State of Illinois
92nd General Assembly

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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.

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