State of Illinois
90th General Assembly
Legislation

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[ Engrossed ]

90_HB0959

      New Act
      30 ILCS 205/2             from Ch. 15, par. 102
      30 ILCS 210/4             from Ch. 15, par. 154
          Creates the State Loan Act  and  amends  the  Uncollected
      State  Claims  Act  and the Illinois State Collections Act of
      1986.  Provides that before any State loan  may  be  made  or
      renewed  to  any  person  the name of the person must be made
      public.  Provides that the person must  personally  guarantee
      repayment  of  the  loan.  Prohibits certain contracts with a
      person who is in default on any State  loan.   Provides  that
      all contributions made by the person in the past 5 years must
      be  disclosed.   Provides  that  the  Attorney  General shall
      investigate any default on a State loan.  Provides  that  the
      provisions  of  the  Uncollected  State  Claims  Act  and the
      Illinois State Collection Act of 1986 must be met before  any
      renegotiation  or forgiveness of a State loan.  Provides that
      the Attorney General shall report  to  the  General  Assembly
      certain information regarding State loans.
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 1        AN ACT in relation to State loans.
 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:
 4        Section 1.  Short title.  This Act may be  cited  as  the
 5    State Loan Act.
 6        Section 5.  Definitions.  As used in this Act:
 7        "State  loan"  means  any loan of $50,000 or more made by
 8    the State of Illinois or any State agency to any  person  for
 9    any purpose.
10        "State agencies" has the meaning ascribed to that term in
11    Section 1-7 of the Illinois State Auditing Act.
12        "Person"  means any individual, corporation, partnership,
13    unincorporated  association,   limited   liability   company,
14    limited liability partnership, or other entity.
15        "Designated individuals" means:
16             (i)  In  the  case of a partnership, all general and
17        limited partners of the partnership.
18             (ii)  In the case of a corporation, all shareholders
19        with 10% or more equity  or  ownership  interest  in  the
20        corporation.
21             (iii)  In  the  case of one or more individuals, all
22        of the individuals.
23             (iv)  In  the  case  of  any   other   entity,   all
24        individuals  with any equity or ownership interest in the
25        entity.
26        Section 10.  Disclosure.  Before any State  loan  may  be
27    made  to  any  person or renewed (and before repayment of any
28    part of a State loan may be forgiven  or  renegotiated),  the
29    names  and  addresses  of  each  designated individual of the
30    person must be disclosed and made public.
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 1        Section 15.  Guarantee.  Before any  State  loan  may  be
 2    made   to   any  person  or  renewed  or  renegotiated,  each
 3    designated individual of the person must personally guarantee
 4    repayment of the loan.  A guarantee remains in  effect  until
 5    the  loan  has  been  repaid in full.  A guarantee may not be
 6    rescinded  or  abrogated  under   any   circumstances.    Any
 7    agreement that purports to rescind or abrogate a guarantee is
 8    null and void.
 9        Section  20.  Certain  contracts  prohibited.   No  State
10    agency  may  enter  into  any contract with any person if the
11    person or any designated  individual  of  the  person  is  in
12    default on any State loan.
13        Section  25.  Disclosure of contributions.  No State loan
14    may be made or renewed, nor may repayment of any  part  of  a
15    State   loan   be   forgiven  or  renegotiated,  unless  each
16    designated individual of the  person  with  which  the  State
17    loan,  renewal,  forgiveness, or renegotiation is proposed to
18    be made has publicly disclosed all contributions made by  the
19    designated  individual  in the past 5 years.  As used in this
20    Act, "contribution" includes any contribution as  defined  in
21    Section  9-1.4 of the Election Code and any contribution to a
22    political  committee.   As  used  in  this  Act,   "political
23    committee"  has  the meaning ascribed to that term in Section
24    9-1.9 of the Election Code.
25        Section 30.  Default; Attorney General investigation.  In
26    the case of any default on a State  loan,  the  State  agency
27    making  the  loan  shall  notify  the  Attorney General.  The
28    Attorney General shall investigate the circumstances  of  the
29    default.   Unless  the  Attorney  General determines that the
30    loan  is  uncollectible,  the  Attorney  General  shall  take
31    appropriate action to collect any amount owing to  the  State
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 1    and enforce the State's rights under the loan agreement.
 2        Section   35.  Uncollected   State   Claims   Act.    Any
 3    renegotiation  or  forgiveness  of  a  State  loan must be in
 4    compliance with  the  provisions  of  the  Uncollected  State
 5    Claims  Act  and  the  Illinois  State Collection Act of 1986
 6    regarding reporting and recording of debt collections and the
 7    writing off of debts.
 8        Section 40.  Report.
 9        The Attorney General shall report to the General Assembly
10    by February 1 of each year the following:
11        (1)  the total number and dollar amount  of  loans  about
12    which  the  Attorney  General was notified in accordance with
13    this Act in the preceding calendar year;
14        (2)  the total amount actually collected;
15        (3)  the number of cases by agency; and
16        (4)  the  names   and   addresses   of   all   designated
17    individuals  of  any  person  that is a party to a State loan
18    about which the Attorney General was notified  in  accordance
19    with this Act in the preceding calendar year.
20        Section  800. The Uncollected State Claims Act is amended
21    by changing Section 2 as follows:
22        (30 ILCS 205/2) (from Ch. 15, par. 102)
23        Sec. 2.  (a)  When any State agency is unable to  collect
24    any  claim  or  account  receivable of $1,000 or more due the
25    agency after having pursued the procedure prescribed  by  law
26    or  applicable  rules  and  regulations  for  the  collection
27    thereof  or,  if  no  procedure  is so prescribed, then after
28    having undertaken all reasonable and  appropriate  procedures
29    available  to  the agency to effectuate collection, the State
30    agency shall request the  Attorney  General  to  certify  the
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 1    claim or account receivable to be uncollectible.
 2        (b)  Each  request  to the Attorney General asking that a
 3    claim or account receivable of $1,000  or  more  be  declared
 4    uncollectible shall be in a format prescribed by the Attorney
 5    General   and  shall  include  at  a  minimum  the  following
 6    information:  debtor's name, debtor's social security  number
 7    or   comparable   identifying  number,  debtor's  last  known
 8    address, nature of the debt, efforts made to collect the debt
 9    and the time period covered by those efforts, the age of  the
10    debt, the age of the debtor and the specific reason the State
11    agency  believes  the  debt  to be uncollectible.  Nothing in
12    this provision should be interpreted as a limitation  on  the
13    authority  of  the  Attorney  General  to  require additional
14    information that he may find  to  be  necessary  to  evaluate
15    requests sent him pursuant to this provision.
16        (c)  Claims  or  accounts  receivable of less than $1,000
17    may be certified as uncollectible  by  the  agency  when  the
18    agency  determines that further collection efforts are not in
19    the best economic interest of the State.  Such  determination
20    shall be made in accordance with rules of the Comptroller.
21        (d)  If   any   item  of  information  required  by  this
22    provision or any item of additional information  required  by
23    the Attorney General is not available, the State agency shall
24    specifically  so state in its request to the Attorney General
25    asking that the debt be declared uncollectible.
26        (e)  A State agency participating in  a  federal  student
27    loan  program  may  remove  student loans from its records by
28    assigning or referring such  student  loans  to  the  federal
29    government   for   collection   pursuant  to  the  procedures
30    prescribed by federal laws and regulations.
31        (f)  Claims and receivables due from another State agency
32    may be written off if the agency has pursued  all  reasonable
33    means  of collection and if the amount (1) is payable from an
34    appropriation which has  lapsed;  (2)  may  not  properly  be
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 1    charged  against  a  current  appropriation;  and (3) was not
 2    originally payable  from  federal  funds,  a  trust  fund  or
 3    locally  held  funds.  Each agency which writes off claims or
 4    receivables pursuant to  this  subparagraph  shall  submit  a
 5    listing  of  all such write-offs to the Comptroller within 60
 6    days of taking such action.
 7        (g)  Debts certified as uncollectible may be reopened for
 8    collection by an agency upon the  approval  of  the  Attorney
 9    General.
10        (h)  Agencies  shall  submit a list of debts certified as
11    uncollectible to the  Comptroller  in  the  form  and  manner
12    specified  by  the  Comptroller.   The Comptroller shall take
13    reasonable steps to accept  information  on  agency  computer
14    tapes.
15        (i)  After   compliance   with  all  provisions  of  this
16    Section,  an  agency  may  delete  from  its  records   debts
17    certified as uncollectible as follows:
18        (1)  When  the debt is less than $1,000, immediately upon
19    certification by the agency;
20        (2)  For debts of $1,000 or more that  are  less  than  5
21    years  old,  when the agency determines pursuant to rules and
22    regulations promulgated by the Comptroller that such deletion
23    is in the best economic interest of the State;
24        (3)  For debts of $1,000 or more when, the debt  is  more
25    than 5 years old.
26        (j)  The  Attorney  General  shall  report to the General
27    Assembly by February 1 of each year the following:
28        (1)  the total number and dollar amount of debts referred
29    to him for collection in the preceding calendar year;
30        (2)  the total amount actually collected;
31        (3)  the number of cases by agency.
32        (k)  Each State agency shall report in its annual  report
33    the  total amount and the number of claims due and payable to
34    the State.  Each agency shall also  describe  in  its  annual
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 1    report  the  method  used  in  collecting debts, whether by a
 2    private collection service or by the Attorney General.
 3        (1)  The  provisions  of  Section  39c   of   The   Civil
 4    Administrative  Code  of  Illinois  take  precedence over the
 5    provisions of this Section.
 6        (m)  Any renegotiation or forgiveness of a State loan  to
 7    which  the  State Loan Act applies must be in compliance with
 8    the provisions of this Act regarding reporting and  recording
 9    of debt collections and the writing off of debts.
10    (Source: P.A. 84-1308; 84-1344.)
11        Section  900.  The  Illinois State Collection Act of 1986
12    is amended by changing Section 4 as follows:
13        (30 ILCS 210/4) (from Ch. 15, par. 154)
14        Sec. 4.   (a)  The  Comptroller  shall  provide  by  rule
15    appropriate  procedures  for  State  agencies  to  follow  in
16    establishing and recording within the State accounting system
17    records  of amounts owed to the State of Illinois.  The rules
18    of the Comptroller shall include, but are not limited to:
19        (1)  the manner by which State agencies  shall  recognize
20    debts;
21        (2)  systems   to   age   accounts  receivable  of  State
22    agencies;
23        (3)  standards by which State  agencies'  claims  may  be
24    entered  and  removed  from  the  Comptroller's Offset System
25    authorized by Section 10.05 of the State Comptroller Act;
26        (4)  accounting procedures for estimating the  amount  of
27    uncollectible receivables of State agencies; and
28        (5)  accounting  procedures for writing off bad debts and
29    uncollectible claims.
30        (b)  State  agencies  shall  report  to  the  Comptroller
31    information  concerning   their   accounts   receivable   and
32    uncollectible  claims  in  accordance  with  the rules of the
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 1    Comptroller, which may provide for summary reporting.
 2        (c)  The rules of  the  Comptroller  authorized  by  this
 3    Section  shall  may  specify  varying procedures and forms of
 4    reporting dependent upon the nature and amount of the account
 5    receivable or uncollectible claim, the age of the  debt,  the
 6    probability  of  collection  and such other factors that will
 7    increase the net benefit  to  the  State  of  the  collection
 8    effort.
 9        (d)  The  Comptroller  shall report annually by March 14,
10    to the Governor and the General Assembly, the amount  of  all
11    delinquent  debt  owed to each State agency as of December 31
12    of the previous calendar year.
13        (e)  Any renegotiation or forgiveness of a State loan  to
14    which  the  State Loan Act applies must be in compliance with
15    the provisions of this Act regarding reporting and  recording
16    of debt collections and the writing off of debts.
17    (Source: P.A. 86-515.)
18        Section 999.  Effective date.  This Act takes effect upon
19    becoming law.

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