Ill. Admin. Code tit. 74, § 320.50 - Collection through Use of the Comptroller's Offset Procedure
a) State agencies
may use the Comptroller's Offset System provided in Section
10.05 of the State
Comptroller Act (Ill. Rev. Stat. 1985, ch. 15, par. 210.05 ) for the collection
of debts owed to the agency. All debts that exceed $1,000 and are more than 1
year 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
(Ill. Rev. Stat. 1986 Supp., ch. 15, par. 155 (c)).
b) The cost effectiveness test will be met
where the total collection cost expended or anticipated will exceed the amount
of the claim that would reasonably be expected to be realized as a result of
those collection costs. The determination of "collection costs expended" shall
include the direct costs for processing the Agency's offset claims. For the
purposes of this Section, direct costs shall include, at a minimum the
following: personnel and related fringe benefits, office space, equipment,
supplies, and any other expenses determined by the agency to be directly
associated with the processing offsets by the Agency. The estimation of future
collections shall be based upon the historical collection efficiency of the
Comptroller's Offset System for the particular type of receivable. The
following examples set forth circumstances where referral for offset would not
be cost effective:
1) Excessive age of the
debt (e.g., initial investigation discloses that the debtor has changed
addresses or names, or will be impossible to locate);
2) Ongoing negotiations with the debtor
indicate that voluntary collection efforts will be successful;
3) A debtor company has ceased operations for
a long period of time;
4) A debtor
business has reorganized (e.g., from a sole proprietor to a partnership or
corporation);
5) A debt has been
placed with a private collection firm, and based on the collection firm's past
history, it is likely that they will collect the debt;
6) The age or health of the debtor is such
that is unlikely they will be receiving any payments from the State;
7) Foreign Student debtors who have left or
will soon be leaving the country; and
8) Individuals and corporations in
bankruptcy.
c) Requests
for offsets must comply with the rules established under 74 Ill. Adm. Code
285.
d) 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 (Ill. Rev. Stat. 1986 Supp.,
ch. 15, par. 155(e)). Such claims shall be removed when the agency or the
Comptroller determines that it is cost effective to do so (see subsection (b)
of this Section for the standards for determining cost effectiveness) or where
required by the doctrine of "due process of law" to do so.
e) A State agency which has submitted a claim
to the Comptroller for offset must notify the Comptroller as soon as possible,
but in no case later than 30 days, upon the occurrence of any event which
affects the existence or current collectibility of the debt, such as payments
received other than through a successful offset or the filing of a bankruptcy
petition.
Notes
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