Rep. Frank J. Mautino

Filed: 10/24/2011

 

 


 

 


 
09700HB0384ham001LRB097 03271 PJG 58952 a

1
AMENDMENT TO HOUSE BILL 384

2    AMENDMENT NO. ______. Amend House Bill 384 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The State Comptroller Act is amended by
5changing Sections 10.05 and 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,

 

 

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1or a public institution of higher education, as defined in
2Section 1 of the Board of Higher Education Act, upon
3certification by that entity then due and payable, the
4Comptroller, upon notification thereof, shall ascertain the
5amount due and payable to the State, or to the United States,
6the unit of local government, the school district, or the
7public institution of higher education, as aforesaid, and draw
8a warrant on the treasury or on other funds held by the State
9Treasurer, stating the amount for which the party was entitled
10to a warrant or other payment, the amount deducted therefrom,
11and on what account, and directing the payment of the balance;
12which warrant or payment as so drawn shall be entered on the
13books of the Treasurer, and such balance only shall be paid.
14The Comptroller may deduct any one or more of the following:
15(i) the entire amount due and payable to the State or may
16deduct a portion of the amount due and payable to the State in
17accordance with the request of the notifying agency; (ii) , and
18may deduct the entire amount due and payable to the United
19States, or may deduct a portion of the amount due and payable
20to the United States, in accordance with a reciprocal offset
21agreement under subsection (i-1) of Section 10 of the Illinois
22State Collection Act of 1986; or (iii) the entire amount due
23and payable to the unit of local government, school district,
24or public institution of higher education or a portion of the
25amount due and payable to that entity in accordance with an
26intergovernmental agreement authorized under this Section and

 

 

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1Section 10.05d. No request from a notifying agency, or from the
2Secretary of the Treasury of the United States, a unit of local
3government, a school district, or a public institution of
4higher education for an amount to be deducted under this
5Section from a wage or salary payment, or from a contractual
6payment to an individual for personal services, shall exceed
725% of the net amount of such payment. "Net amount" means that
8part of the earnings of an individual remaining after deduction
9of any amounts required by law to be withheld. For purposes of
10this provision, wage, salary or other payments for personal
11services shall not include final compensation payments for the
12value of accrued vacation, overtime or sick leave. Whenever the
13Comptroller draws a warrant or makes a payment involving a
14deduction ordered under this Section, the Comptroller shall
15notify the payee and the State agency that submitted the
16voucher of the reason for the deduction and he or she shall
17retain a record of such statement in his or her records. As
18used in this Section, an "account or claim in favor of the
19State" includes all amounts owing to "State agencies" as
20defined in Section 7 of this Act. However, the Comptroller
21shall not be required to accept accounts or claims owing to
22funds not held by the State Treasurer, where such accounts or
23claims do not exceed $50, nor shall the Comptroller deduct from
24funds held by the State Treasurer under the Senior Citizens and
25Disabled Persons Property Tax Relief and Pharmaceutical
26Assistance Act or for payments to institutions from the

 

 

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1Illinois Prepaid Tuition Trust Fund (unless the Trust Fund
2moneys are used for child support). The Comptroller and the
3Department of Revenue shall enter into an interagency agreement
4to establish responsibilities responsibility, duties, and
5procedures relating to deductions from lottery prizes awarded
6under Section 20.1 of the Illinois Lottery Law. The Comptroller
7may enter into an intergovernmental agreement with the
8Department of Revenue and the Secretary of the Treasury of the
9United States, or his or her delegate, to establish
10responsibilities, duties, and procedures relating to
11reciprocal offset of delinquent State and federal obligations
12pursuant to subsection (i-1) of Section 10 of the Illinois
13State Collection Act of 1986. The Comptroller may enter into
14intergovernmental agreements with any unit of local
15government, school district, or public institution of higher
16education to establish responsibilities, duties, and
17procedures to provide for the offset, by the Comptroller, of
18obligations owed to those entities.
19(Source: P.A. 97-269, eff. 1-1-12.)
 
20    (15 ILCS 405/10.05d new)
21    Sec. 10.05d. Deductions for delinquent obligations owed to
22units of local government, school districts, and public
23institutions of higher education. Pursuant to Section 10.05 and
24this Section, the Comptroller may enter into intergovernmental
25agreements with a unit of local government, a school district,

 

 

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1or a public institution of higher education in order to provide
2for (i) the use of the Comptroller's offset system to collect
3delinquent obligations owed to that entity and (ii) the payment
4to the Comptroller of a processing charge of up to $15 per
5transaction for such offsets. The Comptroller shall deduct,
6from a warrant or other payment described in Section 10.05, in
7accordance with the procedures provided therein, its
8processing charge and the amount certified as necessary to
9satisfy, in whole or in part, the delinquent obligation owed to
10the unit of local government, school district, or public
11institution of higher education, as applicable. The
12Comptroller shall provide the unit of local government, school
13district, or public institution of higher education, as
14applicable, with the address to which the warrant or other
15payment was to be mailed and any other information pertaining
16to each person from whom a deduction is made pursuant to this
17Section. All deductions ordered under this Section and
18processing charges imposed under this Section shall be
19deposited into the Comptroller Debt Recovery Trust Fund, a
20special fund that the Comptroller shall use for the collection
21of deductions and processing charges, as provided by law, and
22the payment of deductions and administrative expenses, as
23provided by law.
24    Upon processing a deduction, the Comptroller shall give
25written notice to the person subject to the offset. The notice
26shall inform the person that he or she may make a written

 

 

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1protest to the Comptroller within 60 days after the Comptroller
2has given notice. The protest shall include the reason for
3contesting the deduction and any other information that will
4enable the Comptroller to determine the amount due and payable.
5The intergovernmental agreement entered into under Section
610.05 and this Section shall establish procedures through which
7the Comptroller shall determine the validity of the protest and
8shall make a final disposition concerning the deduction. If the
9person subject to the offset has not made a written protest
10within 60 days after the Comptroller has given notice or if a
11final disposition is made concerning the deduction, the
12Comptroller shall pay the deduction to the unit of local
13government, school district, or public institution of higher
14education, as applicable, from the Comptroller Debt Recovery
15Trust Fund.
 
16    Section 10. The Illinois Income Tax Act is amended by
17changing Section 911.3 as follows:
 
18    (35 ILCS 5/911.3)
19    Sec. 911.3. Refunds withheld; order of honoring requests.
20The Department shall honor refund withholding requests in the
21following order:
22        (1) a refund withholding request to collect an unpaid
23    State tax;
24        (2) a refund withholding request to collect certified

 

 

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1    past due child support amounts under Section 2505-650 of
2    the Department of Revenue Law of the Civil Administrative
3    Code of Illinois;
4        (3) a refund withholding request to collect any debt
5    owed to the State;
6        (4) a refund withholding request made by the Secretary
7    of the Treasury of the United States, or his or her
8    delegate, to collect any tax liability arising from Title
9    26 of the United States Code;
10        (4.5) a refund withholding request made by the
11    Secretary of the Treasury of the United States, or his or
12    her delegate, to collect any nontax debt owed to the United
13    States as authorized under subsection (i-1) of Section 10
14    of the Illinois State Collection Act of 1986;
15        (4.6) a refund withholding request to collect any debt
16    owed to a unit of local government, school district, or
17    public institution of higher education collected under an
18    intergovernmental agreement entered into under Sections
19    10.05 and 10.05d of the State Comptroller Act;
20        (5) a refund withholding request pursuant to Section
21    911.2 of this Act; and
22        (6) a refund withholding request to collect certified
23    past due fees owed to the Clerk of the Circuit Court as
24    authorized under Section 2505-655 of the Department of
25    Revenue Law of the Civil Administrative Code of Illinois.
26(Source: P.A. 97-269, eff. 1-1-12.)
 

 

 

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1    Section 15. "An Act concerning State government", approved
2August 8, 2011, Public Act 97-269, is amended by adding Section
399 as follows:
 
4    (P.A. 97-269, Sec. 99 new)
5    Sec. 99. Effective date. This Act (Public Act 97-269) takes
6effect on the effective date of this amendatory Act of the 97th
7General Assembly or January 1, 2012, whichever is earlier.
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.".