Sen. Dan Kotowski

Filed: 11/16/2010

 

 


 

 


 
09600HB2263sam003LRB096 08412 PJG 43848 a

1
AMENDMENT TO HOUSE BILL 2263

2    AMENDMENT NO. ______. Amend House Bill 2263, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Uncollected State Claims Act is amended by
6changing Section 2.1 as follows:
 
7    (30 ILCS 205/2.1)
8    Sec. 2.1. Sale of debts certified as uncollectible.
9    (a) Except as otherwise provided in this Section, after
10After accounts have been certified by the Attorney General, or
11the State agency for accounts of less than $1,000, as
12uncollectible pursuant to this Act, the Department of Revenue
13may sell the debts to one or more outside private vendors.
14Sales shall be conducted under rules adopted by the Department
15of Revenue using a request for proposals procedure similar to
16that procedure under the Illinois Procurement Code. The outside

 

 

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1private vendors shall remit to the Department of Revenue the
2purchase price for debts sold under this Section. The
3Department of Revenue shall deposit the money received under
4this Section into the General Revenue Fund. The State
5Comptroller shall provide the Department of Revenue with any
6information that the Department requests for the purpose of
7administering this Section. This Section does not apply to any
8tax debt owing to the Department of Revenue.
9    (b) Debts owing to an Illinois public university, as
10defined in Section 10 of the Illinois Prepaid Tuition Act (110
11ILCS 979/10), may be sold only by the university. Sales under
12this subsection shall be conducted using a request for
13proposals procedure similar to the procedure established under
14the Illinois Procurement Code. Any amounts remitted to a
15university under this subsection shall be retained by the
16university.
17    (c) Debts owing to the Illinois Department of
18Transportation may be sold only by the Illinois Department of
19Transportation. Sales under this subsection shall be conducted
20using a request for proposals procedure similar to the
21procedure established under the Illinois Procurement Code. Any
22amounts remitted to the Department of Transportation under this
23subsection shall be deposited in the Road Fund.
24    (d) This Section does not apply to child support debts
25enforced by the Department of Healthcare and Family Services
26pursuant to Title IV-D of the federal Social Security Act and

 

 

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1Article X of the Illinois Public Aid Code.
2    (e) This Section does not apply to debts enforced by the
3Department of Employment Security and owed to any federal
4account, including but not limited to the Unemployment Trust
5Fund and penalties and interest assessed under the Unemployment
6Insurance Act.
7    (f) A debt may not be sold under this Section if the sale
8of that debt would violate any federal law or federal
9regulation.
10(Source: P.A. 96-1435, eff. 8-16-10.)
 
11    Section 10. The Illinois State Collection Act of 1986 is
12amended by changing Sections 10.1 and 10.2 as follows:
 
13    (30 ILCS 210/10.1)
14    Sec. 10.1 9. Collection agency fees. Except where
15prohibited by federal law or regulation, in the case of any
16liability referred to a collection agency on or after July 1,
172010, any fee charged to the State by the collection agency (i)
18may not exceed 25% for a first placement of the underlying
19liability referred to the collection agency unless the
20liability is for a tax debt, (ii) is considered an additional
21liability owed to the State, (iii) is immediately subject to
22all collection procedures applicable to the liability referred
23to the collection agency, and (iv) must be separately stated in
24any statement or notice of the liability issued by the

 

 

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1collection agency to the debtor. The fee limitations of this
2Section do not apply to a second, third, or subsequent
3placement or to litigation activities.
4(Source: P.A. 96-1383, eff. 1-1-11; revised 9-7-10.)
 
5    (30 ILCS 210/10.2)
6    Sec. 10.2 9. Deferral and compromise of past due debt.
7    (a) In this Section, "past due debt" means any debt owed to
8the State that has been outstanding for more than 12 months.
9"Past due debt" does not include any debt if any of the actions
10required under this Section would violate federal law or
11regulation.
12    (a-5) This Section does not apply to child support debts
13enforced by the Department of Healthcare and Family Services
14pursuant to Title IV-D of the federal Social Security Act and
15Article X of the Illinois Public Aid Code.
16    (a-10) This Section does not apply to debts enforced by the
17Department of Employment Security and owed to any federal
18account, including but not limited to the Unemployment Trust
19Fund and penalties and interest assessed under the Unemployment
20Insurance Act.
21    (b) State agencies may enter into a deferred payment plan
22for the purpose of satisfying a past due debt. The deferred
23payment plan must meet the following requirements:
24        (1) The term of the deferred payment plan may not
25    exceed 2 years.

 

 

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1        (2) The first payment of the deferred payment plan must
2    be at least 10% of the total amount due.
3        (3) All subsequent monthly payments for the deferred
4    payment plan must be assessed as equal monthly principal
5    payments, together with interest.
6        (4) The deferred payment plan must include interest at
7    a rate that is the same as the interest required under the
8    State Prompt Payment Act.
9        (5) The deferred payment plan must be approved by the
10    Secretary or Director of the State agency.
11    (b-5) The requirements of subsection (b) do not apply to a
12deferred payment plan entered into by any Illinois public
13university, as defined in Section 10 of the Illinois Prepaid
14Tuition Act.
15    (c) State agencies may compromise past due debts. Any
16action taken by a State agency to compromise a past due debt
17must meet the following requirements:
18        (1) The amount of the compromised debt shall be no less
19    than 80% of the principal amount total of the past due
20    debt.
21        (2) Once a past due debt has been compromised, the
22    debtor must remit to the State agency the total amount of
23    the compromised debt. However, the State agency may collect
24    the compromised debt through a payment plan not to exceed 6
25    months. If the State agency accepts the compromised debt
26    through a payment plan, then the compromised debt shall be

 

 

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1    subject to the same rate of interest as required under the
2    State Prompt Payment Act.
3        (3) Before a State agency accepts a compromised debt,
4    the amount of the compromised debt must be approved by the
5    Secretary or Director of the State agency Department of
6    Revenue.
7    (c-5) Illinois public universities, as defined in Section
810 of the Illinois Prepaid Tuition Act, may compromise past due
9debt without regard to the requirements set forth in subsection
10(c).
11    (d) State agencies may sell a past due debt to one or more
12outside private vendors. Sales shall be conducted under rules
13adopted by the Department of Revenue using a request for
14proposals procedure similar to that procedure under the
15Illinois Procurement Code. The outside private vendors shall
16remit to the State agency the purchase price for debts sold
17under this subsection.
18    (e) The State agency shall deposit all amounts received
19under this Section into the General Revenue Fund, except that
20amounts received by any Illinois public university, as defined
21in Section 10 of the Illinois Prepaid Tuition Act, shall be
22retained by the university, and amounts received by the
23Department of Transportation shall be deposited into the Road
24Fund..
25    (f) This Section does not apply to any tax debt owing to
26the Department of Revenue.

 

 

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3(Source: P.A. 96-1435, eff. 8-16-10; revised 9-7-10.)".