ARTICLE XVII. ADMINISTRATIVE DEBT RELIEF (2-32-1700 et seq.)

2-32-1700 Definitions.

   Whenever the following words and phrases are used in this Article, they shall have the meanings respectively ascribed to them:

   “Administrative hearing violation” means a violation of the Code for which a fine, restitution, and other costs, have been imposed by the Department of Administrative Hearings, except for:

      (a)   a Tax;

      (b)   failure to pay a debt due and owing the City pursuant to Section 1-20-090 of the Code;

      (c)   wage garnishment proceeding conducted pursuant to Section 2-32-392 of the Code;

      (d)   a parking, standing, compliance, automated speed enforcement system, automated traffic law enforcement system violation, or tow initiated pursuant to authority granted under Sections 9-92-010 or 9-92-030 of the Code, for which a Fine or Other Costs were imposed by the Department of Administrative Hearings;

      (e)   any violation of Chapters 1-21 (False Statements) or 1-22 (False Claims) of this Code;

      (f)   any violation for which the City has: (i) commenced a case in a court of competent jurisdiction for the collection of the debt owed on said violation; or (ii) obtained a judgment from a court of competent jurisdiction within the past seven years for the collection of the debt owed on said violation;

      (g)   any violations for which a vehicle was impounded by the City and the City is still in possession of such vehicle; or

      (h)   any violation in which there is a pending motion to set-aside a default before the Department of Administrative Hearings.

   “Collection costs” means the expenses and time incurred by the City or its agents to collect any debt.

   “Comptroller” means the City Comptroller as established by Section 2-32-020 of the Code or the Comptroller’s designee.

   “Current monthly income” means all income of the hardship debtor and any other individual who is 18 years or older and resides in the same household that is derived during the 30-day period immediately preceding the date of application for relief under this Article no matter the source of the income and without regard to whether such income is taxable income, including but not limited to all pension, annuity, and all government benefit payments such as social security, unemployment insurance, and like payments.

   “Default” means either: (i) underpayment or non-payment of a monthly payment on a Hardship Payment Plan within 120 days of the stated due date; (ii) three underpayments or non-payments on a hardship payment plan by the stated due date; (iii) failure to pay in full or enroll in a payment plan within 12 months of being approved by the Department as a hardship debtor; or (iv) a finding by the Comptroller that a hardship debtor misrepresented or made a false statement regarding the hardship Debtor’s eligibility to enroll in a hardship payment plan.

   “Department” means the Department of Finance of the City.

   “FDO” means a Findings, Decision, and Order entered at the Department of Administrative Hearings for an Administrative Hearing Violation.

   “Fine” means the monetary penalty imposed for an Administrative Hearing Violation of the Code in an FDO, excluding any Other Costs or Restitution.

   “Hardship debtor” mean a natural individual with an unpaid balance to the City on at least one Administrative Hearing Violation who: (i) is currently enrolled in the Utility Billing Relief program established pursuant to Section 11-12-545 of the Code; (ii) is currently enrolled in the Clear Path Relief Program established pursuant to Section 9-100-170 of the Code; or (iii) has a Household Income of 300 percent or less than the Federal Poverty Level based on the applicant’s Current Monthly Income. A firm, trust, partnership, association, joint venture, corporation or other legal entity, is not a hardship debtor.

   “Hardship payment plan” means an agreement between the Department and a hardship debtor established pursuant to this Article and any rules promulgated to implement or administer it for repayment of an administrative hearing violation fine pursuant to this Article.

   “Household income” means current monthly income multiplied by 12.

   “Other costs” means any collection costs, attorney’s fees, court costs, towing fees, storage fees, administrative fees, interest, or insufficient funds charges, associated with an FDO.

   “Pay” means to make payment by cash, credit card, check or other means acceptable to the Department.

   “Restitution” means an amount of money ordered by the Department of Administrative Hearings to be paid by a hardship debtor as recompense for injury or financial loss to either the City or a third party.

   “Tax” means any tax imposed by the City pursuant to Title 3 of the Code or any other applicable law.

   “Underpayment” means a payment made that is less than the monthly payment established by a hardship payment plan, unless such payment is underpaid by a de minimis amount that may be established by Department by Rule.

(Added Coun. J. 11-15-23, p. 6700, Art. II, § 1)

2-32-1710 Debt relief program – Establishment and rules.

   The Comptroller shall establish and administer a debt relief program pursuant to this Article. The debt relief program shall provide relief as stated in this Article only if the hardship debtor complies with the applicable requirements of the program and any agreements. The Comptroller may promulgate such rules as are necessary to implement or administer this Article.

(Added Coun. J. 11-15-23, p. 6700, Art. II, § 1)

2-32-1720 Scope of debt relief.

   (a)   Any hardship debtor seeking relief pursuant to this Article for an FDO shall apply for such relief through procedures established by the Department. If an application is approved, a hardship debtor shall pay any restitution amount in full plus fifty percent of the fine amount ordered in any FDOs issued prior to the application or enroll in a hardship payment plan for that same amount. After an application is approved, no additional FDOs entered after such date shall be eligible for relief.

   (b)   Following payment of the restitution amount in full plus fifty percent of the fine amount ordered in the FDO by a hardship debtor, or upon completion of a hardship payment plan pursuant to its terms, the Department shall: (1) waive all other costs associated with the paid fine or restitution; (2) the City shall not seek civil or criminal prosecution for the failure to have paid any fine, restitution, or other costs for that administrative hearing violation; and (3) waive any remaining fines associated with the administrative hearing violations paid by the hardship debtor in accordance with this Section or that were included in a hardship payment plan.

   (c)   If a hardship debtor fails to complete any of the requirements of this Article: (i) all other costs associated with the administrative hearing violation remain due and owing; (ii) no relief is available under this Article; and (iii) invoices, collection letters, or other documents created in response to an application for relief under this Article that show the balance of an administrative hearing violation shall not be used as evidence of the current balance of said administrative hearing violation.

   (d)   In no event shall any relief granted under this Article entitle a hardship debtor to a refund for any amounts paid prior to seeking debt relief under this Article.

   (e)   A hardship debtor may only be granted relief under this Article XVII for one approved application made pursuant to Section 2-32-1720(a).

(Added Coun. J. 11-15-23, p. 6700, Art. II, § 1)

2-32-1730 Hardship payment plans.

   The Department is authorized to enroll any hardship debtor into a hardship payment plan and to administer such hardship payment plans, provided that:

   (1)   In order to satisfy the hardship payment plan, a hardship debtor shall pay any applicable Restitution, and 50 percent of the fine imposed by the Department of Administrative Hearings for each administrative hearing violation included in the hardship payment plan;

   (2)   No hardship payment plan shall have a term longer than 60 months;

   (3)   No hardship payment plan shall have a monthly payment of less than $10.00 per month;

   (4)   The down payment of a hardship payment plan shall be in an amount no less than $25.00; and

   (5)   Hardship payment plans shall not include any interest or other charges beyond any restitution owed and 50 percent of the fine.

(Added Coun. J. 11-15-23, p. 6700, Art. II, § 1)

2-32-1740 Default.

   (a)   If a hardship payment plan enters default status, the hardship debtor shall no longer be eligible to receive waiver of fines or other costs pursuant to this Article.

   (b)   The City may provide notice to a hardship debtor enrolled in a hardship payment plan prior to declaring a default; however, notice to the hardship debtor is not required for a default to be effective.

   (c)   If a hardship debtor defaults on a hardship payment plan, they shall no longer be eligible to receive waiver of other costs pursuant to Section 2-32-1720 and the City shall be entitled to pursue any and all collection activities, including adjudication at a court of competent jurisdiction, to recover all unpaid fines, restitution, and other costs without further notice.

(Added Coun. J. 11-15-23, p. 6700, Art. II, § 1)

2-32-1750 Fraudulent conduct.

   Relief under this program shall not be available to any person who is a party to any civil or criminal litigation concerning fraudulent conduct in relation to any debt owed to the City which is pending in any circuit court, appellate court or the Supreme Court of the State of Illinois, or the Department of Administrative Hearings.

(Added Coun. J. 11-15-23, p. 6700, Art. II, § 1)