Full Text of HB2263 96th General Assembly
HB2263sam003 96TH GENERAL ASSEMBLY | Sen. Dan Kotowski Filed: 11/16/2010
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| 1 | | AMENDMENT TO HOUSE BILL 2263
| 2 | | AMENDMENT NO. ______. Amend House Bill 2263, AS AMENDED, by | 3 | | replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The Uncollected State Claims Act is amended by | 6 | | changing Section 2.1 as follows: | 7 | | (30 ILCS 205/2.1) | 8 | | Sec. 2.1. Sale of debts certified as uncollectible. | 9 | | (a) Except as otherwise provided in this Section, after | 10 | | After accounts have been certified by the Attorney General, or | 11 | | the State agency for accounts of less than $1,000, as | 12 | | uncollectible pursuant to this Act, the Department of Revenue | 13 | | may sell the debts to one or more outside private vendors. | 14 | | Sales shall be conducted under rules adopted by the Department | 15 | | of Revenue using a request for proposals procedure similar to | 16 | | that procedure under the Illinois Procurement Code. The outside |
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| 1 | | private vendors shall remit to the Department of Revenue the | 2 | | purchase price for debts sold under this Section. The | 3 | | Department of Revenue shall deposit the money received under | 4 | | this Section into the General Revenue Fund. The State | 5 | | Comptroller shall provide the Department of Revenue with any | 6 | | information that the Department requests for the purpose of | 7 | | administering this Section. This Section does not apply to any | 8 | | tax debt owing to the Department of Revenue.
| 9 | | (b) Debts owing to an Illinois public university, as | 10 | | defined in Section 10 of the Illinois Prepaid Tuition Act (110 | 11 | | ILCS 979/10), may be sold only by the university. Sales under | 12 | | this subsection shall be conducted using a request for | 13 | | proposals procedure similar to the procedure established under | 14 | | the Illinois Procurement Code. Any amounts remitted to a | 15 | | university under this subsection shall be retained by the | 16 | | university. | 17 | | (c) Debts owing to the Illinois Department of | 18 | | Transportation may be sold only by the Illinois Department of | 19 | | Transportation. Sales under this subsection shall be conducted | 20 | | using a request for proposals procedure similar to the | 21 | | procedure established under the Illinois Procurement Code. Any | 22 | | amounts remitted to the Department of Transportation under this | 23 | | subsection shall be deposited in the Road Fund. | 24 | | (d) This Section does not apply to child support debts | 25 | | enforced by the Department
of Healthcare and Family Services | 26 | | pursuant to Title IV-D of the federal Social Security Act and |
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| 1 | | Article X of the Illinois Public Aid Code. | 2 | | (e) This Section does not apply to debts enforced by the | 3 | | Department of Employment Security and owed to any federal | 4 | | account, including but not limited to the Unemployment Trust | 5 | | Fund and penalties and interest assessed under the Unemployment | 6 | | Insurance Act. | 7 | | (f) A debt may not be sold under this Section if the sale | 8 | | of that debt would violate any federal law or federal | 9 | | regulation. | 10 | | (Source: P.A. 96-1435, eff. 8-16-10.) | 11 | | Section 10. The Illinois State Collection Act of 1986 is | 12 | | amended by changing Sections 10.1 and 10.2 as follows: | 13 | | (30 ILCS 210/10.1) | 14 | | Sec. 10.1 9 . Collection agency fees. Except where | 15 | | prohibited by federal law or regulation, in the case of any | 16 | | liability referred to a collection agency on or after July 1, | 17 | | 2010, any fee charged to the State by the collection agency (i) | 18 | | may not exceed 25% for a first placement of the underlying | 19 | | liability referred to the collection agency unless the | 20 | | liability is for a tax debt, (ii) is considered an additional | 21 | | liability owed to the State, (iii) is immediately subject to | 22 | | all collection procedures applicable to the liability referred | 23 | | to the collection agency, and (iv) must be separately stated in | 24 | | any statement or notice of the liability issued by the |
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| 1 | | collection agency to the debtor. The fee limitations of this | 2 | | Section do not apply to a second, third, or subsequent | 3 | | placement or to litigation activities.
| 4 | | (Source: P.A. 96-1383, eff. 1-1-11; revised 9-7-10.)
| 5 | | (30 ILCS 210/10.2)
| 6 | | Sec. 10.2 9 . Deferral and compromise of past due debt. | 7 | | (a) In this Section, "past due debt" means any debt owed to | 8 | | the State that has been outstanding for more than 12 months. | 9 | | "Past due debt" does not include any debt if any of the actions | 10 | | required under this Section would violate federal law or | 11 | | regulation. | 12 | | (a-5) This Section does not apply to child support debts | 13 | | enforced by the Department
of Healthcare and Family Services | 14 | | pursuant to Title IV-D of the federal Social Security Act and | 15 | | Article X of the Illinois Public Aid Code. | 16 | | (a-10) This Section does not apply to debts enforced by the | 17 | | Department of Employment Security and owed to any federal | 18 | | account, including but not limited to the Unemployment Trust | 19 | | Fund and penalties and interest assessed under the Unemployment | 20 | | Insurance Act. | 21 | | (b) State agencies may enter into a deferred payment plan | 22 | | for the purpose of satisfying a past due debt. The deferred | 23 | | payment plan must meet the following requirements: | 24 | | (1) The term of the deferred payment plan may not | 25 | | exceed 2 years. |
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| 1 | | (2) The first payment of the deferred payment plan must | 2 | | be at least 10% of the total amount due. | 3 | | (3) All subsequent monthly payments for the deferred | 4 | | payment plan must be assessed as equal monthly principal | 5 | | payments, together with interest. | 6 | | (4) The deferred payment plan must include interest at | 7 | | a rate that is the same as the interest required under the | 8 | | State Prompt Payment Act. | 9 | | (5) The deferred payment plan must be approved by the | 10 | | Secretary or Director of the State agency. | 11 | | (b-5) The requirements of subsection (b) do not apply to a | 12 | | deferred payment plan entered into by any Illinois public | 13 | | university, as defined in Section 10 of the Illinois Prepaid | 14 | | Tuition Act. | 15 | | (c) State agencies may compromise past due debts. Any | 16 | | action taken by a State agency to compromise a past due debt | 17 | | must meet the following requirements: | 18 | | (1) The amount of the compromised debt shall be no less | 19 | | than 80% of the principal amount total of the past due | 20 | | debt. | 21 | | (2) Once a past due debt has been compromised, the | 22 | | debtor must remit to the State agency the total amount of | 23 | | the compromised debt. However, the State agency may collect | 24 | | the compromised debt through a payment plan not to exceed 6 | 25 | | months. If the State agency accepts the compromised debt | 26 | | through a payment plan, then the compromised debt shall be |
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| 1 | | subject to the same rate of interest as required under the | 2 | | State Prompt Payment Act. | 3 | | (3) Before a State agency accepts a compromised debt, | 4 | | the amount of the compromised debt must be approved by the | 5 | | Secretary or Director of the State agency Department of | 6 | | Revenue . | 7 | | (c-5) Illinois public universities, as defined in Section | 8 | | 10 of the Illinois Prepaid Tuition Act, may compromise past due | 9 | | debt without regard to the requirements set forth in subsection | 10 | | (c). | 11 | | (d) State agencies may sell a past due debt to one or more | 12 | | outside private vendors. Sales shall be conducted under rules | 13 | | adopted by the Department of Revenue using a request for | 14 | | proposals procedure similar to that procedure under the | 15 | | Illinois Procurement Code. The outside private vendors shall | 16 | | remit to the State agency the purchase price for debts sold | 17 | | under this subsection. | 18 | | (e) The State agency shall deposit all amounts received | 19 | | under this Section into the General Revenue Fund , except that | 20 | | amounts received by any Illinois public university, as defined | 21 | | in Section 10 of the Illinois Prepaid Tuition Act, shall be | 22 | | retained by the university, and amounts received by the | 23 | | Department of Transportation shall be deposited into the Road | 24 | | Fund. . | 25 | | (f) This Section does not apply to any tax debt owing to | 26 | | the Department of Revenue.
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| 1 | | | 2 | | | 3 | | (Source: P.A. 96-1435, eff. 8-16-10; revised 9-7-10.)".
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