Full Text of HB0384 97th General Assembly
HB0384eng 97TH GENERAL ASSEMBLY |
| | HB0384 Engrossed | | LRB097 03271 RLJ 43308 b |
|
| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 5. The State Comptroller Act is amended by changing | 5 | | Section 10.05 and by adding Section 10.05d as follows:
| 6 | | (15 ILCS 405/10.05) (from Ch. 15, par. 210.05)
| 7 | | Sec. 10.05. Deductions from warrants; statement of reason | 8 | | for deduction. Whenever any person shall be entitled to a | 9 | | warrant or other
payment from the treasury or other funds held | 10 | | by the State Treasurer, on any
account, against whom there | 11 | | shall be any then due and payable account or claim in favor of | 12 | | the
State , or to the United States upon certification by the | 13 | | Secretary of the Treasury of the United States, or his or her | 14 | | delegate, pursuant to a reciprocal offset agreement under | 15 | | subsection (i-1) of Section 10 of the Illinois State Collection | 16 | | Act of 1986, or a unit of local government, a school district, | 17 | | or a public institution of higher education, as defined in | 18 | | Section 1 of the Board of Higher Education Act, upon | 19 | | certification by that entity then due and payable , the | 20 | | Comptroller, upon notification thereof, shall
ascertain the | 21 | | amount due and payable to the State, or to the United States, | 22 | | the unit of local government, the school district, or the | 23 | | public institution of higher education, as aforesaid, and draw |
| | | HB0384 Engrossed | - 2 - | LRB097 03271 RLJ 43308 b |
|
| 1 | | a
warrant on the treasury or on other funds held by the State | 2 | | Treasurer, stating
the amount for which the party was entitled | 3 | | to a warrant or other payment, the
amount deducted therefrom, | 4 | | and on what account, and directing the payment of
the balance; | 5 | | which warrant or payment as so drawn shall be entered on the | 6 | | books
of the Treasurer, and such balance only shall be paid. | 7 | | The Comptroller may
deduct any one or more of the following: | 8 | | (i) the entire amount due and payable to the State or may | 9 | | deduct a portion
of the amount due and payable to the State in | 10 | | accordance with the request of
the notifying agency ; (ii) , and | 11 | | may deduct the entire amount due and payable to the United | 12 | | States , or may deduct a portion of the amount due and payable | 13 | | to the United States , in accordance with a reciprocal offset | 14 | | agreement under subsection (i-1) of Section 10 of the Illinois | 15 | | State Collection Act of 1986 ; or (iii) the entire amount due | 16 | | and payable to the unit of local government, school district, | 17 | | or public institution of higher education or a portion of the | 18 | | amount due and payable to that entity in accordance with an | 19 | | intergovernmental agreement authorized under this Section and | 20 | | Section 10.05d . No request from a notifying agency , or from the | 21 | | Secretary of the Treasury of the United States , a unit of local | 22 | | government, a school district, or a public institution of | 23 | | higher education for an amount to be
deducted under this | 24 | | Section from a wage or salary payment, or from a
contractual | 25 | | payment to an individual for personal services, shall exceed | 26 | | 25% of
the net amount of such payment. "Net amount" means that |
| | | HB0384 Engrossed | - 3 - | LRB097 03271 RLJ 43308 b |
|
| 1 | | part of the earnings
of an individual remaining after deduction | 2 | | of any amounts required by law to be
withheld. For purposes of | 3 | | this provision, wage, salary or other payments for
personal | 4 | | services shall not include final compensation payments for the | 5 | | value
of accrued vacation, overtime or sick leave. Whenever the | 6 | | Comptroller draws a
warrant or makes a payment involving a | 7 | | deduction ordered under this Section,
the Comptroller shall | 8 | | notify the payee and the State agency that submitted
the | 9 | | voucher of the reason for the deduction and he or she shall | 10 | | retain a record of such
statement in his or her
records. As | 11 | | used in this Section, an "account or
claim in favor of the | 12 | | State" includes all amounts owing to "State agencies"
as | 13 | | defined in Section 7 of this Act. However, the Comptroller | 14 | | shall not be
required to accept accounts or claims owing to | 15 | | funds not held by the State
Treasurer, where such accounts or | 16 | | claims do not exceed $50, nor shall the
Comptroller deduct from | 17 | | funds held by the State Treasurer under the Senior
Citizens and | 18 | | Disabled Persons Property Tax Relief and Pharmaceutical | 19 | | Assistance
Act or for payments to institutions from the | 20 | | Illinois Prepaid Tuition Trust
Fund
(unless the Trust Fund
| 21 | | moneys are used for child support).
The Comptroller and the
| 22 | | Department of Revenue shall enter into an
interagency agreement | 23 | | to establish responsibilities responsibility , duties, and | 24 | | procedures
relating to deductions from lottery prizes awarded | 25 | | under Section 20.1
of the Illinois Lottery Law. The Comptroller | 26 | | may enter into an intergovernmental agreement with the |
| | | HB0384 Engrossed | - 4 - | LRB097 03271 RLJ 43308 b |
|
| 1 | | Department of Revenue and the Secretary of the Treasury of the | 2 | | United States, or his or her delegate, to establish | 3 | | responsibilities, duties, and procedures relating to | 4 | | reciprocal offset of delinquent State and federal obligations | 5 | | pursuant to subsection (i-1) of Section 10 of the Illinois | 6 | | State Collection Act of 1986. The Comptroller may enter into | 7 | | intergovernmental agreements with any unit of local | 8 | | government, school district, or public institution of higher | 9 | | education to establish responsibilities, duties, and | 10 | | procedures to provide for the offset, by the Comptroller, of | 11 | | obligations owed to those entities.
| 12 | | (Source: P.A. 97-269, eff. 1-1-12.)
| 13 | | (15 ILCS 405/10.05d new) | 14 | | Sec. 10.05d. Deductions for delinquent obligations owed to | 15 | | units of local government, school districts, and public | 16 | | institutions of higher education. Pursuant to
Section 10.05 and | 17 | | this Section, the Comptroller may enter into intergovernmental | 18 | | agreements with a unit of local government, a school district, | 19 | | or a public institution of higher education in order to provide | 20 | | for (i) the use of the Comptroller's offset system to collect | 21 | | delinquent obligations owed to that entity and (ii) the payment | 22 | | to the Comptroller of a processing charge of up to $15 per | 23 | | transaction for such offsets. The
Comptroller shall deduct, | 24 | | from a warrant or other payment described in Section 10.05, in | 25 | | accordance with the procedures provided therein, its |
| | | HB0384 Engrossed | - 5 - | LRB097 03271 RLJ 43308 b |
|
| 1 | | processing charge and the amount
certified as necessary to | 2 | | satisfy, in whole or in part, the
delinquent obligation owed to | 3 | | the unit of local government, school district, or public | 4 | | institution of higher education, as applicable. The | 5 | | Comptroller shall provide
the unit of local government, school | 6 | | district, or public institution of higher education, as | 7 | | applicable, with the address to which the warrant or other
| 8 | | payment was to be mailed and any other information pertaining | 9 | | to each
person from whom a deduction is made pursuant to this | 10 | | Section. All deductions ordered under this Section and | 11 | | processing charges imposed under this Section shall be | 12 | | deposited into the Comptroller Debt Recovery Trust Fund, a | 13 | | special fund that the Comptroller shall use for the collection | 14 | | of deductions and processing charges, as provided by law, and | 15 | | the payment of deductions and administrative expenses, as | 16 | | provided by law. | 17 | | Upon processing a deduction, the Comptroller shall give | 18 | | written notice to the person subject to the offset. The notice | 19 | | shall inform the person that he or she may make a written | 20 | | protest to the Comptroller within 60 days after the Comptroller | 21 | | has given notice. The protest shall include the reason for | 22 | | contesting the deduction and any other information that will | 23 | | enable the Comptroller to determine the amount due and payable. | 24 | | The intergovernmental agreement entered into under Section | 25 | | 10.05 and this Section shall establish procedures through which | 26 | | the Comptroller shall determine the validity of the protest and |
| | | HB0384 Engrossed | - 6 - | LRB097 03271 RLJ 43308 b |
|
| 1 | | shall make a final disposition concerning the deduction. If the | 2 | | person subject to the offset has not made a written protest | 3 | | within 60 days after the Comptroller has given notice or if a | 4 | | final disposition is made concerning the deduction, the | 5 | | Comptroller shall pay the deduction to the unit of local | 6 | | government, school district, or public institution of higher | 7 | | education, as applicable, from the Comptroller Debt Recovery | 8 | | Trust Fund. | 9 | | Section 10. The Illinois Income Tax Act is amended by | 10 | | changing Section 911.3 as follows:
| 11 | | (35 ILCS 5/911.3)
| 12 | | Sec. 911.3. Refunds withheld; order of honoring requests. | 13 | | The Department shall honor refund withholding requests in the | 14 | | following order:
| 15 | | (1) a refund withholding request to collect an unpaid | 16 | | State tax;
| 17 | | (2) a refund withholding request to collect certified | 18 | | past due child
support amounts under Section 2505-650 of | 19 | | the Department of Revenue Law of the
Civil
Administrative | 20 | | Code of Illinois;
| 21 | | (3) a refund withholding request to collect any debt | 22 | | owed to the State;
| 23 | | (4) a refund withholding request made by the Secretary | 24 | | of the Treasury of
the United States, or his or her |
| | | HB0384 Engrossed | - 7 - | LRB097 03271 RLJ 43308 b |
|
| 1 | | delegate, to collect any tax liability arising
from Title | 2 | | 26 of the United States Code; | 3 | | (4.5) a refund withholding request made by the | 4 | | Secretary of the Treasury of the United States, or his or | 5 | | her delegate, to collect any nontax debt owed to the United | 6 | | States as authorized under subsection (i-1) of Section 10 | 7 | | of the Illinois State Collection Act of 1986; | 8 | | (4.6) a refund withholding request to collect any debt | 9 | | owed to a unit of local government, school district, or | 10 | | public institution of higher education collected under an | 11 | | intergovernmental agreement entered into under Sections | 12 | | 10.05 and 10.05d of the State Comptroller Act;
| 13 | | (5) a refund withholding request pursuant to Section | 14 | | 911.2 of this Act; and
| 15 | | (6) a refund withholding request to collect certified | 16 | | past due fees owed to the Clerk of the Circuit Court as | 17 | | authorized under Section 2505-655 of the Department of | 18 | | Revenue Law of the Civil Administrative Code of Illinois.
| 19 | | (Source: P.A. 97-269, eff. 1-1-12.)
| 20 | | Section 15. "An Act concerning State government", approved | 21 | | August 8, 2011, Public Act 97-269, is amended by adding Section | 22 | | 99 as follows: | 23 | | (P.A. 97-269, Sec. 99 new) | 24 | | Sec. 99. Effective date. This Act (Public Act 97-269) takes |
| | | HB0384 Engrossed | - 8 - | LRB097 03271 RLJ 43308 b |
|
| 1 | | effect on the effective date of this amendatory Act of the 97th | 2 | | General Assembly or January 1, 2012, whichever is earlier.
| 3 | | Section 99. Effective date. This Act takes effect upon | 4 | | becoming law.
|
|