Bill Text: IL HB3898 | 2015-2016 | 99th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Income Withholding for Support Act. Defines "non-employee" as an independent contractor, a vendor, or a person receiving payments who is not an employee and not receiving payments for personal services. Provides that "obligor" includes a non-employee. Provides that the payor shall calculate all applicable deductions to a non-employee obligor's income as if the non-employee were an employee, whether or not the deductions are actually taken from the non-employee obligor's income. Provides that the amount withheld on the remaining balance of payments, paid or payable, to the non-employee shall not be in excess of the maximum amounts permitted under the federal Consumer Credit Protection Act.
Spectrum: Moderate Partisan Bill (Democrat 15-2)
Status: (Passed) 2016-08-12 - Public Act . . . . . . . . . 99-0763 [HB3898 Detail]
Download: Illinois-2015-HB3898-Introduced.html
Bill Title: Amends the Income Withholding for Support Act. Defines "non-employee" as an independent contractor, a vendor, or a person receiving payments who is not an employee and not receiving payments for personal services. Provides that "obligor" includes a non-employee. Provides that the payor shall calculate all applicable deductions to a non-employee obligor's income as if the non-employee were an employee, whether or not the deductions are actually taken from the non-employee obligor's income. Provides that the amount withheld on the remaining balance of payments, paid or payable, to the non-employee shall not be in excess of the maximum amounts permitted under the federal Consumer Credit Protection Act.
Spectrum: Moderate Partisan Bill (Democrat 15-2)
Status: (Passed) 2016-08-12 - Public Act . . . . . . . . . 99-0763 [HB3898 Detail]
Download: Illinois-2015-HB3898-Introduced.html
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1 | AN ACT concerning civil law.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Income Withholding for Support Act is | |||||||||||||||||||||
5 | amended by changing Sections 15 and 35 as follows:
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6 | (750 ILCS 28/15)
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7 | Sec. 15. Definitions.
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8 | (a) "Order for support" means any order of the court
which | |||||||||||||||||||||
9 | provides for periodic payment of funds for the support of a | |||||||||||||||||||||
10 | child
or maintenance of a spouse, whether temporary or final, | |||||||||||||||||||||
11 | and includes any
such order which provides for:
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12 | (1) modification or resumption of, or payment of | |||||||||||||||||||||
13 | arrearage, including interest, accrued under,
a previously | |||||||||||||||||||||
14 | existing order;
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15 | (2) reimbursement of support;
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16 | (3) payment or reimbursement of the expenses of | |||||||||||||||||||||
17 | pregnancy and delivery
(for orders for support entered | |||||||||||||||||||||
18 | under the Illinois Parentage Act of 1984 or its
predecessor | |||||||||||||||||||||
19 | the Paternity Act); or
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20 | (4) enrollment in a health insurance plan that is | |||||||||||||||||||||
21 | available to the
obligor through an employer or labor union | |||||||||||||||||||||
22 | or trade union.
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23 | (b) "Arrearage" means the total amount of unpaid support |
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1 | obligations, including interest,
as determined by the court and | ||||||
2 | incorporated into an order for support.
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3 | (b-5) "Business day" means a day on which State offices are | ||||||
4 | open for
regular business.
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5 | (c) "Delinquency" means any payment, including a payment of | ||||||
6 | interest, under an order for support
which
becomes due and | ||||||
7 | remains unpaid after entry of the order for
support.
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8 | (d) "Income" means any form of periodic payment to an | ||||||
9 | individual,
regardless of source, including, but not limited | ||||||
10 | to: wages, salary,
commission, compensation as an independent | ||||||
11 | contractor, workers'
compensation, disability, annuity, | ||||||
12 | pension, and retirement benefits,
lottery prize
awards, | ||||||
13 | insurance proceeds, vacation pay, bonuses, profit-sharing | ||||||
14 | payments, severance pay,
interest,
and any other payments, made | ||||||
15 | by any person, private entity, federal or
state government, any | ||||||
16 | unit of local government, school district or any
entity created | ||||||
17 | by Public Act; however, "income" excludes:
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18 | (1) any amounts required by law to be withheld, other | ||||||
19 | than creditor
claims, including, but not limited to, | ||||||
20 | federal, State and local taxes,
Social Security and other | ||||||
21 | retirement and disability contributions;
| ||||||
22 | (2) union dues;
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23 | (3) any amounts exempted by the federal Consumer Credit | ||||||
24 | Protection Act;
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25 | (4) public assistance payments; and
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26 | (5) unemployment insurance benefits except as provided |
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1 | by law.
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2 | Any other State or local laws which limit or exempt income | ||||||
3 | or the amount
or percentage of income that can be withheld | ||||||
4 | shall not apply.
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5 | (d-5) "Non-employee" means an independent contractor, a | ||||||
6 | vendor, or a person receiving payments who is not an employee | ||||||
7 | and not receiving payments for personal services. | ||||||
8 | (e) "Obligor" means the individual who owes a duty to make | ||||||
9 | payments under an
order for support and includes a | ||||||
10 | non-employee .
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11 | (f) "Obligee" means the individual to whom a duty of | ||||||
12 | support is owed or
the individual's legal representative.
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13 | (g) "Payor" means any payor of income to an obligor.
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14 | (h) "Public office" means any elected official or any State | ||||||
15 | or local agency
which is or may become responsible by law for | ||||||
16 | enforcement of, or which
is or may become authorized to | ||||||
17 | enforce, an order for support, including,
but not limited to: | ||||||
18 | the Attorney General, the Illinois Department of Healthcare and | ||||||
19 | Family Services, the Illinois Department of Human Services,
the | ||||||
20 | Illinois Department of Children and Family Services, and the | ||||||
21 | various
State's Attorneys, Clerks of the Circuit Court and | ||||||
22 | supervisors of general
assistance.
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23 | (i) "Premium" means the dollar amount for which the obligor | ||||||
24 | is liable
to his employer or labor union or trade union and | ||||||
25 | which must be paid to enroll
or maintain a child in a health | ||||||
26 | insurance plan that is available to the obligor
through an |
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1 | employer or labor union or trade union.
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2 | (j) "State Disbursement Unit" means the unit established to | ||||||
3 | collect and
disburse support payments in accordance with the | ||||||
4 | provisions of Section 10-26 of
the Illinois Public Aid Code.
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5 | (k) "Title IV-D Agency" means the agency of this State | ||||||
6 | charged by law with
the duty to administer the child support | ||||||
7 | enforcement program established under
Title IV, Part D of the | ||||||
8 | Social Security Act and Article X of the Illinois
Public Aid | ||||||
9 | Code.
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10 | (l) "Title IV-D case" means a case in which an obligee or | ||||||
11 | obligor is
receiving child support enforcement services under | ||||||
12 | Title IV, Part D of the
Social Security Act and Article X of | ||||||
13 | the Illinois Public Aid Code.
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14 | (m) "National Medical Support Notice" means the notice | ||||||
15 | required for
enforcement of orders for support providing for | ||||||
16 | health insurance coverage of a
child under Title IV, Part D of | ||||||
17 | the Social Security Act, the Employee
Retirement Income | ||||||
18 | Security Act of 1974, and federal regulations promulgated
under | ||||||
19 | those Acts.
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20 | (n) "Employer" means a payor or labor union or trade union | ||||||
21 | with an employee
group health insurance plan and, for purposes | ||||||
22 | of the National Medical Support
Notice, also includes but is | ||||||
23 | not limited to:
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24 | (1) any State or local governmental agency with a group | ||||||
25 | health
plan; and
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26 | (2) any payor with a group health plan or "church plan" |
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1 | covered
under the Employee Retirement Income Security Act | ||||||
2 | of 1974.
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3 | (Source: P.A. 94-90, eff. 1-1-06; 95-331, eff. 8-21-07; 95-685, | ||||||
4 | eff. 10-23-07.)
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5 | (750 ILCS 28/35)
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6 | Sec. 35. Duties of payor.
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7 | (a) It shall be the duty of any payor who has
been served | ||||||
8 | with an income withholding notice to deduct and pay over income | ||||||
9 | as
provided
in
this Section. The payor shall deduct the amount | ||||||
10 | designated in the
income withholding notice, as supplemented by | ||||||
11 | any
notice provided pursuant to subsection (f) of Section 45,
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12 | beginning
no later than the next payment of income which is | ||||||
13 | payable or creditable to
the obligor
that occurs 14 days | ||||||
14 | following the date the income withholding notice was
mailed, | ||||||
15 | sent by facsimile or other electronic
means, or placed for | ||||||
16 | personal delivery to or service on the
payor. The payor may | ||||||
17 | combine
all amounts withheld for the benefit of an obligee or | ||||||
18 | public office into a
single payment and transmit the payment | ||||||
19 | with a listing of obligors from
whom withholding has been | ||||||
20 | effected. The payor shall pay the amount withheld
to the State | ||||||
21 | Disbursement Unit within
7 business days after the date the
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22 | amount would (but for the duty to withhold income) have been | ||||||
23 | paid or credited
to the obligor. If the payor knowingly fails | ||||||
24 | to withhold the amount designated
in the income
withholding | ||||||
25 | notice or to pay any amount withheld to the
State
Disbursement |
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1 | Unit within
7 business days after the date the amount would | ||||||
2 | have been paid or credited to
the
obligor, then the payor shall | ||||||
3 | pay a penalty of $100 for each day that the
amount designated | ||||||
4 | in the income withholding notice (whether or
not withheld by | ||||||
5 | the payor) is not paid to the State Disbursement Unit after
the | ||||||
6 | period of
7 business days has expired. The total penalty for a | ||||||
7 | payor's failure, on one occasion, to withhold or pay to the | ||||||
8 | State Disbursement Unit an amount designated in the
income | ||||||
9 | withholding notice may not exceed $10,000. The failure of a | ||||||
10 | payor, on
more than one
occasion, to pay amounts withheld to | ||||||
11 | the State Disbursement Unit within
7 business days after the | ||||||
12 | date the amount would have been paid or credited to
the
obligor | ||||||
13 | creates a
presumption that the payor knowingly failed to pay | ||||||
14 | over the amounts. This
penalty may be collected in a civil | ||||||
15 | action which may be brought against the
payor in favor of the | ||||||
16 | obligee or public office. An action to collect the penalty may | ||||||
17 | not be brought more than one year after the date of the payor's | ||||||
18 | alleged failure to withhold or pay income.
A finding of a | ||||||
19 | payor's nonperformance within the time required under
this Act | ||||||
20 | must be documented by a certified mail return receipt
or a | ||||||
21 | sheriff's or private process server's proof of service showing | ||||||
22 | the date
the income withholding notice was served on the payor.
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23 | For purposes of this Act,
a withheld
amount shall be considered | ||||||
24 | paid by a payor on the date it is mailed by the
payor, or on the | ||||||
25 | date an electronic funds transfer of the amount has been
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26 | initiated by the payor, or on the date delivery of the amount |
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1 | has been
initiated by the payor. For each deduction, the payor | ||||||
2 | shall provide the
State Disbursement Unit, at the time of
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3 | transmittal, with the date
the amount would (but for the duty | ||||||
4 | to withhold income) have been paid or
credited to the obligor.
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5 | After June 30, 2000, every payor that has 250 or more | ||||||
6 | employees shall use
electronic funds transfer to pay all | ||||||
7 | amounts withheld under this Section.
During the year
2001 and | ||||||
8 | during each year thereafter, every payor that has fewer than | ||||||
9 | 250
employees
and that
withheld income under this Section | ||||||
10 | pursuant to 10 or more income withholding
notices
during | ||||||
11 | December of the preceding year shall use electronic funds | ||||||
12 | transfer to
pay all
amounts withheld under this Section.
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13 | Upon receipt of an income withholding notice requiring that | ||||||
14 | a
minor child be named as a
beneficiary of a health insurance | ||||||
15 | plan available through an employer or labor
union or trade | ||||||
16 | union, the employer or labor union or trade union shall
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17 | immediately enroll the minor child as a beneficiary in the | ||||||
18 | health insurance
plan designated by the income withholding | ||||||
19 | notice. The
employer shall withhold any required
premiums and | ||||||
20 | pay over any amounts so withheld and any additional amounts the
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21 | employer pays to the insurance carrier in a timely manner. The | ||||||
22 | employer or
labor union or trade union shall mail to the | ||||||
23 | obligee, within 15 days of
enrollment or upon request, notice | ||||||
24 | of the date of coverage, information on the
dependent coverage | ||||||
25 | plan, and all forms necessary to obtain reimbursement for
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26 | covered health expenses, such as would be made available to a |
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1 | new employee.
When an order for dependent coverage is in effect | ||||||
2 | and the insurance coverage is
terminated or changed for any | ||||||
3 | reason, the employer or labor union or trade
union shall notify | ||||||
4 | the obligee within 10 days of the termination or change date
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5 | along with notice of conversion privileges.
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6 | For withholding of income, the payor shall be entitled to | ||||||
7 | receive a fee
not to exceed $5 per month to be taken
from
the | ||||||
8 | income to be paid to the
obligor.
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9 | (b) Whenever the obligor is no longer receiving income from | ||||||
10 | the payor,
the payor shall return a copy of the income | ||||||
11 | withholding
notice to the obligee
or public office and shall | ||||||
12 | provide information for the purpose of enforcing
this Act.
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13 | (c) Withholding of income under this Act shall be made | ||||||
14 | without
regard
to any prior or subsequent garnishments, | ||||||
15 | attachments, wage assignments,
or any other claims of | ||||||
16 | creditors. Withholding of income
under this Act shall not be in | ||||||
17 | excess of the maximum amounts
permitted under the federal | ||||||
18 | Consumer Credit Protection Act. The payor shall calculate all | ||||||
19 | applicable deductions to a non-employee obligor's income as if | ||||||
20 | the non-employee were an employee, whether or not the | ||||||
21 | deductions are actually taken from the non-employee obligor's | ||||||
22 | income. The amount withheld on the remaining balance of | ||||||
23 | payments, paid or payable, to the non-employee shall not be in | ||||||
24 | excess of the maximum amounts permitted under the federal | ||||||
25 | Consumer Credit Protection Act.
Income available for | ||||||
26 | withholding shall be applied first to the current
support |
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1 | obligation, then to any premium required for employer, labor | ||||||
2 | union, or
trade union-related health insurance coverage | ||||||
3 | ordered under the order for
support, and then to payments | ||||||
4 | required on past-due support obligations. If
there is | ||||||
5 | insufficient available income remaining to pay the full amount | ||||||
6 | of the
required health insurance premium after withholding of | ||||||
7 | income for the current
support obligation, then the remaining | ||||||
8 | available income shall be applied to
payments required on | ||||||
9 | past-due support obligations.
If the payor has been served with | ||||||
10 | more than one income
withholding notice
pertaining to the same | ||||||
11 | obligor, the payor shall allocate income available
for | ||||||
12 | withholding on a proportionate share basis, giving priority to | ||||||
13 | current
support payments.
A payor who complies with an income | ||||||
14 | withholding notice that is
regular on its
face shall not be | ||||||
15 | subject to civil liability with respect to any individual,
any | ||||||
16 | agency, or any creditor of the obligor for conduct in | ||||||
17 | compliance with the
notice.
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18 | (d) No payor shall discharge, discipline, refuse to hire or | ||||||
19 | otherwise
penalize any obligor because of the duty to withhold | ||||||
20 | income.
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21 | (Source: P.A. 96-53, eff. 1-1-10; 97-994, eff. 8-17-12.)
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