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| [ Introduced ] | [ Enrolled ] | [ Senate Amendment 001 ] |
91_SB0469eng SB469 Engrossed LRB9102759SMdv 1 AN ACT regarding interest on support obligations. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Public Aid Code is amended by 5 adding Section 10-16.5 as follows: 6 (305 ILCS 5/10-16.5 new) 7 Sec. 10-16.5. Interest on support obligations. A 8 support obligation, or any portion of a support obligation, 9 which becomes due and remains unpaid for 30 days or more 10 shall accrue interest at the rate of 9% per annum. 11 Section 10. The Illinois Marriage and Dissolution of 12 Marriage Act is amended by changing Section 505 as follows: 13 (750 ILCS 5/505) (from Ch. 40, par. 505) 14 Sec. 505. Child support; contempt; penalties. 15 (a) In a proceeding for dissolution of marriage, legal 16 separation, declaration of invalidity of marriage, a 17 proceeding for child support following dissolution of the 18 marriage by a court which lacked personal jurisdiction over 19 the absent spouse, a proceeding for modification of a 20 previous order for child support under Section 510 of this 21 Act, or any proceeding authorized under Section 501 or 601 of 22 this Act, the court may order either or both parents owing a 23 duty of support to a child of the marriage to pay an amount 24 reasonable and necessary for his support, without regard to 25 marital misconduct. The duty of support owed to a minor 26 child includes the obligation to provide for the reasonable 27 and necessary physical, mental and emotional health needs of 28 the child. 29 (1) The Court shall determine the minimum amount of SB469 Engrossed -2- LRB9102759SMdv 1 support by using the following guidelines: 2 Number of Children Percent of Supporting Party's 3 Net Income 4 1 20% 5 2 25% 6 3 32% 7 4 40% 8 5 45% 9 6 or more 50% 10 (2) The above guidelines shall be applied in each 11 case unless the court makes a finding that application of 12 the guidelines would be inappropriate, after considering 13 the best interests of the child in light of evidence 14 including but not limited to one or more of the following 15 relevant factors: 16 (a) the financial resources and needs of the 17 child; 18 (b) the financial resources and needs of the 19 custodial parent; 20 (c) the standard of living the child would 21 have enjoyed had the marriage not been dissolved; 22 (d) the physical and emotional condition of 23 the child, and his educational needs; and 24 (e) the financial resources and needs of the 25 non-custodial parent. 26 If the court deviates from the guidelines, the 27 court's finding shall state the amount of support that 28 would have been required under the guidelines, if 29 determinable. The court shall include the reason or 30 reasons for the variance from the guidelines. 31 (3) "Net income" is defined as the total of all 32 income from all sources, minus the following deductions: 33 (a) Federal income tax (properly calculated 34 withholding or estimated payments); SB469 Engrossed -3- LRB9102759SMdv 1 (b) State income tax (properly calculated 2 withholding or estimated payments); 3 (c) Social Security (FICA payments); 4 (d) Mandatory retirement contributions 5 required by law or as a condition of employment; 6 (e) Union dues; 7 (f) Dependent and individual 8 health/hospitalization insurance premiums; 9 (g) Prior obligations of support or 10 maintenance actually paid pursuant to a court order; 11 (h) Expenditures for repayment of debts that 12 represent reasonable and necessary expenses for the 13 production of income, medical expenditures necessary 14 to preserve life or health, reasonable expenditures 15 for the benefit of the child and the other parent, 16 exclusive of gifts. The court shall reduce net 17 income in determining the minimum amount of support 18 to be ordered only for the period that such payments 19 are due and shall enter an order containing 20 provisions for its self-executing modification upon 21 termination of such payment period. 22 (4) In cases where the court order provides for 23 health/hospitalization insurance coverage pursuant to 24 Section 505.2 of this Act, the premiums for that 25 insurance, or that portion of the premiums for which the 26 supporting party is responsible in the case of insurance 27 provided through an employer's health insurance plan 28 where the employer pays a portion of the premiums, shall 29 be subtracted from net income in determining the minimum 30 amount of support to be ordered. 31 (4.5) In a proceeding for child support following 32 dissolution of the marriage by a court that lacked 33 personal jurisdiction over the absent spouse, and in 34 which the court is requiring payment of support for the SB469 Engrossed -4- LRB9102759SMdv 1 period before the date an order for current support is 2 entered, there is a rebuttable presumption that the 3 supporting party's net income for the prior period was 4 the same as his or her net income at the time the order 5 for current support is entered. 6 (5) If the net income cannot be determined because 7 of default or any other reason, the court shall order 8 support in an amount considered reasonable in the 9 particular case. The final order in all cases shall 10 state the support level in dollar amounts. 11 (b) Failure of either parent to comply with an order to 12 pay support shall be punishable as in other cases of 13 contempt. In addition to other penalties provided by law the 14 Court may, after finding the parent guilty of contempt, order 15 that the parent be: 16 (1) placed on probation with such conditions of 17 probation as the Court deems advisable; 18 (2) sentenced to periodic imprisonment for a period 19 not to exceed 6 months; provided, however, that the Court 20 may permit the parent to be released for periods of time 21 during the day or night to: 22 (A) work; or 23 (B) conduct a business or other self-employed 24 occupation. 25 The Court may further order any part or all of the 26 earnings of a parent during a sentence of periodic 27 imprisonment paid to the Clerk of the Circuit Court or to the 28 parent having custody or to the guardian having custody of 29 the minor children of the sentenced parent for the support of 30 said minor children until further order of the Court. 31 If there is a unity of interest and ownership sufficient 32 to render no financial separation between a non-custodial 33 parent and another person or persons or business entity, the 34 court may pierce the ownership veil of the person, persons, SB469 Engrossed -5- LRB9102759SMdv 1 or business entity to discover assets of the non-custodial 2 parent held in the name of that person, those persons, or 3 that business entity. The following circumstances are 4 sufficient to authorize a court to order discovery of the 5 assets of a person, persons, or business entity and to compel 6 the application of any discovered assets toward payment on 7 the judgment for support: 8 (1) the non-custodial parent and the person, 9 persons, or business entity maintain records together. 10 (2) the non-custodial parent and the person, 11 persons, or business entity fail to maintain an arms 12 length relationship between themselves with regard to any 13 assets. 14 (3) the non-custodial parent transfers assets to 15 the person, persons, or business entity with the intent 16 to perpetrate a fraud on the custodial parent. 17 With respect to assets which are real property, no order 18 entered under this paragraph shall affect the rights of bona 19 fide purchasers, mortgagees, judgment creditors, or other 20 lien holders who acquire their interests in the property 21 prior to the time a notice of lis pendens pursuant to the 22 Code of Civil Procedure or a copy of the order is placed of 23 record in the office of the recorder of deeds for the county 24 in which the real property is located. 25 The court may also order in cases where the parent is 90 26 days or more delinquent in payment of support or has been 27 adjudicated in arrears in an amount equal to 90 days 28 obligation or more, that the parent's Illinois driving 29 privileges be suspended until the court determines that the 30 parent is in compliance with the order of support. The court 31 may also order that the parent be issued a family financial 32 responsibility driving permit that would allow limited 33 driving privileges for employment and medical purposes in 34 accordance with Section 7-702.1 of the Illinois Vehicle Code. SB469 Engrossed -6- LRB9102759SMdv 1 The clerk of the circuit court shall certify the order 2 suspending the driving privileges of the parent or granting 3 the issuance of a family financial responsibility driving 4 permit to the Secretary of State on forms prescribed by the 5 Secretary. Upon receipt of the authenticated documents, the 6 Secretary of State shall suspend the parent's driving 7 privileges until further order of the court and shall, if 8 ordered by the court, subject to the provisions of Section 9 7-702.1 of the Illinois Vehicle Code, issue a family 10 financial responsibility driving permit to the parent. 11 In addition to the penalties or punishment that may be 12 imposed under this Section, any person whose conduct 13 constitutes a violation of Section 1 of the Non-Support of 14 Spouse and Children Act may be prosecuted under that Section, 15 and a person convicted under that Section may be sentenced in 16 accordance with that Section. The sentence may include but 17 need not be limited to a requirement that the person perform 18 community service under subsection (b) of that Section or 19 participate in a work alternative program under subsection 20 (c) of that Section. A person may not be required to 21 participate in a work alternative program under subsection 22 (c) of that Section if the person is currently participating 23 in a work program pursuant to Section 505.1 of this Act. 24 A support obligation, or any portion of a support 25 obligation, which becomes due and remains unpaid for 30 days 26 or more shall accrue interest at the rate of 9% per annum. 27 (c) A one-time charge of 20% is imposable upon the 28 amount of past-due child support owed on July 1, 1988 which 29 has accrued under a support order entered by the court. The 30 charge shall be imposed in accordance with the provisions of 31 Section 10-21 of the Illinois Public Aid Code and shall be 32 enforced by the court upon petition. 33 (d) Any new or existing support order entered by the 34 court under this Section shall be deemed to be a series of SB469 Engrossed -7- LRB9102759SMdv 1 judgments against the person obligated to pay support 2 thereunder, each such judgment to be in the amount of each 3 payment or installment of support and each such judgment to 4 be deemed entered as of the date the corresponding payment or 5 installment becomes due under the terms of the support order. 6 Each such judgment shall have the full force, effect and 7 attributes of any other judgment of this State, including the 8 ability to be enforced. A lien arises by operation of law 9 against the real and personal property of the noncustodial 10 parent for each installment of overdue support owed by the 11 noncustodial parent. 12 (e) When child support is to be paid through the clerk 13 of the court in a county of 1,000,000 inhabitants or less, 14 the order shall direct the obligor to pay to the clerk, in 15 addition to the child support payments, all fees imposed by 16 the county board under paragraph (3) of subsection (u) of 17 Section 27.1 of the Clerks of Courts Act. Unless paid in 18 cash or pursuant to an order for withholding, the payment of 19 the fee shall be by a separate instrument from the support 20 payment and shall be made to the order of the Clerk. 21 (f) All orders for support, when entered or modified, 22 shall include a provision requiring the obligor to notify the 23 court and, in cases in which a party is receiving child and 24 spouse services under Article X of the Illinois Public Aid 25 Code, the Illinois Department of Public Aid, within 7 days, 26 (i) of the name and address of any new employer of the 27 obligor, (ii) whether the obligor has access to health 28 insurance coverage through the employer or other group 29 coverage and, if so, the policy name and number and the names 30 of persons covered under the policy, and (iii) of any new 31 residential or mailing address or telephone number of the 32 non-custodial parent. In any subsequent action to enforce a 33 support order, upon a sufficient showing that a diligent 34 effort has been made to ascertain the location of the SB469 Engrossed -8- LRB9102759SMdv 1 non-custodial parent, service of process or provision of 2 notice necessary in the case may be made at the last known 3 address of the non-custodial parent in any manner expressly 4 provided by the Code of Civil Procedure or this Act, which 5 service shall be sufficient for purposes of due process. 6 (g) An order for support shall include a date on which 7 the current support obligation terminates. The termination 8 date shall be no earlier than the date on which the child 9 covered by the order will attain the age of majority or is 10 otherwise emancipated. The order for support shall state that 11 the termination date does not apply to any arrearage that may 12 remain unpaid on that date. Nothing in this subsection shall 13 be construed to prevent the court from modifying the order. 14 (h) An order entered under this Section shall include a 15 provision requiring the obligor to report to the obligee and 16 to the clerk of court within 10 days each time the obligor 17 obtains new employment, and each time the obligor's 18 employment is terminated for any reason. The report shall be 19 in writing and shall, in the case of new employment, include 20 the name and address of the new employer. Failure to report 21 new employment or the termination of current employment, if 22 coupled with nonpayment of support for a period in excess of 23 60 days, is indirect criminal contempt. For any obligor 24 arrested for failure to report new employment bond shall be 25 set in the amount of the child support that should have been 26 paid during the period of unreported employment. An order 27 entered under this Section shall also include a provision 28 requiring the obligor and obligee parents to advise each 29 other of a change in residence within 5 days of the change 30 except when the court finds that the physical, mental, or 31 emotional health of a party or that of a minor child, or 32 both, would be seriously endangered by disclosure of the 33 party's address. 34 (Source: P.A. 89-88, eff. 6-30-95; 89-92, eff. 7-1-96; SB469 Engrossed -9- LRB9102759SMdv 1 89-626, eff. 8-9-96; 90-18, eff. 7-1-97; 90-476, eff. 1-1-98; 2 90-539, eff. 6-1-98; 90-655, eff. 7-30-98; 90-733, eff. 3 8-11-98.) 4 Section 15. The Non-Support of Spouse and Children Act 5 is amended by adding Section 4.3 as follows: 6 (750 ILCS 15/4.3 new) 7 Sec. 4.3. Interest on support obligations. A support 8 obligation, or any portion of a support obligation, which 9 becomes due and remains unpaid for 30 days or more shall 10 accrue interest at the rate of 9% per annum. 11 Section 20. The Illinois Parentage Act of 1984 is 12 amended by adding Section 20.7 as follows: 13 (750 ILCS 45/20.7 new) 14 Sec. 20.7. Interest on support obligations. A support 15 obligation, or any portion of a support obligation, which 16 becomes due and remains unpaid for 30 days or more shall 17 accrue interest at the rate of 9% per annum.