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92nd General Assembly

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Public Act 92-0404

SB1039 Enrolled                                LRB9205338REdv

    AN ACT concerning State finances.

    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 changing Section 5 as follows:

    (30 ILCS 210/5) (from Ch. 15, par. 155)
    Sec. 5.  Rules; payment plans; offsets.
    (a)  State agencies shall adopt rules establishing formal
due dates for amounts owing to the State and for the referral
of  seriously  past  due  accounts  to   private   collection
agencies, unless otherwise expressly provided by law or rule.
Such  procedures  shall  be  established in accord with sound
business practices.
    (b)  Agencies  may  enter  deferred  payment  plans   for
debtors of the agency and documentation of this fact retained
by  the  agency, where the deferred payment plan is likely to
increase the net amount collected by the State.
    (c)  State agencies  may  use  the  Comptroller's  Offset
System provided in Section 10.05 of the State Comptroller Act
for  the  collection  of debts owed to the agency.  All debts
that exceed $1,000 and are more than 90 days past  due  shall
be  placed  in  the  Comptroller's  Offset System, unless the
State agency shall have entered into a deferred payment  plan
or   demonstrates  to  the  Comptroller's  satisfaction  that
referral for offset is not cost effective.
    (d)  State agencies  shall  develop  internal  procedures
whereby  agency  initiated  payments  to  its  debtors may be
offset without referral to the Comptroller's Offset System.
    (e)  State agencies or the Comptroller may remove  claims
from  the Comptroller's Offset System, where such claims have
been inactive for more than one year.
    (f)  State agencies  may  use  the  Comptroller's  Offset
System  to  determine  if  any  State agency is attempting to
collect debt from a contractor,  bidder,  or  other  proposed
contracting party.
(Source: P.A. 90-332, eff. 1-1-98.)

    Section  10.  The Illinois Procurement Code is amended by
changing  Section  50-60  and  by  adding  Section  50-11  as
follows:

    (30 ILCS 500/50-11 new)
    Sec. 50-11.  Debt delinquency.
    (a)  No person shall submit a bid for  or  enter  into  a
contract  with  a State agency under this Code if that person
knows or should know that he or  she  is  delinquent  in  the
payment  of  any  debt  to  the  State, unless the person has
entered into a deferred payment plan to  pay  off  the  debt.
For  purposes  of this Section, the phrase "delinquent in the
payment  of  any  debt"  shall  be  determined  by  the  Debt
Collection Board.
    (b)  Every bid submitted to and contract executed by  the
State   shall  contain  a  certification  by  the  bidder  or
contractor that the  contractor  is  not  barred  from  being
awarded a contract under this Section and that the contractor
acknowledges  that  the  contracting State agency may declare
the contract void if the certification completed pursuant  to
this subsection (b) is false.

    (30 ILCS 500/50-60)
    Sec. 50-60.  Voidable contracts.
    (a)  If  any  contract  is  entered  into  or purchase or
expenditure of funds is made in violation of this Code or any
other law, the contract may be declared  void  by  the  chief
procurement officer or may be ratified and affirmed, provided
the chief procurement officer determines that ratification is
in  the  best  interests  of  the  State.  If the contract is
ratified and affirmed, it shall be without prejudice  to  the
State's rights to any appropriate damages.
    (b)  If,  during  the term of a contract, the contracting
agency determines that the contractor is  delinquent  in  the
payment  of  debt as set forth in Section 50-11 of this Code,
the  State  agency  may  declare  the  contract  void  if  it
determines that voiding the contract is in the best interests
of the State.  The Debt Collection Board  shall  adopt  rules
for the implementation of this subsection (b).
(Source: P.A. 90-572, eff. 2-6-98.)

    Section  99.   Effective  date.  This Act takes effect on
July 1, 2002.
    Passed in the General Assembly May 22, 2001.
    Approved August 16, 2001.

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