[ Search ] [ PDF text ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ House Amendment 001 ] |
| [ House Amendment 002 ] | [ Senate Amendment 001 ] |
92_SB0163enr SB163 Enrolled LRB9203648DJtm 1 AN ACT concerning public aid. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 2. The State Finance Act is amended by adding 5 Section 5.545 as follows: 6 (30 ILCS 105/5.545 new) 7 Sec. 5.545. The Child Support Administrative Fund. 8 Section 5. The Illinois Public Aid Code is amended by 9 changing Sections 10-26, 12-8.1, and 12-10.2 and adding 10 Sections 10-26.2 and 12-10.2a as follows: 11 (305 ILCS 5/10-26) 12 Sec. 10-26. State Disbursement Unit. 13 (a) Effective October 1, 1999 the Illinois Department 14 shall establish a State Disbursement Unit in accordance with 15 the requirements of Title IV-D of the Social Security Act. 16 The Illinois Department shall enter into an agreement with a 17 State or local governmental unit or private entity to perform 18 the functions of the State Disbursement Unit as set forth in 19 this Section. The State Disbursement Unit shall collect and 20 disburse support payments made under court and administrative 21 support orders: 22 (1) being enforced in cases in which child and 23 spouse support services are being provided under this 24 Article X; and 25 (2) in all cases in which child and spouse support 26 services are not being provided under this Article X and 27 in which support payments are made under the provisions 28 of the Income Withholding for Support Act. 29 (a-2) The contract entered into by the Illinois 30 Department with a public or private entity or an individual SB163 Enrolled -2- LRB9203648DJtm 1 for the operation of the State Disbursement Unit is subject 2 to competitive bidding. In addition, the contract is subject 3 to Section 10-26.2 of this Code. As used in this subsection 4 (a-2), "contract" has the same meaning as in the Illinois 5 Procurement Code. 6 (a-5) If the State Disbursement Unit receives a support 7 payment that was not appropriately made to the Unit under 8 this Section, the Unit shall immediately return the payment 9 to the sender, including, if possible, instructions detailing 10 where to send the support payments. 11 (b) All payments received by the State Disbursement 12 Unit: 13 (1) shall be deposited into an account obtained by 14 the State or local governmental unit or private entity, 15 as the case may be, and 16 (2) distributed and disbursed by the State 17 Disbursement Unit, in accordance with the directions of 18 the Illinois Department, pursuant to Title IV-D of the 19 Social Security Act and rules promulgated by the 20 Department. 21 (c) All support payments assigned to the Illinois 22 Department under Article X of this Code and rules promulgated 23 by the Illinois Department that are disbursed to the Illinois 24 Department by the State Disbursement Unit shall be paid into 25 the Child Support Enforcement Trust Fund. 26 (d) If the agreement with the State or local 27 governmental unit or private entity provided for in this 28 Section is not in effect for any reason, the Department shall 29 perform the functions of the State Disbursement Unit as set 30 forth in this Section for a maximum of 12 months before July 31 1, 2001, and for a maximum of 24 months after June 30, 2001. 32 If the Illinois Department is performing the functions of the 33 State Disbursement Unit on July 1, 2001, then the Illinois 34 Department shall make an award on or before December 31, SB163 Enrolled -3- LRB9203648DJtm 1 2002, to a State or local government unit or private entity 2 to perform the functions of the State Disbursement Unit. 3 Payments received by the Department in performance of the 4 duties of the State Disbursement Unit shall be deposited into 5 the State Disbursement Unit Revolving Fund established under 6 Section 12-8.1. 7 (e) By February 1, 2000, the Illinois Department shall 8 conduct at least 4 regional training and educational seminars 9 to educate the clerks of the circuit court on the general 10 operation of the State Disbursement Unit, the role of the 11 State Disbursement Unit, and the role of the clerks of the 12 circuit court in the collection and distribution of child 13 support payments. 14 (f) By March 1, 2000, the Illinois Department shall 15 conduct at least 4 regional educational and training seminars 16 to educate payors, as defined in the Income Withholding for 17 Support Act, on the general operation of the State 18 Disbursement Unit, the role of the State Disbursement Unit, 19 and the distribution of income withholding payments pursuant 20 to this Section and the Income Withholding for Support Act. 21 (Source: P.A. 91-212, eff. 7-20-99; 91-677, eff. 1-5-00; 22 91-712, eff. 7-1-00.) 23 (305 ILCS 5/10-26.2 new) 24 Sec. 10-26.2. Contracts concerning the operation of the 25 State Disbursement Unit. 26 (a) In this Section: 27 "Contract" has the same meaning as in the Illinois 28 Procurement Code. 29 "SDU contractor" means any public or private entity or 30 individual with whom the Illinois Department enters into a 31 contract in connection with the operation of the State 32 Disbursement Unit. 33 (b) The contract entered into by the Illinois Department SB163 Enrolled -4- LRB9203648DJtm 1 with a public or private entity or an individual in 2 connection with the operation of the State Disbursement Unit 3 must contain, at a minimum, the provisions set forth in this 4 Section. 5 (c) The contract must include standards and procedures 6 to ensure that the data relied on by the State Disbursement 7 Unit in performing its functions is accurate so that the 8 State Disbursement Unit will be able to effectively 9 administer the collection and disbursement of support 10 payments. 11 (d) The contract must contain provisions to ensure that 12 all clerks of the circuit court have access to non-custodial 13 parents' support payment information in the possession of the 14 State Disbursement Unit. 15 (e) The contract must contain provisions to ensure that 16 notices to employers in connection with the collection of 17 support are clear and consistent and that the SDU contractor 18 will promptly inform an employer about any problems and any 19 necessary changes in connection with the collection of 20 support. 21 (f) The contract must contain appropriate management 22 controls to ensure that (i) all of the SDU contractor's 23 actions in performing the functions of the State Disbursement 24 Unit are reasonably planned, timely implemented, and 25 adequately controlled and (ii) all reports that are necessary 26 to provide the Illinois Department with the information 27 necessary to effectively monitor the quality and accuracy of 28 the SDU contractor's actions in performing the functions of 29 the State Disbursement Unit are timely filed. 30 (g) The contract must contain provisions specifying 31 standards with respect to the level of performance expected 32 of the SDU contractor. The contract may include provisions 33 for incentives and penalties in connection with the SDU 34 contractor's performance. SB163 Enrolled -5- LRB9203648DJtm 1 (h) The contract must contain provisions projecting the 2 number of active support collection and disbursement cases to 3 be handled by the State Disbursement Unit and estimating the 4 number of support disbursement transactions to be handled 5 each year. 6 (i) The contract must contain provisions requiring 7 compliance with all applicable federal requirements 8 concerning disbursement of support. The contract must also 9 contain provisions for the Illinois Department's regular, 10 periodic review of reports on disbursement performance. 11 (j) The contract must contain provisions requiring the 12 SDU contractor to submit to the Illinois Department, within 13 45 days after the end of each State fiscal year, a completed 14 American Institute of Certified Public Accountants Statement 15 on Auditing Standards Number 88 (SAS 88) or its successor for 16 the purpose of enabling the Illinois Department to 17 appropriately monitor the State Disbursement Unit's 18 performance as a service organization and to enable the 19 Auditor General, as the external auditor of the State 20 Disbursement Unit, to ensure that appropriate controls are 21 present. 22 (k) The contract must contain provisions requiring the 23 Illinois Department and the SDU contractor to examine the 24 causes of untimely disbursement of support payments and 25 inappropriate cost recovery and to take prompt action to 26 ensure the timely and accurate disbursement of support 27 payments. The contract must also contain provisions for the 28 final disposition of support payments that cannot be 29 processed by the State Disbursement Unit within 2 business 30 days. 31 (l) The contract must contain provisions to ensure that 32 neither the Illinois Department nor the SDU contractor uses 33 moneys collected and held in trust for the payment of support 34 for any purpose other than that for which the moneys were SB163 Enrolled -6- LRB9203648DJtm 1 collected. 2 (m) The contract must contain provisions requiring the 3 Illinois Department to audit the disbursement of all 4 emergency support payments and report to the General Assembly 5 the results of the audit, including, without limitation, the 6 number of emergency support payment checks issued by the 7 State Disbursement Unit, the amount of repayments received 8 from recipients of those checks, and amounts for which the 9 Illinois Department did not seek repayment. 10 (305 ILCS 5/12-8.1) 11 Sec. 12-8.1. State Disbursement Unit Revolving Fund. 12 (a) There is created a revolving fund to be known as the 13 State Disbursement Unit Revolving Fund, to be held by the 14 Director of the Illinois Department, outside the State 15 treasuryState Treasurer as ex officio custodian, for the 16 following purposes: 17 (1) the deposit of all support payments received by 18 the Illinois Department's State Disbursement Unit;and19 (2) the deposit of other funds including, but not 20 limited to, transfers of funds from other accounts 21 attributable to support payments received by the Illinois 22 Department's State Disbursement Unit; 23 (3) the deposit of any interest accrued by the 24 revolving fund, which interest shall be available for 25 payment of (i) any amounts considered to be Title IV-D 26 program income that must be paid to the U.S. Department 27 of Health and Human Services and (ii) any balance 28 remaining after payments made under item (i) of this 29 subsection (3) to the General Revenue Fund; however, the 30 disbursements under this subdivision (3) may not exceed 31 the amount of the interest accrued by the revolving fund; 32 (4) the disbursement of such payments to obligees 33 or to the assignees of the obligees in accordance with SB163 Enrolled -7- LRB9203648DJtm 1 the provisions of Title IV-D of the Social Security Act 2 and rules promulgated by the Department, provided that 3 such disbursement is based upon a payment by a payor or 4 obligor deposited into the revolving fund established by 5 this Section; and.6 (5) the disbursement of funds to payors or obligors 7 to correct erroneous payments to the Illinois 8 Department's State Disbursement Unit, in an amount not to 9 exceed the erroneous payments. 10 (b) The provisions of this Section shall apply only if 11 the Department performs the functions of the Illinois 12 Department's State Disbursement Unit under paragraph (d) of 13 Section 10-26. 14(c) Moneys in the State Disbursement Unit Revolving Fund15shall be expended upon the direction of the Director.16 (Source: P.A. 91-712, eff. 7-1-00.) 17 (305 ILCS 5/12-10.2) (from Ch. 23, par. 12-10.2) 18 Sec. 12-10.2. The Child Support Enforcement Trust Fund. 19 (a) The Child Support Enforcement Trust Fund, to be held 20 by the State Treasurer as ex-officio custodian outside the 21 State Treasury, pursuant to the Child Support Enforcement 22 Program established by Title IV-D of the Social Security Act, 23 shall consist of: 24 (1) all support payments assigned to the Illinois 25 Department under Article X of this Code and rules 26 promulgated by the Illinois Department that are disbursed 27 to the Illinois Department by the State Disbursement Unit 28 established under Section 10-26, 29 (2) all support payments received by the Illinois 30 Department as a result of the Child Support Enforcement 31 Program established by Title IV-D of the Social Security 32 Act that are not required or directed to be paid to the 33 State Disbursement Unit established under Section 10-26, SB163 Enrolled -8- LRB9203648DJtm 1 (3) all federal grants received by the Illinois 2 Department funded by Title IV-D of the Social Security 3 Act, except those federal funds received under the Title 4 IV-D program as reimbursement for expenditures from the 5 General Revenue Fund, 6 (4) incentive payments received by the Illinois 7 Department from other states or political subdivisions of 8 other states for the enforcement and collection by the 9 Department of an assigned child support obligation in 10 behalf of such other states or their political 11 subdivisions pursuant to the provisions of Title IV-D of 12 the Social Security Act, 13 (5) incentive payments retained by the Illinois 14 Department from the amounts which otherwise would be paid 15 to the federal government to reimburse the federal 16 government's share of the support collection for the 17 Department's enforcement and collection of an assigned 18 support obligation on behalf of the State of Illinois 19 pursuant to the provisions of Title IV-D of the Social 20 Security Act, 21 (6) all fees charged by the Department for child 22 support enforcement services, as authorized under Title 23 IV-D of the Social Security Act and Section 10-1 of this 24 Code, and any other fees, costs, fines, recoveries, or 25 penalties provided for by State or federal law and 26 received by the Department under the Child Support 27 Enforcement Program established by Title IV-D of the 28 Social Security Act, and 29 (7) all amounts appropriated by the General 30 Assembly for deposit into the Fund, 31 (8) any gifts, grants, donations, or awards from 32 individuals, private businesses, nonprofit associations, 33 and governmental entities. 34 (b) Disbursements from this Fund shall be only for the SB163 Enrolled -9- LRB9203648DJtm 1 following purposes: 2 (1) for the reimbursement of funds received by the 3 Illinois Department through error or mistake, 4 (2) for payments to non-recipients, current 5 recipients, and former recipients of financial aid of 6 support payments received on their behalf under Article X 7 of this Code that are not required to be disbursed by the 8 State Disbursement Unit established under Section 10.26, 9 (3) for any other payments required by law to be 10 paid by the Illinois Department to non-recipients, 11 current recipients, and former recipients, 12 (4) for payment of any administrative expenses 13 incurred through fiscal year 2002, but not thereafter, 14 including payment to the Health Insurance Reserve Fund 15 for group insurance costs at the rate certified by the 16 Department of Central Management Services, except those 17 required to be paid from the General Revenue Fund, 18 including personal and contractual services, incurred in 19 performing the Title IV-D activities authorized by 20 Article X of this Code, 21 (5) for the reimbursement of the Public Assistance 22 Emergency Revolving Fund for expenditures made from that 23 Fund for payments to former recipients of public aid for 24 child support made to the Illinois Department when the 25 former public aid recipient is legally entitled to all or 26 part of the child support payments, pursuant to the 27 provisions of Title IV-D of the Social Security Act, 28 (6) for the payment of incentive amounts owed to 29 other states or political subdivisions of other states 30 that enforce and collect an assigned support obligation 31 on behalf of the State of Illinois pursuant to the 32 provisions of Title IV-D of the Social Security Act, 33 (7) for the payment of incentive amounts owed to 34 political subdivisions of the State of Illinois that SB163 Enrolled -10- LRB9203648DJtm 1 enforce and collect an assigned support obligation on 2 behalf of the State pursuant to the provisions of Title 3 IV-D of the Social Security Act, and 4 (8) for payments of any amounts which are 5 reimbursable to the Federal government which are required 6 to be paid by State warrant by either the State or 7 Federal government. 8 Disbursements from this Fund shall be by warrants drawn 9 by the State Comptroller on receipt of vouchers duly executed 10 and certified by the Illinois Department or any other State 11 agency that receives an appropriation from the Fund. 12 (c) The Illinois Department's child support 13 administrative expenses, as defined in Section 12-10.2a, that 14 are incurred after fiscal year 2002 shall be paid only as 15 provided in that Section. 16 (Source: P.A. 90-18, eff. 7-1-97; 90-587, eff. 6-4-98; 17 91-212, eff. 7-20-99; 91-400, eff. 7-30-99; 91-712, eff. 18 7-1-00.) 19 (305 ILCS 5/12-10.2a new) 20 Sec. 12-10.2a. Child Support Administrative Fund. 21 (a) Beginning July 1, 2002, the Child Support 22 Administrative Fund is created as a special fund in the State 23 treasury. Moneys in the Fund may be used, subject to 24 appropriation, only for the Department of Public Aid's child 25 support administrative expenses, as defined in this Section. 26 (b) As used in this Section, "child support 27 administrative expenses" means administrative expenses, 28 including payment to the Health Insurance Reserve Fund for 29 group insurance costs at the rate certified by the Department 30 of Central Management Services, except those required to be 31 paid from the General Revenue Fund, including personal and 32 contractual services, incurred by the Department of Public 33 Aid, either directly or under its contracts with SDU SB163 Enrolled -11- LRB9203648DJtm 1 contractors as defined in Section 10-26.2, in performing 2 activities authorized by Article X of this Code. The term 3 includes expenses incurred by the Department of Public Aid in 4 administering the Child Support Enforcement Trust Fund and 5 the State Disbursement Unit Revolving Fund. 6 (c) Child support administrative expenses incurred in 7 fiscal year 2003 or thereafter shall be paid only from moneys 8 appropriated to the Department from the Child Support 9 Administrative Fund. 10 (d) Before April 1, 2003 and before April 1 of each year 11 thereafter, the Department of Public Aid shall provide 12 notification to the General Assembly of the amount of the 13 Department's child support administrative expenses expected 14 to be incurred during the fiscal year beginning on the next 15 July 1, including the estimated amount required for the 16 operation of the State Disbursement Unit, which shall be 17 separately identified in the annual administrative 18 appropriation. 19 (e) For the fiscal year beginning July 1, 2002 and for 20 each fiscal year thereafter, the State Comptroller and the 21 State Treasurer shall transfer from the Child Support 22 Enforcement Trust Fund to the Child Support Administrative 23 Fund amounts as determined by the Department necessary to 24 enable the Department to meet its child support 25 administrative expenses for the then-current fiscal year. 26 For any fiscal year, the State Comptroller and the State 27 Treasurer may not transfer more than the total amount 28 appropriated to the Department from the Child Support 29 Administrative Fund for the Department's child support 30 administrative expenses for that fiscal year. 31 (f) By December 1, 2001, the Illinois Department shall 32 provide a corrective action plan to the General Assembly 33 regarding the establishment of accurate accounts in the Child 34 Support Enforcement Trust Fund. The plan shall include those SB163 Enrolled -12- LRB9203648DJtm 1 tasks that may be required to establish accurate accounts, 2 the estimated time for completion of each of those tasks and 3 the plan, and the estimated cost for completion of each of 4 the tasks and the plan. 5 Section 99. Effective date. This Act takes effect on 6 July 1, 2001.