Sen. Dan Kotowski
Filed: 11/16/2010
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1 | AMENDMENT TO HOUSE BILL 2263
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2 | AMENDMENT NO. ______. Amend House Bill 2263, AS AMENDED, by | ||||||
3 | replacing everything after the enacting clause with the | ||||||
4 | following:
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5 | "Section 5. The Uncollected State Claims Act is amended by | ||||||
6 | changing Section 2.1 as follows: | ||||||
7 | (30 ILCS 205/2.1) | ||||||
8 | Sec. 2.1. Sale of debts certified as uncollectible. | ||||||
9 | (a) Except as otherwise provided in this Section, after | ||||||
10 | After accounts have been certified by the Attorney General, or | ||||||
11 | the State agency for accounts of less than $1,000, as | ||||||
12 | uncollectible pursuant to this Act, the Department of Revenue | ||||||
13 | may sell the debts to one or more outside private vendors. | ||||||
14 | Sales shall be conducted under rules adopted by the Department | ||||||
15 | of Revenue using a request for proposals procedure similar to | ||||||
16 | that procedure under the Illinois Procurement Code. The outside |
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1 | private vendors shall remit to the Department of Revenue the | ||||||
2 | purchase price for debts sold under this Section. The | ||||||
3 | Department of Revenue shall deposit the money received under | ||||||
4 | this Section into the General Revenue Fund. The State | ||||||
5 | Comptroller shall provide the Department of Revenue with any | ||||||
6 | information that the Department requests for the purpose of | ||||||
7 | administering this Section. This Section does not apply to any | ||||||
8 | tax debt owing to the Department of Revenue.
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9 | (b) Debts owing to an Illinois public university, as | ||||||
10 | defined in Section 10 of the Illinois Prepaid Tuition Act (110 | ||||||
11 | ILCS 979/10), may be sold only by the university. Sales under | ||||||
12 | this subsection shall be conducted using a request for | ||||||
13 | proposals procedure similar to the procedure established under | ||||||
14 | the Illinois Procurement Code. Any amounts remitted to a | ||||||
15 | university under this subsection shall be retained by the | ||||||
16 | university. | ||||||
17 | (c) Debts owing to the Illinois Department of | ||||||
18 | Transportation may be sold only by the Illinois Department of | ||||||
19 | Transportation. Sales under this subsection shall be conducted | ||||||
20 | using a request for proposals procedure similar to the | ||||||
21 | procedure established under the Illinois Procurement Code. Any | ||||||
22 | amounts remitted to the Department of Transportation under this | ||||||
23 | subsection shall be deposited in the Road Fund. | ||||||
24 | (d) This Section does not apply to child support debts | ||||||
25 | enforced by the Department
of Healthcare and Family Services | ||||||
26 | pursuant to Title IV-D of the federal Social Security Act and |
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1 | Article X of the Illinois Public Aid Code. | ||||||
2 | (e) This Section does not apply to debts enforced by the | ||||||
3 | Department of Employment Security and owed to any federal | ||||||
4 | account, including but not limited to the Unemployment Trust | ||||||
5 | Fund and penalties and interest assessed under the Unemployment | ||||||
6 | Insurance Act. | ||||||
7 | (f) A debt may not be sold under this Section if the sale | ||||||
8 | of that debt would violate any federal law or federal | ||||||
9 | regulation. | ||||||
10 | (Source: P.A. 96-1435, eff. 8-16-10.) | ||||||
11 | Section 10. The Illinois State Collection Act of 1986 is | ||||||
12 | amended by changing Sections 10.1 and 10.2 as follows: | ||||||
13 | (30 ILCS 210/10.1) | ||||||
14 | Sec. 10.1 9 . Collection agency fees. Except where | ||||||
15 | prohibited by federal law or regulation, in the case of any | ||||||
16 | liability referred to a collection agency on or after July 1, | ||||||
17 | 2010, any fee charged to the State by the collection agency (i) | ||||||
18 | may not exceed 25% for a first placement of the underlying | ||||||
19 | liability referred to the collection agency unless the | ||||||
20 | liability is for a tax debt, (ii) is considered an additional | ||||||
21 | liability owed to the State, (iii) is immediately subject to | ||||||
22 | all collection procedures applicable to the liability referred | ||||||
23 | to the collection agency, and (iv) must be separately stated in | ||||||
24 | any statement or notice of the liability issued by the |
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1 | collection agency to the debtor. The fee limitations of this | ||||||
2 | Section do not apply to a second, third, or subsequent | ||||||
3 | placement or to litigation activities.
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4 | (Source: P.A. 96-1383, eff. 1-1-11; revised 9-7-10.)
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5 | (30 ILCS 210/10.2)
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6 | Sec. 10.2 9 . Deferral and compromise of past due debt. | ||||||
7 | (a) In this Section, "past due debt" means any debt owed to | ||||||
8 | the State that has been outstanding for more than 12 months. | ||||||
9 | "Past due debt" does not include any debt if any of the actions | ||||||
10 | required under this Section would violate federal law or | ||||||
11 | regulation. | ||||||
12 | (a-5) This Section does not apply to child support debts | ||||||
13 | enforced by the Department
of Healthcare and Family Services | ||||||
14 | pursuant to Title IV-D of the federal Social Security Act and | ||||||
15 | Article X of the Illinois Public Aid Code. | ||||||
16 | (a-10) This Section does not apply to debts enforced by the | ||||||
17 | Department of Employment Security and owed to any federal | ||||||
18 | account, including but not limited to the Unemployment Trust | ||||||
19 | Fund and penalties and interest assessed under the Unemployment | ||||||
20 | Insurance Act. | ||||||
21 | (b) State agencies may enter into a deferred payment plan | ||||||
22 | for the purpose of satisfying a past due debt. The deferred | ||||||
23 | payment plan must meet the following requirements: | ||||||
24 | (1) The term of the deferred payment plan may not | ||||||
25 | exceed 2 years. |
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1 | (2) The first payment of the deferred payment plan must | ||||||
2 | be at least 10% of the total amount due. | ||||||
3 | (3) All subsequent monthly payments for the deferred | ||||||
4 | payment plan must be assessed as equal monthly principal | ||||||
5 | payments, together with interest. | ||||||
6 | (4) The deferred payment plan must include interest at | ||||||
7 | a rate that is the same as the interest required under the | ||||||
8 | State Prompt Payment Act. | ||||||
9 | (5) The deferred payment plan must be approved by the | ||||||
10 | Secretary or Director of the State agency. | ||||||
11 | (b-5) The requirements of subsection (b) do not apply to a | ||||||
12 | deferred payment plan entered into by any Illinois public | ||||||
13 | university, as defined in Section 10 of the Illinois Prepaid | ||||||
14 | Tuition Act. | ||||||
15 | (c) State agencies may compromise past due debts. Any | ||||||
16 | action taken by a State agency to compromise a past due debt | ||||||
17 | must meet the following requirements: | ||||||
18 | (1) The amount of the compromised debt shall be no less | ||||||
19 | than 80% of the principal amount total of the past due | ||||||
20 | debt. | ||||||
21 | (2) Once a past due debt has been compromised, the | ||||||
22 | debtor must remit to the State agency the total amount of | ||||||
23 | the compromised debt. However, the State agency may collect | ||||||
24 | the compromised debt through a payment plan not to exceed 6 | ||||||
25 | months. If the State agency accepts the compromised debt | ||||||
26 | through a payment plan, then the compromised debt shall be |
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1 | subject to the same rate of interest as required under the | ||||||
2 | State Prompt Payment Act. | ||||||
3 | (3) Before a State agency accepts a compromised debt, | ||||||
4 | the amount of the compromised debt must be approved by the | ||||||
5 | Secretary or Director of the State agency Department of | ||||||
6 | Revenue . | ||||||
7 | (c-5) Illinois public universities, as defined in Section | ||||||
8 | 10 of the Illinois Prepaid Tuition Act, may compromise past due | ||||||
9 | debt without regard to the requirements set forth in subsection | ||||||
10 | (c). | ||||||
11 | (d) State agencies may sell a past due debt to one or more | ||||||
12 | outside private vendors. Sales shall be conducted under rules | ||||||
13 | adopted by the Department of Revenue using a request for | ||||||
14 | proposals procedure similar to that procedure under the | ||||||
15 | Illinois Procurement Code. The outside private vendors shall | ||||||
16 | remit to the State agency the purchase price for debts sold | ||||||
17 | under this subsection. | ||||||
18 | (e) The State agency shall deposit all amounts received | ||||||
19 | under this Section into the General Revenue Fund , except that | ||||||
20 | amounts received by any Illinois public university, as defined | ||||||
21 | in Section 10 of the Illinois Prepaid Tuition Act, shall be | ||||||
22 | retained by the university, and amounts received by the | ||||||
23 | Department of Transportation shall be deposited into the Road | ||||||
24 | Fund. . | ||||||
25 | (f) This Section does not apply to any tax debt owing to | ||||||
26 | the Department of Revenue.
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3 | (Source: P.A. 96-1435, eff. 8-16-10; revised 9-7-10.)".
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