Full Text of HB1041 98th General Assembly
HB1041eng 98TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning civil law.
| 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 served | 9 | | with an income withholding notice to deduct and pay over income | 10 | | as
provided
in
this Section. The payor shall deduct the amount | 11 | | designated in the
income withholding notice, as supplemented by | 12 | | any
notice provided pursuant to subsection (f) of Section 45,
| 13 | | beginning
no later than the next payment of income which is | 14 | | payable or creditable to
the obligor
that occurs 14 days | 15 | | following the date the income withholding notice was
mailed, | 16 | | sent by facsimile or other electronic
means, or placed for | 17 | | personal delivery to or service on the
payor. The payor may | 18 | | combine
all amounts withheld for the benefit of an obligee or | 19 | | public office into a
single payment and transmit the payment | 20 | | with a listing of obligors from
whom withholding has been | 21 | | effected. The payor shall pay the amount withheld
to the State | 22 | | Disbursement Unit within
7 business days after the date the
| 23 | | amount would (but for the duty to withhold income) have been |
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| 1 | | paid or credited
to the obligor. If the payor knowingly fails | 2 | | to withhold the amount designated
in the income
withholding | 3 | | notice or to pay any amount withheld to the
State
Disbursement | 4 | | Unit within
7 business days after the date the amount would | 5 | | have been paid or credited to
the
obligor, then the payor shall | 6 | | pay a penalty of $100 for each day that the
amount designated | 7 | | in the income withholding notice (whether or
not withheld by | 8 | | the payor) is not paid to the State Disbursement Unit after
the | 9 | | period of
7 business days has expired. The total penalty for a | 10 | | payor's failure, on one occasion, to withhold or pay to the | 11 | | State Disbursement Unit an amount designated in the
income | 12 | | withholding notice may not exceed $10,000. The failure of a | 13 | | payor, on
more than one
occasion, to pay amounts withheld to | 14 | | the State Disbursement Unit within
7 business days after the | 15 | | date the amount would have been paid or credited to
the
obligor | 16 | | creates a
presumption that the payor knowingly failed to pay | 17 | | over the amounts. This
penalty may be collected in a civil | 18 | | action which may be brought against the
payor in favor of the | 19 | | obligee or public office. An action to collect the penalty may | 20 | | not be brought more than one year after the date of the payor's | 21 | | alleged failure to withhold or pay income.
A finding of a | 22 | | payor's nonperformance within the time required under
this Act | 23 | | must be documented by a certified mail return receipt
or a | 24 | | sheriff's or private process server's proof of service showing | 25 | | the date
the income withholding notice was served on the payor.
| 26 | | For purposes of this Act,
a withheld
amount shall be considered |
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| 1 | | paid by a payor on the date it is mailed by the
payor, or on the | 2 | | date an electronic funds transfer of the amount has been
| 3 | | initiated by the payor, or on the date delivery of the amount | 4 | | has been
initiated by the payor. For each deduction, the payor | 5 | | shall provide the
State Disbursement Unit, at the time of
| 6 | | transmittal, with the date
the amount would (but for the duty | 7 | | to withhold income) have been paid or
credited to the obligor.
| 8 | | After June 30, 2000, every payor that has 250 or more | 9 | | employees shall use
electronic funds transfer to pay all | 10 | | amounts withheld under this Section.
During the year
2001 and | 11 | | during each year thereafter, every payor that has fewer than | 12 | | 250
employees
and that
withheld income under this Section | 13 | | pursuant to 10 or more income withholding
notices
during | 14 | | December of the preceding year shall use electronic funds | 15 | | transfer to
pay all
amounts withheld under this Section.
| 16 | | Upon receipt of an income withholding notice requiring that | 17 | | a
minor child be named as a
beneficiary of a health insurance | 18 | | plan available through an employer or labor
union or trade | 19 | | union, the employer or labor union or trade union shall
| 20 | | immediately enroll the minor child as a beneficiary in the | 21 | | health insurance
plan designated by the income withholding | 22 | | notice. The
employer shall withhold any required
premiums and | 23 | | pay over any amounts so withheld and any additional amounts the
| 24 | | employer pays to the insurance carrier in a timely manner. The | 25 | | employer or
labor union or trade union shall mail to the | 26 | | obligee, within 15 days of
enrollment or upon request, notice |
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| 1 | | of the date of coverage, information on the
dependent coverage | 2 | | plan, and all forms necessary to obtain reimbursement for
| 3 | | covered health expenses, such as would be made available to a | 4 | | new employee.
When an order for dependent coverage is in effect | 5 | | and the insurance coverage is
terminated or changed for any | 6 | | reason, the employer or labor union or trade
union shall notify | 7 | | the obligee within 10 days of the termination or change date
| 8 | | along with notice of conversion privileges.
| 9 | | For withholding of income, the payor shall be entitled to | 10 | | receive a fee
not to exceed $5 per month to be taken
from
the | 11 | | income to be paid to the
obligor.
| 12 | | (b) Whenever the obligor is no longer receiving income from | 13 | | the payor,
the payor shall return a copy of the income | 14 | | withholding
notice to the obligee
or public office and shall | 15 | | provide information for the purpose of enforcing
this Act.
| 16 | | (c) Withholding of income under this Act shall be made | 17 | | without
regard
to any prior or subsequent garnishments, | 18 | | attachments, wage assignments,
or any other claims of | 19 | | creditors. Withholding of income
under this Act shall not be in | 20 | | excess of the maximum amounts
permitted under the federal | 21 | | Consumer Credit Protection Act.
Income available for | 22 | | withholding shall be applied first to the current
support | 23 | | obligation, then to any premium required for employer, labor | 24 | | union, or
trade union-related health insurance coverage | 25 | | ordered under the order for
support, and then to payments | 26 | | required on past-due support obligations. If
there is |
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| 1 | | insufficient available income remaining to pay the full amount | 2 | | of the
required health insurance premium after withholding of | 3 | | income for the current
support obligation, then the remaining | 4 | | available income shall be applied to
payments required on | 5 | | past-due support obligations.
If the payor has been served with | 6 | | more than one income
withholding notice
pertaining to the same | 7 | | obligor, the payor shall allocate income available
for | 8 | | withholding on a proportionate share basis, giving priority to | 9 | | current
support payments.
A payor who complies with an income | 10 | | withholding notice that is
regular on its
face shall not be | 11 | | subject to civil liability with respect to any individual,
any | 12 | | agency, or any creditor of the obligor for conduct in | 13 | | compliance with the
notice.
| 14 | | (d) No payor shall discharge, discipline, refuse to hire or | 15 | | otherwise
penalize any obligor because of the duty to withhold | 16 | | income.
| 17 | | (Source: P.A. 96-53, eff. 1-1-10; 97-994, eff. 8-17-12.)
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