Full Text of HB1349 97th General Assembly
HB1349 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB1349 Introduced 2/9/2011, by Rep. Naomi D. Jakobsson SYNOPSIS AS INTRODUCED: |
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30 ILCS 205/2 | from Ch. 15, par. 102 |
30 ILCS 210/10.1 | | 30 ILCS 210/10.2 | |
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Amends the Uncollected State Claims Act. Provides that a public university may delete from its records debts of $1,000 or more certified as uncollectible when the debt is more than 8 years old. Amends the Illinois State Collection Act of 1986. Provides that Illinois public universities are not subject to certain provisions of the Act setting out requirements for entering into deferred payment plans or compromising past due debts. Provides that certain provisions of the Act concerning collection agency fees do not apply to second, third, or subsequent placements or to litigation activities. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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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 Uncollected State Claims Act is amended by | 5 | | changing Section 2 as follows:
| 6 | | (30 ILCS 205/2) (from Ch. 15, par. 102)
| 7 | | Sec. 2.
(a) When any State agency is unable to collect any | 8 | | claim or
account receivable of $1,000 or more due the agency | 9 | | after having pursued
the procedure prescribed by law or | 10 | | applicable rules and regulations for the
collection thereof or, | 11 | | if no procedure is so prescribed, then after having
undertaken | 12 | | all reasonable and appropriate procedures available to the | 13 | | agency
to effectuate collection, the State agency shall request | 14 | | the Attorney General
to certify the claim or account receivable | 15 | | to be uncollectible.
| 16 | | (b) Each request to the Attorney General asking that a | 17 | | claim or account
receivable of $1,000 or more be declared | 18 | | uncollectible shall be in a format
prescribed by the Attorney | 19 | | General and shall include at a minimum the
following | 20 | | information: debtor's name, debtor's social security number or
| 21 | | comparable identifying number, debtor's last known address, | 22 | | nature of the
debt, efforts made to collect the debt and the | 23 | | time period covered by those
efforts, the age of the debt, the |
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| 1 | | age of the debtor and the specific reason
the State agency | 2 | | believes the debt to be uncollectible. Nothing in this
| 3 | | provision should be interpreted as a limitation on the | 4 | | authority of the
Attorney General to require additional | 5 | | information that he may find to be
necessary to evaluate | 6 | | requests sent him pursuant to this provision.
| 7 | | (c) Claims or accounts receivable of less than $1,000 may | 8 | | be
certified as uncollectible by the agency when the agency | 9 | | determines that
further collection efforts are not in the best | 10 | | economic interest of the
State. Such determination shall be | 11 | | made in accordance with rules of the
Comptroller.
| 12 | | (d) If any item of information required by this provision | 13 | | or any item
of additional information required by the Attorney | 14 | | General is not
available, the State agency shall specifically | 15 | | so state in its request to
the Attorney General asking that the | 16 | | debt be declared uncollectible.
| 17 | | (e) A State agency participating in a federal student loan | 18 | | program may
remove student loans from its records by assigning | 19 | | or referring such student
loans to the federal government for | 20 | | collection pursuant to the procedures
prescribed by federal | 21 | | laws and regulations.
| 22 | | (f) Claims and receivables due from another State agency | 23 | | may be written off
if the agency has pursued all reasonable | 24 | | means of collection and if the amount
(1) is payable from an | 25 | | appropriation which has lapsed; (2) may not properly be
charged | 26 | | against a current appropriation; and (3) was not originally |
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| 1 | | payable
from federal funds, a trust fund or locally held funds. | 2 | | Each agency which
writes off claims or receivables pursuant to | 3 | | this subparagraph shall submit a
listing of all such write-offs | 4 | | to the Comptroller within 60 days of taking such
action.
| 5 | | (g) Debts certified as uncollectible may be reopened for | 6 | | collection by
an agency upon the approval of the Attorney | 7 | | General.
| 8 | | (h) Agencies shall submit a list of debts certified as | 9 | | uncollectible to
the Comptroller in the form and manner | 10 | | specified by the Comptroller. The
Comptroller shall take | 11 | | reasonable steps to accept information on
agency computer | 12 | | tapes.
| 13 | | (i) After compliance with all provisions of this Section, | 14 | | an agency may
delete from its records debts certified as | 15 | | uncollectible as follows:
| 16 | | (1) When the debt is less than $1,000, immediately upon | 17 | | certification by
the agency;
| 18 | | (2) For debts of $1,000 or more that are less than 5 | 19 | | years old, when the
agency determines pursuant to rules and | 20 | | regulations promulgated by the
Comptroller that such | 21 | | deletion is in the best economic interest of the State;
| 22 | | (3) For debts of $1,000 or more , when , the debt is more | 23 | | than 5 years old or, in the case of a public university, | 24 | | more than 8 years old .
| 25 | | (j) The Attorney General shall report to the General | 26 | | Assembly by
February 1 of each year the following:
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| 1 | | (1) the total number and dollar amount of debts | 2 | | referred to him for
collection in the preceding calendar | 3 | | year;
| 4 | | (2) the total amount actually collected;
| 5 | | (3) the number of cases by agency.
| 6 | | (k) Each State agency shall report in its annual report the | 7 | | total amount
and the number of claims due and payable to the | 8 | | State. Each agency shall
also describe in its annual report the | 9 | | method used in collecting debts,
whether by a private | 10 | | collection service or by the Attorney General.
| 11 | | (l) The provisions of Section 2505-250 of the Department of | 12 | | Revenue Law
(20 ILCS 2505/2505-250) take precedence over the | 13 | | provisions of this Section.
| 14 | | (Source: P.A. 91-239, eff. 1-1-00 .)
| 15 | | Section 10. The Illinois State Collection Act of 1986 is | 16 | | amended by renumbering and changing Section 9 added by Public | 17 | | Act 96-1383 and Section 9 added by Public Act 96-1435 as | 18 | | follows: | 19 | | (30 ILCS 210/10.1) | 20 | | Sec. 10.1 9 . Collection agency fees. Except where | 21 | | prohibited by federal law or regulation, in the case of any | 22 | | liability referred to a collection agency on or after July 1, | 23 | | 2010, any fee charged to the State by the collection agency (i) | 24 | | may not exceed 25% for a first placement of the underlying |
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| 1 | | liability referred to the collection agency unless the | 2 | | liability is for a tax debt, (ii) is considered an additional | 3 | | liability owed to the State, (iii) is immediately subject to | 4 | | all collection procedures applicable to the liability referred | 5 | | to the collection agency, and (iv) must be separately stated in | 6 | | any statement or notice of the liability issued by the | 7 | | collection agency to the debtor. The fee limitations of this
| 8 | | Section do not apply to a second, third, or subsequent
| 9 | | placement or to litigation activities.
| 10 | | (Source: P.A. 96-1383, eff. 1-1-11; revised 9-7-10.)
| 11 | | (30 ILCS 210/10.2)
| 12 | | Sec. 10.2 9 . Deferral and compromise of past due debt. | 13 | | (a) In this Section, "past due debt" means any debt owed to | 14 | | the State that has been outstanding for more than 12 months. | 15 | | "Past due debt" does not include any debt if any of the actions | 16 | | required under this Section would violate federal law or | 17 | | regulation. | 18 | | (b) State agencies may enter into a deferred payment plan | 19 | | for the purpose of satisfying a past due debt. The deferred | 20 | | payment plan must meet the following requirements: | 21 | | (1) The term of the deferred payment plan may not | 22 | | exceed 2 years. | 23 | | (2) The first payment of the deferred payment plan must | 24 | | be at least 10% of the total amount due. | 25 | | (3) All subsequent monthly payments for the deferred |
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| 1 | | payment plan must be assessed as equal monthly principal | 2 | | payments, together with interest. | 3 | | (4) The deferred payment plan must include interest at | 4 | | a rate that is the same as the interest required under the | 5 | | State Prompt Payment Act. | 6 | | (5) The deferred payment plan must be approved by the | 7 | | Secretary or Director of the State agency. | 8 | | (b-5) The requirements of subsection (b) do not apply to a
| 9 | | deferred payment plan entered into by any Illinois public
| 10 | | university, as defined in Section 10 of the Illinois Prepaid
| 11 | | Tuition Act. | 12 | | (c) State agencies may compromise past due debts. Any | 13 | | action taken by a State agency to compromise a past due debt | 14 | | must meet the following requirements: | 15 | | (1) The amount of the compromised debt shall be no less | 16 | | than 80% of the total of the past due debt. | 17 | | (2) Once a past due debt has been compromised, the | 18 | | debtor must remit to the State agency the total amount of | 19 | | the compromised debt. However, the State agency may collect | 20 | | the compromised debt through a payment plan not to exceed 6 | 21 | | months. If the State agency accepts the compromised debt | 22 | | through a payment plan, then the compromised debt shall be | 23 | | subject to the same rate of interest as required under the | 24 | | State Prompt Payment Act. | 25 | | (3) Before a State agency accepts a compromised debt, | 26 | | the amount of the compromised debt must be approved by the |
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| 1 | | Department of Revenue. | 2 | | (c-5) Illinois public universities, as defined in Section | 3 | | 10 of the Illinois Prepaid Tuition Act, may compromise past due
| 4 | | debt without regard to the requirements set forth in subsection
| 5 | | (c). | 6 | | (d) State agencies may sell a past due debt to one or more | 7 | | outside private vendors. Sales shall be conducted under rules | 8 | | adopted by the Department of Revenue using a request for | 9 | | proposals procedure similar to that procedure under the | 10 | | Illinois Procurement Code. The outside private vendors shall | 11 | | remit to the State agency the purchase price for debts sold | 12 | | under this subsection. | 13 | | (e) The State agency shall deposit all amounts received | 14 | | under this Section into the General Revenue Fund. | 15 | | (f) This Section does not apply to any tax debt owing to | 16 | | the Department of Revenue.
| 17 | | (Source: P.A. 96-1435, eff. 8-16-10; revised 9-7-10.)
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law.
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