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Public Act 92-0044
SB163 Enrolled LRB9203648DJtm
AN ACT concerning public aid.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 2. The State Finance Act is amended by adding
Section 5.545 as follows:
(30 ILCS 105/5.545 new)
Sec. 5.545. The Child Support Administrative Fund.
Section 5. The Illinois Public Aid Code is amended by
changing Sections 10-26, 12-8.1, and 12-10.2 and adding
Sections 10-26.2 and 12-10.2a as follows:
(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 State Disbursement Unit shall 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 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-2) The contract entered into by the Illinois
Department with a public or private entity or an individual
for the operation of the State Disbursement Unit is subject
to competitive bidding. In addition, the contract is subject
to Section 10-26.2 of this Code. As used in this subsection
(a-2), "contract" has the same meaning as in the Illinois
Procurement Code.
(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 before July
1, 2001, and for a maximum of 24 months after June 30, 2001.
If the Illinois Department is performing the functions of the
State Disbursement Unit on July 1, 2001, then the Illinois
Department shall make an award on or before December 31,
2002, to a State or local government unit or private entity
to perform the functions of the State Disbursement Unit.
Payments received by the Department in performance of the
duties of the State Disbursement Unit shall be deposited into
the State Disbursement Unit Revolving Fund established under
Section 12-8.1.
(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; 91-677, eff. 1-5-00;
91-712, eff. 7-1-00.)
(305 ILCS 5/10-26.2 new)
Sec. 10-26.2. Contracts concerning the operation of the
State Disbursement Unit.
(a) In this Section:
"Contract" has the same meaning as in the Illinois
Procurement Code.
"SDU contractor" means any public or private entity or
individual with whom the Illinois Department enters into a
contract in connection with the operation of the State
Disbursement Unit.
(b) The contract entered into by the Illinois Department
with a public or private entity or an individual in
connection with the operation of the State Disbursement Unit
must contain, at a minimum, the provisions set forth in this
Section.
(c) The contract must include standards and procedures
to ensure that the data relied on by the State Disbursement
Unit in performing its functions is accurate so that the
State Disbursement Unit will be able to effectively
administer the collection and disbursement of support
payments.
(d) The contract must contain provisions to ensure that
all clerks of the circuit court have access to non-custodial
parents' support payment information in the possession of the
State Disbursement Unit.
(e) The contract must contain provisions to ensure that
notices to employers in connection with the collection of
support are clear and consistent and that the SDU contractor
will promptly inform an employer about any problems and any
necessary changes in connection with the collection of
support.
(f) The contract must contain appropriate management
controls to ensure that (i) all of the SDU contractor's
actions in performing the functions of the State Disbursement
Unit are reasonably planned, timely implemented, and
adequately controlled and (ii) all reports that are necessary
to provide the Illinois Department with the information
necessary to effectively monitor the quality and accuracy of
the SDU contractor's actions in performing the functions of
the State Disbursement Unit are timely filed.
(g) The contract must contain provisions specifying
standards with respect to the level of performance expected
of the SDU contractor. The contract may include provisions
for incentives and penalties in connection with the SDU
contractor's performance.
(h) The contract must contain provisions projecting the
number of active support collection and disbursement cases to
be handled by the State Disbursement Unit and estimating the
number of support disbursement transactions to be handled
each year.
(i) The contract must contain provisions requiring
compliance with all applicable federal requirements
concerning disbursement of support. The contract must also
contain provisions for the Illinois Department's regular,
periodic review of reports on disbursement performance.
(j) The contract must contain provisions requiring the
SDU contractor to submit to the Illinois Department, within
45 days after the end of each State fiscal year, a completed
American Institute of Certified Public Accountants Statement
on Auditing Standards Number 88 (SAS 88) or its successor for
the purpose of enabling the Illinois Department to
appropriately monitor the State Disbursement Unit's
performance as a service organization and to enable the
Auditor General, as the external auditor of the State
Disbursement Unit, to ensure that appropriate controls are
present.
(k) The contract must contain provisions requiring the
Illinois Department and the SDU contractor to examine the
causes of untimely disbursement of support payments and
inappropriate cost recovery and to take prompt action to
ensure the timely and accurate disbursement of support
payments. The contract must also contain provisions for the
final disposition of support payments that cannot be
processed by the State Disbursement Unit within 2 business
days.
(l) The contract must contain provisions to ensure that
neither the Illinois Department nor the SDU contractor uses
moneys collected and held in trust for the payment of support
for any purpose other than that for which the moneys were
collected.
(m) The contract must contain provisions requiring the
Illinois Department to audit the disbursement of all
emergency support payments and report to the General Assembly
the results of the audit, including, without limitation, the
number of emergency support payment checks issued by the
State Disbursement Unit, the amount of repayments received
from recipients of those checks, and amounts for which the
Illinois Department did not seek repayment.
(305 ILCS 5/12-8.1)
Sec. 12-8.1. State Disbursement Unit Revolving Fund.
(a) There is created a revolving fund to be known as the
State Disbursement Unit Revolving Fund, to be held by the
Director of the Illinois Department, outside the State
treasury State Treasurer as ex officio custodian, for the
following purposes:
(1) the deposit of all support payments received by
the Illinois Department's State Disbursement Unit; and
(2) the deposit of other funds including, but not
limited to, transfers of funds from other accounts
attributable to support payments received by the Illinois
Department's State Disbursement Unit;
(3) the deposit of any interest accrued by the
revolving fund, which interest shall be available for
payment of (i) any amounts considered to be Title IV-D
program income that must be paid to the U.S. Department
of Health and Human Services and (ii) any balance
remaining after payments made under item (i) of this
subsection (3) to the General Revenue Fund; however, the
disbursements under this subdivision (3) may not exceed
the amount of the interest accrued by the revolving fund;
(4) the disbursement of such payments to obligees
or to the assignees of the obligees in accordance with
the provisions of Title IV-D of the Social Security Act
and rules promulgated by the Department, provided that
such disbursement is based upon a payment by a payor or
obligor deposited into the revolving fund established by
this Section; and.
(5) the disbursement of funds to payors or obligors
to correct erroneous payments to the Illinois
Department's State Disbursement Unit, in an amount not to
exceed the erroneous payments.
(b) The provisions of this Section shall apply only if
the Department performs the functions of the Illinois
Department's State Disbursement Unit under paragraph (d) of
Section 10-26.
(c) Moneys in the State Disbursement Unit Revolving Fund
shall be expended upon the direction of the Director.
(Source: P.A. 91-712, eff. 7-1-00.)
(305 ILCS 5/12-10.2) (from Ch. 23, par. 12-10.2)
Sec. 12-10.2. The Child Support Enforcement Trust Fund.
(a) The Child Support Enforcement Trust Fund, to be held
by the State Treasurer as ex-officio custodian outside the
State Treasury, pursuant to the Child Support Enforcement
Program established by Title IV-D of the Social Security Act,
shall consist of:
(1) 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
established under Section 10-26,
(2) all support payments received by the Illinois
Department as a result of the Child Support Enforcement
Program established by Title IV-D of the Social Security
Act that are not required or directed to be paid to the
State Disbursement Unit established under Section 10-26,
(3) all federal grants received by the Illinois
Department funded by Title IV-D of the Social Security
Act, except those federal funds received under the Title
IV-D program as reimbursement for expenditures from the
General Revenue Fund,
(4) incentive payments received by the Illinois
Department from other states or political subdivisions of
other states for the enforcement and collection by the
Department of an assigned child support obligation in
behalf of such other states or their political
subdivisions pursuant to the provisions of Title IV-D of
the Social Security Act,
(5) incentive payments retained by the Illinois
Department from the amounts which otherwise would be paid
to the federal government to reimburse the federal
government's share of the support collection for the
Department's enforcement and collection of an assigned
support obligation on behalf of the State of Illinois
pursuant to the provisions of Title IV-D of the Social
Security Act,
(6) all fees charged by the Department for child
support enforcement services, as authorized under Title
IV-D of the Social Security Act and Section 10-1 of this
Code, and any other fees, costs, fines, recoveries, or
penalties provided for by State or federal law and
received by the Department under the Child Support
Enforcement Program established by Title IV-D of the
Social Security Act, and
(7) all amounts appropriated by the General
Assembly for deposit into the Fund,
(8) any gifts, grants, donations, or awards from
individuals, private businesses, nonprofit associations,
and governmental entities.
(b) Disbursements from this Fund shall be only for the
following purposes:
(1) for the reimbursement of funds received by the
Illinois Department through error or mistake,
(2) for payments to non-recipients, current
recipients, and former recipients of financial aid of
support payments received on their behalf under Article X
of this Code that are not required to be disbursed by the
State Disbursement Unit established under Section 10.26,
(3) for any other payments required by law to be
paid by the Illinois Department to non-recipients,
current recipients, and former recipients,
(4) for payment of any administrative expenses
incurred through fiscal year 2002, but not thereafter,
including payment to the Health Insurance Reserve Fund
for group insurance costs at the rate certified by the
Department of Central Management Services, except those
required to be paid from the General Revenue Fund,
including personal and contractual services, incurred in
performing the Title IV-D activities authorized by
Article X of this Code,
(5) for the reimbursement of the Public Assistance
Emergency Revolving Fund for expenditures made from that
Fund for payments to former recipients of public aid for
child support made to the Illinois Department when the
former public aid recipient is legally entitled to all or
part of the child support payments, pursuant to the
provisions of Title IV-D of the Social Security Act,
(6) for the payment of incentive amounts owed to
other states or political subdivisions of other states
that enforce and collect an assigned support obligation
on behalf of the State of Illinois pursuant to the
provisions of Title IV-D of the Social Security Act,
(7) for the payment of incentive amounts owed to
political subdivisions of the State of Illinois that
enforce and collect an assigned support obligation on
behalf of the State pursuant to the provisions of Title
IV-D of the Social Security Act, and
(8) for payments of any amounts which are
reimbursable to the Federal government which are required
to be paid by State warrant by either the State or
Federal government.
Disbursements from this Fund shall be by warrants drawn
by the State Comptroller on receipt of vouchers duly executed
and certified by the Illinois Department or any other State
agency that receives an appropriation from the Fund.
(c) The Illinois Department's child support
administrative expenses, as defined in Section 12-10.2a, that
are incurred after fiscal year 2002 shall be paid only as
provided in that Section.
(Source: P.A. 90-18, eff. 7-1-97; 90-587, eff. 6-4-98;
91-212, eff. 7-20-99; 91-400, eff. 7-30-99; 91-712, eff.
7-1-00.)
(305 ILCS 5/12-10.2a new)
Sec. 12-10.2a. Child Support Administrative Fund.
(a) Beginning July 1, 2002, the Child Support
Administrative Fund is created as a special fund in the State
treasury. Moneys in the Fund may be used, subject to
appropriation, only for the Department of Public Aid's child
support administrative expenses, as defined in this Section.
(b) As used in this Section, "child support
administrative expenses" means administrative expenses,
including payment to the Health Insurance Reserve Fund for
group insurance costs at the rate certified by the Department
of Central Management Services, except those required to be
paid from the General Revenue Fund, including personal and
contractual services, incurred by the Department of Public
Aid, either directly or under its contracts with SDU
contractors as defined in Section 10-26.2, in performing
activities authorized by Article X of this Code. The term
includes expenses incurred by the Department of Public Aid in
administering the Child Support Enforcement Trust Fund and
the State Disbursement Unit Revolving Fund.
(c) Child support administrative expenses incurred in
fiscal year 2003 or thereafter shall be paid only from moneys
appropriated to the Department from the Child Support
Administrative Fund.
(d) Before April 1, 2003 and before April 1 of each year
thereafter, the Department of Public Aid shall provide
notification to the General Assembly of the amount of the
Department's child support administrative expenses expected
to be incurred during the fiscal year beginning on the next
July 1, including the estimated amount required for the
operation of the State Disbursement Unit, which shall be
separately identified in the annual administrative
appropriation.
(e) For the fiscal year beginning July 1, 2002 and for
each fiscal year thereafter, the State Comptroller and the
State Treasurer shall transfer from the Child Support
Enforcement Trust Fund to the Child Support Administrative
Fund amounts as determined by the Department necessary to
enable the Department to meet its child support
administrative expenses for the then-current fiscal year.
For any fiscal year, the State Comptroller and the State
Treasurer may not transfer more than the total amount
appropriated to the Department from the Child Support
Administrative Fund for the Department's child support
administrative expenses for that fiscal year.
(f) By December 1, 2001, the Illinois Department shall
provide a corrective action plan to the General Assembly
regarding the establishment of accurate accounts in the Child
Support Enforcement Trust Fund. The plan shall include those
tasks that may be required to establish accurate accounts,
the estimated time for completion of each of those tasks and
the plan, and the estimated cost for completion of each of
the tasks and the plan.
Section 99. Effective date. This Act takes effect on
July 1, 2001.
Passed in the General Assembly May 31, 2001.
Approved June 29, 2001.
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