State of Illinois
92^nd General Assembly
Legislation

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92_SB2424eng

 
SB2424 Engrossed                              LRB9217761SMpkA

 1        AN ACT concerning State finance.

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

 4        Section  5.  The  State  Finance Act is amended by adding
 5    Section 5.570 as follows:

 6        (30 ILCS 105/5.570 new)
 7        Sec. 5.570.  The Sheridan Correctional Center Fund.

 8        Section 10.  The Illinois State Collection Act of 1986 is
 9    amended by changing Section 8 as follows:

10        (30 ILCS 210/8) (from Ch. 15, par. 158)
11        Sec. 8.  Debt Collection Board.   There is created a Debt
12    Collection  Board  consisting  of  the  Director  of  Central
13    Management Services as chairman, the State  Comptroller,  and
14    the  Attorney  General,  or  their respective designees.  The
15    Board shall establish a centralized  collections  service  to
16    undertake  further  collection efforts on delinquent accounts
17    or claims of the State which have not been collected  through
18    the  reasonable  efforts  of  the  respective State agencies.
19    The Board shall promulgate rules and regulations pursuant  to
20    the  Illinois Administrative Procedure Act with regard to the
21    establishment   of   timetables   and   the   assumption   of
22    responsibility for agency accounts receivable that  have  not
23    been  collected  by  the agency, are not subject to a current
24    repayment plan, or have not been certified  as  uncollectible
25    as  of the date specified by the Board.  The Board shall make
26    a final evaluation of those accounts and either (i) direct or
27    conduct further collection activities when further collection
28    efforts are in the best economic interest  of  the  State  or
29    (ii)  in  accordance  with Section 2 of the Uncollected State
 
SB2424 Engrossed            -2-               LRB9217761SMpkA
 1    Claims Act, certify the receivable as uncollectible or submit
 2    the account to the Attorney General for that certification.
 3        The Board is empowered to  adopt  rules  and  regulations
 4    subject  to  the  provisions  of  the Illinois Administrative
 5    Procedure Act.
 6        The  Board  is  empowered  to  enter  into  one  or  more
 7    contracts with  outside  private  vendors  with  demonstrated
 8    capabilities  in  the  area  of  account  collection  for the
 9    collection of the delinquent accounts. The contracts shall be
10    let on  the  basis  of  competitive  proposals  secured  from
11    responsible proposers.  The Board may require that vendors be
12    prequalified.   All  contracts shall provide for a contingent
13    fee based on the age, nature, amount and type  of  delinquent
14    account.   The  Board  may  adopt a reasonable classification
15    schedule for the various receivables.  The  contractor  shall
16    remit the amount collected, net of the contingent fee, to the
17    respective  State  agency  which shall deposit the net amount
18    received into the fund that would have received  the  receipt
19    had it been collected by the State agency.  No portion of the
20    collections  shall  be  deposited into an Accounts Receivable
21    Fund established under Section 6 of this  Act.     The  Board
22    shall act only upon the unanimous vote of its members.
23        After  accounts  have  been certified by the Board or the
24    Attorney General as uncollectible  under  this  Section,  the
25    State  Comptroller  may sell the debts to one or more outside
26    private vendors or may enter into one or more contracts  with
27    outside  private  vendors  for  the  purpose  of  pursuing  a
28    last-call  collection  effort  to  collect  these debts.  All
29    contracts with outside private vendors  for  the  purpose  of
30    pursuing  a  last-call collection effort to collect the debts
31    shall provide for a contingent fee.
32        Beginning on the effective date of this amendatory Act of
33    the 92nd General Assembly, the outside private vendors  shall
34    remit  to  the  State  Comptroller  either  (i)  all  amounts
 
SB2424 Engrossed            -3-               LRB9217761SMpkA
 1    collected  under  a  contract, net of any contingent fees, or
 2    (ii) the purchase price for debts sold.    Beginning  on  the
 3    effective  date  of  this  amendatory Act of the 92nd General
 4    Assembly, the  State  Comptroller  shall  deposit  the  first
 5    $28,000,000  received  under  this  Section into the Sheridan
 6    Correctional  Center  Fund,  a  special  fund  in  the  State
 7    treasury. All other amounts received by the State Comptroller
 8    under this Section shall be  deposited  into  the  fund  that
 9    would  have received the receipt had it been collected by the
10    State agency.  All moneys in the Sheridan Correctional Center
11    Fund shall be appropriated to the Department  of  Corrections
12    to   be  used  for  the  sole  purpose  of  keeping  open  or
13    re-opening, as the case may  be,  the  Sheridan  Correctional
14    Center  and  for  its  continued  operation, and for no other
15    purpose.
16    (Source: P.A. 89-511, eff. 1-1-97.)

17        Section 99.  Effective date.  This Act takes effect  upon
18    becoming law.

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