98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB2711

 

Introduced 1/28/2014, by Sen. John M. Sullivan

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/25  from Ch. 127, par. 161

    Amends the State Finance Act. Permits the State Board of Education to make payments for grants provided by the United States Department of Agriculture, the United States Department of Education, or any other federal agency 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. Effective July 1, 2014.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by changing
5Section 25 as follows:
 
6    (30 ILCS 105/25)  (from Ch. 127, par. 161)
7    Sec. 25. Fiscal year limitations.
8    (a) All appropriations shall be available for expenditure
9for the fiscal year or for a lesser period if the Act making
10that appropriation so specifies. A deficiency or emergency
11appropriation shall be available for expenditure only through
12June 30 of the year when the Act making that appropriation is
13enacted unless that Act otherwise provides.
14    (b) Outstanding liabilities as of June 30, payable from
15appropriations which have otherwise expired, may be paid out of
16the expiring appropriations during the 2-month period ending at
17the close of business on August 31. Any service involving
18professional or artistic skills or any personal services by an
19employee whose compensation is subject to income tax
20withholding must be performed as of June 30 of the fiscal year
21in order to be considered an "outstanding liability as of June
2230" that is thereby eligible for payment out of the expiring
23appropriation.

 

 

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1    (b-1) However, payment of tuition reimbursement claims
2under Section 14-7.03 or 18-3 of the School Code may be made by
3the State Board of Education from its appropriations for those
4respective purposes for any fiscal year, even though the claims
5reimbursed by the payment may be claims attributable to a prior
6fiscal year, and payments may be made at the direction of the
7State Superintendent of Education from the fund from which the
8appropriation is made without regard to any fiscal year
9limitations, except as required by subsection (j) of this
10Section. Beginning on June 30, 2021, payment of tuition
11reimbursement claims under Section 14-7.03 or 18-3 of the
12School Code as of June 30, payable from appropriations that
13have otherwise expired, may be paid out of the expiring
14appropriation during the 4-month period ending at the close of
15business on October 31.
16    (b-2) All outstanding liabilities as of June 30, 2010,
17payable from appropriations that would otherwise expire at the
18conclusion of the lapse period for fiscal year 2010, and
19interest penalties payable on those liabilities under the State
20Prompt Payment Act, may be paid out of the expiring
21appropriations until December 31, 2010, without regard to the
22fiscal year in which the payment is made, as long as vouchers
23for the liabilities are received by the Comptroller no later
24than August 31, 2010.
25    (b-2.5) All outstanding liabilities as of June 30, 2011,
26payable from appropriations that would otherwise expire at the

 

 

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1conclusion of the lapse period for fiscal year 2011, and
2interest penalties payable on those liabilities under the State
3Prompt Payment Act, may be paid out of the expiring
4appropriations until December 31, 2011, without regard to the
5fiscal year in which the payment is made, as long as vouchers
6for the liabilities are received by the Comptroller no later
7than August 31, 2011.
8    (b-2.6) All outstanding liabilities as of June 30, 2012,
9payable from appropriations that would otherwise expire at the
10conclusion of the lapse period for fiscal year 2012, and
11interest penalties payable on those liabilities under the State
12Prompt Payment Act, may be paid out of the expiring
13appropriations until December 31, 2012, without regard to the
14fiscal year in which the payment is made, as long as vouchers
15for the liabilities are received by the Comptroller no later
16than August 31, 2012.
17    (b-2.7) For fiscal years 2012, 2013, and 2014, interest
18penalties payable under the State Prompt Payment Act associated
19with a voucher for which payment is issued after June 30 may be
20paid out of the next fiscal year's appropriation. The future
21year appropriation must be for the same purpose and from the
22same fund as the original payment. An interest penalty voucher
23submitted against a future year appropriation must be submitted
24within 60 days after the issuance of the associated voucher,
25and the Comptroller must issue the interest payment within 60
26days after acceptance of the interest voucher.

 

 

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1    (b-3) Medical payments may be made by the Department of
2Veterans' Affairs from its appropriations for those purposes
3for any fiscal year, without regard to the fact that the
4medical services being compensated for by such payment may have
5been rendered in a prior fiscal year, except as required by
6subsection (j) of this Section. Beginning on June 30, 2021,
7medical payments payable from appropriations that have
8otherwise expired may be paid out of the expiring appropriation
9during the 4-month period ending at the close of business on
10October 31.
11    (b-4) Medical payments and child care payments may be made
12by the Department of Human Services (as successor to the
13Department of Public Aid) from appropriations for those
14purposes for any fiscal year, without regard to the fact that
15the medical or child care services being compensated for by
16such payment may have been rendered in a prior fiscal year; and
17payments may be made at the direction of the Department of
18Healthcare and Family Services (or successor agency) from the
19Health Insurance Reserve Fund without regard to any fiscal year
20limitations, except as required by subsection (j) of this
21Section. Beginning on June 30, 2021, medical and child care
22payments made by the Department of Human Services and payments
23made at the discretion of the Department of Healthcare and
24Family Services (or successor agency) from the Health Insurance
25Reserve Fund and payable from appropriations that have
26otherwise expired may be paid out of the expiring appropriation

 

 

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1during the 4-month period ending at the close of business on
2October 31.
3    (b-5) Medical payments may be made by the Department of
4Human Services from its appropriations relating to substance
5abuse treatment services for any fiscal year, without regard to
6the fact that the medical services being compensated for by
7such payment may have been rendered in a prior fiscal year,
8provided the payments are made on a fee-for-service basis
9consistent with requirements established for Medicaid
10reimbursement by the Department of Healthcare and Family
11Services, except as required by subsection (j) of this Section.
12Beginning on June 30, 2021, medical payments made by the
13Department of Human Services relating to substance abuse
14treatment services payable from appropriations that have
15otherwise expired may be paid out of the expiring appropriation
16during the 4-month period ending at the close of business on
17October 31.
18    (b-6) Additionally, payments may be made by the Department
19of Human Services from its appropriations, or any other State
20agency from its appropriations with the approval of the
21Department of Human Services, from the Immigration Reform and
22Control Fund for purposes authorized pursuant to the
23Immigration Reform and Control Act of 1986, without regard to
24any fiscal year limitations, except as required by subsection
25(j) of this Section. Beginning on June 30, 2021, payments made
26by the Department of Human Services from the Immigration Reform

 

 

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1and Control Fund for purposes authorized pursuant to the
2Immigration Reform and Control Act of 1986 payable from
3appropriations that have otherwise expired may be paid out of
4the expiring appropriation during the 4-month period ending at
5the close of business on October 31.
6    (b-7) Payments may be made in accordance with a plan
7authorized by paragraph (11) or (12) of Section 405-105 of the
8Department of Central Management Services Law from
9appropriations for those payments without regard to fiscal year
10limitations.
11    (b-8) Reimbursements to eligible airport sponsors for the
12construction or upgrading of Automated Weather Observation
13Systems may be made by the Department of Transportation from
14appropriations for those purposes for any fiscal year, without
15regard to the fact that the qualification or obligation may
16have occurred in a prior fiscal year, provided that at the time
17the expenditure was made the project had been approved by the
18Department of Transportation prior to June 1, 2012 and, as a
19result of recent changes in federal funding formulas, can no
20longer receive federal reimbursement.
21    (b-9) Medical payments not exceeding $150,000,000 may be
22made by the Department on Aging from its appropriations
23relating to the Community Care Program for fiscal year 2014,
24without regard to the fact that the medical services being
25compensated for by such payment may have been rendered in a
26prior fiscal year, provided the payments are made on a

 

 

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1fee-for-service basis consistent with requirements established
2for Medicaid reimbursement by the Department of Healthcare and
3Family Services, except as required by subsection (j) of this
4Section.
5    (b-10) Payments may be made by the State Board of Education
6for grants provided by the United States Department of
7Agriculture, the United States Department of Education, or any
8other federal agency for any fiscal year without regard to the
9fact that the services being compensated for by such payment
10may have been rendered in a prior fiscal year.
11    (c) Further, payments may be made by the Department of
12Public Health and the Department of Human Services (acting as
13successor to the Department of Public Health under the
14Department of Human Services Act) from their respective
15appropriations for grants for medical care to or on behalf of
16premature and high-mortality risk infants and their mothers and
17for grants for supplemental food supplies provided under the
18United States Department of Agriculture Women, Infants and
19Children Nutrition Program, for any fiscal year without regard
20to the fact that the services being compensated for by such
21payment may have been rendered in a prior fiscal year, except
22as required by subsection (j) of this Section. Beginning on
23June 30, 2021, payments made by the Department of Public Health
24and the Department of Human Services from their respective
25appropriations for grants for medical care to or on behalf of
26premature and high-mortality risk infants and their mothers and

 

 

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1for grants for supplemental food supplies provided under the
2United States Department of Agriculture Women, Infants and
3Children Nutrition Program payable from appropriations that
4have otherwise expired may be paid out of the expiring
5appropriations during the 4-month period ending at the close of
6business on October 31.
7    (d) The Department of Public Health and the Department of
8Human Services (acting as successor to the Department of Public
9Health under the Department of Human Services Act) shall each
10annually submit to the State Comptroller, Senate President,
11Senate Minority Leader, Speaker of the House, House Minority
12Leader, and the respective Chairmen and Minority Spokesmen of
13the Appropriations Committees of the Senate and the House, on
14or before December 31, a report of fiscal year funds used to
15pay for services provided in any prior fiscal year. This report
16shall document by program or service category those
17expenditures from the most recently completed fiscal year used
18to pay for services provided in prior fiscal years.
19    (e) The Department of Healthcare and Family Services, the
20Department of Human Services (acting as successor to the
21Department of Public Aid), and the Department of Human Services
22making fee-for-service payments relating to substance abuse
23treatment services provided during a previous fiscal year shall
24each annually submit to the State Comptroller, Senate
25President, Senate Minority Leader, Speaker of the House, House
26Minority Leader, the respective Chairmen and Minority

 

 

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1Spokesmen of the Appropriations Committees of the Senate and
2the House, on or before November 30, a report that shall
3document by program or service category those expenditures from
4the most recently completed fiscal year used to pay for (i)
5services provided in prior fiscal years and (ii) services for
6which claims were received in prior fiscal years.
7    (f) The Department of Human Services (as successor to the
8Department of Public Aid) shall annually submit to the State
9Comptroller, Senate President, Senate Minority Leader, Speaker
10of the House, House Minority Leader, and the respective
11Chairmen and Minority Spokesmen of the Appropriations
12Committees of the Senate and the House, on or before December
1331, a report of fiscal year funds used to pay for services
14(other than medical care) provided in any prior fiscal year.
15This report shall document by program or service category those
16expenditures from the most recently completed fiscal year used
17to pay for services provided in prior fiscal years.
18    (g) In addition, each annual report required to be
19submitted by the Department of Healthcare and Family Services
20under subsection (e) shall include the following information
21with respect to the State's Medicaid program:
22        (1) Explanations of the exact causes of the variance
23    between the previous year's estimated and actual
24    liabilities.
25        (2) Factors affecting the Department of Healthcare and
26    Family Services' liabilities, including but not limited to

 

 

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1    numbers of aid recipients, levels of medical service
2    utilization by aid recipients, and inflation in the cost of
3    medical services.
4        (3) The results of the Department's efforts to combat
5    fraud and abuse.
6    (h) As provided in Section 4 of the General Assembly
7Compensation Act, any utility bill for service provided to a
8General Assembly member's district office for a period
9including portions of 2 consecutive fiscal years may be paid
10from funds appropriated for such expenditure in either fiscal
11year.
12    (i) An agency which administers a fund classified by the
13Comptroller as an internal service fund may issue rules for:
14        (1) billing user agencies in advance for payments or
15    authorized inter-fund transfers based on estimated charges
16    for goods or services;
17        (2) issuing credits, refunding through inter-fund
18    transfers, or reducing future inter-fund transfers during
19    the subsequent fiscal year for all user agency payments or
20    authorized inter-fund transfers received during the prior
21    fiscal year which were in excess of the final amounts owed
22    by the user agency for that period; and
23        (3) issuing catch-up billings to user agencies during
24    the subsequent fiscal year for amounts remaining due when
25    payments or authorized inter-fund transfers received from
26    the user agency during the prior fiscal year were less than

 

 

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1    the total amount owed for that period.
2User agencies are authorized to reimburse internal service
3funds for catch-up billings by vouchers drawn against their
4respective appropriations for the fiscal year in which the
5catch-up billing was issued or by increasing an authorized
6inter-fund transfer during the current fiscal year. For the
7purposes of this Act, "inter-fund transfers" means transfers
8without the use of the voucher-warrant process, as authorized
9by Section 9.01 of the State Comptroller Act.
10    (i-1) Beginning on July 1, 2021, all outstanding
11liabilities, not payable during the 4-month lapse period as
12described in subsections (b-1), (b-3), (b-4), (b-5), (b-6), and
13(c) of this Section, that are made from appropriations for that
14purpose for any fiscal year, without regard to the fact that
15the services being compensated for by those payments may have
16been rendered in a prior fiscal year, are limited to only those
17claims that have been incurred but for which a proper bill or
18invoice as defined by the State Prompt Payment Act has not been
19received by September 30th following the end of the fiscal year
20in which the service was rendered.
21    (j) Notwithstanding any other provision of this Act, the
22aggregate amount of payments to be made without regard for
23fiscal year limitations as contained in subsections (b-1),
24(b-3), (b-4), (b-5), (b-6), and (c) of this Section, and
25determined by using Generally Accepted Accounting Principles,
26shall not exceed the following amounts:

 

 

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1        (1) $6,000,000,000 for outstanding liabilities related
2    to fiscal year 2012;
3        (2) $5,300,000,000 for outstanding liabilities related
4    to fiscal year 2013;
5        (3) $4,600,000,000 for outstanding liabilities related
6    to fiscal year 2014;
7        (4) $4,000,000,000 for outstanding liabilities related
8    to fiscal year 2015;
9        (5) $3,300,000,000 for outstanding liabilities related
10    to fiscal year 2016;
11        (6) $2,600,000,000 for outstanding liabilities related
12    to fiscal year 2017;
13        (7) $2,000,000,000 for outstanding liabilities related
14    to fiscal year 2018;
15        (8) $1,300,000,000 for outstanding liabilities related
16    to fiscal year 2019;
17        (9) $600,000,000 for outstanding liabilities related
18    to fiscal year 2020; and
19        (10) $0 for outstanding liabilities related to fiscal
20    year 2021 and fiscal years thereafter.
21    (k) Department of Healthcare and Family Services Medical
22Assistance Payments.
23        (1) Definition of Medical Assistance.
24            For purposes of this subsection, the term "Medical
25        Assistance" shall include, but not necessarily be
26        limited to, medical programs and services authorized

 

 

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1        under Titles XIX and XXI of the Social Security Act,
2        the Illinois Public Aid Code, the Children's Health
3        Insurance Program Act, the Covering ALL KIDS Health
4        Insurance Act, the Long Term Acute Care Hospital
5        Quality Improvement Transfer Program Act, and medical
6        care to or on behalf of persons suffering from chronic
7        renal disease, persons suffering from hemophilia, and
8        victims of sexual assault.
9        (2) Limitations on Medical Assistance payments that
10    may be paid from future fiscal year appropriations.
11            (A) The maximum amounts of annual unpaid Medical
12        Assistance bills received and recorded by the
13        Department of Healthcare and Family Services on or
14        before June 30th of a particular fiscal year
15        attributable in aggregate to the General Revenue Fund,
16        Healthcare Provider Relief Fund, Tobacco Settlement
17        Recovery Fund, Long-Term Care Provider Fund, and the
18        Drug Rebate Fund that may be paid in total by the
19        Department from future fiscal year Medical Assistance
20        appropriations to those funds are: $700,000,000 for
21        fiscal year 2013 and $100,000,000 for fiscal year 2014
22        and each fiscal year thereafter.
23            (B) Bills for Medical Assistance services rendered
24        in a particular fiscal year, but received and recorded
25        by the Department of Healthcare and Family Services
26        after June 30th of that fiscal year, may be paid from

 

 

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1        either appropriations for that fiscal year or future
2        fiscal year appropriations for Medical Assistance.
3        Such payments shall not be subject to the requirements
4        of subparagraph (A).
5            (C) Medical Assistance bills received by the
6        Department of Healthcare and Family Services in a
7        particular fiscal year, but subject to payment amount
8        adjustments in a future fiscal year may be paid from a
9        future fiscal year's appropriation for Medical
10        Assistance. Such payments shall not be subject to the
11        requirements of subparagraph (A).
12            (D) Medical Assistance payments made by the
13        Department of Healthcare and Family Services from
14        funds other than those specifically referenced in
15        subparagraph (A) may be made from appropriations for
16        those purposes for any fiscal year without regard to
17        the fact that the Medical Assistance services being
18        compensated for by such payment may have been rendered
19        in a prior fiscal year. Such payments shall not be
20        subject to the requirements of subparagraph (A).
21        (3) Extended lapse period for Department of Healthcare
22    and Family Services Medical Assistance payments.
23    Notwithstanding any other State law to the contrary,
24    outstanding Department of Healthcare and Family Services
25    Medical Assistance liabilities, as of June 30th, payable
26    from appropriations which have otherwise expired, may be

 

 

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1    paid out of the expiring appropriations during the 6-month
2    period ending at the close of business on December 31st.
3    (l) The changes to this Section made by Public Act 97-691
4shall be effective for payment of Medical Assistance bills
5incurred in fiscal year 2013 and future fiscal years. The
6changes to this Section made by Public Act 97-691 shall not be
7applied to Medical Assistance bills incurred in fiscal year
82012 or prior fiscal years.
9    (m) The Comptroller must issue payments against
10outstanding liabilities that were received prior to the lapse
11period deadlines set forth in this Section as soon thereafter
12as practical, but no payment may be issued after the 4 months
13following the lapse period deadline without the signed
14authorization of the Comptroller and the Governor.
15(Source: P.A. 97-75, eff. 6-30-11; 97-333, eff. 8-12-11;
1697-691, eff. 7-1-12; 97-732, eff. 6-30-12; 97-932, eff.
178-10-12; 98-8, eff. 5-3-13; 98-24, eff. 6-19-13; 98-215, eff.
188-9-13; 98-463, eff. 8-16-13; revised 9-9-13.)
 
19    Section 99. Effective date. This Act takes effect July 1,
202014.