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| 1 | AN ACT concerning public aid.
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| 2 | Be it enacted by the People of the State of Illinois,
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| 3 | represented in the General Assembly:
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| 4 | Section 5. The Illinois Public Aid Code is amended by | ||||||
| 5 | changing Section 10-17.12 as follows: | ||||||
| 6 | (305 ILCS 5/10-17.12) | ||||||
| 7 | Sec. 10-17.12. Compromise of assigned child support | ||||||
| 8 | arrearages and interest. | ||||||
| 9 | (a) The Department of Healthcare and Family Services may | ||||||
| 10 | provide by rule for compromise of debt owed to the State in the | ||||||
| 11 | form of child support arrearages and interest accrued on child | ||||||
| 12 | support arrearages assigned to the State under Section 10-1. | ||||||
| 13 | The rule shall establish the circumstances under which such | ||||||
| 14 | obligations may be compromised, with due regard for the payment | ||||||
| 15 | ability of low-income obligors and the importance of | ||||||
| 16 | encouraging payment of current child support obligations. The | ||||||
| 17 | rule shall provide that assigned obligations shall be | ||||||
| 18 | compromised only in exchange for regular payment of support | ||||||
| 19 | owed to the family and shall require that obligors considered | ||||||
| 20 | for debt compromise demonstrate inability to pay during the | ||||||
| 21 | time the assigned obligation accumulated. The rule shall | ||||||
| 22 | provide for nullification of any compromise agreement and the | ||||||
| 23 | prohibition of any future compromise agreement if the obligor | ||||||
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| 1 | fails to adhere to the compromise agreement. In addition, the | ||||||
| 2 | rule shall establish debt compromise criteria calculated to | ||||||
| 3 | maximize positive effects on families and the level of federal | ||||||
| 4 | incentive payments payable to the State under Title IV, Part D | ||||||
| 5 | of the Social Security Act and regulations promulgated | ||||||
| 6 | thereunder.
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| 7 | (b) The Department may compromise the debt owed by | ||||||
| 8 | incarcerated individuals to the State in the form of child | ||||||
| 9 | support interest accrued on child support arrearages assigned | ||||||
| 10 | to the State under Section 10-1. Such obligations may be | ||||||
| 11 | compromised, with due regard for the payment ability of | ||||||
| 12 | low-income obligors and the importance of encouraging payment | ||||||
| 13 | of current child support obligations. Assigned obligations | ||||||
| 14 | shall be compromised only upon request of an incarcerated | ||||||
| 15 | individual and only upon proof of incarceration and the length | ||||||
| 16 | thereof. Interest owed to the State will only be compromised | ||||||
| 17 | for the period in which the individual is actually | ||||||
| 18 | incarcerated. The interest debt compromise shall be | ||||||
| 19 | implemented to maximize positive effects on families and the | ||||||
| 20 | level of federal incentive payments payable to the State under | ||||||
| 21 | Title IV, Part D of the Social Security Act and regulations | ||||||
| 22 | promulgated thereunder. | ||||||
| 23 | (Source: P.A. 94-971, eff. 1-1-07.)
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