093_HB0701sam002

 










                                     LRB093 05499 DRJ 20203 a

 1                     AMENDMENT TO HOUSE BILL 701

 2        AMENDMENT NO.     .  Amend House Bill  701  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.   The State Finance Act is amended by adding
 5    Sections 5.620, 5.621, and 6z-56 and changing Section  8h  as
 6    follows:

 7        (30 ILCS 105/5.620 new)
 8        Sec. 5.620.  The Health Care Services Trust Fund.

 9        (30 ILCS 105/5.621 new)
10        Sec.    5.621.  The    Community    Mental   Health   and
11    Developmental Disabilities Medicaid Fund.

12        (30 ILCS 105/6z-56 new)
13        Sec. 6z-56.  The Health Care  Services  Trust  Fund.  The
14    Health  Care  Services  Trust  Fund  is  hereby  created as a
15    special fund in the State treasury.
16        The Fund shall consist of moneys deposited,  transferred,
17    or  appropriated into the Fund from units of local government
18    other than a county with a population greater than 3,000,000,
19    from the State, from federal  matching  funds,  or  from  any
20    other legal source.
 
                            -2-      LRB093 05499 DRJ 20203 a
 1        Subject to appropriation, the moneys in the Fund shall be
 2    used  by  the  Department  of  Public Aid to make payments to
 3    providers of services covered under  the  Medicaid  or  State
 4    Children's  Health  Insurance  programs. Payments may be made
 5    out  of  the  Fund  only  to  providers  located  within  the
 6    geographic jurisdiction of units  of  local  government  that
 7    make deposits, transfers, or appropriations into the Fund.
 8        The Department of Public Aid shall adopt rules concerning
 9    application for and disbursement of the moneys in the Fund.

10        (30 ILCS 105/8h)
11        Sec.    8h.    Transfers   to   General   Revenue   Fund.
12    Notwithstanding any other State  law  to  the  contrary,  the
13    Director  of  the  Governor's Office of Management and Budget
14    Bureau of the Budget may from time to time direct  the  State
15    Treasurer  and  Comptroller  to transfer a specified sum from
16    any fund held by the State Treasurer to the  General  Revenue
17    Fund  in order to help defray the State's operating costs for
18    the fiscal year.  The total transfer under this Section  from
19    any fund in any fiscal year shall not exceed the lesser of 8%
20    of  the  revenues  to  be deposited into the fund during that
21    year or 25% of  the  beginning  balance  in  the  fund.    No
22    transfer  may  be  made  from  a fund under this Section that
23    would have the effect of reducing the  available  balance  in
24    the  fund  to  an  amount  less  than  the  amount  remaining
25    unexpended  and  unreserved from the total appropriation from
26    that fund for that fiscal year.  This Section does not  apply
27    to any funds that are restricted by federal law to a specific
28    use  or  to  any  funds  in  the  Motor  Fuel Tax Fund or the
29    Hospital Provider Fund.  Notwithstanding any other  provision
30    of  this  Section, the total transfer under this Section from
31    the Road Fund or the State Construction  Account  Fund  shall
32    not  exceed  5% of the revenues to be deposited into the fund
33    during that year.
 
                            -3-      LRB093 05499 DRJ 20203 a
 1        In determining the  available  balance  in  a  fund,  the
 2    Director  of  the  Governor's Office of Management and Budget
 3    Bureau of the Budget may include receipts, transfers into the
 4    fund, and other resources anticipated to be available in  the
 5    fund in that fiscal year.
 6        The  State  Treasurer  and Comptroller shall transfer the
 7    amounts designated under this  Section  as  soon  as  may  be
 8    practicable  after  receiving  the direction to transfer from
 9    the Director of  the  Governor's  Office  of  Management  and
10    Budget Bureau of the Budget.
11    (Source: P.A. 93-32, eff. 6-20-03; revised 8-21-03.)

12        Section  10.   The Illinois Public Aid Code is amended by
13    changing Sections 5A-1, 5A-2, 5A-3, 5A-4, 5A-5,  5A-7,  5A-8,
14    5A-10,  and  14-1  and  by  adding Sections 5A-12, 5A-13, and
15    5A-14 as follows:

16        (305 ILCS 5/5A-1) (from Ch. 23, par. 5A-1)
17        Sec. 5A-1.  Definitions. As used in this Article,  unless
18    the context requires otherwise:
19        "Fund" means the Hospital Provider Fund.
20        "Hospital"  means  an  institution,  place,  building, or
21    agency located in this State that is subject to licensure  by
22    the  Illinois  Department of Public Health under the Hospital
23    Licensing  Act,  whether  public  or  private   and   whether
24    organized for profit or not-for-profit.
25        "Hospital  provider"  means  a  person  licensed  by  the
26    Department  of Public Health to conduct, operate, or maintain
27    a hospital, regardless of whether the person  is  a  Medicaid
28    provider.  For purposes of this paragraph, "person" means any
29    political  subdivision  of  the State, municipal corporation,
30    individual, firm, partnership, corporation, company,  limited
31    liability  company,  association, joint stock association, or
32    trust, or a receiver, executor, trustee, guardian,  or  other
 
                            -4-      LRB093 05499 DRJ 20203 a
 1    representative appointed by order of any court.
 2        "Occupied  bed  days" means the sum of the number of days
 3    that each bed was occupied by a patient for all  beds  during
 4    calendar  year  2001.   Occupied  bed  days shall be computed
 5    separately for each hospital  operated  or  maintained  by  a
 6    hospital provider.
 7        "Adjusted  gross  hospital  revenue"  shall be determined
 8    separately  for  each  hospital   conducted,   operated,   or
 9    maintained  by  a  hospital provider, and  means the hospital
10    provider's  total  gross  patient  revenues   less   Medicare
11    contractual  allowances,  but  does not include gross patient
12    revenue  (and  the  portion  of  any   Medicare   contractual
13    allowance  related  thereto)  from  skilled  or  intermediate
14    long-term  care services within the meaning of Title XVIII or
15    XIX of the Social Security Act.
16        "Intergovernmental transfer payment" means  the  payments
17    established  under  Section  15-3  of this Code, and includes
18    without limitation payments payable under  that  Section  for
19    July, August, and September of 1992.
20    (Source: P.A. 87-861; 88-88.)

21        (305 ILCS 5/5A-2) (from Ch. 23, par. 5A-2)
22        Sec. 5A-2.  Assessment; no local authorization to tax.
23        (a)  Subject  to  Sections  5A-3  and  5A-10,  an  annual
24    assessment  on inpatient services is imposed on each hospital
25    provider for State fiscal years 2004 and 2005  in  an  amount
26    equal  to  the  hospital's  occupied  bed  days multiplied by
27    $84.19.
28        The Department of Public Aid  shall  use  the  number  of
29    occupied  bed days as reported by each hospital on the Annual
30    Survey of Hospitals conducted by  the  Department  of  Public
31    Health to calculate the hospital's annual assessment.  If the
32    sum  of a hospital's occupied bed days is not reported on the
33    Annual Survey of Hospitals, then the Department of Public Aid
 
                            -5-      LRB093 05499 DRJ 20203 a
 1    may obtain the sum of  occupied  bed  days  from  any  source
 2    available,  including, but not limited to, records maintained
 3    by the hospital provider, which may be inspected at all times
 4    during business hours of the day by the Department of  Public
 5    Aid  or  its  duly  authorized  agents and employees. For the
 6    privilege of engaging in the occupation of hospital provider,
 7    an assessment is imposed upon each hospital provider for  the
 8    State  fiscal  year  beginning  on July 1, 1993 and ending on
 9    June 30, 1994, in an amount equal to 1.88% of the  provider's
10    adjusted  gross hospital revenue for the most recent calendar
11    year ending before the beginning of that State fiscal year.
12        Effective July 1, 1994 through June 30, 1996,  an  annual
13    assessment  is  imposed  upon  each  hospital  provider in an
14    amount  equal  to  the  provider's  adjusted  gross  hospital
15    revenue for the most recent calendar year ending  before  the
16    beginning  of  that  State  fiscal  year  multiplied  by  the
17    Provider's Savings Rate.
18        Effective  July  1,  1996  through  March  31,  1997,  an
19    assessment  is  imposed  upon  each  hospital  provider in an
20    amount equal to  three-fourths  of  the  provider's  adjusted
21    gross  hospital  revenue for calendar year 1995 multiplied by
22    the Provider's Savings Rate.  No assessment shall be  imposed
23    on or after April 1, 1997.
24        Before July 1, 1995, the Provider's Savings Rate is 1.88%
25    multiplied  by  a  fraction,  the  numerator  of which is the
26    Maximum Section 5A-2 Contribution  minus  the  Cigarette  Tax
27    Contribution,  and  the  denominator  of which is the Maximum
28    Section 5A-2  Contribution.   Effective  July  1,  1995,  the
29    Provider's  Savings  Rate  is 1.25% multiplied by a fraction,
30    the  numerator  of  which  is  the   Maximum   Section   5A-2
31    Contribution  minus  the  Cigarette Tax Contribution, and the
32    denominator  of   which   is   the   Maximum   Section   5A-2
33    Contribution.
34        The  Cigarette  Tax  Contribution is the sum of the total
 
                            -6-      LRB093 05499 DRJ 20203 a
 1    amount  deposited  in  the  Hospital  Provider  Fund  in  the
 2    previous State fiscal year pursuant to Section  2(a)  of  the
 3    Cigarette  Tax  Act,  plus  the total amount deposited in the
 4    Hospital Provider Fund in  the  previous  State  fiscal  year
 5    pursuant to Section 5A-3(c) of this Code.
 6        The Maximum Section 5A-2 Contribution is the total amount
 7    of  tax  imposed by this Section in the previous State fiscal
 8    year on providers  subject  to  this  Act,  multiplied  by  a
 9    fraction  the  numerator  of which is adjusted gross hospital
10    revenues reported to the Department by providers  subject  to
11    this   Act  for  the  previous  State  fiscal  year  and  the
12    denominator of which  is  adjusted  gross  hospital  revenues
13    reported  to  the Department by providers subject to this Act
14    for the State fiscal year immediately preceding the  previous
15    State fiscal year.
16        The  Department  shall  notify  hospital providers of the
17    Provider's  Savings  Rate  by  mailing  a  notice   to   each
18    provider's  last known address as reflected by the records of
19    the Illinois Department.
20        (b)  Nothing in this amendatory Act of the  93rd  General
21    Assembly  1995  shall be construed to authorize any home rule
22    unit or other unit of local government to license for revenue
23    or to impose a tax or assessment upon hospital  providers  or
24    the  occupation  of hospital provider, or a tax or assessment
25    measured by the income or earnings of a hospital provider.
26        (c)  As  provided  in  Section  5A-14,  this  Section  is
27    repealed on July 1, 2005.
28    (Source:  P.A.  88-88;  89-21,  eff.  7-1-95;  89-499,   eff.
29    6-28-96.)

30        (305 ILCS 5/5A-3) (from Ch. 23, par. 5A-3)
31        Sec. 5A-3.  Exemptions; intergovernmental transfers.
32        (a)  Blank). A hospital provider which is a county with a
33    population    of    more    than    3,000,000    that   makes
 
                            -7-      LRB093 05499 DRJ 20203 a
 1    intergovernmental transfer payments as  provided  in  Section
 2    15-3 of this Code shall be exempt from the assessment imposed
 3    by  Section  5A-2,  unless  the  exemption  is adjudged to be
 4    unconstitutional or otherwise  invalid,  in  which  case  the
 5    county  shall  pay the assessment imposed by Section 5A-2 for
 6    all assessment periods beginning on or after  July  1,  1992,
 7    and  the  assessment  so paid shall be creditable against the
 8    intergovernmental transfer payments.
 9        (b)  A hospital provider that is a State agency, a  State
10    university,  or  a  county  with a population of 3,000,000 or
11    more is exempt from the assessment imposed by Section 5A-2. A
12    hospital organized under the University of Illinois  Hospital
13    Act and exempt from the assessment imposed by Section 5A-2 is
14    hereby authorized to enter into an interagency agreement with
15    the  Illinois  Department  to make intergovernmental transfer
16    payments to the Illinois Department.  These payments shall be
17    deposited into the University of Illinois  Hospital  Services
18    Fund  or,  if  that  Fund  ceases  to exist, into the General
19    Revenue Fund.
20        (b-2)  A hospital  provider  that  is  a  county  with  a
21    population   of   less   than   3,000,000   or   a  township,
22    municipality,  hospital  district,   or   any   other   local
23    governmental  unit  is  exempt from the assessment imposed by
24    Section 5A-2.
25        (b-5)  (Blank). A hospital operated by the Department  of
26    Human  Services in the course of performing its mental health
27    and developmental disabilities functions is exempt  from  the
28    assessment imposed by Section 5A-2.
29        (b-10)  A  hospital  provider  whose  hospital  does  not
30    charge for its services is exempt from the assessment imposed
31    by  Section  5A-2,  unless  the  exemption  is adjudged to be
32    unconstitutional or otherwise  invalid,  in  which  case  the
33    hospital provider shall pay the assessment imposed by Section
34    5A-2.
 
                            -8-      LRB093 05499 DRJ 20203 a
 1        (b-15)  A hospital provider whose hospital is licensed by
 2    the  Department of Public Health as a psychiatric hospital is
 3    exempt from the assessment imposed by  Section  5A-2,  unless
 4    the exemption is adjudged to be unconstitutional or otherwise
 5    invalid,  in  which  case the hospital provider shall pay the
 6    assessment imposed by Section 5A-2.
 7        (b-20)  A hospital provider whose hospital is licensed by
 8    the Department of Public Health as a rehabilitation  hospital
 9    is exempt from the assessment imposed by Section 5A-2, unless
10    the exemption is adjudged to be unconstitutional or otherwise
11    invalid,  in  which  case the hospital provider shall pay the
12    assessment imposed by Section 5A-2.
13        (b-25)  A hospital provider whose hospital (i) is  not  a
14    psychiatric  hospital, rehabilitation hospital, or children's
15    hospital and (ii) has an average  length  of  inpatient  stay
16    greater than 25 days is exempt from the assessment imposed by
17    Section   5A-2,  unless  the  exemption  is  adjudged  to  be
18    unconstitutional or otherwise  invalid,  in  which  case  the
19    hospital provider shall pay the assessment imposed by Section
20    5A-2.
21        (c)  (Blank).   The   Illinois   Department   is   hereby
22    authorized  to  enter  into agreements with publicly owned or
23    operated  hospitals  to   make   intergovernmental   transfer
24    payments to the Illinois Department.  These payments shall be
25    deposited  into  the  Hospital Provider Fund, except that any
26    payments arising under an agreement with a hospital organized
27    under the  University  of  Illinois  Hospital  Act  shall  be
28    deposited  into  the University of Illinois Hospital Services
29    Fund, if that Fund exists.
30    (Source:  P.A.  88-88;  88-554,  eff.  7-26-94;  89-21,  eff.
31    7-1-95; 89-507, eff. 7-1-97.)

32        (305 ILCS 5/5A-4) (from Ch. 23, par. 5A-4)
33        Sec. 5A-4.  Payment of assessment; penalty.
 
                            -9-      LRB093 05499 DRJ 20203 a
 1        (a)  The annual assessment imposed by  Section  5A-2  for
 2    State fiscal year 2004 shall be due and payable on June 18 of
 3    the  year. The assessment imposed by Section 5A-2 for a State
 4    fiscal year 2005  shall  be  due  and  payable  in  quarterly
 5    installments, each equalling one-fourth of the assessment for
 6    the  year,  on  July 19, October 19, January 18, and April 19
 7    September 30, December 31, March 31, and May 31 of the  year;
 8    except  that  for  the  period July 1, 1996 through March 31,
 9    1997, the assessment imposed by Section 5A-2 for that  period
10    shall be due and payable in 3 equal installments on September
11    30,  December 31, and March 31 of that period. No installment
12    payment of an assessment imposed by Section 5A-2 shall be due
13    and payable, however, until after: (i) the hospital  provider
14    receives  written  notice  from  the Department of Public Aid
15    that the payment methodologies to  hospitals  required  under
16    Section  5A-12 have been approved by the Centers for Medicare
17    and Medicaid Services of the U.S. Department  of  Health  and
18    Human  Services  and  the  waiver under 42 CFR 433.68 for the
19    assessment imposed by Section 5A-2 has been  granted  by  the
20    Centers  for  Medicare  and  Medicaid  Services  of  the U.S.
21    Department  of  Health  and  Human  Services;  and  (ii)  the
22    hospital has received the  payments  required  under  Section
23    5A-12.
24        (b)  The  Illinois  Department is authorized to establish
25    delayed payment schedules for  hospital  providers  that  are
26    unable  to  make  installment  payments  when  due under this
27    Section due to financial difficulties, as determined  by  the
28    Illinois Department.
29        (c)  If  a hospital provider fails to pay the full amount
30    of an installment when due (including any extensions  granted
31    under  subsection  (b)),  there  shall,  unless waived by the
32    Illinois Department for reasonable cause,  be  added  to  the
33    assessment imposed by Section 5A-2 a penalty assessment equal
34    to  the lesser of (i) 5% of the amount of the installment not
 
                            -10-     LRB093 05499 DRJ 20203 a
 1    paid on or before the due date plus 5% of the portion thereof
 2    remaining unpaid on the last day of each 30-day period  month
 3    thereafter or (ii) 100% of the installment amount not paid on
 4    or  before  the  due  date.  For purposes of this subsection,
 5    payments will be credited first to unpaid installment amounts
 6    (rather than to penalty or interest), beginning with the most
 7    delinquent installments.
 8    (Source: P.A. 88-88; 89-499, eff. 6-28-96.)

 9        (305 ILCS 5/5A-5) (from Ch. 23, par. 5A-5)
10        Sec. 5A-5.  Notice  Reporting;  penalty;  maintenance  of
11    records.
12        (a)  After  December 31 of each year (except as otherwise
13    provided in this subsection), and on or before  March  31  of
14    the  succeeding year, the Department of Public Aid shall send
15    a notice of assessment to every hospital provider subject  to
16    assessment  under  this  Article shall file a return with the
17    Illinois Department.  The notice of assessment  shall  notify
18    the  hospital  of  its return shall report the adjusted gross
19    hospital revenue from the calendar year just ended and  shall
20    be  utilized  by  the  Illinois  Department  to calculate the
21    assessment for the State fiscal year commencing on  the  next
22    July  1,  except  that the notice return for the State fiscal
23    year commencing July 1, 2003 1992 and the report  of  revenue
24    for  calendar  year  1991  shall  be  sent filed on or before
25    December 15, 2003 September  30,  1992.   The  notice  return
26    shall  be  on  a form prepared by the Illinois Department and
27    shall state the following:
28             (1)  The name of the hospital provider.
29             (2)  The  address   of   the   hospital   provider's
30        principal  place  of  business  from  which  the provider
31        engages in the occupation of hospital  provider  in  this
32        State,   and  the  name  and  address  of  each  hospital
33        operated, conducted, or maintained  by  the  provider  in
 
                            -11-     LRB093 05499 DRJ 20203 a
 1        this State.
 2             (3)  The  occupied  bed days adjusted gross hospital
 3        revenue of the hospital provider for  the  calendar  year
 4        just  ended,  the  amount  of  assessment  imposed  under
 5        Section  5A-2  for  the  State  fiscal year for which the
 6        notice return is sent  filed,  and  the  amount  of  each
 7        quarterly  installment to be paid during the State fiscal
 8        year.
 9             (4)  (Blank). The amount of penalty due, if any.
10             (5)  Other reasonable information as  determined  by
11        the Illinois Department requires.
12        (b)  If   a  hospital  provider  conducts,  operates,  or
13    maintains more than one hospital  licensed  by  the  Illinois
14    Department  of Public Health, the provider shall may not file
15    a single return covering all those hospitals, but shall  file
16    a separate return for each hospital and shall compute and pay
17    the assessment for each hospital separately.
18        (c)  Notwithstanding any other provision in this Article,
19    in  the  case  of a person who ceases to conduct, operate, or
20    maintain a hospital in respect of which the person is subject
21    to assessment under this Article as a hospital provider,  the
22    assessment  for  the State fiscal year in which the cessation
23    occurs  shall  be  adjusted  by  multiplying  the  assessment
24    computed under Section 5A-2 by a fraction, the  numerator  of
25    which  is  the number of days months in the year during which
26    the provider conducts, operates, or  maintains  the  hospital
27    and  the  denominator  of  which is 365 12.  Immediately upon
28    ceasing to conduct, operate,  or  maintain  a  hospital,  the
29    person  shall  pay  file  a  final,  amended  return with the
30    Illinois Department not more than 90 days after the cessation
31    reflecting the adjustment and shall pay with the final return
32    the assessment for the year as so adjusted (to the extent not
33    previously paid).
34        (d)  Notwithstanding any other provision in this Article,
 
                            -12-     LRB093 05499 DRJ 20203 a
 1    a  provider   who   commences   conducting,   operating,   or
 2    maintaining   a   hospital,   upon  notice  by  the  Illinois
 3    Department, shall file an initial return for the State fiscal
 4    year  in  which  the  commencement  occurs  within  90   days
 5    thereafter  and  shall  pay  the  assessment  computed  under
 6    Section  5A-2 and subsection (e) in equal installments on the
 7    due dates stated in the notice date of the return and on  the
 8    regular  installment  due  dates  for  the  State fiscal year
 9    occurring after the due dates  date  of  the  initial  notice
10    return.
11        (e)  Notwithstanding any other provision in this Article,
12    in  the  case  of  a  hospital provider that did not conduct,
13    operate, or maintain a hospital throughout the calendar  year
14    2001  preceding  a State fiscal year, the assessment for that
15    State  fiscal  year  shall  be  computed  on  the  basis   of
16    hypothetical   occupied  bed  days  adjusted  gross  hospital
17    revenue for the full calendar year  as  determined  by  rules
18    adopted  by  the  Illinois  Department (which may be based on
19    annualization of the provider's actual revenues for a portion
20    of the calendar year, or revenues of  a  comparable  hospital
21    for the year, including revenues realized by a prior provider
22    from the same hospital during the year).
23        (f)  (Blank). In the case of a hospital provider existing
24    as  a  corporation  or legal entity other than an individual,
25    the return filed by it shall  be  signed  by  its  president,
26    vice-president,  secretary,  or  treasurer or by its properly
27    authorized agent.
28        (g)  (Blank). If a hospital provider fails  to  file  its
29    return  for  a State fiscal year on or before the due date of
30    the return,  there  shall,  unless  waived  by  the  Illinois
31    Department  for  reasonable cause, be added to the assessment
32    imposed by Section 5A-2 for the State fiscal year  a  penalty
33    assessment  equal  to  25%  of the assessment imposed for the
34    year.
 
                            -13-     LRB093 05499 DRJ 20203 a
 1        (h)  (Blank).  Every   hospital   provider   subject   to
 2    assessment  under  this Article shall keep sufficient records
 3    to  permit  the  determination  of  adjusted  gross  hospital
 4    revenue on a calendar year basis.  All such records shall  be
 5    kept  in  the English language and shall, at all times during
 6    business hours of the day, be subject to  inspection  by  the
 7    Illinois   Department  or  its  duly  authorized  agents  and
 8    employees.
 9    (Source: P.A. 87-861.)

10        (305 ILCS 5/5A-7) (from Ch. 23, par. 5A-7)
11        Sec. 5A-7. Administration; enforcement provisions.
12        (a)  To the extent practicable, the  Illinois  Department
13    shall  administer  and  enforce  this Article and collect the
14    assessments, interest, and penalty assessments imposed  under
15    this  Article using procedures employed in its administration
16    of this Code generally and, as it  deems  appropriate,  in  a
17    manner  similar  to  that  in which the Department of Revenue
18    administers and collects the retailers' occupation tax  under
19    the  Retailers'  Occupation  Tax  Act  ("ROTA").   Instead of
20    certificates of registration, the Illinois  Department  shall
21    establish  and  maintain  a listing of all hospital providers
22    appearing in the  licensing  records  of  the  Department  of
23    Public   Health,  which  shall  show  each  provider's  name,
24    principal place of business, and the name and address of each
25    hospital operated, conducted, or maintained by  the  provider
26    in   this   State.   In  addition,  the  following  specified
27    provisions  of  the  Retailers'  Occupation   Tax   Act   are
28    incorporated  by  reference into this Section except that the
29    Illinois  Department  and  its  Director  (rather  than   the
30    Department  of  Revenue  and its Director) and every hospital
31    provider subject to assessment measured by occupied bed  days
32    adjusted  gross  hospital  revenue  and  to the return filing
33    requirements of this Article (rather than persons subject  to
 
                            -14-     LRB093 05499 DRJ 20203 a
 1    retailers' occupation tax measured by gross receipts from the
 2    sale  of  tangible  personal  property  at  retail and to the
 3    return filing requirements of ROTA) shall  have  the  powers,
 4    duties,  and  rights  specified  in these ROTA provisions, as
 5    modified in this Section or by the Illinois Department  in  a
 6    manner  consistent with this Article and except as manifestly
 7    inconsistent with the other provisions of this Article:
 8             (1)  ROTA, Section 4 (examination of return;  notice
 9        of   correction;   evidence;   limitations;  protest  and
10        hearing), except that (i) the Illinois  Department  shall
11        issue   notices  of  assessment  liability  (rather  than
12        notices of tax liability as provided in ROTA, Section 4);
13        (ii) in the case of a fraudulent return or in the case of
14        an extended period agreed to by the  Illinois  Department
15        and  the  hospital  provider before the expiration of the
16        limitation period,  no  notice  of  assessment  liability
17        shall  be issued more than 3 years after the later of the
18        due date of the return required by Section  5A-5  or  the
19        date  the return (or an amended return) was filed (rather
20        within the period stated in ROTA, Section 4);  and  (iii)
21        the  penalty  provisions  of  ROTA,  Section  4 shall not
22        apply.
23             (2)  ROTA, Sec. 5 (failure to make  return;  failure
24        to  pay assessment), except that the penalty and interest
25        provisions of ROTA, Section 5 shall not apply.
26             (3)  ROTA,    Section    5a    (lien;    attachment;
27        termination; notice; protest; review;  release  of  lien;
28        status of lien).
29             (4)  ROTA,  Section  5b  (State  lien notices; State
30        lien index; duties of recorder and registrar of titles).
31             (5)  ROTA,  Section  5c   (liens;   certificate   of
32        release).
33             (6)  ROTA,  Section  5d  (Department not required to
34        furnish bond; claim to property attached or levied upon).
 
                            -15-     LRB093 05499 DRJ 20203 a
 1             (7)  ROTA,  Section  5e   (foreclosure   on   liens;
 2        enforcement).
 3             (8)  ROTA,  Section 5f (demand for payment; levy and
 4        sale of property; limitation).
 5             (9)  ROTA,   Section   5g   (sale    of    property;
 6        redemption).
 7             (10)  ROTA,  Section  5j (sales on transfers outside
 8        usual course of business; report; payment of  assessment;
 9        rights  and  duties  of  purchaser; penalty), except that
10        notice shall be provided to the  Illinois  Department  as
11        specified by rule.
12             (11)  ROTA, Section 6 (erroneous payments; credit or
13        refund),  provided  that  (i) the Illinois Department may
14        only apply an  amount  otherwise  subject  to  credit  or
15        refund  to  a  liability arising under this Article; (ii)
16        except in the case of an extended period agreed to by the
17        Illinois Department and the hospital provider before  the
18        expiration  of this limitation period, a claim for credit
19        or refund must be filed no more than 3  years  after  the
20        due  date  of the return required by Section 5A-5 (rather
21        than the time limitation stated in ROTA, Section 6);  and
22        (iii) credits or refunds shall not bear interest.
23             (12)  ROTA,   Section   6a  (claims  for  credit  or
24        refund).
25             (13)  ROTA, Section 6b (tentative  determination  of
26        claim; notice; hearing; review), provided that a hospital
27        provider or its representative shall have 60 days (rather
28        than 20 days)  within which to file a protest and request
29        for  hearing  in response to a tentative determination of
30        claim.
31             (14)  ROTA,  Section  6c  (finality   of   tentative
32        determinations).
33             (15)  ROTA,    Section    8    (investigations   and
34        hearings).
 
                            -16-     LRB093 05499 DRJ 20203 a
 1             (16)  ROTA, Section 9 (witness; immunity).
 2             (17)  ROTA,  Section  10  (issuance  of   subpoenas;
 3        attendance   of   witnesses;   production  of  books  and
 4        records).
 5             (18)  ROTA, Section  11  (information  confidential;
 6        exceptions).
 7             (19)  ROTA,   Section  12  (rules  and  regulations;
 8        hearing; appeals), except that a hospital provider  shall
 9        not be required to file a bond or be subject to a lien in
10        lieu  thereof  in  order  to  seek court review under the
11        Administrative  Review  Law  of  a  final  assessment  or
12        revised final assessment or the equivalent thereof issued
13        by the Illinois Department under this Article.
14        (b)  In addition to any other  remedy  provided  for  and
15    without   sending  a  notice  of  assessment  liability,  the
16    Illinois Department  may  collect  an  unpaid  assessment  by
17    withholding,  as payment of the assessment, reimbursements or
18    other amounts otherwise payable by the Illinois Department to
19    the provider.
20    (Source: P.A. 87-861.)

21        (305 ILCS 5/5A-8) (from Ch. 23, par. 5A-8)
22        Sec. 5A-8.  Hospital Provider Fund.
23        (a)  There is created in the State Treasury the  Hospital
24    Provider  Fund. Interest earned by the Fund shall be credited
25    to the Fund.  The Fund shall  not  be  used  to  replace  any
26    moneys  appropriated  to  the Medicaid program by the General
27    Assembly.
28        (b)  The Fund is created for  the  purpose  of  receiving
29    moneys  in accordance with Section 5A-6 and disbursing moneys
30    only for the following purposes,  notwithstanding  any  other
31    provision of law as follows:
32             (1)  For  making  payments  to hospitals as required
33        under Articles V, VI, and XIV  hospital  inpatient  care,
 
                            -17-     LRB093 05499 DRJ 20203 a
 1        hospital  ambulatory  care,  and  disproportionate  share
 2        hospital  distributive  expenditures made under Title XIX
 3        of the Social Security Act and Article V of this Code and
 4        under the Children's Health Insurance Program Act.
 5             (2)  For the reimbursement of  moneys  collected  by
 6        the   Illinois  Department  from  hospitals  or  hospital
 7        providers through error  or  mistake  in  performing  the
 8        activities authorized under this Article and Article V of
 9        this  Code and for making required payments under Section
10        14-9 of this Code if there are no  moneys  available  for
11        those payments in the Hospital Services Trust Fund.
12             (3)  For payment of administrative expenses incurred
13        by the Illinois Department or its agent in performing the
14        activities authorized by this Article.
15             (4)  For   payments   of   any   amounts  which  are
16        reimbursable to the federal government for payments  from
17        this Fund which are required to be paid by State warrant.
18             (5)  For  making transfers to the General Obligation
19        Bond Retirement and Interest Fund, as those transfers are
20        authorized in the proceedings authorizing debt under  the
21        Short  Term  Borrowing Act, but transfers made under this
22        paragraph (5)  shall not exceed the principal  amount  of
23        debt  issued  in anticipation of the receipt by the State
24        of moneys to be deposited into the Fund.
25             (6)  For making transfers to any other fund  in  the
26        State  treasury,  but transfers made under this paragraph
27        (6) shall not exceed the  amount  transferred  previously
28        from that other fund into the Hospital Provider Fund.
29             (7)  For  making  transfers  to the Community Mental
30        Health  and  Developmental  Disabilities  Medicaid  Fund,
31        including  4%  of  the  moneys  received  from   hospital
32        providers  under  Section  5A-4  and transferred into the
33        Hospital Provider  Fund  under  Section  5A-6.  Transfers
34        under  this  paragraph  shall be made within 7 days after
 
                            -18-     LRB093 05499 DRJ 20203 a
 1        the payments have been received pursuant to the  schedule
 2        of payments provided in subsection (a) of Section 5A-4.
 3             (8)  For    making    transfers    to   the   Budget
 4        Stabilization Fund, including 16% of the moneys  received
 5        from   hospital   providers   under   Section   5A-4  and
 6        transferred into the Hospital Provider Fund under Section
 7        5A-6. Transfers under this paragraph shall be made within
 8        7 days after the payments have been received pursuant  to
 9        the  schedule  of  payments provided in subsection (a) of
10        Section 5A-4.
11             (9)  For  making  refunds  to   hospital   providers
12        pursuant to Section 5A-10.
13        Disbursements   from   the  Fund,  other  than  transfers
14    authorized under paragraphs (5) and (6) of this subsection to
15    the General Obligation Bond  Retirement  and  Interest  Fund,
16    shall  be  by  warrants  drawn  by the State Comptroller upon
17    receipt of  vouchers  duly  executed  and  certified  by  the
18    Illinois Department.
19        (c)  The Fund shall consist of the following:
20             (1)  All   moneys   collected  or  received  by  the
21        Illinois Department from the hospital provider assessment
22        imposed by this Article.
23             (2)  All federal  matching  funds  received  by  the
24        Illinois  Department  as a result of expenditures made by
25        the Illinois Department that are attributable  to  moneys
26        deposited in the Fund.
27             (3)  Any  interest  or penalty levied in conjunction
28        with the administration of this Article.
29             (4)  Moneys transferred from  another  fund  in  the
30        State  treasury.  Any  balance  in  the Hospital Services
31        Trust Fund in the State Treasury.  The balance  shall  be
32        transferred   to  the  Fund  upon  certification  by  the
33        Illinois Department to the State Comptroller that all  of
34        the  disbursements  required  by Section 14-2(b)  of this
 
                            -19-     LRB093 05499 DRJ 20203 a
 1        Code have been made.
 2             (5)  All other moneys received for the Fund from any
 3        other source, including interest earned thereon.
 4        (d)  (Blank). The Fund shall cease to exist on October 1,
 5    1999.  Any balance in the Fund  as  of  that  date  shall  be
 6    transferred  to  the  General  Revenue Fund.  Any moneys that
 7    otherwise would be paid into the Fund on or after  that  date
 8    shall  be  deposited  into  the  General  Revenue  Fund.  Any
 9    disbursements on or after that date that otherwise  would  be
10    made  from  the  Fund  may  be  appropriated  by  the General
11    Assembly from the General Revenue Fund.
12    (Source: P.A. 89-626, eff. 8-9-96; 90-587, eff. 7-1-98.)

13        (305 ILCS 5/5A-10) (from Ch. 23, par. 5A-10)
14        Sec. 5A-10. Applicability.
15        (a)  The assessment imposed by  Section  5A-2  shall  not
16    take  effect  or  shall  cease  to be imposed, and any moneys
17    remaining in the Fund shall be refunded to hospital providers
18    in proportion to the amounts paid by them, if:
19             (1)  the sum of the appropriations for State  fiscal
20        years  2004  and  2005  from the General Revenue Fund for
21        hospital payments under the medical assistance program is
22        less than $4,475,000,000; or
23             (2)  the Department of Public Aid makes  changes  in
24        its   rules   that   reduce  the  hospital  inpatient  or
25        outpatient payment rates,  including  adjustment  payment
26        rates, in effect on October 1, 2003, except for hospitals
27        described  in  subsection  (b) of Section 5A-3 and except
28        for changes in outpatient payment rates  made  to  comply
29        with   the   federal  Health  Insurance  Portability  and
30        Accountability Act, so  long  as  those  changes  do  not
31        reduce  aggregate  expenditures below the amount expended
32        in State fiscal year 2003 for such services; or
33             (3)  the  payments  to  hospitals   required   under
 
                            -20-     LRB093 05499 DRJ 20203 a
 1        Section 5A-12 are changed or are not eligible for federal
 2        matching  funds  under  Title  XIX  or  XXI of the Social
 3        Security Act.
 4        (b)  The assessment imposed by  Section  5A-2  shall  not
 5    take effect or shall cease to be imposed if the assessment is
 6    determined  to  be  an  impermissible  tax amount of matching
 7    federal funds under Title XIX of the Social Security  Act  is
 8    eliminated   or  significantly  reduced  on  account  of  the
 9    assessment.  Moneys in the  Hospital  Provider  Fund  derived
10    from  assessments imposed prior thereto shall be disbursed in
11    accordance with Section 5A-8 to the extent  federal  matching
12    is  not  reduced  due  to  the  impermissibility  of  by  the
13    assessments,  and  any  remaining moneys assessments shall be
14    refunded to hospital providers in proportion to  the  amounts
15    paid by them.
16    (Source: P.A. 87-861.)

17        (305 ILCS 5/5A-12 new)
18        Sec. 5A-12.  Hospital access improvement payments.
19        (a)  To improve access to hospital services, for hospital
20    services  rendered on or after May 1, 2004, the Department of
21    Public Aid shall make payments to hospitals as set  forth  in
22    this  Section,  except  for hospitals described in subsection
23    (b) of Section 5A-3.  These  payments  shall  be  paid  on  a
24    quarterly  basis.  For State fiscal year 2004, the Department
25    shall pay the total  amounts  required  under  this  Section;
26    these amounts shall be paid on or before June 15 of the year.
27    In  subsequent State fiscal years, the total amounts required
28    under this Section shall be paid in 4 equal  installments  on
29    or  before  July  15, October 15, January 14, and April 15 of
30    the year.  Payments  under  this  Section  are  not  due  and
31    payable,  however,  until  (i) the methodologies described in
32    this Section are approved by the  federal  government  in  an
33    appropriate State Plan amendment, (ii) the assessment imposed
 
                            -21-     LRB093 05499 DRJ 20203 a
 1    under  this  Article  is  determined  to be a permissible tax
 2    under Title XIX of the Social Security  Act,  and  (iii)  the
 3    assessment is in effect.
 4        (b)  High  volume  payment. In addition to rates paid for
 5    inpatient hospital services, the  Department  of  Public  Aid
 6    shall  pay, to each Illinois hospital that provided more than
 7    20,000 Medicaid inpatient days of care  during  State  fiscal
 8    year  2001  (except for hospitals that qualify for adjustment
 9    payments  under  Section  5-5.02  for  the  12-month   period
10    beginning  on  October  1,  2002),  $190  for  each  Medicaid
11    inpatient  day  of  care  provided during that fiscal year. A
12    hospital that provided less than  30,000  Medicaid  inpatient
13    days  of care during that period, however, is not entitled to
14    receive more than $3,500,000 per year in such payments.
15        (c)  Medicaid inpatient utilization rate  adjustment.  In
16    addition  to  rates paid for inpatient hospital services, the
17    Department of Public Aid shall  pay  each  Illinois  hospital
18    (except  for  hospitals  described in Section 5A-3), for each
19    Medicaid inpatient day of care provided during  State  fiscal
20    year   2001,  an  amount  equal  to  the  product  of  $57.25
21    multiplied by the quotient of 1 divided  by  the  greater  of
22    1.6%  or  the  hospital's Medicaid inpatient utilization rate
23    (as used to determine  eligibility  for  adjustment  payments
24    under  Section  5-5.02  for  the 12-month period beginning on
25    October 1, 2002). The total payments under this subsection to
26    a hospital may not exceed $10,500,000 annually.
27        (d)  Psychiatric base rate adjustment.
28             (1)  In  addition  to  rates  paid   for   inpatient
29        psychiatric  services, the Department of Public Aid shall
30        pay each Illinois general  acute  care  hospital  with  a
31        distinct   part-psychiatric   unit,   for  each  Medicaid
32        inpatient psychiatric  day  of  care  provided  in  State
33        fiscal  year  2001,  an  amount  equal  to  $400 less the
34        hospital's   per-diem   rate   for   Medicaid   inpatient
 
                            -22-     LRB093 05499 DRJ 20203 a
 1        psychiatric services as in effect on October 1, 2003.  In
 2        no event, however, shall that amount be less than zero.
 3             (2)  For distinct part-psychiatric units of Illinois
 4        general  acute  care  hospitals, except for all hospitals
 5        excluded in Section 5A-3, whose inpatient  per-diem  rate
 6        as in effect on October 1, 2003 is greater than $400, the
 7        Department  shall  pay,  in addition to any other amounts
 8        authorized  under  this  Code,  $25  for  each   Medicaid
 9        inpatient  psychiatric  day  of  care  provided  in State
10        fiscal year 2001.
11        (e)  Supplemental tertiary care adjustment.  In  addition
12    to  rates  paid  for  inpatient  services,  the Department of
13    Public Aid shall pay to each Illinois hospital  eligible  for
14    tertiary  care  adjustment  payments  under 89 Ill. Adm. Code
15    148.296,  as  in  effect  for  State  fiscal  year  2003,   a
16    supplemental  tertiary  care  adjustment payment equal to the
17    tertiary care adjustment payment required under 89 Ill.  Adm.
18    Code 148.296, as in effect for State fiscal year 2003.
19        (f)  Medicaid  outpatient utilization rate adjustment. In
20    addition to rates paid for outpatient hospital services,  the
21    Department  of  Public  Aid  shall pay each Illinois hospital
22    (except for hospitals described in Section 5A-3),  an  amount
23    equal  to  the  product of 2.45% multiplied by the hospital's
24    Medicaid outpatient charges multiplied by the quotient  of  1
25    divided  by  the  greater  of 1.6% or the hospital's Medicaid
26    outpatient utilization rate. The total  payments  under  this
27    subsection to a hospital may not exceed $6,750,000 annually.
28        For purposes of this subsection:
29        "Medicaid  outpatient  charges"  means  the  charges  for
30    outpatient  services  provided to Medicaid patients for State
31    fiscal year 2001 as submitted by the hospital  on  the  UB-92
32    billing  form  or  under the ambulatory procedure listing and
33    adjudicated by the Department of  Public  Aid  on  or  before
34    September 12, 2003.
 
                            -23-     LRB093 05499 DRJ 20203 a
 1        "Medicaid  outpatient utilization rate" means a fraction,
 2    the numerator of which is the hospital's Medicaid  outpatient
 3    charges  and  the denominator of which is the total number of
 4    the  hospital's  charges  for  outpatient  services  for  the
 5    hospital's fiscal year ending in 2001.
 6        (g)  State outpatient service adjustment. In addition  to
 7    rates  paid  for outpatient hospital services, the Department
 8    of Public Aid shall pay  each  Illinois  hospital  an  amount
 9    equal  to  the  product of 75.5% multiplied by the hospital's
10    Medicaid outpatient services submitted to the  Department  on
11    the  UB-92 billing form for State fiscal year 2001 multiplied
12    by the hospital's outpatient access fraction.
13        For  purposes  of  this  subsection,  "outpatient  access
14    fraction" means a fraction, the numerator  of  which  is  the
15    hospital's  Medicaid  payments  for  outpatient  services for
16    ambulatory  procedure  listing  services  submitted  to   the
17    Department  on  the  UB-92 billing form for State fiscal year
18    2001, and the denominator of which is the hospital's Medicaid
19    outpatient services submitted to the Department on the  UB-92
20    billing form for State fiscal year 2001.
21        The  total  payments  under this subsection to a hospital
22    may not exceed $3,000,000 annually.
23        (h)  Rural hospital outpatient adjustment. In addition to
24    rates paid for outpatient hospital services,  the  Department
25    of  Public  Aid  shall  pay  each  Illinois rural hospital an
26    amount equal to the product of $14,500,000 multiplied by  the
27    rural hospital outpatient adjustment fraction.
28        For   purposes   of   this  subsection,  "rural  hospital
29    outpatient  adjustment  fraction"  means  a   fraction,   the
30    numerator  of  which  is  the  hospital's Medicaid visits for
31    outpatient services for ambulatory procedure listing services
32    submitted to the Department on the  UB-92  billing  form  for
33    State  fiscal  year 2001, and the denominator of which is the
34    total Medicaid visits for outpatient services for  ambulatory
 
                            -24-     LRB093 05499 DRJ 20203 a
 1    procedure  listing  services for all Illinois rural hospitals
 2    submitted to the Department on the  UB-92  billing  form  for
 3    State fiscal year 2001.
 4        For purposes of this subsection, "rural hospital" has the
 5    same  meaning as in 89 Ill. Adm. Code 148.25, as in effect on
 6    September 30, 2003.
 7        (i)  Merged/closed hospital adjustment. If  any  hospital
 8    files  a  combined Medicaid cost report with another hospital
 9    after January 1, 2001,  and  if  that  hospital  subsequently
10    closes,  then except for the payments described in subsection
11    (e), all payments described in  the  various  subsections  of
12    this  Section  shall,  before  the  application of the annual
13    limitation amount  specified  in  each  such  subsection,  be
14    multiplied  by  a  fraction,  the  numerator  of which is the
15    number of occupied bed days attributable to the open hospital
16    and the denominator of which is the  sum  of  the  number  of
17    occupied  bed  days  of  each  open  hospital and each closed
18    hospital. For purposes  of  this  subsection,  "occupied  bed
19    days"  has  the  same  meaning  as  the  term  is  defined in
20    subsection (a) of Section 5A-2.
21        (j)  For purposes of this Section,  the  terms  "Medicaid
22    days",  "Medicaid  charges",  and  "Medicaid services" do not
23    include any days, charges, or services for which Medicare was
24    liable for payment.
25        (k)  As  provided  in  Section  5A-14,  this  Section  is
26    repealed on July 1, 2005.

27        (305 ILCS 5/5A-13 new)
28        Sec.  5A-13.  Emergency  rulemaking.  The  Department  of
29    Public Aid  may  adopt  rules  necessary  to  implement  this
30    amendatory  Act  of the 93rd General Assembly through the use
31    of emergency rulemaking in accordance with  Section  5-45  of
32    the  Illinois  Administrative  Procedure Act. For purposes of
33    that Act, the General Assembly finds  that  the  adoption  of
 
                            -25-     LRB093 05499 DRJ 20203 a
 1    rules  to  implement  this amendatory Act of the 93rd General
 2    Assembly is deemed an emergency and necessary for the  public
 3    interest, safety, and welfare.

 4        (305 ILCS 5/5A-14 new)
 5        Sec. 5A-14. Repeal of assessments and disbursements.
 6        (a)  Section 5A-2 is repealed on July 1, 2005.
 7        (b)  Section 5A-12 is repealed on July 1, 2005.

 8        (305 ILCS 5/14-1) (from Ch. 23, par. 14-1)
 9        Sec. 14-1.  Definitions.  As used in this Article, unless
10    the context requires otherwise:
11        "Fund" means the Hospital Services Trust Fund.
12        "Estimated  Rate  Year  Utilization" means the hospital's
13    projected utilization for the State fiscal year in which  the
14    fee is due (for example, fiscal year 1992 for fees imposed in
15    State  fiscal year 1992, fiscal year 1993 for fees imposed in
16    State fiscal year 1993, and so forth).
17        "Gross Receipts" means all payments for medical  services
18    delivered  under  Title  XIX  of  the Social Security Act and
19    Articles V, VI, and VII of this Code and shall mean  any  and
20    all  payments  made by the Illinois Department, or a Division
21    thereof, to a Medical Assistance Program  provider  certified
22    to  participate  in  the Illinois Medical Assistance Program,
23    for services rendered eligible for Medical  Assistance  under
24    Articles  V,  VI  and VII of this Code, State regulations and
25    the federal Medicaid Program as defined in Title XIX  of  the
26    Social Security Act and federal regulations.
27        "Hospital"  means  any  institution,  place, building, or
28    agency, public or private, whether organized  for  profit  or
29    not-for-profit,  which is located in the State and is subject
30    to licensure by the  Illinois  Department  of  Public  Health
31    under  the  Hospital Licensing Act or any institution, place,
32    building, or agency, public or private, whether organized for
 
                            -26-     LRB093 05499 DRJ 20203 a
 1    profit  or  not-for-profit,  which   meets   all   comparable
 2    conditions  and requirements of the Hospital Licensing Act in
 3    effect for the state in which it is located, and is  required
 4    to submit cost reports to the Illinois Department under Title
 5    89,  Part 148, of the Illinois Administrative Code, but shall
 6    not include the University of Illinois Hospital as defined in
 7    the University of Illinois Hospital Act or a county  hospital
 8    in a county of over 3 million population.
 9        "Total  Medicaid Base Year Spending" means the hospital's
10    State fiscal year 1991 weighted  average  payment  rates,  as
11    defined  by  rule, excluding payments under Section 5-5.02 of
12    this Code, reduced by 5% and  multiplied  by  the  hospital's
13    estimated rate year utilization.
14    (Source: P.A. 87-13.)

15        (305 ILCS 5/Art. V-D rep.)
16        (305 ILCS 5/14-2 rep.)
17        (305 ILCS 5/14-3 rep.)
18        (305 ILCS 5/14-4 rep.)
19        (305 ILCS 5/14-5 rep.)
20        (305 ILCS 5/14-6 rep.)
21        (305 ILCS 5/14-7 rep.)
22        (305 ILCS 5/14-9 rep.)
23        (305 ILCS 5/14-10 rep.)
24        Section  11.  The  Illinois Public Aid Code is amended by
25    repealing Article V-D and Sections 14-2,  14-3,  14-4,  14-5,
26    14-6, 14-7, 14-9, and 14-10.

27        Section  99.  Effective date.  This Act takes effect upon
28    becoming law.".