HB4310 93RD GENERAL ASSEMBLY

LRB093 18967 DRJ 44702 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB4310

Introduced 02/02/04, by Cynthia Soto

SYNOPSIS AS INTRODUCED:

205 ILCS 5/48.4
205 ILCS 105/1-6d
205 ILCS 205/7007
205 ILCS 305/43.1
205 ILCS 645/20
305 ILCS 5/10-16.7 new
750 ILCS 5/706.4 new
750 ILCS 16/22.5 new
750 ILCS 45/20.10 new

Amends the Illinois Banking Act, the Illinois Savings and Loan Act of 1985, the Savings Bank Act, the Illinois Credit Union Act, the Foreign Banking Office Act, the Illinois Public Aid Code, the Illinois Marriage and Dissolution of Marriage Act, the Non-Support Punishment Act, and the Illinois Parentage Act of 1984. Directs the Department of Public Aid to adopt a child support enforcement debit authorization form and notify banks and other financial institutions that it has done so. Provides that banks and other financial institutions must implement use of the child support enforcement debit authorization form within 30 days after the Department of Public Aid gives notice that it has adopted the form. Provides that if an obligor does not have an employer and has been ordered to make periodic payments of child support to the State Disbursement Unit, the obligor must authorize a bank or other financial institution at which the obligor maintains an account to debit his or her account periodically in an amount equal to the amount of child support required to be paid, using the form adopted by the Department of Public Aid. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning child support.

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

Section 5. The Illinois Banking Act is amended by changing Section 48.4 as follows:

(205 ILCS 5/48.4)

Sec. 48.4. Enforcement of Administrative liens for past-due child support.

(a) Any bank governed by this Act shall encumber or surrender accounts or assets held by the bank on behalf of any responsible relative who is subject to a child support lien, upon notice of the lien or levy of the Illinois Department of Public Aid or its successor agency pursuant to Section 10-25.5 of the Illinois Public Aid Code, or upon notice of interstate lien or levy from any other state's agency responsible for implementing the child support enforcement program set forth in Title IV, Part D of the Social Security Act.

(b) Within 30 days after receiving notice from the Department of Public Aid that the Department has adopted a child support enforcement debit authorization form as required under the Illinois Public Aid Code, each bank governed by this Act shall take all appropriate steps to implement the use of the form in relation to accounts held by the bank. Upon receiving from the Department of Public Aid a copy of a child support enforcement debit authorization form signed by an obligor, a bank holding an account on behalf of the obligor shall debit the account and transfer the debited amounts to the State Disbursement Unit according to the instructions in the child support enforcement debit authorization form.

(Source: P.A. 92-811, eff. 8-21-02.)

Section 10. The Illinois Savings and Loan Act of 1985 is amended by changing Section 1-6d as follows:

(205 ILCS 105/1-6d)

Sec. 1-6d. Enforcement of Administrative liens for past-due child support.

(a) Any association governed by this Act shall encumber or surrender accounts or assets held by the association on behalf of any responsible relative who is subject to a child support lien, upon notice of the lien or levy of the Illinois Department of Public Aid or its successor agency pursuant to Section 10-25.5 of the Illinois Public Aid Code, or upon notice of interstate lien or levy from any other state's agency responsible for implementing the child support enforcement program set forth in Title IV, Part D of the Social Security Act.

(b) Within 30 days after receiving notice from the Department of Public Aid that the Department has adopted a child support enforcement debit authorization form as required under the Illinois Public Aid Code, each association governed by this Act shall take all appropriate steps to implement the use of the form in relation to accounts held by the association. Upon receiving from the Department of Public Aid a copy of a child support enforcement debit authorization form signed by an obligor, an association holding an account on behalf of the obligor shall debit the account and transfer the debited amounts to the State Disbursement Unit according to the instructions in the child support enforcement debit authorization form.

(Source: P.A. 92-811, eff. 8-21-02.)

Section 15. The Savings Bank Act is amended by changing Section 7007 as follows:

(205 ILCS 205/7007)

Sec. 7007. Enforcement of Administrative liens for past-due child support.

(a) Any savings bank governed by this Act shall encumber or surrender accounts or assets held by the savings bank on behalf of any responsible relative who is subject to a child support lien, upon notice of the lien or levy of the Illinois Department of Public Aid or its successor agency pursuant to Section 10-25.5 of the Illinois Public Aid Code, or upon notice of interstate lien or levy from any other state's agency responsible for implementing the child support enforcement program set forth in Title IV, Part D of the Social Security Act.

(b) Within 30 days after receiving notice from the Department of Public Aid that the Department has adopted a child support enforcement debit authorization form as required under the Illinois Public Aid Code, each savings bank governed by this Act shall take all appropriate steps to implement the use of the form in relation to accounts held by the savings bank. Upon receiving from the Department of Public Aid a copy of a child support enforcement debit authorization form signed by an obligor, a savings bank holding an account on behalf of the obligor shall debit the account and transfer the debited amounts to the State Disbursement Unit according to the instructions in the child support enforcement debit authorization form.

(Source: P.A. 92-811, eff. 8-21-02.)

Section 20. The Illinois Credit Union Act is amended by changing Section 43.1 as follows:

(205 ILCS 305/43.1)

Sec. 43.1. Enforcement of Administrative liens for past-due child support.

(a) Any credit union governed by this Act shall encumber or surrender accounts or assets held by the credit union on behalf of any responsible relative who is subject to a child support lien, upon notice of the lien or levy of the Illinois Department of Public Aid or its successor agency pursuant to Section 10-25.5 of the Illinois Public Aid Code, or upon notice of interstate lien from any other state's agency responsible for implementing the child support enforcement program set forth in Title IV, Part D of the Social Security Act.

(b) Within 30 days after receiving notice from the Department of Public Aid that the Department has adopted a child support enforcement debit authorization form as required under the Illinois Public Aid Code, each credit union governed by this Act shall take all appropriate steps to implement the use of the form in relation to accounts held by the credit union. Upon receiving from the Department of Public Aid a copy of a child support enforcement debit authorization form signed by an obligor, a credit union holding an account on behalf of the obligor shall debit the account and transfer the debited amounts to the State Disbursement Unit according to the instructions in the child support enforcement debit authorization form.

(Source: P.A. 90-18, eff. 7-1-97.)

Section 25. The Foreign Banking Office Act is amended by changing Section 20 as follows:

(205 ILCS 645/20)

Sec. 20. Enforcement of Administrative liens for past-due child support.

(a) Any foreign banking corporation governed by this Act shall encumber or surrender accounts or assets held by the foreign banking corporation on behalf of any responsible relative who is subject to a child support lien, upon notice of the lien or levy of the Illinois Department of Public Aid or its successor agency pursuant to Section 10-25.5 of the Illinois Public Aid Code, or upon notice of interstate lien from any other state's agency responsible for implementing the child support enforcement program set forth in Title IV, Part D of the Social Security Act.

(b) Within 30 days after receiving notice from the Department of Public Aid that the Department has adopted a child support enforcement debit authorization form as required under the Illinois Public Aid Code, each foreign banking corporation governed by this Act shall take all appropriate steps to implement the use of the form in relation to accounts held by the corporation. Upon receiving from the Department of Public Aid a copy of a child support enforcement debit authorization form signed by an obligor, a foreign banking corporation holding an account on behalf of the obligor shall debit the account and transfer the debited amounts to the State Disbursement Unit according to the instructions in the child support enforcement debit authorization form.

(Source: P.A. 90-18, eff. 7-1-97; 90-655, eff. 7-30-98.)

Section 30. The Illinois Public Aid Code is amended by adding Section 10-16.7 as follows:

(305 ILCS 5/10-16.7 new)

Sec. 10-16.7. Child support enforcement debit authorization.

(a) In this Section, "financial institution" means any of the following:

(1) A bank governed by the Illinois Banking Act.

(2) A savings and loan association governed by the Illinois Savings and Loan Act of 1985.

(3) A savings bank governed by the Savings Bank Act.

(4) A credit union governed by the Illinois Credit Union Act.

(5) A foreign banking corporation governed by the Foreign Banking Office Act.

(b) The Department of Public Aid shall adopt a child support enforcement debit authorization form that, upon being signed by an obligor, authorizes a financial institution holding an account on the obligor's behalf to debit the obligor's account periodically in an amount equal to the amount of child support that the obligor is required to pay periodically and transfer that amount to the State Disbursement Unit. The form shall include instructions to the financial institution concerning the debiting of accounts held on behalf of obligors and the transfer of the debited amounts to the State Disbursement Unit. In adopting the form, the Department may consult with the Office of Banks and Real Estate and the Department of Financial Institutions. The Department must adopt the form within 6 months after the effective date of this amendatory Act of the 93rd General Assembly. Promptly after adopting the form, the Department must notify each financial institution conducting business in this State that the form has been adopted and is ready for use.

(c) If (i) an obligor has been ordered to make periodic payments of child support to the State Disbursement Unit pursuant to an administrative order issued by the Department of Public Aid under this Code or pursuant to an order issued by a court of competent jurisdiction and (ii) the obligor does not have an employer, as that term is defined in the Income Withholding for Support Act, then the Department or the court shall also order the obligor to sign a child support enforcement debit authorization form adopted by the Department under this Section. The obligor shall sign a form in relation to each financial institution holding an account on the obligor's behalf. Promptly after an obligor signs a child support enforcement debit authorization form, the Department shall send a copy of the signed form to the appropriate financial institution. Upon receiving the copy, the financial institution shall debit the account and transfer the debited amounts to the State Disbursement Unit according to the instructions in the form.

Section 35. The Illinois Marriage and Dissolution of Marriage Act is amended by adding Section 706.4 as follows:

(750 ILCS 5/706.4 new)

Sec. 706.4. Child support enforcement debit authorization.

(a) In this Section:

"Financial institution" means any of the following:

(1) A bank governed by the Illinois Banking Act.

(2) A savings and loan association governed by the Illinois Savings and Loan Act of 1985.

(3) A savings bank governed by the Savings Bank Act.

(4) A credit union governed by the Illinois Credit Union Act.

(5) A foreign banking corporation governed by the Foreign Banking Office Act.

"State Disbursement Unit" means the State Disbursement Unit established under the Illinois Public Aid Code.

(b) If (i) an obligor has been ordered to make periodic payments of child support to the State Disbursement Unit pursuant to an order issued by a court of competent jurisdiction and (ii) the obligor does not have an employer, as that term is defined in the Income Withholding for Support Act, then the court shall also order the obligor to sign a child support enforcement debit authorization form adopted by the Department of Public Aid under the Illinois Public Aid Code. The obligor shall sign a form in relation to each financial institution holding an account on the obligor's behalf. Promptly after an obligor signs a child support enforcement debit authorization form, the Department of Public Aid shall send a copy of the signed form to the appropriate financial institution. Upon receiving the copy, the financial institution shall debit the account and transfer the debited amounts to the State Disbursement Unit according to the instructions in the form.

Section 40. The Non-Support Punishment Act is amended by adding Section 22.5 as follows:

(750 ILCS 16/22.5 new)

Sec. 22.5. Child support enforcement debit authorization.

(a) In this Section:

"Financial institution" means any of the following:

(1) A bank governed by the Illinois Banking Act.

(2) A savings and loan association governed by the Illinois Savings and Loan Act of 1985.

(3) A savings bank governed by the Savings Bank Act.

(4) A credit union governed by the Illinois Credit Union Act.

(5) A foreign banking corporation governed by the Foreign Banking Office Act.

"State Disbursement Unit" means the State Disbursement Unit established under the Illinois Public Aid Code.

(b) If (i) an obligor has been ordered to make periodic payments of child support to the State Disbursement Unit pursuant to an order issued by a court of competent jurisdiction and (ii) the obligor does not have an employer, as that term is defined in the Income Withholding for Support Act, then the court shall also order the obligor to sign a child support enforcement debit authorization form adopted by the Department of Public Aid under the Illinois Public Aid Code. The obligor shall sign a form in relation to each financial institution holding an account on the obligor's behalf. Promptly after an obligor signs a child support enforcement debit authorization form, the Department of Public Aid shall send a copy of the signed form to the appropriate financial institution. Upon receiving the copy, the financial institution shall debit the account and transfer the debited amounts to the State Disbursement Unit according to the instructions in the form.

Section 45. The Illinois Parentage Act of 1984 is amended by adding Section 20.10 as follows:

(750 ILCS 45/20.10 new)

Sec. 20.10. Child support enforcement debit authorization.

(a) In this Section:

"Financial institution" means any of the following:

(1) A bank governed by the Illinois Banking Act.

(2) A savings and loan association governed by the Illinois Savings and Loan Act of 1985.

(3) A savings bank governed by the Savings Bank Act.

(4) A credit union governed by the Illinois Credit Union Act.

(5) A foreign banking corporation governed by the Foreign Banking Office Act.

"State Disbursement Unit" means the State Disbursement Unit established under the Illinois Public Aid Code.

(b) If (i) an obligor has been ordered to make periodic payments of child support to the State Disbursement Unit pursuant to an order issued by a court of competent jurisdiction and (ii) the obligor does not have an employer, as that term is defined in the Income Withholding for Support Act, then the court shall also order the obligor to sign a child support enforcement debit authorization form adopted by the Department of Public Aid under the Illinois Public Aid Code. The obligor shall sign a form in relation to each financial institution holding an account on the obligor's behalf. Promptly after an obligor signs a child support enforcement debit authorization form, the Department of Public Aid shall send a copy of the signed form to the appropriate financial institution. Upon receiving the copy, the financial institution shall debit the account and transfer the debited amounts to the State Disbursement Unit according to the instructions in the form.

Section 99. Effective date. This Act takes effect upon becoming law.