HB3898 EngrossedLRB099 09535 HEP 29743 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 Income Withholding for Support Act is
5amended by changing Sections 15 and 35 as follows:
6    (750 ILCS 28/15)
7    Sec. 15. Definitions.
8    (a) "Order for support" means any order of the court which
9provides for periodic payment of funds for the support of a
10child or maintenance of a spouse, whether temporary or final,
11and includes any such order which provides for:
12        (1) modification or resumption of, or payment of
13    arrearage, including interest, accrued under, a previously
14    existing order;
15        (2) reimbursement of support;
16        (3) payment or reimbursement of the expenses of
17    pregnancy and delivery (for orders for support entered
18    under the Illinois Parentage Act of 1984 or its predecessor
19    the Paternity Act); or
20        (4) enrollment in a health insurance plan that is
21    available to the obligor through an employer or labor union
22    or trade union.
23    (b) "Arrearage" means the total amount of unpaid support



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1obligations, including interest, as determined by the court and
2incorporated into an order for support.
3    (b-5) "Business day" means a day on which State offices are
4open for regular business.
5    (c) "Delinquency" means any payment, including a payment of
6interest, under an order for support which becomes due and
7remains unpaid after entry of the order for support.
8    (d) "Income" means any form of periodic payment to an
9individual, regardless of source, including, but not limited
10to: wages, salary, commission, compensation as an independent
11contractor, workers' compensation, disability, annuity,
12pension, and retirement benefits, lottery prize awards,
13insurance proceeds, vacation pay, bonuses, profit-sharing
14payments, severance pay, interest, and any other payments, made
15by any person, private entity, federal or state government, any
16unit of local government, school district or any entity created
17by Public Act; however, "income" excludes:
18        (1) any amounts required by law to be withheld, other
19    than creditor claims, including, but not limited to,
20    federal, State and local taxes, Social Security and other
21    retirement and disability contributions;
22        (2) union dues;
23        (3) any amounts exempted by the federal Consumer Credit
24    Protection Act;
25        (4) public assistance payments; and
26        (5) unemployment insurance benefits except as provided



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1    by law.
2    Any other State or local laws which limit or exempt income
3or the amount or percentage of income that can be withheld
4shall not apply.
5    (d-5) "Non-employee" means an independent contractor, a
6vendor, or a person receiving payments who is not an employee
7and not receiving payments for personal services.
8    (e) "Obligor" means the individual who owes a duty to make
9payments under an order for support and includes a
11    (f) "Obligee" means the individual to whom a duty of
12support is owed or the individual's legal representative.
13    (g) "Payor" means any payor of income to an obligor.
14    (h) "Public office" means any elected official or any State
15or local agency which is or may become responsible by law for
16enforcement of, or which is or may become authorized to
17enforce, an order for support, including, but not limited to:
18the Attorney General, the Illinois Department of Healthcare and
19Family Services, the Illinois Department of Human Services, the
20Illinois Department of Children and Family Services, and the
21various State's Attorneys, Clerks of the Circuit Court and
22supervisors of general assistance.
23    (i) "Premium" means the dollar amount for which the obligor
24is liable to his employer or labor union or trade union and
25which must be paid to enroll or maintain a child in a health
26insurance plan that is available to the obligor through an



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1employer or labor union or trade union.
2    (j) "State Disbursement Unit" means the unit established to
3collect and disburse support payments in accordance with the
4provisions of Section 10-26 of the Illinois Public Aid Code.
5    (k) "Title IV-D Agency" means the agency of this State
6charged by law with the duty to administer the child support
7enforcement program established under Title IV, Part D of the
8Social Security Act and Article X of the Illinois Public Aid
10    (l) "Title IV-D case" means a case in which an obligee or
11obligor is receiving child support enforcement services under
12Title IV, Part D of the Social Security Act and Article X of
13the Illinois Public Aid Code.
14    (m) "National Medical Support Notice" means the notice
15required for enforcement of orders for support providing for
16health insurance coverage of a child under Title IV, Part D of
17the Social Security Act, the Employee Retirement Income
18Security Act of 1974, and federal regulations promulgated under
19those Acts.
20    (n) "Employer" means a payor or labor union or trade union
21with an employee group health insurance plan and, for purposes
22of the National Medical Support Notice, also includes but is
23not limited to:
24        (1) any State or local governmental agency with a group
25    health plan; and
26        (2) any payor with a group health plan or "church plan"



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1    covered under the Employee Retirement Income Security Act
2    of 1974.
3(Source: P.A. 94-90, eff. 1-1-06; 95-331, eff. 8-21-07; 95-685,
4eff. 10-23-07.)
5    (750 ILCS 28/35)
6    Sec. 35. Duties of payor.
7    (a) It shall be the duty of any payor who has been served
8with an income withholding notice to deduct and pay over income
9as provided in this Section. The payor shall deduct the amount
10designated in the income withholding notice, as supplemented by
11any notice provided pursuant to subsection (f) of Section 45,
12beginning no later than the next payment of income which is
13payable or creditable to the obligor that occurs 14 days
14following the date the income withholding notice was mailed,
15sent by facsimile or other electronic means, or placed for
16personal delivery to or service on the payor. The payor may
17combine all amounts withheld for the benefit of an obligee or
18public office into a single payment and transmit the payment
19with a listing of obligors from whom withholding has been
20effected. The payor shall pay the amount withheld to the State
21Disbursement Unit within 7 business days after the date the
22amount would (but for the duty to withhold income) have been
23paid or credited to the obligor. If the payor knowingly fails
24to withhold the amount designated in the income withholding
25notice or to pay any amount withheld to the State Disbursement



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1Unit within 7 business days after the date the amount would
2have been paid or credited to the obligor, then the payor shall
3pay a penalty of $100 for each day that the amount designated
4in the income withholding notice (whether or not withheld by
5the payor) is not paid to the State Disbursement Unit after the
6period of 7 business days has expired. The total penalty for a
7payor's failure, on one occasion, to withhold or pay to the
8State Disbursement Unit an amount designated in the income
9withholding notice may not exceed $10,000. The failure of a
10payor, on more than one occasion, to pay amounts withheld to
11the State Disbursement Unit within 7 business days after the
12date the amount would have been paid or credited to the obligor
13creates a presumption that the payor knowingly failed to pay
14over the amounts. This penalty may be collected in a civil
15action which may be brought against the payor in favor of the
16obligee or public office. An action to collect the penalty may
17not be brought more than one year after the date of the payor's
18alleged failure to withhold or pay income. A finding of a
19payor's nonperformance within the time required under this Act
20must be documented by a certified mail return receipt or a
21sheriff's or private process server's proof of service showing
22the date the income withholding notice was served on the payor.
23For purposes of this Act, a withheld amount shall be considered
24paid by a payor on the date it is mailed by the payor, or on the
25date an electronic funds transfer of the amount has been
26initiated by the payor, or on the date delivery of the amount



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1has been initiated by the payor. For each deduction, the payor
2shall provide the State Disbursement Unit, at the time of
3transmittal, with the date the amount would (but for the duty
4to withhold income) have been paid or credited to the obligor.
5    After June 30, 2000, every payor that has 250 or more
6employees shall use electronic funds transfer to pay all
7amounts withheld under this Section. During the year 2001 and
8during each year thereafter, every payor that has fewer than
9250 employees and that withheld income under this Section
10pursuant to 10 or more income withholding notices during
11December of the preceding year shall use electronic funds
12transfer to pay all amounts withheld under this Section.
13    Upon receipt of an income withholding notice requiring that
14a minor child be named as a beneficiary of a health insurance
15plan available through an employer or labor union or trade
16union, the employer or labor union or trade union shall
17immediately enroll the minor child as a beneficiary in the
18health insurance plan designated by the income withholding
19notice. The employer shall withhold any required premiums and
20pay over any amounts so withheld and any additional amounts the
21employer pays to the insurance carrier in a timely manner. The
22employer or labor union or trade union shall mail to the
23obligee, within 15 days of enrollment or upon request, notice
24of the date of coverage, information on the dependent coverage
25plan, and all forms necessary to obtain reimbursement for
26covered health expenses, such as would be made available to a



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1new employee. When an order for dependent coverage is in effect
2and the insurance coverage is terminated or changed for any
3reason, the employer or labor union or trade union shall notify
4the obligee within 10 days of the termination or change date
5along with notice of conversion privileges.
6    For withholding of income, the payor shall be entitled to
7receive a fee not to exceed $5 per month to be taken from the
8income to be paid to the obligor.
9    (b) Whenever the obligor is no longer receiving income from
10the payor, the payor shall return a copy of the income
11withholding notice to the obligee or public office and shall
12provide information for the purpose of enforcing this Act.
13    (c) Withholding of income under this Act shall be made
14without regard to any prior or subsequent garnishments,
15attachments, wage assignments, or any other claims of
16creditors. Withholding of income under this Act shall not be in
17excess of the maximum amounts permitted under the federal
18Consumer Credit Protection Act. The payor shall calculate all
19applicable deductions to a non-employee obligor's income as if
20the non-employee were an employee, whether or not the
21deductions are actually taken from the non-employee obligor's
22income. The amount withheld on the remaining balance of
23payments, paid or payable, to the non-employee shall not be in
24excess of the maximum amounts permitted under the federal
25Consumer Credit Protection Act. Income available for
26withholding shall be applied first to the current support



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1obligation, then to any premium required for employer, labor
2union, or trade union-related health insurance coverage
3ordered under the order for support, and then to payments
4required on past-due support obligations. If there is
5insufficient available income remaining to pay the full amount
6of the required health insurance premium after withholding of
7income for the current support obligation, then the remaining
8available income shall be applied to payments required on
9past-due support obligations. If the payor has been served with
10more than one income withholding notice pertaining to the same
11obligor, the payor shall allocate income available for
12withholding on a proportionate share basis, giving priority to
13current support payments. A payor who complies with an income
14withholding notice that is regular on its face shall not be
15subject to civil liability with respect to any individual, any
16agency, or any creditor of the obligor for conduct in
17compliance with the notice.
18    (d) No payor shall discharge, discipline, refuse to hire or
19otherwise penalize any obligor because of the duty to withhold
21(Source: P.A. 96-53, eff. 1-1-10; 97-994, eff. 8-17-12.)