Full Text of HB5433 98th General Assembly
HB5433 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB5433 Introduced , by Rep. Ron Sandack SYNOPSIS AS INTRODUCED: |
| 15 ILCS 405/9.03 | from Ch. 15, par. 209.03 | 30 ILCS 210/5 | from Ch. 15, par. 155 |
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Amends the State Comptroller Act. Provides that all State payments to an entity from a payroll or retirement voluntary deduction must be made through direct deposit. Authorizes the State Comptroller to charge a fee if an entity receives a payment from a payroll or retirement voluntary deduction without using direct deposit. Requires any new entities that receive a payroll or retirement voluntary deduction to sign up for direct deposit during the application process. Further provides that the detail information associated with a State payment to an entity from a payroll or retirement voluntary deduction must be retrieved by the entity from the Comptroller's designated Internet website or an electronic alternative approved by the Comptroller. Authorizes the Comptroller to charge a processing fee if the entity requires the Comptroller to mail the detail information to it. Requires the Comptroller to provide reasonable notice to all entities impacted by these requirement. Amends the Illinois State Collection Act of 1986. Provides that if a State university withholds moneys from a university-funded payroll for a debt, the university may also withhold certain processing charges that must be remitted to the Office of the Comptroller in a timely manner. Effective immediately.
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| 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 9.03 as follows:
| 6 | | (15 ILCS 405/9.03) (from Ch. 15, par. 209.03)
| 7 | | Sec. 9.03. Direct deposit of State payments. | 8 | | (a) The Comptroller, with the
approval of the State | 9 | | Treasurer, may provide by rule or regulation for the
direct | 10 | | deposit of any payment lawfully payable from the State Treasury | 11 | | and in
accordance with federal banking regulations including | 12 | | but not limited to
payments to (i) persons paid from personal | 13 | | services, (ii)
persons receiving benefit payments from the | 14 | | Comptroller under the State pension
systems, (iii) individuals | 15 | | who receive assistance under Articles III, IV,
and VI of the | 16 | | Illinois Public Aid Code, (iv) providers of services under
the | 17 | | Mental Health and Developmental Disabilities
Administrative | 18 | | Act, (v)
providers of community-based mental health services, | 19 | | and (vi) providers of
services under programs administered by | 20 | | the State Board of Education, in the
accounts of those persons | 21 | | or entities maintained at a bank, savings and loan
association, | 22 | | or credit
union, where authorized by the payee. The Comptroller | 23 | | also may deposit
public aid payments for individuals who |
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| 1 | | receive assistance under Articles
III, IV, VI, and X of the | 2 | | Illinois Public Aid Code directly into an
electronic benefits | 3 | | transfer account in a financial institution approved by
the | 4 | | State Treasurer as prescribed by the Illinois Department of | 5 | | Human
Services
and in accordance with the rules and regulations | 6 | | of that Department and the
rules and regulations adopted by the | 7 | | Comptroller and the State Treasurer.
The Comptroller, with the | 8 | | approval of the State Treasurer, may provide by
rule for the | 9 | | electronic direct deposit of payments to public agencies and | 10 | | any
other payee of the State. The electronic direct
deposits | 11 | | may be made to the designated account in those financial | 12 | | institutions
specified in this Section for the direct deposit | 13 | | of payments. Within 6 months
after the effective date of this | 14 | | amendatory Act of 1994, the Comptroller shall
establish a pilot | 15 | | program for the electronic direct deposit of payments to
local | 16 | | school districts, municipalities, and units of local | 17 | | government.
The payments may be made without the use of the | 18 | | voucher-warrant system,
provided that documentation of | 19 | | approval by the Treasurer of each group of
payments made by | 20 | | direct deposit shall be retained by the Comptroller. The
form | 21 | | and method of the Treasurer's approval shall be established by | 22 | | the
rules or regulations adopted by the Comptroller under this | 23 | | Section. | 24 | | (b) Except as provided in subsection (b-5), all State | 25 | | payments for an employee's payroll or an employee's expense | 26 | | reimbursement must be made through direct deposit. It is the |
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| 1 | | responsibility of the paying State agency to ensure compliance | 2 | | with this mandate. If a State agency pays an employee's payroll | 3 | | or an employee's expense reimbursement without using direct | 4 | | deposit, the Comptroller may charge that employee a processing | 5 | | fee of $2.50 per paper warrant. The processing fee may be | 6 | | withheld from the employee's payment or reimbursement. The | 7 | | amount collected from the fee shall be deposited into the | 8 | | Comptroller's Administrative Fund. | 9 | | (b-5) If an employee wants his or her payments deposited | 10 | | into a secure check account, the employee must submit a direct | 11 | | deposit form to the paying State agency for his or her payroll | 12 | | or to the Comptroller for his or her expense reimbursements. | 13 | | Upon acceptance of the direct deposit form, the Comptroller | 14 | | shall disburse those funds to the secure check account. For the | 15 | | purposes of this Section, "secure check account" means an | 16 | | account established with a financial institution for the | 17 | | employee that allows the dispensing of the funds in the account | 18 | | through a third party who dispenses to the employee a paper | 19 | | check. | 20 | | (c) All State payments to a vendor that exceed the | 21 | | allowable limit of paper warrants in a fiscal year, by the same | 22 | | agency, must be made through direct deposit. It is the | 23 | | responsibility of the paying State agency to ensure compliance | 24 | | with this mandate. If a State agency pays a vendor more times | 25 | | than the allowable limit in a single fiscal year without using | 26 | | direct deposit, the Comptroller may charge the vendor a |
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| 1 | | processing fee of $2.50 per paper warrant. The processing fee | 2 | | may be withheld from the vendor's payment. The amount collected | 3 | | from the processing fee shall be deposited into the | 4 | | Comptroller's Administrative Fund. The Office of the | 5 | | Comptroller shall define "allowable limit" in the | 6 | | Comptroller's Statewide Accounting Management System (SAMS) | 7 | | manual, except that the allowable limit shall not be less than | 8 | | 30 paper warrants. The Office of the Comptroller shall also | 9 | | provide reasonable notice to all State agencies of the | 10 | | allowable limit of paper warrants. | 11 | | (c-1) All State payments to an entity from a payroll or | 12 | | retirement voluntary deduction must be made through direct | 13 | | deposit. If an entity receives a payment from a payroll or | 14 | | retirement voluntary deduction without using direct deposit, | 15 | | the Comptroller may charge the entity a processing fee of $2.50 | 16 | | per paper warrant. The processing fee may be withheld from the | 17 | | entity's payment or billed to the entity at a later date. The | 18 | | amount collected from the processing fee shall be deposited | 19 | | into the Comptroller's Administrative Fund. The Comptroller | 20 | | shall provide reasonable notice to all entities impacted by | 21 | | this requirement. Any new entities that receive a payroll or | 22 | | retirement voluntary deduction must sign up for direct deposit | 23 | | during the application process. | 24 | | (c-2) The detail information, such as names, identifiers, | 25 | | and amounts, associated with a State payment to an entity from | 26 | | a payroll or retirement voluntary deduction must be retrieved |
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| 1 | | by the entity from the Comptroller's designated Internet | 2 | | website or an electronic alternative approved by the | 3 | | Comptroller. If the entity requires the Comptroller to mail the | 4 | | detail information, the Comptroller may charge the entity a | 5 | | processing fee up to $25.00 per mailing. Any processing fee | 6 | | will be billed to the entity at a later date. The amount | 7 | | collected from the processing fee shall be deposited into the | 8 | | Comptroller's Administrative Fund. The Comptroller shall | 9 | | provide reasonable notice to all entities impacted by this | 10 | | requirement. | 11 | | (d) State employees covered by provisions in collective | 12 | | bargaining agreements that do not require direct deposit of | 13 | | paychecks are exempt from this mandate. No later than 60 days | 14 | | after the effective date of this amendatory Act of the 97th | 15 | | General Assembly, all State agencies must provide to the Office | 16 | | of the Comptroller a list of employees that are exempt under | 17 | | this subsection (d) from the direct deposit mandate. In | 18 | | addition, a State employee or vendor may file a hardship | 19 | | petition with the Office of the Comptroller requesting an | 20 | | exemption from the direct deposit mandate under this Section. A | 21 | | hardship petition shall be made available for download on the | 22 | | Comptroller's official Internet website. | 23 | | (e) Notwithstanding any provision of law to the contrary, | 24 | | the direct deposit of State payments under this Section for an | 25 | | employee's payroll, an employee's expense reimbursement, or a | 26 | | State vendor's payment does not authorize the State to |
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| 1 | | automatically withdraw funds from those accounts. | 2 | | (f) For the purposes of this Section, "vendor" means a | 3 | | non-governmental entity with a taxpayer identification number | 4 | | issued by the Social Security Administration or Internal | 5 | | Revenue Service that receives payments through the | 6 | | Comptroller's commercial system. The term does not include | 7 | | State agencies. | 8 | | (g) The requirements of this Section do not apply to the | 9 | | legislative or judicial branches of State government.
| 10 | | (Source: P.A. 97-348, eff. 8-12-11; 97-993, eff. 9-16-12; | 11 | | 98-463, eff. 8-16-13.)
| 12 | | Section 10. The Illinois State Collection Act of 1986 is | 13 | | amended by changing Section 5 as follows:
| 14 | | (30 ILCS 210/5) (from Ch. 15, par. 155)
| 15 | | Sec. 5. Rules; payment plans; offsets.
| 16 | | (a) Until July 1, 2004 for the Department of Public
Aid
and | 17 | | July 1, 2005 for Universities and all other State agencies,
| 18 | | State agencies shall adopt rules establishing formal due
dates | 19 | | for amounts owing to the State and for the referral of
| 20 | | seriously past due accounts to private collection agencies, | 21 | | unless
otherwise expressly provided by law or rule, except that | 22 | | on and after July 1,
2005, the Department of Employment | 23 | | Security may continue to refer to private
collection agencies | 24 | | past due amounts that are exempt from subsection (g).
Such |
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| 1 | | procedures shall be
established in accord with sound business | 2 | | practices.
| 3 | | (b) Until July 1, 2004 for the Department of
Public Aid and | 4 | | July 1, 2005 for Universities and all other State agencies,
| 5 | | agencies may enter deferred payment plans for debtors of the | 6 | | agency
and documentation of this fact retained by the agency, | 7 | | where the deferred
payment plan is likely to increase the net | 8 | | amount collected by the State,
except that, on and after July | 9 | | 1, 2005, the Department of Employment Security
may continue to | 10 | | enter deferred payment plans for debts that are exempt from
| 11 | | subsection (g).
| 12 | | (c) Until July 1, 2004 for the Department of
Public Aid
and | 13 | | July 1, 2005 for Universities and all other State agencies,
| 14 | | State agencies may use the Comptroller's Offset
System provided | 15 | | in
Section 10.05 of the State Comptroller Act for the | 16 | | collection of debts owed
to the agency, except that, on and | 17 | | after July 1, 2005, the Department of
Employment Security may | 18 | | continue to use the Comptroller's offset system to
collect | 19 | | amounts that are exempt from subsection (g). | 20 | | (c-1) All debts that exceed
$250 and are more than 90 days | 21 | | past
due shall be placed in the Comptroller's Offset System, | 22 | | unless (i) the State
agency shall have entered into a deferred | 23 | | payment plan or demonstrates to
the Comptroller's satisfaction | 24 | | that referral for offset is not cost effective; or (ii) the | 25 | | State agency is a university that elects to place in the | 26 | | Comptroller's Offset System only debts that exceed $1,000 and |
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| 1 | | are more than 90 days past due. All debt, and maintenance of | 2 | | that debt, that is placed in the Comptroller's Offset System | 3 | | must be submitted electronically to the office of the | 4 | | Comptroller. Any exception to this requirement must be approved | 5 | | in writing by the Comptroller. | 6 | | (c-2) Upon processing a deduction to satisfy a debt owed to | 7 | | a university or a State agency and placed in the Comptroller's | 8 | | Offset System in accordance with subsection (c-1), the | 9 | | Comptroller shall give written notice to the person subject to | 10 | | the offset. The notice shall inform the person that he or she | 11 | | may make a written protest to the Comptroller within 60 days | 12 | | after the Comptroller has given notice. The protest shall | 13 | | include the reason for contesting the deduction and any other | 14 | | information that will enable the Comptroller to determine the | 15 | | amount due and payable. If the person subject to the offset has | 16 | | not made a written protest within 60 days after the Comptroller | 17 | | has given notice, or if a final disposition is made concerning | 18 | | the deduction, the Comptroller shall pay the deduction to the | 19 | | university or the State agency. | 20 | | (c-3) For a debt owed to a university or a State agency and | 21 | | placed in the Comptroller's Offset System in accordance with | 22 | | subsection (c-1), the Comptroller shall deduct, from a warrant | 23 | | or other payment, its processing charge and the amount | 24 | | certified as necessary to satisfy, in whole or in part, the | 25 | | debt owed to the university or the State agency. The | 26 | | Comptroller shall deduct a processing charge of up to $15 per |
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| 1 | | transaction for each offset and such charges shall be deposited | 2 | | into the Comptroller Debt Recovery Trust Fund.
| 3 | | (c-4) If a State university withholds moneys from a | 4 | | university-funded payroll for a debt in accordance with this | 5 | | Act, the university may also withhold the processing charge | 6 | | identified in Section 10.05d of the State Comptroller Act and | 7 | | subsection (c-3) of Section 5 of the Illinois State Collection | 8 | | Act of 1986. Both amounts must be remitted to the Office of the | 9 | | Comptroller in a timely manner. | 10 | | (d) State agencies shall develop internal procedures | 11 | | whereby
agency initiated payments to its debtors may be offset | 12 | | without referral to
the Comptroller's Offset System.
| 13 | | (e) State agencies or the Comptroller may remove claims | 14 | | from the
Comptroller's Offset System, where such claims have | 15 | | been inactive for more
than one year.
| 16 | | (f) State agencies may use the Comptroller's Offset System | 17 | | to determine if
any State agency is attempting to collect debt | 18 | | from a contractor, bidder, or
other proposed contracting party.
| 19 | | (g) Beginning July 1, 2004 for the Departments of Public | 20 | | Aid (now Healthcare and Family Services) and
Employment | 21 | | Security and July 1, 2005 for Universities and other State | 22 | | agencies,
State agencies shall refer to the Department of | 23 | | Revenue Debt Collection Bureau
(the Bureau) all debt to the | 24 | | State, provided that the debt satisfies the
requirements
for | 25 | | referral of delinquent debt as established by rule by the | 26 | | Department of
Revenue.
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| 1 | | (h) The Department of Healthcare and Family Services shall | 2 | | be exempt from the requirements of
this Section with regard to | 3 | | child support debts, the collection of which is
governed by the | 4 | | requirements of Title IV, Part D of the federal Social Security
| 5 | | Act. The Department of Healthcare and Family Services may refer | 6 | | child support debts to the Bureau,
provided that the debt | 7 | | satisfies the requirements for referral of delinquent
debt as
| 8 | | established by rule by the Department of Revenue. The Bureau | 9 | | shall use all
legal means available to collect child support | 10 | | debt, including those
authorizing the Department of Revenue to | 11 | | collect debt and those authorizing the
Department of Healthcare | 12 | | and Family Services to collect debt. All such referred debt | 13 | | shall remain
an obligation under the Department of Healthcare | 14 | | and Family Services' Child
Support Enforcement Program subject | 15 | | to the requirements of Title IV, Part D of
the federal Social | 16 | | Security Act, including the continued use of federally
mandated | 17 | | enforcement remedies and techniques by the Department of | 18 | | Healthcare and Family Services.
| 19 | | (h-1) The Department of Employment Security is exempt from | 20 | | subsection (g)
with regard to debts to any federal account, | 21 | | including but not limited to the
Unemployment Trust Fund, and | 22 | | penalties and interest assessed under the
Unemployment | 23 | | Insurance Act. The Department of Employment Security may refer
| 24 | | those debts to the Bureau, provided the debt satisfies the | 25 | | requirements for
referral of delinquent debt as established by | 26 | | rule by the Department of
Revenue. The Bureau shall use all |
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| 1 | | legal means available to collect the debts,
including those | 2 | | authorizing the Department of Revenue to collect debt and those
| 3 | | authorizing the Department of Employment Security to collect | 4 | | debt. All
referred debt shall remain an obligation to the | 5 | | account to which it is owed.
| 6 | | (i) All debt referred to the Bureau for collection shall | 7 | | remain the property
of the referring agency. The Bureau shall | 8 | | collect debt on behalf of the
referring agency using all legal | 9 | | means available, including those authorizing
the Department of | 10 | | Revenue to collect debt and those authorizing the referring
| 11 | | agency to collect debt.
| 12 | | (j) No debt secured by an interest in real property granted | 13 | | by the debtor in
exchange for the creation of the debt shall be | 14 | | referred to the Bureau. The
Bureau shall have no obligation to | 15 | | collect debts secured by an interest in real
property.
| 16 | | (k) Beginning July 1, 2003, each agency shall collect and | 17 | | provide the Bureau
information regarding the nature and details | 18 | | of its debt in such form and
manner as the Department of | 19 | | Revenue shall require.
| 20 | | (l) For all debt accruing after July 1, 2003, each agency | 21 | | shall collect and
transmit such debtor identification | 22 | | information as the Department of Revenue
shall require.
| 23 | | (Source: P.A. 97-759, eff. 7-6-12.)
| 24 | | Section 99. Effective date. This Act takes effect upon | 25 | | becoming law.
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