Bill
HB 2588
The bill lets the Comptroller deduct up to 25% of state payments to satisfy debts owed to intergovernmental entities like risk pools and associations, expanding collection authorit
Status
- Introduced: February 7, 2025 (Rep. Anthony DeLuca, primary sponsor).
- Recent procedural status: House Floor Amendment No. 1 (Rule 19) filed and bill re‑referred to Rules Committee (4/7/2025–4/11/2025). Companion: SB 541.
- Effective date (as written): upon becoming law.
Purpose / Intent
- To expand and clarify the Comptroller’s authority to offset (deduct) state payments/warrants to satisfy amounts owing to certain intergovernmental entities, including intergovernmental risk management associations and self‑insurance pools, and to provide procedures for such offsets.
Key provisions
- Adds “a public agency or association organized under an intergovernmental agreement in accordance with the Intergovernmental Cooperation Act” (explicitly including intergovernmental risk management associations and self‑insurance pools) to the list of entities entitled to collect by offset against warrants or other state payments.
- Authorizes the Comptroller to ascertain amounts due to those intergovernmental entities and to draw warrants or make deductions from payments held by the State Treasurer to satisfy those obligations.
- Preserves the existing 25% cap: deductions from wage/salary payments, contractual payments for personal services, or pension/annuity payments under the Illinois Pension Code may not exceed 25% of the payee’s net amount.
- Retains existing exemptions and limits (e.g., certain trust fund and tuition/prepaid fund protections; child support trust fund rules), and the requirement that the Comptroller notify the payee and submitting agency of the reason for any deduction and keep records.
- Authorizes the Comptroller to enter intergovernmental agreements to implement offsets and to coordinate reciprocal offsets with federal authorities (e.g., U.S. Treasury) under the Illinois State Collection Act.
- Requirement accompanying a deduction request (as proposed in floor amendments):
- House Amendment 001: a deduction request under an intergovernmental agreement must be accompanied by a court order.
- House Amendment 002 (alternative): a deduction request must be accompanied by a written agreement between the two parties or a court order. (These are competing amendment texts filed 4/7–4/8/2025.)
Who is affected
- Payees of state warrants or other state payments (individuals or entities) — their payments can be reduced to satisfy obligations owed to qualifying intergovernmental entities.
- Intergovernmental entities (units of local government, school districts, public institutions of higher education, intergovernmental agencies/associations, intergovernmental risk pools) — gain an additional collection mechanism.
- Office of the Comptroller and Department of Revenue — administrative duties to implement offsets and enter necessary agreements.
Administrative and timeline aspects
- The Comptroller must notify payees/state agencies when deductions are made and keep records.
- The bill contemplates interagency/intergovernmental agreements and procedures for implementing offsets (including reciprocal federal offsets).
- The bill takes effect immediately upon becoming law.
Potential impact / considerations
- May improve collection/recovery for intergovernmental entities and risk pools that are owed funds by persons who also receive state payments.
- Could reduce net payments to affected payees (subject to the 25% cap for wages/pensions).
- Administrative workload and coordination expected for the Comptroller’s office and other agencies to implement agreements, process offsets, and track notifications and records.
- The floor amendment choice (court order vs. written agreement or court order) affects the level of judicial oversight/consent required before offsets occur.
Note
- The bill text posted includes multiple draft/engrossed and amendment versions; readers should consult the latest enrolled or committee file for the operative language (particularly which floor amendment—001 or 002—is adopted) before relying on the final procedural requirement for accompanying deduction requests.
Compiled from official sources — confirm details with the bill’s official record.
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