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Public Act 097-0632


 

Public Act 0632 97TH GENERAL ASSEMBLY



 


 
Public Act 097-0632
 
HB0384 EnrolledLRB097 03271 RLJ 43308 b

    AN ACT concerning State government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The State Comptroller Act is amended by changing
Section 10.05 and by adding Section 10.05d as follows:
 
    (15 ILCS 405/10.05)  (from Ch. 15, par. 210.05)
    Sec. 10.05. Deductions from warrants; statement of reason
for deduction. Whenever any person shall be entitled to a
warrant or other payment from the treasury or other funds held
by the State Treasurer, on any account, against whom there
shall be any then due and payable account or claim in favor of
the State, or to the United States upon certification by the
Secretary of the Treasury of the United States, or his or her
delegate, pursuant to a reciprocal offset agreement under
subsection (i-1) of Section 10 of the Illinois State Collection
Act of 1986, or a unit of local government, a school district,
or a public institution of higher education, as defined in
Section 1 of the Board of Higher Education Act, upon
certification by that entity then due and payable, the
Comptroller, upon notification thereof, shall ascertain the
amount due and payable to the State, or to the United States,
the unit of local government, the school district, or the
public institution of higher education, as aforesaid, and draw
a warrant on the treasury or on other funds held by the State
Treasurer, stating the amount for which the party was entitled
to a warrant or other payment, the amount deducted therefrom,
and on what account, and directing the payment of the balance;
which warrant or payment as so drawn shall be entered on the
books of the Treasurer, and such balance only shall be paid.
The Comptroller may deduct any one or more of the following:
(i) the entire amount due and payable to the State or may
deduct a portion of the amount due and payable to the State in
accordance with the request of the notifying agency; (ii) , and
may deduct the entire amount due and payable to the United
States, or may deduct a portion of the amount due and payable
to the United States, in accordance with a reciprocal offset
agreement under subsection (i-1) of Section 10 of the Illinois
State Collection Act of 1986; or (iii) the entire amount due
and payable to the unit of local government, school district,
or public institution of higher education or a portion of the
amount due and payable to that entity in accordance with an
intergovernmental agreement authorized under this Section and
Section 10.05d. No request from a notifying agency, or from the
Secretary of the Treasury of the United States, a unit of local
government, a school district, or a public institution of
higher education for an amount to be deducted under this
Section from a wage or salary payment, or from a contractual
payment to an individual for personal services, shall exceed
25% of the net amount of such payment. "Net amount" means that
part of the earnings of an individual remaining after deduction
of any amounts required by law to be withheld. For purposes of
this provision, wage, salary or other payments for personal
services shall not include final compensation payments for the
value of accrued vacation, overtime or sick leave. Whenever the
Comptroller draws a warrant or makes a payment involving a
deduction ordered under this Section, the Comptroller shall
notify the payee and the State agency that submitted the
voucher of the reason for the deduction and he or she shall
retain a record of such statement in his or her records. As
used in this Section, an "account or claim in favor of the
State" includes all amounts owing to "State agencies" as
defined in Section 7 of this Act. However, the Comptroller
shall not be required to accept accounts or claims owing to
funds not held by the State Treasurer, where such accounts or
claims do not exceed $50, nor shall the Comptroller deduct from
funds held by the State Treasurer under the Senior Citizens and
Disabled Persons Property Tax Relief and Pharmaceutical
Assistance Act or for payments to institutions from the
Illinois Prepaid Tuition Trust Fund (unless the Trust Fund
moneys are used for child support). The Comptroller and the
Department of Revenue shall enter into an interagency agreement
to establish responsibilities responsibility, duties, and
procedures relating to deductions from lottery prizes awarded
under Section 20.1 of the Illinois Lottery Law. The Comptroller
may enter into an intergovernmental agreement with the
Department of Revenue and the Secretary of the Treasury of the
United States, or his or her delegate, to establish
responsibilities, duties, and procedures relating to
reciprocal offset of delinquent State and federal obligations
pursuant to subsection (i-1) of Section 10 of the Illinois
State Collection Act of 1986. The Comptroller may enter into
intergovernmental agreements with any unit of local
government, school district, or public institution of higher
education to establish responsibilities, duties, and
procedures to provide for the offset, by the Comptroller, of
obligations owed to those entities.
(Source: P.A. 97-269, eff. 1-1-12.)
 
    (15 ILCS 405/10.05d new)
    Sec. 10.05d. Deductions for delinquent obligations owed to
units of local government, school districts, and public
institutions of higher education. Pursuant to Section 10.05 and
this Section, the Comptroller may enter into intergovernmental
agreements with a unit of local government, a school district,
or a public institution of higher education in order to provide
for (i) the use of the Comptroller's offset system to collect
delinquent obligations owed to that entity and (ii) the payment
to the Comptroller of a processing charge of up to $15 per
transaction for such offsets. The Comptroller shall deduct,
from a warrant or other payment described in Section 10.05, in
accordance with the procedures provided therein, its
processing charge and the amount certified as necessary to
satisfy, in whole or in part, the delinquent obligation owed to
the unit of local government, school district, or public
institution of higher education, as applicable. The
Comptroller shall provide the unit of local government, school
district, or public institution of higher education, as
applicable, with the address to which the warrant or other
payment was to be mailed and any other information pertaining
to each person from whom a deduction is made pursuant to this
Section. All deductions ordered under this Section and
processing charges imposed under this Section shall be
deposited into the Comptroller Debt Recovery Trust Fund, a
special fund that the Comptroller shall use for the collection
of deductions and processing charges, as provided by law, and
the payment of deductions and administrative expenses, as
provided by law.
    Upon processing a deduction, the Comptroller shall give
written notice to the person subject to the offset. The notice
shall inform the person that he or she may make a written
protest to the Comptroller within 60 days after the Comptroller
has given notice. The protest shall include the reason for
contesting the deduction and any other information that will
enable the Comptroller to determine the amount due and payable.
The intergovernmental agreement entered into under Section
10.05 and this Section shall establish procedures through which
the Comptroller shall determine the validity of the protest and
shall make a final disposition concerning the deduction. If the
person subject to the offset has not made a written protest
within 60 days after the Comptroller has given notice or if a
final disposition is made concerning the deduction, the
Comptroller shall pay the deduction to the unit of local
government, school district, or public institution of higher
education, as applicable, from the Comptroller Debt Recovery
Trust Fund.
 
    Section 10. The Illinois Income Tax Act is amended by
changing Section 911.3 as follows:
 
    (35 ILCS 5/911.3)
    Sec. 911.3. Refunds withheld; order of honoring requests.
The Department shall honor refund withholding requests in the
following order:
        (1) a refund withholding request to collect an unpaid
    State tax;
        (2) a refund withholding request to collect certified
    past due child support amounts under Section 2505-650 of
    the Department of Revenue Law of the Civil Administrative
    Code of Illinois;
        (3) a refund withholding request to collect any debt
    owed to the State;
        (4) a refund withholding request made by the Secretary
    of the Treasury of the United States, or his or her
    delegate, to collect any tax liability arising from Title
    26 of the United States Code;
        (4.5) a refund withholding request made by the
    Secretary of the Treasury of the United States, or his or
    her delegate, to collect any nontax debt owed to the United
    States as authorized under subsection (i-1) of Section 10
    of the Illinois State Collection Act of 1986;
        (4.6) a refund withholding request to collect any debt
    owed to a unit of local government, school district, or
    public institution of higher education collected under an
    intergovernmental agreement entered into under Sections
    10.05 and 10.05d of the State Comptroller Act;
        (5) a refund withholding request pursuant to Section
    911.2 of this Act; and
        (6) a refund withholding request to collect certified
    past due fees owed to the Clerk of the Circuit Court as
    authorized under Section 2505-655 of the Department of
    Revenue Law of the Civil Administrative Code of Illinois.
(Source: P.A. 97-269, eff. 1-1-12.)
 
    Section 15. "An Act concerning State government", approved
August 8, 2011, Public Act 97-269, is amended by adding Section
99 as follows:
 
    (P.A. 97-269, Sec. 99 new)
    Sec. 99. Effective date. This Act (Public Act 97-269) takes
effect on the effective date of this amendatory Act of the 97th
General Assembly or January 1, 2012, whichever is earlier.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 12/16/2011