State of Illinois
91st General Assembly
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Public Act 91-0397

SB469 Enrolled                                 LRB9102759SMdv

    AN ACT regarding interest on support obligations.

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

    Section  5.   The  Illinois Public Aid Code is amended by
adding Section 10-16.5 as follows:

    (305 ILCS 5/10-16.5 new)
    Sec.  10-16.5.   Interest  on  support  obligations.    A
support  obligation,  or any portion of a support obligation,
which becomes due and remains unpaid  for  30  days  or  more
shall accrue interest at the rate of 9% per annum.

    Section  10.   The  Illinois  Marriage and Dissolution of
Marriage Act is amended by changing Section 505 as follows:

    (750 ILCS 5/505) (from Ch. 40, par. 505)
    Sec. 505.  Child support; contempt; penalties.
    (a)  In a proceeding for dissolution of  marriage,  legal
separation,   declaration   of   invalidity  of  marriage,  a
proceeding for child support  following  dissolution  of  the
marriage  by  a court which lacked personal jurisdiction over
the  absent  spouse,  a  proceeding  for  modification  of  a
previous order for child support under Section  510  of  this
Act, or any proceeding authorized under Section 501 or 601 of
this  Act, the court may order either or both parents owing a
duty of support to a child of the marriage to pay  an  amount
reasonable  and  necessary for his support, without regard to
marital misconduct. The duty of  support   owed  to  a  minor
child  includes  the obligation to provide for the reasonable
and necessary physical, mental and emotional health needs  of
the child.
         (1)  The Court shall determine the minimum amount of
    support by using the following guidelines:
      Number of Children       Percent of Supporting Party's
                                         Net Income
              1                             20%
              2                             25%
              3                             32%
              4                             40%
              5                             45%
          6 or more                         50%
         (2)  The  above  guidelines shall be applied in each
    case unless the court makes a finding that application of
    the guidelines would be inappropriate, after  considering
    the  best  interests  of  the  child in light of evidence
    including but not limited to one or more of the following
    relevant factors:
              (a)  the financial resources and needs  of  the
         child;
              (b)  the  financial  resources and needs of the
         custodial parent;
              (c)  the standard of  living  the  child  would
         have enjoyed had the marriage not been dissolved;
              (d)  the  physical  and  emotional condition of
         the child, and his educational needs; and
              (e)  the financial resources and needs  of  the
         non-custodial parent.
         If  the  court  deviates  from  the  guidelines, the
    court's finding shall state the amount  of  support  that
    would   have  been  required  under  the  guidelines,  if
    determinable.  The court  shall  include  the  reason  or
    reasons for the variance from the guidelines.
         (3)  "Net  income"  is  defined  as the total of all
    income from all sources, minus the following deductions:
              (a)  Federal income  tax  (properly  calculated
         withholding or estimated payments);
              (b)  State   income  tax  (properly  calculated
         withholding or estimated payments);
              (c)  Social Security (FICA payments);
              (d)  Mandatory     retirement     contributions
         required by law or as a condition of employment;
              (e)  Union dues;
              (f)  Dependent          and          individual
         health/hospitalization insurance premiums;
              (g)  Prior   obligations    of    support    or
         maintenance actually paid pursuant to a court order;
              (h)  Expenditures  for  repayment of debts that
         represent reasonable and necessary expenses for  the
         production of income, medical expenditures necessary
         to  preserve life or health, reasonable expenditures
         for the benefit of the child and the  other  parent,
         exclusive  of  gifts.   The  court  shall reduce net
         income in determining the minimum amount of  support
         to be ordered only for the period that such payments
         are   due   and  shall  enter  an  order  containing
         provisions for its self-executing modification  upon
         termination of such payment period.
         (4)  In  cases  where  the  court order provides for
    health/hospitalization  insurance  coverage  pursuant  to
    Section  505.2  of  this  Act,  the  premiums  for   that
    insurance,  or that portion of the premiums for which the
    supporting party is responsible in the case of  insurance
    provided  through  an  employer's  health  insurance plan
    where the employer pays a portion of the premiums,  shall
    be  subtracted from net income in determining the minimum
    amount of support to be ordered.
         (4.5)  In a proceeding for child  support  following
    dissolution  of  the  marriage  by  a  court  that lacked
    personal jurisdiction over  the  absent  spouse,  and  in
    which  the  court is requiring payment of support for the
    period before the date an order for  current  support  is
    entered,  there  is  a  rebuttable  presumption  that the
    supporting party's net income for the  prior  period  was
    the  same  as his or her net income at the time the order
    for current support is entered.
         (5)  If the net income cannot be determined  because
    of  default  or  any  other reason, the court shall order
    support  in  an  amount  considered  reasonable  in   the
    particular  case.   The  final  order  in all cases shall
    state the support level in dollar amounts.
    (b)  Failure of either parent to comply with an order  to
pay  support  shall  be  punishable  as  in  other  cases  of
contempt.  In addition to other penalties provided by law the
Court may, after finding the parent guilty of contempt, order
that the parent be:
         (1)  placed  on  probation  with  such conditions of
    probation as the Court deems advisable;
         (2)  sentenced to periodic imprisonment for a period
    not to exceed 6 months; provided, however, that the Court
    may permit the parent to be released for periods of  time
    during the day or night to:
              (A)  work; or
              (B)  conduct  a business or other self-employed
         occupation.
    The Court may further  order  any  part  or  all  of  the
earnings   of   a   parent  during  a  sentence  of  periodic
imprisonment paid to the Clerk of the Circuit Court or to the
parent having custody or to the guardian  having  custody  of
the minor children of the sentenced parent for the support of
said minor children until further order of the Court.
    If  there is a unity of interest and ownership sufficient
to render no financial  separation  between  a  non-custodial
parent  and another person or persons or business entity, the
court may pierce the ownership veil of the  person,  persons,
or  business  entity  to discover assets of the non-custodial
parent held in the name of that  person,  those  persons,  or
that  business  entity.    The  following  circumstances  are
sufficient  to  authorize  a  court to order discovery of the
assets of a person, persons, or business entity and to compel
the application of any discovered assets  toward  payment  on
the judgment for support:
         (1)  the   non-custodial   parent  and  the  person,
    persons, or business entity maintain records together.
         (2)  the  non-custodial  parent  and   the   person,
    persons,  or  business  entity  fail  to maintain an arms
    length relationship between themselves with regard to any
    assets.
         (3)  the non-custodial parent  transfers  assets  to
    the  person,  persons, or business entity with the intent
    to perpetrate a fraud on the custodial parent.
    With respect to assets which are real property, no  order
entered  under this paragraph shall affect the rights of bona
fide purchasers, mortgagees,  judgment  creditors,  or  other
lien  holders  who   acquire  their interests in the property
prior to the time a notice of lis  pendens  pursuant  to  the
Code  of  Civil Procedure or a copy of the order is placed of
record in the office of the recorder of deeds for the  county
in which the real property is located.
    The  court may also order in cases where the parent is 90
days or more delinquent in payment of  support  or  has  been
adjudicated  in  arrears  in  an  amount  equal  to  90  days
obligation  or  more,  that  the  parent's  Illinois  driving
privileges  be  suspended until the court determines that the
parent is in compliance with the order of support. The  court
may  also  order that the parent be issued a family financial
responsibility  driving  permit  that  would  allow   limited
driving  privileges  for  employment  and medical purposes in
accordance with Section 7-702.1 of the Illinois Vehicle Code.
The clerk of  the  circuit  court  shall  certify  the  order
suspending  the  driving privileges of the parent or granting
the issuance of a  family  financial  responsibility  driving
permit  to  the Secretary of State on forms prescribed by the
Secretary. Upon receipt of the authenticated  documents,  the
Secretary   of  State  shall  suspend  the  parent's  driving
privileges until further order of the  court  and  shall,  if
ordered  by  the  court, subject to the provisions of Section
7-702.1  of  the  Illinois  Vehicle  Code,  issue  a   family
financial responsibility driving permit to the parent.
    In  addition  to  the penalties or punishment that may be
imposed  under  this  Section,  any  person   whose   conduct
constitutes  a  violation  of Section 1 of the Non-Support of
Spouse and Children Act may be prosecuted under that Section,
and a person convicted under that Section may be sentenced in
accordance with that Section.  The sentence may  include  but
need  not be limited to a requirement that the person perform
community service under subsection (b)  of  that  Section  or
participate  in  a  work alternative program under subsection
(c) of that Section.    A  person  may  not  be  required  to
participate  in  a  work alternative program under subsection
(c) of that Section if the person is currently  participating
in a work program pursuant to Section 505.1 of this Act.
    A  support  obligation,  or  any  portion  of  a  support
obligation,  which becomes due and remains unpaid for 30 days
or more shall accrue interest at the rate of 9% per annum.
    (c)  A one-time charge  of  20%  is  imposable  upon  the
amount  of  past-due child support owed on July 1, 1988 which
has accrued under a support order entered by the court.   The
charge  shall be imposed in accordance with the provisions of
Section 10-21 of the Illinois Public Aid Code  and  shall  be
enforced by the court upon petition.
    (d)  Any  new  or  existing  support order entered by the
court under this Section shall be deemed to be  a  series  of
judgments   against  the  person  obligated  to  pay  support
thereunder, each such judgment to be in the  amount  of  each
payment  or  installment of support and each such judgment to
be deemed entered as of the date the corresponding payment or
installment becomes due under the terms of the support order.
Each such judgment shall have  the  full  force,  effect  and
attributes of any other judgment of this State, including the
ability  to  be  enforced.  A lien arises by operation of law
against the real and personal property  of  the  noncustodial
parent  for  each  installment of overdue support owed by the
noncustodial parent.
    (e)  When child support is to be paid through  the  clerk
of  the  court  in a county of 1,000,000 inhabitants or less,
the order shall direct the obligor to pay to  the  clerk,  in
addition  to  the child support payments, all fees imposed by
the county board under paragraph (3)  of  subsection  (u)  of
Section  27.1  of  the  Clerks of Courts Act.  Unless paid in
cash or pursuant to an order for withholding, the payment  of
the  fee  shall  be by a separate instrument from the support
payment and shall be made to the order of the Clerk.
    (f)  All orders for support, when  entered  or  modified,
shall include a provision requiring the obligor to notify the
court  and,  in cases in which a party is receiving child and
spouse services under Article X of the  Illinois  Public  Aid
Code,  the  Illinois Department of Public Aid, within 7 days,
(i) of the name and  address  of  any  new  employer  of  the
obligor,  (ii)  whether  the  obligor  has  access  to health
insurance  coverage  through  the  employer  or  other  group
coverage and, if so, the policy name and number and the names
of persons covered under the policy, and  (iii)  of  any  new
residential  or  mailing  address  or telephone number of the
non-custodial parent.  In any subsequent action to enforce  a
support  order,  upon  a  sufficient  showing that a diligent
effort has  been  made  to  ascertain  the  location  of  the
non-custodial  parent,  service  of  process  or provision of
notice necessary in the case may be made at  the  last  known
address  of  the non-custodial parent in any manner expressly
provided by the Code of Civil Procedure or  this  Act,  which
service shall be sufficient for purposes of due process.
    (g)  An  order  for support shall include a date on which
the current support obligation terminates.   The  termination
date  shall  be  no  earlier than the date on which the child
covered by the order will attain the age of  majority  or  is
otherwise emancipated. The order for support shall state that
the termination date does not apply to any arrearage that may
remain unpaid on that date.  Nothing in this subsection shall
be construed to prevent the court from modifying the order.
    (h)  An  order entered under this Section shall include a
provision requiring the obligor to report to the obligee  and
to  the  clerk  of court within 10 days each time the obligor
obtains  new  employment,  and  each   time   the   obligor's
employment is terminated for any reason.  The report shall be
in  writing and shall, in the case of new employment, include
the name and address of the new employer.  Failure to  report
new  employment  or the termination of current employment, if
coupled with nonpayment of support for a period in excess  of
60  days,  is  indirect  criminal  contempt.  For any obligor
arrested for failure to report new employment bond  shall  be
set  in the amount of the child support that should have been
paid during the period of unreported  employment.   An  order
entered  under  this  Section  shall also include a provision
requiring the obligor and  obligee  parents  to  advise  each
other  of  a  change in residence within 5 days of the change
except when the court finds that  the  physical,  mental,  or
emotional  health  of  a  party  or that of a minor child, or
both, would be seriously  endangered  by  disclosure  of  the
party's address.
(Source:  P.A.  89-88,  eff.  6-30-95;  89-92,  eff.  7-1-96;
89-626, eff. 8-9-96; 90-18, eff. 7-1-97; 90-476, eff. 1-1-98;
90-539,  eff.  6-1-98;  90-655,  eff.  7-30-98;  90-733, eff.
8-11-98.)

    Section 15.  The Non-Support of Spouse and  Children  Act
is amended by adding Section 4.3 as follows:

    (750 ILCS 15/4.3 new)
    Sec.  4.3.   Interest  on support obligations.  A support
obligation, or any portion of  a  support  obligation,  which
becomes  due  and  remains  unpaid  for 30 days or more shall
accrue interest at the rate of 9% per annum.

    Section 20.   The  Illinois  Parentage  Act  of  1984  is
amended by adding Section 20.7 as follows:

    (750 ILCS 45/20.7 new)
    Sec.  20.7.   Interest on support obligations.  A support
obligation, or any portion of  a  support  obligation,  which
becomes  due  and  remains  unpaid  for 30 days or more shall
accrue interest at the rate of 9% per annum.

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