Full Text of SB3694 97th General Assembly
SB3694 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB3694 Introduced 2/10/2012, by Sen. Ira I. Silverstein SYNOPSIS AS INTRODUCED: |
| 30 ILCS 210/5 | from Ch. 15, par. 155 |
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Amends the Illinois State Collection Act of 1986. Provides that all debts owed to State agencies that exceed $250 (now, $1,000) and are more than 90 days past due shall be placed in the Comptroller's Offset System. Provides that all debt, and maintenance of that debt, that is placed in the Comptroller's Offset System must be submitted electronically to the office of the Comptroller. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning 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 5 as follows:
| 6 | | (30 ILCS 210/5) (from Ch. 15, par. 155)
| 7 | | Sec. 5. Rules; payment plans; offsets.
| 8 | | (a) Until July 1, 2004 for the Department of Public
Aid
and | 9 | | July 1, 2005 for Universities and all other State agencies,
| 10 | | State agencies shall adopt rules establishing formal due
dates | 11 | | for amounts owing to the State and for the referral of
| 12 | | seriously past due accounts to private collection agencies, | 13 | | unless
otherwise expressly provided by law or rule, except that | 14 | | on and after July 1,
2005, the Department of Employment | 15 | | Security may continue to refer to private
collection agencies | 16 | | past due amounts that are exempt from subsection (g).
Such | 17 | | procedures shall be
established in accord with sound business | 18 | | practices.
| 19 | | (b) Until July 1, 2004 for the Department of
Public Aid and | 20 | | July 1, 2005 for Universities and all other State agencies,
| 21 | | agencies may enter deferred payment plans for debtors of the | 22 | | agency
and documentation of this fact retained by the agency, | 23 | | where the deferred
payment plan is likely to increase the net |
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| 1 | | amount collected by the State,
except that, on and after July | 2 | | 1, 2005, the Department of Employment Security
may continue to | 3 | | enter deferred payment plans for debts that are exempt from
| 4 | | subsection (g).
| 5 | | (c) Until July 1, 2004 for the Department of
Public Aid
and | 6 | | July 1, 2005 for Universities and all other State agencies,
| 7 | | State agencies may use the Comptroller's Offset
System provided | 8 | | in
Section 10.05 of the State Comptroller Act for the | 9 | | collection of debts owed
to the agency, except that, on and | 10 | | after July 1, 2005, the Department of
Employment Security may | 11 | | continue to use the Comptroller's offset system to
collect | 12 | | amounts that are exempt from subsection (g). | 13 | | (c-1) All debts that exceed
$250 $1,000 and are more than | 14 | | 90 days past
due shall be placed in the Comptroller's Offset | 15 | | System, unless the State
agency shall have entered into a | 16 | | deferred payment plan or demonstrates to
the Comptroller's | 17 | | satisfaction that referral for offset is not cost effective. | 18 | | All debt, and maintenance of that debt, that is placed in the | 19 | | Comptroller's Offset System must be submitted electronically | 20 | | to the office of the Comptroller. Any exception to this | 21 | | requirement must be approved in writing by the Comptroller.
| 22 | | (d) State agencies shall develop internal procedures | 23 | | whereby
agency initiated payments to its debtors may be offset | 24 | | without referral to
the Comptroller's Offset System.
| 25 | | (e) State agencies or the Comptroller may remove claims | 26 | | from the
Comptroller's Offset System, where such claims have |
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| 1 | | been inactive for more
than one year.
| 2 | | (f) State agencies may use the Comptroller's Offset System | 3 | | to determine if
any State agency is attempting to collect debt | 4 | | from a contractor, bidder, or
other proposed contracting party.
| 5 | | (g) Beginning July 1, 2004 for the Departments of Public | 6 | | Aid (now Healthcare and Family Services) and
Employment | 7 | | Security and July 1, 2005 for Universities and other State | 8 | | agencies,
State agencies shall refer to the Department of | 9 | | Revenue Debt Collection Bureau
(the Bureau) all debt to the | 10 | | State, provided that the debt satisfies the
requirements
for | 11 | | referral of delinquent debt as established by rule by the | 12 | | Department of
Revenue.
| 13 | | (h) The Department of Healthcare and Family Services shall | 14 | | be exempt from the requirements of
this Section with regard to | 15 | | child support debts, the collection of which is
governed by the | 16 | | requirements of Title IV, Part D of the federal Social Security
| 17 | | Act. The Department of Healthcare and Family Services may refer | 18 | | child support debts to the Bureau,
provided that the debt | 19 | | satisfies the requirements for referral of delinquent
debt as
| 20 | | established by rule by the Department of Revenue. The Bureau | 21 | | shall use all
legal means available to collect child support | 22 | | debt, including those
authorizing the Department of Revenue to | 23 | | collect debt and those authorizing the
Department of Healthcare | 24 | | and Family Services to collect debt. All such referred debt | 25 | | shall remain
an obligation under the Department of Healthcare | 26 | | and Family Services' Child
Support Enforcement Program subject |
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| 1 | | to the requirements of Title IV, Part D of
the federal Social | 2 | | Security Act, including the continued use of federally
mandated | 3 | | enforcement remedies and techniques by the Department of | 4 | | Healthcare and Family Services.
| 5 | | (h-1) The Department of Employment Security is exempt from | 6 | | subsection (g)
with regard to debts to any federal account, | 7 | | including but not limited to the
Unemployment Trust Fund, and | 8 | | penalties and interest assessed under the
Unemployment | 9 | | Insurance Act. The Department of Employment Security may refer
| 10 | | those debts to the Bureau, provided the debt satisfies the | 11 | | requirements for
referral of delinquent debt as established by | 12 | | rule by the Department of
Revenue. The Bureau shall use all | 13 | | legal means available to collect the debts,
including those | 14 | | authorizing the Department of Revenue to collect debt and those
| 15 | | authorizing the Department of Employment Security to collect | 16 | | debt. All
referred debt shall remain an obligation to the | 17 | | account to which it is owed.
| 18 | | (i) All debt referred to the Bureau for collection shall | 19 | | remain the property
of the referring agency. The Bureau shall | 20 | | collect debt on behalf of the
referring agency using all legal | 21 | | means available, including those authorizing
the Department of | 22 | | Revenue to collect debt and those authorizing the referring
| 23 | | agency to collect debt.
| 24 | | (j) No debt secured by an interest in real property granted | 25 | | by the debtor in
exchange for the creation of the debt shall be | 26 | | referred to the Bureau. The
Bureau shall have no obligation to |
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| 1 | | collect debts secured by an interest in real
property.
| 2 | | (k) Beginning July 1, 2003, each agency shall collect and | 3 | | provide the Bureau
information regarding the nature and details | 4 | | of its debt in such form and
manner as the Department of | 5 | | Revenue shall require.
| 6 | | (l) For all debt accruing after July 1, 2003, each agency | 7 | | shall collect and
transmit such debtor identification | 8 | | information as the Department of Revenue
shall require.
| 9 | | (Source: P.A. 95-331, eff. 8-21-07.)
| 10 | | Section 99. Effective date. This Act takes effect upon | 11 | | becoming law.
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