98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2946

 

Introduced , by Rep. Scott Drury

 

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

    Amends the State Finance Act. Provides that notwithstanding any provision of law to the contrary and to the extent permitted by federal law, as of July 1, 2013, outstanding liabilities as of June 30, payable from appropriations which have otherwise expired, may be paid out of the expiring appropriations only during the 2-month period ending at the close of business on August 31. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1by the Department of Human Services from the Immigration Reform
2and Control Fund for purposes authorized pursuant to the
3Immigration Reform and Control Act of 1986 payable from
4appropriations that have otherwise expired may be paid out of
5the expiring appropriation during the 4-month period ending at
6the close of business on October 31.
7    (b-7) Payments may be made in accordance with a plan
8authorized by paragraph (11) or (12) of Section 405-105 of the
9Department of Central Management Services Law from
10appropriations for those payments without regard to fiscal year
11limitations.
12    (b-8) Notwithstanding any provision of law to the contrary
13and to the extent permitted by federal law, as of July 1, 2013,
14outstanding liabilities as of June 30, payable from
15appropriations which have otherwise expired, may be paid out of
16the expiring appropriations only during the 2-month period
17ending at the close of business on August 31. Any service
18involving professional or artistic skills or any personal
19services by an employee whose compensation is subject to income
20tax withholding must be performed as of June 30 of the fiscal
21year in order to be considered an "outstanding liability as of
22June 30" that is thereby eligible for payment out of the
23expiring appropriation.
24    (c) Further, payments may be made by the Department of
25Public Health and the Department of Human Services (acting as
26successor to the Department of Public Health under the

 

 

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1Department of Human Services Act) from their respective
2appropriations for grants for medical care to or on behalf of
3premature and high-mortality risk infants and their mothers and
4for grants for supplemental food supplies provided under the
5United States Department of Agriculture Women, Infants and
6Children Nutrition Program, for any fiscal year without regard
7to the fact that the services being compensated for by such
8payment may have been rendered in a prior fiscal year, except
9as required by subsection (j) of this Section. Beginning on
10June 30, 2021, payments made by the Department of Public Health
11and the Department of Human Services from their respective
12appropriations for grants for medical care to or on behalf of
13premature and high-mortality risk infants and their mothers and
14for grants for supplemental food supplies provided under the
15United States Department of Agriculture Women, Infants and
16Children Nutrition Program payable from appropriations that
17have otherwise expired may be paid out of the expiring
18appropriations during the 4-month period ending at the close of
19business on October 31.
20    (d) The Department of Public Health and the Department of
21Human Services (acting as successor to the Department of Public
22Health under the Department of Human Services Act) shall each
23annually submit to the State Comptroller, Senate President,
24Senate Minority Leader, Speaker of the House, House Minority
25Leader, and the respective Chairmen and Minority Spokesmen of
26the Appropriations Committees of the Senate and the House, on

 

 

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1or before December 31, a report of fiscal year funds used to
2pay for services provided in any prior fiscal year. This report
3shall document by program or service category those
4expenditures from the most recently completed fiscal year used
5to pay for services provided in prior fiscal years.
6    (e) The Department of Healthcare and Family Services, the
7Department of Human Services (acting as successor to the
8Department of Public Aid), and the Department of Human Services
9making fee-for-service payments relating to substance abuse
10treatment services provided during a previous fiscal year shall
11each annually submit to the State Comptroller, Senate
12President, Senate Minority Leader, Speaker of the House, House
13Minority Leader, the respective Chairmen and Minority
14Spokesmen of the Appropriations Committees of the Senate and
15the House, on or before November 30, a report that shall
16document by program or service category those expenditures from
17the most recently completed fiscal year used to pay for (i)
18services provided in prior fiscal years and (ii) services for
19which claims were received in prior fiscal years.
20    (f) The Department of Human Services (as successor to the
21Department of Public Aid) shall annually submit to the State
22Comptroller, Senate President, Senate Minority Leader, Speaker
23of the House, House Minority Leader, and the respective
24Chairmen and Minority Spokesmen of the Appropriations
25Committees of the Senate and the House, on or before December
2631, a report of fiscal year funds used to pay for services

 

 

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1(other than medical care) provided in any prior fiscal year.
2This report shall document by program or service category those
3expenditures from the most recently completed fiscal year used
4to pay for services provided in prior fiscal years.
5    (g) In addition, each annual report required to be
6submitted by the Department of Healthcare and Family Services
7under subsection (e) shall include the following information
8with respect to the State's Medicaid program:
9        (1) Explanations of the exact causes of the variance
10    between the previous year's estimated and actual
11    liabilities.
12        (2) Factors affecting the Department of Healthcare and
13    Family Services' liabilities, including but not limited to
14    numbers of aid recipients, levels of medical service
15    utilization by aid recipients, and inflation in the cost of
16    medical services.
17        (3) The results of the Department's efforts to combat
18    fraud and abuse.
19    (h) As provided in Section 4 of the General Assembly
20Compensation Act, any utility bill for service provided to a
21General Assembly member's district office for a period
22including portions of 2 consecutive fiscal years may be paid
23from funds appropriated for such expenditure in either fiscal
24year.
25    (i) An agency which administers a fund classified by the
26Comptroller as an internal service fund may issue rules for:

 

 

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1        (1) billing user agencies in advance for payments or
2    authorized inter-fund transfers based on estimated charges
3    for goods or services;
4        (2) issuing credits, refunding through inter-fund
5    transfers, or reducing future inter-fund transfers during
6    the subsequent fiscal year for all user agency payments or
7    authorized inter-fund transfers received during the prior
8    fiscal year which were in excess of the final amounts owed
9    by the user agency for that period; and
10        (3) issuing catch-up billings to user agencies during
11    the subsequent fiscal year for amounts remaining due when
12    payments or authorized inter-fund transfers received from
13    the user agency during the prior fiscal year were less than
14    the total amount owed for that period.
15User agencies are authorized to reimburse internal service
16funds for catch-up billings by vouchers drawn against their
17respective appropriations for the fiscal year in which the
18catch-up billing was issued or by increasing an authorized
19inter-fund transfer during the current fiscal year. For the
20purposes of this Act, "inter-fund transfers" means transfers
21without the use of the voucher-warrant process, as authorized
22by Section 9.01 of the State Comptroller Act.
23    (i-1) Beginning on July 1, 2021, all outstanding
24liabilities, not payable during the 4-month lapse period as
25described in subsections (b-1), (b-3), (b-4), (b-5), (b-6), and
26(c) of this Section, that are made from appropriations for that

 

 

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

 

 

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

 

 

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

 

 

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1        funds other than those specifically referenced in
2        subparagraph (A) may be made from appropriations for
3        those purposes for any fiscal year without regard to
4        the fact that the Medical Assistance services being
5        compensated for by such payment may have been rendered
6        in a prior fiscal year. Such payments shall not be
7        subject to the requirements of subparagraph (A).
8        (3) Extended lapse period for Department of Healthcare
9    and Family Services Medical Assistance payments.
10    Notwithstanding any other State law to the contrary,
11    outstanding Department of Healthcare and Family Services
12    Medical Assistance liabilities, as of June 30th, payable
13    from appropriations which have otherwise expired, may be
14    paid out of the expiring appropriations during the 6-month
15    period ending at the close of business on December 31st.
16    (l) The changes to this Section made by Public Act 97-691
17this amendatory Act of the 97th General Assembly shall be
18effective for payment of Medical Assistance bills incurred in
19fiscal year 2013 and future fiscal years. The changes to this
20Section made by Public Act 97-691 this amendatory Act of the
2197th General Assembly shall not be applied to Medical
22Assistance bills incurred in fiscal year 2012 or prior fiscal
23years.
24    (m) (k) The Comptroller must issue payments against
25outstanding liabilities that were received prior to the lapse
26period deadlines set forth in this Section as soon thereafter

 

 

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1as practical, but no payment may be issued after the 4 months
2following the lapse period deadline without the signed
3authorization of the Comptroller and the Governor.
4(Source: P.A. 96-928, eff. 6-15-10; 96-958, eff. 7-1-10;
596-1501, eff. 1-25-11; 97-75, eff. 6-30-11; 97-333, eff.
68-12-11; 97-691, eff. 7-1-12; 97-732, eff. 6-30-12; 97-932,
7eff. 8-10-12; revised 8-23-12.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.