093_SB1449
LRB093 07997 SJM 08193 b
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 Illinois State Collection Act of 1986 is
5 amended by changing Section 8 as follows:
6 (30 ILCS 210/8) (from Ch. 15, par. 158)
7 Sec. 8. Debt Collection Board.
8 (a) There is created a Debt Collection Board consisting
9 of the Director of Central Management Services as chairman,
10 the State Comptroller, and the Attorney General, or their
11 respective designees. The Board shall establish a
12 centralized collections service to undertake further
13 collection efforts on delinquent accounts or claims of the
14 State which have not been collected through the reasonable
15 efforts of the respective State agencies. The Board shall
16 promulgate rules and regulations pursuant to the Illinois
17 Administrative Procedure Act with regard to the establishment
18 of timetables and the assumption of responsibility for agency
19 accounts receivable that have not been collected by the
20 agency, are not subject to a current repayment plan, or have
21 not been certified as uncollectible as of the date specified
22 by the Board. The Board shall make a final evaluation of
23 those accounts and either (i) direct or conduct further
24 collection activities when further collection efforts are in
25 the best economic interest of the State or (ii) in accordance
26 with Section 2 of the Uncollected State Claims Act, certify
27 the receivable as uncollectible or submit the account to the
28 Attorney General for that certification.
29 The Board is empowered to adopt rules and regulations
30 subject to the provisions of the Illinois Administrative
31 Procedure Act.
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1 The Board is empowered to enter into one or more
2 contracts with outside private vendors with demonstrated
3 capabilities in the area of account collection for the
4 collection of the delinquent accounts. The contracts shall be
5 let on the basis of competitive proposals secured from
6 responsible proposers. The Board may require that vendors be
7 prequalified. All contracts shall provide for a contingent
8 fee based on the age, nature, amount and type of delinquent
9 account. The Board may adopt a reasonable classification
10 schedule for the various receivables. The contractor shall
11 remit the amount collected, net of the contingent fee, to the
12 respective State agency which shall deposit the net amount
13 received into the fund that would have received the receipt
14 had it been collected by the State agency. No portion of the
15 collections shall be deposited into an Accounts Receivable
16 Fund established under Section 6 of this Act. The Board
17 shall act only upon the unanimous vote of its members.
18 (b) After accounts have been certified by the Board or
19 the Attorney General as uncollectible under this Section, the
20 State Comptroller may sell the debts to one or more outside
21 private vendors or may enter into one or more contracts with
22 outside private vendors for the purpose of pursuing a
23 last-call collection effort to collect these debts. All
24 contracts with outside private vendors for the purpose of
25 pursuing a last-call collection effort to collect the debts
26 shall provide for a contingent fee.
27 Beginning on the effective date of this amendatory Act of
28 the 93rd General Assembly, the outside private vendors shall
29 remit to the State Comptroller either (i) all amounts
30 collected under a contract, net of any contingent fees, or
31 (ii) the purchase price for debts sold. Beginning on the
32 effective date of this amendatory Act of the 93rd General
33 Assembly, the State Comptroller shall deposit the money
34 received under this subsection (b) into the Budget
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1 Stabilization Fund.
2 (Source: P.A. 89-511, eff. 1-1-97.)
3 Section 99. Effective date. This Act takes effect upon
4 becoming law.