Public Act 93-0294

SB1503 Enrolled                      LRB093 03861 LCB 11544 b

    AN ACT concerning child support.

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

    Section  5.   The  Income  Withholding for Support Act is
amended by changing Section 35 as follows:

    (750 ILCS 28/35)
    Sec. 35.  Duties of payor.
    (a)  It shall be the duty  of  any  payor  who  has  been
served  with  an  income withholding notice to deduct and pay
over income as provided in this  Section.   The  payor  shall
deduct  the  amount  designated  in  the  income  withholding
notice,  as  supplemented  by any notice provided pursuant to
subsection (f) of Section 45, beginning  no  later  than  the
next  payment of income which is payable or creditable to the
obligor that occurs 14 days following  the  date  the  income
withholding  notice  was  mailed,  sent by facsimile or other
electronic means, or  placed  for  personal  delivery  to  or
service  on  the  payor.   The  payor may combine all amounts
withheld for the benefit of an obligee or public office  into
a  single  payment and transmit the payment with a listing of
obligors from whom withholding has been effected.  The  payor
shall  pay the amount withheld to the State Disbursement Unit
within 7 business days after the date the amount  would  (but
for  the  duty to withhold income) have been paid or credited
to the obligor. If the payor knowingly fails to withhold  the
amount  designated in the income withholding notice or to pay
any amount withheld to the State Disbursement Unit  within  7
business  days after the date the amount would have been paid
or credited to the  obligor,  then  the  payor  shall  pay  a
penalty  of  $100  for  each  day  that  the  withheld amount
designated in the income withholding notice (whether  or  not
withheld  by the payor) is not paid to the State Disbursement
Unit after the period of 7 business days  has  expired.   The
failure of a payor, on more than one occasion, to pay amounts
withheld  to  the  State  Disbursement Unit within 7 business
days after the date  the  amount  would  have  been  paid  or
credited  to the obligor creates a presumption that the payor
knowingly failed to pay over the amounts.  This  penalty  may
be  collected  in a civil action which may be brought against
the payor in favor of the obligee or public office. A finding
of a payor's nonperformance within the  time  required  under
this  Act  must  be  documented  by  a  certified mail return
receipt showing the date the income  withholding  notice  was
served  on  the  payor.  For purposes of this Act, a withheld
amount shall be considered paid by a payor on the date it  is
mailed  by  the  payor,  or  on  the date an electronic funds
transfer of the amount has been initiated by the payor, or on
the date delivery of the amount has  been  initiated  by  the
payor.  For each deduction, the payor shall provide the State
Disbursement Unit, at the time of transmittal, with the  date
the  amount  would (but for the duty to withhold income) have
been paid or credited to the obligor.
    After June 30, 2000, every payor that  has  250  or  more
employees  shall  use  electronic  funds  transfer to pay all
amounts withheld under this Section. During the year 2001 and
during each year thereafter, every payor that has fewer  than
250  employees  and  that  withheld income under this Section
pursuant to 10 or  more  income  withholding  notices  during
December  of  the  preceding  year shall use electronic funds
transfer to pay all amounts withheld under this Section.
    Upon receipt of an income  withholding  notice  requiring
that  a  minor  child  be  named as a beneficiary of a health
insurance plan available through an employer or  labor  union
or  trade  union,  the employer or labor union or trade union
shall immediately enroll the minor child as a beneficiary  in
the   health   insurance   plan   designated  by  the  income
withholding notice. The employer shall withhold any  required
premiums  and  pay  over  any  amounts  so  withheld  and any
additional amounts the employer pays to the insurance carrier
in a timely manner.  The employer or  labor  union  or  trade
union shall mail to the obligee, within 15 days of enrollment
or  upon request, notice of the date of coverage, information
on the dependent coverage plan, and all  forms  necessary  to
obtain  reimbursement  for  covered  health expenses, such as
would be made available to a new employee. When an order  for
dependent coverage is in effect and the insurance coverage is
terminated  or  changed for any reason, the employer or labor
union or trade union shall notify the obligee within 10  days
of  the  termination  or  change  date  along  with notice of
conversion privileges.
    For withholding of income, the payor shall be entitled to
receive a fee not to exceed $5 per month to be taken from the
income to be paid to the obligor.
    (b)  Whenever the obligor is no longer  receiving  income
from  the  payor, the payor shall return a copy of the income
withholding notice to the obligee or public office and  shall
provide information for the purpose of enforcing this Act.
    (c)  Withholding  of  income under this Act shall be made
without regard  to  any  prior  or  subsequent  garnishments,
attachments,   wage  assignments,  or  any  other  claims  of
creditors.  Withholding of income under this Act shall not be
in excess of the maximum amounts permitted under the  federal
Consumer   Credit   Protection   Act.  Income  available  for
withholding shall be applied first  to  the  current  support
obligation,  then to any premium required for employer, labor
union,  or  trade  union-related  health  insurance  coverage
ordered under the order for support,  and  then  to  payments
required  on  past-due  support  obligations.   If  there  is
insufficient  available  income  remaining  to  pay  the full
amount  of  the  required  health  insurance  premium   after
withholding  of  income  for  the current support obligation,
then the remaining  available  income  shall  be  applied  to
payments  required  on  past-due  support obligations. If the
payor has been served with more than one  income  withholding
notice  pertaining  to  the  same  obligor,  the  payor shall
allocate income available for withholding on a  proportionate
share  basis, giving priority to current support payments.  A
payor who complies with an income withholding notice that  is
regular  on  its face shall not be subject to civil liability
with respect to any individual, any agency, or  any  creditor
of the obligor for conduct in compliance with the notice.
    (d)  No payor shall discharge, discipline, refuse to hire
or  otherwise  penalize  any  obligor  because of the duty to
withhold income.
(Source: P.A. 91-212,  eff.  7-20-99;  91-677,  eff.  1-5-00;
92-590, eff. 7-1-02.)