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90_SB0613
30 ILCS 210/5 from Ch. 15, par. 155
30 ILCS 210/7 from Ch. 15, par. 157
30 ILCS 210/8 rep.
Amends the Illinois State Collection Act of 1986.
Provides that all debts owed to State agencies that exceed
$1,000 and are more than 4 months past due shall be placed in
the Comptroller's Offset System (now that exceed $1,000 and
are more than one year past due). Provides that agencies may
require that vendors in the area of account collection be
prequalified. Provides that collection contracts shall
provide for a contingent fee. Provides that the contractor
shall remit the amount collected, net of contingent fee, to
the respective State agency, which shall deposit the amount
into the fund that would have received the receipt had it
been collected by the agency. Repeals the Section creating
the Debt Collection Board.
LRB9003102KDmb
LRB9003102KDmb
1 AN ACT to amend the Illinois State Collection Act of 1986
2 by changing Sections 5 and 7.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois State Collection Act of 1986 is
6 amended by changing Sections 5 and 7 as follows:
7 (30 ILCS 210/5) (from Ch. 15, par. 155)
8 Sec. 5. (a) State agencies shall adopt rules
9 establishing formal due dates for amounts owing to the State
10 and for the referral of seriously past due accounts to
11 private collection agencies, unless otherwise expressly
12 provided by law or rule. Such procedures shall be
13 established in accord with sound business practices.
14 (b) Agencies may enter deferred payment plans for
15 debtors of the agency and documentation of this fact retained
16 by the agency, where the deferred payment plan is likely to
17 increase the net amount collected by the State.
18 (c) State agencies may use the Comptroller's Offset
19 System provided in Section 10.05 of the State Comptroller Act
20 for the collection of debts owed to the agency. All debts
21 that exceed $1,000 and are more than 4 months 1 year past due
22 shall be placed in the Comptroller's Offset System, unless
23 the State agency shall have entered into a deferred payment
24 plan or demonstrates to the Comptroller's satisfaction that
25 referral for offset is not cost effective.
26 (d) State agencies shall develop internal procedures
27 whereby agency initiated payments to its debtors may be
28 offset without referral to the Comptroller's Offset System.
29 (e) State agencies or the Comptroller may remove claims
30 from the Comptroller's Offset System, where such claims have
31 been inactive for more than one year.
-2- LRB9003102KDmb
1 (Source: P.A. 85-814.)
2 (30 ILCS 210/7) (from Ch. 15, par. 157)
3 Sec. 7. Upon agreement of the Attorney General, agencies
4 may contract for legal assistance in collecting past due
5 accounts. In addition, agencies may contract with outside
6 vendors with demonstrated capabilities in the area of account
7 collection for collection assistance where such assistance is
8 determined by the agency to be in the best economic interest
9 of the State. Agencies may require that the vendors be
10 prequalified. All contracts shall provide for a contingent
11 fee based on the age, nature, amount, and type of delinquent
12 account. The agencies may adopt a reasonable classification
13 schedule for the various receivables. The contractor shall
14 remit the amount collected, net of the contingent fee, to the
15 respective State agency, which shall deposit the net amount
16 received into the fund that would have received the receipt
17 had it been collected by the State agency. Agencies may
18 utilize monies that, subject to appropriation, may be
19 available to the agency or moneys in the Accounts Receivable
20 Fund to pay for such legal and collection assistance;
21 provided, however, that no more than 20% of collections on an
22 account may be paid from the Accounts Receivable Fund as
23 compensation for legal and collection assistance on that
24 account. If the amount available for expenditure from the
25 Accounts Receivable Fund is insufficient to pay the cost of
26 such services, the difference, up to 40% of the total
27 collections per account, may be paid from other monies which
28 may be available to the Agency.
29 (Source: P.A. 85-814.)
30 (30 ILCS 210/8 rep.)
31 Section 10. The Illinois State Collection Act of 1986 is
32 amended by repealing Section 8.