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90_SB1088
New Act
Creates the State Debtor Act. Requires State agencies to
refuse to issue or renew licenses of individuals or entities
who owe an obligation or debt of $1,000 or more to the State.
Provides that the Attorney General shall compile lists of
persons owing certain debts to the State and send those lists
to certain State agencies. Those agencies shall deny the
issuance or renewal of licenses to persons on the list.
Persons denied licenses or renewal of licenses shall be given
an opportunity to contest the denial or enter into a
repayment plan that satisfies the requirements of the Act.
Requires the Attorney General to ensure compliance with the
Act. Effective immediately.
LRB9002605MWpc
LRB9002605MWpc
1 AN ACT to create the State Debtor Act.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short Title. This Act may be cited as the
5 State Debtor Act.
6 Section 5. Definitions.
7 "Agency" means each officer, board, commission, and
8 agency created by the Constitution, whether in the executive,
9 legislative, or judicial branch of State government, but
10 other than the circuit court; each officer, department,
11 board, commission, agency, institution, authority,
12 university, and body politic and corporate of the State; each
13 administrative unit or corporate outgrowth of State
14 government that is created by or pursuant to statute, other
15 than units of local government and their officers, school
16 districts, and boards of election commissioners; and each
17 administrative unit or corporate outgrowth of the above and
18 as may be created by executive order of the Governor.
19 "Debt or obligation" means (i) a debt or obligation of
20 $1,000 or more owed to the State of Illinois that has been
21 certified as uncollectible by the Attorney General under the
22 Uncollected State Claims Act, has been reported under that
23 Act, or is reportable under that Act or (ii) a debt or
24 obligation of $10,000 or more owed to the State of Illinois
25 that has been settled with the State for a sum less than the
26 outstanding balance and has not received the approval of the
27 Attorney General. "Debt or obligation" under this Act does
28 not include debts discharged under federal bankruptcy laws.
29 "License" includes the whole or part of any agency
30 permit, certificate, approval, registration, charter, or
31 similar form of permission required by law. Licenses
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1 include, but are not limited to, riverboat owners licenses,
2 driver's licenses, and professional licenses.
3 "Person" means any individual or any other entity.
4 "Person with an interest" means any person who is an
5 officer, director, partner, or holder of a 1% or greater
6 direct or indirect pecuniary interest in an entity.
7 "Time of application" means the date on which an
8 application for a license is made or, in the case of an
9 application for license renewal, the date on which an
10 application for a license renewal is made.
11 Section 10. Licensure prohibited. An agency shall refuse
12 to issue or renew a license to:
13 (1) a person who, at the time of the application,
14 owes a debt or obligation to the State;
15 (2) a person with an interest in an entity that, at
16 the time of the application, owes a debt or obligation to
17 the State;
18 (3) an entity in which, at the time of application,
19 a person with an interest in the entity owes a debt or
20 obligation to the State; or
21 (4) an entity in which, at the time of application,
22 a person with an interest in the entity also has an
23 interest in another entity that owes a debt or
24 obligation to the State.
25 An agency proposing to settle a debt or obligation of
26 $10,000 or more for less than the outstanding balance shall
27 forward the settlement to the Attorney General for his or her
28 approval. Settlements of over $10,000 that require the
29 approval of the Attorney General under this Act or existing
30 law and that do not have the Attorney General's approval
31 shall be subject to the license denial procedures of this
32 Act.
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1 Section 15. List of persons owing debts to the State.
2 The Attorney General shall compile a list of persons owing a
3 debt or obligation under Section 10 of this Act and shall
4 forward the list to all State agencies that issue licenses
5 subject to this Act. The Attorney General shall forward the
6 list twice per year, on or before January 1 and July 1 of
7 each year.
8 Section 20. Denial of licenses. Upon receiving a list
9 of State debtors under Section 10, a State agency shall match
10 the names on the list with a list of all persons applying
11 for, or seeking renewal of, a license by that State agency.
12 If a person on the list issued under Section 15 applies or
13 has applied for, or seeks or is seeking renewal of, a license
14 from a State agency, that State agency shall immediately send
15 a notice of denial of the license to that person and to the
16 Attorney General. The Attorney General may use any
17 information provided about the debtor on the license
18 application in pursuing the collection of the debt or
19 obligation owed to the State.
20 The notice of denial shall inform the applicant of the
21 reason for the denial, the specific debt or obligation owed
22 to the State, and the agency's procedures for contesting the
23 denial. Each licensing agency shall adopt rules allowing a
24 license applicant denied under this Act to contest the
25 denial. The rules shall provide that a licensee wishing to
26 contest a denial must initiate proceedings with the licensing
27 agency within 60 days of the date the license was denied.
28 If a person owing a debt or obligation enters into a
29 repayment plan with the State and the State agency issuing a
30 license is satisfied that the repayment plan represents the
31 best efforts of the debtor to satisfy its debt or obligation,
32 the State agency may issue a license to that debtor if all
33 other requirements for licensure are met. For debts or
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1 obligations of $10,000 or more, a repayment plan with the
2 State that does not result in full repayment of the debt
3 within 10 years must be submitted to the Attorney General for
4 approval before a license may issue under this Act. Upon
5 making a determination that a license will be issued based on
6 a satisfactory repayment plan, the licensing agency shall
7 forward notice of license approval, along with any available
8 information it has on the debt or obligation and any
9 repayment plan entered into, to the Office of the Attorney
10 General. If a license is issued after an agency is satisfied
11 that a satisfactory repayment plan exists, and the licensee
12 subsequently defaults under the repayment plan, automatic
13 revocation of the issued license shall occur.
14 Section 25. Responsibility of Attorney General. It is
15 the responsibility of the Attorney General to ensure that the
16 provisions and intent of this Act are fully carried out.
17 Section 99. Effective date. This Act takes effect upon
18 becoming law.