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92_SB1039enr SB1039 Enrolled LRB9205338REdv 1 AN ACT concerning State finances. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois State Collection Act of 1986 is 5 amended by changing Section 5 as follows: 6 (30 ILCS 210/5) (from Ch. 15, par. 155) 7 Sec. 5. Rules; payment plans; offsets. 8 (a) State agencies shall adopt rules establishing formal 9 due dates for amounts owing to the State and for the referral 10 of seriously past due accounts to private collection 11 agencies, unless otherwise expressly provided by law or rule. 12 Such procedures shall be established in accord with sound 13 business practices. 14 (b) Agencies may enter deferred payment plans for 15 debtors of the agency and documentation of this fact retained 16 by the agency, where the deferred payment plan is likely to 17 increase the net amount collected by the State. 18 (c) State agencies may use the Comptroller's Offset 19 System provided in Section 10.05 of the State Comptroller Act 20 for the collection of debts owed to the agency. All debts 21 that exceed $1,000 and are more than 90 days past due shall 22 be placed in the Comptroller's Offset System, unless the 23 State agency shall have entered into a deferred payment plan 24 or demonstrates to the Comptroller's satisfaction that 25 referral for offset is not cost effective. 26 (d) State agencies shall develop internal procedures 27 whereby agency initiated payments to its debtors may be 28 offset without referral to the Comptroller's Offset System. 29 (e) State agencies or the Comptroller may remove claims 30 from the Comptroller's Offset System, where such claims have 31 been inactive for more than one year. SB1039 Enrolled -2- LRB9205338REdv 1 (f) State agencies may use the Comptroller's Offset 2 System to determine if any State agency is attempting to 3 collect debt from a contractor, bidder, or other proposed 4 contracting party. 5 (Source: P.A. 90-332, eff. 1-1-98.) 6 Section 10. The Illinois Procurement Code is amended by 7 changing Section 50-60 and by adding Section 50-11 as 8 follows: 9 (30 ILCS 500/50-11 new) 10 Sec. 50-11. Debt delinquency. 11 (a) No person shall submit a bid for or enter into a 12 contract with a State agency under this Code if that person 13 knows or should know that he or she is delinquent in the 14 payment of any debt to the State, unless the person has 15 entered into a deferred payment plan to pay off the debt. 16 For purposes of this Section, the phrase "delinquent in the 17 payment of any debt" shall be determined by the Debt 18 Collection Board. 19 (b) Every bid submitted to and contract executed by the 20 State shall contain a certification by the bidder or 21 contractor that the contractor is not barred from being 22 awarded a contract under this Section and that the contractor 23 acknowledges that the contracting State agency may declare 24 the contract void if the certification completed pursuant to 25 this subsection (b) is false. 26 (30 ILCS 500/50-60) 27 Sec. 50-60. Voidable contracts. 28 (a) If any contract is entered into or purchase or 29 expenditure of funds is made in violation of this Code or any 30 other law, the contract may be declared void by the chief 31 procurement officer or may be ratified and affirmed, provided SB1039 Enrolled -3- LRB9205338REdv 1 the chief procurement officer determines that ratification is 2 in the best interests of the State. If the contract is 3 ratified and affirmed, it shall be without prejudice to the 4 State's rights to any appropriate damages. 5 (b) If, during the term of a contract, the contracting 6 agency determines that the contractor is delinquent in the 7 payment of debt as set forth in Section 50-11 of this Code, 8 the State agency may declare the contract void if it 9 determines that voiding the contract is in the best interests 10 of the State. The Debt Collection Board shall adopt rules 11 for the implementation of this subsection (b). 12 (Source: P.A. 90-572, eff. 2-6-98.) 13 Section 99. Effective date. This Act takes effect on 14 July 1, 2002.