HB0466 EnrolledLRB097 03293 PJG 43330 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Uncollected State Claims Act is amended by
5changing Sections 2 and 2.1 as follows:
 
6    (30 ILCS 205/2)  (from Ch. 15, par. 102)
7    Sec. 2. (a) When any State agency is unable to collect any
8claim or account receivable of $1,000 or more due the agency
9after having pursued the procedure prescribed by law or
10applicable rules and regulations for the collection thereof or,
11if no procedure is so prescribed, then after having undertaken
12all reasonable and appropriate procedures available to the
13agency to effectuate collection, the State agency shall request
14the Attorney General to certify the claim or account receivable
15to be uncollectible.
16    (b) Each request to the Attorney General asking that a
17claim or account receivable of $1,000 or more be declared
18uncollectible shall be in a format prescribed by the Attorney
19General and shall include at a minimum the following
20information: debtor's name, debtor's social security number or
21comparable identifying number, debtor's last known address,
22nature of the debt, efforts made to collect the debt and the
23time period covered by those efforts, the age of the debt, the

 

 

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1age of the debtor and the specific reason the State agency
2believes the debt to be uncollectible. Nothing in this
3provision should be interpreted as a limitation on the
4authority of the Attorney General to require additional
5information that he may find to be necessary to evaluate
6requests sent him pursuant to this provision.
7    (c) Claims or accounts receivable of less than $1,000 may
8be certified as uncollectible by the agency when the agency
9determines that further collection efforts are not in the best
10economic interest of the State. Such determination shall be
11made in accordance with rules of the Comptroller.
12    (d) If any item of information required by this provision
13or any item of additional information required by the Attorney
14General is not available, the State agency shall specifically
15so state in its request to the Attorney General asking that the
16debt be declared uncollectible.
17    (e) A State agency participating in a federal student loan
18program may remove student loans from its records by assigning
19or referring such student loans to the federal government for
20collection pursuant to the procedures prescribed by federal
21laws and regulations.
22    (f) Claims and receivables due from another State agency
23may be written off if the agency has pursued all reasonable
24means of collection and if the amount (1) is payable from an
25appropriation which has lapsed; (2) may not properly be charged
26against a current appropriation; and (3) was not originally

 

 

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1payable from federal funds, a trust fund or locally held funds.
2Each agency which writes off claims or receivables pursuant to
3this subparagraph shall submit a listing of all such write-offs
4to the Comptroller within 60 days of taking such action.
5    (g) Debts certified as uncollectible may be reopened for
6collection by an agency upon the approval of the Attorney
7General.
8    (h) Agencies shall submit a list of debts certified as
9uncollectible to the Comptroller in the form and manner
10specified by the Comptroller. The Comptroller shall take
11reasonable steps to accept information on agency computer
12tapes.
13    (i) After compliance with all provisions of this Section,
14an agency may delete from its records debts certified as
15uncollectible as follows:
16        (1) When the debt is less than $1,000, immediately upon
17    certification by the agency;
18        (2) For debts of $1,000 or more that are less than 5
19    years old, when the agency determines pursuant to rules and
20    regulations promulgated by the Comptroller that such
21    deletion is in the best economic interest of the State;
22        (3) For debts of $1,000 or more, when, the debt is more
23    than 5 years old or, in the case of a public university,
24    more than 8 years old.
25    (j) The Attorney General shall report to the General
26Assembly by February 1 of each year the following:

 

 

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1        (1) the total number and dollar amount of debts
2    referred to him for collection in the preceding calendar
3    year;
4        (2) the total amount actually collected;
5        (3) the number of cases by agency.
6    (k) Each State agency shall report in its annual report the
7total amount and the number of claims due and payable to the
8State. Each agency shall also describe in its annual report the
9method used in collecting debts, whether by a private
10collection service or by the Attorney General.
11    (l) The provisions of Section 2505-250 of the Department of
12Revenue Law (20 ILCS 2505/2505-250) take precedence over the
13provisions of this Section.
14(Source: P.A. 91-239, eff. 1-1-00.)
 
15    (30 ILCS 205/2.1)
16    Sec. 2.1. Sale of debts certified as uncollectible. After
17accounts have been certified by the Attorney General, or the
18State agency for accounts of less than $1,000, as uncollectible
19pursuant to this Act, the Department of Revenue may sell the
20debts to one or more outside private vendors. Sales shall be
21conducted under rules adopted by the Department of Revenue
22using a request for proposals procedure similar to that
23procedure under the Illinois Procurement Code. The outside
24private vendors shall remit to the Department of Revenue the
25purchase price for debts sold under this Section. The

 

 

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1Department of Revenue shall deposit the money received under
2this Section into the General Revenue Fund. The State
3Comptroller shall provide the Department of Revenue with any
4information that the Department requests for the purpose of
5administering this Section. This Section does not apply to any
6tax debt owing to the Department of Revenue. This Section does
7not apply to (i) debts, in the case of a public university,
8when the debt is less than 8 years old; (ii) child support
9debts enforced by the Department of Healthcare and Family
10Services pursuant to Title IV-D of the federal Social Security
11Act and Article X of the Illinois Public Aid Code; and (iii)
12debts that are enforced by the Department of Employment
13Security and owed to any federal account, including but not
14limited to the Unemployment Trust Fund, and penalties and
15interest assessed under the Unemployment Insurance Act.
16(Source: P.A. 96-1435, eff. 8-16-10.)
 
17    Section 10. The Illinois State Collection Act of 1986 is
18amended by renumbering and changing Section 9 added by Public
19Act 96-1383 and Section 9 added by Public Act 96-1435 as
20follows:
 
21    (30 ILCS 210/10.1)
22    Sec. 10.1 9. Collection agency fees. Except where
23prohibited by federal law or regulation, in the case of any
24liability referred to a collection agency on or after July 1,

 

 

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12010, any fee charged to the State by the collection agency (i)
2may not exceed 25% for a first placement of the underlying
3liability referred to the collection agency unless the
4liability is for a tax debt, (ii) is considered an additional
5liability owed to the State, (iii) is immediately subject to
6all collection procedures applicable to the liability referred
7to the collection agency, and (iv) must be separately stated in
8any statement or notice of the liability issued by the
9collection agency to the debtor. The fee limitations of this
10Section do not apply to a second, third, or subsequent
11placement or to litigation activities.
12(Source: P.A. 96-1383, eff. 1-1-11; revised 9-7-10.)
 
13    (30 ILCS 210/10.2)
14    Sec. 10.2 9. Deferral and compromise of past due debt.
15    (a) In this Section, "past due debt" means any debt owed to
16the State that has been outstanding for more than 12 months.
17"Past due debt" does not include any debt if any of the actions
18required under this Section would violate federal law or
19regulation.
20    (b) State agencies may enter into a deferred payment plan
21for the purpose of satisfying a past due debt. Except for a
22deferred payment plan entered into by any Illinois public
23university, as defined in Section 10 of the Illinois Prepaid
24Tuition Act, or by the Illinois Department of Transportation or
25for debts owed to the Illinois Department of Transportation for

 

 

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1deposit into the Road Fund, the The deferred payment plan must
2meet the following requirements:
3        (1) The term of the deferred payment plan may not
4    exceed 2 years.
5        (2) The first payment of the deferred payment plan must
6    be at least 10% of the total amount due.
7        (3) All subsequent monthly payments for the deferred
8    payment plan must be assessed as equal monthly principal
9    payments, together with interest.
10        (4) The deferred payment plan must include interest at
11    a rate that is the same as the interest required under the
12    State Prompt Payment Act.
13        (5) The deferred payment plan must be approved by the
14    Secretary or Director of the State agency.
15    (c) State agencies may compromise past due debts. Any
16action taken by a State agency to compromise a past due debt,
17other than an action taken by an Illinois public university, as
18defined in Section 10 of the Illinois Prepaid Tuition Act, to
19compromise past due debt, must meet the following requirements:
20        (1) The amount of the compromised debt shall be no less
21    than 80% of the total of the past due debt.
22        (2) Once a past due debt has been compromised, the
23    debtor must remit to the State agency the total amount of
24    the compromised debt. However, the State agency may collect
25    the compromised debt through a payment plan not to exceed 6
26    months. If the State agency accepts the compromised debt

 

 

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1    through a payment plan, then the compromised debt shall be
2    subject to the same rate of interest as required under the
3    State Prompt Payment Act.
4        (3) Before a State agency accepts a compromised debt,
5    the amount of the compromised debt must be approved by the
6    Secretary or Director of the agency Department of Revenue.
7    (d) State agencies may sell a past due debt to one or more
8outside private vendors. Sales shall be conducted under rules
9adopted by the Department of Revenue using a request for
10proposals procedure similar to that procedure under the
11Illinois Procurement Code. The outside private vendors shall
12remit to the State agency the purchase price for debts sold
13under this subsection.
14    (e) The State agency shall deposit all amounts received
15under this Section into the General Revenue Fund. For Illinois
16public universities, as defined in Section 10 of the Illinois
17Prepaid Tuition Act, the requirement of this subsection (e)
18applies to amounts received from the sale of past due debt and
19does not apply to amounts received under a deferred payment
20plan or a compromised debt payment plan.
21    (f) This Section does not apply to any tax debt owing to
22the Department of Revenue.
23    (g) This Section does not apply to child support debts
24enforced by the Department of Healthcare and Family Services
25pursuant to Title IV-D of the federal Social Security Act and
26Article X of the Illinois Public Aid Code.

 

 

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1    (h) This Section does not apply to debts that are enforced
2by the Department of Employment Security and owed to any
3federal account, including but not limited to the Unemployment
4Trust Fund, and penalties and interest assessed under the
5Unemployment Insurance Act.
6(Source: P.A. 96-1435, eff. 8-16-10; revised 9-7-10.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.