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| [ Introduced ] | [ Senate Amendment 001 ] |
91_SB0394eng SB394 Engrossed 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 SB394 Engrossed -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 deduct or to pay over the amounts. 11 This penalty may be collected in a civil action which may be 12 brought against the payor in favor of the obligee or public 13 office. A finding of a payor's nonperformance within the time 14 required under this Act must be documented by a certified 15 mail return receipt showing the date the income withholding 16 notice was served on the payor. For purposes of this Act, a 17 withheld amount shall be considered paid by a payor on the 18 date it is mailed by the payor, or on the date an electronic 19 funds transfer of the amount has been initiated by the payor, 20 or on the date delivery of the amount has been initiated by 21 the 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 SB394 Engrossed -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 SB394 Engrossed -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.)