(b) In addition to any other remedy provided for and without sending a notice of assessment liability, the Illinois Department shall collect an unpaid assessment by withholding, as payment of the assessment, reimbursements or other amounts otherwise payable by the Illinois Department to the hospital provider, including, but not limited to, payment amounts otherwise payable from a managed care organization performing duties under contract with the Illinois Department. To the extent not prohibited by federal or State law, the Department may collect an unpaid assessment by offsetting or recouping, as payment of the assessment obligation, amounts otherwise payable by any State agency to the hospital provider, including, but not limited to, State grants and grant appropriations.

(1) The requirements of this subsection may be waived in instances when a disaster proclamation has been declared by the Governor. In such circumstances, a hospital must demonstrate temporary financial distress and establish an agreement with the Illinois Department specifying when repayment in full of all taxes owed will occur.

(2) The requirements of this subsection may be waived by the Illinois Department in instances when a hospital has entered into and remains in compliance with a repayment plan or a tax deferral plan. A repayment plan or tax deferral plan must be entered into no later than 30 days after notice of an unpaid assessment payment. Beginning July 1, 2026, the Illinois Department shall not enter into any new tax deferral plan with a hospital. A hospital may enter into a repayment plan with the Department that includes terms for repayment of the total amount owed over 72 months or less, repaid in equal payment increments. Payments shall begin within 30 days of the signed agreement date. Hospitals with existing repayment agreements that were negotiated and remain in effect prior to June 1, 2026 may either adhere to the terms of their existing agreements or, alternatively, seek to amend the existing agreement's repayment period to 72 months or less from the date the new agreement is entered into. Renegotiated repayment plans shall include equal payment increments for the total amount owed over the period of the renegotiated agreement. Such renegotiated repayment agreements may only include amendments to (a) the length of the repayment period and (b) the payment increments, provided that the total amount to be repaid does not change from what remained unpaid under the original repayment agreement and any additional amounts owed. An existing repayment or tax deferral agreement cannot be amended more than once unless otherwise agreed upon by the Department. Failure to remain in compliance with a repayment plan or tax deferral plan shall cause immediate termination of such plan unless there is prior written consent from the Illinois Department for a period of non-compliance.

(3) Beginning September 1, 2025, the Illinois Department shall immediately collect all overdue unpaid assessments and penalties through the collection methods authorized under this Section, unless a repayment plan or tax deferral plan has already been agreed to.

(4) For any unpaid assessments and penalties that are overdue as of the effective date of this amendatory Act of the 104th General Assembly, upon receipt of payment the Department may, at its discretion, transfer funds from the Hospital Provider Fund to the Healthcare Provider Relief Fund, provided that, at the time of each transfer, there are no outstanding assessment-related payments owed to hospitals that cannot be paid from resources remaining in the Hospital Provider Fund after the transfer.