093_SB1449

 
                                     LRB093 07997 SJM 08193 b

 1        AN ACT concerning State finance.

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

 4        Section 5.  The Illinois State Collection Act of 1986  is
 5    amended by changing Section 8 as follows:

 6        (30 ILCS 210/8) (from Ch. 15, par. 158)
 7        Sec. 8.  Debt Collection Board.
 8        (a)  There  is created a Debt Collection Board consisting
 9    of the Director of Central Management Services  as  chairman,
10    the  State  Comptroller,  and  the Attorney General, or their
11    respective  designees.    The   Board   shall   establish   a
12    centralized   collections   service   to   undertake  further
13    collection efforts on delinquent accounts or  claims  of  the
14    State  which  have  not been collected through the reasonable
15    efforts of the respective State agencies.   The  Board  shall
16    promulgate  rules  and  regulations  pursuant to the Illinois
17    Administrative Procedure Act with regard to the establishment
18    of timetables and the assumption of responsibility for agency
19    accounts receivable that  have  not  been  collected  by  the
20    agency,  are not subject to a current repayment plan, or have
21    not been certified as uncollectible as of the date  specified
22    by  the  Board.   The  Board shall make a final evaluation of
23    those accounts and  either  (i)  direct  or  conduct  further
24    collection  activities when further collection efforts are in
25    the best economic interest of the State or (ii) in accordance
26    with Section 2 of the Uncollected State Claims  Act,  certify
27    the  receivable as uncollectible or submit the account to the
28    Attorney General for that certification.
29        The Board is empowered to  adopt  rules  and  regulations
30    subject  to  the  provisions  of  the Illinois Administrative
31    Procedure Act.
 
                            -2-      LRB093 07997 SJM 08193 b
 1        The  Board  is  empowered  to  enter  into  one  or  more
 2    contracts with  outside  private  vendors  with  demonstrated
 3    capabilities  in  the  area  of  account  collection  for the
 4    collection of the delinquent accounts. The contracts shall be
 5    let on  the  basis  of  competitive  proposals  secured  from
 6    responsible proposers.  The Board may require that vendors be
 7    prequalified.   All  contracts shall provide for a contingent
 8    fee based on the age, nature, amount and type  of  delinquent
 9    account.   The  Board  may  adopt a reasonable classification
10    schedule for the various receivables.  The  contractor  shall
11    remit the amount collected, net of the contingent fee, to the
12    respective  State  agency  which shall deposit the net amount
13    received into the fund that would have received  the  receipt
14    had it been collected by the State agency.  No portion of the
15    collections  shall  be  deposited into an Accounts Receivable
16    Fund established under Section 6 of this  Act.     The  Board
17    shall act only upon the unanimous vote of its members.
18        (b)  After  accounts  have been certified by the Board or
19    the Attorney General as uncollectible under this Section, the
20    State Comptroller may sell the debts to one or  more  outside
21    private  vendors or may enter into one or more contracts with
22    outside  private  vendors  for  the  purpose  of  pursuing  a
23    last-call collection effort to  collect  these  debts.    All
24    contracts  with  outside  private  vendors for the purpose of
25    pursuing a last-call collection effort to collect  the  debts
26    shall provide for a contingent fee.
27        Beginning on the effective date of this amendatory Act of
28    the  93rd General Assembly, the outside private vendors shall
29    remit  to  the  State  Comptroller  either  (i)  all  amounts
30    collected under a contract, net of any  contingent  fees,  or
31    (ii)  the  purchase  price  for  debts sold. Beginning on the
32    effective date of this amendatory Act  of  the  93rd  General
33    Assembly,  the  State  Comptroller  shall  deposit  the money
34    received  under  this  subsection   (b)   into   the   Budget
 
                            -3-      LRB093 07997 SJM 08193 b
 1    Stabilization Fund.
 2    (Source: P.A. 89-511, eff. 1-1-97.)

 3        Section  99.  Effective date.  This Act takes effect upon
 4    becoming law.