093_SB0044ham002











                                     LRB093 02022 DRJ 17317 a

 1                     AMENDMENT TO SENATE BILL 44

 2        AMENDMENT NO.     .  Amend Senate Bill 44, AS AMENDED, in
 3    Section 5, Sec. 2.04, by replacing all of  subsections  (a-5)
 4    and (a-10) with the following:
 5        "(a-5)  A  collection  agency  may  not  impose  a fee or
 6    charge, including  costs,  for  any  child  support  payments
 7    collected  through  the efforts of a federal, State, or local
 8    government agency, including but not limited to child support
 9    collected from federal or  State  tax  refunds,  unemployment
10    insurance benefits, or Social Security benefits.
11        If  the  obligee has received one or more payments during
12    the twelve months prior to execution of the contract  with  a
13    collection  agency,  that  collection agency may not impose a
14    fee or charge, including costs, on a current  payment  of  an
15    obligor.  In  such circumstances, the collection agency shall
16    turn over to the obligee all support collected in a month  up
17    to the amount of current support required to be paid for that
18    month.
19        As  to  any fees or charges, including costs, retained by
20    the collection agency, the agency shall provide documentation
21    to the obligee demonstrating that the child support  payments
22    resulted from the actions of the agency.
23        After  collection  of  the  total  amount  of  arrearage,
24    including statutory interest, due as of the date of execution
 
                            -2-      LRB093 02022 DRJ 17317 a
 1    of the collection contract, no further fees may be charged.
 2        (a-10)  The  Department  of Professional Regulation shall
 3    determine a fee rate of not less than  25%  but  not  greater
 4    than 35% based upon presentation by the licensees as to costs
 5    to  provide  the service and a fair rate of return. This rate
 6    shall be established by Administrative Rule.
 7        Without prejudice to the determination by the  Department
 8    of  the  appropriate  rate  through  Administrative  Rule,  a
 9    collection  agency shall impose a fee of not more than 29% of
10    the  amount  of  child  support  actually  collected  by  the
11    collection agency subject to  the  provisions  of  subsection
12    (a-5). This interim rate is based upon the March 2002 General
13    Accounting   Office   report,  "Child  Support  Enforcement",
14    GAO-02-349. This  rate  shall  apply  until  a  fee  rate  is
15    established by Administrative Rule."; and

16    after  the  last line of Sec. 2.04 in Section 5, by inserting
17    the following:

18        "Section 99.  Effective date. This Act takes effect  upon
19    becoming law.".