103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1486

 

Introduced 1/31/2023, by Rep. La Shawn K. Ford

 

SYNOPSIS AS INTRODUCED:
 
735 ILCS 5/2-1303  from Ch. 110, par. 2-1303
735 ILCS 5/12-109  from Ch. 110, par. 12-109

    Amends the Code of Civil Procedure. Deletes language providing that the interest on judgments arising by operation of law from child support orders shall be calculated by applying one-twelfth of the current statutory interest rate as provided in the Code to the unpaid child support balance as of the end of each calendar month. Provides instead that every judgment arising by operation of law from a child support order shall not bear interest. Makes corresponding changes.


LRB103 03534 LNS 48540 b

 

 

A BILL FOR

 

HB1486LRB103 03534 LNS 48540 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Code of Civil Procedure is amended by
5changing Sections 2-1303 and 12-109 as follows:
 
6    (735 ILCS 5/2-1303)  (from Ch. 110, par. 2-1303)
7    Sec. 2-1303. Interest on judgment.
8    (a) Except as provided in subsection (b) and except for
9judgments arising by operation of law from a child support
10order, judgments recovered in any court shall draw interest at
11the rate of 9% per annum from the date of the judgment until
12satisfied or 6% per annum when the judgment debtor is a unit of
13local government, as defined in Section 1 of Article VII of the
14Constitution, a school district, a community college district,
15or any other governmental entity. When judgment is entered
16upon any award, report, or verdict, interest shall be computed
17at the above rate, from the time when made or rendered to the
18time of entering judgment upon the same, and included in the
19judgment. Interest shall be computed and charged only on the
20unsatisfied portion of the judgment as it exists from time to
21time. The judgment debtor may by tender of payment of
22judgment, costs, and interest accrued to the date of tender,
23stop the further accrual of interest on such judgment

 

 

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1notwithstanding the prosecution of an appeal, or other steps
2to reverse, vacate, or modify the judgment.
3    (b)(1) As used in this Section:
4    "Consumer debt" means money or property, or the
5equivalent, due or owing, or alleged to be due or owing, from a
6natural person by reason of a transaction in which property,
7services, or money is acquired by that natural person
8primarily for personal, family, or household purposes.
9    "Consumer debt judgment" means a judgment recovered in any
10court against one or more natural persons arising out of
11consumer debt. "Consumer debt judgment" does not include any
12compensation for bodily injury or death, nor any judgment
13entered where the debt is guaranteed by or contains a joint and
14several liability provision between a natural person and a
15business, whether or not that business is legally constituted
16under the laws of this State or any other state.
17    (2) Notwithstanding subsection (a), consumer debt
18judgments of $25,000 or less shall draw interest from the date
19of the judgment until satisfied at the rate of 5% per annum.
20    (3) The judgment debtor may, by tender of payment of
21judgment, costs, and interest accrued to the date of tender,
22stop the further accrual of interest on the consumer debt
23judgment, notwithstanding the prosecution of an appeal, or
24other steps to reverse, vacate, or modify the judgment.
25    (4) This subsection applies to all consumer debt judgments
26entered into after the effective date of this amendatory Act

 

 

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1of the 101st General Assembly.
2    (c) In all actions brought to recover damages for personal
3injury or wrongful death resulting from or occasioned by the
4conduct of any other person or entity, whether by negligence,
5willful and wanton misconduct, intentional conduct, or strict
6liability of the other person or entity, the plaintiff shall
7recover prejudgment interest on all damages, except punitive
8damages, sanctions, statutory attorney's fees, and statutory
9costs, set forth in the judgment. Prejudgment interest shall
10begin to accrue on the date the action is filed. If the
11plaintiff voluntarily dismisses the action and refiles, the
12accrual of prejudgment interest shall be tolled from the date
13the action is voluntarily dismissed to the date the action is
14refiled. In entering judgment for the plaintiff in the action,
15the court shall add to the amount of the judgment interest
16calculated at the rate of 6% per annum on the amount of the
17judgment, minus punitive damages, sanctions, statutory
18attorney's fees, and statutory costs. If the judgment is
19greater than the amount of the highest written settlement
20offer made by the defendant within 12 months after the later of
21the effective date of this amendatory Act of the 102nd General
22Assembly or the filing of the action and not accepted by the
23plaintiff within 90 days after the date of the offer or
24rejected by the plaintiff, interest added to the amount of
25judgment shall be an amount equal to interest calculated at
26the rate of 6% per annum on the difference between the amount

 

 

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1of the judgment, minus punitive damages, sanctions, statutory
2attorney's fees, and statutory costs, and the amount of the
3highest written settlement offer. If the judgment is equal to
4or less than the amount of the highest written settlement
5offer made by the defendant within 12 months after the later of
6the effective date of this amendatory Act of the 102nd General
7Assembly or the filing of the action and not accepted by the
8plaintiff within 90 days after the date of the offer or
9rejected by the plaintiff, no prejudgment interest shall be
10added to the amount of the judgment. For the purposes of this
11subsection, withdrawal of a settlement offer by defendant
12shall not be considered a rejection of the offer by the
13plaintiff. Notwithstanding any other provision of this
14subsection, prejudgment interest shall accrue for no longer
15than 5 years.
16    Notwithstanding any other provision of law, neither the
17State, a unit of local government, a school district,
18community college district, nor any other governmental entity
19is liable to pay prejudgment interest in an action brought
20directly or vicariously against it by the injured party.
21    For any personal injury or wrongful death occurring before
22the effective date of this amendatory Act of the 102nd General
23Assembly, the prejudgment interest shall begin to accrue on
24the later of the date the action is filed or the effective date
25of this amendatory Act of the 102nd General Assembly.
26(Source: P.A. 101-168, eff. 1-1-20; 102-6, eff. 7-1-21.)
 

 

 

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1    (735 ILCS 5/12-109)  (from Ch. 110, par. 12-109)
2    Sec. 12-109. Interest on judgments.
3    (a) Every judgment except those arising by operation of
4law from child support orders shall bear interest thereon as
5provided in Section 2-1303.
6    (b) Every judgment arising by operation of law from a
7child support order shall not bear interest as provided in
8this subsection. The interest on judgments arising by
9operation of law from child support orders shall be calculated
10by applying one-twelfth of the current statutory interest rate
11as provided in Section 2-1303 to the unpaid child support
12balance as of the end of each calendar month. The unpaid child
13support balance at the end of the month is the total amount of
14child support ordered, excluding the child support that was
15due for that month to the extent that it was not paid in that
16month and including judgments for retroactive child support,
17less all payments received and applied as set forth in this
18subsection. The accrued interest shall not be included in the
19unpaid child support balance when calculating interest at the
20end of the month. The unpaid child support balance as of the
21end of each month shall be determined by calculating the
22current monthly child support obligation and applying all
23payments received for that month, except federal income tax
24refund intercepts, first to the current monthly child support
25obligation and then applying any payments in excess of the

 

 

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1current monthly child support obligation to the unpaid child
2support balance owed from previous months. The current monthly
3child support obligation shall be determined from the document
4that established the support obligation. Federal income tax
5refund intercepts and any payments in excess of the current
6monthly child support obligation shall be applied to the
7unpaid child support balance. Any payments in excess of the
8current monthly child support obligation and the unpaid child
9support balance shall be applied to the accrued interest on
10the unpaid child support balance. Interest on child support
11obligations may be collected by any means available under
12federal and State law, rules, and regulations providing for
13the collection of child support.
14(Source: P.A. 101-336, eff. 8-9-19.)