HB3520 102ND GENERAL ASSEMBLY

LRB102 12785 JLS 18124 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3520

Introduced 2/22/2021, by Rep. Keith R. Wheeler

SYNOPSIS AS INTRODUCED:

20 ILCS 2505/2505-760 new
820 ILCS 405/2703 new

Amends the Department of Revenue Law of the Civil Administrative Code of Illinois and the Unemployment Insurance Act. Provides that the Department of Revenue and the Department of Employment Security shall cooperate by sharing information and data necessary to identify fraudulent activity with respect to claims for unemployment benefits and to protect taxpayers from the effects of reported income in connection with fraudulent claims.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Department of Revenue Law of the Civil Administrative Code of Illinois is amended by adding Section 2505-760 as follows:

(20 ILCS 2505/2505-760 new)

Sec. 2505-760. Unemployment benefit fraud prevention. The Department of Employment Security and the Department of Revenue shall cooperate under the Unemployment Insurance Act by sharing information concerning any suspected fraudulent unemployment benefit received by an Illinois taxpayer, as provided under Section 2703 of the Unemployment Insurance Act. The Department may adopt rules for the purposes of establishing a safe, secure, and expedited method of identifying Illinois taxpayers who have claimed or been paid fraudulent unemployment benefits and taking necessary actions to hold the Illinois taxpayer harmless from adverse changes to his or her income, based upon fraudulent acts, reported to the Department for tax filing or payment purposes provided under the Illinois Income Tax Act.

Section 10. The Unemployment Insurance Act is amended by adding Section 2703 as follows:

(820 ILCS 405/2703 new)

Sec. 2703. Exchange of information with Department of Revenue for fraud prevention. The administration of this Act shall include cooperation between the Department of Employment Security and the Department of Revenue to securely exchange information for purposes of ensuring the accuracy and legitimacy of unemployment insurance, including the application and receipt of unemployment benefits, provided for under this Act. The Department, in collaboration with the Department of Revenue, shall adopt a method of verification that seeks to identify any suspected fraudulent activity in the unemployment benefits system, including establishing a safe, secure, and expedited method of notification from one agency to another whenever there is suspected fraud in the benefits claimed by or paid to an Illinois resident. The Department may establish a safe and secure database containing any reported or suspected case of fraud which shall be accessible to the Department of Revenue for purposes of identifying individuals who have claimed or been paid fraudulent unemployment benefits.