HB 3683 — INCOME WITHHOLDING-PENALTY

HB3683 EngrossedEnrolled LRB099 09912 HEP 30126 b AN ACT concerning civil law.

Administrative liens and levies on real property for past-due child support and for fines against a payor of income 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-5) The State shall have a lien on all legal and HB3683 EngrossedEnrolled - 2 - LRB099 09912 HEP 30126 b equitable interests of a payorpayor, of income, 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 of income 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 payorpayor, of income, 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 of income pursuant to the Income Withholding for Support Act, and such other information as the Illinois Department may by rule prescribe.

(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 HB3683 Engrossed - 3 - LRB099 09912 HEP 30126 b counties in which the real estate is located.

The lien shall be HB3683 Enrolled - 3 - LRB099 09912 HEP 30126 b 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 entry shall show the name and last known address of the person or payor of income 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 of income due at the time when the HB3683 Engrossed - 4 - LRB099 09912 HEP 30126 b lien is filed.

(f) The Illinois Department shall not be required to HB3683 Enrolled - 4 - LRB099 09912 HEP 30126 b 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 payorpayor, of income, 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.

Administrative liens and levies on personal property for past-due child support and for fines against a payor of income who wilfully fails to withhold or pay over HB3683 Engrossed - 5 - LRB099 09912 HEP 30126 b income pursuant to a properly served income withholding notice or otherwise fails to comply with any duties imposed by the Income HB3683 Enrolled - 5 - LRB099 09912 HEP 30126 b Withholding for Support Act.

(a-5) The State shall have a lien on all legal and equitable interests of a payorpayor, of income, 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.

(b) The Illinois Department shall provide by rule for notice to and an opportunity to be heard by each responsible relative or payor of income affected, and any final administrative decision rendered by the Illinois Department HB3683 Engrossed - 6 - LRB099 09912 HEP 30126 b shall be reviewed only under and in accordance with the Administrative Review Law.

(c) When enforcing a lien under subsection (a) of this HB3683 Enrolled - 6 - LRB099 09912 HEP 30126 b 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 payorpayor, of income, 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.

(d) The Illinois Department shall enforce its lien against the responsible relative's or payor's of income 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.

(f) To protect the lien of the State for past-due child HB3683 Engrossed - 7 - LRB099 09912 HEP 30126 b support and for any fine imposed on a payorpayor, of income, 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 HB3683 Enrolled - 7 - LRB099 09912 HEP 30126 b satisfied any prior liens on the property to which the lien hereunder applies.

(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 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 HB3683 Engrossed - 8 - LRB099 09912 HEP 30126 b and levy requiring that action.

The Income Withholding for Support Act is HB3683 Enrolled - 8 - LRB099 09912 HEP 30126 b amended by adding Section 50.5 as follows:

(a) The administrative fines provided for under this Section are in addition to any existing fines or penalties against a payor of income 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 of income 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 of income not to exceed $1,000 per payroll period.

The Department of Healthcare and Family Services shall place the fines collected into a special fund HB3683 Engrossed - 9 - LRB099 09912 HEP 30126 b 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 HB3683 Enrolled - 9 - LRB099 09912 HEP 30126 b penalties provided for in this Act, the reminderremainder of the fines collected under this Section shall be distributed proportionally to the counties based on their population.

(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 of income as provided in Sections 10-25 and 10-25.5 of the Illinois Public Aid Code.

(c) The payor of income may contest the fine as provided in Sections 10-25 and 10-25.5 of the Illinois Public Aid Code.

This Act takes effect on July 1, 2017.