Full Text of HB4393 93rd General Assembly
HB4393enr 93RD GENERAL ASSEMBLY
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HB4393 Enrolled |
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LRB093 17919 AMC 43602 b |
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| AN ACT concerning professional regulation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Collection Agency Act is amended by changing | 5 |
| Section 2.04 as follows:
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| (225 ILCS 425/2.04) (from Ch. 111, par. 2005.1)
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| (Section scheduled to be repealed on January 1, 2006)
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| Sec. 2.04. Child support indebtedness.
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| (a) Persons, associations, partnerships, or corporations | 10 |
| engaged in the
business of collecting child support | 11 |
| indebtedness owing under a court order
as provided under the | 12 |
| Illinois Public Aid Code, the Illinois Marriage and
Dissolution | 13 |
| of Marriage Act, the Non-Support of Spouse and Children Act,
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| the Non-Support Punishment Act, the Illinois Parentage Act of | 15 |
| 1984, or
similar laws of other states
are not
restricted (i) in | 16 |
| the frequency of contact with an obligor who is in arrears,
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| whether by phone, mail, or other means, (ii) from contacting | 18 |
| the employer of an
obligor who is in arrears, (iii) from | 19 |
| publishing or threatening to publish a
list of obligors in | 20 |
| arrears, (iv) from disclosing or threatening to disclose an
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| arrearage that the obligor disputes, but for which a verified | 22 |
| notice of
delinquency has been served under the Income | 23 |
| Withholding for Support Act (or
any of its predecessors, | 24 |
| Section 10-16.2 of the Illinois Public Aid
Code, Section 706.1 | 25 |
| of the Illinois Marriage and Dissolution of Marriage Act,
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| Section 4.1 of the Non-Support of Spouse and Children Act, | 27 |
| Section 26.1 of the
Revised Uniform Reciprocal Enforcement of | 28 |
| Support Act, or Section 20 of the
Illinois Parentage Act of | 29 |
| 1984), or (v) from engaging in conduct that would
not
cause a | 30 |
| reasonable person mental or physical illness. For purposes of | 31 |
| this
subsection, "obligor" means an individual who owes a duty | 32 |
| to make periodic
payments, under a court order, for the support |
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HB4393 Enrolled |
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LRB093 17919 AMC 43602 b |
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| of a child. "Arrearage" means
the total amount of an obligor's | 2 |
| unpaid child support obligations.
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| (a-5) A collection agency may not impose a fee or charge, | 4 |
| including costs, for any child support payments collected | 5 |
| through the efforts of a federal, State, or local government | 6 |
| agency, including but not limited to child support collected | 7 |
| from federal or State tax refunds, unemployment benefits, or | 8 |
| Social Security benefits. | 9 |
| No collection agency that collects child support payments | 10 |
| shall (i) impose a charge or fee, including costs, for | 11 |
| collection of a current child support payment, (ii) fail to | 12 |
| apply collections to current support as specified in the order | 13 |
| for support before applying collection to arrears or other | 14 |
| amounts, or (iii) designate a current child support payment as | 15 |
| arrears or other amount owed. In all circumstances, the | 16 |
| collection agency shall turn over to the obligee all support | 17 |
| collected in a month up to the amount of current support | 18 |
| required to be paid for that month. | 19 |
| As to any fees or charges, including costs, retained by the | 20 |
| collection agency, that agency shall provide documentation to | 21 |
| the obligee demonstrating that the child support payments | 22 |
| resulted from the actions of the agency. | 23 |
| After collection of the total amount or arrearage, | 24 |
| including statutory interest, due as of the date of execution | 25 |
| of the collection contract, no further fees may be charged. | 26 |
| (a-10) The Department of Professional Regulation shall | 27 |
| determine a fee rate of not less than 25% but not greater than | 28 |
| 35%, based upon presentation by the licensees as to costs to | 29 |
| provide the service and a fair rate of return. This rate shall | 30 |
| be established by administrative rule.
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| Without prejudice to the determination by the Department of | 32 |
| the appropriate rate through administrative rule, a collection | 33 |
| agency shall impose a fee of not more than 29% of the amount of | 34 |
| child support actually collected by the collection agency | 35 |
| subject to the provisions of subsection (a-5). This interim | 36 |
| rate is based upon the March 2002 General Account Office report |
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LRB093 17919 AMC 43602 b |
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| "Child Support Enforcement", GAO-02-349. This rate shall apply | 2 |
| until a fee rate is established by administrative rule.
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| (b) The Department shall adopt rules necessary to | 4 |
| administer and enforce
the provisions of this Section.
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| (Source: P.A. 90-673, eff. 1-1-99; 91-613, eff. 10-1-99.)
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| Section 99. Effective date. This Act takes effect upon | 7 |
| becoming law.
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