Illinois General Assembly - Full Text of HB0466
Illinois General Assembly

Previous General Assemblies

Full Text of HB0466  97th General Assembly

HB0466ham001 97TH GENERAL ASSEMBLY

Rep. Naomi D. Jakobsson

Filed: 4/13/2011

 

 


 

 


 
09700HB0466ham001LRB097 03293 PJG 54507 a

1
AMENDMENT TO HOUSE BILL 466

2    AMENDMENT NO. ______. Amend House Bill 466 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Uncollected State Claims Act is amended by
5changing 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
8claim or account receivable of $1,000 or more due the agency
9after having pursued the procedure prescribed by law or
10applicable rules and regulations for the collection thereof or,
11if no procedure is so prescribed, then after having undertaken
12all reasonable and appropriate procedures available to the
13agency to effectuate collection, the State agency shall request
14the Attorney General to certify the claim or account receivable
15to be uncollectible.
16    (b) Each request to the Attorney General asking that a

 

 

09700HB0466ham001- 2 -LRB097 03293 PJG 54507 a

1claim or account receivable of $1,000 or more be declared
2uncollectible shall be in a format prescribed by the Attorney
3General and shall include at a minimum the following
4information: debtor's name, debtor's social security number or
5comparable identifying number, debtor's last known address,
6nature of the debt, efforts made to collect the debt and the
7time period covered by those efforts, the age of the debt, the
8age of the debtor and the specific reason the State agency
9believes the debt to be uncollectible. Nothing in this
10provision should be interpreted as a limitation on the
11authority of the Attorney General to require additional
12information that he may find to be necessary to evaluate
13requests sent him pursuant to this provision.
14    (c) Claims or accounts receivable of less than $1,000 may
15be certified as uncollectible by the agency when the agency
16determines that further collection efforts are not in the best
17economic interest of the State. Such determination shall be
18made in accordance with rules of the Comptroller.
19    (d) If any item of information required by this provision
20or any item of additional information required by the Attorney
21General is not available, the State agency shall specifically
22so state in its request to the Attorney General asking that the
23debt be declared uncollectible.
24    (e) A State agency participating in a federal student loan
25program may remove student loans from its records by assigning
26or referring such student loans to the federal government for

 

 

09700HB0466ham001- 3 -LRB097 03293 PJG 54507 a

1collection pursuant to the procedures prescribed by federal
2laws and regulations.
3    (f) Claims and receivables due from another State agency
4may be written off if the agency has pursued all reasonable
5means of collection and if the amount (1) is payable from an
6appropriation which has lapsed; (2) may not properly be charged
7against a current appropriation; and (3) was not originally
8payable from federal funds, a trust fund or locally held funds.
9Each agency which writes off claims or receivables pursuant to
10this subparagraph shall submit a listing of all such write-offs
11to the Comptroller within 60 days of taking such action.
12    (g) Debts certified as uncollectible may be reopened for
13collection by an agency upon the approval of the Attorney
14General.
15    (h) Agencies shall submit a list of debts certified as
16uncollectible to the Comptroller in the form and manner
17specified by the Comptroller. The Comptroller shall take
18reasonable steps to accept information on agency computer
19tapes.
20    (i) After compliance with all provisions of this Section,
21an agency may delete from its records debts certified as
22uncollectible 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

 

 

09700HB0466ham001- 4 -LRB097 03293 PJG 54507 a

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
7Assembly 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
14total amount and the number of claims due and payable to the
15State. Each agency shall also describe in its annual report the
16method used in collecting debts, whether by a private
17collection service or by the Attorney General.
18    (l) The provisions of Section 2505-250 of the Department of
19Revenue Law (20 ILCS 2505/2505-250) take precedence over the
20provisions 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
24accounts have been certified by the Attorney General, or the
25State agency for accounts of less than $1,000, as uncollectible

 

 

09700HB0466ham001- 5 -LRB097 03293 PJG 54507 a

1pursuant to this Act, the Department of Revenue may sell the
2debts to one or more outside private vendors. Sales shall be
3conducted under rules adopted by the Department of Revenue
4using a request for proposals procedure similar to that
5procedure under the Illinois Procurement Code. The outside
6private vendors shall remit to the Department of Revenue the
7purchase price for debts sold under this Section. The
8Department of Revenue shall deposit the money received under
9this Section into the General Revenue Fund. The State
10Comptroller shall provide the Department of Revenue with any
11information that the Department requests for the purpose of
12administering this Section. This Section does not apply to any
13tax debt owing to the Department of Revenue. This Section does
14not apply to (i) debts, in the case of a public university,
15when the debt is less than 8 years old; (ii) child support
16debts enforced by the Department of Healthcare and Family
17Services pursuant to Title IV-D of the federal Social Security
18Act and Article X of the Illinois Public Aid Code; and (iii)
19debts that are enforced by the Department of Employment
20Security and owed to any federal account, including but not
21limited to the Unemployment Trust Fund, and penalties and
22interest 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
25amended by renumbering and changing Section 9 added by Public

 

 

09700HB0466ham001- 6 -LRB097 03293 PJG 54507 a

1Act 96-1383 and Section 9 added by Public Act 96-1435 as
2follows:
 
3    (30 ILCS 210/10.1)
4    Sec. 10.1 9. Collection agency fees. Except where
5prohibited by federal law or regulation, in the case of any
6liability referred to a collection agency on or after July 1,
72010, any fee charged to the State by the collection agency (i)
8may not exceed 25% for a first placement of the underlying
9liability referred to the collection agency unless the
10liability is for a tax debt, (ii) is considered an additional
11liability owed to the State, (iii) is immediately subject to
12all collection procedures applicable to the liability referred
13to the collection agency, and (iv) must be separately stated in
14any statement or notice of the liability issued by the
15collection agency to the debtor. The fee limitations of this
16Section do not apply to a second, third, or subsequent
17placement 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
22the State that has been outstanding for more than 12 months.
23"Past due debt" does not include any debt if any of the actions
24required under this Section would violate federal law or

 

 

09700HB0466ham001- 7 -LRB097 03293 PJG 54507 a

1regulation.
2    (b) State agencies may enter into a deferred payment plan
3for the purpose of satisfying a past due debt. Except for a
4deferred payment plan entered into by any Illinois public
5university, as defined in Section 10 of the Illinois Prepaid
6Tuition Act, or by the Illinois Department of Transportation or
7for debts owed to the Illinois Department of Transportation for
8deposit into the Road Fund, the The deferred payment plan must
9meet 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
23action taken by a State agency to compromise a past due debt,
24other than an action taken by an Illinois public university, as
25defined in Section 10 of the Illinois Prepaid Tuition Act, to
26compromise past due debt, must meet the following requirements:

 

 

09700HB0466ham001- 8 -LRB097 03293 PJG 54507 a

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
15outside private vendors. Sales shall be conducted under rules
16adopted by the Department of Revenue using a request for
17proposals procedure similar to that procedure under the
18Illinois Procurement Code. The outside private vendors shall
19remit to the State agency the purchase price for debts sold
20under this subsection.
21    (e) The State agency shall deposit all amounts received
22under this Section into the General Revenue Fund. For Illinois
23public universities, as defined in Section 10 of the Illinois
24Prepaid Tuition Act, the requirement of this subsection (e)
25applies to amounts received from the sale of past due debt and
26does not apply to amounts received under a deferred payment

 

 

09700HB0466ham001- 9 -LRB097 03293 PJG 54507 a

1plan or a compromised debt payment plan.
2    (f) This Section does not apply to any tax debt owing to
3the Department of Revenue.
4    (g) This Section does not apply to child support debts
5enforced by the Department of Healthcare and Family Services
6pursuant to Title IV-D of the federal Social Security Act and
7Article X of the Illinois Public Aid Code.
8    (h) This Section does not apply to debts that are enforced
9by the Department of Employment Security and owed to any
10federal account, including but not limited to the Unemployment
11Trust Fund, and penalties and interest assessed under the
12Unemployment 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
15becoming law.".