093_HB3668eng HB3668 Engrossed LRB093 10772 DRJ 11183 b 1 AN ACT in relation to public aid. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Public Aid Code is amended by 5 changing Sections 10-26 and 12-8.1 as follows: 6 (305 ILCS 5/10-26) 7 Sec. 10-26. State Disbursement Unit. 8 (a) Effective October 1, 1999 the Illinois Department 9 shall establish a State Disbursement Unit in accordance with 10 the requirements of Title IV-D of the Social Security Act. 11 The Illinois Department shall enter into an agreement with a 12 State or local governmental unit or private entity to perform 13 the functions of the State Disbursement Unit as set forth in 14 this Section. The State Disbursement Unit shall collect and 15 disburse support payments made under court and administrative 16 support orders: 17 (1) being enforced in cases in which child and 18 spouse support services are being provided under this 19 Article X; and 20 (2) in all cases in which child and spouse support 21 services are not being provided under this Article X and 22 in which support payments are made under the provisions 23 of the Income Withholding for Support Act. 24 (a-2) The contract entered into by the Illinois 25 Department with a public or private entity or an individual 26 for the operation of the State Disbursement Unit is subject 27 to competitive bidding. In addition, the contract is subject 28 to Section 10-26.2 of this Code. As used in this subsection 29 (a-2), "contract" has the same meaning as in the Illinois 30 Procurement Code. 31 (a-5) If the State Disbursement Unit receives a support HB3668 Engrossed -2- LRB093 10772 DRJ 11183 b 1 payment that was not appropriately made to the Unit under 2 this Section, the Unit shall immediately return the payment 3 to the sender, including, if possible, instructions detailing 4 where to send the support payments. 5 (b) All payments received by the State Disbursement 6 Unit: 7 (1) shall be deposited into an account obtained by 8 the Illinois Department or the State or local 9 governmental unit or private entity, as the case may be, 10 and 11 (2) distributed and disbursed by the State 12 Disbursement Unit, in accordance with the directions of 13 the Illinois Department, pursuant to Title IV-D of the 14 Social Security Act and rules promulgated by the 15 Department. 16 (c) All support payments assigned to the Illinois 17 Department under Article X of this Code and rules promulgated 18 by the Illinois Department that are disbursed to the Illinois 19 Department by the State Disbursement Unit shall be paid into 20 the Child Support Enforcement Trust Fund. 21 (d) If the agreement with the State or local 22 governmental unit or private entity provided for in this 23 Section is not in effect for any reason, the Department shall 24 perform the functions of the State Disbursement Unit as set 25 forth in this Section for a maximum of 12 months before July 26 1, 2001, and for a maximum of 24 months after June 30, 2001. 27 If the Illinois Department is performing the functions of the 28 State Disbursement Unit on July 1, 2001, then the Illinois 29 Department shall make an award on or before December 31, 30 2002, to a State or local government unit or private entity 31 to perform the functions of the State Disbursement Unit. 32 Payments received by the Illinois Department in performance 33 of the duties of the State Disbursement Unit shall be 34 deposited into the State Disbursement Unit Revolving Fund HB3668 Engrossed -3- LRB093 10772 DRJ 11183 b 1 established under Section 12-8.1. Nothing in this Section 2 shall prohibit the Illinois Department from holding the State 3 Disbursement Unit Revolving Fund after June 30, 2003. 4 (e) By February 1, 2000, the Illinois Department shall 5 conduct at least 4 regional training and educational seminars 6 to educate the clerks of the circuit court on the general 7 operation of the State Disbursement Unit, the role of the 8 State Disbursement Unit, and the role of the clerks of the 9 circuit court in the collection and distribution of child 10 support payments. 11 (f) By March 1, 2000, the Illinois Department shall 12 conduct at least 4 regional educational and training seminars 13 to educate payors, as defined in the Income Withholding for 14 Support Act, on the general operation of the State 15 Disbursement Unit, the role of the State Disbursement Unit, 16 and the distribution of income withholding payments pursuant 17 to this Section and the Income Withholding for Support Act. 18 (Source: P.A. 91-212, eff. 7-20-99; 91-677, eff. 1-5-00; 19 91-712, eff. 7-1-00; 92-44, eff. 7-1-01.) 20 (305 ILCS 5/12-8.1) 21 Sec. 12-8.1. State Disbursement Unit Revolving Fund. 22 (a) There is created a revolving fund to be known as the 23 State Disbursement Unit Revolving Fund, to be held by the 24 Director of the Illinois Department, outside the State 25 treasury, for the following purposes: 26 (1) the deposit of all support payments received by 27 the Illinois Department's State Disbursement Unit; 28 (2) the deposit of other funds including, but not 29 limited to, transfers of funds from other accounts 30 attributable to support payments received by the Illinois 31 Department's State Disbursement Unit; 32 (3) the deposit of any interest accrued by the 33 revolving fund, which interest shall be available for HB3668 Engrossed -4- LRB093 10772 DRJ 11183 b 1 payment of (i) any amounts considered to be Title IV-D 2 program income that must be paid to the U.S. Department 3 of Health and Human Services and (ii) any balance 4 remaining after payments made under item (i) of this 5 subsection (3) to the General Revenue Fund; however, the 6 disbursements under this subdivision (3) may not exceed 7 the amount of the interest accrued by the revolving fund; 8 (4) the disbursement of such payments to obligees 9 or to the assignees of the obligees in accordance with 10 the provisions of Title IV-D of the Social Security Act 11 and rules promulgated by the Department, provided that 12 such disbursement is based upon a payment by a payor or 13 obligor deposited into the revolving fund established by 14 this Section; and 15 (5) the disbursement of funds to payors or obligors 16 to correct erroneous payments to the Illinois 17 Department's State Disbursement Unit, in an amount not to 18 exceed the erroneous payments. 19 (b) (Blank).The provisions of this Section shall apply20only if the Department performs the functions of the Illinois21Department's State Disbursement Unit under paragraph (d) of22Section 10-26.23 (Source: P.A. 91-712, eff. 7-1-00; 92-44, eff. 7-1-01.) 24 Section 99. Effective date. This Act takes effect upon 25 becoming law.