HB3252 EngrossedLRB097 05556 AJO 45617 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 Section 35 as follows:
 
6    (750 ILCS 28/35)
7    Sec. 35. Duties of payor.
8    (a) It shall be the duty of any payor who has been served
9with an income withholding notice to deduct and pay over income
10as provided in this Section. The payor shall deduct the amount
11designated in the income withholding notice, as supplemented by
12any notice provided pursuant to subsection (f) of Section 45,
13beginning no later than the next payment of income which is
14payable or creditable to the obligor that occurs 14 days
15following the date the income withholding notice was mailed,
16sent by facsimile or other electronic means, or placed for
17personal delivery to or service on the payor. The payor may
18combine all amounts withheld for the benefit of an obligee or
19public office into a single payment and transmit the payment
20with a listing of obligors from whom withholding has been
21effected. The payor shall pay the amount withheld to the State
22Disbursement Unit within 7 business days after the date the
23amount would (but for the duty to withhold income) have been

 

 

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

 

 

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1the amount would (but for the duty to withhold income) have
2been paid or credited to the obligor.
3    After June 30, 2000, every payor that has 250 or more
4employees shall use electronic funds transfer to pay all
5amounts withheld under this Section. During the year 2001 and
6during each year thereafter, every payor that has fewer than
7250 employees and that withheld income under this Section
8pursuant to 10 or more income withholding notices during
9December of the preceding year shall use electronic funds
10transfer to pay all amounts withheld under this Section.
11    Upon receipt of an income withholding notice requiring that
12a minor child be named as a beneficiary of a health insurance
13plan available through an employer or labor union or trade
14union, the employer or labor union or trade union shall
15immediately enroll the minor child as a beneficiary in the
16health insurance plan designated by the income withholding
17notice. The employer shall withhold any required premiums and
18pay over any amounts so withheld and any additional amounts the
19employer pays to the insurance carrier in a timely manner. The
20employer or labor union or trade union shall mail to the
21obligee, within 15 days of enrollment or upon request, notice
22of the date of coverage, information on the dependent coverage
23plan, and all forms necessary to obtain reimbursement for
24covered health expenses, such as would be made available to a
25new employee. When an order for dependent coverage is in effect
26and the insurance coverage is terminated or changed for any

 

 

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1reason, the employer or labor union or trade union shall notify
2the obligee within 10 days of the termination or change date
3along with notice of conversion privileges.
4    For withholding of income, the payor shall be entitled to
5receive a fee not to exceed $5 per month to be taken from the
6income to be paid to the obligor.
7    (b) Whenever the obligor is no longer receiving income from
8the payor, the payor shall return a copy of the income
9withholding notice to the obligee or public office and shall
10provide information for the purpose of enforcing this Act.
11    (c) Withholding of income under this Act shall be made
12without regard to any prior or subsequent garnishments,
13attachments, wage assignments, or any other claims of
14creditors. Withholding of income under this Act shall not be in
15excess of the maximum amounts permitted under the federal
16Consumer Credit Protection Act. Income available for
17withholding shall be applied first to the current support
18obligation, then to any premium required for employer, labor
19union, or trade union-related health insurance coverage
20ordered under the order for support, and then to payments
21required on past-due support obligations. If there is
22insufficient available income remaining to pay the full amount
23of the required health insurance premium after withholding of
24income for the current support obligation, then the remaining
25available income shall be applied to payments required on
26past-due support obligations. If the payor has been served with

 

 

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1more than one income withholding notice pertaining to the same
2obligor, the payor shall allocate income available for
3withholding on a proportionate share basis, giving priority to
4current support payments. A payor who complies with an income
5withholding notice that is regular on its face shall not be
6subject to civil liability with respect to any individual, any
7agency, or any creditor of the obligor for conduct in
8compliance with the notice.
9    (d) No payor shall discharge, discipline, refuse to hire or
10otherwise penalize any obligor because of the duty to withhold
11income.
12(Source: P.A. 96-53, eff. 1-1-10.)