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1 | AN ACT concerning finance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois State Collection Act of 1986 is | ||||||||||||||||||||||||
5 | amended by changing Section 10 as follows:
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6 | (30 ILCS 210/10)
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7 | Sec. 10. Department of Revenue Debt Collection Bureau to | ||||||||||||||||||||||||
8 | assume
collection duties.
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9 | (a) The Department of Revenue's Debt Collection Bureau | ||||||||||||||||||||||||
10 | shall serve as the
primary debt
collecting entity for the State | ||||||||||||||||||||||||
11 | and in that role shall collect debts on behalf
of agencies of | ||||||||||||||||||||||||
12 | the State. All debts owed the State of Illinois shall be
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13 | referred to the Bureau, subject to such limitations as the | ||||||||||||||||||||||||
14 | Department of
Revenue shall by rule establish. The Bureau shall | ||||||||||||||||||||||||
15 | utilize the Comptroller's
offset system and private collection | ||||||||||||||||||||||||
16 | agencies, as well as its own collections
personnel. The Bureau | ||||||||||||||||||||||||
17 | shall collect debt using all legal authority available to
the | ||||||||||||||||||||||||
18 | Department of Revenue to collect debt and all legal authority | ||||||||||||||||||||||||
19 | available to
the referring agency.
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20 | (b) The Bureau shall have the sole authority to let | ||||||||||||||||||||||||
21 | contracts with persons
specializing in debt collection for the | ||||||||||||||||||||||||
22 | collection of debt referred to and
accepted by the Bureau. Any | ||||||||||||||||||||||||
23 | contract with the debt
collector shall specify that the |
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1 | collector's fee shall be on a contingency
basis and that the | ||||||
2 | debt collector shall not be entitled to collect a
contingency | ||||||
3 | fee for any debt collected through the efforts of any State | ||||||
4 | offset
system.
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5 | (c) The Department of Revenue shall adopt rules for the | ||||||
6 | certification of
debt from referring agencies and shall adopt | ||||||
7 | rules for the certification of
collection specialists to be | ||||||
8 | employed by the Bureau.
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9 | (d) The Department of Revenue shall adopt rules for | ||||||
10 | determining when a debt
referred by an agency shall be deemed | ||||||
11 | by the Bureau to be uncollectible.
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12 | (e) Once an agency's debt is deemed by the Bureau to be | ||||||
13 | uncollectible, the
Bureau shall return the debt to the | ||||||
14 | referring agency which shall then write the
debt off as | ||||||
15 | uncollectible or return the debt to the Bureau for additional
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16 | collection efforts. The Bureau shall refuse to accept debt that | ||||||
17 | has been deemed
uncollectible absent factual assertions from | ||||||
18 | the referring agency that due to
circumstances not known at the | ||||||
19 | time the debt was deemed uncollectible that the
debt is worthy | ||||||
20 | of additional collection efforts.
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21 | (f) For each debt referred, the State agency shall retain | ||||||
22 | all documents and
records relating to or supporting the debt. | ||||||
23 | In the event a debtor shall raise a
reasonable doubt as to the | ||||||
24 | validity of the debt, the Bureau may in its
discretion refer | ||||||
25 | the debt back to the referring agency for further review and
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26 | recommendation.
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1 | (g) The Department of Healthcare and Family Services shall | ||||||
2 | be exempt from the requirements of
this Section
with regard to | ||||||
3 | child support debts, the collection of which is governed by the
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4 | requirements of Title IV, Part D of the federal Social Security | ||||||
5 | Act. The
Department of Healthcare and Family Services may refer | ||||||
6 | child support debts to the Bureau, provided
that the debt | ||||||
7 | satisfies the requirements for referral of delinquent debt as
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8 | established by rule by the Department of Revenue. The Bureau | ||||||
9 | shall use all
legal means available to collect child support | ||||||
10 | debt, including those
authorizing the Department of Revenue to | ||||||
11 | collect debt and those authorizing the
Department of Healthcare | ||||||
12 | and Family Services to collect debt. All such referred debt | ||||||
13 | shall remain
an obligation under the Department of Healthcare | ||||||
14 | and Family Services' Child Support Enforcement
Program subject | ||||||
15 | to the requirements of Title IV, Part D of the federal Social
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16 | Security Act, including the continued use of federally mandated | ||||||
17 | enforcement
remedies and techniques by the Department of | ||||||
18 | Healthcare and Family Services.
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19 | (g-1) The Department of Employment Security is exempt from | ||||||
20 | subsection (a)
with regard to debts to any federal account, | ||||||
21 | including but not limited to the
Unemployment Trust Fund, and | ||||||
22 | penalties and interest assessed under the
Unemployment | ||||||
23 | Insurance Act. The Department of Employment Security may refer
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24 | those debts to the Bureau, provided the debt satisfies the | ||||||
25 | requirements for
referral of delinquent debt as established by | ||||||
26 | rule by the Department of
Revenue. The Bureau shall use all |
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1 | legal means available to collect the debts,
including those | ||||||
2 | authorizing the Department of Revenue to collect debt and those
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3 | authorizing the Department of Employment Security to collect | ||||||
4 | debt. All
referred debt shall remain an obligation to the | ||||||
5 | account to which it is owed.
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6 | (h) The Debt Collection Fund is created as a special fund | ||||||
7 | in the State
treasury. Debt collection contractors under this | ||||||
8 | Act shall receive a
contingency fee as provided by the terms of | ||||||
9 | their contracts with the Department
of Revenue. Thereafter, 20% | ||||||
10 | of all amounts collected by the
Bureau, excluding amounts | ||||||
11 | collected on behalf of the Departments of Healthcare and Family | ||||||
12 | Services (formerly Public Aid)
and Revenue,
shall be deposited | ||||||
13 | into the Debt Collection Fund. All remaining amounts
collected | ||||||
14 | shall be deposited into the General Revenue Fund unless the | ||||||
15 | funds are
owed to any State fund or funds other than the | ||||||
16 | General Revenue Fund. Moneys in
the Debt Collection Fund shall | ||||||
17 | be appropriated only for the administrative
costs of the | ||||||
18 | Bureau. On the last day of each fiscal year, unappropriated | ||||||
19 | moneys
and moneys otherwise deemed unneeded for the next fiscal | ||||||
20 | year remaining in the
Debt Collection Fund may be transferred | ||||||
21 | into the General Revenue Fund at the
Governor's reasonable | ||||||
22 | discretion. The provisions of this subsection do not
apply to | ||||||
23 | debt that is exempt from subsection (a) pursuant to subsection | ||||||
24 | (g-1)
or child support debt referred to the Bureau by the | ||||||
25 | Department of Healthcare and Family Services (formerly
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26 | Department of Public
Aid) pursuant to this amendatory Act of |
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1 | the 93rd General Assembly. Collections
arising from referrals | ||||||
2 | from
the Department of Healthcare and Family Services (formerly
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3 | Department of Public Aid) shall be deposited into such fund or | ||||||
4 | funds as the
Department of Healthcare and Family Services shall | ||||||
5 | direct, in accordance with the requirements of
Title IV, Part D | ||||||
6 | of the federal Social Security Act, applicable provisions of
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7 | State law, and the rules of the Department of Healthcare and | ||||||
8 | Family Services. Collections arising
from referrals from the | ||||||
9 | Department of Employment Security shall be deposited
into the | ||||||
10 | fund or funds that the Department of Employment Security shall | ||||||
11 | direct,
in accordance with the requirements of Section | ||||||
12 | 3304(a)(3) of the federal
Unemployment Tax Act, Section | ||||||
13 | 303(a)(4) of the federal Social Security Act, and
the | ||||||
14 | Unemployment Insurance Act.
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15 | (i) The Attorney General and the State Comptroller may | ||||||
16 | assist in the debt
collection efforts of the Bureau, as | ||||||
17 | requested by the Department of Revenue.
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18 | (j) The Director of Revenue shall report annually to the | ||||||
19 | General Assembly
and State Comptroller upon the debt collection | ||||||
20 | efforts of the Bureau. Each
report shall include an analysis of | ||||||
21 | the overdue debts owed to the State.
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22 | (k) The Department of Revenue shall adopt rules and | ||||||
23 | procedures for the
administration of this amendatory Act of the | ||||||
24 | 93rd General Assembly. The rules
shall be adopted under the
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25 | Department of Revenue's emergency rulemaking authority within | ||||||
26 | 90 days following
the effective date of this amendatory Act of |
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1 | the 93rd General Assembly due to
the budget crisis threatening | ||||||
2 | the public interest.
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3 | (l) The Department of Revenue's Debt Collection Bureau's | ||||||
4 | obligations under
this
Section 10 shall be subject to | ||||||
5 | appropriation by the General Assembly.
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6 | (m) Any fines imposed on a State or local political | ||||||
7 | committee by the State Board of Elections may be referred to | ||||||
8 | the Department of Revenue based upon the Board's evaluation and | ||||||
9 | upon written notification to the committee. The State Board of | ||||||
10 | Elections shall adopt rules governing the factors under which | ||||||
11 | debt may be referred. The Bureau shall attempt to collect the | ||||||
12 | debts referred by the State Board of Elections. | ||||||
13 | (Source: P.A. 95-331, eff. 8-21-07.)
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