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1 | AN ACT in relation to State finances.
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2 | Be it enacted by the People of the State of Illinois, | ||||||
3 | represented in the General Assembly:
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4 | Section 5. The State Finance Act is amended by changing | ||||||
5 | Section 8h and by adding Sections 5.625 and 6z-62 as follows: | ||||||
6 | (30 ILCS 105/5.625 new) | ||||||
7 | Sec. 5.625. The Medicaid Provider Relief Fund. | ||||||
8 | (30 ILCS 105/6z-62 new) | ||||||
9 | Sec. 6z-62. Medicaid Provider Relief Fund. | ||||||
10 | (a) The Medicaid Provider Relief Fund ("the Fund") is | ||||||
11 | created as a special fund in the State treasury. The Fund is | ||||||
12 | created for the purpose of paying medical bills for which the | ||||||
13 | State is responsible under Title XIX of the Social Security Act | ||||||
14 | and under the Children's Health Insurance Program Act. | ||||||
15 | (b) The Fund shall consist of the following: | ||||||
16 | (1) All moneys received by the State from short-term | ||||||
17 | borrowing pursuant to the Short Term Borrowing Act or the | ||||||
18 | Medicaid Liability Liquidity Borrowing Act on or after the | ||||||
19 | effective date of this amendatory Act of the 93rd General | ||||||
20 | Assembly and before July 1, 2004. | ||||||
21 | (2) All federal matching funds received as a result of | ||||||
22 | expenditures that are attributable to moneys deposited | ||||||
23 | into the Fund. | ||||||
24 | (3) Interest earned on moneys in the Fund. | ||||||
25 | (c) On July 1, 2004, the State Treasurer and the | ||||||
26 | Comptroller shall transfer the balance in the Medicaid Provider | ||||||
27 | Relief Fund to the General Revenue Fund. After July 1, 2004, | ||||||
28 | the State Treasurer and the Comptroller shall automatically | ||||||
29 | transfer all moneys deposited into the Medicaid Provider Relief | ||||||
30 | Fund from that Fund to the General Revenue Fund. | ||||||
31 | (d) This Section is repealed on June 30, 2005, and the |
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1 | State Treasurer and the Comptroller shall promptly transfer the | ||||||
2 | balance remaining in the Fund on that date to the General | ||||||
3 | Revenue Fund. | ||||||
4 | (30 ILCS 105/8h)
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5 | Sec. 8h. Transfers to General Revenue Fund. | ||||||
6 | Notwithstanding any other
State law to the contrary, the | ||||||
7 | Director of the
Governor's Office of Management and Budget
may | ||||||
8 | from time to time direct the State Treasurer and Comptroller to | ||||||
9 | transfer
a specified sum from any fund held by the State | ||||||
10 | Treasurer to the General
Revenue Fund in order to help defray | ||||||
11 | the State's operating costs for the
fiscal year. The total | ||||||
12 | transfer under this Section from any fund in any
fiscal year | ||||||
13 | shall not exceed the lesser of 8% of the revenues to be | ||||||
14 | deposited
into the fund during that year or 25% of the | ||||||
15 | beginning balance in the fund.
No transfer may be made from a | ||||||
16 | fund under this Section that would have the
effect of reducing | ||||||
17 | the available balance in the fund to an amount less than
the | ||||||
18 | amount remaining unexpended and unreserved from the total | ||||||
19 | appropriation
from that fund for that fiscal year. This Section | ||||||
20 | does not apply to any
funds that are restricted by federal law | ||||||
21 | to a specific use or to any funds in
the Motor Fuel Tax Fund ,
or
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22 | the Hospital Provider Fund , or the Medicaid Provider Relief | ||||||
23 | Fund . Notwithstanding any
other provision of this Section,
the | ||||||
24 | total transfer under this Section from the Road Fund or the | ||||||
25 | State
Construction Account Fund shall not exceed 5% of the | ||||||
26 | revenues to be deposited
into the fund during that year.
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27 | In determining the available balance in a fund, the | ||||||
28 | Director of the
Governor's Office of Management and Budget
may | ||||||
29 | include receipts, transfers into the fund, and other
resources | ||||||
30 | anticipated to be available in the fund in that fiscal year.
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31 | The State Treasurer and Comptroller shall transfer the | ||||||
32 | amounts designated
under this Section as soon as may be | ||||||
33 | practicable after receiving the direction
to transfer from the | ||||||
34 | Director of the Governor's Office of Management and
Budget.
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35 | (Source: P.A. 93-32, eff. 6-20-03; 93-659, eff. 2-3-04.)
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1 | Section 10. The Short Term Borrowing Act is amended by | ||||||
2 | changing Section 3 as follows:
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3 | (30 ILCS 340/3) (from Ch. 120, par. 408)
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4 | Sec. 3. There shall be prepared under the direction of the | ||||||
5 | officers
named in this Act such form of bonds or certificates | ||||||
6 | as they shall deem
advisable, which, when issued, shall be | ||||||
7 | signed by the Governor, Comptroller
and Treasurer, and shall be | ||||||
8 | recorded by the Comptroller in a
book to be kept by him or her | ||||||
9 | for that purpose. The interest and principal
of such loan shall | ||||||
10 | be paid by the treasurer out of the General Obligation Bond
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11 | Retirement and Interest Fund.
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12 | There is hereby appropriated out of any money in the | ||||||
13 | Treasury a sum
sufficient for the payment of the interest and | ||||||
14 | principal of any debts
contracted under this Act.
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15 | The Governor, Comptroller, and Treasurer are
authorized to | ||||||
16 | order pursuant to the proceedings authorizing those debts the
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17 | transfer of any moneys on deposit in the treasury into the | ||||||
18 | General
Obligation Bond Retirement and Interest Fund at times | ||||||
19 | and in amounts they
deem necessary to provide for the payment | ||||||
20 | of that interest and principal.
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21 | The Comptroller is hereby authorized and directed to draw | ||||||
22 | his warrant on
the State Treasurer for the amount of all such | ||||||
23 | payments.
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24 | The directive authorizing borrowing under Section 1 or 1.1 | ||||||
25 | of this Act
shall set forth a pro forma cash flow statement | ||||||
26 | that identifies estimated
monthly receipts and expenditures | ||||||
27 | with identification of sources for
repaying the borrowed funds.
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28 | All proceeds from any borrowing under this Act received by | ||||||
29 | the State on or after the effective date of this amendatory Act | ||||||
30 | of the 93rd General Assembly and before July 1, 2004 shall be | ||||||
31 | deposited into the Medicaid Provider Relief Fund.
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32 | (Source: P.A. 87-838; 87-860; 88-669, eff. 11-29-94.)
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33 | Section 15. The Medicaid Liability Liquidity Borrowing Act |
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1 | is amended by changing Sections 5 and 10 as follows:
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2 | (30 ILCS 342/5)
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3 | Sec. 5. Borrowing authorized. For the period June 9, 2004
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4 | July 1, 1994 through June 30,
2004
1995 , borrowing pursuant to | ||||||
5 | this Section is authorized under subsection (b) of Section 9 of | ||||||
6 | Article IX of the Illinois Constitution . The purpose of the | ||||||
7 | borrowing shall be
Whenever casual
deficits or failures in | ||||||
8 | revenues of the State occur, and those casual deficits
or | ||||||
9 | failures in revenues affect the State's ability to pay for | ||||||
10 | medical services
provided under the Illinois Public Aid Code or | ||||||
11 | the Children's Health Insurance Program Act , in order to meet
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12 | those casual deficits or failures in revenues , and the | ||||||
13 | Governor , after having obtained the written consent of both the | ||||||
14 | Comptroller and the Treasurer, may contract debts,
under this | ||||||
15 | Section, for principal amounts not to exceed $850,000,000, as | ||||||
16 | supported by properly enacted State fiscal year 2004 | ||||||
17 | appropriations for this purpose
$900,000,000 . This contracted
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18 | debt, when added to amounts borrowed under the Short Term | ||||||
19 | Borrowing Act during the then current fiscal year, may not | ||||||
20 | exceed 15%
of the State's appropriations for that fiscal year. | ||||||
21 | Moneys thus borrowed shall
be applied to the purpose of paying | ||||||
22 | for medical services as described in this
Section, or to pay | ||||||
23 | the debts and associated expenses thus incurred
created , and to | ||||||
24 | no other purpose. All proceeds from any borrowing under this | ||||||
25 | Act received by the State on or after the effective date of | ||||||
26 | this amendatory Act of the 93rd General Assembly and before | ||||||
27 | July 1, 2004 shall be deposited into the Medicaid Provider | ||||||
28 | Relief Fund.
The
Governor shall direct the proceeds of this | ||||||
29 | borrowing into any State fund from
which there are | ||||||
30 | appropriations for medical assistance under the Illinois | ||||||
31 | Public
Aid Code. All moneys so borrowed shall be borrowed for | ||||||
32 | no longer time than one
year. | ||||||
33 | (Source: P.A. 88-554, eff. 7-26-94; 89-626, eff. 8-9-96.)
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34 | (30 ILCS 342/10)
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1 | Sec. 10. Advertising for loan. Whenever the borrowing of | ||||||
2 | money under
Section 5 is contemplated, it is the duty of the | ||||||
3 | Director of the
Governor's Office of Management and Budget
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4 | Bureau of the
Budget acting at the direction of the Governor
to | ||||||
5 | advertise for proposals for the loan in the manner that is | ||||||
6 | determined by the
Director of the
Governor's Office of | ||||||
7 | Management and Budget
Bureau of the Budget to give reasonable | ||||||
8 | notice of the request
for proposals. The advertisements shall | ||||||
9 | set forth the amount of debt proposed
to be contracted and the | ||||||
10 | time and place for the payment of the principal and
interest. | ||||||
11 | The loan shall be awarded to the person or persons agreeing to | ||||||
12 | take
it at the lowest rate of interest not exceeding the | ||||||
13 | maximum rate authorized by
the Bond Authorization Act, as | ||||||
14 | amended at the time of the making of the
contract.
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15 | (Source: P.A. 88-554, eff. 7-26-94; revised 8-23-03.)
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16 | Section 20. The Illinois Public Aid Code is amended by | ||||||
17 | adding Section 5-16.13 as follows: | ||||||
18 | (305 ILCS 5/5-16.13 new) | ||||||
19 | Sec. 5-16.13. Medicaid Managed Care Task Force. | ||||||
20 | (a) Medicaid, the medical assistance program jointly | ||||||
21 | administered by the State of Illinois and the United States | ||||||
22 | governments for low-income and uninsured populations, is the | ||||||
23 | largest single insurance provider in the State. In Illinois, | ||||||
24 | one in every 7 adults, one in 3 children, and 2 of every 3 | ||||||
25 | nursing home residents are all provided health care under the | ||||||
26 | State's Medicaid program. | ||||||
27 | Over the past 10 years, Medicaid in Illinois has grown an | ||||||
28 | average of 8% annually, which requires at least $500,000,000 in | ||||||
29 | additional State resources every year. | ||||||
30 | Medicaid in Illinois is a cost-reimbursement system that | ||||||
31 | does little to promote health or encourage improvements in the | ||||||
32 | quality of health care services being delivered to the growing | ||||||
33 | populations needing assistance. | ||||||
34 | The advent of managed care plans in the insurance industry |
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1 | has driven down health care costs for many while amply managing | ||||||
2 | individual needs in a system to deliver cost-efficient health | ||||||
3 | care services. | ||||||
4 | (b) To better examine and evaluate the application of | ||||||
5 | managed care within the State's Medicaid program, there is | ||||||
6 | hereby established the bipartisan Medicaid Managed Care Task | ||||||
7 | Force. | ||||||
8 | The Task Force shall consist of 8 voting members, as | ||||||
9 | follows: 2 members of the Senate appointed by the President of | ||||||
10 | the Senate, 2 members of the Senate appointed by the Senate | ||||||
11 | Minority Leader, 2 members of the House of Representatives | ||||||
12 | appointed by the Speaker of the House of Representatives, and 2 | ||||||
13 | members of the House of Representatives appointed by the House | ||||||
14 | Minority Leader. All actions of the Task Force require the | ||||||
15 | affirmative vote of at least 5 voting members. | ||||||
16 | Members appointed to the Task Force shall elect from among | ||||||
17 | themselves 2 co-chairs. | ||||||
18 | Members appointed by the legislative leaders shall be | ||||||
19 | appointed for the duration of the Task Force; in the event of a | ||||||
20 | vacancy, the appointment to fill the vacancy shall be made by | ||||||
21 | the same legislative leader who made the original appointment. | ||||||
22 | The following persons shall serve, ex officio, as nonvoting | ||||||
23 | members of the Task Force: the Director of the Governor's | ||||||
24 | Office of Management and Budget, the Director of Public Aid, | ||||||
25 | and the Secretary of Human Services. | ||||||
26 | The Task Force shall begin to conduct business upon the | ||||||
27 | appointment of a majority of the voting members. If the | ||||||
28 | co-chairs have not both been appointed, the co-chair that has | ||||||
29 | been appointed shall preside. | ||||||
30 | Members shall serve without compensation but may be | ||||||
31 | reimbursed for their expenses from appropriations for that | ||||||
32 | purpose. | ||||||
33 | (c) The Task Force shall gather information and make | ||||||
34 | recommendations relating to the financing and expenditures of | ||||||
35 | the Illinois Medicaid program and the program's level of | ||||||
36 | ability to provide quality health care services in the most |
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1 | cost-efficient manner. The Task Force shall examine and | ||||||
2 | evaluate the application of managed care within the State's | ||||||
3 | Medicaid program. The Task Force shall further assess whether | ||||||
4 | the State's Medicaid services delivery system meets or exceeds | ||||||
5 | the goals of quality, efficiency, accountability, and | ||||||
6 | financial responsibility and shall make recommendations in | ||||||
7 | keeping with those goals concerning the cost-efficient | ||||||
8 | delivery of Medicaid services throughout Illinois. | ||||||
9 | (d) The Task Force shall conduct at least 6 public hearings | ||||||
10 | beginning the later of July 2004 or upon the appointment of a | ||||||
11 | majority of its members, through October 2004. | ||||||
12 | Locations for public hearings are to be different and | ||||||
13 | determined by the co-chairs in consultation with the other | ||||||
14 | members of the Task Force. | ||||||
15 | Comment and testimony at public hearing is to be sought | ||||||
16 | from Medicaid recipients, health care providers and other | ||||||
17 | health care
professionals, related advocates, health care | ||||||
18 | finance experts, insurance industry professionals, and public | ||||||
19 | officials from throughout the State. | ||||||
20 | (e) The Governor's Office of Management and Budget, the | ||||||
21 | Department of Public Aid, and the Department of Human Services | ||||||
22 | are directed to provide information and assistance to the Task | ||||||
23 | Force. | ||||||
24 | (f) The Task Force shall submit a full report of its | ||||||
25 | findings and recommendations to the General Assembly not later | ||||||
26 | than November 8, 2004. It may submit other reports as it deems | ||||||
27 | appropriate. | ||||||
28 | (g) The Task Force is abolished and this Section is | ||||||
29 | repealed on December 31, 2004.
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30 | Section 99. Effective date. This Act takes effect upon | ||||||
31 | becoming law.
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