99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2338

 

Introduced 1/28/2016, by Sen. Dale A. Righter

 

SYNOPSIS AS INTRODUCED:
 
New Act
305 ILCS 5/5A-10  from Ch. 23, par. 5A-10
30 ILCS 805/8.40 new
5 ILCS 100/5-45  from Ch. 127, par. 1005-45

    Creates the Unbalanced Budget Response Act. Provides authority and procedures for the Governor to transfer previously appropriated funds between programs, purposes, accounts, agencies, or appropriation line items, and to transfer balances between special funds in the State treasury and the General Revenue Fund. Describes the agencies and programs subject to this authority. Provides that designated agencies may adopt emergency rules to carry out the purposes of the Act. Defines terms. Provides that the Act is repealed on July 1, 2017. Amends the Illinois Administrative Procedure Act to make conforming changes. Amends the Illinois Public Aid Code. Adds actions taken under the Unbalanced Budget Response Act to a Section relating to applicability. Amends the State Mandates Act to require implementation without reimbursement by the State. Effective immediately.


SRS099 00007 ALW 20008 b

 

 

A BILL FOR

 

SB2338SRS099 00007 ALW 20008 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Unbalanced Budget Response Act.
 
6    Section 5. Legislative intent. The State is currently
7confronted with an unprecedented fiscal crisis. Although the
8Constitution of the State of Illinois requires that spending
9not exceed available revenues, the State is currently spending
10in excess of estimated revenues during fiscal year 2016, which
11is significantly increasing the backlog of unpaid bills.
12Without substantial correction action taken by the General
13Assembly, the fiscal year 2017 budget also will be unbalanced.
14This Act is to be liberally construed and interpreted in a
15manner that allows the State to address the fiscal crisis for
16fiscal years 2016 and 2017.
 
17    Section 10. Definitions. As used in this Act, "agency"
18includes all officers, boards, commissions, departments, and
19agencies of the executive branch of the State government
20created by the Constitution, statute, or Executive Order,
21including, but not limited to, public institutions of higher
22education (as defined in the Board of Higher Education Act).

 

 

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1"Agency" shall not include the State Board of Education, the
2State Board of Elections, the Attorney General, the Secretary
3of State, the Comptroller, or the Treasurer.
 
4    Section 15. Designation of contingency reserves. For the
5purposes of balancing the State’s budget, the Governor may
6designate, by written notice to the Comptroller, a contingency
7reserve from the amounts appropriated from general funds held
8by the Treasurer for State’s fiscal years 2016 and 2017 to any
9agency; provided, however, that the Governor may not designate
10amounts to be set aside as a contingency reserve from amounts
11that (i) have been appropriated for payment of debt service or
12(ii) have been set aside by the State retirement systems
13governed by Articles 2, 14, 15, 16, or 18 of the Illinois
14Pension Code to pay benefits and administrative costs and as
15invested assets.
 
16    Section 20. Fund transfers. Notwithstanding any other
17provision of law, for the State’s fiscal years 2016 and 2017:
18        (a)at the direction of and upon notification from the
19    Governor, the Comptroller shall direct and the Treasurer
20    shall transfer an amount specified by the Governor from any
21    fund held by the Treasurer to any general fund held by the
22    Treasurer; provided, however, that no transfer may be made
23    out of (i) any federal trust fund; (ii) any amount set
24    aside for payment of debt service; (iii) any amount set

 

 

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1    aside for the State retirement systems governed by Articles
2    2, 14, 15, 16, or 18 of the Illinois Pension Code; (iv) any
3    fund designated for use exclusively by the legislative
4    branch or the judicial branch, or any official or agency of
5    the foregoing branches, or by the State Board of Elections
6    or the State Board of Education; (v) any State fund
7    designated for use exclusively by the Attorney General, the
8    Secretary of State, the Comptroller, or the Treasurer
9    without the written authorization from such official; or
10    (vi) the Road Fund; and
11        (b) the Governor, by written notice to the Comptroller,
12    may modify statutory transfers out of general funds held by
13    the Treasurer, and the Comptroller and the Treasurer shall
14    give effect to any such modification; provided, however,
15    that no modification may be made to statutory transfers out
16    of a general fund (i) for payment of debt service, (ii)
17    which are set aside for the State retirement systems
18    governed by Articles 2, 14, 15, 16, or 18 of the Illinois
19    Pension Code, (iii) to special funds held by the Treasurer
20    designated for use exclusively by, the legislative branch,
21    the judicial branch, or any official or agency of the
22    foregoing branches, (iv) special funds held by the
23    Treasurer designated for use exclusively by the State Board
24    of Elections or the State Board of Education, or (v) to
25    special funds held by the Treasurer designated for use
26    exclusively by the Attorney General, the Secretary of

 

 

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1    State, the Comptroller, or the Treasurer without the
2    written authorization from such official.
3    No transfer made pursuant to this Section may reduce the
4cumulative balance of all of the funds held by the Treasurer to
5an amount less than the total debt service payable during the
612 months immediately following the date of the transfer on any
7bonded indebtedness of the State and any certificates issued
8under the Short Term Borrowing Act. When any of the funds from
9which moneys have been transferred under this Section have
10insufficient cash from which the Comptroller may make
11expenditures properly supported by appropriations from the
12fund, then the State Treasurer and State Comptroller shall
13transfer from the General Revenue Fund to the fund such amount
14as is immediately necessary to satisfy outstanding expenditure
15obligations on a timely basis, subject to the provisions of the
16State Prompt Payment Act. If the Director of the Governor's
17Office of Management and Budget determines that any transfer to
18the general funds from any of the funds from which moneys have
19been transferred under this Section either (i) jeopardizes
20federal funding based on a written communication from a federal
21official or (ii) violates an order of a court of competent
22jurisdiction, then the Director may order the State Treasurer
23and State Comptroller, in writing, to transfer from the General
24Revenue Fund to that fund all or part of the amounts
25transferred from that fund under this Section.
 

 

 

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1    Section 25. Payment rate modifications. Notwithstanding
2any other provision of law, for the State’s fiscal years 2016
3and 2017, the Governor may modify any rate for payments made by
4an agency to providers of services.
 
5    Section 30. Limitations; notice.
6    (a) The sum of contingency reserves designated pursuant to
7Section 15, transfers made pursuant to subsection (a) of
8Section 20, modifications to transfers pursuant to subsection
9(b) of Section 20, and savings to be realized by the State due
10to payment rate modifications pursuant to Section 25, shall not
11exceed for each fiscal year the amount by which total State
12spending for that fiscal year is estimated to exceed available
13revenues for that fiscal year, as determined by the Governor’s
14Office of Management and Budget.
15    (b) The Governor shall provide notice of each contingency
16reserve designated pursuant to Section 15, transfer made
17pursuant to subsection (a) of Section 20, modification to
18transfers pursuant to subsection (b) of Section 20, and payment
19rate modification pursuant to Section 25 within 10 business
20days to the Clerk of the House of Representatives, the
21Secretary of the Senate, the Commission on Government
22Forecasting and Accountability, the State Comptroller, and the
23State Treasurer. A copy of such notices, or a cumulative
24summary of the actions taken, shall be posted on a public
25website maintained by the State.
 

 

 

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1    Section 40. Emergency rules. Notwithstanding any other
2provision of law, the Department on Aging, the Department of
3Children and Family Services, the Department of Healthcare and
4Family Services, the Department of Human Services, and the
5Department of Public Health may each adopt emergency rules
6pursuant to subsection (v) of Section 5-45 of the Illinois
7Administrative Procedure Act to limit, reduce, or adjust
8services, payment rates, expenditures, transfers of funds, and
9eligibility criteria, to the extent permitted by federal law,
10as necessary to implement (i) the State’s fiscal years 2016 and
112017 budgets, (ii) any contingency reserves designated by the
12Governor pursuant to Section 15, (iii) any transfer of balances
13or modification of statutory transfers pursuant to Section 20
14affecting State funds designated for use by the agency, or (iv)
15modifications made by the Governor pursuant to Section 25. The
16effectiveness of any such emergency rule, and any such
17adjustment, reduction, or limitation made pursuant thereto,
18shall expire on July 1, 2017. Nothing in this Section shall
19require rulemaking if the limitation, reduction, or adjustment
20would otherwise be within the authority of the agency without
21rulemaking.
 
22    Section 45. Repealer. This Act is repealed on July 1, 2017.
 
23    Section 105. The Illinois Administrative Procedure Act is

 

 

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1amended by changing Section 5-45 as follows:
 
2    (5 ILCS 100/5-45)  (from Ch. 127, par. 1005-45)
3    Sec. 5-45. Emergency rulemaking.
4    (a) "Emergency" means the existence of any situation that
5any agency finds reasonably constitutes a threat to the public
6interest, safety, or welfare.
7    (b) If any agency finds that an emergency exists that
8requires adoption of a rule upon fewer days than is required by
9Section 5-40 and states in writing its reasons for that
10finding, the agency may adopt an emergency rule without prior
11notice or hearing upon filing a notice of emergency rulemaking
12with the Secretary of State under Section 5-70. The notice
13shall include the text of the emergency rule and shall be
14published in the Illinois Register. Consent orders or other
15court orders adopting settlements negotiated by an agency may
16be adopted under this Section. Subject to applicable
17constitutional or statutory provisions, an emergency rule
18becomes effective immediately upon filing under Section 5-65 or
19at a stated date less than 10 days thereafter. The agency's
20finding and a statement of the specific reasons for the finding
21shall be filed with the rule. The agency shall take reasonable
22and appropriate measures to make emergency rules known to the
23persons who may be affected by them.
24    (c) An emergency rule may be effective for a period of not
25longer than 150 days, but the agency's authority to adopt an

 

 

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1identical rule under Section 5-40 is not precluded. No
2emergency rule may be adopted more than once in any 24 month
3period, except that this limitation on the number of emergency
4rules that may be adopted in a 24 month period does not apply
5to (i) emergency rules that make additions to and deletions
6from the Drug Manual under Section 5-5.16 of the Illinois
7Public Aid Code or the generic drug formulary under Section
83.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
9emergency rules adopted by the Pollution Control Board before
10July 1, 1997 to implement portions of the Livestock Management
11Facilities Act, (iii) emergency rules adopted by the Illinois
12Department of Public Health under subsections (a) through (i)
13of Section 2 of the Department of Public Health Act when
14necessary to protect the public's health, (iv) emergency rules
15adopted pursuant to subsection (n) of this Section, (v)
16emergency rules adopted pursuant to subsection (o) of this
17Section, or (vi) emergency rules adopted pursuant to subsection
18(c-5) of this Section, or (vii) emergency rules adopted
19pursuant to subsection (v) of this Section. Two or more
20emergency rules having substantially the same purpose and
21effect shall be deemed to be a single rule for purposes of this
22Section.
23    (c-5) To facilitate the maintenance of the program of group
24health benefits provided to annuitants, survivors, and retired
25employees under the State Employees Group Insurance Act of
261971, rules to alter the contributions to be paid by the State,

 

 

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1annuitants, survivors, retired employees, or any combination
2of those entities, for that program of group health benefits,
3shall be adopted as emergency rules. The adoption of those
4rules shall be considered an emergency and necessary for the
5public interest, safety, and welfare.
6    (d) In order to provide for the expeditious and timely
7implementation of the State's fiscal year 1999 budget,
8emergency rules to implement any provision of Public Act 90-587
9or 90-588 or any other budget initiative for fiscal year 1999
10may be adopted in accordance with this Section by the agency
11charged with administering that provision or initiative,
12except that the 24-month limitation on the adoption of
13emergency rules and the provisions of Sections 5-115 and 5-125
14do not apply to rules adopted under this subsection (d). The
15adoption of emergency rules authorized by this subsection (d)
16shall be deemed to be necessary for the public interest,
17safety, and welfare.
18    (e) In order to provide for the expeditious and timely
19implementation of the State's fiscal year 2000 budget,
20emergency rules to implement any provision of Public Act 91-24
21this amendatory Act of the 91st General Assembly or any other
22budget initiative for fiscal year 2000 may be adopted in
23accordance with this Section by the agency charged with
24administering that provision or initiative, except that the
2524-month limitation on the adoption of emergency rules and the
26provisions of Sections 5-115 and 5-125 do not apply to rules

 

 

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1adopted under this subsection (e). The adoption of emergency
2rules authorized by this subsection (e) shall be deemed to be
3necessary for the public interest, safety, and welfare.
4    (f) In order to provide for the expeditious and timely
5implementation of the State's fiscal year 2001 budget,
6emergency rules to implement any provision of Public Act 91-712
7this amendatory Act of the 91st General Assembly or any other
8budget initiative for fiscal year 2001 may be adopted in
9accordance with this Section by the agency charged with
10administering that provision or initiative, except that the
1124-month limitation on the adoption of emergency rules and the
12provisions of Sections 5-115 and 5-125 do not apply to rules
13adopted under this subsection (f). The adoption of emergency
14rules authorized by this subsection (f) shall be deemed to be
15necessary for the public interest, safety, and welfare.
16    (g) In order to provide for the expeditious and timely
17implementation of the State's fiscal year 2002 budget,
18emergency rules to implement any provision of Public Act 92-10
19this amendatory Act of the 92nd General Assembly or any other
20budget initiative for fiscal year 2002 may be adopted in
21accordance with this Section by the agency charged with
22administering that provision or initiative, except that the
2324-month limitation on the adoption of emergency rules and the
24provisions of Sections 5-115 and 5-125 do not apply to rules
25adopted under this subsection (g). The adoption of emergency
26rules authorized by this subsection (g) shall be deemed to be

 

 

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1necessary for the public interest, safety, and welfare.
2    (h) In order to provide for the expeditious and timely
3implementation of the State's fiscal year 2003 budget,
4emergency rules to implement any provision of Public Act 92-597
5this amendatory Act of the 92nd General Assembly or any other
6budget initiative for fiscal year 2003 may be adopted in
7accordance with this Section by the agency charged with
8administering that provision or initiative, except that the
924-month limitation on the adoption of emergency rules and the
10provisions of Sections 5-115 and 5-125 do not apply to rules
11adopted under this subsection (h). The adoption of emergency
12rules authorized by this subsection (h) shall be deemed to be
13necessary for the public interest, safety, and welfare.
14    (i) In order to provide for the expeditious and timely
15implementation of the State's fiscal year 2004 budget,
16emergency rules to implement any provision of Public Act 93-20
17this amendatory Act of the 93rd General Assembly or any other
18budget initiative for fiscal year 2004 may be adopted in
19accordance with this Section by the agency charged with
20administering that provision or initiative, except that the
2124-month limitation on the adoption of emergency rules and the
22provisions of Sections 5-115 and 5-125 do not apply to rules
23adopted under this subsection (i). The adoption of emergency
24rules authorized by this subsection (i) shall be deemed to be
25necessary for the public interest, safety, and welfare.
26    (j) In order to provide for the expeditious and timely

 

 

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1implementation of the provisions of the State's fiscal year
22005 budget as provided under the Fiscal Year 2005 Budget
3Implementation (Human Services) Act, emergency rules to
4implement any provision of the Fiscal Year 2005 Budget
5Implementation (Human Services) Act may be adopted in
6accordance with this Section by the agency charged with
7administering that provision, except that the 24-month
8limitation on the adoption of emergency rules and the
9provisions of Sections 5-115 and 5-125 do not apply to rules
10adopted under this subsection (j). The Department of Public Aid
11may also adopt rules under this subsection (j) necessary to
12administer the Illinois Public Aid Code and the Children's
13Health Insurance Program Act. The adoption of emergency rules
14authorized by this subsection (j) shall be deemed to be
15necessary for the public interest, safety, and welfare.
16    (k) In order to provide for the expeditious and timely
17implementation of the provisions of the State's fiscal year
182006 budget, emergency rules to implement any provision of
19Public Act 94-48 this amendatory Act of the 94th General
20Assembly or any other budget initiative for fiscal year 2006
21may be adopted in accordance with this Section by the agency
22charged with administering that provision or initiative,
23except that the 24-month limitation on the adoption of
24emergency rules and the provisions of Sections 5-115 and 5-125
25do not apply to rules adopted under this subsection (k). The
26Department of Healthcare and Family Services may also adopt

 

 

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1rules under this subsection (k) necessary to administer the
2Illinois Public Aid Code, the Senior Citizens and Persons with
3Disabilities Property Tax Relief Act, the Senior Citizens and
4Disabled Persons Prescription Drug Discount Program Act (now
5the Illinois Prescription Drug Discount Program Act), and the
6Children's Health Insurance Program Act. The adoption of
7emergency rules authorized by this subsection (k) shall be
8deemed to be necessary for the public interest, safety, and
9welfare.
10    (l) In order to provide for the expeditious and timely
11implementation of the provisions of the State's fiscal year
122007 budget, the Department of Healthcare and Family Services
13may adopt emergency rules during fiscal year 2007, including
14rules effective July 1, 2007, in accordance with this
15subsection to the extent necessary to administer the
16Department's responsibilities with respect to amendments to
17the State plans and Illinois waivers approved by the federal
18Centers for Medicare and Medicaid Services necessitated by the
19requirements of Title XIX and Title XXI of the federal Social
20Security Act. The adoption of emergency rules authorized by
21this subsection (l) shall be deemed to be necessary for the
22public interest, safety, and welfare.
23    (m) In order to provide for the expeditious and timely
24implementation of the provisions of the State's fiscal year
252008 budget, the Department of Healthcare and Family Services
26may adopt emergency rules during fiscal year 2008, including

 

 

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1rules effective July 1, 2008, in accordance with this
2subsection to the extent necessary to administer the
3Department's responsibilities with respect to amendments to
4the State plans and Illinois waivers approved by the federal
5Centers for Medicare and Medicaid Services necessitated by the
6requirements of Title XIX and Title XXI of the federal Social
7Security Act. The adoption of emergency rules authorized by
8this subsection (m) shall be deemed to be necessary for the
9public interest, safety, and welfare.
10    (n) In order to provide for the expeditious and timely
11implementation of the provisions of the State's fiscal year
122010 budget, emergency rules to implement any provision of
13Public Act 96-45 this amendatory Act of the 96th General
14Assembly or any other budget initiative authorized by the 96th
15General Assembly for fiscal year 2010 may be adopted in
16accordance with this Section by the agency charged with
17administering that provision or initiative. The adoption of
18emergency rules authorized by this subsection (n) shall be
19deemed to be necessary for the public interest, safety, and
20welfare. The rulemaking authority granted in this subsection
21(n) shall apply only to rules promulgated during Fiscal Year
222010.
23    (o) In order to provide for the expeditious and timely
24implementation of the provisions of the State's fiscal year
252011 budget, emergency rules to implement any provision of
26Public Act 96-958 this amendatory Act of the 96th General

 

 

SB2338- 15 -SRS099 00007 ALW 20008 b

1Assembly or any other budget initiative authorized by the 96th
2General Assembly for fiscal year 2011 may be adopted in
3accordance with this Section by the agency charged with
4administering that provision or initiative. The adoption of
5emergency rules authorized by this subsection (o) is deemed to
6be necessary for the public interest, safety, and welfare. The
7rulemaking authority granted in this subsection (o) applies
8only to rules promulgated on or after the effective date of
9Public Act 96-958 this amendatory Act of the 96th General
10Assembly through June 30, 2011.
11    (p) In order to provide for the expeditious and timely
12implementation of the provisions of Public Act 97-689,
13emergency rules to implement any provision of Public Act 97-689
14may be adopted in accordance with this subsection (p) by the
15agency charged with administering that provision or
16initiative. The 150-day limitation of the effective period of
17emergency rules does not apply to rules adopted under this
18subsection (p), and the effective period may continue through
19June 30, 2013. The 24-month limitation on the adoption of
20emergency rules does not apply to rules adopted under this
21subsection (p). The adoption of emergency rules authorized by
22this subsection (p) is deemed to be necessary for the public
23interest, safety, and welfare.
24    (q) In order to provide for the expeditious and timely
25implementation of the provisions of Articles 7, 8, 9, 11, and
2612 of Public Act 98-104 this amendatory Act of the 98th General

 

 

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1Assembly, emergency rules to implement any provision of
2Articles 7, 8, 9, 11, and 12 of Public Act 98-104 this
3amendatory Act of the 98th General Assembly may be adopted in
4accordance with this subsection (q) by the agency charged with
5administering that provision or initiative. The 24-month
6limitation on the adoption of emergency rules does not apply to
7rules adopted under this subsection (q). The adoption of
8emergency rules authorized by this subsection (q) is deemed to
9be necessary for the public interest, safety, and welfare.
10    (r) In order to provide for the expeditious and timely
11implementation of the provisions of Public Act 98-651 this
12amendatory Act of the 98th General Assembly, emergency rules to
13implement Public Act 98-651 this amendatory Act of the 98th
14General Assembly may be adopted in accordance with this
15subsection (r) by the Department of Healthcare and Family
16Services. The 24-month limitation on the adoption of emergency
17rules does not apply to rules adopted under this subsection
18(r). The adoption of emergency rules authorized by this
19subsection (r) is deemed to be necessary for the public
20interest, safety, and welfare.
21    (s) In order to provide for the expeditious and timely
22implementation of the provisions of Sections 5-5b.1 and 5A-2 of
23the Illinois Public Aid Code, emergency rules to implement any
24provision of Section 5-5b.1 or Section 5A-2 of the Illinois
25Public Aid Code may be adopted in accordance with this
26subsection (s) by the Department of Healthcare and Family

 

 

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1Services. The rulemaking authority granted in this subsection
2(s) shall apply only to those rules adopted prior to July 1,
32015. Notwithstanding any other provision of this Section, any
4emergency rule adopted under this subsection (s) shall only
5apply to payments made for State fiscal year 2015. The adoption
6of emergency rules authorized by this subsection (s) is deemed
7to be necessary for the public interest, safety, and welfare.
8    (t) In order to provide for the expeditious and timely
9implementation of the provisions of Article II of Public Act
1099-6 this amendatory Act of the 99th General Assembly,
11emergency rules to implement the changes made by Article II of
12Public Act 99-6 this amendatory Act of the 99th General
13Assembly to the Emergency Telephone System Act may be adopted
14in accordance with this subsection (t) by the Department of
15State Police. The rulemaking authority granted in this
16subsection (t) shall apply only to those rules adopted prior to
17July 1, 2016. The 24-month limitation on the adoption of
18emergency rules does not apply to rules adopted under this
19subsection (t). The adoption of emergency rules authorized by
20this subsection (t) is deemed to be necessary for the public
21interest, safety, and welfare.
22    (u) (t) In order to provide for the expeditious and timely
23implementation of the provisions of the Burn Victims Relief
24Act, emergency rules to implement any provision of the Act may
25be adopted in accordance with this subsection (u) (t) by the
26Department of Insurance. The rulemaking authority granted in

 

 

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1this subsection (u) (t) shall apply only to those rules adopted
2prior to December 31, 2015. The adoption of emergency rules
3authorized by this subsection (u) (t) is deemed to be necessary
4for the public interest, safety, and welfare.
5    (v) In order to provide for the expeditious and timely
6implementation of the provisions of the State’s budget for
7fiscal years 2016 and 2017, emergency rules to implement any
8provision of this amendatory Act of the 99th General Assembly
9may be adopted in accordance with this Section by each agency
10named in Section 40 of the Unbalanced Budget Response Act. The
11adoption of emergency rules authorized by this subsection (v)
12shall be deemed to be necessary for the public interest,
13safety, and welfare. The rulemaking authority granted in this
14subsection (v) shall apply only to rules adopted prior to July
151, 2017. Notwithstanding any other provision of this Section,
16any emergency rule adopted pursuant to this subsection (v)
17shall expire on July 1, 2017.
18(Source: P.A. 98-104, eff. 7-22-13; 98-463, eff. 8-16-13;
1998-651, eff. 6-16-14; 99-2, eff. 3-26-15; 99-6, eff. 1-1-16;
2099-143, eff. 7-27-15; 99-455, eff. 1-1-16; revised 10-15-15.)
 
21    Section 110. The Illinois Public Aid Code is amended by
22changing Section 5A-10 as follows:
 
23    (305 ILCS 5/5A-10)  (from Ch. 23, par. 5A-10)
24    Sec. 5A-10. Applicability.

 

 

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1    (a) The assessment imposed by subsection (a) of Section
25A-2 shall cease to be imposed and the Department's obligation
3to make payments shall immediately cease, and any moneys
4remaining in the Fund shall be refunded to hospital providers
5in proportion to the amounts paid by them, if:
6        (1) The payments to hospitals required under this
7    Article are not eligible for federal matching funds under
8    Title XIX or XXI of the Social Security Act;
9        (2) For State fiscal years 2009 through 2018, the
10    Department of Healthcare and Family Services adopts any
11    administrative rule change to reduce payment rates or
12    alters any payment methodology that reduces any payment
13    rates made to operating hospitals under the approved Title
14    XIX or Title XXI State plan in effect January 1, 2008
15    except for:
16            (A) any changes for hospitals described in
17        subsection (b) of Section 5A-3;
18            (B) any rates for payments made under this Article
19        V-A;
20            (C) any changes proposed in State plan amendment
21        transmittal numbers 08-01, 08-02, 08-04, 08-06, and
22        08-07;
23            (D) in relation to any admissions on or after
24        January 1, 2011, a modification in the methodology for
25        calculating outlier payments to hospitals for
26        exceptionally costly stays, for hospitals reimbursed

 

 

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1        under the diagnosis-related grouping methodology in
2        effect on July 1, 2011; provided that the Department
3        shall be limited to one such modification during the
4        36-month period after the effective date of this
5        amendatory Act of the 96th General Assembly;
6            (E) any changes affecting hospitals authorized by
7        Public Act 97-689;
8            (F) any changes authorized by Section 14-12 of this
9        Code, or for any changes authorized under Section 5A-15
10        of this Code; or
11            (G) any changes authorized under Section 5-5b.1;
12        or .
13            (H) any changes authorized under the Unbalanced
14        Budget Response Act.
15    (b) The assessment imposed by Section 5A-2 shall not take
16effect or shall cease to be imposed, and the Department's
17obligation to make payments shall immediately cease, if the
18assessment is determined to be an impermissible tax under Title
19XIX of the Social Security Act. Moneys in the Hospital Provider
20Fund derived from assessments imposed prior thereto shall be
21disbursed in accordance with Section 5A-8 to the extent federal
22financial participation is not reduced due to the
23impermissibility of the assessments, and any remaining moneys
24shall be refunded to hospital providers in proportion to the
25amounts paid by them.
26    (c) The assessments imposed by subsection (b-5) of Section

 

 

SB2338- 21 -SRS099 00007 ALW 20008 b

15A-2 shall not take effect or shall cease to be imposed, the
2Department's obligation to make payments shall immediately
3cease, and any moneys remaining in the Fund shall be refunded
4to hospital providers in proportion to the amounts paid by
5them, if the payments to hospitals required under Section
65A-12.4 are not eligible for federal matching funds under Title
7XIX of the Social Security Act.
8    (d) The assessments imposed by Section 5A-2 shall not take
9effect or shall cease to be imposed, the Department's
10obligation to make payments shall immediately cease, and any
11moneys remaining in the Fund shall be refunded to hospital
12providers in proportion to the amounts paid by them, if:
13        (1) for State fiscal years 2013 through 2018, the
14    Department reduces any payment rates to hospitals as in
15    effect on May 1, 2012, or alters any payment methodology as
16    in effect on May 1, 2012, that has the effect of reducing
17    payment rates to hospitals, except for any changes
18    affecting hospitals authorized in Public Act 97-689 and any
19    changes authorized by Section 14-12 of this Code, and
20    except for any changes authorized under Section 5A-15, and
21    except for any changes authorized under Section 5-5b.1, and
22    except for any changes authorized under the Unbalanced
23    Budget Response Act;
24        (2) for State fiscal years 2013 through 2018, the
25    Department reduces any supplemental payments made to
26    hospitals below the amounts paid for services provided in

 

 

SB2338- 22 -SRS099 00007 ALW 20008 b

1    State fiscal year 2011 as implemented by administrative
2    rules adopted and in effect on or prior to June 30, 2011,
3    except for any changes affecting hospitals authorized in
4    Public Act 97-689 and any changes authorized by Section
5    14-12 of this Code, and except for any changes authorized
6    under Section 5A-15, and except for any changes authorized
7    under Section 5-5b.1, and except for any changes authorized
8    under the Unbalanced Budget Response Act; or
9        (3) for State fiscal years 2015 through 2018, the
10    Department reduces the overall effective rate of
11    reimbursement to hospitals below the level authorized
12    under Section 14-12 of this Code, except for any changes
13    under Section 14-12 or Section 5A-15 of this Code, and
14    except for any changes authorized under Section 5-5b.1, and
15    except for any changes authorized under the Unbalanced
16    Budget Response Act.
17(Source: P.A. 98-463, eff. 8-16-13; 98-651, eff. 6-16-14; 99-2,
18eff. 3-26-15.)
 
19    Section 115. The State Mandates Act is amended by adding
20Section 8.40 as follows:
 
21    (30 ILCS 805/8.40 new)
22    Sec. 8.40. Exempt mandate. Notwithstanding Sections 6 and 8
23of this Act, no reimbursement by the State is required for the
24implementation of any mandate created by this amendatory Act of

 

 

SB2338- 23 -SRS099 00007 ALW 20008 b

1the 99th General Assembly.
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.