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91_HB2773sam003
LRB9103154DJcsam02
1 AMENDMENT TO HOUSE BILL 2773
2 AMENDMENT NO. . Amend House Bill 2773, AS AMENDED,
3 with reference to page and line numbers of Senate Amendment
4 No. 2, on page 1, line 10, after "12-10.2", by inserting "and
5 adding Section 10-16.6"; and
6 on page 3, between lines 26 and 27, by inserting the
7 following:
8 "(305 ILCS 5/10-16.6 new)
9 Sec. 10-16.6. Electronic Funds Transfer Committee.
10 (a) The Director of Public Aid shall establish within
11 the Department an Electronic Funds Transfer Committee. The
12 Director or his or her designee shall be a member of the
13 committee and shall serve as chairperson of the committee.
14 The Director shall appoint 4 other members of the committee,
15 2 of whom shall represent employers in this State and 2 of
16 whom shall represent the banking industry in this State. The
17 administrator of the State Disbursement Unit established
18 under Section 10-26 shall be an ex officio member of the
19 committee.
20 (b) The committee shall study ways to modify or expand
21 the use of electronic funds transfers for the payment of
22 child support. The committee shall report its findings and
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1 recommendations to the Governor and the General Assembly
2 before December 1, 2001.
3 (c) The committee is abolished on December 1, 2001.";
4 and
5 on page 59, between lines 13 and 14, by inserting the
6 following:
7 "Section 22. The Income Withholding for Support Act is
8 amended by changing Section 35 as follows:
9 (750 ILCS 28/35)
10 Sec. 35. Duties of payor.
11 (a) It shall be the duty of any payor who has been
12 served with an income withholding notice to deduct and pay
13 over income as provided in this Section. The payor shall
14 deduct the amount designated in the income withholding
15 notice, as supplemented by any notice provided pursuant to
16 subsection (f) of Section 45, beginning no later than the
17 next payment of income which is payable or creditable to the
18 obligor that occurs 14 days following the date the income
19 withholding notice was mailed, sent by facsimile or other
20 electronic means, or placed for personal delivery to or
21 service on the payor. The payor may combine all amounts
22 withheld for the benefit of an obligee or public office into
23 a single payment and transmit the payment with a listing of
24 obligors from whom withholding has been effected. The payor
25 shall pay the amount withheld to the State Disbursement Unit
26 within 7 business days after the date the amount would (but
27 for the duty to withhold income) have been paid or credited
28 to the obligor. If the payor knowingly fails to pay any
29 amount withheld to the State Disbursement Unit within 7
30 business days after the date the amount would have been paid
31 or credited to the obligor, the payor shall pay a penalty of
32 $100 for each day that the withheld amount is not paid to the
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1 State Disbursement Unit after the period of 7 business days
2 has expired. The failure of a payor, on more than one
3 occasion, to pay amounts withheld to the State Disbursement
4 Unit within 7 business days after the date the amount would
5 have been paid or credited to the obligor creates a
6 presumption that the payor knowingly failed to pay over the
7 amounts. This penalty may be collected in a civil action
8 which may be brought against the payor in favor of the
9 obligee or public office. A finding of a payor's
10 nonperformance within the time required under this Act must
11 be documented by a certified mail return receipt showing the
12 date the income withholding notice was served on the payor.
13 For purposes of this Act, a withheld amount shall be
14 considered paid by a payor on the date it is mailed by the
15 payor, or on the date an electronic funds transfer of the
16 amount has been initiated by the payor, or on the date
17 delivery of the amount has been initiated by the payor. For
18 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
25 and during each year thereafter, every payor that has fewer
26 than 250 employees and that withheld income under this
27 Section pursuant to 10 or more income withholding notices
28 during December of the preceding year shall use electronic
29 funds transfer to pay all amounts withheld under this
30 Section.
31 Upon receipt of an income withholding notice requiring
32 that a minor child be named as a beneficiary of a health
33 insurance plan available through an employer or labor union
34 or trade union, the employer or labor union or trade union
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1 shall immediately enroll the minor child as a beneficiary in
2 the health insurance plan designated by the income
3 withholding notice. The employer shall withhold any required
4 premiums and pay over any amounts so withheld and any
5 additional amounts the employer pays to the insurance carrier
6 in a timely manner. The employer or labor union or trade
7 union shall mail to the obligee, within 15 days of enrollment
8 or upon request, notice of the date of coverage, information
9 on the dependent coverage plan, and all forms necessary to
10 obtain reimbursement for covered health expenses, such as
11 would be made available to a new employee. When an order for
12 dependent coverage is in effect and the insurance coverage is
13 terminated or changed for any reason, the employer or labor
14 union or trade union shall notify the obligee within 10 days
15 of the termination or change date along with notice of
16 conversion privileges.
17 For withholding of income, the payor shall be entitled to
18 receive a fee not to exceed $5 per month to be taken from the
19 income to be paid to the obligor.
20 (b) Whenever the obligor is no longer receiving income
21 from the payor, the payor shall return a copy of the income
22 withholding notice to the obligee or public office and shall
23 provide information for the purpose of enforcing this Act.
24 (c) Withholding of income under this Act shall be made
25 without regard to any prior or subsequent garnishments,
26 attachments, wage assignments, or any other claims of
27 creditors. Withholding of income under this Act shall not be
28 in excess of the maximum amounts permitted under the federal
29 Consumer Credit Protection Act. If the payor has been served
30 with more than one income withholding notice pertaining to
31 the same obligor, the payor shall allocate income available
32 for withholding on a proportionate share basis, giving
33 priority to current support payments. If there is any income
34 available for withholding after withholding for all current
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1 support obligations, the payor shall allocate the income to
2 past due support payments ordered in cases in which cash
3 assistance under the Illinois Public Aid Code is not being
4 provided to the obligee and then to past due support payments
5 ordered in cases in which cash assistance under the Illinois
6 Public Aid Code is being provided to the obligee, both on a
7 proportionate share basis. A payor who complies with an
8 income withholding notice that is regular on its face shall
9 not be subject to civil liability with respect to any
10 individual, any agency, or any creditor of the obligor for
11 conduct in compliance with the notice.
12 (d) No payor shall discharge, discipline, refuse to hire
13 or otherwise penalize any obligor because of the duty to
14 withhold income.
15 (Source: P.A. 90-673, eff. 1-1-99; 91-212, eff. 7-20-99.)".