HB3683 EnrolledLRB099 09912 HEP 30126 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 Illinois Public Aid Code is amended by
5changing Sections 10-25 and 10-25.5 as follows:
 
6    (305 ILCS 5/10-25)
7    Sec. 10-25. Administrative liens and levies on real
8property for past-due child support and for fines against a
9payor who wilfully fails to withhold or pay over income
10pursuant to a properly served income withholding notice or
11otherwise fails to comply with any duties imposed by the Income
12Withholding for Support Act.
13    (a) Notwithstanding any other State or local law to the
14contrary, the State shall have a lien on all legal and
15equitable interests of responsible relatives in their real
16property in the amount of past-due child support owing pursuant
17to an order for child support entered under Sections 10-10 and
1810-11 of this Code, or under the Illinois Marriage and
19Dissolution of Marriage Act, the Non-Support of Spouse and
20Children Act, the Non-Support Punishment Act, the Uniform
21Interstate Family Support Act, or the Illinois Parentage Act of
221984.
23    (a-5) The State shall have a lien on all legal and

 

 

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1equitable interests of a payor, as that term is described in
2the Income Withholding for Support Act, in the payor's real
3property in the amount of any fine imposed by the Illinois
4Department pursuant to the Income Withholding for Support Act.
5    (b) The Illinois Department shall provide by rule for
6notice to and an opportunity to be heard by each responsible
7relative or payor affected, and any final administrative
8decision rendered by the Illinois Department shall be reviewed
9only under and in accordance with the Administrative Review
10Law.
11    (c) When enforcing a lien under subsection (a) of this
12Section, the Illinois Department shall have the authority to
13execute notices of administrative liens and levies, which shall
14contain the name and address of the responsible relative or
15payor, a legal description of the real property to be levied,
16the fact that a lien is being claimed for past-due child
17support or for the fines imposed on a payor pursuant to the
18Income Withholding for Support Act, and such other information
19as the Illinois Department may by rule prescribe. The Illinois
20Department shall record the notice of lien with the recorder or
21registrar of titles of the county or counties in which the real
22estate is located.
23    (d) The State's lien under subsection (a) shall be
24enforceable upon the recording or filing of a notice of lien
25with the recorder or registrar of titles of the county or
26counties in which the real estate is located. The lien shall be

 

 

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1prior to any lien thereafter recorded or filed and shall be
2notice to a subsequent purchaser, assignor, or encumbrancer of
3the existence and nature of the lien. The lien shall be
4inferior to the lien of general taxes, special assessment, and
5special taxes heretofore or hereafter levied by any political
6subdivision or municipal corporation of the State.
7    In the event that title to the land to be affected by the
8notice of lien is registered under the Registered Titles
9(Torrens) Act, the notice shall be filed in the office of the
10registrar of titles as a memorial or charge upon each folium of
11the register of titles affected by the notice; but the State
12shall not have a preference over the rights of any bona fide
13purchaser, mortgagee, judgment creditor, or other lien holders
14registered prior to the registration of the notice.
15    (e) The recorder or registrar of titles of each county
16shall procure a file labeled "Child Support Lien Notices" and
17an index book labeled "Child Support Lien Notices". When notice
18of any lien is presented to the recorder or registrar of titles
19for filing, the recorder or registrar of titles shall file it
20in numerical order in the file and shall enter it
21alphabetically in the index. The entry shall show the name and
22last known address of the person or payor named in the notice,
23the serial number of the notice, the date and hour of filing,
24and the amount of child support or the amount of the fine
25imposed on the payor due at the time when the lien is filed.
26    (f) The Illinois Department shall not be required to

 

 

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1furnish bond or make a deposit for or pay any costs or fees of
2any court or officer thereof in any legal proceeding involving
3the lien.
4    (g) To protect the lien of the State for past-due child
5support and for any fine imposed against a payor, the Illinois
6Department may, from funds that are available for that purpose,
7pay or provide for the payment of necessary or essential
8repairs, purchase tax certificates, pay balances due on land
9contracts, or pay or cause to be satisfied any prior liens on
10the property to which the lien hereunder applies.
11    (h) A lien on real property under this Section shall be
12released pursuant to Section 12-101 of the Code of Civil
13Procedure.
14    (i) The Illinois Department, acting in behalf of the State,
15may foreclose the lien in a judicial proceeding to the same
16extent and in the same manner as in the enforcement of other
17liens. The process, practice, and procedure for the foreclosure
18shall be the same as provided in the Code of Civil Procedure.
19(Source: P.A. 97-186, eff. 7-22-11.)
 
20    (305 ILCS 5/10-25.5)
21    Sec. 10-25.5. Administrative liens and levies on personal
22property for past-due child support and for fines against a
23payor who wilfully fails to withhold or pay over income
24pursuant to a properly served income withholding notice or
25otherwise fails to comply with any duties imposed by the Income

 

 

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1Withholding for Support Act.
2    (a) Notwithstanding any other State or local law to the
3contrary, the State shall have a lien on all legal and
4equitable interests of responsible relatives in their personal
5property, including any account in a financial institution as
6defined in Section 10-24, or in the case of an insurance
7company or benefit association only in accounts as defined in
8Section 10-24, in the amount of past-due child support owing
9pursuant to an order for child support entered under Sections
1010-10 and 10-11 of this Code, or under the Illinois Marriage
11and Dissolution of Marriage Act, the Non-Support of Spouse and
12Children Act, the Non-Support Punishment Act, the Uniform
13Interstate Family Support Act, or the Illinois Parentage Act of
141984.
15    (a-5) The State shall have a lien on all legal and
16equitable interests of a payor, as that term is described in
17the Income Withholding for Support Act, in the payor's personal
18property in the amount of any fine imposed by the Illinois
19Department pursuant to the Income Withholding for Support Act.
20    (b) The Illinois Department shall provide by rule for
21notice to and an opportunity to be heard by each responsible
22relative or payor affected, and any final administrative
23decision rendered by the Illinois Department shall be reviewed
24only under and in accordance with the Administrative Review
25Law.
26    (c) When enforcing a lien under subsection (a) of this

 

 

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1Section, the Illinois Department shall have the authority to
2execute notices of administrative liens and levies, which shall
3contain the name and address of the responsible relative or
4payor, a description of the property to be levied, the fact
5that a lien is being claimed for past-due child support, and
6such other information as the Illinois Department may by rule
7prescribe. The Illinois Department may serve the notice of lien
8or levy upon any financial institution where the accounts as
9defined in Section 10-24 of the responsible relative may be
10held, for encumbrance or surrender of the accounts as defined
11in Section 10-24 by the financial institution.
12    (d) The Illinois Department shall enforce its lien against
13the responsible relative's or payor's personal property, other
14than accounts as defined in Section 10-24 in financial
15institutions, and levy upon such personal property in the
16manner provided for enforcement of judgments contained in
17Article XII of the Code of Civil Procedure.
18    (e) The Illinois Department shall not be required to
19furnish bond or make a deposit for or pay any costs or fees of
20any court or officer thereof in any legal proceeding involving
21the lien.
22    (f) To protect the lien of the State for past-due child
23support and for any fine imposed on a payor, the Illinois
24Department may, from funds that are available for that purpose,
25pay or provide for the payment of necessary or essential
26repairs, purchase tax certificates, or pay or cause to be

 

 

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1satisfied any prior liens on the property to which the lien
2hereunder applies.
3    (g) A lien on personal property under this Section shall be
4released in the manner provided under Article XII of the Code
5of Civil Procedure. Notwithstanding the foregoing, a lien under
6this Section on accounts as defined in Section 10-24 shall
7expire upon the passage of 120 days from the date of issuance
8of the Notice of Lien or Levy by the Illinois Department.
9However, the lien shall remain in effect during the pendency of
10any appeal or protest.
11    (h) A lien created under this Section is subordinate to any
12prior lien of the financial institution or any prior lien
13holder or any prior right of set-off that the financial
14institution may have against the assets, or in the case of an
15insurance company or benefit association only in the accounts
16as defined in Section 10-24.
17    (i) A financial institution has no obligation under this
18Section to hold, encumber, or surrender the assets, or in the
19case of an insurance company or benefit association only the
20accounts as defined in Section 10-24, until the financial
21institution has been properly served with a subpoena, summons,
22warrant, court or administrative order, or administrative lien
23and levy requiring that action.
24(Source: P.A. 97-186, eff. 7-22-11.)
 
25    Section 10. The Income Withholding for Support Act is

 

 

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1amended by adding Section 50.5 as follows:
 
2    (750 ILCS 28/50.5 new)
3    Sec. 50.5. Administrative fines imposed by the Department
4of Healthcare and Family Services.
5    (a) The administrative fines provided for under this
6Section are in addition to any existing fines or penalties
7against a payor provided for in other Sections of this Act and
8do not affect who would be entitled to receive those existing
9fines and penalties. In addition to any fines or penalties
10provided for in this Act, when a payor wilfully fails, after
11receiving 2 reminders from the Department of Healthcare and
12Family Services, to withhold or pay over income pursuant to a
13properly served income withholding notice or otherwise fails to
14comply with any duties imposed by this Act, the Department may
15impose a fine upon the payor not to exceed $1,000 per payroll
16period. The fine shall be payable to the Department of
17Healthcare and Family Services and may be used to defray the
18costs incurred by the Department in the collection of the
19past-due support and penalties provided for in this Act. The
20Department of Healthcare and Family Services shall place the
21fines collected into a special fund created to implement the
22purposes of this Section and the fines shall be utilized for
23the purposes provided for in this Section. After deducting the
24costs incurred by the Department of Healthcare and Family
25Services in the collection of the past-due support and

 

 

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1penalties provided for in this Act, the remainder of the fines
2collected under this Section shall be distributed
3proportionally to the counties based on their population. The
4counties shall use these funds to assist low income families in
5defraying the costs associated with seeking parenting time.
6    (b) The Department of Healthcare and Family Services may
7collect the fine through administrative liens and levies on the
8real and personal property of the payor as provided in Sections
910-25 and 10-25.5 of the Illinois Public Aid Code.
10    (c) The payor may contest the fine as provided in Sections
1110-25 and 10-25.5 of the Illinois Public Aid Code.
12    (d) The Department of Healthcare and Family Services may
13adopt rules necessary for the implementation of this Section.
 
14    Section 99. Effective date. This Act takes effect July 1,
152017.