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 -2- LRB093 10161 BDD 14292 a 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 shall25remit the amount collected, net of the contingent fee, to the26respective State agency which shall deposit the net amount27received into the fund that would have received the receipt28had 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 -3- LRB093 10161 BDD 14292 a 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.)".