State of Illinois
91st General Assembly
Legislation

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91_HB3460sam001

 










                                             LRB9111394DJcdam

 1                    AMENDMENT TO HOUSE BILL 3460

 2        AMENDMENT NO.     .  Amend House Bill 3460 as follows:

 3    by replacing the title of the bill with the following:

 4        "AN ACT in relation to child support."; and

 5    by replacing everything after the enacting  clause  with  the
 6    following:

 7        "Section  5.  The  Illinois Public Aid Code is amended by
 8    changing Section 10-16.6 as follows:

 9        (305 ILCS 5/10-16.6)
10        Sec. 10-16.6. Electronic Funds Transfer Committee.
11        (a)  The Director of Public Aid  shall  establish  within
12    the  Department  an  Electronic Funds Transfer Committee. The
13    Director or his or her designee shall  be  a  member  of  the
14    committee  and  shall  serve as chairperson of the committee.
15    The Director shall appoint 4 other members of the  committee,
16    2  of  whom  shall represent employers in this State and 2 of
17    whom shall represent the banking industry in this State.  The
18    administrator of  the  State  Disbursement  Unit  established
19    under  Section  10-26  shall  be  an ex officio member of the
20    committee.
 
                            -2-              LRB9111394DJcdam
 1        (b)  The committee shall study ways to modify  or  expand
 2    the  use  of  electronic  funds  transfers for the payment of
 3    child support.  The committee shall report its  findings  and
 4    recommendations  to  the  Governor  and  the General Assembly
 5    before December 1, 2002 2001.
 6        (c)  The committee is abolished on December 1, 2002 2001.
 7    (Source: P.A. 91-677, eff. 1-5-00.)

 8        Section  10.  The Income Withholding for Support  Act  is
 9    amended by changing Section 35 as follows:

10        (750 ILCS 28/35)
11        Sec. 35.  Duties of payor.
12        (a)  It  shall  be  the  duty  of  any payor who has been
13    served with an income withholding notice to  deduct  and  pay
14    over  income  as  provided  in this Section.  The payor shall
15    deduct  the  amount  designated  in  the  income  withholding
16    notice, as supplemented by any notice  provided  pursuant  to
17    subsection  (f)  of  Section  45, beginning no later than the
18    next payment of income which is payable or creditable to  the
19    obligor  that  occurs  14  days following the date the income
20    withholding notice was mailed, sent  by  facsimile  or  other
21    electronic  means,  or  placed  for  personal  delivery to or
22    service on the payor.  The  payor  may  combine  all  amounts
23    withheld  for the benefit of an obligee or public office into
24    a single payment and transmit the payment with a  listing  of
25    obligors  from  whom withholding has been effected. The payor
26    shall pay the amount withheld to the State Disbursement  Unit
27    within  7  business days after the date the amount would (but
28    for the duty to withhold income) have been paid  or  credited
29    to  the  obligor.  If  the  payor  knowingly fails to pay any
30    amount withheld to  the  State  Disbursement  Unit  within  7
31    business  days after the date the amount would have been paid
32    or credited to the obligor, the payor shall pay a penalty  of
 
                            -3-              LRB9111394DJcdam
 1    $100 for each day that the withheld amount is not paid to the
 2    State  Disbursement  Unit after the period of 7 business days
 3    has expired.  The failure  of  a  payor,  on  more  than  one
 4    occasion,  to  pay amounts withheld to the State Disbursement
 5    Unit within 7 business days after the date the  amount  would
 6    have   been  paid  or  credited  to  the  obligor  creates  a
 7    presumption that the payor knowingly failed to pay  over  the
 8    amounts.   This  penalty  may  be collected in a civil action
 9    which may be brought  against  the  payor  in  favor  of  the
10    obligee   or   public   office.   A   finding  of  a  payor's
11    nonperformance within the time required under this  Act  must
12    be  documented by a certified mail return receipt showing the
13    date the income withholding notice was served on  the  payor.
14    For  purposes  of  this  Act,  a  withheld  amount  shall  be
15    considered  paid  by  a payor on the date it is mailed by the
16    payor, or on the date an electronic  funds  transfer  of  the
17    amount  has  been  initiated  by  the  payor,  or on the date
18    delivery of the amount has been initiated by the  payor.  For
19    each   deduction,   the   payor   shall   provide  the  State
20    Disbursement Unit, at the time of transmittal, with the  date
21    the  amount  would (but for the duty to withhold income) have
22    been paid or credited to the obligor.
23        After March 1, 2001 June 30, 2000, every payor  that  has
24    250  or more employees shall use electronic funds transfer to
25    pay all amounts withheld under this Section.  During the year
26    2002 2001 and during each year thereafter, every  payor  that
27    has  fewer  than 250 employees and that withheld income under
28    this Section  pursuant  to  10  or  more  income  withholding
29    notices  during  December  of  the  preceding  year shall use
30    electronic funds transfer to pay all amounts  withheld  under
31    this Section.
32        Upon  receipt  of  an income withholding notice requiring
33    that a minor child be named as  a  beneficiary  of  a  health
34    insurance  plan  available through an employer or labor union
 
                            -4-              LRB9111394DJcdam
 1    or trade union, the employer or labor union  or  trade  union
 2    shall  immediately enroll the minor child as a beneficiary in
 3    the  health  insurance  plan   designated   by   the   income
 4    withholding  notice. The employer shall withhold any required
 5    premiums and  pay  over  any  amounts  so  withheld  and  any
 6    additional amounts the employer pays to the insurance carrier
 7    in  a  timely  manner.   The employer or labor union or trade
 8    union shall mail to the obligee, within 15 days of enrollment
 9    or upon request, notice of the date of coverage,  information
10    on  the  dependent  coverage plan, and all forms necessary to
11    obtain reimbursement for covered  health  expenses,  such  as
12    would  be made available to a new employee. When an order for
13    dependent coverage is in effect and the insurance coverage is
14    terminated or changed for any reason, the employer  or  labor
15    union  or trade union shall notify the obligee within 10 days
16    of the termination  or  change  date  along  with  notice  of
17    conversion privileges.
18        For withholding of income, the payor shall be entitled to
19    receive a fee not to exceed $5 per month to be taken from the
20    income to be paid to the obligor.
21        (b)  Whenever  the  obligor is no longer receiving income
22    from the payor, the payor shall return a copy of  the  income
23    withholding  notice to the obligee or public office and shall
24    provide information for the purpose of enforcing this Act.
25        (c)  Withholding of income under this Act shall  be  made
26    without  regard  to  any  prior  or  subsequent garnishments,
27    attachments,  wage  assignments,  or  any  other  claims   of
28    creditors.  Withholding of income under this Act shall not be
29    in  excess of the maximum amounts permitted under the federal
30    Consumer Credit Protection Act. If the payor has been  served
31    with  more  than  one income withholding notice pertaining to
32    the same obligor, the payor shall allocate  income  available
33    for  withholding  on  a  proportionate  share  basis,  giving
34    priority to current support payments.  If there is any income
 
                            -5-              LRB9111394DJcdam
 1    available  for  withholding after withholding for all current
 2    support obligations, the payor shall allocate the  income  to
 3    past  due  support  payments  ordered  in cases in which cash
 4    assistance under the Illinois Public Aid Code  is  not  being
 5    provided to the obligee and then to past due support payments
 6    ordered  in cases in which cash assistance under the Illinois
 7    Public Aid Code is being provided to the obligee, both  on  a
 8    proportionate  share  basis.  A  payor  who  complies with an
 9    income withholding notice that is regular on its  face  shall
10    not  be  subject  to  civil  liability  with  respect  to any
11    individual, any agency, or any creditor of  the  obligor  for
12    conduct in compliance with the notice.
13        (d)  No payor shall discharge, discipline, refuse to hire
14    or  otherwise  penalize  any  obligor  because of the duty to
15    withhold income.
16    (Source: P.A. 90-673,  eff.  1-1-99;  91-212,  eff.  7-20-99;
17    91-677, eff. 1-5-00.)

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

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