Public Act 093-0674
 
HB0953 Enrolled LRB093 05762 RCE 05855 b

    AN ACT in relation to State finances.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The State Finance Act is amended by changing
Section 8h and by adding Sections 5.625 and 6z-62 as follows:
 
    (30 ILCS 105/5.625 new)
    Sec. 5.625. The Medicaid Provider Relief Fund.
 
    (30 ILCS 105/6z-62 new)
    Sec. 6z-62. Medicaid Provider Relief Fund.
    (a) The Medicaid Provider Relief Fund ("the Fund") is
created as a special fund in the State treasury. The Fund is
created for the purpose of paying medical bills for which the
State is responsible under Title XIX of the Social Security Act
and under the Children's Health Insurance Program Act.
    (b) The Fund shall consist of the following:
        (1) All moneys received by the State from short-term
    borrowing pursuant to the Short Term Borrowing Act or the
    Medicaid Liability Liquidity Borrowing Act on or after the
    effective date of this amendatory Act of the 93rd General
    Assembly and before July 1, 2004.
        (2) All federal matching funds received as a result of
    expenditures that are attributable to moneys deposited
    into the Fund.
        (3) Interest earned on moneys in the Fund.
    (c) On July 1, 2004, the State Treasurer and the
Comptroller shall transfer the balance in the Medicaid Provider
Relief Fund to the General Revenue Fund. After July 1, 2004,
the State Treasurer and the Comptroller shall automatically
transfer all moneys deposited into the Medicaid Provider Relief
Fund from that Fund to the General Revenue Fund.
    (d) This Section is repealed on June 30, 2005, and the
State Treasurer and the Comptroller shall promptly transfer the
balance remaining in the Fund on that date to the General
Revenue Fund.
 
    (30 ILCS 105/8h)
    Sec. 8h. Transfers to General Revenue Fund.
Notwithstanding any other State law to the contrary, the
Director of the Governor's Office of Management and Budget may
from time to time direct the State Treasurer and Comptroller to
transfer a specified sum from any fund held by the State
Treasurer to the General Revenue Fund in order to help defray
the State's operating costs for the fiscal year. The total
transfer under this Section from any fund in any fiscal year
shall not exceed the lesser of 8% of the revenues to be
deposited into the fund during that year or 25% of the
beginning balance in the fund. No transfer may be made from a
fund under this Section that would have the effect of reducing
the available balance in the fund to an amount less than the
amount remaining unexpended and unreserved from the total
appropriation from that fund for that fiscal year. This Section
does not apply to any funds that are restricted by federal law
to a specific use or to any funds in the Motor Fuel Tax Fund, or
the Hospital Provider Fund, or the Medicaid Provider Relief
Fund. Notwithstanding any other provision of this Section, the
total transfer under this Section from the Road Fund or the
State Construction Account Fund shall not exceed 5% of the
revenues to be deposited into the fund during that year.
    In determining the available balance in a fund, the
Director of the Governor's Office of Management and Budget may
include receipts, transfers into the fund, and other resources
anticipated to be available in the fund in that fiscal year.
    The State Treasurer and Comptroller shall transfer the
amounts designated under 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.
(Source: P.A. 93-32, eff. 6-20-03; 93-659, eff. 2-3-04.)
 
    Section 10. The Short Term Borrowing Act is amended by
changing Section 3 as follows:
 
    (30 ILCS 340/3)  (from Ch. 120, par. 408)
    Sec. 3. There shall be prepared under the direction of the
officers named in this Act such form of bonds or certificates
as they shall deem advisable, which, when issued, shall be
signed by the Governor, Comptroller and Treasurer, and shall be
recorded by the Comptroller in a book to be kept by him or her
for that purpose. The interest and principal of such loan shall
be paid by the treasurer out of the General Obligation Bond
Retirement and Interest Fund.
    There is hereby appropriated out of any money in the
Treasury a sum sufficient for the payment of the interest and
principal of any debts contracted under this Act.
    The Governor, Comptroller, and Treasurer are authorized to
order pursuant to the proceedings authorizing those debts the
transfer of any moneys on deposit in the treasury into the
General Obligation Bond Retirement and Interest Fund at times
and in amounts they deem necessary to provide for the payment
of that interest and principal.
    The Comptroller is hereby authorized and directed to draw
his warrant on the State Treasurer for the amount of all such
payments.
    The directive authorizing borrowing under Section 1 or 1.1
of this Act shall set forth a pro forma cash flow statement
that identifies estimated monthly receipts and expenditures
with identification of sources for repaying the borrowed funds.
    All proceeds from any borrowing under this Act received by
the State on or after the effective date of this amendatory Act
of the 93rd General Assembly and before July 1, 2004 shall be
deposited into the Medicaid Provider Relief Fund.
(Source: P.A. 87-838; 87-860; 88-669, eff. 11-29-94.)
 
    Section 15. The Medicaid Liability Liquidity Borrowing Act
is amended by changing Sections 5 and 10 as follows:
 
    (30 ILCS 342/5)
    Sec. 5. Borrowing authorized. For the period June 9, 2004
July 1, 1994 through June 30, 2004 1995, borrowing pursuant to
this Section is authorized under subsection (b) of Section 9 of
Article IX of the Illinois Constitution. The purpose of the
borrowing shall be Whenever casual deficits or failures in
revenues of the State occur, and those casual deficits or
failures in revenues affect the State's ability to pay for
medical services provided under the Illinois Public Aid Code or
the Children's Health Insurance Program Act , in order to meet
those casual deficits or failures in revenues, and the
Governor, after having obtained the written consent of both the
Comptroller and the Treasurer, may contract debts, under this
Section, for principal amounts not to exceed $850,000,000, as
supported by properly enacted State fiscal year 2004
appropriations for this purpose $900,000,000. This contracted
debt, when added to amounts borrowed under the Short Term
Borrowing Act during the then current fiscal year, may not
exceed 15% of the State's appropriations for that fiscal year.
Moneys thus borrowed shall be applied to the purpose of paying
for medical services as described in this Section, or to pay
the debts and associated expenses thus incurred created, and to
no other purpose. All proceeds from any borrowing under this
Act received by the State on or after the effective date of
this amendatory Act of the 93rd General Assembly and before
July 1, 2004 shall be deposited into the Medicaid Provider
Relief Fund. The Governor shall direct the proceeds of this
borrowing into any State fund from which there are
appropriations for medical assistance under the Illinois
Public Aid Code. All moneys so borrowed shall be borrowed for
no longer time than one year.
(Source: P.A. 88-554, eff. 7-26-94; 89-626, eff. 8-9-96.)
 
    (30 ILCS 342/10)
    Sec. 10. Advertising for loan. Whenever the borrowing of
money under Section 5 is contemplated, it is the duty of the
Director of the Governor's Office of Management and Budget
Bureau of the Budget acting at the direction of the Governor to
advertise for proposals for the loan in the manner that is
determined by the Director of the Governor's Office of
Management and Budget Bureau of the Budget to give reasonable
notice of the request for proposals. The advertisements shall
set forth the amount of debt proposed to be contracted and the
time and place for the payment of the principal and interest.
The loan shall be awarded to the person or persons agreeing to
take it at the lowest rate of interest not exceeding the
maximum rate authorized by the Bond Authorization Act, as
amended at the time of the making of the contract.
(Source: P.A. 88-554, eff. 7-26-94; revised 8-23-03.)
 
    Section 20. The Illinois Public Aid Code is amended by
adding Section 5-16.13 as follows:
 
    (305 ILCS 5/5-16.13 new)
    Sec. 5-16.13. Medicaid Managed Care Task Force.
    (a) Medicaid, the medical assistance program jointly
administered by the State of Illinois and the United States
governments for low-income and uninsured populations, is the
largest single insurance provider in the State. In Illinois,
one in every 7 adults, one in 3 children, and 2 of every 3
nursing home residents are all provided health care under the
State's Medicaid program.
    Over the past 10 years, Medicaid in Illinois has grown an
average of 8% annually, which requires at least $500,000,000 in
additional State resources every year.
    Medicaid in Illinois is a cost-reimbursement system that
does little to promote health or encourage improvements in the
quality of health care services being delivered to the growing
populations needing assistance.
    The advent of managed care plans in the insurance industry
has driven down health care costs for many while amply managing
individual needs in a system to deliver cost-efficient health
care services.
    (b) To better examine and evaluate the application of
managed care within the State's Medicaid program, there is
hereby established the bipartisan Medicaid Managed Care Task
Force.
    The Task Force shall consist of 8 voting members, as
follows: 2 members of the Senate appointed by the President of
the Senate, 2 members of the Senate appointed by the Senate
Minority Leader, 2 members of the House of Representatives
appointed by the Speaker of the House of Representatives, and 2
members of the House of Representatives appointed by the House
Minority Leader. All actions of the Task Force require the
affirmative vote of at least 5 voting members.
    Members appointed to the Task Force shall elect from among
themselves 2 co-chairs.
    Members appointed by the legislative leaders shall be
appointed for the duration of the Task Force; in the event of a
vacancy, the appointment to fill the vacancy shall be made by
the same legislative leader who made the original appointment.
    The following persons shall serve, ex officio, as nonvoting
members of the Task Force: the Director of the Governor's
Office of Management and Budget, the Director of Public Aid,
and the Secretary of Human Services.
    The Task Force shall begin to conduct business upon the
appointment of a majority of the voting members. If the
co-chairs have not both been appointed, the co-chair that has
been appointed shall preside.
    Members shall serve without compensation but may be
reimbursed for their expenses from appropriations for that
purpose.
    (c) The Task Force shall gather information and make
recommendations relating to the financing and expenditures of
the Illinois Medicaid program and the program's level of
ability to provide quality health care services in the most
cost-efficient manner. The Task Force shall examine and
evaluate the application of managed care within the State's
Medicaid program. The Task Force shall further assess whether
the State's Medicaid services delivery system meets or exceeds
the goals of quality, efficiency, accountability, and
financial responsibility and shall make recommendations in
keeping with those goals concerning the cost-efficient
delivery of Medicaid services throughout Illinois.
    (d) The Task Force shall conduct at least 6 public hearings
beginning the later of July 2004 or upon the appointment of a
majority of its members, through October 2004.
    Locations for public hearings are to be different and
determined by the co-chairs in consultation with the other
members of the Task Force.
    Comment and testimony at public hearing is to be sought
from Medicaid recipients, health care providers and other
health care professionals, related advocates, health care
finance experts, insurance industry professionals, and public
officials from throughout the State.
    (e) The Governor's Office of Management and Budget, the
Department of Public Aid, and the Department of Human Services
are directed to provide information and assistance to the Task
Force.
    (f) The Task Force shall submit a full report of its
findings and recommendations to the General Assembly not later
than November 8, 2004. It may submit other reports as it deems
appropriate.
    (g) The Task Force is abolished and this Section is
repealed on December 31, 2004.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.