HB 237 — CHILD SUPPORT-INTEREST ACCRUAL

*LRB10004143HEP14148b* HB0237 100THEngrossed GENERALLRB100 ASSEMBLY04143 StateHEP of14148 Illinoisb andAN 2018ACT HB0237concerning bypublic Rep.aid.

La Shawn K.

Ford SYNOPSIS AS INTRODUCED:

ILCS 5/10-1 from Ch.

23, par.

10-1 ILCS 5/12-109 from Ch.

110, par.

12-109 Amends the Illinois Public Aid Code and the Code of Civil Procedure.

Provides that upon the assignment to the Department of Healthcare and Family Services of the right to collect a child support obligation, additional interest on the amount of the obligation owed to the State ceases to accrue.

LRB100 04143 HEP 14148 b FISCAL NOTE ACT MAY APPLY A BILL FOR HB0237 LRB100 04143 HEP 14148 b AN ACT concerning public aid.

The Illinois Public Aid Code is amended by changing Section 10-110-17.12 as follows:

(305 ILCS 5/10-1)5/10-17.12) (fromSec. Ch.

23,10-17.12. par.

10-1)Compromise Sec.of assigned child support arrearages and interest.

(a) The Department of Healthcare and Family Services may provide by rule for compromise of debt owed to the State in the form of child support arrearages and interest accrued on child support arrearages assigned to the State under Section 10-1.

DeclarationThe ofrule Publicshall Policyestablish -the Personscircumstances Eligibleunder forwhich Childsuch Supportobligations Enforcementmay Servicesbe -compromised, Feeswith fordue Non-Applicantsregard andfor Non-Recipients.) It is the intentpayment ability of thislow-income Codeobligors that the financial aid and social welfare services herein provided supplement rather than supplant the primaryimportance andof continuingencouraging obligationpayment of thecurrent familychild unitsupport forobligations. self-support to the fullest extent permitted by the resources available to it.

ThisThe primaryrule andshall continuingprovide obligationthat appliesassigned whetherobligations theshall familybe unitcompromised ofonly parentsin andexchange childrenfor orregular payment of husbandsupport andowed wifeto remainsthe intactfamily and residesshall inrequire athat commonobligors householdconsidered orfor whetherdebt thecompromise unitdemonstrate hasinability beento brokenpay byduring absencethe oftime onethe orassigned moreobligation membersaccumulated. of the unit.

The obligationrule shall provide for nullification of any compromise agreement and the familyprohibition unitof isany particularlyfuture applicablecompromise whenagreement aif memberthe isobligor inHB0237 necessitousEngrossed circumstances- and2 lacks- theLRB100 means04143 ofHEP a14148 livelihoodb compatiblefails withto healthadhere andto well-being.the compromise agreement.

ItIn isaddition, the purposerule ofshall thisestablish Articledebt tocompromise providecriteria forcalculated locatingto anmaximize absentpositive parenteffects oron spouse,families forand determiningthe hislevel financialof HB0237federal -incentive 2payments -payable LRB100to 04143the HEPState 14148under bTitle circumstances,IV, andPart forD enforcing his legal obligation of support,the ifSocial heSecurity isAct ableand toregulations furnishpromulgated support,thereunder. in whole or in part.

(b) The Department ofmay Healthcarecompromise andthe Familydebt Servicesowed shallby giveincarcerated priorityindividuals to establishing,the enforcingState andin collecting the currentform supportof obligation,child andsupport theninterest toaccrued paston duechild support owedarrearages toassigned the family unit, except with respect to collections effected through the interceptState programsunder providedSection for10-1. in this Article.

TheSuch childobligations supportmay enforcementbe servicescompromised, providedwith hereunderdue shallregard befor furnishedthe dependentspayment ability of anlow-income absentobligors parentand orthe spouseimportance whoof areencouraging applicantspayment for or recipients of financialcurrent aidchild undersupport thisobligations. Code.

ItAssigned isobligations not,shall however,be acompromised conditiononly ofupon eligibilityrequest forof financialan aidincarcerated thatindividual thereand beonly noupon responsibleproof relativesof whoincarceration areand reasonablythe ablelength tothereof. provide support.

Nor,Interest exceptowed asto providedthe inState Sectionswill 4-1.7only andbe 10-8,compromised shallfor the existenceperiod ofin suchwhich relativesthe orindividual theiris paymentactually ofincarcerated. support contributions disqualify a needy person for financial aid.

ByThe acceptinginterest financialdebt aidcompromise undershall thisbe Code,implemented ato spousemaximize orpositive aeffects parenton orfamilies otherand personthe havinglevel custody of afederal childincentive shallpayments bepayable deemed to have made assignment to the IllinoisState Department for aid under ArticlesTitle III, IV, VPart andD VII or to a local governmental unit for aid under Article VI of anythe andSocial allSecurity rights,Act title, and interestregulations inpromulgated anythereunder. support obligation, including statutory interest thereon, up to the amount of financial aid provided.

The rights to support assigned to the Department of Healthcare and Family Services (formerly Illinois Department of Public Aid) or local governmental unit HB0237 - 3 - LRB100 04143 HEP 14148 b shall constitute an obligation owed the State or local governmental unit by the person who is responsible for providing the support, and shall be collectible under all applicable processes.

Upon the assignment to the Department of Healthcare and Family Services of rights to support, additional interest on the amount of the obligation owed to the State ceases to accrue.

The Department of Healthcare and Family Services shall also furnish the child support enforcement services established under this Article in behalf of persons who are not applicants for or recipients of financial aid under this Code in accordance with the requirements of Title IV, Part D of the Social Security Act.

The Department may establish a schedule of reasonable fees, to be paid for the services provided and may deduct a collection fee, not to exceed 10% of the amount collected, from such collection.

The Department of Healthcare and Family Services shall cause to be published and distributed publications reasonably calculated to inform the public that individuals who are not recipients of or applicants for public aid under this Code are eligible for the child support enforcement services under this Article X.

Such publications shall set forth an explanation, in plain language, that the child support enforcement services program is independent of any public aid program under the Code and that the receiving of child support enforcement services in no way implies that the person receiving such services is receiving public aid.

HB0237 - 4 - LRB100 04143 HEP 14148 b (Source:

P.A.

94-90, eff.

1-1-06;

95-331, eff.

8-21-07.) Section 10.

The Code of Civil Procedure is amended by changing Section 12-109 as follows:

(735 ILCS 5/12-109) (from Ch.

110, par.

12-109) Sec.