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1 | AN ACT concerning civil law.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Public Aid Code is amended by | ||||||
5 | changing Sections 10-25 and 10-25.5 as follows:
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6 | (305 ILCS 5/10-25)
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7 | Sec. 10-25.
Administrative liens and levies on real | ||||||
8 | property for
past-due child support and for fines against a | ||||||
9 | payor of income who wilfully fails to withhold or pay over | ||||||
10 | income pursuant to a properly served income withholding notice | ||||||
11 | or otherwise fails to comply with any duties imposed by the | ||||||
12 | Income Withholding for Support Act .
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13 | (a) Notwithstanding any other State or local law to the | ||||||
14 | contrary, the State shall have a lien on all legal and | ||||||
15 | equitable interests of
responsible relatives in their real | ||||||
16 | property
in the amount of past-due child support owing pursuant | ||||||
17 | to an order
for child support entered under Sections 10-10 and | ||||||
18 | 10-11 of this Code, or under
the Illinois Marriage and | ||||||
19 | Dissolution of Marriage Act, the Non-Support of
Spouse and | ||||||
20 | Children Act, the Non-Support Punishment Act, the Uniform
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21 | Interstate Family Support Act, or the
Illinois Parentage Act of | ||||||
22 | 1984.
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23 | (a-5) The State shall have a lien on all legal and |
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1 | equitable interests of a payor of income, as that term is | ||||||
2 | described in the Income Withholding for Support Act, in the | ||||||
3 | payor's real property in the amount of any fine imposed by the | ||||||
4 | Illinois Department pursuant to the Income Withholding for | ||||||
5 | Support Act. | ||||||
6 | (b) The Illinois Department shall provide by rule for | ||||||
7 | notice to and an
opportunity to be heard by each responsible | ||||||
8 | relative or payor of income affected, and any final
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9 | administrative decision rendered by the Illinois Department | ||||||
10 | shall be reviewed
only under
and in accordance with the | ||||||
11 | Administrative Review Law.
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12 | (c) When enforcing a lien under subsection (a) of this | ||||||
13 | Section, the
Illinois Department shall have the authority to | ||||||
14 | execute notices of
administrative liens and levies, which shall | ||||||
15 | contain the name and address of
the responsible relative or | ||||||
16 | payor of income , a legal description of the real property
to be | ||||||
17 | levied, the fact that a lien
is being claimed for past-due | ||||||
18 | child support or for the fines imposed on a payor of income | ||||||
19 | pursuant to the Income Withholding for Support Act , and such | ||||||
20 | other information as the
Illinois Department may by rule | ||||||
21 | prescribe. The Illinois Department shall
record the notice of | ||||||
22 | lien with the recorder or registrar of titles of
the county or | ||||||
23 | counties in which the real estate is located.
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24 | (d) The State's lien under subsection (a) shall be
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25 | enforceable upon the recording or filing of a notice of lien | ||||||
26 | with the recorder
or registrar of titles of the county or |
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1 | counties in which the real estate is
located. The lien shall be | ||||||
2 | prior to any lien thereafter recorded or filed and
shall be | ||||||
3 | notice to a subsequent purchaser, assignor, or encumbrancer of | ||||||
4 | the
existence and nature of the lien. The lien shall be | ||||||
5 | inferior to the lien of
general taxes, special assessment, and | ||||||
6 | special taxes heretofore or hereafter
levied by any political | ||||||
7 | subdivision or municipal corporation of the State.
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8 | In the event that title to the land to be affected by the | ||||||
9 | notice of lien is
registered under the Registered Titles | ||||||
10 | (Torrens) Act, the notice shall be filed
in the office of the | ||||||
11 | registrar of titles as a memorial or charge upon each
folium of | ||||||
12 | the register of titles affected by the notice; but the State | ||||||
13 | shall
not have a preference over the rights of any bona fide | ||||||
14 | purchaser, mortgagee,
judgment creditor, or other lien holders | ||||||
15 | registered prior to the registration
of the notice.
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16 | (e) The recorder or registrar of titles of each county | ||||||
17 | shall procure
a file labeled "Child Support Lien Notices" and | ||||||
18 | an index book labeled "Child
Support Lien Notices". When notice | ||||||
19 | of any lien is presented to the recorder or
registrar of titles | ||||||
20 | for filing,
the recorder or registrar of titles shall file it | ||||||
21 | in numerical order in the
file and shall enter it
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22 | alphabetically in the index. The entry shall show the name and | ||||||
23 | last known
address of the person or payor of income named in | ||||||
24 | the notice, the serial number of the notice, the
date and hour | ||||||
25 | of filing, and the amount of child support or the amount of the | ||||||
26 | fine imposed on the payor of income due at the time when
the |
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1 | lien is filed.
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2 | (f) The Illinois Department shall not be required to | ||||||
3 | furnish bond or make a
deposit for or pay any costs or fees of | ||||||
4 | any court or officer thereof in any
legal proceeding involving | ||||||
5 | the lien.
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6 | (g) To protect the lien of the State for past-due child | ||||||
7 | support and for any fine imposed against a payor of income , the
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8 | Illinois Department may, from funds that are available for that | ||||||
9 | purpose, pay
or provide for the payment of necessary or | ||||||
10 | essential repairs, purchase tax
certificates, pay balances due | ||||||
11 | on land contracts, or pay or cause to be
satisfied any prior | ||||||
12 | liens on the property to which the lien hereunder applies.
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13 | (h) A lien on real property under this Section shall be | ||||||
14 | released
pursuant
to Section 12-101 of the Code of Civil | ||||||
15 | Procedure.
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16 | (i) The Illinois Department, acting in behalf of the
State, | ||||||
17 | may foreclose the lien in a judicial proceeding to the same | ||||||
18 | extent and
in the same manner as in the enforcement of other | ||||||
19 | liens. The process,
practice, and procedure for the foreclosure | ||||||
20 | shall be the same as provided in
the Code of Civil Procedure.
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21 | (Source: P.A. 97-186, eff. 7-22-11.)
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22 | (305 ILCS 5/10-25.5)
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23 | Sec. 10-25.5.
Administrative liens and levies on personal | ||||||
24 | property for
past-due child support and for fines against a | ||||||
25 | payor of income who wilfully fails to withhold or pay over |
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1 | income pursuant to a properly served income withholding notice | ||||||
2 | or otherwise fails to comply with any duties imposed by the | ||||||
3 | Income Withholding for Support Act .
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4 | (a) Notwithstanding any other State or local law to the | ||||||
5 | contrary, the State shall have a lien on all legal and | ||||||
6 | equitable interests of
responsible relatives in their personal | ||||||
7 | property, including any account in a
financial institution as | ||||||
8 | defined
in Section 10-24, or in the case of an insurance | ||||||
9 | company or benefit association
only in accounts as defined in | ||||||
10 | Section 10-24, in the amount of past-due child
support owing | ||||||
11 | pursuant to an order
for child support entered under Sections | ||||||
12 | 10-10 and 10-11 of this Code, or under
the Illinois Marriage | ||||||
13 | and Dissolution of Marriage Act, the Non-Support of
Spouse and | ||||||
14 | Children Act, the Non-Support Punishment Act, the Uniform
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15 | Interstate Family Support Act, or the
Illinois Parentage Act of | ||||||
16 | 1984.
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17 | (a-5) The State shall have a lien on all legal and | ||||||
18 | equitable interests of a payor of income, as that term is | ||||||
19 | described in the Income Withholding for Support Act, in the | ||||||
20 | payor's personal property in the amount of any fine imposed by | ||||||
21 | the Illinois Department pursuant to the Income Withholding for | ||||||
22 | Support Act. | ||||||
23 | (b) The Illinois Department shall provide by rule for | ||||||
24 | notice to and an
opportunity to be heard by each responsible | ||||||
25 | relative or payor of income affected, and any final
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26 | administrative decision rendered by the Illinois Department |
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1 | shall be reviewed
only under
and in accordance with the | ||||||
2 | Administrative Review Law.
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3 | (c) When enforcing a lien under subsection (a) of this | ||||||
4 | Section, the
Illinois Department shall have the authority to | ||||||
5 | execute notices of
administrative liens and levies, which shall | ||||||
6 | contain the name and address of
the responsible relative or | ||||||
7 | payor of income , a description of the property
to be levied, | ||||||
8 | the fact that a lien
is being claimed for past-due child | ||||||
9 | support, and such other information as the
Illinois Department | ||||||
10 | may by rule prescribe. The Illinois Department may
serve the | ||||||
11 | notice of lien or levy upon any financial institution where
the | ||||||
12 | accounts as defined in Section 10-24 of the responsible | ||||||
13 | relative may be
held, for encumbrance or surrender of the | ||||||
14 | accounts as defined in Section 10-24
by the financial | ||||||
15 | institution.
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16 | (d) The Illinois Department shall enforce its lien against | ||||||
17 | the responsible
relative's or payor's of income personal | ||||||
18 | property, other than accounts as defined in Section 10-24
in | ||||||
19 | financial institutions,
and
levy upon such personal property in | ||||||
20 | the manner provided for enforcement of
judgments contained in | ||||||
21 | Article XII of the Code of Civil Procedure.
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22 | (e) The Illinois Department shall not be required to | ||||||
23 | furnish bond or make a
deposit for or pay any costs or fees of | ||||||
24 | any court or officer thereof in any
legal proceeding involving | ||||||
25 | the lien.
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26 | (f) To protect the lien of the State for past-due child |
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1 | support and for any fine imposed on a payor of income , the
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2 | Illinois Department may, from funds that are available for that | ||||||
3 | purpose, pay
or provide for the payment of necessary or | ||||||
4 | essential repairs, purchase tax
certificates, or pay or cause | ||||||
5 | to be
satisfied any prior liens on the property to which the | ||||||
6 | lien hereunder applies.
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7 | (g) A lien on personal property under this Section shall be | ||||||
8 | released
in the manner provided under Article XII
of the Code | ||||||
9 | of Civil Procedure.
Notwithstanding the foregoing, a lien under | ||||||
10 | this Section on accounts as defined
in Section 10-24 shall | ||||||
11 | expire upon the passage of 120 days from the date of
issuance | ||||||
12 | of the Notice of Lien or Levy by the Illinois Department. | ||||||
13 | However,
the lien
shall remain in effect during the pendency of | ||||||
14 | any appeal or protest.
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15 | (h) A lien created under this Section is subordinate to any | ||||||
16 | prior lien of
the financial institution or any prior lien | ||||||
17 | holder or any prior right of
set-off that the financial | ||||||
18 | institution may have against the assets, or in the
case of an | ||||||
19 | insurance company or benefit association only in the accounts | ||||||
20 | as
defined in Section 10-24.
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21 | (i) A financial institution has no obligation under this | ||||||
22 | Section to hold,
encumber, or surrender the assets, or in the | ||||||
23 | case of an insurance company or
benefit association only the | ||||||
24 | accounts as defined in Section 10-24, until the
financial
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25 | institution has been properly served with a subpoena, summons, | ||||||
26 | warrant,
court or administrative order, or administrative lien |
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1 | and levy requiring that
action.
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2 | (Source: P.A. 97-186, eff. 7-22-11.)
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3 | Section 10. The Income Withholding for Support Act is | ||||||
4 | amended by adding Section 50.5 as follows: | ||||||
5 | (750 ILCS 28/50.5 new) | ||||||
6 | Sec. 50.5. Administrative fines imposed by the Department | ||||||
7 | of Healthcare and Family Services. | ||||||
8 | (a) The administrative fines provided for under this | ||||||
9 | Section are in addition to any existing fines or penalties | ||||||
10 | against a payor of income provided for in other Sections of | ||||||
11 | this Act and do not affect who would be entitled to receive | ||||||
12 | those existing fines and penalties. In addition to any fines or | ||||||
13 | penalties provided for in this Act, when a payor of income | ||||||
14 | wilfully fails, after receiving 2 reminders from the Department | ||||||
15 | of Healthcare and Family Services, to withhold or pay over | ||||||
16 | income pursuant to a properly served income withholding notice | ||||||
17 | or otherwise fails to comply with any duties imposed by this | ||||||
18 | Act, the Department may impose a fine upon the payor of income | ||||||
19 | not to exceed $1,000 per payroll period. The fine shall be | ||||||
20 | payable to the Department of Healthcare and Family Services and | ||||||
21 | may be used to defray the costs incurred by the Department in | ||||||
22 | the collection of the past-due support and penalties provided | ||||||
23 | for in this Act. The Department of Healthcare and Family | ||||||
24 | Services shall place the fines collected into a special fund |
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1 | created to implement the purposes of this Section and the fines | ||||||
2 | shall be utilized for the purposes provided for in this | ||||||
3 | Section. After deducting the costs incurred by the Department | ||||||
4 | of Healthcare and Family Services in the collection of the | ||||||
5 | past-due support and penalties provided for in this Act, the | ||||||
6 | reminder of the fines collected under this Section shall be | ||||||
7 | distributed proportionally to the counties based on their | ||||||
8 | population. The counties shall use these funds to assist low | ||||||
9 | income families in defraying the costs associated with seeking | ||||||
10 | parenting time. | ||||||
11 | (b) The Department of Healthcare and Family Services may | ||||||
12 | collect the fine through administrative liens and levies on the | ||||||
13 | real and personal property of the payor of income as provided | ||||||
14 | in Sections 10-25 and 10-25.5 of the Illinois Public Aid Code. | ||||||
15 | (c) The payor of income may contest the fine as provided in | ||||||
16 | Sections 10-25 and 10-25.5 of the Illinois Public Aid Code. | ||||||
17 | (d) The Department of Healthcare and Family Services may | ||||||
18 | adopt rules necessary for the implementation of this Section.
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19 | Section 99. Effective date. This Act takes effect on July | ||||||
20 | 1, 2017. |