093_HB3562ham001











                                     LRB093 10161 BDD 14292 a

 1                    AMENDMENT TO HOUSE BILL 3562

 2        AMENDMENT NO.     .  Amend House Bill  3562  on  page  7,
 3    line  14,  by  changing  "subject  to  appropriation" to "and
 4    funded under Section 8 of the Illinois State  Collection  Act
 5    of 1986"; and

 6    on  page  7,  immediately  below  line  20,  by inserting the
 7    following:

 8        "Section 96.  The Illinois State Collection Act  of  1986
 9    is amended by changing Section 8 as follows:

10        (30 ILCS 210/8) (from Ch. 15, par. 158)
11        Sec. 8.  Debt Collection Board.
12        (a)  There  is created a Debt Collection Board consisting
13    of the Director of Central Management Services  as  chairman,
14    the  State  Comptroller,  and  the Attorney General, or their
15    respective  designees.    The   Board   shall   establish   a
16    centralized   collections   service   to   undertake  further
17    collection efforts on delinquent accounts or  claims  of  the
18    State  which  have  not been collected through the reasonable
19    efforts of the respective State agencies.   The  Board  shall
20    promulgate  rules  and  regulations  pursuant to the Illinois
21    Administrative Procedure Act with regard to the establishment
 
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 1    of timetables and the assumption of responsibility for agency
 2    accounts receivable that  have  not  been  collected  by  the
 3    agency,  are not subject to a current repayment plan, or have
 4    not been certified as uncollectible as of the date  specified
 5    by  the  Board.   The  Board shall make a final evaluation of
 6    those accounts and  either  (i)  direct  or  conduct  further
 7    collection  activities when further collection efforts are in
 8    the best economic interest of the State or (ii) in accordance
 9    with Section 2 of the Uncollected State Claims  Act,  certify
10    the  receivable as uncollectible or submit the account to the
11    Attorney General for that certification.
12        The Board is empowered to  adopt  rules  and  regulations
13    subject  to  the  provisions  of  the Illinois Administrative
14    Procedure Act.
15        The  Board  is  empowered  to  enter  into  one  or  more
16    contracts with  outside  private  vendors  with  demonstrated
17    capabilities  in  the  area  of  account  collection  for the
18    collection of the delinquent accounts. The contracts shall be
19    let on  the  basis  of  competitive  proposals  secured  from
20    responsible proposers.  The Board may require that vendors be
21    prequalified.   All  contracts shall provide for a contingent
22    fee based on the age, nature, amount and type  of  delinquent
23    account.   The  Board  may  adopt a reasonable classification
24    schedule for the various receivables.  The  contractor  shall
25    remit the amount collected, net of the contingent fee, to the
26    respective  State  agency  which shall deposit the net amount
27    received into the fund that would have received  the  receipt
28    had it been collected by the State agency.  No portion of the
29    collections  shall  be  deposited into an Accounts Receivable
30    Fund established under Section 6 of this  Act.     The  Board
31    shall act only upon the unanimous vote of its members.
32        (b)  After  accounts  have been certified by the Board or
33    the Attorney General as uncollectible under this Section, the
34    State Comptroller may sell the debts to one or  more  outside
 
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 1    private  vendors or may enter into one or more contracts with
 2    outside  private  vendors  for  the  purpose  of  pursuing  a
 3    last-call collection effort to  collect  these  debts.    All
 4    contracts  with  outside  private  vendors for the purpose of
 5    pursuing a last-call collection effort to collect  the  debts
 6    shall provide for a contingent fee.
 7        Beginning on the effective date of this amendatory Act of
 8    the  93rd General Assembly, the outside private vendors shall
 9    remit  to  the  State  Comptroller  either  (i)  all  amounts
10    collected under a contract, net of any  contingent  fees,  or
11    (ii)  the  purchase  price  for  debts sold. Beginning on the
12    effective date of this amendatory Act  of  the  93rd  General
13    Assembly,  the  State  Comptroller  shall  deposit  the money
14    received under this subsection (b) into the Illinois Economic
15    Recovery Fund.
16    (Source: P.A. 89-511, eff. 1-1-97.)".