SB1357 94TH GENERAL ASSEMBLY

LRB094 10985 BDD 41588 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB1357

Introduced 2/18/2005, by Sen. Chris Lauzen

SYNOPSIS AS INTRODUCED:

30 ILCS 210/8

from Ch. 15, par. 158

Amends the Illinois State Collection Act of 1986. Provides that after accounts have been certified by the Debt Collection Board or the Attorney General as uncollectible, the State Comptroller may sell the debts to outside private vendors or enter into one or more contracts with outside private vendors for the purpose of pursuing a last-call collection effort to collect these debts for a contingent fee. Provides that beginning on the effective date of this amendatory Act, the outside private vendors shall remit to the State Comptroller either (i) all amounts collected under a contract, net of contingent fees (now, remitted to the respective State agencies to whom the money is owed) or (ii) the purchase price for debts sold. Provides that the State Comptroller shall deposit the money received under these provisions into the Budget Stabilization Fund. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning State finance.

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

Section 5. The Illinois State Collection Act of 1986 is amended by changing Section 8 as follows:

(30 ILCS 210/8) (from Ch. 15, par. 158)

Sec. 8. Debt Collection Board.

(a) There is created a Debt Collection Board consisting of the Director of Central Management Services as chairman, the State Comptroller, and the Attorney General, or their respective designees. The Board shall establish a centralized collections service to undertake further collection efforts on delinquent accounts or claims of the State which have not been collected through the reasonable efforts of the respective State agencies. The Board shall promulgate rules and regulations pursuant to the Illinois Administrative Procedure Act with regard to the establishment of timetables and the assumption of responsibility for agency accounts receivable that have not been collected by the agency, are not subject to a current repayment plan, or have not been certified as uncollectible as of the date specified by the Board. The Board shall make a final evaluation of those accounts and either (i) direct or conduct further collection activities when further collection efforts are in the best economic interest of the State or (ii) in accordance with Section 2 of the Uncollected State Claims Act, certify the receivable as uncollectible or submit the account to the Attorney General for that certification.

The Board is empowered to adopt rules and regulations subject to the provisions of the Illinois Administrative Procedure Act.

The Board is empowered to enter into one or more contracts with outside private vendors with demonstrated capabilities in the area of account collection for the collection of the delinquent accounts. The contracts shall be let on the basis of competitive proposals secured from responsible proposers. The Board may require that vendors be prequalified. All contracts shall provide for a contingent fee based on the age, nature, amount and type of delinquent account. The Board may adopt a reasonable classification schedule for the various receivables. The contractor shall remit the amount collected, net of the contingent fee, to the respective State agency which shall deposit the net amount received into the fund that would have received the receipt had it been collected by the State agency. No portion of the collections shall be deposited into an Accounts Receivable Fund established under Section 6 of this Act. The Board shall act only upon the unanimous vote of its members.

The authority granted the Debt Collection Board under this Section shall be limited to the administration of debt not otherwise required by the provisions of this amendatory Act of the 93rd General Assembly to be referred to the Department of Revenue's Debt Collection Bureau. Upon referral to and acceptance of any debt by the Bureau, the provisions of this Section shall be rendered null and void as to that debt and the Board shall promptly deliver its entire file and all records relating to such debt to the Bureau, together with a status report describing all action taken by the Board or any entity on its behalf to collect the debt, and including an accounting of all payments received.

(b) After accounts have been certified by the Board or the Attorney General as uncollectible under this Section, the State Comptroller may sell the debts to one or more outside private vendors or may enter into one or more contracts with outside private vendors for the purpose of pursuing a last-call collection effort to collect these debts. All contracts with outside private vendors for the purpose of pursuing a last-call collection effort to collect the debts shall provide for a contingent fee.

Beginning on the effective date of this amendatory Act of the 94th General Assembly, the outside private vendors shall remit to the State Comptroller either (i) all amounts collected under a contract, net of any contingent fees, or (ii) the purchase price for debts sold. Beginning on the effective date of this amendatory Act of the 94th General Assembly, the State Comptroller shall deposit the money received under this subsection (b) into the Budget Stabilization Fund.

(Source: P.A. 93-570, eff. 8-20-03.)

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