Illinois General Assembly - Full Text of HB1041
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Full Text of HB1041  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,
3represented in the General Assembly:
4    Section 5. The Income Withholding for Support Act is
5amended 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
9with an income withholding notice to deduct and pay over income
10as provided in this Section. The payor shall deduct the amount
11designated in the income withholding notice, as supplemented by
12any notice provided pursuant to subsection (f) of Section 45,
13beginning no later than the next payment of income which is
14payable or creditable to the obligor that occurs 14 days
15following the date the income withholding notice was mailed,
16sent by facsimile or other electronic means, or placed for
17personal delivery to or service on the payor. The payor may
18combine all amounts withheld for the benefit of an obligee or
19public office into a single payment and transmit the payment
20with a listing of obligors from whom withholding has been
21effected. The payor shall pay the amount withheld to the State
22Disbursement Unit within 7 business days after the date the
23amount 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
17(Source: P.A. 96-53, eff. 1-1-10; 97-994, eff. 8-17-12.)