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Synopsis As Introduced Amends the State Finance Act and the Illinois State Collection Act of 1986. Requires that the Auditor General establish a Debt Collection Unit for the collection of overdue debts owed to the State. Authorizes the Auditor General to contract with private entities for the collection of debts. Beginning July 1, 2004, requires State agencies other than universities to determine the uncollectibility of debts using rules adopted by the Auditor General and to turn over to the Debt Collection Unit debts more than 90 days overdue. Exempts confidential debts owed to the Department of Revenue. Permits universities to use the Auditor General's rules and to turn debts over to the Debt Collection Unit. Requires that 10% of debts collected by the Debt Collection Unit be deposited into a special fund in the State treasury for payment of the Unit's administrative costs. Makes the Department of Public Aid's participation optional with regard to child support debt. Provides separate procedures for the deposit and use of collected child support. Requires the Auditor General to report semi-annually to the General Assembly and State Comptroller upon debts owed to the State and upon collection efforts. Abolishes in 2004 the Debt Collection Board, the Comptroller's use of special account receivable funds, and the use of private collection services by individual State agencies. Effective immediately.
House Committee Amendment No. 1 Deletes everything. Reinserts House Bill 89 with the following changes: Places the Debt Collection Unit within the Department of Revenue and authorizes the Department to adopt emergency rules, on the basis of the budget crisis, for its administration. Authorizes the Unit, rather than individual agencies, to contract for legal services. Prohibits the renewal of legal service contracts entered before the bill's effective date, rather than before July 1, 2004. Repeals the Section creating the Debt Collection Board 30 days after the bill's effective date, rather than July 1, 2004, and requires the Board to furnish records and a status report to the Unit. A collected debt shall be used first for the collector's fee, then 5% to the Debt Collection Fund, then to the special fund or funds owed the debt, and any unidentifiable portion to the General Revenue Fund. Effective immediately.
Fiscal Note (H-AM1) (Department of Central Management Services)
No fiscal impact.
House Floor Amendment No. 2 Deletes everything. Reinserts the provisions of House Amendment No. 1 with the following changes: Renames the Debt Collection Unit as the Debt Collection Bureau and retains the Debt Collection Board for the administration of debt not otherwise referred to the Bureau as the State's primary debt collection entity. Exempts certain debts owed to the Department of Employment Security. Makes other changes. Effective immediately.
Fiscal Note (H-AM 2) (Department of Revenue)
The cost estimate for fiscal year 04 is $1.4 million for additional staff. FY 05 is estimated to cost $6.7 million for additional staff, and for technology upgrades to the collection system. FY 06 is estimated to cost $8.6 million for additional staff, technology upgrades, and expansion of phone systems. FY 07 is estimated to cost $5.3 million for the annualization of all new positions (total of 75). The Department estimates that the pool of eligible current receivables is approximately $720 million. Collections from fiscal year 2004 through fiscal year 2008 are estimated to total $166 million. Because of the unknown nature of debt that is at other State agencies, the collection estimates are an order of magnitude only. The Department does not know what type of debt other agencies have, how records on this debt are kept, or how many accounts there are.
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