HB 5221

Abstract

Amends the Income Withholding for Support Act. Provides that an income withholding notice must state a payor's duties and possible penalties in bold face type. Provides that a payor is subject to a $100 per day penalty if he or she willfully (instead of knowingly) fails to withhold the amount designated in an income withholding notice or to pay any amount withheld to the State Disbursement Unit within 7 business days. Provides that an action to collect a penalty from a payor may not be brought more than one year after the date of the payor's alleged failure to withhold or pay income. Provides that if an obligee who is receiving income withholding payments does not receive a payment required under the income withholding notice, the obligee must give written notice of the non-receipt to the payor. Provides that the notice must include the date on which the obligee believes the payment was to have been made and the amount of the payment and must be sent by certified mail, return receipt requested. Provides that after receiving a written notice of non-receipt of payment, a payor must, within 14 days thereafter, either (i) notify the obligee of the reason for the non-receipt of payment or (ii) make the required payment, together with interest at the rate of 9% calculated from the date on which the payment of income should have been made. Provides that a payor who fails to comply with this provision is subject to the $100 per day penalty provided under the Act. Effective immediately.