HB4310 Engrossed

LRB093 18967 DRJ 44702 b






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    AN ACT concerning child support.

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


 
4
    Section 5. The Illinois Banking Act is amended  by changing 
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Section 48.4 as follows:
 



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    (205 ILCS 5/48.4)



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    Sec. 48.4. Enforcement of
Administrative liens for 
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past-due child support. 
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    (a) Any bank
governed by this Act shall encumber or 
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surrender accounts or assets held by the
bank on behalf of any 
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responsible relative who is subject to a child support
lien, 
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upon notice of the lien or levy of the Illinois Department of 
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Public Aid
or its successor agency pursuant to Section 10-25.5 
14
of the Illinois Public Aid
Code, or upon notice of interstate 
15
lien or levy from any other state's
agency
responsible for 
16
implementing the child support enforcement program set forth in

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Title IV, Part D of the Social Security Act.

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    (b) Within 90 days after receiving notice from the 
19
Department of Public Aid that the Department has adopted a 
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child support enforcement debit authorization form as required 
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under the Illinois Public Aid Code, each bank governed by this 
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Act shall take all appropriate steps to implement the use of 
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the form in relation to accounts held by the bank.  Upon 
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receiving from the Department of Public Aid a copy of a child 
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support enforcement debit authorization form signed by an 
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obligor, a bank holding an account on behalf of the obligor 
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shall debit the account and transfer the debited amounts to the 
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State Disbursement Unit according to the instructions in the 
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child support enforcement debit authorization form.

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(Source: P.A. 92-811, eff. 8-21-02.)

 
31
    Section 10. The Illinois Savings and Loan Act of 1985 is 
 


 






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amended  by changing Section 1-6d as follows:
 



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    (205 ILCS 105/1-6d)



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    Sec. 1-6d. Enforcement of
Administrative liens for 
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past-due child support. 
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    (a) Any
association governed by this Act shall encumber or 
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surrender accounts or assets
held by the association on behalf 
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of any responsible relative who is subject to
a child support 
8
lien, upon notice of the lien or levy of the Illinois

9
Department of Public Aid or its successor agency pursuant to 
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Section 10-25.5
of the Illinois Public Aid Code, or upon notice 
11
of interstate lien or levy
from any
other state's agency 
12
responsible for implementing the child support enforcement

13
program set forth in Title IV, Part D of the Social Security 
14
Act.

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    (b) Within 90 days after receiving notice from the 
16
Department of Public Aid that the Department has adopted a 
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child support enforcement debit authorization form as required 
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under the Illinois Public Aid Code, each association governed 
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by this Act shall take all appropriate steps to implement the 
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use of the form in relation to accounts held by the 
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association.  Upon receiving from the Department of Public Aid a 
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copy of a child support enforcement debit authorization form 
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signed by an obligor, an association holding an account on 
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behalf of the obligor shall debit the account and transfer the 
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debited amounts to the State Disbursement Unit according to the 
26
instructions in the child support enforcement debit 
27
authorization form.

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(Source: P.A. 92-811, eff. 8-21-02.)

 
29
    Section 15. The Savings Bank Act is amended  by changing 
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Section 7007 as follows:
 



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    (205 ILCS 205/7007)



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    Sec. 7007. Enforcement of
Administrative liens for 
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past-due child support. 
 


 






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    (a) Any savings
bank governed by this Act shall encumber or 
2
surrender accounts or assets
held by the savings bank on behalf 
3
of any responsible relative who is subject
to
a child support 
4
lien, upon notice of the lien or levy of the Illinois

5
Department of Public Aid or its successor agency pursuant to 
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Section 10-25.5
of the Illinois Public Aid Code, or upon notice 
7
of interstate lien or levy
from any
other state's agency 
8
responsible for implementing the child support enforcement

9
program set forth in Title IV, Part D of the Social Security 
10
Act.

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    (b) Within 90 days after receiving notice from the 
12
Department of Public Aid that the Department has adopted a 
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child support enforcement debit authorization form as required 
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under the Illinois Public Aid Code, each savings bank governed 
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by this Act shall take all appropriate steps to implement the 
16
use of the form in relation to accounts held by the savings 
17
bank.  Upon receiving from the Department of Public Aid a copy 
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of a child support enforcement debit authorization form signed 
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by an obligor, a savings bank holding an account on behalf of 
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the obligor shall debit the account and transfer the debited 
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amounts to the State Disbursement Unit according to the 
22
instructions in the child support enforcement debit 
23
authorization form.

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(Source: P.A. 92-811, eff. 8-21-02.)

 
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    Section 20. The Illinois Credit Union Act is amended  by 
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changing Section 43.1 as follows:
 



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    (205 ILCS 305/43.1)



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    Sec. 43.1. Enforcement of
Administrative liens for 
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past-due child support. 
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    (a) Any credit
union governed by this Act shall encumber or 
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surrender accounts or assets
held by the credit union on behalf 
32
of any responsible relative who is subject
to
a child support 
33
lien, upon notice of the lien or levy of the Illinois

34
Department of Public Aid or its successor agency pursuant to 
 


 






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Section 10-25.5
of the Illinois Public Aid Code, or upon notice 
2
of interstate lien from any
other state's agency responsible 
3
for implementing the child support enforcement
program set 
4
forth in Title IV, Part D of the Social Security Act.

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    (b) Within 90 days after receiving notice from the 
6
Department of Public Aid that the Department has adopted a 
7
child support enforcement debit authorization form as required 
8
under the Illinois Public Aid Code, each credit union governed 
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by this Act shall take all appropriate steps to implement the 
10
use of the form in relation to accounts held by the credit 
11
union.  Upon receiving from the Department of Public Aid a copy 
12
of a child support enforcement debit authorization form signed 
13
by an obligor, a credit union holding an account on behalf of 
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the obligor shall debit the account and transfer the debited 
15
amounts to the State Disbursement Unit according to the 
16
instructions in the child support enforcement debit 
17
authorization form.

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(Source: P.A. 90-18, eff. 7-1-97.)

 
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    Section 25. The Foreign Banking Office Act is amended  by 
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changing Section 20 as follows:
 



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    (205 ILCS 645/20)



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    Sec. 20. Enforcement of
Administrative liens for past-due

23
child support. 
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    (a) Any foreign
banking corporation governed by this Act 
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shall encumber or surrender accounts
or assets held by the 
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foreign banking corporation on behalf of any responsible

27
relative who is subject to a child support lien, upon notice of 
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the lien or
levy of the Illinois Department of Public Aid or 
29
its successor agency pursuant
to Section 10-25.5 of the 
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Illinois Public Aid Code, or upon notice of
interstate lien 
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from any other state's agency responsible for implementing the

32
child support enforcement program set forth in Title IV, Part D 
33
of the Social
Security Act.

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    (b) Within 90 days after receiving notice from the 
 


 






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Department of Public Aid that the Department has adopted a 
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child support enforcement debit authorization form as required 
3
under the Illinois Public Aid Code, each foreign banking 
4
corporation governed by this Act shall take all appropriate 
5
steps to implement the use of the form in relation to accounts 
6
held by the corporation.  Upon receiving from the Department of 
7
Public Aid a copy of a child support enforcement debit 
8
authorization form signed by an obligor, a foreign banking 
9
corporation holding an account on behalf of the obligor shall 
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debit the account and transfer the debited amounts to the State 
11
Disbursement Unit according to the instructions in the child 
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support enforcement debit authorization form.

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(Source: P.A. 90-18, eff. 7-1-97; 90-655, eff. 7-30-98.)

 
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    Section 30. The Illinois Public Aid Code is amended  by 
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adding Section 10-16.7 as follows:
 
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    (305 ILCS 5/10-16.7  new)
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    Sec. 10-16.7. Child support enforcement debit 
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authorization.
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    (a) For purposes of this Section:
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    "Financial institution" and "account" are defined as set 
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forth in Section 10-24.

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    "Payor" is defined as set forth in Section 15 of the Income 
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Withholding for Support Act.

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    "Order for support" means any order for periodic payment of 
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funds to the State Disbursement Unit for the support of a child 
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or, where applicable, for support of a child and a parent with 
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whom the child resides, that is entered or modified under this 
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Code or under the Illinois Marriage and Dissolution of Marriage 
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Act, the Non-Support of Spouse and Children Act, the 
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Non-Support Punishment Act, or the Illinois Parentage Act of 
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1984, or that is entered or registered for modification or 
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enforcement under  the Uniform Interstate Family Support Act.

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    "Obligor" means an individual who owes a duty to make 
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payments under an order for support in a case in which child 
 


 






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support enforcement services are being provided under this 
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Article X.
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    (b) The Department of Public Aid shall adopt a child 
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support enforcement debit authorization form that, upon being 
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signed by an obligor, authorizes a financial institution 
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holding an account on the obligor's behalf to debit the 
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obligor's account periodically in an amount equal to the amount 
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of child support that the obligor is required to pay 
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periodically and transfer that amount to the State Disbursement 
10
Unit.  The form shall include instructions to the financial 
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institution concerning the debiting of accounts held on behalf 
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of obligors and the transfer of the debited amounts to the 
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State Disbursement Unit.  In adopting the form, the Department 
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may consult with the Office of Banks and Real Estate and the 
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Department of Financial Institutions.  The Department must 
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adopt the form within 6 months after the effective date of this 
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amendatory Act of the 93rd General Assembly.  Promptly after 
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adopting the form, the Department must notify each financial 
19
institution conducting business in this State that the form has 
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been adopted and is ready for use.
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    (c) An obligor who does not have a payor may sign a child 
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support debit authorization form adopted by the Department 
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under this Section. The obligor may sign a form in relation to 
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any or all of the financial institutions holding an account on 
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the obligor's behalf. Promptly after an obligor signs a child 
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support debit authorization form, the Department shall send the 
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original signed form to the appropriate financial institution. 
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Subject to subsection (e), upon receiving the form, the 
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financial institution shall debit the account and transfer the 
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debited amounts to the State Disbursement Unit according to the 
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instructions in the form. A financial institution that complies 
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with a child support debit authorization form signed by an 
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obligor and issued under this Section shall not be subject to 
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civil liability with respect to any individual or any agency.

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    (d) The signing and issuance of a child support debit 
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authorization form under this Section does not relieve the 
 


 






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obligor from responsibility for compliance with any 
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requirement under the order for support.

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    (e) A financial institution is obligated to debit the 
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account of an obligor pursuant to this Section only if or to 
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the extent:

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        (1) the financial institution reasonably believes the 
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debit authorization form is a true and authentic original 
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document;
    
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        (2) there are finally collected funds in the account; 
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and

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        (3) the account is not subject to offsetting claims of 
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the financial institution, whether due at the time of 
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receipt of the debit authorization form or thereafter to 
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become due and whether liquidated or unliquidated.
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    To the extent the account of the obligor is pledged or held 
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by the financial institution as security for a loan or other 
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obligation, or that the financial institution has any other 
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claim or lien against the account, the financial institution is 
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entitled to retain the account.
 

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    Section 99. Effective date. This Act takes effect upon 
21
becoming law.