SB 1291

Abstract

Amends the Illinois State Collection Act of 1986. Provides that except in the case of fraud, if a State agency fails to provide a debtor with written notice and a demand for payment of any debt, accounts, or claims owed to the State agency with 5 years of when the State agency's right to collect the debt first accrued, then the State agency is barred from attempting to collect such debt, accounts, or claims owed to it by the debtor. Amends the Personal Actions Part of the Limitations Article of the Code of Civil Procedure. Provides that except in the case of fraud or where facts material to the State agency's right to collect the debt were not known nor could reasonably have been known by the State agency's official charged with the responsibility to discover and collect the debt, an action by a State agency may not be conducted more than 5 years after the State agency's right to collect the debt first accrued. Senate Committee Amendment No. 1 Provides that the 5-year limitation does not apply to taxes, fines, or fees. Senate Floor Amendment No. 2 Adds reference to: 30 ILCS 210/10.4 new Further amends the Illinois State Collection Act of 1986. Provides that when a State agency is attempting to collect outstanding health benefits premiums from a covered employee who was reinstated to employment status after a grievance resolution, the State agency shall provide the employee with a written notice and demand for payment of the premiums within 10 years of when the State agency's right to collect the premiums first accrued; otherwise, the State agency is barred from attempting to collect such premiums. House Committee Amendment No. 2 Deletes reference to: 30 ILCS 210/10.3 new 735 ILCS 5/13-205 Adds reference to: 305 ILCS 5/12-12 from Ch. 23, par. 12-12 Replaces everything after the enacting clause. Amends the Administration Article of the Illinois Public Aid Code. Provides that, in matters concerning the recovery of overpayments for benefits provided by the Department of Human Services, the Department shall send a recipient written notice and a demand for payment of any amount in overpaid benefits owed within 5 years after the Department's right to collect the overpayment first accrued. Requires the Department to issue such notice by certified mail to the recipient's last known mailing address. Provides that actions for the recovery of overpayments shall be commenced within 10 years after the date the notice was sent.