TITLE 74: PUBLIC FINANCE
CHAPTER XI: DEPARTMENT OF REVENUE
PART 1200
DEBT COLLECTION BUREAU
SECTION 1200.30 PURPOSE AND IMPLEMENTATION
Section 1200.30 Purpose and Implementation
a) Pursuant
to Public Act 93-0570, the Department of Revenue's Debt Collection Bureau
shall serve as the primary debt collecting entity for the State and in that
role shall collect debts on behalf of agencies of the State. All debts owed
the State of Illinois shall be referred to the Bureau, subject to such
limitations established in this Part or otherwise imposed by law. [30 ILCS
210/2]
b) This Part establishes rules necessary and
appropriate to implement Public Act 93-0570 and sets forth when and how
the Bureau assumes responsibility under the Illinois State Collection Act of
1986 [30 ILCS 210] for the collection of the delinquent debt of State agencies.
 | TITLE 74: PUBLIC FINANCE
CHAPTER XI: DEPARTMENT OF REVENUE
PART 1200
DEBT COLLECTION BUREAU
SECTION 1200.40 APPLICATION
Section 1200.40 Application
a) This
Part applies to all debt collection by the Bureau pursuant to the authority
granted it under the Act.
b) To
the extent that some other statute prescribes procedures for collection of
particular types of accounts or claims owed to State agencies in conflict with
the provisions of the Act, such other statute shall continue in full force and
effect, and the debt collection provisions of the Act and this Part shall
not apply. [30 ILCS 210/2]
c) This
Part does not apply to the Illinois Student Assistance Commission in the
administration of its student loan programs. [30 ILCS 210/2]
d) This
Part does not apply to the Department of Public Aid with regard to child support
debts, the collection of which is governed by the requirements of Title IV,
Part D of the federal Social Security Act, except as provided in Section
1200.60(c). [30 ILCS 210/5(h)]
e) This
Part does not apply to the Department of Employment Security with
regard to debts to any federal account, including but not limited to the
Unemployment Trust Fund, and penalties and interest assessed under the
Unemployment Insurance Act, except as provided in Section 1200.60(d). [30
ILCS 210/5(h-1)]
| TITLE 74: PUBLIC FINANCE
CHAPTER XI: DEPARTMENT OF REVENUE
PART 1200
DEBT COLLECTION BUREAU
SECTION 1200.50 DEFINITIONS
Section 1200.50 Definitions
As used throughout this Part, each term defined in this
Section shall have the meaning set forth in this Section, unless its use
clearly requires a different meaning.
"Accounts receivable", "receivables",
or "State agency accounts receivable" shall mean amounts due a State
agency that are legally enforceable, that have not been lawfully certified as
uncollectible, and for which there is no legal barrier to referral to the
Bureau.
"Act" shall mean the
Illinois State Collection Act of 1986 [30 ILCS 210].
"Bureau" shall mean the
Debt Collection Bureau of the Illinois Department of Revenue.
"Certified collection
specialist" or "collection specialist" shall mean an individual
who has provided to the Bureau adequate documentation of training, experience,
and expertise in the field of collection of public debt and has been certified
by the Bureau as a collection specialist. A certified collection specialist
may be an individual employed directly by the Bureau or one employed by a
private collection firm.
"Certified debt" shall
mean delinquent debt that has been certified by the referring agency and
accepted for collection by the Bureau, as provided in this Part.
"Delinquent debt" shall
mean a debt to the State or any of its agencies that is owed by any person or
entity, that is $10 or more, and that is more than 90 days past due. The
following debts shall not be considered delinquent for purposes of this
definition:
debts that are
the subject of pending administrative or judicial review;
debts that are covered by an
informal or formal payment agreement, so long as the debtor is current in
payments under the terms of the payment agreement.
"Referring agency" shall
mean the State agency that refers delinquent debt to the Bureau for collection.
"State agency" shall
have the meaning found in the Illinois State Auditing Act [30 ILCS 5/1-7].
| TITLE 74: PUBLIC FINANCE
CHAPTER XI: DEPARTMENT OF REVENUE
PART 1200
DEBT COLLECTION BUREAU
SECTION 1200.60 REFERRAL OF DELINQUENT DEBT
Section 1200.60 Referral of Delinquent Debt
a) Beginning July 1, 2004 for the Departments of
Public Aid and Employment Security and July 1, 2005 for universities and other
State agencies, State agencies shall refer to the Bureau all debt owed to the
State, provided that the debt satisfies the requirements for referral of
delinquent debt as established in this Part. [30 ILCS 210/3] This Part shall apply to all such debt
referrals.
b) The
debt collection provisions of the Act and this Part may be utilized by
the General Assembly, the Supreme Court and the several courts of this State,
and the constitutionally elected State Officers, at their discretion, provided
that the debt satisfies the requirements for referral of delinquent debt as
established in this Part. [30 ILCS 210/2]
c) While
this Part does not apply to the Department of Public Aid with regard
to child support debts, the collection of which is governed by the requirements
of Title IV, Part D of the federal Social Security Act, the Department of
Public Aid may refer child support debts to the Bureau, provided that the debt
satisfies the requirements for referral of delinquent debt as provided in this Section.
All such referred debt shall remain an obligation under the Department of
Public Aid's Child Support Enforcement Program subject to the requirements of
Title IV, Part D of the federal Social Security Act, including the continued
use of federally mandated enforcement remedies and techniques by the Department
of Public Aid. [30 ILCS 210/5(h), 10(g)]
d) While
this Part does not apply to the Department of Employment Security with
regard to debts to any federal account, including but not limited to the
Unemployment Trust Fund, and penalties and interest assessed under the
Unemployment Insurance Act, the Department of Employment Security may refer
those debts to the Bureau, provided that the debt satisfies the requirements
for referral of delinquent debt as provided in this Part. [30 ILCS
210/5(h-1), 10(g-1)]
e) Prior
to referring delinquent debt to the Bureau, and anytime thereafter upon the
request of the Bureau, the referring agency shall collect and provide to the
Bureau the following information:
1) about
the debt:
A) the
amount of the delinquent debt (including fees, penalties, and interest);
B) the
date the debt was incurred;
C) a brief
description of the type of the debt;
D) a
summary of all action taken to collect the debt to date; and
E) any
other information concerning the debt within its possession needed by the
Bureau to perform its responsibilities under the Act and this Part, as
requested by the Bureau.
2) about
the debtor:
A) for
individuals, the identity of the debtor, including name, address, and social
security number;
B) for
business debtors, the name and type of business organization, the business
address, the federal employers identification number, and the names, addresses,
and social security numbers of the owners and officers of the business; and
C) any
other information concerning the debtor within its possession needed by the
Bureau to perform its responsibilities under the Act and this Part, as
requested by the Bureau.
f) Upon
the request of the Bureau, the referring agency shall promptly deliver to the
Bureau a copy of all records relating to the debt, with a status report
describing all collection action taken by the referring agency.
g) Upon
acceptance by the Bureau of delinquent debt from a referring agency, the provisions of Section 7 of the Illinois State
Collection Act shall be rendered null and void as to that debt, and the
Debt Collection Board (Board) shall promptly deliver to the Bureau a copy of
all records in its possession relating to that debt, with a status report
describing all collection action taken by the Board and an accounting of all
payments received. [30 ILCS 210/8]
h) For each debt referred to the Bureau, the
referring agency shall retain all documents and records relating to or
supporting the existence of the debt. The debtor shall have no
right to a hearing before the Bureau to contest the validity of the debt. In the event a debtor would raise a reasonable doubt as to
the validity of the debt, the Bureau may in its discretion refer the debt back
to the referring agency for further review and recommendation. [30
ILCS 210/10(f)]
i) All
debt referred to the Bureau for collection shall remain the property of the
referring agency and an obligation to the account owed. [30 ILCS 210/5(i)]
| TITLE 74: PUBLIC FINANCE
CHAPTER XI: DEPARTMENT OF REVENUE
PART 1200
DEBT COLLECTION BUREAU
SECTION 1200.70 DEBT ACCEPTED FOR COLLECTION
Section 1200.70 Debt Accepted for Collection
The Bureau will accept for collection delinquent debt that
meets the following criteria, unless the debt is otherwise excluded from
collection by the Bureau under the Act or this Part:
a) The
debt has been certified to the Bureau by the referring agency as provided in
Section 1200.90;
b) The
referring agency has notified the debtor of the amount and basis for the debt,
the potential for referral of the debt to the Bureau, and the procedure and
time limitations for contesting to the referring agency the validity of the
debt;
c) The
debtor did not contest the debt in writing within 90 days from the date the
referring agency provided notice of the debt to the debtor;
d) The debt has been transmitted
to the Bureau in a format approved by it; and
e) The debt is not of the
type listed in Section 1200.80.
| TITLE 74: PUBLIC FINANCE
CHAPTER XI: DEPARTMENT OF REVENUE
PART 1200
DEBT COLLECTION BUREAU
SECTION 1200.80 DEBT NOT ACCEPTED FOR COLLECTION
Section 1200.80 Debt Not Accepted for Collection
The Bureau will not accept for collection the following
types of debt:
a) debt secured
by an interest in real property [30 ILCS 210/5(j)];
b) receivables
currently the subject of an ongoing wage levy, whether that levy is the result
of a judgment entered in circuit court or an administrative levy issued without
judgment;
c) receivables
currently the subject of litigation being pursued in the State of Illinois through the Office of the Attorney General, State's Attorneys' Offices or, where
authorized by the Attorney General, by private counsel retained on behalf of
the agency;
d) debt
that has been discharged in bankruptcy or that is currently in bankruptcy
proceedings;
e) receivables
not reported on the Illinois Office of the Comptroller Receivables Report;
f) debt
owed to any federal account, including, but not limited to, federally regulated
pension trust funds, unless otherwise provided under this Part;
g) deferred receivables, as
defined in the Comptroller's Receivables Report;
h) loans, contracts, and
agreements of any kind with other governmental entities;
i) debt
that was referred to a private collection firm by the referring agency prior to
July 1, 2005, and that has been with that firm for 90 days or less;
j) debt
that has been deemed uncollectible, absent factual assertions by the referring
agency that, due to circumstances not known at the time the delinquent debt was
deemed uncollectible, additional collection efforts are warranted [30 ILCS
210/10(e)];
k) debt for
which it would not be in the State's best economic interest for the Bureau to
assume collection responsibility, as determined by the Bureau.
| TITLE 74: PUBLIC FINANCE
CHAPTER XI: DEPARTMENT OF REVENUE
PART 1200
DEBT COLLECTION BUREAU
SECTION 1200.90 CERTIFICATION OF DEBT
Section 1200.90 Certification of Debt
a) The
Bureau shall not accept debt for collection unless that debt has been certified
by the referring agency as provided in this Section.
b) The
referring agency shall provide to the Bureau for each delinquent debt that it
refers for collection a certification that contains the following:
1) a
statement that the debt qualifies for referral to, and collection by, the
Bureau, as provided by the Act and this Part;
2) a
statement that there are no legal restrictions relating to collection of the
debt by the Bureau;
3) a
statement that the referring agency has notified the debtor of the amount and
basis for the debt, the procedure and time limitations for contesting the
validity of the debt to the referring agency, and the potential for referral of
the debt to the Bureau; and
4) a
statement that the debtor did not dispute the debt in writing to the referring
agency within 90 days after the date of notice of the debt by the referring
agency.
c) The certification shall be executed by a person who is authorized to issue, certify, and approve
vouchers for the agency under Sections 10 and 11 of the State Finance Act [30
ILCS 105/10 and 11]. Such person may delegate to a
responsible person or persons the authority to execute the certification
required by this Section.
| TITLE 74: PUBLIC FINANCE
CHAPTER XI: DEPARTMENT OF REVENUE
PART 1200
DEBT COLLECTION BUREAU
SECTION 1200.100 COLLECTION OF CERTIFIED DEBT
Section 1200.100 Collection of Certified Debt
a) Once
the certified debt is accepted for collection, the Bureau shall make every
reasonable effort to collect the debt using all collection tools available,
including, but not limited to, the Comptroller's Offset System and the
employment of private collection agencies, as well as its own collections
personnel. [30 ILCS 210/10(a)] As part of its collection efforts, the
Bureau may direct the referring agency to place the certified debt with the
Comptroller's Offset System or to enter into a repayment plan with the debtor.
b) The Bureau shall have the sole authority to
let contracts with private collection agencies for the collection of
debt referred to and accepted by the Bureau
under this Part. [30 ILCS 210/10(b)]
1) Any contract with a private collection firm for
the collection of debt referred to and accepted by the Bureau under this Part
shall be let pursuant to the provisions of the Illinois Procurement Code [30
ILCS 500] and the Standard Procurement Rules (44 Ill. Adm. Code 1). Selection
of private collection firms by the Bureau shall be made through the Procurement
Code's request for proposal process.
2) Any such contract shall specify that the private
collection agency's fee shall be on a contingency
basis and that the private collection agency
shall not be entitled to collect a contingency fee for any debt collected
through the efforts of any State or federal offset system. [30 ILCS 210/10(b)]
3) Any
such contract let after the effective date of this rulemaking should provide
that debt referred to the firm for which there have been no payments or other
activity must be returned to the agency after 180 days.
4) The
referring agency shall be responsible for working directly with the private
collection firm in the placement of its certified debt and for providing to the
private collection firm information in its possession concerning the certified
debt and the debtor, as provided in Section 1200.60(e) of this Part, or as directed
by the Bureau.
5) The
Bureau shall be responsible for managing and monitoring the collection
performance of the private collection firms in
regard to debt collected on its behalf.
c) The
Bureau may employ individuals who are certified as collection specialists to
perform the requirements of this Part, subject to funding by the General
Assembly.
d) Private
collection firms and individuals employed by the Bureau must demonstrate that
they are qualified by training and experience to undertake these collection
efforts. In the case of an employment agency, the individuals who would
perform the collection services must be so qualified. Upon determination by
the Bureau that the individuals are so qualified, the Bureau shall certify the
individuals as collection specialists.
e) Upon agreement of the Attorney General, the
Bureau may contract for legal assistance in collecting past due accounts. Any
contract entered into under this Section before August
20, 2003, shall remain valid but may not be renewed. [30 ILCS
210/7]
f) The Attorney General and the State
Comptroller may assist in the debt collection efforts of the Bureau, as
requested by the Department of Revenue. [30 ILCS 210/10(i)]
g) Collection
methods employed by the Bureau may vary with the size and nature of the debt.
h) If
reasonable collection efforts prove unavailing, the Bureau may declare the
delinquent debt uncollectible and return it to the referring agency as provided
in Section 1200.110.
| TITLE 74: PUBLIC FINANCE
CHAPTER XI: DEPARTMENT OF REVENUE
PART 1200
DEBT COLLECTION BUREAU
SECTION 1200.110 UNCOLLECTIBLE DEBT
Section 1200.110 Uncollectible Debt
a) The
Bureau shall deem delinquent debt, which it has accepted for collection,
uncollectible when it has exhausted all reasonable collection efforts.
b) Prior
to deeming any delinquent debt uncollectible, the Bureau shall document efforts
to accomplish the following collection objectives:
1) confirm
the current location of the debtor;
2) locate
evidence of the debtor's assets; and
3) use
all reasonable and available collections tools to collect the delinquent debt.
c) Once a debt is deemed by the Bureau to be
uncollectible, the Bureau shall return the debt to the referring agency, which
shall then write the debt off as uncollectible or return the debt to the Bureau
for additional collection efforts. [30 ILCS 210/10(e)]
d) The Bureau shall refuse to accept debt that
has been deemed uncollectible by the Debt Collection Board, the Office of the
Comptroller, or the Bureau, absent factual assertions from the referring agency
that, due to circumstances not known at the time the debt was deemed
uncollectible, the debt is worthy of additional collection efforts. [30
ILCS 210/10(d)]
| TITLE 74: PUBLIC FINANCE
CHAPTER XI: DEPARTMENT OF REVENUE
PART 1200
DEBT COLLECTION BUREAU
SECTION 1200.120 DEPOSIT OF AMOUNTS COLLECTED
Section 1200.120 Deposit of Amounts Collected
a) Any
amounts collected under this Part, including amounts collected by outside
collection firms under contract with the Bureau, and including any amount that
results in overpayment of the delinquent debt, shall be deposited in, or
transferred to the appropriate funds, as specified by statute.
1) Allocation
of the amounts collected and deposited in the appropriate funds shall be the
responsibility of the referring agency.
2) The
referring agency shall bear the responsibility for adjusting overpayments.
b) After payment of fees pursuant to the Bureau's
contracts with private collection agencies, 20% of all amounts collected by the
Bureau, excluding amounts collected on behalf of the Departments of Public Aid
and Revenue, shall be deposited into the Debt Collection Fund. All remaining
amounts collected shall be deposited into the General Revenue Fund unless the
amounts are owed to any State fund or funds other than the General Revenue
Fund. [30 ILCS 210/10(h)]
c) Collections arising from referrals from the
Department of Public Aid
under Section 1200.60(c) shall
be deposited into such fund or funds as the Department of Public Aid shall
direct, in accordance with the requirements of Title IV, Part D of the federal
Social Security Act, applicable provisions of State law, and the rules of the
Department of Public Aid. [30 ILCS 210/10(h)]
d) Collections
arising from referrals from the Department of Employment Security under
Section 1200.60(d) shall be deposited into the fund or funds that the
Department of Employment Security shall direct, in accordance with the
requirements of Section 3304(a)(3) of the federal Unemployment Tax Act, Section
303(a)(4) of the federal Social Security Act, and the Unemployment Insurance
Act. [30 ILCS 210/10(h)]
| TITLE 74: PUBLIC FINANCE
CHAPTER XI: DEPARTMENT OF REVENUE
PART 1200
DEBT COLLECTION BUREAU
SECTION 1200.130 APPROPRIATIONS FROM DEBT COLLECTION FUND
Section 1200.130 Appropriations from Debt Collection
Fund
Moneys in the Debt Collection
Fund shall be appropriated only for the administrative costs of the Bureau. On
the last day of each fiscal year, unappropriated moneys and moneys otherwise
deemed unneeded for the next fiscal year remaining in the Debt Collection Fund
may be transferred into the General Revenue Fund at the Governor's reasonable
discretion. [30 ILCS 210/10(h)]
| TITLE 74: PUBLIC FINANCE
CHAPTER XI: DEPARTMENT OF REVENUE
PART 1200
DEBT COLLECTION BUREAU
SECTION 1200.140 OBLIGATIONS SUBJECT TO APPROPRIATION
Section 1200.140 Obligations Subject to Appropriation
The Bureau's obligations under
this Part shall be subject to appropriation by the General Assembly. [30 ILCS 210/10(l)]
| TITLE 74: PUBLIC FINANCE
CHAPTER XI: DEPARTMENT OF REVENUE
PART 1200
DEBT COLLECTION BUREAU
SECTION 1200.150 RECORDKEEPING AND REPORTING
Section 1200.150 Recordkeeping and Reporting
a) The
Bureau shall notify the referring agency within 60 days after the collection of
a delinquent debt, or any portion thereof, collected by the Bureau's own
collection specialists.
b) The
Bureau shall maintain documentation of the efforts undertaken to collect
certified debt and the results of those efforts for a period of three years
after its collection efforts on that debt ceased.
c) The Director of the Department of Revenue
shall report annually to the General Assembly and State Comptroller upon the
debt collection efforts of the Bureau. Each report shall include an analysis
of the overdue debts owed to the State. [30 ILCS 210/10(j)]
d) The
reporting requirements of this Part are in addition to any reporting required
by the Comptroller, and the debt reporting requirements established by the
Comptroller shall be followed by all State agencies. [30 ILCS 210/2]
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