HB5221 EnrolledLRB097 18123 DRJ 65561 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Income Withholding for Support Act is
5amended by changing Sections 20, 35, and 45 as follows:
 
6    (750 ILCS 28/20)
7    Sec. 20. Entry of order for support containing income
8withholding provisions; income withholding notice.
9    (a) In addition to any content required under other laws,
10every order for support entered on or after July 1, 1997,
11shall:
12        (1) Require an income withholding notice to be prepared
13    and served immediately upon any payor of the obligor by the
14    obligee or public office, unless a written agreement is
15    reached between and signed by both parties providing for an
16    alternative arrangement, approved and entered into the
17    record by the court, which ensures payment of support. In
18    that case, the order for support shall provide that an
19    income withholding notice is to be prepared and served only
20    if the obligor becomes delinquent in paying the order for
21    support; and
22        (2) Contain a dollar amount to be paid until payment in
23    full of any delinquency that accrues after entry of the

 

 

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1    order for support. The amount for payment of delinquency
2    shall not be less than 20% of the total of the current
3    support amount and the amount to be paid periodically for
4    payment of any arrearage stated in the order for support;
5    and
6        (3) Include the obligor's Social Security Number,
7    which the obligor shall disclose to the court. If the
8    obligor is not a United States citizen, the obligor shall
9    disclose to the court, and the court shall include in the
10    order for support, the obligor's alien registration
11    number, passport number, and home country's social
12    security or national health number, if applicable.
13    (b) At the time the order for support is entered, the Clerk
14of the Circuit Court shall provide a copy of the order to the
15obligor and shall make copies available to the obligee and
16public office.
17    (c) The income withholding notice shall:
18        (1) be in the standard format prescribed by the federal
19    Department of Health and Human Services; and
20        (1.1) state the date of entry of the order for support
21    upon which the income withholding notice is based; and
22        (2) direct any payor to withhold the dollar amount
23    required for current support under the order for support;
24    and
25        (3) direct any payor to withhold the dollar amount
26    required to be paid periodically under the order for

 

 

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1    support for payment of the amount of any arrearage stated
2    in the order for support; and
3        (4) direct any payor or labor union or trade union to
4    enroll a child as a beneficiary of a health insurance plan
5    and withhold or cause to be withheld, if applicable, any
6    required premiums; and
7        (5) state the amount of the payor income withholding
8    fee specified under this Section; and
9        (6) state that the amount actually withheld from the
10    obligor's income for support and other purposes, including
11    the payor withholding fee specified under this Section, may
12    not be in excess of the maximum amount permitted under the
13    federal Consumer Credit Protection Act; and
14        (7) in bold face type, the size of which equals the
15    largest type on the notice, state the duties of the payor
16    and the fines and penalties for failure to withhold and pay
17    over income and for discharging, disciplining, refusing to
18    hire, or otherwise penalizing the obligor because of the
19    duty to withhold and pay over income under this Section;
20    and
21        (8) state the rights, remedies, and duties of the
22    obligor under this Section; and
23        (9) include the Social Security number of the obligor;
24    and
25        (10) include the date that withholding for current
26    support terminates, which shall be the date of termination

 

 

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1    of the current support obligation set forth in the order
2    for support; and
3        (11) contain the signature of the obligee or the
4    printed name and telephone number of the authorized
5    representative of the public office, except that the
6    failure to contain the signature of the obligee or the
7    printed name and telephone number of the authorized
8    representative of the public office shall not affect the
9    validity of the income withholding notice; and
10        (12) direct any payor to pay over amounts withheld for
11    payment of support to the State Disbursement Unit.
12    (d) The accrual of a delinquency as a condition for service
13of an income withholding notice, under the exception to
14immediate withholding in subsection (a) of this Section, shall
15apply only to the initial service of an income withholding
16notice on a payor of the obligor.
17    (e) Notwithstanding the exception to immediate withholding
18contained in subsection (a) of this Section, if the court finds
19at the time of any hearing that an arrearage has accrued, the
20court shall order immediate service of an income withholding
21notice upon the payor.
22    (f) If the order for support, under the exception to
23immediate withholding contained in subsection (a) of this
24Section, provides that an income withholding notice is to be
25prepared and served only if the obligor becomes delinquent in
26paying the order for support, the obligor may execute a written

 

 

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1waiver of that condition and request immediate service on the
2payor.
3    (g) The obligee or public office may serve the income
4withholding notice on the payor or its superintendent, manager,
5or other agent by ordinary mail or certified mail return
6receipt requested, by facsimile transmission or other
7electronic means, by personal delivery, or by any method
8provided by law for service of a summons. At the time of
9service on the payor and as notice that withholding has
10commenced, the obligee or public office shall serve a copy of
11the income withholding notice on the obligor by ordinary mail
12addressed to his or her last known address. A copy of an income
13withholding notice and proof of service shall be filed with the
14Clerk of the Circuit Court only when necessary in connection
15with a petition to contest, modify, suspend, terminate, or
16correct an income withholding notice, an action to enforce
17income withholding against a payor, or the resolution of other
18disputes involving an income withholding notice. The changes
19made to this subsection by this amendatory Act of the 96th
20General Assembly apply on and after September 1, 2009.
21    (h) At any time after the initial service of an income
22withholding notice, any other payor of the obligor may be
23served with the same income withholding notice without further
24notice to the obligor. A copy of the income withholding notice
25together with a proof of service on the other payor shall be
26filed with the Clerk of the Circuit Court.

 

 

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1    (i) New service of an income withholding notice is not
2required in order to resume withholding of income in the case
3of an obligor with respect to whom an income withholding notice
4was previously served on the payor if withholding of income was
5terminated because of an interruption in the obligor's
6employment of less than 180 days.
7(Source: P.A. 96-858, eff. 1-8-10.)
 
8    (750 ILCS 28/35)
9    Sec. 35. Duties of payor.
10    (a) It shall be the duty of any payor who has been served
11with an income withholding notice to deduct and pay over income
12as provided in this Section. The payor shall deduct the amount
13designated in the income withholding notice, as supplemented by
14any notice provided pursuant to subsection (f) of Section 45,
15beginning no later than the next payment of income which is
16payable or creditable to the obligor that occurs 14 days
17following the date the income withholding notice was mailed,
18sent by facsimile or other electronic means, or placed for
19personal delivery to or service on the payor. The payor may
20combine all amounts withheld for the benefit of an obligee or
21public office into a single payment and transmit the payment
22with a listing of obligors from whom withholding has been
23effected. The payor shall pay the amount withheld to the State
24Disbursement Unit within 7 business days after the date the
25amount would (but for the duty to withhold income) have been

 

 

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1paid or credited to the obligor. If the payor knowingly fails
2to withhold the amount designated in the income withholding
3notice or to pay any amount withheld to the State Disbursement
4Unit within 7 business days after the date the amount would
5have been paid or credited to the obligor, then the payor shall
6pay a penalty of $100 for each day that the amount designated
7in the income withholding notice (whether or not withheld by
8the payor) is not paid to the State Disbursement Unit after the
9period of 7 business days has expired. The total penalty for a
10payor's failure, on one occasion, to withhold or pay to the
11State Disbursement Unit an amount designated in the income
12withholding notice may not exceed $10,000. The failure of a
13payor, on more than one occasion, to pay amounts withheld to
14the State Disbursement Unit within 7 business days after the
15date the amount would have been paid or credited to the obligor
16creates a presumption that the payor knowingly failed to pay
17over the amounts. This penalty may be collected in a civil
18action which may be brought against the payor in favor of the
19obligee or public office. An action to collect the penalty may
20not be brought more than one year after the date of the payor's
21alleged failure to withhold or pay income. A finding of a
22payor's nonperformance within the time required under this Act
23must be documented by a certified mail return receipt or a
24sheriff's or private process server's proof of service showing
25the date the income withholding notice was served on the payor.
26For purposes of this Act, a withheld amount shall be considered

 

 

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1paid by a payor on the date it is mailed by the payor, or on the
2date an electronic funds transfer of the amount has been
3initiated by the payor, or on the date delivery of the amount
4has been initiated by the payor. For each deduction, the payor
5shall provide the State Disbursement Unit, at the time of
6transmittal, with the date the amount would (but for the duty
7to withhold income) have been paid or credited to the obligor.
8    After June 30, 2000, every payor that has 250 or more
9employees shall use electronic funds transfer to pay all
10amounts withheld under this Section. During the year 2001 and
11during each year thereafter, every payor that has fewer than
12250 employees and that withheld income under this Section
13pursuant to 10 or more income withholding notices during
14December of the preceding year shall use electronic funds
15transfer to pay all amounts withheld under this Section.
16    Upon receipt of an income withholding notice requiring that
17a minor child be named as a beneficiary of a health insurance
18plan available through an employer or labor union or trade
19union, the employer or labor union or trade union shall
20immediately enroll the minor child as a beneficiary in the
21health insurance plan designated by the income withholding
22notice. The employer shall withhold any required premiums and
23pay over any amounts so withheld and any additional amounts the
24employer pays to the insurance carrier in a timely manner. The
25employer or labor union or trade union shall mail to the
26obligee, within 15 days of enrollment or upon request, notice

 

 

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1of the date of coverage, information on the dependent coverage
2plan, and all forms necessary to obtain reimbursement for
3covered health expenses, such as would be made available to a
4new employee. When an order for dependent coverage is in effect
5and the insurance coverage is terminated or changed for any
6reason, the employer or labor union or trade union shall notify
7the obligee within 10 days of the termination or change date
8along with notice of conversion privileges.
9    For withholding of income, the payor shall be entitled to
10receive a fee not to exceed $5 per month to be taken from the
11income to be paid to the obligor.
12    (b) Whenever the obligor is no longer receiving income from
13the payor, the payor shall return a copy of the income
14withholding notice to the obligee or public office and shall
15provide information for the purpose of enforcing this Act.
16    (c) Withholding of income under this Act shall be made
17without regard to any prior or subsequent garnishments,
18attachments, wage assignments, or any other claims of
19creditors. Withholding of income under this Act shall not be in
20excess of the maximum amounts permitted under the federal
21Consumer Credit Protection Act. Income available for
22withholding shall be applied first to the current support
23obligation, then to any premium required for employer, labor
24union, or trade union-related health insurance coverage
25ordered under the order for support, and then to payments
26required on past-due support obligations. If there is

 

 

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1insufficient available income remaining to pay the full amount
2of the required health insurance premium after withholding of
3income for the current support obligation, then the remaining
4available income shall be applied to payments required on
5past-due support obligations. If the payor has been served with
6more than one income withholding notice pertaining to the same
7obligor, the payor shall allocate income available for
8withholding on a proportionate share basis, giving priority to
9current support payments. A payor who complies with an income
10withholding notice that is regular on its face shall not be
11subject to civil liability with respect to any individual, any
12agency, or any creditor of the obligor for conduct in
13compliance with the notice.
14    (d) No payor shall discharge, discipline, refuse to hire or
15otherwise penalize any obligor because of the duty to withhold
16income.
17(Source: P.A. 96-53, eff. 1-1-10.)
 
18    (750 ILCS 28/45)
19    Sec. 45. Additional duties.
20    (a) An obligee who is receiving income withholding payments
21under this Act shall notify the State Disbursement Unit and the
22Clerk of the Circuit Court of any change of address within 7
23days of such change.
24    (b) An obligee who is a recipient of public aid shall send
25a copy of any income withholding notice served by the obligee

 

 

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1to the Division of Child Support Enforcement of the Department
2of Healthcare and Family Services.
3    (c) Each obligor shall notify the obligee, the public
4office, and the Clerk of the Circuit Court of any change of
5address within 7 days.
6    (d) An obligor whose income is being withheld pursuant to
7this Act shall notify the obligee, the public office, and the
8Clerk of the Circuit Court of any new payor, within 7 days.
9    (e) (Blank.)
10    (f) The obligee or public office shall provide notice to
11the payor and Clerk of the Circuit Court of any other support
12payment made, including but not limited to, a set-off under
13federal and State law or partial payment of the delinquency or
14arrearage, or both.
15    (g) The State Disbursement Unit shall maintain complete,
16accurate, and clear records of all income withholding payments
17and their disbursements. Certified copies of payment records
18maintained by the State Disbursement Unit, a public office, or
19the Clerk of the Circuit Court shall, without further proof, be
20admitted into evidence in any legal proceedings under this Act.
21    (h) The Department of Healthcare and Family Services shall
22design suggested legal forms for proceeding under this Act and
23shall make available to the courts such forms and informational
24materials which describe the procedures and remedies set forth
25herein for distribution to all parties in support actions.
26    (i) At the time of transmitting each support payment, the

 

 

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1State Disbursement Unit shall provide the obligee or public
2office, as appropriate, with any information furnished by the
3payor as to the date the amount would (but for the duty to
4withhold income) have been paid or credited to the obligor.
5    (j) If an obligee who is receiving income withholding
6payments under this Act does not receive a payment required
7under the income withholding notice, he or she must give
8written notice of the non-receipt to the payor. The notice must
9include the date on which the obligee believes the payment was
10to have been made and the amount of the payment. The obligee
11must send the notice to the payor by certified mail, return
12receipt requested.
13    After receiving a written notice of non-receipt of payment
14under this subsection, a payor must, within 14 days thereafter,
15either (i) notify the obligee of the reason for the non-receipt
16of payment or (ii) make the required payment, together with
17interest at the rate of 9% calculated from the date on which
18the payment of income should have been made. A payor who fails
19to comply with this subsection is subject to the $100 per day
20penalty provided under subsection (a) of Section 35 of this
21Act.
22(Source: P.A. 95-331, eff. 8-21-07.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.