Full Text of SB1278 99th General Assembly
SB1278sam001 99TH GENERAL ASSEMBLY | Sen. Ira I. Silverstein Filed: 3/3/2015
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| 1 | | AMENDMENT TO SENATE BILL 1278
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1278 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The State Comptroller Act is amended by adding | 5 | | Section 10.05e as follows: | 6 | | (15 ILCS 405/10.05e new) | 7 | | Sec. 10.05e. Deduction from refund for satisfaction of | 8 | | debt. | 9 | | (a) As used in this Section: | 10 | | (1) "Debt" means any amount due and owing under a | 11 | | judgment. | 12 | | (2) "Debtor" means any person or legal entity who owes | 13 | | money to another, if: | 14 | | (A) the debt has been reduced to a judgment in this | 15 | | State; and | 16 | | (B) the judgment has not been: |
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| 1 | | (i) satisfied by court order; | 2 | | (ii) set aside by court order; or | 3 | | (iii) discharged in bankruptcy. | 4 | | (3) "Refund" means a refund of overpaid income taxes | 5 | | imposed by the State of Illinois. | 6 | | (b) If a debtor owes a debt, the judgment creditor may, as | 7 | | provided in this Section: | 8 | | (1) have the Comptroller garnish an unpaid refund | 9 | | payable to the debtor; and | 10 | | (2) have the refund applied against the judgment debt. | 11 | | (c) To obtain a garnishment under this Section, a judgment | 12 | | creditor must obtain a garnishment order, under Part 7 of | 13 | | Article XII of the Code of Civil Procedure, naming the | 14 | | Comptroller as garnishee. The judgment creditor shall provide | 15 | | the garnishment order to the Comptroller. | 16 | | (d) The Comptroller shall deposit the amount available for | 17 | | garnishment under the terms of the order with the judgment | 18 | | attorney of record in the garnishment action, or, if the | 19 | | judgment creditor is not represented by an attorney, with the | 20 | | judgment creditor or the creditor's designee. | 21 | | (e) If 2 or more garnishment orders are received by the | 22 | | Comptroller for the same debtor, the Comptroller shall give | 23 | | priority to the garnishment order that is received first by the | 24 | | Comptroller. The Comptroller shall process each garnishment in | 25 | | order of the date of receipt until the refund of the debtor has | 26 | | been applied in its entirety. |
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| 1 | | (f) A judgment creditor must pay to the Comptroller a | 2 | | processing fee of $5 that is chargeable to the debtor for each | 3 | | garnishment order under this Section provided to the | 4 | | Comptroller. The judgment creditor must pay the fee at the time | 5 | | the garnishment order is provided to the Comptroller. | 6 | | (g) The Comptroller's liability to the plaintiff under a | 7 | | garnishment order under this Section is limited to the amount | 8 | | of the refund due to the debtor for the period the garnishment | 9 | | order is in effect, less any setoff, counterclaim, or other | 10 | | demand of the State against the debtor. After the Comptroller | 11 | | has deposited the amount available under subsection (d) of this | 12 | | Section, the Comptroller has no further liability in the matter | 13 | | unless: | 14 | | (1) a garnishment order is received by the Comptroller | 15 | | for a subsequent tax year; or | 16 | | (2) the amount deposited by the Comptroller under | 17 | | subsection (d) of this Section is in question. | 18 | | (h) The Comptroller shall adopt rules to implement this | 19 | | Section. | 20 | | Section 10. The Illinois Income Tax Act is amended by | 21 | | changing Section 911.3 as follows:
| 22 | | (35 ILCS 5/911.3)
| 23 | | Sec. 911.3. Refunds withheld; order of honoring requests. | 24 | | The Department shall honor refund withholding requests in the |
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| 1 | | following order:
| 2 | | (1) a refund withholding request to collect an unpaid | 3 | | State tax;
| 4 | | (2) a refund withholding request to collect certified | 5 | | past due child
support amounts under Section 2505-650 of | 6 | | the Department of Revenue Law of the
Civil
Administrative | 7 | | Code of Illinois;
| 8 | | (3) a refund withholding request to collect any debt | 9 | | owed to the State;
| 10 | | (4) a refund withholding request made by the Secretary | 11 | | of the Treasury of
the United States, or his or her | 12 | | delegate, to collect any tax liability arising
from Title | 13 | | 26 of the United States Code; | 14 | | (4.5) a refund withholding request made by the | 15 | | Secretary of the Treasury of the United States, or his or | 16 | | her delegate, to collect any nontax debt owed to the United | 17 | | States as authorized under subsection (i-1) of Section 10 | 18 | | of the Illinois State Collection Act of 1986; | 19 | | (4.6) a refund withholding request to collect any debt | 20 | | owed to a unit of local government, school district, or | 21 | | public institution of higher education collected under an | 22 | | intergovernmental agreement entered into under Sections | 23 | | 10.05 and 10.05d of the State Comptroller Act;
| 24 | | (5) a refund withholding request pursuant to Section | 25 | | 911.2 of this Act; and
| 26 | | (6) a refund withholding request to collect certified |
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| 1 | | past due fees owed to the Clerk of the Circuit Court as | 2 | | authorized under Section 2505-655 of the Department of | 3 | | Revenue Law of the Civil Administrative Code of Illinois ; | 4 | | and .
| 5 | | (7) a garnishment order under Section 10.05e of the | 6 | | State Comptroller Act. | 7 | | (Source: P.A. 97-269, eff. 12-16-11 (see Section 15 of P.A. | 8 | | 97-632 for the effective date of changes made by P.A. 97-269); | 9 | | 97-632, eff. 12-16-11.)
| 10 | | Section 15. The Code of Civil Procedure is amended by | 11 | | adding Section 12-703.5 as follows: | 12 | | (735 ILCS 5/12-703.5 new) | 13 | | Sec. 12-703.5. Garnishment of tax refunds. Notwithstanding | 14 | | any other provision of this Part, if the garnishee is the | 15 | | Comptroller under Section 10.05e of the State Comptroller Act, | 16 | | the garnishment of any tax refund on behalf of a judgment | 17 | | creditor under this Part shall be accomplished in accordance | 18 | | with the rules adopted by the Comptroller.
| 19 | | Section 99. Effective date. This Act takes effect January | 20 | | 1, 2016.".
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