02/04/2013

By: Brittany Flaherty Theis

In response to mounting unpaid fees and fines owed to local governments throughout the state, the Illinois legislature created the Local Debt Recovery Program (“LDRP”) through Public Act 97-0632. Under this program, units of local government are able to collect unpaid debt through the Illinois Office of the Comptroller (“IOC”). Public Act 97-0632 modifies the State Comptroller Act. Although Public Act 97-0632 became effective January 1, 2012, the LDRP is receiving increased attention as school districts and other government bodies learn of its benefits.

The LDRP offers units of local government, including school districts, the opportunity to collect unpaid debt such as parking tickets, water and sewer bills, traffic fines, ordinance violations, and other fines and fees. The IOC assists local governmental units by collecting these amounts from tax refunds, lottery payouts, or payroll checks. The LDRP operates at no charge to the local government.

To participate in the LDRP, units of local government enter an Intergovernmental Agreement with the IOC. Debtors must be given initial procedural due process prior to a debt being submitted to the IOC. Pursuant to the agreement, the Comptroller will match its records with those of the local government and deduct the amount owed, plus an administrative fee, prior to issuing a state check for tax refunds, lottery payouts, commercial payment, or payroll checks. Debtors are then given notice and 60 days to protest the deduction. If no protest is made, the amount owed is transferred to the unit of local government. Uncontested deductions continue to be paid while protested deductions are resolved. Importantly, all funds are set aside in a special fund so they are not subject to state payment delays.

The Local Debt Recovery Program is an extremely economic way to recover unpaid student fees. For more information about how the Local Debt Recovery Program can help your school district or other unit of local government collect unpaid fees, please contact Whitt Law Attorneys Rick Petesch or Sarah Miller.

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