State of Illinois
91st General Assembly
Legislation

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[ Engrossed ][ Senate Amendment 001 ]

91_SB0394

 
                                               LRB9101608DJcd

 1        AN ACT to amend the Income Withholding for Support Act by
 2    changing Section 35.

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

 5        Section  5.  The Income Withholding for  Support  Act  is
 6    amended by changing Section 35 as follows:

 7        (750 ILCS 28/35)
 8        Sec. 35.  Duties of payor.
 9        (a)  It  shall  be  the  duty  of  any payor who has been
10    served with an income withholding notice to  deduct  and  pay
11    over  income  as  provided  in this Section.  The payor shall
12    deduct  the  amount  designated  in  the  income  withholding
13    notice, as supplemented by any notice  provided  pursuant  to
14    subsection  (f)  of  Section  45, beginning no later than the
15    next payment of income which is payable or creditable to  the
16    obligor  that  occurs  14  days following the date the income
17    withholding notice was mailed, sent  by  facsimile  or  other
18    electronic  means,  or  placed  for  personal  delivery to or
19    service on the payor.  The  payor  may  combine  all  amounts
20    withheld  for the benefit of an obligee or public office into
21    a single payment and transmit the payment with a  listing  of
22    obligors  from  whom withholding has been effected. The payor
23    shall pay the amount withheld to the obligee or public office
24    within 7 business days after the date the amount  would  (but
25    for  the  duty to withhold income) have been paid or credited
26    to the obligor. If the payor knowingly fails  to  deduct  the
27    amount  designated  in  the  income  withholding  notice  and
28    supplemental  notice, if any, or if the payor knowingly fails
29    to pay any amount withheld to the obligee  or  public  office
30    within  7  business days after the date the amount would have
31    been paid or credited to the obligor, the payor shall  pay  a
 
                            -2-                LRB9101608DJcd
 1    penalty  of  $100  for each day that the designated amount is
 2    not deducted or that the withheld amount is not paid  to  the
 3    obligee  or public office after the period of 7 business days
 4    has expired.  The failure  of  a  payor,  on  more  than  one
 5    occasion,  to  deduct  the  amount  designated  in the income
 6    withholding notice and supplemental notice, if any, or to pay
 7    amounts withheld to the obligee or  public  office  within  7
 8    business  days after the date the amount would have been paid
 9    or credited to the obligor, creates a  presumption  that  the
10    payor knowingly failed to pay over the amounts.  This penalty
11    may  be  collected  in  a  civil  action which may be brought
12    against the payor in favor of the obligee or public office. A
13    finding of a payor's nonperformance within the time  required
14    under  this Act must be documented by a certified mail return
15    receipt showing the date the income  withholding  notice  was
16    served  on  the  payor.  For purposes of this Act, a withheld
17    amount shall be considered paid by a payor on the date it  is
18    mailed  by  the  payor,  or  on  the date an electronic funds
19    transfer of the amount has been initiated by the payor, or on
20    the date delivery of the amount has  been  initiated  by  the
21    payor.  For  each  deduction,  the  payor  shall  provide the
22    obligee or public office, at the time  of  transmittal,  with
23    the  date  the  amount  would  (but  for the duty to withhold
24    income) have been paid or credited to the obligor.
25        Upon receipt of an income  withholding  notice  requiring
26    that  a  minor  child  be  named as a beneficiary of a health
27    insurance plan available through an employer or  labor  union
28    or  trade  union,  the employer or labor union or trade union
29    shall immediately enroll the minor child as a beneficiary  in
30    the   health   insurance   plan   designated  by  the  income
31    withholding notice. The employer shall withhold any  required
32    premiums  and  pay  over  any  amounts  so  withheld  and any
33    additional amounts the employer pays to the insurance carrier
34    in a timely manner.  The employer or  labor  union  or  trade
 
                            -3-                LRB9101608DJcd
 1    union shall mail to the obligee, within 15 days of enrollment
 2    or  upon request, notice of the date of coverage, information
 3    on the dependent coverage plan, and all  forms  necessary  to
 4    obtain  reimbursement  for  covered  health expenses, such as
 5    would be made available to a new employee. When an order  for
 6    dependent coverage is in effect and the insurance coverage is
 7    terminated  or  changed for any reason, the employer or labor
 8    union or trade union shall notify the obligee within 10  days
 9    of  the  termination  or  change  date  along  with notice of
10    conversion privileges.
11        For withholding of income, the payor shall be entitled to
12    receive a fee not to exceed $5 per month to be taken from the
13    income to be paid to the obligor.
14        (b)  Whenever the obligor is no longer  receiving  income
15    from  the  payor, the payor shall return a copy of the income
16    withholding notice to the obligee or public office and  shall
17    provide information for the purpose of enforcing this Act.
18        (c)  Withholding  of  income under this Act shall be made
19    without regard  to  any  prior  or  subsequent  garnishments,
20    attachments,   wage  assignments,  or  any  other  claims  of
21    creditors.  Withholding of income under this Act shall not be
22    in excess of the maximum amounts permitted under the  federal
23    Consumer  Credit Protection Act. If the payor has been served
24    with more than one income withholding  notice  pertaining  to
25    the  same  obligor, the payor shall allocate income available
26    for  withholding  on  a  proportionate  share  basis,  giving
27    priority to current support payments.  If there is any income
28    available for withholding after withholding for  all  current
29    support  obligations,  the payor shall allocate the income to
30    past due support payments ordered  in  cases  in  which  cash
31    assistance  under  the  Illinois Public Aid Code is not being
32    provided to the obligee and then to past due support payments
33    ordered in cases in which cash assistance under the  Illinois
34    Public  Aid  Code is being provided to the obligee, both on a
 
                            -4-                LRB9101608DJcd
 1    proportionate share basis.  A  payor  who  complies  with  an
 2    income  withholding  notice that is regular on its face shall
 3    not be  subject  to  civil  liability  with  respect  to  any
 4    individual,  any  agency,  or any creditor of the obligor for
 5    conduct in compliance with the notice.
 6        (d)  No payor shall discharge, discipline, refuse to hire
 7    or otherwise penalize any obligor  because  of  the  duty  to
 8    withhold income.
 9    (Source: P.A. 90-673, eff. 1-1-99.)

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