SB 735

This bill requires that a county having a population of 750,000 or more and

containing a first class city enter into an agreement with the Department of Revenue

(DOR) to have DOR collect the county's debt, including debt owed to the county

circuit court. Other counties are allowed, but not required, to enter into agreements

with DOR to collect debt. All such agreements must provide that DOR charge a

collection fee to the county for collecting the debt. Under current law, counties may

enter into debt collection agreements with DOR, and DOR may charge an

administrative fee for collecting debts.

The bill provides that a debt collection agreement between DOR and a county

having a population of 750,000 or more and containing a first class city may take

effect by the county executive's written proclamation, without any action being taken

by, or approval needed from, the county board. The county must certify for collection

all debts that are more than 90 days past due, except the county may not certify for

collection restitution owed to a person other than the county. If DOR determines that

any certified debts are uncollectible, DOR will notify the county of the uncollectible

debts and the county may contract with another debt collector to collect those debts.

The bill also authorizes the county executive to establish a division of revenue

within the county's department of administration that is responsible for the efficient

collection of accounts receivable and the administration of debts collected by DOR.

The division is required to establish payment plans for debtors who meet certain

income limitations. In general, the division may offer payment plans, including

installment plans, to a debtor whose annual household income is less than 150

percent of the federal poverty line for the size of the debtor's household.

Finally, if DOR determines that the county has not certified its debts to DOR

to the fullest extent possible, DOR will notify the county of the revenue that it would

have collected had the the county completely certified its debts. In addition, DOR

will notify the county of the units of county government responsible for not certifying

debts and the county must reduce its funding to such units in proportion to the

amounts not collected.