State of Illinois
91st General Assembly
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Public Act 91-0677

HB2773 Enrolled                                LRB9103154SMdv

    AN ACT concerning child support, amending named Acts.

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

    Section  5.  The  Illinois  Public Aid Code is amended by
changing  Sections  10-10.4  and  10-26  and  adding  Section
10-16.6 as follows:

    (305 ILCS 5/10-10.4)
    Sec. 10-10.4.  Payment of Support to  State  Disbursement
Unit.
    (a)  As used in this Section:
    "Order  for  support",  "obligor", "obligee", and "payor"
mean those terms as defined in  the  Income  Withholding  for
Support  Act,  except that "order for support" shall not mean
orders providing for spousal maintenance under which there is
no child support obligation.
    (b)  Notwithstanding any other provision of this Code  to
the  contrary, each court or administrative order for support
entered or modified on or after October 1, 1999 shall require
that support payments be made to the State Disbursement  Unit
established under Section 10-26 if:
         (1)  a  party  to  the  order is receiving child and
    spouse support services under this Article X; or
         (2)  no party to the order is  receiving  child  and
    spouse  support  services,  but  the support payments are
    made through income withholding.
    (c)  The Illinois Department shall provide notice to  the
obligor and, where applicable, to the obligor's payor to make
Support payments shall be made to the State Disbursement Unit
if:
         (1)  the   order  for  support  was  entered  before
    October 1, 1999, and a party to the  order  is  receiving
    child  and  spouse support services under this Article X;
    or
         (2)  the order for support was entered after January
    1, 1994, no party to the order  is  receiving  child  and
    spouse  support  services,  and  the support payments are
    being made through income withholding.
    (c-5) If no party to the order  is  receiving  child  and
spouse support services under this Article X, and the support
payments  are not being made through income withholding, then
support payments shall be made as directed in the  order  for
support.
    (c-10)  Within  15  days after the effective date of this
amendatory Act of the 91st  General  Assembly,  the  Illinois
Department  shall  provide written notice to the clerk of the
circuit  court,  the  obligor,  and,  where  applicable,  the
obligor's payor to make payments to  the  State  Disbursement
Unit if:
         (1) the order for support was entered before October
    1,  1999, and a party to the order is receiving child and
    spouse support services under this Article X; or
         (2) no party to the order  is  receiving  child  and
    spouse  support  services,  and  the support payments are
    being made through income withholding.
    (c-15) Within 15 days after the effective  date  of  this
amendatory Act of the 91st General Assembly, the clerk of the
circuit  court shall provide written notice to the obligor to
make payments directly to the clerk of the circuit  court  if
no  party  to the order is receiving child and spouse support
services under this Article X, the support payments  are  not
made  through  income  withholding, and the order for support
requires support payments to be made directly to the clerk of
the circuit court.
    (c-20) If the State Disbursement Unit receives a  support
payment  that  was  not  appropriately made to the Unit under
this Section, the Unit shall immediately return  the  payment
to the sender, including, if possible, instructions detailing
where to send the support payments.
    (d)  The notices notice required under subsections (c-10)
and  (c-15)  subsection  (c)  may  be  sent by ordinary mail,
certified   mail,   return   receipt   requested,   facsimile
transmission, or other electronic process, or may  be  served
upon  the  obligor  or payor using any method provided by law
for service of a summons.  A copy  of  the  notice  shall  be
provided  to  the obligee and, when the order for support was
entered by the court, to the clerk of the court.
(Source: P.A. 91-212, eff. 7-20-99.)

    (305 ILCS 5/10-16.6 new)
    Sec. 10-16.6. Electronic Funds Transfer Committee.
    (a)  The Director of Public Aid  shall  establish  within
the  Department  an  Electronic Funds Transfer Committee. The
Director or his or her designee shall  be  a  member  of  the
committee  and  shall  serve as chairperson of the committee.
The Director shall appoint 4 other members of the  committee,
2  of  whom  shall represent employers in this State and 2 of
whom shall represent the banking industry in this State.  The
administrator of  the  State  Disbursement  Unit  established
under  Section  10-26  shall  be  an ex officio member of the
committee.
    (b)  The committee shall study ways to modify  or  expand
the  use  of  electronic  funds  transfers for the payment of
child support.  The committee shall report its  findings  and
recommendations  to  the  Governor  and  the General Assembly
before December 1, 2001.
    (c)  The committee is abolished on December 1, 2001.

    (305 ILCS 5/10-26)
    Sec. 10-26. State Disbursement Unit.
    (a)  Effective October 1, 1999  the  Illinois  Department
shall  establish a State Disbursement Unit in accordance with
the requirements of Title IV-D of the  Social  Security  Act.
The  Illinois Department shall enter into an agreement with a
State or local governmental unit or private entity to perform
the functions of the State Disbursement Unit as set forth  in
this  Section.   The  purpose  of the State Disbursement Unit
shall be to collect and disburse support payments made  under
court and administrative support orders:
         (1)  being  enforced  in  cases  in  which child and
    spouse support services are  being  provided  under  this
    Article X; and
         (2)  in all cases in which the order for support was
    entered  after  January 1, 1994, child and spouse support
    services are not being provided under this Article X, and
    in which support payments are made under  the  provisions
    of the Income Withholding for Support Act.
    (a-5)  If  the State Disbursement Unit receives a support
payment that was not appropriately made  to  the  Unit  under
this  Section,  the Unit shall immediately return the payment
to the sender, including, if possible, instructions detailing
where to send the support payments.
    (b)  All payments  received  by  the  State  Disbursement
Unit:
         (1)  shall  be deposited into an account obtained by
    the State or local  governmental unit or private  entity,
    as the case may be, and
         (2)  distributed   and   disbursed   by   the  State
    Disbursement Unit, in accordance with the  directions  of
    the  Illinois  Department,  pursuant to Title IV-D of the
    Social  Security  Act  and  rules  promulgated   by   the
    Department.
    (c)  All   support  payments  assigned  to  the  Illinois
Department under Article X of this Code and rules promulgated
by the Illinois Department that are disbursed to the Illinois
Department by the State Disbursement Unit shall be paid  into
the Child Support Enforcement Trust Fund.
    (d)  If   the   agreement   with   the   State  or  local
governmental unit or private  entity  provided  for  in  this
Section is not in effect for any reason, the Department shall
perform  the  functions of the State Disbursement Unit as set
forth in this Section for a maximum of 12 months.
    (e) By February 1, 2000, the  Illinois  Department  shall
conduct at least 4 regional training and educational seminars
to  educate  the  clerks  of the circuit court on the general
operation of the State Disbursement Unit,  the  role  of  the
State  Disbursement  Unit,  and the role of the clerks of the
circuit court in the collection  and  distribution  of  child
support payments.
    (f)  By  March  1,  2000,  the  Illinois Department shall
conduct at least 4 regional educational and training seminars
to educate payors, as defined in the Income  Withholding  for
Support   Act,   on   the  general  operation  of  the  State
Disbursement Unit, the role of the State  Disbursement  Unit,
and  the distribution of income withholding payments pursuant
to this Section and the Income Withholding for Support Act.
(Source: P.A. 91-212, eff. 7-20-99.)

    Section 15.  The Illinois  Marriage  and  Dissolution  of
Marriage Act is amended by changing Section 507.1 as follows:

    (750 ILCS 5/507.1)
    Sec.  507.1.  Payment  of  Support  to State Disbursement
Unit.
    (a)  As used in this Section:
    "Order for support", "obligor",  "obligee",  and  "payor"
mean  those  terms  as  defined in the Income Withholding for
Support Act, except that "order for support" shall  not  mean
orders providing for spousal maintenance under which there is
no child support obligation.
    (b)  Notwithstanding  any  other provision of this Act to
the contrary, each order for support entered or  modified  on
or  after October 1, 1999 shall require that support payments
be made to the  State  Disbursement  Unit  established  under
Section 10-26 of the Illinois Public Aid Code if:
         (1)  a  party  to  the  order is receiving child and
    spouse support services under Article X of  the  Illinois
    Public Aid Code; or
         (2)  no  party  to  the order is receiving child and
    spouse support services, but  the  support  payments  are
    made through income withholding.
    (c)  The  Illinois Department of Public Aid shall provide
notice to the obligor and, where applicable, to the obligor's
payor to make Support payments shall be  made  to  the  State
Disbursement Unit if:
         (1)  the   order  for  support  was  entered  before
    October 1, 1999, and a party to the  order  is  receiving
    child  and spouse support services under Article X of the
    Illinois Public Aid Code; or
         (2)  the order for support was entered after January
    1, 1994, no party to the order  is  receiving  child  and
    spouse  support  services,  and  the support payments are
    being made through income withholding.
    (c-5) If no party to the order  is  receiving  child  and
spouse  support  services  under  Article  X  of the Illinois
Public Aid Code,  and  the  support  payments  are  not  made
through  income  withholding,  then support payments shall be
made as directed by the order for support.
    (c-10) Within 15 days after the effective  date  of  this
amendatory  Act  of  the  91st General Assembly, the Illinois
Department shall provide written notice to the clerk  of  the
circuit  court,  the  obligor,  and,  where  applicable,  the
obligor's  payor  to  make payments to the State Disbursement
Unit if:
         (1) the order for support was entered before October
    1, 1999, and a party to the order is receiving child  and
    spouse  support  services under Article X of the Illinois
    Public Aid Code; or
         (2) no party to the order  is  receiving  child  and
    spouse  support  services,  and  the support payments are
    being made through income withholding.
    (c-15) Within 15 days after the effective  date  of  this
amendatory Act of the 91st General Assembly, the clerk of the
circuit  court shall provide written notice to the obligor to
make payments directly to the clerk of the circuit  court  if
no  party  to the order is receiving child and spouse support
services under Article X of the Illinois Public Aid Code, the
support payments are not made through income withholding, and
the order for support requires support payments  to  be  made
directly to the clerk of the circuit court.
    (c-20)  If the State Disbursement Unit receives a support
payment that was not appropriately made  to  the  Unit  under
this  Section,  the Unit shall immediately return the payment
to the sender, including, if possible, instructions detailing
where to send the support payment.
    (d)  The notices notice required under subsections (c-10)
and (c-15) subsection (c)  may  be  sent  by  ordinary  mail,
certified   mail,   return   receipt   requested,   facsimile
transmission,  or  other electronic process, or may be served
upon the obligor or payor using any method  provided  by  law
for  service of a summons.  The Illinois Department of Public
Aid shall provide a copy of the notice to the obligee and  to
the clerk of the court.
(Source: P.A. 91-212, eff. 7-20-99.)

    Section 20.  The Uniform Interstate Family Support Act is
amended by adding Section 320 as follows:

    (750 ILCS 22/320 new)
    Sec. 320. Payment of Support to State Disbursement Unit.
    (a) As used in this Section:
    "Order  for  support",  "obligor", "obligee", and "payor"
mean those terms as defined in  the  Income  Withholding  for
Support  Act,  except that "order for support" means an order
entered by any tribunal of this  State  but  shall  not  mean
orders providing for spousal maintenance under which there is
no child support obligation.
    (b)  Notwithstanding  any  other provision of this Act to
the contrary, each order for support entered or  modified  on
or  after October 1, 1999 shall require that support payments
be made to the  State  Disbursement  Unit  established  under
Section 10-26 of the Illinois Public Aid Code if:
         (1)  a  party  to  the  order is receiving child and
    spouse support services under Article X of  the  Illinois
    Public Aid Code; or
         (2)  no  party  to  the order is receiving child and
    spouse support services, but  the  support  payments  are
    made through income withholding.
    (c)   Support   payments  shall  be  made  to  the  State
Disbursement Unit if:
         (1) the order for support was entered before October
    1, 1999, and a party to the order is receiving child  and
    spouse  support  services under Article X of the Illinois
    Public Aid Code; or
         (2)  no party to the order is  receiving  child  and
    spouse  support  services,  and  the support payments are
    being made through income withholding.
    (c-5) If no party to the order  is  receiving  child  and
spouse  support  services  under  Article  X  of the Illinois
Public Aid Code,  and  the  support  payments  are  not  made
through  income  withholding,  then support payments shall be
made as directed by the order for support.
    (c-10) Within 15 days after the effective  date  of  this
amendatory  Act  of  the  91st General Assembly, the Illinois
Department shall provide written notice to the clerk  of  the
circuit  court,  the  obligor,  and,  where  applicable,  the
obligor's  payor  to  make payments to the State Disbursement
Unit if:
         (1) the order for support was entered before October
    1, 1999, and a party to the order is receiving child  and
    spouse  support  services under Article X of the Illinois
    Public Aid Code; or
         (2) no party to the order  is  receiving  child  and
    spouse  support  services,  and  the support payments are
    being made through income withholding.
    (c-15) Within 15 days after the effective  date  of  this
amendatory Act of the 91st General Assembly, the clerk of the
circuit  court shall provide written notice to the obligor to
make payments directly to the clerk of the circuit  court  if
no  party  to the order is receiving child and spouse support
services under Article X of the Illinois Public Aid Code, the
support payments are not made through income withholding, and
the order for support requires support payments  to  be  made
directly to the clerk of the circuit court.
    (c-20)  If the State Disbursement Unit receives a support
payment that was not appropriately made  to  the  Unit  under
this  Section,  the Unit shall immediately return the payment
to the sender, including, if possible, instructions detailing
where to send the support payments.
    (d) The notices required  under  subsections  (c-10)  and
(c-15)  may  be sent by ordinary mail, certified mail, return
receipt   requested,   facsimile   transmission,   or   other
electronic process, or may be  served  upon  the  obligor  or
payor  using  any  method  provided  by  law for service of a
summons.  The Illinois Department of Public Aid shall provide
a copy of the notice to the obligee and to the clerk  of  the
court.

    Section  22.   The  Income Withholding for Support Act is
amended by changing Section 35 as follows:

    (750 ILCS 28/35)
    Sec. 35.  Duties of payor.
    (a)  It shall be the duty  of  any  payor  who  has  been
served  with  an  income withholding notice to deduct and pay
over income as provided in this  Section.   The  payor  shall
deduct  the  amount  designated  in  the  income  withholding
notice,  as  supplemented  by any notice provided pursuant to
subsection (f) of Section 45, beginning  no  later  than  the
next  payment of income which is payable or creditable to the
obligor that occurs 14 days following  the  date  the  income
withholding  notice  was  mailed,  sent by facsimile or other
electronic means, or  placed  for  personal  delivery  to  or
service  on  the  payor.   The  payor may combine all amounts
withheld for the benefit of an obligee or public office  into
a  single  payment and transmit the payment with a listing of
obligors from whom withholding has been effected.  The  payor
shall  pay the amount withheld to the State Disbursement Unit
within 7 business days after the date the amount  would  (but
for  the  duty to withhold income) have been paid or credited
to the obligor. If the  payor  knowingly  fails  to  pay  any
amount  withheld  to  the  State  Disbursement  Unit within 7
business days after the date the amount would have been  paid
or  credited to the obligor, the payor shall pay a penalty of
$100 for each day that the withheld amount is not paid to the
State Disbursement Unit after the period of 7  business  days
has  expired.   The  failure  of  a  payor,  on more than one
occasion, to pay amounts withheld to the  State  Disbursement
Unit  within  7 business days after the date the amount would
have  been  paid  or  credited  to  the  obligor  creates   a
presumption  that  the payor knowingly failed to pay over the
amounts.  This penalty may be collected  in  a  civil  action
which  may  be  brought  against  the  payor  in favor of the
obligee  or  public  office.   A   finding   of   a   payor's
nonperformance  within  the time required under this Act must
be documented by a certified mail return receipt showing  the
date  the  income withholding notice was served on the payor.
For  purposes  of  this  Act,  a  withheld  amount  shall  be
considered paid by a payor on the date it is  mailed  by  the
payor,  or  on  the  date an electronic funds transfer of the
amount has been initiated  by  the  payor,  or  on  the  date
delivery  of  the amount has been initiated by the payor. For
each  deduction,  the   payor   shall   provide   the   State
Disbursement  Unit, at the time of transmittal, with the date
the amount would (but for the duty to withhold  income)  have
been paid or credited to the obligor.
    After  June  30,  2000,  every payor that has 250 or more
employees shall use electronic  funds  transfer  to  pay  all
amounts  withheld  under  this Section.  During the year 2001
and during each year thereafter, every payor that  has  fewer
than  250  employees  and  that  withheld  income  under this
Section pursuant to 10 or  more  income  withholding  notices
during  December  of  the preceding year shall use electronic
funds  transfer  to  pay  all  amounts  withheld  under  this
Section.
    Upon receipt of an income  withholding  notice  requiring
that  a  minor  child  be  named as a beneficiary of a health
insurance plan available through an employer or  labor  union
or  trade  union,  the employer or labor union or trade union
shall immediately enroll the minor child as a beneficiary  in
the   health   insurance   plan   designated  by  the  income
withholding notice. The employer shall withhold any  required
premiums  and  pay  over  any  amounts  so  withheld  and any
additional amounts the employer pays to the insurance carrier
in a timely manner.  The employer or  labor  union  or  trade
union shall mail to the obligee, within 15 days of enrollment
or  upon request, notice of the date of coverage, information
on the dependent coverage plan, and all  forms  necessary  to
obtain  reimbursement  for  covered  health expenses, such as
would be made available to a new employee. When an order  for
dependent coverage is in effect and the insurance coverage is
terminated  or  changed for any reason, the employer or labor
union or trade union shall notify the obligee within 10  days
of  the  termination  or  change  date  along  with notice of
conversion privileges.
    For withholding of income, the payor shall be entitled to
receive a fee not to exceed $5 per month to be taken from the
income to be paid to the obligor.
    (b)  Whenever the obligor is no longer  receiving  income
from  the  payor, the payor shall return a copy of the income
withholding notice to the obligee or public office and  shall
provide information for the purpose of enforcing this Act.
    (c)  Withholding  of  income under this Act shall be made
without regard  to  any  prior  or  subsequent  garnishments,
attachments,   wage  assignments,  or  any  other  claims  of
creditors.  Withholding of income under this Act shall not be
in excess of the maximum amounts permitted under the  federal
Consumer  Credit Protection Act. If the payor has been served
with more than one income withholding  notice  pertaining  to
the  same  obligor, the payor shall allocate income available
for  withholding  on  a  proportionate  share  basis,  giving
priority to current support payments.  If there is any income
available for withholding after withholding for  all  current
support  obligations,  the payor shall allocate the income to
past due support payments ordered  in  cases  in  which  cash
assistance  under  the  Illinois Public Aid Code is not being
provided to the obligee and then to past due support payments
ordered in cases in which cash assistance under the  Illinois
Public  Aid  Code is being provided to the obligee, both on a
proportionate share basis.  A  payor  who  complies  with  an
income  withholding  notice that is regular on its face shall
not be  subject  to  civil  liability  with  respect  to  any
individual,  any  agency,  or any creditor of the obligor for
conduct in compliance with the notice.
    (d)  No payor shall discharge, discipline, refuse to hire
or otherwise penalize any obligor  because  of  the  duty  to
withhold income.
(Source: P.A. 90-673, eff. 1-1-99; 91-212, eff. 7-20-99.)

    Section  25.   The  Illinois  Parentage  Act  of  1984 is
amended by changing Section 21.1 as follows:

    (750 ILCS 45/21.1)
    Sec. 21.1. Payment of Support to State Disbursement Unit.
    (a) As used in this Section:
    "Order for support", "obligor",  "obligee",  and  "payor"
mean  those  terms  as  defined in the Income Withholding for
Support Act, except that "order for support" shall  not  mean
orders providing for spousal maintenance under which there is
no child support obligation.
    (b)  Notwithstanding  any  other provision of this Act to
the contrary, each order for support entered or  modified  on
or  after October 1, 1999 shall require that support payments
be made to the  State  Disbursement  Unit  established  under
Section 10-26 of the Illinois Public Aid Code if:
         (1)  a  party  to  the  order is receiving child and
    spouse support services under Article X of  the  Illinois
    Public Aid Code; or
         (2)  no  party  to  the order is receiving child and
    spouse support services, but  the  support  payments  are
    made through income withholding.
    (c)  The  Illinois Department of Public Aid shall provide
notice to the obligor and, where applicable, to the obligor's
payor to make Support payments shall be  made  to  the  State
Disbursement Unit if:
         (1) the order for support was entered before October
    1,  1999, and a party to the order is receiving child and
    spouse support services under Article X of  the  Illinois
    Public Aid Code; or
         (2)  the order for support was entered after January
    1,  1994,  no  party  to the order is receiving child and
    spouse support services, and  the  support  payments  are
    being made through income withholding.
    (c-5)  If  no  party  to the order is receiving child and
spouse support services  under  Article  X  of  the  Illinois
Public  Aid  Code,  and  the  support  payments  are not made
through income withholding, then support  payments  shall  be
made as directed by the order for support.
    (c-10)  Within  15  days after the effective date of this
amendatory Act of the 91st  General  Assembly,  the  Illinois
Department  shall  provide written notice to the clerk of the
circuit  court,  the  obligor,  and,  where  applicable,  the
obligor's payor to make payments to  the  State  Disbursement
Unit if:
         (1) the order for support was entered before October
    1,  1999, and a party to the order is receiving child and
    spouse support services under Article X of  the  Illinois
    Public Aid Code; or
         (2)  no  party  to  the order is receiving child and
    spouse support services, and  the  support  payments  are
    being made through income withholding.
    (c-15)  Within  15  days after the effective date of this
amendatory Act of the 91st General Assembly, the clerk of the
circuit court shall provide written notice to the obligor  to
make  payments  directly to the clerk of the circuit court if
no party to the order is receiving child and  spouse  support
services under Article X of the Illinois Public Aid Code, the
support payments are not made through income withholding, and
the  order  for  support requires support payments to be made
directly to the clerk of the circuit court.
    (c-20) If the State Disbursement Unit receives a  support
payment  that  was  not  appropriately made to the Unit under
this Section, the Unit shall immediately return  the  payment
to the sender, including, if possible, instructions detailing
where to send the support payments.
    (d)  The notices notice required under subsections (c-10)
and (c-15) subsection (c)  may  be  sent  by  ordinary  mail,
certified   mail,   return   receipt   requested,   facsimile
transmission,  or  other electronic process, or may be served
upon the obligor or payor using any method  provided  by  law
for  service of a summons.  The Illinois Department of Public
Aid shall provide a copy of the notice to the obligee and  to
the clerk of the court.
(Source: P.A. 91-212, eff. 7-20-99.)

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

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