Bill Amendment: IL HB3683 | 2015-2016 | 99th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: INCOME WITHHOLDING-PENALTY

Status: 2015-07-28 - Public Act . . . . . . . . . 99-0157 [HB3683 Detail]

Download: Illinois-2015-HB3683-Senate_Amendment_001.html

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Sen. Kimberly A. Lightford

Filed: 5/13/2015

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AMENDMENT TO HOUSE BILL 3683
AMENDMENT NO. ______. Amend House Bill 3683 by replacing
everything after the enacting clause with the following:
"Section 5. The Illinois Public Aid Code is amended by
changing Sections 10-25 and 10-25.5 as follows:
(305 ILCS 5/10-25)
Sec. 10-25. Administrative liens and levies on real
property for past-due child support and for fines against a
payor who wilfully fails to withhold or pay over income
pursuant to a properly served income withholding notice or
otherwise fails to comply with any duties imposed by the Income
Withholding for Support Act.
(a) Notwithstanding any other State or local law to the
contrary, the State shall have a lien on all legal and
equitable interests of responsible relatives in their real
property in the amount of past-due child support owing pursuant

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to an order for child support entered under Sections 10-10 and
10-11 of this Code, or under the Illinois Marriage and
Dissolution of Marriage Act, the Non-Support of Spouse and
Children Act, the Non-Support Punishment Act, the Uniform
Interstate Family Support Act, or the Illinois Parentage Act of
1984.
(a-5) The State shall have a lien on all legal and
equitable interests of a payor, as that term is described in
the Income Withholding for Support Act, in the payor's real
property in the amount of any fine imposed by the Illinois
Department pursuant to the Income Withholding for Support Act.
(b) The Illinois Department shall provide by rule for
notice to and an opportunity to be heard by each responsible
relative or payor affected, and any final administrative
decision rendered by the Illinois Department shall be reviewed
only under and in accordance with the Administrative Review
Law.
(c) When enforcing a lien under subsection (a) of this
Section, the Illinois Department shall have the authority to
execute notices of administrative liens and levies, which shall
contain the name and address of the responsible relative or
payor, a legal description of the real property to be levied,
the fact that a lien is being claimed for past-due child
support or for the fines imposed on a payor pursuant to the
Income Withholding for Support Act, and such other information
as the Illinois Department may by rule prescribe. The Illinois

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Department shall record the notice of lien with the recorder or
registrar of titles of the county or counties in which the real
estate is located.
(d) The State's lien under subsection (a) shall be
enforceable upon the recording or filing of a notice of lien
with the recorder or registrar of titles of the county or
counties in which the real estate is located. The lien shall be
prior to any lien thereafter recorded or filed and shall be
notice to a subsequent purchaser, assignor, or encumbrancer of
the existence and nature of the lien. The lien shall be
inferior to the lien of general taxes, special assessment, and
special taxes heretofore or hereafter levied by any political
subdivision or municipal corporation of the State.
In the event that title to the land to be affected by the
notice of lien is registered under the Registered Titles
(Torrens) Act, the notice shall be filed in the office of the
registrar of titles as a memorial or charge upon each folium of
the register of titles affected by the notice; but the State
shall not have a preference over the rights of any bona fide
purchaser, mortgagee, judgment creditor, or other lien holders
registered prior to the registration of the notice.
(e) The recorder or registrar of titles of each county
shall procure a file labeled "Child Support Lien Notices" and
an index book labeled "Child Support Lien Notices". When notice
of any lien is presented to the recorder or registrar of titles
for filing, the recorder or registrar of titles shall file it

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in numerical order in the file and shall enter it
alphabetically in the index. The entry shall show the name and
last known address of the person or payor named in the notice,
the serial number of the notice, the date and hour of filing,
and the amount of child support or the amount of the fine
imposed on the payor due at the time when the lien is filed.
(f) The Illinois Department shall not be required to
furnish bond or make a deposit for or pay any costs or fees of
any court or officer thereof in any legal proceeding involving
the lien.
(g) To protect the lien of the State for past-due child
support and for any fine imposed against a payor, the Illinois
Department may, from funds that are available for that purpose,
pay or provide for the payment of necessary or essential
repairs, purchase tax certificates, pay balances due on land
contracts, or pay or cause to be satisfied any prior liens on
the property to which the lien hereunder applies.
(h) A lien on real property under this Section shall be
released pursuant to Section 12-101 of the Code of Civil
Procedure.
(i) The Illinois Department, acting in behalf of the State,
may foreclose the lien in a judicial proceeding to the same
extent and in the same manner as in the enforcement of other
liens. The process, practice, and procedure for the foreclosure
shall be the same as provided in the Code of Civil Procedure.
(Source: P.A. 97-186, eff. 7-22-11.)

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(305 ILCS 5/10-25.5)
Sec. 10-25.5. Administrative liens and levies on personal
property for past-due child support and for fines against a
payor who wilfully fails to withhold or pay over income
pursuant to a properly served income withholding notice or
otherwise fails to comply with any duties imposed by the Income
Withholding for Support Act.
(a) Notwithstanding any other State or local law to the
contrary, the State shall have a lien on all legal and
equitable interests of responsible relatives in their personal
property, including any account in a financial institution as
defined in Section 10-24, or in the case of an insurance
company or benefit association only in accounts as defined in
Section 10-24, in the amount of past-due child support owing
pursuant to an order for child support entered under Sections
10-10 and 10-11 of this Code, or under the Illinois Marriage
and Dissolution of Marriage Act, the Non-Support of Spouse and
Children Act, the Non-Support Punishment Act, the Uniform
Interstate Family Support Act, or the Illinois Parentage Act of
1984.
(a-5) The State shall have a lien on all legal and
equitable interests of a payor, as that term is described in
the Income Withholding for Support Act, in the payor's personal
property in the amount of any fine imposed by the Illinois
Department pursuant to the Income Withholding for Support Act.

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(b) The Illinois Department shall provide by rule for
notice to and an opportunity to be heard by each responsible
relative or payor affected, and any final administrative
decision rendered by the Illinois Department shall be reviewed
only under and in accordance with the Administrative Review
Law.
(c) When enforcing a lien under subsection (a) of this
Section, the Illinois Department shall have the authority to
execute notices of administrative liens and levies, which shall
contain the name and address of the responsible relative or
payor, a description of the property to be levied, the fact
that a lien is being claimed for past-due child support, and
such other information as the Illinois Department may by rule
prescribe. The Illinois Department may serve the notice of lien
or levy upon any financial institution where the accounts as
defined in Section 10-24 of the responsible relative may be
held, for encumbrance or surrender of the accounts as defined
in Section 10-24 by the financial institution.
(d) The Illinois Department shall enforce its lien against
the responsible relative's or payor's personal property, other
than accounts as defined in Section 10-24 in financial
institutions, and levy upon such personal property in the
manner provided for enforcement of judgments contained in
Article XII of the Code of Civil Procedure.
(e) The Illinois Department shall not be required to
furnish bond or make a deposit for or pay any costs or fees of

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any court or officer thereof in any legal proceeding involving
the lien.
(f) To protect the lien of the State for past-due child
support and for any fine imposed on a payor, the Illinois
Department may, from funds that are available for that purpose,
pay or provide for the payment of necessary or essential
repairs, purchase tax certificates, or pay or cause to be
satisfied any prior liens on the property to which the lien
hereunder applies.
(g) A lien on personal property under this Section shall be
released in the manner provided under Article XII of the Code
of Civil Procedure. Notwithstanding the foregoing, a lien under
this Section on accounts as defined in Section 10-24 shall
expire upon the passage of 120 days from the date of issuance
of the Notice of Lien or Levy by the Illinois Department.
However, the lien shall remain in effect during the pendency of
any appeal or protest.
(h) A lien created under this Section is subordinate to any
prior lien of the financial institution or any prior lien
holder or any prior right of set-off that the financial
institution may have against the assets, or in the case of an
insurance company or benefit association only in the accounts
as defined in Section 10-24.
(i) A financial institution has no obligation under this
Section to hold, encumber, or surrender the assets, or in the
case of an insurance company or benefit association only the

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accounts as defined in Section 10-24, until the financial
institution has been properly served with a subpoena, summons,
warrant, court or administrative order, or administrative lien
and levy requiring that action.
(Source: P.A. 97-186, eff. 7-22-11.)
Section 10. The Income Withholding for Support Act is
amended by adding Section 50.5 as follows:
(750 ILCS 28/50.5 new)
Sec. 50.5. Administrative fines imposed by the Department
of Healthcare and Family Services.
(a) The administrative fines provided for under this
Section are in addition to any existing fines or penalties
against a payor provided for in other Sections of this Act and
do not affect who would be entitled to receive those existing
fines and penalties. In addition to any fines or penalties
provided for in this Act, when a payor wilfully fails, after
receiving 2 reminders from the Department of Healthcare and
Family Services, to withhold or pay over income pursuant to a
properly served income withholding notice or otherwise fails to
comply with any duties imposed by this Act, the Department may
impose a fine upon the payor not to exceed $1,000 per payroll
period. The fine shall be payable to the Department of
Healthcare and Family Services and may be used to defray the
costs incurred by the Department in the collection of the

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past-due support and penalties provided for in this Act. The
Department of Healthcare and Family Services shall place the
fines collected into a special fund created to implement the
purposes of this Section and the fines shall be utilized for
the purposes provided for in this Section. After deducting the
costs incurred by the Department of Healthcare and Family
Services in the collection of the past-due support and
penalties provided for in this Act, the remainder of the fines
collected under this Section shall be distributed
proportionally to the counties based on their population. The
counties shall use these funds to assist low income families in
defraying the costs associated with seeking parenting time.
(b) The Department of Healthcare and Family Services may
collect the fine through administrative liens and levies on the
real and personal property of the payor as provided in Sections
10-25 and 10-25.5 of the Illinois Public Aid Code.
(c) The payor may contest the fine as provided in Sections
10-25 and 10-25.5 of the Illinois Public Aid Code.
(d) The Department of Healthcare and Family Services may
adopt rules necessary for the implementation of this Section.
Section 99. Effective date. This Act takes effect July 1,
2017.".