SB1291eng 103RD GENERAL ASSEMBLY

SB1291 Engrossed LRB103 27559 LNS 53934 b

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois State Collection Act of 1986 is amended by adding Section 10.3 and 10.4 as follows:

(30 ILCS 210/10.3 new)

Sec. 10.3. Five-year limitation. Except in the case of fraud, if a State agency fails to provide a debtor with written notice and a demand for payment of any debt, accounts, or claims owed to the State agency with 5 years of when the State agency's right to collect the debt first accrued, then the State agency is barred from attempting to collect such debt, accounts, or claims owed to it by the debtor. This Section does not apply to taxes, fines, or fees.

(30 ILCS 210/10.4 new)

Sec. 10.4. Ten-year limitation. When a State agency is attempting to collect outstanding health benefits premiums from a covered employee who was reinstated to employment status after a grievance resolution, the State agency shall provide the employee with a written notice and demand for payment of the premiums within 10 years of when the State agency's right to collect the premiums first accrued. Otherwise, the State agency is barred from attempting to collect such premiums.

Section 10. The Code of Civil Procedure is amended by changing Section 13-205 as follows:

(735 ILCS 5/13-205) (from Ch. 110, par. 13-205)

Sec. 13-205. Five year limitation.

(a) Except as provided in Section 2-725 of the "Uniform Commercial Code", approved July 31, 1961, as amended, and Section 11-13 of "The Illinois Public Aid Code", approved April 11, 1967, as amended, actions on unwritten contracts, expressed or implied, or on awards of arbitration, or to recover damages for an injury done to property, real or personal, or to recover the possession of personal property or damages for the detention or conversion thereof, and all civil actions not otherwise provided for, shall be commenced within 5 years next after the cause of action accrued.

(b) Except in the case of fraud or where facts material to the State agency's right to collect the debt were not known nor could reasonably have been known by the State agency's official charged with the responsibility to discover and collect the debt, an action by a State agency may not be conducted more than 5 years after the State agency's right to collect the debt first accrued. This subsection does not apply to taxes, fines, or fees.

(Source: P.A. 82-280.)