Full Text of HB4570 97th General Assembly
HB4570enr 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning 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 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 | 9 | | July 1, 2005 for Universities and all other State agencies,
| 10 | | State agencies shall adopt rules establishing formal due
dates | 11 | | for amounts owing to the State and for the referral of
| 12 | | seriously past due accounts to private collection agencies, | 13 | | unless
otherwise expressly provided by law or rule, except that | 14 | | on and after July 1,
2005, the Department of Employment | 15 | | Security may continue to refer to private
collection agencies | 16 | | past due amounts that are exempt from subsection (g).
Such | 17 | | procedures shall be
established in accord with sound business | 18 | | practices.
| 19 | | (b) Until July 1, 2004 for the Department of
Public Aid and | 20 | | July 1, 2005 for Universities and all other State agencies,
| 21 | | agencies may enter deferred payment plans for debtors of the | 22 | | agency
and documentation of this fact retained by the agency, | 23 | | where the deferred
payment plan is likely to increase the net |
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| 1 | | amount collected by the State,
except that, on and after July | 2 | | 1, 2005, the Department of Employment Security
may continue to | 3 | | enter deferred payment plans for debts that are exempt from
| 4 | | subsection (g).
| 5 | | (c) Until July 1, 2004 for the Department of
Public Aid
and | 6 | | July 1, 2005 for Universities and all other State agencies,
| 7 | | State agencies may use the Comptroller's Offset
System provided | 8 | | in
Section 10.05 of the State Comptroller Act for the | 9 | | collection of debts owed
to the agency, except that, on and | 10 | | after July 1, 2005, the Department of
Employment Security may | 11 | | continue to use the Comptroller's offset system to
collect | 12 | | amounts that are exempt from subsection (g). | 13 | | (c-1) All debts that exceed
$250 $1,000 and are more than | 14 | | 90 days past
due shall be placed in the Comptroller's Offset | 15 | | System, unless (i) the State
agency shall have entered into a | 16 | | deferred payment plan or demonstrates to
the Comptroller's | 17 | | satisfaction that referral for offset is not cost effective ; or | 18 | | (ii) the State agency is a university that elects to place in | 19 | | the Comptroller's Offset System only debts that exceed $1,000 | 20 | | and are more than 90 days past due. All debt, and maintenance | 21 | | of that debt, that is placed in the Comptroller's Offset System | 22 | | must be submitted electronically to the office of the | 23 | | Comptroller. Any exception to this requirement must be approved | 24 | | in writing by the Comptroller . | 25 | | (c-2) Upon processing a deduction to satisfy a debt owed to | 26 | | a university or a State agency and placed in the Comptroller's |
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| 1 | | Offset System in accordance with subsection (c-1), the | 2 | | Comptroller shall give written notice to the person subject to | 3 | | the offset. The notice shall inform the person that he or she | 4 | | may make a written protest to the Comptroller within 60 days | 5 | | after the Comptroller has given notice. The protest shall | 6 | | include the reason for contesting the deduction and any other | 7 | | information that will enable the Comptroller to determine the | 8 | | amount due and payable. If the person subject to the offset has | 9 | | not made a written protest within 60 days after the Comptroller | 10 | | has given notice, or if a final disposition is made concerning | 11 | | the deduction, the Comptroller shall pay the deduction to the | 12 | | university or the State agency. | 13 | | (c-3) For a debt owed to a university or a State agency and | 14 | | placed in the Comptroller's Offset System in accordance with | 15 | | subsection (c-1), the Comptroller shall deduct, from a warrant | 16 | | or other payment, its processing charge and the amount | 17 | | certified as necessary to satisfy, in whole or in part, the | 18 | | debt owed to the university or the State agency. The | 19 | | Comptroller shall deduct a processing charge of up to $15 per | 20 | | transaction for each offset and such charges shall be deposited | 21 | | into the Comptroller Debt Recovery Trust Fund.
| 22 | | (d) State agencies shall develop internal procedures | 23 | | whereby
agency initiated payments to its debtors may be offset | 24 | | without referral to
the Comptroller's Offset System.
| 25 | | (e) State agencies or the Comptroller may remove claims | 26 | | from the
Comptroller's Offset System, where such claims have |
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| 1 | | been inactive for more
than one year.
| 2 | | (f) State agencies may use the Comptroller's Offset System | 3 | | to determine if
any State agency is attempting to collect debt | 4 | | from a contractor, bidder, or
other proposed contracting party.
| 5 | | (g) Beginning July 1, 2004 for the Departments of Public | 6 | | Aid (now Healthcare and Family Services) and
Employment | 7 | | Security and July 1, 2005 for Universities and other State | 8 | | agencies,
State agencies shall refer to the Department of | 9 | | Revenue Debt Collection Bureau
(the Bureau) all debt to the | 10 | | State, provided that the debt satisfies the
requirements
for | 11 | | referral of delinquent debt as established by rule by the | 12 | | Department of
Revenue.
| 13 | | (h) The Department of Healthcare and Family Services shall | 14 | | be exempt from the requirements of
this Section with regard to | 15 | | child support debts, the collection of which is
governed by the | 16 | | requirements of Title IV, Part D of the federal Social Security
| 17 | | Act. The Department of Healthcare and Family Services may refer | 18 | | child support debts to the Bureau,
provided that the debt | 19 | | satisfies the requirements for referral of delinquent
debt as
| 20 | | established by rule by the Department of Revenue. The Bureau | 21 | | shall use all
legal means available to collect child support | 22 | | debt, including those
authorizing the Department of Revenue to | 23 | | collect debt and those authorizing the
Department of Healthcare | 24 | | and Family Services to collect debt. All such referred debt | 25 | | shall remain
an obligation under the Department of Healthcare | 26 | | and Family Services' Child
Support Enforcement Program subject |
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| 1 | | to the requirements of Title IV, Part D of
the federal Social | 2 | | Security Act, including the continued use of federally
mandated | 3 | | enforcement remedies and techniques by the Department of | 4 | | Healthcare and Family Services.
| 5 | | (h-1) The Department of Employment Security is exempt from | 6 | | subsection (g)
with regard to debts to any federal account, | 7 | | including but not limited to the
Unemployment Trust Fund, and | 8 | | penalties and interest assessed under the
Unemployment | 9 | | Insurance Act. The Department of Employment Security may refer
| 10 | | those debts to the Bureau, provided the debt satisfies the | 11 | | requirements for
referral of delinquent debt as established by | 12 | | rule by the Department of
Revenue. The Bureau shall use all | 13 | | legal means available to collect the debts,
including those | 14 | | authorizing the Department of Revenue to collect debt and those
| 15 | | authorizing the Department of Employment Security to collect | 16 | | debt. All
referred debt shall remain an obligation to the | 17 | | account to which it is owed.
| 18 | | (i) All debt referred to the Bureau for collection shall | 19 | | remain the property
of the referring agency. The Bureau shall | 20 | | collect debt on behalf of the
referring agency using all legal | 21 | | means available, including those authorizing
the Department of | 22 | | Revenue to collect debt and those authorizing the referring
| 23 | | agency to collect debt.
| 24 | | (j) No debt secured by an interest in real property granted | 25 | | by the debtor in
exchange for the creation of the debt shall be | 26 | | referred to the Bureau. The
Bureau shall have no obligation to |
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| 1 | | collect debts secured by an interest in real
property.
| 2 | | (k) Beginning July 1, 2003, each agency shall collect and | 3 | | provide the Bureau
information regarding the nature and details | 4 | | of its debt in such form and
manner as the Department of | 5 | | Revenue shall require.
| 6 | | (l) For all debt accruing after July 1, 2003, each agency | 7 | | shall collect and
transmit such debtor identification | 8 | | information 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 | 11 | | becoming law.
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