Rep. Lou Lang

Filed: 3/8/2012

 

 


 

 


 
09700HB4570ham002LRB097 19030 PJG 67332 a

1
AMENDMENT TO HOUSE BILL 4570

2    AMENDMENT NO. ______. Amend House Bill 4570, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Illinois State Collection Act of 1986 is
6amended by changing Section 5 as follows:
 
7    (30 ILCS 210/5)  (from Ch. 15, par. 155)
8    Sec. 5. Rules; payment plans; offsets.
9    (a) Until July 1, 2004 for the Department of Public Aid and
10July 1, 2005 for Universities and all other State agencies,
11State agencies shall adopt rules establishing formal due dates
12for amounts owing to the State and for the referral of
13seriously past due accounts to private collection agencies,
14unless otherwise expressly provided by law or rule, except that
15on and after July 1, 2005, the Department of Employment
16Security may continue to refer to private collection agencies

 

 

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1past due amounts that are exempt from subsection (g). Such
2procedures shall be established in accord with sound business
3practices.
4    (b) Until July 1, 2004 for the Department of Public Aid and
5July 1, 2005 for Universities and all other State agencies,
6agencies may enter deferred payment plans for debtors of the
7agency and documentation of this fact retained by the agency,
8where the deferred payment plan is likely to increase the net
9amount collected by the State, except that, on and after July
101, 2005, the Department of Employment Security may continue to
11enter deferred payment plans for debts that are exempt from
12subsection (g).
13    (c) Until July 1, 2004 for the Department of Public Aid and
14July 1, 2005 for Universities and all other State agencies,
15State agencies may use the Comptroller's Offset System provided
16in Section 10.05 of the State Comptroller Act for the
17collection of debts owed to the agency, except that, on and
18after July 1, 2005, the Department of Employment Security may
19continue to use the Comptroller's offset system to collect
20amounts that are exempt from subsection (g).
21    (c-1) All debts that exceed $250 $1,000 and are more than
2290 days past due shall be placed in the Comptroller's Offset
23System, unless (i) the State agency shall have entered into a
24deferred payment plan or demonstrates to the Comptroller's
25satisfaction that referral for offset is not cost effective; or
26(ii) the State agency is a university that elects to place in

 

 

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1the Comptroller's Offset System only debts that exceed $1,000
2and are more than 90 days past due. All debt, and maintenance
3of that debt, that is placed in the Comptroller's Offset System
4must be submitted electronically to the office of the
5Comptroller. Any exception to this requirement must be approved
6in writing by the Comptroller.
7    (c-2) Upon processing a deduction to satisfy a debt owed to
8a university or a State agency and placed in the Comptroller's
9Offset System in accordance with subsection (c-1), the
10Comptroller shall give written notice to the person subject to
11the offset. The notice shall inform the person that he or she
12may make a written protest to the Comptroller within 60 days
13after the Comptroller has given notice. The protest shall
14include the reason for contesting the deduction and any other
15information that will enable the Comptroller to determine the
16amount due and payable. If the person subject to the offset has
17not made a written protest within 60 days after the Comptroller
18has given notice, or if a final disposition is made concerning
19the deduction, the Comptroller shall pay the deduction to the
20university or the State agency.
21    (c-3) For a debt owed to a university or a State agency and
22placed in the Comptroller's Offset System in accordance with
23subsection (c-1), the Comptroller shall deduct, from a warrant
24or other payment, its processing charge and the amount
25certified as necessary to satisfy, in whole or in part, the
26debt owed to the university or the State agency. The

 

 

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1Comptroller shall deduct a processing charge of up to $15 per
2transaction for each offset and such charges shall be deposited
3into the Comptroller Debt Recovery Trust Fund.
4    (d) State agencies shall develop internal procedures
5whereby agency initiated payments to its debtors may be offset
6without referral to the Comptroller's Offset System.
7    (e) State agencies or the Comptroller may remove claims
8from the Comptroller's Offset System, where such claims have
9been inactive for more than one year.
10    (f) State agencies may use the Comptroller's Offset System
11to determine if any State agency is attempting to collect debt
12from a contractor, bidder, or other proposed contracting party.
13    (g) Beginning July 1, 2004 for the Departments of Public
14Aid (now Healthcare and Family Services) and Employment
15Security and July 1, 2005 for Universities and other State
16agencies, State agencies shall refer to the Department of
17Revenue Debt Collection Bureau (the Bureau) all debt to the
18State, provided that the debt satisfies the requirements for
19referral of delinquent debt as established by rule by the
20Department of Revenue.
21    (h) The Department of Healthcare and Family Services shall
22be exempt from the requirements of this Section with regard to
23child support debts, the collection of which is governed by the
24requirements of Title IV, Part D of the federal Social Security
25Act. The Department of Healthcare and Family Services may refer
26child support debts to the Bureau, provided that the debt

 

 

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1satisfies the requirements for referral of delinquent debt as
2established by rule by the Department of Revenue. The Bureau
3shall use all legal means available to collect child support
4debt, including those authorizing the Department of Revenue to
5collect debt and those authorizing the Department of Healthcare
6and Family Services to collect debt. All such referred debt
7shall remain an obligation under the Department of Healthcare
8and Family Services' Child Support Enforcement Program subject
9to the requirements of Title IV, Part D of the federal Social
10Security Act, including the continued use of federally mandated
11enforcement remedies and techniques by the Department of
12Healthcare and Family Services.
13    (h-1) The Department of Employment Security is exempt from
14subsection (g) with regard to debts to any federal account,
15including but not limited to the Unemployment Trust Fund, and
16penalties and interest assessed under the Unemployment
17Insurance Act. The Department of Employment Security may refer
18those debts to the Bureau, provided the debt satisfies the
19requirements for referral of delinquent debt as established by
20rule by the Department of Revenue. The Bureau shall use all
21legal means available to collect the debts, including those
22authorizing the Department of Revenue to collect debt and those
23authorizing the Department of Employment Security to collect
24debt. All referred debt shall remain an obligation to the
25account to which it is owed.
26    (i) All debt referred to the Bureau for collection shall

 

 

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1remain the property of the referring agency. The Bureau shall
2collect debt on behalf of the referring agency using all legal
3means available, including those authorizing the Department of
4Revenue to collect debt and those authorizing the referring
5agency to collect debt.
6    (j) No debt secured by an interest in real property granted
7by the debtor in exchange for the creation of the debt shall be
8referred to the Bureau. The Bureau shall have no obligation to
9collect debts secured by an interest in real property.
10    (k) Beginning July 1, 2003, each agency shall collect and
11provide the Bureau information regarding the nature and details
12of its debt in such form and manner as the Department of
13Revenue shall require.
14    (l) For all debt accruing after July 1, 2003, each agency
15shall collect and transmit such debtor identification
16information as the Department of Revenue shall require.
17(Source: P.A. 95-331, eff. 8-21-07.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.".