Sen. Kimberly A. Lightford

Filed: 5/13/2015

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3683

2    AMENDMENT NO. ______. Amend House Bill 3683 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1to an order for child support entered under Sections 10-10 and
210-11 of this Code, or under the Illinois Marriage and
3Dissolution of Marriage Act, the Non-Support of Spouse and
4Children Act, the Non-Support Punishment Act, the Uniform
5Interstate Family Support Act, or the Illinois Parentage Act of
61984.
7    (a-5) The State shall have a lien on all legal and
8equitable interests of a payor, as that term is described in
9the Income Withholding for Support Act, in the payor's real
10property in the amount of any fine imposed by the Illinois
11Department pursuant to the Income Withholding for Support Act.
12    (b) The Illinois Department shall provide by rule for
13notice to and an opportunity to be heard by each responsible
14relative or payor affected, and any final administrative
15decision rendered by the Illinois Department shall be reviewed
16only under and in accordance with the Administrative Review
17Law.
18    (c) When enforcing a lien under subsection (a) of this
19Section, the Illinois Department shall have the authority to
20execute notices of administrative liens and levies, which shall
21contain the name and address of the responsible relative or
22payor, a legal description of the real property to be levied,
23the fact that a lien is being claimed for past-due child
24support or for the fines imposed on a payor pursuant to the
25Income Withholding for Support Act, and such other information
26as the Illinois Department may by rule prescribe. The Illinois

 

 

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1Department shall record the notice of lien with the recorder or
2registrar of titles of the county or counties in which the real
3estate is located.
4    (d) The State's lien under subsection (a) shall be
5enforceable upon the recording or filing of a notice of lien
6with the recorder or registrar of titles of the county or
7counties in which the real estate is located. The lien shall be
8prior to any lien thereafter recorded or filed and shall be
9notice to a subsequent purchaser, assignor, or encumbrancer of
10the existence and nature of the lien. The lien shall be
11inferior to the lien of general taxes, special assessment, and
12special taxes heretofore or hereafter levied by any political
13subdivision or municipal corporation of the State.
14    In the event that title to the land to be affected by the
15notice of lien is registered under the Registered Titles
16(Torrens) Act, the notice shall be filed in the office of the
17registrar of titles as a memorial or charge upon each folium of
18the register of titles affected by the notice; but the State
19shall not have a preference over the rights of any bona fide
20purchaser, mortgagee, judgment creditor, or other lien holders
21registered prior to the registration of the notice.
22    (e) The recorder or registrar of titles of each county
23shall procure a file labeled "Child Support Lien Notices" and
24an index book labeled "Child Support Lien Notices". When notice
25of any lien is presented to the recorder or registrar of titles
26for filing, the recorder or registrar of titles shall file it

 

 

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1in numerical order in the file and shall enter it
2alphabetically in the index. The entry shall show the name and
3last known address of the person or payor named in the notice,
4the serial number of the notice, the date and hour of filing,
5and the amount of child support or the amount of the fine
6imposed on the payor due at the time when the lien is filed.
7    (f) The Illinois Department shall not be required to
8furnish bond or make a deposit for or pay any costs or fees of
9any court or officer thereof in any legal proceeding involving
10the lien.
11    (g) To protect the lien of the State for past-due child
12support and for any fine imposed against a payor, the Illinois
13Department may, from funds that are available for that purpose,
14pay or provide for the payment of necessary or essential
15repairs, purchase tax certificates, pay balances due on land
16contracts, or pay or cause to be satisfied any prior liens on
17the property to which the lien hereunder applies.
18    (h) A lien on real property under this Section shall be
19released pursuant to Section 12-101 of the Code of Civil
20Procedure.
21    (i) The Illinois Department, acting in behalf of the State,
22may foreclose the lien in a judicial proceeding to the same
23extent and in the same manner as in the enforcement of other
24liens. The process, practice, and procedure for the foreclosure
25shall be the same as provided in the Code of Civil Procedure.
26(Source: P.A. 97-186, eff. 7-22-11.)
 

 

 

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1    (305 ILCS 5/10-25.5)
2    Sec. 10-25.5. Administrative liens and levies on personal
3property for past-due child support and for fines against a
4payor who wilfully fails to withhold or pay over income
5pursuant to a properly served income withholding notice or
6otherwise fails to comply with any duties imposed by the Income
7Withholding for Support Act.
8    (a) Notwithstanding any other State or local law to the
9contrary, the State shall have a lien on all legal and
10equitable interests of responsible relatives in their personal
11property, including any account in a financial institution as
12defined in Section 10-24, or in the case of an insurance
13company or benefit association only in accounts as defined in
14Section 10-24, in the amount of past-due child support owing
15pursuant to an order for child support entered under Sections
1610-10 and 10-11 of this Code, or under the Illinois Marriage
17and Dissolution of Marriage Act, the Non-Support of Spouse and
18Children Act, the Non-Support Punishment Act, the Uniform
19Interstate Family Support Act, or the Illinois Parentage Act of
201984.
21    (a-5) The State shall have a lien on all legal and
22equitable interests of a payor, as that term is described in
23the Income Withholding for Support Act, in the payor's personal
24property in the amount of any fine imposed by the Illinois
25Department pursuant to the Income Withholding for Support Act.

 

 

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1    (b) The Illinois Department shall provide by rule for
2notice to and an opportunity to be heard by each responsible
3relative or payor affected, and any final administrative
4decision rendered by the Illinois Department shall be reviewed
5only under and in accordance with the Administrative Review
6Law.
7    (c) When enforcing a lien under subsection (a) of this
8Section, the Illinois Department shall have the authority to
9execute notices of administrative liens and levies, which shall
10contain the name and address of the responsible relative or
11payor, a description of the property to be levied, the fact
12that a lien is being claimed for past-due child support, and
13such other information as the Illinois Department may by rule
14prescribe. The Illinois Department may serve the notice of lien
15or levy upon any financial institution where the accounts as
16defined in Section 10-24 of the responsible relative may be
17held, for encumbrance or surrender of the accounts as defined
18in Section 10-24 by the financial institution.
19    (d) The Illinois Department shall enforce its lien against
20the responsible relative's or payor's personal property, other
21than accounts as defined in Section 10-24 in financial
22institutions, and levy upon such personal property in the
23manner provided for enforcement of judgments contained in
24Article XII of the Code of Civil Procedure.
25    (e) The Illinois Department shall not be required to
26furnish bond or make a deposit for or pay any costs or fees of

 

 

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1any court or officer thereof in any legal proceeding involving
2the lien.
3    (f) To protect the lien of the State for past-due child
4support and for any fine imposed on a payor, the Illinois
5Department may, from funds that are available for that purpose,
6pay or provide for the payment of necessary or essential
7repairs, purchase tax certificates, or pay or cause to be
8satisfied any prior liens on the property to which the lien
9hereunder applies.
10    (g) A lien on personal property under this Section shall be
11released in the manner provided under Article XII of the Code
12of Civil Procedure. Notwithstanding the foregoing, a lien under
13this Section on accounts as defined in Section 10-24 shall
14expire upon the passage of 120 days from the date of issuance
15of the Notice of Lien or Levy by the Illinois Department.
16However, the lien shall remain in effect during the pendency of
17any appeal or protest.
18    (h) A lien created under this Section is subordinate to any
19prior lien of the financial institution or any prior lien
20holder or any prior right of set-off that the financial
21institution may have against the assets, or in the case of an
22insurance company or benefit association only in the accounts
23as defined in Section 10-24.
24    (i) A financial institution has no obligation under this
25Section to hold, encumber, or surrender the assets, or in the
26case of an insurance company or benefit association only the

 

 

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1accounts as defined in Section 10-24, until the financial
2institution has been properly served with a subpoena, summons,
3warrant, court or administrative order, or administrative lien
4and levy requiring that action.
5(Source: P.A. 97-186, eff. 7-22-11.)
 
6    Section 10. The Income Withholding for Support Act is
7amended by adding Section 50.5 as follows:
 
8    (750 ILCS 28/50.5 new)
9    Sec. 50.5. Administrative fines imposed by the Department
10of Healthcare and Family Services.
11    (a) The administrative fines provided for under this
12Section are in addition to any existing fines or penalties
13against a payor provided for in other Sections of this Act and
14do not affect who would be entitled to receive those existing
15fines and penalties. In addition to any fines or penalties
16provided for in this Act, when a payor wilfully fails, after
17receiving 2 reminders from the Department of Healthcare and
18Family Services, to withhold or pay over income pursuant to a
19properly served income withholding notice or otherwise fails to
20comply with any duties imposed by this Act, the Department may
21impose a fine upon the payor not to exceed $1,000 per payroll
22period. The fine shall be payable to the Department of
23Healthcare and Family Services and may be used to defray the
24costs incurred by the Department in the collection of the

 

 

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1past-due support and penalties provided for in this Act. The
2Department of Healthcare and Family Services shall place the
3fines collected into a special fund created to implement the
4purposes of this Section and the fines shall be utilized for
5the purposes provided for in this Section. After deducting the
6costs incurred by the Department of Healthcare and Family
7Services in the collection of the past-due support and
8penalties provided for in this Act, the remainder of the fines
9collected under this Section shall be distributed
10proportionally to the counties based on their population. The
11counties shall use these funds to assist low income families in
12defraying the costs associated with seeking parenting time.
13    (b) The Department of Healthcare and Family Services may
14collect the fine through administrative liens and levies on the
15real and personal property of the payor as provided in Sections
1610-25 and 10-25.5 of the Illinois Public Aid Code.
17    (c) The payor may contest the fine as provided in Sections
1810-25 and 10-25.5 of the Illinois Public Aid Code.
19    (d) The Department of Healthcare and Family Services may
20adopt rules necessary for the implementation of this Section.
 
21    Section 99. Effective date. This Act takes effect July 1,
222017.".