HB4570 EngrossedLRB097 19030 PJG 64269 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 Illinois State Collection Act of 1986 is
5amended by changing Section 5 as follows:
 
6    (30 ILCS 210/5)  (from Ch. 15, par. 155)
7    Sec. 5. Rules; payment plans; offsets.
8    (a) Until July 1, 2004 for the Department of Public Aid and
9July 1, 2005 for Universities and all other State agencies,
10State agencies shall adopt rules establishing formal due dates
11for amounts owing to the State and for the referral of
12seriously past due accounts to private collection agencies,
13unless otherwise expressly provided by law or rule, except that
14on and after July 1, 2005, the Department of Employment
15Security may continue to refer to private collection agencies
16past due amounts that are exempt from subsection (g). Such
17procedures shall be established in accord with sound business
18practices.
19    (b) Until July 1, 2004 for the Department of Public Aid and
20July 1, 2005 for Universities and all other State agencies,
21agencies may enter deferred payment plans for debtors of the
22agency and documentation of this fact retained by the agency,
23where the deferred payment plan is likely to increase the net

 

 

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1amount collected by the State, except that, on and after July
21, 2005, the Department of Employment Security may continue to
3enter deferred payment plans for debts that are exempt from
4subsection (g).
5    (c) Until July 1, 2004 for the Department of Public Aid and
6July 1, 2005 for Universities and all other State agencies,
7State agencies may use the Comptroller's Offset System provided
8in Section 10.05 of the State Comptroller Act for the
9collection of debts owed to the agency, except that, on and
10after July 1, 2005, the Department of Employment Security may
11continue to use the Comptroller's offset system to collect
12amounts that are exempt from subsection (g).
13    (c-1) All debts that exceed $250 $1,000 and are more than
1490 days past due shall be placed in the Comptroller's Offset
15System, unless (i) the State agency shall have entered into a
16deferred payment plan or demonstrates to the Comptroller's
17satisfaction that referral for offset is not cost effective; or
18(ii) the State agency is a university that elects to place in
19the Comptroller's Offset System only debts that exceed $1,000
20and are more than 90 days past due. All debt, and maintenance
21of that debt, that is placed in the Comptroller's Offset System
22must be submitted electronically to the office of the
23Comptroller. Any exception to this requirement must be approved
24in writing by the Comptroller.
25    (c-2) Upon processing a deduction to satisfy a debt owed to
26a university or a State agency and placed in the Comptroller's

 

 

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1Offset System in accordance with subsection (c-1), the
2Comptroller shall give written notice to the person subject to
3the offset. The notice shall inform the person that he or she
4may make a written protest to the Comptroller within 60 days
5after the Comptroller has given notice. The protest shall
6include the reason for contesting the deduction and any other
7information that will enable the Comptroller to determine the
8amount due and payable. If the person subject to the offset has
9not made a written protest within 60 days after the Comptroller
10has given notice, or if a final disposition is made concerning
11the deduction, the Comptroller shall pay the deduction to the
12university or the State agency.
13    (c-3) For a debt owed to a university or a State agency and
14placed in the Comptroller's Offset System in accordance with
15subsection (c-1), the Comptroller shall deduct, from a warrant
16or other payment, its processing charge and the amount
17certified as necessary to satisfy, in whole or in part, the
18debt owed to the university or the State agency. The
19Comptroller shall deduct a processing charge of up to $15 per
20transaction for each offset and such charges shall be deposited
21into the Comptroller Debt Recovery Trust Fund.
22    (d) State agencies shall develop internal procedures
23whereby agency initiated payments to its debtors may be offset
24without referral to the Comptroller's Offset System.
25    (e) State agencies or the Comptroller may remove claims
26from the Comptroller's Offset System, where such claims have

 

 

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1been inactive for more than one year.
2    (f) State agencies may use the Comptroller's Offset System
3to determine if any State agency is attempting to collect debt
4from a contractor, bidder, or other proposed contracting party.
5    (g) Beginning July 1, 2004 for the Departments of Public
6Aid (now Healthcare and Family Services) and Employment
7Security and July 1, 2005 for Universities and other State
8agencies, State agencies shall refer to the Department of
9Revenue Debt Collection Bureau (the Bureau) all debt to the
10State, provided that the debt satisfies the requirements for
11referral of delinquent debt as established by rule by the
12Department of Revenue.
13    (h) The Department of Healthcare and Family Services shall
14be exempt from the requirements of this Section with regard to
15child support debts, the collection of which is governed by the
16requirements of Title IV, Part D of the federal Social Security
17Act. The Department of Healthcare and Family Services may refer
18child support debts to the Bureau, provided that the debt
19satisfies the requirements for referral of delinquent debt as
20established by rule by the Department of Revenue. The Bureau
21shall use all legal means available to collect child support
22debt, including those authorizing the Department of Revenue to
23collect debt and those authorizing the Department of Healthcare
24and Family Services to collect debt. All such referred debt
25shall remain an obligation under the Department of Healthcare
26and Family Services' Child Support Enforcement Program subject

 

 

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1to the requirements of Title IV, Part D of the federal Social
2Security Act, including the continued use of federally mandated
3enforcement remedies and techniques by the Department of
4Healthcare and Family Services.
5    (h-1) The Department of Employment Security is exempt from
6subsection (g) with regard to debts to any federal account,
7including but not limited to the Unemployment Trust Fund, and
8penalties and interest assessed under the Unemployment
9Insurance Act. The Department of Employment Security may refer
10those debts to the Bureau, provided the debt satisfies the
11requirements for referral of delinquent debt as established by
12rule by the Department of Revenue. The Bureau shall use all
13legal means available to collect the debts, including those
14authorizing the Department of Revenue to collect debt and those
15authorizing the Department of Employment Security to collect
16debt. All referred debt shall remain an obligation to the
17account to which it is owed.
18    (i) All debt referred to the Bureau for collection shall
19remain the property of the referring agency. The Bureau shall
20collect debt on behalf of the referring agency using all legal
21means available, including those authorizing the Department of
22Revenue to collect debt and those authorizing the referring
23agency to collect debt.
24    (j) No debt secured by an interest in real property granted
25by the debtor in exchange for the creation of the debt shall be
26referred to the Bureau. The Bureau shall have no obligation to

 

 

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1collect debts secured by an interest in real property.
2    (k) Beginning July 1, 2003, each agency shall collect and
3provide the Bureau information regarding the nature and details
4of its debt in such form and manner as the Department of
5Revenue shall require.
6    (l) For all debt accruing after July 1, 2003, each agency
7shall collect and transmit such debtor identification
8information as the Department of Revenue shall require.
9(Source: P.A. 95-331, eff. 8-21-07.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.