Full Text of HB0466 97th General Assembly
HB0466ham001 97TH GENERAL ASSEMBLY | Rep. Naomi D. Jakobsson Filed: 4/13/2011
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| 1 | | AMENDMENT TO HOUSE BILL 466
| 2 | | AMENDMENT NO. ______. Amend House Bill 466 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Uncollected State Claims Act is amended by | 5 | | changing Sections 2 and 2.1 as follows:
| 6 | | (30 ILCS 205/2) (from Ch. 15, par. 102)
| 7 | | Sec. 2.
(a) When any State agency is unable to collect any | 8 | | claim or
account receivable of $1,000 or more due the agency | 9 | | after having pursued
the procedure prescribed by law or | 10 | | applicable rules and regulations for the
collection thereof or, | 11 | | if no procedure is so prescribed, then after having
undertaken | 12 | | all reasonable and appropriate procedures available to the | 13 | | agency
to effectuate collection, the State agency shall request | 14 | | the Attorney General
to certify the claim or account receivable | 15 | | to be uncollectible.
| 16 | | (b) Each request to the Attorney General asking that a |
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| 1 | | claim or account
receivable of $1,000 or more be declared | 2 | | uncollectible shall be in a format
prescribed by the Attorney | 3 | | General and shall include at a minimum the
following | 4 | | information: debtor's name, debtor's social security number or
| 5 | | comparable identifying number, debtor's last known address, | 6 | | nature of the
debt, efforts made to collect the debt and the | 7 | | time period covered by those
efforts, the age of the debt, the | 8 | | age of the debtor and the specific reason
the State agency | 9 | | believes the debt to be uncollectible. Nothing in this
| 10 | | provision should be interpreted as a limitation on the | 11 | | authority of the
Attorney General to require additional | 12 | | information that he may find to be
necessary to evaluate | 13 | | requests sent him pursuant to this provision.
| 14 | | (c) Claims or accounts receivable of less than $1,000 may | 15 | | be
certified as uncollectible by the agency when the agency | 16 | | determines that
further collection efforts are not in the best | 17 | | economic interest of the
State. Such determination shall be | 18 | | made in accordance with rules of the
Comptroller.
| 19 | | (d) If any item of information required by this provision | 20 | | or any item
of additional information required by the Attorney | 21 | | General is not
available, the State agency shall specifically | 22 | | so state in its request to
the Attorney General asking that the | 23 | | debt be declared uncollectible.
| 24 | | (e) A State agency participating in a federal student loan | 25 | | program may
remove student loans from its records by assigning | 26 | | or referring such student
loans to the federal government for |
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| 1 | | collection pursuant to the procedures
prescribed by federal | 2 | | laws and regulations.
| 3 | | (f) Claims and receivables due from another State agency | 4 | | may be written off
if the agency has pursued all reasonable | 5 | | means of collection and if the amount
(1) is payable from an | 6 | | appropriation which has lapsed; (2) may not properly be
charged | 7 | | against a current appropriation; and (3) was not originally | 8 | | payable
from federal funds, a trust fund or locally held funds. | 9 | | Each agency which
writes off claims or receivables pursuant to | 10 | | this subparagraph shall submit a
listing of all such write-offs | 11 | | to the Comptroller within 60 days of taking such
action.
| 12 | | (g) Debts certified as uncollectible may be reopened for | 13 | | collection by
an agency upon the approval of the Attorney | 14 | | General.
| 15 | | (h) Agencies shall submit a list of debts certified as | 16 | | uncollectible to
the Comptroller in the form and manner | 17 | | specified by the Comptroller. The
Comptroller shall take | 18 | | reasonable steps to accept information on
agency computer | 19 | | tapes.
| 20 | | (i) After compliance with all provisions of this Section, | 21 | | an agency may
delete from its records debts certified as | 22 | | uncollectible as follows:
| 23 | | (1) When the debt is less than $1,000, immediately upon | 24 | | certification by
the agency;
| 25 | | (2) For debts of $1,000 or more that are less than 5 | 26 | | years old, when the
agency determines pursuant to rules and |
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| 1 | | regulations promulgated by the
Comptroller that such | 2 | | deletion is in the best economic interest of the State;
| 3 | | (3) For debts of $1,000 or more , when , the debt is more | 4 | | than 5 years old or, in the case of a public university, | 5 | | more than 8 years old .
| 6 | | (j) The Attorney General shall report to the General | 7 | | Assembly by
February 1 of each year the following:
| 8 | | (1) the total number and dollar amount of debts | 9 | | referred to him for
collection in the preceding calendar | 10 | | year;
| 11 | | (2) the total amount actually collected;
| 12 | | (3) the number of cases by agency.
| 13 | | (k) Each State agency shall report in its annual report the | 14 | | total amount
and the number of claims due and payable to the | 15 | | State. Each agency shall
also describe in its annual report the | 16 | | method used in collecting debts,
whether by a private | 17 | | collection service or by the Attorney General.
| 18 | | (l) The provisions of Section 2505-250 of the Department of | 19 | | Revenue Law
(20 ILCS 2505/2505-250) take precedence over the | 20 | | provisions of this Section.
| 21 | | (Source: P.A. 91-239, eff. 1-1-00 .)
| 22 | | (30 ILCS 205/2.1) | 23 | | Sec. 2.1. Sale of debts certified as uncollectible. After | 24 | | accounts have been certified by the Attorney General, or the | 25 | | State agency for accounts of less than $1,000, as uncollectible |
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| 1 | | pursuant to this Act, the Department of Revenue may sell the | 2 | | debts to one or more outside private vendors. Sales shall be | 3 | | conducted under rules adopted by the Department of Revenue | 4 | | using a request for proposals procedure similar to that | 5 | | procedure under the Illinois Procurement Code. The outside | 6 | | private vendors shall remit to the Department of Revenue the | 7 | | purchase price for debts sold under this Section. The | 8 | | Department of Revenue shall deposit the money received under | 9 | | this Section into the General Revenue Fund. The State | 10 | | Comptroller shall provide the Department of Revenue with any | 11 | | information that the Department requests for the purpose of | 12 | | administering this Section. This Section does not apply to any | 13 | | tax debt owing to the Department of Revenue. This Section does | 14 | | not apply to (i) debts, in the case of a public university, | 15 | | when the debt is less than 8 years old; (ii) child support | 16 | | debts enforced by the Department of Healthcare and Family | 17 | | Services pursuant to Title IV-D of the federal Social Security | 18 | | Act and Article X of the Illinois Public Aid Code; and (iii) | 19 | | debts that are enforced by the Department of Employment | 20 | | Security and owed to any federal account, including but not | 21 | | limited to the Unemployment Trust Fund, and penalties and | 22 | | interest assessed under the Unemployment Insurance Act.
| 23 | | (Source: P.A. 96-1435, eff. 8-16-10.) | 24 | | Section 10. The Illinois State Collection Act of 1986 is | 25 | | amended by renumbering and changing Section 9 added by Public |
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| 1 | | Act 96-1383 and Section 9 added by Public Act 96-1435 as | 2 | | follows: | 3 | | (30 ILCS 210/10.1) | 4 | | Sec. 10.1 9 . Collection agency fees. Except where | 5 | | prohibited by federal law or regulation, in the case of any | 6 | | liability referred to a collection agency on or after July 1, | 7 | | 2010, any fee charged to the State by the collection agency (i) | 8 | | may not exceed 25% for a first placement of the underlying | 9 | | liability referred to the collection agency unless the | 10 | | liability is for a tax debt, (ii) is considered an additional | 11 | | liability owed to the State, (iii) is immediately subject to | 12 | | all collection procedures applicable to the liability referred | 13 | | to the collection agency, and (iv) must be separately stated in | 14 | | any statement or notice of the liability issued by the | 15 | | collection agency to the debtor. The fee limitations of this
| 16 | | Section do not apply to a second, third, or subsequent
| 17 | | placement or to litigation activities.
| 18 | | (Source: P.A. 96-1383, eff. 1-1-11; revised 9-7-10.)
| 19 | | (30 ILCS 210/10.2)
| 20 | | Sec. 10.2 9 . Deferral and compromise of past due debt. | 21 | | (a) In this Section, "past due debt" means any debt owed to | 22 | | the State that has been outstanding for more than 12 months. | 23 | | "Past due debt" does not include any debt if any of the actions | 24 | | required under this Section would violate federal law or |
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| 1 | | regulation. | 2 | | (b) State agencies may enter into a deferred payment plan | 3 | | for the purpose of satisfying a past due debt. Except for a | 4 | | deferred payment plan entered into by any Illinois public | 5 | | university, as defined in Section 10 of the Illinois Prepaid | 6 | | Tuition Act, or by the Illinois Department of Transportation or | 7 | | for debts owed to the Illinois Department of Transportation for | 8 | | deposit into the Road Fund, the The deferred payment plan must | 9 | | meet the following requirements: | 10 | | (1) The term of the deferred payment plan may not | 11 | | exceed 2 years. | 12 | | (2) The first payment of the deferred payment plan must | 13 | | be at least 10% of the total amount due. | 14 | | (3) All subsequent monthly payments for the deferred | 15 | | payment plan must be assessed as equal monthly principal | 16 | | payments, together with interest. | 17 | | (4) The deferred payment plan must include interest at | 18 | | a rate that is the same as the interest required under the | 19 | | State Prompt Payment Act. | 20 | | (5) The deferred payment plan must be approved by the | 21 | | Secretary or Director of the State agency. | 22 | | (c) State agencies may compromise past due debts. Any | 23 | | action taken by a State agency to compromise a past due debt , | 24 | | other than an action taken by an Illinois public university, as | 25 | | defined in Section 10 of the Illinois Prepaid Tuition Act, to | 26 | | compromise past due debt, must meet the following requirements: |
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| 1 | | (1) The amount of the compromised debt shall be no less | 2 | | than 80% of the total of the past due debt. | 3 | | (2) Once a past due debt has been compromised, the | 4 | | debtor must remit to the State agency the total amount of | 5 | | the compromised debt. However, the State agency may collect | 6 | | the compromised debt through a payment plan not to exceed 6 | 7 | | months. If the State agency accepts the compromised debt | 8 | | through a payment plan, then the compromised debt shall be | 9 | | subject to the same rate of interest as required under the | 10 | | State Prompt Payment Act. | 11 | | (3) Before a State agency accepts a compromised debt, | 12 | | the amount of the compromised debt must be approved by the | 13 | | Secretary or Director of the agency Department of Revenue . | 14 | | (d) State agencies may sell a past due debt to one or more | 15 | | outside private vendors. Sales shall be conducted under rules | 16 | | adopted by the Department of Revenue using a request for | 17 | | proposals procedure similar to that procedure under the | 18 | | Illinois Procurement Code. The outside private vendors shall | 19 | | remit to the State agency the purchase price for debts sold | 20 | | under this subsection. | 21 | | (e) The State agency shall deposit all amounts received | 22 | | under this Section into the General Revenue Fund. For Illinois | 23 | | public universities, as defined in Section 10 of the Illinois | 24 | | Prepaid Tuition Act, the requirement of this subsection (e) | 25 | | applies to amounts received from the sale of past due debt and | 26 | | does not apply to amounts received under a deferred payment |
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| 1 | | plan or a compromised debt payment plan. | 2 | | (f) This Section does not apply to any tax debt owing to | 3 | | the Department of Revenue.
| 4 | | (g) This Section does not apply to child support debts | 5 | | enforced by the Department of Healthcare and Family Services | 6 | | pursuant to Title IV-D of the federal Social Security Act and | 7 | | Article X of the Illinois Public Aid Code. | 8 | | (h) This Section does not apply to debts that are enforced | 9 | | by the Department of Employment Security and owed to any | 10 | | federal account, including but not limited to the Unemployment | 11 | | Trust Fund, and penalties and interest assessed under the | 12 | | Unemployment Insurance Act. | 13 | | (Source: P.A. 96-1435, eff. 8-16-10; revised 9-7-10.)
| 14 | | Section 99. Effective date. This Act takes effect upon | 15 | | becoming law.".
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