94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB1357


 
Introduced 2/18/2005, by Sen. Chris Lauzen
 
SYNOPSIS AS INTRODUCED:
 		













30 ILCS 210/8
  from Ch. 15, par. 158








    Amends the Illinois State Collection Act of 1986. Provides that
after accounts have been certified by the Debt Collection Board or the
Attorney
General as uncollectible, the State Comptroller may
sell the debts to outside private vendors or
enter into one or more
contracts with outside private vendors for the purpose of pursuing a
last-call collection effort to collect these debts
for a contingent fee.
 Provides that beginning on the effective date of this amendatory Act, the
outside private
vendors shall
remit to the State Comptroller either
(i)
all amounts collected under a contract, net of contingent fees
(now, remitted to the respective State agencies to whom the money is owed)
or (ii) the purchase price for debts sold. Provides
that the
State Comptroller shall deposit
the money received under these provisions into the Budget Stabilization
Fund.
Effective immediately.
















LRB094 10985 BDD 41588 b

















FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











SB1357

LRB094 10985 BDD 41588 b






1
    AN ACT concerning State finance. 

 
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 8 as follows:


 



6
    (30 ILCS 210/8)  (from Ch. 15, par. 158)


7
    Sec. 8. Debt Collection Board. 
8
    (a) There is created a Debt Collection Board consisting of 
9
the
Director of Central Management Services as chairman, the 
10
State Comptroller,
and the Attorney General, or their 
11
respective designees.  The Board shall
establish a
centralized 
12
collections service to undertake further collection efforts on

13
delinquent accounts or claims of the State which have not been 
14
collected
through the reasonable efforts of the respective 
15
State agencies.
The Board shall promulgate rules and 
16
regulations pursuant to the Illinois
Administrative Procedure 
17
Act with regard to the establishment of timetables and
the 
18
assumption of responsibility for agency accounts receivable 
19
that have not
been collected by
the agency, are not subject to 
20
a current repayment plan, or have not been
certified as 
21
uncollectible as of the date specified by the Board.  The Board

22
shall make a final evaluation of those accounts and either (i) 
23
direct or
conduct
further collection activities when further 
24
collection efforts are in the best
economic interest of the 
25
State or (ii) in accordance with Section 2 of the
Uncollected

26
State Claims Act, certify the receivable as uncollectible or 
27
submit the account
to the Attorney General for that 
28
certification.

29
    The Board is empowered to adopt rules and regulations 
30
subject to the
provisions of the Illinois Administrative 
31
Procedure Act.

32
    The Board is empowered to enter into one or more contracts 
 


 






SB1357
- 2 -
LRB094 10985 BDD 41588 b




1
with outside private
vendors with demonstrated capabilities in 
2
the area of account collection for the collection of the 
3
delinquent accounts.
The contracts shall be let on the basis of 
4
competitive proposals secured
from responsible proposers.  The 
5
Board may require that vendors be
prequalified.  All contracts 
6
shall provide for a contingent fee based on
the age, nature, 
7
amount and type of delinquent account.  The Board may
adopt a 
8
reasonable classification schedule for the various 
9
receivables.
The contractor shall remit the amount collected, 
10
net of the contingent fee,
to the respective State agency which 
11
shall deposit the net amount received
into the fund that would 
12
have received the receipt had it been collected by
the State 
13
agency.  No portion of the collections shall be deposited into 
14
an
Accounts Receivable Fund established under Section 6 of this 
15
Act.
The Board shall act only upon the unanimous vote of its 
16
members.

17
    The authority granted the Debt Collection Board under this 
18
Section shall be
limited to the administration of debt not 
19
otherwise required by the provisions
of this amendatory Act of 
20
the 93rd General Assembly to be referred to the
Department of 
21
Revenue's Debt Collection
Bureau. Upon referral to and 
22
acceptance of any debt by the Bureau, the
provisions
of this 
23
Section shall be rendered null and void as to that debt and the 
24
Board
shall promptly deliver its entire file and all records 
25
relating to such debt to
the Bureau, together with a status 
26
report describing all action taken by the
Board or any entity 
27
on its behalf to collect the debt, and including an
accounting 
28
of all payments received.

29
    (b) After accounts have been certified by the Board or the 
30
Attorney
General
as uncollectible under this Section, the State 
31
Comptroller may
sell the debts to one or more outside private 
32
vendors or may
enter into one
or more contracts with outside 
33
private vendors for the purpose of pursuing a
last-call 
34
collection effort to collect these debts.
 All contracts with 
35
outside private vendors for the purpose of pursuing a
last-call 
36
collection effort to collect the debts
shall
provide for a 
 


 






SB1357
- 3 -
LRB094 10985 BDD 41588 b




1
contingent fee.

2
    Beginning on the
effective date of this amendatory Act of 
3
the 94th General Assembly, the outside
private vendors shall

4
remit to the State Comptroller either
(i)
all amounts collected 
5
under a contract, net of any contingent fees,
or (ii) the 
6
purchase price for debts sold.
Beginning on the effective date 
7
of this amendatory Act of the 94th General
Assembly, the State 
8
Comptroller shall deposit
the money received under this 
9
subsection (b)
into the Budget Stabilization Fund.

10
(Source: P.A. 93-570, eff. 8-20-03.)



 
11
    Section 99. Effective date.   This Act takes effect upon 
12
becoming law.