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| Public Act 096-0493 |
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AN ACT concerning finance.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois State Collection Act of 1986 is | ||||
amended by changing Section 10 as follows:
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(30 ILCS 210/10)
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Sec. 10. Department of Revenue Debt Collection Bureau to | ||||
assume
collection duties.
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(a) The Department of Revenue's Debt Collection Bureau | ||||
shall serve as the
primary debt
collecting entity for the State | ||||
and in that role shall collect debts on behalf
of agencies of | ||||
the State. All debts owed the State of Illinois shall be
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referred to the Bureau, subject to such limitations as the | ||||
Department of
Revenue shall by rule establish. The Bureau shall | ||||
utilize the Comptroller's
offset system and private collection | ||||
agencies, as well as its own collections
personnel. The Bureau | ||||
shall collect debt using all legal authority available to
the | ||||
Department of Revenue to collect debt and all legal authority | ||||
available to
the referring agency.
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(b) The Bureau shall have the sole authority to let | ||||
contracts with persons
specializing in debt collection for the | ||||
collection of debt referred to and
accepted by the Bureau. Any | ||||
contract with the debt
collector shall specify that the | ||||
collector's fee shall be on a contingency
basis and that the | ||
debt collector shall not be entitled to collect a
contingency | ||
fee for any debt collected through the efforts of any State | ||
offset
system.
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(c) The Department of Revenue shall adopt rules for the | ||
certification of
debt from referring agencies and shall adopt | ||
rules for the certification of
collection specialists to be | ||
employed by the Bureau.
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(d) The Department of Revenue shall adopt rules for | ||
determining when a debt
referred by an agency shall be deemed | ||
by the Bureau to be uncollectible.
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(e) Once an agency's debt is deemed by the Bureau to be | ||
uncollectible, the
Bureau shall return the debt to the | ||
referring agency which shall then write the
debt off as | ||
uncollectible in accordance with the requirements of the | ||
Uncollected State Claims Act or return the debt to the Bureau | ||
for additional
collection efforts. The Bureau shall refuse to | ||
accept debt that has been deemed
uncollectible absent factual | ||
assertions from the referring agency that due to
circumstances | ||
not known at the time the debt was deemed uncollectible that | ||
the
debt is worthy of additional collection efforts.
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(f) For each debt referred, the State agency shall retain | ||
all documents and
records relating to or supporting the debt. | ||
In the event a debtor shall raise a
reasonable doubt as to the | ||
validity of the debt, the Bureau may in its
discretion refer | ||
the debt back to the referring agency for further review and
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recommendation.
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(g) The Department of Healthcare and Family Services shall | ||
be exempt from the requirements of
this Section
with regard to | ||
child support debts, the collection of which is governed by the
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requirements of Title IV, Part D of the federal Social Security | ||
Act. The
Department of Healthcare and Family Services may refer | ||
child support debts to the Bureau, provided
that the debt | ||
satisfies the requirements for referral of delinquent debt as
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established by rule by the Department of Revenue. The Bureau | ||
shall use all
legal means available to collect child support | ||
debt, including those
authorizing the Department of Revenue to | ||
collect debt and those authorizing the
Department of Healthcare | ||
and Family Services to collect debt. All such referred debt | ||
shall remain
an obligation under the Department of Healthcare | ||
and Family Services' Child Support Enforcement
Program subject | ||
to the requirements of Title IV, Part D of the federal Social
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Security Act, including the continued use of federally mandated | ||
enforcement
remedies and techniques by the Department of | ||
Healthcare and Family Services.
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(g-1) The Department of Employment Security is exempt from | ||
subsection (a)
with regard to debts to any federal account, | ||
including but not limited to the
Unemployment Trust Fund, and | ||
penalties and interest assessed under the
Unemployment | ||
Insurance Act. The Department of Employment Security may refer
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those debts to the Bureau, provided the debt satisfies the | ||
requirements for
referral of delinquent debt as established by | ||
rule by the Department of
Revenue. The Bureau shall use all | ||
legal means available to collect the debts,
including those | ||
authorizing the Department of Revenue to collect debt and those
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authorizing the Department of Employment Security to collect | ||
debt. All
referred debt shall remain an obligation to the | ||
account to which it is owed.
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(h) The Debt Collection Fund is created as a special fund | ||
in the State
treasury. Debt collection contractors under this | ||
Act shall receive a
contingency fee as provided by the terms of | ||
their contracts with the Department
of Revenue. Thereafter, 20% | ||
of all amounts collected by the
Bureau, excluding amounts | ||
collected on behalf of the Departments of Healthcare and Family | ||
Services (formerly Public Aid)
and Revenue,
shall be deposited | ||
into the Debt Collection Fund, except that the Bureau shall not | ||
impose the 20% collection fee on any accounts referred by the | ||
General Assembly, the Supreme Court and several courts of this | ||
State, and the State executive branch constitutional officers. | ||
All remaining amounts
collected shall be deposited into the | ||
General Revenue Fund unless the funds are
owed to any State | ||
fund or funds other than the General Revenue Fund. Moneys in
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the Debt Collection Fund shall be appropriated only for the | ||
administrative
costs of the Bureau. On the last day of each | ||
fiscal year, unappropriated moneys
and moneys otherwise deemed | ||
unneeded for the next fiscal year remaining in the
Debt | ||
Collection Fund may be transferred into the General Revenue | ||
Fund at the
Governor's reasonable discretion. The provisions of | ||
this subsection do not
apply to debt that is exempt from | ||
subsection (a) pursuant to subsection (g-1)
or child support | ||
debt referred to the Bureau by the Department of Healthcare and | ||
Family Services (formerly
Department of Public
Aid) pursuant to | ||
this amendatory Act of the 93rd General Assembly. Collections
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arising from referrals from
the Department of Healthcare and | ||
Family Services (formerly
Department of Public Aid) shall be | ||
deposited into such fund or funds as the
Department of | ||
Healthcare and Family Services shall direct, in accordance with | ||
the requirements of
Title IV, Part D of the federal Social | ||
Security Act, applicable provisions of
State law, and the rules | ||
of the Department of Healthcare and Family Services. | ||
Collections arising
from referrals from the Department of | ||
Employment Security shall be deposited
into the fund or funds | ||
that the Department of Employment Security shall direct,
in | ||
accordance with the requirements of Section 3304(a)(3) of the | ||
federal
Unemployment Tax Act, Section 303(a)(4) of the federal | ||
Social Security Act, and
the Unemployment Insurance Act.
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(i) The Attorney General and the State Comptroller may | ||
assist in the debt
collection efforts of the Bureau, as | ||
requested by the Department of Revenue.
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(j) The Director of Revenue shall report annually to the | ||
General Assembly
and State Comptroller upon the debt collection | ||
efforts of the Bureau. Each
report shall include an analysis of | ||
the overdue debts owed to the State.
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(k) The Department of Revenue shall adopt rules and | ||
procedures for the
administration of this amendatory Act of the | ||
93rd General Assembly. The rules
shall be adopted under the
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Department of Revenue's emergency rulemaking authority within | ||
90 days following
the effective date of this amendatory Act of | ||
the 93rd General Assembly due to
the budget crisis threatening | ||
the public interest.
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(l) The Department of Revenue's Debt Collection Bureau's | ||
obligations under
this
Section 10 shall be subject to | ||
appropriation by the General Assembly.
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(Source: P.A. 95-331, eff. 8-21-07.)
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(30 ILCS 210/8 rep.)
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Section 10. The Illinois State Collection Act of 1986 is | ||
amended by repealing Section 8. | ||
Section 15. The Illinois Procurement Code is amended by | ||
changing Sections 50-11 and 50-60 as follows:
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(30 ILCS 500/50-11)
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Sec. 50-11. Debt delinquency.
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(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 or
any affiliate is
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delinquent in the payment of any debt to the State, unless the | ||
person or
affiliate 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 Bureau Board.
For purposes of this Section, | ||
the term "affiliate" means any entity that (1)
directly,
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indirectly, or constructively controls another entity, (2) is | ||
directly,
indirectly, or
constructively controlled by another | ||
entity, or (3) is subject to the control
of
a common
entity. | ||
For purposes of this subsection (a), a person controls an | ||
entity if the
person owns,
directly or individually, more than | ||
10% of the voting securities of that
entity.
As used in
this | ||
subsection (a), the term "voting security" means a security | ||
that (1)
confers upon the
holder the right to vote for the | ||
election of members of the board of directors
or similar
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governing body of the business or (2) is convertible into, or | ||
entitles the
holder to receive
upon its exercise, a security | ||
that confers such a right to vote. A general
partnership
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interest is a voting security.
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(b) Every bid submitted to and contract executed by the | ||
State shall contain
a certification by the bidder or contractor | ||
that the contractor and its
affiliate is not barred
from being | ||
awarded a contract under this Section and that the contractor
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acknowledges that the contracting State agency may declare the | ||
contract void if
the certification completed pursuant to this | ||
subsection (b) is false.
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(Source: P.A. 92-404, eff. 7-1-02; 93-25, eff. 6-20-03.)
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(30 ILCS 500/50-60)
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Sec. 50-60. Voidable contracts.
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(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.
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(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 Bureau Board shall adopt rules for | ||
the implementation of this
subsection (b).
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(c) If, during the term of a contract, the contracting | ||
agency determines
that the contractor is in violation of | ||
Section 50-10.5 of this Code, the
contracting
agency shall | ||
declare the contract void.
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(Source: P.A. 92-404, eff. 7-1-02; 93-600, eff. 1-1-04.)
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