Bill Text: IL HB1041 | 2013-2014 | 98th General Assembly | Engrossed
Bill Title: Amends the Income Withholding for Support Act. Deletes language providing that for withholding of income, the payor is entitled to receive a fee not to exceed $5 per month to be taken from the obligor's income.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-03-08 - Tabled [HB1041 Detail]
Download: Illinois-2013-HB1041-Engrossed.html
| |||||||
| |||||||
| |||||||
1 | AN ACT concerning civil law.
| ||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||
3 | represented in the General Assembly:
| ||||||
4 | Section 5. The Income Withholding for Support Act is | ||||||
5 | amended by changing Section 35 as follows:
| ||||||
6 | (750 ILCS 28/35)
| ||||||
7 | Sec. 35. Duties of payor.
| ||||||
8 | (a) It shall be the duty of any payor who has
been served | ||||||
9 | with an income withholding notice to deduct and pay over income | ||||||
10 | as
provided
in
this Section. The payor shall deduct the amount | ||||||
11 | designated in the
income withholding notice, as supplemented by | ||||||
12 | any
notice provided pursuant to subsection (f) of Section 45,
| ||||||
13 | beginning
no later than the next payment of income which is | ||||||
14 | payable or creditable to
the obligor
that occurs 14 days | ||||||
15 | following the date the income withholding notice was
mailed, | ||||||
16 | sent by facsimile or other electronic
means, or placed for | ||||||
17 | personal delivery to or service on the
payor. The payor may | ||||||
18 | combine
all amounts withheld for the benefit of an obligee or | ||||||
19 | public office into a
single payment and transmit the payment | ||||||
20 | with a listing of obligors from
whom withholding has been | ||||||
21 | effected. The payor shall pay the amount withheld
to the State | ||||||
22 | Disbursement Unit within
7 business days after the date the
| ||||||
23 | amount would (but for the duty to withhold income) have been |
| |||||||
| |||||||
1 | paid or credited
to the obligor. If the payor knowingly fails | ||||||
2 | to withhold the amount designated
in the income
withholding | ||||||
3 | notice or to pay any amount 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, then the payor shall | ||||||
6 | pay a penalty of $100 for each day that the
amount designated | ||||||
7 | in the income withholding notice (whether or
not withheld by | ||||||
8 | the payor) is not paid to the State Disbursement Unit after
the | ||||||
9 | period of
7 business days has expired. The total penalty for a | ||||||
10 | payor's failure, on one occasion, to withhold or pay to the | ||||||
11 | State Disbursement Unit an amount designated in the
income | ||||||
12 | withholding notice may not exceed $10,000. The failure of a | ||||||
13 | payor, on
more than one
occasion, to pay amounts withheld to | ||||||
14 | the State Disbursement Unit within
7 business days after the | ||||||
15 | date the amount would have been paid or credited to
the
obligor | ||||||
16 | creates a
presumption that the payor knowingly failed to pay | ||||||
17 | over the amounts. This
penalty may be collected in a civil | ||||||
18 | action which may be brought against the
payor in favor of the | ||||||
19 | obligee or public office. An action to collect the penalty may | ||||||
20 | not be brought more than one year after the date of the payor's | ||||||
21 | alleged failure to withhold or pay income.
A finding of a | ||||||
22 | payor's nonperformance within the time required under
this Act | ||||||
23 | must be documented by a certified mail return receipt
or a | ||||||
24 | sheriff's or private process server's proof of service showing | ||||||
25 | the date
the income withholding notice was served on the payor.
| ||||||
26 | For purposes of this Act,
a withheld
amount shall be considered |
| |||||||
| |||||||
1 | paid by a payor on the date it is mailed by the
payor, or on the | ||||||
2 | date an electronic funds transfer of the amount has been
| ||||||
3 | initiated by the payor, or on the date delivery of the amount | ||||||
4 | has been
initiated by the payor. For each deduction, the payor | ||||||
5 | shall provide the
State Disbursement Unit, at the time of
| ||||||
6 | transmittal, with the date
the amount would (but for the duty | ||||||
7 | to withhold income) have been paid or
credited to the obligor.
| ||||||
8 | After June 30, 2000, every payor that has 250 or more | ||||||
9 | employees shall use
electronic funds transfer to pay all | ||||||
10 | amounts withheld under this Section.
During the year
2001 and | ||||||
11 | during each year thereafter, every payor that has fewer than | ||||||
12 | 250
employees
and that
withheld income under this Section | ||||||
13 | pursuant to 10 or more income withholding
notices
during | ||||||
14 | December of the preceding year shall use electronic funds | ||||||
15 | transfer to
pay all
amounts withheld under this Section.
| ||||||
16 | Upon receipt of an income withholding notice requiring that | ||||||
17 | a
minor child be named as a
beneficiary of a health insurance | ||||||
18 | plan available through an employer or labor
union or trade | ||||||
19 | union, the employer or labor union or trade union shall
| ||||||
20 | immediately enroll the minor child as a beneficiary in the | ||||||
21 | health insurance
plan designated by the income withholding | ||||||
22 | notice. The
employer shall withhold any required
premiums and | ||||||
23 | pay over any amounts so withheld and any additional amounts the
| ||||||
24 | employer pays to the insurance carrier in a timely manner. The | ||||||
25 | employer or
labor union or trade union shall mail to the | ||||||
26 | obligee, within 15 days of
enrollment or upon request, notice |
| |||||||
| |||||||
1 | of the date of coverage, information on the
dependent coverage | ||||||
2 | plan, and all forms necessary to obtain reimbursement for
| ||||||
3 | covered health expenses, such as would be made available to a | ||||||
4 | new employee.
When an order for dependent coverage is in effect | ||||||
5 | and the insurance coverage is
terminated or changed for any | ||||||
6 | reason, the employer or labor union or trade
union shall notify | ||||||
7 | the obligee within 10 days of the termination or change date
| ||||||
8 | along with notice of conversion privileges.
| ||||||
9 | For withholding of income, the payor shall be entitled to | ||||||
10 | receive a fee
not to exceed $5 per month to be taken
from
the | ||||||
11 | income to be paid to the
obligor.
| ||||||
12 | (b) Whenever the obligor is no longer receiving income from | ||||||
13 | the payor,
the payor shall return a copy of the income | ||||||
14 | withholding
notice to the obligee
or public office and shall | ||||||
15 | provide information for the purpose of enforcing
this Act.
| ||||||
16 | (c) Withholding of income under this Act shall be made | ||||||
17 | without
regard
to any prior or subsequent garnishments, | ||||||
18 | attachments, wage assignments,
or any other claims of | ||||||
19 | creditors. Withholding of income
under this Act shall not be in | ||||||
20 | excess of the maximum amounts
permitted under the federal | ||||||
21 | Consumer Credit Protection Act.
Income available for | ||||||
22 | withholding shall be applied first to the current
support | ||||||
23 | obligation, then to any premium required for employer, labor | ||||||
24 | union, or
trade union-related health insurance coverage | ||||||
25 | ordered under the order for
support, and then to payments | ||||||
26 | required on past-due support obligations. If
there is |
| |||||||
| |||||||
1 | insufficient available income remaining to pay the full amount | ||||||
2 | of the
required health insurance premium after withholding of | ||||||
3 | income for the current
support obligation, then the remaining | ||||||
4 | available income shall be applied to
payments required on | ||||||
5 | past-due support obligations.
If the payor has been served with | ||||||
6 | more than one income
withholding notice
pertaining to the same | ||||||
7 | obligor, the payor shall allocate income available
for | ||||||
8 | withholding on a proportionate share basis, giving priority to | ||||||
9 | current
support payments.
A payor who complies with an income | ||||||
10 | withholding notice that is
regular on its
face shall not be | ||||||
11 | subject to civil liability with respect to any individual,
any | ||||||
12 | agency, or any creditor of the obligor for conduct in | ||||||
13 | compliance with the
notice.
| ||||||
14 | (d) No payor shall discharge, discipline, refuse to hire or | ||||||
15 | otherwise
penalize any obligor because of the duty to withhold | ||||||
16 | income.
| ||||||
17 | (Source: P.A. 96-53, eff. 1-1-10; 97-994, eff. 8-17-12.)
|