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| Public Act 097-0444 | ||||
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AN ACT concerning finance.
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Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly:
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Section 5. The Uncollected State Claims Act is amended by | ||||
changing Sections 2 and 2.1 as follows:
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(30 ILCS 205/2) (from Ch. 15, par. 102)
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Sec. 2.
(a) When any State agency is unable to collect any | ||||
claim or
account receivable of $1,000 or more due the agency | ||||
after having pursued
the procedure prescribed by law or | ||||
applicable rules and regulations for the
collection thereof or, | ||||
if no procedure is so prescribed, then after having
undertaken | ||||
all reasonable and appropriate procedures available to the | ||||
agency
to effectuate collection, the State agency shall request | ||||
the Attorney General
to certify the claim or account receivable | ||||
to be uncollectible.
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(b) Each request to the Attorney General asking that a | ||||
claim or account
receivable of $1,000 or more be declared | ||||
uncollectible shall be in a format
prescribed by the Attorney | ||||
General and shall include at a minimum the
following | ||||
information: debtor's name, debtor's social security number or
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comparable identifying number, debtor's last known address, | ||||
nature of the
debt, efforts made to collect the debt and the | ||||
time period covered by those
efforts, the age of the debt, the | ||||
age of the debtor and the specific reason
the State agency | ||
believes the debt to be uncollectible. Nothing in this
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provision should be interpreted as a limitation on the | ||
authority of the
Attorney General to require additional | ||
information that he may find to be
necessary to evaluate | ||
requests sent him pursuant to this provision.
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(c) Claims or accounts receivable of less than $1,000 may | ||
be
certified as uncollectible by the agency when the agency | ||
determines that
further collection efforts are not in the best | ||
economic interest of the
State. Such determination shall be | ||
made in accordance with rules of the
Comptroller.
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(d) If any item of information required by this provision | ||
or any item
of additional information required by the Attorney | ||
General is not
available, the State agency shall specifically | ||
so state in its request to
the Attorney General asking that the | ||
debt be declared uncollectible.
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(e) A State agency participating in a federal student loan | ||
program may
remove student loans from its records by assigning | ||
or referring such student
loans to the federal government for | ||
collection pursuant to the procedures
prescribed by federal | ||
laws and regulations.
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(f) Claims and receivables due from another State agency | ||
may be written off
if the agency has pursued all reasonable | ||
means of collection and if the amount
(1) is payable from an | ||
appropriation which has lapsed; (2) may not properly be
charged | ||
against a current appropriation; and (3) was not originally | ||
payable
from federal funds, a trust fund or locally held funds. | ||
Each agency which
writes off claims or receivables pursuant to | ||
this subparagraph shall submit a
listing of all such write-offs | ||
to the Comptroller within 60 days of taking such
action.
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(g) Debts certified as uncollectible may be reopened for | ||
collection by
an agency upon the approval of the Attorney | ||
General.
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(h) Agencies shall submit a list of debts certified as | ||
uncollectible to
the Comptroller in the form and manner | ||
specified by the Comptroller. The
Comptroller shall take | ||
reasonable steps to accept information on
agency computer | ||
tapes.
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(i) After compliance with all provisions of this Section, | ||
an agency may
delete from its records debts certified as | ||
uncollectible as follows:
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(1) When the debt is less than $1,000, immediately upon | ||
certification by
the agency;
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(2) For debts of $1,000 or more that are less than 5 | ||
years old, when the
agency determines pursuant to rules and | ||
regulations promulgated by the
Comptroller that such | ||
deletion is in the best economic interest of the State;
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(3) For debts of $1,000 or more, when, the debt is more | ||
than 5 years old or, in the case of a public university, | ||
more than 8 years old.
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(j) The Attorney General shall report to the General | ||
Assembly by
February 1 of each year the following:
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(1) the total number and dollar amount of debts | ||
referred to him for
collection in the preceding calendar | ||
year;
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(2) the total amount actually collected;
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(3) the number of cases by agency.
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(k) Each State agency shall report in its annual report the | ||
total amount
and the number of claims due and payable to the | ||
State. Each agency shall
also describe in its annual report the | ||
method used in collecting debts,
whether by a private | ||
collection service or by the Attorney General.
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(l) The provisions of Section 2505-250 of the Department of | ||
Revenue Law
(20 ILCS 2505/2505-250) take precedence over the | ||
provisions of this Section.
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(Source: P.A. 91-239, eff. 1-1-00.)
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(30 ILCS 205/2.1) | ||
Sec. 2.1. Sale of debts certified as uncollectible. After | ||
accounts have been certified by the Attorney General, or the | ||
State agency for accounts of less than $1,000, as uncollectible | ||
pursuant to this Act, the Department of Revenue may sell the | ||
debts to one or more outside private vendors. Sales shall be | ||
conducted under rules adopted by the Department of Revenue | ||
using a request for proposals procedure similar to that | ||
procedure under the Illinois Procurement Code. The outside | ||
private vendors shall remit to the Department of Revenue the | ||
purchase price for debts sold under this Section. The | ||
Department of Revenue shall deposit the money received under | ||
this Section into the General Revenue Fund. The State | ||
Comptroller shall provide the Department of Revenue with any | ||
information that the Department requests for the purpose of | ||
administering this Section. This Section does not apply to any | ||
tax debt owing to the Department of Revenue. This Section does | ||
not apply to (i) debts, in the case of a public university, | ||
when the debt is less than 8 years old; (ii) child support | ||
debts enforced by the Department of Healthcare and Family | ||
Services pursuant to Title IV-D of the federal Social Security | ||
Act and Article X of the Illinois Public Aid Code; and (iii) | ||
debts that are enforced by the Department of Employment | ||
Security and owed to any federal account, including but not | ||
limited to the Unemployment Trust Fund, and penalties and | ||
interest assessed under the Unemployment Insurance Act.
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(Source: P.A. 96-1435, eff. 8-16-10.) | ||
Section 10. The Illinois State Collection Act of 1986 is | ||
amended by renumbering and changing Section 9 added by Public | ||
Act 96-1383 and Section 9 added by Public Act 96-1435 as | ||
follows: | ||
(30 ILCS 210/10.1) | ||
Sec. 10.1 9. Collection agency fees. Except where | ||
prohibited by federal law or regulation, in the case of any | ||
liability referred to a collection agency on or after July 1, | ||
2010, any fee charged to the State by the collection agency (i) | ||
may not exceed 25% for a first placement of the underlying | ||
liability referred to the collection agency unless the | ||
liability is for a tax debt, (ii) is considered an additional | ||
liability owed to the State, (iii) is immediately subject to | ||
all collection procedures applicable to the liability referred | ||
to the collection agency, and (iv) must be separately stated in | ||
any statement or notice of the liability issued by the | ||
collection agency to the debtor. The fee limitations of this
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Section do not apply to a second, third, or subsequent
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placement or to litigation activities.
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(Source: P.A. 96-1383, eff. 1-1-11; revised 9-7-10.)
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(30 ILCS 210/10.2)
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Sec. 10.2 9. Deferral and compromise of past due debt. | ||
(a) In this Section, "past due debt" means any debt owed to | ||
the State that has been outstanding for more than 12 months. | ||
"Past due debt" does not include any debt if any of the actions | ||
required under this Section would violate federal law or | ||
regulation. | ||
(b) State agencies may enter into a deferred payment plan | ||
for the purpose of satisfying a past due debt. Except for a | ||
deferred payment plan entered into by any Illinois public | ||
university, as defined in Section 10 of the Illinois Prepaid | ||
Tuition Act, or by the Illinois Department of Transportation or | ||
for debts owed to the Illinois Department of Transportation for | ||
deposit into the Road Fund, the The deferred payment plan must | ||
meet the following requirements: | ||
(1) The term of the deferred payment plan may not | ||
exceed 2 years. | ||
(2) The first payment of the deferred payment plan must | ||
be at least 10% of the total amount due. | ||
(3) All subsequent monthly payments for the deferred | ||
payment plan must be assessed as equal monthly principal | ||
payments, together with interest. | ||
(4) The deferred payment plan must include interest at | ||
a rate that is the same as the interest required under the | ||
State Prompt Payment Act. | ||
(5) The deferred payment plan must be approved by the | ||
Secretary or Director of the State agency. | ||
(c) State agencies may compromise past due debts. Any | ||
action taken by a State agency to compromise a past due debt, | ||
other than an action taken by an Illinois public university, as | ||
defined in Section 10 of the Illinois Prepaid Tuition Act, to | ||
compromise past due debt, must meet the following requirements: | ||
(1) The amount of the compromised debt shall be no less | ||
than 80% of the total of the past due debt. | ||
(2) Once a past due debt has been compromised, the | ||
debtor must remit to the State agency the total amount of | ||
the compromised debt. However, the State agency may collect | ||
the compromised debt through a payment plan not to exceed 6 | ||
months. If the State agency accepts the compromised debt | ||
through a payment plan, then the compromised debt shall be | ||
subject to the same rate of interest as required under the | ||
State Prompt Payment Act. | ||
(3) Before a State agency accepts a compromised debt, | ||
the amount of the compromised debt must be approved by the | ||
Secretary or Director of the agency Department of Revenue. | ||
(d) State agencies may sell a past due debt to one or more | ||
outside private vendors. Sales shall be conducted under rules | ||
adopted by the Department of Revenue using a request for | ||
proposals procedure similar to that procedure under the | ||
Illinois Procurement Code. The outside private vendors shall | ||
remit to the State agency the purchase price for debts sold | ||
under this subsection. | ||
(e) The State agency shall deposit all amounts received | ||
under this Section into the General Revenue Fund. For Illinois | ||
public universities, as defined in Section 10 of the Illinois | ||
Prepaid Tuition Act, the requirement of this subsection (e) | ||
applies to amounts received from the sale of past due debt and | ||
does not apply to amounts received under a deferred payment | ||
plan or a compromised debt payment plan. | ||
(f) This Section does not apply to any tax debt owing to | ||
the Department of Revenue.
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(g) This Section does not apply to child support debts | ||
enforced by the Department of Healthcare and Family Services | ||
pursuant to Title IV-D of the federal Social Security Act and | ||
Article X of the Illinois Public Aid Code. | ||
(h) This Section does not apply to debts that are enforced | ||
by the Department of Employment Security and owed to any | ||
federal account, including but not limited to the Unemployment | ||
Trust Fund, and penalties and interest assessed under the | ||
Unemployment Insurance Act. | ||
(Source: P.A. 96-1435, eff. 8-16-10; revised 9-7-10.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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