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| Public Act 097-0759 | ||||
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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 5 as follows:
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(30 ILCS 210/5) (from Ch. 15, par. 155)
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Sec. 5. Rules; payment plans; offsets.
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(a) Until July 1, 2004 for the Department of Public
Aid
and | ||||
July 1, 2005 for Universities and all other State agencies,
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State agencies shall adopt rules establishing formal due
dates | ||||
for amounts owing to the State and for the referral of
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seriously past due accounts to private collection agencies, | ||||
unless
otherwise expressly provided by law or rule, except that | ||||
on and after July 1,
2005, the Department of Employment | ||||
Security may continue to refer to private
collection agencies | ||||
past due amounts that are exempt from subsection (g).
Such | ||||
procedures shall be
established in accord with sound business | ||||
practices.
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(b) Until July 1, 2004 for the Department of
Public Aid and | ||||
July 1, 2005 for Universities and all other State agencies,
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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,
except that, on and after July | ||
1, 2005, the Department of Employment Security
may continue to | ||
enter deferred payment plans for debts that are exempt from
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subsection (g).
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(c) Until July 1, 2004 for the Department of
Public Aid
and | ||
July 1, 2005 for Universities and all other State agencies,
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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, except that, on and | ||
after July 1, 2005, the Department of
Employment Security may | ||
continue to use the Comptroller's offset system to
collect | ||
amounts that are exempt from subsection (g). | ||
(c-1) All debts that exceed
$250 $1,000 and are more than | ||
90 days past
due shall be placed in the Comptroller's Offset | ||
System, unless (i) 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; or | ||
(ii) the State agency is a university that elects to place in | ||
the Comptroller's Offset System only debts that exceed $1,000 | ||
and are more than 90 days past due. All debt, and maintenance | ||
of that debt, that is placed in the Comptroller's Offset System | ||
must be submitted electronically to the office of the | ||
Comptroller. Any exception to this requirement must be approved | ||
in writing by the Comptroller. | ||
(c-2) Upon processing a deduction to satisfy a debt owed to | ||
a university or a State agency and placed in the Comptroller's | ||
Offset System in accordance with subsection (c-1), the | ||
Comptroller shall give written notice to the person subject to | ||
the offset. The notice shall inform the person that he or she | ||
may make a written protest to the Comptroller within 60 days | ||
after the Comptroller has given notice. The protest shall | ||
include the reason for contesting the deduction and any other | ||
information that will enable the Comptroller to determine the | ||
amount due and payable. If the person subject to the offset has | ||
not made a written protest within 60 days after the Comptroller | ||
has given notice, or if a final disposition is made concerning | ||
the deduction, the Comptroller shall pay the deduction to the | ||
university or the State agency. | ||
(c-3) For a debt owed to a university or a State agency and | ||
placed in the Comptroller's Offset System in accordance with | ||
subsection (c-1), the Comptroller shall deduct, from a warrant | ||
or other payment, its processing charge and the amount | ||
certified as necessary to satisfy, in whole or in part, the | ||
debt owed to the university or the State agency. The | ||
Comptroller shall deduct a processing charge of up to $15 per | ||
transaction for each offset and such charges shall be deposited | ||
into the Comptroller Debt Recovery Trust Fund.
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(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.
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(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.
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(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.
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(g) Beginning July 1, 2004 for the Departments of Public | ||
Aid (now Healthcare and Family Services) and
Employment | ||
Security and July 1, 2005 for Universities and other State | ||
agencies,
State agencies shall refer to the Department of | ||
Revenue Debt Collection Bureau
(the Bureau) all debt to the | ||
State, provided that the debt satisfies the
requirements
for | ||
referral of delinquent debt as established by rule by the | ||
Department of
Revenue.
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(h) 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 | ||
requirements of Title IV, Part D of the federal Social Security
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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 | ||
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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(h-1) The Department of Employment Security is exempt from | ||
subsection (g)
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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(i) All debt referred to the Bureau for collection shall | ||
remain the property
of the referring agency. The Bureau shall | ||
collect debt on behalf of the
referring agency using all legal | ||
means available, including those authorizing
the Department of | ||
Revenue to collect debt and those authorizing the referring
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agency to collect debt.
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(j) No debt secured by an interest in real property granted | ||
by the debtor in
exchange for the creation of the debt shall be | ||
referred to the Bureau. The
Bureau shall have no obligation to | ||
collect debts secured by an interest in real
property.
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(k) Beginning July 1, 2003, each agency shall collect and | ||
provide the Bureau
information regarding the nature and details | ||
of its debt in such form and
manner as the Department of | ||
Revenue shall require.
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(l) For all debt accruing after July 1, 2003, each agency | ||
shall collect and
transmit such debtor identification | ||
information as the Department of Revenue
shall require.
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(Source: P.A. 95-331, eff. 8-21-07.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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