Full Text of HB3683 99th General Assembly
HB3683 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB3683 Introduced , by Rep. Litesa E. Wallace SYNOPSIS AS INTRODUCED: |
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750 ILCS 28/35 |
| 750 ILCS 28/37 new | |
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Amends the Income Withholding for Support Act. Provides that if a payor knowingly fails to withhold the amount designated
in an income
withholding notice, then the payor shall pay a penalty of $200 (instead of $100) for each day that the
amount designated in the income withholding notice is not paid to the State Disbursement Unit after
the period of
7 business days has expired. Increases the total penalty to $20,000 from $10,000. Creates the Family Support Revolving Fund and provides that the additional penalty amount shall be paid into the Family Support Revolving Fund. Provides that the fund shall be held by the Department of Healthcare and Family Services and shall be used to the extent determined necessary by the Department to pay for aid to families of children who are owed child support. Provides that expenditures from the Fund shall be made in accordance with Department rules and directs the Department to adopt rules to implement the new provisions. Contains other provisions governing the use and investment of moneys in the Fund.
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| | A BILL FOR |
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| 1 | | AN ACT concerning civil law.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Income Withholding for Support Act is | 5 | | amended by changing Section 35 and by adding Section 37 as | 6 | | follows:
| 7 | | (750 ILCS 28/35)
| 8 | | Sec. 35. Duties of payor.
| 9 | | (a) It shall be the duty of any payor who has
been served | 10 | | with an income withholding notice to deduct and pay over income | 11 | | as
provided
in
this Section. The payor shall deduct the amount | 12 | | designated in the
income withholding notice, as supplemented by | 13 | | any
notice provided pursuant to subsection (f) of Section 45,
| 14 | | beginning
no later than the next payment of income which is | 15 | | payable or creditable to
the obligor
that occurs 14 days | 16 | | following the date the income withholding notice was
mailed, | 17 | | sent by facsimile or other electronic
means, or placed for | 18 | | personal delivery to or service on the
payor. The payor may | 19 | | combine
all amounts withheld for the benefit of an obligee or | 20 | | public office into a
single payment and transmit the payment | 21 | | with a listing of obligors from
whom withholding has been | 22 | | effected. The payor shall pay the amount withheld
to the State | 23 | | Disbursement Unit within
7 business days after the date the
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| 1 | | amount would (but for the duty to withhold income) have been | 2 | | paid or credited
to the obligor. If the payor knowingly fails | 3 | | to withhold the amount designated
in the income
withholding | 4 | | notice or to pay any amount withheld to the
State
Disbursement | 5 | | Unit within
7 business days after the date the amount would | 6 | | have been paid or credited to
the
obligor, then the payor shall | 7 | | pay a penalty of $200 $100 for each day that the
amount | 8 | | designated in the income withholding notice (whether or
not | 9 | | withheld by the payor) is not paid to the State Disbursement | 10 | | Unit after
the period of
7 business days has expired. The total | 11 | | penalty for a payor's failure, on one occasion, to withhold or | 12 | | pay to the State Disbursement Unit an amount designated in the
| 13 | | income withholding notice may not exceed $20,000 $10,000 . The | 14 | | failure of a payor, on
more than one
occasion, to pay amounts | 15 | | withheld to the State Disbursement Unit within
7 business days | 16 | | after the date the amount would have been paid or credited to
| 17 | | the
obligor creates a
presumption that the payor knowingly | 18 | | failed to pay over the amounts. This
penalty may be collected | 19 | | in a civil action which may be brought against the
payor in | 20 | | favor of the obligee or public office. An action to collect the | 21 | | penalty may not be brought more than one year after the date of | 22 | | the payor's alleged failure to withhold or pay income.
A | 23 | | finding of a payor's nonperformance within the time required | 24 | | under
this Act must be documented by a certified mail return | 25 | | receipt
or a sheriff's or private process server's proof of | 26 | | service showing the date
the income withholding notice was |
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| 1 | | served on the payor.
For purposes of this Act,
a withheld
| 2 | | amount shall be considered paid by a payor on the date it is | 3 | | mailed by the
payor, or on the date an electronic funds | 4 | | transfer of the amount has been
initiated by the payor, or on | 5 | | the date delivery of the amount has been
initiated by the | 6 | | payor. For each deduction, the payor shall provide the
State | 7 | | Disbursement Unit, at the time of
transmittal, with the date
| 8 | | the amount would (but for the duty to withhold income) have | 9 | | been paid or
credited to the obligor.
| 10 | | After June 30, 2000, every payor that has 250 or more | 11 | | employees shall use
electronic funds transfer to pay all | 12 | | amounts withheld under this Section.
During the year
2001 and | 13 | | during each year thereafter, every payor that has fewer than | 14 | | 250
employees
and that
withheld income under this Section | 15 | | pursuant to 10 or more income withholding
notices
during | 16 | | December of the preceding year shall use electronic funds | 17 | | transfer to
pay all
amounts withheld under this Section.
| 18 | | Upon receipt of an income withholding notice requiring that | 19 | | a
minor child be named as a
beneficiary of a health insurance | 20 | | plan available through an employer or labor
union or trade | 21 | | union, the employer or labor union or trade union shall
| 22 | | immediately enroll the minor child as a beneficiary in the | 23 | | health insurance
plan designated by the income withholding | 24 | | notice. The
employer shall withhold any required
premiums and | 25 | | pay over any amounts so withheld and any additional amounts the
| 26 | | employer pays to the insurance carrier in a timely manner. The |
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| 1 | | employer or
labor union or trade union shall mail to the | 2 | | obligee, within 15 days of
enrollment or upon request, notice | 3 | | of the date of coverage, information on the
dependent coverage | 4 | | plan, and all forms necessary to obtain reimbursement for
| 5 | | covered health expenses, such as would be made available to a | 6 | | new employee.
When an order for dependent coverage is in effect | 7 | | and the insurance coverage is
terminated or changed for any | 8 | | reason, the employer or labor union or trade
union shall notify | 9 | | the obligee within 10 days of the termination or change date
| 10 | | along with notice of conversion privileges.
| 11 | | For withholding of income, the payor shall be entitled to | 12 | | receive a fee
not to exceed $5 per month to be taken
from
the | 13 | | income to be paid to the
obligor.
| 14 | | (b) Whenever the obligor is no longer receiving income from | 15 | | the payor,
the payor shall return a copy of the income | 16 | | withholding
notice to the obligee
or public office and shall | 17 | | provide information for the purpose of enforcing
this Act.
| 18 | | (c) Withholding of income under this Act shall be made | 19 | | without
regard
to any prior or subsequent garnishments, | 20 | | attachments, wage assignments,
or any other claims of | 21 | | creditors. Withholding of income
under this Act shall not be in | 22 | | excess of the maximum amounts
permitted under the federal | 23 | | Consumer Credit Protection Act.
Income available for | 24 | | withholding shall be applied first to the current
support | 25 | | obligation, then to any premium required for employer, labor | 26 | | union, or
trade union-related health insurance coverage |
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| 1 | | ordered under the order for
support, and then to payments | 2 | | required on past-due support obligations. If
there is | 3 | | insufficient available income remaining to pay the full amount | 4 | | of the
required health insurance premium after withholding of | 5 | | income for the current
support obligation, then the remaining | 6 | | available income shall be applied to
payments required on | 7 | | past-due support obligations.
If the payor has been served with | 8 | | more than one income
withholding notice
pertaining to the same | 9 | | obligor, the payor shall allocate income available
for | 10 | | withholding on a proportionate share basis, giving priority to | 11 | | current
support payments.
A payor who complies with an income | 12 | | withholding notice that is
regular on its
face shall not be | 13 | | subject to civil liability with respect to any individual,
any | 14 | | agency, or any creditor of the obligor for conduct in | 15 | | compliance with the
notice.
| 16 | | (d) No payor shall discharge, discipline, refuse to hire or | 17 | | otherwise
penalize any obligor because of the duty to withhold | 18 | | income. | 19 | | (e) Of the $200 per day penalty collected under subsection | 20 | | (a) of this Section, 50% shall be deposited into the Family | 21 | | Support Revolving Fund created under Section 37 of this Act.
| 22 | | (Source: P.A. 96-53, eff. 1-1-10; 97-994, eff. 8-17-12.)
| 23 | | (750 ILCS 28/37 new) | 24 | | Sec. 37. Family Support Revolving Fund. | 25 | | (a) There is created a
revolving fund to be known as the |
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| 1 | | Family Support Revolving Fund,
to be held by the Department of | 2 | | Healthcare and Family Services. | 3 | | (b) The Family Support Revolving Fund shall be used to the | 4 | | extent determined necessary by the Department to pay for aid to | 5 | | families of children who are owed child support. Local accounts | 6 | | for such purposes may be established by the Department. | 7 | | (c) Expenditures from the Family Support Revolving Fund | 8 | | shall be made in accordance with Department rules. Funding of | 9 | | the Family Support Revolving Fund shall be from penalties | 10 | | collected under subsection (a) of Section 35 of this Act. | 11 | | (d) Disbursements from the Family Support Revolving Fund | 12 | | shall be made as determined by the Department or its designee. | 13 | | Funds in the Family Support Revolving Fund or the local | 14 | | accounts created under this Section that are not immediately | 15 | | required for expenditure may be invested in certificates of | 16 | | deposit or other interest bearing accounts. Any interest earned | 17 | | shall be deposited in the Family Support Revolving Fund. | 18 | | (f) The Department of Healthcare and Family Services shall | 19 | | adopt rules to implement this Section.
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