ISBA Statehouse Review for the week of August 23

ISBA Director of Legislative Affairs Jim Covington reviews bills in Springfield of interest to ISBA members. In this episode he covers the Health Care Services Lien Act, Personal property exemptions and trusts, Child-support enforcement (Public Act 97-994 and Public Act 97-1029), Sanctions for visitation violations, Domestic violence form, Adoption and Article 9 of the UCC. More information on each bill is available below the video.

Health Care Services Lien Act. Public Act 97-1042 (Thapedi, D-Chicago; Mulroe, D-Chicago) does two things in subrogation and right of reimbursement claims. (1) It proportionately reduces subrogation claims or other claims of right of reimbursement for medical expenses in the same proportion that the injured consumer's recovery is reduced because of comparative fault or limited liability insurance. (2) It requires a party asserting a subrogation claim or other right of reimbursement to bear the pro rata share of the claimant's attorney's fees and litigation expenses. House Bill 5823 exempts any health-care provider's liens and work comp, UIM, and UM cases from these two provisions. House Bill 5823 also allows petitions to adjudicate rights under this Act to be served on interested parties by personal service, substitute service, or registered or certified mail. Effective January 1, 2013.

Personal property exemptions and trusts. Public Act 97-1030 (Sandack, R-Lombard; Mathias, R-Buffalo Grove) exempts from judgment a revocable or irrevocable trust that names the wife or husband of the insured or which names child, parent, or other person dependent upon the insured as the primary beneficiary of the trust. Effective July 1, 2012.

Child-support enforcement. Public Act 97-994 (Pritchard, R-Sycamore; Silverstein, D-Chicago) does three things in the Income-Withholding for Support Act. (1) It requires 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. (2) It requires that the obligee must give written notice of the non-receipt of payment to the payor by certified mail with return receipt requested. Within 14 days of receipt by the payor the payor must (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 percent calculated from the date on which the payment of income should have been made. If a payor fails to comply with this provision, the payor is subject to the $100 per day penalty provided under the Act. (3) It caps the total penalty for one occasion at $10,000 for a payor's failure to withhold or pay to the SDU an amount designated in the income-withholding notice. Effective August 17, 2012.

Child-support enforcement. Public Act 97-1029 (Dillard, R-Hinsdale; Pihos, R-Glen Ellyn) authorizes a court to require a self-employed person who is found in contempt for failing to pay child support to (a) provide monthly financial statements from the business or the self-employment; (b) seek employment and report to the court information about his or her employment search; or (c) report to the Department of Employment Security for job-search services to find employment that will be subject to child support withholding. Effective January 1, 2013.

Sanctions for visitation violations. Public Act 97-1047 (Sullivan, D-Rushville; Howard, D-Chicago) authorizes a judge to impose sanctions for visitation abuse similar to those that may be imposed for failing to pay child support, such as suspending an offender's driver's license. Effective August 21, 2012.

Domestic violence form. Public Act 97-1017 (Cunningham, D-Chicago; Kotowski, D-Park Ridge) allows a statutory short-form notification to be used to serve on respondents in the Illinois Domestic Violence Act of 1986, the Stalking No-Contact Order Act, and the Civil No-Contact Order Act. Effective January 1, 2013.

Adoption. Public Act 97-988 (Sommer, R-Morton; LaHood, R-Peoria) eliminates service of process on a minor defendant who is less than 14 years of age for whom a guardian ad litem has been or will be appointed under the Adoption Act. But House Bill 5062 doesn't override any provision of the Adoption Act that relates to "identifying information" to which an adopted person is entitled under the Adoption Act's registry. Effective January 1, 2013.

Article 9 of the UCC. Public Act 97-1034 (Harmon, D-Oak Park; Zalewski, D-Chicago) conforms Article 9 of the Uniform Commercial Code to the 2010 amendments as proposed by the Uniform Law Commission. (See the June Illinois Bar Journal article by Michelle Nijm that discusses this bill in more detail.) Effective July 1, 2013.