Full Text of HB1527 97th General Assembly
HB1527enr 97TH GENERAL ASSEMBLY |
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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 10.05 and by adding Section 10.05c 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 account or claim in favor of the
State or to the | 12 | | United States upon certification by the Secretary of the | 13 | | Treasury of the United States, or his or her delegate, pursuant | 14 | | to a reciprocal offset agreement under subsection (i-1) of | 15 | | Section 10 of the Illinois State Collection Act of 1986 , then | 16 | | due and payable, the Comptroller, upon notification thereof, | 17 | | shall
ascertain the amount due and payable to the State, or to | 18 | | the United States, as aforesaid, and draw a
warrant on the | 19 | | treasury or on other funds held by the State Treasurer, stating
| 20 | | the amount for which the party was entitled to a warrant or | 21 | | other payment, the
amount deducted therefrom, and on what | 22 | | account, and directing the payment of
the balance; which | 23 | | warrant or payment as so drawn shall be entered on the books
of |
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| 1 | | the Treasurer, and such balance only shall be paid. The | 2 | | Comptroller may
deduct the entire amount due and payable to the | 3 | | State or may deduct a portion
of the amount due and payable to | 4 | | the State in accordance with the request of
the notifying | 5 | | agency , and may deduct the entire amount due and payable to the | 6 | | United States, or may deduct a portion of the amount due and | 7 | | payable to the United States, in accordance with a reciprocal | 8 | | offset agreement under subsection (i-1) of Section 10 of the | 9 | | Illinois State Collection Act of 1986 . No request from a | 10 | | notifying agency or from the Secretary of the Treasury of the | 11 | | United States for an amount to be
deducted under this Section | 12 | | from a wage or salary payment, or from a
contractual payment to | 13 | | an individual for personal services, shall exceed 25% of
the | 14 | | net amount of such payment. "Net amount" means that part of the | 15 | | earnings
of an individual remaining after deduction of any | 16 | | amounts required by law to be
withheld. For purposes of this | 17 | | provision, wage, salary or other payments for
personal services | 18 | | shall not include final compensation payments for the value
of | 19 | | accrued vacation, overtime or sick leave. Whenever the | 20 | | Comptroller draws a
warrant or makes a payment involving a | 21 | | deduction ordered under this Section,
the Comptroller shall | 22 | | notify the payee and the State agency that submitted
the | 23 | | voucher of the reason for the deduction and he or she shall | 24 | | retain a record of such
statement in his or her
records. As | 25 | | used in this Section, an "account or
claim in favor of the | 26 | | State" includes all amounts owing to "State agencies"
as |
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| 1 | | defined in Section 7 of this Act. However, the Comptroller | 2 | | shall not be
required to accept accounts or claims owing to | 3 | | funds not held by the State
Treasurer, where such accounts or | 4 | | claims do not exceed $50, nor shall the
Comptroller deduct from | 5 | | funds held by the State Treasurer under the Senior
Citizens and | 6 | | Disabled Persons Property Tax Relief and Pharmaceutical | 7 | | Assistance
Act or for payments to institutions from the | 8 | | Illinois Prepaid Tuition Trust
Fund
(unless the Trust Fund
| 9 | | moneys are used for child support).
The Comptroller and the
| 10 | | Department of Revenue the Lottery shall enter into an
| 11 | | interagency agreement to establish responsibility, duties, and | 12 | | procedures
relating to deductions from lottery prizes awarded | 13 | | under Section 20.1
of the Illinois Lottery Law. The Comptroller | 14 | | may enter into an intergovernmental agreement with the | 15 | | Department of Revenue and the Secretary of the Treasury of the | 16 | | United States, or his or her delegate, to establish | 17 | | responsibilities, duties, and procedures relating to | 18 | | reciprocal offset of delinquent State and federal obligations | 19 | | pursuant to subsection (i-1) of Section 10 of the Illinois | 20 | | State Collection Act of 1986.
| 21 | | (Source: P.A. 93-56, eff. 7-1-03.)
| 22 | | (15 ILCS 405/10.05c new) | 23 | | Sec. 10.05c. Deduction from warrants and payments for | 24 | | satisfaction of delinquent federal obligations. Pursuant to | 25 | | the procedures established under a reciprocal offset agreement |
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| 1 | | entered into under Section 10.05 and subsection (i-1) of | 2 | | Section 10 of the Illinois State Collection Act of 1986, the | 3 | | Comptroller shall deduct from a warrant or other payment | 4 | | described in Section 10.05, in accordance with the procedures | 5 | | provided therein, and pay over to the Secretary of the Treasury | 6 | | of the United States, or his or her delegate, that amount | 7 | | certified as necessary to satisfy, in whole or in part a | 8 | | delinquent federal obligation. The Comptroller shall provide | 9 | | the Secretary of the Treasury of the United States, or his or | 10 | | her delegate, with the address to which the warrant or other | 11 | | payment was to be mailed and the social security number of each | 12 | | person from whom a deduction is made pursuant to this Section. | 13 | | Section 10. The Illinois State Collection Act of 1986 is | 14 | | amended by changing Section 10 as follows:
| 15 | | (30 ILCS 210/10)
| 16 | | Sec. 10. Department of Revenue Debt Collection Bureau to | 17 | | assume
collection duties. | 18 | | (a) The Department of Revenue's Debt Collection Bureau | 19 | | shall serve as the
primary debt
collecting entity for the State | 20 | | and in that role shall collect debts on behalf
of agencies of | 21 | | the State. All debts owed the State of Illinois shall be
| 22 | | referred to the Bureau, subject to such limitations as the | 23 | | Department of
Revenue shall by rule establish. The Bureau shall | 24 | | utilize the Comptroller's
offset system and private collection |
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| 1 | | agencies, as well as its own collections
personnel , and may use | 2 | | the offset system of the Department of the Treasury of the | 3 | | United States for the collection of State debt pursuant to | 4 | | Sections 10.05 and 10.05c of the State Comptroller Act and | 5 | | subsection (i-1) of Section 10 of the Illinois State Collection | 6 | | Act of 1986 . The Bureau shall collect debt using all legal | 7 | | authority available to
the Department of Revenue to collect | 8 | | debt and all legal authority available to
the referring agency.
| 9 | | (b) The Bureau shall have the sole authority to let | 10 | | contracts with persons
specializing in debt collection for the | 11 | | collection of debt referred to and
accepted by the Bureau. Any | 12 | | contract with the debt
collector shall specify that the | 13 | | collector's fee shall be on a contingency
basis and that the | 14 | | debt collector shall not be entitled to collect a
contingency | 15 | | fee for any debt collected through the efforts of any State | 16 | | offset
system.
| 17 | | (c) The Department of Revenue shall adopt rules for the | 18 | | certification of
debt from referring agencies and shall adopt | 19 | | rules for the certification of
collection specialists to be | 20 | | employed by the Bureau.
| 21 | | (d) The Department of Revenue shall adopt rules for | 22 | | determining when a debt
referred by an agency shall be deemed | 23 | | by the Bureau to be uncollectible.
| 24 | | (e) Once an agency's debt is deemed by the Bureau to be | 25 | | uncollectible, the
Bureau shall return the debt to the | 26 | | referring agency which shall then write the
debt off as |
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| 1 | | uncollectible in accordance with the requirements of the | 2 | | Uncollected State Claims Act or return the debt to the Bureau | 3 | | for additional
collection efforts. The Bureau shall refuse to | 4 | | accept debt that has been deemed
uncollectible absent factual | 5 | | assertions from the referring agency that due to
circumstances | 6 | | not known at the time the debt was deemed uncollectible that | 7 | | the
debt is worthy of additional collection efforts.
| 8 | | (f) For each debt referred, the State agency shall retain | 9 | | all documents and
records relating to or supporting the debt. | 10 | | In the event a debtor shall raise a
reasonable doubt as to the | 11 | | validity of the debt, the Bureau may in its
discretion refer | 12 | | the debt back to the referring agency for further review and
| 13 | | recommendation.
| 14 | | (g) The Department of Healthcare and Family Services shall | 15 | | be exempt from the requirements of
this Section
with regard to | 16 | | child support debts, the collection of which is governed by the
| 17 | | requirements of Title IV, Part D of the federal Social Security | 18 | | Act. The
Department of Healthcare and Family Services may refer | 19 | | child support debts to the Bureau, provided
that the debt | 20 | | satisfies the requirements for referral of delinquent debt as
| 21 | | established by rule by the Department of Revenue. The Bureau | 22 | | shall use all
legal means available to collect child support | 23 | | debt, including those
authorizing the Department of Revenue to | 24 | | collect debt and those authorizing the
Department of Healthcare | 25 | | and Family Services to collect debt. All such referred debt | 26 | | shall remain
an obligation under the Department of Healthcare |
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| 1 | | and Family Services' Child Support Enforcement
Program subject | 2 | | to the requirements of Title IV, Part D of the federal Social
| 3 | | Security Act, including the continued use of federally mandated | 4 | | enforcement
remedies and techniques by the Department of | 5 | | Healthcare and Family Services.
| 6 | | (g-1) The Department of Employment Security is exempt from | 7 | | subsection (a)
with regard to debts to any federal account, | 8 | | including but not limited to the
Unemployment Trust Fund, and | 9 | | penalties and interest assessed under the
Unemployment | 10 | | Insurance Act. The Department of Employment Security may refer
| 11 | | those debts to the Bureau, provided the debt satisfies the | 12 | | requirements for
referral of delinquent debt as established by | 13 | | rule by the Department of
Revenue. The Bureau shall use all | 14 | | legal means available to collect the debts,
including those | 15 | | authorizing the Department of Revenue to collect debt and those
| 16 | | authorizing the Department of Employment Security to collect | 17 | | debt. All
referred debt shall remain an obligation to the | 18 | | account to which it is owed.
| 19 | | (h) The Bureau may collect its costs of collecting debts on | 20 | | behalf of other State agencies from those agencies in a manner | 21 | | to be determined by the Director of Revenue, except that the | 22 | | Bureau shall not recover any such cost on any accounts referred | 23 | | by the General Assembly, the Supreme Court and other courts of | 24 | | this State, and the State executive branch constitutional | 25 | | officers. The provisions of this subsection do not
apply to | 26 | | debt that is exempt from subsection (a) pursuant to subsection |
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| 1 | | (g-1)
or child support debt referred to the Bureau by the | 2 | | Department of Healthcare and Family Services (formerly
| 3 | | Department of Public
Aid) pursuant to this amendatory Act of | 4 | | the 93rd General Assembly. Collections
arising from referrals | 5 | | from
the Department of Healthcare and Family Services (formerly
| 6 | | Department of Public Aid) shall be deposited into such fund or | 7 | | funds as the
Department of Healthcare and Family Services shall | 8 | | direct, in accordance with the requirements of
Title IV, Part D | 9 | | of the federal Social Security Act, applicable provisions of
| 10 | | State law, and the rules of the Department of Healthcare and | 11 | | Family Services. Collections arising
from referrals from the | 12 | | Department of Employment Security shall be deposited
into the | 13 | | fund or funds that the Department of Employment Security shall | 14 | | direct,
in accordance with the requirements of Section | 15 | | 3304(a)(3) of the federal
Unemployment Tax Act, Section | 16 | | 303(a)(4) of the federal Social Security Act, and
the | 17 | | Unemployment Insurance Act.
| 18 | | (i) The Attorney General and the State Comptroller may | 19 | | assist in the debt
collection efforts of the Bureau, as | 20 | | requested by the Department of Revenue.
| 21 | | (i-1) The Department may enter into a reciprocal offset | 22 | | agreement with the Office of the State Comptroller and the | 23 | | Secretary of the Treasury of the United States, or his or her | 24 | | delegate, which provides for (i) the use of the Comptroller's | 25 | | offset system to offset State payments to collect federal | 26 | | nontax debts and for the Comptroller to charge a fee up to $25 |
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| 1 | | per transaction for such offsets; and (ii) offsetting federal | 2 | | payments, as authorized by federal law, to collect State debts, | 3 | | State tax, and nontax obligations, and for the Comptroller to | 4 | | collect the offset cost from the Department of the Treasury of | 5 | | the United States to cover the full cost of offsets taken, to | 6 | | the extent allowed by federal law, or, if not allowed by | 7 | | federal law, from the debtor by offset of the overpayment. The | 8 | | agreement shall provide that the Department of the Treasury of | 9 | | the United States may deduct a fee from each administrative | 10 | | offset and State payment offset. Any offset fees collected by | 11 | | the Comptroller under this subsection for administrative | 12 | | offset or State payment offset shall be deposited into the | 13 | | Comptroller's Administrative Fund. | 14 | | For purposes of this subsection, "administrative offset" | 15 | | is any offset of federal payments to collect State debts. | 16 | | For purposes of this subsection, "State payment offset" is | 17 | | any offset of State payments to collect federal nontax debts. | 18 | | (j) The Director of Revenue shall report annually to the | 19 | | General Assembly
and State Comptroller upon the debt collection | 20 | | efforts of the Bureau. Each
report shall include an analysis of | 21 | | the overdue debts owed to the State.
| 22 | | (k) The Department of Revenue shall adopt rules and | 23 | | procedures for the
administration of this amendatory Act of the | 24 | | 93rd General Assembly. The rules
shall be adopted under the
| 25 | | Department of Revenue's emergency rulemaking authority within | 26 | | 90 days following
the effective date of this amendatory Act of |
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| 1 | | the 93rd General Assembly due to
the budget crisis threatening | 2 | | the public interest.
| 3 | | (l) The Department of Revenue's Debt Collection Bureau's | 4 | | obligations under
this
Section 10 shall be subject to | 5 | | appropriation by the General Assembly.
| 6 | | (Source: P.A. 95-331, eff. 8-21-07; 96-493, eff. 1-1-10; | 7 | | 96-1383, eff. 1-1-11.)
| 8 | | Section 15. The Illinois Income Tax Act is amended by | 9 | | changing Section 911.3 as follows:
| 10 | | (35 ILCS 5/911.3)
| 11 | | Sec. 911.3. Refunds withheld; order of honoring requests. | 12 | | The Department shall honor refund withholding requests in the | 13 | | following order:
| 14 | | (1) a refund withholding request to collect an unpaid | 15 | | State tax;
| 16 | | (2) a refund withholding request to collect certified | 17 | | past due child
support amounts under Section 2505-650 of | 18 | | the Department of Revenue Law of the
Civil
Administrative | 19 | | Code of Illinois;
| 20 | | (3) a refund withholding request to collect any debt | 21 | | owed to the State;
| 22 | | (4) a refund withholding request made by the Secretary | 23 | | of the Treasury of
the United States, or his or her | 24 | | delegate, to collect any tax liability arising
from Title |
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| 1 | | 26 of the United States Code; | 2 | | (4.5) a refund withholding request made by the | 3 | | Secretary of the Treasury of the United States, or his or | 4 | | her delegate, to collect any nontax debt owed to the United | 5 | | States as authorized under subsection (i-1) of Section 10 | 6 | | of the Illinois State Collection Act of 1986;
| 7 | | (5) a refund withholding request pursuant to Section | 8 | | 911.2 of this Act; and
| 9 | | (6) a refund withholding request to collect certified | 10 | | past due fees owed to the Clerk of the Circuit Court as | 11 | | authorized under Section 2505-655 of the Department of | 12 | | Revenue Law of the Civil Administrative Code of Illinois.
| 13 | | (Source: P.A. 92-826, eff. 8-21-02; 93-836, eff. 1-1-05.)
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