HB2263sam003 96TH GENERAL ASSEMBLY

Sen. Dan Kotowski

Filed: 11/16/2010

09600HB2263sam003 LRB096 08412 PJG 43848 a

AMENDMENT TO HOUSE BILL 2263

AMENDMENT NO. ______. Amend House Bill 2263, AS AMENDED, by replacing everything after the enacting clause with the following:

"Section 5. The Uncollected State Claims Act is amended by changing Section 2.1 as follows:

(30 ILCS 205/2.1)

Sec. 2.1. Sale of debts certified as uncollectible.

(a) Except as otherwise provided in this Section, after After accounts have been certified by the Attorney General, or the State agency for accounts of less than $1,000, as uncollectible pursuant to this Act, the Department of Revenue may sell the debts to one or more outside private vendors. Sales shall be conducted under rules adopted by the Department of Revenue using a request for proposals procedure similar to that procedure under the Illinois Procurement Code. The outside private vendors shall remit to the Department of Revenue the purchase price for debts sold under this Section. The Department of Revenue shall deposit the money received under this Section into the General Revenue Fund. The State Comptroller shall provide the Department of Revenue with any information that the Department requests for the purpose of administering this Section. This Section does not apply to any tax debt owing to the Department of Revenue.

(b) Debts owing to an Illinois public university, as defined in Section 10 of the Illinois Prepaid Tuition Act (110 ILCS 979/10), may be sold only by the university. Sales under this subsection shall be conducted using a request for proposals procedure similar to the procedure established under the Illinois Procurement Code. Any amounts remitted to a university under this subsection shall be retained by the university.

(c) Debts owing to the Illinois Department of Transportation may be sold only by the Illinois Department of Transportation. Sales under this subsection shall be conducted using a request for proposals procedure similar to the procedure established under the Illinois Procurement Code. Any amounts remitted to the Department of Transportation under this subsection shall be deposited in the Road Fund.

(d) This Section does not apply to child support debts enforced by the Department of Healthcare and Family Services pursuant to Title IV-D of the federal Social Security Act and Article X of the Illinois Public Aid Code.

(e) This Section does not apply to debts enforced by the Department of Employment Security and owed to any federal account, including but not limited to the Unemployment Trust Fund and penalties and interest assessed under the Unemployment Insurance Act.

(f) A debt may not be sold under this Section if the sale of that debt would violate any federal law or federal regulation.

(Source: P.A. 96-1435, eff. 8-16-10.)

Section 10. The Illinois State Collection Act of 1986 is amended by changing Sections 10.1 and 10.2 as follows:

(30 ILCS 210/10.1)

Sec. 10.1 9. Collection agency fees. Except where prohibited by federal law or regulation, in the case of any liability referred to a collection agency on or after July 1, 2010, any fee charged to the State by the collection agency (i) may not exceed 25% for a first placement of the underlying liability referred to the collection agency unless the liability is for a tax debt, (ii) is considered an additional liability owed to the State, (iii) is immediately subject to all collection procedures applicable to the liability referred to the collection agency, and (iv) must be separately stated in any statement or notice of the liability issued by the collection agency to the debtor. The fee limitations of this Section do not apply to a second, third, or subsequent placement or to litigation activities.

(Source: P.A. 96-1383, eff. 1-1-11; revised 9-7-10.)

(30 ILCS 210/10.2)

Sec. 10.2 9. Deferral and compromise of past due debt.

(a) In this Section, "past due debt" means any debt owed to the State that has been outstanding for more than 12 months. "Past due debt" does not include any debt if any of the actions required under this Section would violate federal law or regulation.

(a-5) This Section does not apply to child support debts enforced by the Department of Healthcare and Family Services pursuant to Title IV-D of the federal Social Security Act and Article X of the Illinois Public Aid Code.

(a-10) This Section does not apply to debts enforced by the Department of Employment Security and owed to any federal account, including but not limited to the Unemployment Trust Fund and penalties and interest assessed under the Unemployment Insurance Act.

(b) State agencies may enter into a deferred payment plan for the purpose of satisfying a past due debt. The deferred payment plan must meet the following requirements:

(1) The term of the deferred payment plan may not exceed 2 years.

(2) The first payment of the deferred payment plan must be at least 10% of the total amount due.

(3) All subsequent monthly payments for the deferred payment plan must be assessed as equal monthly principal payments, together with interest.

(4) The deferred payment plan must include interest at a rate that is the same as the interest required under the State Prompt Payment Act.

(5) The deferred payment plan must be approved by the Secretary or Director of the State agency.

(b-5) The requirements of subsection (b) do not apply to a deferred payment plan entered into by any Illinois public university, as defined in Section 10 of the Illinois Prepaid Tuition Act.

(c) State agencies may compromise past due debts. Any action taken by a State agency to compromise a past due debt must meet the following requirements:

(1) The amount of the compromised debt shall be no less than 80% of the principal amount total of the past due debt.

(2) Once a past due debt has been compromised, the debtor must remit to the State agency the total amount of the compromised debt. However, the State agency may collect the compromised debt through a payment plan not to exceed 6 months. If the State agency accepts the compromised debt through a payment plan, then the compromised debt shall be subject to the same rate of interest as required under the State Prompt Payment Act.

(3) Before a State agency accepts a compromised debt, the amount of the compromised debt must be approved by the Secretary or Director of the State agency Department of Revenue.

(c-5) Illinois public universities, as defined in Section 10 of the Illinois Prepaid Tuition Act, may compromise past due debt without regard to the requirements set forth in subsection (c).

(d) State agencies may sell a past due debt to one or more outside private vendors. Sales shall be conducted under rules adopted by the Department of Revenue using a request for proposals procedure similar to that procedure under the Illinois Procurement Code. The outside private vendors shall remit to the State agency the purchase price for debts sold under this subsection.

(e) The State agency shall deposit all amounts received under this Section into the General Revenue Fund, except that amounts received by any Illinois public university, as defined in Section 10 of the Illinois Prepaid Tuition Act, shall be retained by the university, and amounts received by the Department of Transportation shall be deposited into the Road Fund..

(f) This Section does not apply to any tax debt owing to the Department of Revenue.

(Source: P.A. 96-1435, eff. 8-16-10; revised 9-7-10.)".