99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB0002

 

Introduced 1/15/2015, by Sen. Dan Kotowski - Heather A. Steans

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/5m new
30 ILCS 105/25  from Ch. 127, par. 161

    Amends the State Finance Act. Provides that no transfers may be made from the General Revenue Fund to certain special funds without additional express authority granted on or after the effective date of this amendatory Act. Provides that the purpose of this Act is to evaluate spending from the General Revenue Fund for Fiscal Year 2016, in order to determine the impact that transfers to certain Funds supported by set statutory formulas have on the cash flow of the State throughout the course of the State's fiscal year. Provides that beginning on July 1, 2019, all outstanding liabilities, not payable during the 4-month lapse period are limited to only those claims that have been incurred but for which a proper bill or invoice as defined by the State Prompt Payment Act has been received by September 30th following the end of the fiscal year in which the service was rendered. Effective immediately.


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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, and adding Section 5m as follows:
 
6    (30 ILCS 105/5m new)
7    Sec. 5m. Transfers limited.
8    (a) The purpose of this Section is to evaluate spending
9from the General Revenue Fund for Fiscal Year 2016 in order to
10determine the impact that transfers to certain funds supported
11by a set statutory formula have on the cash flow of the State
12throughout the course of the State's fiscal year.
13    (b) Notwithstanding any provision of law to the contrary,
14in Fiscal Year 2016 moneys may not be transferred from the
15General Revenue Fund to any of the following funds, including,
16but not limited to, transfers expressly authorized under the
17statutory provisions cited in this subsection (b), without
18additional express statutory authority granted on or after the
19effective date of this amendatory Act of the 99th General
20Assembly:
21        (1) The Agricultural Premium Fund, under subsection
22    (d) of Section 8g or subsection (a) of Section 8.25e of
23    State Finance Act.

 

 

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1        (2) The Alzheimer's Disease Research Fund, under
2    Section 510 of the Illinois Income Tax Act, or Section 2 of
3    the Alzheimer's Disease Research Act.
4        (3) The Assistance to the Homeless Fund, under Section
5    510 or 516 of the Illinois Income Tax Act.
6        (4) The Child Abuse Prevention Fund, under Section 6b-4
7    of the State Finance Act, or under Section 508 or 510 of
8    the Illinois Income Tax Act.
9        (5) The Coal Technology Development Assistance Fund,
10    under Section 3 of the Illinois Coal Technology Development
11    Assistance Act.
12        (6) The Convention Center Support Fund, under
13    subsection (l-5) of Section 5 of the Metropolitan Pier and
14    Exposition Authority Act.
15        (7) The Diabetes Research Checkoff Fund, under
16    subsection (c) of Section 509 or 510 of the Illinois Income
17    Tax Act.
18        (8) The Downstate Public Transportation Fund, under
19    Section 2-3 of the Downstate Public Transportation Act.
20        (9) The Fair and Exposition Fund, under subsection (d)
21    of Section 8g or subsection (a) of Section 8.25e of the
22    State Finance Act.
23        (10) The Illinois Military Family Relief Fund, under
24    Section 507Y or 510 of the Illinois Income Tax Act.
25        (11) The Illinois Standardbred Breeders Fund, under
26    subsection (d) of Section 8g or subsection (a) of Section

 

 

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1    8.25e of the State Finance Act.
2        (12) The Illinois Thoroughbred Breeders Fund, under
3    subsection (d) of Section 8g or subsection (a) of Section
4    8.25e of the State Finance Act.
5        (13) The Illinois Veterans' Rehabilitation Fund, under
6    subsection (d) of Section 8g the State Finance Act, or
7    subsection (d) of Section 28.1 of the Illinois Horse Racing
8    Act of 1975.
9        (14) The Illinois Wildlife Preservation Fund, under
10    subsection (a) of Section 4 of the Illinois Non-Game
11    Wildlife Protection Act.
12        (15) The Intercity Passenger Rail Fund, under
13    subsection (b) of Section 6z-68 of the State Finance Act.
14        (16) The Intermodal Facilities Promotion Fund, under
15    Section 15 of the Intermodal Facilities Promotion Act.
16        (17) The Live and Learn Fund, under Section 6z-35 of
17    the State Finance Act.
18        (18) The Local Government Distributive Fund, under
19    Section 1 of the State Revenue Sharing Act, or under
20    Section 901 of the Illinois Income Tax Act.
21        (19) The Metropolitan Pier and Exposition Authority
22    Incentive Fund, under subsection (l) of Section 5 of the
23    Metropolitan Pier and Exposition Authority Act.
24        (20) The Partners for Conservation Fund, under
25    subsection (b) of Section 6z-32 of the State Finance Act.
26        (21) The Penny Severns Breast and Cervical Cancer

 

 

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1    Research Fund, under Section 507L or 510 of the Illinois
2    Income Tax Act.
3        (22) The Public Transportation Fund, under subsection
4    (a) of Section 4.09 of the Regional Transportation
5    Authority Act.
6        (23) The State Treasurer's Bank Services Trust Fund,
7    under Section 15 of the State Treasurer's Bank Services
8    Trust Fund Act.
9        (24) The Tourism Promotion Fund, under Section 4a of
10    the Illinois Promotion Act.
11        (25) University of Illinois Hospital Services Fund,
12    under paragraph (1.5) of subsection (a) of Section 6z-30 of
13    the State Finance Act.
14        (26) The Youth Alcoholism and Substance Abuse
15    Prevention Fund, under subsection (c) of Section 8g of the
16    State Finance Act.
 
17    (30 ILCS 105/25)  (from Ch. 127, par. 161)
18    Sec. 25. Fiscal year limitations.
19    (a) All appropriations shall be available for expenditure
20for the fiscal year or for a lesser period if the Act making
21that appropriation so specifies. A deficiency or emergency
22appropriation shall be available for expenditure only through
23June 30 of the year when the Act making that appropriation is
24enacted unless that Act otherwise provides.
25    (b) Outstanding liabilities as of June 30, payable from

 

 

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1appropriations which have otherwise expired, may be paid out of
2the expiring appropriations during the 2-month period ending at
3the close of business on August 31. Any service involving
4professional or artistic skills or any personal services by an
5employee whose compensation is subject to income tax
6withholding must be performed as of June 30 of the fiscal year
7in order to be considered an "outstanding liability as of June
830" that is thereby eligible for payment out of the expiring
9appropriation.
10    (b-1) However, payment of tuition reimbursement claims
11under Section 14-7.03 or 18-3 of the School Code may be made by
12the State Board of Education from its appropriations for those
13respective purposes for any fiscal year, even though the claims
14reimbursed by the payment may be claims attributable to a prior
15fiscal year, and payments may be made at the direction of the
16State Superintendent of Education from the fund from which the
17appropriation is made without regard to any fiscal year
18limitations, except as required by subsection (j) of this
19Section. Beginning on June 30, 2021, payment of tuition
20reimbursement claims under Section 14-7.03 or 18-3 of the
21School Code as of June 30, payable from appropriations that
22have otherwise expired, may be paid out of the expiring
23appropriation during the 4-month period ending at the close of
24business on October 31.
25    (b-2) All outstanding liabilities as of June 30, 2010,
26payable from appropriations that would otherwise expire at the

 

 

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1conclusion of the lapse period for fiscal year 2010, and
2interest penalties payable on those liabilities under the State
3Prompt Payment Act, may be paid out of the expiring
4appropriations until December 31, 2010, 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, 2010.
8    (b-2.5) All outstanding liabilities as of June 30, 2011,
9payable from appropriations that would otherwise expire at the
10conclusion of the lapse period for fiscal year 2011, and
11interest penalties payable on those liabilities under the State
12Prompt Payment Act, may be paid out of the expiring
13appropriations until December 31, 2011, 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, 2011.
17    (b-2.6) All outstanding liabilities as of June 30, 2012,
18payable from appropriations that would otherwise expire at the
19conclusion of the lapse period for fiscal year 2012, and
20interest penalties payable on those liabilities under the State
21Prompt Payment Act, may be paid out of the expiring
22appropriations until December 31, 2012, without regard to the
23fiscal year in which the payment is made, as long as vouchers
24for the liabilities are received by the Comptroller no later
25than August 31, 2012.
26    (b-2.7) For fiscal years 2012, 2013, and 2014, interest

 

 

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1penalties payable under the State Prompt Payment Act associated
2with a voucher for which payment is issued after June 30 may be
3paid out of the next fiscal year's appropriation. The future
4year appropriation must be for the same purpose and from the
5same fund as the original payment. An interest penalty voucher
6submitted against a future year appropriation must be submitted
7within 60 days after the issuance of the associated voucher,
8and the Comptroller must issue the interest payment within 60
9days after acceptance of the interest voucher.
10    (b-3) Medical payments may be made by the Department of
11Veterans' Affairs from its appropriations for those purposes
12for any fiscal year, without regard to the fact that the
13medical services being compensated for by such payment may have
14been rendered in a prior fiscal year, except as required by
15subsection (j) of this Section. Beginning on June 30, 2021,
16medical payments payable from appropriations that have
17otherwise expired may be paid out of the expiring appropriation
18during the 4-month period ending at the close of business on
19October 31.
20    (b-4) Medical payments and child care payments may be made
21by the Department of Human Services (as successor to the
22Department of Public Aid) from appropriations for those
23purposes for any fiscal year, without regard to the fact that
24the medical or child care services being compensated for by
25such payment may have been rendered in a prior fiscal year; and
26payments may be made at the direction of the Department of

 

 

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1Healthcare and Family Services (or successor agency) from the
2Health Insurance Reserve Fund without regard to any fiscal year
3limitations, except as required by subsection (j) of this
4Section. Beginning on June 30, 2019 2021, medical and child
5care payments made by the Department of Human Services and
6payments made at the discretion of the Department of Healthcare
7and Family Services (or successor agency) from the Health
8Insurance Reserve Fund and payable from appropriations that
9have otherwise expired may be paid out of the expiring
10appropriation during the 4-month period ending at the close of
11business on October 31.
12    (b-5) Medical payments may be made by the Department of
13Human Services from its appropriations relating to substance
14abuse treatment services for any fiscal year, without regard to
15the fact that the medical services being compensated for by
16such payment may have been rendered in a prior fiscal year,
17provided the payments are made on a fee-for-service basis
18consistent with requirements established for Medicaid
19reimbursement by the Department of Healthcare and Family
20Services, except as required by subsection (j) of this Section.
21Beginning on June 30, 2019 2021, medical payments made by the
22Department of Human Services relating to substance abuse
23treatment services payable from appropriations that have
24otherwise expired may be paid out of the expiring appropriation
25during the 4-month period ending at the close of business on
26October 31.

 

 

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1    (b-6) Additionally, payments may be made by the Department
2of Human Services from its appropriations, or any other State
3agency from its appropriations with the approval of the
4Department of Human Services, from the Immigration Reform and
5Control Fund for purposes authorized pursuant to the
6Immigration Reform and Control Act of 1986, without regard to
7any fiscal year limitations, except as required by subsection
8(j) of this Section. Beginning on June 30, 2021, payments made
9by the Department of Human Services from the Immigration Reform
10and Control Fund for purposes authorized pursuant to the
11Immigration Reform and Control Act of 1986 payable from
12appropriations that have otherwise expired may be paid out of
13the expiring appropriation during the 4-month period ending at
14the close of business on October 31.
15    (b-7) Payments may be made in accordance with a plan
16authorized by paragraph (11) or (12) of Section 405-105 of the
17Department of Central Management Services Law from
18appropriations for those payments without regard to fiscal year
19limitations.
20    (b-8) Reimbursements to eligible airport sponsors for the
21construction or upgrading of Automated Weather Observation
22Systems may be made by the Department of Transportation from
23appropriations for those purposes for any fiscal year, without
24regard to the fact that the qualification or obligation may
25have occurred in a prior fiscal year, provided that at the time
26the expenditure was made the project had been approved by the

 

 

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1Department of Transportation prior to June 1, 2012 and, as a
2result of recent changes in federal funding formulas, can no
3longer receive federal reimbursement.
4    (b-9) Medical payments not exceeding $150,000,000 may be
5made by the Department on Aging from its appropriations
6relating to the Community Care Program for fiscal year 2014,
7without regard to the fact that the medical services being
8compensated for by such payment may have been rendered in a
9prior fiscal year, provided the payments are made on a
10fee-for-service basis consistent with requirements established
11for Medicaid reimbursement by the Department of Healthcare and
12Family Services, except as required by subsection (j) of this
13Section.
14    (c) Further, payments may be made by the Department of
15Public Health and the Department of Human Services (acting as
16successor to the Department of Public Health under the
17Department of Human Services Act) from their respective
18appropriations for grants for medical care to or on behalf of
19premature and high-mortality risk infants and their mothers and
20for grants for supplemental food supplies provided under the
21United States Department of Agriculture Women, Infants and
22Children Nutrition Program, for any fiscal year without regard
23to the fact that the services being compensated for by such
24payment may have been rendered in a prior fiscal year, except
25as required by subsection (j) of this Section. Beginning on
26June 30, 2019 2021, payments made by the Department of Public

 

 

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

 

 

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1each annually submit to the State Comptroller, Senate
2President, Senate Minority Leader, Speaker of the House, House
3Minority Leader, the respective Chairmen and Minority
4Spokesmen of the Appropriations Committees of the Senate and
5the House, on or before November 30, a report that shall
6document by program or service category those expenditures from
7the most recently completed fiscal year used to pay for (i)
8services provided in prior fiscal years and (ii) services for
9which claims were received in prior fiscal years.
10    (f) The Department of Human Services (as successor to the
11Department of Public Aid) shall annually submit to the State
12Comptroller, Senate President, Senate Minority Leader, Speaker
13of the House, House Minority Leader, and the respective
14Chairmen and Minority Spokesmen of the Appropriations
15Committees of the Senate and the House, on or before December
1631, a report of fiscal year funds used to pay for services
17(other than medical care) provided in any prior fiscal year.
18This report shall document by program or service category those
19expenditures from the most recently completed fiscal year used
20to pay for services provided in prior fiscal years.
21    (g) In addition, each annual report required to be
22submitted by the Department of Healthcare and Family Services
23under subsection (e) shall include the following information
24with respect to the State's Medicaid program:
25        (1) Explanations of the exact causes of the variance
26    between the previous year's estimated and actual

 

 

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1    liabilities.
2        (2) Factors affecting the Department of Healthcare and
3    Family Services' liabilities, including but not limited to
4    numbers of aid recipients, levels of medical service
5    utilization by aid recipients, and inflation in the cost of
6    medical services.
7        (3) The results of the Department's efforts to combat
8    fraud and abuse.
9    (h) As provided in Section 4 of the General Assembly
10Compensation Act, any utility bill for service provided to a
11General Assembly member's district office for a period
12including portions of 2 consecutive fiscal years may be paid
13from funds appropriated for such expenditure in either fiscal
14year.
15    (i) An agency which administers a fund classified by the
16Comptroller as an internal service fund may issue rules for:
17        (1) billing user agencies in advance for payments or
18    authorized inter-fund transfers based on estimated charges
19    for goods or services;
20        (2) issuing credits, refunding through inter-fund
21    transfers, or reducing future inter-fund transfers during
22    the subsequent fiscal year for all user agency payments or
23    authorized inter-fund transfers received during the prior
24    fiscal year which were in excess of the final amounts owed
25    by the user agency for that period; and
26        (3) issuing catch-up billings to user agencies during

 

 

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1    the subsequent fiscal year for amounts remaining due when
2    payments or authorized inter-fund transfers received from
3    the user agency during the prior fiscal year were less than
4    the total amount owed for that period.
5User agencies are authorized to reimburse internal service
6funds for catch-up billings by vouchers drawn against their
7respective appropriations for the fiscal year in which the
8catch-up billing was issued or by increasing an authorized
9inter-fund transfer during the current fiscal year. For the
10purposes of this Act, "inter-fund transfers" means transfers
11without the use of the voucher-warrant process, as authorized
12by Section 9.01 of the State Comptroller Act.
13    (i-0.5) Beginning on July 1, 2019, all outstanding
14liabilities, not payable during the 4-month lapse period as
15described in subsection (b-4) of this Section, that are made
16from appropriations for that purpose for any fiscal year,
17without regard to the fact that the services being compensated
18for by those payments may have been rendered in a prior fiscal
19year, are limited to only those claims that have been incurred
20but for which a proper bill or invoice as defined by the State
21Prompt Payment Act has been received by September 30th
22following the end of the fiscal year in which the service was
23rendered.
24    (i-1) Beginning on July 1, 2021, all outstanding
25liabilities, not payable during the 4-month lapse period as
26described in subsections (b-1), (b-3), and (b-4), (b-5), (b-6),

 

 

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1and (c) of this Section, that are made from appropriations for
2that purpose for any fiscal year, without regard to the fact
3that the services being compensated for by those payments may
4have been rendered in a prior fiscal year, are limited to only
5those claims that have been incurred but for which a proper
6bill or invoice as defined by the State Prompt Payment Act has
7not been received by September 30th following the end of the
8fiscal year in which the service was rendered.
9    (j) Notwithstanding any other provision of this Act, the
10aggregate amount of payments to be made without regard for
11fiscal year limitations as contained in subsections (b-1),
12(b-3), (b-4), (b-5), (b-6), and (c) of this Section, and
13determined by using Generally Accepted Accounting Principles,
14shall not exceed the following amounts:
15        (1) $6,000,000,000 for outstanding liabilities related
16    to fiscal year 2012;
17        (2) $5,300,000,000 for outstanding liabilities related
18    to fiscal year 2013;
19        (3) $4,600,000,000 for outstanding liabilities related
20    to fiscal year 2014;
21        (4) $4,000,000,000 for outstanding liabilities related
22    to fiscal year 2015;
23        (5) $3,300,000,000 for outstanding liabilities related
24    to fiscal year 2016;
25        (6) $2,600,000,000 for outstanding liabilities related
26    to fiscal year 2017;

 

 

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1        (7) $2,000,000,000 for outstanding liabilities related
2    to fiscal year 2018;
3        (8) $1,300,000,000 for outstanding liabilities related
4    to fiscal year 2019;
5        (9) $600,000,000 for outstanding liabilities related
6    to fiscal year 2020; and
7        (10) $0 for outstanding liabilities related to fiscal
8    year 2021 and fiscal years thereafter.
9    (k) Department of Healthcare and Family Services Medical
10Assistance Payments.
11        (1) Definition of Medical Assistance.
12            For purposes of this subsection, the term "Medical
13        Assistance" shall include, but not necessarily be
14        limited to, medical programs and services authorized
15        under Titles XIX and XXI of the Social Security Act,
16        the Illinois Public Aid Code, the Children's Health
17        Insurance Program Act, the Covering ALL KIDS Health
18        Insurance Act, the Long Term Acute Care Hospital
19        Quality Improvement Transfer Program Act, and medical
20        care to or on behalf of persons suffering from chronic
21        renal disease, persons suffering from hemophilia, and
22        victims of sexual assault.
23        (2) Limitations on Medical Assistance payments that
24    may be paid from future fiscal year appropriations.
25            (A) The maximum amounts of annual unpaid Medical
26        Assistance bills received and recorded by the

 

 

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1        Department of Healthcare and Family Services on or
2        before June 30th of a particular fiscal year
3        attributable in aggregate to the General Revenue Fund,
4        Healthcare Provider Relief Fund, Tobacco Settlement
5        Recovery Fund, Long-Term Care Provider Fund, and the
6        Drug Rebate Fund that may be paid in total by the
7        Department from future fiscal year Medical Assistance
8        appropriations to those funds are: $700,000,000 for
9        fiscal year 2013 and $100,000,000 for fiscal year 2014
10        and each fiscal year thereafter.
11            (B) Bills for Medical Assistance services rendered
12        in a particular fiscal year, but received and recorded
13        by the Department of Healthcare and Family Services
14        after June 30th of that fiscal year, may be paid from
15        either appropriations for that fiscal year or future
16        fiscal year appropriations for Medical Assistance.
17        Such payments shall not be subject to the requirements
18        of subparagraph (A).
19            (C) Medical Assistance bills received by the
20        Department of Healthcare and Family Services in a
21        particular fiscal year, but subject to payment amount
22        adjustments in a future fiscal year may be paid from a
23        future fiscal year's appropriation for Medical
24        Assistance. Such payments shall not be subject to the
25        requirements of subparagraph (A).
26            (D) Medical Assistance payments made by the

 

 

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1        Department of Healthcare and Family Services from
2        funds other than those specifically referenced in
3        subparagraph (A) may be made from appropriations for
4        those purposes for any fiscal year without regard to
5        the fact that the Medical Assistance services being
6        compensated for by such payment may have been rendered
7        in a prior fiscal year. Such payments shall not be
8        subject to the requirements of subparagraph (A).
9        (3) Extended lapse period for Department of Healthcare
10    and Family Services Medical Assistance payments.
11    Notwithstanding any other State law to the contrary,
12    outstanding Department of Healthcare and Family Services
13    Medical Assistance liabilities, as of June 30th, payable
14    from appropriations which have otherwise expired, may be
15    paid out of the expiring appropriations during the 6-month
16    period ending at the close of business on December 31st.
17    (l) The changes to this Section made by Public Act 97-691
18shall be effective for payment of Medical Assistance bills
19incurred in fiscal year 2013 and future fiscal years. The
20changes to this Section made by Public Act 97-691 shall not be
21applied to Medical Assistance bills incurred in fiscal year
222012 or prior fiscal years.
23    (m) The Comptroller must issue payments against
24outstanding liabilities that were received prior to the lapse
25period deadlines set forth in this Section as soon thereafter
26as practical, but no payment may be issued after the 4 months

 

 

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1following the lapse period deadline without the signed
2authorization of the Comptroller and the Governor.
3(Source: P.A. 97-75, eff. 6-30-11; 97-333, eff. 8-12-11;
497-691, eff. 7-1-12; 97-732, eff. 6-30-12; 97-932, eff.
58-10-12; 98-8, eff. 5-3-13; 98-24, eff. 6-19-13; 98-215, eff.
68-9-13; 98-463, eff. 8-16-13; 98-756, eff. 7-16-14.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.