Public Act 099-0002
 
HB0318 EnrolledLRB099 04451 SXM 24479 b

    AN ACT concerning finance.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Administrative Procedure Act is
amended by changing Section 5-45 as follows:
 
    (5 ILCS 100/5-45)  (from Ch. 127, par. 1005-45)
    Sec. 5-45. Emergency rulemaking.
    (a) "Emergency" means the existence of any situation that
any agency finds reasonably constitutes a threat to the public
interest, safety, or welfare.
    (b) If any agency finds that an emergency exists that
requires adoption of a rule upon fewer days than is required by
Section 5-40 and states in writing its reasons for that
finding, the agency may adopt an emergency rule without prior
notice or hearing upon filing a notice of emergency rulemaking
with the Secretary of State under Section 5-70. The notice
shall include the text of the emergency rule and shall be
published in the Illinois Register. Consent orders or other
court orders adopting settlements negotiated by an agency may
be adopted under this Section. Subject to applicable
constitutional or statutory provisions, an emergency rule
becomes effective immediately upon filing under Section 5-65 or
at a stated date less than 10 days thereafter. The agency's
finding and a statement of the specific reasons for the finding
shall be filed with the rule. The agency shall take reasonable
and appropriate measures to make emergency rules known to the
persons who may be affected by them.
    (c) An emergency rule may be effective for a period of not
longer than 150 days, but the agency's authority to adopt an
identical rule under Section 5-40 is not precluded. No
emergency rule may be adopted more than once in any 24 month
period, except that this limitation on the number of emergency
rules that may be adopted in a 24 month period does not apply
to (i) emergency rules that make additions to and deletions
from the Drug Manual under Section 5-5.16 of the Illinois
Public Aid Code or the generic drug formulary under Section
3.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
emergency rules adopted by the Pollution Control Board before
July 1, 1997 to implement portions of the Livestock Management
Facilities Act, (iii) emergency rules adopted by the Illinois
Department of Public Health under subsections (a) through (i)
of Section 2 of the Department of Public Health Act when
necessary to protect the public's health, (iv) emergency rules
adopted pursuant to subsection (n) of this Section, (v)
emergency rules adopted pursuant to subsection (o) of this
Section, or (vi) emergency rules adopted pursuant to subsection
(c-5) of this Section. Two or more emergency rules having
substantially the same purpose and effect shall be deemed to be
a single rule for purposes of this Section.
    (c-5) To facilitate the maintenance of the program of group
health benefits provided to annuitants, survivors, and retired
employees under the State Employees Group Insurance Act of
1971, rules to alter the contributions to be paid by the State,
annuitants, survivors, retired employees, or any combination
of those entities, for that program of group health benefits,
shall be adopted as emergency rules. The adoption of those
rules shall be considered an emergency and necessary for the
public interest, safety, and welfare.
    (d) In order to provide for the expeditious and timely
implementation of the State's fiscal year 1999 budget,
emergency rules to implement any provision of Public Act 90-587
or 90-588 or any other budget initiative for fiscal year 1999
may be adopted in accordance with this Section by the agency
charged with administering that provision or initiative,
except that the 24-month limitation on the adoption of
emergency rules and the provisions of Sections 5-115 and 5-125
do not apply to rules adopted under this subsection (d). The
adoption of emergency rules authorized by this subsection (d)
shall be deemed to be necessary for the public interest,
safety, and welfare.
    (e) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2000 budget,
emergency rules to implement any provision of this amendatory
Act of the 91st General Assembly or any other budget initiative
for fiscal year 2000 may be adopted in accordance with this
Section by the agency charged with administering that provision
or initiative, except that the 24-month limitation on the
adoption of emergency rules and the provisions of Sections
5-115 and 5-125 do not apply to rules adopted under this
subsection (e). The adoption of emergency rules authorized by
this subsection (e) shall be deemed to be necessary for the
public interest, safety, and welfare.
    (f) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2001 budget,
emergency rules to implement any provision of this amendatory
Act of the 91st General Assembly or any other budget initiative
for fiscal year 2001 may be adopted in accordance with this
Section by the agency charged with administering that provision
or initiative, except that the 24-month limitation on the
adoption of emergency rules and the provisions of Sections
5-115 and 5-125 do not apply to rules adopted under this
subsection (f). The adoption of emergency rules authorized by
this subsection (f) shall be deemed to be necessary for the
public interest, safety, and welfare.
    (g) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2002 budget,
emergency rules to implement any provision of this amendatory
Act of the 92nd General Assembly or any other budget initiative
for fiscal year 2002 may be adopted in accordance with this
Section by the agency charged with administering that provision
or initiative, except that the 24-month limitation on the
adoption of emergency rules and the provisions of Sections
5-115 and 5-125 do not apply to rules adopted under this
subsection (g). The adoption of emergency rules authorized by
this subsection (g) shall be deemed to be necessary for the
public interest, safety, and welfare.
    (h) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2003 budget,
emergency rules to implement any provision of this amendatory
Act of the 92nd General Assembly or any other budget initiative
for fiscal year 2003 may be adopted in accordance with this
Section by the agency charged with administering that provision
or initiative, except that the 24-month limitation on the
adoption of emergency rules and the provisions of Sections
5-115 and 5-125 do not apply to rules adopted under this
subsection (h). The adoption of emergency rules authorized by
this subsection (h) shall be deemed to be necessary for the
public interest, safety, and welfare.
    (i) In order to provide for the expeditious and timely
implementation of the State's fiscal year 2004 budget,
emergency rules to implement any provision of this amendatory
Act of the 93rd General Assembly or any other budget initiative
for fiscal year 2004 may be adopted in accordance with this
Section by the agency charged with administering that provision
or initiative, except that the 24-month limitation on the
adoption of emergency rules and the provisions of Sections
5-115 and 5-125 do not apply to rules adopted under this
subsection (i). The adoption of emergency rules authorized by
this subsection (i) shall be deemed to be necessary for the
public interest, safety, and welfare.
    (j) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2005 budget as provided under the Fiscal Year 2005 Budget
Implementation (Human Services) Act, emergency rules to
implement any provision of the Fiscal Year 2005 Budget
Implementation (Human Services) Act may be adopted in
accordance with this Section by the agency charged with
administering that provision, except that the 24-month
limitation on the adoption of emergency rules and the
provisions of Sections 5-115 and 5-125 do not apply to rules
adopted under this subsection (j). The Department of Public Aid
may also adopt rules under this subsection (j) necessary to
administer the Illinois Public Aid Code and the Children's
Health Insurance Program Act. The adoption of emergency rules
authorized by this subsection (j) shall be deemed to be
necessary for the public interest, safety, and welfare.
    (k) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2006 budget, emergency rules to implement any provision of this
amendatory Act of the 94th General Assembly or any other budget
initiative for fiscal year 2006 may be adopted in accordance
with this Section by the agency charged with administering that
provision or initiative, except that the 24-month limitation on
the adoption of emergency rules and the provisions of Sections
5-115 and 5-125 do not apply to rules adopted under this
subsection (k). The Department of Healthcare and Family
Services may also adopt rules under this subsection (k)
necessary to administer the Illinois Public Aid Code, the
Senior Citizens and Disabled Persons Property Tax Relief Act,
the Senior Citizens and Disabled Persons Prescription Drug
Discount Program Act (now the Illinois Prescription Drug
Discount Program Act), and the Children's Health Insurance
Program Act. The adoption of emergency rules authorized by this
subsection (k) shall be deemed to be necessary for the public
interest, safety, and welfare.
    (l) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2007 budget, the Department of Healthcare and Family Services
may adopt emergency rules during fiscal year 2007, including
rules effective July 1, 2007, in accordance with this
subsection to the extent necessary to administer the
Department's responsibilities with respect to amendments to
the State plans and Illinois waivers approved by the federal
Centers for Medicare and Medicaid Services necessitated by the
requirements of Title XIX and Title XXI of the federal Social
Security Act. The adoption of emergency rules authorized by
this subsection (l) shall be deemed to be necessary for the
public interest, safety, and welfare.
    (m) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2008 budget, the Department of Healthcare and Family Services
may adopt emergency rules during fiscal year 2008, including
rules effective July 1, 2008, in accordance with this
subsection to the extent necessary to administer the
Department's responsibilities with respect to amendments to
the State plans and Illinois waivers approved by the federal
Centers for Medicare and Medicaid Services necessitated by the
requirements of Title XIX and Title XXI of the federal Social
Security Act. The adoption of emergency rules authorized by
this subsection (m) shall be deemed to be necessary for the
public interest, safety, and welfare.
    (n) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2010 budget, emergency rules to implement any provision of this
amendatory Act of the 96th General Assembly or any other budget
initiative authorized by the 96th General Assembly for fiscal
year 2010 may be adopted in accordance with this Section by the
agency charged with administering that provision or
initiative. The adoption of emergency rules authorized by this
subsection (n) shall be deemed to be necessary for the public
interest, safety, and welfare. The rulemaking authority
granted in this subsection (n) shall apply only to rules
promulgated during Fiscal Year 2010.
    (o) In order to provide for the expeditious and timely
implementation of the provisions of the State's fiscal year
2011 budget, emergency rules to implement any provision of this
amendatory Act of the 96th General Assembly or any other budget
initiative authorized by the 96th General Assembly for fiscal
year 2011 may be adopted in accordance with this Section by the
agency charged with administering that provision or
initiative. The adoption of emergency rules authorized by this
subsection (o) is deemed to be necessary for the public
interest, safety, and welfare. The rulemaking authority
granted in this subsection (o) applies only to rules
promulgated on or after the effective date of this amendatory
Act of the 96th General Assembly through June 30, 2011.
    (p) In order to provide for the expeditious and timely
implementation of the provisions of Public Act 97-689,
emergency rules to implement any provision of Public Act 97-689
may be adopted in accordance with this subsection (p) by the
agency charged with administering that provision or
initiative. The 150-day limitation of the effective period of
emergency rules does not apply to rules adopted under this
subsection (p), and the effective period may continue through
June 30, 2013. The 24-month limitation on the adoption of
emergency rules does not apply to rules adopted under this
subsection (p). The adoption of emergency rules authorized by
this subsection (p) is deemed to be necessary for the public
interest, safety, and welfare.
    (q) In order to provide for the expeditious and timely
implementation of the provisions of Articles 7, 8, 9, 11, and
12 of this amendatory Act of the 98th General Assembly,
emergency rules to implement any provision of Articles 7, 8, 9,
11, and 12 of this amendatory Act of the 98th General Assembly
may be adopted in accordance with this subsection (q) by the
agency charged with administering that provision or
initiative. The 24-month limitation on the adoption of
emergency rules does not apply to rules adopted under this
subsection (q). The adoption of emergency rules authorized by
this subsection (q) is deemed to be necessary for the public
interest, safety, and welfare.
    (r) In order to provide for the expeditious and timely
implementation of the provisions of this amendatory Act of the
98th General Assembly, emergency rules to implement this
amendatory Act of the 98th General Assembly may be adopted in
accordance with this subsection (r) by the Department of
Healthcare and Family Services. The 24-month limitation on the
adoption of emergency rules does not apply to rules adopted
under this subsection (r). The adoption of emergency rules
authorized by this subsection (r) is deemed to be necessary for
the public interest, safety, and welfare.
    (s) In order to provide for the expeditious and timely
implementation of the provisions of Sections 5-5b.1 and 5A-2 of
the Illinois Public Aid Code, emergency rules to implement any
provision of Section 5-5b.1 or Section 5A-2 of the Illinois
Public Aid Code may be adopted in accordance with this
subsection (s) by the Department of Healthcare and Family
Services. The rulemaking authority granted in this subsection
(s) shall apply only to those rules adopted prior to July 1,
2015. Notwithstanding any other provision of this Section, any
emergency rule adopted under this subsection (s) shall only
apply to payments made for State fiscal year 2015. The adoption
of emergency rules authorized by this subsection (s) is deemed
to be necessary for the public interest, safety, and welfare.
(Source: P.A. 97-689, eff. 6-14-12; 97-695, eff. 7-1-12;
98-104, eff. 7-22-13; 98-463, eff. 8-16-13; 98-651, eff.
6-16-14.)
 
    Section 10. The Governor's Office of Management and Budget
Act is amended by changing Section 7.2 as follows:
 
    (20 ILCS 3005/7.2)
    Sec. 7.2. Quarterly financial reports. The Office shall
prepare and publish a quarterly financial report to update the
public and the General Assembly on the status of the State's
finances. At a minimum, each report shall include the following
information:
        (1) A review of the State's economic outlook.
        (2) A review of general funds revenue performance, both
    quarterly and year to date, and an evaluation of that
    performance.
        (3) The outlook for future general funds revenue
    performance, including projections of future general funds
    revenues.
        (4) An assessment of the State's financial position,
    including a summary of general fund receipts, transfers,
    expenditures, and liabilities.
        (5) A review of Statewide employment statistics.
        (6) Other information necessary to present the status
    of the State's finances.
        (7) For the report covering the fourth quarter of State
    fiscal year 2015 only, the report shall also include the
    information described in subsection (e) of Section 8.50 of
    the State Finance Act.
In addition, the fourth quarter report for each fiscal year
shall include a summary of fiscal and balanced budget notes
issued by the Office to the General Assembly during the prior
legislative session. Each report shall be posted on the
Office's website within 45 days.
(Source: P.A. 96-555, eff. 8-18-09.)
 
    Section 15. The State Finance Act is amended by changing
Section 13.2 and by adding Section 8.50 as follows:
 
    (30 ILCS 105/8.50 new)
    Sec. 8.50. Special fund transfers.
    (a) In order to maintain the integrity of special funds and
improve stability in the General Revenue Fund, the following
transfers are authorized from the designated funds into the
General Revenue Fund:
Road Fund........................................$250,000,000
Motor Fuel Tax Fund...............................$50,000,000
Food and Drug Safety Fund..........................$1,000,000
Teacher Certificate Fee Revolving Fund.............$5,000,000
Grade Crossing Protection Fund....................$10,000,000
Financial Institution Fund.........................$1,573,600
General Professions Dedicated Fund.................$2,000,000
Lobbyist Registration Administration Fund..........$1,000,000
Agricultural Premium Fund..........................$5,000,000
Fire Prevention Fund..............................$23,000,000
Illinois State Pharmacy Disciplinary Fund..........$2,700,000
Radiation Protection Fund..........................$1,500,000
Hospital Licensure Fund..............................$500,000
Underground Storage Tank Fund.....................$20,000,000
Solid Waste Management Fund.......................$15,000,000
Subtitle D Management Fund.........................$1,000,000
Illinois State Medical Disciplinary Fund..........$10,000,000
Facility Licensing Fund............................$1,000,000
Registered Certified Public Accountants'
    Administration and Disciplinary Fund...........$6,100,000
Motor Vehicle Theft Prevention Fund................$6,000,000
Weights and Measures Fund..........................$2,000,000
State and Local Sales Tax Reform Fund.............$40,000,000
County and Mass Transit District Fund.............$40,000,000
Local Government Tax Fund........................$200,000,000
Illinois Fisheries Management Fund...................$500,000
Capital Development Board Revolving Fund..........$1,500,000
Intercity Passenger Rail Fund........................$370,000
Illinois Health Facilities Planning Fund...........$3,746,000
Emergency Public Health Fund.........................$500,000
TOMA Consumer Protection Fund......................$1,500,000
Fair and Exposition Fund...........................$1,000,000
State Police Vehicle Fund..........................$4,000,000
Nursing Dedicated and Professional Fund............$5,000,000
Underground Resources Conservation Enforcement Fund..$500,000
State Rail Freight Loan Repayment Fund............$10,000,000
Illinois Affordable Housing Trust Fund.............$6,000,000
Home Care Services Agency Licensure Fund...........$1,000,000
Fertilizer Control Fund..............................$500,000
Securities Investors Education Fund................$5,000,000
Used Tire Management Fund.........................$20,000,000
Natural Areas Acquisition Fund....................$6,000,000
I-FLY Fund........................................$1,545,000
Illinois Prescription Drug Discount Program Fund.....$257,100
ICJIA Violence Prevention Special Projects Fund....$3,000,000
Tattoo and Body Piercing
    Establishment Registration Fund..................$250,000
Public Health Laboratory Services Revolving Fund.....$500,000
Provider Inquiry Trust Fund........................$1,300,000
Securities Audit and Enforcement Fund..............$4,000,000
Drug Treatment Fund................................$1,000,000
Feed Control Fund..................................$1,000,000
Plumbing Licensure and Program Fund..................$200,000
Appraisal Administration Fund........................$400,000
Trauma Center Fund.................................$7,000,000
Alternate Fuels Fund...............................$1,500,000
Illinois State Fair Fund...........................$1,000,000
Agricultural Master Fund.............................$400,000
Human Services Priority Capital Program Fund.......$1,680,000
State Asset Forfeiture Fund..........................$250,000
Health Facility Plan Review Fund...................$1,000,000
Illinois Workers' Compensation
    Commission Operations Fund....................$10,000,000
Workforce, Technology, and Economic Development Fund.$300,000
Downstate Transit Improvement Fund................$70,000,000
Renewable Energy Resources Trust Fund..............$3,000,000
Energy Efficiency Trust Fund.......................$6,000,000
Pesticide Control Fund.............................$3,000,000
Partners for Conservation Fund.....................$6,000,000
Wireless Service Emergency Fund....................$7,500,000
Death Certificate Surcharge Fund...................$1,500,000
Illinois Adoption Registry and
    Medical Information Exchange Fund................$232,000
Fund for the Advancement of Education.............$25,000,000
Commitment to Human Services Fund.................$25,000,000
Illinois Standardbred Breeders Fund..................$250,000
Illinois Thoroughbred Breeders Fund..................$250,000
Spinal Cord Injury Paralysis
    Cure Research Trust Fund.......................$1,100,000
Medicaid Buy-In Program Revolving Fund.............$1,700,000
Home Inspector Administration Fund.................$1,000,000
Real Estate Audit Fund...............................$193,600
Illinois AgriFIRST Program Fund......................$204,000
Performance-enhancing Substance Testing Fund.........$365,000
Bank and Trust Company Fund.......................$25,000,000
Natural Resources Restoration Trust Fund...........$1,000,000
Illinois Power Agency Renewable
    Energy Resources Fund........................$98,000,000
Real Estate Research and Education Fund..............$500,000
Real Estate License Administration Fund...........$30,000,000
Abandoned Residential Property
    Municipality Relief Fund.........................$700,000
State Construction Account Fund...................$50,000,000
State Police Services Fund.........................$6,000,000
Metabolic Screening and Treatment Fund.............$5,000,000
Insurance Producer Administration Fund............$70,313,800
Coal Technology Development Assistance Fund........$3,000,000
Low-Level Radioactive Waste Facility Development
    and Operation Fund...............................$500,000
Low-Level Radioactive Waste Facility Closure,
    Post-Closure Care and Compensation Fund..........$110,000
Illinois State Podiatric Disciplinary Fund...........$200,000
Park and Conservation Fund........................$15,000,000
Vehicle Inspection Fund............................$8,000,000
Local Tourism Fund...................................$308,000
Illinois Capital Revolving Loan Fund...............$5,000,000
Illinois Equity Fund.................................$500,000
Public Infrastructure Construction
    Loan Revolving Fund............................$9,000,000
Insurance Financial Regulation Fund...............$23,598,000
Dram Shop Fund.....................................$1,000,000
Illinois State Dental Disciplinary Fund............$1,500,000
ISBE Teacher Certificate Institute Fund............$1,800,000
Mental Health Fund.................................$3,000,000
Tobacco Settlement Recovery Fund...................$4,000,000
Public Health Special State Projects Fund..........$5,000,000
Total                                          $1,318,396,100
    (b) In order to maintain the integrity of special funds and
improve stability in the General Obligation Bond Retirement and
Interest Fund, the following transfer is authorized from the
designated fund into the General Obligation Bond Retirement and
Interest Fund:
Federal High Speed Rail Trust Fund................$48,000,000
    (c) On and after the effective date of this amendatory Act
of the 99th General Assembly through the end of State fiscal
year 2015, when any of the funds listed in subsection (a) has
insufficient cash from which the State Comptroller may make
expenditures properly supported by appropriations from the
fund, then, at the direction of the Director of the Governor's
Office of Management and Budget, the State Treasurer and State
Comptroller shall transfer from the General Revenue Fund to the
fund only such amount as is immediately necessary to satisfy
outstanding expenditure obligations on a timely basis, subject
to the provisions of the State Prompt Payment Act. All or a
portion of the amounts transferred from the General Revenue
Fund to a fund pursuant to this subsection (c) from time to
time may be re-transferred by the State Comptroller and the
State Treasurer from the receiving fund into the General
Revenue Fund as soon as and to the extent that deposits are
made into or receipts are collected by the receiving fund.
    (d) The State Treasurer and State Comptroller shall
transfer the amounts designated under subsections (a) and (b)
of this Section as soon as may be practicable after receiving
the direction to transfer from the Director of the Governor's
Office of Management and Budget. If the Director of the
Governor's Office of Management and Budget determines that any
transfer authorized by this Section from a special fund under
subsection (a) or (b) either (i) jeopardizes federal funding
based on a written communication from a federal official or
(ii) violates an order of a court of competent jurisdiction,
then the Director may order the State Treasurer and State
Comptroller, in writing, to (i) transfer from the General
Revenue Fund to that listed special fund all or part of the
amounts transferred from that special fund under subsection
(a), or (ii) transfer from the General Obligation Bond
Retirement and Interest Fund to that listed special fund all or
part of the amounts transferred from that special fund under
subsection (b).
    (e) For the fourth quarter of State fiscal year 2015, the
report filed under Section 7.2 of the Governor's Office of
Management and Budget Act shall contain, in addition to the
information otherwise required, information on all transfers
made pursuant to this Section, including all of the following:
        (1) The date each transfer was made.
        (2) The amount of each transfer.
        (3) In the case of a transfer from the General Revenue
    Fund to a fund of origin pursuant to subsection (c) or (d)
    of this Section, the amount of such transfer and the date
    such transfer was made.
        (4) The end of day balance of both the fund of origin
    and the General Revenue Fund on the date the transfer was
    made.
    (f) Notwithstanding any provision of law to the contrary,
the transfers in this Section shall be made through the end of
State fiscal year 2015.
 
    (30 ILCS 105/13.2)  (from Ch. 127, par. 149.2)
    Sec. 13.2. Transfers among line item appropriations.
    (a) Transfers among line item appropriations from the same
treasury fund for the objects specified in this Section may be
made in the manner provided in this Section when the balance
remaining in one or more such line item appropriations is
insufficient for the purpose for which the appropriation was
made.
    (a-1) No transfers may be made from one agency to another
agency, nor may transfers be made from one institution of
higher education to another institution of higher education
except as provided by subsection (a-4).
    (a-2) Except as otherwise provided in this Section,
transfers may be made only among the objects of expenditure
enumerated in this Section, except that no funds may be
transferred from any appropriation for personal services, from
any appropriation for State contributions to the State
Employees' Retirement System, from any separate appropriation
for employee retirement contributions paid by the employer, nor
from any appropriation for State contribution for employee
group insurance. During State fiscal year 2005, an agency may
transfer amounts among its appropriations within the same
treasury fund for personal services, employee retirement
contributions paid by employer, and State Contributions to
retirement systems; notwithstanding and in addition to the
transfers authorized in subsection (c) of this Section, the
fiscal year 2005 transfers authorized in this sentence may be
made in an amount not to exceed 2% of the aggregate amount
appropriated to an agency within the same treasury fund. During
State fiscal year 2007, the Departments of Children and Family
Services, Corrections, Human Services, and Juvenile Justice
may transfer amounts among their respective appropriations
within the same treasury fund for personal services, employee
retirement contributions paid by employer, and State
contributions to retirement systems. During State fiscal year
2010, the Department of Transportation may transfer amounts
among their respective appropriations within the same treasury
fund for personal services, employee retirement contributions
paid by employer, and State contributions to retirement
systems. During State fiscal years 2010 and 2014 only, an
agency may transfer amounts among its respective
appropriations within the same treasury fund for personal
services, employee retirement contributions paid by employer,
and State contributions to retirement systems.
Notwithstanding, and in addition to, the transfers authorized
in subsection (c) of this Section, these transfers may be made
in an amount not to exceed 2% of the aggregate amount
appropriated to an agency within the same treasury fund.
    (a-2.5) During State fiscal year 2015 only, the State's
Attorneys Appellate Prosecutor may transfer amounts among its
respective appropriations contained in operational line items
within the same treasury fund. Notwithstanding, and in addition
to, the transfers authorized in subsection (c) of this Section,
these transfers may be made in an amount not to exceed 4% of
the aggregate amount appropriated to the State's Attorneys
Appellate Prosecutor within the same treasury fund.
    (a-3) Further, if an agency receives a separate
appropriation for employee retirement contributions paid by
the employer, any transfer by that agency into an appropriation
for personal services must be accompanied by a corresponding
transfer into the appropriation for employee retirement
contributions paid by the employer, in an amount sufficient to
meet the employer share of the employee contributions required
to be remitted to the retirement system.
    (a-4) Long-Term Care Rebalancing. The Governor may
designate amounts set aside for institutional services
appropriated from the General Revenue Fund or any other State
fund that receives monies for long-term care services to be
transferred to all State agencies responsible for the
administration of community-based long-term care programs,
including, but not limited to, community-based long-term care
programs administered by the Department of Healthcare and
Family Services, the Department of Human Services, and the
Department on Aging, provided that the Director of Healthcare
and Family Services first certifies that the amounts being
transferred are necessary for the purpose of assisting persons
in or at risk of being in institutional care to transition to
community-based settings, including the financial data needed
to prove the need for the transfer of funds. The total amounts
transferred shall not exceed 4% in total of the amounts
appropriated from the General Revenue Fund or any other State
fund that receives monies for long-term care services for each
fiscal year. A notice of the fund transfer must be made to the
General Assembly and posted at a minimum on the Department of
Healthcare and Family Services website, the Governor's Office
of Management and Budget website, and any other website the
Governor sees fit. These postings shall serve as notice to the
General Assembly of the amounts to be transferred. Notice shall
be given at least 30 days prior to transfer.
    (b) In addition to the general transfer authority provided
under subsection (c), the following agencies have the specific
transfer authority granted in this subsection:
    The Department of Healthcare and Family Services is
authorized to make transfers representing savings attributable
to not increasing grants due to the births of additional
children from line items for payments of cash grants to line
items for payments for employment and social services for the
purposes outlined in subsection (f) of Section 4-2 of the
Illinois Public Aid Code.
    The Department of Children and Family Services is
authorized to make transfers not exceeding 2% of the aggregate
amount appropriated to it within the same treasury fund for the
following line items among these same line items: Foster Home
and Specialized Foster Care and Prevention, Institutions and
Group Homes and Prevention, and Purchase of Adoption and
Guardianship Services.
    The Department on Aging is authorized to make transfers not
exceeding 2% of the aggregate amount appropriated to it within
the same treasury fund for the following Community Care Program
line items among these same line items: purchase of services
covered by the Community Care Program and Comprehensive Case
Coordination.
    The State Treasurer is authorized to make transfers among
line item appropriations from the Capital Litigation Trust
Fund, with respect to costs incurred in fiscal years 2002 and
2003 only, when the balance remaining in one or more such line
item appropriations is insufficient for the purpose for which
the appropriation was made, provided that no such transfer may
be made unless the amount transferred is no longer required for
the purpose for which that appropriation was made.
    The State Board of Education is authorized to make
transfers from line item appropriations within the same
treasury fund for General State Aid and General State Aid -
Hold Harmless, provided that no such transfer may be made
unless the amount transferred is no longer required for the
purpose for which that appropriation was made, to the line item
appropriation for Transitional Assistance when the balance
remaining in such line item appropriation is insufficient for
the purpose for which the appropriation was made.
    The State Board of Education is authorized to make
transfers between the following line item appropriations
within the same treasury fund: Disabled Student
Services/Materials (Section 14-13.01 of the School Code),
Disabled Student Transportation Reimbursement (Section
14-13.01 of the School Code), Disabled Student Tuition -
Private Tuition (Section 14-7.02 of the School Code),
Extraordinary Special Education (Section 14-7.02b of the
School Code), Reimbursement for Free Lunch/Breakfast Program,
Summer School Payments (Section 18-4.3 of the School Code), and
Transportation - Regular/Vocational Reimbursement (Section
29-5 of the School Code). Such transfers shall be made only
when the balance remaining in one or more such line item
appropriations is insufficient for the purpose for which the
appropriation was made and provided that no such transfer may
be made unless the amount transferred is no longer required for
the purpose for which that appropriation was made.
    The Department of Healthcare and Family Services is
authorized to make transfers not exceeding 4% of the aggregate
amount appropriated to it, within the same treasury fund, among
the various line items appropriated for Medical Assistance.
    (c) The sum of such transfers for an agency in a fiscal
year shall not exceed 2% of the aggregate amount appropriated
to it within the same treasury fund for the following objects:
Personal Services; Extra Help; Student and Inmate
Compensation; State Contributions to Retirement Systems; State
Contributions to Social Security; State Contribution for
Employee Group Insurance; Contractual Services; Travel;
Commodities; Printing; Equipment; Electronic Data Processing;
Operation of Automotive Equipment; Telecommunications
Services; Travel and Allowance for Committed, Paroled and
Discharged Prisoners; Library Books; Federal Matching Grants
for Student Loans; Refunds; Workers' Compensation,
Occupational Disease, and Tort Claims; and, in appropriations
to institutions of higher education, Awards and Grants.
Notwithstanding the above, any amounts appropriated for
payment of workers' compensation claims to an agency to which
the authority to evaluate, administer and pay such claims has
been delegated by the Department of Central Management Services
may be transferred to any other expenditure object where such
amounts exceed the amount necessary for the payment of such
claims.
    (c-1) Special provisions for State fiscal year 2003.
Notwithstanding any other provision of this Section to the
contrary, for State fiscal year 2003 only, transfers among line
item appropriations to an agency from the same treasury fund
may be made provided that the sum of such transfers for an
agency in State fiscal year 2003 shall not exceed 3% of the
aggregate amount appropriated to that State agency for State
fiscal year 2003 for the following objects: personal services,
except that no transfer may be approved which reduces the
aggregate appropriations for personal services within an
agency; extra help; student and inmate compensation; State
contributions to retirement systems; State contributions to
social security; State contributions for employee group
insurance; contractual services; travel; commodities;
printing; equipment; electronic data processing; operation of
automotive equipment; telecommunications services; travel and
allowance for committed, paroled, and discharged prisoners;
library books; federal matching grants for student loans;
refunds; workers' compensation, occupational disease, and tort
claims; and, in appropriations to institutions of higher
education, awards and grants.
    (c-2) Special provisions for State fiscal year 2005.
Notwithstanding subsections (a), (a-2), and (c), for State
fiscal year 2005 only, transfers may be made among any line
item appropriations from the same or any other treasury fund
for any objects or purposes, without limitation, when the
balance remaining in one or more such line item appropriations
is insufficient for the purpose for which the appropriation was
made, provided that the sum of those transfers by a State
agency shall not exceed 4% of the aggregate amount appropriated
to that State agency for fiscal year 2005.
    (c-3) Special provisions for State fiscal year 2015.
Notwithstanding any other provision of this Section, for State
fiscal year 2015, transfers among line item appropriations to a
State agency from the same State treasury fund may be made for
operational or lump sum expenses only, provided that the sum of
such transfers for a State agency in State fiscal year 2015
shall not exceed 4% of the aggregate amount appropriated to
that State agency for operational or lump sum expenses for
State fiscal year 2015. For the purpose of this subsection,
"operational or lump sum expenses" includes the following
objects: personal services; extra help; student and inmate
compensation; State contributions to retirement systems; State
contributions to social security; State contributions for
employee group insurance; contractual services; travel;
commodities; printing; equipment; electronic data processing;
operation of automotive equipment; telecommunications
services; travel and allowance for committed, paroled, and
discharged prisoners; library books; federal matching grants
for student loans; refunds; workers' compensation,
occupational disease, and tort claims; lump sum and other
purposes; and lump sum operations. For the purpose of this
subsection (c-3), "State agency" does not include the Attorney
General, the Secretary of State, the Comptroller, the
Treasurer, or the legislative or judicial branches.
    (d) Transfers among appropriations made to agencies of the
Legislative and Judicial departments and to the
constitutionally elected officers in the Executive branch
require the approval of the officer authorized in Section 10 of
this Act to approve and certify vouchers. Transfers among
appropriations made to the University of Illinois, Southern
Illinois University, Chicago State University, Eastern
Illinois University, Governors State University, Illinois
State University, Northeastern Illinois University, Northern
Illinois University, Western Illinois University, the Illinois
Mathematics and Science Academy and the Board of Higher
Education require the approval of the Board of Higher Education
and the Governor. Transfers among appropriations to all other
agencies require the approval of the Governor.
    The officer responsible for approval shall certify that the
transfer is necessary to carry out the programs and purposes
for which the appropriations were made by the General Assembly
and shall transmit to the State Comptroller a certified copy of
the approval which shall set forth the specific amounts
transferred so that the Comptroller may change his records
accordingly. The Comptroller shall furnish the Governor with
information copies of all transfers approved for agencies of
the Legislative and Judicial departments and transfers
approved by the constitutionally elected officials of the
Executive branch other than the Governor, showing the amounts
transferred and indicating the dates such changes were entered
on the Comptroller's records.
    (e) The State Board of Education, in consultation with the
State Comptroller, may transfer line item appropriations for
General State Aid between the Common School Fund and the
Education Assistance Fund. With the advice and consent of the
Governor's Office of Management and Budget, the State Board of
Education, in consultation with the State Comptroller, may
transfer line item appropriations between the General Revenue
Fund and the Education Assistance Fund for the following
programs:
        (1) Disabled Student Personnel Reimbursement (Section
    14-13.01 of the School Code);
        (2) Disabled Student Transportation Reimbursement
    (subsection (b) of Section 14-13.01 of the School Code);
        (3) Disabled Student Tuition - Private Tuition
    (Section 14-7.02 of the School Code);
        (4) Extraordinary Special Education (Section 14-7.02b
    of the School Code);
        (5) Reimbursement for Free Lunch/Breakfast Programs;
        (6) Summer School Payments (Section 18-4.3 of the
    School Code);
        (7) Transportation - Regular/Vocational Reimbursement
    (Section 29-5 of the School Code);
        (8) Regular Education Reimbursement (Section 18-3 of
    the School Code); and
        (9) Special Education Reimbursement (Section 14-7.03
    of the School Code).
(Source: P.A. 97-689, eff. 7-1-12; 98-24, eff. 6-19-13; 98-674,
eff. 6-30-14.)
 
    Section 20. The School Code is amended by changing Section
18-8.05 as follows:
 
    (105 ILCS 5/18-8.05)
    Sec. 18-8.05. Basis for apportionment of general State
financial aid and supplemental general State aid to the common
schools for the 1998-1999 and subsequent school years.
 
(A) General Provisions.
    (1) The provisions of this Section apply to the 1998-1999
and subsequent school years. The system of general State
financial aid provided for in this Section is designed to
assure that, through a combination of State financial aid and
required local resources, the financial support provided each
pupil in Average Daily Attendance equals or exceeds a
prescribed per pupil Foundation Level. This formula approach
imputes a level of per pupil Available Local Resources and
provides for the basis to calculate a per pupil level of
general State financial aid that, when added to Available Local
Resources, equals or exceeds the Foundation Level. The amount
of per pupil general State financial aid for school districts,
in general, varies in inverse relation to Available Local
Resources. Per pupil amounts are based upon each school
district's Average Daily Attendance as that term is defined in
this Section.
    (2) In addition to general State financial aid, school
districts with specified levels or concentrations of pupils
from low income households are eligible to receive supplemental
general State financial aid grants as provided pursuant to
subsection (H). The supplemental State aid grants provided for
school districts under subsection (H) shall be appropriated for
distribution to school districts as part of the same line item
in which the general State financial aid of school districts is
appropriated under this Section.
    (3) To receive financial assistance under this Section,
school districts are required to file claims with the State
Board of Education, subject to the following requirements:
        (a) 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.
        (b) School district claims filed under this Section are
    subject to Sections 18-9 and 18-12, except as otherwise
    provided in this Section.
        (c) 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.
        (d) (Blank).
    (4) Except as provided in subsections (H) and (L), 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.
    School districts are not required to exert a minimum
Operating Tax Rate in order to qualify for assistance under
this Section.
    (5) As used in this Section the following terms, when
capitalized, shall have the meaning ascribed herein:
        (a) "Average Daily Attendance": A count of pupil
    attendance in school, averaged as provided for in
    subsection (C) and utilized in deriving per pupil financial
    support levels.
        (b) "Available Local Resources": A computation of
    local financial support, calculated on the basis of Average
    Daily Attendance and derived as provided pursuant to
    subsection (D).
        (c) "Corporate Personal Property Replacement Taxes":
    Funds paid to local school districts pursuant to "An Act in
    relation to the abolition of ad valorem personal property
    tax and the replacement of revenues lost thereby, and
    amending and repealing certain Acts and parts of Acts in
    connection therewith", certified August 14, 1979, as
    amended (Public Act 81-1st S.S.-1).
        (d) "Foundation Level": A prescribed level of per pupil
    financial support as provided for in subsection (B).
        (e) "Operating Tax Rate": All school district property
    taxes extended for all purposes, except Bond and Interest,
    Summer School, Rent, Capital Improvement, and Vocational
    Education Building purposes.
 
(B) Foundation Level.
    (1) The Foundation Level is a figure established by the
State representing the minimum level of per pupil financial
support that should be available to provide for the basic
education of each pupil in Average Daily Attendance. As set
forth in this Section, each school district is assumed to exert
a sufficient local taxing effort such that, in combination with
the aggregate of general State financial aid provided the
district, an aggregate of State and local resources are
available to meet the basic education needs of pupils in the
district.
    (2) For the 1998-1999 school year, the Foundation Level of
support is $4,225. For the 1999-2000 school year, the
Foundation Level of support is $4,325. For the 2000-2001 school
year, the Foundation Level of support is $4,425. For the
2001-2002 school year and 2002-2003 school year, the Foundation
Level of support is $4,560. For the 2003-2004 school year, the
Foundation Level of support is $4,810. For the 2004-2005 school
year, the Foundation Level of support is $4,964. For the
2005-2006 school year, the Foundation Level of support is
$5,164. For the 2006-2007 school year, the Foundation Level of
support is $5,334. For the 2007-2008 school year, the
Foundation Level of support is $5,734. For the 2008-2009 school
year, the Foundation Level of support is $5,959.
    (3) For the 2009-2010 school year and each school year
thereafter, the Foundation Level of support is $6,119 or such
greater amount as may be established by law by the General
Assembly.
 
(C) Average Daily Attendance.
    (1) For purposes of calculating general State aid pursuant
to subsection (E), an Average Daily Attendance figure shall be
utilized. The Average Daily Attendance figure for formula
calculation purposes shall be the monthly average of the actual
number of pupils in attendance of each school district, as
further averaged for the best 3 months of pupil attendance for
each school district. In compiling the figures for the number
of pupils in attendance, school districts and the State Board
of Education shall, for purposes of general State aid funding,
conform attendance figures to the requirements of subsection
(F).
    (2) The Average Daily Attendance figures utilized in
subsection (E) shall be the requisite attendance data for the
school year immediately preceding the school year for which
general State aid is being calculated or the average of the
attendance data for the 3 preceding school years, whichever is
greater. The Average Daily Attendance figures utilized in
subsection (H) shall be the requisite attendance data for the
school year immediately preceding the school year for which
general State aid is being calculated.
 
(D) Available Local Resources.
    (1) For purposes of calculating general State aid pursuant
to subsection (E), a representation of Available Local
Resources per pupil, as that term is defined and determined in
this subsection, shall be utilized. Available Local Resources
per pupil shall include a calculated dollar amount representing
local school district revenues from local property taxes and
from Corporate Personal Property Replacement Taxes, expressed
on the basis of pupils in Average Daily Attendance. Calculation
of Available Local Resources shall exclude any tax amnesty
funds received as a result of Public Act 93-26.
    (2) In determining a school district's revenue from local
property taxes, the State Board of Education shall utilize the
equalized assessed valuation of all taxable property of each
school district as of September 30 of the previous year. The
equalized assessed valuation utilized shall be obtained and
determined as provided in subsection (G).
    (3) For school districts maintaining grades kindergarten
through 12, local property tax revenues per pupil shall be
calculated as the product of the applicable equalized assessed
valuation for the district multiplied by 3.00%, and divided by
the district's Average Daily Attendance figure. For school
districts maintaining grades kindergarten through 8, local
property tax revenues per pupil shall be calculated as the
product of the applicable equalized assessed valuation for the
district multiplied by 2.30%, and divided by the district's
Average Daily Attendance figure. For school districts
maintaining grades 9 through 12, local property tax revenues
per pupil shall be the applicable equalized assessed valuation
of the district multiplied by 1.05%, and divided by the
district's Average Daily Attendance figure.
    For partial elementary unit districts created pursuant to
Article 11E of this Code, local property tax revenues per pupil
shall be calculated as the product of the equalized assessed
valuation for property within the partial elementary unit
district for elementary purposes, as defined in Article 11E of
this Code, multiplied by 2.06% and divided by the district's
Average Daily Attendance figure, plus the product of the
equalized assessed valuation for property within the partial
elementary unit district for high school purposes, as defined
in Article 11E of this Code, multiplied by 0.94% and divided by
the district's Average Daily Attendance figure.
    (4) The Corporate Personal Property Replacement Taxes paid
to each school district during the calendar year one year
before the calendar year in which a school year begins, divided
by the Average Daily Attendance figure for that district, shall
be added to the local property tax revenues per pupil as
derived by the application of the immediately preceding
paragraph (3). The sum of these per pupil figures for each
school district shall constitute Available Local Resources as
that term is utilized in subsection (E) in the calculation of
general State aid.
 
(E) Computation of General State Aid.
    (1) For each school year, the amount of general State aid
allotted to a school district shall be computed by the State
Board of Education as provided in this subsection.
    (2) For any school district for which Available Local
Resources per pupil is less than the product of 0.93 times the
Foundation Level, general State aid for that district shall be
calculated as an amount equal to the Foundation Level minus
Available Local Resources, multiplied by the Average Daily
Attendance of the school district.
    (3) For any school district for which Available Local
Resources per pupil is equal to or greater than the product of
0.93 times the Foundation Level and less than the product of
1.75 times the Foundation Level, the general State aid per
pupil shall be a decimal proportion of the Foundation Level
derived using a linear algorithm. Under this linear algorithm,
the calculated general State aid per pupil shall decline in
direct linear fashion from 0.07 times the Foundation Level for
a school district with Available Local Resources equal to the
product of 0.93 times the Foundation Level, to 0.05 times the
Foundation Level for a school district with Available Local
Resources equal to the product of 1.75 times the Foundation
Level. The allocation of general State aid for school districts
subject to this paragraph 3 shall be the calculated general
State aid per pupil figure multiplied by the Average Daily
Attendance of the school district.
    (4) For any school district for which Available Local
Resources per pupil equals or exceeds the product of 1.75 times
the Foundation Level, the general State aid for the school
district shall be calculated as the product of $218 multiplied
by the Average Daily Attendance of the school district.
    (5) The amount of general State aid allocated to a school
district for the 1999-2000 school year meeting the requirements
set forth in paragraph (4) of subsection (G) shall be increased
by an amount equal to the general State aid that would have
been received by the district for the 1998-1999 school year by
utilizing the Extension Limitation Equalized Assessed
Valuation as calculated in paragraph (4) of subsection (G) less
the general State aid allotted for the 1998-1999 school year.
This amount shall be deemed a one time increase, and shall not
affect any future general State aid allocations.
 
(F) Compilation of Average Daily Attendance.
    (1) Each school district shall, by July 1 of each year,
submit to the State Board of Education, on forms prescribed by
the State Board of Education, attendance figures for the school
year that began in the preceding calendar year. The attendance
information so transmitted shall identify the average daily
attendance figures for each month of the school year. Beginning
with the general State aid claim form for the 2002-2003 school
year, districts shall calculate Average Daily Attendance as
provided in subdivisions (a), (b), and (c) of this paragraph
(1).
        (a) In districts that do not hold year-round classes,
    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.
        (b) In districts in which all buildings hold year-round
    classes, days of attendance in July and August shall be
    added to the month of September and any days of attendance
    in June shall be added to the month of May.
        (c) In districts in which some buildings, but not all,
    hold year-round classes, for the non-year-round buildings,
    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. The average daily attendance for the
    year-round buildings shall be computed as provided in
    subdivision (b) of this paragraph (1). To calculate the
    Average Daily Attendance for the district, the average
    daily attendance for the year-round buildings shall be
    multiplied by the days in session for the non-year-round
    buildings for each month and added to the monthly
    attendance of the non-year-round buildings.
    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.
    Days of attendance by tuition pupils shall be accredited
only to the districts that pay the tuition to a recognized
school.
    (2) Days of attendance by pupils of less than 5 clock hours
of school shall be subject to the following provisions in the
compilation of Average Daily Attendance.
        (a) 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,
    unless a pupil is enrolled in a block-schedule format of 80
    minutes or more of instruction, in which case the pupil may
    be counted on the basis of the proportion of minutes of
    school work completed each day to the minimum number of
    minutes that school work is required to be held that day.
        (b) (Blank).
        (c) 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.
        (d) 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, provided a
    district conducts an in-service training program for
    teachers in accordance with Section 10-22.39 of this Code;
    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 required
    for a legal school calendar pursuant to Section 10-19 of
    this Code; (1.5) when, of the 5 days allowed under item
    (1), a maximum of 4 days are used for parent-teacher
    conferences, or, in lieu of 4 such days, 2 full days are
    used, in which case each such day may be counted as a
    calendar day required under Section 10-19 of this Code,
    provided that the full-day, parent-teacher conference
    consists of (i) a minimum of 5 clock hours of
    parent-teacher conferences, (ii) both a minimum of 2 clock
    hours of parent-teacher conferences held in the evening
    following a full day of student attendance, as specified in
    subsection (F)(1)(c), and a minimum of 3 clock hours of
    parent-teacher conferences held on the day immediately
    following evening parent-teacher conferences, or (iii)
    multiple parent-teacher conferences held in the evenings
    following full days of student attendance, as specified in
    subsection (F)(1)(c), in which the time used for the
    parent-teacher conferences is equivalent to a minimum of 5
    clock hours; and (2) when days in addition to those
    provided in items (1) and (1.5) 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.
        (e) A session of not less than one clock hour of
    teaching 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.
        (f) 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.
        (g) For children with disabilities who are below the
    age of 6 years and who cannot attend 2 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.
        (h) 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 one day. However,
    kindergartens may count 2 1/2 days of attendance in any 5
    consecutive school days. When a pupil attends such a
    kindergarten for 2 half days on any one school day, the
    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.
        (i) On the days when the assessment that includes a
    college and career ready determination is administered
    under subsection (c) of Section 2-3.64a-5 of this Code, the
    day of attendance for a pupil whose school day must be
    shortened to accommodate required testing procedures may
    be less than 5 clock hours and shall be counted towards the
    176 days of actual pupil attendance required under Section
    10-19 of this Code, provided that a sufficient number of
    minutes of school work in excess of 5 clock hours are first
    completed on other school days to compensate for the loss
    of school work on the examination days.
        (j) Pupils enrolled in a remote educational program
    established under Section 10-29 of this Code may be counted
    on the basis of one-fifth day of attendance for every clock
    hour of instruction attended in the remote educational
    program, provided that, in any month, the school district
    may not claim for a student enrolled in a remote
    educational program more days of attendance than the
    maximum number of days of attendance the district can claim
    (i) for students enrolled in a building holding year-round
    classes if the student is classified as participating in
    the remote educational program on a year-round schedule or
    (ii) for students enrolled in a building not holding
    year-round classes if the student is not classified as
    participating in the remote educational program on a
    year-round schedule.
 
(G) Equalized Assessed Valuation Data.
    (1) For purposes of the calculation of Available Local
Resources required pursuant to subsection (D), 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
(i) the applicable tax rate used in extending taxes for the
funds of the district as of September 30 of the previous year
and (ii) the limiting rate for all school districts subject to
property tax extension limitations as imposed under the
Property Tax Extension Limitation Law.
    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 that is or was
subject to the provisions of Section 15-176 or 15-177 of the
Property Tax Code (a) an amount equal to the total amount by
which the homestead exemption allowed under Section 15-176 or
15-177 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 if the maximum reduction
under Section 15-176 was (i) $4,500 in Cook County or $3,500 in
all other counties in tax year 2003 or (ii) $5,000 in all
counties in tax year 2004 and thereafter and (b) an amount
equal to the aggregate amount for the taxable year of all
additional exemptions under Section 15-175 of the Property Tax
Code for owners with a household income of $30,000 or less. The
county clerk of any county that is or was subject to the
provisions of Section 15-176 or 15-177 of the Property Tax Code
shall annually calculate and certify to the Department of
Revenue for each school district all homestead exemption
amounts under Section 15-176 or 15-177 of the Property Tax Code
and all amounts of additional exemptions under Section 15-175
of the Property Tax Code for owners with a household income of
$30,000 or less. It is the intent of this paragraph that if the
general homestead exemption for a parcel of property is
determined under Section 15-176 or 15-177 of the Property Tax
Code rather than Section 15-175, then the calculation of
Available Local Resources shall not be affected by the
difference, if any, between the amount of the general homestead
exemption allowed for that parcel of property under Section
15-176 or 15-177 of the Property Tax Code and the amount that
would have been allowed had the general homestead exemption for
that parcel of property been determined under Section 15-175 of
the Property Tax Code. It is further the intent of this
paragraph that if additional exemptions are allowed under
Section 15-175 of the Property Tax Code for owners with a
household income of less than $30,000, then the calculation of
Available Local Resources shall not be affected by the
difference, if any, because of those additional exemptions.
    This equalized assessed valuation, as adjusted further by
the requirements of this subsection, shall be utilized in the
calculation of Available Local Resources.
    (2) The equalized assessed valuation in paragraph (1) shall
be adjusted, as applicable, in the following manner:
        (a) 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 as part of the equalized assessed
    valuation of 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 the
    equalized assessed valuation of 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.
        (b) The real property equalized assessed valuation for
    a school district shall be adjusted 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 3.00% for a
    district maintaining grades kindergarten through 12, by
    2.30% for a district maintaining grades kindergarten
    through 8, or by 1.05% for a district maintaining grades 9
    through 12 and adjusted by 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 same
    percentage rates for district type as specified in this
    subparagraph (b).
    (3) For the 1999-2000 school year and each school year
thereafter, if a school district meets all of the criteria of
this subsection (G)(3), the school district's Available Local
Resources shall be calculated under subsection (D) using the
district's Extension Limitation Equalized Assessed Valuation
as calculated under this subsection (G)(3).
    For purposes of this subsection (G)(3) the following terms
shall have the following meanings:
        "Budget Year": The school year for which general State
    aid is calculated and awarded under subsection (E).
        "Base Tax Year": The property tax levy year used to
    calculate the Budget Year allocation of general State aid.
        "Preceding Tax Year": The property tax levy year
    immediately preceding the Base Tax Year.
        "Base Tax Year's Tax Extension": The product of the
    equalized assessed valuation utilized by the County Clerk
    in the Base Tax Year multiplied by the limiting rate as
    calculated by the County Clerk and defined in the Property
    Tax Extension Limitation Law.
        "Preceding Tax Year's Tax Extension": The product of
    the equalized assessed valuation utilized by the County
    Clerk in the Preceding Tax Year multiplied by the Operating
    Tax Rate as defined in subsection (A).
        "Extension Limitation Ratio": A numerical ratio,
    certified by the County Clerk, in which the numerator is
    the Base Tax Year's Tax Extension and the denominator is
    the Preceding Tax Year's Tax Extension.
        "Operating Tax Rate": The operating tax rate as defined
    in subsection (A).
    If a school district is subject to property tax extension
limitations as imposed under the Property Tax Extension
Limitation Law, the State Board of Education shall calculate
the Extension Limitation Equalized Assessed Valuation of that
district. For the 1999-2000 school year, the Extension
Limitation Equalized Assessed Valuation of a school district as
calculated by the State Board of Education shall be equal to
the product of the district's 1996 Equalized Assessed Valuation
and the district's Extension Limitation Ratio. Except as
otherwise provided in this paragraph for a school district that
has approved or does approve an increase in its limiting rate,
for the 2000-2001 school year and each school year thereafter,
the Extension Limitation Equalized Assessed Valuation of a
school district as calculated by the State Board of Education
shall be equal to the product of the Equalized Assessed
Valuation last used in the calculation of general State aid and
the district's Extension Limitation Ratio. If the Extension
Limitation Equalized Assessed Valuation of a school district as
calculated under this subsection (G)(3) is less than the
district's equalized assessed valuation as calculated pursuant
to subsections (G)(1) and (G)(2), then for purposes of
calculating the district's general State aid for the Budget
Year pursuant to subsection (E), that Extension Limitation
Equalized Assessed Valuation shall be utilized to calculate the
district's Available Local Resources under subsection (D). For
the 2009-2010 school year and each school year thereafter, if a
school district has approved or does approve an increase in its
limiting rate, pursuant to Section 18-190 of the Property Tax
Code, affecting the Base Tax Year, the Extension Limitation
Equalized Assessed Valuation of the school district, as
calculated by the State Board of Education, shall be equal to
the product of the Equalized Assessed Valuation last used in
the calculation of general State aid times an amount equal to
one plus the percentage increase, if any, in the Consumer Price
Index for all Urban Consumers for all items published by the
United States Department of Labor for the 12-month calendar
year preceding the Base Tax Year, plus the Equalized Assessed
Valuation of new property, annexed property, and recovered tax
increment value and minus the Equalized Assessed Valuation of
disconnected property. New property and recovered tax
increment value shall have the meanings set forth in the
Property Tax Extension Limitation Law.
    Partial elementary unit districts created in accordance
with Article 11E of this Code shall not be eligible for the
adjustment in this subsection (G)(3) until the fifth year
following the effective date of the reorganization.
    (3.5) For the 2010-2011 school year and each school year
thereafter, if a school district's boundaries span multiple
counties, then the Department of Revenue shall send to the
State Board of Education, for the purpose of calculating
general State aid, the limiting rate and individual rates by
purpose for the county that contains the majority of the school
district's Equalized Assessed Valuation.
    (4) For the purposes of calculating general State aid for
the 1999-2000 school year only, if a school district
experienced a triennial reassessment on the equalized assessed
valuation used in calculating its general State financial aid
apportionment for the 1998-1999 school year, the State Board of
Education shall calculate the Extension Limitation Equalized
Assessed Valuation that would have been used to calculate the
district's 1998-1999 general State aid. This amount shall equal
the product of the equalized assessed valuation used to
calculate general State aid for the 1997-1998 school year and
the district's Extension Limitation Ratio. If the Extension
Limitation Equalized Assessed Valuation of the school district
as calculated under this paragraph (4) is less than the
district's equalized assessed valuation utilized in
calculating the district's 1998-1999 general State aid
allocation, then for purposes of calculating the district's
general State aid pursuant to paragraph (5) of subsection (E),
that Extension Limitation Equalized Assessed Valuation shall
be utilized to calculate the district's Available Local
Resources.
    (5) For school districts having a majority of their
equalized assessed valuation in any county except Cook, DuPage,
Kane, Lake, McHenry, or Will, if the amount of general State
aid allocated to the school district for the 1999-2000 school
year under the provisions of subsection (E), (H), and (J) of
this Section is less than the amount of general State aid
allocated to the district for the 1998-1999 school year under
these subsections, then the general State aid of the district
for the 1999-2000 school year only shall be increased by the
difference between these amounts. The total payments made under
this paragraph (5) shall not exceed $14,000,000. Claims shall
be prorated if they exceed $14,000,000.
 
(H) Supplemental General State Aid.
    (1) In addition to the general State aid a school district
is allotted pursuant to subsection (E), qualifying school
districts shall receive a grant, paid in conjunction with a
district's payments of general State aid, for supplemental
general State aid based upon the concentration level of
children from low-income households within the school
district. Supplemental State aid grants provided for school
districts under this subsection shall be appropriated for
distribution to school districts as part of the same line item
in which the general State financial aid of school districts is
appropriated under this Section.
    (1.5) This paragraph (1.5) applies only to those school
years preceding the 2003-2004 school year. For purposes of this
subsection (H), the term "Low-Income Concentration Level"
shall be the low-income eligible pupil count from the most
recently available federal census divided by the Average Daily
Attendance of the school district. If, however, (i) the
percentage decrease from the 2 most recent federal censuses in
the low-income eligible pupil count of a high school district
with fewer than 400 students exceeds by 75% or more the
percentage change in the total low-income eligible pupil count
of contiguous elementary school districts, whose boundaries
are coterminous with the high school district, or (ii) a high
school district within 2 counties and serving 5 elementary
school districts, whose boundaries are coterminous with the
high school district, has a percentage decrease from the 2 most
recent federal censuses in the low-income eligible pupil count
and there is a percentage increase in the total low-income
eligible pupil count of a majority of the elementary school
districts in excess of 50% from the 2 most recent federal
censuses, then the high school district's low-income eligible
pupil count from the earlier federal census shall be the number
used as the low-income eligible pupil count for the high school
district, for purposes of this subsection (H). The changes made
to this paragraph (1) by Public Act 92-28 shall apply to
supplemental general State aid grants for school years
preceding the 2003-2004 school year that are paid in fiscal
year 1999 or thereafter and to any State aid payments made in
fiscal year 1994 through fiscal year 1998 pursuant to
subsection 1(n) of Section 18-8 of this Code (which was
repealed on July 1, 1998), and any high school district that is
affected by Public Act 92-28 is entitled to a recomputation of
its supplemental general State aid grant or State aid paid in
any of those fiscal years. This recomputation shall not be
affected by any other funding.
    (1.10) This paragraph (1.10) applies to the 2003-2004
school year and each school year thereafter. For purposes of
this subsection (H), the term "Low-Income Concentration Level"
shall, for each fiscal year, be the low-income eligible pupil
count as of July 1 of the immediately preceding fiscal year (as
determined by the Department of Human Services based on the
number of pupils who are eligible for at least one of the
following low income programs: Medicaid, the Children's Health
Insurance Program, TANF, or Food Stamps, excluding pupils who
are eligible for services provided by the Department of
Children and Family Services, averaged over the 2 immediately
preceding fiscal years for fiscal year 2004 and over the 3
immediately preceding fiscal years for each fiscal year
thereafter) divided by the Average Daily Attendance of the
school district.
    (2) Supplemental general State aid pursuant to this
subsection (H) shall be provided as follows for the 1998-1999,
1999-2000, and 2000-2001 school years only:
        (a) For any school district with a Low Income
    Concentration Level of at least 20% and less than 35%, the
    grant for any school year shall be $800 multiplied by the
    low income eligible pupil count.
        (b) For any school district with a Low Income
    Concentration Level of at least 35% and less than 50%, the
    grant for the 1998-1999 school year shall be $1,100
    multiplied by the low income eligible pupil count.
        (c) For any school district with a Low Income
    Concentration Level of at least 50% and less than 60%, the
    grant for the 1998-99 school year shall be $1,500
    multiplied by the low income eligible pupil count.
        (d) For any school district with a Low Income
    Concentration Level of 60% or more, the grant for the
    1998-99 school year shall be $1,900 multiplied by the low
    income eligible pupil count.
        (e) For the 1999-2000 school year, the per pupil amount
    specified in subparagraphs (b), (c), and (d) immediately
    above shall be increased to $1,243, $1,600, and $2,000,
    respectively.
        (f) For the 2000-2001 school year, the per pupil
    amounts specified in subparagraphs (b), (c), and (d)
    immediately above shall be $1,273, $1,640, and $2,050,
    respectively.
    (2.5) Supplemental general State aid pursuant to this
subsection (H) shall be provided as follows for the 2002-2003
school year:
        (a) For any school district with a Low Income
    Concentration Level of less than 10%, the grant for each
    school year shall be $355 multiplied by the low income
    eligible pupil count.
        (b) For any school district with a Low Income
    Concentration Level of at least 10% and less than 20%, the
    grant for each school year shall be $675 multiplied by the
    low income eligible pupil count.
        (c) For any school district with a Low Income
    Concentration Level of at least 20% and less than 35%, the
    grant for each school year shall be $1,330 multiplied by
    the low income eligible pupil count.
        (d) For any school district with a Low Income
    Concentration Level of at least 35% and less than 50%, the
    grant for each school year shall be $1,362 multiplied by
    the low income eligible pupil count.
        (e) For any school district with a Low Income
    Concentration Level of at least 50% and less than 60%, the
    grant for each school year shall be $1,680 multiplied by
    the low income eligible pupil count.
        (f) For any school district with a Low Income
    Concentration Level of 60% or more, the grant for each
    school year shall be $2,080 multiplied by the low income
    eligible pupil count.
    (2.10) Except as otherwise provided, supplemental general
State aid pursuant to this subsection (H) shall be provided as
follows for the 2003-2004 school year and each school year
thereafter:
        (a) For any school district with a Low Income
    Concentration Level of 15% or less, the grant for each
    school year shall be $355 multiplied by the low income
    eligible pupil count.
        (b) For any school district with a Low Income
    Concentration Level greater than 15%, the grant for each
    school year shall be $294.25 added to the product of $2,700
    and the square of the Low Income Concentration Level, all
    multiplied by the low income eligible pupil count.
    For the 2003-2004 school year and each school year
thereafter through the 2008-2009 school year only, the grant
shall be no less than the grant for the 2002-2003 school year.
For the 2009-2010 school year only, the grant shall be no less
than the grant for the 2002-2003 school year multiplied by
0.66. For the 2010-2011 school year only, the grant shall be no
less than the grant for the 2002-2003 school year multiplied by
0.33. Notwithstanding the provisions of this paragraph to the
contrary, if for any school year supplemental general State aid
grants are prorated as provided in paragraph (1) of this
subsection (H), then the grants under this paragraph shall be
prorated.
    For the 2003-2004 school year only, the grant shall be no
greater than the grant received during the 2002-2003 school
year added to the product of 0.25 multiplied by the difference
between the grant amount calculated under subsection (a) or (b)
of this paragraph (2.10), whichever is applicable, and the
grant received during the 2002-2003 school year. For the
2004-2005 school year only, the grant shall be no greater than
the grant received during the 2002-2003 school year added to
the product of 0.50 multiplied by the difference between the
grant amount calculated under subsection (a) or (b) of this
paragraph (2.10), whichever is applicable, and the grant
received during the 2002-2003 school year. For the 2005-2006
school year only, the grant shall be no greater than the grant
received during the 2002-2003 school year added to the product
of 0.75 multiplied by the difference between the grant amount
calculated under subsection (a) or (b) of this paragraph
(2.10), whichever is applicable, and the grant received during
the 2002-2003 school year.
    (3) School districts with an Average Daily Attendance of
more than 1,000 and less than 50,000 that qualify for
supplemental general State aid pursuant to this subsection
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
this grant of supplemental general State aid 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.
    (4) School districts with an Average Daily Attendance of
50,000 or more that qualify for supplemental general State aid
pursuant to this subsection shall be required to distribute
from funds available pursuant to this Section, no less than
$261,000,000 in accordance with the following requirements:
        (a) The required amounts 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.
        (b) The distribution of these portions of supplemental
    and 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, and 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.
        (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 general State aid and
    supplemental general State aid provided by application of
    this subsection supplements rather than supplants the
    noncategorical funds and other categorical funds provided
    by the school district to the attendance centers.
        (d) Any funds made available under this subsection that
    by reason of the provisions of this subsection 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.
        (e) Funds received by an attendance center pursuant to
    this subsection shall be used by 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. Funds provided shall not be
    expended for any political or lobbying purposes as defined
    by board rule.
        (f) Each district subject to the provisions of this
    subdivision (H)(4) 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 that 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
    subsection, 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 the requirements of attendance
    center funding, each district subject to the provisions of
    this subsection shall submit as a separate document by
    December 1 of each year a report of 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. No funds shall be released under this
    subdivision (H)(4) to any district that has not submitted a
    plan that has been approved by the State Board of
    Education.
 
(I) (Blank).
 
(J) (Blank).
 
(K) Grants to Laboratory and Alternative Schools.
    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 of schools, 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 (K) 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. A regional superintendent of schools may contract
with a school district or a public community college district
to operate an alternative school. An alternative school serving
more than one educational service region may be established by
the regional superintendents of schools of the affected
educational service regions. An alternative school serving
more than one educational service region may be operated under
such terms as the regional superintendents of schools of those
educational service regions may agree.
    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 general
State aid entitlement shall be computed by multiplying the
applicable Average Daily Attendance by the Foundation Level as
determined under this Section.
 
(L) Payments, Additional Grants in Aid and Other Requirements.
    (1) For a school district operating under the financial
supervision of an Authority created under Article 34A, the
general State aid otherwise payable to that district under this
Section, but not the supplemental general State aid, 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 general 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.
    (2) (Blank).
    (3) Summer school. Summer school payments shall be made as
provided in Section 18-4.3.
 
(M) Education Funding Advisory Board.
    The Education Funding Advisory Board, hereinafter in this
subsection (M) referred to as the "Board", is hereby created.
The Board shall consist of 5 members who are appointed by the
Governor, by and with the advice and consent of the Senate. The
members appointed shall include representatives of education,
business, and the general public. One of the members so
appointed shall be designated by the Governor at the time the
appointment is made as the chairperson of the Board. The
initial members of the Board may be appointed any time after
the effective date of this amendatory Act of 1997. The regular
term of each member of the Board shall be for 4 years from the
third Monday of January of the year in which the term of the
member's appointment is to commence, except that of the 5
initial members appointed to serve on the Board, the member who
is appointed as the chairperson shall serve for a term that
commences on the date of his or her appointment and expires on
the third Monday of January, 2002, and the remaining 4 members,
by lots drawn at the first meeting of the Board that is held
after all 5 members are appointed, shall determine 2 of their
number to serve for terms that commence on the date of their
respective appointments and expire on the third Monday of
January, 2001, and 2 of their number to serve for terms that
commence on the date of their respective appointments and
expire on the third Monday of January, 2000. All members
appointed to serve on the Board shall serve until their
respective successors are appointed and confirmed. Vacancies
shall be filled in the same manner as original appointments. If
a vacancy in membership occurs at a time when the Senate is not
in session, the Governor shall make a temporary appointment
until the next meeting of the Senate, when he or she shall
appoint, by and with the advice and consent of the Senate, a
person to fill that membership for the unexpired term. If the
Senate is not in session when the initial appointments are
made, those appointments shall be made as in the case of
vacancies.
    The Education Funding Advisory Board shall be deemed
established, and the initial members appointed by the Governor
to serve as members of the Board shall take office, on the date
that the Governor makes his or her appointment of the fifth
initial member of the Board, whether those initial members are
then serving pursuant to appointment and confirmation or
pursuant to temporary appointments that are made by the
Governor as in the case of vacancies.
    The State Board of Education shall provide such staff
assistance to the Education Funding Advisory Board as is
reasonably required for the proper performance by the Board of
its responsibilities.
    For school years after the 2000-2001 school year, the
Education Funding Advisory Board, in consultation with the
State Board of Education, shall make recommendations as
provided in this subsection (M) to the General Assembly for the
foundation level under subdivision (B)(3) of this Section and
for the supplemental general State aid grant level under
subsection (H) of this Section for districts with high
concentrations of children from poverty. The recommended
foundation level shall be determined based on a methodology
which incorporates the basic education expenditures of
low-spending schools exhibiting high academic performance. The
Education Funding Advisory Board shall make such
recommendations to the General Assembly on January 1 of odd
numbered years, beginning January 1, 2001.
 
(N) (Blank).
 
(O) References.
    (1) References in other laws to the various subdivisions of
Section 18-8 as that Section existed before its repeal and
replacement by this Section 18-8.05 shall be deemed to refer to
the corresponding provisions of this Section 18-8.05, to the
extent that those references remain applicable.
    (2) References in other laws to State Chapter 1 funds shall
be deemed to refer to the supplemental general State aid
provided under subsection (H) of this Section.
 
(P) Public Act 93-838 and Public Act 93-808 make inconsistent
changes to this Section. Under Section 6 of the Statute on
Statutes there is an irreconcilable conflict between Public Act
93-808 and Public Act 93-838. Public Act 93-838, being the last
acted upon, is controlling. The text of Public Act 93-838 is
the law regardless of the text of Public Act 93-808.
 
(Q) State Fiscal Year 2015 Payments.
    For payments made for State fiscal year 2015, the State
Board of Education shall, for each school district, calculate
that district's pro-rata share of a minimum sum of $13,600,000
or additional amounts as needed from the total net General
State Aid funding as calculated under this Section that shall
be deemed attributable to the provision of special educational
facilities and services, as defined in Section 14-1.08 of this
Code, in a manner that ensures compliance with maintenance of
State financial support requirements under the federal
Individuals with Disabilities Education Act. Each school
district must use such funds only for the provision of special
educational facilities and services, as defined in Section
14-1.08 of this Code, and must comply with any expenditure
verification procedures adopted by the State Board of
Education.
(Source: P.A. 97-339, eff. 8-12-11; 97-351, eff. 8-12-11;
97-742, eff. 6-30-13; 97-813, eff. 7-13-12; 98-972, eff.
8-15-14.)
 
    Section 25. The Illinois Public Aid Code is amended by
adding Section 5-5b.1 and by changing Sections 5-5e, 5A-2,
5A-10, and 14-12 as follows:
 
    (305 ILCS 5/5-5b.1 new)
    Sec. 5-5b.1. Reimbursement rates; Fiscal Year 2015
reductions.
    (a) Except as provided in subsection (b), notwithstanding
any other provision of this Code to the contrary, and subject
to rescission if not federally approved, providers of the
following services shall have their reimbursement rates or
dispensing fees reduced for the remainder of State fiscal year
2015 by an amount equivalent to a 2.25% reduction in
appropriations from the General Revenue Fund for the medical
assistance program for the full fiscal year:
        (1) Nursing facility services delivered by a nursing
    facility licensed under the Nursing Home Care Act.
        (2) Home health services.
        (3) Services delivered by a facility designated as a
    Children's Habilitation Center.
        (4) Services delivered by a supportive living facility
    as defined in Section 5-5.01a.
        (5) Services delivered by a specialized mental health
    rehabilitation facility licensed under the Specialized
    Mental Health Rehabilitation Act of 2013.
        (6) Ambulance services.
        (7) Pharmacy services.
        (8) Services delivered by a federally qualified health
    center as defined in Section 1905 (l)(2)(B) of the federal
    Social Security Act.
        (9) Services delivered by a Managed Care Entity, with
    the exception of the rate paid to Managed Care Entities for
    services attributed to hospitals.
        (10) Services for the treatment of hemophilia.
        (11) Primary care physician services.
        (12) Dental services.
        (13) Optometric services.
        (14) Podiatry services.
        (15) Hospice care, including routine home care,
    continuous home care, inpatient respite care, and general
    inpatient care.
        (16) Laboratory services or services provided by
    independent laboratories.
        (17) Durable medical equipment and supplies.
        (18) Renal dialysis services.
        (19) Birth Center Services.
        (20) Emergency services other than those offered by or
    in a hospital.
    (b) No provider shall be exempt from the rate reductions
authorized under this Section, except that, rates or payments,
or the portion thereof, paid to a provider that is operated by
a unit of local government that provides the non-federal share
of such services shall not be reduced as provided in this
Section.
    (c) To the extent practical and subject to rescission if
not federally approved, the reductions required under this
Section must be applied uniformly among and within each group,
class, subgroup, or category of providers listed in this
Section.
    (d) In order to provide for the expeditious and timely
implementation of the provisions of this Section, emergency
rules to implement any provision of this Section may be adopted
by the Department in accordance with subsection (s) of Section
5-45 of the Illinois Administrative Procedure Act.
 
    (305 ILCS 5/5-5e)
    (Text of Section before amendment by P.A. 98-1166)
    Sec. 5-5e. Adjusted rates of reimbursement.
    (a) Rates or payments for services in effect on June 30,
2012 shall be adjusted and services shall be affected as
required by any other provision of this amendatory Act of the
97th General Assembly. In addition, the Department shall do the
following:
        (1) Delink the per diem rate paid for supportive living
    facility services from the per diem rate paid for nursing
    facility services, effective for services provided on or
    after May 1, 2011.
        (2) Cease payment for bed reserves in nursing
    facilities and specialized mental health rehabilitation
    facilities.
        (2.5) Cease payment for bed reserves for purposes of
    inpatient hospitalizations to intermediate care facilities
    for persons with development disabilities, except in the
    instance of residents who are under 21 years of age.
        (3) Cease payment of the $10 per day add-on payment to
    nursing facilities for certain residents with
    developmental disabilities.
    (b) After the application of subsection (a),
notwithstanding any other provision of this Code to the
contrary and to the extent permitted by federal law, on and
after July 1, 2012, the rates of reimbursement for services and
other payments provided under this Code shall further be
reduced as follows:
        (1) Rates or payments for physician services, dental
    services, or community health center services reimbursed
    through an encounter rate, and services provided under the
    Medicaid Rehabilitation Option of the Illinois Title XIX
    State Plan shall not be further reduced, except as provided
    in Section 5-5b.1.
        (2) Rates or payments, or the portion thereof, paid to
    a provider that is operated by a unit of local government
    or State University that provides the non-federal share of
    such services shall not be further reduced, except as
    provided in Section 5-5b.1.
        (3) Rates or payments for hospital services delivered
    by a hospital defined as a Safety-Net Hospital under
    Section 5-5e.1 of this Code shall not be further reduced,
    except as provided in Section 5-5b.1.
        (4) Rates or payments for hospital services delivered
    by a Critical Access Hospital, which is an Illinois
    hospital designated as a critical care hospital by the
    Department of Public Health in accordance with 42 CFR 485,
    Subpart F, shall not be further reduced, except as provided
    in Section 5-5b.1.
        (5) Rates or payments for Nursing Facility Services
    shall only be further adjusted pursuant to Section 5-5.2 of
    this Code.
        (6) Rates or payments for services delivered by long
    term care facilities licensed under the ID/DD Community
    Care Act and developmental training services shall not be
    further reduced.
        (7) Rates or payments for services provided under
    capitation rates shall be adjusted taking into
    consideration the rates reduction and covered services
    required by this amendatory Act of the 97th General
    Assembly.
        (8) For hospitals not previously described in this
    subsection, the rates or payments for hospital services
    shall be further reduced by 3.5%, except for payments
    authorized under Section 5A-12.4 of this Code.
        (9) For all other rates or payments for services
    delivered by providers not specifically referenced in
    paragraphs (1) through (8), rates or payments shall be
    further reduced by 2.7%.
    (c) Any assessment imposed by this Code shall continue and
nothing in this Section shall be construed to cause it to
cease.
    (d) Notwithstanding any other provision of this Code to the
contrary, subject to federal approval under Title XIX of the
Social Security Act, for dates of service on and after July 1,
2014, rates or payments for services provided for the purpose
of transitioning children from a hospital to home placement or
other appropriate setting by a children's community-based
health care center authorized under the Alternative Health Care
Delivery Act shall be $683 per day.
    (e) Notwithstanding any other provision of this Code to the
contrary, subject to federal approval under Title XIX of the
Social Security Act, for dates of service on and after July 1,
2014, rates or payments for home health visits shall be $72.
    (f) Notwithstanding any other provision of this Code to the
contrary, subject to federal approval under Title XIX of the
Social Security Act, for dates of service on and after July 1,
2014, rates or payments for the certified nursing assistant
component of the home health agency rate shall be $20.
(Source: P.A. 97-689, eff. 6-14-12; 98-104, eff. 7-22-13;
98-651, eff. 6-16-14.)
 
    (Text of Section after amendment by P.A. 98-1166)
    Sec. 5-5e. Adjusted rates of reimbursement.
    (a) Rates or payments for services in effect on June 30,
2012 shall be adjusted and services shall be affected as
required by any other provision of this amendatory Act of the
97th General Assembly. In addition, the Department shall do the
following:
        (1) Delink the per diem rate paid for supportive living
    facility services from the per diem rate paid for nursing
    facility services, effective for services provided on or
    after May 1, 2011.
        (2) Cease payment for bed reserves in nursing
    facilities and specialized mental health rehabilitation
    facilities; for purposes of therapeutic home visits for
    individuals scoring as TBI on the MDS 3.0, beginning June
    1, 2015, the Department shall approve payments for bed
    reserves in nursing facilities and specialized mental
    health rehabilitation facilities that have at least a 90%
    occupancy level and at least 80% of their residents are
    Medicaid eligible. Payment shall be at a daily rate of 75%
    of an individual's current Medicaid per diem and shall not
    exceed 10 days in a calendar month.
        (2.5) Cease payment for bed reserves for purposes of
    inpatient hospitalizations to intermediate care facilities
    for persons with development disabilities, except in the
    instance of residents who are under 21 years of age.
        (3) Cease payment of the $10 per day add-on payment to
    nursing facilities for certain residents with
    developmental disabilities.
    (b) After the application of subsection (a),
notwithstanding any other provision of this Code to the
contrary and to the extent permitted by federal law, on and
after July 1, 2012, the rates of reimbursement for services and
other payments provided under this Code shall further be
reduced as follows:
        (1) Rates or payments for physician services, dental
    services, or community health center services reimbursed
    through an encounter rate, and services provided under the
    Medicaid Rehabilitation Option of the Illinois Title XIX
    State Plan shall not be further reduced, except as provided
    in Section 5-5b.1.
        (2) Rates or payments, or the portion thereof, paid to
    a provider that is operated by a unit of local government
    or State University that provides the non-federal share of
    such services shall not be further reduced, except as
    provided in Section 5-5b.1.
        (3) Rates or payments for hospital services delivered
    by a hospital defined as a Safety-Net Hospital under
    Section 5-5e.1 of this Code shall not be further reduced,
    except as provided in Section 5-5b.1.
        (4) Rates or payments for hospital services delivered
    by a Critical Access Hospital, which is an Illinois
    hospital designated as a critical care hospital by the
    Department of Public Health in accordance with 42 CFR 485,
    Subpart F, shall not be further reduced, except as provided
    in Section 5-5b.1.
        (5) Rates or payments for Nursing Facility Services
    shall only be further adjusted pursuant to Section 5-5.2 of
    this Code.
        (6) Rates or payments for services delivered by long
    term care facilities licensed under the ID/DD Community
    Care Act and developmental training services shall not be
    further reduced.
        (7) Rates or payments for services provided under
    capitation rates shall be adjusted taking into
    consideration the rates reduction and covered services
    required by this amendatory Act of the 97th General
    Assembly.
        (8) For hospitals not previously described in this
    subsection, the rates or payments for hospital services
    shall be further reduced by 3.5%, except for payments
    authorized under Section 5A-12.4 of this Code.
        (9) For all other rates or payments for services
    delivered by providers not specifically referenced in
    paragraphs (1) through (8), rates or payments shall be
    further reduced by 2.7%.
    (c) Any assessment imposed by this Code shall continue and
nothing in this Section shall be construed to cause it to
cease.
    (d) Notwithstanding any other provision of this Code to the
contrary, subject to federal approval under Title XIX of the
Social Security Act, for dates of service on and after July 1,
2014, rates or payments for services provided for the purpose
of transitioning children from a hospital to home placement or
other appropriate setting by a children's community-based
health care center authorized under the Alternative Health Care
Delivery Act shall be $683 per day.
    (e) Notwithstanding any other provision of this Code to the
contrary, subject to federal approval under Title XIX of the
Social Security Act, for dates of service on and after July 1,
2014, rates or payments for home health visits shall be $72.
    (f) Notwithstanding any other provision of this Code to the
contrary, subject to federal approval under Title XIX of the
Social Security Act, for dates of service on and after July 1,
2014, rates or payments for the certified nursing assistant
component of the home health agency rate shall be $20.
(Source: P.A. 97-689, eff. 6-14-12; 98-104, eff. 7-22-13;
98-651, eff. 6-16-14; 98-1166, eff. 6-1-15.)
 
    (305 ILCS 5/5A-2)  (from Ch. 23, par. 5A-2)
    (Section scheduled to be repealed on July 1, 2018)
    Sec. 5A-2. Assessment.
    (a) Subject to Sections 5A-3 and 5A-10, for State fiscal
years 2009 through 2018, an annual assessment on inpatient
services is imposed on each hospital provider in an amount
equal to $218.38 multiplied by the difference of the hospital's
occupied bed days less the hospital's Medicare bed days,
provided, however, that the amount of $218.38 shall be
increased by a uniform percentage to generate an amount equal
to 75% of the State share of the payments authorized under
Section 12-5, with such increase only taking effect upon the
date that a State share for such payments is required under
federal law. For the period of April through June 2015, the
amount of $218.38 used to calculate the assessment under this
paragraph shall, by emergency rule under subsection (s) of
Section 5-45 of the Illinois Administrative Procedure Act, be
increased by a uniform percentage to generate $20,250,000 in
the aggregate for that period from all hospitals subject to the
annual assessment under this paragraph.
    For State fiscal years 2009 through 2014 and after, a
hospital's occupied bed days and Medicare bed days shall be
determined using the most recent data available from each
hospital's 2005 Medicare cost report as contained in the
Healthcare Cost Report Information System file, for the quarter
ending on December 31, 2006, without regard to any subsequent
adjustments or changes to such data. If a hospital's 2005
Medicare cost report is not contained in the Healthcare Cost
Report Information System, then the Illinois Department may
obtain the hospital provider's occupied bed days and Medicare
bed days from any source available, including, but not limited
to, records maintained by the hospital provider, which may be
inspected at all times during business hours of the day by the
Illinois Department or its duly authorized agents and
employees.
    (b) (Blank).
    (b-5) Subject to Sections 5A-3 and 5A-10, for the portion
of State fiscal year 2012, beginning June 10, 2012 through June
30, 2012, and for State fiscal years 2013 through 2018, an
annual assessment on outpatient services is imposed on each
hospital provider in an amount equal to .008766 multiplied by
the hospital's outpatient gross revenue, provided, however,
that the amount of .008766 shall be increased by a uniform
percentage to generate an amount equal to 25% of the State
share of the payments authorized under Section 12-5, with such
increase only taking effect upon the date that a State share
for such payments is required under federal law. For the period
beginning June 10, 2012 through June 30, 2012, the annual
assessment on outpatient services shall be prorated by
multiplying the assessment amount by a fraction, the numerator
of which is 21 days and the denominator of which is 365 days.
For the period of April through June 2015, the amount of
.008766 used to calculate the assessment under this paragraph
shall, by emergency rule under subsection (s) of Section 5-45
of the Illinois Administrative Procedure Act, be increased by a
uniform percentage to generate $6,750,000 in the aggregate for
that period from all hospitals subject to the annual assessment
under this paragraph.
    For the portion of State fiscal year 2012, beginning June
10, 2012 through June 30, 2012, and State fiscal years 2013
through 2018, a hospital's outpatient gross revenue shall be
determined using the most recent data available from each
hospital's 2009 Medicare cost report as contained in the
Healthcare Cost Report Information System file, for the quarter
ending on June 30, 2011, without regard to any subsequent
adjustments or changes to such data. If a hospital's 2009
Medicare cost report is not contained in the Healthcare Cost
Report Information System, then the Department may obtain the
hospital provider's outpatient gross revenue from any source
available, including, but not limited to, records maintained by
the hospital provider, which may be inspected at all times
during business hours of the day by the Department or its duly
authorized agents and employees.
    (c) (Blank).
    (d) Notwithstanding any of the other provisions of this
Section, the Department is authorized to adopt rules to reduce
the rate of any annual assessment imposed under this Section,
as authorized by Section 5-46.2 of the Illinois Administrative
Procedure Act.
    (e) Notwithstanding any other provision of this Section,
any plan providing for an assessment on a hospital provider as
a permissible tax under Title XIX of the federal Social
Security Act and Medicaid-eligible payments to hospital
providers from the revenues derived from that assessment shall
be reviewed by the Illinois Department of Healthcare and Family
Services, as the Single State Medicaid Agency required by
federal law, to determine whether those assessments and
hospital provider payments meet federal Medicaid standards. If
the Department determines that the elements of the plan may
meet federal Medicaid standards and a related State Medicaid
Plan Amendment is prepared in a manner and form suitable for
submission, that State Plan Amendment shall be submitted in a
timely manner for review by the Centers for Medicare and
Medicaid Services of the United States Department of Health and
Human Services and subject to approval by the Centers for
Medicare and Medicaid Services of the United States Department
of Health and Human Services. No such plan shall become
effective without approval by the Illinois General Assembly by
the enactment into law of related legislation. Notwithstanding
any other provision of this Section, the Department is
authorized to adopt rules to reduce the rate of any annual
assessment imposed under this Section. Any such rules may be
adopted by the Department under Section 5-50 of the Illinois
Administrative Procedure Act.
(Source: P.A. 97-688, eff. 6-14-12; 97-689, eff. 6-14-12;
98-104, eff. 7-22-13; 98-651, eff. 6-16-14.)
 
    (305 ILCS 5/5A-10)  (from Ch. 23, par. 5A-10)
    Sec. 5A-10. Applicability.
    (a) The assessment imposed by subsection (a) of Section
5A-2 shall cease to be imposed and the Department's obligation
to make payments shall immediately cease, and any moneys
remaining in the Fund shall be refunded to hospital providers
in proportion to the amounts paid by them, if:
        (1) The payments to hospitals required under this
    Article are not eligible for federal matching funds under
    Title XIX or XXI of the Social Security Act;
        (2) For State fiscal years 2009 through 2018, the
    Department of Healthcare and Family Services adopts any
    administrative rule change to reduce payment rates or
    alters any payment methodology that reduces any payment
    rates made to operating hospitals under the approved Title
    XIX or Title XXI State plan in effect January 1, 2008
    except for:
            (A) any changes for hospitals described in
        subsection (b) of Section 5A-3;
            (B) any rates for payments made under this Article
        V-A;
            (C) any changes proposed in State plan amendment
        transmittal numbers 08-01, 08-02, 08-04, 08-06, and
        08-07;
            (D) in relation to any admissions on or after
        January 1, 2011, a modification in the methodology for
        calculating outlier payments to hospitals for
        exceptionally costly stays, for hospitals reimbursed
        under the diagnosis-related grouping methodology in
        effect on July 1, 2011; provided that the Department
        shall be limited to one such modification during the
        36-month period after the effective date of this
        amendatory Act of the 96th General Assembly;
            (E) any changes affecting hospitals authorized by
        Public Act 97-689; or
            (F) any changes authorized by Section 14-12 of this
        Code, or for any changes authorized under Section 5A-15
        of this Code; or .
            (G) any changes authorized under Section 5-5b.1.
    (b) The assessment imposed by Section 5A-2 shall not take
effect or shall cease to be imposed, and the Department's
obligation to make payments shall immediately cease, if the
assessment is determined to be an impermissible tax under Title
XIX of the Social Security Act. Moneys in the Hospital Provider
Fund derived from assessments imposed prior thereto shall be
disbursed in accordance with Section 5A-8 to the extent federal
financial participation is not reduced due to the
impermissibility of the assessments, and any remaining moneys
shall be refunded to hospital providers in proportion to the
amounts paid by them.
    (c) The assessments imposed by subsection (b-5) of Section
5A-2 shall not take effect or shall cease to be imposed, the
Department's obligation to make payments shall immediately
cease, and any moneys remaining in the Fund shall be refunded
to hospital providers in proportion to the amounts paid by
them, if the payments to hospitals required under Section
5A-12.4 are not eligible for federal matching funds under Title
XIX of the Social Security Act.
    (d) The assessments imposed by Section 5A-2 shall not take
effect or shall cease to be imposed, the Department's
obligation to make payments shall immediately cease, and any
moneys remaining in the Fund shall be refunded to hospital
providers in proportion to the amounts paid by them, if:
        (1) for State fiscal years 2013 through 2018, the
    Department reduces any payment rates to hospitals as in
    effect on May 1, 2012, or alters any payment methodology as
    in effect on May 1, 2012, that has the effect of reducing
    payment rates to hospitals, except for any changes
    affecting hospitals authorized in Public Act 97-689 and any
    changes authorized by Section 14-12 of this Code, and
    except for any changes authorized under Section 5A-15, and
    except for any changes authorized under Section 5-5b.1;
        (2) for State fiscal years 2013 through 2018, the
    Department reduces any supplemental payments made to
    hospitals below the amounts paid for services provided in
    State fiscal year 2011 as implemented by administrative
    rules adopted and in effect on or prior to June 30, 2011,
    except for any changes affecting hospitals authorized in
    Public Act 97-689 and any changes authorized by Section
    14-12 of this Code, and except for any changes authorized
    under Section 5A-15, and except for any changes authorized
    under Section 5-5b.1; or
        (3) for State fiscal years 2015 through 2018, the
    Department reduces the overall effective rate of
    reimbursement to hospitals below the level authorized
    under Section 14-12 of this Code, except for any changes
    under Section 14-12 or Section 5A-15 of this Code, and
    except for any changes authorized under Section 5-5b.1.
(Source: P.A. 97-72, eff. 7-1-11; 97-74, eff. 6-30-11; 97-688,
eff. 6-14-12; 97-689, eff. 6-14-12; 98-463, eff. 8-16-13;
98-651, eff. 6-16-14.)
 
    (305 ILCS 5/14-12)
    Sec. 14-12. Hospital rate reform payment system. The
hospital payment system pursuant to Section 14-11 of this
Article shall be as follows:
    (a) Inpatient hospital services. Effective for discharges
on and after July 1, 2014, reimbursement for inpatient general
acute care services shall utilize the All Patient Refined
Diagnosis Related Grouping (APR-DRG) software, version 30,
distributed by 3MTM Health Information System.
        (1) The Department shall establish Medicaid weighting
    factors to be used in the reimbursement system established
    under this subsection. Initial weighting factors shall be
    the weighting factors as published by 3M Health Information
    System, associated with Version 30.0 adjusted for the
    Illinois experience.
        (2) The Department shall establish a
    statewide-standardized amount to be used in the inpatient
    reimbursement system. The Department shall publish these
    amounts on its website no later than 10 calendar days prior
    to their effective date.
        (3) In addition to the statewide-standardized amount,
    the Department shall develop adjusters to adjust the rate
    of reimbursement for critical Medicaid providers or
    services for trauma, transplantation services, perinatal
    care, and Graduate Medical Education (GME).
        (4) The Department shall develop add-on payments to
    account for exceptionally costly inpatient stays,
    consistent with Medicare outlier principles. Outlier fixed
    loss thresholds may be updated to control for excessive
    growth in outlier payments no more frequently than on an
    annual basis, but at least triennially. Upon updating the
    fixed loss thresholds, the Department shall be required to
    update base rates within 12 months.
        (5) The Department shall define those hospitals or
    distinct parts of hospitals that shall be exempt from the
    APR-DRG reimbursement system established under this
    Section. The Department shall publish these hospitals'
    inpatient rates on its website no later than 10 calendar
    days prior to their effective date.
        (6) Beginning July 1, 2014 and ending on June 30, 2018,
    in addition to the statewide-standardized amount, the
    Department shall develop an adjustor to adjust the rate of
    reimbursement for safety-net hospitals defined in Section
    5-5e.1 of this Code excluding pediatric hospitals.
        (7) Beginning July 1, 2014 and ending on June 30, 2018,
    in addition to the statewide-standardized amount, the
    Department shall develop an adjustor to adjust the rate of
    reimbursement for Illinois freestanding inpatient
    psychiatric hospitals that are not designated as
    children's hospitals by the Department but are primarily
    treating patients under the age of 21.
    (b) Outpatient hospital services. Effective for dates of
service on and after July 1, 2014, reimbursement for outpatient
services shall utilize the Enhanced Ambulatory Procedure
Grouping (E-APG) software, version 3.7 distributed by 3MTM
Health Information System.
        (1) The Department shall establish Medicaid weighting
    factors to be used in the reimbursement system established
    under this subsection. The initial weighting factors shall
    be the weighting factors as published by 3M Health
    Information System, associated with Version 3.7.
        (2) The Department shall establish service specific
    statewide-standardized amounts to be used in the
    reimbursement system.
            (A) The initial statewide standardized amounts,
        with the labor portion adjusted by the Calendar Year
        2013 Medicare Outpatient Prospective Payment System
        wage index with reclassifications, shall be published
        by the Department on its website no later than 10
        calendar days prior to their effective date.
            (B) The Department shall establish adjustments to
        the statewide-standardized amounts for each Critical
        Access Hospital, as designated by the Department of
        Public Health in accordance with 42 CFR 485, Subpart F.
        The EAPG standardized amounts are determined
        separately for each critical access hospital such that
        simulated EAPG payments using outpatient base period
        paid claim data plus payments under Section 5A-12.4 of
        this Code net of the associated tax costs are equal to
        the estimated costs of outpatient base period claims
        data with a rate year cost inflation factor applied.
        (3) In addition to the statewide-standardized amounts,
    the Department shall develop adjusters to adjust the rate
    of reimbursement for critical Medicaid hospital outpatient
    providers or services, including outpatient high volume or
    safety-net hospitals.
    (c) In consultation with the hospital community, the
Department is authorized to replace 89 Ill. Admin. Code 152.150
as published in 38 Ill. Reg. 4980 through 4986 within 12 months
of the effective date of this amendatory Act of the 98th
General Assembly. If the Department does not replace these
rules within 12 months of the effective date of this amendatory
Act of the 98th General Assembly, the rules in effect for
152.150 as published in 38 Ill. Reg. 4980 through 4986 shall
remain in effect until modified by rule by the Department.
Nothing in this subsection shall be construed to mandate that
the Department file a replacement rule.
    (d) Transition period. There shall be a transition period
to the reimbursement systems authorized under this Section that
shall begin on the effective date of these systems and continue
until June 30, 2018, unless extended by rule by the Department.
To help provide an orderly and predictable transition to the
new reimbursement systems and to preserve and enhance access to
the hospital services during this transition, the Department
shall allocate a transitional hospital access pool of at least
$290,000,000 annually so that transitional hospital access
payments are made to hospitals.
        (1) After the transition period, the Department may
    begin incorporating the transitional hospital access pool
    into the base rate structure.
        (2) After the transition period, if the Department
    reduces payments from the transitional hospital access
    pool, it shall increase base rates, develop new adjustors,
    adjust current adjustors, develop new hospital access
    payments based on updated information, or any combination
    thereof by an amount equal to the decreases proposed in the
    transitional hospital access pool payments, ensuring that
    the entire transitional hospital access pool amount shall
    continue to be used for hospital payments.
    (e) Beginning 36 months after initial implementation, the
Department shall update the reimbursement components in
subsections (a) and (b), including standardized amounts and
weighting factors, and at least triennially and no more
frequently than annually thereafter. The Department shall
publish these updates on its website no later than 30 calendar
days prior to their effective date.
    (f) Continuation of supplemental payments. Any
supplemental payments authorized under Illinois Administrative
Code 148 effective January 1, 2014 and that continue during the
period of July 1, 2014 through December 31, 2014 shall remain
in effect as long as the assessment imposed by Section 5A-2 is
in effect.
    (g) Notwithstanding subsections (a) through (f) of this
Section and notwithstanding the changes authorized under
Section 5-5b.1, any updates to the system shall not result in
any diminishment of the overall effective rates of
reimbursement as of the implementation date of the new system
(July 1, 2014). These updates shall not preclude variations in
any individual component of the system or hospital rate
variations. Nothing in this Section shall prohibit the
Department from increasing the rates of reimbursement or
developing payments to ensure access to hospital services.
Nothing in this Section shall be construed to guarantee a
minimum amount of spending in the aggregate or per hospital as
spending may be impacted by factors including but not limited
to the number of individuals in the medical assistance program
and the severity of illness of the individuals.
    (h) The Department shall have the authority to modify by
rulemaking any changes to the rates or methodologies in this
Section as required by the federal government to obtain federal
financial participation for expenditures made under this
Section.
    (i) Except for subsections (g) and (h) of this Section, the
Department shall, pursuant to subsection (c) of Section 5-40 of
the Illinois Administrative Procedure Act, provide for
presentation at the June 2014 hearing of the Joint Committee on
Administrative Rules (JCAR) additional written notice to JCAR
of the following rules in order to commence the second notice
period for the following rules: rules published in the Illinois
Register, rule dated February 21, 2014 at 38 Ill. Reg. 4559
(Medical Payment), 4628 (Specialized Health Care Delivery
Systems), 4640 (Hospital Services), 4932 (Diagnostic Related
Grouping (DRG) Prospective Payment System (PPS)), and 4977
(Hospital Reimbursement Changes), and published in the
Illinois Register dated March 21, 2014 at 38 Ill. Reg. 6499
(Specialized Health Care Delivery Systems) and 6505 (Hospital
Services).
(Source: P.A. 98-651, eff. 6-16-14.)
 
    Section 95. No acceleration or delay. Where this Act makes
changes in a statute that is represented in this Act by text
that is not yet or no longer in effect (for example, a Section
represented by multiple versions), the use of that text does
not accelerate or delay the taking effect of (i) the changes
made by this Act or (ii) provisions derived from any other
Public Act.
 
    Section 97. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
 
    Section 99. Effective date. This Act takes effect upon
becoming law; but this Act does not take effect at all unless
House Bill 317 of the 99th General Assembly becomes law.