Public Act 90-0014 of the 90th General Assembly

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90th General Assembly

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Public Act 90-0014

HB1269 Enrolled                                LRB9001000EGfg

    AN ACT to revise the law by combining multiple enactments
and making technical corrections.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

                          ARTICLE 1
                     GENERAL PROVISIONS

    Section  1-1.  This  Act  may  be cited as the First 1997
General Revisory Act.

    Section 1-2.  This  Act  is  not  intended  to  make  any
substantive  change in the law.  It reconciles conflicts that
have arisen from multiple amendments and enactments and makes
technical corrections and revisions in the law.
    In this Act, the reference at the  end  of  each  amended
Section indicates the sources in the Session Laws of Illinois
that  were  used  in  the  preparation  of  the  text of that
Section.  The text of the Section included  in  this  Act  is
intended  to  include  the  different versions of the Section
found in the Public Acts included in the list of sources, but
may not include other versions of the Section to be found  in
Public Acts not included in the list of sources.  The list of
sources is not a part of the text of the Section.

    Section  1-3.  This  Act  is  divided  into the following
Articles:
    ARTICLE 1. General Provisions.
    ARTICLE 2. Combining Revisories.
    ARTICLE 3. Technical Corrections.
    ARTICLE 4. Effective Date and Nonacceleration.

                          ARTICLE 2
                    COMBINING REVISORIES

    Section 2-1. This Article revises and, where appropriate,
renumbers certain Sections that have been added or amended by
more than one Public Act.  This Article also corrects errors,
revises cross-references, and deletes obsolete text in  those
Sections.   Public Acts 89-443 through 89-707 were considered
in the preparation of this Article.

    (5 ILCS 80/4.8a rep.)
    Section 2-5.  The Regulatory Agency Sunset Act is amended
by repealing Section 4.8a.

    Section  2-10.   The  Regulatory  Agency  Sunset  Act  is
amended by changing Section 4.9 as follows:

    (5 ILCS 80/4.9) (from Ch. 127, par. 1904.9)
    Sec. 4.9.  The following Acts are repealed  December  31,
1997:
    The Podiatric Medical Practice Act of 1987.
    The    Nursing    Home   Administrators   Licensing   and
Disciplinary Act.
    The Physician Assistant Practice Act of 1987.
    The Illinois Nursing Act of 1987.
    The Clinical Social Work and Social Work Practice Act.
    The  Illinois  Speech-Language  Pathology  and  Audiology
Practice Act.
    The Marriage and Family Therapy Licensing Act.
(Source: P.A. 89-702,  eff.  7-1-97;  89-706,  eff.  1-31-97;
revised 2-7-97.)

    Section 2-15.  The Illinois Public Labor Relations Act is
amended by changing Section 3 as follows:
    (5 ILCS 315/3) (from Ch. 48, par. 1603)
    Sec.  3.  Definitions.   As  used in this Act, unless the
context otherwise requires:
    (a)  "Board"  or  "Governing  Board"  means  either   the
Illinois  State  Labor  Relations Board or the Illinois Local
Labor Relations Board.
    (b)  "Collective bargaining" means bargaining over  terms
and  conditions  of  employment,  including hours, wages, and
other conditions of employment, as detailed in Section 7  and
which are not excluded by Section 4.
    (c)  "Confidential  employee"  means  an employee who, in
the regular course of his or her duties, assists and acts  in
a  confidential capacity to persons who formulate, determine,
and effectuate  management  policies  with  regard  to  labor
relations or who, in the regular course of his or her duties,
has   authorized   access  to  information  relating  to  the
effectuation  or  review   of   the   employer's   collective
bargaining policies.
    (d)  "Craft  employees"  means skilled journeymen, crafts
persons, and their apprentices and helpers.
    (e)  "Essential services employees"  means  those  public
employees   performing   functions   so  essential  that  the
interruption or termination of the function will constitute a
clear and present danger to the  health  and  safety  of  the
persons in the affected community.
    (f)  "Exclusive  representative",  except with respect to
non-State fire  fighters  and  paramedics  employed  by  fire
departments  and  fire  protection districts, non-State peace
officers, and peace  officers  in  the  Department  of  State
Police,  means  the  labor  organization  that  has  been (i)
designated by the Board as the representative of  a  majority
of  public  employees  in  an  appropriate bargaining unit in
accordance with the procedures contained in  this  Act,  (ii)
historically  recognized  by  the  State  of  Illinois or any
political subdivision of the State before July 1,  1984  (the
effective  date  of this Act) as the exclusive representative
of the employees in an appropriate bargaining unit, or  (iii)
after   July  1,  1984  (the  effective  date  of  this  Act)
recognized by an employer upon evidence,  acceptable  to  the
Board, that the labor organization has been designated as the
exclusive representative by a majority of the employees in an
appropriate bargaining unit.
    With  respect  to  non-State fire fighters and paramedics
employed by fire departments and fire  protection  districts,
non-State   peace   officers,   and  peace  officers  in  the
Department of State Police, "exclusive representative"  means
the  labor  organization  that has been (i) designated by the
Board as the representative of a majority of  peace  officers
or  fire  fighters  in  an  appropriate  bargaining  unit  in
accordance  with  the  procedures contained in this Act, (ii)
historically recognized by  the  State  of  Illinois  or  any
political  subdivision  of  the  State before January 1, 1986
(the effective date of this amendatory Act of  1985)  as  the
exclusive  representative by a majority of the peace officers
or fire fighters in an appropriate bargaining unit, or  (iii)
after  January 1, 1986 (the effective date of this amendatory
Act  of  1985)  recognized  by  an  employer  upon  evidence,
acceptable to the Board, that the labor organization has been
designated as the exclusive representative by a  majority  of
the  peace  officers  or  fire  fighters  in  an  appropriate
bargaining unit.
    (g)  "Fair  share  agreement"  means an agreement between
the employer and an employee organization under which all  or
any  of  the  employees  in  a collective bargaining unit are
required to pay their proportionate share of the costs of the
collective bargaining process, contract  administration,  and
pursuing matters affecting wages, hours, and other conditions
of employment, but not to exceed the amount of dues uniformly
required  of  members.  The amount certified by the exclusive
representative shall not include any fees  for  contributions
related  to  the  election  or  support  of any candidate for
political  office.  Nothing  in  this  subsection  (g)  shall
preclude  an  employee  from   making   voluntary   political
contributions  in  conjunction  with  his  or  her fair share
payment.
    (g-1)  "Fire fighter" means, for the purposes of this Act
only, any person who has been or is hereafter appointed to  a
fire  department or fire protection district or employed by a
state university and sworn or commissioned  to  perform  fire
fighter duties or paramedic duties, except that the following
persons are not included: part-time fire fighters, auxiliary,
reserve  or  voluntary  fire fighters, including paid on-call
fire fighters,  clerks  and  dispatchers  or  other  civilian
employees  of  a  fire department or fire protection district
who are  not  routinely  expected  to  perform  fire  fighter
duties, or elected officials.
    (g-2)  "General  Assembly of the State of Illinois" means
the legislative branch of the  government  of  the  State  of
Illinois,   as   provided   for   under  Article  IV  of  the
Constitution of the State of Illinois, and  includes  but  is
not  limited to the House of Representatives, the Senate, the
Speaker of the House of Representatives, the Minority  Leader
of the House of Representatives, the President of the Senate,
the  Minority  Leader  of  the Senate, the Joint Committee on
Legislative Support  Services  and  any  legislative  support
services   agency   listed   in  the  Legislative  Commission
Reorganization Act of 1984.
    (h)  "Governing body" means, in the case  of  the  State,
the   State  Labor  Relations  Board,  the  Director  of  the
Department of Central Management Services, and  the  Director
of the Department of Labor; the county board in the case of a
county;   the   corporate   authorities  in  the  case  of  a
municipality; and the appropriate body authorized to  provide
for  expenditures  of its funds in the case of any other unit
of government.
    (i)  "Labor organization" means any organization in which
public employees participate and that exists for the purpose,
in whole or in  part,  of  dealing  with  a  public  employer
concerning  wages,  hours,  and other terms and conditions of
employment, including the settlement of grievances.
    (j)  "Managerial employee" means  an  individual  who  is
engaged  predominantly  in executive and management functions
and is charged  with  the  responsibility  of  directing  the
effectuation of management policies and practices.
    (k)  "Peace  officer" means, for the purposes of this Act
only, any persons who have been or are hereafter appointed to
a  police  force,  department,  or  agency   and   sworn   or
commissioned  to  perform  police  duties,  except  that  the
following   persons   are   not  included:  part-time  police
officers,  special  police  officers,  auxiliary  police   as
defined  by Section 3.1-30-20 of the Illinois Municipal Code,
night watchmen, "merchant police", court security officers as
defined by Section 3-6012.1 of the Counties  Code,  temporary
employees,  traffic guards or wardens, civilian parking meter
and  parking  facilities  personnel  or   other   individuals
specially  appointed  to  aid  or  direct  traffic at or near
schools or public functions or to aid  in  civil  defense  or
disaster,   parking   enforcement   employees   who  are  not
commissioned as peace officers and who are not armed and  who
are  not  routinely  expected  to effect arrests, parking lot
attendants,  clerks  and  dispatchers   or   other   civilian
employees  of  a  police  department  who  are  not routinely
expected to effect arrests, or elected officials.
    (l)  "Person" includes one  or  more  individuals,  labor
organizations,  public employees, associations, corporations,
legal  representatives,  trustees,  trustees  in  bankruptcy,
receivers,  or  the  State  of  Illinois  or  any   political
subdivision  of  the  State  or  governing body, but does not
include the General Assembly of the State of Illinois or  any
individual  employed  by the General Assembly of the State of
Illinois.
    (m)  "Professional employee" means any  employee  engaged
in  work  predominantly  intellectual and varied in character
rather than routine mental, manual,  mechanical  or  physical
work;  involving  the  consistent  exercise of discretion and
adjustment in its performance; of such a character  that  the
output   produced   or  the  result  accomplished  cannot  be
standardized in relation to  a  given  period  of  time;  and
requiring  advanced  knowledge  in  a  field  of  science  or
learning  customarily  acquired  by  a  prolonged  course  of
specialized   intellectual   instruction   and  study  in  an
institution  of   higher   learning   or   a   hospital,   as
distinguished  from  a  general  academic  education  or from
apprenticeship or from training in the performance of routine
mental, manual, or physical processes; or  any  employee  who
has   completed   the  courses  of  specialized  intellectual
instruction and study prescribed in this subsection  (m)  and
is  performing  related  work  under  the  supervision  of  a
professional  person  to  qualify  to  become  a professional
employee as defined in this subsection (m).
    (n)  "Public employee" or "employee", for the purposes of
this Act, means any individual employed by a public employer,
including interns and  residents  at  public  hospitals,  but
excluding  all  of  the  following:  employees of the General
Assembly  of  the  State  of  Illinois;  elected   officials;
executive  heads  of  a  department;  members  of  boards  or
commissions;  employees  of  any  agency, board or commission
created by this Act; employees appointed to  State  positions
of  a  temporary or emergency nature; all employees of school
districts   and   higher   education   institutions    except
firefighters   and   peace   officers  employed  by  a  state
university;  managerial  employees;   short-term   employees;
confidential    employees;   independent   contractors;   and
supervisors except as provided in this Act.
    Notwithstanding Section 9, subsection (c), or  any  other
provisions  of this Act, all peace officers above the rank of
captain  in   municipalities   with   more   than   1,000,000
inhabitants shall be excluded from this Act.
    (o)  "Public  employer"  or "employer" means the State of
Illinois; any political subdivision of  the  State,  unit  of
local  government  or  school district; authorities including
departments,  divisions,  bureaus,  boards,  commissions,  or
other agencies of the  foregoing  entities;  and  any  person
acting  within  the scope of his or her authority, express or
implied, on behalf of those  entities  in  dealing  with  its
employees.  "Public  employer"  or "employer" as used in this
Act, however, does not mean and shall not include the General
Assembly of the State of Illinois and  educational  employers
or  employers  as  defined  in the Illinois Educational Labor
Relations Act, except with respect to a state  university  in
its  employment  of  firefighters  and peace officers. County
boards and county sheriffs shall be designated  as  joint  or
co-employers  of  county  peace  officers appointed under the
authority of a county sheriff.  Nothing  in  this  subsection
(o)  shall  be  construed  to  prevent the State Board or the
Local Board from determining  that  employers  are  joint  or
co-employers.
    (p)  "Security   employee"   means  an  employee  who  is
responsible for the supervision and  control  of  inmates  at
correctional   facilities.   The  term  also  includes  other
non-security  employees  in  bargaining  units   having   the
majority  of  employees being responsible for the supervision
and control of inmates at correctional facilities.
    (q)  "Short-term  employee"  means  an  employee  who  is
employed for less that 2 consecutive calendar quarters during
a calendar year and who does not have a reasonable  assurance
that  he  or she will be rehired by the same employer for the
same service in a subsequent calendar year.
    (r)  "Supervisor" is an employee whose principal work  is
substantially  different from that of his or her subordinates
and who has authority, in the interest of  the  employer,  to
hire, transfer, suspend, lay off, recall, promote, discharge,
direct,  reward,  or  discipline  employees,  to adjust their
grievances, or to effectively recommend any of those actions,
if the exercise of that authority is not of a merely  routine
or  clerical  nature,  but  requires  the  consistent  use of
independent  judgment.  Except   with   respect   to   police
employment,   the   term  "supervisor"  includes  only  those
individuals who devote a preponderance  of  their  employment
time   to   exercising   that  authority,  State  supervisors
notwithstanding.  In  addition,  in  determining  supervisory
status in police employment, rank shall not be determinative.
The  Board  shall  consider,  as  evidence of bargaining unit
inclusion or exclusion, the common law  enforcement  policies
and   relationships   between   police   officer   ranks  and
certification under applicable civil service law, ordinances,
personnel codes,  or  Division  2.1  of  Article  10  of  the
Illinois  Municipal  Code, but these factors shall not be the
sole or  predominant  factors  considered  by  the  Board  in
determining police supervisory status.
    Notwithstanding   the   provisions   of   the   preceding
paragraph,  in determining supervisory status in fire fighter
employment, no fire fighter shall be excluded as a supervisor
who has established representation rights under Section 9  of
this  Act.   Further,  in  new  fire fighter units, employees
shall consist of fire fighters of the rank of company officer
and below. If a company  officer  otherwise  qualifies  as  a
supervisor  under the preceding paragraph, however, he or she
shall not be included in the fire fighter unit.  If there  is
no  rank  between  that  of  chief  and  the  highest company
officer, the employer may designate a position on each  shift
as  a  Shift  Commander,  and  the  persons  occupying  those
positions  shall  be supervisors.  All other ranks above that
of company officer shall be supervisors.
    (s) (1)  "Unit" means a class of jobs or  positions  that
are held by employees whose collective interests may suitably
be   represented  by  a  labor  organization  for  collective
bargaining.  Except with respect to non-State  fire  fighters
and   paramedics   employed  by  fire  departments  and  fire
protection districts, non-State  peace  officers,  and  peace
officers in the Department of State Police, a bargaining unit
determined  by the Board shall not include both employees and
supervisors, or  supervisors  only,  except  as  provided  in
paragraph   (2)   of  this  subsection  (s)  and  except  for
bargaining units in existence on July 1, 1984 (the  effective
date  of  this Act).  With respect to non-State fire fighters
and  paramedics  employed  by  fire  departments   and   fire
protection  districts,  non-State  peace  officers, and peace
officers in the Department of State Police, a bargaining unit
determined by the Board shall not  include  both  supervisors
and  nonsupervisors,  or supervisors only, except as provided
in paragraph (2)  of  this  subsection  (s)  and  except  for
bargaining  units  in  existence  on  January  1,  1986  (the
effective date of this amendatory Act of 1985).  A bargaining
unit  determined by the Board to contain peace officers shall
contain  no  employees  other  than  peace  officers   unless
otherwise   agreed   to   by   the  employer  and  the  labor
organization     or     labor     organizations     involved.
Notwithstanding any other provision of this Act, a bargaining
unit, including  a  historical  bargaining  unit,  containing
sworn  peace  officers of the Department of Natural Resources
(formerly designated the Department  of  Conservation)  shall
contain  no  employees  other  than such sworn peace officers
upon the effective date of this amendatory  Act  of  1990  or
upon   the  expiration  date  of  any  collective  bargaining
agreement  in  effect  upon  the  effective  date   of   this
amendatory  Act  of  1990  covering  both  such  sworn  peace
officers and other employees.
    (2)  Notwithstanding  the  exclusion  of supervisors from
bargaining  units  as  provided  in  paragraph  (1)  of  this
subsection (s), a public employer may  agree  to  permit  its
supervisory  employees  to  form  bargaining  units  and  may
bargain with those units.  This Act shall apply if the public
employer chooses to bargain under this subsection.
(Source: P.A.  89-108,  eff.  7-7-95;  89-409, eff. 11-15-95;
89-445,  eff.  2-7-96;  89-626,  eff.  8-9-96;  89-685,  eff.
6-1-97; revised 1-14-97.)

    Section 2-20.  The State Employees Group Insurance Act of
1971 is amended by changing Section 3 and by  setting  forth,
amending, and renumbering multiple versions of Section 6.7 as
follows:

    (5 ILCS 375/3) (from Ch. 127, par. 523)
    Sec.   3.  Definitions.   Unless  the  context  otherwise
requires, the following words and phrases as used in this Act
shall have the following meanings.  The Department may define
these and other words and phrases separately for the  purpose
of  implementing  specific  programs providing benefits under
this Act.
    (a)  "Administrative  service  organization"  means   any
person,  firm  or  corporation experienced in the handling of
claims  which  is  fully  qualified,  financially  sound  and
capable of meeting the service requirements of a contract  of
administration executed with the Department.
    (b)  "Annuitant"  means  (1)  an employee who retires, or
has retired, on or after January  1,  1966  on  an  immediate
annuity under the provisions of Articles 2, 14, 15 (including
an  employee  who  has  retired and is receiving a retirement
annuity under an optional program established  under  Section
15-158.2  and  who  would  also  be eligible for a retirement
annuity had that person  been  a  participant  in  the  State
University  Retirement  System),  paragraphs  (b)  or  (c) of
Section 16-106, or Article 18 of the Illinois  Pension  Code;
(2)  any  person  who  was receiving group insurance coverage
under this Act as of March 31, 1978 by reason of  his  status
as an annuitant, even though the annuity in relation to which
such coverage was provided is a proportional annuity based on
less  than  the  minimum  period  of  service  required for a
retirement annuity in the system involved; (3) any person not
otherwise  covered  by  this  Act  who  has  retired   as   a
participating  member under Article 2 of the Illinois Pension
Code but is  ineligible  for  the  retirement  annuity  under
Section 2-119 of the Illinois Pension Code; (4) the spouse of
any  person  who  is  receiving  a  retirement  annuity under
Article 18 of the Illinois Pension Code and  who  is  covered
under  a  group  health  insurance  program  sponsored  by  a
governmental  employer  other  than the State of Illinois and
who has irrevocably elected to  waive  his  or  her  coverage
under  this  Act  and to have his or her spouse considered as
the "annuitant" under this Act and not as a  "dependent";  or
(5) an employee who retires, or has retired, from a qualified
position, as determined according to rules promulgated by the
Director,  under  a qualified local government or a qualified
rehabilitation facility  or  a  qualified  domestic  violence
shelter  or  service.  (For definition of "retired employee",
see (p) post).
    (c)  "Carrier"  means  (1)  an   insurance   company,   a
corporation   organized  under  the  Limited  Health  Service
Organization Act or the Voluntary Health Services Plan Act, a
partnership, or other nongovernmental organization, which  is
authorized  to  do  group  life  or  group  health  insurance
business  in  Illinois,  or  (2)  the  State of Illinois as a
self-insurer.
    (d)  "Compensation" means salary or wages  payable  on  a
regular  payroll  by  the State Treasurer on a warrant of the
State Comptroller out of any State, trust or federal fund, or
by the Governor of the State through a disbursing officer  of
the  State  out of a trust or out of federal funds, or by any
Department out of State, trust, federal or other  funds  held
by  the  State Treasurer or the Department, to any person for
personal  services  currently  performed,  and  ordinary   or
accidental  disability  benefits  under  Articles  2,  14, 15
(including ordinary or accidental disability  benefits  under
an  optional  program  established  under  Section 15-158.2),
paragraphs (b) or (c) of Section 16-106, or Article 18 of the
Illinois Pension Code, for disability incurred after  January
1,  1966, or benefits payable under the Workers' Compensation
or Occupational Diseases Act or benefits payable under a sick
pay plan established in accordance with  Section  36  of  the
State  Finance Act. "Compensation" also means salary or wages
paid to an employee of  any  qualified  local  government  or
qualified  rehabilitation  facility  or  a qualified domestic
violence shelter or service.
    (e)  "Commission"  means  the   State   Employees   Group
Insurance   Advisory   Commission  authorized  by  this  Act.
Commencing July 1, 1984, "Commission" as  used  in  this  Act
means   the   Illinois  Economic  and  Fiscal  Commission  as
established by the Legislative Commission Reorganization  Act
of 1984.
    (f)  "Contributory",  when  referred  to  as contributory
coverage, shall mean optional coverages or  benefits  elected
by  the  member  toward  the  cost of which such member makes
contribution, or which are funded in whole or in part through
the acceptance of a reduction in earnings or the foregoing of
an increase in earnings by an employee, as distinguished from
noncontributory coverage or benefits which are paid  entirely
by  the  State  of Illinois without reduction of the member's
salary.
    (g)  "Department"  means  any  department,   institution,
board,  commission, officer, court or any agency of the State
government  receiving  appropriations  and  having  power  to
certify payrolls to the Comptroller authorizing  payments  of
salary  and  wages against such appropriations as are made by
the General Assembly from any State fund,  or  against  trust
funds  held  by  the  State  Treasurer and includes boards of
trustees of the retirement systems created by Articles 2, 14,
15, 16 and 18 of the  Illinois  Pension  Code.   "Department"
also  includes  the  Illinois  Comprehensive Health Insurance
Board and the Illinois Rural Bond Bank.
    (h)  "Dependent", when the term is used in the context of
the health and life plan, means a  member's  spouse  and  any
unmarried child (1) from birth to age 19 including an adopted
child, a child who lives with the member from the time of the
filing  of a petition for adoption until entry of an order of
adoption, a stepchild or recognized child who lives with  the
member  in  a parent-child relationship, or a child who lives
with the member if such member is a court appointed  guardian
of  the  child,  or  (2) age 19 to 23 enrolled as a full-time
student in any accredited school, financially dependent  upon
the  member,  and  eligible as a dependent for Illinois State
income tax purposes, or (3) age 19 or over who is mentally or
physically handicapped as defined in the  Illinois  Insurance
Code.  For  the  health  plan only, the term "dependent" also
includes any person enrolled prior to the effective  date  of
this  Section  who is dependent upon the member to the extent
that the member may claim such  person  as  a  dependent  for
Illinois  State  income tax deduction purposes; no other such
person may be enrolled.
    (i)  "Director"  means  the  Director  of  the   Illinois
Department of Central Management Services.
    (j)  "Eligibility  period"  means  the  period  of time a
member has to elect  enrollment  in  programs  or  to  select
benefits without regard to age, sex or health.
    (k)  "Employee"   means  and  includes  each  officer  or
employee in the service of a department who (1) receives  his
compensation  for  service  rendered  to  the department on a
warrant  issued  pursuant  to  a  payroll  certified   by   a
department  or  on  a  warrant or check issued and drawn by a
department upon a trust,  federal  or  other  fund  or  on  a
warrant  issued pursuant to a payroll certified by an elected
or duly appointed  officer  of  the  State  or  who  receives
payment  of the performance of personal services on a warrant
issued pursuant to a payroll certified by  a  Department  and
drawn  by  the  Comptroller  upon the State Treasurer against
appropriations made by the General Assembly from any fund  or
against  trust  funds held by the State Treasurer, and (2) is
employed  full-time  or  part-time  in  a  position  normally
requiring actual performance of duty during not less than 1/2
of a normal work period, as established by  the  Director  in
cooperation with each department, except that persons elected
by  popular  vote  will  be  considered  employees during the
entire term for which they are elected  regardless  of  hours
devoted  to  the  service  of  the State, and (3) except that
"employee" does not include any person who is not eligible by
reason of such person's employment to participate in  one  of
the State retirement systems under Articles 2, 14, 15 (either
the   regular  Article  15  system  or  an  optional  program
established under Section 15-158.2) or 18, or under paragraph
(b) or (c) of Section 16-106, of the Illinois  Pension  Code,
but  such  term  does include persons who are employed during
the 6  month  qualifying  period  under  Article  14  of  the
Illinois  Pension  Code.   Such term also includes any person
who (1) after January  1,  1966,  is  receiving  ordinary  or
accidental  disability  benefits  under  Articles  2,  14, 15
(including ordinary or accidental disability  benefits  under
an  optional  program  established  under  Section 15-158.2),
paragraphs (b) or (c) of Section 16-106, or Article 18 of the
Illinois Pension Code, for disability incurred after  January
1,  1966,  (2)  receives  total  permanent or total temporary
disability   under   the   Workers'   Compensation   Act   or
Occupational Disease Act as a result of injuries sustained or
illness contracted in the course of employment with the State
of Illinois, or (3) is not otherwise covered under  this  Act
and  has retired as a participating member under Article 2 of
the  Illinois  Pension  Code  but  is  ineligible   for   the
retirement  annuity  under  Section  2-119  of  the  Illinois
Pension  Code.   However, a person who satisfies the criteria
of the foregoing definition of "employee"  except  that  such
person  is  made  ineligible  to  participate  in  the  State
Universities  Retirement  System  by  clause (4) of the first
paragraph of Section 15-107 of the Illinois Pension  Code  is
also  an "employee" for the purposes of this Act.  "Employee"
also includes any person receiving or eligible  for  benefits
under  a sick pay plan established in accordance with Section
36 of the State Finance Act. "Employee"  also  includes  each
officer  or  employee  in  the  service  of a qualified local
government,  including  persons  appointed  as  trustees   of
sanitary districts regardless of hours devoted to the service
of the sanitary district, and each employee in the service of
a   qualified  rehabilitation  facility  and  each  full-time
employee in the service  of  a  qualified  domestic  violence
shelter   or   service,  as  determined  according  to  rules
promulgated by the Director.
    (l)  "Member"  means  an  employee,  annuitant,   retired
employee or survivor.
    (m)  "Optional   coverages   or   benefits"  means  those
coverages or benefits available to the member on his  or  her
voluntary election, and at his or her own expense.
    (n)  "Program"  means  the  group  life insurance, health
benefits and other employee benefits designed and  contracted
for by the Director under this Act.
    (o)  "Health  plan" means a self-insured health insurance
program offered by the State of Illinois for the purposes  of
benefiting  employees  by  means  of providing, among others,
wellness programs, utilization reviews, second  opinions  and
medical  fee  reviews, as well as for paying for hospital and
medical care up to the maximum coverage provided by the plan,
to its members and their dependents.
    (p)  "Retired employee" means any person who would be  an
annuitant  as  that  term  is defined herein but for the fact
that such person retired prior to January 1, 1966.  Such term
also includes any person formerly employed by the  University
of Illinois in the Cooperative Extension Service who would be
an  annuitant  but  for  the  fact  that such person was made
ineligible  to  participate   in   the   State   Universities
Retirement  System  by  clause  (4) of the first paragraph of
Section 15-107 of the Illinois Pension Code.
    (q)  "Survivor" means a person receiving an annuity as  a
survivor  of  an employee or of an annuitant. "Survivor" also
includes:  (1)  the  surviving  dependent  of  a  person  who
satisfies the  definition  of  "employee"  except  that  such
person  is  made  ineligible  to  participate  in  the  State
Universities  Retirement  System  by  clause (4) of the first
paragraph of Section 15-107 of the Illinois Pension Code; and
(2) the surviving dependent of any person  formerly  employed
by  the  University  of Illinois in the Cooperative Extension
Service who would be an annuitant except for  the  fact  that
such  person  was made ineligible to participate in the State
Universities Retirement System by clause  (4)  of  the  first
paragraph of Section 15-107 of the Illinois Pension Code.
    (r)  "Medical   services"  means  the  services  provided
within the scope of their licenses by  practitioners  in  all
categories licensed under the Medical Practice Act of 1987.
    (s)  "Unit   of   local  government"  means  any  county,
municipality, township, school district, special district  or
other  unit, designated as a unit of local government by law,
which exercises limited  governmental  powers  or  powers  in
respect  to limited governmental subjects, any not-for-profit
association  with  a  membership  that   primarily   includes
townships  and  township  officials,  that  has  duties  that
include  provision  of  research  service,  dissemination  of
information,  and  other  acts  for  the purpose of improving
township government, and that is funded wholly or  partly  in
accordance  with  Section  85-15  of  the  Township Code; any
not-for-profit corporation or association, with a  membership
consisting primarily of municipalities, that operates its own
utility    system,    and    provides   research,   training,
dissemination  of  information,  or  other  acts  to  promote
cooperation between and  among  municipalities  that  provide
utility  services  and  for  the advancement of the goals and
purposes of its membership; and the Illinois  Association  of
Park Districts.  "Qualified local government" means a unit of
local  government  approved by the Director and participating
in a program created under subsection (i) of  Section  10  of
this Act.
    (t)  "Qualified   rehabilitation   facility"   means  any
not-for-profit  organization  that  is  accredited   by   the
Commission  on  Accreditation of Rehabilitation Facilities or
certified by the Department of Human Services  (as  successor
to   the   Department  of  Mental  Health  and  Developmental
Disabilities)   to   provide   services   to   persons   with
disabilities and which  receives  funds  from  the  State  of
Illinois  for  providing  those  services,  approved  by  the
Director   and  participating  in  a  program  created  under
subsection (j) of Section 10 of this Act.
    (u)  "Qualified domestic  violence  shelter  or  service"
means  any  Illinois domestic violence shelter or service and
its administrative offices funded by the Department of  Human
Services  (as  successor to the Illinois Department of Public
Aid), approved by the Director and participating in a program
created under subsection (k) of Section 10.
    (v)  "TRS benefit recipient" means a person who:
         (1)  is not a "member" as defined in  this  Section;
    and
         (2)  is  receiving  a  monthly benefit or retirement
    annuity under Article 16 of the  Illinois  Pension  Code;
    and
         (3)  either  (i)  has at least 8 years of creditable
    service under Article 16 of the Illinois Pension Code, or
    (ii) was enrolled in the health insurance program offered
    under that Article on January 1, 1996, or  (iii)  is  the
    survivor  of a benefit recipient who had at least 8 years
    of creditable service under Article 16  of  the  Illinois
    Pension  Code  or  was  enrolled  in the health insurance
    program offered under that Article on the effective  date
    of this amendatory Act of 1995, or (iv) is a recipient or
    survivor  of  a  recipient  of a disability benefit under
    Article 16 of the Illinois Pension Code.
    (w)  "TRS dependent beneficiary" means a person who:
         (1)  is not a "member" or "dependent" as defined  in
    this Section; and
         (2)  is  a  TRS benefit recipient's: (A) spouse, (B)
    dependent parent who is receiving at least half of his or
    her support  from  the  TRS  benefit  recipient,  or  (C)
    unmarried  natural  or adopted child who is (i) under age
    19, or  (ii)  enrolled  as  a  full-time  student  in  an
    accredited  school,  financially  dependent  upon the TRS
    benefit recipient, eligible as a dependent  for  Illinois
    State  income tax purposes, and either is under age 24 or
    was, on January 1, 1996,  participating  as  a  dependent
    beneficiary in the health insurance program offered under
    Article  16 of the Illinois Pension Code, or (iii) age 19
    or over who is  mentally  or  physically  handicapped  as
    defined in the Illinois Insurance Code.
    (x)  "Military  leave  with  pay  and benefits" refers to
individuals in basic training for reserves,  special/advanced
training,  annual  training, emergency call up, or activation
by the President of the United States with approved  pay  and
benefits.
    (y)  "Military  leave without pay and benefits" refers to
individuals who enlist for active duty in a regular component
of the U.S. Armed Forces  or  other  duty  not  specified  or
authorized under military leave with pay and benefits.
(Source:  P.A.  88-670,  eff.  12-2-94;  89-21, eff. 6-21-95;
89-25,  eff.  6-21-95;  89-76,  eff.  7-1-95;  89-324,   eff.
8-13-95;  89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-507,
eff. 7-1-97; 89-628, eff. 8-9-96; revised 8-23-96.)

    (5 ILCS 375/6.7)
    Sec. 6.7.  Woman's health care provider.  The program  of
health  benefits is subject to the provisions of Section 356r
of the Illinois Insurance Code.
(Source: P.A. 89-514, eff. 7-17-96; revised 7-24-96.)

    (5 ILCS 375/6.8)
    Sec. 6.8. 6.7.  Post-parturition care.   The  program  of
health  benefits  shall  provide  the  post-parturition  care
benefits  required  to be covered by a policy of accident and
health insurance under Section  356s  356r  of  the  Illinois
Insurance Code.
(Source: P.A. 89-513, eff. 7-17-96; revised 7-24-96.)
    Section  2-25.   The  Alcoholism and Other Drug Abuse and
Dependency  Act  is  amended  by  changing  Section  1-10  as
follows:

    (20 ILCS 301/1-10)
    Sec. 1-10.  Definitions.  As used in this Act, unless the
context clearly indicates otherwise, the following words  and
terms have the following meanings:
    "Act"  means  the  Alcoholism  and  Other  Drug Abuse and
Dependency Act.
    "Addict" means a person who exhibits the disease known as
"addiction".
    "Addiction" means a disease process characterized by  the
continued  use  of a specific psycho-active substance despite
physical,  psychological  or  social  harm.   The  term  also
describes the advanced stages of chemical dependency.
    "Administrator"   means   a   person   responsible    for
administration of a program.
    "Alcoholic" means a person who exhibits the disease known
as "alcoholism".
    "Alcoholism"  means  a chronic and progressive disease or
illness characterized  by  preoccupation  with  and  loss  of
control  over  the  consumption  of  alcohol,  and the use of
alcohol    despite    adverse    consequences.     Typically,
combinations of the following tendencies  are  also  present:
periodic   or   chronic  intoxication;  physical  disability;
impaired  emotional,  occupational  or   social   adjustment;
tendency   toward   relapse;  a  detrimental  effect  on  the
individual, his family and society; psychological dependence;
and  physical  dependence.    Alcoholism  is  also  known  as
addiction to alcohol.  Alcoholism is  described  and  further
categorized in clinical detail in the DSM and the ICD.
    "Array  of  services"  means  assistance  to individuals,
families and communities in response to alcohol or other drug
abuse or dependency.  The array of services includes, but  is
not  limited  to:  prevention  assistance for communities and
schools; case finding, assessment and  intervention  to  help
individuals   stop  abusing  alcohol  or  other  drugs;  case
management; detoxification to aid individuals  in  physically
withdrawing  from  alcohol  or  other  drugs;  short-term and
long-term treatment and support services to help  individuals
and   family   members   begin   the   process  of  recovery;
prescription and dispensing of the drug  methadone  or  other
medications  as  an  adjunct to treatment; relapse prevention
services; education and  counseling  for  children  or  other
co-dependents of alcoholics or other drug abusers or addicts.
    "Case  management" means those services which will assist
individuals in gaining access to needed social,  educational,
medical, treatment and other services.
    "Children  of  alcoholics  or  drug addicts or abusers of
alcohol and other drugs" means the minor or adult children of
individuals who have abused or been dependent upon alcohol or
other drugs.  These children may or may not become  dependent
upon  alcohol  or  other  drugs themselves; however, they are
physically, psychologically, and behaviorally at high risk of
developing the illness.  Children  of  alcoholics  and  other
drug  abusers  experience  emotional  and other problems, and
benefit from prevention and treatment  services  provided  by
funded and non-funded agencies licensed by the Department.
    "Co-dependents" means individuals who are involved in the
lives  of  and  are affected by people who are dependent upon
alcohol and other drugs.  Co-dependents  compulsively  engage
in  behaviors  that  cause  them  to suffer adverse physical,
emotional,  familial,  social,  behavioral,  vocational,  and
legal consequences as they attempt to cope with  the  alcohol
or  drug  dependent  person.  People who become co-dependents
include spouses, parents, siblings, and friends of alcohol or
drug dependent people.  Co-dependents benefit from prevention
and treatment services provided by agencies licensed  by  the
Department.
    "Controlled  substance"  means any substance or immediate
precursor which is enumerated in the schedules of Article  II
of  the  Illinois  Controlled  Substances Act or the Cannabis
Control Act.
    "Crime of violence" means any of  the  following  crimes:
murder,  voluntary  manslaughter,  criminal  sexual  assault,
aggravated criminal sexual assault, predatory criminal sexual
assault   of  a  child,  armed  robbery,  arson,  kidnapping,
aggravated battery, aggravated arson,  or  any  other  felony
which  involves  the  use  or  threat  of  physical  force or
violence against another individual.
    "Department"  means  the  Illinois  Department  of  Human
Services as successor to the former Department of  Alcoholism
and Substance Abuse.
    "Designated  program"  means  a program designated by the
Department to provide services described in subsection (c) or
(d) of Section 15-10 of this Act.    A  designated  program's
primary  function  is  screening,  assessing,  referring  and
tracking  clients  identified by the criminal justice system,
and the program agrees  to  apply  statewide  the  standards,
uniform criteria and procedures established by the Department
pursuant to such designation.
    "Detoxification"   means   the  process  of  allowing  an
individual to safely withdraw from a  drug  in  a  controlled
environment.
    "DSM"  means  the  most current edition of the Diagnostic
and Statistical Manual of Mental Disorders.
    "D.U.I." means driving under the influence of alcohol  or
other  substances  which  may  cause  impairment  of  driving
ability.
    "Facility"  means the building or premises which are used
for the provision of licensable program  services,  including
support services, as set forth by rule.
    "ICD" means the most current edition of the International
Classification of Diseases.
    "Incapacitated"  means  that  a  person is unconscious or
otherwise exhibits, by overt behavior or by extreme  physical
debilitation,  an  inability  to care for his own needs or to
recognize the obvious danger of  his  situation  or  to  make
rational decisions with respect to his need for treatment.
    "Intermediary  person"  means  a  person  with  expertise
relative  to  addiction, alcoholism, and the abuse of alcohol
or other drugs who may be called on to assist the  police  in
carrying  out enforcement or other activities with respect to
persons who abuse or are dependent on alcohol or other drugs.
    "Intervention" means readily accessible activities  which
assist  individuals  and  their partners or family members in
coping with the immediate problems of alcohol and other  drug
abuse  or dependency, and in reducing their alcohol and other
drug use. Intervention can facilitate  emotional  and  social
stability,   and   involves   referring  people  for  further
treatment as needed.
    "Intoxicated person"  means  a  person  whose  mental  or
physical functioning is substantially impaired as a result of
the  current  effects  of  alcohol  or other drugs within the
body.
    "Local advisory council" means an alcohol  and  substance
abuse  body  established  in  a county, township or community
area, which represents public and private entities having  an
interest  in  the  prevention  and treatment of alcoholism or
other drug abuse.
    "Off-site services" means licensable program services  or
activities  which  are  conducted at a location separate from
the primary service  location  of  the  provider,  and  which
services  are  operated by a program or entity licensed under
this Act.
    "Person" means any individual, firm, group,  association,
partnership,  corporation,  trust, government or governmental
subdivision or agency.
    "Prevention" means an interactive process of individuals,
families, schools, religious organizations,  communities  and
regional,   state   and   national  organizations  to  reduce
alcoholism, prevent the use of illegal drugs and the abuse of
legal drugs by persons  of  all  ages,  prevent  the  use  of
alcohol  by  minors,  build the capacities of individuals and
systems, and promote  healthy  environments,  lifestyles  and
behaviors.
    "Program"  means  a  licensable  or  fundable activity or
service,  or  a  coordinated  range  of  such  activities  or
services, as the Department may establish by rule.
    "Recovery" means the long-term, often life-long,  process
in which an addicted person changes the way in which he makes
decisions  and establishes personal and life priorities.  The
evolution  of  this  decision-making   and   priority-setting
process  is generally manifested by an obvious improvement in
the individual's life and lifestyle and by his overcoming the
abuse of or dependence on alcohol or other  drugs.   Recovery
is   also   generally  manifested  by  prolonged  periods  of
abstinence from addictive chemicals which are  not  medically
supervised.  Recovery is the goal of treatment.
    "Rehabilitation"  means  a process whereby those clinical
services  necessary  and   appropriate   for   improving   an
individual's life and lifestyle and for overcoming his or her
abuse  of or dependency upon alcohol or other drugs, or both,
are delivered in an appropriate setting and manner as defined
in rules established by the Department.
    "Relapse" means  a  process  which  is  manifested  by  a
progressive pattern of behavior that reactivates the symptoms
of  a  disease  or  creates  debilitating  conditions  in  an
individual  who  has  experienced remission from addiction or
alcoholism.
    "Secretary" means the Secretary of Human Services or  his
or her designee.
    "Substance  abuse"  or  "abuse" means a pattern of use of
alcohol or other drugs  with  the  potential  of  leading  to
immediate  functional problems or to alcoholism or other drug
dependency, or to the  use  of  alcohol  and/or  other  drugs
solely for purposes of intoxication.  The term also means the
use  of  illegal  drugs by persons of any age, and the use of
alcohol by persons under the age of 21.
    "Treatment"  means  the   broad   range   of   emergency,
outpatient,  intermediate  and  residential services and care
(including  assessment,  diagnosis,   medical,   psychiatric,
psychological  and  social services, care and counseling, and
aftercare) which may be extended to individuals who abuse  or
are  dependent on alcohol or other drugs or families of those
persons.
(Source: P.A.  88-80;  89-202,  eff.  7-21-95;  89-428,  eff.
12-13-95;  89-462, eff. 5-29-96; 89-507, eff. 7-1-97; revised
9-10-96.)

    Section 2-30.  The Children and Family  Services  Act  is
amended by changing Section 18a-13 as follows:

    (20 ILCS 505/18a-13) (from Ch. 23, par. 5018a-13)
    (Section scheduled to be repealed on December 31, 1997)
    Sec.   18a-13.    Interagency  Authority  on  Residential
Facilities for Children.
    (a)  There is hereby created the Interagency Authority on
Residential Facilities for Children.
    (b)  The Authority shall be composed of the Secretary  of
Human  Services  (or  his  or  her designee) and 2 additional
representatives  of  the   Department   of   Human   Services
designated  by  the  Secretary;  plus the Directors, or their
designees, of the following State agencies:
         (1)  Department of Children and Family Services,
         (2)  Department of Corrections,
         (3)  Illinois State Board of Education,
         (4)  Department of Public Aid, and
         (5)  Residential Services Authority;
plus 5 people  appointed  by  the  Governor  from  State  and
community  public and private providers and funders.  These 5
people shall  be  experienced  and  knowledgeable  concerning
out-of-home  placement  options for children.  No more than 2
of the appointees can be from the public sector.  Members  of
the  Authority  shall  serve without compensation.  No monies
shall be appropriated for the purpose of providing  operating
expenses for the Authority.  The Department of Human Services
and the other departments listed in this subsection (b) shall
provide staffing and support costs.
    (c)  The  Chairperson  of  the  Authority  shall  be  the
Director  of  Children  and  Family Services or his designee.
The first meeting of the Authority shall be within 30 days of
the effective date of this amendatory Act of  1991.   At  the
first  meeting  the  Authority shall elect a vice-chairperson
from its membership.
    (d)  The Authority  shall  have  the  responsibility  for
developing   a   long-term   plan   for   providing  adequate
residential facilities for the care of children who cannot be
served in their own homes and whose needs cannot  be  met  by
foster  family home services or other similar substitute care
arrangements.   The  Authority  shall  examine,  among  other
items, the feasibility of increasing the capacity  or  number
of  residential  care facilities in the State consistent with
the principles that services in the home  and  community  and
the  least  restrictive  alternatives guide the State service
system for children.  If it is determined that  there  should
be  an  increase  in  the  number  of residential facilities,
campus type settings shall be considered.
    (e)  The Authority also has the  responsibility  for  the
following:
         (1)  The annual collection of information from State
    agencies  in  regard  to the number of children placed in
    out-of-State settings, including placements made by local
    school districts that  are  reimbursed  pursuant  to  the
    School Code.
         (2)  Reporting  on  an  annual basis the cost of all
    out-of-State  placements  of  children  made   by   State
    agencies or local school districts.
         (3)  Reviewing   the  current  rate  structures  for
    payment  of  services  for  in-State   and   out-of-State
    residential   placements  of  children  and  recommending
    appropriate   incentives   that   would   encourage   the
    development of necessary in-State services.
         (4)  Promoting   the    establishment    of    State
    inter-agency pilot programs which provide for a continuum
    of  placements,  including  short-term  local residential
    placements  and  other   alternatives   to   out-of-State
    placements.
    (f)  The  Authority  shall  present  a  proposal  to  the
Governor, the President of the Senate, the Minority Leader of
the  Senate, the Speaker of the House and the Minority Leader
of the House within one year of its first meeting.
    (g)  This Section  is  repealed  effective  December  31,
1997. The changes made to this Section by this amendatory Act
of  1996 are not intended to revive this Section in the event
of its repeal.
(Source  P.A.  88-487;  88-597,  eff.  8-28-94;  89-21,  eff.
7-1-95; 89-507, eff. 7-1-97;  89-648,  eff.  8-9-96;  revised
9-12-96)

    Section 2-35.  The Department of Natural Resources Act is
amended by setting forth and renumbering multiple versions of
Section 5-10 as follows:

    (20 ILCS 801/5-10)
    Sec.  5-10. Additional powers.  With respect to the water
resources of the State, the Office of Water  Resources  shall
have the following powers:
    (a)  To study and investigate ways and means by which the
various  water  uses  may  be coordinated to the end that the
water  resources  of  the  State  be  put  to  their  maximum
beneficial use and, in connection therewith, to  request  any
department  or  agency of the State to make surveys, studies,
investigations, prepare plans, reports and furnish such  data
and information as may be necessary.
    (b)  To  coordinate, determine and provide ways and means
for  the  equitable  reconciliation  and  adjustment  of  the
various conflicting claims and rights to water  by  users  or
uses.
    (c)  To  recommend  legislation  for  the  most  feasible
method  or  methods of conserving water resources and putting
them to the maximum possible use,  taking  into  account  the
problems of navigation, flood control, river flow control and
stabilization,   reclamation,  drainage  and  recapture,  and
further utilization of  water  after  use  for  any  purpose,
domestic  and  industrial  use, irrigation of land, municipal
use,  development  of   electric   energy,   public   health,
recreational, fish and game life, and other beneficial use.
    (d)  To  undertake regulatory flood hazard mapping within
this State.
    (e)  To  inspect  and  prescribe  standards  of   repair,
maintenance  and improvement of the facilities and properties
of the Metro-East Sanitary District.
(Source: P.A. 89-445, eff. 2-7-96.)
    (20 ILCS 801/15-10)
    Sec.  15-10.  5-10.  Board  of  Natural   Resources   and
Conservation.
    (a)  Within  the  Department  there  shall  be a Board of
Natural Resources and Conservation, composed  of  8  persons.
The  Board  shall  be  composed  of  the  Director of Natural
Resources  (or  the  Director's  designee),  who   shall   be
chairman; the president of the University of Illinois, or his
or  her  representative;  the  president of Southern Illinois
University, or his or her representative; and  one  appointed
expert   each   in   animal  biology,  geology,  engineering,
chemistry, and plant biology, qualified by at least 10  years
of   experience  in  practicing  or  teaching  their  several
professions.   Appointed  members  of  the  Board  shall   be
appointed by the Governor, with the advice and consent of the
Senate.
    The  transfer  of  the Board to the Department under this
Act does not  terminate  or  otherwise  affect  the  term  of
membership  of any member of the Board, except for the change
in chairman.
    (b)  The Board, acting through 5 or  more  subcommittees,
each  of  which  shall be composed of the Director of Natural
Resources, the president of the University of Illinois or his
representative, the president of Southern Illinois University
or his  representative,  and  the  expert  advisor  specially
qualified in the field of investigation, shall:
         (1)  consider   and  decide  matters  pertaining  to
    natural   history,   geology,   water   and   atmospheric
    resources, forestry, and allied research,  investigation,
    and scientific work;
         (2)  select  and  appoint,  without reference to the
    State civil service law, members of the scientific staff,
    prosecuting such research, investigation, and  scientific
    work;
         (3)  cooperate  with  the  University of Illinois in
    the use of scientific staff and equipment; and
         (4)  cooperate with the various departments of State
    government in  research,  investigation,  and  scientific
    work  useful  in  the  prosecution  of  the  work  of any
    department.
(Source: P.A. 89-445, eff. 2-7-96; revised 3-7-96.)

    Section 2-40.  The Civil Administrative Code of  Illinois
is amended by changing Section 71 as follows:

    (20 ILCS 2005/71) (from Ch. 127, par. 63b17)
    Sec.  71.   A.   The  Department  of Nuclear Safety shall
exercise, administer  and  enforce  all  rights,  powers  and
duties  vested  in  the  Department  of  Public Health by the
following named Acts or Sections thereof:
         1.  The Radiation Installation Act.
         2.  The Radiation Protection Act of 1990.
         3.  The Radioactive Waste Storage Act.
         4.  The Personnel Radiation Monitoring Act.
         5.  The Laser System Act.
         6.  The Illinois Nuclear Safety Preparedness Act.
    B.  All the rights,  powers  and  duties  vested  in  the
Director  of  Public Health by "An Act to create the Illinois
Commission on Atomic Energy, defining the powers  and  duties
of  the  Commission,  and  making an appropriation therefor",
effective September 10, 1971, as amended, are transferred  to
the  Director  of  Nuclear  Safety.   The Director of Nuclear
Safety, after the effective date this amendatory Act of 1980,
shall  serve  as  an  ex  officio  member  of  the   Illinois
Commission  on  Atomic  Energy  in the place and stead of the
Director of Public Health.
    C.  The Department  of  Nuclear  Safety  shall  exercise,
administer and enforce all rights, powers and duties:
         1.  Vested  in  the Office of the State Fire Marshal
    by the Boiler and Pressure  Vessel  Safety  Act,  to  the
    extent  the  rights, powers, and duties relate to nuclear
    steam-generating facilities.
         2.  As   relating   to   nuclear    steam-generating
    facilities,  vested  in  the Board of Boiler and Pressure
    Vessel Rules by the Boiler  and  Pressure  Vessel  Safety
    Act,   which   includes   but  are  not  limited  to  the
    formulation of definitions, rules and regulations for the
    safe and proper construction, installation, repair,  use,
    and operation of nuclear steam-generating facilities, the
    adoption   of   rules   for   already  installed  nuclear
    steam-generating facilities, the adoption  of  rules  for
    accidents  in  nuclear  steam-generating  facilities, the
    examination for or suspension of inspectors' licenses  of
    the  facilities and the hearing of appeals from decisions
    relating to the facilities.
         3.  As   relating   to   nuclear    steam-generating
    facilities, vested in the State Fire Marshal or the Chief
    Inspector  by  the Boiler and Pressure Vessel Safety Act,
    which include but are not limited to  the  employment  of
    inspectors   of   nuclear   steam-generating  facilities,
    issuance or suspension of their commissions,  prosecution
    of the Act or rules promulgated thereunder for violations
    by  nuclear  steam-generating  facilities, maintenance of
    inspection records of all the facilities, publication  of
    rules  relating to the facilities,  having free access to
    the facilities, issuance of  inspection  certificates  of
    the  facilities  and  the furnishing of bonds conditioned
    upon the  faithful  performance  of  their  duties.   The
    Director   of   Nuclear  Safety  may  designate  a  Chief
    Inspector, or other inspectors, as he deems necessary  to
    perform the functions transferred by this subsection C.
    The  transfer  of rights, powers, and duties specified in
the immediately preceding paragraphs 1, 2, and 3  is  limited
to the program transferred by this amendatory Act of 1980 and
shall  not  be  deemed to abolish or diminish the exercise of
those same rights, powers, and duties by the  Office  of  the
State  Fire  Marshal, the Board of Boiler and Pressure Vessel
Rules, the State Fire Marshal, or the  Chief  Inspector  with
respect  to programs retained by the Office of the State Fire
Marshal.
    D.  The Department  of  Nuclear  Safety  shall  exercise,
administer,  and enforce all rights, powers and duties vested
in the Environmental Protection Agency by paragraphs a, b, c,
d, e, f, g, h, i, j, k, l, m, n, o, p, q, and r of Section  4
and  Sections 30-45 inclusive of the Environmental Protection
Act, to the extent that these powers relate to  standards  of
the  Pollution  Control  Board  adopted under subsection K of
this Section.  The transfer of  rights,  powers,  and  duties
specified  in  this  paragraph  is  limited  to  the  program
transferred  by  this amendatory Act of 1980 and shall not be
deemed to abolish or diminish  the  exercise  of  those  same
rights,  powers,  and  duties by the Environmental Protection
Agency with respect to programs retained by the Environmental
Protection Agency.
    E.  The Department of Nuclear  Safety,  in  lieu  of  the
Department   of   Public  Health,  shall  register,  license,
inspect, and control radiation sources  and  shall  purchase,
lease,  accept, or acquire lands, buildings and grounds where
radioactive wastes can be  disposed,  and  to  supervise  and
regulate the operation of the disposal sites.
    F.  The  Department  of Nuclear Safety shall have primary
responsibility  to  formulate   a   comprehensive   emergency
preparedness  and response plan for any nuclear accident, and
shall develop such a plan in cooperation  with  the  Illinois
Emergency Management Agency. The Department of Nuclear Safety
shall also train and maintain an emergency response team.
    G.  The  Department  of  Nuclear Safety shall formulate a
comprehensive plan regarding the  transportation  of  nuclear
and  radioactive materials in Illinois.  The Department shall
have  primary  responsibility  for  all  State   governmental
regulation  of  the transportation of nuclear and radioactive
materials, insofar as the regulation pertains to  the  public
health and safety.  This responsibility shall include but not
be  limited  to  the  authority  to  oversee  and  coordinate
regulatory   functions   performed   by   the  Department  of
Transportation, the  Department  of  State  Police,  and  the
Illinois Commerce Commission.
    H.  The  Department  of  Nuclear Safety shall formulate a
comprehensive  plan  regarding  disposal   of   nuclear   and
radioactive  materials  in  this State.  The Department shall
establish  minimum  standards  for  disposal   sites,   shall
evaluate and publicize potential effects on the public health
and  safety,  and  shall  report  to the Governor and General
Assembly  all  violations  of  the  adopted  standards.    In
carrying  out this function, the Department of Nuclear Safety
shall work in cooperation with  the  Illinois  Commission  on
Atomic Energy and the Radiation Protection Advisory Council.
    I.  The Department of Nuclear Safety, in cooperation with
the  Department  of  Natural  Resources,  shall study (a) the
impact and cost of nuclear power and  compare  these  to  the
impact  and  cost  of  alternative sources of energy, (b) the
potential effects on the public  health  and  safety  of  all
radioactive  emissions from nuclear power plants, and (c) all
other factors that bear on the use of  nuclear  power  or  on
nuclear  safety.   The  Department  shall formulate a general
nuclear policy for the State based on  the  findings  of  the
study.    The  policy shall include but not be limited to the
feasibility of continued use of nuclear power, effects of the
use of nuclear power on the public health and safety, minimum
acceptable standards for the location of any  future  nuclear
power  plants, and rules and regulations for the reporting by
public utilities of radioactive emissions from power  plants.
The   Department   shall  establish  a  reliable  system  for
communication between the public and the Department  and  for
dissemination   of   information   by  the  Department.   The
Department shall publicize the findings of  all  studies  and
make the publications reasonably available to the public.
    J.  The  Department  of Nuclear Safety shall have primary
responsibility for the  coordination  and  oversight  of  all
State  governmental  functions  concerning  the regulation of
nuclear  power,  including  low   level   waste   management,
environmental   monitoring,  and  transportation  of  nuclear
waste.  Functions performed on the  effective  date  of  this
amendatory  Act  of  1980  by the Department of State Police,
Department of  Transportation,  and  the  Illinois  Emergency
Management  Agency in the area of nuclear safety may continue
to be performed by these agencies but under the direction  of
the  Department  of  Nuclear  Safety.  All other governmental
functions regulating nuclear safety shall be  coordinated  by
Department of Nuclear Safety.
    K.  The  Department  of  Nuclear Safety shall enforce the
regulations promulgated by the Pollution Control Board  under
Section 25b of the Environmental Protection Act.  Under these
regulations  the  Department  shall  require  that  a person,
corporation, or public authority intending  to   construct  a
nuclear   steam-generating   facility   or   a  nuclear  fuel
reprocessing plant file with the Department an  environmental
feasibility report that incorporates the data provided in the
preliminary  safety  analysis  required  to be filed with the
United States Nuclear Regulatory Commission.
    L.  Personnel  previously  assigned   to   the   programs
transferred  from  the  Department  of  Public Health and the
Office of the State Fire Marshal are  hereby  transferred  to
the   Department  of  Nuclear  Safety.   The  rights  of  the
employees,  the  State,  and  executive  agencies  under  the
Personnel Code or any  collective  bargaining  agreement,  or
under  any  pension, retirement, or annuity plan shall not be
affected by this amendatory Act of 1980.
    M.  All books, records, papers, documents, property (real
or personal), unexpended appropriations and pending  business
in  any  way  pertaining  to  the  rights, powers, and duties
transferred by this amendatory Act of 1980 shall be delivered
and transferred to the Department of Nuclear Safety.
    N.  All files, records, and data gathered by or under the
direction or authority of the Director under this  Act  shall
be  made  available  to the Department of Public Health under
the Illinois Health and Hazardous Substances Registry Act.
    O.  The Department  shall  not  issue  or  renew  to  any
individual  any accreditation, certification, or registration
(but excluding registration under the Radiation  Installation
Act) otherwise issued by the Department if the individual has
defaulted  on  an educational loan guaranteed by the Illinois
Student Assistance Commission; however,  the  Department  may
issue   or   renew   an   accreditation,   certification,  or
registration if the individual has established a satisfactory
repayment  record  as  determined  by  the  Illinois  Student
Assistance  Commission.   Additionally,  any   accreditation,
certification,  or registration issued by the Department (but
excluding registration under the Radiation Installation  Act)
may  be  suspended  or  revoked  if the Department, after the
opportunity   for   a   hearing   under    the    appropriate
accreditation, certification, or registration Act, finds that
the  holder  has failed to make satisfactory repayment to the
Illinois Student Assistance Commission for  a  delinquent  or
defaulted  loan.  For purposes of this Section, "satisfactory
repayment record" shall be defined by rule.
(Source: P.A.  89-411,  eff.  6-1-96;  89-445,  eff.  2-7-96;
revised 3-11-96.)
    Section  2-45.  The Civil Administrative Code of Illinois
is amended by setting forth and renumbering multiple versions
of Section 60.2 as follows:

    (20 ILCS 2105/60.2) (from Ch. 127, par. 60.2)
    Sec.   60.2.  Annual   report.    The    Department    of
Professional  Regulation  shall  prepare  and  file  with the
General Assembly during the second week of  January  in  each
calendar  year a written report setting forth with respect to
each professional, trade,  or  occupational  school  that  is
regulated  by  the  Department  and  that may not lawfully be
operated without a certificate of registration issued by  the
Department:
    (1)  The  number  of  written  or verified complaints, by
license category, made or filed with  the  Department  during
the   immediately   preceding   calendar  year  alleging  the
violation  of  any  licensing   Act   administered   by   the
Department.
    (2)  The  name  and  address  of  each  such  school with
respect to which or with respect to a representative of which
the Department, during  the  immediately  preceding  calendar
year, refused to issue or renew a certificate of registration
required  for  lawful operation of the school and the reasons
for that refusal.
    (3)  The name  and  address  of  each  such  school  with
respect to which or with respect to a representative of which
the      certificate  of  registration  required  for  lawful
operation of the school was  suspended,  revoked,  placed  on
probation,  reprimanded,  or otherwise disciplined during the
immediately preceding calendar year and the reasons for  that
discipline.
    (4)  The  name  and location of each such school at which
the Department made any on site inspection at any time during
the immediately preceding calendar year and the date or dates
on which each such on site visit was made at that school.
(Source: P.A. 87-1008.)

    (20 ILCS 2105/60.3)
    Sec. 60.3. 60.2.  Publication  of  disciplinary  actions.
The   Department  shall  publish,  at  least  monthly,  final
disciplinary  actions  taken  by  the  Department  against  a
licensee or applicant pursuant to the Medical Practice Act of
1987.  The specific disciplinary action and the name  of  the
applicant  or  licensee  shall  be  listed.  This publication
shall be made  available  to  the  public  upon  request  and
payment  of the fees set by the Department.  This publication
may be made available to the public on the  Internet  through
the State of Illinois World Wide Web site.
(Source: P.A. 89-702, eff. 7-1-97; revised 1-29-97.)

    Section 2-50.  The Illinois Development Finance Authority
Act  is  amended by renumbering Sections 7-84, 7-85, and 7-86
as follows:

    (20 ILCS 3505/7.84) (from Ch. 48, par. 850.07z24)
    Sec. 7.84. 7-84. Additional security.  In the event  that
the  Authority  determines that funds pledged, intercepted or
otherwise received or to be received by the  Authority  under
Section  7.83  of  this  Act  will  not be sufficient for the
payment of the  principal,  premium,  if  any,  and  interest
during  the next State fiscal year on any bonds issued by the
Authority under Sections 7.80 through 7.87, the Chairman,  as
soon  as  is  practicable,  shall certify to the Governor the
amount required by the Authority to  enable  it  to  pay  the
principal,  premium, if any, and interest falling due on such
bonds.  The Governor shall submit the amount so certified  to
the  General  Assembly  as  soon as practicable, but no later
than  the  end  of  the  current  State  fiscal  year.   This
paragraph shall not apply  to  any  bonds  as  to  which  the
Authority   shall   have   determined,   in   the  resolution
authorizing their issuance, that  this  paragraph  shall  not
apply.  Whenever  the  Authority  makes such a determination,
that fact shall be plainly stated on the face of  such  bonds
and that fact shall also be reported to the Governor.
    In  the  event  of  a  withdrawal  of  moneys from a debt
service reserve fund established with respect to any issue or
issues of  bonds  of  the  Authority  to  pay  principal  and
interest  on  those  bonds,  the  Chairman,  as  soon  as  is
practicable,   shall  certify  to  the  Governor  the  amount
required to restore such reserve fund to the  level  required
in  the  resolution  or  indenture  securing  the bonds.  The
Governor shall submit the amount so certified to the  General
Assembly  as  soon as practicable, but not later than the end
of the current State fiscal year.
(Source: P.A. 86-1211; 87-778; revised 2-7-97.)

    (20 ILCS 3505/7.85) (from Ch. 48, par. 850.07z25)
    Sec. 7.85. 7-85. Eligible Investments.  Bonds  issued  by
the Authority pursuant to Sections 7.80 through 7.87 shall be
permissible investments within the provisions of Section 12.
(Source: P.A. 86-1211; revised 2-7-97.)

    (20 ILCS 3505/7.86) (from Ch. 48, par. 850.07z26)
    Sec.  7.86.  7-86.  Tax  exemption.   The exercise of the
powers granted in Sections  7.80  through  7.87  are  in  all
respects  for  the  benefit of the people of Illinois, and in
consideration  thereof  the  bonds  issued  pursuant  to  the
aforementioned Sections and the  income  therefrom  shall  be
free  from  all  taxation  by  the  State  or  its  political
subdivisions,  except  for  estate,  transfer and inheritance
taxes.  For purposes of Section 250 of  the  Illinois  Income
Tax  Act, the exemption of the income from bonds issued under
the aforementioned Sections shall terminate after all of  the
bonds  have  been paid.  The amount of such income that shall
be added and then  subtracted  on  the  Illinois  income  tax
return of a taxpayer, pursuant to Section 203 of the Illinois
Income Tax Act, from federal adjusted gross income or federal
taxable income in computing Illinois base income shall be the
interest net of any bond premium amortization.
(Source: P.A. 89-460, eff. 5-24-96; revised 11-1-96.)

    Section  2-55.   The  Illinois Health Facilities Planning
Act is amended by changing Sections 3 and 4 and setting forth
and renumbering multiple versions of Section 12.1 as follows:

    (20 ILCS 3960/3) (from Ch. 111 1/2, par. 1153)
    Sec. 3.  As used in this Act:
    "Health care facilities" means and includes the following
facilities and organizations:
         1.  An ambulatory surgical treatment center required
    to  be  licensed  pursuant  to  the  Ambulatory  Surgical
    Treatment Center Act;
         2.  An  institution,  place,  building,  or   agency
    required   to   be  licensed  pursuant  to  the  Hospital
    Licensing Act;
         3.  Any institution required to be licensed pursuant
    to the Nursing Home Care Act;
         4.  Hospitals, nursing  homes,  ambulatory  surgical
    treatment  centers,  or  kidney disease treatment centers
    maintained by the  State  or  any  department  or  agency
    thereof; and
         5.  Kidney  disease  treatment  centers, including a
    free-standing hemodialysis unit.
    No federally owned  facility  shall  be  subject  to  the
provisions  of  this  Act,  nor  facilities  used  solely for
healing by prayer or spiritual means.
    No facility  licensed  under  the  Supportive  Residences
Licensing Act shall be subject to the provisions of this Act.
    A  facility  designated  as  a supportive living facility
that is in  good  standing  with  the  demonstration  project
established  under Section 5-5.01a of the Illinois Public Aid
Code shall not be subject to the provisions of this Act.
    This Act does not apply  to  facilities  granted  waivers
under Section 3-102.2 of the Nursing Home Care Act.  However,
if  a  demonstration  project  under  that  Act applies for a
certificate of need to convert  to  a  nursing  facility,  it
shall meet the licensure and certificate of need requirements
in effect as of the date of application.
    With  the  exception  of  those  health  care  facilities
specifically  included  in  this Section, nothing in this Act
shall be intended to include facilities operated as a part of
the practice of a physician or  other  licensed  health  care
professional,  whether  practicing in his individual capacity
or within the legal structure of any partnership, medical  or
professional   corporation,   or  unincorporated  medical  or
professional group. Further, this  Act  shall  not  apply  to
physicians  or  other  licensed  health  care  professional's
practices  where  such practices are carried out in a portion
of a health care facility under  contract  with  such  health
care facility by a physician or by other licensed health care
professionals,  whether practicing in his individual capacity
or within the legal structure of any partnership, medical  or
professional   corporation,   or  unincorporated  medical  or
professional groups.  This Act shall apply to construction or
modification  and  to  establishment  by  such  health   care
facility  of  such  contracted  portion  which  is subject to
facility licensing requirements, irrespective  of  the  party
responsible   for   such   action   or   attendant  financial
obligation.
    "Person" means any one or  more  natural  persons,  legal
entities,  governmental  bodies  other  than  federal, or any
combination thereof.
    "Consumer" means any person other than a person (a) whose
major  occupation  currently  involves  or   whose   official
capacity   within   the  last  12  months  has  involved  the
providing, administering or financing of any type  of  health
care  facility,  (b) who is engaged in health research or the
teaching of health, (c) who has a material financial interest
in any activity which involves the  providing,  administering
or  financing of any type of health care facility, or (d) who
is or ever has been a member of the immediate family  of  the
person defined by (a), (b), or (c).
    "State Board" means the Health Facilities Planning Board.
    "Construction  or  modification" means the establishment,
erection,     building,      alteration,      reconstruction,
modernization,   improvement,   extension,   discontinuation,
change  of ownership, of or by a health care facility, or the
purchase or acquisition by or through a health care  facility
of   equipment  or  service  for  diagnostic  or  therapeutic
purposes or for facility administration or operation, or  any
capital  expenditure  made  by  or on behalf of a health care
facility which exceeds the capital expenditure minimum.
    "Establish" means  the  construction  of  a  health  care
facility  or  the  replacement  of  an  existing  facility on
another site.
    "Major medical equipment" means medical  equipment  which
is  used  for  the  provision  of  medical  and  other health
services and which costs in excess of the capital expenditure
minimum, except that  such  term  does  not  include  medical
equipment  acquired  by or on behalf of a clinical laboratory
to provide  clinical  laboratory  services  if  the  clinical
laboratory  is  independent  of  a  physician's  office and a
hospital and it has been determined under Title XVIII of  the
Social  Security  Act  to meet the requirements of paragraphs
(10) and (11) of Section 1861(s) of such Act.  In determining
whether medical equipment  has  a  value  in  excess  of  the
capital  expenditure  minimum, the value of studies, surveys,
designs, plans, working drawings, specifications,  and  other
activities  essential  to  the  acquisition of such equipment
shall be included.
    "Capital Expenditure" means an expenditure:  (A) made  by
or on behalf of a health care facility (as such a facility is
defined  in this Act); and (B) which under generally accepted
accounting  principles  is  not  properly  chargeable  as  an
expense of operation and maintenance, or is made to obtain by
lease or comparable arrangement any facility or part  thereof
or  any  equipment  for a facility or part; and which exceeds
the capital expenditure minimum.
    For the purpose  of  this  paragraph,  the  cost  of  any
studies,   surveys,   designs,   plans,   working   drawings,
specifications,   and   other  activities  essential  to  the
acquisition, improvement, expansion, or  replacement  of  any
plant  or  equipment  with respect to which an expenditure is
made shall be included in  determining  if  such  expenditure
exceeds   the  capital  expenditures  minimum.  Donations  of
equipment or facilities to a health care  facility  which  if
acquired directly by such facility would be subject to review
under  this Act shall be considered capital expenditures, and
a transfer of equipment or  facilities  for  less  than  fair
market  value  shall  be considered a capital expenditure for
purposes of this Act  if  a  transfer  of  the  equipment  or
facilities at fair market value would be subject to review.
    "Capital  expenditure minimum" means $1,000,000 for major
medical  equipment  and  $2,000,000  for  all  other  capital
expenditures, both of which shall  be  annually  adjusted  to
reflect the increase in construction costs due to inflation.
    "Areawide"  means a major area of the State delineated on
a geographic, demographic, and functional  basis  for  health
planning  and  for health service and having within it one or
more local areas for health planning and health service.  The
term "region", as contrasted with the term  "subregion",  and
the  word  "area"  may  be  used  synonymously  with the term
"areawide".
    "Local" means a subarea of a delineated major  area  that
on  a  geographic,  demographic,  and functional basis may be
considered  to  be  part  of  such  major  area.   The   term
"subregion" may be used synonymously with the term "local".
    "Areawide health planning organization" or "Comprehensive
health planning organization" means the health systems agency
designated  by  the Secretary, Department of Health and Human
Services or any successor agency.
    "Local health planning organization"  means  those  local
health  planning organizations that are designated as such by
the areawide health planning organization of the  appropriate
area.
    "Physician"  means  a  person  licensed  to  practice  in
accordance with the Medical Practice Act of 1987, as amended.
    "Licensed   health  care  professional"  means  a  person
licensed to practice  a  health  profession  under  pertinent
licensing statutes of the State of Illinois.
    "Director" means the  Director of the Illinois Department
of Public Health.
    "Agency" means the Illinois Department of Public Health.
    "Comprehensive  health  planning"  means  health planning
concerned with  the  total  population  and  all  health  and
associated  problems that affect the well-being of people and
that encompasses health services, health manpower, and health
facilities; and the coordination among these and  with  those
social,  economic,  and  environmental  factors  that  affect
health.
    "Alternative  health  care  model"  means  a  facility or
program authorized under the Alternative Health Care Delivery
Act.
(Source: P.A.  88-18;  89-499,  eff.  6-28-96;  89-530,  eff.
7-19-96; revised 8-15-96.)

    (20 ILCS 3960/4) (from Ch. 111 1/2, par. 1154)
    Sec. 4.  There is created the Health Facilities  Planning
Board,  which  shall  perform  such  functions as hereinafter
described in this Act.
    The State Board  shall  consist  of  15  voting  members,
including:  8  consumer  members; one member representing the
commercial health insurance industry in Illinois; one  member
representing  proprietary  hospitals  in Illinois; one member
who is actively engaged in the field of hospital  management;
one   member  who  is  a  professional  nurse  registered  in
Illinois; one member who is a  physician  in  active  private
practice  licensed in Illinois to practice medicine in all of
its branches; one member who is actively engaged in the field
of skilled nursing or intermediate care facility  management;
and  one member who is actively engaged in the administration
of an ambulatory surgical treatment center licensed under the
Ambulatory Surgical Treatment Center Act.
    The State Board shall be appointed by the Governor,  with
the   advice  and  consent  of  the  Senate.  In  making  the
appointments,  the  Governor  shall  give  consideration   to
recommendations  made  by  (1) the professional organizations
concerned  with  hospital   management   for   the   hospital
management   appointment,   (2)   professional  organizations
concerned with long term care  facility  management  for  the
long   term   care   facility   management  appointment,  (3)
professional  medical   organizations   for   the   physician
appointment,  (4)  professional nursing organizations for the
nurse  appointment,  and   (5)   professional   organizations
concerned  with ambulatory surgical treatment centers for the
ambulatory surgical treatment center appointment,  and  shall
appoint   as   consumer  members  individuals  familiar  with
community health needs but whose interest in  the  operation,
construction  or  utilization  of  health care facilities are
derived  from  factors  other  than  those  related  to   his
profession, business, or economic gain, and who represent, so
far as possible, different geographic areas of the State. Not
more  than  8  of  the  appointments  shall  be  of  the same
political party.
    The Secretary of Human Services, the Director  of  Public
Aid,  and  the Director of Public Health, or their designated
representatives,  shall  serve  as   ex-officio,   non-voting
members of the State Board.
    Of  those  appointed  by  the Governor as voting members,
each member  shall  hold  office  for  a  term  of  3  years:
provided,  that  any  member  appointed  to  fill  a  vacancy
occurring  prior  to the expiration of the term for which his
predecessor  was  appointed  shall  be  appointed   for   the
remainder  of  such  term  and  the  term  of  office of each
successor shall commence on July 1 of the year in  which  his
predecessor's  term  expires. In making original appointments
to the State Board, the Governor shall appoint 5 members  for
a term of one year, 5 for a term of 2 years, and 3 for a term
of  3 years, and each of these terms of office shall commence
on July 1, 1974. The initial term of office for  the  members
appointed  under  this  amendatory Act of 1996 shall begin on
July 1, 1996 and shall last for 2 years, and each  subsequent
appointment  shall  be  for  a  term of 3 years.  Each member
shall hold  office  until  his  successor  is  appointed  and
qualified.
    State  Board  members,  while  serving on business of the
State Board, shall receive actual and  necessary  travel  and
subsistence  expenses while so serving away from their places
of residence. In addition, while serving on business  of  the
State  Board,  each member shall receive compensation of $150
per day, except  that  such  compensation  shall  not  exceed
$7,500 in any one year for any member.
    The  State  Board  shall provide for its own organization
and procedures, including the selection  of  a  Chairman  and
such  other  officers as deemed necessary. The Director, with
concurrence of the  State  Board,  shall  name  as  full-time
Executive Secretary of the State Board, a person qualified in
health  care  facility  planning  and in administration.  The
Agency shall provide administrative and staff support for the
State Board.  The State Board shall advise  the  Director  of
its  budgetary  and staff needs and consult with the Director
on annual budget preparation.
    The State Board shall meet at least once each quarter, or
as often as the Chairman of the State Board deems  necessary,
or upon the request of a majority of the members.
    Eight  members  of  the  State  Board  shall constitute a
quorum.  The affirmative vote of 8  of  the  members  of  the
State  Board  shall  be  necessary for any action requiring a
vote to be taken  by  the  State  Board.  A  vacancy  in  the
membership of the State Board shall not impair the right of a
quorum  to exercise all the rights and perform all the duties
of the State Board as provided by this Act.
(Source: P.A.  88-490;  89-507,  eff.  7-1-97;  89-674,  eff.
8-14-96; revised 9-12-96.)

    (20 ILCS 3960/12.1) (from Ch. 111 1/2, par. 1162.1)
    Sec.  12.1.  The State Board shall, by rule, define terms
and set those conditions necessary to  implement  the  Health
Care   Worker   Self-Referral   Act.    The  rules  shall  be
promulgated and adopted exclusively and solely by  the  State
Board.
(Source: P.A. 87-1207.)

    (20 ILCS 3960/12.2)
    Sec.  12.2. 12.1.  Powers of the Agency.  For purposes of
this Act, the Agency shall exercise the following powers  and
duties:
    (1)  Review  applications  for  permits and exemptions in
accordance with the standards, criteria, and  plans  of  need
established by the State Board under this Act and certify its
finding to the State Board.
    (2)  Charge and collect an amount determined by the State
Board   to   be   reasonable   fees  for  the  processing  of
applications  by  the  State  Board,  the  Agency,  and   the
appropriate recognized areawide health planning organization.
The  State Board shall set the amounts by rule.  All fees and
fines collected under the provisions of  this  Act  shall  be
deposited  into  the Illinois Health Facilities Planning Fund
to be used for the expenses of administering this Act.
    (3)  Coordinate  with   other   State   agencies   having
responsibilities  affecting health care facilities, including
those of licensure and cost reporting.
(Source: P.A. 89-276, eff. 8-10-95; revised 1-7-97.)

    Section 2-65.   The  State  Finance  Act  is  amended  by
setting  forth  and renumbering multiple versions of Sections
5.402, 5.432, and 5.433 and changing Section 25 as follows:

    (30 ILCS 105/5.402)
    Sec. 5.402.  The Eastern Illinois University Income Fund.
(Source: P.A. 89-4, eff. 1-1-96; 89-626, eff. 8-9-96.)

    (30 ILCS 105/5.432)
    Sec. 5.432.  The State D.A.R.E. Fund.
(Source: P.A. 89-621, eff. 1-1-97.)

    (30 ILCS 105/5.433)
    Sec. 5.433.  The County D.A.R.E. Fund.
(Source: P.A. 89-621, eff. 1-1-97.)

    (30 ILCS 105/5.435)
    Sec. 5.435. 5.402.  The Illinois Fire Fighters'  Memorial
Fund.
(Source: P.A. 89-612, eff. 8-9-96; revised 10-24-96.)

    (30 ILCS 105/5.436)
    Sec.  5.436.  5.432.  The Livestock Management Facilities
Fund.
(Source: P.A. 89-456, eff. 5-21-96; revised 10-24-96.)

    (30 ILCS 105/5.437)
    Sec. 5.437. 5.432.   The  Alternative  Compliance  Market
Account Fund.
(Source: P.A. 89-465, eff. 6-13-96; revised 10-24-96.)

    (30 ILCS 105/5.438)
    Sec.  5.438.  5.432.  The  Gang  Crime Witness Protection
Fund.
(Source: P.A. 89-498, eff. 6-27-96; revised 10-24-96.)

    (30 ILCS 105/5.439)
    Sec. 5.439. 5.432.  The Health Care Facility and  Program
Survey Fund.
(Source: P.A. 89-499, eff. 8-26-96; revised 10-24-96.)

    (30 ILCS 105/5.440)
    Sec.   5.440.  5.432.  The  Secretary  of  State  Special
Services Fund.
(Source: P.A. 89-503, eff. 7-1-96; revised 10-24-96.)

    (30 ILCS 105/5.441)
    Sec. 5.441. 5.432.  The Medical Research and  Development
Fund.
(Source: P.A. 89-506, eff. 7-3-96; revised 10-24-96.)

    (30 ILCS 105/5.442)
    Sec.  5.442.  5.433.  The Post-Tertiary Clinical Services
Fund.
(Source: P.A. 89-506, eff. 7-3-96; revised 10-24-96.)

    (30 ILCS 105/5.443)
    Sec.  5.443.  5.432.  The  Comptroller's   Administrative
Fund.
(Source: P.A.  89-511,  eff.  1-1-97;  89-615,  eff.  8-9-96;
revised 10-24-96.)

    (30 ILCS 105/5.444)
    Sec.   5.444.  5.432.  The  Illinois  Student  Assistance
Commission Higher EdNet Fund.
(Source: P.A. 89-512, eff. 7-11-96; revised 10-24-96.)

    (30 ILCS 105/5.445)
    Sec. 5.445. 5.432.  The Wildlife Prairie Park Fund.
(Source: P.A. 89-611, eff. 1-1-97; revised 10-24-96.)

    (30 ILCS 105/5.446)
    Sec. 5.446. 5.432.  The Master Mason Fund.
(Source: P.A. 89-620, eff. 1-1-97; revised 10-24-96.)

    (30 ILCS 105/5.447)
    Sec. 5.447. 5.433.  The Knights of Columbus Fund.
(Source: P.A. 89-620, eff. 1-1-97; revised 10-24-96.)

    (30 ILCS 105/5.448)
    Sec. 5.448. 5.432.  The Court  of  Claims  Administration
and Grant Fund.
(Source: P.A. 89-670, eff. 8-14-96; revised 10-24-96.)

    (30 ILCS 105/25) (from Ch. 127, par. 161)
    Sec. 25.  Fiscal year limitations.
    (a)  All    appropriations   shall   be   available   for
expenditure for the fiscal year or for a lesser period if the
Act making that appropriation so specifies.  A deficiency  or
emergency  appropriation  shall  be available for expenditure
only through June 30 of the year when  the  Act  making  that
appropriation is enacted unless that Act otherwise provides.
    (b)  Outstanding  liabilities as of June 30, payable from
appropriations which have otherwise expired, may be paid  out
of  the  expiring  appropriations  during  the 2-month period
ending at the close of business on August  31.   Any  service
involving  professional  or  artistic  skills or any personal
services by an employee  whose  compensation  is  subject  to
income tax withholding must be performed as of June 30 of the
fiscal  year  in  order  to  be  considered  an  "outstanding
liability as of June 30" that is thereby eligible for payment
out of the expiring appropriation.
    However,  payment  of  tuition reimbursement claims under
Section 14-7.03 or 18-3 of the School Code may be made by the
State Board of Education from its  appropriations  for  those
respective  purposes  for  any  fiscal  year, even though the
claims reimbursed by the payment may be  claims  attributable
to  a  prior  fiscal  year,  and  payments may be made at the
direction of the State Superintendent of Education  from  the
fund  from  which the appropriation is made without regard to
any fiscal year limitations.
    Medical payments may be made by the Department of  Public
Aid  and child care payments may be made by the Department of
Human Services (as successor to the Department of Public Aid)
from appropriations for those purposes for any  fiscal  year,
without  regard  to  the  fact that the medical or child care
services being compensated for by such payment may have  been
rendered  in a prior fiscal year; and payments may be made at
the  direction  of  the  Department  of  Central   Management
Services from the Health Insurance Reserve Fund and the Local
Government  Health  Insurance  Reserve Fund without regard to
any fiscal year limitations.
    Additionally, payments may be made by the  Department  of
Human  Services  from  its appropriations, or any other State
agency from its  appropriations  with  the  approval  of  the
Department of Human Services, from the Immigration Reform and
Control   Fund   for  purposes  authorized  pursuant  to  the
Immigration Reform and Control Act of 1986, without regard to
any fiscal year limitations.
    (c)  Further, payments may be made by the  Department  of
Public Health and the Department of Human Services (acting as
successor  to  the  Department  of  Public  Health  under the
Department of  Human  Services  Act)  from  their  respective
appropriations for grants for medical care to or on behalf of
persons   suffering   from  chronic  renal  disease,  persons
suffering from hemophilia, rape victims,  and  premature  and
high-mortality  risk infants and their mothers and for grants
for supplemental food  supplies  provided  under  the  United
States  Department of Agriculture Women, Infants and Children
Nutrition Program, for any fiscal year without regard to  the
fact  that the services being compensated for by such payment
may have been rendered in a prior fiscal year.
    (d)  The Department of Public Health and  the  Department
of  Human  Services (acting as successor to the Department of
Public Health under the Department  of  Human  Services  Act)
shall  each  annually submit to the State Comptroller, Senate
President, Senate Minority  Leader,  Speaker  of  the  House,
House  Minority  Leader,  and  the  respective  Chairmen  and
Minority  Spokesmen  of  the Appropriations Committees of the
Senate and the House, on or before December 31, a  report  of
fiscal  year  funds  used to pay for services provided in any
prior fiscal year.  This report shall document by program  or
service  category  those  expenditures from the most recently
completed fiscal year used to pay for  services  provided  in
prior fiscal years.
    (e)  The  Department  of Public Aid and the Department of
Human Services (acting as  successor  to  the  Department  of
Public   Aid)   shall  each  annually  submit  to  the  State
Comptroller,  Senate  President,  Senate   Minority   Leader,
Speaker  of  the House, House Minority Leader, the respective
Chairmen  and  Minority  Spokesmen  of   the   Appropriations
Committees of the Senate and the House, on or before November
30,  a  report  that  shall  document  by  program or service
category those expenditures from the most recently  completed
fiscal  year  used  to pay for (i) services provided in prior
fiscal years and (ii) services for which claims were received
in prior fiscal years.
    (f)  The Department of Human Services  (as  successor  to
the  Department  of  Public Aid) shall annually submit to the
State Comptroller, Senate President, Senate Minority  Leader,
Speaker   of  the  House,  House  Minority  Leader,  and  the
respective   Chairmen   and   Minority   Spokesmen   of   the
Appropriations Committees of the Senate and the House, on  or
before December 31, a report of fiscal year funds used to pay
for  services (other than medical care) provided in any prior
fiscal year.   This  report  shall  document  by  program  or
service  category  those  expenditures from the most recently
completed fiscal year used to pay for  services  provided  in
prior fiscal years.
    (g)  In  addition,  each  annual  report  required  to be
submitted by the Department of Public  Aid  under  subsection
(e)  shall  include the following information with respect to
the State's Medicaid program:
         (1)  Explanations  of  the  exact  causes   of   the
    variance between the previous year's estimated and actual
    liabilities.
         (2)  Factors  affecting  the  Department  of  Public
    Aid's  liabilities,  including but not limited to numbers
    of aid recipients, levels of medical service  utilization
    by  aid  recipients, and inflation in the cost of medical
    services.
         (3)  The results  of  the  Department's  efforts  to
    combat fraud and abuse.
    (h)  As  provided  in  Section  4 of the General Assembly
Compensation Act, any utility bill for service provided to  a
General  Assembly  member's  district  office  for  a  period
including  portions of 2 consecutive fiscal years may be paid
from funds appropriated for such expenditure in either fiscal
year.
    (i)  An agency which administers a fund classified by the
Comptroller as an internal service fund may issue rules for:
         (1)  billing  user  agencies  in  advance  based  on
    estimated charges for goods or services;
         (2)  issuing credits during  the  subsequent  fiscal
    year  for  all  user  agency payments received during the
    prior fiscal year which  were  in  excess  of  the  final
    amounts owed by the user agency for that period; and
         (3)  issuing  catch-up  billings  to  user  agencies
    during  the  subsequent fiscal year for amounts remaining
    due when payments received from the  user  agency  during
    the  prior  fiscal  year  were less than the total amount
    owed for that period.
User agencies are authorized to  reimburse  internal  service
funds  for  catch-up billings by vouchers drawn against their
respective appropriations for the fiscal year  in  which  the
catch-up billing was issued.
(Source:  P.A.  88-554,  eff.  7-26-94; 88-575, eff. 8-12-94;
89-235,  eff.  8-4-95;  89-507,  eff.  7-1-97;  89-511,  eff.
1-1-97; revised 9-10-96.)

    Section 2-70.  The  State  Mandates  Act  is  amended  by
changing,  combining,  and  renumbering  multiple versions of
Sections 8.20 and 8.21 as follows:

    (30 ILCS 805/8.20)
    Sec.    8.20.    8.21.     Exempt    mandates    mandate.
Notwithstanding  Sections  6  and   8   of   this   Act,   no
reimbursement by the State is required for the implementation
of  any mandate created by Public Act 89-510, 89-513, 89-514,
89-606, 89-617, 89-643, 89-671,  89-683,  89-690,  or  89-705
this amendatory Act of 1996 1997.
(Source:  P.A.  89-510,  eff.  7-11-96; 89-513, eff. 9-15-96;
89-514, eff.  7-17-96;  89-606,  eff.  1-1-97;  89-617,  eff.
9-1-96;  89-643,  eff.  8-9-96; 89-671, eff. 8-14-96; 89-683,
eff. 6-1-97;  89-690,  eff.  6-1-97;  89-705,  eff.  1-31-97;
revised 2-12-97.)

    Section  2-75.   The  Use  Tax Act is amended by changing
Section 3-5 as follows:

    (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
    Sec. 3-5.  Exemptions.  Use  of  the  following  tangible
personal property is exempt from the tax imposed by this Act:
    (1)  Personal  property  purchased  from  a  corporation,
society,    association,    foundation,    institution,    or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for  the  benefit  of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
    (2)  Personal  property  purchased  by  a  not-for-profit
Illinois county  fair  association  for  use  in  conducting,
operating, or promoting the county fair.
    (3)  Personal  property  purchased  by  a  not-for-profit
music  or  dramatic  arts  organization  that establishes, by
proof required  by  the  Department  by  rule,  that  it  has
received an exemption under Section 501(c)(3) of the Internal
Revenue  Code  and  that  is  organized  and operated for the
presentation  of  live  public  performances  of  musical  or
theatrical works on a regular basis.
    (4)  Personal property purchased by a governmental  body,
by   a  corporation,  society,  association,  foundation,  or
institution   organized   and   operated   exclusively    for
charitable,  religious,  or  educational  purposes,  or  by a
not-for-profit corporation, society, association, foundation,
institution, or organization that has no compensated officers
or employees and that is organized and operated primarily for
the recreation of persons 55 years of age or older. A limited
liability company may qualify for the  exemption  under  this
paragraph  only if the limited liability company is organized
and operated exclusively for  educational  purposes.  On  and
after July 1, 1987, however, no entity otherwise eligible for
this exemption shall make tax-free purchases unless it has an
active   exemption   identification   number  issued  by  the
Department.
    (5)  A passenger car that is a replacement vehicle to the
extent that the purchase price of the car is subject  to  the
Replacement Vehicle Tax.
    (6)  Graphic  arts  machinery  and  equipment,  including
repair   and  replacement  parts,  both  new  and  used,  and
including that manufactured on special  order,  certified  by
the   purchaser   to  be  used  primarily  for  graphic  arts
production, and including machinery and  equipment  purchased
for lease.
    (7)  Farm chemicals.
    (8)  Legal  tender,  currency,  medallions,  or  gold  or
silver   coinage   issued  by  the  State  of  Illinois,  the
government of the United States of America, or the government
of any foreign country, and bullion.
    (9)  Personal property purchased from a teacher-sponsored
student  organization  affiliated  with  an   elementary   or
secondary school located in Illinois.
    (10)  A  motor  vehicle  of  the  first division, a motor
vehicle of the second division that is a self-contained motor
vehicle designed or permanently converted to  provide  living
quarters  for  recreational,  camping,  or  travel  use, with
direct walk through to the living quarters from the  driver's
seat,  or  a  motor vehicle of the second division that is of
the van configuration designed for the transportation of  not
less  than  7  nor  more  than  16  passengers, as defined in
Section 1-146 of the Illinois Vehicle Code, that is used  for
automobile  renting,  as  defined  in  the Automobile Renting
Occupation and Use Tax Act.
    (11)  Farm machinery and equipment, both  new  and  used,
including  that  manufactured  on special order, certified by
the purchaser to be used primarily for production agriculture
or  State  or  federal   agricultural   programs,   including
individual replacement parts for the machinery and equipment,
and  including  machinery  and equipment purchased for lease,
but excluding motor vehicles required to be registered  under
the Illinois Vehicle Code.
    (12)  Fuel  and  petroleum products sold to or used by an
air common carrier, certified by the carrier to be  used  for
consumption,  shipment,  or  storage  in  the  conduct of its
business as an air common carrier, for a flight destined  for
or  returning from a location or locations outside the United
States without regard  to  previous  or  subsequent  domestic
stopovers.
    (13)  Proceeds  of  mandatory  service charges separately
stated on customers' bills for the purchase  and  consumption
of food and beverages purchased at retail from a retailer, to
the  extent  that  the  proceeds of the service charge are in
fact turned over as tips or as a substitute for tips  to  the
employees  who  participate  directly  in preparing, serving,
hosting or cleaning up the food  or  beverage  function  with
respect to which the service charge is imposed.
    (14)  Oil  field  exploration,  drilling,  and production
equipment, including (i) rigs and parts of rigs, rotary rigs,
cable tool rigs, and workover rigs,  (ii)  pipe  and  tubular
goods,  including  casing  and drill strings, (iii) pumps and
pump-jack units, (iv) storage tanks and flow lines,  (v)  any
individual   replacement  part  for  oil  field  exploration,
drilling, and production equipment, and  (vi)  machinery  and
equipment  purchased  for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
    (15)  Photoprocessing machinery and equipment,  including
repair  and  replacement  parts, both new and used, including
that  manufactured  on  special  order,  certified   by   the
purchaser  to  be  used  primarily  for  photoprocessing, and
including photoprocessing machinery and  equipment  purchased
for lease.
    (16)  Coal   exploration,   mining,  offhighway  hauling,
processing, maintenance, and reclamation equipment, including
replacement parts  and  equipment,  and  including  equipment
purchased for lease, but excluding motor vehicles required to
be registered under the Illinois Vehicle Code.
    (17)  Distillation  machinery  and  equipment,  sold as a
unit  or  kit,  assembled  or  installed  by  the   retailer,
certified  by  the user to be used only for the production of
ethyl alcohol that will be used for consumption as motor fuel
or as a component of motor fuel for the personal use  of  the
user, and not subject to sale or resale.
    (18)  Manufacturing    and   assembling   machinery   and
equipment used primarily in the process of  manufacturing  or
assembling tangible personal property for wholesale or retail
sale or lease, whether that sale or lease is made directly by
the  manufacturer  or  by  some  other  person,  whether  the
materials  used  in the process are owned by the manufacturer
or some other person, or whether that sale or lease  is  made
apart  from or as an incident to the seller's engaging in the
service occupation of producing machines, tools, dies,  jigs,
patterns,  gauges,  or  other  similar items of no commercial
value on special order for a particular purchaser.
    (19)  Personal  property  delivered  to  a  purchaser  or
purchaser's donee inside Illinois when the purchase order for
that personal property was  received  by  a  florist  located
outside  Illinois  who  has a florist located inside Illinois
deliver the personal property.
    (20)  Semen used for artificial insemination of livestock
for direct agricultural production.
    (21)  Horses, or interests in horses, registered with and
meeting the requirements of any of  the  Arabian  Horse  Club
Registry  of  America, Appaloosa Horse Club, American Quarter
Horse Association, United  States  Trotting  Association,  or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes.
    (22)   Computers  and  communications  equipment utilized
for any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients  purchased  by  a
lessor who leases the equipment, under a lease of one year or
longer  executed  or  in  effect at the time the lessor would
otherwise be subject to the tax imposed by  this  Act,  to  a
hospital    that  has  been  issued  an  active tax exemption
identification number by the Department under Section  1g  of
the  Retailers'  Occupation  Tax  Act.   If  the equipment is
leased in a manner that does not qualify for  this  exemption
or  is  used in any other non-exempt manner, the lessor shall
be liable for the tax imposed under this Act or  the  Service
Use  Tax  Act,  as  the case may be, based on the fair market
value of the property at  the  time  the  non-qualifying  use
occurs.   No  lessor  shall  collect or attempt to collect an
amount (however designated) that purports to  reimburse  that
lessor for the tax imposed by this Act or the Service Use Tax
Act,  as the case may be, if the tax has not been paid by the
lessor.  If a lessor improperly collects any such amount from
the lessee, the lessee shall have a legal right  to  claim  a
refund  of  that  amount  from the lessor.  If, however, that
amount is not refunded to the  lessee  for  any  reason,  the
lessor is liable to pay that amount to the Department.
    (23)   Personal property purchased by a lessor who leases
the  property,  under a lease of  one year or longer executed
or in effect at  the  time  the  lessor  would  otherwise  be
subject  to  the  tax  imposed by this Act, to a governmental
body that has been  issued  an  active  sales  tax  exemption
identification  number  by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the property is  leased
in  a manner that does not qualify for this exemption or used
in any other non-exempt manner, the lessor  shall  be  liable
for  the  tax  imposed  under this Act or the Service Use Tax
Act, as the case may be, based on the fair  market  value  of
the  property  at the time the non-qualifying use occurs.  No
lessor shall collect or attempt to collect an amount (however
designated) that purports to reimburse that  lessor  for  the
tax  imposed  by  this Act or the Service Use Tax Act, as the
case may be, if the tax has not been paid by the lessor.   If
a lessor improperly collects any such amount from the lessee,
the lessee shall have a legal right to claim a refund of that
amount  from  the  lessor.   If,  however, that amount is not
refunded to the lessee for any reason, the lessor  is  liable
to pay that amount to the Department.
    (24)   Beginning  with  taxable  years ending on or after
December 31, 1995 and ending with taxable years ending on  or
before  December  31, 2004, personal property that is donated
for disaster relief to  be  used  in  a  State  or  federally
declared disaster area in Illinois or bordering Illinois by a
manufacturer  or retailer that is registered in this State to
a   corporation,   society,   association,   foundation,   or
institution that  has  been  issued  a  sales  tax  exemption
identification  number by the Department that assists victims
of the disaster who reside within the declared disaster area.
    (25)   Beginning with taxable years ending  on  or  after
December  31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is  used  in
the  performance  of  infrastructure  repairs  in this State,
including but not limited to  municipal  roads  and  streets,
access  roads,  bridges,  sidewalks,  waste disposal systems,
water and  sewer  line  extensions,  water  distribution  and
purification  facilities,  storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois  when  such  repairs  are  initiated  on  facilities
located in the declared disaster area within 6  months  after
the disaster.
(Source:  P.A.  88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
89-16,  eff.  5-30-95;  89-115,  eff.  1-1-96;  89-349,  eff.
8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96;  89-626,
eff. 8-9-96; revised 8-21-96.)

    Section  2-80.   The  Service  Use  Tax Act is amended by
changing Section 3-5 as follows:

    (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
    Sec. 3-5.  Exemptions.  Use  of  the  following  tangible
personal property is exempt from the tax imposed by this Act:
    (1)  Personal  property  purchased  from  a  corporation,
society,    association,    foundation,    institution,    or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for  the  benefit  of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
    (2)  Personal property purchased by a non-profit Illinois
county fair association for use in conducting, operating,  or
promoting the county fair.
    (3)  Personal  property  purchased  by  a  not-for-profit
music  or  dramatic  arts  organization  that establishes, by
proof required  by  the  Department  by  rule,  that  it  has
received an exemption under Section 501(c)(3) of the Internal
Revenue  Code  and  that  is  organized  and operated for the
presentation  of  live  public  performances  of  musical  or
theatrical works on a regular basis.
    (4)  Legal  tender,  currency,  medallions,  or  gold  or
silver  coinage  issued  by  the  State  of   Illinois,   the
government of the United States of America, or the government
of any foreign country, and bullion.
    (5)  Graphic  arts  machinery  and  equipment,  including
repair   and  replacement  parts,  both  new  and  used,  and
including that manufactured on special order or purchased for
lease, certified by the purchaser to be  used  primarily  for
graphic arts production.
    (6)  Personal property purchased from a teacher-sponsored
student   organization   affiliated  with  an  elementary  or
secondary school located in Illinois.
    (7)  Farm machinery and equipment,  both  new  and  used,
including  that  manufactured  on special order, certified by
the purchaser to be used primarily for production agriculture
or  State  or  federal   agricultural   programs,   including
individual replacement parts for the machinery and equipment,
and  including  machinery  and equipment purchased for lease,
but excluding motor vehicles required to be registered  under
the Illinois Vehicle Code.
    (8)  Fuel  and  petroleum  products sold to or used by an
air common carrier, certified by the carrier to be  used  for
consumption,  shipment,  or  storage  in  the  conduct of its
business as an air common carrier, for a flight destined  for
or  returning from a location or locations outside the United
States without regard  to  previous  or  subsequent  domestic
stopovers.
    (9)  Proceeds  of  mandatory  service  charges separately
stated on customers' bills for the purchase  and  consumption
of food and beverages acquired as an incident to the purchase
of  a  service  from  a  serviceman,  to  the extent that the
proceeds of the service charge are in  fact  turned  over  as
tips  or  as  a  substitute  for  tips  to  the employees who
participate  directly  in  preparing,  serving,  hosting   or
cleaning  up  the  food  or beverage function with respect to
which the service charge is imposed.
    (10)  Oil field  exploration,  drilling,  and  production
equipment, including (i) rigs and parts of rigs, rotary rigs,
cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
goods, including casing and drill strings,  (iii)  pumps  and
pump-jack  units,  (iv) storage tanks and flow lines, (v) any
individual  replacement  part  for  oil  field   exploration,
drilling,  and  production  equipment, and (vi) machinery and
equipment purchased for lease; but excluding  motor  vehicles
required to be registered under the Illinois Vehicle Code.
    (11)  Proceeds from the sale of photoprocessing machinery
and  equipment,  including repair and replacement parts, both
new and used, including that manufactured on  special  order,
certified   by   the  purchaser  to  be  used  primarily  for
photoprocessing, and including photoprocessing machinery  and
equipment purchased for lease.
    (12)  Coal   exploration,   mining,  offhighway  hauling,
processing, maintenance, and reclamation equipment, including
replacement parts  and  equipment,  and  including  equipment
purchased for lease, but excluding motor vehicles required to
be registered under the Illinois Vehicle Code.
    (13)  Semen used for artificial insemination of livestock
for direct agricultural production.
    (14)  Horses, or interests in horses, registered with and
meeting  the  requirements  of  any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club,  American  Quarter
Horse  Association,  United  States  Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes.
    (15)  Computers and communications equipment utilized for
any hospital purpose and equipment  used  in  the  diagnosis,
analysis,  or  treatment  of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the  time  the  lessor  would
otherwise  be  subject  to  the tax imposed by this Act, to a
hospital  that  has  been  issued  an  active  tax  exemption
identification number by the Department under Section  1g  of
the Retailers' Occupation Tax Act. If the equipment is leased
in  a  manner  that does not qualify for this exemption or is
used in any other non-exempt  manner,  the  lessor  shall  be
liable for the tax imposed under this Act or the Use Tax Act,
as  the  case  may  be, based on the fair market value of the
property at the  time  the  non-qualifying  use  occurs.   No
lessor shall collect or attempt to collect an amount (however
designated)  that  purports  to reimburse that lessor for the
tax imposed by this Act or the Use Tax Act, as the  case  may
be,  if the tax has not been paid by the lessor.  If a lessor
improperly collects any such  amount  from  the  lessee,  the
lessee  shall  have  a  legal right to claim a refund of that
amount from the lessor.  If,  however,  that  amount  is  not
refunded  to  the lessee for any reason, the lessor is liable
to pay that amount to the Department.
    (16)  Personal property purchased by a lessor who  leases
the property, under a lease of one year or longer executed or
in  effect  at the time the lessor would otherwise be subject
to the tax imposed by this Act, to a governmental  body  that
has been issued an active tax exemption identification number
by   the  Department  under  Section  1g  of  the  Retailers'
Occupation Tax Act.  If the property is leased  in  a  manner
that  does  not  qualify for this exemption or is used in any
other non-exempt manner, the lessor shall be liable  for  the
tax  imposed  under  this Act or the Use Tax Act, as the case
may be, based on the fair market value of the property at the
time the non-qualifying use occurs.  No lessor shall  collect
or  attempt  to  collect  an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Use Tax Act, as the case may be, if  the  tax  has
not been paid by the lessor.  If a lessor improperly collects
any  such  amount  from  the  lessee, the lessee shall have a
legal right to claim a refund of that amount from the lessor.
If, however, that amount is not refunded to  the  lessee  for
any  reason,  the  lessor is liable to pay that amount to the
Department.
    (17)  Beginning with taxable years  ending  on  or  after
December  31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that  is  donated
for  disaster  relief  to  be  used  in  a State or federally
declared disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State  to
a   corporation,   society,   association,   foundation,   or
institution  that  has  been  issued  a  sales  tax exemption
identification number by the Department that assists  victims
of the disaster who reside within the declared disaster area.
    (18)    Beginning  with  taxable years ending on or after
December 31, 1995 and ending with taxable years ending on  or
before  December  31, 2004, personal property that is used in
the performance of  infrastructure  repairs  in  this  State,
including  but  not  limited  to municipal roads and streets,
access roads, bridges,  sidewalks,  waste  disposal  systems,
water  and  sewer  line  extensions,  water  distribution and
purification facilities, storm water drainage  and  retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois  when  such  repairs  are  initiated  on  facilities
located  in  the declared disaster area within 6 months after
the disaster.
(Source: P.A. 88-337; 88-480; 88-547; 88-670,  eff.  12-2-94;
89-16,  eff.  5-30-95;  89-115,  eff.  1-1-96;  89-349,  eff.
8-17-95;  89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
eff. 8-9-96; revised 8-21-96.)

    Section 2-85.  The Service Occupation Tax Act is  amended
by changing Section 3-5 as follows:

    (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
    Sec.  3-5.   Exemptions.  The following tangible personal
property is exempt from the tax imposed by this Act:
    (1)  Personal property sold by  a  corporation,  society,
association,  foundation, institution, or organization, other
than a limited  liability  company,  that  is  organized  and
operated  as  a  not-for-profit  service  enterprise  for the
benefit of persons 65 years of age or older if  the  personal
property  was not purchased by the enterprise for the purpose
of resale by the enterprise.
    (2)  Personal  property  purchased  by  a  not-for-profit
Illinois county  fair  association  for  use  in  conducting,
operating, or promoting the county fair.
    (3)  Personal  property  purchased  by any not-for-profit
music or dramatic  arts  organization  that  establishes,  by
proof  required  by  the  Department  by  rule,  that  it has



received  an  exemption   under  Section  501(c)(3)  of   the
Internal  Revenue Code and that is organized and operated for
the presentation of live public performances  of  musical  or
theatrical works on a regular basis.
    (4)  Legal  tender,  currency,  medallions,  or  gold  or
silver   coinage   issued  by  the  State  of  Illinois,  the
government of the United States of America, or the government
of any foreign country, and bullion.
    (5)  Graphic  arts  machinery  and  equipment,  including
repair  and  replacement  parts,  both  new  and  used,   and
including that manufactured on special order or purchased for
lease,  certified  by  the purchaser to be used primarily for
graphic arts production.
    (6)  Personal  property  sold  by   a   teacher-sponsored
student   organization   affiliated  with  an  elementary  or
secondary school located in Illinois.
    (7)  Farm machinery and equipment,  both  new  and  used,
including  that  manufactured  on special order, certified by
the purchaser to be used primarily for production agriculture
or  State  or  federal   agricultural   programs,   including
individual replacement parts for the machinery and equipment,
and  including  machinery  and equipment purchased for lease,
but excluding motor vehicles required to be registered  under
the Illinois Vehicle Code.
    (8)  Fuel  and  petroleum  products sold to or used by an
air common carrier, certified by the carrier to be  used  for
consumption,  shipment,  or  storage  in  the  conduct of its
business as an air common carrier, for a flight destined  for
or  returning from a location or locations outside the United
States without regard  to  previous  or  subsequent  domestic
stopovers.
    (9)  Proceeds  of  mandatory  service  charges separately
stated on customers' bills for the purchase  and  consumption
of food and beverages, to the extent that the proceeds of the
service  charge  are  in  fact  turned  over  as tips or as a
substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning  up  the  food  or
beverage function with respect to which the service charge is
imposed.
    (10)  Oil  field  exploration,  drilling,  and production
equipment, including (i) rigs and parts of rigs, rotary rigs,
cable tool rigs, and workover rigs,  (ii)  pipe  and  tubular
goods,  including  casing  and drill strings, (iii) pumps and
pump-jack units, (iv) storage tanks and flow lines,  (v)  any
individual   replacement  part  for  oil  field  exploration,
drilling, and production equipment, and  (vi)  machinery  and
equipment  purchased  for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
    (11)  Photoprocessing machinery and equipment,  including
repair  and  replacement  parts, both new and used, including
that  manufactured  on  special  order,  certified   by   the
purchaser  to  be  used  primarily  for  photoprocessing, and
including photoprocessing machinery and  equipment  purchased
for lease.
    (12)  Coal   exploration,   mining,  offhighway  hauling,
processing, maintenance, and reclamation equipment, including
replacement parts  and  equipment,  and  including  equipment
purchased for lease, but excluding motor vehicles required to
be registered under the Illinois Vehicle Code.
    (13)  Food  for  human consumption that is to be consumed
off the premises where  it  is  sold  (other  than  alcoholic
beverages,  soft  drinks  and food that has been prepared for
immediate consumption) and prescription  and  nonprescription
medicines,  drugs,  medical  appliances,  and  insulin, urine
testing materials, syringes, and needles used  by  diabetics,
for  human  use, when purchased for use by a person receiving
medical assistance under Article 5 of the Illinois Public Aid
Code who resides in a licensed long-term  care  facility,  as
defined in the Nursing Home Care Act.
    (14)  Semen used for artificial insemination of livestock
for direct agricultural production.
    (15)  Horses, or interests in horses, registered with and
meeting  the  requirements  of  any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club,  American  Quarter
Horse  Association,  United  States  Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes.
    (16)   Computers and  communications  equipment  utilized
for any hospital purpose and equipment used in the diagnosis,
analysis,  or treatment of hospital patients sold to a lessor
who leases the equipment, under a lease of one year or longer
executed or in effect at the  time  of  the  purchase,  to  a
hospital  that  has  been  issued  an  active  tax  exemption
identification  number  by the Department under Section 1g of
the Retailers' Occupation Tax Act.
    (17)   Personal property sold to a lessor who leases  the
property,  under a lease of one year or longer executed or in
effect at the time of the purchase, to  a  governmental  body
that  has  been issued an active tax exemption identification
number by the Department under Section 1g of  the  Retailers'
Occupation Tax Act.
    (18)   Beginning  with  taxable  years ending on or after
December 31, 1995 and ending with taxable years ending on  or
before  December  31, 2004, personal property that is donated
for disaster relief to  be  used  in  a  State  or  federally
declared disaster area in Illinois or bordering Illinois by a
manufacturer  or retailer that is registered in this State to
a   corporation,   society,   association,   foundation,   or
institution that  has  been  issued  a  sales  tax  exemption
identification  number by the Department that assists victims
of the disaster who reside within the declared disaster area.
    (19)   Beginning with taxable years ending  on  or  after
December  31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is  used  in
the  performance  of  infrastructure  repairs  in this State,
including but not limited to  municipal  roads  and  streets,
access  roads,  bridges,  sidewalks,  waste disposal systems,
water and  sewer  line  extensions,  water  distribution  and
purification  facilities,  storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois  when  such  repairs  are  initiated  on  facilities
located in the declared disaster area within 6  months  after
the disaster.
(Source: P.A.  88-337;  88-480; 88-547; 88-670, eff. 12-2-94;
89-16,  eff.  5-30-95;  89-115,  eff.  1-1-96;  89-349,  eff.
8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96;  89-626,
eff. 8-9-96; revised 8-21-96.)

    Section  2-90.   The  Retailers'  Occupation  Tax  Act is
amended by changing Section 2-5 as follows:

    (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
    Sec. 2-5.  Exemptions.  Gross receipts from proceeds from
the sale of the  following  tangible  personal  property  are
exempt from the tax imposed by this Act:
    (1)  Farm chemicals.
    (2)  Farm  machinery  and  equipment,  both new and used,
including that manufactured on special  order,  certified  by
the purchaser to be used primarily for production agriculture
or   State   or   federal  agricultural  programs,  including
individual replacement parts for the machinery and equipment,
and including machinery and equipment  purchased  for  lease,
but  excluding motor vehicles required to be registered under
the Illinois Vehicle Code.
    (3)  Distillation machinery and equipment, sold as a unit
or kit, assembled or installed by the retailer, certified  by
the  user to be used only for the production of ethyl alcohol
that will be used for consumption  as  motor  fuel  or  as  a
component of motor fuel for the personal use of the user, and
not subject to sale or resale.
    (4)  Graphic  arts  machinery  and  equipment,  including
repair   and  replacement  parts,  both  new  and  used,  and
including that manufactured on special order or purchased for
lease, certified by the purchaser to be  used  primarily  for
graphic arts production.
    (5)  A  motor  vehicle  of  the  first  division, a motor
vehicle of the second division that is a self-contained motor
vehicle designed or permanently converted to  provide  living
quarters  for  recreational,  camping,  or  travel  use, with
direct walk through access to the living  quarters  from  the
driver's seat, or a motor vehicle of the second division that
is  of  the van configuration designed for the transportation
of not less than 7 nor more than 16 passengers, as defined in
Section 1-146 of the Illinois Vehicle Code, that is used  for
automobile  renting,  as  defined  in  the Automobile Renting
Occupation and Use Tax Act.
    (6)  Personal  property  sold  by   a   teacher-sponsored
student   organization   affiliated  with  an  elementary  or
secondary school located in Illinois.
    (7)  Proceeds of that portion of the selling price  of  a
passenger car the sale of which is subject to the Replacement
Vehicle Tax.
    (8)  Personal  property  sold  to an Illinois county fair
association for use in conducting,  operating,  or  promoting
the county fair.
    (9)  Personal  property sold to a not-for-profit music or
dramatic  arts  organization  that  establishes,   by   proof
required  by  the Department by rule, that it has received an
exemption under Section 501(c) (3) of  the  Internal  Revenue
Code  and that is organized and operated for the presentation
of live public performances of musical or theatrical works on
a regular basis.
    (10)  Personal property sold by a  corporation,  society,
association,  foundation, institution, or organization, other
than a limited  liability  company,  that  is  organized  and
operated  as  a  not-for-profit  service  enterprise  for the
benefit of persons 65 years of age or older if  the  personal
property  was not purchased by the enterprise for the purpose
of resale by the enterprise.
    (11)  Personal property sold to a governmental body, to a
corporation, society, association, foundation, or institution
organized and operated exclusively for charitable, religious,
or educational purposes, or to a not-for-profit  corporation,
society,    association,    foundation,    institution,    or
organization  that  has  no compensated officers or employees
and  that  is  organized  and  operated  primarily  for   the
recreation  of  persons  55  years of age or older. A limited
liability company may qualify for the  exemption  under  this
paragraph  only if the limited liability company is organized
and operated exclusively for  educational  purposes.  On  and
after July 1, 1987, however, no entity otherwise eligible for
this exemption shall make tax-free purchases unless it has an
active identification number issued by the Department.
    (12)  Personal  property  sold to interstate carriers for
hire for use as rolling stock moving in  interstate  commerce
or  to lessors under leases of one year or longer executed or
in effect at the time of purchase by interstate carriers  for
hire  for  use as rolling stock moving in interstate commerce
and equipment  operated  by  a  telecommunications  provider,
licensed  as  a  common carrier by the Federal Communications
Commission, which is permanently installed in or  affixed  to
aircraft moving in interstate commerce.
    (13)  Proceeds from sales to owners, lessors, or shippers
of  tangible personal property that is utilized by interstate
carriers  for  hire  for  use  as  rolling  stock  moving  in
interstate   commerce   and   equipment   operated    by    a
telecommunications  provider, licensed as a common carrier by
the Federal Communications Commission, which  is  permanently
installed  in  or  affixed  to  aircraft moving in interstate
commerce.
    (14)  Machinery and equipment that will be  used  by  the
purchaser,  or  a  lessee  of the purchaser, primarily in the
process of  manufacturing  or  assembling  tangible  personal
property  for  wholesale or retail sale or lease, whether the
sale or lease is made directly by the manufacturer or by some
other person, whether the materials used in the  process  are
owned  by  the  manufacturer or some other person, or whether
the sale or lease is made apart from or as an incident to the
seller's engaging in  the  service  occupation  of  producing
machines,  tools,  dies,  jigs,  patterns,  gauges,  or other
similar items of no commercial value on special order  for  a
particular purchaser.
    (15)  Proceeds  of  mandatory  service charges separately
stated on customers' bills for purchase  and  consumption  of
food  and  beverages,  to the extent that the proceeds of the
service charge are in fact  turned  over  as  tips  or  as  a
substitute for tips to the employees who participate directly
in  preparing,  serving,  hosting  or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
    (16)  Petroleum products  sold  to  a  purchaser  if  the
seller  is prohibited by federal law from charging tax to the
purchaser.
    (17)  Tangible personal property sold to a common carrier
by rail that receives the physical possession of the property
in Illinois and that transports the property, or shares  with
another common carrier in the transportation of the property,
out  of Illinois on a standard uniform bill of lading showing
the seller of the property as the shipper or consignor of the
property to a destination outside Illinois, for  use  outside
Illinois.
    (18)  Legal  tender,  currency,  medallions,  or  gold or
silver  coinage  issued  by  the  State  of   Illinois,   the
government of the United States of America, or the government
of any foreign country, and bullion.
    (19)  Oil  field  exploration,  drilling,  and production
equipment, including (i) rigs and parts of rigs, rotary rigs,
cable tool rigs, and workover rigs,  (ii)  pipe  and  tubular
goods,  including  casing  and drill strings, (iii) pumps and
pump-jack units, (iv) storage tanks and flow lines,  (v)  any
individual   replacement  part  for  oil  field  exploration,
drilling, and production equipment, and  (vi)  machinery  and
equipment  purchased  for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
    (20)  Photoprocessing machinery and equipment,  including
repair  and  replacement  parts, both new and used, including
that  manufactured  on  special  order,  certified   by   the
purchaser  to  be  used  primarily  for  photoprocessing, and
including photoprocessing machinery and  equipment  purchased
for lease.
    (21)  Coal   exploration,   mining,  offhighway  hauling,
processing, maintenance, and reclamation equipment, including
replacement parts  and  equipment,  and  including  equipment
purchased for lease, but excluding motor vehicles required to
be registered under the Illinois Vehicle Code.
    (22)  Fuel  and  petroleum products sold to or used by an
air  carrier,  certified  by  the  carrier  to  be  used  for
consumption, shipment, or  storage  in  the  conduct  of  its
business  as an air common carrier, for a flight destined for
or returning from a location or locations outside the  United
States  without  regard  to  previous  or subsequent domestic
stopovers.
    (23)  A  transaction  in  which  the  purchase  order  is
received by a florist who is located  outside  Illinois,  but
who has a florist located in Illinois deliver the property to
the purchaser or the purchaser's donee in Illinois.
    (24)  Fuel  consumed  or  used in the operation of ships,
barges, or vessels that are used  primarily  in  or  for  the
transportation  of  property or the conveyance of persons for
hire on rivers  bordering  on  this  State  if  the  fuel  is
delivered  by  the  seller to the purchaser's barge, ship, or
vessel while it is afloat upon that bordering river.
    (25)  A motor vehicle sold in this State to a nonresident
even though the motor vehicle is delivered to the nonresident
in this State, if the motor vehicle is not to  be  titled  in
this  State, and if a driveaway decal permit is issued to the
motor vehicle as provided in Section 3-603  of  the  Illinois
Vehicle  Code  or  if  the  nonresident purchaser has vehicle
registration plates to transfer to  the  motor  vehicle  upon
returning  to  his  or  her  home state.  The issuance of the
driveaway   decal   permit   or   having   the   out-of-state
registration plates to be transferred is prima facie evidence
that the motor vehicle will not be titled in this State.
    (26)  Semen used for artificial insemination of livestock
for direct agricultural production.
    (27)  Horses, or interests in horses, registered with and
meeting the requirements of any of  the  Arabian  Horse  Club
Registry  of  America, Appaloosa Horse Club, American Quarter
Horse Association, United  States  Trotting  Association,  or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes.
    (28)   Computers  and  communications  equipment utilized
for any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a  lessor
who leases the equipment, under a lease of one year or longer
executed  or  in  effect  at  the  time of the purchase, to a
hospital  that  has  been  issued  an  active  tax  exemption
identification number by the Department under Section  1g  of
this Act.
    (29)   Personal  property sold to a lessor who leases the
property, under a lease of one year or longer executed or  in
effect  at  the  time of the purchase, to a governmental body
that has been issued an active tax  exemption  identification
number by the Department under Section 1g of this Act.
    (30)   Beginning  with  taxable  years ending on or after
December 31, 1995 and ending with taxable years ending on  or
before  December  31, 2004, personal property that is donated
for disaster relief to  be  used  in  a  State  or  federally
declared disaster area in Illinois or bordering Illinois by a
manufacturer  or retailer that is registered in this State to
a   corporation,   society,   association,   foundation,   or
institution that  has  been  issued  a  sales  tax  exemption
identification  number by the Department that assists victims
of the disaster who reside within the declared disaster area.
    (31)   Beginning with taxable years ending  on  or  after
December  31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is  used  in
the  performance  of  infrastructure  repairs  in this State,
including but not limited to  municipal  roads  and  streets,
access  roads,  bridges,  sidewalks,  waste disposal systems,
water and  sewer  line  extensions,  water  distribution  and
purification  facilities,  storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois  when  such  repairs  are  initiated  on  facilities
located in the declared disaster area within 6  months  after
the disaster.
(Source: P.A.  88-337;  88-480; 88-547; 88-670, eff. 12-2-94;
89-16,  eff.  5-30-95;  89-115,  eff.  1-1-96;  89-349,  eff.
8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96;  89-626,
eff. 8-9-96; revised 8-21-96.)

    Section  2-95.   The  Property  Tax  Code  is  amended by
changing Sections 15-172 and 15-180  and  setting  forth  and
renumbering multiple versions of Section 18-183 as follows:

    (35 ILCS 200/15-172)
    Sec.  15-172. Senior Citizens Assessment Freeze Homestead
Exemption.
    (a)  This Section may be cited  as  the  Senior  Citizens
Assessment Freeze Homestead Exemption.
    (b)  As used in this Section:
    "Applicant"   means   an  individual  who  has  filed  an
application under this Section.
    "Base amount" means  the  base  year  equalized  assessed
value  of  the  residence  plus  the  first  year's equalized
assessed value of any added improvements which increased  the
assessed value of the residence after the base year.
    "Base  year"  means the taxable year prior to the taxable
year for which the applicant first qualifies and applies  for
the  exemption  provided  that  in the prior taxable year the
property was improved with a  permanent  structure  that  was
occupied  as  a residence by the applicant who was liable for
paying real property taxes on the property and who was either
(i) an owner of record  of  the  property  or  had  legal  or
equitable  interest in the property as evidenced by a written
instrument or (ii) had a legal or  equitable  interest  as  a
lessee  in  the  parcel  of  property  that was single family
residence.
    "Chief  County  Assessment  Officer"  means  the   County
Assessor  or Supervisor of Assessments of the county in which
the property is located.
    "Equalized assessed value" means the  assessed  value  as
equalized by the Illinois Department of Revenue.
    "Household"  means  the  applicant,  the  spouse  of  the
applicant,  and  all  persons  using  the  residence  of  the
applicant as their principal place of residence.
    "Household  income"  means  the  combined  income  of the
members of a household for the calendar  year  preceding  the
taxable year.
    "Income" has the same meaning as provided in Section 3.07
of  the  Senior  Citizens  and  Disabled Persons Property Tax
Relief and Pharmaceutical Assistance Act.
    "Internal Revenue Code of 1986" means the  United  States
Internal  Revenue  Code  of 1986 or any successor law or laws
relating to federal income  taxes  in  effect  for  the  year
preceding the taxable year.
    "Life  care  facility  that  qualifies  as a cooperative"
means a facility as defined in Section 2  of  the  Life  Care
Facilities Act.
    "Residence"   means  the  principal  dwelling  place  and
appurtenant structures used for residential purposes in  this
State  occupied  on  January  1  of  the  taxable  year  by a
household and so much of the surrounding  land,  constituting
the  parcel  upon which the dwelling place is situated, as is
used for residential purposes. If the Chief County Assessment
Officer has established a specific legal  description  for  a
portion  of  property  constituting  the residence, then that
portion of property shall be deemed  the  residence  for  the
purposes of this Section.
    "Taxable  year"  means  the calendar year during which ad
valorem property taxes payable in the  next  succeeding  year
are levied.
    (c)  Beginning  in  taxable  year 1994, a senior citizens
assessment freeze homestead exemption  is  granted  for  real
property  that is improved with a permanent structure that is
occupied as a residence by an applicant who (i) is  65  years
of age or older during the taxable year, (ii) has a household
income  of  $35,000  or less, (iii) is liable for paying real
property taxes on the property,  and  (iv)  is  an  owner  of
record  of  the property or has a legal or equitable interest
in the property as evidenced by a  written  instrument.  This
homestead  exemption shall also apply to a leasehold interest
in a parcel of property improved with a  permanent  structure
that  is  a  single  family  residence  that is occupied as a
residence by a person who (i) is 65 years  of  age  or  older
during  the  taxable  year,  (ii)  has  a household income of
$35,000 or less, (iii) has a  legal  or  equitable  ownership
interest  in  the  property as lessee, and (iv) is liable for
the payment of real property taxes on that property.
    The amount of  this  exemption  shall  be  the  equalized
assessed value of the residence in the taxable year for which
application is made minus the base amount.
    When  the applicant is a surviving spouse of an applicant
for a  prior  year  for  the  same  residence  for  which  an
exemption  under this Section has been granted, the base year
and base amount for that residence are the same  as  for  the
applicant for the prior year.
    Each  year at the time the assessment books are certified
to the County Clerk, the Board of Review or Board of  Appeals
shall  give to the County Clerk a list of the assessed values
of improvements on each parcel qualifying for this  exemption
that  were added after the base year for this parcel and that
increased the assessed value of the property.
    In the case of land improved with an  apartment  building
owned  and  operated as a cooperative or a building that is a
life care facility  that  qualifies  as  a  cooperative,  the
maximum  reduction  from  the equalized assessed value of the
property is limited to the sum of the  reductions  calculated
for  each unit occupied as a residence by a person or persons
65 years of age or older with a household income  of  $35,000
or  less  who is liable, by contract with the owner or owners
of record, for paying real property taxes on the property and
who is an owner of record of a legal or equitable interest in
the cooperative apartment building, other  than  a  leasehold
interest.  In the instance of a cooperative where a homestead
exemption  has  been  granted   under   this   Section,   the
cooperative  association  or its management firm shall credit
the  savings  resulting  from  that  exemption  only  to  the
apportioned tax liability of the owner who qualified for  the
exemption.   Any  person who willfully refuses to credit that
savings to an owner who qualifies for the exemption is guilty
of a Class B misdemeanor.
    When a homestead exemption has been  granted  under  this
Section  and  an  applicant  then  becomes  a  resident  of a
facility licensed  under  the  Nursing  Home  Care  Act,  the
exemption shall be granted in subsequent years so long as the
residence  (i)  continues  to  be  occupied  by the qualified
applicant's spouse or (ii) if remaining unoccupied, is  still
owned by the qualified applicant for the homestead exemption.
    Beginning  January  1,  1997, when an individual dies who
would have qualified for an exemption under this Section, and
the surviving spouse does not independently qualify for  this
exemption  because  of  age, the exemption under this Section
shall be granted to the surviving spouse for the taxable year
preceding and the taxable year of the death,  provided  that,
except   for  age,  the  surviving  spouse  meets  all  other
qualifications for the granting of this exemption  for  those
years.
    When  married  persons  maintain separate residences, the
exemption provided for in this Section may be claimed by only
one of such persons and for only one residence.
    For taxable year 1994 only, in counties having less  than
3,000,000  inhabitants,  to  receive  the exemption, a person
shall submit an application by February 15, 1995 to the Chief
County Assessment Officer of the county in which the property
is  located.   In   counties   having   3,000,000   or   more
inhabitants, for taxable year 1994 and all subsequent taxable
years,  to  receive  the  exemption,  a  person may submit an
application to the Chief County  Assessment  Officer  of  the
county in which the property is located during such period as
may be specified by the Chief County Assessment Officer.  The
Chief  County  Assessment Officer in counties of 3,000,000 or
more  inhabitants  shall  annually   give   notice   of   the
application  period  by  mail or by publication.  In counties
having  less  than  3,000,000  inhabitants,  beginning   with
taxable year 1995 and thereafter, to receive the exemption, a
person  shall submit an application by July 1 of each taxable
year to the Chief County Assessment Officer of the county  in
which  the  property is located.  A county may, by ordinance,
establish a date  for  submission  of  applications  that  is
earlier than July 1, but in no event shall a county establish
a date for submission of applications that is later than July
1.   The  applicant  shall  submit  with  the  application an
affidavit of the applicant's  total  household  income,  age,
marital  status  (and  if married the name and address of the
applicant's spouse, if known), and principal  dwelling  place
of members of the household on January 1 of the taxable year.
The  Department  shall  establish,  by  rule,  a  method  for
verifying  the  accuracy  of  affidavits  filed by applicants
under this Section. The applications shall be clearly  marked
as  applications  for  the  Senior Citizens Assessment Freeze
Homestead Exemption.
    In counties having less than 3,000,000 inhabitants, if an
applicant was denied an exemption in taxable  year  1994  and
the  denial  occurred  due  to  an  error  on  the part of an
assessment official, or his or her agent  or  employee,  then
beginning in taxable year 1997 the applicant's base year, for
purposes of determining the amount of the exemption, shall be
1993 rather than 1994. In addition, in taxable year 1997, the
applicant's  exemption  shall also include an amount equal to
(i) the amount of any exemption denied to  the  applicant  in
taxable  year  1995  as  a  result of using 1994, rather than
1993, as the base year, (ii)  the  amount  of  any  exemption
denied  to  the applicant in taxable year 1996 as a result of
using 1994, rather than 1993, as the base year, and (iii) the
amount of the exemption erroneously denied for  taxable  year
1994.
    For  purposes  of  this  Section, a person who will be 65
years of  age  during  the  current  taxable  year  shall  be
eligible  to  apply  for  the homestead exemption during that
taxable  year.   Application  shall  be   made   during   the
application  period  in  effect  for the county of his or her
residence.
    The Chief County Assessment  Officer  may  determine  the
eligibility  of  a  life  care  facility  that qualifies as a
cooperative to receive the benefits provided by this  Section
by  use  of  an  affidavit,  application,  visual inspection,
questionnaire, or other reasonable method in order to  insure
that  the  tax  savings  resulting  from  the  exemption  are
credited  by  the  management  firm  to  the  apportioned tax
liability of each  qualifying  resident.   The  Chief  County
Assessment  Officer  may  request  reasonable  proof that the
management firm has so credited that exemption.
    Except as  provided  in  this  Section,  all  information
received  by  the  chief  county  assessment  officer  or the
Department from applications filed  under  this  Section,  or
from any investigation conducted under the provisions of this
Section,  shall be confidential, except for official purposes
or pursuant to official  procedures  for  collection  of  any
State  or  local  tax or enforcement of any civil or criminal
penalty or sanction imposed by this Act or by any statute  or
ordinance  imposing  a  State  or  local  tax. Any person who
divulges any  such  information  in  any  manner,  except  in
accordance with a proper judicial order, is guilty of a Class
A misdemeanor.
    Nothing  contained  in  this  Section  shall  prevent the
Director or chief county assessment officer  from  publishing
or  making  available  reasonable  statistics  concerning the
operation of the exemption contained in this Section in which
the contents of claims are grouped into aggregates in such  a
way  that information contained in any individual claim shall
not be disclosed.
(Source: P.A. 88-669, eff. 11-29-94;  88-682,  eff.  1-13-95;
89-62, eff. 1-1-96; 89-426, eff. 6-1-96; 89-557, eff. 1-1-97;
89-581, eff. 1-1-97; 89-626, eff. 8-9-96; revised 9-3-96.)

    (35 ILCS 200/15-180)
    Sec.    15-180.    Homestead   improvements.    Homestead
properties that have been improved and residential structures
on homestead property that  have  been  rebuilt  following  a
catastrophic  event  are  entitled to a homestead improvement
exemption, limited to $30,000 per year in  fair  cash  value,
when  that  property  is  owned  and  used  exclusively for a
residential purpose and upon demonstration  that  a  proposed
increase  in  assessed  value is attributable solely to a new
improvement of an existing structure or the rebuilding  of  a
residential  structure following a catastrophic event.  To be
eligible  for  an  exemption  under  this  Section  after   a
catastrophic event, the residential structure must be rebuilt
within  2  years  after the catastrophic event. The exemption
for rebuilt structures under  this  Section  applies  to  the
increase  in value of the rebuilt structure over the value of
the structure before the catastrophic event.  The  amount  of
the  exemption  shall be limited to the fair cash value added
by the new improvement or rebuilding and shall continue for 4
years  from  the  date  the  improvement  or  rebuilding   is
completed  and  occupied, or until the next following general
assessment of that property, whichever is later.
    A proclamation of disaster by the President of the United
States or  Governor  of  the  State  of  Illinois  is  not  a
prerequisite  to  the  classification  of  an occurrence as a
catastrophic  event  under  this  Section.   A  "catastrophic
event" may include an  occurrence  of  widespread  or  severe
damage  or  loss  of property resulting from any catastrophic
cause including but not  limited  to  fire,  including  arson
(provided the fire was not caused by the willful action of an
owner  or resident of the property), flood, earthquake, wind,
storm, explosion, or extended  periods  of  severe  inclement
weather.   In the case of a residential structure affected by
flooding, the  structure  shall  not  be  eligible  for  this
homestead improvement exemption unless it is located within a
local  jurisdiction  which  is  participating in the National
Flood Insurance Program.
    In  counties  of  less  than  3,000,000  inhabitants,  in
addition to the notice requirement  under  Section  12-30,  a
supervisor  of  assessments,  county assessor, or township or
multi-township assessor responsible for adding an  assessable
improvement  to  a  residential  property's  assessment shall
either notify a taxpayer whose assessment  has  been  changed
since  the  last  preceding  assessment that he or she may be
eligible for the exemption provided  under  this  Section  or
shall grant the exemption automatically.
(Source:  P.A.  88-455;  89-595,  eff.  1-1-97;  89-690, eff.
6-1-97; revised 1-15-97)

    (35 ILCS 200/18-183)
    Sec. 18-183.  Cancellation and repayment of tax benefits.
Beginning with tax year 1996, if any taxing  district  enters
into  an  agreement  that explicitly sets forth the terms and
length of a contract and thereby grants a  tax  abatement  or
other  tax  benefit  under  Sections 18-165 through 18-180 of
this Code, under the Economic Development Area Tax  Increment
Allocation  Act, the County Economic Development Project Area
Tax Increment Allocation  Act  of  1991,  the  Tax  Increment
Allocation  Redevelopment  Act,  the Industrial Jobs Recovery
Law, the Economic  Development  Project  Area  Tax  Increment
Allocation  Act  of  1995,  or  under  any other statutory or
constitutional authority implemented under the  Property  Tax
Code  to  a  private  individual or entity for the purpose of
originating,  locating,   maintaining,   rehabilitating,   or
expanding  a business facility within the taxing district and
the individual or entity relocates the entire  facility  from
the  taxing  district in violation of the terms and length of
the contract explicitly  set  forth  in  the  agreement,  the
abatement  or other tax benefit for the remainder of the term
is cancelled and the amount of the abatements  or  other  tax
benefits  granted  before cancellation shall be repaid to the
taxing district within 30 days.  This Section may  be  waived
by  the  mutual agreement of the individual or entity and the
taxing district.
(Source: P.A. 89-591, eff. 8-1-96; revised 8-15-96.)

    (35 ILCS 200/18-184)
    Sec. 18-184. 18-183.   Abatement;  annexation  agreement.
Upon   a  majority  vote  of  its  governing  authority,  any
municipality may, after the  determination  of  the  assessed
valuation  of  its  property, order the county clerk to abate
any portion of its taxes on any property that is the  subject
of  an  annexation agreement between the municipality and the
property owner.
(Source: P.A. 89-537, eff. 1-1-97; revised 8-15-96.)

    Section 2-100.  The Illinois Pension Code is  amended  by
changing Section 16-106 as follows:
    (40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
    Sec.    16-106.  Teacher.    "Teacher":   The   following
individuals, provided that, for employment prior to  July  1,
1990,  they  are  employed  on  a  full-time basis, or if not
full-time, on a permanent and continuous basis in a  position
in  which  services  are expected to be rendered for at least
one school term:
         (1)  Any educational,  administrative,  professional
    or  other  staff  employed  in  the public common schools
    included within  this  system  in  a  position  requiring
    certification  under  the law governing the certification
    of teachers;
         (2)  Any educational,  administrative,  professional
    or other staff employed in any facility of the Department
    of  Children  and  Family  Services  or the Department of
    Human Services, in  a  position  requiring  certification
    under  the  law  governing the certification of teachers,
    and any person who (i) works in such a position  for  the
    Department  of  Corrections,  (ii)  was  a member of this
    System on May 31, 1987, and (iii) did not elect to become
    a  member  of  the  State  Employees'  Retirement  System
    pursuant to Section 14-108.2 of this Code;
         (3)  Any   regional   superintendent   of   schools,
    assistant  regional  superintendent  of  schools,   State
    Superintendent  of  Education; any person employed by the
    State Board of Education as an executive;  any  executive
    of  the  boards  engaged  in the service of public common
    school education in school districts covered  under  this
    system  of which the State Superintendent of Education is
    an ex-officio member;
         (4)  Any employee  of  a  school  board  association
    operating  in  compliance  with  Article 23 of the School
    Code who is certificated  under  the  law  governing  the
    certification of teachers;
         (5)  Any person employed by the retirement system as
    an  executive,  and any person employed by the retirement
    system who is certificated under the  law  governing  the
    certification of teachers;
         (6)  Any  educational,  administrative, professional
    or other staff employed by and under the supervision  and
    control of a regional superintendent of schools, provided
    such  employment  position  requires  the  person  to  be
    certificated under the law governing the certification of
    teachers  and  is  in an educational program serving 2 or
    more districts  in  accordance  with  a  joint  agreement
    authorized by the School Code or by federal legislation;
         (7)  Any  educational,  administrative, professional
    or  other  staff  employed  in   an  educational  program
    serving 2 or more school districts in accordance  with  a
    joint  agreement  authorized  by  the  School  Code or by
    federal  legislation  and   in   a   position   requiring
    certification  under the laws governing the certification
    of teachers;
         (8)  Any officer or employee of a statewide  teacher
    organization  who  is  certified  under the law governing
    certification of teachers, provided: (i)  the  individual
    had  previously established creditable service under this
    Article, (ii) the individual files with the system, on or
    before January 1, 1990, an irrevocable election to become
    a member, and  (iii)  the  individual  does  not  receive
    credit  for  such service under any other Article of this
    Code;
         (9)  Any educational, administrative,  professional,
    or  other staff employed in a charter school operating in
    compliance  with  the  Charter   Schools   Law   who   is
    certificated under the law governing the certification of
    teachers.
    An  annuitant  receiving  a retirement annuity under this
Article or under Article 17 of this Code who  is  temporarily
employed  by  a  board  of  education  or  other employer not
exceeding that  permitted  under  Section  16-118  is  not  a
"teacher"  for  purposes  of  this Article.  A person who has
received  a  single-sum  retirement  benefit  under   Section
16-136.4  of  this Article is not a "teacher" for purposes of
this Article.
(Source: P.A. 89-450,  eff.  4-10-96;  89-507,  eff.  7-1-97;
revised 10-3-96.)

    Section  2-105.   The Counties Code is amended by setting
forth,  changing,  and  renumbering  multiple   versions   of
Sections 5-1069.5 and 5-1121 as follows:

    (55 ILCS 5/5-1069.2)
    Sec.  5-1069.2.  5-1069.5.   Post-parturition  care. If a
county, including a home rule county, is a  self-insurer  for
purposes  of  providing  health  insurance  coverage  for its
employees,  the  coverage  shall  include  coverage  for  the
post-parturition care benefits required to be  covered  by  a
policy  of  accident  and health insurance under Section 356s
356r of the Illinois Insurance Code.   The  requirement  that
post-parturition  care be covered as provided in this Section
is an exclusive power and function of  the  State  and  is  a
denial   and   limitation   under  Article  VII,  Section  6,
subsection (h) of the Illinois  Constitution.   A  home  rule
county  to  which this Section applies must comply with every
provision of this Section.
(Source: P.A. 89-513, eff. 9-15-96; revised 7-24-96.)

    (55 ILCS 5/5-1069.5)
    Sec.  5-1069.5.  Woman's  health  care   provider.    All
counties,  including  home  rule counties, are subject to the
provisions of Section 356r of the  Illinois  Insurance  Code.
The  requirement under this Section that health care benefits
provided by counties comply with Section 356r of the Illinois
Insurance Code is an exclusive  power  and  function  of  the
State  and  is  a  denial  and limitation of home rule county
powers under Article VII, Section 6, subsection  (h)  of  the
Illinois Constitution.
(Source: P.A. 89-514, eff. 7-17-96; revised 7-24-96.)

    (55 ILCS 5/5-1121)
    Sec. 5-1121.  Demolition, repair, or enclosure.
    (a)  The  county  board  of  each  county  may  demolish,
repair,  or  enclose  or  cause  the  demolition,  repair, or
enclosure of dangerous and unsafe  buildings  or  uncompleted
and  abandoned  buildings within the territory of the county,
but not within the territory of  any  municipality,  and  may
remove  or  cause  the  removal of garbage, debris, and other
hazardous, noxious, or unhealthy substances or materials from
those buildings.
    The county board shall apply to the circuit court of  the
county  in  which  the  building  is located (i) for an order
authorizing action to be taken with respect to a building  if
the  owner  or  owners  of  the  building, including the lien
holders of record, after at least 15 days' written notice  by
mail  to  do  so,  have  failed to put the building in a safe
condition or to demolish it or (ii) for  an  order  requiring
the owner or owners of record to demolish, repair, or enclose
the   building  or  to  remove  garbage,  debris,  and  other
hazardous, noxious, or unhealthy substances or materials from
the building.  It is not a defense to  the  cause  of  action
that  the  building  is  boarded  up  or  otherwise enclosed,
although the court  may  order  the  defendant  to  have  the
building  boarded  up  or  otherwise  enclosed.  Where,  upon
diligent  search, the identity or whereabouts of the owner or
owners of the building, including the lien holders of record,
is not ascertainable, notice mailed to the person or  persons
in whose name the real estate was last assessed is sufficient
notice under this Section.
    The  hearing  upon  the  application to the circuit court
shall be expedited by the court and shall be given precedence
over all other suits.
    The cost of the demolition, repair, enclosure, or removal
incurred by the county, by an intervenor, or by a lien holder
of record, including court costs, attorney's fees, and  other
costs   related  to  the  enforcement  of  this  Section,  is
recoverable from the owner or owners of the  real  estate  or
the  previous  owner  or both if the property was transferred
during the 15 day notice period and is a  lien  on  the  real
estate;  the lien is superior to all prior existing liens and
encumbrances, except taxes, if, within  180  days  after  the
repair,  demolition,  enclosure,  or removal, the county, the
lien holder of record, or the  intervenor  who  incurred  the
cost and expense shall file a notice of lien for the cost and
expense  incurred in the office of the recorder in the county
in which the real estate is located or in the office  of  the
registrar of titles of the county if the real estate affected
is registered under the Registered Titles (Torrens) Act.
    The  notice must consist of a sworn statement setting out
(1) a description of  the  real  estate  sufficient  for  its
identification, (2) the amount of money representing the cost
and expense incurred, and (3) the date or dates when the cost
and  expense  was  incurred by the county, the lien holder of
record, or the intervenor.  Upon  payment  of  the  cost  and
expense by the owner of or persons interested in the property
after  the  notice  of lien has been filed, the lien shall be
released by the county, the person in whose name the lien has
been filed, or the assignee of the lien, and the release  may
be  filed  of record as in the case of filing notice of lien.
Unless the lien is enforced under subsection  (b),  the  lien
may  be enforced by foreclosure proceedings as in the case of
mortgage foreclosures under Article XV of the Code  of  Civil
Procedure  or  mechanics'  lien  foreclosures.  An  action to
foreclose this lien may be commenced at any  time  after  the
date  of  filing  of  the  notice  of  lien.   The  costs  of
foreclosure  incurred  by  the county, including court costs,
reasonable  attorney's  fees,  advances   to   preserve   the
property,  and other costs related to the enforcement of this
subsection, plus statutory interest, are a lien on  the  real
estate  and  are  recoverable by the county from the owner or
owners of the real estate.
    All liens arising under  this  subsection  (a)  shall  be
assignable.  The  assignee  of  the  lien shall have the same
power to enforce the lien as the assigning party, except that
the lien may not be enforced under subsection (b).
    If the appropriate official of any county determines that
any  dangerous  and  unsafe  building  or   uncompleted   and
abandoned   building   within   its  territory  fulfills  the
requirements for an action by the county under the  Abandoned
Housing  Rehabilitation  Act,  the  county may petition under
that Act in a proceeding brought under this subsection.
    (b)  In any case where a county has obtained a lien under
subsection (a), the county may enforce the  lien  under  this
subsection  (b)  in  the same proceeding in which the lien is
authorized.
    A county desiring to enforce a lien under this subsection
(b) shall petition  the  court  to  retain  jurisdiction  for
foreclosure proceedings under this subsection.  Notice of the
petition shall be served, by certified or registered mail, on
all persons who were served notice under subsection (a).  The
court  shall  conduct a hearing on the petition not less than
15 days after the notice is served.  If the court  determines
that  the  requirements  of  this  subsection  (b)  have been
satisfied,  it  shall   grant   the   petition   and   retain
jurisdiction over the matter until the foreclosure proceeding
is  completed.   The  costs  of  foreclosure  incurred by the
county, including court costs,  reasonable  attorneys'  fees,
advances to preserve the property, and other costs related to
the  enforcement of this subsection, plus statutory interest,
are a lien on the real estate  and  are  recoverable  by  the
county  from  the owner or owners of the real estate.  If the
court denies the petition, the county may enforce the lien in
a separate action as provided in subsection (a).
    All persons designated in Section 15-1501 of the Code  of
Civil   Procedure   as   necessary   parties  in  a  mortgage
foreclosure action shall be joined as parties before issuance
of an order of foreclosure.  Persons  designated  in  Section
15-1501 of the Code of Civil Procedure as permissible parties
may also be joined as parties in the action.
    The  provisions  of  Article  XV  of  the  Code  of Civil
Procedure applicable to mortgage foreclosures shall apply  to
the  foreclosure  of a lien under this subsection (b), except
to the extent that those  provisions  are  inconsistent  with
this  subsection.    For  purposes  of  foreclosures of liens
under  this  subsection,  however,  the   redemption   period
described in subsection (b) of Section 15-1603 of the Code of
Civil  Procedure shall end 60 days after the date of entry of
the order of foreclosure.
    (c)  In addition to any other remedy provided by law, the
county board of any county may petition the circuit court  to
have  property  declared  abandoned under this subsection (c)
if:
         (1)  the property has been tax delinquent for  2  or
    more  years  or  bills for water service for the property
    have been outstanding for 2 or more years;
         (2)  the property is unoccupied by  persons  legally
    in possession; and
         (3)  the  property  contains  a  dangerous or unsafe
    building.
    All persons having an interest of record in the property,
including  tax  purchasers  and  beneficial  owners  of   any
Illinois  land  trust  having title to the property, shall be
named as defendants in the petition and shall be served  with
process.   In  addition,  service  shall be had under Section
2-206 of the Code  of  Civil  Procedure  as  in  other  cases
affecting property.
    The county, however, may proceed under this subsection in
a  proceeding  brought  under  subsection (a).  Notice of the
petition shall be served by certified or registered  mail  on
all persons who were served notice under subsection (a).
    If  the  county  proves  that the conditions described in
this subsection exist and the owner of record of the property
does not enter an appearance in the action, or, if  title  to
the  property  is  held by an Illinois land trust, if neither
the owner of record nor the owner of the beneficial  interest
of  the  trust  enters an appearance, the court shall declare
the property abandoned.
    If that determination is made, notice shall  be  sent  by
certified  or  registered  mail  to  all  persons  having  an
interest  of record in the property, including tax purchasers
and beneficial owners of any Illinois land trust having title
to the property, stating that title to the property  will  be
transferred  to  the  county  unless,  within  30 days of the
notice, the owner of  record  enters  an  appearance  in  the
action,  or unless any other person having an interest in the
property files with the  court  a  request  to  demolish  the
dangerous  or  unsafe building or to put the building in safe
condition.
    If the owner of record enters an appearance in the action
within the 30 day period, the court shall  vacate  its  order
declaring  the  property abandoned.  In that case, the county
may amend its complaint  in  order  to  initiate  proceedings
under subsection (a).
    If  a request to demolish or repair the building is filed
within the 30 day period, the court shall grant permission to
the requesting party to demolish the building within 30  days
or  to  restore the building to safe condition within 60 days
after the request is granted.  An extension  of  that  period
for up to 60 additional days may be given for good cause.  If
more than one person with an interest in the property files a
timely  request, preference shall be given to the person with
the lien or other interest of the highest priority.
    If the requesting party proves  to  the  court  that  the
building  has  been  demolished  or  put  in a safe condition
within the period of time granted by  the  court,  the  court
shall issue a quitclaim judicial deed for the property to the
requesting party, conveying only the interest of the owner of
record,  upon  proof  of  payment  to the county of all costs
incurred  by  the  county  in  connection  with  the  action,
including but not limited to court  costs,  attorney's  fees,
administrative  costs,  the  costs,  if  any, associated with
building enclosure or removal, and  receiver's  certificates.
The  interest in the property so conveyed shall be subject to
all liens and encumbrances on the property.  In addition,  if
the interest is conveyed to a person holding a certificate of
purchase  for  the  property under the Property Tax Code, the
conveyance shall be subject to the rights  of  redemption  of
all  persons entitled to redeem under that Act, including the
original owner of record.
    If no person with an interest in  the  property  files  a
timely  request  or if the requesting party fails to demolish
the building or put the building in safe condition within the
time specified by the court,  the  county  may  petition  the
court  to  issue  a  judicial  deed  for  the property to the
county.  A conveyance  by  judicial  deed  shall  operate  to
extinguish all existing ownership interests in, liens on, and
other interest in the property, including tax liens.
    (d)  Each   county   may   use  the  provisions  of  this
subsection to expedite the removal of certain buildings  that
are  a  continuing  hazard to the community in which they are
located.
    If a residential building is 2 stories or less in  height
as  defined  by  the county's building code, and the official
designated to be in charge of enforcing the county's building
code determines that the building is open and vacant  and  an
immediate and continuing hazard to the community in which the
building is located, then the official shall be authorized to
post  a  notice not less than 2 feet by 2 feet in size on the
front of the building.  The notice shall be dated as  of  the
date  of the posting and shall state that unless the building
is demolished, repaired, or enclosed, and unless any garbage,
debris, and other hazardous, noxious, or unhealthy substances
or materials are removed so that an immediate and  continuing
hazard  to  the community no longer exists, then the building
may be demolished, repaired, or  enclosed,  or  any  garbage,
debris, and other hazardous, noxious, or unhealthy substances
or materials may be removed, by the county.
    Not  later  than  30  days  following  the posting of the
notice, the county shall do both of the following:
         (1)  Cause to be sent,  by  certified  mail,  return
    receipt  requested,  a  notice to all owners of record of
    the property, the beneficial owners of any Illinois  land
    trust  having  title to the property, and all lienholders
    of record in the property,  stating  the  intent  of  the
    county  to  demolish,  repair, or enclose the building or
    remove any garbage, debris, or other hazardous,  noxious,
    or  unhealthy  substances  or materials if that action is
    not taken by the owner or owners.
         (2)  Cause to be published, in a newspaper published
    or  circulated  in  the  county  where  the  building  is
    located, a notice setting forth  (i)  the  permanent  tax
    index  number  and  the  address  of the building, (ii) a
    statement that  the  property  is  open  and  vacant  and
    constitutes  an  immediate  and  continuing hazard to the
    community, and (iii) a statement that the county  intends
    to  demolish,  repair,  or enclose the building or remove
    any garbage, debris,  or  other  hazardous,  noxious,  or
    unhealthy  substances or materials if the owner or owners
    or lienholders of record fail  to  do  so.   This  notice
    shall be published for 3 consecutive days.
    A  person objecting to the proposed actions of the county
board may file his or her objection in an appropriate form in
a court of competent jurisdiction.
    If the building is not demolished, repaired, or enclosed,
or the garbage,  debris,  or  other  hazardous,  noxious,  or
unhealthy  substances or materials are not removed, within 30
days of mailing the notice  to  the  owners  of  record,  the
beneficial  owners of any Illinois land trust having title to
the property, and all lienholders of record in the  property,
or  within  30  days  of  the  last day of publication of the
notice, whichever is later, the county board shall  have  the
power  to  demolish,  repair,  or  enclose the building or to
remove any garbage, debris, or other hazardous,  noxious,  or
unhealthy substances or materials.
    The  county may proceed to demolish, repair, or enclose a
building or remove any garbage, debris, or  other  hazardous,
noxious,  or  unhealthy  substances  or  materials under this
subsection within a 120-day period following the date of  the
mailing  of the notice if the appropriate official determines
that the demolition, repair, enclosure,  or  removal  of  any
garbage,  debris,  or  other hazardous, noxious, or unhealthy
substances or materials is necessary to remedy the  immediate
and  continuing  hazard.   If,  however,  before  the  county
proceeds   with   any  of  the  actions  authorized  by  this
subsection, any  person  has  sought  a  hearing  under  this
subsection  before  a  court  and  has  served  a copy of the
complaint on the chief executive officer of the county,  then
the  county  shall  not  proceed with the demolition, repair,
enclosure, or removal of garbage, debris, or other substances
until the court determines that that action is  necessary  to
remedy  the hazard and issues an order authorizing the county
to do so.
    Following the  demolition,  repair,  or  enclosure  of  a
building,  or  the  removal  of  garbage,  debris,  or  other
hazardous,  noxious,  or  unhealthy  substances  or materials
under this subsection, the county may file a notice  of  lien
against  the  real  estate  for  the  cost of the demolition,
repair, enclosure, or  removal  within  180  days  after  the
repair,  demolition,  enclosure, or removal occurred, for the
cost and expense incurred, in the office of the  recorder  in
the  county  in  which  the  real estate is located or in the
office of the registrar of titles of the county if  the  real
estate  affected  is  registered  under the Registered Titles
(Torrens) Act.  The notice of lien shall consist of  a  sworn
statement setting forth (i) a description of the real estate,
such  as  the  address  or other description of the property,
sufficient for its identification; (ii) the expenses incurred
by the county in undertaking the remedial actions  authorized
under  this  subsection; (iii) the date or dates the expenses
were incurred by the county; (iv) a statement by the official
responsible for enforcing the building code that the building
was  open  and  vacant  and  constituted  an  immediate   and
continuing  hazard  to  the community; (v) a statement by the
official that the required sign was posted on  the  building,
that  notice  was  sent  by  certified  mail to the owners of
record, and that notice was published in accordance with this
subsection; and (vi) a statement as to  when  and  where  the
notice was published.  The lien authorized by this subsection
may  thereafter  be  released  or  enforced  by the county as
provided in subsection (a).
(Source: P.A. 89-585, eff. 1-1-97; revised 8-15-96.)

    (55 ILCS 5/5-1123)
    Sec. 5-1123. 5-1121.  Builder or developer cash bond.
    (a)  A county may not require a cash bond from a  builder
or developer to guarantee completion of a project improvement
when   the   builder   or  developer  has  filed  a  current,
irrevocable  letter  of  credit  with  good  and   sufficient
sureties  with  the  county  clerk  in  an amount equal to or
greater than 110% of the amount of the bid  on  each  project
improvement.   A builder or developer may elect to utilize an
irrevocable  letter  of  credit  to  satisfy  any  cash  bond
requirement established by a county.
    (b)  If a county receives a cash bond from a  builder  or
developer  to  guarantee completion of a project improvement,
the county shall (i) register the bond under the  address  of
the  project and the construction permit number and (ii) give
the builder or developer a receipt for the bond.  The  county
shall  establish and maintain a separate account for all cash
bonds received from  builders  and  developers  to  guarantee
completion of a project improvement.
    (c)  The  county shall refund a cash bond to a builder or
developer within 60  days  after  the  builder  or  developer
notifies  the  county  in  writing  of  the completion of the
project improvement for which  the  bond  was  required.  For
these  purposes,  "completion"  means  that  the  county  has
determined  that  the  project improvement for which the bond
was required is complete or a licensed engineer  or  licensed
architect  has  certified to the builder or developer and the
county that the project improvement has been completed to the
applicable  codes  and  ordinances.  The  county  shall   pay
interest to the builder or developer, beginning 60 days after
the  builder  or  developer notifies the county in writing of
the completion of the project improvement, on  any  bond  not
refunded  to  a  builder  or developer, at the rate of 1% per
month.
    (d)  A home rule county may not require or maintain  cash
bonds  from  builders  or developers in a manner inconsistent
with this Section.  This Section is a denial  and  limitation
under  subsection  (i)  of  Section  6  of Article VII of the
Illinois Constitution on the concurrent exercise  by  a  home
rule county of powers and functions exercised by the State.
(Source: P.A. 89-518, eff. 1-1-97; revised 8-15-96.)

    Section   2-110.    The  County  Care  for  Persons  with
Developmental Disabilities Act is amended by changing Section
13 as follows:

    (55 ILCS 105/13) (from Ch. 91 1/2, par. 213)
    Sec. 13. The Department of  Human  Services  shall  adopt
general  rules  for  the  guidance of any board of directors,
prescribing  reasonable  standards  in  regard  to   program,
facilities  and  services  for residents with a developmental
disability.
    The provisions of the Illinois  Administrative  Procedure
Act  are  hereby  expressly  adopted  and  shall apply to all
administrative rules and procedures of the  Department  under
this  Act,  except  that  in  case  of  conflict  between the
Illinois  Administrative  Procedure  Act  and  this  Act  the
provisions of this Act shall control, and except that Section
5-35 of the Illinois Administrative Procedure Act relating to
procedures for rule-making does not apply to the adoption  of
any rule required by federal law in connection with which the
Department   is   precluded   by   law  from  exercising  any
discretion.
    The  Department  of  Human  Services  may  conduct   such
investigation  as  may  be  necessary to ascertain compliance
with rules adopted pursuant to this Act.
    If any such board of directors fails to comply with  such
rules,  the  Department  of  Human  Services  shall  withhold
distribution  of  any  State  grant in aid until such time as
such board complies with such rules.
(Source: P.A. 88-45; 88-380;  88-388;  89-507,  eff.  7-1-97;
89-585, eff. 1-1-97; revised 9-9-96.)

    Section 2-115.  The Illinois Municipal Code is amended by
changing  Sections  7-1-1  and  11-15.1-2  and setting forth,
changing,  and  renumbering  multiple  versions  of   Section
10-4-2.5 as follows:

    (65 ILCS 5/7-1-1) (from Ch. 24, par. 7-1-1)
    Sec.  7-1-1.  Annexation  of  contiguous  territory.  Any
territory  that  is  not  within  the corporate limits of any
municipality but is  contiguous  to  a  municipality  may  be
annexed to the municipality as provided in this Article.  For
the purposes of this Article any territory to be annexed to a
municipality  shall  be  considered  to  be contiguous to the
municipality notwithstanding that the territory is  separated
from  the  municipality  by  a  railroad  or  public  utility
right-of-way,  but  upon  annexation the area included within
that right-of-way shall not be considered to  be  annexed  to
the municipality.
    Except in counties with a population of more than 500,000
but less than 3,000,000, territory which is not contiguous to
a  municipality  but  is separated therefrom only by a forest
preserve district may be annexed to the municipality pursuant
to Sections 7-1-7 or 7-1-8, but the territory included within
such forest preserve district shall not  be  annexed  to  the
municipality  nor  shall the territory of the forest preserve
district be subject to rights-of-way for access  or  services
between the parts of the municipality separated by the forest
preserve  district  without the consent of the governing body
of the forest preserve district.
    In counties that are contiguous to the Mississippi  River
with  populations of more than 200,000 but less than 255,000,
a municipality that is partially located in territory that is
wholly surrounded by  the  Mississippi  River  and  a  canal,
connected  at  both ends to the Mississippi River and located
on property owned by the United States of America, may  annex
noncontiguous  territory  in  the  surrounded territory under
Sections  7-1-7,  7-1-8,  or  7-1-9  if  that  territory   is
separated  from  the  municipality  by  property owned by the
United States of America, but that federal property shall not
be annexed without the consent of the federal government.
    When any land proposed to be annexed is part of any  Fire
Protection District or of any Public Library District and the
annexing  municipality  provides  fire protection or a public
library, as the case may be, the Trustees  of  each  District
shall  be notified in writing by certified or registered mail
before any  court  hearing  or  other  action  is  taken  for
annexation.   The  notice shall be served 10 days in advance.
An affidavit that service of notice has been had as  provided
by  this Section must be filed with the clerk of the court in
which the annexation  proceedings  are  pending  or  will  be
instituted  or,  when no court proceedings are involved, with
the recorder for the county where the land is  situated.   No
annexation  of  that  land is effective unless service is had
and the affidavit filed as provided in this Section.
    The new boundary shall extend to  the  far  side  of  any
adjacent  highway  and  shall  include  all  of every highway
within the area annexed.  These highways shall be  considered
to   be  annexed  even  though  not  included  in  the  legal
description set forth in the petition for  annexation.   When
any  land  proposed  to be annexed includes any highway under
the jurisdiction of any township, the  Township  Commissioner
of  Highways and the Board of Town Trustees shall be notified
in writing by certified or registered mail before  any  court
hearing or other action is taken for annexation. In the event
that a municipality fails to notify the Township Commissioner
of  Highways and the Board of Town Trustees of the annexation
of an  area  within  the  township,  the  municipality  shall
reimburse  that  township for any loss or liability caused by
the failure to give notice. If any municipality  has  annexed
any area before October 1, 1975, and the legal description in
the  petition  for  annexation  did  not  include  the entire
adjacent highway, any such annexation shall be valid and  any
highway  adjacent  to the area annexed shall be considered to
be annexed notwithstanding the failure  of  the  petition  to
annex  to  include  the  description  of  the entire adjacent
highway.
    Any  annexation,   disconnection   and   annexation,   or
disconnection  under  this  Article  of any territory must be
reported by certified or registered  mail  by  the  corporate
authority  initiating  the action to the election authorities
having jurisdiction in the  territory  and  the  post  office
branches   serving  the  territory  within  30  days  of  the
annexation, disconnection and annexation, or disconnection.
    Failure  to  give  notice  to   the   required   election
authorities  or  post office branches will not invalidate the
annexation or disconnection.  For purposes  of  this  Section
"election authorities" means the county clerk where the clerk
acts  as  the clerk of elections or the clerk of the election
commission having jurisdiction.
    No   annexation,   disconnection   and   annexation,   or
disconnection under this Article of territory having electors
residing therein made (1) before any primary election  to  be
held  within  the municipality affected thereby and after the
time for filing petitions as a candidate  for  nomination  to
any office to be chosen at the primary election or (2) within
60  days  before  any  general election to be held within the
municipality shall be effective until the day after the  date
of the primary or general election, as the case may be.
    For  the  purpose  of  this  Section,  a  toll highway or
connection between parcels via an overpass bridge over a toll
highway shall not be considered a deterrent to the definition
of contiguous territory.
    When territory is proposed to be annexed by  court  order
under  this Article, the corporate authorities or petitioners
initiating the action shall notify each person who pays  real
estate  taxes  on  property  within that territory unless the
person is a  petitioner.   The  notice  shall  be  served  by
certified  or  registered  mail, return receipt requested, at
least 20 days before a court hearing or other  court  action.
If  the  person who pays real estate taxes on the property is
not the owner of record, then  the  payor  shall  notify  the
owner of record of the proposed annexation.
(Source: P.A.  89-388,  eff.  1-1-96;  89-502,  eff. 6-28-96;
89-666, eff. 8-14-96; revised 8-19-96.)

    (65 ILCS 5/10-4-2.2)
    Sec. 10-4-2.2. 10-4-2.5.   Post-parturition  care.  If  a
municipality,  including  a  home  rule  municipality,  is  a
self-insurer  for  purposes  of  providing  health  insurance
coverage  for  its  employees,  the  coverage  shall  include
coverage  for  the post-parturition care benefits required to
be covered by a policy of accident and health insurance under
Section 356s  356r  of  the  Illinois  Insurance  Code.   The
requirement that post-parturition care be covered as provided
in  this  Section  is  an exclusive power and function of the
State and is a  denial  and  limitation  under  Article  VII,
Section  6,  subsection  (h) of the Illinois Constitution.  A
home rule municipality to which  this  Section  applies  must
comply with every provision of this Section.
(Source: P.A. 89-513, eff. 9-15-96; revised 7-24-96.)

    (65 ILCS 5/10-4-2.5)
    Sec.   10-4-2.5.  Woman's   health   care  provider.  The
corporate authorities of all municipalities  are  subject  to
the  provisions  of  Section  356r  of the Illinois Insurance
Code.  The requirement under this Section  that  health  care
benefits  provided by municipalities comply with Section 356r
of the Illinois Insurance Code  is  an  exclusive  power  and
function  of the State and is a denial and limitation of home
rule  municipality  powers  under  Article  VII,  Section  6,
subsection (h) of the Illinois Constitution.
(Source: P.A. 89-514, eff. 7-17-96; revised 7-24-96.)

    (65 ILCS 5/11-15.1-2) (from Ch. 24, par. 11-15.1-2)
    Sec. 11-15.1-2. Any such agreement may  provide  for  the
following  as  it relates to the land which is the subject of
the agreement:
    (a)  The   annexation   of   such   territory   to    the
municipality, subject to the provisions of Article 7.
    (b)  The   continuation   in  effect,  or  amendment,  or
continuation in effect as amended, of any ordinance  relating
to subdivision controls, zoning, official plan, and building,
housing and related restrictions; provided, however, that any
public hearing required by law to be held before the adoption
of  any  ordinance amendment provided in such agreement shall
be held prior to the execution  of  the  agreement,  and  all
ordinance  amendments  provided  in  such  agreement shall be
enacted according to law.
    (c)  A limitation upon increases in permit fees  required
by the municipality.
    (d)  Contributions  of either land or monies, or both, to
any municipality and  to  other  units  of  local  government
having  jurisdiction  over  all  or part of land  that is the
subject matter of any annexation agreement entered into under
the provisions of this Section shall  be  deemed  valid  when
made  and  shall  survive  the  expiration  date  of any such
annexation agreement with respect to all or any part  of  the
land that was the subject matter of the annexation agreement.
    (e)  The granting of utility franchises for such land.
    (e-5)  The abatement of property taxes.
    (f)  Any   other   matter   not   inconsistent  with  the
provisions of this Code, nor forbidden by law.
    Any action taken by the corporate authorities during  the
period  such  agreement is in effect, which, if it applied to
the land which is the subject of the agreement,  would  be  a
breach  of  such  agreement,  shall  not  apply  to such land
without an amendment of such agreement.
    After the effective term of any annexation agreement  and
unless otherwise provided for within the annexation agreement
or  an  amendment to the annexation agreement, the provisions
of any ordinance relating to the zoning of the land  that  is
provided  for  within  the  agreement  or an amendment to the
agreement,  shall  remain  in  effect  unless   modified   in
accordance   with  law.   This  amendatory  Act  of  1995  is
declarative of existing law and shall apply to all annexation
agreements.
(Source: P.A.  89-432,  eff.  6-1-96;  89-537,  eff.  1-1-97;
revised 8-15-96.)

    Section  2-120.   The  Fire  Protection  District  Act is
amended by changing Section 4 as follows:

    (70 ILCS 705/4) (from Ch. 127 1/2, par. 24)
    Sec. 4.  Trustees; conflict of interest; violations.
    (a)  A board of trustees consisting of 3 members for  the
government  and control of the affairs and business of a fire
protection district incorporated  under  this  Act  shall  be
created in the following manner:
         (1)  If  the  district  lies  wholly within a single
    township  but  does  not  also  lie   wholly   within   a
    municipality,  the  board  of  trustees  of that township
    shall appoint  the  trustees  for  the  district  but  no
    township   official  who  is  eligible  to  vote  on  the
    appointment shall be eligible for such appointment.
         (2)  If the district is wholly  contained  within  a
    municipality,  the  governing  body  of  the municipality
    shall appoint the trustees for the district.
         (3)  If the district is wholly  contained  within  a
    single  county  but  does  not lie wholly within a single
    township or a single municipality, the trustees  for  the
    district  shall  be appointed by the presiding officer of
    the county board with  the  advice  and  consent  of  the
    county  board;  except that in counties with a population
    in excess of 3,000,000, 2 trustees for the district shall
    be appointed by the board of  trustees  of  the  township
    that  has  the greatest population within the district as
    determined by the last  preceding  federal  census.  That
    board  of  trustees  shall  also  appoint  the  remaining
    trustee  if  no  other township comprises at least 10% of
    the population  of  the  district.   If  only  one  other
    township  comprises at least 10% of the population of the
    district, then the board of  trustees  of  that  district
    shall  appoint the remaining trustee.  If 2 or more other
    townships each comprise at least 10% of the population of
    the district,  then  the  boards  of  trustees  of  those
    townships  shall  jointly  appoint the remaining trustee.
    No township official who  is  eligible  to  vote  on  the
    appointment shall be eligible for the appointment.
         (4)  If  the  district  is  located in more than one
    county, the  number of trustees who are  residents  of  a
    county  shall be in proportion, as nearly as practicable,
    to the number of residents of the district who reside  in
    that  county  in  relation to the total population of the
    district.
              (A)  In counties with a population of 3,000,000
         or more, the trustees shall be appointed as provided
         in paragraphs (1), (2), and (3) of subsection (a) of
         this Section.  For purposes of this item (A) and  in
         item (B), "district" means that portion of the total
         fire  protection district lying within a county with
         a population in excess of 3,000,000.
              (B)  In counties with a population of less than
         3,000,000, the trustees for the  district  shall  be
         appointed  by  the  presiding  officer of the county
         board with the advice  and  consent  of  the  county
         board.
    Upon  the  expiration  of the term of a trustee who is in
office on October 1, 1975, the successor shall be a  resident
of  whichever  county  is  entitled to such representation in
order to bring about the proportional representation required
herein, and he shall be appointed by the county board of that
county, or in the case of a home rule county  as  defined  by
Article VII, Section 6 of the Constitution of 1970, the chief
executive officer of that county, with the advice and consent
of the county board.
    Thereafter, each trustee shall be succeeded by a resident
of  the  same  county  who  shall  be  appointed  by the same
appointing  authority;  however,  the   provisions   of   the
preceding  paragraph  shall  apply  to the appointment of the
successor to each trustee who is in office at the time of the
publication of each decennial Federal census of population.
    Within 60 days after the adoption of this Act as provided
in Section 1, or within 60 days  after  the  adoption  of  an
ordinance  pursuant  to  subsection  (c) of Section 4.01, the
appropriate appointing authority shall appoint 3 trustees who
are electors in the district, not more than one of whom shall
be from any one city or village or  incorporated  town  in  a
district unless such city or village or incorporated town has
more  than 50% of the population in the district according to
last preceding Federal census.    Such  trustees  shall  hold
their  offices  thenceforward and for one, 2 and 3 years from
the first Monday of May  next  after  their  appointment  and
until  their  successors have been selected and qualified and
thereafter, unless  the  district  has  determined  to  elect
trustees  as  provided in Section 4a, on or before the second
Monday in April of each year the appointing  authority  shall
appoint   one  trustee  whose  term  shall  be  for  3  years
commencing on the first Monday in May  next  after  they  are
respectively  appointed.   The  length  of  term of the first
trustees shall be determined by lot at their first meeting.
    Each trustee shall, before entering on the duties of  his
office,  enter  into bond with security to be approved by the
appointing  authority  in  such  sum  as  the  authority  may
determine.
    A majority of the board of trustees  shall  constitute  a
quorum, but a smaller number may adjourn from day to day.  No
trustee  or  employee  of  such district shall be directly or
indirectly interested financially in  any  contract  work  or
business  or  the  sale of any article, the expense, price or
consideration of which is paid by the district;  nor  in  the
purchase  of  any real estate or other property, belonging to
the district, or which shall be sold for taxes or assessments
or by virtue of legal process at the suit  of  the  district.
Nothing   in   this  Section  prohibits  the  appointment  or
selection of any person or trustee  or  employee  whose  only
interest  in  the  district  is as an owner of real estate in
such fire protection  district  or  of  contributing  to  the
payment  of taxes levied by the district.  The trustees shall
have the power to provide and adopt a corporate seal for  the
district.
    (b)  However,   any   trustee   may   provide  materials,
merchandise, property, services or labor, if:
         A.  the   contract   is   with   a   person,   firm,
    partnership,  association,  corporation  or   cooperative
    association  in  which  such  interested trustee has less
    than a 7 1/2% share in the ownership; and
         B.  such interested trustee publicly  discloses  the
    nature  and  extent  of  his  interest prior to or during
    deliberations  concerning  the  proposed  award  of   the
    contract; and
         C.  such  interested trustee abstains from voting on
    the award of the contract, though he shall be  considered
    present for the purposes of establishing a quorum; and
         D.  such  contract is approved by a majority vote of
    those trustees presently holding office; and
         E.  the contract is awarded after sealed bids to the
    lowest responsible bidder if the amount of  the  contract
    exceeds  $1500,  but  the contract may be awarded without
    bidding if the amount is less than $1500; and
         F.  the award of the contract would  not  cause  the
    aggregate  amount of all such contracts so awarded to the
    same person, firm, association, partnership, corporation,
    or cooperative association in the  same  fiscal  year  to
    exceed $25,000.
    (c)  In  addition  to the above exemption, any trustee or
employee  may  provide  materials,   merchandise,   property,
services or labor if:
         A.  the  award  of  the  contract  is  approved by a
    majority vote of  the  board  of  trustees  of  the  fire
    protection  district  provided  that  any such interested
    member shall abstain from voting; and
         B.  the amount  of  the  contract  does  not  exceed
    $1000; and
         C.  the  award  of  the contract would not cause the
    aggregate amount of all such contracts so awarded to  the
    same person, firm, association, partnership, corporation,
    or  cooperative  association  in  the same fiscal year to
    exceed $2000; and
         D.  such interested member  publicly  discloses  the
    nature  and  extent  of  his  interest prior to or during
    deliberations  concerning  the  proposed  award  of   the
    contract; and
         E.  such  interested  member abstains from voting on
    the award of the contract, though he shall be  considered
    present for the purposes of establishing a quorum.
    (d)  A  contract  for  the  procurement of public utility
services by a district with a public utility company  is  not
barred by this Section by one or more members of the board of
trustees  being  an officer or employee of the public utility
company or holding an ownership interest if no  more  than  7
1/2%  in  the public utility company, or holding an ownership
interest of any size if the fire protection  district  has  a
population  of less than 7,500 and the public utility's rates
are approved by the Illinois Commerce Commission.  An elected
or appointed member of the board of trustees having  such  an
interest  shall  be  deemed not to have a prohibited interest
under this Section.
    (e)  Any officer or employee who violates this Section is
guilty of a Class 4 felony and in addition thereto any office
held by such person so  convicted  shall  become  vacant  and
shall be so declared as part of the judgment of the court.
    (f)  Nothing  contained  in  this  Section, including the
restrictions set forth in subsections (b), (c) and (d), shall
preclude a contract of deposit  of  monies,  loans  or  other
financial services by a fire protection district with a local
bank  or  local  savings  and loan association, regardless of
whether a member or members of the board of trustees  of  the
fire  protection  district  are  interested  in  such bank or
savings and loan association as an officer or employee or  as
a holder of less than 7 1/2% of the total ownership interest.
A  member  or  members  holding  such  an  interest in such a
contract shall not be  deemed  to  be  holding  a  prohibited
interest for purposes of this Act.  Such interested member or
members  of  the  board  of  trustees must publicly state the
nature and extent  of  their  interest  during  deliberations
concerning  the  proposed award of such a contract, but shall
not participate in any further deliberations  concerning  the
proposed  award.  Such interested member or members shall not
vote on  such  a  proposed  award.   Any  member  or  members
abstaining  from  participation  in  deliberations and voting
under this Section may be considered present for purposes  of
establishing a quorum. Award of such a contract shall require
approval  by  a  majority  vote  of  those  members presently
holding office. Consideration and award of any such  contract
in  which a member or members are interested may only be made
at a regularly scheduled  public  meeting  of  the  board  of
trustees of the fire protection district.
    (g)  Beginning  on  the effective date of this amendatory
Act of 1990 and ending 3 years after the  effective  date  of
this amendatory Act of 1990, in the case of a fire protection
district  board  of trustees in a county with a population of
more than 400,000 but less than  450,000,  according  to  the
1980  general census, created under subsection (a), paragraph
(3) of this Section a petition for the redress of a  trustee,
charging  the  trustee  with  palpable  omission  of  duty or
nonfeasance in office, signed by not  less  than  5%  of  the
electors  of  the  district  may be presented to the township
supervisor or the presiding officer of the county  board,  as
appropriate.  Upon  receipt  of  the  petition,  the township
supervisor or presiding  officer  of  the  county  board,  as
appropriate,  shall  preside  over a hearing on the matter of
the requested redress.  The hearing shall be  held  not  less
than  14 nor more than 30 days after receipt of the petition.
In the case of a fire protection district  trustee  appointed
by  the  presiding officer of the county board, the presiding
officer shall appoint at least 4 but not more than 8  members
of  the  county  board,  a majority of whom shall reside in a
county board district in which the fire  protection  district
is  wholly  or  partially  located,  to  serve as the hearing
panel.  In the case of a  fire  protection  district  trustee
appointed  by  the  board  of  town  trustees,  the  township
supervisor  and  2  other  town  trustees  appointed  by  the
supervisor  shall serve as the hearing panel.  Within 30 days
after the hearing, the panel  shall issue a statement of  its
findings  concerning  the  charges against the trustee, based
upon the evidence presented at the hearing, and may  make  to
the  fire  protection  district  any  recommendations  deemed
appropriate.
(Source:  P.A.  89-482,  eff.  1-1-97;  89-588,  eff. 1-1-97;
revised 8-14-96.)

    Section 2-125.  The Park  District  Code  is  amended  by
changing Section 10-7 as follows:

    (70 ILCS 1205/10-7) (from Ch. 105, par. 10-7)
    Sec. 10-7.  Sale, lease, or exchange of realty.
    (a)  Any park district owning and holding any real estate
is  authorized to sell or lease such property to another unit
of Illinois State or local government, or to lease  upon  the
terms and at the price that the board determines for a period
not  to  exceed  99  years  to any not for profit corporation
organized under the laws of this State, in  either  case  for
public use, and provided that the grantee or lessee covenants
to  hold  and  maintain  such  property  for  public  park or
recreational purposes or such  park  district  obtains  other
real property of substantially the same size or larger and of
substantially  the  same  or  greater  suitability  for  park
purposes without additional cost to such district.
    (b)  Any  park district owning or holding any real estate
is authorized to convey such property  to  a  nongovernmental
entity  in  exchange for other real property of substantially
equal or greater value as determined by 2 appraisals  of  the
property and of substantially the same or greater suitability
for park purposes without additional cost to such district.
    Prior  to such exchange with a nongovernmental entity the
park board shall hold a public meeting in order  to  consider
the  proposed  conveyance.   Notice  of such meeting shall be
published not less than  three  times  (the  first  and  last
publication being not less than 10 days apart) in a newspaper
of general circulation within the park district.  If there is
no  such  newspaper,  then such notice shall be posted in not
less than 3 public places in  said  park  district  and  such
notice  shall  not  become effective until 10 days after said
publication or posting.
    (c)  Notwithstanding any other  provision  of  this  Act,
this  subsection  (c)  shall apply only to any park districts
that  serve  district  which  serves   territory   within   a
municipality  having  of  more  than  40,000  inhabitants and
within a county having of more than 260,000  inhabitants  and
bordering  that  borders  the  Mississippi  River.   Any park
district owning or holding real estate is authorized to  sell
that  property  to  any  not-for-profit corporation organized
under the laws of this State  upon  the  condition  that  the
corporation uses the property for public park or recreational
programs  for  youth.  The park district shall have the right
of re-entry for  breach  of  condition  subsequent.   If  the
corporation  stops using the property for these purposes, the
property shall revert back to ownership of the park district.
Any temporary suspension of use caused by the construction of
improvements on the property for public park or  recreational
programs for youth is not a breach of condition subsequent.
    Prior  to  the  sale  of the property to a not-for-profit
corporation, the park board shall hold a  public  meeting  to
consider  the  proposed sale.  Notice of the meeting shall be
published  not  less  than  3  times  (the  first  and   last
publication being not less than 10 days apart) in a newspaper
of general circulation within the park district.  If there is
no  such  newspaper,  then  the notice shall be posted in not
less than 3 public places in the park district.   The  notice
shall  be  published  or  posted  at least 10 days before the
meeting.  A resolution to approve the sale of the property to
a not-for-profit corporation requires adoption by a  majority
of the park board.
    (d)  Real  estate,  not subject to such covenant or which
has not been  conveyed  and  replaced  as  provided  in  this
Section,  may  be conveyed in the manner provided by Sections
10-7a to 10-7d hereof, inclusive.
    (e)  In addition to any  other  power  provided  in  this
Section, any park district owning or holding real estate that
the  board  deems  is  not  required for park or recreational
purposes may lease such real  estate  to  any  individual  or
entity and may collect rents therefrom.  Such lease shall not
exceed 2 and one-half times the term of years provided for in
Section 8-15 governing installment purchase contracts.
(Source:  P.A.  89-458,  eff.  5-24-96;  89-509, eff. 7-5-96;
revised 8-23-96.)

    Section 2-130.  The Sanitary  District  Act  of  1917  is
amended by changing Section 4 as follows:

    (70 ILCS 2405/4) (from Ch. 42, par. 303)
    Sec.  4.   The  trustees  shall  constitute  a  board  of
trustees  for  the  district.  The  board  of trustees is the
corporate authority of  such  sanitary  district,  and  shall
exercise  all  the  powers  and  manage  and  control all the
affairs and property of the district. The board  of  trustees
immediately  after  their  appointment  and  at  their  first
meeting  in  May  of each year thereafter, shall elect one of
their  number  as  president,  one   of   their   number   as
vice-president,  and  from  or  outside of their membership a
clerk  and  an  assistant  clerk.  In  case  of  the   death,
resignation,  absence  from the State, or other disability of
the president, the  powers,  duties  and  emoluments  of  the
office    of   the   president   shall   devolve   upon   the
vice-president, until such disability is removed or  until  a
successor  to  the  president  is appointed and chosen in the
manner  provided  in  this  Act.  The  board  may  select   a
treasurer,  engineer  and  attorney  for  the district, and a
board of local improvements consisting of 5  members  in  any
sanitary  district  which includes one or more municipalities
with a population  of  over  90,000  but  less  than  500,000
according to the most recent Federal census and consisting of
3  members in any other district, all of whom may be trustees
or other citizens of the sanitary  district.  The  board  may
appoint such other officers and hire such employees to manage
and  control  the  operations  of  the  district  as it deems
necessary; provided, however, that the board shall not employ
an individual as a wastewater operator whose  Certificate  of
Technical  Competency  is  suspended  or  revoked under rules
adopted by the Pollution Control  Board  under  item  (4)  of
subsection  (a) of Section 13 of the Environmental Protection
Act.  The board may appoint a  chief  administrative  officer
for  a  term  not to exceed 4 years subject to removal by the
board for cause.  Appointment  of  the  chief  administrative
officer may be renewed as often as the board deems necessary.
All  other  persons  selected  by  the board shall hold their
respective offices during the pleasure of the board, and  all
persons  selected by the board shall give such bond as may be
required by the board. The board may prescribe the duties and
fix the compensation of all the officers and employees of the
sanitary  district.  However,  no  member  of  the  board  of
trustees shall receive more than $6,000 per year.
    The  board  of  trustees  has  full  power  to  pass  all
necessary ordinances, rules and regulations  for  the  proper
management  and  conduct of the business of the board and the
corporation, and for carrying into  effect  the  objects  for
which  the sanitary district was formed.  Such ordinances may
provide for a fine for each offense of not less than $100  or
more  than  $1,000.  Each day's continuance of such violation
shall be a separate offense.  Fines pursuant to this  Section
are  recoverable  by the sanitary district in a civil action.
The sanitary district is authorized to apply to  the  circuit
court  for injunctive relief or mandamus when, in the opinion
of the chief administrative officer, such relief is necessary
to protect the sewerage system of the sanitary district.
(Source: P.A. 89-143, eff.  7-14-95;  89-502,  eff.  6-28-96;
revised 8-19-96.)

    Section  2-135.   The  School Code is amended by changing
Sections 10-21.4a, 10-22.5a, 10-22.6, 10-22.20, 13A-8, 13A-9,
18-8, 24-2, and 34-2.3 and by setting  forth,  changing,  and
renumbering multiple versions of Section 10-22.3d as follows:

    (105 ILCS 5/10-21.4a) (from Ch. 122, par. 10-21.4a)
    Sec.   10-21.4a.    Principals   -   Duties.   To  employ
principals  who  hold  valid  supervisory  or  administrative
certificates who shall supervise the operation of  attendance
centers  as  the  board  shall  determine  necessary.  In  an
attendance  center  having  fewer  than  4  teachers,  a head
teacher who does not qualify as a principal may  be  assigned
in the place of a principal.
    The     principal     shall     assume     administrative
responsibilities  and  instructional  leadership,  under  the
supervision  of  the  superintendent,  and in accordance with
reasonable rules  and  regulations  of  the  board,  for  the
planning, operation and evaluation of the educational program
of  the  attendance  area  to  which  he  or she is assigned.
However, in  districts  under  a  Financial  Oversight  Panel
pursuant  to Section 1A-8 for violating a financial plan, the
duties and responsibilities of principals in relation to  the
financial  and  business  operations of the district shall be
approved by the Panel. In the  event  the  Board  refuses  or
fails  to  follow  a  directive or comply with an information
request of the Panel, the performance of those  duties  shall
be subject to the direction of the Panel.
    School   boards   shall   specify  in  their  formal  job
description  for  principals  that   his   or   her   primary
responsibility  is  in  the  improvement  of  instruction.  A
majority of the time spent by a principal shall be  spent  on
curriculum  and  staff  development  through  both formal and
informal   activities,   establishing    clear    lines    of
communication   regarding   school   goals,  accomplishments,
practices and policies with parents and teachers.
    Unless residency within a  school  district  is  made  an
express  condition  of  a  person's  employment  or continued
employment as a principal of that school district at the time
of the person's initial employment as  a  principal  of  that
district,  residency  within  that school district may not at
any time thereafter be made  a  condition  of  that  person's
employment  or  continued  employment  as  a principal of the
district, without regard  to  whether  the  person's  initial
employment  as  a  principal  of the district began before or
begins on or after the effective date of this amendatory  Act
of 1996 and without regard to whether that person's residency
within or outside of the district began or was changed before
or  begins or changes on or after that effective date.  In no
event shall residency within a school district be  considered
in  determining  the  compensation  of  a  principal  or  the
assignment or transfer of a principal to an attendance center
of the district.
    School  boards  shall  ensure  that  their principals are
evaluated on their instructional leadership ability and their
ability  to  maintain  a  positive  education  and   learning
climate.
    It  shall  also be the responsibility of the principal to
utilize resources of proper law enforcement agencies when the
safety and welfare of students and teachers are threatened by
illegal use of drugs and alcohol.
    The  principal  shall  submit  recommendations   to   the
superintendent   concerning   the   appointment,   retention,
promotion  and  assignment  of  all personnel assigned to the
attendance center.
    If a principal is absent due to extended illness or leave
of absence, an assistant principal may be assigned as  acting
principal for a period not to exceed 60 school days.
(Source:  P.A.  89-572,  eff.  7-30-96;  89-622, eff. 8-9-96;
revised 9-10-96.)

    (105 ILCS 5/10-22.3d)
    Sec. 10-22.3d.  Woman's health care  provider.  Insurance
protection  and  benefits  for  employees  are subject to the
provisions of Section 356r of the Illinois Insurance Code.
(Source: P.A. 89-514, eff. 7-17-96; revised 7-24-96.)

    (105 ILCS 5/10-22.3e)
    Sec.   10-22.3e.   10-22.3d.    Post-parturition    care.
Insurance protection and benefits for employees shall provide
the  post-parturition care benefits required to be covered by
a policy of accident and health insurance under Section  356s
356r of the Illinois Insurance Code.
(Source: P.A. 89-513, eff. 9-15-96; revised 7-24-96.)

    (105 ILCS 5/10-22.5a) (from Ch. 122, par. 10-22.5a)
    Sec.  10-22.5a.  Attendance  by foreign exchange students
and certain nonresident pupils.
    (a)  To  enter  into  written  agreements  with  cultural
exchange  organizations,  or   with   nationally   recognized
eleemosynary  institutions  that  promote  excellence  in the
arts, mathematics, or science.  The  written  agreements  may
provide  for  tuition  free  attendance at the local district
school by foreign exchange students, or by nonresident pupils
of eleemosynary institutions. The local board  of  education,
as  part  of  the  agreement,  may  require that the cultural
exchange program or  the  eleemosynary  institutions  provide
services  to  the  district  in  exchange  for  the waiver of
nonresident tuition.
    To enter into written  agreements  with  adjacent  school
districts to provide for tuition free attendance by a student
of  the  adjacent  district  when requested for the student's
health and safety by the student or parent and both districts
determine that the student's health or safety will be  served
by  such attendance. Districts shall not be required to enter
into such  agreements  nor  be  required  to  alter  existing
transportation   services  due  to  the  attendance  of  such
non-resident pupils.
    (b)  Nonresident pupils  and  foreign  exchange  students
attending   school   on  a  tuition  free  basis  under  such
agreements may be counted for the purposes of determining the
apportionment of State aid provided  under  Section  18-8  of
this Act. Provided that any cultural exchange organization or
eleemosynary  institutions     wishing  to  participate in an
agreement authorized under this Section must be  approved  in
writing  by  the State Board of Education. The State Board of
Education may establish reasonable  rules  to  determine  the
eligibility    of    cultural   exchange   organizations   or
eleemosynary   institutions   wishing   to   participate   in
agreements authorized under this Section. No organization  or
institution participating in agreements authorized under this
Section  may  exclude any individual for participation in its
program on account of the person's race, color, sex, religion
or nationality.
(Source: P.A.  89-480,  eff.  1-1-97;  89-622,  eff.  8-9-96;
revised 8-19-96.)

    (105 ILCS 5/10-22.6) (from Ch. 122, par. 10-22.6)
    Sec.  10-22.6.  Suspension or expulsion of pupils; school
searches.
    (a)  To expel pupils  guilty  of  gross  disobedience  or
misconduct,  and  no  action  shall lie against them for such
expulsion. Expulsion shall take place only after the  parents
have  been  requested to appear at a meeting of the board, or
with a hearing officer appointed  by  it,  to  discuss  their
child's behavior. Such request shall be made by registered or
certified mail and shall state the time, place and purpose of
the meeting. The board, or a hearing officer appointed by it,
at such meeting shall state the reasons for dismissal and the
date  on  which  the  expulsion  is to become effective. If a
hearing officer is appointed by the board he shall report  to
the  board  a  written  summary  of the evidence heard at the
meeting and the board may take  such  action  thereon  as  it
finds appropriate.
    (b)  To   suspend  or  by  regulation  to  authorize  the
superintendent of the district or  the  principal,  assistant
principal,  or  dean  of  students  of  any school to suspend
pupils guilty of gross  disobedience  or  misconduct,  or  to
suspend  pupils guilty of gross disobedience or misconduct on
the school bus from riding the  school  bus,  and  no  action
shall  lie against them for such suspension. The board may by
regulation authorize the superintendent of  the  district  or
the  principal,  assistant  principal, or dean of students of
any school to suspend pupils guilty of such acts for a period
not to exceed 10 school days. If a pupil is suspended due  to
gross  disobedience  or misconduct on a school bus, the board
may suspend the pupil in excess of 10 school days for  safety
reasons.  Any suspension shall be reported immediately to the
parents or guardian of such pupil along with a full statement
of  the  reasons  for  such  suspension and a notice of their
right to a review, a copy of which  shall  be  given  to  the
school  board.  Upon  request  of the parents or guardian the
school board or a  hearing  officer  appointed  by  it  shall
review  such  action  of  the  superintendent  or  principal,
assistant principal, or dean of students.  At such review the
parents  or  guardian of the pupil may appear and discuss the
suspension with the  board  or  its  hearing  officer.  If  a
hearing  officer is appointed by the board he shall report to
the board a written summary of  the  evidence  heard  at  the
meeting.  After  its  hearing  or upon receipt of the written
report of its hearing officer, the board may take such action
as it finds appropriate.
    (c)  The Department of Human Services shall be invited to
send a representative to  consult  with  the  board  at  such
meeting whenever there is evidence that mental illness may be
the cause for expulsion or suspension.
    (d)  The  board may expel a student for a definite period
of time not to exceed 2 calendar years, as  determined  on  a
case  by  case  basis.    A student who is determined to have
brought a weapon to school, any school-sponsored activity  or
event,  or  any  activity  or  event which bears a reasonable
relationship to school shall be expelled for a period of  not
less  than  one year, except that the expulsion period may be
modified by the board on a case by case basis.  For  purposes
of  this  Section,  the  term "weapon" means possession, use,
control or transfer of any object which may be used to  cause
bodily harm, including but not limited to a weapon as defined
by  Section  921  of Title 18, United States Code, firearm as
defined in Section 1.1 of the Firearm  Owners  Identification
Act, use of weapon as defined in Section 24-1 of the Criminal
Code,   knives,   guns,  firearms,  rifles,  shotguns,  brass
knuckles, billy clubs, or "look-alikes" thereof.  Such  items
as baseball bats, pipes, bottles, locks, sticks, pencils, and
pens  may  be  considered  weapons if used or attempted to be
used to cause bodily harm.  Expulsion or suspension shall  be
construed in a manner consistent with the Federal Individuals
with  Disabilities Education Act. A student who is subject to
suspension or expulsion as provided in this  Section  may  be
eligible  for  a transfer to an alternative school program in
accordance  with  Article  13A  of  the  School  Code.    The
provisions  of  this  subsection  (d)  apply  in  all  school
districts,  including special charter districts and districts
organized under Article 34.
    (e)  To maintain  order  and  security  in  the  schools,
school  authorities  may  inspect and search places and areas
such as  lockers,  desks,  parking  lots,  and  other  school
property  and equipment owned or controlled by the school, as
well as personal effects left in those places  and  areas  by
students,  without  notice  to or the consent of the student,
and without a search warrant.  As a matter of public  policy,
the  General  Assembly finds that students have no reasonable
expectation of privacy in these places and areas or in  their
personal  effects  left  in  these  places and areas.  School
authorities may request the  assistance  of  law  enforcement
officials  for  the  purpose  of  conducting  inspections and
searches of lockers, desks, parking lots,  and  other  school
property  and equipment owned or controlled by the school for
illegal  drugs,  weapons,  or  other  illegal  or   dangerous
substances or materials, including searches conducted through
the  use of specially trained dogs.  If a search conducted in
accordance with  this  Section  produces  evidence  that  the
student  has  violated  or is violating either the law, local
ordinance, or the school's policies or rules,  such  evidence
may  be seized by school authorities, and disciplinary action
may be taken.  School authorities may  also  turn  over  such
evidence  to  law enforcement authorities.  The provisions of
this subsection (e) apply in all school districts,  including
special  charter  districts  and  districts  organized  under
Article 34.
(Source:  P.A.  89-371,  eff.  1-1-96;  89-507,  eff. 7-1-97;
89-610, eff. 8-6-96; revised 9-9-96.)

    (105 ILCS 5/10-22.20) (from Ch. 122, par. 10-22.20)
    Sec.  10-22.20.  Classes  for  adults  and  youths  whose
schooling  has  been  interrupted;   Conditions   for   State
reimbursement; Use of child care facilities.
    (a)  To establish special classes for the instruction (1)
of  persons  of age 21 years or over, and (2) of persons less
than age 21 and not otherwise in attendance in public school,
for the purpose of providing adults  in  the  community,  and
youths  whose  schooling  has  been  interrupted,  with  such
additional  basic  education,  vocational skill training, and
other instruction as  may  be  necessary  to  increase  their
qualifications  for employment or other means of self-support
and their ability to meet their responsibilities as  citizens
including  courses  of  instruction  regularly  accepted  for
graduation   from   elementary   or   high  schools  and  for
Americanization and General  Educational  Development  Review
classes.
    The  board  shall  pay  the  necessary  expenses  of such
classes out of school funds of the district, including  costs
of  student  transportation  and such facilities or provision
for child-care as may be necessary in  the  judgment  of  the
board  to  permit  maximum  utilization  of  the  courses  by
students  with  children,  and  other  special  needs  of the
students directly related to such instruction.  The  expenses
thus  incurred  shall  be  subject to State reimbursement, as
provided in this Section.   The  board  may  make  a  tuition
charge  for persons taking instruction who are not subject to
State reimbursement, such tuition charge not  to  exceed  the
per capita cost of such classes.
    The  cost  of  such instruction, including the additional
expenses  herein  authorized,  incurred  for  recipients   of
financial  aid  under  the  Illinois  Public Aid Code, or for
persons  for  whom  education  and  training  aid  has   been
authorized  under  Section 9-8 of that Code, shall be assumed
in its entirety from funds appropriated by the State  to  the
State Board of Education.
    (b)  The  State  Board  of  Education  and  the  Illinois
Community   College   Board  shall  annually  enter  into  an
interagency  agreement  to  implement  this   Section.    The
interagency  agreement  shall establish the standards for the
courses of instruction reimbursed under  this  Section.   The
State  Board  of Education shall supervise the administration
of  the  programs.   The  State  Board  of  Education   shall
determine   the   cost  of  instruction  in  accordance  with
standards jointly established by the State Board of Education
and the Illinois Community College Board as set forth in  the
interagency  agreement,  including  therein  other incidental
costs as herein authorized, which shall serve as the basis of
State reimbursement in  accordance  with  the  provisions  of
this   Section.   In   the   approval  of  programs  and  the
determination of the cost of instruction, the State Board  of
Education  shall  provide  for  the  maximum  utilization  of
federal  funds  for  such programs. The interagency agreement
shall also include:
         (1)  the development of an index of need for program
    planning and for area funding allocations as  defined  by
    the State Board of Education;
         (2)  the    method    for   calculating   hours   of
    instruction, as defined by the State Board of  Education,
    claimable  for reimbursement and a method to phase in the
    calculation and for adjusting the calculations  in  cases
    where  the  services  of a program are interrupted due to
    circumstances beyond the control of the program provider;
         (3)  a  plan  for  the  reallocation  of  funds   to
    increase  the  amount  allocated  for  grants  based upon
    program performance as set forth in subsection (d) below;
    and
         (4)  the development of  standards  for  determining
    grants  based upon performance as set forth in subsection
    (d) below and a plan for the phased-in implementation  of
    those standards.
    For   instruction   provided   by  school  districts  and
community  college  districts  beginning  July  1,  1996  and
thereafter, reimbursement provided  by  the  State  Board  of
Education  for  classes  authorized  by this Section shall be
provided pursuant to the terms of the  interagency  agreement
from  funds  appropriated  for the reimbursement criteria set
forth in subsection (c) below.
    (c)  Upon  the  annual  approval   of   the   interagency
agreement,   reimbursement   shall   be  first  provided  for
transportation, child care services, and other special  needs
of the students directly related to instruction and then from
the  funds  remaining  an  amount equal to the product of the
total credit hours or units of instruction  approved  by  the
State Board of Education, multiplied by the following:
         (1)  For   adult   basic   education,   the  maximum
    reimbursement per credit hour or per unit of  instruction
    shall  be  equal  to  the  general  state  aid  per pupil
    foundation level established in subsections 5(a)  through
    5(d) of Section 18-8, divided by 60;
         (2)  The  maximum  reimbursement  per credit hour or
    per unit of instruction in subparagraph (1)  above  shall
    be  weighted  for students enrolled in classes defined as
    vocational skills and approved  by  the  State  Board  of
    Education by 1.25;
         (3)  The  maximum  reimbursement  per credit hour or
    per unit of instruction in subparagraph (1)  above  shall
    be  multiplied  by  .90  for students enrolled in classes
    defined  as  adult  secondary  education   programs   and
    approved by the State Board of Education;
         (4)  For  community  college  districts  the maximum
    reimbursement per credit hour in subparagraphs (1),  (2),
    and  (3)  above  shall  be  reduced  by  the  Adult Basic
    Education/Adult Secondary Education/English As  A  Second
    Language  credit  hour  grant  rate prescribed in Section
    2-16.02 of the Public Community College Act, as pro-rated
    to the appropriation level; and
         (5)  Programs receiving funds under the formula that
    was in effect during the  1994-1995  program  year  which
    continue  to  be approved and which generate at least 80%
    of the hours claimable in 1994-95,  or  in  the  case  of
    programs  not  approved  in  1994-95  at least 80% of the
    hours  claimable  in  1995-96,  shall  have  funding  for
    subsequent years based upon 100% of the  1995-96  formula
    funding  level  for  1996-97,  90% of the 1995-96 formula
    funding level for 1997-98, 80%  of  the  1995-96  formula
    funding level for 1998-99, and 70% of the 1995-96 formula
    funding  level  for  1999-2000.  For any approved program
    which generates less than 80% of the claimable  hours  in
    its  base  year,  the  level  of funding pursuant to this
    paragraph shall be reduced proportionately.  Funding  for
    program  years  after  1999-2000 shall be pursuant to the
    interagency agreement.
    (d)  Upon  the  annual  approval   of   the   interagency
agreement,  the State Board of Education shall provide grants
to eligible programs for supplemental activities  to  improve
or  expand  services under the Adult Education Act.  Eligible
programs shall be determined based upon performance  outcomes
of  students  in the programs as set forth in the interagency
agreement.
    (e)  Reimbursement under this Section  shall  not  exceed
the actual costs of the approved program.
    If   the  amount  appropriated  to  the  State  Board  of
Education for reimbursement under this Section is  less  than
the  amount  required under this Act, the apportionment shall
be proportionately reduced.
    School districts  and  community  college  districts  may
assess  students  up  to  $3.00  per credit hour, for classes
other than Adult Basic Education level programs, if needed to
meet program costs.
    (f)  An education plan  shall  be  established  for  each
adult  or  youth whose schooling has been interrupted and who
is participating in the instructional programs provided under
this Section.
    Each school board and community  college  shall  keep  an
accurate and detailed account of the students assigned to and
receiving  instruction  under this Section who are subject to
State reimbursement and  shall  submit  reports  of  services
provided  commencing with fiscal year 1997 as required in the
interagency agreement.
    For classes authorized under this Section, a credit  hour
or  unit  of  instruction  is  equal  to  15  hours of direct
instruction for students enrolled in approved adult education
programs at midterm  and  making  satisfactory  progress,  in
accordance  with  standards  jointly established by the State
Board of Education and the Illinois Community  College  Board
as set forth in the interagency agreement.
    (g)  Upon  proof  submitted to the Illinois Department of
Human Services of the payment of all claims  submitted  under
this  Section,  that Department shall apply for federal funds
made available therefor and any  federal  funds  so  received
shall  be  paid  into  the  General Revenue Fund in the State
Treasury.
    School districts or community colleges providing  classes
under  this  Section  shall  submit applications to the State
Board of Education for preapproval  in  accordance  with  the
standards jointly established by the State Board of Education
and  the Illinois Community College Board as set forth in the
interagency agreement.  Payments shall be made by  the  State
Board  of  Education  based  upon approved programs.  Interim
expenditure reports may be required by  the  State  Board  of
Education  as  set forth in the interagency agreement.  Final
claims for the school year shall be submitted to the regional
superintendents  for  transmittal  to  the  State  Board   of
Education  as  set forth in the interagency agreement.  Final
adjusted payments shall be made by September 30.
    If a school district or community college district  fails
to  provide,  or  is providing unsatisfactory or insufficient
classes under this Section, the State Board of Education  may
enter  into  agreements with public or private educational or
other  agencies  other  than  the  public  schools  for   the
establishment of such classes.
    (h)  If  a  school district or community college district
establishes  child-care  facilities  for  the   children   of
participants  in  classes  established under this Section, it
may extend the use of these facilities to students  who  have
obtained  employment  and  to  other persons in the community
whose children require care and supervision while the  parent
or  other  person  in  charge  of the children is employed or
otherwise absent from the home during all or part of the day.
It may make the facilities available before and after as well
as during regular school hours to school  age  and  preschool
age  children who may benefit thereby, including children who
require care and supervision  pending  the  return  of  their
parent   or  other  person  in  charge  of  their  care  from
employment or other activity requiring absence from the home.
    The State Board of Education shall pay to the  board  the
cost  of  care  in  the  facilities  for  any  child who is a
recipient of financial aid  under  The  Illinois  Public  Aid
Code.
    The  board  may  charge  for care of children for whom it
cannot make claim under the provisions of this Section.   The
charge  shall  not  exceed per capita cost, and to the extent
feasible, shall  be  fixed  at  a  level  which  will  permit
utilization  by  employed  parents of low or moderate income.
It may also permit any  other  State  or  local  governmental
agency  or  private  agency  providing  care  for children to
purchase care.
    After  July  1,  1970  when  the  provisions  of  Section
10-20.20 become operative in  the  district,  children  in  a
child-care  facility shall be transferred to the kindergarten
established under that Section for such portion of the day as
may be required for the kindergarten program,  and  only  the
prorated  costs  of  care and training provided in the Center
for the remaining period shall be  charged  to  the  Illinois
Department  of  Human  Services  or other persons or agencies
paying for such care.
    (i)  The provisions of this Section shall also  apply  to
school districts having a population exceeding 500,000.
(Source: P.A.  89-507,  eff.  7-1-97;  89-524,  eff. 7-19-96;
revised 8-15-96.)

    (105 ILCS 5/13A-8)
    Sec. 13A-8.  Funding.
    (a)  The  State  of  Illinois  shall  provide   new   and
additional funding for the alternative school programs within
each educational service region and within the Chicago public
school  system  by  line item appropriation made to the State
Board of  Education  for  that  purpose.   This  money,  when
appropriated,    shall    be   provided   to   the   regional
superintendent and to the Chicago  Board  of  Education,  who
shall   establish  a  budget,  including  salaries,  for  all
alternative schools in that region.
    (b)  The school district in which the program is  located
and  from  which  a  student  is administratively transferred
shall, as a result of an administrative  transfer,  have  its
average daily attendance funding with respect to that student
transferred to the alternative school program.
(Source:  P.A.  89-383,  eff.  8-18-95;  89-629, eff. 8-9-96;
89-636, eff. 8-9-96; revised 9-12-96.)

    (105 ILCS 5/13A-9)
    Sec. 13A-9.  Transportation.  Subject to the requirements
of Article 29 and except as otherwise agreed by the  parents,
school  and  regional superintendent, the school from which a
student is administratively transferred shall provide for  or
any   transportation   that  the  transfer  necessitates,  if
transportation is required pursuant  to  Section  29-3.   The
regional  superintendent  shall coordinate all transportation
arrangements  with  transferring  school  districts.      The
regional  superintendent  may  also  arrange  for cooperation
between school districts  in  the  regional  superintendent's
educational service region regarding the transportation needs
of  transferred students in order to reduce the costs of that
transportation and to provide  greater  convenience  for  the
students involved.
(Source:  P.A.  89-383,  eff.  8-18-95;  89-629, eff. 8-9-96;
89-636, eff. 8-9-96.)

    (105 ILCS 5/18-8) (from Ch. 122, par. 18-8)
    Sec.  18-8.  Basis  for   apportionment   to   districts,
laboratory schools and alternative schools.
    A.  The amounts to be apportioned shall be determined for
each  educational  service  region  by  school  districts, as
follows:
    1.  General Provisions.
    (a)  In the computation of the amounts to be apportioned,
the average daily  attendance  of  all  pupils  in  grades  9
through  12  shall  be multiplied by 1.25.  The average daily
attendance  of  all  pupils  in  grades  7  and  8  shall  be
multiplied by 1.05.
    (b)  The  actual  number  of  pupils  in  average   daily
attendance shall be computed in a one-teacher school district
by  dividing  the total aggregate days of pupil attendance by
the actual number of days school is in session but  not  more
than  30  such  pupils  shall  be accredited for such type of
district; and in districts of  2  or  more  teachers,  or  in
districts  where  records  of  attendance are kept by session
teachers, by taking the sum of the respective averages of the
units composing the group.
    (c)  Pupils in average daily attendance shall be computed
upon the average of the best 3 months of pupils attendance of
the current school year except  as  district  claims  may  be
later  amended  as  provided  hereinafter  in  this  Section.
However,   for   any   school   district  maintaining  grades
kindergarten through 12, the "average daily attendance" shall
be computed on the average of the best  3  months  of  pupils
attendance of the current year in grades kindergarten through
8,  added  together  with the average of the best 3 months of
pupils attendance of the current year in grades 9 through 12,
except as district claims may be later amended as provided in

this Section.  Days of attendance shall be  kept  by  regular
calendar  months,  except  any  days  of attendance in August
shall be added to the month of  September  and  any  days  of
attendance  in  June  shall  be  added  to  the month of May.
Except  as  otherwise  provided  in  this  Section,  days  of
attendance by pupils shall be counted only  for  sessions  of
not  less  than  5  clock  hours of school work per day under
direct supervision of: (i)  teachers,  or  (ii)  non-teaching
personnel   or   volunteer   personnel   when   engaging   in
non-teaching   duties  and  supervising  in  those  instances
specified in subsection (a) of Section 10-22.34 and paragraph
10 of Section 34-18, with pupils of legal school age  and  in
kindergarten and grades 1 through 12.
    (d)  Pupils  regularly  enrolled  in  a public school for
only a part of the school day may be counted on the basis  of
1/6  day for every class hour of instruction of 40 minutes or
more attended pursuant to such enrollment.
    (e)  Days of attendance may be less than 5 clock hours on
the opening and closing of the  school  term,  and  upon  the
first  day  of pupil attendance, if preceded by a day or days
utilized as an institute or teachers' workshop.
    (f)  A session of 4 or more clock hours may be counted as
a day  of  attendance  upon  certification  by  the  regional
superintendent,  and  approved by the State Superintendent of
Education to the extent that the district has been forced  to
use daily multiple sessions.
    (g)  A session of 3 or more clock hours may be counted as
a  day of attendance (1) when the remainder of the school day
or at least 2 hours in the evening of that  day  is  utilized
for  an  in-service  training  program  for teachers, up to a
maximum of 5 days per school year of which  a  maximum  of  4
days   of   such  5  days  may  be  used  for  parent-teacher
conferences,  provided  a  district  conducts  an  in-service
training program for teachers which has been approved by  the
State  Superintendent  of  Education;  or,  in lieu of 4 such
days, 2 full days may be used, in which event each  such  day
may  be  counted as a day of attendance; and (2) when days in
addition to those provided in item (1)  are  scheduled  by  a
school  pursuant to its school improvement plan adopted under
Article 34 or its revised or amended school improvement  plan
adopted under Article 2, provided that (i) such sessions of 3
or  more  clock  hours  are  scheduled  to  occur  at regular
intervals, (ii) the remainder of the  school  days  in  which
such  sessions  occur  are  utilized  for in-service training
programs or other staff development activities for  teachers,
and (iii) a sufficient number of minutes of school work under
the  direct  supervision  of teachers are added to the school
days between such regularly scheduled sessions to  accumulate
not less than the number of minutes by which such sessions of
3  or  more clock hours fall short of 5 clock hours. Any full
days used for the purposes of this  paragraph  shall  not  be
considered  for  computing  average  daily  attendance.  Days
scheduled for in-service training programs, staff development
activities, or parent-teacher conferences  may  be  scheduled
separately   for   different   grade   levels  and  different
attendance centers of the district.
    (h)  A session of not less than one clock  hour  teaching
of  hospitalized  or homebound pupils on-site or by telephone
to the classroom may be counted as  1/2  day  of  attendance,
however  these  pupils  must receive 4 or more clock hours of
instruction to be counted for a full day of attendance.
    (i)  A session of at least 4 clock hours may  be  counted
as  a day of attendance for first grade pupils, and pupils in
full day kindergartens, and a session of 2 or more hours  may
be   counted   as   1/2   day  of  attendance  by  pupils  in
kindergartens which provide only 1/2 day of attendance.
    (j)  For children with disabilities who are below the age
of 6 years and who cannot attend  two  or  more  clock  hours
because  of  their disability or immaturity, a session of not
less than one clock  hour  may  be  counted  as  1/2  day  of
attendance; however for such children whose educational needs
so  require a session of 4 or more clock hours may be counted
as a full day of attendance.
    (k)  A recognized kindergarten which  provides  for  only
1/2  day of attendance by each pupil shall not have more than
1/2 day  of  attendance  counted  in  any  1  day.   However,
kindergartens  may  count  2  1/2 days of attendance in any 5
consecutive school  days.   Where  a  pupil  attends  such  a
kindergarten  for  2  half  days  on any one school day, such
pupil shall have the following  day  as  a  day  absent  from
school,  unless  the  school  district  obtains permission in
writing  from  the   State   Superintendent   of   Education.
Attendance  at  kindergartens which provide for a full day of
attendance by  each  pupil  shall  be  counted  the  same  as
attendance  by  first  grade  pupils.  Only the first year of
attendance in one kindergarten shall  be  counted  except  in
case  of children who entered the kindergarten in their fifth
year whose educational development requires a second year  of
kindergarten as determined under the rules and regulations of
the State Board of Education.
    (l)  Days  of  attendance  by  tuition  pupils  shall  be
accredited  only  to  the districts that pay the tuition to a
recognized school.
    (m)  The greater  of  the  immediately  preceding  year's
weighted  average  daily  attendance  or  the  average of the
weighted  average  daily  attendance   of   the   immediately
preceding year and the previous 2 years shall be used.
    For any school year beginning July 1, 1986 or thereafter,
if  the  weighted  average  daily attendance in either grades
kindergarten through 8 or grades 9 through 12 of  a  district
as  computed  for  the  first  calendar  month of the current
school year exceeds by more than 5%, but  not  less  than  25
pupils,  the district's weighted average daily attendance for
the first calendar month of the  immediately  preceding  year
in,  respectively,  grades kindergarten through 8 or grades 9
through 12, a supplementary payment  shall  be  made  to  the
district  equal  to  the  difference in the amount of aid the
district would be paid under this Section using the  weighted
average  daily attendance in the district as computed for the
first calendar month of  the  current  school  year  and  the
amount  of  aid the district would be paid using the weighted
average daily  attendance  in  the  district  for  the  first
calendar  month  of  the  immediately  preceding  year.  Such
supplementary State aid payment shall be paid to the district
as provided  in  Section  18-8.4  and  shall  be  treated  as
separate  from  all  other  payments  made  pursuant  to this
Section 18-8.
    (n)  The number  of  low  income  eligible  pupils  in  a
district  shall result in an increase in the weighted average
daily attendance calculated as follows:  The  number  of  low
income pupils shall increase the weighted ADA by .53 for each
student  adjusted  by  dividing  the  percent  of  low income
eligible pupils in the district by the ratio of eligible  low
income  pupils  in  the  State to the best 3 months' weighted
average daily attendance in the State.  In no  case  may  the
adjustment under this paragraph result in a greater weighting
than  .625  for each eligible low income student.  The number
of low income eligible pupils in  a  district  shall  be  the
low-income  eligible  count  from the most recently available
federal census and  the  weighted  average  daily  attendance
shall  be  calculated in accordance with the other provisions
of this paragraph.
    (o)  Any school district which fails for any given school
year to maintain school as required by law, or to maintain  a
recognized  school  is  not  eligible to file for such school
year any claim upon the  common  school  fund.   In  case  of
nonrecognition  of one or more attendance centers in a school
district otherwise operating recognized schools, the claim of
the district shall be reduced in  the  proportion  which  the
average  daily attendance in the attendance center or centers
bear to the average daily attendance in the school  district.
A "recognized school" means any public school which meets the
standards  as  established for recognition by the State Board
of Education.  A school district  or  attendance  center  not
having  recognition  status  at  the  end of a school term is
entitled to receive State aid payments due upon a legal claim
which was filed while it was recognized.
    (p)  School district claims filed under this Section  are
subject  to  Sections 18-9, 18-10 and 18-12, except as herein
otherwise provided.
    (q)  The State Board of Education shall secure  from  the
Department  of  Revenue the value as equalized or assessed by
the Department of Revenue of all taxable  property  of  every
school district together with the applicable tax rate used in
extending taxes for the funds of the district as of September
30 of the previous year.  The Department of Revenue shall add
to  the  equalized  assessed value of all taxable property of
each school district situated entirely or partially within  a
county  with 2,000,000 or more inhabitants an amount equal to
the total amount by which the  homestead  exemptions  allowed
under Sections 15-170 and 15-175 of the Property Tax Code for
real  property  situated  in that school district exceeds the
total amount that would have  been  allowed  in  that  school
district  as homestead exemptions under those Sections if the
maximum reduction under Section 15-170 of  the  Property  Tax
Code  was  $2,000  and  the  maximum  reduction under Section
15-175 of the Property Tax Code was $3,500.  The county clerk
of any  county  with  2,000,000  or  more  inhabitants  shall
annually  calculate  and  certify  to the Department for each
school district all homestead exemption amounts  required  by
this amendatory Act of 1992.  In a new district which has not
had  any  tax  rates yet determined for extension of taxes, a
leveled uniform rate shall be computed from the latest amount
of the fund taxes extended on the several areas  within  such
new district.
    (r)  If  a  school  district  operates a full year school
under Section 10-19.1, the general state aid  to  the  school
district  shall be determined by the State Board of Education
in accordance with this Section as near as may be applicable.
    2.  New  or  recomputed  claim.  The  general  State  aid
entitlement for a newly created school district or a district
which has annexed an entire school district shall be computed
using  attendance,  compensatory  pupil   counts,   equalized
assessed  valuation,  and tax rate data which would have been
used had the district been in existence for 3 years.  General
State  aid  entitlements  shall  not  be recomputed except as
permitted herein.
    3.  Impaction.   Impaction  payments  shall  be  made  as
provided for in Section 18-4.2.
    4.  Summer school.  Summer school payments shall be  made
as provided in Section 18-4.3.
    5.  Computation  of  State aid.  The State grant shall be
determined as follows:
    (a)  The State shall guarantee the amount of money that a
district's operating tax rate as limited in other Sections of
this Act would produce if every district  maintaining  grades
kindergarten  through  12 had an equalized assessed valuation
equal to $74,791  per  weighted  ADA  pupil;  every  district
maintaining  grades  kindergarten  through 8 had an equalized
assessed valuation of $108,644 per weighted  ADA  pupil;  and
every  district  maintaining  grades  9  through  12  had  an
equalized  assessed  valuation  of  $187,657 per weighted ADA
pupil.  The  State  Board  of  Education  shall  adjust   the
equalized   assessed   valuation   amounts   stated  in  this
paragraph, if necessary, to conform  to  the  amount  of  the
appropriation approved for any fiscal year.
    (b)  The  operating  tax rate to be used shall consist of
all district taxes extended for all purposes except community
college educational purposes for the payment of tuition under
Section 6-1 of the Public Community  College  Act,  Bond  and
Interest,   Summer  School,  Rent,  Capital  Improvement  and
Vocational Education Building.  Any  district  may  elect  to
exclude  Transportation from the calculation of its operating
tax rate.  Districts  may  include  taxes  extended  for  the
payment  of  principal and interest on bonds issued under the
provisions of Sections 17-2.11a and 20-2 at a  rate  of  .05%
per  year  for  each  purpose  or  the  actual rate extended,
whichever is less.
    (c)  For calculation of aid under  this  Act  a  district
shall  use the combined authorized tax rates of all funds not
exempt in (b) above, not to exceed 2.76% of the value of  all
its   taxable  property  as  equalized  or  assessed  by  the
Department  of  Revenue  for  districts  maintaining   grades
kindergarten  through  12;  1.90%  of  the  value  of all its
taxable property as equalized or assessed by  the  Department
of  Revenue  for  districts  maintaining  grades kindergarten
through 8 only;  1.10%  of  the  value  of  all  its  taxable
property  as  equalized  or  assessed  by  the  Department of
Revenue for districts maintaining grades 9 through  12  only.
A  district may, however, as provided in Article 17, increase
its operating tax rate above the  maximum  rate  provided  in
this  subsection without affecting the amount of State aid to
which it is entitled under this Act.
    (d) (1)  For districts  maintaining  grades  kindergarten
through  12  with  an  operating  tax  rate  as  described in
subsections 5(b) and (c) of less than  2.18%,  and  districts
maintaining  grades  kindergarten through 8 with an operating
tax rate of less than 1.28%, State aid shall be  computed  by
multiplying  the  difference between the guaranteed equalized
assessed valuation per weighted ADA pupil in subsection  5(a)
and  the  equalized assessed valuation per weighted ADA pupil
in the district by the operating tax rate, multiplied by  the
weighted  average daily attendance of the district; provided,
however, that for the 1989-1990 school year  only,  a  school
district  maintaining  grades  kindergarten  through  8 whose
operating tax rate with reference to which its general  State
aid  for the 1989-1990 school year is determined is less than
1.28% and more than 1.090%, and which had  an  operating  tax
rate  of  1.28% or more for the previous year, shall have its
general State aid computed according  to  the  provisions  of
subsection 5(d)(2).
    (2)  For   districts   maintaining   grades  kindergarten
through 12  with  an  operating  tax  rate  as  described  in
subsection  5(b)  and  (c)  of 2.18% and above, the State aid
shall be computed as provided in subsection (d)  (1)  but  as
though  the  district  had an operating tax rate of 2.76%; in
K-8 districts with an operating tax rate of 1.28% and  above,
the State aid shall be computed as provided in subsection (d)
(1)  but  as though the district had an operating tax rate of
1.90%; and in 9-12 districts, the State aid shall be computed
by  multiplying  the  difference   between   the   guaranteed
equalized  assessed  valuation  per  weighted  average  daily
attendance   pupil  in  subsection  5(a)  and  the  equalized
assessed valuation  per  weighted  average  daily  attendance
pupil  in  the  district  by  the  operating tax rate, not to
exceed  1.10%,  multiplied  by  the  weighted  average  daily
attendance of the district.  State  aid  computed  under  the
provisions  of  this  subsection  (d) (2) shall be treated as
separate from  all  other  payments  made  pursuant  to  this
Section.   The  State  Comptroller  and State Treasurer shall
transfer from the General Revenue Fund to the  Common  School
Fund  the amounts necessary to permit these claims to be paid
in equal installments along with  other  State  aid  payments
remaining to be made for the 1983-1984 school year under this
Section.
    (3)  For   any   school  district  whose  1995  equalized
assessed  valuation  is  at  least  6%  less  than  its  1994
equalized assessed valuation as the result of a reduction  in
the  equalized  assessed  valuation  of  the taxable property
within such  district  of  any  one  taxpayer  whose  taxable
property  within  the  district has a 1994 equalized assessed
valuation constituting at least 20%  of  the  1994  equalized
assessed   valuation  of  all  taxable  property  within  the
district, the 1996-97 State aid of  such  district  shall  be
computed using its 1995 equalized assessed valuation.
    (4)  For   any   school  district  whose  1988  equalized
assessed valuation is 55%  or  less  of  its  1981  equalized
assessed  valuation,  the  1990-91 State aid of such district
shall be computed by multiplying the 1988 equalized  assessed
valuation  by a factor of .8.  Any such school district which
is reorganized effective for the 1991-92  school  year  shall
use the formula provided in this subparagraph for purposes of
the  calculation  made  pursuant  to  subsection  (m) of this
Section.
    (e)  The amount of State aid shall be computed under  the
provisions  of  subsections  5(a)  through  5(d) provided the
equalized assessed valuation per weighted ADA pupil  is  less
than  .87 of the amounts in subsection 5(a). If the equalized
assessed valuation per weighted ADA  pupil  is  equal  to  or
greater than .87 of the amounts in subsection 5(a), the State
aid  shall  be  computed  under  the provisions of subsection
5(f).
    (f)  If the equalized assessed valuation per weighted ADA
pupil is equal to or greater  than  .87  of  the  amounts  in
subsection  5(a),  the State aid per weighted ADA pupil shall
be computed by multiplying  the  product  of  .13  times  the
maximum  per  pupil  amount  computed under the provisions of
subsections 5(a) through 5(d)  by  an  amount  equal  to  the
quotient  of  .87  times the equalized assessed valuation per
weighted ADA pupil  in  subsection  5(a)  for  that  type  of
district  divided  by  the  district  equalized valuation per
weighted ADA pupil except  in  no  case  shall  the  district
receive  State  aid  per  weighted ADA pupil of less than .07
times  the  maximum  per  pupil  amount  computed  under  the
provisions of subsections 5(a) through 5(d).
    (g)  In addition  to  the  above  grants,  summer  school
grants  shall  be made based upon the calculation as provided
in subsection 4 of this Section.
    (h)  The board of  any  district  receiving  any  of  the
grants  provided for in this Section may apply those funds to
any fund so received for which that board  is  authorized  to
make expenditures by law.
    (i) (1) (a)  In  school  districts  with an average daily
attendance of 50,000 or more, the amount  which  is  provided
under subsection 1(n) of this Section by the application of a
base  Chapter 1 weighting factor of .375 shall be distributed
to the attendance centers within the district  in  proportion
to  the  number  of pupils enrolled at each attendance center
who are eligible to receive free or reduced-price lunches  or
breakfasts  under the federal Child Nutrition Act of 1966 and
under the National School Lunch Act  during  the  immediately
preceding  school  year.   The  amount  of State aid provided
under subsection 1(n) of this Section by the  application  of
the  Chapter  1  weighting  factor in excess of .375 shall be
distributed to the attendance centers within the district  in
proportion to the total enrollment at each attendance center.
Beginning  with  school  year  1989-90,  and each school year
thereafter, all funds provided under subsection 1 (n) of this
Section by the application of the Chapter 1 weighting  factor
which  are  in  excess of the level of non-targeted Chapter 1
funds  in  school  year  1988-89  shall  be  distributed   to
attendance  centers,  and  only to attendance centers, within
the district in proportion to the number of  pupils  enrolled
at each attendance center who are eligible to receive free or
reduced  price  lunches or breakfasts under the Federal Child
Nutrition Act and under the National School Lunch Act  during
the  immediately  preceding school year.  Beginning in school
year 1989-90, 25% of the previously  non-targeted  Chapter  1
funds  as  established  for school year 1988-89 shall also be
distributed to the attendance centers, and only to attendance
centers, in the district  in  proportion  to  the  number  of
pupils enrolled at each attendance center who are eligible to
receive free or reduced price lunches or breakfasts under the
Federal  Child  Nutrition  Act  and under the National School
Lunch Act during the immediately preceding  school  year;  in
school  year  1990-91,  50%  of  the  previously non-targeted
Chapter 1 funds as established for school year 1988-89  shall
be  distributed to attendance centers, and only to attendance
centers, in the district  in  proportion  to  the  number  of
pupils enrolled at each attendance center who are eligible to
receive  such  free  or  reduced  price lunches or breakfasts
during the immediately preceding school year; in school  year
1991-92,  75%  of the previously non-targeted Chapter 1 funds
as established for school year 1988-89 shall  be  distributed
to attendance centers, and only to attendance centers, in the
district  in  proportion  to the number of pupils enrolled at
each attendance center who are eligible to receive such  free
or reduced price lunches or breakfasts during the immediately
preceding school year; in school year 1992-93 and thereafter,
all  funds provided under subsection 1 (n) of this Section by
the application of the Chapter 1 weighting  factor  shall  be
distributed  to  attendance  centers,  and only to attendance
centers, in the district  in  proportion  to  the  number  of
pupils enrolled at each attendance center who are eligible to
receive free or reduced price lunches or breakfasts under the
Federal  Child  Nutrition  Act  and under the National School
Lunch Act  during  the  immediately  preceding  school  year;
provided,  however,  that  the distribution formula in effect
beginning with school year 1989-90 shall not be applicable to
such portion of State aid provided under subsection 1 (n)  of
this  Section  by  the application of the Chapter 1 weighting
formula as is  set  aside  and  appropriated  by  the  school
district  for the purpose of providing desegregation programs
and related transportation to students (which  portion  shall
not  exceed  5%  of  the  total  amount of State aid which is
provided  under  subsection  1  (n)  of   this   Section   by
application  of  the  Chapter  1  weighting formula), and the
relevant  percentages  shall  be  applied  to  the  remaining
portion  of  such  State  aid.   The  distribution  of  these
portions  of  general  State  aid  among  attendance  centers
according to these requirements shall not be compensated  for
or  contravened  by  adjustments  of the total of other funds
appropriated to any attendance centers.   (b)  The  Board  of
Education  shall  utilize funding from one or several sources
in order to fully implement this provision annually prior  to
the  opening  of  school.  The Board of Education shall apply
savings from  reduced  administrative  costs  required  under
Section  34-43.1  and growth in non-Chapter 1 State and local
funds to assure that all attendance centers  receive  funding
to replace losses due to redistribution of Chapter 1 funding.
The distribution formula and funding to replace losses due to
the  distribution formula shall occur, in full, using any and
all sources available, including, if necessary, revenue  from
administrative  reductions  beyond  those required in Section
34-43.1, in order to provide the necessary funds.   (c)  Each
attendance  center shall be provided by the school district a
distribution of noncategorical funds  and  other  categorical
funds  to which an attendance center is entitled under law in
order that the State  aid  provided  by  application  of  the
Chapter  1  weighting  factor  and required to be distributed
among attendance centers according  to  the  requirements  of
this   paragraph   supplements   rather  than  supplants  the
noncategorical funds and other categorical funds provided  by
the    school    district    to   the   attendance   centers.
Notwithstanding the foregoing provisions of  this  subsection
5(i)(1)  or any other law to the contrary, beginning with the
1995-1996 school year and for each  school  year  thereafter,
the  board  of  a  school district to which the provisions of
this subsection  apply  shall  be  required  to  allocate  or
provide  to  attendance  centers  of the district in any such
school year, from the State aid  provided  for  the  district
under  this Section by application of the Chapter 1 weighting
factor, an aggregate amount of not less than $261,000,000  of
State  Chapter  1  funds.  Any  State Chapter 1 funds that by
reason of the provisions of this paragraph are  not  required
to  be  allocated  and  provided to attendance centers may be
used and appropriated by the board of the  district  for  any
lawful  school  purpose.    Chapter  1  funds  received by an
attendance  center  (except  those  funds   set   aside   for
desegregation   programs   and   related   transportation  to
students) shall be used on the schedule cited in this Section
at the attendance center at the discretion of  the  principal
and  local school council for programs to improve educational
opportunities at qualifying  schools  through  the  following
programs  and  services:  early  childhood education, reduced
class size or improved  adult  to  student  classroom  ratio,
enrichment    programs,   remedial   assistance,   attendance
improvement and other educationally  beneficial  expenditures
which supplement the regular and basic programs as determined
by  the  State Board of Education.  Chapter 1 funds shall not
be expended for any political or lobbying purposes as defined
by board rule. (d) Each district subject to the provisions of
this paragraph shall submit an acceptable plan  to  meet  the
educational  needs  of  disadvantaged children, in compliance
with the requirements of this paragraph, to the  State  Board
of  Education  prior to July 15 of each year. This plan shall
be consistent with the decisions  of  local  school  councils
concerning   the   school   expenditure  plans  developed  in
accordance with part 4 of Section 34-2.3.   The  State  Board
shall  approve  or  reject  the plan within 60 days after its
submission.  If the plan is rejected the district shall  give
written notice of intent to modify the plan within 15 days of
the notification of rejection and then submit a modified plan
within 30 days after the date of the written notice of intent
to  modify.    Districts may amend approved plans pursuant to
rules promulgated by the State Board of Education.
    Upon notification by the State Board  of  Education  that
the  district  has not submitted a plan prior to July 15 or a
modified plan within the time period  specified  herein,  the
State  aid funds affected by said plan or modified plan shall
be withheld by the State Board of Education until a  plan  or
modified plan is submitted.
    If   the  district  fails  to  distribute  State  aid  to
attendance centers in accordance with an approved  plan,  the
plan for the following year shall allocate funds, in addition
to  the  funds  otherwise  required  by this subparagraph, to
those attendance centers which were  underfunded  during  the
previous year in amounts equal to such underfunding.
    For   purposes   of   determining  compliance  with  this
subsection  in  relation  to  Chapter  1  expenditures,  each
district subject to the provisions of this  subsection  shall
submit  as  a  separate document by December 1 of each year a
report of Chapter 1 expenditure data for the  prior  year  in
addition  to  any modification of its current plan.  If it is
determined that there has been a failure to comply  with  the
expenditure   provisions   of   this   subsection   regarding
contravention  or  supplanting,  the  State Superintendent of
Education shall, within 60 days of  receipt  of  the  report,
notify  the  district  and any affected local school council.
The  district  shall  within  45  days  of  receipt  of  that
notification inform the State Superintendent of Education  of
the  remedial  or  corrective action to be taken, whether  by
amendment of the current plan, if feasible, or by  adjustment
in  the  plan for the following year.  Failure to provide the
expenditure  report  or  the  notification  of  remedial   or
corrective  action  in  a  timely  manner  shall  result in a
withholding of the affected funds.
    The State Board of Education shall promulgate  rules  and
regulations  to  implement  the provisions of this subsection
5(i)(1).  No funds shall be released under subsection 1(n) of
this Section or under this subsection 5(i)(1) to any district
which has not submitted a plan which has been approved by the
State Board of Education.
    (2)  School districts with an average daily attendance of
more than 1,000 and less than 50,000 and having a low  income
pupil  weighting  factor in excess of .53 shall submit a plan
to the State Board of Education prior to October 30  of  each
year  for the use of the funds resulting from the application
of subsection 1(n) of this Section  for  the  improvement  of
instruction  in  which  priority  is  given  to  meeting  the
education  needs  of disadvantaged children.  Such plan shall
be  submitted  in  accordance  with  rules  and   regulations
promulgated by the State Board of Education.
    (j)  For the purposes of calculating State aid under this
Section, with respect to any part of a school district within
a   redevelopment   project   area  in  respect  to  which  a
municipality has adopted tax increment  allocation  financing
pursuant  to  the Tax Increment Allocation Redevelopment Act,
Sections  11-74.4-1  through  11-74.4-11  of   the   Illinois
Municipal  Code or the Industrial Jobs Recovery Law, Sections
11-74.6-1 through 11-74.6-50 of the Illinois Municipal  Code,
no  part  of the current equalized assessed valuation of real
property  located  in  any  such  project   area   which   is
attributable to an increase above the total initial equalized
assessed   valuation  of  such  property  shall  be  used  in
computing the equalized assessed valuation per  weighted  ADA
pupil  in  the district, until such time as all redevelopment
project  costs  have  been  paid,  as  provided  in   Section
11-74.4-8  of  the Tax Increment Allocation Redevelopment Act
or in Section 11-74.6-35 of the Industrial Jobs Recovery Law.
For the purpose of computing the equalized assessed valuation
per weighted ADA pupil in  the  district  the  total  initial
equalized   assessed   valuation  or  the  current  equalized
assessed valuation, whichever is lower, shall be  used  until
such time as all redevelopment project costs have been paid.
    (k)  For  a school district operating under the financial
supervision of an Authority created under  Article  34A,  the
State  aid  otherwise  payable  to  that  district under this
Section, other than  State  aid  attributable  to  Chapter  1
students,  shall  be reduced by an amount equal to the budget
for the operations of  the  Authority  as  certified  by  the
Authority  to  the  State  Board  of Education, and an amount
equal to such  reduction  shall  be  paid  to  the  Authority
created  for  such district for its operating expenses in the
manner provided in Section 18-11.   The  remainder  of  State
school  aid for any such district shall be paid in accordance
with Article 34A when that Article provides for a disposition
other than that provided by this Article.
    (l)  For purposes of calculating  State  aid  under  this
Section,  the  equalized  assessed  valuation  for  a  school
district  used  to  compute  State aid shall be determined by
adding to the real property equalized assessed valuation  for
the  district  an  amount  computed by dividing the amount of
money received by the district under the  provisions  of  "An
Act  in  relation  to  the  abolition  of ad valorem personal
property tax and the replacement of revenues  lost  thereby",
certified  August  14,  1979,  by  the total tax rate for the
district. For purposes of  this  subsection  1976  tax  rates
shall  be used for school districts in the county of Cook and
1977 tax rates shall be used  for  school  districts  in  all
other counties.
    (m) (1)  For  a  new  school district formed by combining
property  included  totally  within  2  or  more   previously
existing school districts, for its first year of existence or
if  the  new  district  was formed after October 31, 1982 and
prior  to  September  23,  1985,  for  the  year  immediately
following September 23, 1985, the State aid calculated  under
this  Section  shall be computed for the new district and for
the previously  existing  districts  for  which  property  is
totally included within the new district.  If the computation
on the basis of the previously existing districts is greater,
a supplementary payment equal to the difference shall be made
for  the first 3 years of existence of the new district or if
the new district was formed after October 31, 1982 and  prior
to  September 23, 1985, for the 3 years immediately following
September 23, 1985.
    (2)  For a school  district  which  annexes  all  of  the
territory  of  one or more entire other school districts, for
the  first  year  during  which  the  change  of   boundaries
attributable  to  such  annexation  becomes effective for all
purposes as determined under Section 7-9 or 7A-8,  the  State
aid  calculated  under this Section shall be computed for the
annexing district as constituted after the annexation and for
the annexing and each annexed district as  constituted  prior
to the annexation; and if the computation on the basis of the
annexing  and  annexed  districts as constituted prior to the
annexation is greater, a supplementary payment equal  to  the
difference  shall  be made for the first 3 years of existence
of the annexing school  district  as  constituted  upon  such
annexation.
    (3)  For  2  or  more school districts which annex all of
the territory of one or more entire other  school  districts,
and  for 2 or more community unit districts which result upon
the division (pursuant to petition under  Section  11A-2)  of
one  or more other unit school districts into 2 or more parts
and which together include all of the parts into  which  such
other  unit  school district or districts are so divided, for
the  first  year  during  which  the  change  of   boundaries
attributable to such annexation or division becomes effective
for  all  purposes as determined under Section 7-9 or 11A-10,
as the case may be,  the  State  aid  calculated  under  this
Section  shall  be  computed  for  each annexing or resulting
district as constituted after the annexation or division  and
for each annexing and annexed district, or for each resulting
and  divided district, as constituted prior to the annexation
or division; and if the aggregate of  the  State  aid  as  so
computed   for   the   annexing  or  resulting  districts  as
constituted after the annexation or division is less than the
aggregate of the State aid as so computed  for  the  annexing
and  annexed  districts,  or  for  the  resulting and divided
districts,  as  constituted  prior  to  the   annexation   or
division,   then   a   supplementary  payment  equal  to  the
difference shall be made and allocated between or  among  the
annexing  or  resulting  districts,  as constituted upon such
annexation or division,  for  the  first  3  years  of  their
existence.   The  total difference payment shall be allocated
between or among the annexing or resulting districts  in  the
same  ratio  as the pupil enrollment from that portion of the
annexed or divided district or districts which is annexed  to
or included in each such annexing or resulting district bears
to  the  total  pupil  enrollment  from the entire annexed or
divided district or districts, as such  pupil  enrollment  is
determined  for the school year last ending prior to the date
when the change of boundaries attributable to the  annexation
or  division  becomes effective for all purposes.  The amount
of the total difference payment and the amount thereof to  be
allocated  to  the  annexing  or resulting districts shall be
computed by the State Board of  Education  on  the  basis  of
pupil  enrollment  and other data which shall be certified to
the State Board of Education, on forms which it shall provide
for that purpose, by the regional superintendent  of  schools
for each educational service region in which the annexing and
annexed  districts,  or  resulting  and divided districts are
located.
    (4)  If a unit school district annexes all the  territory
of  another  unit  school district effective for all purposes
pursuant to Section 7-9 on July 1, 1988, and if part  of  the
annexed  territory  is  detached within 90 days after July 1,
1988, then the detachment shall be disregarded  in  computing
the supplementary State aid payments under this paragraph (m)
for  the entire 3 year period and the supplementary State aid
payments shall not be diminished because of the detachment.
    (5)  Any supplementary State aid payment made under  this
paragraph  (m)  shall  be  treated as separate from all other
payments made pursuant to this Section.
    (n)  For the purposes of calculating State aid under this
Section, the real property equalized assessed valuation for a
school district used to compute State aid shall be determined
by subtracting from the real property value as  equalized  or
assessed  by  the  Department  of Revenue for the district an
amount computed by dividing the amount of  any  abatement  of
taxes  under  Section  18-170 of the Property Tax Code by the
maximum operating tax rates specified in subsection  5(c)  of
this Section and an amount computed by dividing the amount of
any abatement of taxes under subsection (a) of Section 18-165
of  the  Property Tax Code by the maximum operating tax rates
specified in subsection 5(c) of this Section.
    (o)  Notwithstanding  any  other   provisions   of   this
Section,  for  the  1996-1997  school  year the amount of the
aggregate general State  aid  entitlement  that  is  received
under  this  Section  by each school district for that school
year shall be not less  than  the  amount  of  the  aggregate
general  State  aid  entitlement  that  was  received  by the
district under this Section for the 1995-1996 school year. If
a school district is to receive an  aggregate  general  State
aid  entitlement  under this Section for the 1996-1997 school
year that is less than the amount of  the  aggregate  general
State  aid  entitlement that the district received under this
Section for the 1995-1996 school year,  the  school  district
shall  also  receive,  from a separate appropriation made for
purposes of this paragraph (o), a supplementary payment  that
is  equal  to  the  amount  by  which  the  general State aid
entitlement received by the district under this  Section  for
the  1995-1996  school  year  exceeds  the  general State aid
entitlement that  the  district  is  to  receive  under  this
Section  for  the  1996-1997  school  year.   If  the  amount
appropriated  for  supplementary payments to school districts
under this paragraph (o) is insufficient  for  that  purpose,
the  supplementary  payments  that  districts  are to receive
under this paragraph  shall  be  prorated  according  to  the
aggregate  amount  of  the appropriation made for purposes of
this paragraph.
    B.  In calculating the amount to be paid to the governing
board of a  public  university  that  operates  a  laboratory
school  under  this Section or to any alternative school that
is operated by a regional superintendent, the State Board  of
Education  shall  require by rule such reporting requirements
as it deems necessary.
    As used in this  Section,  "laboratory  school"  means  a
public  school  which  is  created  and  operated by a public
university and approved by the State Board of Education.  The
governing board of a public university which  receives  funds
from the State Board under this subsection B may not increase
the number of students enrolled in its laboratory school from
a  single district, if that district is already sending 50 or
more students, except under a mutual  agreement  between  the
school  board  of  a  student's district of residence and the
university  which  operates   the   laboratory   school.    A
laboratory  school  may  not  have  more than 1,000 students,
excluding students with disabilities in a  special  education
program.
    As  used  in  this  Section, "alternative school" means a
public school which is created and  operated  by  a  Regional
Superintendent  of Schools and approved by the State Board of
Education. Such alternative  schools  may  offer  courses  of
instruction  for  which  credit  is  given  in regular school
programs, courses to prepare students  for  the  high  school
equivalency  testing  program  or vocational and occupational
training.
    Each laboratory and alternative  school  shall  file,  on
forms  provided  by the State Superintendent of Education, an
annual  State  aid  claim  which  states  the  average  daily
attendance of the school's students by  month.   The  best  3
months'  average  daily attendance shall be computed for each
school.  The  weighted  average  daily  attendance  shall  be
computed  and  the  weighted average daily attendance for the
school's most recent 3 year average shall be compared to  the
most  recent  weighted  average  daily  attendance,  and  the
greater of the 2 shall be used for the calculation under this
subsection  B.   The  general  State aid entitlement shall be
computed by multiplying the school's  student  count  by  the
foundation level as determined under this Section.
(Source: P.A.  88-9;  88-45;  88-89;  88-386; 88-511; 88-537;
88-555; 88-641; 88-670, eff. 12-2-94;  89-15,  eff.  5-30-95;
89-235,  eff.  8-4-95;  89-397,  eff.  8-20-95;  89-610, eff.
8-6-96; 89-618, eff. 8-9-96;  89-626,  eff.  8-9-96;  89-679,
eff. 8-16-96; revised 9-10-96.)

    (105 ILCS 5/24-2) (from Ch. 122, par. 24-2)
    Sec.  24-2.  Holidays.  Teachers shall not be required to
teach on  Saturdays;  nor  shall  teachers  or  other  school
employees,  other than noncertificated school employees whose
presence is necessary because of  an  emergency  or  for  the
continued  operation  and maintenance of school facilities or
property, be required to work on legal school holidays, which
are January 1, New Year's Day; the third Monday  in  January,
the Birthday of Dr. Martin Luther King, Jr.; February 12, the
Birthday  of  President  Abraham Lincoln; the first Monday in
March (to be  known  as  Casimir  Pulaski's  birthday);  Good
Friday;  the  day  designated as Memorial Day by federal law;
July 4, Independence Day;  the  first  Monday  in  September,
Labor  Day;  the  second  Monday  in  October,  Columbus Day;
November 11, Veteran's Day; the Thursday in November commonly
called Thanksgiving Day;  and  December  25,  Christmas  Day.
School  boards  may  grant special holidays whenever in their
judgment such action is  advisable,  except  that  no  school
board  or  board  of  education in a school district having a
population exceeding 500,000 the board of education  may  not
designate  or  observe as a legal or special holiday on which
teachers or other school employees are not required  to  work
the  days  on  which  general  elections  for  members of the
Illinois House of  Representatives  are  held.  No  deduction
shall  be  made  from  the  time  or compensation of a school
employee on account of any legal or special holiday.
    Commemorative   holidays,   which   recognize   specified
patriotic, civic, cultural or historical persons, activities,
or events, are regular school  days.  Commemorative  holidays
are:  January  28  (to  be known as Christa McAuliffe Day and
observed as a commemoration of space  exploration),  February
15 (the birthday of Susan B. Anthony), March 29 (Viet Nam War
Veterans Day), the school day immediately preceding Veteran's
Day  (Korean  War  Veterans  Day), October 1 (Recycling Day),
December 7  (Pearl  Harbor  Veterans  Day)  and  any  day  so
appointed  by  the  President or Governor.  School boards may
establish commemorative holidays whenever in  their  judgment
such   action  is  advisable.  School  boards  shall  include
instruction relative to commemorated persons, activities,  or
events  on  the  commemorative  holiday  or at any other time
during the school year and at any  point  in  the  curriculum
when  such  instruction  may be deemed appropriate. The State
Board of Education shall prepare and make available to school
boards  instructional  materials  relative  to   commemorated
persons,  activities,  or  events which may be used by school
boards in conjunction with any instruction provided  pursuant
to this paragraph.
    City of Chicago School District 299 shall observe March 4
of  each year as a commemorative holiday.  This holiday shall
be known as Mayors' Day which shall be a day  to  commemorate
and  be  reminded of the past Chief Executive Officers of the
City of Chicago, and in particular the late Mayor Richard  J.
Daley and the late Mayor Harold Washington.  If March 4 falls
on a Saturday or Sunday, Mayors' Day shall be observed on the
following Monday.
(Source:  P.A.  89-610,  eff.  8-6-96;  89-622,  eff. 8-9-96;
revised 9-9-96.)

    (105 ILCS 5/34-2.3) (from Ch. 122, par. 34-2.3)
    Sec. 34-2.3.  Local school councils - Powers and  duties.
Each local school council shall have and exercise, consistent
with the provisions of this Article and the powers and duties
of the board of education, the following powers and duties:
    1.  To  evaluate  the performance of the principal of the
attendance  center  taking  into  consideration  the   annual
evaluation   of   the  principal  conducted  by  the  general
superintendent pursuant to subsection (h) of Section  34-8.3,
to  determine  in  the  manner  provided by subsection (c) of
Section  34-2.2  whether  the  performance  contract  of  the
principal shall be renewed, and to  directly  select  in  the
manner  provided  by  subsection  (c) of Section 34-2.2 a new
principal (including a new principal to fill  a  vacancy)  --
without  submitting  any list of candidates for that position
to the general superintendent as provided in paragraph  2  of
this Section -- to serve under a 4 year performance contract;
provided   that   (i)   the   determination  of  whether  the
principal's performance contract is to be renewed and  --  in
cases  where  such  performance  contract is not renewed -- a
direct selection of a new principal -- to  serve  under  a  4
year  performance  contract shall be made by the local school
council by April 15 of the calendar year in which the current
performance contract of the principal  expires,  and  (ii)  a
direct  selection  by  the  local  school  council  of  a new
principal to fill  a  vacancy  under  a  4  year  performance
contract  shall  be  made  within 90 days after the date such
vacancy occurs.  A Council shall be required, if requested by
the principal, to provide in  writing  the  reasons  for  the
council's not renewing the principal's contract.
    2.  In  the  event  (i) the local school council does not
renew the performance  contract  of  the  principal,  or  the
principal  fails to receive a satisfactory rating as provided
in subsection (h) of Section  34-8.3,  or  the  principal  is
removed  for  cause during the term of his or her performance
contract in the  manner  provided  by  Section  34-85,  or  a
vacancy  in  the position of principal otherwise occurs prior
to the expiration of the term of  a  principal's  performance
contract, and (ii) the local school council fails to directly
select  a  new principal (including a new principal to fill a
vacancy) to serve under a 4 year  performance  contract,  the
local  school  council  in  such  event  shall  submit to the
general superintendent a list of 3 candidates  --  listed  in
the  local  school  council's  order of preference -- for the
position of principal, one of which shall be selected by  the
general   superintendent   to   serve  as  principal  of  the
attendance center.  If the general  superintendent  fails  or
refuses  to select one of the candidates on the list to serve
as principal within 30 days after being  furnished  with  the
candidate list, the local school council within 15 days after
such  failure  or  refusal  shall  itself  select  one of the
candidates from the  list  as  principal  of  the  attendance
center.   There  shall  be  no discrimination on the basis of
race, sex, creed, color or disability unrelated to ability to
perform in connection with the submission of candidates  for,
and  the selection of a candidate to serve as principal of an
attendance center.  No person  shall  be  directly  selected,
listed  as a candidate for, or selected to serve as principal
of an attendance center (i) if such person has  been  removed
for cause from employment by the Board or (ii) if such person
does  not  hold  a valid administrative certificate issued or
exchanged under Article 21 and endorsed as required  by  that
Article  for  the  position  of principal.  A principal whose
performance  contract  is  not  renewed  as  provided   under
subsection   (c)  of  Section  34-2.2  may  nevertheless,  if
otherwise qualified and certified as herein provided  and  if
he  or  she has received a satisfactory rating as provided in
subsection (h) of Section 34-8.3,  be  included  by  a  local
school  council as one of the 3 candidates listed in order of
preference on any candidate list from which one person is  to
be  selected  to  serve as principal of the attendance center
under a new performance contract.  The initial candidate list
required to be submitted by a local  school  council  to  the
general  superintendent  in  cases  where  the  local  school
council  does  not  renew  the  performance  contract  of its
principal and does not directly select  a  new  principal  to
serve  under a 4 year performance contract shall be submitted
not later than May 1 of  the  calendar  year  in  which  such
performance  contract expires.  In cases where a principal is
removed for cause  or  a  vacancy  otherwise  occurs  in  the
position of principal and the vacancy is not filled by direct
selection  by  the  local  school council, the candidate list
shall be submitted by the local school council to the general
superintendent not later than 90 days  after  the  date  such
removal or vacancy occurs.
    2.5.  Whenever  a  vacancy  in  the office of a principal
occurs for any reason, the vacancy shall  be  filled  in  the
manner  provided  by  this  Section by the selection of a new
principal to serve under a 4 year performance contract.
    3.  To establish additional criteria to  be  included  as
part  of  the performance contract of its principal, provided
that such additional criteria shall not discriminate  on  the
basis  of  race, sex, creed, color or disability unrelated to
ability to perform, and shall not be  inconsistent  with  the
uniform  4 year performance contract for principals developed
by the board as provided in Section 34-8.1 of the School Code
or with  other  provisions  of  this  Article  governing  the
authority and responsibility of principals.
    4.  To  approve  the  expenditure  plan  prepared  by the
principal with respect to all funds allocated and distributed
to the attendance center by the Board.  The expenditure  plan
shall  be  administered by the principal. Notwithstanding any
other provision of this Act or any other law, any expenditure
plan approved and  administered  under  this  Section  34-2.3
shall  be  consistent  with  and  subject to the terms of any
contract for services with a third party entered into by  the
Chicago  School  Reform  Board of Trustees or the board under
this Act.
    Via a supermajority vote of 7 members of the local school
council or 8 members of a high school local  school  council,
the  Council  may  transfer  allocations  pursuant to Section
34-2.3  within  funds;  provided  that  such  a  transfer  is
consistent with  applicable  law  and  collective  bargaining
agreements.
    Beginning  in  fiscal  year  1991 and in each fiscal year
thereafter, the Board may reserve  up  to  1%  of  its  total
fiscal year budget for distribution on a prioritized basis to
schools  throughout  the  school  system  in  order to assure
adequate programs  to  meet  the  needs  of  special  student
populations  as  determined  by the Board.  This distribution
shall  take  into  account  the  needs  catalogued   in   the
Systemwide  Plan  and  the  various  local school improvement
plans of the local school councils.  Information about  these
centrally  funded  programs shall be distributed to the local
school  councils  so  that  their  subsequent  planning   and
programming will account for these provisions.
    Beginning  in  fiscal  year  1991 and in each fiscal year
thereafter, from other amounts available  in  the  applicable
fiscal  year  budget,  the  board  shall  allocate a lump sum
amount to each local school based upon such  formula  as  the
board  shall  determine taking into account the special needs
of the  student  body.   The  local  school  principal  shall
develop  an  expenditure  plan in consultation with the local
school council, the professional personnel advisory committee
and with all  other  school  personnel,  which  reflects  the
priorities  and activities as described in the school's local
school improvement plan and is consistent with applicable law
and collective bargaining agreements and with board  policies
and  standards;  however, the local school council shall have
the right to request waivers of board policy from  the  board
of  education  and  waivers of employee collective bargaining
agreements pursuant to Section 34-8.1a.
    The expenditure plan  developed  by  the  principal  with
respect  to  amounts  available from the fund for prioritized
special needs programs and the allocated lump sum amount must
be approved by the local school council.
    The lump sum  allocation  shall  take  into  account  the
following principles:
         a.  Teachers:  Each  school shall be allocated funds
    equal to the amount appropriated in the  previous  school
    year   for  compensation  for  teachers  (regular  grades
    kindergarten through 12th grade) plus whatever  increases
    in  compensation  have  been  negotiated contractually or
    through  longevity  as   provided   in   the   negotiated
    agreement.   Adjustments  shall  be made due to layoff or
    reduction in force, lack of  funds  or  work,  change  in
    subject  requirements,  enrollment  changes, or contracts
    with third parties for the performance of services or  to
    rectify  any  inconsistencies with system-wide allocation
    formulas or for other legitimate reasons.
         b.  Other  personnel:  Funds   for   other   teacher
    certificated  and  uncertificated  personnel paid through
    non-categorical funds  shall  be  provided  according  to
    system-wide  formulas based on student enrollment and the
    special needs of the school as determined by the Board.
         c.  Non-compensation items: Appropriations  for  all
    non-compensation  items  shall  be  based  on system-wide
    formulas based on student enrollment and on  the  special
    needs  of  the  school or factors related to the physical
    plant, including but not limited to textbooks,  supplies,
    electricity, equipment, and routine maintenance.
         d.  Funds  for  categorical  programs: Schools shall
    receive personnel and funds based on, and shall use  such
    personnel  and funds in accordance with State and Federal
    requirements  applicable  to  each  categorical   program
    provided  to  meet  the special needs of the student body
    (including  but  not  limited  to,  Federal  Chapter   I,
    Bilingual, and Special Education).
         d.1.  Funds  for  State  Title I:  Each school shall
    receive funds  based  on  State  and  Board  requirements
    applicable  to  each State Title I pupil provided to meet
    the special needs of the student body.  Each school shall
    receive the proportion of funds as  provided  in  Section
    18-8  to  which  they are entitled.  These funds shall be
    spent only with  the  budgetary  approval  of  the  Local
    School Council as provided in Section 34-2.3.
         e.  The Local School Council shall have the right to
    request  the  principal  to  close positions and open new
    ones consistent with the provisions of the  local  school
    improvement   plan  provided  that  these  decisions  are
    consistent with applicable law and collective  bargaining
    agreements.   If  a  position is closed, pursuant to this
    paragraph, the local school shall have for  its  use  the
    system-wide average compensation for the closed position.
         f.  Operating  within  existing  laws and collective
    bargaining agreements, the  local  school  council  shall
    have   the   right  to  direct  the  principal  to  shift
    expenditures within funds.
         g.  (Blank).
    Any funds unexpended at the end of the fiscal year  shall
be available to the board of education for use as part of its
budget for the following fiscal year.
    5.  To  make  recommendations to the principal concerning
textbook  selection  and  concerning   curriculum   developed
pursuant  to  the school improvement plan which is consistent
with systemwide  curriculum  objectives  in  accordance  with
Sections  34-8 and 34-18 of the School Code and in conformity
with the collective bargaining agreement.
    6.  To advise the principal concerning the attendance and
disciplinary policies for the attendance center,  subject  to
the provisions of this Article and Article 26, and consistent
with  the  uniform  system  of  discipline established by the
board pursuant to Section 34-19.
    7.  To approve a school  improvement  plan  developed  as
provided in Section 34-2.4. The process and schedule for plan
development   shall   be  publicized  to  the  entire  school
community,  and  the  community   shall   be   afforded   the
opportunity  to make recommendations concerning the plan.  At
least twice a year the principal  and  local  school  council
shall  report  publicly on progress and problems with respect
to plan implementation.
    8.  To evaluate the allocation of teaching resources  and
other certificated and uncertificated staff to the attendance
center  to  determine  whether  such allocation is consistent
with and  in  furtherance  of  instructional  objectives  and
school  programs  reflective  of  the school improvement plan
adopted   for   the   attendance   center;   and   to    make
recommendations  to the board, the general superintendent and
the  principal  concerning  any  reallocation   of   teaching
resources or other staff whenever the council determines that
any    such   reallocation   is   appropriate   because   the
qualifications of any existing staff at the attendance center
do not adequately match or support  instructional  objectives
or school programs which reflect the school improvement plan.
    9.  To  make  recommendations  to  the  principal and the
general   superintendent    concerning    their    respective
appointments,  after  August  31,  1989,  and  in  the manner
provided by Section 34-8 and Section 34-8.1,  of  persons  to
fill  any  vacant,  additional or newly created positions for
teachers at the attendance center or  at  attendance  centers
which  include  the  attendance  center  served  by the local
school council.
    10.  To request of the Board the manner in which training
and assistance shall be provided to the local school council.
Pursuant to  Board  guidelines  a  local  school  council  is
authorized  to direct the Board of Education to contract with
personnel or not-for-profit organizations not associated with
the school district to train or assist council  members.   If
training or assistance is provided by contract with personnel
or organizations not associated with the school district, the
period  of  training  or assistance shall not exceed 30 hours
during a given school year; person shall not be employed on a
continuous basis longer than said period and shall  not  have
been  employed  by  the Chicago Board of Education within the
preceding six months.  Council members shall receive training
in at least the following areas:
         1.  school budgets;
         2.  educational theory pertinent to  the  attendance
    center's  particular  needs, including the development of
    the  school  improvement   plan   and   the   principal's
    performance contract; and
         3.  personnel selection.
Council  members  shall,  to  the  greatest  extent possible,
complete such training within 90 days of election.
    11.  In accordance with systemwide  guidelines  contained
in  the  System-Wide  Educational Reform Goals and Objectives
Plan,  criteria  for  evaluation  of  performance  shall   be
established  for  local  school  councils  and  local  school
council  members.   If  a  local  school  council persists in
noncompliance with systemwide  requirements,  the  Board  may
impose   sanctions  and  take  necessary  corrective  action,
consistent with Section 34-8.3.
    12.  Each local school council shall comply with the Open
Meetings Act and the Freedom of Information Act.  Each  local
school  council  shall  issue  and  transmit  to  its  school
community   a  detailed  annual  report  accounting  for  its
activities  programmatically  and  financially.   Each  local
school council  shall  convene  at  least  2  well-publicized
meetings  annually  with  its entire school community.  These
meetings shall include presentation  of  the  proposed  local
school  improvement  plan, of the proposed school expenditure
plan, and the annual report, and shall provide an opportunity
for public comment.
    13.  Each local school council is encouraged  to  involve
additional  non-voting  members  of  the  school community in
facilitating the council's exercise of its responsibilities.
    14.  The local school council may adopt a school  uniform
or  dress  code policy that governs the attendance center and
that is necessary to maintain the orderly process of a school
function or prevent endangerment of student health or safety,
consistent with the  policies  and  rules  of  the  Board  of
Education. A school uniform or dress code policy adopted by a
local school council: (i) shall not be applied in such manner
as  to discipline or deny attendance to a transfer student or
any other student for noncompliance with that  policy  during
such  period of time as is reasonably necessary to enable the
student to acquire a school uniform or otherwise comply  with
the  dress  code  policy  that is in effect at the attendance
center into which the student's  enrollment  is  transferred;
and  (ii)  shall include criteria and procedures under  which
the local school council will accommodate  the  needs  of  or
otherwise  provide  appropriate resources to assist a student
from an indigent  family  in  complying  with  an  applicable
school  uniform or dress code policy. A student whose parents
or  legal  guardians  object  on  religious  grounds  to  the
student's compliance with an  applicable  school  uniform  or
dress  code  policy shall not be required to comply with that
policy if the student's parents or legal guardians present to
the local school council  a  signed  statement  of  objection
detailing the grounds for the objection.
    15.  All  decisions  made  and actions taken by the local
school council in the exercise of its powers and duties shall
comply with State and federal laws, all applicable collective
bargaining  agreements,  court  orders  and  rules   properly
promulgated by the Board.
    15a.  To  grant,  in  accordance  with  board  rules  and
policies,  the  use of assembly halls and classrooms when not
otherwise needed, including lighting, heat,  and  attendants,
for  public  lectures,  concerts,  and  other educational and
social activities.
    15b.  To approve, in  accordance  with  board  rules  and
policies, receipts and expenditures for all internal accounts
of  the  attendance  center,  and to approve all fund-raising
activities by nonschool organizations  that  use  the  school
building.
    16.  (Blank).
    17.   Names and addresses of local school council members
shall be a matter of public record.
(Source:  P.A.  88-85;  88-511;  88-686, eff. 1-24-95; 89-15,
eff. 5-30-95;  89-610,  eff.  8-6-96;  89-636,  eff.  8-9-96;
revised 9-9-96.)

    Section  2-140.   The  Illinois Banking Act is amended by
changing Sections 2, 13, 47, and 48 as follows:

    (205 ILCS 5/2) (from Ch. 17, par. 302)
    Sec. 2.  General definitions.  In this  Act,  unless  the
context  otherwise  requires, the following words and phrases
shall have the following meanings:
    "Accommodation party" shall have the meaning ascribed  to
that term in Section 3-415 of the Uniform Commercial Code.
    "Action"  in  the sense of a judicial proceeding includes
recoupments, counterclaims, set-off, and any other proceeding
in which rights are determined.
    "Affiliate facility" of  a  bank  means  a  main  banking
premises  or  branch of another commonly owned bank. The main
banking premises or any branch of a bank may be an "affiliate
facility" with respect to one or more  other  commonly  owned
banks.
    "Appropriate  federal  banking  agency" means the Federal
Deposit Insurance Corporation, the Federal  Reserve  Bank  of
Chicago,  or  the  Federal  Reserve  Bank  of  St.  Louis, as
determined by federal law.
    "Bank" means any person doing a banking business  whether
subject to the laws of this or any other jurisdiction.
    A  "banking  house",  "branch",  "branch bank" or "branch
office" shall mean any place of business of a bank  at  which
deposits  are received, checks paid, or loans made, but shall
not include any place at which only records thereof are made,
posted, or kept.  A place of business at which  deposits  are
received,  checks  paid, or loans made shall not be deemed to
be a branch, branch bank, or branch office if  the  place  of
business  is  adjacent to and connected with the main banking
premises, or  if  it  is  separated  from  the  main  banking
premises  by not more than an alley; provided always that (i)
if the place of business is separated by an  alley  from  the
main  banking  premises there is a connection between the two
by public or private  way  or  by  subterranean  or  overhead
passage,  and  (ii) if the place of business is in a building
not wholly occupied by the bank, the place of business  shall
not  be within any office or room in which any other business
or service of any kind or nature other than the  business  of
the  bank  is conducted or carried on. A place of business at
which deposits are received, checks paid, or loans made shall
not be deemed to be a branch, branch bank, or  branch  office
(i)  of  any bank if the place is an automatic teller machine
established and maintained in accordance with paragraph  (16)
of Section 5 of this Act, or (ii) of any bank if the place is
a  point  of  sale  terminal  established  and  maintained in
accordance with paragraph (17) of Section 5 of this  Act,  or
(iii)  of  a  commonly  owned  bank by virtue of transactions
conducted at that place on behalf of the other commonly owned
bank under paragraph (23) of Section 5 of  this  Act  if  the
place  is  an  affiliate  facility  with respect to the other
bank.
    "Branch  of  an  out-of-state  bank"   means   a   branch
established or maintained in Illinois by an out-of-state bank
as  a  result  of  a  merger between an Illinois bank and the
out-of-state bank that occurs on or after May  31,  1997,  or
any branch established by the out-of-state bank following the
merger.
    "Call  report  fee"  means  the  fee  to  be  paid to the
Commissioner by each State bank pursuant to paragraph (a)  of
subsection (3) of Section 48 of this Act.
    "Capital"  includes  the aggregate of outstanding capital
stock and preferred stock.
    "Cash flow reserve account" means the account within  the
books  and  records  of  the  Commissioner  of Banks and Real
Estate  used  to  record  funds  designated  to  maintain   a
reasonable  Bank  and Trust Company Fund operating balance to
meet agency obligations on a timely basis.
    "Charter"  includes  the   original   charter   and   all
amendments thereto and articles of merger or consolidation.
    "Commissioner"  means  the Commissioner of Banks and Real
Estate or a person authorized by the Commissioner, the Office
of Banks and Real Estate Act, or  this  Act  to  act  in  the
Commissioner's stead.
    "Commonly  owned  banks"  means 2 or more banks that each
qualify as a bank subsidiary of the same bank holding company
pursuant to Section 18 of the Federal Deposit Insurance  Act;
"commonly  owned  bank"  refers to one of a group of commonly
owned banks but only with respect to one or more of the other
banks in the same group.
    "Community" means a city, village, or  incorporated  town
in this State.
    "Company"  means  a  corporation,  partnership,  business
trust,  association,  or  similar  organization  and,  unless
specifically excluded, includes a "State bank" and a "bank".
    "Consolidating bank" means a party to a consolidation.
    "Consolidation"  takes  place  when 2 or more banks, or a
trust company and a bank, are extinguished and  by  the  same
process  a  new  bank  is created, taking over the assets and
assuming the  liabilities  of  the  banks  or  trust  company
passing out of existence.
    "Continuing  bank"  means  a merging bank, the charter of
which becomes the charter of the resulting bank.
    "Converting bank" means a State bank converting to become
a national bank, or a national bank converting  to  become  a
State bank.
    "Converting   trust   company"   means  a  trust  company
converting to become a State bank.
    "Court" means a court of competent jurisdiction.
    "Eligible  depository  institution"  means   an   insured
savings  association  that  is in default, an insured savings
association that is in danger of default, a State or national
bank that is in default or a State or national bank  that  is
in  danger  of  default,  as  those terms are defined in this
Section, or a new bank as that term defined in Section  11(m)
of the Federal Deposit Insurance Act or a bridge bank as that
term  is  defined  in  Section  11(n)  of the Federal Deposit
Insurance Act or a new federal savings association authorized
under Section 11(d)(2)(f) of the  Federal  Deposit  Insurance
Act.
    "Fiduciary"     means     trustee,    agent,    executor,
administrator, committee, guardian  for  a  minor  or  for  a
person   under   legal   disability,   receiver,  trustee  in
bankruptcy, assignee for creditors, or any holder of  similar
position of trust.
    "Financial  institution"  means  a bank, savings and loan
association, credit union, or any licensee under the Consumer
Installment Loan Act or the Sales Finance Agency Act and, for
purposes of Section  48.3,  any  proprietary  network,  funds
transfer  corporation,  or  other entity providing electronic
funds transfer services,  or  any  corporate  fiduciary,  its
subsidiaries,  affiliates,  parent  company,  or  contractual
service provider that is examined by the Commissioner.
    "Foundation" means the Illinois Bank Examiners' Education
Foundation.
    "General  obligation"  means  a  bond,  note,  debenture,
security, or other instrument evidencing an obligation of the
issuer  that  is supported by the full available resources of
the issuer, the principal and interest of which is payable in
whole or in part by taxation.
    "Guarantee" means an undertaking or promise to answer for
payment of another's debt or performance of  another's  duty,
liability,  or  obligation  whether  "payment  guaranteed" or
"collection guaranteed".
    "In danger of default" means a State or national bank,  a
federally   chartered   insured  savings  association  or  an
Illinois state chartered  insured  savings  association  with
respect  to which the Commissioner or the appropriate federal
banking agency has  advised  the  Federal  Deposit  Insurance
Corporation that:
         (1)  in  the  opinion  of  the  Commissioner  or the
    appropriate federal banking agency,
              (A)  the State  or  national  bank  or  insured
         savings association is not likely to be able to meet
         the  demands  of  the  State  or  national bank's or
         savings  association's  obligations  in  the  normal
         course of business; and
              (B)  there is no reasonable prospect  that  the
         State   or   national   bank   or   insured  savings
         association will be able to meet  those  demands  or
         pay those obligations without federal assistance; or
         (2)  in  the  opinion  of  the  Commissioner  or the
    appropriate federal banking agency,
              (A)  the State  or  national  bank  or  insured
         savings  association  has  incurred  or is likely to
         incur losses that will deplete all or  substantially
         all of its capital; and
              (B)  there  is  no reasonable prospect that the
         capital of the State or  national  bank  or  insured
         savings  association  will  be  replenished  without
         federal assistance.
    "In  default"  means, with respect to a State or national
bank or an insured savings association, any  adjudication  or
other  official  determination  by  any  court  of  competent
jurisdiction,   the  Commissioner,  the  appropriate  federal
banking agency, or other public authority pursuant to which a
conservator, receiver, or other legal custodian is  appointed
for   a   State  or  national  bank  or  an  insured  savings
association.
    "Insured savings association" means any  federal  savings
association  chartered  under  Section  5 of the federal Home
Owners' Loan Act and any State savings association  chartered
under  the  Illinois  Savings  and  Loan  Act  of  1985  or a
predecessor Illinois  statute,  the  deposits  of  which  are
insured  by  the  Federal Deposit Insurance Corporation.  The
term also includes a  savings  bank  organized  or  operating
under the Savings Bank Act.
    "Insured   savings  association  in  recovery"  means  an
insured  savings  association  that  is   not   an   eligible
depository  institution  and  that  does not meet the minimum
capital requirements applicable with respect to  the  insured
savings association.
    "Issuer"  means  for  purposes of Section 33 every person
who shall have issued or  proposed  to  issue  any  security;
except  that  (1)  with  respect  to certificates of deposit,
voting trust certificates, collateral-trust certificates, and
certificates of  interest  or  shares  in  an  unincorporated
investment  trust not having a board of directors (or persons
performing similar functions), "issuer" means the  person  or
persons  performing  the  acts  and  assuming  the  duties of
depositor or manager pursuant to the provisions of the trust,
agreement, or  instrument  under  which  the  securities  are
issued; (2) with respect to trusts other than those specified
in  clause  (1)  above,  where  the  trustee is a corporation
authorized to accept and execute trusts, "issuer"  means  the
entrusters,  depositors,  or  creators  of  the trust and any
manager or committee charged with the  general  direction  of
the  affairs  of  the trust pursuant to the provisions of the
agreement or instrument creating  the  trust;  and  (3)  with
respect  to  equipment trust certificates or like securities,
"issuer" means the person to whom the equipment  or  property
is or is to be leased or conditionally sold.
    "Letter of credit" and "customer" shall have the meanings
ascribed  to  those  terms  in  Section  5-102 of the Uniform
Commercial Code.
    "Main  banking  premises"  means  the  location  that  is
designated in a bank's charter as its main office.
    "Maker or obligor" means for purposes of Section  33  the
issuer  of  a  security, the promisor in a debenture or other
debt security, or the mortgagor or grantor of a trust deed or
similar conveyance of a security interest in real or personal
property.
    "Merged bank" means  a  merging  bank  that  is  not  the
continuing,  resulting,  or surviving bank in a consolidation
or merger.
    "Merger" includes consolidation.
    "Merging bank" means a party to a bank merger.
    "Merging trust company" means a trust company party to  a
merger with a State bank.
    "Mid-tier  bank holding company" means a corporation that
(a) owns 100% of the issued and outstanding  shares  of  each
class   of   stock   of  a  State  bank,  (b)  has  no  other
subsidiaries, and (c) 100%  of  the  issued  and  outstanding
shares  of the corporation are owned by a parent bank holding
company.
    "Municipality"   means   any   municipality,    political
subdivision, school district, taxing district, or agency.
    "National  bank"  means  a  national  banking association
located in this  State  and  after  May  31,  1997,  means  a
national banking association without regard to its location.
    "Out-of-state bank" means a bank chartered under the laws
of  a  state  other  than Illinois, a territory of the United
States, or the District of Columbia.
    "Parent bank holding company" means a corporation that is
a bank holding  company  as  that  term  is  defined  in  the
Illinois  Bank  Holding  Company Act of 1957 and owns 100% of
the issued and outstanding shares of a mid-tier bank  holding
company.
    "Person"  means  an individual, corporation, partnership,
joint venture, trust, estate, or unincorporated association.
    "Public agency" means the State of Illinois, the  various
counties,   townships,   cities,   towns,   villages,  school
districts,  educational   service   regions,   special   road
districts,  public  water  supply  districts, fire protection
districts,  drainage  districts,   levee   districts,   sewer
districts,  housing authorities, the Illinois Bank Examiners'
Education Foundation, the  Chicago  Park  District,  and  all
other  political corporations or subdivisions of the State of
Illinois, whether now or hereafter  created,  whether  herein
specifically  mentioned  or  not,  and shall also include any
other state or any political corporation  or  subdivision  of
another state.
    "Public  funds" or "public money" means current operating
funds, special funds, interest and sinking funds,  and  funds
of  any kind or character belonging to, in the custody of, or
subject to the control or regulation of the United States  or
a  public  agency.   "Public  funds"  or "public money" shall
include funds  held  by  any  of  the  officers,  agents,  or
employees  of  the United States or of a public agency in the
course of their official duties and, with respect  to  public
money  of  the  United  States,  shall include Postal Savings
funds.
    "Published" means, unless the context requires otherwise,
the publishing of the notice or  instrument  referred  to  in
some  newspaper  of  general  circulation in the community in
which the bank is located at  least  once  each  week  for  3
successive  weeks.   Publishing shall be accomplished by, and
at the expense of,  the  bank  required  to  publish.   Where
publishing   is  required,  the  bank  shall  submit  to  the
Commissioner  that  evidence  of  the  publication   as   the
Commissioner shall deem appropriate.
    "Recorded" means the filing or recording of the notice or
instrument  referred  to in the office of the Recorder of the
county wherein the bank is located.
    "Resulting bank" means the bank resulting from  a  merger
or conversion.
    "Securities"  means  stocks, bonds, debentures, notes, or
other similar obligations.
    "Stand-by letter of credit"  means  a  letter  of  credit
under  which  drafts  are  payable  upon  the  condition  the
customer  has  defaulted in performance of a duty, liability,
or obligation.
    "State bank" means any banking  corporation  that  has  a
banking charter issued by the Commissioner under this Act.
    "State  Banking  Board"  means the State Banking Board of
Illinois.
    "Subsidiary" with respect to a specified company means  a
company  that  is  controlled  by the specified company.  For
purposes of paragraphs (8) and (12) of Section 5 of this Act,
"control" means the exercise  of  operational  or  managerial
control  of  a  corporation  by  the  bank,  either  alone or
together with other affiliates of the bank.
    "Surplus" means the aggregate  of  (i)  amounts  paid  in
excess of the par value of capital stock and preferred stock;
(ii)  amounts  contributed  other  than for capital stock and
preferred stock and allocated to  the  surplus  account;  and
(iii) amounts transferred from undivided profits.
    "Tier  1  Capital" and "Tier 2 Capital" have the meanings
assigned to those terms in regulations  promulgated  for  the
appropriate  federal banking agency of a state bank, as those
regulations are now or hereafter amended.
    "Trust company" means a corporation incorporated in  this
State for the purpose of accepting and executing trusts.
    "Undivided  profits"  means  undistributed  earnings less
discretionary transfers to surplus.
    "Unimpaired capital  and  unimpaired  surplus",  for  the
purposes  of paragraph (21) of Section 5 and Sections 32, 33,
34, 35.1, 35.2, and 47 of this Act means the sum of the state
bank's Tier 1 Capital and Tier  2  Capital  plus  such  other
shareholder  equity  as  may be included by regulation of the
Commissioner.   Unimpaired  capital  and  unimpaired  surplus
shall be calculated on the basis of  the  date  of  the  last
quarterly  call  report filed with the Commissioner preceding
the date of the transaction  for  which  the  calculation  is
made,  provided  that: (i) when a material event occurs after
the date of the last quarterly call  report  filed  with  the
Commissioner  that reduces or increases the bank's unimpaired
capital and unimpaired surplus  by  10%  or  more,  then  the
unimpaired capital and unimpaired surplus shall be calculated
from  the  date  of  the  material  event  for  a transaction
conducted after the date of the material event; and  (ii)  if
the  Commissioner determines for safety and soundness reasons
that a state bank should  calculate  unimpaired  capital  and
unimpaired  surplus  more  frequently  than  provided by this
paragraph, the Commissioner may by written notice direct  the
bank  to  calculate unimpaired capital and unimpaired surplus
at a more frequent interval.  In the case  of  a  state  bank
newly  chartered  under  Section 13 or a state bank resulting
from a merger, consolidation, or conversion under Sections 21
through 26 for which no preceding quarterly call  report  has
been  filed  with  the  Commissioner,  unimpaired capital and
unimpaired surplus shall be calculated for the first calendar
quarter on the basis of the effective date  of  the  charter,
merger, consolidation, or conversion.
(Source: P.A.  88-45;  88-271;  88-546; 89-208, eff. 9-29-95;
89-364, eff. 8-18-95; revised 9-18-95; 89-508,  eff.  7-3-96;
89-534,  eff.  1-1-97;  89-567,  eff.  7-26-96;  89-626, eff.
8-9-96; revised 8-27-96.)

    (205 ILCS 5/13) (from Ch. 17, par. 320)
    Sec. 13.  Issuance of charter.
    (a)  When the directors have  organized  as  provided  in
Section  12  of  this  Act,  and  the  capital  stock and the
preferred stock, if any, together with a surplus of not  less
than 50% of the capital, and a reserve for operating expenses
of  at  least  25% of the capital, has been all fully paid in
and a record of the same filed  with  the  Commissioner,  the
Commissioner  or  some competent person of the Commissioner's
appointment  shall  make  a  thorough  examination  into  the
affairs of the proposed bank, and if satisfied that  all  the
requirements of this Act have been complied with, and that no
intervening   circumstance   has   occurred   to  change  the
Commissioner's findings made pursuant to Section 10  of  this
Act,  upon  payment  into  the  Commissioner's  office of the
reasonable expenses of the examination, as determined by  the
Commissioner,   the   Commissioner   shall  issue  a  charter
authorizing the bank to commence business  as  authorized  in
this  Act.   All  charters  issued by the Commissioner or any
predecessor agency which chartered State banks, including any
charter  outstanding  as  of  September  1,  1989,  shall  be
perpetual.  For the 2 years after the Commissioner has issued
a charter to a bank, the bank shall request and  obtain  from
the  Commissioner prior written approval before it may change
senior management personnel or directors.
    The charter, duly certified by the Commissioner, shall be
recorded, and the original  or  a  certified  copy  shall  be
evidence  in  all  courts  and  places  of  the existence and
authority of the bank to do business.  Upon the recording  of
the  charter the bank shall be deemed fully organized and may
proceed  to  do  business.   The  Commissioner  may,  in  the
Commissioner's  discretion,  withhold  the  issuing  of   the
charter  when the Commissioner has reason to believe that the
bank  is  organized  for  any   purpose   other   than   that
contemplated by this Act or that a commission or fee has been
paid  in  connection  with the sale of the stock of the bank.
The  Commissioner  shall  revoke  the   charter   and   order
liquidation  in  the  event that the bank does not commence a
general banking business within one year from the date of the
issuance of the charter, unless a request has been submitted,
in writing, to the Commissioner  for  an  extension  and  the
request  has  been  approved.   After  commencing  a  general
banking   business,  a  bank,  upon  written  notice  to  the
Commissioner, may change its name.
    (b) (1)  The Commissioner may also issue a charter  to  a
bank   that   is   owned   exclusively  by  other  depository
institutions or depository institution holding companies  and
is  organized  to engage exclusively in providing services to
or  for  other   depository   institutions,   their   holding
companies, and the officers, directors, and employees of such
institutions  and  companies,  and in providing correspondent
banking  services  at  the  request   of   other   depository
institutions  or their holding companies (also referred to as
a "bankers' bank").
    (2)  A bank chartered pursuant to  paragraph  (1)  shall,
except   as   otherwise   specifically   determined   by  the
Commissioner, be vested with the same rights  and  privileges
and  subject to the same duties, restrictions, penalties, and
liabilities now or hereafter imposed under this Act.
    (c)  A bank chartered under this Act  after  November  1,
1985,  and an out-of-state bank that merges with a State bank
and establishes or maintains a branch in this State after May
31, 1997, shall obtain  from  and,  at  all  times  while  it
accepts  or  retains  deposits,  maintain  with  the  Federal
Deposit  Insurance Corporation, or such other instrumentality
of or corporation chartered by  the  United  States,  deposit
insurance as authorized under federal law.
    (d) (i)  A  bank that has a banking charter issued by the
Commissioner under  this  Act  may,  pursuant  to  a  written
purchase and assumption agreement, transfer substantially all
of  its  assets  to  another  State  bank or national bank in
consideration, in whole or in part, for the transferee banks'
assumption of any part or all of  its  liabilities.   Such  a
transfer  shall  in no way be deemed to impair the charter of
the transferor bank or cause the transferor bank  to  forfeit
any   of   its  rights,  powers,  interests,  franchises,  or
privileges as a State bank, nor shall any voluntary reduction
in  the  transferor  bank's  activities  resulting  from  the
transfer have any such  effect;  provided,  however,  that  a
State  bank  that  transfers  substantially all of its assets
pursuant to this subsection (d) and  following  the  transfer
does  not  accept deposits and make loans, shall not have any
rights, powers, interests, franchises,  or  privileges  under
subsection  (15)  of Section 5 of this Act until the bank has
resumed accepting deposits and making loans.
    (ii)  The  fact  that  a  State  bank  does  not   resume
accepting deposits and making loans for a period of 24 months
commencing on September 11, 1989 or on a date of the transfer
of  substantially  all of a State bank's assets, whichever is
later, or such longer period as the Commissioner may allow in
writing, may be the basis for a finding by  the  Commissioner
under  Section  51  of  this  Act  that the bank is unable to
continue operations.
    (iii)  The authority provided by subdivision (i) of  this
subsection  (d)(i)  shall  terminate  on May 31, 1997, and no
bank that has transferred substantially  all  of  its  assets
pursuant  to  this subsection (d) shall continue in existence
after May 31, 1997.
(Source: P.A. 89-208, eff.  9-29-95;  89-567,  eff.  7-26-96;
89-603, eff. 8-2-96; revised 9-9-96.)

    (205 ILCS 5/47) (from Ch. 17, par. 358)
    Sec. 47.  Reports to Commissioner.
    (a)  All  State  banks  shall  make  a  full and accurate
statement of their  affairs  at  least  1  time  during  each
calendar  quarter  which shall be certified to, under oath by
the president, a vice-president or the cashier of such  bank.
If  the  statement  is  submitted  in  electronic  form,  the
Commissioner  may,  in  the  call for the report, specify the
manner in which the appropriate officer  of  the  bank  shall
certify  the  statement  of  affairs.  The statement shall be
according  to  the  form  which  may  be  prescribed  by  the
Commissioner  and  shall  exhibit   in   detail   information
concerning  such bank at the close of business of any day the
Commissioner may choose and designate  in  a  call  for  such
report.   Each  bank shall deliver its quarterly statement to
the location specified by the Commissioner within 30 calendar
days of the date of  the  call  for  such  reports.   If  the
quarterly  statement  is mailed, it must be postmarked within
the period prescribed for  delivery,  and  if  the  quarterly
statement  is  delivered  in  electronic form, the bank shall
generate and retain satisfactory proof that it has caused the
report to be  delivered  within  the  period  prescribed  for
delivery.  Within  60  calendar days after the Commissioner's
call for the fourth calendar quarter statement of affairs,  a
State  bank  shall  publish  an  annual  disclosure statement
setting  forth  the  information  required  by  rule  of  the
Commissioner.  The disclosure  statement  shall  contain  the
required  information  as  of  the  close of the business day
designated  by  the  Commissioner  for  the  fourth   quarter
statement  of  affairs.  Any bank failing to make and deliver
such statement or to  comply  with  any  provisions  of  this
Section   may   be  subject  to  a  penalty  payable  to  the
Commissioner of $100 for each day of noncompliance.
    (b)  In addition to the foregoing reports, any bank which
is the victim of a shortage of funds in excess of $10,000, an
apparent misapplication of the bank's funds  by  an  officer,
employee  or  director,  or  any  adverse  legal action in an
amount in excess of  10%  of  total  unimpaired  capital  and
unimpaired surplus of the bank, including but not limited to,
the  entry of an adverse money judgment against the bank or a
write-off  of  assets  of  the  bank,   shall   report   that
information  in  writing to the Commissioner within 7 days of
the occurrence.  Neither the bank, its  directors,  officers,
employees  or its agents, in the preparation or filing of the
reports required by subsection (b) of this Section, shall  be
subject to any liability for libel, slander, or other charges
resulting  from  information supplied in such reports, except
when the supplying of such information is done in  a  corrupt
or malicious manner or otherwise not in good faith.
(Source:  P.A.  89-505,  eff.  6-28-96; 89-567, eff. 7-26-96;
revised 8-28-96.)

    (205 ILCS 5/48) (from Ch. 17, par. 359)
    Sec. 48. Commissioner's powers; duties.  The Commissioner
shall have the powers and authority, and is charged with  the
duties  and  responsibilities  designated  in this Act, and a
State bank shall not be subject to any other visitorial power
other than as authorized by this Act, except those vested  in
the courts. In the performance of the Commissioner's duties:
    (1)  The  Commissioner shall call for statements from all
State banks as provided in  Section  47  at  least  one  time
during each calendar quarter.
    (2) (a)  The  Commissioner,  as often as the Commissioner
shall deem necessary or proper, and at  least  once  in  each
year,  shall  appoint a suitable person or persons to make an
examination of the affairs of every State bank,  except  that
for  every eligible State bank, as defined by regulation, the
Commissioner in lieu of an  annual  examination  every  other
year  shall accept the examination made by the eligible State
bank's appropriate federal banking agency pursuant to Section
111 of the Federal Deposit Insurance Corporation  Improvement
Act  of 1991, provided the appropriate federal banking agency
has made such an examination. A person so appointed shall not
be a stockholder or officer or employee  of  any  bank  which
that person may be directed to examine, and shall have powers
to  make  a  thorough examination into all the affairs of the
bank and in so doing to examine any of the officers or agents
or employees thereof on  oath  and  shall  make  a  full  and
detailed   report  of  the  condition  of  the  bank  to  the
Commissioner. In making the examination the  examiners  shall
include  an  examination of the affairs of all the affiliates
of the bank, as defined in subsection (b) of Section 35.2  of
this  Act,  as  shall  be  necessary  to  disclose  fully the
conditions of the affiliates, the relations between the  bank
and the affiliates and the effect of those relations upon the
affairs  of  the bank, and in connection therewith shall have
power to examine any of the officers, directors,  agents,  or
employees  of the affiliates on oath. After May 31, 1997, the
Commissioner may enter into cooperative agreements with state
regulatory  authorities  of  other  states  to  provide   for
examination  of  State bank branches in those states, and the
Commissioner may accept reports of examinations of State bank
branches  from  those  state  regulatory  authorities.  These
cooperative agreements may set forth the manner in which  the
other  state  regulatory  authorities  may be compensated for
examinations prepared for and submitted to the Commissioner.
    (b)  After May 31, 1997, the Commissioner  is  authorized
to examine, as often as the Commissioner shall deem necessary
or  proper, branches of out-of-state banks.  The Commissioner
may  establish  and  may  assess  fees  to  be  paid  to  the
Commissioner for examinations under this subsection (b).  The
fees shall be borne by the out-of-state bank, unless the fees
are borne by the state regulatory  authority  that  chartered
the   out-of-state  bank,  as  determined  by  a  cooperative
agreement between the Commissioner and the  state  regulatory
authority that chartered the out-of-state bank.
    (2.5)  Whenever   any   State  bank,  any  subsidiary  or
affiliate of a State bank, or after May 31, 1997, any  branch
of  an  out-of-state bank causes to be performed, by contract
or otherwise, any bank services for itself, whether on or off
its premises:
         (a)  that   performance   shall   be   subject    to
    examination  by the Commissioner to the same extent as if
    services were being performed by the bank or,  after  May
    31,  1997,  branch of the out-of-state bank itself on its
    own premises; and
         (b)  the bank or, after May 31, 1997, branch of  the
    out-of-state  bank  shall  notify the Commissioner of the
    existence of a service  relationship.   The  notification
    shall  be submitted with the first statement of condition
    (as required by Section 47 of this  Act)  due  after  the
    making  of the service contract or the performance of the
    service, whichever occurs first.  The Commissioner  shall
    be  notified  of  each  subsequent  contract  in the same
    manner.
    For purposes of this subsection  (2.5),  the  term  "bank
services"  means  services  such  as  sorting  and posting of
checks and deposits, computation and posting of interest  and
other credits and charges, preparation and mailing of checks,
statements,   notices,   and  similar  items,  or  any  other
clerical, bookkeeping, accounting,  statistical,  or  similar
functions  performed  for  a  State  bank,  including but not
limited to electronic data processing related to  those  bank
services.
    (3)  The expense of administering this Act, including the
expense  of  the  examinations  of State banks as provided in
this Act, shall to the extent of the amounts  resulting  from
the  fees  provided  for in paragraphs (a), (a-2), and (b) of
this subsection (3) be assessed  against  and  borne  by  the
State banks:
         (a)  Each  bank shall pay to the Commissioner a Call
    Report Fee which shall be paid in quarterly  installments
    equal to one-fourth of the sum of the annual fixed fee of
    $800,  plus  a  variable fee based on the assets shown on
    the quarterly statement of  condition  delivered  to  the
    Commissioner  in  accordance  with  Section  47  for  the
    preceding  quarter  according  to the following schedule:
    16¢ per $1,000 of the first $5,000,000 of  total  assets,
    15¢  per  $1,000 of the next $20,000,000 of total assets,
    13¢ per $1,000 of the next $75,000,000  of total  assets,
    9¢  per  $1,000 of the next $400,000,000 of total assets,
    7¢ per $1,000 of the next $500,000,000 of  total  assets,
    and   5¢   per   $1,000   of  all  assets  in  excess  of
    $1,000,000,000, of the State bank. The  Call  Report  Fee
    shall be calculated by the Commissioner and billed to the
    banks  for  remittance  at  the  time  of  the  quarterly
    statements  of  condition provided for in Section 47. The
    Commissioner may require payment of the fees provided  in
    this  Section  by  an  electronic transfer of funds or an
    automatic debit of an account of each of the State banks.
    In case more than one examination of any bank  is  deemed
    by  the  Commissioner  to be necessary in any fiscal year
    and is performed at his direction, the  Commissioner  may
    assess a reasonable additional fee to recover the cost of
    the  additional examination, but the additional fee shall
    not exceed the sum  of  the  remittances  from  the  Call
    Report  Fees  applicable  to  the 4 consecutive quarterly
    statements of condition immediately preceding the date of
    the additional examination.  In lieu of  the  method  and
    amounts   set   forth  in  this  paragraph  (a)  for  the
    calculation of the Call Report Fee, the Commissioner  may
    specify  by  rule  that  the Call Report Fees provided by
    this Section may be assessed semiannually or  some  other
    period and may provide in the rule the formula to be used
    for  calculating  and  assessing the periodic Call Report
    Fees to be paid by State banks.
         (a-1)  If in the  opinion  of  the  Commissioner  an
    emergency  exists or appears likely, the Commissioner may
    assign an examiner or examiners to monitor the affairs of
    a  State  bank   with   whatever   frequency   he   deems
    appropriate,  including but not limited to a daily basis.
    The reasonable and necessary expenses of the Commissioner
    during the period of the monitoring shall be borne by the
    subject bank.  The Commissioner shall furnish  the  State
    bank  a statement of time and expenses if requested to do
    so within 30 days of the  conclusion  of  the  monitoring
    period.
         (a-2)  On  and after January 1, 1990, the reasonable
    and  necessary  expenses  of  the   Commissioner   during
    examination   of   the  performance  of  electronic  data
    processing services under subsection (2.5) shall be borne
    by the banks for which the  services  are  provided.   An
    amount,  based  upon  a  fee  structure prescribed by the
    Commissioner, shall be paid by the banks  or,  after  May
    31,  1997,  branches  of out-of-state banks receiving the
    electronic data processing services along with  the  Call
    Report   Fee   assessed   under  paragraph  (a)  of  this
    subsection (3).
         (a-3)  After  May  31,  1997,  the  reasonable   and
    necessary expenses of the Commissioner during examination
    of the performance of electronic data processing services
    under  subsection  (2.5)  at  or on behalf of branches of
    out-of-state banks shall be  borne  by  the  out-of-state
    banks,  unless  those  expenses  are  borne  by the state
    regulatory authorities that  chartered  the  out-of-state
    banks,  as  determined  by cooperative agreements between
    the Commissioner and  the  state  regulatory  authorities
    that chartered the out-of-state banks.
         (b)  "Fiscal  year"  for purposes of this Section 48
    is defined as a period beginning July 1 of any  year  and
    ending  June  30 of the next year. The Commissioner shall
    receive for each fiscal year, commencing with the  fiscal
    year  ending June 30, 1987, a contingent fee equal to the
    lesser of the aggregate of the fees  paid  by  all  State
    banks  under  paragraph  (a)  of  subsection (3) for that
    year, or the amount, if any, whereby the aggregate of the
    administration expenses, as defined in paragraph (c), for
    that fiscal year exceeds the sum of the aggregate of  the
    fees  payable  by  all  State  banks  for that year under
    paragraph (a) of subsection (3), plus all  other  amounts
    collected  by  the  Commissioner  for that year under any
    other provision of this Act, plus the  aggregate  of  all
    fees  collected  for  that year by the Commissioner under
    the Corporate Fiduciary Act, excluding  the  receivership
    fees  provided  for  in  Section  5-10  of  the Corporate
    Fiduciary Act, and the Foreign Banking  Office  Act.  The
    aggregate  amount  of  the contingent fee thus arrived at
    for  any  fiscal  year  shall  be  apportioned   amongst,
    assessed  upon,  and  paid by the State banks and foreign
    banking   corporations,   respectively,   in   the   same
    proportion that the fee of each under  paragraph  (a)  of
    subsection  (3), respectively, for that year bears to the
    aggregate for that  year  of  the  fees  collected  under
    paragraph  (a) of subsection (3). The aggregate amount of
    the  contingent  fee,  and  the  portion  thereof  to  be
    assessed  upon  each  State  bank  and  foreign   banking
    corporation,  respectively,  shall  be  determined by the
    Commissioner and shall be  paid  by  each,  respectively,
    within  120 days of the close of the period for which the
    contingent fee  is  computed  and  is  payable,  and  the
    Commissioner  shall  give  20  days advance notice of the
    amount of the contingent fee payable by  the  State  bank
    and  of the date fixed by the Commissioner for payment of
    the fee.
         (c)  The "administration expenses"  for  any  fiscal
    year  shall mean the ordinary and contingent expenses for
    that year incident to making  the  examinations  provided
    for  by,  and  for otherwise administering, this Act, the
    Corporate Fiduciary Act, excluding the expenses paid from
    the Corporate Fiduciary Receivership account in the  Bank
    and  Trust  Company Fund, the Foreign Banking Office Act,
    the Electronic Fund Transfer Act, and the  Illinois  Bank
    Examiners'   Education   Foundation  Act,  including  all
    salaries  and  other  compensation  paid   for   personal
    services  rendered for the State by officers or employees
    of the State, including the Commissioner and  the  Deputy
    Commissioners,   all   expenditures   for  telephone  and
    telegraph charges, postage  and  postal  charges,  office
    stationery,  supplies  and services, and office furniture
    and equipment,  including  typewriters  and  copying  and
    duplicating  machines  and  filing equipment, surety bond
    premiums, and  travel  expenses  of  those  officers  and
    employees,  employees,  expenditures  or  charges for the
    acquisition, enlargement or improvement of,  or  for  the
    use  of,  any  office  space,  building, or structure, or
    expenditures  for  the   maintenance   thereof   or   for
    furnishing  heat,  light,  or power with respect thereto,
    all to the extent that those  expenditures  are  directly
    incidental  to  such examinations or administration.  The
    Commissioner shall not be required by paragraphs  (c)  or
    (d-1)  of  this  subsection (3) to maintain in any fiscal
    year's budget appropriated reserves for accrued  vacation
    and  accrued  sick  leave  that is required to be paid to
    employees of the Commissioner upon termination  of  their
    service  with  the Commissioner in an amount that is more
    than is reasonably anticipated to be  necessary  for  any
    anticipated  turnover in employees, whether due to normal
    attrition   or   due   to   layoffs,   terminations,   or
    resignations.
         (d)  The aggregate of  all  fees  collected  by  the
    Commissioner under this Act, the Corporate Fiduciary Act,
    or  the  Foreign  Banking Office Act on and after July 1,
    1979, shall be paid promptly after receipt of  the  same,
    accompanied  by  a  detailed  statement thereof, into the
    State treasury and shall be set apart in a  special  fund
    to  be known as the "Bank and Trust Company Fund", except
    as provided in paragraph (c) of subsection (11)  of  this
    Section.  The amount from time to time deposited into the
    Bank and Trust Company Fund shall be used to  offset  the
    ordinary  administrative  expenses of the Commissioner of
    Banks and Real Estate as defined in this Section. Nothing
    in this amendatory Act of 1979 shall  prevent  continuing
    the  practice  of  paying  expenses  involving  salaries,
    retirement,  social  security,  and  State-paid insurance
    premiums of State officers  by  appropriations  from  the
    General  Revenue Fund.  However, the General Revenue Fund
    shall be reimbursed for those payments made on and  after
    July  1,  1979,  by  an annual transfer of funds from the
    Bank and Trust Company Fund.
         (d-1)  Adequate funds shall be available in the Bank
    and Trust Company Fund to permit the  timely  payment  of
    administration  expenses.   In each fiscal year the total
    administration expenses shall be deducted from the  total
    fees  collected  by  the  Commissioner  and the remainder
    transferred into the Cash Flow  Reserve  Account,  unless
    the balance of the Cash Flow Reserve Account prior to the
    transfer  equals  or  exceeds  one-fourth  of  the  total
    initial  appropriations  from  the Bank and Trust Company
    Fund for the subsequent year, in which case the remainder
    shall be credited to  State  banks  and  foreign  banking
    corporations  and  applied  against  their  fees  for the
    subsequent year.  The amount credited to each State  bank
    and  foreign  banking  corporation  shall  be in the same
    proportion as the Call Report Fees paid by each  for  the
    year bear to the total Call Report Fees collected for the
    year.   If,  after  a  transfer  to the Cash Flow Reserve
    Account is made or  if  no  remainder  is  available  for
    transfer, the balance of the Cash Flow Reserve Account is
    less  than one-fourth of the total initial appropriations
    for the subsequent year and  the  amount  transferred  is
    less  than 5% of the total Call Report Fees for the year,
    additional amounts needed to make the transfer  equal  to
    5%  of  the  total Call Report Fees for the year shall be
    apportioned amongst, assessed upon, and paid by the State
    banks  and  foreign  banking  corporations  in  the  same
    proportion  that  the   Call   Report   Fees   of   each,
    respectively,  for the year bear to the total Call Report
    Fees collected for  the  year.   The  additional  amounts
    assessed  shall be transferred into the Cash Flow Reserve
    Account.  For  purposes  of  this  paragraph  (d-1),  the
    calculation  of  the  fees  collected by the Commissioner
    shall exclude  the  receivership  fees  provided  for  in
    Section 5-10 of the Corporate Fiduciary Act.
         (e)  The  Commissioner  may  upon request certify to
    any public record in his keeping and shall have authority
    to levy a reasonable charge for issuing certifications of
    any public record in his keeping.
         (f)  In addition to  fees  authorized  elsewhere  in
    this  Act,  the  Commissioner  may,  in connection with a
    review, approval, or  provision  of  a  service,  levy  a
    reasonable  charge  to  recover  the  cost of the review,
    approval, or service.
    (4)  Nothing contained in this Act shall be construed  to
limit  the obligation relative to examinations and reports of
any State bank, deposits in which are to any  extent  insured
by  the  United States or any agency thereof, nor to limit in
any way the powers of  the  Commissioner  with  reference  to
examinations and reports of that bank.
    (5)  The  nature  and  condition  of  the  assets  in  or
investment  of any bonus, pension, or profit sharing plan for
officers or employees of every State bank or, after  May  31,
1997,  branch  of  an out-of-state bank shall be deemed to be
included in the affairs of that State bank or  branch  of  an
out-of-state  bank subject to examination by the Commissioner
under the provisions of subsection (2) of this  Section,  and
if  the  Commissioner shall find from an examination that the
condition of or operation of the investments or assets of the
plan is unlawful, fraudulent, or unsafe, or that any  trustee
has   abused  his  trust,  the  Commissioner  shall,  if  the
situation so found by the Commissioner shall not be corrected
to his satisfaction within 60 days after the Commissioner has
given notice to the board of directors of the State  bank  or
out-of-state  bank  of  his findings, report the facts to the
Attorney General who shall  thereupon  institute  proceedings
against  the  State  bank  or out-of-state bank, the board of
directors thereof, or the trustees under  such  plan  as  the
nature of the case may require.
    (6)  The Commissioner shall have the power:
         (a)  To  promulgate reasonable rules for the purpose
    of administering the provisions of this Act.
         (b)  To   issue   orders   for   the   purpose    of
    administering  the  provisions  of  this Act and any rule
    promulgated in accordance with this Act.
         (c)  To appoint hearing officers to execute  any  of
    the powers granted to the Commissioner under this Section
    for  the  purpose  of administering this Act and any rule
    promulgated in accordance with this Act.
         (d)  To  subpoena   witnesses,   to   compel   their
    attendance,  to administer an oath, to examine any person
    under oath, and to require the production of any relevant
    books, papers, accounts, and documents in the  course  of
    and pursuant to any investigation being conducted, or any
    action being taken, by the Commissioner in respect of any
    matter relating to the duties imposed upon, or the powers
    vested  in, the Commissioner under the provisions of this
    Act or any rule promulgated in accordance with this Act.
         (e)  To conduct hearings.
    (7)  Whenever, in the opinion of  the  Commissioner,  any
director,  officer,  employee,  or  agent of a State bank or,
after May 31, 1997, of any branch  of  an  out-of-state  bank
shall  have violated any law, rule, or order relating to that
bank or shall have engaged in an unsafe or  unsound  practice
in conducting the business of that bank, the Commissioner may
issue an order of removal. The order shall be served upon the
director,  officer,  employee,  or agent. A copy of the order
shall be sent to  each  director  of  the  bank  affected  by
registered  mail.  The  person  affected  by  the  action may
request a hearing before the State Banking  Board  within  10
days  after  receipt  of  the  order of removal.  The hearing
shall be held by the Board within 30 days after  the  request
has  been  received  by  the  Board.  The  Board shall make a
determination approving, modifying, or disapproving the order
of the Commissioner as its final administrative decision.  If
a  hearing  is  held  by  the Board, the Board shall make its
determination within 60  days  from  the  conclusion  of  the
hearing. Any person affected by a decision of the Board under
this  subsection  (7)  of Section 48 of this Act may have the
decision reviewed only  under  and  in  accordance  with  the
Administrative  Review  Law  and  the  rules adopted pursuant
thereto. A copy of the order shall also be  served  upon  the
bank  of which he is a director, officer, employee, or agent,
whereupon he shall cease to be a director, officer, employee,
or agent of that bank.  The order and the  findings  of  fact
upon  which it is based shall not be made public or disclosed
to anyone except the director, officer,  employee,  or  agent
involved  and  the  directors of the bank involved, otherwise
than in connection with proceedings for  a  violation  of  or
failure  to  comply  with  this Section. The Commissioner may
institute a civil action against the  director,  officer,  or
agent of the State bank or, after May 31, 1997, of the branch
of  the out-of-state bank against whom any order provided for
by this subsection (7) of this Section 48  has  been  issued,
and   against   the  State  bank  or,  after  May  31,  1997,
out-of-state bank, to enforce compliance with  or  to  enjoin
any  violation  of the terms of the order. Any person who has
been removed by an  order  of  the  Commissioner  under  this
subsection  or Section 5-6 of the Corporate Fiduciary Act may
not thereafter serve as director, officer, employee, or agent
of any State bank or of any branch of any out-of-state  bank,
or  of  any corporate fiduciary, as defined in Section 1-5.05
of the Corporate Fiduciary Act, unless the  Commissioner  has
granted prior approval in writing.
    (8)  The Commissioner may impose civil penalties of up to
$10,000   against  any  person  for  each  violation  of  any
provision of this Act, any  rule  promulgated  in  accordance
with  this  Act,  any order of the Commissioner, or any other
action which in the Commissioner's discretion is an unsafe or
unsound banking practice.
    (9)  The Commissioner may impose civil penalties of up to
$100 against any person for the first failure to comply  with
reporting requirements set forth in the report of examination
of  the  bank  and  up  to $200 for the second and subsequent
failures to comply with those reporting requirements.
    (10)  All   final   administrative   decisions   of   the
Commissioner hereunder shall be subject  to  judicial  review
pursuant  to the provisions of the Administrative Review Law.
For matters involving administrative review, venue  shall  be
in either Sangamon County or Cook County.
    (11)  The endowment fund for the Illinois Bank Examiners'
Education Foundation shall be administered as follows:
         (a)  (Blank).
         (b)  The   Foundation   is   empowered   to  receive
    voluntary contributions,  gifts,  grants,  bequests,  and
    donations  on  behalf  of  the  Illinois  Bank Examiners'
    Education  Foundation  from  national  banks  and   other
    persons  for  the purpose of funding the endowment of the
    Illinois Bank Examiners' Education Foundation.
         (c)  The aggregate of all special  educational  fees
    collected  by  the  Commissioner and property received by
    the  Commissioner  on  behalf  of   the   Illinois   Bank
    Examiners'  Education  Foundation  under  this subsection
    (11) on or after June  30,  1986,  shall  be  either  (i)
    promptly paid after receipt of the same, accompanied by a
    detailed  statement  thereof, into the State Treasury and
    shall be set apart in a special fund to be known as  "The
    Illinois  Bank  Examiners' Education Fund" to be invested
    by either the Treasurer of the State of Illinois  in  the
    Public  Treasurers'  Investment  Pool  or  in  any  other
    investment  he  is  authorized to make or by the Illinois
    State Board of Investment as the board of trustees of the
    Illinois Bank Examiners' Education Foundation may  direct
    or  (ii)  deposited  into  an  account  maintained  in  a
    commercial bank or corporate fiduciary in the name of the
    Illinois Bank Examiners' Education Foundation pursuant to
    the  order  and direction of the Board of Trustees of the
    Illinois Bank Examiners' Education Foundation.
    (12)  (Blank).
(Source: P.A. 88-45; 88-289;  88-481;  88-546;  88-670,  eff.
12-2-94;  89-208, eff. 9-29-95; 89-317, eff. 8-11-95; 89-508,
eff. 7-3-96;  89-567,  eff.  7-26-96;  89-626,  eff.  8-9-96;
revised 9-9-96.)

    Section 2-145.  The Illinois Savings and Loan Act of 1985
is amended by changing Section 1-6 as follows:

    (205 ILCS 105/1-6) (from Ch. 17, par. 3301-6)
    Sec.  1-6.   General  corporate  powers.   An association
operating under this  Act  shall  be  a  body  corporate  and
politic  and  shall have all of the specific powers conferred
by this Act and, in addition thereto, the  following  general
powers:
    (a)  To  sue  and  be  sued,  complain  and defend in its
corporate name, and to have a common seal, which it may alter
or renew at pleasure;
    (b)  To   obtain   and   maintain   insurance   of    the
association's    withdrawable   capital   by   an   insurance
corporation as defined in this Act;
    (c)  Notwithstanding anything to the  contrary  contained
in  this  Act,  to  become  a member of the Federal Home Loan
Bank, and to have all of the powers granted to a  savings  or
thrift  institution  organized  under  the laws of the United
States and which is located and doing business in  the  State
of Illinois, subject to regulations of the Commissioner;
    (d)  To  act as a fiscal agent for the United States, the
State of Illinois or any department, branch, arm or agency of
the State or any unit of local government or school  district
in  the  State  when duly designated for that purpose, and as
agent to perform the reasonable functions as may be  required
of it;
    (e)  To  become  a member of or deal with any corporation
or agency of the United States or the State of  Illinois,  to
the   extent   that  the  agency  assists  in  furthering  or
facilitating the association's purposes or powers and to that
end to purchase stock or securities thereof or deposit  money
therewith,  and  to  comply  with  any  other  conditions  of
membership or credit;
    (f)  To  make  donations  in  reasonable  amounts for the
public welfare or for charitable,  scientific,  religious  or
educational purposes;
    (g)  To  adopt  and  operate reasonable insurance, bonus,
profit  sharing,  and  retirement  plans  for  officers   and
employees;   likewise,   directors   who  are  not  officers,
including,  but  not  limited  to,  advisory,  honorary,  and
emeritus directors, may participate in those plans;
    (h)  To reject any application for membership, to  retire
withdrawable  capital  by  enforced retirement as provided in
this Act and the by-laws, and to limit  the  issuance  of  or
payments   on  withdrawable  capital,  subject,  however,  to
contractual obligations;
    (i)  To purchase stock in  service  corporations  and  to
invest in any form of indebtedness of any service corporation
as  defined  in  this  Act,  subject  to  regulations  of the
Commissioner;
    (j)  To purchase stock of a corporation  whose  principal
purpose  is  to  operate  a  safe  deposit  company or escrow
service company;
    (k)  To act as Trustee or  Custodian  under  the  Federal
Self-Employed  Individuals' Tax Retirement Act of 1962 or any
amendments thereto or any other retirement account and invest
any funds held in such capacity in a savings account  of  the
institution;
    (l)  (Blank);
    (m)  To  establish,  maintain  and  operate  terminals as
authorized by the Electronic Fund Transfer Act and by Section
5  of  the  Illinois   Banking   Act.    The   establishment,
maintenance,  operation  and location of such terminals shall
be subject to the approval of the Commissioner;
    (n)  Subject to  the  approval  and  regulations  of  the
Commissioner,  an  association  may purchase or assume all or
any part of the assets or liabilities of an eligible  insured
bank;
    (o)  To  purchase from a bank, as defined in Section 2 of
the Illinois Banking Act, an  insubstantial  portion  of  the
total  deposits  of an insured bank.  For the purpose of this
subparagraph, "insubstantial portion of the  total  deposits"
shall have the same meaning as provided in Section 5(d)(2)(D)
of the Federal Deposit Insurance Act;
    (p)  To effect an acquisition of or conversion to another
financial   institution   pursuant  to  Section  205  of  the
Financial Institutions Reform, Recovery and  Enforcement  Act
of 1989;
    (q)  To pledge its assets:
         (1)  to enable it to act as an agent for the sale of
    obligations of the United States;
         (2)  to secure deposits;
         (3)  to  secure  deposits of money whenever required
    by the National Bankruptcy Act;
         (4)  to qualify under Section 2-9 of  the  Corporate
    Fiduciary Act; and
         (5)  to  secure  trust  funds  commingled  with  the
    institution's funds, whether deposited by the institution
    or  an  affiliate  of  the institution, as required under
    Section 2-8 of the Corporate Fiduciary Act; and
    (r)  To provide temporary  periodic  service  to  persons
residing  in  a  bona  fide  nursing  home,  senior citizens'
retirement home, or long-term care facility; and
    (s)  To purchase for its own account shares of stock of a
bankers' bank, described in Section 13(b)(1) of the  Illinois
Banking  Act,  on the same terms and conditions as a bank may
purchase such shares.  In no event shall the total amount  of
such  stock  held  by  an  association  in such bankers' bank
exceed 10% of its capital and  surplus  (including  undivided
profits)  and  in  no event shall an association acquire more
than 5% of any class of voting securities  of  such  bankers'
bank; and.
    (t)  (s)  To effect a conversion to a State bank pursuant
to the provisions of the Illinois Banking Act.
(Source: P.A.  88-481;  89-74,  eff.  6-30-95;  89-310,  eff.
1-1-96;  89-317,  eff. 8-11-95; 89-355, eff. 8-17-95; 89-567,
eff. 7-26-96;  89-603,  eff.  8-2-96;  89-626,  eff.  8-9-96;
revised 9-13-96.)

    Section  2-150.   The  Savings  Bank  Act  is  amended by
changing Section 1008 as follows:

    (205 ILCS 205/1008) (from Ch. 17, par. 7301-8)
    Sec. 1008. General corporate powers.
    (a)  A savings bank operating under this Act shall  be  a
body corporate and politic and shall have all of the specific
powers  conferred  by  this  Act and in addition thereto, the
following general powers:
         (1)  To sue and be sued, complain, and defend in its
    corporate name and to have a common seal,  which  it  may
    alter or renew at pleasure.
         (2)  To  obtain  and maintain insurance by a deposit
    insurance corporation as defined in this Act.
         (3)  To act as a fiscal agent for the United States,
    the State of Illinois or any department, branch, arm,  or
    agency  of  the  State or any unit of local government or
    school district in the State, when  duly  designated  for
    that   purpose,   and  as  agent  to  perform  reasonable
    functions as may be required of it.
         (4)  To  become  a  member  of  or  deal  with   any
    corporation  or  agency of the United States or the State
    of Illinois, to the extent that  the  agency  assists  in
    furthering  or facilitating its purposes or powers and to
    that end to  purchase  stock  or  securities  thereof  or
    deposit  money  therewith,  and  to comply with any other
    conditions of membership or credit.
         (5)  To make donations in reasonable amounts for the
    public welfare or for charitable, scientific,  religious,
    or educational purposes.
         (6)  To  adopt  and  operate  reasonable  insurance,
    bonus,  profit sharing, and retirement plans for officers
    and  employees  and  for  directors  including,  but  not
    limited to, advisory, honorary, and  emeritus  directors,
    who are not officers or employees.



         (7)  To  reject  any  application for membership; to
    retire  deposit  accounts  by  enforced   retirement   as
    provided  in  this  Act  and the bylaws; and to limit the
    issuance of, or payments on, deposit  accounts,  subject,
    however, to contractual obligations.
         (8)  To  purchase  stock in service corporations and
    to invest in any form  of  indebtedness  of  any  service
    corporation   as   defined   in   this  Act,  subject  to
    regulations of the Commissioner.
         (9)  To  purchase  stock  of  a  corporation   whose
    principal purpose is to operate a safe deposit company or
    escrow service company.
         (10)  To   exercise  all  the  powers  necessary  to
    qualify as a trustee or custodian under federal or  State
    law,  provided  that  the authority to accept and execute
    trusts is subject to  the  provisions  of  the  Corporate
    Fiduciary  Act and to the supervision of those activities
    by the Commissioner of Banks and Real Estate.
         (11)  (Blank).
         (12)  To establish, maintain, and operate  terminals
    as  authorized  by the Electronic Fund Transfer Act.  The
    establishment, maintenance, operation,  and  location  of
    those  terminals  shall be subject to the approval of the
    Commissioner.
         (13)  Pledge its assets:
              (A)  to enable it to act as agent for the  sale
         of obligations of the United States;
              (B)  to secure deposits;
              (C)  to   secure  deposits  of  money  whenever
         required by the National Bankruptcy Act;
              (D)  to  qualify  under  Section  2-9  of   the
         Corporate Fiduciary Act; and
              (E)  to  secure trust funds commingled with the
         savings  bank's  funds,  whether  deposited  by  the
         savings bank or an affiliate of the savings bank, as
         required  under  Section  2-8   of   the   Corporate
         Fiduciary Act.
         (14)  To  accept for payment at a future date not to
    exceed one year from the date of acceptance, drafts drawn
    upon it by  its  customers;  and  to  issue,  advise,  or
    confirm  letters of credit authorizing holders thereof to
    draw drafts upon it or its correspondents.
         (15)  Subject   to   the    regulations    of    the
    Commissioner, to own and lease personal property acquired
    by  the  savings  bank  at  the  request of a prospective
    lessee and, upon the agreement of that person,  to  lease
    the personal property.
         (16)  To  establish  temporary service booths at any
    International Fair in this State that is approved by  the
    United  States Department of Commerce for the duration of
    the international fair for the  purpose  of  providing  a
    convenient  place for foreign trade customers to exchange
    their  home  countries'  currency  into   United   States
    currency  or the converse.  To provide temporary periodic
    service to persons residing in a bona fide nursing  home,
    senior  citizens'  retirement  home,  or  long-term  care
    facility.    These  powers  shall  not  be  construed  as
    establishing a new place or change of  location  for  the
    savings bank providing the service booth.
         (17)  To    indemnify   its   officers,   directors,
    employees, and agents,  as  authorized  for  corporations
    under  Section  8.75  of the Business Corporations Act of
    1983.
         (18)  To provide data processing services to  others
    on a for-profit basis.
         (19)  To   utilize   any  electronic  technology  to
    provide customers with home banking services.
         (20)  Subject   to   the    regulations    of    the
    Commissioner,  to  enter  into  an  agreement to act as a
    surety.
         (21)  Subject   to   the    regulations    of    the
    Commissioner,   to  issue  credit  cards,  extend  credit
    therewith, and otherwise  engage  in  or  participate  in
    credit card operations.
         (22)  To  purchase  for  its  own  account shares of
    stock of a bankers' bank, described in  Section  13(b)(1)
    of  the  Illinois  Banking  Act,  on  the  same terms and
    conditions as a bank may purchase  such  shares.   In  no
    event  shall  the  total  amount  of such stock held by a
    savings bank an association in such bankers' bank  exceed
    10%  of  its  capital  and  surplus  (including undivided
    profits)  and  in  no  event  shall  a  savings  bank  an
    association acquire more than 5% of any class  of  voting
    securities of such bankers' bank.
    (b)  If  this  Act  fails to provide specific guidance in
matters  of  corporate  governance,  the  provisions  of  the
Business Corporation Act of 1983 may be used.
(Source: P.A. 88-112; 88-481; 88-670,  eff.  12-2-94;  89-74,
eff.  6-30-95;  89-310,  eff.  1-1-96;  89-317, eff. 8-11-95;
89-355, eff.  8-17-95;  89-508,  eff.  7-3-96;  89-603,  eff.
8-2-96; 89-626, eff. 8-9-96; revised 9-9-96.)

    Section 2-155.  The Corporate Fiduciary Act is amended by
changing Section 3-3 as follows:

    (205 ILCS 620/3-3) (from Ch. 17, par. 1553-3)
    Sec. 3-3.  Successor trustee.
    (a)  If  any  corporate fiduciary merges into, or becomes
consolidated with, another corporate fiduciary  qualified  to
administer  trusts  or  is succeeded in its trust business by
any corporate fiduciary by purchase or  otherwise;  or  if  a
bank  holding  company  causes  a  subsidiary,  qualified  to
administer  trusts,  to  succeed  to part or all of the trust
business of any other subsidiary of  the  same  bank  holding
company,  the  surviving,  consolidated,  successor corporate
fiduciary or subsidiary shall become successor  fiduciary  in
place   of   such  predecessor  corporate  fiduciary,  unless
expressly  prohibited  by  the  provisions   of   the   trust
instrument, with all the rights, powers and duties which were
granted   to   or   imposed  on  such  predecessor  corporate
fiduciary.
    (b)  (Blank).
    (c)  Notwithstanding  any  other  provision  of  law,   a
corporate  fiduciary  may  delegate  to any of its affiliates
qualified to administer trusts, any or all fiduciary  duties,
actions  or  decisions,  discretionary  or otherwise, and the
delegating corporate  fiduciary  shall  not  be  required  to
review  any  delegated  actions  or  decisions  taken  by the
affiliate.  The term "affiliate" means any  state  bank,  any
national  bank,  any trust company, or any other corporation,
which that is qualified to act as a fiduciary in this or  any
other  state,  and  which  that  is  a  member  of  the  same
affiliated  group  (within the meaning of Section 1504 of the
Internal Revenue Code of 1986, as amended).
(Source: P.A. 89-205,  eff.  1-1-96;  89-364,  eff.  8-18-95;
89-567, eff. 7-26-96; 89-686, eff. 6-1-97; revised 1-15-97.)

    Section  2-160.  The Promissory Note and Bank Holiday Act
is amended by changing Section 17 as follows:

    (205 ILCS 630/17) (from Ch. 17, par. 2201)
    Sec. 17. Holidays.
    (a)  The following days shall be legal  holidays  in  the
State  of  Illinois  upon  which  day  a bank may, but is not
required to, remain closed:
    the first day of January (New Year's Day);
    the third Monday in January (observance of Martin  Luther
King, Jr.'s birthday);
    the twelfth day in February (Abraham Lincoln's birthday);
    the third Monday in February (Presidents Day);
    the   first   Monday  in  March  (observance  of  Casimir
Pulaski's birthday);
    the Friday preceding Easter Sunday (Good Friday);
    the last Monday of May (Memorial Day);
    the fourth day of July (Independence Day);
    the first Monday in September (Labor Day);
    the second Monday in October (Columbus Day);
    the eleventh day of November (Veterans' Day);
    the fourth Thursday in November (Thanksgiving Day);
    the twenty-fifth day in December (Christmas Day);
    the days upon which the general elections for members  of
the House of Representatives are held, and any day proclaimed
by  the  Governor  of this State as a legal holiday.  From 12
o'clock noon to 12 o'clock midnight of each Saturday shall be
considered a half holiday.  In addition to such holidays  and
half-holidays,  a  bank  may  select  one  day of the week to
remain closed, as provided in subsection (b) of this Section.
    (b)  Any bank doing business within this State may select
any one day of the week to remain closed on a  regular  basis
upon  adoption  of  a resolution by the board of directors of
such bank designating the day selected and  upon  filing  and
publishing a copy of such resolution as hereinafter required.
Any such resolution shall be deemed effective for the purpose
of  this  Section  only  when a copy thereof, certified by an
officer having charge of the records of such bank,  is  filed
with the Recorder of the county in which such bank is located
and  published  once  each  week  for 3 successive weeks in a
newspaper  of  general  circulation  in  such  county.   Such
publication shall be accomplished by, and at the expense  of,
the  bank,  and  the bank shall submit to the Commissioner of
Banks and Real Estate such evidence of the publication as the
Commissioner shall  deem  appropriate.   Any  such  selection
shall  remain  in  full  force and effect until a copy of the
later resolution of the board  of  directors  of  such  bank,
certified  in  like  manner, terminating or altering any such
prior selection shall be filed  and  published  in  the  same
manner as such prior resolution.
    (c)  If  an  occasion  arises when a state bank wishes to
remain closed on a particular day, other than a day on  which
the  bank has selected to remain closed on a regular basis as
provided in this Section, such state bank may  remain  closed
on such an occasion after first sending to the Commissioner a
copy  of  a  resolution  adopted  by  the  board of directors
authorizing the bank to remain closed on  such  occasion  and
notice  of the intent to remain closed on such occasion shall
be conspicuously posted in the  lobby  of  the  main  banking
office  and any branches of such bank for at least 3 weeks in
advance of such occasion.   Any  day  which  any  bank  doing
business  within  the  State  shall  select  to remain closed
pursuant to this Section shall, with respect to such bank, be
treated and considered as a Sunday.
    (d)  All legal holidays, the half holidays  and  any  day
selected  by a bank doing business within the State to remain
closed, shall, for all purposes whatsoever,  as  regards  the
presenting  for  payment  or  acceptance,  the  maturity  and
protesting  and  giving of notice of the dishonor of bills of
exchange,  bank  checks  and  promissory  notes   and   other
negotiable  or commercial paper or instrument, be treated and
considered as a  Sunday.  When  any  such  holidays  fall  on
Sunday,   the   Monday  next  following  shall  be  held  and
considered such holiday. All notes, bills, drafts, checks  or
other  evidence  of  indebtedness, falling due or maturing on
either of such days, shall be deemed as due or maturing  upon
the  day  following,  and  when  2 or more of these days come
together, or immediately succeeding  each  other,  then  such
instruments,  paper or indebtedness shall be deemed as due or
having matured on the day following the last of such days.
    (e)  Any act authorized,  required  or  permitted  to  be
performed at or by or with respect to any bank doing business
within  the  State  on  a day which it has selected to remain
closed under this Section may be so  performed  on  the  next
succeeding business day and no liability or loss of rights of
any kind shall result from such delay.
    (f)  Nothing  in  this Act shall in any manner affect the
validity  of,  or  render  void  or  voidable,  the  payment,
certification, or acceptance of a check or  other  negotiable
instrument, or any other transaction by a bank in this State,
because  done  or performed on any Saturday, Sunday, holiday,
or any day selected by a bank to remain closed, or during any
time other than regular banking hours; but no  bank  in  this
State,  which  by law or custom is entitled to remain open or
to close for the whole or any part of any day selected by  it
to  remain  open  or  to  close, is compelled to close, or to
remain open for the transaction of business or to perform any
of the acts or  transactions  aforesaid  except  at  its  own
option.
(Source:  P.A.  89-508,  eff.  7-3-96;  89-567, eff. 7-26-96;
revised 9-10-96.)

    Section 2-165.  The Nursing Home Care Act is  amended  by
changing Section 1-113 as follows:

    (210 ILCS 45/1-113) (from Ch. 111 1/2, par. 4151-113)
    Sec.  1-113.   "Facility"  or  "long-term  care facility"
means a private home, institution,  building,  residence,  or
any  other  place,  whether  operated for profit or not, or a
county home for  the  infirm  and  chronically  ill  operated
pursuant  to  Division  5-21 or 5-22 of the Counties Code, or
any similar institution operated by a  political  subdivision
of  the  State  of  Illinois,  which  provides,  through  its
ownership  or  management,  personal  care, sheltered care or
nursing for 3 or more persons, not related to  the  applicant
or  owner  by blood or marriage.  It includes skilled nursing
facilities and intermediate care facilities  as  those  terms
are  defined  in  Title  XVIII  and  Title XIX of the Federal
Social Security Act.
    "Facility" does not include the following:
    (1)  A home, institution, or other place operated by  the
federal  government  or  agency  thereof,  or by the State of
Illinois;
    (2)  A hospital, sanitarium, or other  institution  whose
principal  activity  or  business is the diagnosis, care, and
treatment  of  human  illness  through  the  maintenance  and
operation as organized facilities therefor, which is required
to be licensed under the Hospital Licensing Act;
    (3)  Any "facility for child  care"  as  defined  in  the
Child Care Act of 1969;
    (4)  Any  "Community  Living  Facility" as defined in the
Community Living Facilities Licensing Act;
    (5)  Any "community residential alternative"  as  defined
in the Community Residential Alternatives Licensing Act;
    (6)  Any  nursing  home  or sanatorium operated solely by
and for  persons  who  rely  exclusively  upon  treatment  by
spiritual  means through prayer, in accordance with the creed
or  tenets  of  any  well-recognized  church   or   religious
denomination.  However, such nursing home or sanatorium shall
comply with all local laws and rules relating  to  sanitation
and safety;
    (7)  Any  facility  licensed  by  the Department of Human
Services as  a  community-integrated  living  arrangement  as
defined   in  the  Community-Integrated  Living  Arrangements
Licensure and Certification Act;
    (8)  Any  "Supportive  Residence"  licensed   under   the
Supportive Residences Licensing Act; or
    (9)  Any  "supportive  living  facility" in good standing
with the  demonstration  project  established  under  Section
5-5.01a of the Illinois Public Aid Code.
(Source:  P.A.  89-499,  eff.  6-28-96;  89-507, eff. 7-1-97;
revised 8-26-96.)

    Section 2-170.  The Illinois Insurance Code is amended by
changing and renumbering multiple versions of Section 356r as
follows:

    (215 ILCS 5/356r)
    Sec. 356r.  Woman's principal health care provider.
    (a)  An individual or group policy of accident and health
insurance or a managed care plan amended, delivered,  issued,
or  renewed  in  this  State  after  November  14,  1996  the
effective  date  of  this Section that requires an insured or
enrollee to designate an individual to coordinate care or  to
control  access  to  health care services shall also permit a
female insured  or  enrollee  to  designate  a  participating
woman's principal health care provider.
    (b)  If  a  female  insured  or enrollee has designated a
woman's principal health care provider, then the  insured  or
enrollee must be given direct access to the woman's principal
health  care  provider  for services covered by the policy or
plan without the need  for  a  referral  or  prior  approval.
Nothing  shall prohibit the insurer or managed care plan from
requiring prior  authorization  or  approval  from  either  a
primary  care  provider  or the woman's principal health care
provider for referrals for additional care or services.
    (c)  For the purposes of this Section the following terms
are defined:
         (1)  "Woman's principal health care provider"  means
    a  physician  licensed to practice medicine in all of its
    branches specializing in obstetrics or gynecology.
         (2)  "Managed  care   entity"   means   any   entity
    including  a  licensed  insurance  company,  hospital  or
    medical  service  plan,  health maintenance organization,
    limited health service organization,  preferred  provider
    organization,  third  party administrator, an employer or
    employee organization,  or  any  person  or  entity  that
    establishes,   operates,   or   maintains  a  network  of
    participating providers.
         (3)  "Managed care plan" means a plan operated by  a
    managed  care  entity  that provides for the financing of
    health care services to  persons  enrolled  in  the  plan
    through:
              (A)  organizational  arrangements  for  ongoing
         quality  assurance,  utilization review programs, or
         dispute resolution; or
              (B)  financial incentives for persons  enrolled
         in  the  plan to use the participating providers and
         procedures covered by the plan.
         (4)  "Participating provider" means a physician  who
    has  contracted  with  an insurer or managed care plan to
    provide services to insureds or enrollees as  defined  by
    the contract.
    (d)  The  original  provisions of this Section became law
on July 17, 1996 and took  take  effect  November  14,  1996,
which is 120 days after becoming law.
(Source: P.A. 89-514; revised 1-2-97.)

    (215 ILCS 5/356s)
    Sec. 356s. 356r. Post-parturition care.  An individual or
group  policy  of accident and health insurance that provides
maternity coverage and  is  amended,  delivered,  issued,  or
renewed  after  the  effective date of this amendatory Act of
1996 shall provide coverage for the following:
         (1)  a  minimum  of  48  hours  of  inpatient   care
    following  a  vaginal  delivery  for  the  mother and the
    newborn, except as otherwise provided in this Section; or
         (2)  a  minimum  of  96  hours  of  inpatient   care
    following  a delivery by caesarian section for the mother
    and  newborn,  except  as  otherwise  provided  in   this
    Section.
    A  shorter length of hospital inpatient stay for services
related to maternity and newborn care may be provided if  the
attending  physician  licensed to practice medicine in all of
its branches determines, in accordance with the protocols and
guidelines developed by the American College of Obstetricians
and Gynecologists or the American Academy of Pediatrics, that
the mother and the newborn meet  the  appropriate  guidelines
for  that  length of stay based upon evaluation of the mother
and  newborn  and  the  coverage  and   availability   of   a
post-discharge  physician office visit or in-home nurse visit
to verify the condition of the infant in the first  48  hours
after discharge.
(Source: P.A. 89-513, eff. 9-15-96; revised 7-24-96.)

    Section  2-175.  The Child Care Act of 1969 is amended by
changing Section 7 as follows:

    (225 ILCS 10/7) (from Ch. 23, par. 2217)
    Sec. 7.  (a) The Department must  prescribe  and  publish
minimum  standards  for  licensing  that apply to the various
types of facilities for child care defined in  this  Act  and
that  are  equally  applicable to like institutions under the
control of the Department and to foster family homes used  by
and  under  the  direct  supervision  of the Department.  The
Department shall seek the advice and  assistance  of  persons
representative  of the various types of child care facilities
in establishing such standards.  The standards prescribed and
published under this Act  take  effect  as  provided  in  the
Illinois  Administrative Procedure Act, and are restricted to
regulations pertaining to:
         (1)  The operation and conduct of the  facility  and
    responsibility it assumes for child care;
         (2)  The  character,  suitability and qualifications
    of the applicant and other persons  directly  responsible
    for  the  care and welfare of children served.  All child
    day care center licensees and employees who are  required
    to  report  child  abuse  or neglect under the Abused and
    Neglected Child Reporting Act shall be required to attend
    training on  recognizing  child  abuse  and  neglect,  as
    prescribed by Department rules;
         (3)  The general financial ability and competence of
    the  applicant to provide necessary care for children and
    to maintain prescribed standards;
         (4)  The number of individuals or staff required  to
    insure  adequate  supervision  and  care  of the children
    received.  The standards shall provide  that  each  child
    care  institution,  maternity  center,  day  care center,
    group home, day care home, and group day care home  shall
    have  on  its  premises  during its hours of operation at
    least one staff member certified in  first  aid,  in  the
    Heimlich maneuver and in cardiopulmonary resuscitation by
    the  American Red Cross or other organization approved by
    rule of the Department.  Child welfare agencies shall not
    be  subject  to  such  a   staffing   requirement.    The
    Department  may  offer, or arrange for the offering, on a
    periodic  basis  in  each  community  in  this  State  in
    cooperation with the American  Red  Cross,  the  American
    Heart  Association  or  other  appropriate  organization,
    voluntary  programs  to  train operators of foster family
    homes and day care homes in first aid and cardiopulmonary
    resuscitation;
         (5)  The appropriateness,  safety,  cleanliness  and
    general  adequacy  of the premises, including maintenance
    of  adequate  fire  prevention   and   health   standards
    conforming  to  State laws and municipal codes to provide
    for the physical comfort, care and well-being of children
    received;
         (6)  Provisions  for  food,  clothing,   educational
    opportunities, program, equipment and individual supplies
    to  assure  the  healthy  physical,  mental and spiritual
    development of children served;
         (7)  Provisions to safeguard  the  legal  rights  of
    children served;
         (8)  Maintenance   of   records  pertaining  to  the
    admission, progress, health and  discharge  of  children,
    including,  for  day  care  centers  and  day care homes,
    records indicating  each  child  has  been  immunized  as
    required  by  State  regulations.   The  Department shall
    require proof that children enrolled in a  facility  have
    been immunized against Haemophilus Influenzae B (HIB);
         (9)  Filing of reports with the Department;
         (10)  Discipline of children;
         (11)  Protection  and  fostering  of  the particular
    religious faith of the children served;
         (12)  Provisions prohibiting firearms  on  day  care
    center   premises  except  in  the  possession  of  peace
    officers;
         (13)  Provisions prohibiting handguns  on  day  care
    home  premises except in the possession of peace officers
    or other adults who must possess a handgun as a condition
    of employment and who reside on the  premises  of  a  day
    care home;
         (14)  Provisions    requiring   that   any   firearm
    permitted on day care home premises, except  handguns  in
    the  possession  of  peace  officers,  shall be kept in a
    disassembled  state,  without   ammunition,   in   locked
    storage,  inaccessible  to  children  and that ammunition
    permitted on day care home  premises  shall  be  kept  in
    locked   storage   separate  from  that  of  disassembled
    firearms, inaccessible to children;
         (15)  Provisions requiring notification  of  parents
    or guardians enrolling children at a day care home of the
    presence  in  the  day  care  home  of  any  firearms and
    ammunition and of  the  arrangements  for  the  separate,
    locked storage of such firearms and ammunition.
    (b)  If,  in a facility for general child care, there are
children diagnosed as  mentally  ill,  mentally  retarded  or
physically  handicapped,  who are determined to be in need of
special mental treatment or of nursing care, or  both  mental
treatment  and  nursing  care,  the Department shall seek the
advice  and  recommendation  of  the  Department   of   Human
Services,   the   Department   of   Public  Health,  or  both
Departments regarding the residential treatment  and  nursing
care provided by the institution.
    (c)  The Department shall investigate any person applying
to  be licensed as a foster parent to determine whether there
is any evidence of current  drug  or  alcohol  abuse  in  the
prospective  foster family.  The Department shall not license
a person as a foster parent if drug or alcohol abuse has been
identified in the foster family or if a reasonable  suspicion
of  such abuse exists, except that the Department may grant a
foster parent license to  an  applicant  identified  with  an
alcohol  or  drug  problem  if the applicant has successfully
participated  in  an  alcohol  or  drug  treatment   program,
self-help group, or other suitable activities.
    (d)  The Department, in applying standards prescribed and
published,  as  herein  provided,  shall  offer  consultation
through  employed  staff or other qualified persons to assist
applicants and licensees in meeting and  maintaining  minimum
requirements  for  a  license  and  to help them otherwise to
achieve  programs  of  excellence  related  to  the  care  of
children served. Such consultation  shall  include  providing
information   concerning  education  and  training  in  early
childhood development to providers of day care home services.
The Department may provide or arrange for such education  and
training for those providers who request such assistance.
    (e)  The  Department shall distribute copies of licensing
standards to all licensees  and  applicants  for  a  license.
Each  licensee  or holder of a permit shall distribute copies
of  the  appropriate  licensing  standards  and   any   other
information   required   by  the  Department  to  child  care
facilities under its supervision.  Each licensee or holder of
a permit shall  maintain  appropriate  documentation  of  the
distribution  of  the standards.  Such documentation shall be
part of the records of the facility and subject to inspection
by authorized representatives of the Department.
    (f)  The Department shall prepare summaries of  day  care
licensing standards.  Each licensee or holder of a permit for
a   day   care  facility  shall  distribute  a  copy  of  the
appropriate summary and any other information required by the
Department, to the legal guardian of each child cared for  in
that  facility  at  the  time  when  the child is enrolled or
initially placed in the facility. The licensee or holder of a
permit for a  day  care  facility  shall  secure  appropriate
documentation   of   the  distribution  of  the  summary  and
brochure. Such documentation shall be a part of  the  records
of  the  facility  and subject to inspection by an authorized
representative of the Department.
    (g)  The Department shall distribute to each licensee and
holder  of  a  permit  copies  of  the  licensing  or  permit
standards  applicable  to  such  person's   facility.    Each
licensee  or  holder  of  a  permit  shall  make available by
posting at all times in a common or otherwise accessible area
a complete and current set of licensing  standards  in  order
that  all  employees  of  the  facility may have unrestricted
access to such standards.   All  employees  of  the  facility
shall have reviewed the standards and any subsequent changes.
Each   licensee   or   holder  of  a  permit  shall  maintain
appropriate documentation of the current review of  licensing
standards  by  all  employees.  Such records shall be part of
the records of the facility  and  subject  to  inspection  by
authorized representatives of the Department.
    (h)  Any   standards   involving  physical  examinations,
immunization, or medical treatment shall include  appropriate
exemptions  for  children whose parents object thereto on the
grounds that they conflict with the tenets and practices of a
recognized church or religious  organization,  of  which  the
parent  is an adherent or member, and for children who should
not be subjected to immunization for clinical reasons.
(Source: P.A.  89-274,  eff.  1-1-96;  89-507,  eff.  7-1-97;
89-648, eff. 8-9-96; revised 9-12-96.)

    Section  2-180.   The Health Care Worker Background Check
Act is amended by changing Sections 15 and 65 as follows:

    (225 ILCS 46/15)
    Sec. 15.  Definitions.  For the purposes of this Act, the
following definitions apply:
    "Applicant" means an individual seeking employment with a
health care employer who has received a bona fide conditional
offer of employment.
    "Conditional offer of employment" means a bona fide offer
of employment by a health  care  employer  to  an  applicant,
which  is  contingent  upon  the receipt of a report from the
Department of State Police indicating that the applicant does
not have a record  of  conviction  of  any  of  the  criminal
offenses enumerated in Section 25.
    "Direct  care"  means  the  provision  of nursing care or
assistance with meals, dressing, movement, bathing, or  other
personal  needs  or  maintenance,  or general supervision and
oversight  of  the  physical  and  mental  well-being  of  an
individual who is incapable of managing  his  or  her  person
whether  or  not  a  guardian  has  been  appointed  for that
individual.
    "Health care employer" means:
    (1)  the owner or licensee of any of the following:
         (i)  a community living facility, as defined in  the
    Community Living Facilities Act;
         (ii)  a  life  care facility, as defined in the Life
    Care Facilities Act;
         (iii)  a long-term care facility, as defined in  the
    Nursing Home Care Act;
         (iv)  a  home  health agency, as defined in the Home
    Health Agency Licensing Act;
         (v)  a full  hospice,  as  defined  in  the  Hospice
    Program Licensing Act;
         (vi)  a   hospital,   as  defined  in  the  Hospital
    Licensing Act;
         (vii)  a  community  residential   alternative,   as
    defined   in   the   Community  Residential  Alternatives
    Licensing Act;
         (viii)  a nurse agency,  as  defined  in  the  Nurse
    Agency Licensing Act;
         (ix)  a  respite  care  provider,  as defined in the
    Respite Program Act;
    (2)  a day training program certified by  the  Department
of Human Services;  or
    (3)  a  community  integrated living arrangement operated
by  a  community  mental  health  and  developmental  service
agency,  as  defined  in  the   Community-Integrated   Living
Arrangements Licensing and Certification Act.
    "Initiate" means the obtaining of the authorization for a
record  check  from  a  student, applicant, or employee.  The
educational entity or health care employer  or  its  designee
shall  transmit  all  necessary  information  and fees to the
Illinois State Police within 10 working days after receipt of
the authorization.
(Source: P.A. 89-197,  eff.  7-21-95;  89-507,  eff.  7-1-97;
89-674, eff. 8-14-96; revised 9-12-96.)

    (225 ILCS 46/65)
    Sec.  65.   Health Care Worker Task Force.  A Health Care
Worker Task Force shall be appointed no later  than  July  1,
1996,  to study and make recommendations on statutory changes
to this Act.
    (a)  The Task Force  shall  monitor  the  status  of  the
implementation    of   this   Act   and   monitor   complaint
investigations relating to this  Act  by  the  Department  on
Aging,   Department   of   Public   Health,   Department   of
Professional Regulation, and the Department of Human Services
to  determine the criminal background, if any, of health care
workers  who  have  had  findings   of   abuse,   theft,   or
exploitation.
    (b)  The    Task   Force   shall   make   recommendations
concerning:
         (1)  additional  health  care  positions,  including
    licensed  individuals  and  volunteers,  that  should  be
    included in the Act;
         (2)  development     of     a     transition      to
    fingerprint-based  State  and  federal  criminal  records
    checks for all direct care applicants or employees;
         (3)  development  of  a system that is affordable to
    applicants;
         (4)  modifications   to   the   list   of   offenses
    enumerated in Section 25; and
         (5)  any other necessary or desirable changes to the
    Act.
    (c)  The Task Force shall issue an interim report to  the
Governor  and  General  Assembly  no  later than December 31,
1996.  The  final  report  shall  be  issued  no  later  than
September  30,  1997,  and  shall  include specific statutory
changes recommended, if any.
    (d)  The Task Force shall be comprised of  the  following
members who shall serve without pay:
         (1)  a  chairman  knowledgeable  about  health  care
    issues, who shall be appointed by the Governor;
         (2)  the Director of the Department of Public Health
    or his or her designee;
         (3)  the  Director of the Department of State Police
    or his or her designee;
         (3.5)  the Director of the Department of Public  Aid
    or his or her designee;
         (4)  2  representatives of health care providers who
    shall be appointed by the Governor;
         (5)  2 representatives of health care employees  who
    shall be appointed by the Governor;
         (6)  a  representative of the general public who has
    an interest in health care who shall be appointed by  the
    Governor; and
         (7)  4   members   of   the  General  Assembly,  one
    appointed by the Speaker of the House, one  appointed  by
    the House Minority Leader, one appointed by the President
    of  the  Senate, and one appointed by the Senate Minority
    Leader.
(Source: P.A. 89-197,  eff.  7-21-95;  89-507,  eff.  7-1-97;
89-674, eff. 8-14-96; revised 9-12-96.)

    Section 2-185.  The Liquor Control Act of 1934 is amended
by changing Section 6-15 as follows:

    (235 ILCS 5/6-15) (from Ch. 43, par. 130)
    Sec.   6-15.  No  alcoholic  liquors  shall  be  sold  or
delivered in any building belonging to or under  the  control
of  the  State or any political subdivision thereof except as
provided in this Act.  The corporate authorities of any city,
village,  incorporated  town  or  township  may  provide   by
ordinance,  however,  that  alcoholic  liquor  may be sold or
delivered in any specifically designated  building  belonging
to  or  under the control of the municipality or township, or
in any building located on land  under  the  control  of  the
municipality;  provided  that such township complies with all
applicable local ordinances in any incorporated area  of  the
township.  Alcoholic  liquors may be delivered to and sold at
any  airport  belonging  to  or  under  the  control   of   a
municipality  of  more  than  25,000  inhabitants,  or in any
building owned by a park district organized  under  the  Park
District Code, subject to the approval of the governing board
of  the  district,  or  in any building or on any golf course
owned by a  forest  preserve  district  organized  under  the
Downstate  Forest  Preserve  District  Act,  subject  to  the
approval  of  the  governing  board  of  the  district, or in
Bicentennial Park, or on the premises of the City of  Mendota
Lake  Park located adjacent to Route 51 in Mendota, Illinois,
or on the premises of Camden Park in Milan, Illinois,  or  in
the  community center owned by the City of Loves Park that is
located at 1000 River Park Drive in Loves Park, Illinois, or,
in connection with  the  operation  of  an  established  food
serving  facility  during  times  when  food is dispensed for
consumption on the premises, and at  the  following  aquarium
and  museums  located  in  public  parks:  Art  Institute  of
Chicago,  Chicago  Academy  of  Sciences,  Chicago Historical
Society, Field Museum of Natural History, Museum  of  Science
and  Industry,  DuSable  Museum  of African American History,
John G. Shedd Aquarium and Adler Planetarium, or at  Lakeview
Museum  of Arts and Sciences in Peoria, or in connection with
the operation of the facilities  of  the  Chicago  Zoological
Society or the Chicago Horticultural Society on land owned by
the  Forest  Preserve  District  of  Cook  County,  or in any
building located on land owned by the Chicago  Park  District
if  approved  by  the  Park District Commissioners, or on any
land used for a golf course or for recreational purposes  and
owned by the Illinois International Port District if approved
by  the  District's  governing board, or at any airport, golf
course, faculty center, or facility in which  conference  and
convention  type  activities take place belonging to or under
control of any State university or public  community  college
district,  provided  that  with  respect  to  a  facility for
conference and convention type activities  alcoholic  liquors
shall  be  limited to the use of the convention or conference
participants  or  participants  in  cultural,  political   or
educational  activities held in such facilities, and provided
further that the faculty or staff of the State university  or
a  public  community  college  district,  or  members  of  an
organization  of  students,  alumni,  faculty or staff of the
State university or a public community college  district  are
active  participants in the conference or convention, or by a
catering establishment which has  rented  facilities  from  a
board of trustees of a public community college district, or,
if  approved  by  the  District  board,  on land owned by the
Metropolitan Sanitary District of Greater Chicago and  leased
to  others  for a term of at least 20 years.  Nothing in this
Section precludes the sale or delivery of alcoholic liquor in
the form of original packaged goods in  premises  located  at
500  S.  Racine  in  Chicago  belonging  to the University of
Illinois  and  used  primarily  as  a  grocery  store  by   a
commercial  tenant  during  the term of a lease that predates
the  University's  acquisition  of  the  premises;  but   the
University  shall  have  no  power  or  authority  to  renew,
transfer, or extend the lease with terms allowing the sale of
alcoholic  liquor;  and the sale of alcoholic liquor shall be
subject to  all  local  laws  and  regulations.    After  the
acquisition  by  Winnebago  County of the property located at
404 Elm Street in Rockford,  a  commercial  tenant  who  sold
alcoholic liquor at retail on a portion of the property under
a  valid  license at the time of the acquisition may continue
to do so for so long as the tenant and the County  may  agree
under  existing  or  future leases, subject to all local laws
and regulations regarding the sale of alcoholic liquor.  Each
facility  shall  provide  dram  shop  liability  in   maximum
insurance  coverage  limits so as to save harmless the State,
municipality, State university, airport, golf course, faculty
center, facility in  which  conference  and  convention  type
activities   take   place,  park  district,  Forest  Preserve
District,  public  community  college   district,   aquarium,
museum,  or sanitary district from all financial loss, damage
or harm. Alcoholic liquors may be sold at retail in buildings
of golf courses owned by municipalities  in  connection  with
the  operation of an established food serving facility during
times  when  food  is  dispensed  for  consumption  upon  the
premises. Alcoholic liquors may be delivered to and  sold  at
retail  in  any  building owned by a fire protection district
organized under the Fire Protection  District  Act,  provided
that  such  delivery  and  sale  is  approved by the board of
trustees of the district,  and  provided  further  that  such
delivery  and  sale is limited to fundraising events and to a
maximum of 6 events per year.
    Alcoholic liquor may be delivered to and sold  at  retail
in the Dorchester Senior Business Center owned by the Village
of  Dolton  if the alcoholic liquor is sold or dispensed only
in connection with organized functions for which the  planned
attendance  is  20  or  more  persons,  and  if the person or
facility selling  or  dispensing  the  alcoholic  liquor  has
provided  dram  shop liability insurance in maximum limits so
as to hold harmless the Village of Dolton and the State  from
all financial loss, damage and harm.
    Alcoholic  liquors may be delivered to and sold at retail
in any building used as an Illinois State Armory provided:
         (i)  the Adjutant General's written consent  to  the
    issuance  of  a  license to sell alcoholic liquor in such
    building is filed with the Commission;
         (ii)  the alcoholic liquor is sold or dispensed only
    in connection with organized functions  held  on  special
    occasions;
         (iii)  the  organized  function is one for which the
    planned attendance is 25 or more persons; and
         (iv)  the  facility  selling   or   dispensing   the
    alcoholic   liquors  has  provided  dram  shop  liability
    insurance in maximum limits so as to  save  harmless  the
    facility and the State from all financial loss, damage or
    harm.
    Alcoholic  liquors may be delivered to and sold at retail
in the Chicago Civic Center, provided that:
         (i)  the written  consent  of  the  Public  Building
    Commission  which administers the Chicago Civic Center is
    filed with the Commission;
         (ii)  the alcoholic liquor is sold or dispensed only
    in connection with organized functions  held  on  special
    occasions;
         (iii)  the  organized  function is one for which the
    planned attendance is 25 or more persons;
         (iv)  the  facility  selling   or   dispensing   the
    alcoholic   liquors  has  provided  dram  shop  liability
    insurance in maximum limits so as to  hold  harmless  the
    Civic  Center, the City of Chicago and the State from all
    financial loss, damage or harm; and
         (v)  all applicable local  ordinances  are  complied
    with.
    Alcoholic  liquors  may  be  delivered  or  sold  in  any
building  belonging  to  or  under  the  control of any city,
village or incorporated town  where  more  than  75%  of  the
physical properties of the building is used for commercial or
recreational  purposes,  and  the  building is located upon a
pier extending into or over the waters of a navigable lake or
stream or on  the  shore  of  a  navigable  lake  or  stream.
Alcoholic  liquor  may be sold in buildings under the control
of the Department of Natural Resources when  written  consent
to the issuance of a license to sell alcoholic liquor in such
buildings  is  filed with the Commission by the Department of
Natural Resources. Notwithstanding  any  other  provision  of
this Act, alcoholic liquor sold by a United States Army Corps
of    Engineers    or   Department   of   Natural   Resources
concessionaire  who  was  operating  on  June  1,  1991   for
on-premises consumption only is not subject to the provisions
of  Articles  IV  and  IX.  Beer  and wine may be sold on the
premises of the Joliet Park District  Stadium  owned  by  the
Joliet  Park District when written consent to the issuance of
a license to sell beer and wine in  such  premises  is  filed
with  the  local  liquor  commissioner  by  the  Joliet  Park
District.  Beer  and  wine  may  be  sold in buildings on the
grounds of State veterans' homes when written consent to  the
issuance of a license to sell beer and wine in such buildings
is  filed  with the Commission by the Department of Veterans'
Affairs, and the facility shall provide dram  shop  liability
in  maximum  insurance  coverage  limits  so  as  to save the
facility harmless from all financial loss,  damage  or  harm.
Such  liquors  may  be  delivered to and sold at any property
owned  or  held  under  lease  by  a  Metropolitan  Pier  and
Exposition   Authority   or   Metropolitan   Exposition   and
Auditorium Authority.
    Beer and wine may be sold and dispensed  at  professional
sporting  events  and  at  professional  concerts  and  other
entertainment  events  conducted  on  premises  owned  by the
Forest Preserve District  of  Kane  County,  subject  to  the
control  of  the  District Commissioners and applicable local
law, provided that dram shop liability insurance is  provided
at  maximum  coverage  limits  so  as  to  hold  the District
harmless from all financial loss, damage and harm.
    Nothing in  this  Section  shall  preclude  the  sale  or
delivery  of  beer  and wine at a State or county fair or the
sale or delivery of beer or  wine  at  a  city  fair  in  any
otherwise lawful manner.
    Alcoholic  liquors  may be sold at retail in buildings in
State parks under the control of the  Department  of  Natural
Resources, provided:
         a.  the  State park has overnight lodging facilities
    with some restaurant facilities or, not having  overnight
    lodging facilities, has restaurant facilities which serve
    complete luncheon and dinner or supper meals,
         b.  consent  to  the  issuance  of a license to sell
    alcoholic liquors in the buildings has  been  filed  with
    the  commission  by  the Department of Natural Resources,
    and
         c.  the alcoholic liquors are sold by the State park
    lodge or restaurant concessionaire only during the  hours
    from   11   o'clock   a.m.  until  12  o'clock  midnight.
    Notwithstanding  any  other  provision   of   this   Act,
    alcoholic  liquor  sold  by  the State park or restaurant
    concessionaire  is  not  subject  to  the  provisions  of
    Articles IV and IX.
    Alcoholic liquors may be sold at retail in  buildings  on
properties  under  the  control  of the Historic Preservation
Agency provided:
         a.  the property has  overnight  lodging  facilities
    with  some restaurant facilities or, not having overnight
    lodging facilities, has restaurant facilities which serve
    complete luncheon and dinner or supper meals,
         b.  consent to the issuance of  a  license  to  sell
    alcoholic  liquors  in  the buildings has been filed with
    the commission by the Historic Preservation Agency, and
         c.  the alcoholic liquors are sold by the  lodge  or
    restaurant  concessionaire  only during the hours from 11
    o'clock a.m. until 12 o'clock midnight.
    The sale of alcoholic liquors pursuant  to  this  Section
does   not  authorize  the  establishment  and  operation  of
facilities commonly called taverns, saloons,  bars,  cocktail
lounges,  and  the  like  except  as  a  part  of  lodge  and
restaurant facilities in State parks or golf courses owned by
Forest  Preserve  Districts  with  a  population of less than
3,000,000 or municipalities or park districts.
    Alcoholic  liquors  may  be  sold  at   retail   in   the
Springfield  Administration  Building  of  the  Department of
Transportation and the Illinois State Armory in  Springfield;
provided,  that  the  controlling  government  authority  may
consent to such sales only if
         a.  the    request    is   from   a   not-for-profit
    organization;
         b.  such sales would not impede normal operations of
    the departments involved;
         c.  the not-for-profit  organization  provides  dram
    shop  liability  in maximum insurance coverage limits and
    agrees to defend, save harmless and indemnify  the  State
    of Illinois from all financial loss, damage or harm;
         d.  no such sale shall be made during normal working
    hours of the State of Illinois; and
         e.  the consent is in writing.
    Alcoholic  liquors  may be sold at retail in buildings in
recreational areas of river conservancy districts  under  the
control  of, or leased from, the river conservancy districts.
Such sales are subject to  reasonable  local  regulations  as
provided  in  Article  IV;  however,  no such regulations may
prohibit  or  substantially  impair  the  sale  of  alcoholic
liquors on Sundays or Holidays.
    Alcoholic liquors may  be  provided  in  long  term  care
facilities  owned or operated by a county under Division 5-21
or 5-22 of the Counties Code, when approved by  the  facility
operator  and  not  in  conflict  with the regulations of the
Illinois Department of Public Health,  to  residents  of  the
facility  who  have  had  their  consumption of the alcoholic
liquors provided approved in writing by a physician  licensed
to practice medicine in all its branches.
    Alcoholic  liquors  may  be delivered to and dispensed in
State housing assigned to  employees  of  the  Department  of
Corrections. No person shall furnish or allow to be furnished
any  alcoholic  liquors to any prisoner confined in any jail,
reformatory, prison or house  of  correction  except  upon  a
physician's prescription for medicinal purposes.
    Alcoholic  liquors  may be sold at retail or dispensed at
the Willard Ice Building in Springfield, at the State Library
in Springfield, and at Illinois State  Museum  facilities  by
(1)  an agency of the State, whether legislative, judicial or
executive, provided that such agency  first  obtains  written
permission  to  sell  or  dispense alcoholic liquors from the
controlling government authority, or by (2) a  not-for-profit
organization, provided that such organization:
         a.  Obtains  written  consent  from  the controlling
    government authority;
         b.  Sells or dispenses the alcoholic  liquors  in  a
    manner  that  does  not impair normal operations of State
    offices located in the building;
         c.  Sells or dispenses  alcoholic  liquors  only  in
    connection with an official activity in the building;
         d.  Provides, or its catering service provides, dram
    shop  liability  insurance in maximum coverage limits and
    in which the carrier agrees to defend, save harmless  and
    indemnify  the State of Illinois from all financial loss,
    damage or harm arising out of the selling  or  dispensing
    of alcoholic liquors.
    Nothing  in  this  Act  shall  prevent  a  not-for-profit
organization  or  agency  of  the  State  from  employing the
services of a  catering  establishment  for  the  selling  or
dispensing of alcoholic liquors at authorized functions.
    The  controlling government authority for the Willard Ice
Building  in  Springfield  shall  be  the  Director  of   the
Department  of Revenue.  The controlling government authority
for Illinois State Museum facilities shall be the Director of
the  Illinois  State  Museum.   The  controlling   government
authority  for  the State Library in Springfield shall be the
Secretary of State.
    Alcoholic liquors may be delivered to and sold at  retail
or  dispensed at any facility, property or building under the
jurisdiction of the Historic Preservation  Agency  where  the
delivery,  sale  or  dispensing  is  by  (1) an agency of the
State, whether legislative, judicial or  executive,  provided
that  such agency first obtains written permission to sell or
dispense alcoholic  liquors  from  a  controlling  government
authority,  or  by (2) a not-for-profit organization provided
that such organization:
         a.  Obtains written  consent  from  the  controlling
    government authority;
         b.  Sells  or  dispenses  the alcoholic liquors in a
    manner that does not  impair  normal  workings  of  State
    offices  or  operations located at the facility, property
    or building;
         c.  Sells or dispenses  alcoholic  liquors  only  in
    connection    with    an   official   activity   of   the
    not-for-profit organization in the facility, property  or
    building;
         d.  Provides, or its catering service provides, dram
    shop  liability  insurance in maximum coverage limits and
    in which the carrier agrees to defend, save harmless  and
    indemnify  the State of Illinois from all financial loss,
    damage or harm arising out of the selling  or  dispensing
    of alcoholic liquors.
    The  controlling  government  authority  for the Historic
Preservation Agency shall be the  Director  of  the  Historic
Preservation Agency.
    Alcoholic  liquors  may be sold at retail or dispensed at
the James R. Thompson Center in Chicago and 222 South College
Street in Springfield, Illinois by (1) a commercial tenant or
subtenant conducting business on the premises under  a  lease
made  pursuant  to  Section 67.24 of the Civil Administrative
Code of Illinois, provided that such tenant or subtenant  who
sells  or  dispenses  alcoholic  liquors  shall  procure  and
maintain  dram  shop  liability insurance in maximum coverage
limits and in which the carrier agrees to  defend,  indemnify
and  save  harmless  the State of Illinois from all financial
loss, damage or harm arising out of the sale or dispensing of
alcoholic liquors, or by (2) an agency of the State,  whether
legislative, judicial or executive, provided that such agency
first   obtains   written  permission  to  sell  or  dispense
alcoholic liquors from the  Director  of  Central  Management
Services,  or  by (3) a not-for-profit organization, provided
that such organization:
         a.  Obtains written consent from the  Department  of
    Central Management Services;
         b.  Sells  or  dispenses  the alcoholic liquors in a
    manner that does not impair normal  operations  of  State
    offices located in the building;
         c.  Sells  or  dispenses  alcoholic  liquors only in
    connection with an official activity in the building;
         d.  Provides, or its catering service provides, dram
    shop liability insurance in maximum coverage  limits  and
    in  which the carrier agrees to defend, save harmless and
    indemnify the State of Illinois from all financial  loss,
    damage  or  harm arising out of the selling or dispensing
    of alcoholic liquors.
    Nothing  in  this  Act  shall  prevent  a  not-for-profit
organization or  agency  of  the  State  from  employing  the
services  of  a  catering  establishment  for  the selling or
dispensing of alcoholic liquors at  functions  authorized  by
the Director of Central Management Services.
    Alcoholic  liquors  may  be  sold  or  delivered  at  any
facility  owned  by  the Illinois Sports Facilities Authority
provided that dram shop liability  insurance  has  been  made
available  in  a form, with such coverage and in such amounts
as the Authority reasonably determines is necessary.
    Alcoholic liquors may be sold at retail or  dispensed  at
the  Rockford  State  Office Building by (1) an agency of the
State, whether legislative, judicial or  executive,  provided
that  such agency first obtains written permission to sell or
dispense alcoholic liquors from  the  Department  of  Central
Management Services, or by (2) a not-for-profit organization,
provided that such organization:
         a.  Obtains  written  consent from the Department of
    Central Management Services;
         b.  Sells or dispenses the alcoholic  liquors  in  a
    manner  that  does  not impair normal operations of State
    offices located in the building;
         c.  Sells or dispenses  alcoholic  liquors  only  in
    connection with an official activity in the building;
         d.  Provides, or its catering service provides, dram
    shop  liability  insurance in maximum coverage limits and
    in which the carrier agrees to defend, save harmless  and
    indemnify  the State of Illinois from all financial loss,
    damage or harm arising out of the selling  or  dispensing
    of alcoholic liquors.
    Nothing  in  this  Act  shall  prevent  a  not-for-profit
organization  or  agency  of  the  State  from  employing the
services of a  catering  establishment  for  the  selling  or
dispensing  of  alcoholic  liquors at functions authorized by
the Department of Central Management Services.
    Alcoholic liquors may be sold or delivered in a  building
that is owned by McLean County, situated on land owned by the
county  in  the  City  of Bloomington, and used by the McLean
County Historical Society if the sale or delivery is approved
by  an  ordinance  adopted  by  the  county  board,  and  the
municipality  in  which  the  building  is  located  may  not
prohibit that sale or  delivery,  notwithstanding  any  other
provision  of  this  Section.  The regulation of the sale and
delivery of alcoholic liquor in a building that is  owned  by
McLean County, situated on land owned by the county, and used
by  the  McLean County Historical Society as provided in this
paragraph is an exclusive power and function of the State and
is a denial and limitation  under  Article  VII,  Section  6,
subsection (h) of the Illinois Constitution of the power of a
home rule municipality to regulate that sale and delivery.
    Alcoholic  liquors  may  be  sold  or  delivered  in  any
building  situated  on  land  held  in  trust  for any school
district organized under Article 34 of the  School  Code,  if
the  building is not used for school purposes and if the sale
or delivery is approved by the board of education.
    Alcoholic liquors may be sold or delivered  in  buildings
owned  by  the  Community Building Complex Committee of Boone
County,  Illinois  if  the  person  or  facility  selling  or
dispensing  the  alcoholic  liquor  has  provided  dram  shop
liability insurance with coverage and  in  amounts  that  the
Committee reasonably determines are necessary.
    Alcoholic  liquors  may  be  sold  or  delivered  in  the
building  located  at  1200 Centerville Avenue in Belleville,
Illinois and occupied by either the Belleville  Area  Special
Education  District  or  the Belleville Area Special Services
Cooperative.
(Source:  P.A. 88-652, eff.  9-16-94;  89-34,  eff.  6-23-95;
89-262,  eff.  8-10-95;  89-376,  eff.  8-18-95; 89-445, eff.
2-7-96; 89-502, eff. 6-28-96; 89-544, eff.  7-19-96;  89-626,
eff. 8-9-96; revised 8-19-96.)

    Section  2-190.   The Illinois Public Aid Code is amended
by changing Sections 5-5, 5-16.3, 11-9, and 14-8 as follows:

    (305 ILCS 5/5-5) (from Ch. 23, par. 5-5)
    Sec. 5-5.  Medical services. The Illinois Department,  by
rule,  shall  determine  the  quantity and quality of and the
rate of reimbursement for the medical  assistance  for  which
payment  will  be  authorized, and the medical services to be
provided, which may include all or part of the following: (1)
inpatient  hospital   services;   (2)   outpatient   hospital
services;  (3)  other  laboratory  and  X-ray  services;  (4)
skilled  nursing  home  services;  (5)  physicians'  services
whether  furnished  in  the  office,  the  patient's  home, a
hospital, a skilled nursing home, or elsewhere;  (6)  medical
care,  or  any  other  type  of  remedial  care  furnished by
licensed practitioners; (7) home health  care  services;  (8)
private  duty  nursing  service;  (9)  clinic  services; (10)
dental services; (11) physical therapy and related  services;
(12)  prescribed drugs, dentures, and prosthetic devices; and
eyeglasses prescribed by a physician skilled in the  diseases
of  the  eye,  or by an optometrist, whichever the person may
select; (13) other  diagnostic,  screening,  preventive,  and
rehabilitative  services;  (14) transportation and such other
expenses as may  be  necessary;  (15)  medical  treatment  of
sexual  assault  survivors,  as  defined in Section 1a of the
Sexual  Assault  Survivors  Emergency  Treatment   Act,   for
injuries  sustained  as  a  result  of  the  sexual  assault,
including  examinations  and  laboratory  tests  to  discover
evidence  which  may  be used in criminal proceedings arising
from the sexual assault; (16) the diagnosis and treatment  of
sickle  cell anemia; and (17) any other medical care, and any
other type of remedial care recognized under the laws of this
State, but not including abortions, or  induced  miscarriages
or  premature  births, unless, in the opinion of a physician,
such procedures are necessary for  the  preservation  of  the
life  of  the  woman  seeking  such  treatment,  or except an
induced premature birth intended to  produce  a  live  viable
child  and  such procedure is necessary for the health of the
mother or her unborn child. The Illinois Department, by rule,
shall  prohibit  any   physician   from   providing   medical
assistance  to anyone eligible therefor under this Code where
such  physician  has  been  found  guilty  of  performing  an
abortion procedure in a wilful and wanton manner upon a woman
who was not pregnant at the time such abortion procedure  was
performed.  The  term "any other type of remedial care" shall
include nursing care and nursing home service for persons who
rely on treatment by spiritual means alone through prayer for
healing.
    The Illinois Department of Public Aid shall  provide  the
following  services  to persons eligible for assistance under
this Article who are participating in education, training  or
employment  programs  operated  by  the  Department  of Human
Services as successor to the Department of Public Aid:
         (1)  dental services, which shall include but not be
    limited to prosthodontics; and
         (2)  eyeglasses prescribed by a physician skilled in
    the diseases of the eye, or by an optometrist,  whichever
    the person may select.
    The  Illinois  Department,  by  rule, may distinguish and
classify  the  medical  services  to  be  provided  only   in
accordance  with the classes of persons designated in Section
5-2.
    The Illinois Department shall authorize the provision of,
and  shall  authorize  payment  for,  screening  by  low-dose
mammography for the presence  of  occult  breast  cancer  for
women  35  years of age or older who are eligible for medical
assistance  under  this  Article,  as  follows:   a  baseline
mammogram for women 35 to 39 years of age; a mammogram  every
1  to  2 years, even if no symptoms are present, for women 40
to 49 years of age; and an  annual  mammogram  for  women  50
years  of  age  or  older.   All  screenings  shall include a
physical breast exam,  instruction  on  self-examination  and
information  regarding  the frequency of self-examination and
its value as a preventative tool.  As used in  this  Section,
"low-dose  mammography"  means  the  x-ray examination of the
breast   using   equipment   dedicated    specifically    for
mammography,  including  the  x-ray tube, filter, compression
device,  image  receptor,  and  cassettes,  with  an  average
radiation exposure delivery of less than one rad  mid-breast,
with 2 views for each breast.
    Any  medical  or  health  care provider shall immediately
recommend, to  any  pregnant  woman  who  is  being  provided
prenatal  services  and  is  suspected  of  drug  abuse or is
addicted as defined in the Alcoholism and  Other  Drug  Abuse
and  Dependency  Act,  referral  to  a  local substance abuse
treatment  provider  licensed  by  the  Department  of  Human
Services or to a licensed hospital which  provides  substance
abuse treatment services.  The Department of Public Aid shall
assure  coverage  for the cost of treatment of the drug abuse
or addiction for pregnant recipients in accordance  with  the
Illinois  Medicaid Program in conjunction with the Department
of Human Services.
    All medical providers  providing  medical  assistance  to
pregnant women under this Code shall receive information from
the Department on the availability of services under the Drug
Free  Families  with  a  Future  or  any  comparable  program
providing   case  management  services  for  addicted  women,
including information  on  appropriate  referrals  for  other
social  services  that  may  be  needed  by addicted women in
addition to treatment for addiction.
    The  Illinois  Department,  in   cooperation   with   the
Departments of Human Services (as successor to the Department
of Alcoholism and Substance Abuse) and Public Health, through
a   public   awareness   campaign,  may  provide  information
concerning  treatment  for  alcoholism  and  drug  abuse  and
addiction, prenatal health care, and other pertinent programs
directed at reducing the number of drug-affected infants born
to recipients of medical assistance.
    Neither the Illinois Department of  Public  Aid  nor  the
Department  of  Human  Services  shall sanction the recipient
solely on the basis of her substance abuse.
    The Illinois Department shall establish such  regulations
governing  the  dispensing  of  health  services  under  this
Article  as  it shall deem appropriate.  In formulating these
regulations the Illinois Department shall  consult  with  and
give substantial weight to the recommendations offered by the
Citizens  Assembly/Council  on  Public  Aid.  The  Department
should  seek  the  advice  of  formal  professional  advisory
committees   appointed   by  the  Director  of  the  Illinois
Department for the purpose of  providing  regular  advice  on
policy  and administrative matters, information dissemination
and  educational  activities  for  medical  and  health  care
providers, and consistency  in  procedures  to  the  Illinois
Department.
    The  Illinois  Department  may  develop and contract with
Partnerships of medical providers to arrange medical services
for  persons  eligible  under  Section  5-2  of  this   Code.
Implementation  of  this  Section  may  be  by  demonstration
projects  in certain geographic areas.  The Partnership shall
be represented by a sponsor organization.  The Department, by
rule,  shall   develop   qualifications   for   sponsors   of
Partnerships.   Nothing in this Section shall be construed to
require  that  the  sponsor   organization   be   a   medical
organization.
    The  sponsor must negotiate formal written contracts with
medical  providers  for  physician  services,  inpatient  and
outpatient hospital care, home health services, treatment for
alcoholism and substance abuse, and other services determined
necessary by the Illinois Department by rule for delivery  by
Partnerships.   Physician  services must include prenatal and
obstetrical care.  The Illinois  Department  shall  reimburse
medical   services  delivered  by  Partnership  providers  to
clients in target  areas  according  to  provisions  of  this
Article  and  the  Illinois Health Finance Reform Act, except
that:
         (1)  Physicians participating in a  Partnership  and
    providing  certain services, which shall be determined by
    the Illinois Department, to persons in areas  covered  by
    the  Partnership  may receive an additional surcharge for
    such services.
         (2)  The  Department  may  elect  to  consider   and
    negotiate   financial   incentives   to   encourage   the
    development of Partnerships and the efficient delivery of
    medical care.
         (3)  Persons   receiving  medical  services  through
    Partnerships may  receive  medical  and  case  management
    services  above  the  level  usually  offered through the
    medical assistance program.
    Medical providers  shall  be  required  to  meet  certain
qualifications  to  participate in Partnerships to ensure the
delivery   of   high   quality   medical   services.    These
qualifications shall be determined by rule  of  the  Illinois
Department   and   may  be  higher  than  qualifications  for
participation in the medical assistance program.  Partnership
sponsors may prescribe reasonable  additional  qualifications
for  participation  by medical providers, only with the prior
written approval of the Illinois Department.
    Nothing in this Section shall limit the  free  choice  of
practitioners,  hospitals,  and  other  providers  of medical
services by clients.
    The Department shall apply for a waiver from  the  United
States  Health Care Financing Administration to allow for the
implementation of Partnerships under this Section.
    The  Illinois  Department  shall  require   health   care
providers  to maintain records that document the medical care
and services provided to  recipients  of  Medical  Assistance
under  this  Article.   The Illinois Department shall require
health care providers to make available, when  authorized  by
the  patient,  in  writing,  the  medical records in a timely
fashion to other health care providers who  are  treating  or
serving  persons  eligible  for Medical Assistance under this
Article.   All  dispensers  of  medical  services  shall   be
required  to  maintain  and  retain business and professional
records sufficient  to  fully  and  accurately  document  the
nature,  scope,  details  and  receipt  of  the  health  care
provided  to  persons  eligible  for medical assistance under
this Code, in accordance with regulations promulgated by  the
Illinois  Department. The rules and regulations shall require
that proof of the receipt of  prescription  drugs,  dentures,
prosthetic  devices  and eyeglasses by eligible persons under
this Section accompany each claim for reimbursement submitted
by the dispenser of such medical services. No such claims for
reimbursement shall be approved for payment by  the  Illinois
Department without such proof of receipt, unless the Illinois
Department  shall have put into effect and shall be operating
a system of post-payment audit and review which shall,  on  a
sampling basis, be deemed adequate by the Illinois Department
to  assure  that such drugs, dentures, prosthetic devices and
eyeglasses for which payment is being made are actually being
received by eligible recipients. Within  90  days  after  the
effective  date  of this amendatory Act of 1984, the Illinois
Department shall establish  a  current  list  of  acquisition
costs   for  all  prosthetic  devices  and  any  other  items
recognized as medical  equipment  and  supplies  reimbursable
under  this Article and shall update such list on a quarterly
basis, except that the acquisition costs of all  prescription
drugs  shall be updated no less frequently than every 30 days
as required by Section 5-5.12.
    The rules and  regulations  of  the  Illinois  Department
shall require that a written statement including the required
opinion   of  a  physician  shall  accompany  any  claim  for
reimbursement  for  abortions,  or  induced  miscarriages  or
premature  births.   This  statement  shall   indicate   what
procedures were used in providing such medical services.
    The Illinois Department shall require that all dispensers
of medical services, other than an individual practitioner or
group  of  practitioners,  desiring  to  participate  in  the
Medical  Assistance program established under this Article to
disclose all financial, beneficial, ownership, equity, surety
or other  interests  in  any  and  all  firms,  corporations,
partnerships,   associations,   business  enterprises,  joint
ventures, agencies,  institutions  or  other  legal  entities
providing  any  form  of  health  care services in this State
under this Article.
    The Illinois Department may require that  all  dispensers
of  medical  services  desiring to participate in the medical
assistance program established under this  Article  disclose,
under  such  terms  and conditions as the Illinois Department
may  by  rule  establish,  all  inquiries  from  clients  and
attorneys  regarding  medical  bills  paid  by  the  Illinois
Department,  which   inquiries   could   indicate   potential
existence of claims or liens for the Illinois Department.
    The   Illinois   Department   shall  establish  policies,
procedures,  standards  and  criteria   by   rule   for   the
acquisition,   repair   and   replacement   of  orthotic  and
prosthetic devices and durable medical equipment.  Such rules
shall provide, but not be limited to, the following services:
(1) immediate  repair  or  replacement  of  such  devices  by
recipients  without  medical  authorization;  and (2) rental,
lease,  purchase  or  lease-purchase   of   durable   medical
equipment   in   a   cost-effective   manner,   taking   into
consideration  the  recipient's medical prognosis, the extent
of the recipient's needs, and the requirements and costs  for
maintaining  such  equipment.   Such  rules  shall  enable  a
recipient  to  temporarily  acquire  and  use  alternative or
substitute  devices   or   equipment   pending   repairs   or
replacements of any device or equipment previously authorized
for  such recipient by the Department. Rules under clause (2)
above shall not provide for  purchase  or  lease-purchase  of
durable medical equipment or supplies used for the purpose of
oxygen delivery and respiratory care.
    The  Department  shall  execute,  relative to the nursing
home prescreening project,  written  inter-agency  agreements
with  the  Department of Human Services and the Department on
Aging, to effect the following:  (i)  intake  procedures  and
common   eligibility  criteria  for  those  persons  who  are
receiving   non-institutional   services;   and   (ii)    the
establishment  and  development of non-institutional services
in areas of the State where they are not currently  available
or are undeveloped.
    The  Illinois  Department  shall  develop and operate, in
cooperation with other State Departments and agencies and  in
compliance  with  applicable  federal  laws  and regulations,
appropriate and effective systems of health  care  evaluation
and  programs  for  monitoring  of utilization of health care
services and facilities, as it affects persons  eligible  for
medical  assistance  under this Code. The Illinois Department
shall report regularly the results of the operation  of  such
systems  and  programs  to  the  Citizens Assembly/Council on
Public Aid to enable the Committee to ensure,  from  time  to
time, that these programs are effective and meaningful.
    The  Illinois  Department  shall  report  annually to the
General Assembly, no later than the second Friday in April of
1979 and each year thereafter, in regard to:
         (a)  actual statistics and trends in utilization  of
    medical services by public aid recipients;
         (b)  actual  statistics  and trends in the provision
    of the various medical services by medical vendors;
         (c)  current rate structures and proposed changes in
    those rate structures for the  various  medical  vendors;
    and
         (d)  efforts  at  utilization  review and control by
    the Illinois Department.
    The period covered by each report shall be  the  3  years
ending  on the June 30 prior to the report.  The report shall
include  suggested  legislation  for  consideration  by   the
General  Assembly.  The filing of one copy of the report with
the Speaker, one copy with the Minority Leader and  one  copy
with the Clerk of the House of Representatives, one copy with
the President, one copy with the Minority Leader and one copy
with   the  Secretary  of  the  Senate,  one  copy  with  the
Legislative Research Unit, such additional  copies  with  the
State  Government  Report Distribution Center for the General
Assembly as is required under paragraph (t) of Section  7  of
the  State  Library  Act  and  one  copy  with  the  Citizens
Assembly/Council  on  Public  Aid  or  its successor shall be
deemed sufficient to comply with this Section.
(Source: P.A.  88-670,  eff.  12-2-94;  89-21,  eff.  7-1-95;
89-507, eff. 7-1-97; 89-517, eff. 1-1-97; revised 8-26-96.)

    (305 ILCS 5/5-16.3)
    Sec. 5-16.3.  System for integrated health care services.
    (a)  It shall be the public policy of the State to adopt,
to  the  extent  practicable,  a  health  care  program  that
encourages  the  integration  of  health  care  services  and
manages the health care of program enrollees while preserving
reasonable  choice  within  a  competitive and cost-efficient
environment.  In  furtherance  of  this  public  policy,  the
Illinois Department shall develop and implement an integrated
health  care  program  consistent with the provisions of this
Section.  The provisions of this Section apply  only  to  the
integrated  health  care  program created under this Section.
Persons enrolled in the integrated health  care  program,  as
determined  by  the  Illinois  Department  by  rule, shall be
afforded a choice among health care delivery  systems,  which
shall  include,  but  are not limited to, (i) fee for service
care managed by a primary care physician licensed to practice
medicine in  all  its  branches,  (ii)  managed  health  care
entities,   and  (iii)  federally  qualified  health  centers
(reimbursed according  to  a  prospective  cost-reimbursement
methodology)  and  rural health clinics (reimbursed according
to  the  Medicare  methodology),  where  available.   Persons
enrolled in the integrated health care program  also  may  be
offered indemnity insurance plans, subject to availability.
    For  purposes  of  this  Section,  a "managed health care
entity" means a health maintenance organization or a  managed
care community network as defined in this Section.  A "health
maintenance   organization"   means   a   health  maintenance
organization   as   defined   in   the   Health   Maintenance
Organization Act.  A "managed care community  network"  means
an entity, other than a health maintenance organization, that
is  owned,  operated, or governed by providers of health care
services within this State  and  that  provides  or  arranges
primary, secondary, and tertiary managed health care services
under  contract  with  the Illinois Department exclusively to
enrollees of the integrated health care  program.  A  managed
care   community  network  may  contract  with  the  Illinois
Department to provide only pediatric health care services.  A
county  provider  as defined in Section 15-1 of this Code may
contract with the Illinois Department to provide services  to
enrollees  of the integrated health care program as a managed
care community  network  without  the  need  to  establish  a
separate   entity   that  provides  services  exclusively  to
enrollees of the integrated health care program and shall  be
deemed  a managed care community network for purposes of this
Code only to the extent of the provision of services to those
enrollees in conjunction  with  the  integrated  health  care
program.   A  county  provider  shall be entitled to contract
with the Illinois Department with respect to any  contracting
region  located  in  whole  or  in part within the county.  A
county provider shall not be required to accept enrollees who
do not reside within the county.
    Each managed care community network must demonstrate  its
ability to bear the financial risk of serving enrollees under
this  program.   The  Illinois Department shall by rule adopt
criteria  for  assessing  the  financial  soundness  of  each
managed care community network. These  rules  shall  consider
the  extent  to  which  a  managed  care community network is
comprised of providers who directly render  health  care  and
are  located  within  the  community  in  which  they seek to
contract rather than solely arrange or finance  the  delivery
of health care.  These rules shall further consider a variety
of  risk-bearing  and  management  techniques,  including the
sufficiency of quality assurance and  utilization  management
programs  and  whether  a  managed care community network has
sufficiently demonstrated  its  financial  solvency  and  net
worth.  The  Illinois  Department's criteria must be based on
sound actuarial, financial, and  accounting  principles.   In
adopting  these  rules, the Illinois Department shall consult
with the  Illinois  Department  of  Insurance.  The  Illinois
Department  is  responsible  for  monitoring  compliance with
these rules.
    This Section may not be implemented before the  effective
date  of  these  rules, the approval of any necessary federal
waivers, and the completion of the review of  an  application
submitted,  at  least  60  days  before the effective date of
rules adopted under this Section, to the Illinois  Department
by a managed care community network.
    All  health  care delivery systems that contract with the
Illinois Department under the integrated health care  program
shall  clearly  recognize  a  health care provider's right of
conscience under the Right of Conscience Act.  In addition to
the provisions of that Act, no health  care  delivery  system
that   contracts  with  the  Illinois  Department  under  the
integrated health care program shall be required to  provide,
arrange  for,  or pay for any health care or medical service,
procedure, or product if that health care delivery system  is
owned,  controlled,  or  sponsored  by  or  affiliated with a
religious institution or religious  organization  that  finds
that health care or medical service, procedure, or product to
violate its religious and moral teachings and beliefs.
    (b)  The  Illinois  Department  may, by rule, provide for
different  benefit  packages  for  different  categories   of
persons  enrolled  in  the  program.  Mental health services,
alcohol and substance abuse  services,  services  related  to
children   with   chronic   or   acute  conditions  requiring
longer-term treatment and follow-up, and rehabilitation  care
provided  by  a  free-standing  rehabilitation  hospital or a
hospital rehabilitation unit may be excluded from  a  benefit
package  if  the  State  ensures that those services are made
available through a separate delivery system.   An  exclusion
does not prohibit the Illinois Department from developing and
implementing demonstration projects for categories of persons
or  services.   Benefit  packages  for  persons  eligible for
medical assistance under Articles V, VI,  and  XII  shall  be
based  on  the  requirements  of  those Articles and shall be
consistent with the Title XIX of  the  Social  Security  Act.
Nothing  in  this Act shall be construed to apply to services
purchased by the Department of Children and  Family  Services
and  the  Department  of  Human Services (as successor to the
Department of Mental Health and  Developmental  Disabilities)
under   the   provisions   of   Title   59  of  the  Illinois
Administrative Code, Part  132  ("Medicaid  Community  Mental
Health Services Program").
    (c)  The  program  established  by  this  Section  may be
implemented by the Illinois Department in various contracting
areas at various times.  The health care delivery systems and
providers available under the program may vary throughout the
State.  For purposes of contracting with managed health  care
entities   and   providers,  the  Illinois  Department  shall
establish contracting areas similar to the  geographic  areas
designated   by   the  Illinois  Department  for  contracting
purposes  under   the   Illinois   Competitive   Access   and
Reimbursement  Equity  Program (ICARE) under the authority of
Section 3-4 of the Illinois  Health  Finance  Reform  Act  or
similarly-sized  or  smaller  geographic areas established by
the Illinois Department by rule. A managed health care entity
shall be permitted to contract in any  geographic  areas  for
which  it  has  a  sufficient  provider network and otherwise
meets the  contracting  terms  of  the  State.  The  Illinois
Department  is  not  prohibited from entering into a contract
with a managed health care entity at any time.
    (d)  A managed health care entity that contracts with the
Illinois Department for the provision of services  under  the
program shall do all of the following, solely for purposes of
the integrated health care program:
         (1)  Provide  that any individual physician licensed
    to practice medicine in all its branches,  any  pharmacy,
    any   federally   qualified   health   center,   and  any
    podiatrist, that consistently meets the reasonable  terms
    and  conditions  established  by  the managed health care
    entity,  including  but  not  limited  to   credentialing
    standards,   quality   assurance   program  requirements,
    utilization    management     requirements,     financial
    responsibility     standards,     contracting     process
    requirements, and provider network size and accessibility
    requirements, must be accepted by the managed health care
    entity  for  purposes  of  the Illinois integrated health
    care program.  Any individual who  is  either  terminated
    from  or  denied  inclusion in the panel of physicians of
    the managed health care entity shall be given, within  10
    business   days   after  that  determination,  a  written
    explanation of the reasons for his or  her  exclusion  or
    termination  from  the panel. This paragraph (1) does not
    apply to the following:
              (A)  A  managed   health   care   entity   that
         certifies to the Illinois Department that:
                   (i)  it  employs  on a full-time basis 125
              or  more  Illinois   physicians   licensed   to
              practice medicine in all of its branches; and
                   (ii)  it  will  provide  medical  services
              through  its  employees to more than 80% of the
              recipients enrolled  with  the  entity  in  the
              integrated health care program; or
              (B)  A   domestic   stock   insurance   company
         licensed under clause (b) of class 1 of Section 4 of
         the  Illinois  Insurance Code if (i) at least 66% of
         the stock of the insurance company  is  owned  by  a
         professional   corporation   organized   under   the
         Professional Service Corporation Act that has 125 or
         more   shareholders   who  are  Illinois  physicians
         licensed to practice medicine in all of its branches
         and (ii) the  insurance  company  certifies  to  the
         Illinois  Department  that  at  least  80%  of those
         physician  shareholders  will  provide  services  to
         recipients  enrolled  with  the   company   in   the
         integrated health care program.
         (2)  Provide  for  reimbursement  for  providers for
    emergency care, as defined by the Illinois Department  by
    rule,  that  must be provided to its enrollees, including
    an emergency room screening fee, and urgent care that  it
    authorizes   for   its   enrollees,   regardless  of  the
    provider's  affiliation  with  the  managed  health  care
    entity. Providers shall be reimbursed for emergency  care
    at   an   amount   equal  to  the  Illinois  Department's
    fee-for-service rates for those medical services rendered
    by providers not under contract with the  managed  health
    care entity to enrollees of the entity.
         (3)  Provide  that  any  provider  affiliated with a
    managed health care entity may also provide services on a
    fee-for-service basis to Illinois Department clients  not
    enrolled in a managed health care entity.
         (4)  Provide client education services as determined
    and  approved  by  the Illinois Department, including but
    not  limited  to  (i)  education  regarding   appropriate
    utilization  of  health  care  services in a managed care
    system, (ii) written disclosure of treatment policies and
    any  restrictions  or  limitations  on  health  services,
    including,  but  not  limited  to,   physical   services,
    clinical   laboratory   tests,   hospital   and  surgical
    procedures,  prescription  drugs   and   biologics,   and
    radiological  examinations, and (iii) written notice that
    the enrollee may  receive  from  another  provider  those
    services covered under this program that are not provided
    by the managed health care entity.
         (5)  Provide  that  enrollees  within its system may
    choose the site for provision of services and  the  panel
    of health care providers.
         (6)  Not   discriminate   in   its   enrollment   or
    disenrollment   practices  among  recipients  of  medical
    services or program enrollees based on health status.
         (7)  Provide a  quality  assurance  and  utilization
    review   program   that   (i)   for   health  maintenance
    organizations  meets  the  requirements  of  the   Health
    Maintenance  Organization  Act  and (ii) for managed care
    community networks meets the requirements established  by
    the  Illinois  Department in rules that incorporate those
    standards   set   forth   in   the   Health   Maintenance
    Organization Act.
         (8)  Issue   a   managed    health    care    entity
    identification  card  to  each  enrollee upon enrollment.
    The card must contain all of the following:
              (A)  The enrollee's signature.
              (B)  The enrollee's health plan.
              (C)  The  name  and  telephone  number  of  the
         enrollee's primary care physician.
              (D)  A  telephone  number  to   be   used   for
         emergency service 24 hours per day, 7 days per week.
         The  telephone  number  required  to  be  maintained
         pursuant to this subparagraph by each managed health
         care   entity  shall,  at  minimum,  be  staffed  by
         medically  trained   personnel   and   be   provided
         directly,  or  under  arrangement,  at  an office or
         offices in  locations maintained solely  within  the
         State    of   Illinois.   For   purposes   of   this
         subparagraph, "medically  trained  personnel"  means
         licensed   practical  nurses  or  registered  nurses
         located in the State of Illinois  who  are  licensed
         pursuant to the Illinois Nursing Act of 1987.
         (9)  Ensure  that  every  primary care physician and
    pharmacy in the managed  health  care  entity  meets  the
    standards  established  by  the  Illinois  Department for
    accessibility  and  quality   of   care.   The   Illinois
    Department shall arrange for and oversee an evaluation of
    the  standards  established  under this paragraph (9) and
    may recommend any necessary changes to  these  standards.
    The  Illinois Department shall submit an annual report to
    the Governor and the General Assembly by April 1 of  each
    year  regarding  the  effect of the standards on ensuring
    access and quality of care to enrollees.
         (10)  Provide a procedure  for  handling  complaints
    that  (i)  for health maintenance organizations meets the
    requirements of the Health Maintenance  Organization  Act
    and  (ii)  for  managed care community networks meets the
    requirements established by the  Illinois  Department  in
    rules  that  incorporate those standards set forth in the
    Health Maintenance Organization Act.
         (11)  Maintain, retain, and make  available  to  the
    Illinois  Department records, data, and information, in a
    uniform manner determined  by  the  Illinois  Department,
    sufficient   for   the  Illinois  Department  to  monitor
    utilization, accessibility, and quality of care.
         (12)  Except for providers who are prepaid, pay  all
    approved  claims  for covered services that are completed
    and submitted to the managed health care entity within 30
    days after  receipt  of  the  claim  or  receipt  of  the
    appropriate capitation payment or payments by the managed
    health  care entity from the State for the month in which
    the  services  included  on  the  claim  were   rendered,
    whichever  is  later. If payment is not made or mailed to
    the provider by the managed health care entity by the due
    date under this subsection, an interest penalty of 1%  of
    any  amount  unpaid  shall  be  added  for  each month or
    fraction of a month  after  the  due  date,  until  final
    payment  is  made. Nothing in this Section shall prohibit
    managed health care entities and providers from  mutually
    agreeing to terms that require more timely payment.
         (13)  Provide   integration   with   community-based
    programs  provided  by certified local health departments
    such as Women, Infants, and  Children  Supplemental  Food
    Program  (WIC),  childhood  immunization programs, health
    education programs, case management programs, and  health
    screening programs.
         (14)  Provide  that the pharmacy formulary used by a
    managed health care entity and its contract providers  be
    no   more  restrictive  than  the  Illinois  Department's
    pharmaceutical program on  the  effective  date  of  this
    amendatory Act of 1994 and as amended after that date.
         (15)  Provide   integration   with   community-based
    organizations,   including,   but  not  limited  to,  any
    organization  that  has  operated   within   a   Medicaid
    Partnership  as  defined  by  this Code or by rule of the
    Illinois Department, that may continue to operate under a
    contract with the Illinois Department or a managed health
    care entity under this Section to provide case management
    services to  Medicaid  clients  in  designated  high-need
    areas.
    The   Illinois   Department   may,   by  rule,  determine
methodologies to limit financial liability for managed health
care  entities  resulting  from  payment  for   services   to
enrollees provided under the Illinois Department's integrated
health  care  program.  Any  methodology so determined may be
considered or implemented by the Illinois Department  through
a  contract  with  a  managed  health  care entity under this
integrated health care program.
    The Illinois Department shall contract with an entity  or
entities  to  provide  external  peer-based quality assurance
review for the integrated health  care  program.  The  entity
shall  be  representative  of Illinois physicians licensed to
practice medicine in all  its  branches  and  have  statewide
geographic  representation in all specialties of medical care
that are provided within the integrated health care  program.
The  entity may not be a third party payer and shall maintain
offices in locations around the State  in  order  to  provide
service   and   continuing  medical  education  to  physician
participants within the integrated health care program.   The
review  process  shall be developed and conducted by Illinois
physicians licensed to practice medicine in all its branches.
In consultation with the entity, the Illinois Department  may
contract  with  other  entities  for  professional peer-based
quality assurance review of individual categories of services
other than services provided, supervised, or  coordinated  by
physicians licensed to practice medicine in all its branches.
The Illinois Department shall establish, by rule, criteria to
avoid  conflicts  of  interest  in  the  conduct  of  quality
assurance activities consistent with professional peer-review
standards.   All   quality   assurance  activities  shall  be
coordinated by the Illinois Department.
    (e)  All  persons  enrolled  in  the  program  shall   be
provided   with   a   full   written   explanation   of   all
fee-for-service  and  managed  health care plan options and a
reasonable  opportunity  to  choose  among  the  options   as
provided  by  rule.  The Illinois Department shall provide to
enrollees, upon enrollment  in  the  integrated  health  care
program  and  at  least  annually  thereafter,  notice of the
process  for  requesting  an  appeal   under   the   Illinois
Department's      administrative      appeal      procedures.
Notwithstanding  any other Section of this Code, the Illinois
Department may provide by rule for the Illinois Department to
assign a  person  enrolled  in  the  program  to  a  specific
provider  of  medical  services  or to a specific health care
delivery system if an enrollee has failed to exercise  choice
in  a  timely  manner.  An  enrollee assigned by the Illinois
Department shall be afforded the opportunity to disenroll and
to select a  specific  provider  of  medical  services  or  a
specific health care delivery system within the first 30 days
after  the assignment. An enrollee who has failed to exercise
choice in a timely manner may be assigned only if there are 3
or more managed health care  entities  contracting  with  the
Illinois Department within the contracting area, except that,
outside  the  City of Chicago, this requirement may be waived
for an area by rules adopted by the Illinois Department after
consultation with all hospitals within the contracting  area.
The Illinois Department shall establish by rule the procedure
for  random  assignment  of  enrollees  who  fail to exercise
choice in a timely manner to a specific managed  health  care
entity  in  proportion  to  the  available  capacity  of that
managed health care entity. Assignment to a specific provider
of medical services or to  a  specific  managed  health  care
entity may not exceed that provider's or entity's capacity as
determined  by  the  Illinois Department.  Any person who has
chosen a specific provider of medical services or a  specific
managed  health  care  entity,  or  any  person  who has been
assigned  under  this  subsection,   shall   be   given   the
opportunity to change that choice or assignment at least once
every  12 months, as determined by the Illinois Department by
rule. The Illinois  Department  shall  maintain  a  toll-free
telephone  number  for  program  enrollees'  use in reporting
problems with managed health care entities.
    (f)  If a person becomes eligible  for  participation  in
the  integrated  health  care  program  while  he  or  she is
hospitalized, the Illinois Department  may  not  enroll  that
person  in  the  program  until  after  he  or  she  has been
discharged from the hospital.  This subsection does not apply
to  newborn  infants  whose  mothers  are  enrolled  in   the
integrated health care program.
    (g)  The  Illinois  Department  shall, by rule, establish
for managed health care entities rates that (i) are certified
to be actuarially sound, as determined by an actuary  who  is
an  associate  or  a  fellow of the Society of Actuaries or a
member of the American  Academy  of  Actuaries  and  who  has
expertise  and  experience  in  medical insurance and benefit
programs,  in  accordance  with  the  Illinois   Department's
current  fee-for-service  payment  system, and (ii) take into
account any difference of cost  to  provide  health  care  to
different  populations  based  on  gender, age, location, and
eligibility category.  The  rates  for  managed  health  care
entities shall be determined on a capitated basis.
    The  Illinois Department by rule shall establish a method
to adjust its payments to managed health care entities  in  a
manner intended to avoid providing any financial incentive to
a  managed  health  care entity to refer patients to a county
provider, in an Illinois county having a  population  greater
than  3,000,000,  that  is  paid  directly  by  the  Illinois
Department.   The Illinois Department shall by April 1, 1997,
and  annually  thereafter,  review  the  method   to   adjust
payments.  Payments  by the Illinois Department to the county
provider,  for  persons  not  enrolled  in  a  managed   care
community  network  owned  or  operated by a county provider,
shall be paid on a fee-for-service basis under Article XV  of
this Code.
    The  Illinois Department by rule shall establish a method
to reduce its payments to managed  health  care  entities  to
take  into  consideration (i) any adjustment payments paid to
hospitals under subsection (h) of this Section to the  extent
those  payments,  or  any  part  of those payments, have been
taken into account in establishing capitated rates under this
subsection (g) and (ii) the implementation  of  methodologies
to limit financial liability for managed health care entities
under subsection (d) of this Section.
    (h)  For  hospital  services  provided by a hospital that
contracts with  a  managed  health  care  entity,  adjustment
payments  shall  be  paid  directly  to  the  hospital by the
Illinois Department.  Adjustment  payments  may  include  but
need    not   be   limited   to   adjustment   payments   to:
disproportionate share hospitals under Section 5-5.02 of this
Code; primary care access health care education payments  (89
Ill. Adm. Code 149.140); payments for capital, direct medical
education,  indirect  medical education, certified registered
nurse anesthetist, and kidney acquisition costs (89 Ill. Adm.
Code 149.150(c)); uncompensated care payments (89  Ill.  Adm.
Code  148.150(h));  trauma center payments (89 Ill. Adm. Code
148.290(c)); rehabilitation hospital payments (89  Ill.  Adm.
Code  148.290(d));  perinatal  center  payments (89 Ill. Adm.
Code 148.290(e)); obstetrical care  payments  (89  Ill.  Adm.
Code 148.290(f)); targeted access payments (89 Ill. Adm. Code
148.290(g)); Medicaid high volume payments (89 Ill. Adm. Code
148.290(h));  and  outpatient indigent volume adjustments (89
Ill. Adm. Code 148.140(b)(5)).
    (i)  For  any  hospital  eligible  for   the   adjustment
payments described in subsection (h), the Illinois Department
shall  maintain,  through  the  period  ending June 30, 1995,
reimbursement levels in accordance with statutes and rules in
effect on April 1, 1994.
    (j)  Nothing contained in this Code in any way limits  or
otherwise  impairs  the  authority  or  power of the Illinois
Department to enter into a negotiated  contract  pursuant  to
this  Section  with  a managed health care entity, including,
but not limited to, a health maintenance  organization,  that
provides  for  termination  or  nonrenewal  of  the  contract
without  cause  upon  notice  as provided in the contract and
without a hearing.
    (k)  Section  5-5.15  does  not  apply  to  the   program
developed and implemented pursuant to this Section.
    (l)  The Illinois Department shall, by rule, define those
chronic or acute medical conditions of childhood that require
longer-term  treatment  and  follow-up  care.   The  Illinois
Department shall ensure that services required to treat these
conditions are available through a separate delivery system.
    A  managed  health  care  entity  that contracts with the
Illinois Department may refer a child with medical conditions
described in the rules adopted under this subsection directly
to a children's hospital or  to  a  hospital,  other  than  a
children's  hospital,  that is qualified to provide inpatient
and outpatient  services  to  treat  those  conditions.   The
Illinois    Department    shall    provide    fee-for-service
reimbursement  directly  to  a  children's hospital for those
services pursuant to Title 89 of the Illinois  Administrative
Code,  Section  148.280(a),  at  a rate at least equal to the
rate in effect on March 31, 1994. For hospitals,  other  than
children's hospitals, that are qualified to provide inpatient
and  outpatient  services  to  treat  those  conditions,  the
Illinois  Department  shall  provide  reimbursement for those
services on a fee-for-service basis, at a rate at least equal
to the rate in effect for those other hospitals on March  31,
1994.
    A  children's  hospital  shall be directly reimbursed for
all  services  provided  at  the  children's  hospital  on  a
fee-for-service basis pursuant to Title 89  of  the  Illinois
Administrative  Code,  Section 148.280(a), at a rate at least
equal to the rate in effect on  March  31,  1994,  until  the
later  of  (i)  implementation  of the integrated health care
program under this Section  and  development  of  actuarially
sound  capitation rates for services other than those chronic
or  acute  medical  conditions  of  childhood  that   require
longer-term  treatment  and  follow-up care as defined by the
Illinois  Department  in  the  rules   adopted   under   this
subsection or (ii) March 31, 1996.
    Notwithstanding   anything  in  this  subsection  to  the
contrary, a managed health care  entity  shall  not  consider
sources  or methods of payment in determining the referral of
a child.   The  Illinois  Department  shall  adopt  rules  to
establish   criteria   for  those  referrals.   The  Illinois
Department by rule shall establish a  method  to  adjust  its
payments to managed health care entities in a manner intended
to  avoid  providing  any  financial  incentive  to a managed
health care entity to refer patients to  a  provider  who  is
paid directly by the Illinois Department.
    (m)  Behavioral health services provided or funded by the
Department  of Human Services, the Department of Children and
Family  Services,  and  the  Illinois  Department  shall   be
excluded from a benefit package.  Conditions of an organic or
physical  origin or nature, including medical detoxification,
however,  may  not  be   excluded.    In   this   subsection,
"behavioral health services" means mental health services and
subacute  alcohol  and substance abuse treatment services, as
defined in the Illinois Alcoholism and Other Drug  Dependency
Act.   In this subsection, "mental health services" includes,
at a minimum, the following services funded by  the  Illinois
Department, the Department of Human Services (as successor to
the   Department   of   Mental   Health   and   Developmental
Disabilities),  or  the  Department  of  Children  and Family
Services: (i) inpatient hospital services, including  related
physician  services,  related  psychiatric interventions, and
pharmaceutical services provided  to  an  eligible  recipient
hospitalized   with   a   primary  diagnosis  of  psychiatric
disorder; (ii) outpatient mental health services  as  defined
and  specified  in  Title  59  of the Illinois Administrative
Code, Part 132; (iii)  any  other  outpatient  mental  health
services  funded  by  the Illinois Department pursuant to the
State   of   Illinois    Medicaid    Plan;    (iv)    partial
hospitalization;  and  (v) follow-up stabilization related to
any of those services.  Additional behavioral health services
may be excluded under this subsection as mutually  agreed  in
writing  by  the  Illinois  Department and the affected State
agency or agencies.  The exclusion of any  service  does  not
prohibit   the   Illinois   Department  from  developing  and
implementing demonstration projects for categories of persons
or services.  The Department of Children and Family  Services
and  the  Department of Human Services shall each adopt rules
governing the integration of managed care in the provision of
behavioral health services. The State shall integrate managed
care community networks  and  affiliated  providers,  to  the
extent  practicable,  in  any  separate  delivery  system for
mental health services.
    (n)  The  Illinois  Department  shall  adopt   rules   to
establish  reserve  requirements  for  managed care community
networks,  as  required  by  subsection   (a),   and   health
maintenance  organizations  to protect against liabilities in
the event that a  managed  health  care  entity  is  declared
insolvent or bankrupt.  If a managed health care entity other
than  a  county  provider  is declared insolvent or bankrupt,
after liquidation and application of  any  available  assets,
resources,  and reserves, the Illinois Department shall pay a
portion of the amounts owed by the managed health care entity
to providers for services rendered  to  enrollees  under  the
integrated  health  care  program under this Section based on
the following schedule: (i) from April 1, 1995  through  June
30,  1998,  90%  of  the amounts owed; (ii) from July 1, 1998
through June 30, 2001, 80% of the  amounts  owed;  and  (iii)
from  July  1, 2001 through June 30, 2005, 75% of the amounts
owed.  The  amounts  paid  under  this  subsection  shall  be
calculated  based  on  the  total  amount owed by the managed
health care entity to providers  before  application  of  any
available  assets,  resources,  and reserves.  After June 30,
2005, the Illinois Department may not pay any amounts owed to
providers as a result of an insolvency  or  bankruptcy  of  a
managed  health  care entity occurring after that date.   The
Illinois Department is not obligated, however, to pay amounts
owed to a provider that has an ownership or  other  governing
interest  in the managed health care entity.  This subsection
applies only to managed health care entities and the services
they provide under the integrated health care  program  under
this Section.
    (o)  Notwithstanding   any  other  provision  of  law  or
contractual agreement to the contrary, providers shall not be
required to accept from any other third party payer the rates
determined  or  paid  under  this  Code   by   the   Illinois
Department,  managed health care entity, or other health care
delivery system for services provided to recipients.
    (p)  The Illinois Department  may  seek  and  obtain  any
necessary   authorization   provided  under  federal  law  to
implement the program, including the waiver  of  any  federal
statutes  or  regulations. The Illinois Department may seek a
waiver  of  the  federal  requirement   that   the   combined
membership  of  Medicare  and Medicaid enrollees in a managed
care community network may not exceed 75% of the managed care
community   network's   total   enrollment.    The   Illinois
Department shall not seek a waiver of  this  requirement  for
any  other  category  of  managed  health  care  entity.  The
Illinois Department shall not seek a waiver of the  inpatient
hospital  reimbursement methodology in Section 1902(a)(13)(A)
of Title XIX of the Social Security Act even if  the  federal
agency  responsible  for  administering  Title XIX determines
that Section 1902(a)(13)(A) applies to  managed  health  care
systems.
    Notwithstanding  any other provisions of this Code to the
contrary, the Illinois Department  shall  seek  a  waiver  of
applicable federal law in order to impose a co-payment system
consistent  with  this  subsection  on  recipients of medical
services under Title XIX of the Social Security Act  who  are
not  enrolled  in  a  managed health care entity.  The waiver
request submitted by the Illinois  Department  shall  provide
for co-payments of up to $0.50 for prescribed drugs and up to
$0.50 for x-ray services and shall provide for co-payments of
up  to  $10 for non-emergency services provided in a hospital
emergency room and up  to  $10  for  non-emergency  ambulance
services.   The  purpose of the co-payments shall be to deter
those  recipients  from  seeking  unnecessary  medical  care.
Co-payments may not be used to deter recipients from  seeking
necessary  medical  care.   No recipient shall be required to
pay more than a total of $150 per year in  co-payments  under
the  waiver request required by this subsection.  A recipient
may not be required to pay more than $15 of  any  amount  due
under this subsection in any one month.
    Co-payments  authorized  under this subsection may not be
imposed when the care was  necessitated  by  a  true  medical
emergency.   Co-payments  may  not  be imposed for any of the
following classifications of services:
         (1)  Services furnished to person under 18 years  of
    age.
         (2)  Services furnished to pregnant women.
         (3)  Services  furnished to any individual who is an
    inpatient in a hospital, nursing  facility,  intermediate
    care  facility,  or  other  medical  institution, if that
    person is required to spend for costs of medical care all
    but a minimal amount of his or her  income  required  for
    personal needs.
         (4)  Services furnished to a person who is receiving
    hospice care.
    Co-payments authorized under this subsection shall not be
deducted  from  or  reduce  in  any  way payments for medical
services from  the  Illinois  Department  to  providers.   No
provider  may  deny  those services to an individual eligible
for services based on the individual's inability to  pay  the
co-payment.
    Recipients  who  are  subject  to  co-payments  shall  be
provided  notice,  in plain and clear language, of the amount
of the co-payments, the circumstances under which co-payments
are exempted, the circumstances under which  co-payments  may
be assessed, and their manner of collection.
    The   Illinois  Department  shall  establish  a  Medicaid
Co-Payment Council to assist in the development of co-payment
policies for the medical assistance  program.   The  Medicaid
Co-Payment  Council shall also have jurisdiction to develop a
program to provide financial or non-financial  incentives  to
Medicaid  recipients in order to encourage recipients to seek
necessary health care.  The Council shall be chaired  by  the
Director  of  the  Illinois  Department,  and  shall  have  6
additional members.  Two of the 6 additional members shall be
appointed by the Governor, and one each shall be appointed by
the  President  of  the  Senate,  the  Minority Leader of the
Senate, the Speaker of the House of Representatives, and  the
Minority Leader of the House of Representatives.  The Council
may be convened and make recommendations upon the appointment
of a majority of its members.  The Council shall be appointed
and convened no later than September 1, 1994 and shall report
its   recommendations   to   the  Director  of  the  Illinois
Department and the General Assembly no later than October  1,
1994.   The  chairperson  of  the Council shall be allowed to
vote only in the case of  a  tie  vote  among  the  appointed
members of the Council.
    The  Council  shall be guided by the following principles
as it considers recommendations to be developed to  implement
any  approved  waivers that the Illinois Department must seek
pursuant to this subsection:
         (1)  Co-payments should not be used to deter  access
    to adequate medical care.
         (2)  Co-payments should be used to reduce fraud.
         (3)  Co-payment   policies  should  be  examined  in
    consideration  of  other  states'  experience,  and   the
    ability   of   successful  co-payment  plans  to  control
    unnecessary  or  inappropriate  utilization  of  services
    should be promoted.
         (4)  All   participants,   both    recipients    and
    providers,   in   the  medical  assistance  program  have
    responsibilities to both the State and the program.
         (5)  Co-payments are primarily a tool to educate the
    participants  in  the  responsible  use  of  health  care
    resources.
         (6)  Co-payments should  not  be  used  to  penalize
    providers.
         (7)  A   successful  medical  program  requires  the
    elimination of improper utilization of medical resources.
    The integrated health care program, or any part  of  that
program,   established   under   this   Section  may  not  be
implemented if matching federal funds under Title XIX of  the
Social  Security  Act are not available for administering the
program.
    The Illinois Department shall submit for  publication  in
the Illinois Register the name, address, and telephone number
of  the  individual  to  whom a request may be directed for a
copy of the request for a waiver of provisions of  Title  XIX
of  the  Social  Security  Act  that  the Illinois Department
intends to submit to the Health Care Financing Administration

in order to implement this Section.  The Illinois  Department
shall  mail  a  copy  of  that  request  for  waiver  to  all
requestors  at  least  16 days before filing that request for
waiver with the Health Care Financing Administration.
    (q)  After  the  effective  date  of  this  Section,  the
Illinois Department may take  all  planning  and  preparatory
action  necessary  to  implement this Section, including, but
not limited to, seeking requests for  proposals  relating  to
the   integrated  health  care  program  created  under  this
Section.
    (r)  In  order  to  (i)  accelerate  and  facilitate  the
development of integrated health care  in  contracting  areas
outside  counties with populations in excess of 3,000,000 and
counties adjacent to those counties  and  (ii)  maintain  and
sustain  the high quality of education and residency programs
coordinated and associated with  local  area  hospitals,  the
Illinois Department may develop and implement a demonstration
program  for managed care community networks owned, operated,
or governed by State-funded medical  schools.   The  Illinois
Department  shall  prescribe by rule the criteria, standards,
and procedures for effecting this demonstration program.
    (s)  (Blank).
    (t)  On April 1, 1995 and every 6 months thereafter,  the
Illinois  Department shall report to the Governor and General
Assembly on  the  progress  of  the  integrated  health  care
program   in  enrolling  clients  into  managed  health  care
entities.  The report shall indicate the  capacities  of  the
managed  health care entities with which the State contracts,
the number of clients enrolled by each contractor, the  areas
of  the State in which managed care options do not exist, and
the progress toward  meeting  the  enrollment  goals  of  the
integrated health care program.
    (u)  The  Illinois  Department may implement this Section
through the use of emergency rules in accordance with Section
5-45 of  the  Illinois  Administrative  Procedure  Act.   For
purposes of that Act, the adoption of rules to implement this
Section  is  deemed an emergency and necessary for the public
interest, safety, and welfare.
(Source: P.A.  88-554,  eff.  7-26-94;  89-21,  eff.  7-1-95;
89-507, eff. 7-1-97; 89-673, eff. 8-14-96; revised 8-26-96.)

    (305 ILCS 5/11-9) (from Ch. 23, par. 11-9)
    Sec.  11-9.   Protection of records - Exceptions. For the
protection  of  applicants  and  recipients,   the   Illinois
Department,  the  county  departments  and local governmental
units  and  their  respective  officers  and  employees   are
prohibited,  except  as hereinafter provided, from disclosing
the   contents   of   any   records,   files,   papers    and
communications,  except  for purposes directly connected with
the administration of public aid under this Code.
    In any judicial proceeding, except a proceeding  directly
concerned with the administration of programs provided for in
this  Code,  such  records, files, papers and communications,
and their contents shall be deemed privileged  communications
and  shall  be  disclosed  only  upon the order of the court,
where the court finds such to be necessary in the interest of
justice.
    The  Illinois  Department  shall  establish  and  enforce
reasonable rules and regulations governing the  custody,  use
and   preservation   of   the  records,  papers,  files,  and
communications  of  the  Illinois  Department,   the   county
departments  and  local governmental units receiving State or
Federal funds or aid.  The  governing  body  of  other  local
governmental units shall in like manner establish and enforce
rules and regulations governing the same matters.
    The contents of case files pertaining to recipients under
Articles  VI and VII shall be made available without subpoena
or formal notice to the officers of any  court,  to  all  law
enforcing  agencies, and to such other persons or agencies as
from time to time  may  be  authorized  by  any  court.    In
particular,  the  contents  of those case files shall be made
available upon request to a law enforcement  agency  for  the
purpose  of  determining  the  current address of a recipient
with respect  to  whom  an  arrest  warrant  is  outstanding.
Information  shall  also  be  disclosed to the Illinois State
Scholarship Commission pursuant to an investigation or  audit
by  the Illinois State Scholarship Commission of a delinquent
student loan or monetary award.
    This Section does not prevent the Illinois Department and
local governmental units from reporting  to  appropriate  law
enforcement  officials  the  desertion  or  abandonment  by a
parent of a child, as a result of  which  financial  aid  has
been  necessitated  under  Articles  IV,  V,  VI,  or VII, or
reporting to appropriate law enforcement officials  instances
in which a mother under age 18 has a child out of wedlock and
is  an applicant for or recipient of aid under any Article of
this Code. The Illinois Department may provide  by  rule  for
the  county  departments  and  local  governmental  units  to
initiate  proceedings under the Juvenile Court Act of 1987 to
have children declared to be neglected when  they  deem  such
action   necessary  to  protect  the  children  from  immoral
influences present in their home or surroundings.
    This Section does not preclude the full exercise  of  the
powers  of  the  Board of Public Aid Commissioners to inspect
records and documents, as provided for  all  advisory  boards
pursuant  to  Section  8 of "The Civil Administrative Code of
Illinois", approved March 7, 1917, as amended.
    This Section does not preclude exchanges  of  information
among  the  Illinois Department of Public Aid, the Department
of Human Services (as successor to the Department  of  Public
Aid),  and the Illinois Department of Revenue for the purpose
of verifying sources and amounts  of  income  and  for  other
purposes  directly  connected with the administration of this
Code and of the Illinois Income Tax Act.
    The provisions of this Section and of  Section  11-11  as
they  apply  to applicants and recipients of public aid under
Articles III, IV and V shall be operative only to the  extent
that  they do not conflict with any Federal law or regulation
governing Federal grants to this State for such programs.
    The Illinois Department of Public Aid and the  Department
of Human Services (as successor to the Illinois Department of
Public  Aid)  shall enter into an inter-agency agreement with
the Department of Children and Family Services to establish a
procedure by which employees of the  Department  of  Children
and  Family  Services  may  have immediate access to records,
files, papers, and communications (except medical, alcohol or
drug assessment or treatment, mental  health,  or  any  other
medical   records)   of   the   Illinois  Department,  county
departments, and local governmental units receiving State  or
federal  funds  or  aid,  if  the  Department of Children and
Family Services determines the information  is  necessary  to
perform  its  duties  under  the  Abused  and Neglected Child
Reporting Act, the Child Care Act of 1969, and  the  Children
and Family Services Act.
(Source:  P.A.  88-614,  eff.  9-7-94;  89-507,  eff. 7-1-97;
89-583, eff. 1-1-97; revised 9-9-96.)

    (305 ILCS 5/14-8) (from Ch. 23, par. 14-8)
    Sec. 14-8.  Disbursements to Hospitals.
    (a)  For inpatient  hospital  services  rendered  on  and
after  September  1,  1991,  the  Illinois  Department  shall
reimburse  hospitals  for  inpatient services at an inpatient
payment rate calculated for  each  hospital  based  upon  the
Medicare  Prospective Payment System as set forth in Sections
1886(b), (d), (g), and (h) of  the  federal  Social  Security
Act,   and   the   regulations,   policies,   and  procedures
promulgated thereunder, except as modified by  this  Section.
Payment  rates for inpatient hospital services rendered on or
after September 1, 1991 and on or before September  30,  1992
shall  be  calculated  using the Medicare Prospective Payment
rates in effect on September  1,  1991.   Payment  rates  for
inpatient  hospital  services rendered on or after October 1,
1992 and on or before March  31,  1994  shall  be  calculated
using  the  Medicare  Prospective  Payment rates in effect on
September 1, 1992.   Payment  rates  for  inpatient  hospital
services  rendered  on  or  after  April  1,  1994  shall  be
calculated  using  the  Medicare  Prospective  Payment  rates
(including  the  Medicare  grouping methodology and weighting
factors  as  adjusted  pursuant  to  paragraph  (1)  of  this
subsection)  in   effect  90  days  prior  to  the  date   of
admission.   For  services rendered on or after July 1, 1995,
the  reimbursement   methodology   implemented   under   this
subsection  shall  not  include  those  costs  referred to in
Sections 1886(d)(5)(B) and 1886(h)  of  the  Social  Security
Act.  The  additional  payment amounts required under Section
1886(d)(5)(F) of  the  Social  Security  Act,  for  hospitals
serving  a  disproportionate  share of low-income or indigent
patients, are not required under this Section.  For  hospital
inpatient  services  rendered  on  or  after July 1, 1995 and
before July 1, 1997, the Illinois Department shall  reimburse
hospitals  using  the relative weighting factors and the base
payment rates calculated  for  each  hospital  that  were  in
effect  on  June  30,  1995,  less  the portion of such rates
attributed by the Illinois Department to the cost of  medical
education.
         (1)  The weighting factors established under Section
    1886(d)(4)  of  the Social Security Act shall not be used
    in  the  reimbursement  system  established  under   this
    Section.  Rather, the Illinois Department shall establish
    by  rule  Medicaid  weighting  factors  to be used in the
    reimbursement system established under this Section.
         (2)  The Illinois Department shall  define  by  rule
    those hospitals or distinct parts of hospitals that shall
    be exempt from the reimbursement system established under
    this  Section.   In defining such hospitals, the Illinois
    Department shall take into consideration those  hospitals
    exempt from the Medicare Prospective Payment System as of
    September 1, 1991.  For hospitals defined as exempt under
    this  subsection,  the  Illinois Department shall by rule
    establish a reimbursement system for payment of inpatient
    hospital services rendered  on  and  after  September  1,
    1991.  For all hospitals that are children's hospitals as
    defined in Section 5-5.02 of this Code, the reimbursement
    methodology  shall,  through  June  30,  1992, net of all
    applicable fees, at least equal each children's  hospital
    1990  ICARE payment rates, indexed to the current year by
    application of the DRI hospital cost index from  1989  to
    the  year  in  which payments are made.  Excepting county
    providers  as  defined  in  Article  XV  of  this   Code,
    hospitals  licensed  under  the  University  of  Illinois
    Hospital  Act,  and facilities operated by the Department
    of Mental Health and Developmental Disabilities  (or  its
    successor, the Department of Human Services) for hospital
    inpatient  services rendered on or after July 1, 1995 and
    before  July  1,  1997,  the  Illinois  Department  shall
    reimburse children's hospitals, as defined in 89 Illinois
    Administrative Code Section 149.50(c)(3), at the rates in
    effect on June 30, 1995, and shall  reimburse  all  other
    hospitals  at  the rates in effect on June 30, 1995, less
    the portion of such  rates  attributed  by  the  Illinois
    Department to the cost of medical education.
         (3)  (Blank)
         (4)  Notwithstanding  any  other  provision  of this
    Section, hospitals  that  on  August  31,  1991,  have  a
    contract  with  the Illinois Department under Section 3-4
    of the Illinois Health Finance Reform Act  may  elect  to
    continue  to  be  reimbursed  at  rates  stated  in  such
    contracts for general and specialty care.
         (5)  In  addition  to  any  payments made under this
    subsection (a), the Illinois Department  shall  make  the
    adjustment  payments  required  by Section 5-5.02 of this
    Code;  provided,  that  in  the  case  of  any   hospital
    reimbursed  under  a  per  case methodology, the Illinois
    Department shall add an amount equal to  the  product  of
    the  hospital's  average  length  of  stay, less one day,
    multiplied  by  20,  for  inpatient   hospital   services
    rendered  on  or after September 1, 1991 and on or before
    September 30, 1992.
    (b)  (Blank)
    (b-5)  Excepting county providers as defined  in  Article
XV  of  this Code, hospitals licensed under the University of
Illinois  Hospital  Act,  and  facilities  operated  by   the
Illinois   Department  of  Mental  Health  and  Developmental
Disabilities (or  its  successor,  the  Department  of  Human
Services)  for  outpatient services rendered on or after July
1, 1995 and before July  1,  1997,  the  Illinois  Department
shall  reimburse  children's  hospitals,  as  defined  in the
Illinois Administrative Code  Section  149.50(c)(3),  at  the
rates  in  effect on June 30, 1995, less that portion of such
rates attributed by the Illinois Department to the outpatient
indigent volume adjustment  and  shall  reimburse  all  other
hospitals  at  the rates in effect on June 30, 1995, less the
portions of such rates attributed by the Illinois  Department
to  the  cost  of  medical  education  and  attributed by the
Illinois  Department  to  the  outpatient   indigent   volume
adjustment.
    (c)  In  addition  to any other payments under this Code,
the   Illinois   Department   shall   develop   a    hospital
disproportionate   share   reimbursement   methodology  that,
effective July 1, 1991, through  September  30,  1992,  shall
reimburse  hospitals  sufficiently  to  expend the fee monies
described in subsection (b) of Section 14-3 of this Code  and
the   federal   matching   funds  received  by  the  Illinois
Department as a result of expenditures made by  the  Illinois
Department  as  required  by  this subsection (c) and Section
14-2 that are attributable to fee  monies  deposited  in  the
Fund,  less  amounts  applied  to  adjustment  payments under
Section 5-5.02.
    (d)  Critical Care Access Payments.
         (1)  In addition to any other  payments  made  under
    this  Code,  the  Illinois  Department  shall  develop  a
    reimbursement  methodology  that shall reimburse Critical
    Care Access Hospitals for the specialized  services  that
    qualify  them  as  Critical  Care  Access  Hospitals.  No
    adjustment  payments  shall be made under this subsection
    on or after July 1, 1995.
         (2)  "Critical Care Access Hospitals" includes,  but
    is  not  limited  to, hospitals that meet at least one of
    the following criteria:
              (A)  Hospitals    located    outside    of    a
         metropolitan statistical area that are designated as
         Level  II  Perinatal  Centers  and  that  provide  a
         disproportionate  share  of  perinatal  services  to
         recipients; or
              (B)  Hospitals that are designated as  Level  I
         Trauma  Centers  (adult  or  pediatric)  and certain
         Level  II  Trauma  Centers  as  determined  by   the
         Illinois Department; or
              (C)  Hospitals    located    outside    of    a
         metropolitan  statistical  area  and  that provide a
         disproportionate share of  obstetrical  services  to
         recipients.
    (e)  Inpatient  high  volume  adjustment.   For  hospital
inpatient  services, effective with rate periods beginning on
or after October 1, 1993,  in  addition  to  rates  paid  for
inpatient  services  by the Illinois Department, the Illinois
Department  shall  make  adjustment  payments  for  inpatient
services furnished by Medicaid high  volume  hospitals.   The
Illinois  Department  shall  establish  by  rule criteria for
qualifying as a  Medicaid  high  volume  hospital  and  shall
establish by rule a reimbursement methodology for calculating
these  adjustment payments to Medicaid high volume hospitals.
No adjustment payment shall be made under this subsection for
services rendered on or after July 1, 1995.
    (f)  The Illinois Department  shall  modify  its  current
rules  governing  adjustment  payments  for  targeted access,
critical care access,  and  uncompensated  care  to  classify
those   adjustment   payments   as   not  being  payments  to
disproportionate share  hospitals  under  Title  XIX  of  the
federal   Social  Security  Act.  Rules  adopted  under  this
subsection shall not be effective with  respect  to  services
rendered  on  or after July 1, 1995.  The Illinois Department
has no obligation to adopt or implement any rules or make any
payments under this subsection for services  rendered  on  or
after July 1, 1995.
    (f-5)  The  State  recognizes that adjustment payments to
hospitals providing certain  services  or  incurring  certain
costs  may  be necessary to assure that recipients of medical
assistance  have  adequate  access   to   necessary   medical
services.   These  adjustments  include payments for teaching
costs  and  uncompensated  care,  trauma   center   payments,
rehabilitation  hospital payments, perinatal center payments,
obstetrical care payments, targeted access payments, Medicaid
high  volume  payments,  and   outpatient   indigent   volume
payments.    On   or  before  April  1,  1995,  the  Illinois
Department  shall   issue   recommendations   regarding   (i)
reimbursement  mechanisms  or  adjustment payments to reflect
these costs and services,  including  methods  by  which  the
payments  may  be  calculated  and  the  method  by which the
payments may be financed, and (ii)  reimbursement  mechanisms
or  adjustment  payments  to  reflect  costs  and services of
federally qualified health centers with respect to recipients
of medical assistance.
    (g)  If one or more hospitals  file  suit  in  any  court
challenging  any  part  of  this  Article  XIV,  payments  to
hospitals  under  this  Article XIV shall be made only to the
extent that sufficient monies are available in the  Fund  and
only  to  the  extent  that  any  monies  in the Fund are not
prohibited from disbursement under any order of the court.
    (h)  Payments   under   the   disbursement    methodology
described  in  this  Section  are  subject to approval by the
federal government in an appropriate State plan amendment.
    (i)  The  Illinois  Department  may  by  rule   establish
criteria   for   and  develop  methodologies  for  adjustment
payments to hospitals participating under this Article.
(Source:  P.A.  88-88;  88-554,  eff.  7-26-94;  89-21,  eff.
7-1-95; 89-499, eff. 6-28-96; 89-507,  eff.  7-1-97;  revised
8-26-96.)

    Section 2-195.  The Partnership for Long-Term Care Act is
amended by changing Sections 20, 30, 50, and 60 as follows:

    (320 ILCS 35/20) (from Ch. 23, par. 6801-20)
    Sec. 20.  Program participant eligibility for Medicaid.
    (a)  Individuals  who participate in the program and have
resources above the eligibility levels for receipt of medical
assistance  under  Title  XIX  of  the  Social  Security  Act
(Subchapter XIX (commencing with Section 1396) of  Chapter  7
of  Title  42 of the United States Code) shall be eligible to
receive in-home  supportive  service  benefits  and  Medicaid
benefits  through  the  Department  of  Public Aid if, before
becoming  eligible  for  benefits,  they  have  purchased   a
long-term  care insurance policy covering long-term care that
has been certified by the Department of Insurance Human under
Section 30 of this Act.
    (b)  Individuals may purchase  certified  long-term  care
insurance  policies  which  cover  long-term care services in
amounts equal to the resources they wish to protect.
    (b-5)  An individual may purchase a  certified  long-term
care  insurance  policy  which protects an individual's total
assets.  To be eligible for total asset protection, an amount
equal to the average  cost  of  4  years  of  long-term  care
services in a nursing facility must be purchased.
    (b-7)  Although  a  resource  has  been  protected by the
Partnership Policy, income is to be applied to  the  cost  of
care when the insured becomes Medicaid eligible.
    (c)  The  r