093_HB0040

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 1        AN ACT in relation to State loans.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  1.  Short  title.   This Act may be cited as the
 5    State Loan Act.

 6        Section 5.  Definitions.  As used in this Act:
 7        "State loan" means any loan of $50,000 or  more  made  by
 8    the  State  of Illinois or any State agency to any person for
 9    any purpose.
10        "State agencies" has the meaning ascribed to that term in
11    Section 1-7 of the Illinois State Auditing Act.
12        "Person" means any individual, corporation,  partnership,
13    unincorporated   association,   limited   liability  company,
14    limited liability partnership, or other entity.
15        "Designated individuals" means:
16             (i)  In the case of a partnership, all  general  and
17        limited partners of the partnership.
18             (ii)  In the case of a corporation, all shareholders
19        with  10%  or  more  equity  or ownership interest in the
20        corporation.
21             (iii)  In the case of one or more  individuals,  all
22        of the individuals.
23             (iv)  In   the   case   of  any  other  entity,  all
24        individuals with any equity or ownership interest in  the
25        entity.

26        Section  10.  Disclosure.   Before  any State loan may be
27    made to any person or renewed (and before  repayment  of  any
28    part  of  a  State loan may be forgiven or renegotiated), the
29    names and addresses of  each  designated  individual  of  the
30    person must be disclosed and made public.
 
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 1        Section  15.  Guarantee.   Before  any  State loan may be
 2    made  to  any  person  or  renewed  or   renegotiated,   each
 3    designated individual of the person must personally guarantee
 4    repayment  of  the loan.  A guarantee remains in effect until
 5    the loan has been repaid in full.  A  guarantee  may  not  be
 6    rescinded   or   abrogated   under  any  circumstances.   Any
 7    agreement that purports to rescind or abrogate a guarantee is
 8    null and void.

 9        Section  20.  Certain  contracts  prohibited.   No  State
10    agency may enter into any contract with  any  person  if  the
11    person  or  any  designated  individual  of  the person is in
12    default on any State loan.

13        Section 25.  Disclosure of contributions.  No State  loan
14    may  be  made  or renewed, nor may repayment of any part of a
15    State  loan  be  forgiven  or   renegotiated,   unless   each
16    designated  individual  of  the  person  with which the State
17    loan, renewal, forgiveness, or renegotiation is  proposed  to
18    be  made has publicly disclosed all contributions made by the
19    designated individual in the past 5 years.  As used  in  this
20    Act,  "contribution"  includes any contribution as defined in
21    Section 9-1.4 of the Election Code and any contribution to  a
22    political   committee.   As  used  in  this  Act,  "political
23    committee" means the same as in Section 9-1.9 of the Election
24    Code.

25        Section 30.  Default; Attorney General investigation.  In
26    the case of any default on a State  loan,  the  State  agency
27    making  the  loan  shall  notify  the  Attorney General.  The
28    Attorney General shall investigate the circumstances  of  the
29    default.   Unless  the  Attorney  General determines that the
30    loan  is  uncollectible,  the  Attorney  General  shall  take
31    appropriate action to collect any amount owing to  the  State
 
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 1    and enforce the State's rights under the loan agreement.

 2        Section   35.  Uncollected   State  Claims  Act  and  the
 3    Illinois State Collection Act of 1986.  Any renegotiation  or
 4    forgiveness  of  a  State loan must be in compliance with the
 5    provisions of  the  Uncollected  State  Claims  Act  and  the
 6    Illinois State Collection Act of 1986 regarding reporting and
 7    recording of debt collections and the writing off of debts.

 8        Section 40.  Report.
 9        The Attorney General shall report to the General Assembly
10    by February 1 of each year the following:
11        (1)  the  total  number  and dollar amount of loans about
12    which the Attorney General was notified  in  accordance  with
13    this Act in the preceding calendar year;
14        (2)  the total amount actually collected;
15        (3)  the number of cases by agency; and
16        (4)  the   names   and   addresses   of   all  designated
17    individuals of any person that is a party  to  a  State  loan
18    about  which  the Attorney General was notified in accordance
19    with this Act in the preceding calendar year.

20        Section 800. The Uncollected State Claims Act is  amended
21    by changing Section 2 as follows:

22        (30 ILCS 205/2) (from Ch. 15, par. 102)
23        Sec.  2.  (a) When  any State agency is unable to collect
24    any claim or account receivable of $1,000  or  more  due  the
25    agency  after  having pursued the procedure prescribed by law
26    or  applicable  rules  and  regulations  for  the  collection
27    thereof or, if no procedure  is  so  prescribed,  then  after
28    having  undertaken  all reasonable and appropriate procedures
29    available to the agency to effectuate collection,  the  State
30    agency  shall  request  the  Attorney  General to certify the
 
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 1    claim or account receivable to be uncollectible.
 2        (b)  Each request to the Attorney General asking  that  a
 3    claim  or  account  receivable  of $1,000 or more be declared
 4    uncollectible shall be in a format prescribed by the Attorney
 5    General  and  shall  include  at  a  minimum  the   following
 6    information:   debtor's name, debtor's social security number
 7    or  comparable  identifying  number,  debtor's   last   known
 8    address, nature of the debt, efforts made to collect the debt
 9    and  the time period covered by those efforts, the age of the
10    debt, the age of the debtor and the specific reason the State
11    agency believes the debt to  be  uncollectible.   Nothing  in
12    this  provision  should be interpreted as a limitation on the
13    authority of  the  Attorney  General  to  require  additional
14    information  that  he  may  find  to be necessary to evaluate
15    requests sent him pursuant to this provision.
16        (c)  Claims or accounts receivable of  less  than  $1,000
17    may  be  certified  as  uncollectible  by the agency when the
18    agency determines that further collection efforts are not  in
19    the  best economic interest of the State.  Such determination
20    shall be made in accordance with rules of the Comptroller.
21        (d)  If  any  item  of  information  required   by   this
22    provision  or  any item of additional information required by
23    the Attorney General is not available, the State agency shall
24    specifically so state in its request to the Attorney  General
25    asking that the debt be declared uncollectible.
26        (e)  A  State  agency  participating in a federal student
27    loan program may remove student loans  from  its  records  by
28    assigning  or  referring  such  student  loans to the federal
29    government  for  collection  pursuant   to   the   procedures
30    prescribed by federal laws and regulations.
31        (f)  Claims and receivables due from another State agency
32    may  be  written off if the agency has pursued all reasonable
33    means of collection and if the amount (1) is payable from  an
34    appropriation  which  has  lapsed;  (2)  may  not properly be
 
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 1    charged against a current  appropriation;  and  (3)  was  not
 2    originally  payable  from  federal  funds,  a  trust  fund or
 3    locally held funds.  Each agency which writes off  claims  or
 4    receivables  pursuant  to  this  subparagraph  shall submit a
 5    listing of all such write-offs to the Comptroller  within  60
 6    days of taking such action.
 7        (g)  Debts certified as uncollectible may be reopened for
 8    collection  by  an  agency  upon the approval of the Attorney
 9    General.
10        (h)  Agencies shall submit a list of debts  certified  as
11    uncollectible  to  the  Comptroller  in  the  form and manner
12    specified by the Comptroller.   The  Comptroller  shall  take
13    reasonable  steps  to  accept  information on agency computer
14    tapes.
15        (i)  After  compliance  with  all  provisions   of   this
16    Section,   an  agency  may  delete  from  its  records  debts
17    certified as uncollectible as follows:
18             (1)  When the debt is less than $1,000,  immediately
19        upon certification by the agency;
20             (2)  For  debts of $1,000 or more that are less than
21        5 years old, when the agency determines pursuant to rules
22        and regulations promulgated by the Comptroller that  such
23        deletion is in the best economic interest of the State;
24             (3)  For  debts  of $1,000 or more when, the debt is
25        more than 5 years old.
26        (j)  The Attorney General shall  report  to  the  General
27    Assembly by February 1 of each year the following:
28             (1)  the  total  number  and  dollar amount of debts
29        referred to him for collection in the preceding  calendar
30        year;
31             (2)  the total amount actually collected;
32             (3)  the number of cases by agency.
33        (k)  Each  State agency shall report in its annual report
34    the total amount and the number of claims due and payable  to
 
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 1    the  State.   Each  agency  shall also describe in its annual
 2    report the method used in  collecting  debts,  whether  by  a
 3    private collection service or by the Attorney General.
 4             (1)  The  provisions  of  Section  2505-250  of  the
 5        Department  of  Revenue  Law (20 ILCS 2505/2505-250) take
 6        precedence over the provisions of this Section.
 7        (l)  Any renegotiation or forgiveness of a State loan  to
 8    which  the  State Loan Act applies must be in compliance with
 9    the provisions of this Act regarding reporting and  recording
10    of debt collections and the writing off of debts.
11    (Source: P.A. 91-239, eff. 1-1-00.)

12        Section  900.  The  Illinois State Collection Act of 1986
13    is amended by changing Section 4 as follows:

14        (30 ILCS 210/4) (from Ch. 15, par. 154)
15        Sec. 4.   (a)  The  Comptroller  shall  provide  by  rule
16    appropriate  procedures  for  State  agencies  to  follow  in
17    establishing and recording within the State accounting system
18    records  of amounts owed to the State of Illinois.  The rules
19    of the Comptroller shall include, but are not limited to:
20        (1)  the manner by which State agencies  shall  recognize
21    debts;
22        (2)  systems   to   age   accounts  receivable  of  State
23    agencies;
24        (3)  standards by which State  agencies'  claims  may  be
25    entered  and  removed  from  the  Comptroller's Offset System
26    authorized by Section 10.05 of the State Comptroller Act;
27        (4)  accounting procedures for estimating the  amount  of
28    uncollectible receivables of State agencies; and
29        (5)  accounting  procedures for writing off bad debts and
30    uncollectible claims.
31        (b)  State  agencies  shall  report  to  the  Comptroller
32    information  concerning   their   accounts   receivable   and
 
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 1    uncollectible  claims  in  accordance  with  the rules of the
 2    Comptroller, which may provide for summary reporting.
 3        (c)  The rules of  the  Comptroller  authorized  by  this
 4    Section  shall  may  specify  varying procedures and forms of
 5    reporting dependent upon the nature and amount of the account
 6    receivable or uncollectible claim, the age of the  debt,  the
 7    probability  of  collection  and such other factors that will
 8    increase the net benefit  to  the  State  of  the  collection
 9    effort.
10        (d)  The  Comptroller  shall report annually by March 14,
11    to the Governor and the General Assembly, the amount  of  all
12    delinquent  debt  owed to each State agency as of December 31
13    of the previous calendar year.
14        (e)  Any renegotiation or forgiveness of a State loan  to
15    which  the  State Loan Act applies must be in compliance with
16    the provisions of this Act regarding reporting and  recording
17    of debt collections and the writing off of debts.
18    (Source: P.A. 86-515.)

19        Section 999.  Effective date.  This Act takes effect upon
20    becoming law.