93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB4393


 
Introduced 02/03/04, by Patricia R. Bellock
 
SYNOPSIS AS INTRODUCED:
 		














225 ILCS 425/2.04
  from Ch. 111, par. 2005.1







    Amends the Collection Agency Act. Provides that a collection agency may not impose a fee or charge for any child support payments collected through the efforts of a federal, State, or local government agency. Provides that no collection agency that collects child support payments shall (i) impose a charge or fee for collection of a current child support payment, (ii) fail to apply collections to current support as specified in the order for support before applying collection to arrears or other amounts, or (iii) designate a current child support payment as arrears or other amount owed. Requires the Department of Professional Regulation to determine a fee rate of not less than 25% but not greater than 35%, based upon presentation by the licensees as to costs to provide the service  and a fair rate of return. Effective immediately.



















LRB093 17919 AMC 43602 b




















FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 














HB4393

LRB093 17919 AMC 43602 b









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    AN ACT concerning professional regulation.

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


 
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    Section 5. The Collection Agency Act is amended  by changing 
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Section 2.04 as follows:
 



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    (225 ILCS 425/2.04)  (from Ch. 111, par. 2005.1)



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    (Section scheduled to be repealed on January 1, 2006)

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    Sec. 2.04. Child support indebtedness. 

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    (a) Persons, associations, partnerships, or corporations 
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engaged in the
business of collecting child support 
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indebtedness owing under a court order
as provided under the 
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Illinois Public Aid Code, the Illinois Marriage and
Dissolution 
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of Marriage Act, the Non-Support of Spouse and Children Act,

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the Non-Support Punishment Act, the Illinois Parentage Act of 
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1984, or
similar laws of other states
are not
restricted (i) in 
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the frequency of contact with an obligor who is in arrears,

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whether by phone, mail, or other means, (ii) from contacting 
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the employer of an
obligor who is in arrears, (iii) from 
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publishing or threatening to publish a
list of obligors in 
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arrears, (iv) from disclosing or threatening to disclose an

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arrearage that the obligor disputes, but for which a verified 
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notice of
delinquency has been served under the Income 
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Withholding for Support Act (or
any of its predecessors, 
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Section 10-16.2 of the Illinois Public Aid
Code, Section 706.1 
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of the Illinois Marriage and Dissolution of Marriage Act,

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Section 4.1 of the Non-Support of Spouse and Children Act, 
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Section 26.1 of the
Revised Uniform Reciprocal Enforcement of 
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Support Act, or Section 20 of the
Illinois Parentage Act of 
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1984), or (v) from engaging in conduct that would
not
cause a 
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reasonable person mental or physical illness.  For purposes of 
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this
subsection, "obligor" means an individual who owes a duty 
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to make periodic
payments, under a court order, for the support 
 


 









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of a child.  "Arrearage" means
the total amount of an obligor's 
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unpaid child support obligations.

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    (a-5) A collection agency may not impose a fee or charge, 
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including costs, for any child support payments collected 
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through the efforts of a federal, State, or local government 
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agency, including but not limited to child support collected 
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from federal or State tax refunds, unemployment benefits, or 
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Social Security benefits.
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    No collection agency that collects child support payments 
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shall (i) impose a charge or fee, including costs, for 
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collection of a current child support payment, (ii) fail to 
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apply collections to current support as specified in the order 
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for support before applying collection to arrears or other 
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amounts, or (iii) designate a current child support payment as 
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arrears or other amount owed. In all circumstances, the 
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collection agency shall turn over to the obligee all support 
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collected in a month up to the amount of current support 
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required to be paid for that month.
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    As to any fees or charges, including costs, retained by the 
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collection agency, that agency shall provide documentation to 
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the obligee demonstrating that the child support payments 
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resulted from the actions of the agency.
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    After collection of the total amount or arrearage, 
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including statutory interest, due as of the date of execution 
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of the collection contract, no further fees may be charged.
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    (a-10) The Department of Professional Regulation shall 
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determine a fee rate of not less than 25% but not greater than 
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35%, based upon presentation by the licensees as to costs to 
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provide the service  and a fair rate of return.  This rate shall 
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be established by administrative rule.

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    Without prejudice to the determination by the Department of 
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the appropriate rate through administrative rule, a collection 
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agency shall impose a fee of not more than 29% of the amount of 
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child support actually collected by the collection agency 
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subject to the provisions of subsection (a-5).  This interim 
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rate is based upon the March 2002 General Account Office report 
 


 









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"Child Support Enforcement", GAO-02-349.  This rate shall apply 
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until a fee rate is established by administrative rule.

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    (b) The Department shall adopt rules necessary to 
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administer and enforce
the provisions of this Section.

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(Source: P.A. 90-673, eff. 1-1-99; 91-613, eff. 10-1-99.)

 

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