HB0384 EnrolledLRB097 03271 RLJ 43308 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Comptroller Act is amended by changing
5Section 10.05 and by adding Section 10.05d as follows:
 
6    (15 ILCS 405/10.05)  (from Ch. 15, par. 210.05)
7    Sec. 10.05. Deductions from warrants; statement of reason
8for deduction. Whenever any person shall be entitled to a
9warrant or other payment from the treasury or other funds held
10by the State Treasurer, on any account, against whom there
11shall be any then due and payable account or claim in favor of
12the State, or to the United States upon certification by the
13Secretary of the Treasury of the United States, or his or her
14delegate, pursuant to a reciprocal offset agreement under
15subsection (i-1) of Section 10 of the Illinois State Collection
16Act of 1986, or a unit of local government, a school district,
17or a public institution of higher education, as defined in
18Section 1 of the Board of Higher Education Act, upon
19certification by that entity then due and payable, the
20Comptroller, upon notification thereof, shall ascertain the
21amount due and payable to the State, or to the United States,
22the unit of local government, the school district, or the
23public institution of higher education, as aforesaid, and draw

 

 

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1a warrant on the treasury or on other funds held by the State
2Treasurer, stating the amount for which the party was entitled
3to a warrant or other payment, the amount deducted therefrom,
4and on what account, and directing the payment of the balance;
5which warrant or payment as so drawn shall be entered on the
6books of the Treasurer, and such balance only shall be paid.
7The Comptroller may deduct any one or more of the following:
8(i) the entire amount due and payable to the State or may
9deduct a portion of the amount due and payable to the State in
10accordance with the request of the notifying agency; (ii) , and
11may deduct the entire amount due and payable to the United
12States, or may deduct a portion of the amount due and payable
13to the United States, in accordance with a reciprocal offset
14agreement under subsection (i-1) of Section 10 of the Illinois
15State Collection Act of 1986; or (iii) the entire amount due
16and payable to the unit of local government, school district,
17or public institution of higher education or a portion of the
18amount due and payable to that entity in accordance with an
19intergovernmental agreement authorized under this Section and
20Section 10.05d. No request from a notifying agency, or from the
21Secretary of the Treasury of the United States, a unit of local
22government, a school district, or a public institution of
23higher education for an amount to be deducted under this
24Section from a wage or salary payment, or from a contractual
25payment to an individual for personal services, shall exceed
2625% of the net amount of such payment. "Net amount" means that

 

 

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1part of the earnings of an individual remaining after deduction
2of any amounts required by law to be withheld. For purposes of
3this provision, wage, salary or other payments for personal
4services shall not include final compensation payments for the
5value of accrued vacation, overtime or sick leave. Whenever the
6Comptroller draws a warrant or makes a payment involving a
7deduction ordered under this Section, the Comptroller shall
8notify the payee and the State agency that submitted the
9voucher of the reason for the deduction and he or she shall
10retain a record of such statement in his or her records. As
11used in this Section, an "account or claim in favor of the
12State" includes all amounts owing to "State agencies" as
13defined in Section 7 of this Act. However, the Comptroller
14shall not be required to accept accounts or claims owing to
15funds not held by the State Treasurer, where such accounts or
16claims do not exceed $50, nor shall the Comptroller deduct from
17funds held by the State Treasurer under the Senior Citizens and
18Disabled Persons Property Tax Relief and Pharmaceutical
19Assistance Act or for payments to institutions from the
20Illinois Prepaid Tuition Trust Fund (unless the Trust Fund
21moneys are used for child support). The Comptroller and the
22Department of Revenue shall enter into an interagency agreement
23to establish responsibilities responsibility, duties, and
24procedures relating to deductions from lottery prizes awarded
25under Section 20.1 of the Illinois Lottery Law. The Comptroller
26may enter into an intergovernmental agreement with the

 

 

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1Department of Revenue and the Secretary of the Treasury of the
2United States, or his or her delegate, to establish
3responsibilities, duties, and procedures relating to
4reciprocal offset of delinquent State and federal obligations
5pursuant to subsection (i-1) of Section 10 of the Illinois
6State Collection Act of 1986. The Comptroller may enter into
7intergovernmental agreements with any unit of local
8government, school district, or public institution of higher
9education to establish responsibilities, duties, and
10procedures to provide for the offset, by the Comptroller, of
11obligations owed to those entities.
12(Source: P.A. 97-269, eff. 1-1-12.)
 
13    (15 ILCS 405/10.05d new)
14    Sec. 10.05d. Deductions for delinquent obligations owed to
15units of local government, school districts, and public
16institutions of higher education. Pursuant to Section 10.05 and
17this Section, the Comptroller may enter into intergovernmental
18agreements with a unit of local government, a school district,
19or a public institution of higher education in order to provide
20for (i) the use of the Comptroller's offset system to collect
21delinquent obligations owed to that entity and (ii) the payment
22to the Comptroller of a processing charge of up to $15 per
23transaction for such offsets. The Comptroller shall deduct,
24from a warrant or other payment described in Section 10.05, in
25accordance with the procedures provided therein, its

 

 

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1processing charge and the amount certified as necessary to
2satisfy, in whole or in part, the delinquent obligation owed to
3the unit of local government, school district, or public
4institution of higher education, as applicable. The
5Comptroller shall provide the unit of local government, school
6district, or public institution of higher education, as
7applicable, with the address to which the warrant or other
8payment was to be mailed and any other information pertaining
9to each person from whom a deduction is made pursuant to this
10Section. All deductions ordered under this Section and
11processing charges imposed under this Section shall be
12deposited into the Comptroller Debt Recovery Trust Fund, a
13special fund that the Comptroller shall use for the collection
14of deductions and processing charges, as provided by law, and
15the payment of deductions and administrative expenses, as
16provided by law.
17    Upon processing a deduction, the Comptroller shall give
18written notice to the person subject to the offset. The notice
19shall inform the person that he or she may make a written
20protest to the Comptroller within 60 days after the Comptroller
21has given notice. The protest shall include the reason for
22contesting the deduction and any other information that will
23enable the Comptroller to determine the amount due and payable.
24The intergovernmental agreement entered into under Section
2510.05 and this Section shall establish procedures through which
26the Comptroller shall determine the validity of the protest and

 

 

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1shall make a final disposition concerning the deduction. If the
2person subject to the offset has not made a written protest
3within 60 days after the Comptroller has given notice or if a
4final disposition is made concerning the deduction, the
5Comptroller shall pay the deduction to the unit of local
6government, school district, or public institution of higher
7education, as applicable, from the Comptroller Debt Recovery
8Trust Fund.
 
9    Section 10. The Illinois Income Tax Act is amended by
10changing Section 911.3 as follows:
 
11    (35 ILCS 5/911.3)
12    Sec. 911.3. Refunds withheld; order of honoring requests.
13The Department shall honor refund withholding requests in the
14following order:
15        (1) a refund withholding request to collect an unpaid
16    State tax;
17        (2) a refund withholding request to collect certified
18    past due child support amounts under Section 2505-650 of
19    the Department of Revenue Law of the Civil Administrative
20    Code of Illinois;
21        (3) a refund withholding request to collect any debt
22    owed to the State;
23        (4) a refund withholding request made by the Secretary
24    of the Treasury of the United States, or his or her

 

 

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1    delegate, to collect any tax liability arising from Title
2    26 of the United States Code;
3        (4.5) a refund withholding request made by the
4    Secretary of the Treasury of the United States, or his or
5    her delegate, to collect any nontax debt owed to the United
6    States as authorized under subsection (i-1) of Section 10
7    of the Illinois State Collection Act of 1986;
8        (4.6) a refund withholding request to collect any debt
9    owed to a unit of local government, school district, or
10    public institution of higher education collected under an
11    intergovernmental agreement entered into under Sections
12    10.05 and 10.05d of the State Comptroller Act;
13        (5) a refund withholding request pursuant to Section
14    911.2 of this Act; and
15        (6) a refund withholding request to collect certified
16    past due fees owed to the Clerk of the Circuit Court as
17    authorized under Section 2505-655 of the Department of
18    Revenue Law of the Civil Administrative Code of Illinois.
19(Source: P.A. 97-269, eff. 1-1-12.)
 
20    Section 15. "An Act concerning State government", approved
21August 8, 2011, Public Act 97-269, is amended by adding Section
2299 as follows:
 
23    (P.A. 97-269, Sec. 99 new)
24    Sec. 99. Effective date. This Act (Public Act 97-269) takes

 

 

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1effect on the effective date of this amendatory Act of the 97th
2General Assembly or January 1, 2012, whichever is earlier.
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.