093_HB2523eng

 
HB2523 Engrossed                     LRB093 08016 LCB 08214 b

 1        AN ACT concerning child support.

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

 4        Section 5.  The Income Withholding  for  Support  Act  is
 5    amended 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
 9    served with an income withholding notice to  deduct  and  pay
10    over  income  as  provided  in this Section.  The payor shall
11    deduct  the  amount  designated  in  the  income  withholding
12    notice, as supplemented by any notice  provided  pursuant  to
13    subsection  (f)  of  Section  45, beginning no later than the
14    next payment of income which is payable or creditable to  the
15    obligor  that  occurs  14  days following the date the income
16    withholding notice was mailed, sent  by  facsimile  or  other
17    electronic  means,  or  placed  for  personal  delivery to or
18    service on the payor.  The  payor  may  combine  all  amounts
19    withheld  for the benefit of an obligee or public office into
20    a single payment and transmit the payment with a  listing  of
21    obligors  from  whom withholding has been effected. The payor
22    shall withhold from the obligor's wages and  pay  the  amount
23    withheld  to  the  State  Disbursement Unit within 7 business
24    days after the date the amount would (but  for  the  duty  to
25    withhold  income)  have been paid or credited to the obligor.
26    If the payor knowingly fails to withhold the  sums  from  the
27    obligor's  wages  or  pay  any  amount  withheld to the State
28    Disbursement Unit within 7 business days after the  date  the
29    amount  would  have been paid or credited to the obligor, the
30    payor shall pay a penalty of  $100  for  each  day  that  the
31    withheld  amount or the amount that should have been withheld
 
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 1    is not paid to the State Disbursement Unit after  the  period
 2    of 7 business days has expired.  Payment of a penalty of $100
 3    per  day  is  mandatory  unless  the  payor  demonstrates the
 4    payor's compelling cause or  justification  for  the  payor's
 5    failure  to  withhold  or  the  payor's  failure  to pay over
 6    withheld amounts to the State Disbursement Unit. The  failure
 7    of  a  payor,  on  more  than  one  occasion,  to pay amounts
 8    withheld to the State Disbursement  Unit  within  7  business
 9    days  after  the  date  the  amount  would  have been paid or
10    credited to the obligor creates a presumption that the  payor
11    knowingly  failed  to pay over the amounts.  This penalty may
12    be collected in a civil action which may be  brought  against
13    the payor in favor of the obligee or public office. A finding
14    of  a  payor's  nonperformance within the time required under
15    this Act must  be  documented  by  a  certified  mail  return
16    receipt  showing  the  date the income withholding notice was
17    served on the payor. For purposes of  this  Act,  a  withheld
18    amount  shall be considered paid by a payor on the date it is
19    mailed by the payor, or  on  the  date  an  electronic  funds
20    transfer of the amount has been initiated by the payor, or on
21    the  date  delivery  of  the amount has been initiated by the
22    payor. For each deduction, the payor shall provide the  State
23    Disbursement  Unit, at the time of transmittal, with the date
24    the amount would (but for the duty to withhold  income)  have
25    been paid or credited to the obligor.
26        After  June  30,  2000,  every payor that has 250 or more
27    employees shall use electronic  funds  transfer  to  pay  all
28    amounts withheld under this Section. During the year 2001 and
29    during  each year thereafter, every payor that has fewer than
30    250 employees and that withheld  income  under  this  Section
31    pursuant  to  10  or  more  income withholding notices during
32    December of the preceding year  shall  use  electronic  funds
33    transfer to pay all amounts withheld under this Section.
34        Upon  receipt  of  an income withholding notice requiring
 
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 1    that a minor child be named as  a  beneficiary  of  a  health
 2    insurance  plan  available through an employer or labor union
 3    or trade union, the employer or labor union  or  trade  union
 4    shall  immediately enroll the minor child as a beneficiary in
 5    the  health  insurance  plan   designated   by   the   income
 6    withholding  notice. The employer shall withhold any required
 7    premiums and  pay  over  any  amounts  so  withheld  and  any
 8    additional amounts the employer pays to the insurance carrier
 9    in  a  timely  manner.   The employer or labor union or trade
10    union shall mail to the obligee, within 15 days of enrollment
11    or upon request, notice of the date of coverage,  information
12    on  the  dependent  coverage plan, and all forms necessary to
13    obtain reimbursement for covered  health  expenses,  such  as
14    would  be made available to a new employee. When an order for
15    dependent coverage is in effect and the insurance coverage is
16    terminated or changed for any reason, the employer  or  labor
17    union  or trade union shall notify the obligee within 10 days
18    of the termination  or  change  date  along  with  notice  of
19    conversion privileges.
20        For withholding of income, the payor shall be entitled to
21    receive a fee not to exceed $5 per month to be taken from the
22    income to be paid to the obligor.
23        (b)  Whenever  the  obligor is no longer receiving income
24    from the payor, the payor shall return a copy of  the  income
25    withholding  notice to the obligee or public office and shall
26    provide information for the purpose of enforcing this Act.
27        (c)  Withholding of income under this Act shall  be  made
28    without  regard  to  any  prior  or  subsequent garnishments,
29    attachments,  wage  assignments,  or  any  other  claims   of
30    creditors.  Withholding of income under this Act shall not be
31    in  excess of the maximum amounts permitted under the federal
32    Consumer  Credit  Protection  Act.   Income   available   for
33    withholding  shall  be  applied  first to the current support
34    obligation, then to any premium required for employer,  labor
 
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 1    union,  or  trade  union-related  health  insurance  coverage
 2    ordered  under  the  order  for support, and then to payments
 3    required  on  past-due  support  obligations.   If  there  is
 4    insufficient available  income  remaining  to  pay  the  full
 5    amount   of  the  required  health  insurance  premium  after
 6    withholding of income for  the  current  support  obligation,
 7    then  the  remaining  available  income  shall  be applied to
 8    payments required on past-due  support  obligations.  If  the
 9    payor  has  been served with more than one income withholding
10    notice pertaining  to  the  same  obligor,  the  payor  shall
11    allocate  income available for withholding on a proportionate
12    share basis, giving priority to current support payments.   A
13    payor  who complies with an income withholding notice that is
14    regular on its face shall not be subject to  civil  liability
15    with  respect  to any individual, any agency, or any creditor
16    of the obligor for conduct in compliance with the notice.
17        (d)  No payor shall discharge, discipline, refuse to hire
18    or otherwise penalize any obligor  because  of  the  duty  to
19    withhold income.
20    (Source:  P.A.  91-212,  eff.  7-20-99;  91-677, eff. 1-5-00;
21    92-590, eff. 7-1-02.)