E), "unemployment | 13 |
| insurance benefits"
means any compensation payable under | 14 |
| this Act including amounts payable by the
Director pursuant | 15 |
| to an agreement under any federal law providing for
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| compensation, assistance, or allowances with respect to | 17 |
| unemployment.
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| (6) This subsection (E) applies only if arrangements | 19 |
| have been made for
reimbursement by the State food stamp | 20 |
| agency for the administrative costs
incurred by the | 21 |
| Director under this subsection (E) which are attributable | 22 |
| to
the repayment of uncollected overissuances of food stamp | 23 |
| coupons to the State
food stamp agency.
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| (Source: P.A. 91-212, eff. 7-20-99; 91-712, eff. 7-1-00; | 25 |
| 92-590, eff.
7-1-02.)
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| Section 99. Effective date. This Act takes effect upon | 27 |
| becoming law.
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