093_SB1503enr

 
SB1503 Enrolled                      LRB093 03861 LCB 11544 b

 1        AN ACT concerning child support.

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

 4        Section 5.  The Income Withholding  for  Support  Act  is
 5    amended 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
 9    served with an income withholding notice to  deduct  and  pay
10    over  income  as  provided  in this Section.  The payor shall
11    deduct  the  amount  designated  in  the  income  withholding
12    notice, as supplemented by any notice  provided  pursuant  to
13    subsection  (f)  of  Section  45, beginning no later than the
14    next payment of income which is payable or creditable to  the
15    obligor  that  occurs  14  days following the date the income
16    withholding notice was mailed, sent  by  facsimile  or  other
17    electronic  means,  or  placed  for  personal  delivery to or
18    service on the payor.  The  payor  may  combine  all  amounts
19    withheld  for the benefit of an obligee or public office into
20    a single payment and transmit the payment with a  listing  of
21    obligors  from  whom withholding has been effected. The payor
22    shall pay the amount withheld to the State Disbursement  Unit
23    within  7  business days after the date the amount would (but
24    for the duty to withhold income) have been paid  or  credited
25    to  the obligor. If the payor knowingly fails to withhold the
26    amount designated in the income withholding notice or to  pay
27    any  amount  withheld to the State Disbursement Unit within 7
28    business days after the date the amount would have been  paid
29    or  credited  to  the  obligor,  then  the  payor shall pay a
30    penalty of  $100  for  each  day  that  the  withheld  amount
31    designated  in  the income withholding notice (whether or not
 
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 1    withheld by the payor) is not paid to the State  Disbursement
 2    Unit  after  the  period of 7 business days has expired.  The
 3    failure of a payor, on more than one occasion, to pay amounts
 4    withheld to the State Disbursement  Unit  within  7  business
 5    days  after  the  date  the  amount  would  have been paid or
 6    credited to the obligor creates a presumption that the  payor
 7    knowingly  failed  to pay over the amounts.  This penalty may
 8    be collected in a civil action which may be  brought  against
 9    the payor in favor of the obligee or public office. A finding
10    of  a  payor's  nonperformance within the time required under
11    this Act must  be  documented  by  a  certified  mail  return
12    receipt  showing  the  date the income withholding notice was
13    served on the payor. For purposes of  this  Act,  a  withheld
14    amount  shall be considered paid by a payor on the date it is
15    mailed by the payor, or  on  the  date  an  electronic  funds
16    transfer of the amount has been initiated by the payor, or on
17    the  date  delivery  of  the amount has been initiated by the
18    payor. For each deduction, the payor shall provide the  State
19    Disbursement  Unit, at the time of transmittal, with the date
20    the amount would (but for the duty to withhold  income)  have
21    been paid or credited to the obligor.
22        After  June  30,  2000,  every payor that has 250 or more
23    employees shall use electronic  funds  transfer  to  pay  all
24    amounts withheld under this Section. During the year 2001 and
25    during  each year thereafter, every payor that has fewer than
26    250 employees and that withheld  income  under  this  Section
27    pursuant  to  10  or  more  income withholding notices during
28    December of the preceding year  shall  use  electronic  funds
29    transfer to pay all amounts withheld under this Section.
30        Upon  receipt  of  an income withholding notice requiring
31    that a minor child be named as  a  beneficiary  of  a  health
32    insurance  plan  available through an employer or labor union
33    or trade union, the employer or labor union  or  trade  union
34    shall  immediately enroll the minor child as a beneficiary in
 
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 1    the  health  insurance  plan   designated   by   the   income
 2    withholding  notice. The employer shall withhold any required
 3    premiums and  pay  over  any  amounts  so  withheld  and  any
 4    additional amounts the employer pays to the insurance carrier
 5    in  a  timely  manner.   The employer or labor union or trade
 6    union shall mail to the obligee, within 15 days of enrollment
 7    or upon request, notice of the date of coverage,  information
 8    on  the  dependent  coverage plan, and all forms necessary to
 9    obtain reimbursement for covered  health  expenses,  such  as
10    would  be made available to a new employee. When an order for
11    dependent coverage is in effect and the insurance coverage is
12    terminated or changed for any reason, the employer  or  labor
13    union  or trade union shall notify the obligee within 10 days
14    of the termination  or  change  date  along  with  notice  of
15    conversion privileges.
16        For withholding of income, the payor shall be entitled to
17    receive a fee not to exceed $5 per month to be taken from the
18    income to be paid to the obligor.
19        (b)  Whenever  the  obligor is no longer receiving income
20    from the payor, the payor shall return a copy of  the  income
21    withholding  notice to the obligee or public office and shall
22    provide information for the purpose of enforcing this Act.
23        (c)  Withholding of income under this Act shall  be  made
24    without  regard  to  any  prior  or  subsequent garnishments,
25    attachments,  wage  assignments,  or  any  other  claims   of
26    creditors.  Withholding of income under this Act shall not be
27    in  excess of the maximum amounts permitted under the federal
28    Consumer  Credit  Protection  Act.   Income   available   for
29    withholding  shall  be  applied  first to the current support
30    obligation, then to any premium required for employer,  labor
31    union,  or  trade  union-related  health  insurance  coverage
32    ordered  under  the  order  for support, and then to payments
33    required  on  past-due  support  obligations.   If  there  is
34    insufficient available  income  remaining  to  pay  the  full
 
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 1    amount   of  the  required  health  insurance  premium  after
 2    withholding of income for  the  current  support  obligation,
 3    then  the  remaining  available  income  shall  be applied to
 4    payments required on past-due  support  obligations.  If  the
 5    payor  has  been served with more than one income withholding
 6    notice pertaining  to  the  same  obligor,  the  payor  shall
 7    allocate  income available for withholding on a proportionate
 8    share basis, giving priority to current support payments.   A
 9    payor  who complies with an income withholding notice that is
10    regular on its face shall not be subject to  civil  liability
11    with  respect  to any individual, any agency, or any creditor
12    of the obligor for conduct in compliance with the notice.
13        (d)  No payor shall discharge, discipline, refuse to hire
14    or otherwise penalize any obligor  because  of  the  duty  to
15    withhold income.
16    (Source:  P.A.  91-212,  eff.  7-20-99;  91-677, eff. 1-5-00;
17    92-590, eff. 7-1-02.)