HB5782 99TH GENERAL ASSEMBLY

LRB099 16779 JLS 41124 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB5782

Introduced , by Rep. Patricia R. Bellock

SYNOPSIS AS INTRODUCED:

20 ILCS 1020/10 new
20 ILCS 1020/30
20 ILCS 1020/40
305 ILCS 5/11-5.2
820 ILCS 405/1802 new
820 ILCS 405/1801.1 rep.

Amends the New Hire Reporting Act, the Illinois Public Aid Code, and the Unemployment Insurance Act. Provides that the operation of the Illinois Directory of New Hires is transferred from the Department of Employment Security to the Department of Healthcare and Family Services. Provides that those departments shall share data access pursuant to a data access agreement. Provides that the Legislative Reference Bureau shall reassign the New Hire Reporting Act in the Illinois Compiled Statutes to reflect the transfer to the Department of Public Health. Effective immediately.

A BILL FOR

AN ACT concerning employment.

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

Section 5. The New Hire Reporting Act is amended by changing Sections 30 and 40, and adding Section 10 as follows:

(20 ILCS 1020/10 new)

Sec. 10. Illinois Directory of New Hires.

(a) The operation of the automated directory of newly hired employees known as the Illinois Directory of New Hires is transferred from the Department of Employment Security to the Department of Healthcare and Family Services. The Illinois Directory of New Hires shall contain the information required to be reported by employers to the Department of Healthcare and Family Services under subsection (b). In the administration of the Directory, the Department shall comply with any requirements concerning the Employer New Hire Reporting Program established by the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996. The Department of Employment Security is authorized to use the information contained in the Directory of New Hires to administer any of the provisions of the Unemployment Insurance Act.

(b) Each employer in Illinois, except a department, agency, or instrumentality of the United States, shall file with the Department of Healthcare and Family Services a report in accordance with rules adopted by the Department of Healthcare and Family Services (but in any event not later than 20 days after the date the employer hires the employee or, in the case of an employer transmitting reports magnetically or electronically, by 2 monthly transmissions, if necessary, not less than 12 days nor more than 16 days apart) providing the following information concerning each newly hired employee: the employee's name, address, and social security number, the date services for remuneration were first performed by the employee, and the employer's name, address, Federal Employer Identification Number assigned under Section 6109 of the Internal Revenue Code of 1986, and such other information as may be required by federal law or regulation, provided that each employer may voluntarily file the address to which the employer wants income withholding orders to be mailed, if it is different from the address given on the Federal Employer Identification Number. An employer in Illinois which transmits its reports electronically or magnetically and which also has employees in another state may report all newly hired employees to a single designated state in which the employer has employees if it has so notified the Secretary of the United States Department of Health and Human Services in writing. An employer may, at its option, submit information regarding any rehired employee in the same manner as information is submitted regarding a newly hired employee. Each report required under this subsection shall, to the extent practicable, be made on an Internal Revenue Service Form W-4 or, at the option of the employer, an equivalent form, and may be transmitted by first class mail, by telefax, magnetically, or electronically.

(c) An employer which knowingly fails to comply with the reporting requirements established by this Section shall be subject to a civil penalty of $15 for each individual whom it fails to report. An employer shall be considered to have knowingly failed to comply with the reporting requirements established by this Section with respect to an individual if the employer has been notified by the Department of Healthcare and Family Services that it has failed to report an individual, and it fails, without reasonable cause, to supply the required information to the Department of Healthcare and Family Services within 21 days after the date of mailing of the notice. Any individual who knowingly conspires with the newly hired employee to cause the employer to fail to report the information required by this Section or who knowingly conspires with the newly hired employee to cause the employer to file a false or incomplete report shall be guilty of a Class B misdemeanor with a fine not to exceed $500 with respect to each employee with whom the individual so conspires.

(d) As used in this Section, "newly hired employee" means an individual who (i) is an employee within the meaning of Chapter 24 of the Internal Revenue Code of 1986 and (ii) either has not previously been employed by the employer or was previously employed by the employer but has been separated from that prior employment for at least 60 consecutive days; however, "newly hired employee" does not include an employee of a federal or State agency performing intelligence or counterintelligence functions, if the head of that agency has determined that the filing of the report required by this Section with respect to the employee could endanger the safety of the employee or compromise an ongoing investigation or intelligence mission.

For the purposes of this Act, the term "employer" has the meaning given by Section 3401(d) of the Internal Revenue Code of 1986 and includes any governmental entity and labor organization as defined by Section 2(5) of the National Labor Relations Act, and includes any entity (also known as a hiring hall) which is used by the organization and an employer to carry out the requirements described in Section 8(f)(3) of that Act of an agreement between the organization and the employer.

(e) The Department of Healthcare and Family Services shall grant access to data obtained or held under this Act with the Department of Employment Security. The Department of Healthcare and Family Services and the Department of Employment Security shall enter into an agreement governing the sharing of data under this Act.

(f) The Department of Employment Security, in conjunction with the Department of Healthcare and Human Services, shall prepare and implement a plan to transfer all personnel, materials, books, records, appropriations, and equipment related to administration of the New Hire Reporting Act to the Department of Healthcare and Human Services no later than 90 days after the effective date of this amendatory Act of the 99th General Assembly.

(20 ILCS 1020/30)

Sec. 30. Toll-free telephone line; public service announcements.

(a) The Department of Healthcare and Family Services Employment Security shall establish a toll-free telephone line for new hire reporting, employer follow-up to correct errors and facilitate electronic transmission, and an expedited administrative hearing process to determine reasonable cause in non-compliance situations.

(b) The Department of Healthcare and Family Services Employment Security shall issue public service announcements and mailings to inform employers about the new hire reporting requirements and procedures pursuant to Section 10 1801.1 of the Unemployment Insurance Act, including simple instructions on completion of the Form W-4 and information on electronic or magnetic transmission of data.

(Source: P.A. 90-425, eff. 8-15-97.)

(20 ILCS 1020/40)

Sec. 40. Emergency judicial hearing. If the issue of an employer's reasonable cause for failure to comply with the reporting requirements pursuant to Section 10 1801.1 of the Unemployment Insurance Act is not resolved through the expedited administrative hearing process authorized under subsection (a) of Section 30, the employer may file a petition in the circuit court to seek judicial review of that issue.

(Source: P.A. 90-425, eff. 8-15-97.)

Section 10. The Illinois Public Aid Code is amended by changing Section 11-5.2 as follows:

(305 ILCS 5/11-5.2)

Sec. 11-5.2. Income, Residency, and Identity Verification System.

(a) The Department shall ensure that its proposed integrated eligibility system shall include the computerized functions of income, residency, and identity eligibility verification to verify eligibility, eliminate duplication of medical assistance, and deter fraud. Until the integrated eligibility system is operational, the Department may enter into a contract with the vendor selected pursuant to Section 11-5.3 as necessary to obtain the electronic data matching described in this Section. This contract shall be exempt from the Illinois Procurement Code pursuant to subsection (h) of Section 1-10 of that Code.

(b) Prior to awarding medical assistance at application under Article V of this Code, the Department shall, to the extent such databases are available to the Department, conduct data matches using the name, date of birth, address, and Social Security Number of each applicant or recipient or responsible relative of an applicant or recipient against the following:

(1) Income tax information.

(2) Employer reports of income and unemployment insurance payment information maintained by the Department of Employment Security.

(3) Earned and unearned income, citizenship and death, and other relevant information maintained by the Social Security Administration.

(4) Immigration status information maintained by the United States Citizenship and Immigration Services.

(5) Wage reporting and similar information maintained by states contiguous to this State.

(6) Employment information maintained by the Department of Employment Security in its New Hire Directory database.

(7) Employment information maintained by the United States Department of Health and Human Services in its National Directory of New Hires database.

(8) Veterans' benefits information maintained by the United States Department of Health and Human Services, in coordination with the Department of Health and Human Services and the Department of Veterans' Affairs, in the federal Public Assistance Reporting Information System (PARIS) database.

(9) Residency information maintained by the Illinois Secretary of State.

(10) A database which is substantially similar to or a successor of a database described in this Section that contains information relevant for verifying eligibility for medical assistance.

(c) (Blank).

(d) If a discrepancy results between information provided by an applicant, recipient, or responsible relative and information contained in one or more of the databases or information tools listed under subsection (b) of this Section or subsection (c) of Section 11-5.3 and that discrepancy calls into question the accuracy of information relevant to a condition of eligibility provided by the applicant, recipient, or responsible relative, the Department or its contractor shall review the applicant's or recipient's case using the following procedures:

(1) If the information discovered under subsection (b) of this Section or subsection (c) of Section 11-5.3 does not result in the Department finding the applicant or recipient ineligible for assistance under Article V of this Code, the Department shall finalize the determination or redetermination of eligibility.

(2) If the information discovered results in the Department finding the applicant or recipient ineligible for assistance, the Department shall provide notice as set forth in Section 11-7 of this Article.

(3) If the information discovered is insufficient to determine that the applicant or recipient is eligible or ineligible, the Department shall provide written notice to the applicant or recipient which shall describe in sufficient detail the circumstances of the discrepancy, the information or documentation required, the manner in which the applicant or recipient may respond, and the consequences of failing to take action. The applicant or recipient shall have 10 business days to respond.

(4) If the applicant or recipient does not respond to the notice, the Department shall deny assistance for failure to cooperate, in which case the Department shall provide notice as set forth in Section 11-7. Eligibility for assistance shall not be established until the discrepancy has been resolved.

(5) If an applicant or recipient responds to the notice, the Department shall determine the effect of the information or documentation provided on the applicant's or recipient's case and shall take appropriate action. Written notice of the Department's action shall be provided as set forth in Section 11-7 of this Article.

(6) Suspected cases of fraud shall be referred to the Department's Inspector General.

(e) The Department shall adopt any rules necessary to implement this Section.

(Source: P.A. 97-689, eff. 6-14-12; 98-756, eff. 7-16-14.)

Section 15. The Unemployment Insurance Act is amended by adding Section 1802 as follows:

(820 ILCS 405/1802 new)

Sec. 1802. Access to Illinois Directory of New Hires.

(a) The Department of Healthcare and Family Services shall grant access to data obtained or held under the New Hire Reporting Act with the Department of Employment Security. The Department of Healthcare and Family Services and the Department of Employment Security shall enter into an agreement governing the sharing of data under the New Hire Reporting Act.

(b) The Department of Employment Security is authorized to use the information contained in the Illinois Directory of New Hires established under the New Hire Reporting Act to administer any of the provisions of this Act.

(820 ILCS 405/1801.1 rep.)

Section 20. The Unemployment Insurance Act is amended by repealing Section 1801.1.

Section 90. Illinois Compiled Statutes reassignment.

The Legislative Reference Bureau shall reassign the following Act to the specified location in the Illinois Compiled Statutes and file appropriate documents with the Index Division of the Office of the Secretary of State in accordance with subsection (c) of Section 5.04 of the Legislative Reference Bureau Act:

New Hire Reporting Act, reassigned from 20 ILCS 1020/ to 20 ILCS 2230/.

Section 99. Effective date. This Act takes effect upon becoming law.