Full Text of SB2289 96th General Assembly
SB2289enr 96TH GENERAL ASSEMBLY
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| AN ACT concerning finance.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois State Collection Act of 1986 is | 5 |
| amended by changing Section 10 as follows:
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| (30 ILCS 210/10)
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| Sec. 10. Department of Revenue Debt Collection Bureau to | 8 |
| assume
collection duties.
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| (a) The Department of Revenue's Debt Collection Bureau | 10 |
| shall serve as the
primary debt
collecting entity for the State | 11 |
| and in that role shall collect debts on behalf
of agencies of | 12 |
| the State. All debts owed the State of Illinois shall be
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| referred to the Bureau, subject to such limitations as the | 14 |
| Department of
Revenue shall by rule establish. The Bureau shall | 15 |
| utilize the Comptroller's
offset system and private collection | 16 |
| agencies, as well as its own collections
personnel. The Bureau | 17 |
| shall collect debt using all legal authority available to
the | 18 |
| Department of Revenue to collect debt and all legal authority | 19 |
| available to
the referring agency.
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| (b) The Bureau shall have the sole authority to let | 21 |
| contracts with persons
specializing in debt collection for the | 22 |
| collection of debt referred to and
accepted by the Bureau. Any | 23 |
| contract with the debt
collector shall specify that the |
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| collector's fee shall be on a contingency
basis and that the | 2 |
| debt collector shall not be entitled to collect a
contingency | 3 |
| fee for any debt collected through the efforts of any State | 4 |
| offset
system.
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| (c) The Department of Revenue shall adopt rules for the | 6 |
| certification of
debt from referring agencies and shall adopt | 7 |
| rules for the certification of
collection specialists to be | 8 |
| employed by the Bureau.
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| (d) The Department of Revenue shall adopt rules for | 10 |
| determining when a debt
referred by an agency shall be deemed | 11 |
| by the Bureau to be uncollectible.
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| (e) Once an agency's debt is deemed by the Bureau to be | 13 |
| uncollectible, the
Bureau shall return the debt to the | 14 |
| referring agency which shall then write the
debt off as | 15 |
| uncollectible in accordance with the requirements of the | 16 |
| Uncollected State Claims Act or return the debt to the Bureau | 17 |
| for additional
collection efforts. The Bureau shall refuse to | 18 |
| accept debt that has been deemed
uncollectible absent factual | 19 |
| assertions from the referring agency that due to
circumstances | 20 |
| not known at the time the debt was deemed uncollectible that | 21 |
| the
debt is worthy of additional collection efforts.
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| (f) For each debt referred, the State agency shall retain | 23 |
| all documents and
records relating to or supporting the debt. | 24 |
| In the event a debtor shall raise a
reasonable doubt as to the | 25 |
| validity of the debt, the Bureau may in its
discretion refer | 26 |
| the debt back to the referring agency for further review and
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| recommendation.
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| (g) The Department of Healthcare and Family Services shall | 3 |
| be exempt from the requirements of
this Section
with regard to | 4 |
| child support debts, the collection of which is governed by the
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| requirements of Title IV, Part D of the federal Social Security | 6 |
| Act. The
Department of Healthcare and Family Services may refer | 7 |
| child support debts to the Bureau, provided
that the debt | 8 |
| satisfies the requirements for referral of delinquent debt as
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| established by rule by the Department of Revenue. The Bureau | 10 |
| shall use all
legal means available to collect child support | 11 |
| debt, including those
authorizing the Department of Revenue to | 12 |
| collect debt and those authorizing the
Department of Healthcare | 13 |
| and Family Services to collect debt. All such referred debt | 14 |
| shall remain
an obligation under the Department of Healthcare | 15 |
| and Family Services' Child Support Enforcement
Program subject | 16 |
| to the requirements of Title IV, Part D of the federal Social
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| Security Act, including the continued use of federally mandated | 18 |
| enforcement
remedies and techniques by the Department of | 19 |
| Healthcare and Family Services.
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| (g-1) The Department of Employment Security is exempt from | 21 |
| subsection (a)
with regard to debts to any federal account, | 22 |
| including but not limited to the
Unemployment Trust Fund, and | 23 |
| penalties and interest assessed under the
Unemployment | 24 |
| Insurance Act. The Department of Employment Security may refer
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| those debts to the Bureau, provided the debt satisfies the | 26 |
| requirements for
referral of delinquent debt as established by |
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| rule by the Department of
Revenue. The Bureau shall use all | 2 |
| legal means available to collect the debts,
including those | 3 |
| authorizing the Department of Revenue to collect debt and those
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| authorizing the Department of Employment Security to collect | 5 |
| debt. All
referred debt shall remain an obligation to the | 6 |
| account to which it is owed.
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| (h) The Debt Collection Fund is created as a special fund | 8 |
| in the State
treasury. Debt collection contractors under this | 9 |
| Act shall receive a
contingency fee as provided by the terms of | 10 |
| their contracts with the Department
of Revenue. Thereafter, 20% | 11 |
| of all amounts collected by the
Bureau, excluding amounts | 12 |
| collected on behalf of the Departments of Healthcare and Family | 13 |
| Services (formerly Public Aid)
and Revenue,
shall be deposited | 14 |
| into the Debt Collection Fund , except that the Bureau shall not | 15 |
| impose the 20% collection fee on any accounts referred by the | 16 |
| General Assembly, the Supreme Court and several courts of this | 17 |
| State, and the State executive branch constitutional officers . | 18 |
| All remaining amounts
collected shall be deposited into the | 19 |
| General Revenue Fund unless the funds are
owed to any State | 20 |
| fund or funds other than the General Revenue Fund. Moneys in
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| the Debt Collection Fund shall be appropriated only for the | 22 |
| administrative
costs of the Bureau. On the last day of each | 23 |
| fiscal year, unappropriated moneys
and moneys otherwise deemed | 24 |
| unneeded for the next fiscal year remaining in the
Debt | 25 |
| Collection Fund may be transferred into the General Revenue | 26 |
| Fund at the
Governor's reasonable discretion. The provisions of |
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| this subsection do not
apply to debt that is exempt from | 2 |
| subsection (a) pursuant to subsection (g-1)
or child support | 3 |
| debt referred to the Bureau by the Department of Healthcare and | 4 |
| Family Services (formerly
Department of Public
Aid) pursuant to | 5 |
| this amendatory Act of the 93rd General Assembly. Collections
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| arising from referrals from
the Department of Healthcare and | 7 |
| Family Services (formerly
Department of Public Aid) shall be | 8 |
| deposited into such fund or funds as the
Department of | 9 |
| Healthcare and Family Services shall direct, in accordance with | 10 |
| the requirements of
Title IV, Part D of the federal Social | 11 |
| Security Act, applicable provisions of
State law, and the rules | 12 |
| of the Department of Healthcare and Family Services. | 13 |
| Collections arising
from referrals from the Department of | 14 |
| Employment Security shall be deposited
into the fund or funds | 15 |
| that the Department of Employment Security shall direct,
in | 16 |
| accordance with the requirements of Section 3304(a)(3) of the | 17 |
| federal
Unemployment Tax Act, Section 303(a)(4) of the federal | 18 |
| Social Security Act, and
the Unemployment Insurance Act.
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| (i) The Attorney General and the State Comptroller may | 20 |
| assist in the debt
collection efforts of the Bureau, as | 21 |
| requested by the Department of Revenue.
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| (j) The Director of Revenue shall report annually to the | 23 |
| General Assembly
and State Comptroller upon the debt collection | 24 |
| efforts of the Bureau. Each
report shall include an analysis of | 25 |
| the overdue debts owed to the State.
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| (k) The Department of Revenue shall adopt rules and |
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| procedures for the
administration of this amendatory Act of the | 2 |
| 93rd General Assembly. The rules
shall be adopted under the
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| Department of Revenue's emergency rulemaking authority within | 4 |
| 90 days following
the effective date of this amendatory Act of | 5 |
| the 93rd General Assembly due to
the budget crisis threatening | 6 |
| the public interest.
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| (l) The Department of Revenue's Debt Collection Bureau's | 8 |
| obligations under
this
Section 10 shall be subject to | 9 |
| appropriation by the General Assembly.
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| (Source: P.A. 95-331, eff. 8-21-07.)
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| (30 ILCS 210/8 rep.)
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| Section 10. The Illinois State Collection Act of 1986 is | 13 |
| amended by repealing Section 8. | 14 |
| Section 15. The Illinois Procurement Code is amended by | 15 |
| changing Sections 50-11 and 50-60 as follows:
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| (30 ILCS 500/50-11)
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| Sec. 50-11. Debt delinquency.
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| (a) No person shall submit a bid for or enter into a | 19 |
| contract with a State
agency under this Code if that person | 20 |
| knows or should know that he or she or
any affiliate is
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| delinquent in the payment of any debt to the State, unless the | 22 |
| person or
affiliate has
entered into a deferred payment plan to | 23 |
| pay off the debt. For purposes of this
Section, the phrase |
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| "delinquent in the payment of any debt" shall be determined
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| the Debt Collection Bureau Board .
For purposes of this Section, | 3 |
| the term "affiliate" means any entity that (1)
directly,
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| indirectly, or constructively controls another entity, (2) is | 5 |
| directly,
indirectly, or
constructively controlled by another | 6 |
| entity, or (3) is subject to the control
of
a common
entity. | 7 |
| For purposes of this subsection (a), a person controls an | 8 |
| entity if the
person owns,
directly or individually, more than | 9 |
| 10% of the voting securities of that
entity.
As used in
this | 10 |
| subsection (a), the term "voting security" means a security | 11 |
| that (1)
confers upon the
holder the right to vote for the | 12 |
| election of members of the board of directors
or similar
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| governing body of the business or (2) is convertible into, or | 14 |
| entitles the
holder to receive
upon its exercise, a security | 15 |
| that confers such a right to vote. A general
partnership
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| interest is a voting security.
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| (b) Every bid submitted to and contract executed by the | 18 |
| State shall contain
a certification by the bidder or contractor | 19 |
| that the contractor and its
affiliate is not barred
from being | 20 |
| awarded a contract under this Section and that the contractor
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| acknowledges that the contracting State agency may declare the | 22 |
| contract void if
the certification completed pursuant to this | 23 |
| subsection (b) is false.
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| (Source: P.A. 92-404, eff. 7-1-02; 93-25, eff. 6-20-03.)
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| (30 ILCS 500/50-60)
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| Sec. 50-60. Voidable contracts.
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| (a) If any contract is entered into or purchase
or | 3 |
| expenditure of funds is made in violation of this Code or any | 4 |
| other law,
the contract may be declared void by the chief | 5 |
| procurement officer or may be
ratified and affirmed,
provided | 6 |
| the chief procurement officer determines that ratification is | 7 |
| in the
best interests of the
State. If the contract is ratified | 8 |
| and affirmed, it shall be without prejudice
to the State's | 9 |
| rights to any appropriate damages.
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| (b) If, during the term of a contract, the contracting | 11 |
| agency determines
that the contractor is delinquent in the | 12 |
| payment of debt as set forth in
Section 50-11 of this Code, the | 13 |
| State agency may declare the contract void if
it determines | 14 |
| that voiding the contract is in the best interests of the | 15 |
| State.
The Debt Collection Bureau Board shall adopt rules for | 16 |
| the implementation of this
subsection (b).
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| (c) If, during the term of a contract, the contracting | 18 |
| agency determines
that the contractor is in violation of | 19 |
| Section 50-10.5 of this Code, the
contracting
agency shall | 20 |
| declare the contract void.
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| (Source: P.A. 92-404, eff. 7-1-02; 93-600, eff. 1-1-04.)
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