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| | SB1291 Engrossed | | LRB103 27559 LNS 53934 b |
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| 1 | | AN ACT concerning civil law.
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| 2 | | Be it enacted by the People of the State of Illinois,
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| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Illinois State Collection Act of 1986 is |
| 5 | | amended by adding Section 10.3 and 10.4 as follows:
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| 6 | | (30 ILCS 210/10.3 new) |
| 7 | | Sec. 10.3. Five-year limitation. Except in the case of |
| 8 | | fraud, if a State agency fails to provide a debtor with written |
| 9 | | notice and a demand for payment of any debt, accounts, or |
| 10 | | claims owed to the State agency with 5 years of when the State |
| 11 | | agency's right to collect the debt first accrued, then the |
| 12 | | State agency is barred from attempting to collect such debt, |
| 13 | | accounts, or claims owed to it by the debtor. This Section does |
| 14 | | not apply to taxes, fines, or fees.
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| 15 | | (30 ILCS 210/10.4 new) |
| 16 | | Sec. 10.4. Ten-year limitation. When a State agency is |
| 17 | | attempting to collect outstanding health benefits premiums |
| 18 | | from a covered employee who was reinstated to employment |
| 19 | | status after a grievance resolution, the State agency shall |
| 20 | | provide the employee with a written notice and demand for |
| 21 | | payment of the premiums within 10 years of when the State |
| 22 | | agency's right to collect the premiums first accrued. |
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| | SB1291 Engrossed | - 2 - | LRB103 27559 LNS 53934 b |
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| 1 | | Otherwise, the State agency is barred from attempting to |
| 2 | | collect such premiums.
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| 3 | | Section 10. The Code of Civil Procedure is amended by |
| 4 | | changing Section 13-205 as follows:
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| 5 | | (735 ILCS 5/13-205) (from Ch. 110, par. 13-205)
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| 6 | | Sec. 13-205. Five year limitation. |
| 7 | | (a) Except as provided in Section 2-725
of the "Uniform
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| 8 | | Commercial Code", approved July 31, 1961, as amended, and |
| 9 | | Section 11-13
of "The Illinois Public Aid Code", approved |
| 10 | | April 11, 1967, as amended,
actions on unwritten contracts, |
| 11 | | expressed or implied, or on awards of
arbitration, or to |
| 12 | | recover damages for an injury done to property, real
or |
| 13 | | personal, or to recover the possession of personal property or
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| 14 | | damages for the detention or conversion thereof, and all civil |
| 15 | | actions
not otherwise provided for, shall be commenced within |
| 16 | | 5 years next after
the cause of action accrued. |
| 17 | | (b) Except in the case of fraud or where facts material to |
| 18 | | the State agency's right to collect the debt were not known nor |
| 19 | | could reasonably have been known by the State agency's |
| 20 | | official charged with the responsibility to discover and |
| 21 | | collect the debt, an action by a State agency may not be |
| 22 | | conducted more than 5 years after the State agency's right to |
| 23 | | collect the debt first accrued. This subsection does not apply |
| 24 | | to taxes, fines, or fees.
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