093_HB0017

 
                                     LRB093 02256 SJM 02264 b

 1        AN ACT in relation to debt collection.

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

 4        Section  1.  Short  title.   This Act may be cited as the
 5    State Loan Act.

 6        Section 5.  Definitions.  As used in this Act:
 7        "State loan" means any loan of $50,000 or  more  made  by
 8    the  State  of Illinois or any State agency to any person for
 9    any purpose.
10        "State agencies" has the meaning ascribed to that term in
11    Section 1-7 of the Illinois State Auditing Act,  except  that
12    "State agencies" does not include the Department of Revenue.
13        "Person"  means any individual, corporation, partnership,
14    unincorporated  association,   limited   liability   company,
15    limited liability partnership, or other entity.
16        "Designated individuals" means:
17             (i)  In  the  case of a partnership, all general and
18        limited partners of the partnership.
19             (ii)  In the case of a corporation, all shareholders
20        with 10% or more equity  or  ownership  interest  in  the
21        corporation.
22             (iii)  In  the  case of one or more individuals, all
23        of the individuals.
24             (iv)  In  the  case  of  any   other   entity,   all
25        individuals  with any equity or ownership interest in the
26        entity.

27        Section 10.  Disclosure.  Before any State  loan  may  be
28    made  to  any  person or renewed (and before repayment of any
29    part of a State loan may be forgiven  or  renegotiated),  the
30    names  and  addresses  of  each  designated individual of the
 
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 1    person must be disclosed and made public.

 2        Section 15.  Guarantee.  Before any  State  loan  may  be
 3    made   to   any  person  or  renewed  or  renegotiated,  each
 4    designated individual of the person must personally guarantee
 5    repayment of the loan.  A guarantee remains in  effect  until
 6    the  loan  has  been  repaid in full.  A guarantee may not be
 7    rescinded  or  abrogated  under   any   circumstances.    Any
 8    agreement that purports to rescind or abrogate a guarantee is
 9    null and void.

10        Section  20.  Certain  contracts  prohibited.   No  State
11    agency  may  enter  into  any contract with any person if the
12    person or any designated  individual  of  the  person  is  in
13    default on any State loan.

14        Section  25.  Disclosure of contributions.  No State loan
15    may be made or renewed, nor may repayment of any  part  of  a
16    State   loan   be   forgiven  or  renegotiated,  unless  each
17    designated individual of the  person  with  which  the  State
18    loan,  renewal,  forgiveness, or renegotiation is proposed to
19    be made has publicly disclosed all contributions made by  the
20    designated  individual  in the past 5 years.  As used in this
21    Act, "contribution" includes any contribution as  defined  in
22    Section  9-1.4 of the Election Code and any contribution to a
23    political  committee.   As  used  in  this  Act,   "political
24    committee"  has  the meaning ascribed to that term in Section
25    9-1.9 of the Election Code.

26        Section 30.  Default; Attorney General investigation.  In
27    the case of any default on a State  loan,  the  State  agency
28    making  the  loan  shall  notify  the  Attorney General.  The
29    Attorney General shall investigate the circumstances  of  the
30    default.   Unless  the  Attorney  General determines that the
 
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 1    loan  is  uncollectible,  the  Attorney  General  shall  take
 2    appropriate action to collect any amount owing to  the  State
 3    and enforce the State's rights under the loan agreement.

 4        Section   35.  Uncollected   State   Claims   Act.    Any
 5    renegotiation  or  forgiveness  of  a  State  loan must be in
 6    compliance with  the  provisions  of  the  Uncollected  State
 7    Claims  Act  and  the  Illinois  State Collection Act of 1986
 8    regarding reporting and recording of debt collections and the
 9    writing off of debts.

10        Section 40.  Report.
11        The Attorney General shall report to the General Assembly
12    by February 1 of each year the following:
13        (1)  the total number and dollar amount  of  loans  about
14    which  the  Attorney  General was notified in accordance with
15    this Act in the preceding calendar year;
16        (2)  the total amount actually collected;
17        (3)  the number of cases by agency; and
18        (4)  the  names   and   addresses   of   all   designated
19    individuals  of  any  person  that is a party to a State loan
20    about which the Attorney General was notified  in  accordance
21    with this Act in the preceding calendar year.

22        Section 103.  The Illinois Department of Revenue Sunshine
23    Act is amended by adding Section 2.4 as follows:

24        (20 ILCS 2515/2.4 new)
25        Sec. 2.4.  Public list of delinquent State taxes.
26        (a)  The  Director  may  annually  disclose a list of all
27    taxpayers, including but not limited to individuals,  trusts,
28    partnerships,  corporations, and other taxable entities, that
29    are delinquent in the payment of tax liabilities collected by
30    the Department.  The list shall include only those  taxpayers
 
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 1    with  total  final liabilities for all taxes collected by the
 2    Department (including penalties and interest)  in  an  amount
 3    greater  than  $10,000 (or such greater amount as established
 4    by the Department by rule) for a period of 6 months (or  such
 5    longer  period as established by the Department by rule) from
 6    the time that the taxes were assessed  or  became  final,  as
 7    provided  in  the  statute  imposing the tax.  The list shall
 8    contain the name, address, types of taxes, month and year  in
 9    which  each  tax  liability was assessed or became final, the
10    amount of each tax outstanding of each  delinquent  taxpayer,
11    and,  in  the  case  of a corporate taxpayer, the name of the
12    current president of record of the corporation.
13        (b)  At least 90 days before the disclosure of  the  name
14    of  any delinquent taxpayer prescribed in subsection (a), the
15    Director shall mail  a  written  notice  to  each  delinquent
16    taxpayer  by  certified  mail  addressed  to  the  delinquent
17    taxpayer  at  his  or  her last or usual place of business or
18    abode detailing the amount and nature of the delinquency  and
19    the   intended   disclosure   of  the  delinquency.   If  the
20    delinquent tax has not been paid 60 days after the notice was
21    delivered or the Department has been notified  that  delivery
22    was refused or unclaimed, and the taxpayer has not, since the
23    mailing   of  the  notice,  either  entered  into  a  written
24    agreement with the Department for payment of the  delinquency
25    or  corrected  a  default  in  an  existing  agreement to the
26    satisfaction of the Director, the Director may  disclose  the
27    tax in the list of delinquent taxpayers.
28        (c)  Unpaid  taxes  shall  not be deemed to be delinquent
29    and subject to disclosure if  (i)  a  written  agreement  for
30    payment  exists  without default between the taxpayer and the
31    Department or (ii) the tax liability is  the  subject  of  an
32    administrative  hearing,  administrative  review, or judicial
33    review.
34        (d)  The list shall be available for public inspection at
 
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 1    the Department or by other means  of  publication,  including
 2    the Internet.
 3        (e)  The  Department shall prescribe reasonable rules for
 4    the administration and implementation of this Section.
 5        (f) Any disclosure made by the Director in a  good  faith
 6    effort  to comply with this Section shall not be considered a
 7    violation of any statute prohibiting disclosure  of  taxpayer
 8    information.

 9        Section  105.  The State Finance Act is amended by adding
10    Section 5.595 as follows:

11        (30 ILCS 105/5.595 new)
12        Sec. 5.595.  The Debt Collection Fund.

13        Section 110. The Uncollected State Claims Act is  amended
14    by changing Section 2 as follows:

15        (30 ILCS 205/2) (from Ch. 15, par. 102)
16        Sec.   2.  Uncollectible  debts;  assignment  of  student
17    loans; annual reports.
18        (a)  When any State agency is unable to collect any claim
19    or account receivable of $1,000 or more due the agency  after
20    having  pursued the procedure prescribed by law or applicable
21    rules and regulations for the collection thereof  or,  if  no
22    procedure  is so prescribed, then after having undertaken all
23    reasonable and appropriate procedures available to the agency
24    to effectuate collection, the State agency shall request  the
25    Attorney  General  to certify the claim or account receivable
26    to be uncollectible.
27        (b)  Each request to the Attorney General asking  that  a
28    claim  or  account  receivable  of $1,000 or more be declared
29    uncollectible shall be in a format prescribed by the Attorney
30    General  and  shall  include  at  a  minimum  the   following
 
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 1    information:   debtor's name, debtor's social security number
 2    or  comparable  identifying  number,  debtor's   last   known
 3    address, nature of the debt, efforts made to collect the debt
 4    and  the time period covered by those efforts, the age of the
 5    debt, the age of the debtor and the specific reason the State
 6    agency believes the debt to  be  uncollectible.   Nothing  in
 7    this  provision  should be interpreted as a limitation on the
 8    authority of  the  Attorney  General  to  require  additional
 9    information  that  he  may  find  to be necessary to evaluate
10    requests sent him pursuant to this provision.
11        (c)  Claims or accounts receivable of  less  than  $1,000
12    may  be  certified  as  uncollectible  by the agency when the
13    agency determines that further collection efforts are not  in
14    the  best economic interest of the State.  Such determination
15    shall be made in accordance with rules of the Comptroller.
16        (d)  If  any  item  of  information  required   by   this
17    provision  or  any item of additional information required by
18    the Attorney General is not available, the State agency shall
19    specifically so state in its request to the Attorney  General
20    asking that the debt be declared uncollectible.
21        (e)  A  State  agency  participating in a federal student
22    loan program may remove student loans  from  its  records  by
23    assigning  or  referring  such  student  loans to the federal
24    government  for  collection  pursuant   to   the   procedures
25    prescribed by federal laws and regulations.
26        (f)  Claims and receivables due from another State agency
27    may  be  written off if the agency has pursued all reasonable
28    means of collection and if the amount (1) is payable from  an
29    appropriation  which  has  lapsed;  (2)  may  not properly be
30    charged against a current  appropriation;  and  (3)  was  not
31    originally  payable  from  federal  funds,  a  trust  fund or
32    locally held funds.  Each agency which writes off  claims  or
33    receivables  pursuant  to  this  subparagraph  shall submit a
34    listing of all such write-offs to the Comptroller  within  60
 
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 1    days of taking such action.
 2        (g)  Debts certified as uncollectible may be reopened for
 3    collection  by  an  agency  upon the approval of the Attorney
 4    General.
 5        (h)  Agencies shall submit a list of debts  certified  as
 6    uncollectible  to  the  Comptroller  in  the  form and manner
 7    specified by the Comptroller.   The  Comptroller  shall  take
 8    reasonable  steps  to  accept  information on agency computer
 9    tapes.
10        (i)  After  compliance  with  all  provisions   of   this
11    Section,   an  agency  may  delete  from  its  records  debts
12    certified as uncollectible as follows:
13             (1)  When the debt is less than $1,000,  immediately
14        upon certification by the agency;
15             (2)  For  debts of $1,000 or more that are less than
16        5 years old, when the agency determines pursuant to rules
17        and regulations promulgated by the Comptroller that  such
18        deletion is in the best economic interest of the State;
19             (3)  For  debts  of $1,000 or more when, the debt is
20        more than 5 years old.
21        (j)  The Attorney General shall  report  to  the  General
22    Assembly by February 1 of each year the following:
23             (1)  the  total  number  and  dollar amount of debts
24        referred to him for collection in the preceding  calendar
25        year;
26             (2)  the total amount actually collected;
27             (3)  the number of cases by agency.
28        (k)  Each  State agency shall report in its annual report
29    the total amount and the number of claims due and payable  to
30    the  State.   Each  agency  shall also describe in its annual
31    report the method used in  collecting  debts,  whether  by  a
32    private collection service or by the Attorney General.
33        (l)  The provisions of Section 2505-250 of the Department
34    of  Revenue  Law (20 ILCS 2505/2505-250) take precedence over
 
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 1    the provisions of this Section.
 2        (m)  Any renegotiation or forgiveness of a State loan  to
 3    which  the  State Loan Act applies must be in compliance with
 4    the provisions of this Act regarding reporting and  recording
 5    of debt collections and the writing off of debts.
 6    (Source: P.A. 91-239, eff. 1-1-00.)

 7        Section  115.   The Illinois State Collection Act of 1986
 8    is amended by changing Sections 2, 4, 5,  6,  7,  and  8  and
 9    adding Section 10 as follows:

10        (30 ILCS 210/2) (from Ch. 15, par. 152)
11        Sec.  2.   Scope  of  the  Act.  This  Act applies to all
12    accounts or claims owed to "State agencies", as that term  is
13    defined  in  the Illinois State Auditing Act, except that the
14    debt collection and write-off provisions of  this  Act  shall
15    not apply to the Illinois State Scholarship Commission in the
16    administration  of  its student loan programs.  To the extent
17    that some other statute prescribes procedures for  collection
18    of  particular  types  of  accounts  or  claims owed to State
19    agencies in conflict with the provisions of  this  Act,  such
20    other  statute  shall continue in full force and effect.  The
21    debt collection and write-off provisions of this Act  may  be
22    utilized  by  the General Assembly, the Supreme Court and the
23    several  courts  of  this  State,  and  the  constitutionally
24    elected State Officers,  at  their  discretion,  except  that
25    Section  10  applies  to  all State agencies unless otherwise
26    specified in that Section.   However  reporting  requirements
27    established by the comptroller shall be followed by all State
28    agencies.   The  provisions  of this Act shall be utilized at
29    all  times  by  all  departments,  agencies,  divisions,  and
30    offices under the jurisdiction of the Governor.
31    (Source: P.A. 85-814.)
 
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 1        (30 ILCS 210/4) (from Ch. 15, par. 154)
 2        Sec. 4.  Comptroller; rules; reports.
 3        (a) The Comptroller shall  provide  by  rule  appropriate
 4    procedures  for  State agencies to follow in establishing and
 5    recording within  the  State  accounting  system  records  of
 6    amounts  owed  to  the  State  of Illinois.  The rules of the
 7    Comptroller shall include, but are not limited to:
 8             (1)  the  manner  by  which  State  agencies   shall
 9        recognize debts;
10             (2)  systems  to  age  accounts  receivable of State
11        agencies;
12             (3)  standards by which State agencies'  claims  may
13        be  entered  and  removed  from  the Comptroller's Offset
14        System  authorized  by  Section  10.05   of   the   State
15        Comptroller Act;
16             (4)  accounting procedures for estimating the amount
17        of uncollectible receivables of State agencies; and
18             (5)  accounting procedures for writing off bad debts
19        and  uncollectible  claims, subject to the requirement of
20        Section 10 that debts more than 90 days overdue be turned
21        over to the Debt Collection Unit of the Auditor General's
22        Office.
23        (b)  State  agencies  shall  report  to  the  Comptroller
24    information  concerning   their   accounts   receivable   and
25    uncollectible  claims  in  accordance  with  the rules of the
26    Comptroller, which may provide for summary reporting.
27        (c)  The rules of  the  Comptroller  authorized  by  this
28    Section may specify varying procedures and forms of reporting
29    dependent   upon   the  nature  and  amount  of  the  account
30    receivable or uncollectible claim, the age of the  debt,  the
31    probability  of  collection  and such other factors that will
32    increase the net benefit  to  the  State  of  the  collection
33    effort.
34        (d)  The  Comptroller  shall report annually by March 14,
 
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 1    to the Governor and the General Assembly, the amount  of  all
 2    delinquent  debt  owed to each State agency as of December 31
 3    of the previous calendar year.
 4        (e)  Any renegotiation or forgiveness of a State loan  to
 5    which  the  State Loan Act applies must be in compliance with
 6    the provisions of this Act regarding reporting and  recording
 7    of debt collections and the writing off of debts.
 8    (Source: P.A. 86-515.)

 9        (30 ILCS 210/5) (from Ch. 15, par. 155)
10        Sec. 5.  Rules; payment plans; offsets.
11        (a)  State agencies shall adopt rules establishing formal
12    due dates for amounts owing to the State, until July 1, 2004,
13    and  for  the  referral  of  seriously  past  due accounts to
14    private  collection  agencies,  unless  otherwise   expressly
15    provided   by   law   or  rule.   Such  procedures  shall  be
16    established in accord with sound business practices.
17        (b)  Until July 1,  2004,  agencies  may  enter  deferred
18    payment  plans for debtors of the agency and documentation of
19    this fact retained by the agency, where the deferred  payment
20    plan  is  likely  to increase the net amount collected by the
21    State.
22        (c)  State agencies  may  use  the  Comptroller's  Offset
23    System provided in Section 10.05 of the State Comptroller Act
24    for  the  collection of debts owed to the agency.  Until July
25    1, 2004, all debts that exceed $1,000 and are  more  than  90
26    days  past  due  shall  be placed in the Comptroller's Offset
27    System, unless the State agency shall  have  entered  into  a
28    deferred  payment  plan  or demonstrates to the Comptroller's
29    satisfaction that referral for offset is not cost effective.
30        (d)  State agencies  shall  develop  internal  procedures
31    whereby  agency  initiated  payments  to  its  debtors may be
32    offset without referral to the Comptroller's Offset System.
33        (e)  State agencies or the Comptroller may remove  claims
 
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 1    from  the Comptroller's Offset System, where such claims have
 2    been inactive for more than one year.
 3        (f)  State agencies  may  use  the  Comptroller's  Offset
 4    System  to  determine  if  any  State agency is attempting to
 5    collect debt from a contractor,  bidder,  or  other  proposed
 6    contracting party.
 7        (g)  Beginning  July  1,  2004, State agencies other than
 8    universities shall determine that a debt is uncollectible  in
 9    accordance  with  rules  adopted by the Auditor General under
10    Section 10 and shall turn over to the Debt Collection Unit of
11    the Auditor General's Office any debt that is  more  than  90
12    days   overdue   to  the  State.   Beginning  July  1,  2004,
13    universities may determine that a debt  is  uncollectible  in
14    accordance  with  rules  adopted by the Auditor General under
15    Section 10 and may turn over to the Debt Collection  Unit  of
16    the  Auditor  General's  Office any debt that is more than 90
17    days overdue to the State.   The  Department  of  Revenue  is
18    exempt   from  this  subsection  with  regard  to  debts  the
19    confidentiality  of  which  the  Department  of  Revenue   is
20    required by law to maintain.
21    (Source: P.A. 92-404, eff. 7-1-02.)

22        (30 ILCS 210/6) (from Ch. 15, par. 156)
23        Sec.  6.  Accounts Receivable Funds. The Comptroller with
24    the  approval  of  the  Governor  may  provide  by  rule  and
25    regulation for the creation of a special fund  or  funds  for
26    the  deposit of designated receipts by designated agencies to
27    be known as the Accounts Receivable Fund or Funds.   Deposits
28    shall be segregated by the creditor agency.  No deposit shall
29    be  made  unless  the  collection is of an account receivable
30    more than 120 days past due.
31        Seventy-five  percent  of  the  amounts  deposited   each
32    quarter  into such a special fund shall be transferred to the
33    General Revenue Fund or  such  other  fund  that  would  have
 
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 1    originally  received the receipts.  The remaining amounts may
 2    be  used  by  the  creditor  agency  for  collecting  overdue
 3    accounts pursuant to appropriation by the General Assembly.
 4        An agency, with the  approval  of  the  Comptroller,  may
 5    deposit  all  receipts into the General Revenue Fund or other
 6    such fund that would have originally received  the  receipts.
 7    Twenty-five  percent  of  such deposits made each quarter for
 8    accounts receivable more than 120  days  past  due  shall  be
 9    transferred  to  the  Accounts Receivable Fund or Funds.  The
10    transferred amounts may be used by the  creditor  agency  for
11    collecting  overdue accounts pursuant to appropriation by the
12    General Assembly.
13        In determining the types  of  receipts  to  be  deposited
14    pursuant  to  this  Section  the Comptroller and the Governor
15    shall consider the following factors:
16        (1)  The percentage of  such  receipts  estimated  to  be
17    uncollectible by the creditor agency;
18        (2)  The   percentage   of  such  receipts  certified  as
19    uncollectible by the Attorney General;
20        (3)  The  potential  increase  in  future  receipts,   as
21    estimated by the creditor agency, if 25% of amounts collected
22    are retained for collection efforts;
23        (4)  The  impact  of  the retention of 25% of receipts on
24    the relevant fund balances; and
25        (5)  Such  other  factors  as  the  Comptroller  and  the
26    Governor deem relevant.
27        This Section shall not apply to the Department of Revenue
28    nor the Department of Employment Security.
29        This Section is repealed July 1, 2004.  On that date  any
30    moneys  in  the  Accounts Receivable Funds created under this
31    Section shall be transferred into the General Revenue Fund.
32    (Source: P.A. 86-194.)

33        (30 ILCS 210/7) (from Ch. 15, par. 157)
 
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 1        Sec. 7.  Contracts for legal and  collection  assistance.
 2    Upon agreement of the Attorney General, agencies may contract
 3    for  legal  assistance  in  collecting past due accounts.  In
 4    addition, agencies may  contract  for  collection  assistance
 5    where  such  assistance  is determined by the agency to be in
 6    the best economic  interest  of  the  State.    Agencies  may
 7    utilize  monies  in  the  Accounts Receivable Fund to pay for
 8    such legal and collection assistance; provided, however, that
 9    no more than 20% of collections on an  account  may  be  paid
10    from  the  Accounts Receivable Fund as compensation for legal
11    and collection assistance on that  account.   If  the  amount
12    available  for  expenditure from the Accounts Receivable Fund
13    is insufficient  to  pay  the  cost  of  such  services,  the
14    difference,  up  to 40% of the total collections per account,
15    may be paid from other monies which may be available  to  the
16    Agency.
17        This  Section  is  repealed  July  1, 2004.  Any contract
18    entered into under this Section before that date shall remain
19    valid but may not be renewed.
20    (Source: P.A. 85-814.)

21        (30 ILCS 210/8) (from Ch. 15, par. 158)
22        Sec. 8.  Debt Collection Board.   There is created a Debt
23    Collection  Board  consisting  of  the  Director  of  Central
24    Management Services as chairman, the State  Comptroller,  and
25    the  Attorney  General,  or  their respective designees.  The
26    Board shall establish a centralized  collections  service  to
27    undertake  further  collection efforts on delinquent accounts
28    or claims of the State which have not been collected  through
29    the  reasonable  efforts  of  the  respective State agencies.
30    The Board shall promulgate rules and regulations pursuant  to
31    the  Illinois Administrative Procedure Act with regard to the
32    establishment   of   timetables   and   the   assumption   of
33    responsibility for agency accounts receivable that  have  not
 
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 1    been  collected  by  the agency, are not subject to a current
 2    repayment plan, or have not been certified  as  uncollectible
 3    as  of the date specified by the Board.  The Board shall make
 4    a final evaluation of those accounts and either (i) direct or
 5    conduct further collection activities when further collection
 6    efforts are in the best economic interest  of  the  State  or
 7    (ii)  in  accordance  with Section 2 of the Uncollected State
 8    Claims Act, certify the receivable as uncollectible or submit
 9    the account to the Attorney General for that certification.
10        The Board is empowered to  adopt  rules  and  regulations
11    subject  to  the  provisions  of  the Illinois Administrative
12    Procedure Act.
13        The  Board  is  empowered  to  enter  into  one  or  more
14    contracts with outside vendors with demonstrated capabilities
15    in the area of account collection.  The  contracts  shall  be
16    let  on  the  basis  of  competitive  proposals  secured from
17    responsible proposers.  The Board may require that vendors be
18    prequalified.  All contracts shall provide for  a  contingent
19    fee  based  on the age, nature, amount and type of delinquent
20    account.  The Board may  adopt  a  reasonable  classification
21    schedule  for  the various receivables.  The contractor shall
22    remit the amount collected, net of the contingent fee, to the
23    respective State agency which shall deposit  the  net  amount
24    received  into  the fund that would have received the receipt
25    had it been collected by the State agency.  No portion of the
26    collections shall be deposited into  an  Accounts  Receivable
27    Fund  established  under  Section  6 of this Act.   The Board
28    shall act only upon the unanimous vote of its members.
29        This Section is repealed July 1, 2004.
30    (Source: P.A. 89-511, eff. 1-1-97.)

31        (30 ILCS 210/10 new)
32        Sec. 10.  Debt Collection Unit of the  Auditor  General's
33    Office.
 
                            -15-     LRB093 02256 SJM 02264 b
 1        (a)  The  Auditor  General shall establish and maintain a
 2    division within his or her office to be  known  as  the  Debt
 3    Collection  Unit.   The  purpose  of  the  Unit  shall be the
 4    collection of debts more than 90 days overdue to  the  State.
 5    The  Auditor General shall adopt rules for the administration
 6    and procedures of the Unit.
 7        (b)  The  Auditor  General  shall  adopt  rules  for  the
 8    certification of debt collection specialists to  be  employed
 9    by the Unit.
10        (c)  The   Auditor   General   shall   adopt   rules  for
11    determining   when  a  debt  owed  to  a  State   agency   is
12    uncollectible.  The  rules  shall  be  used by State agencies
13    other than universities beginning July 1,  2004  and  may  be
14    used  by  universities beginning July 1, 2004. The Department
15    of Revenue is exempt from those rules with  regard  to  debts
16    the  confidentiality  of  which  the Department of Revenue is
17    required by law to maintain. The Auditor General may contract
18    with private collection  entities  and  attorneys  to  pursue
19    collection of a debt determined to be uncollectible.
20        (d)  Beginning  July 1, 2004, a State agency other than a
21    university shall turn over, and a university may  turn  over,
22    to the Unit for collection any debt that is more than 90 days
23    overdue  to  the  State.  The Department of Revenue is exempt
24    from turning over to the Unit any debt the confidentiality of
25    which the  Department  of  Revenue  is  required  by  law  to
26    maintain.  When  turning  over a debt, the State agency shall
27    also turn over all documents  and  records  relating  to  the
28    debt.  In  collecting  a debt, the Unit may exercise the same
29    rights and powers with regard to debt collection possessed by
30    the State agency that turned over the debt to the Unit.
31        (e)  The Debt Collection Fund is  created  as  a  special
32    fund  in  the  State  treasury.   Ten  percent  of the amount
33    collected on each debt by the Unit shall  be  deposited  into
34    the  Debt  Collection  Fund;  the remaining 90% of the amount
 
                            -16-     LRB093 02256 SJM 02264 b
 1    collected shall be deposited into the appropriate State  fund
 2    or  funds  to  which  the  debt was owed.  Moneys in the Debt
 3    Collection  Fund  shall  be   appropriated   only   for   the
 4    administrative  costs  of the Unit. At the end of each fiscal
 5    year, moneys remaining unappropriated in the Debt  Collection
 6    Fund shall be transferred into the General Revenue Fund.
 7        (f)  The  Attorney  General  and  State Comptroller shall
 8    assist  in  the  debt  collection  efforts  of  the  Unit  as
 9    requested by the Unit.
10        (g)  The Auditor General shall  report  semi-annually  to
11    the  General  Assembly  and  State  Comptroller upon the debt
12    collection efforts of the Unit.  Each report shall include an
13    analysis of the overdue debts owed to the State.

14        Section 180.  The Illinois Public Aid Code is amended  by
15    adding Section 10-10.6 as follows:

16        (305 ILCS 5/10-10.6 new)
17        Sec. 10-10.6. Tracking income and assets of obligors.
18        (a)  A transfer made by an obligor is fraudulent as to an
19    obligee if the obligor made the transfer:
20             (1)  with actual intent to hinder, delay, or defraud
21        any obligee of the obligor; or
22             (2)  without receiving a reasonably equivalent value
23        in exchange for the transfer.
24        (b)  In  determining actual intent under paragraph (1) of
25    subsection (a),  consideration  may  be  given,  among  other
26    factors, to whether:
27             (1)  the transfer was to an insider;
28             (2)  the  obligor  retained possession or control of
29        the property transferred after the transfer;
30             (3)  the transfer was disclosed or concealed;
31             (4)  before the transfer was made, the  obligor  had
32        been sued or threatened with suit;
 
                            -17-     LRB093 02256 SJM 02264 b
 1             (5)  the  transfer  was  of  substantially  all  the
 2        obligor's assets;
 3             (6)  the obligor absconded;
 4             (7)  the obligor removed or concealed assets;
 5             (8)  the  value of the consideration received by the
 6        obligor was reasonably equivalent to  the  value  of  the
 7        asset transferred;
 8             (9)  the  obligor  was insolvent or became insolvent
 9        shortly after the transfer was made;
10             (10)  the  transfer  occurred  shortly   before   or
11        shortly after a substantial debt was incurred; and
12             (11)  the  obligor  transferred the essential assets
13        of a business to a lienor who transferred the  assets  to
14        an insider of the obligor.
15        (c)  In  an  action  for  relief  against a transfer by a
16    child support obligor under this Act, the  State's  Attorney,
17    on behalf of a child support obligee, may obtain:
18             (1)  avoidance   of   the  transfer  to  the  extent
19        necessary to satisfy the obligee's claim;
20             (2)  an  attachment  or  other  provisional   remedy
21        against  the  asset  transferred or other property of the
22        transferee in accordance with the procedure prescribed by
23        the Code of Civil Procedure;
24             (3)  subject to applicable principles of equity  and
25        in accordance with applicable rules of civil procedure:
26                  (A)  an  injunction against further disposition
27             by the obligor or a  transferee,  or  both,  of  the
28             asset transferred or of other property;
29                  (B)  appointment  of  a receiver to take charge
30             of the asset transferred or of other property of the
31             transferee; or
32                  (C)  any other  relief  the  circumstances  may
33             require.
34        (d)  If  an  obligee  has  obtained a judgment on a claim
 
                            -18-     LRB093 02256 SJM 02264 b
 1    against the obligor, the State's Attorney, if  the  court  so
 2    orders,  may  levy  execution on the asset transferred or its
 3    proceeds.

 4        Section 185.  The Illinois Marriage  and  Dissolution  of
 5    Marriage  Act  is  amended by adding Sections 505.4, 714, and
 6    715 as follows:

 7        (750 ILCS 5/505.4 new)
 8        Sec. 505.4. Tracking income and assets of obligors.
 9        (a)  A transfer made by an obligor is fraudulent as to an
10    obligee if the obligor made the transfer:
11             (1)  with actual intent to hinder, delay, or defraud
12        any obligee of the obligor; or
13             (2)  without receiving a reasonably equivalent value
14        in exchange for the transfer.
15        (b)  In determining actual intent under paragraph (1)  of
16    subsection  (a),  consideration  may  be  given,  among other
17    factors, to whether:
18             (1)  the transfer was to an insider;
19             (2)  the obligor retained possession or  control  of
20        the property transferred after the transfer;
21             (3)  the transfer was disclosed or concealed;
22             (4)  before  the  transfer was made, the obligor had
23        been sued or threatened with suit;
24             (5)  the  transfer  was  of  substantially  all  the
25        obligor's assets;
26             (6)  the obligor absconded;
27             (7)  the obligor removed or concealed assets;
28             (8)  the value of the consideration received by  the
29        obligor  was  reasonably  equivalent  to the value of the
30        asset transferred;
31             (9)  the obligor was insolvent or  became  insolvent
32        shortly after the transfer was made;
 
                            -19-     LRB093 02256 SJM 02264 b
 1             (10)  the   transfer   occurred  shortly  before  or
 2        shortly after a substantial debt was incurred; and
 3             (11)  the obligor transferred the  essential  assets
 4        of  a  business to a lienor who transferred the assets to
 5        an insider of the obligor.
 6        (c)  In an action for relief  against  a  transfer  by  a
 7    child  support  obligor under this Act, the State's Attorney,
 8    on behalf of a child support obligee, may obtain:
 9             (1)  avoidance  of  the  transfer  to   the   extent
10        necessary to satisfy the obligee's claim;
11             (2)  an   attachment  or  other  provisional  remedy
12        against the asset transferred or other  property  of  the
13        transferee in accordance with the procedure prescribed by
14        the Code of Civil Procedure;
15             (3)  subject  to applicable principles of equity and
16        in accordance with applicable rules of civil procedure:
17                  (A)  an injunction against further  disposition
18             by  the  obligor  or  a  transferee, or both, of the
19             asset transferred or of other property;
20                  (B)  appointment of a receiver to  take  charge
21             of the asset transferred or of other property of the
22             transferee; or
23                  (C)  any  other  relief  the  circumstances may
24             require.
25        (d)  If an obligee has obtained a  judgment  on  a  claim
26    against  the  obligor,  the State's Attorney, if the court so
27    orders, may levy execution on the asset  transferred  or  its
28    proceeds.

29        (750 ILCS 5/714 new)
30        Sec.  714.  Willful  default  on  support;  penalties.  A
31    person  who  willfully defaults on an order for child support
32    issued by an  Illinois  court  or  authorized  administrative
33    proceeding  may  be  subject  to  summary  criminal  contempt
 
                            -20-     LRB093 02256 SJM 02264 b
 1    proceedings.
 2        In  addition  to other remedies provided by law regarding
 3    the suspension of  professional  and  occupational  licenses,
 4    recreational  licenses,  and  driver's  licenses,  the  State
 5    licensing  agency  shall  have  the  authority to withhold or
 6    suspend,  or  to  restrict  the  use  of  driver's  licenses,
 7    professional and occupational licenses or  certificates,  and
 8    recreational licenses of individuals owing overdue support or
 9    failing,  after  receiving appropriate notice, to comply with
10    subpoenas or warrants relating to paternity or child  support
11    proceedings.  The suspension shall remain in effect until all
12    defaults on an order for child support are satisfied.
13        This Section applies to an order for child support issued
14    under the Illinois Public Aid Code, the Illinois Marriage and
15    Dissolution of Marriage Act, the Illinois  Parentage  Act  of
16    1984,  the  Revised Uniform Reciprocal Enforcement of Support
17    Act, and the Uniform Interstate Family Support Act.

18        (750 ILCS 5/715 new)
19        Sec. 715.  Information to  locate  support  obligors  and
20    putative  fathers.  The  Illinois  Department of Public Aid's
21    Child and Spouse Support Unit, the State's Attorney,  or  any
22    other  appropriate  State  official  may  request  and  shall
23    receive  from  employers,  labor unions, telephone companies,
24    and  utility  companies   location   information   concerning
25    putative  fathers and noncustodial parents for the purpose of
26    establishing a child's paternity or establishing,  enforcing,
27    or  modifying  a  child support obligation.  In this Section,
28    "location  information"  means  information  about  (i)   the
29    physical  whereabouts  of  a  putative father or noncustodial
30    parent, (ii) the putative  father  or  noncustodial  parent's
31    employer,  or (iii) the salary, wages, and other compensation
32    paid and  the  health  insurance  coverage  provided  to  the
33    putative father or noncustodial parent by an employer or by a
 
                            -21-     LRB093 02256 SJM 02264 b
 1    labor  union  of  which  the  putative father or noncustodial
 2    parent is a member.

 3        Section 190.  The Non-Support Punishment Act  is  amended
 4    by adding Section 67 as follows:

 5        (750 ILCS 16/67 new)
 6        Sec. 67. Tracking income and assets of obligors.
 7        (a)  A transfer made by an obligor is fraudulent as to an
 8    obligee if the obligor made the transfer:
 9             (1)  with actual intent to hinder, delay, or defraud
10        any obligee of the obligor; or
11             (2)  without receiving a reasonably equivalent value
12        in exchange for the transfer.
13        (b)  In  determining actual intent under paragraph (1) of
14    subsection (a),  consideration  may  be  given,  among  other
15    factors, to whether:
16             (1)  the transfer was to an insider;
17             (2)  the  obligor  retained possession or control of
18        the property transferred after the transfer;
19             (3)  the transfer was disclosed or concealed;
20             (4)  before the transfer was made, the  obligor  had
21        been sued or threatened with suit;
22             (5)  the  transfer  was  of  substantially  all  the
23        obligor's assets;
24             (6)  the obligor absconded;
25             (7)  the obligor removed or concealed assets;
26             (8)  the  value of the consideration received by the
27        obligor was reasonably equivalent to  the  value  of  the
28        asset transferred;
29             (9)  the  obligor  was insolvent or became insolvent
30        shortly after the transfer was made;
31             (10)  the  transfer  occurred  shortly   before   or
32        shortly after a substantial debt was incurred; and
 
                            -22-     LRB093 02256 SJM 02264 b
 1             (11)  the  obligor  transferred the essential assets
 2        of a business to a lienor who transferred the  assets  to
 3        an insider of the obligor.
 4        (c)  In  an  action  for  relief  against a transfer by a
 5    child support obligor under this Act, the  State's  Attorney,
 6    on behalf of a child support obligee, may obtain:
 7             (1)  avoidance   of   the  transfer  to  the  extent
 8        necessary to satisfy the obligee's claim;
 9             (2)  an  attachment  or  other  provisional   remedy
10        against  the  asset  transferred or other property of the
11        transferee in accordance with the procedure prescribed by
12        the Code of Civil Procedure;
13             (3)  subject to applicable principles of equity  and
14        in accordance with applicable rules of civil procedure:
15                  (A)  an  injunction against further disposition
16             by the obligor or a  transferee,  or  both,  of  the
17             asset transferred or of other property;
18                  (B)  appointment  of  a receiver to take charge
19             of the asset transferred or of other property of the
20             transferee; or
21                  (C)  any other  relief  the  circumstances  may
22             require.
23        (d)  If  an  obligee  has  obtained a judgment on a claim
24    against the obligor, the State's Attorney, if  the  court  so
25    orders,  may  levy  execution on the asset transferred or its
26    proceeds.

27        Section 200.  The Uniform Interstate Family  Support  Act
28    is amended by changing Section 318 as follows:

29        (750 ILCS 22/318)
30        Sec. 318.  Assistance with discovery.  A tribunal of this
31    State may:
32        (1)  request  a  tribunal  of  another state to assist in
 
                            -23-     LRB093 02256 SJM 02264 b
 1    obtaining discovery; and
 2        (2)  upon request, compel  a  person  over  whom  it  has
 3    jurisdiction  to  respond  to  a  discovery order issued by a
 4    tribunal of another state;.
 5        (3)  upon request by a tribunal of another state, issue a
 6    subpoena or a   subpoena  duces  tecum  (in  the  case  of  a
 7    tribunal  authorized to issue  subpoenas) or direct the clerk
 8    of the circuit court to issue a subpoena or a  subpoena duces
 9    tecum (in the case of the circuit court) requiring  a  person
10    in  this State to appear at a deposition or before a tribunal
11    and  answer questions  or produce documents or other tangible
12    things for the purpose of obtaining    information  regarding
13    the  person's  assets,  income, and ability to pay a  support
14    order or judgment entered in the other state; and
15        (4)  request a tribunal of  another  state  to  issue  or
16    cause  to  be  issued  a   subpoena or a subpoena duces tecum
17    requiring a person in  the  other  state  to    appear  at  a
18    deposition  or  before  a  tribunal  in that state and answer
19    questions  or produce documents or other tangible things  for
20    the  purpose of obtaining  information regarding the person's
21    assets, income, and ability  to  pay  a    support  order  or
22    judgment entered in this State.
23        The  clerk of the circuit court shall issue a subpoena or
24    a subpoena  duces tecum when directed to do so by the circuit
25    court in accordance with  this Section.
26    (Source: P.A. 88-550, eff. date changed from 1-1-95 to 1-1-96
27    by P.A. 88-691.)

28        Section 205.  The  Illinois  Parentage  Act  of  1984  is
29    amended by adding Section 15.3 as follows:

30        (750 ILCS 45/15.3 new)
31        Sec. 15.3. Tracking income and assets of obligors.
32        (a)  A transfer made by an obligor is fraudulent as to an
 
                            -24-     LRB093 02256 SJM 02264 b
 1    obligee if the obligor made the transfer:
 2             (1)  with actual intent to hinder, delay, or defraud
 3        any obligee of the obligor; or
 4             (2)  without receiving a reasonably equivalent value
 5        in exchange for the transfer.
 6        (b)  In  determining actual intent under paragraph (1) of
 7    subsection (a),  consideration  may  be  given,  among  other
 8    factors, to whether:
 9             (1)  the transfer was to an insider;
10             (2)  the  obligor  retained possession or control of
11        the property transferred after the transfer;
12             (3)  the transfer was disclosed or concealed;
13             (4)  before the transfer was made, the  obligor  had
14        been sued or threatened with suit;
15             (5)  the  transfer  was  of  substantially  all  the
16        obligor's assets;
17             (6)  the obligor absconded;
18             (7)  the obligor removed or concealed assets;
19             (8)  the  value of the consideration received by the
20        obligor was reasonably equivalent to  the  value  of  the
21        asset transferred;
22             (9)  the  obligor  was insolvent or became insolvent
23        shortly after the transfer was made;
24             (10)  the  transfer  occurred  shortly   before   or
25        shortly after a substantial debt was incurred; and
26             (11)  the  obligor  transferred the essential assets
27        of a business to a lienor who transferred the  assets  to
28        an insider of the obligor.
29        (c)  In  an  action  for  relief  against a transfer by a
30    child support obligor under this Act, the  State's  Attorney,
31    on behalf of a child support obligee, may obtain:
32             (1)  avoidance   of   the  transfer  to  the  extent
33        necessary to satisfy the obligee's claim;
34             (2)  an  attachment  or  other  provisional   remedy
 
                            -25-     LRB093 02256 SJM 02264 b
 1        against  the  asset  transferred or other property of the
 2        transferee in accordance with the procedure prescribed by
 3        the Code of Civil Procedure;
 4             (3)  subject to applicable principles of equity  and
 5        in accordance with applicable rules of civil procedure:
 6                  (A)  an  injunction against further disposition
 7             by the obligor or a  transferee,  or  both,  of  the
 8             asset transferred or of other property;
 9                  (B)  appointment  of  a receiver to take charge
10             of the asset transferred or of other property of the
11             transferee; or
12                  (C)  any other  relief  the  circumstances  may
13             require.
14        (d)  If  an  obligee  has  obtained a judgment on a claim
15    against the obligor, the State's Attorney, if  the  court  so
16    orders,  may  levy  execution on the asset transferred or its
17    proceeds.

18        Section 999.  Effective date.  This Act takes effect upon
19    becoming law.
 
                            -26-     LRB093 02256 SJM 02264 b
 1                                INDEX
 2               Statutes amended in order of appearance
 3    20 ILCS 2515/2.4 new
 4    30 ILCS 105/5.595 new
 5    30 ILCS 205/2             from Ch. 15, par. 102
 6    30 ILCS 210/2             from Ch. 15, par. 152
 7    30 ILCS 210/4             from Ch. 15, par. 154
 8    30 ILCS 210/5             from Ch. 15, par. 155
 9    30 ILCS 210/6             from Ch. 15, par. 156
10    30 ILCS 210/7             from Ch. 15, par. 157
11    30 ILCS 210/8             from Ch. 15, par. 158
12    30 ILCS 210/10 new
13    305 ILCS 5/10-10.6 new
14    750 ILCS 5/505.4 new
15    750 ILCS 5/714 new
16    750 ILCS 5/715 new
17    750 ILCS 16/67 new
18    750 ILCS 22/318
19    750 ILCS 45/15.3 new