093_HB0040ham001

 










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 1                     AMENDMENT TO HOUSE BILL 40

 2        AMENDMENT NO.     .  Amend House  Bill  40  by  replacing
 3    everything after the enacting clause with the following:

 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  except  for  participation  loans  or  financial
10    transactions    through    statutorily-authorized   financial
11    intermediaries  in  support  of  small  business  loans   and
12    investments.
13        "State agencies" has the meaning ascribed to that term in
14    Section 1-7 of the Illinois State Auditing Act.
15        "Person"  means any individual, corporation, partnership,
16    unincorporated  association,   limited   liability   company,
17    limited liability partnership, or other entity.
18        "Designated individuals" means:
19             (i)  In  the  case of a partnership, all general and
20        limited partners of the partnership.
21             (ii)  In the case of a corporation, all shareholders
22        with 10% or more equity  or  ownership  interest  in  the
 
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 1        corporation.
 2             (iii)  In  the  case of one or more individuals, all
 3        of the individuals.
 4             (iv)  In  the  case  of  any   other   entity,   all
 5        individuals  with any equity or ownership interest in the
 6        entity.

 7        Section 10.  Disclosure.  Each contract providing  for  a
 8    State loan shall contain a disclosure setting forth the names
 9    and  addresses  of  each  designated individual of the person
10    receiving the  loan.   The  contract  must  state  that  this
11    disclosure  is  a  public  record  and  is not subject to any
12    exemptions or exceptions under  the  Freedom  of  Information
13    Act.   A  State  agency  making, renegotiating, or renewing a
14    State loan shall maintain a publicly-available record of  the
15    names  and  addresses  of  each  person  and  each designated
16    individual  of  the  person  receiving,   renegotiating,   or
17    renewing a State loan.

18        Section  15.  Guarantee.   Before  any  State loan may be
19    made  to  any  person  or  renewed  or   renegotiated,   each
20    designated individual of the person must personally guarantee
21    repayment  of  the loan.  A guarantee remains in effect until
22    the loan has been repaid in full.  A  guarantee  may  not  be
23    rescinded   or   abrogated   under  any  circumstances.   Any
24    agreement that purports to rescind or abrogate a guarantee is
25    null and void.

26        Section  20.  Certain  contracts  prohibited.   No  State
27    agency may enter into any contract with  any  person  if  the
28    person  or  any  designated  individual  of  the person is in
29    default on any State loan. The  person  and  each  designated
30    individual  of the person receiving a State loan must certify
31    to the State agency that he or she is not delinquent  in  the
 
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 1    payment  of any debt to the State.  The contract must provide
 2    that the contract may be declared void if  the  certification
 3    is  false  or the contractor later becomes delinquent and has
 4    not entered into a deferred payment plan to pay off the debt.

 5        Section  25.  Disclosure  of  contributions.   No   State
 6    agency  shall  make, renew or renegotiate a State Loan unless
 7    the person and  each  designated  individual  of  the  person
 8    discloses  all  contributions,  in excess of $20, made by the
 9    person  and  each  designated  individual   of   the   person
10    receiving,  renewing,  or  renegotiating  a State loan.  This
11    disclosure shall be made for the 2-year period preceding  the
12    submission    of   an   application   for   a   State   Loan.
13    "Contributions" has the same meaning  set  forth  in  Section
14    9-1.4  of the Election Code, and the disclosure shall include
15    contributions made to a political  committee  as  defined  in
16    Section  9-1.9  of the Election Code. The contract must state
17    that this disclosure is a public record and is not subject to
18    any exemptions or exceptions under the Freedom of Information
19    Act.  A State agency making,  renegotiating,  or  renewing  a
20    State  loan  shall  maintain  a  publicly-available record of
21    these contributions.

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

30        Section   35.  Uncollected   State  Claims  Act  and  the
31    Illinois State Collection Act of 1986.  Any renegotiation  of
 
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 1    a   State  Loan  resulting  in  acceptance  of  an  offer  in
 2    compromise for an amount less than the total amount  due  and
 3    owing  on the loan shall require the approval of the Attorney
 4    General and must be in compliance with the provisions of  the
 5    Uncollected   State   Claims   Act  and  the  Illinois  State
 6    Collection Act of 1986 regarding the reporting and  recording
 7    of debt collections and the writing off of debts.

 8        Section 40.  Report. The Attorney General shall report to
 9    the   General  Assembly  by  February  1  of  each  year  the
10    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
31    claim or account receivable to be uncollectible.
 
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 1        (b)  Each  request  to the Attorney General asking that a
 2    claim or account receivable of $1,000  or  more  be  declared
 3    uncollectible shall be in a format prescribed by the Attorney
 4    General   and  shall  include  at  a  minimum  the  following
 5    information:  debtor's name, debtor's social security  number
 6    or   comparable   identifying  number,  debtor's  last  known
 7    address, nature of the debt, efforts made to collect the debt
 8    and the time period covered by those efforts, the age of  the
 9    debt, the age of the debtor and the specific reason the State
10    agency  believes  the  debt  to be uncollectible.  Nothing in
11    this provision should be interpreted as a limitation  on  the
12    authority  of  the  Attorney  General  to  require additional
13    information that he may find  to  be  necessary  to  evaluate
14    requests sent him pursuant to this provision.
15        (c)  Claims  or  accounts  receivable of less than $1,000
16    may be certified as uncollectible  by  the  agency  when  the
17    agency  determines that further collection efforts are not in
18    the best economic interest of the State.  Such  determination
19    shall be made in accordance with rules of the Comptroller.
20        (d)  If   any   item  of  information  required  by  this
21    provision or any item of additional information  required  by
22    the Attorney General is not available, the State agency shall
23    specifically  so state in its request to the Attorney General
24    asking that the debt be declared uncollectible.
25        (e)  A State agency participating in  a  federal  student
26    loan  program  may  remove  student loans from its records by
27    assigning or referring such  student  loans  to  the  federal
28    government   for   collection   pursuant  to  the  procedures
29    prescribed by federal laws and regulations.
30        (f)  Claims and receivables due from another State agency
31    may be written off if the agency has pursued  all  reasonable
32    means  of collection and if the amount (1) is payable from an
33    appropriation which has  lapsed;  (2)  may  not  properly  be
34    charged  against  a  current  appropriation;  and (3) was not
 
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 1    originally payable  from  federal  funds,  a  trust  fund  or
 2    locally  held  funds.  Each agency which writes off claims or
 3    receivables pursuant to  this  subparagraph  shall  submit  a
 4    listing  of  all such write-offs to the Comptroller within 60
 5    days of taking such action.
 6        (g)  Debts certified as uncollectible may be reopened for
 7    collection by an agency upon the  approval  of  the  Attorney
 8    General.
 9        (h)  Agencies  shall  submit a list of debts certified as
10    uncollectible to the  Comptroller  in  the  form  and  manner
11    specified  by  the  Comptroller.   The Comptroller shall take
12    reasonable steps to accept  information  on  agency  computer
13    tapes.
14        (i)  After   compliance   with  all  provisions  of  this
15    Section,  an  agency  may  delete  from  its  records   debts
16    certified as uncollectible as follows:
17             (1)  When  the debt is less than $1,000, immediately
18        upon certification by the agency;
19             (2)  For debts of $1,000 or more that are less  than
20        5 years old, when the agency determines pursuant to rules
21        and  regulations promulgated by the Comptroller that such
22        deletion is in the best economic interest of the State;
23             (3)  For debts of $1,000 or more when, the  debt  is
24        more than 5 years old.
25        (j)  The  Attorney  General  shall  report to the General
26    Assembly by February 1 of each year the following:
27             (1)  the total number and  dollar  amount  of  debts
28        referred  to him for collection in the preceding calendar
29        year;
30             (2)  the total amount actually collected;
31             (3)  the number of cases by agency.
32        (k)  Each State agency shall report in its annual  report
33    the  total amount and the number of claims due and payable to
34    the State.  Each agency shall also  describe  in  its  annual
 
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 1    report  the  method  used  in  collecting debts, whether by a
 2    private collection service or by the Attorney General.
 3        (l)  The provisions of Section 2505-250 of the Department
 4    of Revenue Law (20 ILCS 2505/2505-250) take  precedence  over
 5    the provisions of this Section.
 6        (m)  Any  renegotiation  of  a  State  Loan, resulting in
 7    acceptance of an offer in comprise for an  amount  less  than
 8    the  total amount due and owing on the loan shall require the
 9    approval of the Attorney General and shall  comply  with  the
10    reporting  and  uncollectible  certification  requirements of
11    this Act.
12    (Source: P.A. 91-239, eff. 1-1-00.)

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

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

22        Section 999.  Effective date.  This Act takes effect upon
23    becoming law.".