State of Illinois
90th General Assembly
Legislation

   [ Search ]   [ Legislation ]   [ Bill Summary ]
[ Home ]   [ Back ]   [ Bottom ]


[ Introduced ][ Engrossed ][ Enrolled ]
[ House Amendment 001 ]

90_SB1101ccr001

                                           LRB9003523EGfgccr4
 1                        90TH GENERAL ASSEMBLY
 2                     CONFERENCE COMMITTEE REPORT
 3                         ON SENATE BILL 1101
 4    -------------------------------------------------------------
 5    -------------------------------------------------------------
 6        To the President of the Senate and  the  Speaker  of  the
 7    House of Representatives:
 8        We,  the  conference  committee appointed to consider the
 9    differences between the houses in relation to House Amendment
10    No. 1 to Senate Bill 1101, recommend the following:
11        (1)  that the House recede from House  Amendment  No.  1;
12    and
13        (2)  that  Senate  Bill  1101 be amended by replacing the
14    title with the following:
15        "AN ACT in relation to implementation of the State fiscal
16    year 1998 budget, amending named Acts."; and
17    by replacing everything after the enacting  clause  with  the
18    following:
19        "Section 5.  The Illinois Administrative Procedure Act is
20    amended by changing Sections 1-5 and 5-45 as follows:
21        (5 ILCS 100/1-5) (from Ch. 127, par. 1001-5)
22        Sec. 1-5.  Applicability.
23        (a)  This  Act applies to every agency as defined in this
24    Act.  Beginning January 1, 1978, in case of conflict  between
25    the provisions of this Act and the Act creating or conferring
26    power  on an agency, this Act shall control.  If, however, an
27    agency (or its predecessor in the case of an agency that  has
28    been  consolidated or reorganized) has existing procedures on
29    July 1, 1977, specifically for contested cases or  licensing,
30    those existing provisions control, except that this exception
31    respecting  contested  cases  and licensing does not apply if
32    the Act creating or conferring power on the agency adopts  by
                            -2-            LRB9003523EGfgccr4
 1    express  reference the provisions of this Act.  Where the Act
 2    creating  or  conferring  power  on  an  agency   establishes
 3    administrative  procedures  not  covered  by  this Act, those
 4    procedures shall remain in effect.
 5        (b)  The provisions of this  Act  do  not  apply  to  (i)
 6    preliminary  hearings,  investigations, or practices where no
 7    final determinations affecting State funding are made by  the
 8    State  Board  of  Education, (ii) legal opinions issued under
 9    Section 2-3.7 of the School Code, (iii) as to State  colleges
10    and    universities,   their   disciplinary   and   grievance
11    proceedings, academic  irregularity  and  capricious  grading
12    proceedings, and admission standards and procedures, and (iv)
13    the   class   specifications  for  positions  and  individual
14    position  descriptions  prepared  and  maintained  under  the
15    Personnel Code.  Those class specifications  shall,  however,
16    be made reasonably available to the public for inspection and
17    copying.  The provisions of this Act do not apply to hearings
18    under Section 20 of  the  Uniform  Disposition  of  Unclaimed
19    Property Act.
20        (c)  Section  5-35 of this Act relating to procedures for
21    rulemaking does not apply to the following:
22             (1)  Rules adopted by the  Pollution  Control  Board
23        that, in accordance with Section 7.2 of the Environmental
24        Protection  Act,  are  identical  in substance to federal
25        regulations   or   amendments   to   those    regulations
26        implementing  the  following:  Sections 3001, 3002, 3003,
27        3004, 3005, and 9003 of the  Solid  Waste  Disposal  Act;
28        Section  105 of the Comprehensive Environmental Response,
29        Compensation, and Liability Act of 1980; Sections 307(b),
30        307(c), 307(d), 402(b)(8), and 402(b)(9) of  the  Federal
31        Water   Pollution  Control  Act;  and  Sections  1412(b),
32        1414(c), 1417(a), 1421, and 1445(a) of the Safe  Drinking
33        Water Act.
34             (2)  Rules  adopted  by  the Pollution Control Board
35        that establish or amend standards  for  the  emission  of
                            -3-            LRB9003523EGfgccr4
 1        hydrocarbons  and  carbon  monoxide from gasoline powered
 2        motor  vehicles  subject  to  inspection  under   Section
 3        13A-105 of the Vehicle Emissions Inspection Law and rules
 4        adopted  under  Section  13B-20  of the Vehicle Emissions
 5        Inspection Law of 1995.
 6             (3)  Procedural  rules  adopted  by  the   Pollution
 7        Control  Board  governing  requests  for exceptions under
 8        Section 14.2 of the Environmental Protection Act.
 9             (4)  The Pollution Control Board's  grant,  pursuant
10        to an adjudicatory determination, of an adjusted standard
11        for persons who can justify an adjustment consistent with
12        subsection   (a)  of  Section  27  of  the  Environmental
13        Protection Act.
14             (5)  Rules adopted by the  Pollution  Control  Board
15        that  are  identical  in  substance  to  the  regulations
16        adopted  by  the  Office  of the State Fire Marshal under
17        clause (ii) of paragraph (b) of subsection (3) of Section
18        2 of the Gasoline Storage Act.
19        (d)  Pay  rates  established  under  Section  8a  of  the
20    Personnel Code shall be amended or repealed pursuant  to  the
21    process  set  forth  in  Section 5-50 within 30 days after it
22    becomes necessary to do so due  to  a  conflict  between  the
23    rates  and  the  terms  of  a collective bargaining agreement
24    covering the compensation of  an  employee  subject  to  that
25    Code.
26    (Source: P.A. 87-823; 88-533.)
27        (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
28        Sec. 5-45.  Emergency rulemaking.
29        (a)  "Emergency"  means  the  existence  of any situation
30    that any agency finds reasonably constitutes a threat to  the
31    public interest, safety, or welfare.
32        (b)  If  any  agency  finds that an emergency exists that
33    requires adoption of a rule upon fewer days than is  required
34    by  Section  5-40  and states in writing its reasons for that
                            -4-            LRB9003523EGfgccr4
 1    finding, the agency may adopt an emergency rule without prior
 2    notice  or  hearing  upon  filing  a  notice   of   emergency
 3    rulemaking  with  the  Secretary of State under Section 5-70.
 4    The notice shall include the text of the emergency  rule  and
 5    shall  be published in the Illinois Register.  Consent orders
 6    or other court orders adopting settlements negotiated  by  an
 7    agency  may  be  adopted  under  this  Section.   Subject  to
 8    applicable   constitutional   or   statutory  provisions,  an
 9    emergency rule  becomes  effective  immediately  upon  filing
10    under  Section  5-65  or  at a stated date less than 10  days
11    thereafter.  The agency's finding  and  a  statement  of  the
12    specific  reasons  for  the  finding  shall be filed with the
13    rule.  The  agency  shall  take  reasonable  and  appropriate
14    measures to make emergency rules known to the persons who may
15    be affected by them.
16        (c)  An  emergency  rule may be effective for a period of
17    not longer than 150 days, but the agency's authority to adopt
18    an identical rule under Section 5-40 is  not  precluded.   No
19    emergency  rule may be adopted more than once in any 24 month
20    period,  except  that  this  limitation  on  the  number   of
21    emergency rules that may be adopted in a 24 month period does
22    not  apply  to (i) emergency rules that make additions to and
23    deletions from the Drug Manual under Section  5-5.16  of  the
24    Illinois  Public Aid Code or the generic drug formulary under
25    Section 3.14 of the Illinois Food, Drug and Cosmetic  Act  or
26    (ii)  emergency  rules adopted by the Pollution Control Board
27    before July 1, 1997 to implement portions  of  the  Livestock
28    Management  Facilities  Act.   Two  or  more  emergency rules
29    having substantially the same purpose  and  effect  shall  be
30    deemed to be a single rule for purposes of this Section.
31        (d)  In  order  to provide for the expeditious and timely
32    implementation  of  the  State's  fiscal  year  1998  budget,
33    emergency rules to implement any provision of this amendatory
34    Act of 1997 or any other budget initiative  for  fiscal  year
35    1998  may  be  adopted in accordance with this Section by the
                            -5-            LRB9003523EGfgccr4
 1    agency  charged  with   administering   that   provision   or
 2    initiative,  except  that  the  24-month  limitation  on  the
 3    adoption  of  emergency  rules and the provisions of Sections
 4    5-115 and 5-125 do not apply  to  rules  adopted  under  this
 5    subsection  (d).   The adoption of emergency rules authorized
 6    by this subsection (d) shall be deemed to  be  necessary  for
 7    the public interest, safety, and welfare.
 8    (Source: P.A. 89-714, eff. 2-21-97.)
 9        Section  10.  The Narcotic Control Division Abolition Act
10    is amended by changing Section 7 as follows:
11        (20 ILCS 2620/7) (from Ch. 127, par. 55j)
12        Sec. 7.  Expenditures; evidence; forfeited property.
13        (a)  The Director and the inspectors  appointed  by  him,
14    when  authorized by the Director, may expend such sums as the
15    Director  deems  necessary  in  the  purchase  of  controlled
16    substances and cannabis for evidence and in the employment of
17    persons to obtain evidence.
18        Such sums to be expended shall be advanced to the officer
19    who is  to  make  such  purchase  or  employment  from  funds
20    appropriated  or made available by law for the support or use
21    of  the  Department  on  vouchers  therefor  signed  by   the
22    Director.  The  Director  and such officers are authorized to
23    maintain one or more commercial checking  accounts  with  any
24    State  banking corporation or corporations organized under or
25    subject to the Illinois  Banking  Act  for  the  deposit  and
26    withdrawal  of moneys to be used for the purchase of evidence
27    and  for  the  employment  of  persons  to  obtain  evidence;
28    provided that no check may be written on nor  any  withdrawal
29    made  from  any such account except on the written signatures
30    of 2 persons designated by the Director to write such  checks
31    and make such withdrawals.
32        (b)  The  Director  is authorized to maintain one or more
33    commercial bank accounts with any State  banking  corporation
                            -6-            LRB9003523EGfgccr4
 1    or  corporations  organized  under or subject to the Illinois
 2    Banking Act, as now or hereafter amended, for the deposit  or
 3    withdrawal   of  (i)  moneys  forfeited  to  the  Department,
 4    including the proceeds of the sale of forfeited property,  as
 5    provided  in  Section  2  of the State Officers and Employees
 6    Money Disposition Act, as now or hereafter  amended,  pending
 7    disbursement  to  participating  agencies  and deposit of the
 8    Department's share as provided in subsection  (c),  and  (ii)
 9    all  moneys being held as evidence by the Department, pending
10    final court  disposition;  provided  that  no  check  may  be
11    written  on  or  any  withdrawal  made  from any such account
12    except on the written signatures of 2 persons  designated  by
13    the Director to write such checks and make such withdrawals.
14        (c)  All  moneys received by the Illinois State Police as
15    their share of forfeited funds (including the proceeds of the
16    sale of forfeited property) received  pursuant  to  the  Drug
17    Asset Forfeiture Procedure Act, the Cannabis Control Act, the
18    Illinois   Controlled   Substances   Act,  the  Environmental
19    Protection Act, or any other Illinois law shall be  deposited
20    into the State Asset Forfeiture Fund, which is hereby created
21    as an interest-bearing special fund in the State treasury.
22        All moneys received by the Illinois State Police as their
23    share  of forfeited funds (including the proceeds of the sale
24    of forfeited property) received pursuant to federal equitable
25    sharing transfers shall be deposited into the  Federal  Asset
26    Forfeiture    Fund,   which   is   hereby   created   as   an
27    interest-bearing special fund in the State treasury.
28        The moneys deposited into the State Asset Forfeiture Fund
29    and the Federal Asset Forfeiture Fund shall  be  appropriated
30    to  the  Department  of  State  Police and may be used by the
31    Illinois State Police in accordance with law.
32    (Source: P.A. 85-1291.)
33        Section 15.  The State Finance Act is amended  by  adding
34    Sections 5.449, 5.450, 5.451, 5.452, and 11.5 as follows:
                            -7-            LRB9003523EGfgccr4
 1        (30 ILCS 105/5.449 new)
 2        Sec.  5.449.   The  Department  of  Corrections Education
 3    Fund.
 4        (30 ILCS 105/5.450 new)
 5        Sec. 5.450.  The Department of Corrections  Reimbursement
 6    Fund.
 7        (30 ILCS 105/5.451 new)
 8        Sec. 5.451.  The State Asset Forfeiture Fund.
 9        (30 ILCS 105/5.452 new)
10        Sec. 5.452.  The Federal Asset Forfeiture Fund.
11        (30 ILCS 105/11.5 new)
12        Sec.  11.5.   Agencies  with procurement authority.  If a
13    State agency with authority over a procurement or category of
14    procurements  requires  its  written  signature  or   written
15    approval  on  contracts subject to that authority, the agency
16    shall  notify  the  State  Comptroller  in  writing  of  this
17    requirement.    After  receiving  that  notice,   the   State
18    Comptroller shall neither file nor approve or issue a warrant
19    under  an  affected  contract,  whether  written  or oral and
20    regardless of the dollar amount involved,  unless  and  until
21    the  contract  has  been signed or approved in writing by the
22    agency with procurement authority.
23        (30 ILCS 105/6z-13 rep.)
24        Section  16.   The  State  Finance  Act  is  amended   by
25    repealing Section 6z-13.
26        Section  20.   The  Illinois  Pension  Code is amended by
27    adding Section 15-158.3 as follows:
28        (40 ILCS 5/15-158.3 new)
                            -8-            LRB9003523EGfgccr4
 1        Sec. 15-158.3.  Reports  on  cost  reduction;  effect  on
 2    retirement at any age with 30 years of service.
 3        (a)  On  or  before  November  15,  2001 and on or before
 4    November 15th of each year thereafter, the Board  shall  have
 5    the  System's  actuary  prepare a report showing, on a fiscal
 6    year by fiscal year basis, the actual rate  of  participation
 7    in  the  optional  retirement  program  authorized by Section
 8    15-158.2, (i) by employees of  the  System's  covered  higher
 9    educational  institutions  who  were  hired  on  or after the
10    implementation date of the optional  retirement  program  and
11    (ii) by other System participants.
12        The  actuary's  report  must  also quantify the extent to
13    which employee optional  retirement  plan  participation  has
14    reduced  the  State's  required  contributions to the System,
15    expressed both in dollars and  as  a  percentage  of  covered
16    payroll, in relation to what the State's contributions to the
17    System would have been (1) if the optional retirement program
18    had  not been implemented, and (2) if 45% of employees of the
19    System's covered higher  educational  institutions  who  were
20    hired  on  or  after  the implementation date of the optional
21    retirement program had elected to participate in the optional
22    retirement program and 10% of other System  participants  had
23    transferred  to the optional retirement program following its
24    implementation.
25        (b)  On or before November 15th of 2001 and on or  before
26    November  15th of each year thereafter, the Illinois Board of
27    Higher Education, in  conjunction  with  the  Bureau  of  the
28    Budget,  shall  prepare a report showing, on a fiscal year by
29    fiscal year basis, the amount by which the  costs  associated
30    with  compensable sick leave have been reduced as a result of
31    the termination of compensable  sick  leave  accrual  on  and
32    after  January  1,  1998  by  employees  of  higher education
33    institutions who are participants in the System.
34        (c)  On or before November 15 of 2001 and  on  or  before
35    November  15th  of  each  year  thereafter, the Department of
                            -9-            LRB9003523EGfgccr4
 1    Central Management Services shall prepare a  report  showing,
 2    on  a  fiscal  year by fiscal year basis, the amount by which
 3    the State's cost for  health  insurance  coverage  under  the
 4    State  Employees  Group Insurance Act of 1971 for retirees of
 5    the State's universities and their survivors has declined  as
 6    a result of requiring some of those retirees and survivors to
 7    contribute  to  the  cost  of  their  basic health insurance.
 8    These year-by-year reductions in cost must be quantified both
 9    in dollars and as a level percentage of  payroll  covered  by
10    the System.
11        (d)  The reports required under subsections (a), (b), and
12    (c)  shall  be  disseminated  to  the Board, the Pension Laws
13    Commission, the Illinois Economic and Fiscal Commission,  the
14    Illinois Board of Higher Education, and the Governor.
15        (e)  The reports required under subsections (a), (b), and
16    (c)   shall  be  taken  into  account  by  the  Pension  Laws
17    Commission  in  making  any  recommendation  to   extend   by
18    legislation  beyond  December  31,  2002  the  provision that
19    allows a System participant to retire at any age with  30  or
20    more  years  of  service as authorized in Section 15-135.  If
21    that provision is extended beyond December 31, 2002,  and  if
22    the  most  recent  report under subsection (a) indicates that
23    actual State contributions  to  the  System  for  the  period
24    during  which  the  optional  retirement  program has been in
25    operation have exceeded  the  projected  State  contributions
26    under  the  assumptions in clause (2) of subsection (a), then
27    any extension of the provision beyond December 31, 2002  must
28    require that the System's higher educational institutions and
29    agencies  cover  any  funding  deficiency  through  an annual
30    payment to the System out of appropriate resources  of  their
31    own.
32        Section  25.   The  School  Code  is  amended by changing
33    Sections 13-44.4 and 18-8 as follows:
                            -10-           LRB9003523EGfgccr4
 1        (105 ILCS 5/13-44.4) (from Ch. 122, par. 13-44.4)
 2        Sec. 13-44.4.  Department of Corrections Education  Fund;
 3    budget.    An  Educational  Fund shall be established wherein
 4    All moneys received from the Common School Fund, federal  aid
 5    and  grants, vocational and educational funds and grants, and
 6    gifts and grants by individuals, foundations and corporations
 7    for  educational  purposes  shall  be  deposited   into   the
 8    Department  of  Corrections  Education  Fund, which is hereby
 9    created as  a  special  fund  in  the  State  Treasury.   The
10    Department of Corrections Education Fund The Educational Fund
11    shall  be  kept separate from general funds and shall be held
12    by the State Treasurer as ex-officio custodian in a  separate
13    fund, and shall be used, subject to appropriation, to pay the
14    expense  of the schools and school district of the Department
15    of Corrections together  with  and  supplemental  to  regular
16    appropriations  to  the  Department for educational purposes,
17    including, but not limited to, the cost of teacher  salaries,
18    supplies   and   materials,   building   upkeep   and  costs,
19    transportation,    scholarships,    non-academic    salaries,
20    equipment and other school costs.
21        Beginning in 1972,  the  Board  of  Education  shall,  by
22    November  15, adopt an annual Educational Fund budget for the
23    use of education moneys for the next  school  year  which  it
24    deems   necessary   to  defray  all  necessary  expenses  and
25    liabilities of the district to be assumed by the Fund, and in
26    such annual budget shall specify the objects and purposes  of
27    each  item  and the amount needed for each object or purpose.
28    The budget shall contain a statement of cash on hand  at  the
29    beginning  of  the  fiscal  year,  an  estimate  of  the cash
30    expected to be received during  such  fiscal  year  from  all
31    sources, an estimate of the expenditure contemplated for such
32    fiscal  year,  and a statement of the estimated cash expected
33    to be on hand at the end of such year.  Prior to the adoption
34    of the annual educational budget, this the  Educational  Fund
35    budget  shall  be  submitted to the Department of Corrections
                            -11-           LRB9003523EGfgccr4
 1    and the State Board of Education for incorporation.
 2    (Source: P.A. 86-1028.)
 3        (105 ILCS 5/18-8) (from Ch. 122, par. 18-8)
 4        Sec.  18-8.  Basis  for   apportionment   to   districts,
 5    laboratory schools and alternative schools.
 6        A.  The amounts to be apportioned shall be determined for
 7    each  educational  service  region  by  school  districts, as
 8    follows:
 9        1.  General Provisions.
10        (a)  In the computation of the amounts to be apportioned,
11    the average daily  attendance  of  all  pupils  in  grades  9
12    through  12  shall  be multiplied by 1.25.  The average daily
13    attendance  of  all  pupils  in  grades  7  and  8  shall  be
14    multiplied by 1.05.
15        (b)  The  actual  number  of  pupils  in  average   daily
16    attendance shall be computed in a one-teacher school district
17    by  dividing  the total aggregate days of pupil attendance by
18    the actual number of days school is in session but  not  more
19    than  30  such  pupils  shall  be accredited for such type of
20    district; and in districts of  2  or  more  teachers,  or  in
21    districts  where  records  of  attendance are kept by session
22    teachers, by taking the sum of the respective averages of the
23    units composing the group.
24        (c)  Pupils in average daily attendance shall be computed
25    upon the average of the best 3 months of pupils attendance of
26    the current school year except  as  district  claims  may  be
27    later  amended  as  provided  hereinafter  in  this  Section.
28    However,   for   any   school   district  maintaining  grades
29    kindergarten through 12, the "average daily attendance" shall
30    be computed on the average of the best  3  months  of  pupils
31    attendance of the current year in grades kindergarten through
32    8,  added  together  with the average of the best 3 months of
33    pupils attendance of the current year in grades 9 through 12,
34    except as district claims may be later amended as provided in
                            -12-           LRB9003523EGfgccr4
 1    this Section.  Days of attendance shall be  kept  by  regular
 2    calendar  months,  except  any  days  of attendance in August
 3    shall be added to the month of  September  and  any  days  of
 4    attendance  in  June  shall  be  added  to  the month of May.
 5    Except  as  otherwise  provided  in  this  Section,  days  of
 6    attendance by pupils shall be counted only  for  sessions  of
 7    not  less  than  5  clock  hours of school work per day under
 8    direct supervision of: (i)  teachers,  or  (ii)  non-teaching
 9    personnel   or   volunteer   personnel   when   engaging   in
10    non-teaching   duties  and  supervising  in  those  instances
11    specified in subsection (a) of Section 10-22.34 and paragraph
12    10 of Section 34-18, with pupils of legal school age  and  in
13    kindergarten and grades 1 through 12.
14        (d)  Pupils  regularly  enrolled  in  a public school for
15    only a part of the school day may be counted on the basis  of
16    1/6  day for every class hour of instruction of 40 minutes or
17    more attended pursuant to such enrollment.
18        (e)  Days of attendance may be less than 5 clock hours on
19    the opening and closing of the  school  term,  and  upon  the
20    first  day  of pupil attendance, if preceded by a day or days
21    utilized as an institute or teachers' workshop.
22        (f)  A session of 4 or more clock hours may be counted as
23    a day  of  attendance  upon  certification  by  the  regional
24    superintendent,  and  approved by the State Superintendent of
25    Education to the extent that the district has been forced  to
26    use daily multiple sessions.
27        (g)  A session of 3 or more clock hours may be counted as
28    a  day of attendance (1) when the remainder of the school day
29    or at least 2 hours in the evening of that  day  is  utilized
30    for  an  in-service  training  program  for teachers, up to a
31    maximum of 5 days per school year of which  a  maximum  of  4
32    days   of   such  5  days  may  be  used  for  parent-teacher
33    conferences,  provided  a  district  conducts  an  in-service
34    training program for teachers which has been approved by  the
35    State  Superintendent  of  Education;  or,  in lieu of 4 such
                            -13-           LRB9003523EGfgccr4
 1    days, 2 full days may be used, in which event each  such  day
 2    may  be  counted as a day of attendance; and (2) when days in
 3    addition to those provided in item (1)  are  scheduled  by  a
 4    school  pursuant to its school improvement plan adopted under
 5    Article 34 or its revised or amended school improvement  plan
 6    adopted under Article 2, provided that (i) such sessions of 3
 7    or  more  clock  hours  are  scheduled  to  occur  at regular
 8    intervals, (ii) the remainder of the  school  days  in  which
 9    such  sessions  occur  are  utilized  for in-service training
10    programs or other staff development activities for  teachers,
11    and (iii) a sufficient number of minutes of school work under
12    the  direct  supervision  of teachers are added to the school
13    days between such regularly scheduled sessions to  accumulate
14    not less than the number of minutes by which such sessions of
15    3  or  more clock hours fall short of 5 clock hours. Any full
16    days used for the purposes of this  paragraph  shall  not  be
17    considered  for  computing  average  daily  attendance.  Days
18    scheduled for in-service training programs, staff development
19    activities, or parent-teacher conferences  may  be  scheduled
20    separately   for   different   grade   levels  and  different
21    attendance centers of the district.
22        (h)  A session of not less than one clock  hour  teaching
23    of  hospitalized  or homebound pupils on-site or by telephone
24    to the classroom may be counted as  1/2  day  of  attendance,
25    however  these  pupils  must receive 4 or more clock hours of
26    instruction to be counted for a full day of attendance.
27        (i)  A session of at least 4 clock hours may  be  counted
28    as  a day of attendance for first grade pupils, and pupils in
29    full day kindergartens, and a session of 2 or more hours  may
30    be   counted   as   1/2   day  of  attendance  by  pupils  in
31    kindergartens which provide only 1/2 day of attendance.
32        (j)  For children with disabilities who are below the age
33    of 6 years and who cannot attend  two  or  more  clock  hours
34    because  of  their disability or immaturity, a session of not
35    less than one clock  hour  may  be  counted  as  1/2  day  of
                            -14-           LRB9003523EGfgccr4
 1    attendance; however for such children whose educational needs
 2    so  require a session of 4 or more clock hours may be counted
 3    as a full day of attendance.
 4        (k)  A recognized kindergarten which  provides  for  only
 5    1/2  day of attendance by each pupil shall not have more than
 6    1/2 day  of  attendance  counted  in  any  1  day.   However,
 7    kindergartens  may  count  2  1/2 days of attendance in any 5
 8    consecutive school  days.   Where  a  pupil  attends  such  a
 9    kindergarten  for  2  half  days  on any one school day, such
10    pupil shall have the following  day  as  a  day  absent  from
11    school,  unless  the  school  district  obtains permission in
12    writing  from  the   State   Superintendent   of   Education.
13    Attendance  at  kindergartens which provide for a full day of
14    attendance by  each  pupil  shall  be  counted  the  same  as
15    attendance  by  first  grade  pupils.  Only the first year of
16    attendance in one kindergarten shall  be  counted  except  in
17    case  of children who entered the kindergarten in their fifth
18    year whose educational development requires a second year  of
19    kindergarten as determined under the rules and regulations of
20    the State Board of Education.
21        (l)  Days  of  attendance  by  tuition  pupils  shall  be
22    accredited  only  to  the districts that pay the tuition to a
23    recognized school.
24        (m)  The greater  of  the  immediately  preceding  year's
25    weighted  average  daily  attendance  or  the  average of the
26    weighted  average  daily  attendance   of   the   immediately
27    preceding year and the previous 2 years shall be used.
28        For any school year beginning July 1, 1986 or thereafter,
29    if  the  weighted  average  daily attendance in either grades
30    kindergarten through 8 or grades 9 through 12 of  a  district
31    as  computed  for  the  first  calendar  month of the current
32    school year exceeds by more than 5%, but  not  less  than  25
33    pupils,  the district's weighted average daily attendance for
34    the first calendar month of the  immediately  preceding  year
35    in,  respectively,  grades kindergarten through 8 or grades 9
                            -15-           LRB9003523EGfgccr4
 1    through 12, a supplementary payment  shall  be  made  to  the
 2    district  equal  to  the  difference in the amount of aid the
 3    district would be paid under this Section using the  weighted
 4    average  daily attendance in the district as computed for the
 5    first calendar month of  the  current  school  year  and  the
 6    amount  of  aid the district would be paid using the weighted
 7    average daily  attendance  in  the  district  for  the  first
 8    calendar  month  of  the  immediately  preceding  year.  Such
 9    supplementary State aid payment shall be paid to the district
10    as provided  in  Section  18-8.4  and  shall  be  treated  as
11    separate  from  all  other  payments  made  pursuant  to this
12    Section 18-8.
13        (n)  The number  of  low  income  eligible  pupils  in  a
14    district  shall result in an increase in the weighted average
15    daily attendance calculated as follows:  The  number  of  low
16    income pupils shall increase the weighted ADA by .53 for each
17    student  adjusted  by  dividing  the  percent  of  low income
18    eligible pupils in the district by the ratio of eligible  low
19    income  pupils  in  the  State to the best 3 months' weighted
20    average daily attendance in the State.  In no  case  may  the
21    adjustment under this paragraph result in a greater weighting
22    than  .625  for each eligible low income student.  The number
23    of low income eligible pupils in  a  district  shall  be  the
24    low-income  eligible  count  from the most recently available
25    federal census and  the  weighted  average  daily  attendance
26    shall  be  calculated in accordance with the other provisions
27    of this paragraph.
28        (o)  Any school district which fails for any given school
29    year to maintain school as required by law, or to maintain  a
30    recognized  school  is  not  eligible to file for such school
31    year any claim upon the  common  school  fund.   In  case  of
32    nonrecognition  of one or more attendance centers in a school
33    district otherwise operating recognized schools, the claim of
34    the district shall be reduced in  the  proportion  which  the
35    average  daily attendance in the attendance center or centers
                            -16-           LRB9003523EGfgccr4
 1    bear to the average daily attendance in the school  district.
 2    A "recognized school" means any public school which meets the
 3    standards  as  established for recognition by the State Board
 4    of Education.  A school district  or  attendance  center  not
 5    having  recognition  status  at  the  end of a school term is
 6    entitled to receive State aid payments due upon a legal claim
 7    which was filed while it was recognized.
 8        (p)  School district claims filed under this Section  are
 9    subject  to  Sections 18-9, 18-10 and 18-12, except as herein
10    otherwise provided.
11        (q)  The State Board of Education shall secure  from  the
12    Department  of  Revenue the value as equalized or assessed by
13    the Department of Revenue of all taxable  property  of  every
14    school district together with the applicable tax rate used in
15    extending taxes for the funds of the district as of September
16    30 of the previous year.  The Department of Revenue shall add
17    to  the  equalized  assessed value of all taxable property of
18    each school district situated entirely or partially within  a
19    county  with 2,000,000 or more inhabitants an amount equal to
20    the total amount by which the  homestead  exemptions  allowed
21    under Sections 15-170 and 15-175 of the Property Tax Code for
22    real  property  situated  in that school district exceeds the
23    total amount that would have  been  allowed  in  that  school
24    district  as homestead exemptions under those Sections if the
25    maximum reduction under Section 15-170 of  the  Property  Tax
26    Code  was  $2,000  and  the  maximum  reduction under Section
27    15-175 of the Property Tax Code was $3,500.  The county clerk
28    of any  county  with  2,000,000  or  more  inhabitants  shall
29    annually  calculate  and  certify  to the Department for each
30    school district all homestead exemption amounts  required  by
31    this amendatory Act of 1992.  In a new district which has not
32    had  any  tax  rates yet determined for extension of taxes, a
33    leveled uniform rate shall be computed from the latest amount
34    of the fund taxes extended on the several areas  within  such
35    new district.
                            -17-           LRB9003523EGfgccr4
 1        (r)  If  a  school  district  operates a full year school
 2    under Section 10-19.1, the general state aid  to  the  school
 3    district  shall be determined by the State Board of Education
 4    in accordance with this Section as near as may be applicable.
 5        2.  New  or  recomputed  claim.  The  general  State  aid
 6    entitlement for a newly created school district or a district
 7    which has annexed an entire school district shall be computed
 8    using  attendance,  compensatory  pupil   counts,   equalized
 9    assessed  valuation,  and tax rate data which would have been
10    used had the district been in existence for 3 years.  General
11    State  aid  entitlements  shall  not  be recomputed except as
12    permitted herein.
13        3.  Impaction.   Impaction  payments  shall  be  made  as
14    provided for in Section 18-4.2.
15        4.  Summer school.  Summer school payments shall be  made
16    as provided in Section 18-4.3.
17        5.  Computation  of  State aid.  The State grant shall be
18    determined as follows:
19        (a)  The State shall guarantee the amount of money that a
20    district's operating tax rate as limited in other Sections of
21    this Act would produce if every district  maintaining  grades
22    kindergarten  through  12 had an equalized assessed valuation
23    equal to $74,791  per  weighted  ADA  pupil;  every  district
24    maintaining  grades  kindergarten  through 8 had an equalized
25    assessed valuation of $108,644 per weighted  ADA  pupil;  and
26    every  district  maintaining  grades  9  through  12  had  an
27    equalized  assessed  valuation  of  $187,657 per weighted ADA
28    pupil.  The  State  Board  of  Education  shall  adjust   the
29    equalized   assessed   valuation   amounts   stated  in  this
30    paragraph, if necessary, to conform  to  the  amount  of  the
31    appropriation approved for any fiscal year.
32        (b)  The  operating  tax rate to be used shall consist of
33    all district taxes extended for all purposes except community
34    college educational purposes for the payment of tuition under
35    Section 6-1 of the Public Community  College  Act,  Bond  and
                            -18-           LRB9003523EGfgccr4
 1    Interest,   Summer  School,  Rent,  Capital  Improvement  and
 2    Vocational Education Building.  Any  district  may  elect  to
 3    exclude  Transportation from the calculation of its operating
 4    tax rate.  Districts  may  include  taxes  extended  for  the
 5    payment  of  principal and interest on bonds issued under the
 6    provisions of Sections 17-2.11a and 20-2 at a  rate  of  .05%
 7    per  year  for  each  purpose  or  the  actual rate extended,
 8    whichever is less.
 9        (c)  For calculation of aid under  this  Act  a  district
10    shall  use the combined authorized tax rates of all funds not
11    exempt in (b) above, not to exceed 2.76% of the value of  all
12    its   taxable  property  as  equalized  or  assessed  by  the
13    Department  of  Revenue  for  districts  maintaining   grades
14    kindergarten  through  12;  1.90%  of  the  value  of all its
15    taxable property as equalized or assessed by  the  Department
16    of  Revenue  for  districts  maintaining  grades kindergarten
17    through 8 only;  1.10%  of  the  value  of  all  its  taxable
18    property  as  equalized  or  assessed  by  the  Department of
19    Revenue for districts maintaining grades 9 through  12  only.
20    A  district may, however, as provided in Article 17, increase
21    its operating tax rate above the  maximum  rate  provided  in
22    this  subsection without affecting the amount of State aid to
23    which it is entitled under this Act.
24        (d) (1)  For districts  maintaining  grades  kindergarten
25    through  12  with  an  operating  tax  rate  as  described in
26    subsections 5(b) and (c) of less than  2.18%,  and  districts
27    maintaining  grades  kindergarten through 8 with an operating
28    tax rate of less than 1.28%, State aid shall be  computed  by
29    multiplying  the  difference between the guaranteed equalized
30    assessed valuation per weighted ADA pupil in subsection  5(a)
31    and  the  equalized assessed valuation per weighted ADA pupil
32    in the district by the operating tax rate, multiplied by  the
33    weighted  average daily attendance of the district; provided,
34    however, that for the 1989-1990 school year  only,  a  school
35    district  maintaining  grades  kindergarten  through  8 whose
                            -19-           LRB9003523EGfgccr4
 1    operating tax rate with reference to which its general  State
 2    aid  for the 1989-1990 school year is determined is less than
 3    1.28% and more than 1.090%, and which had  an  operating  tax
 4    rate  of  1.28% or more for the previous year, shall have its
 5    general State aid computed according  to  the  provisions  of
 6    subsection 5(d)(2).
 7        (2)  For   districts   maintaining   grades  kindergarten
 8    through 12  with  an  operating  tax  rate  as  described  in
 9    subsection  5(b)  and  (c)  of 2.18% and above, the State aid
10    shall be computed as provided in subsection (d)  (1)  but  as
11    though  the  district  had an operating tax rate of 2.76%; in
12    K-8 districts with an operating tax rate of 1.28% and  above,
13    the State aid shall be computed as provided in subsection (d)
14    (1)  but  as though the district had an operating tax rate of
15    1.90%; and in 9-12 districts, the State aid shall be computed
16    by  multiplying  the  difference   between   the   guaranteed
17    equalized  assessed  valuation  per  weighted  average  daily
18    attendance   pupil  in  subsection  5(a)  and  the  equalized
19    assessed valuation  per  weighted  average  daily  attendance
20    pupil  in  the  district  by  the  operating tax rate, not to
21    exceed  1.10%,  multiplied  by  the  weighted  average  daily
22    attendance of the district.  State  aid  computed  under  the
23    provisions  of  this  subsection  (d) (2) shall be treated as
24    separate from  all  other  payments  made  pursuant  to  this
25    Section.   The  State  Comptroller  and State Treasurer shall
26    transfer from the General Revenue Fund to the  Common  School
27    Fund  the amounts necessary to permit these claims to be paid
28    in equal installments along with  other  State  aid  payments
29    remaining to be made for the 1983-1984 school year under this
30    Section.
31        (3)  For   any   school  district  whose  1995  equalized
32    assessed  valuation  is  at  least  6%  less  than  its  1994
33    equalized assessed valuation as the result of a reduction  in
34    the  equalized  assessed  valuation  of  the taxable property
35    within such  district  of  any  one  taxpayer  whose  taxable
                            -20-           LRB9003523EGfgccr4
 1    property  within  the  district has a 1994 equalized assessed
 2    valuation constituting at least 20%  of  the  1994  equalized
 3    assessed   valuation  of  all  taxable  property  within  the
 4    district, the 1996-97 State aid of  such  district  shall  be
 5    computed using its 1995 equalized assessed valuation.
 6        (4)  For   any   school  district  whose  1988  equalized
 7    assessed valuation is 55%  or  less  of  its  1981  equalized
 8    assessed  valuation,  the  1990-91 State aid of such district
 9    shall be computed by multiplying the 1988 equalized  assessed
10    valuation  by a factor of .8.  Any such school district which
11    is reorganized effective for the 1991-92  school  year  shall
12    use the formula provided in this subparagraph for purposes of
13    the  calculation  made  pursuant  to  subsection  (m) of this
14    Section.
15        (e)  The amount of State aid shall be computed under  the
16    provisions  of  subsections  5(a)  through  5(d) provided the
17    equalized assessed valuation per weighted ADA pupil  is  less
18    than  .87 of the amounts in subsection 5(a). If the equalized
19    assessed valuation per weighted ADA  pupil  is  equal  to  or
20    greater than .87 of the amounts in subsection 5(a), the State
21    aid  shall  be  computed  under  the provisions of subsection
22    5(f).
23        (f)  If the equalized assessed valuation per weighted ADA
24    pupil is equal to or greater  than  .87  of  the  amounts  in
25    subsection  5(a),  the State aid per weighted ADA pupil shall
26    be computed by multiplying  the  product  of  .13  times  the
27    maximum  per  pupil  amount  computed under the provisions of
28    subsections 5(a) through 5(d)  by  an  amount  equal  to  the
29    quotient  of  .87  times the equalized assessed valuation per
30    weighted ADA pupil  in  subsection  5(a)  for  that  type  of
31    district  divided  by  the  district  equalized valuation per
32    weighted ADA pupil except  in  no  case  shall  the  district
33    receive  State  aid  per  weighted ADA pupil of less than .07
34    times  the  maximum  per  pupil  amount  computed  under  the
35    provisions of subsections 5(a) through 5(d).
                            -21-           LRB9003523EGfgccr4
 1        (g)  In addition  to  the  above  grants,  summer  school
 2    grants  shall  be made based upon the calculation as provided
 3    in subsection 4 of this Section.
 4        (h)  The board of  any  district  receiving  any  of  the
 5    grants  provided for in this Section may apply those funds to
 6    any fund so received for which that board  is  authorized  to
 7    make expenditures by law.
 8        (i) (1) (a)  In  school  districts  with an average daily
 9    attendance of 50,000 or more, the amount  which  is  provided
10    under subsection 1(n) of this Section by the application of a
11    base  Chapter 1 weighting factor of .375 shall be distributed
12    to the attendance centers within the district  in  proportion
13    to  the  number  of pupils enrolled at each attendance center
14    who are eligible to receive free or reduced-price lunches  or
15    breakfasts  under the federal Child Nutrition Act of 1966 and
16    under the National School Lunch Act  during  the  immediately
17    preceding  school  year.   The  amount  of State aid provided
18    under subsection 1(n) of this Section by the  application  of
19    the  Chapter  1  weighting  factor in excess of .375 shall be
20    distributed to the attendance centers within the district  in
21    proportion to the total enrollment at each attendance center.
22    Beginning  with  school  year  1989-90,  and each school year
23    thereafter, all funds provided under subsection 1 (n) of this
24    Section by the application of the Chapter 1 weighting  factor
25    which  are  in  excess of the level of non-targeted Chapter 1
26    funds  in  school  year  1988-89  shall  be  distributed   to
27    attendance  centers,  and  only to attendance centers, within
28    the district in proportion to the number of  pupils  enrolled
29    at each attendance center who are eligible to receive free or
30    reduced  price  lunches or breakfasts under the Federal Child
31    Nutrition Act and under the National School Lunch Act  during
32    the  immediately  preceding school year.  Beginning in school
33    year 1989-90, 25% of the previously  non-targeted  Chapter  1
34    funds  as  established  for school year 1988-89 shall also be
35    distributed to the attendance centers, and only to attendance
                            -22-           LRB9003523EGfgccr4
 1    centers, in the district  in  proportion  to  the  number  of
 2    pupils enrolled at each attendance center who are eligible to
 3    receive free or reduced price lunches or breakfasts under the
 4    Federal  Child  Nutrition  Act  and under the National School
 5    Lunch Act during the immediately preceding  school  year;  in
 6    school  year  1990-91,  50%  of  the  previously non-targeted
 7    Chapter 1 funds as established for school year 1988-89  shall
 8    be  distributed to attendance centers, and only to attendance
 9    centers, in the district  in  proportion  to  the  number  of
10    pupils enrolled at each attendance center who are eligible to
11    receive  such  free  or  reduced  price lunches or breakfasts
12    during the immediately preceding school year; in school  year
13    1991-92,  75%  of the previously non-targeted Chapter 1 funds
14    as established for school year 1988-89 shall  be  distributed
15    to attendance centers, and only to attendance centers, in the
16    district  in  proportion  to the number of pupils enrolled at
17    each attendance center who are eligible to receive such  free
18    or reduced price lunches or breakfasts during the immediately
19    preceding school year; in school year 1992-93 and thereafter,
20    all  funds provided under subsection 1 (n) of this Section by
21    the application of the Chapter 1 weighting  factor  shall  be
22    distributed  to  attendance  centers,  and only to attendance
23    centers, in the district  in  proportion  to  the  number  of
24    pupils enrolled at each attendance center who are eligible to
25    receive free or reduced price lunches or breakfasts under the
26    Federal  Child  Nutrition  Act  and under the National School
27    Lunch Act  during  the  immediately  preceding  school  year;
28    provided,  however,  that  the distribution formula in effect
29    beginning with school year 1989-90 shall not be applicable to
30    such portion of State aid provided under subsection 1 (n)  of
31    this  Section  by  the application of the Chapter 1 weighting
32    formula as is  set  aside  and  appropriated  by  the  school
33    district  for the purpose of providing desegregation programs
34    and related transportation to students (which  portion  shall
35    not  exceed  5%  of  the  total  amount of State aid which is
                            -23-           LRB9003523EGfgccr4
 1    provided  under  subsection  1  (n)  of   this   Section   by
 2    application  of  the  Chapter  1  weighting formula), and the
 3    relevant  percentages  shall  be  applied  to  the  remaining
 4    portion  of  such  State  aid.   The  distribution  of  these
 5    portions  of  general  State  aid  among  attendance  centers
 6    according to these requirements shall not be compensated  for
 7    or  contravened  by  adjustments  of the total of other funds
 8    appropriated to any attendance centers.   (b)  The  Board  of
 9    Education  shall  utilize funding from one or several sources
10    in order to fully implement this provision annually prior  to
11    the  opening  of  school.  The Board of Education shall apply
12    savings from  reduced  administrative  costs  required  under
13    Section  34-43.1  and growth in non-Chapter 1 State and local
14    funds to assure that all attendance centers  receive  funding
15    to replace losses due to redistribution of Chapter 1 funding.
16    The distribution formula and funding to replace losses due to
17    the  distribution formula shall occur, in full, using any and
18    all sources available, including, if necessary, revenue  from
19    administrative  reductions  beyond  those required in Section
20    34-43.1, in order to provide the necessary funds.   (c)  Each
21    attendance  center shall be provided by the school district a
22    distribution of noncategorical funds  and  other  categorical
23    funds  to which an attendance center is entitled under law in
24    order that the State  aid  provided  by  application  of  the
25    Chapter  1  weighting  factor  and required to be distributed
26    among attendance centers according  to  the  requirements  of
27    this   paragraph   supplements   rather  than  supplants  the
28    noncategorical funds and other categorical funds provided  by
29    the    school    district    to   the   attendance   centers.
30    Notwithstanding the foregoing provisions of  this  subsection
31    5(i)(1)  or any other law to the contrary, beginning with the
32    1995-1996 school year and for each  school  year  thereafter,
33    the  board  of  a  school district to which the provisions of
34    this subsection  apply  shall  be  required  to  allocate  or
35    provide  to  attendance  centers  of the district in any such
                            -24-           LRB9003523EGfgccr4
 1    school year, from the State aid  provided  for  the  district
 2    under  this Section by application of the Chapter 1 weighting
 3    factor, an aggregate amount of not less than $261,000,000  of
 4    State  Chapter  1  funds.  Any  State Chapter 1 funds that by
 5    reason of the provisions of this paragraph are  not  required
 6    to  be  allocated  and  provided to attendance centers may be
 7    used and appropriated by the board of the  district  for  any
 8    lawful  school  purpose.    Chapter  1  funds  received by an
 9    attendance  center  (except  those  funds   set   aside   for
10    desegregation   programs   and   related   transportation  to
11    students) shall be used on the schedule cited in this Section
12    at the attendance center at the discretion of  the  principal
13    and  local school council for programs to improve educational
14    opportunities at qualifying  schools  through  the  following
15    programs  and  services:  early  childhood education, reduced
16    class size or improved  adult  to  student  classroom  ratio,
17    enrichment    programs,   remedial   assistance,   attendance
18    improvement and other educationally  beneficial  expenditures
19    which supplement the regular and basic programs as determined
20    by  the  State Board of Education.  Chapter 1 funds shall not
21    be expended for any political or lobbying purposes as defined
22    by board rule. (d) Each district subject to the provisions of
23    this paragraph shall submit an acceptable plan  to  meet  the
24    educational  needs  of  disadvantaged children, in compliance
25    with the requirements of this paragraph, to the  State  Board
26    of  Education  prior to July 15 of each year. This plan shall
27    be consistent with the decisions  of  local  school  councils
28    concerning   the   school   expenditure  plans  developed  in
29    accordance with part 4 of Section 34-2.3.   The  State  Board
30    shall  approve  or  reject  the plan within 60 days after its
31    submission.  If the plan is rejected the district shall  give
32    written notice of intent to modify the plan within 15 days of
33    the notification of rejection and then submit a modified plan
34    within 30 days after the date of the written notice of intent
35    to  modify.    Districts may amend approved plans pursuant to
                            -25-           LRB9003523EGfgccr4
 1    rules promulgated by the State Board of Education.
 2        Upon notification by the State Board  of  Education  that
 3    the  district  has not submitted a plan prior to July 15 or a
 4    modified plan within the time period  specified  herein,  the
 5    State  aid funds affected by said plan or modified plan shall
 6    be withheld by the State Board of Education until a  plan  or
 7    modified plan is submitted.
 8        If   the  district  fails  to  distribute  State  aid  to
 9    attendance centers in accordance with an approved  plan,  the
10    plan for the following year shall allocate funds, in addition
11    to  the  funds  otherwise  required  by this subparagraph, to
12    those attendance centers which were  underfunded  during  the
13    previous year in amounts equal to such underfunding.
14        For   purposes   of   determining  compliance  with  this
15    subsection  in  relation  to  Chapter  1  expenditures,  each
16    district subject to the provisions of this  subsection  shall
17    submit  as  a  separate document by December 1 of each year a
18    report of Chapter 1 expenditure data for the  prior  year  in
19    addition  to  any modification of its current plan.  If it is
20    determined that there has been a failure to comply  with  the
21    expenditure   provisions   of   this   subsection   regarding
22    contravention  or  supplanting,  the  State Superintendent of
23    Education shall, within 60 days of  receipt  of  the  report,
24    notify  the  district  and any affected local school council.
25    The  district  shall  within  45  days  of  receipt  of  that
26    notification inform the State Superintendent of Education  of
27    the  remedial  or  corrective action to be taken, whether  by
28    amendment of the current plan, if feasible, or by  adjustment
29    in  the  plan for the following year.  Failure to provide the
30    expenditure  report  or  the  notification  of  remedial   or
31    corrective  action  in  a  timely  manner  shall  result in a
32    withholding of the affected funds.
33        The State Board of Education shall promulgate  rules  and
34    regulations  to  implement  the provisions of this subsection
35    5(i)(1).  No funds shall be released under subsection 1(n) of
                            -26-           LRB9003523EGfgccr4
 1    this Section or under this subsection 5(i)(1) to any district
 2    which has not submitted a plan which has been approved by the
 3    State Board of Education.
 4        (2)  School districts with an average daily attendance of
 5    more than 1,000 and less than 50,000 and having a low  income
 6    pupil  weighting  factor in excess of .53 shall submit a plan
 7    to the State Board of Education prior to October 30  of  each
 8    year  for the use of the funds resulting from the application
 9    of subsection 1(n) of this Section  for  the  improvement  of
10    instruction  in  which  priority  is  given  to  meeting  the
11    education  needs  of disadvantaged children.  Such plan shall
12    be  submitted  in  accordance  with  rules  and   regulations
13    promulgated by the State Board of Education.
14        (j)  For the purposes of calculating State aid under this
15    Section, with respect to any part of a school district within
16    a   redevelopment   project   area  in  respect  to  which  a
17    municipality has adopted tax increment  allocation  financing
18    pursuant  to  the Tax Increment Allocation Redevelopment Act,
19    Sections  11-74.4-1  through  11-74.4-11  of   the   Illinois
20    Municipal  Code or the Industrial Jobs Recovery Law, Sections
21    11-74.6-1 through 11-74.6-50 of the Illinois Municipal  Code,
22    no  part  of the current equalized assessed valuation of real
23    property  located  in  any  such  project   area   which   is
24    attributable to an increase above the total initial equalized
25    assessed   valuation  of  such  property  shall  be  used  in
26    computing the equalized assessed valuation per  weighted  ADA
27    pupil  in  the district, until such time as all redevelopment
28    project  costs  have  been  paid,  as  provided  in   Section
29    11-74.4-8  of  the Tax Increment Allocation Redevelopment Act
30    or in Section 11-74.6-35 of the Industrial Jobs Recovery Law.
31    For the purpose of computing the equalized assessed valuation
32    per weighted ADA pupil in  the  district  the  total  initial
33    equalized   assessed   valuation  or  the  current  equalized
34    assessed valuation, whichever is lower, shall be  used  until
35    such time as all redevelopment project costs have been paid.
                            -27-           LRB9003523EGfgccr4
 1        (k)  For  a school district operating under the financial
 2    supervision of an Authority created under  Article  34A,  the
 3    State  aid  otherwise  payable  to  that  district under this
 4    Section, other than  State  aid  attributable  to  Chapter  1
 5    students,  shall  be reduced by an amount equal to the budget
 6    for the operations of  the  Authority  as  certified  by  the
 7    Authority  to  the  State  Board  of Education, and an amount
 8    equal to such  reduction  shall  be  paid  to  the  Authority
 9    created  for  such district for its operating expenses in the
10    manner provided in Section 18-11.   The  remainder  of  State
11    school  aid for any such district shall be paid in accordance
12    with Article 34A when that Article provides for a disposition
13    other than that provided by this Article.
14        (l)  For purposes of calculating  State  aid  under  this
15    Section,  the  equalized  assessed  valuation  for  a  school
16    district  used  to  compute  State aid shall be determined by
17    adding to the real property equalized assessed valuation  for
18    the  district  an  amount  computed by dividing the amount of
19    money received by the district under the  provisions  of  "An
20    Act  in  relation  to  the  abolition  of ad valorem personal
21    property tax and the replacement of revenues  lost  thereby",
22    certified  August  14,  1979,  by  the total tax rate for the
23    district. For purposes of  this  subsection  1976  tax  rates
24    shall  be used for school districts in the county of Cook and
25    1977 tax rates shall be used  for  school  districts  in  all
26    other counties.
27        (m) (1)  For  a  new  school district formed by combining
28    property  included  totally  within  2  or  more   previously
29    existing school districts, for its first year of existence or
30    if  the  new  district  was formed after October 31, 1982 and
31    prior  to  September  23,  1985,  for  the  year  immediately
32    following September 23, 1985, the State aid calculated  under
33    this  Section  shall be computed for the new district and for
34    the previously  existing  districts  for  which  property  is
35    totally included within the new district.  If the computation
                            -28-           LRB9003523EGfgccr4
 1    on the basis of the previously existing districts is greater,
 2    a supplementary payment equal to the difference shall be made
 3    for  the first 3 years of existence of the new district or if
 4    the new district was formed after October 31, 1982 and  prior
 5    to  September 23, 1985, for the 3 years immediately following
 6    September 23, 1985.
 7        (2)  For a school  district  which  annexes  all  of  the
 8    territory  of  one or more entire other school districts, for
 9    the  first  year  during  which  the  change  of   boundaries
10    attributable  to  such  annexation  becomes effective for all
11    purposes as determined under Section 7-9 or 7A-8,  the  State
12    aid  calculated  under this Section shall be computed for the
13    annexing district as constituted after the annexation and for
14    the annexing and each annexed district as  constituted  prior
15    to the annexation; and if the computation on the basis of the
16    annexing  and  annexed  districts as constituted prior to the
17    annexation is greater, a supplementary payment equal  to  the
18    difference  shall  be made for the first 3 years of existence
19    of the annexing school  district  as  constituted  upon  such
20    annexation.
21        (3)  For  2  or  more school districts which annex all of
22    the territory of one or more entire other  school  districts,
23    and  for 2 or more community unit districts which result upon
24    the division (pursuant to petition under  Section  11A-2)  of
25    one  or more other unit school districts into 2 or more parts
26    and which together include all of the parts into  which  such
27    other  unit  school district or districts are so divided, for
28    the  first  year  during  which  the  change  of   boundaries
29    attributable to such annexation or division becomes effective
30    for  all  purposes as determined under Section 7-9 or 11A-10,
31    as the case may be,  the  State  aid  calculated  under  this
32    Section  shall  be  computed  for  each annexing or resulting
33    district as constituted after the annexation or division  and
34    for each annexing and annexed district, or for each resulting
35    and  divided district, as constituted prior to the annexation
                            -29-           LRB9003523EGfgccr4
 1    or division; and if the aggregate of  the  State  aid  as  so
 2    computed   for   the   annexing  or  resulting  districts  as
 3    constituted after the annexation or division is less than the
 4    aggregate of the State aid as so computed  for  the  annexing
 5    and  annexed  districts,  or  for  the  resulting and divided
 6    districts,  as  constituted  prior  to  the   annexation   or
 7    division,   then   a   supplementary  payment  equal  to  the
 8    difference shall be made and allocated between or  among  the
 9    annexing  or  resulting  districts,  as constituted upon such
10    annexation or division,  for  the  first  3  years  of  their
11    existence.   The  total difference payment shall be allocated
12    between or among the annexing or resulting districts  in  the
13    same  ratio  as the pupil enrollment from that portion of the
14    annexed or divided district or districts which is annexed  to
15    or included in each such annexing or resulting district bears
16    to  the  total  pupil  enrollment  from the entire annexed or
17    divided district or districts, as such  pupil  enrollment  is
18    determined  for the school year last ending prior to the date
19    when the change of boundaries attributable to the  annexation
20    or  division  becomes effective for all purposes.  The amount
21    of the total difference payment and the amount thereof to  be
22    allocated  to  the  annexing  or resulting districts shall be
23    computed by the State Board of  Education  on  the  basis  of
24    pupil  enrollment  and other data which shall be certified to
25    the State Board of Education, on forms which it shall provide
26    for that purpose, by the regional superintendent  of  schools
27    for each educational service region in which the annexing and
28    annexed  districts,  or  resulting  and divided districts are
29    located.
30        (4)  If a unit school district annexes all the  territory
31    of  another  unit  school district effective for all purposes
32    pursuant to Section 7-9 on July 1, 1988, and if part  of  the
33    annexed  territory  is  detached within 90 days after July 1,
34    1988, then the detachment shall be disregarded  in  computing
35    the supplementary State aid payments under this paragraph (m)
                            -30-           LRB9003523EGfgccr4
 1    for  the entire 3 year period and the supplementary State aid
 2    payments shall not be diminished because of the detachment.
 3        (5)  Any supplementary State aid payment made under  this
 4    paragraph  (m)  shall  be  treated as separate from all other
 5    payments made pursuant to this Section.
 6        (n)  For the purposes of calculating State aid under this
 7    Section, the real property equalized assessed valuation for a
 8    school district used to compute State aid shall be determined
 9    by subtracting from the real property value as  equalized  or
10    assessed  by  the  Department  of Revenue for the district an
11    amount computed by dividing the amount of  any  abatement  of
12    taxes  under  Section  18-170 of the Property Tax Code by the
13    maximum operating tax rates specified in subsection  5(c)  of
14    this Section and an amount computed by dividing the amount of
15    any abatement of taxes under subsection (a) of Section 18-165
16    of  the  Property Tax Code by the maximum operating tax rates
17    specified in subsection 5(c) of this Section.
18        (o)  Notwithstanding  any  other   provisions   of   this
19    Section,  for  the  1996-1997  school  year the amount of the
20    aggregate general State  aid  entitlement  that  is  received
21    under  this  Section  by each school district for that school
22    year shall be not less  than  the  amount  of  the  aggregate
23    general  State  aid  entitlement  that  was  received  by the
24    district under this Section for the  1995-1996  school  year.
25    If a school district is to receive an aggregate general State
26    aid  entitlement  under this Section for the 1996-1997 school
27    year that is less than the amount of  the  aggregate  general
28    State  aid  entitlement that the district received under this
29    Section for the 1995-1996 school year,  the  school  district
30    shall  also  receive,  from a separate appropriation made for
31    purposes of this paragraph (o), a supplementary payment  that
32    is  equal  to  the  amount  by  which  the  general State aid
33    entitlement received by the district under this  Section  for
34    the  1995-1996  school  year  exceeds  the  general State aid
35    entitlement that  the  district  is  to  receive  under  this
                            -31-           LRB9003523EGfgccr4
 1    Section for the 1996-1997 school year.
 2        Notwithstanding any other provisions of this Section, for
 3    the 1997-1998 school year the amount of the aggregate general
 4    State  aid entitlement that is received under this Section by
 5    each school district for that school year shall be  not  less
 6    than   the   amount   of  the  aggregate  general  State  aid
 7    entitlement that was received  by  the  district  under  this
 8    Section  for the 1996-1997 school year.  If a school district
 9    is to receive an  aggregate  general  State  aid  entitlement
10    under this Section for the 1997-1998 school year that is less
11    than   the   amount   of  the  aggregate  general  State  aid
12    entitlement that the district received under this Section for
13    the 1996-1997 school year, the  school  district  shall  also
14    receive,  from  a separate appropriation made for purposes of
15    this paragraph (o), a supplementary payment that is equal  to
16    the  amount  by  which  the  general  State  aid  entitlement
17    received by the district under this Section for the 1996-1997
18    school  year  exceeds  the general State aid entitlement that
19    the district  is  to  receive  under  this  Section  for  the
20    1997-1998 school year.
21        If  the amount appropriated for supplementary payments to
22    school districts under this paragraph (o) is insufficient for
23    that purpose, the supplementary payments that  districts  are
24    to  receive  under this paragraph shall be prorated according
25    to  the  aggregate  amount  of  the  appropriation  made  for
26    purposes of this paragraph.
27        (p)  For  the  1997-1998  school  year,  a   supplemental
28    general   State  aid  grant  shall  be  provided  for  school
29    districts as follows:
30             (i)  The general State  aid  received  by  a  school
31        district under this Section for the 1997-1998 school year
32        shall  be  added to the sum of (A) the result obtained by
33        multiplying the 1995 equalized valuation of  all  taxable
34        property  in  the  district  by the fixed calculation tax
35        rates of 3.0% for unit  districts,  2.0%  for  elementary
                            -32-           LRB9003523EGfgccr4
 1        districts and 1.0% for high school districts plus (B) the
 2        aggregate   corporate   personal   property   replacement
 3        revenues  received  by  the district during the 1996-1997
 4        school year;
 5             (ii)  The aggregate amount determined under item (i)
 6        of this subsection 5(p) shall be divided by  the  average
 7        of  the best 3 months of pupil attendance in the district
 8        for the 1996-1997 school year; and
 9             (iii)  If  the  result  obtained  by  dividing   the
10        aggregate  amount  determined  under  item  (i)  of  this
11        subsection  5(p)  by  the average of the best 3 months of
12        pupil attendance in the district as provided in item (ii)
13        of  this  subsection  5(p)  is  less  than  $3,600,   the
14        supplemental  general  State  aid grant that the district
15        shall  receive  under  this  subsection  5(p)   for   the
16        1997-1998  school  year  shall  be  equal  to  the amount
17        determined by subtracting from $3,600 the result obtained
18        by dividing the aggregate amount  determined  under  item
19        (i)  of  this  subsection  by  the  average of the best 3
20        months of pupil attendance in the district as provided in
21        item (ii) of this subsection,  and  by  multiplying  that
22        difference  by  the average of the best 3 months of pupil
23        attendance in the district for the 1996-1997 school year.
24        If the moneys appropriated in a separate line item by the
25    General  Assembly  to  the  State  Board  of  Education   for
26    supplementary payments required to be made and distributed to
27    school  districts  for  any school year under this subsection
28    5(p)  are  insufficient,  the  amount  of  the  supplementary
29    payments required to be made and distributed to those  school
30    districts  under  this  subsection  5(p) for that school year
31    shall abate proportionately.
32        B.  In calculating the amount to be paid to the governing
33    board of a  public  university  that  operates  a  laboratory
34    school  under  this Section or to any alternative school that
35    is operated by a regional superintendent, the State Board  of
                            -33-           LRB9003523EGfgccr4
 1    Education  shall  require by rule such reporting requirements
 2    as it deems necessary.
 3        As used in this  Section,  "laboratory  school"  means  a
 4    public  school  which  is  created  and  operated by a public
 5    university and approved by the State Board of Education.  The
 6    governing board of a public university which  receives  funds
 7    from the State Board under this subsection B may not increase
 8    the number of students enrolled in its laboratory school from
 9    a  single district, if that district is already sending 50 or
10    more students, except under a mutual  agreement  between  the
11    school  board  of  a  student's district of residence and the
12    university  which  operates   the   laboratory   school.    A
13    laboratory  school  may  not  have  more than 1,000 students,
14    excluding students with disabilities in a  special  education
15    program.
16        As  used  in  this  Section, "alternative school" means a
17    public school which is created and  operated  by  a  Regional
18    Superintendent  of Schools and approved by the State Board of
19    Education. Such alternative  schools  may  offer  courses  of
20    instruction  for  which  credit  is  given  in regular school
21    programs, courses to prepare students  for  the  high  school
22    equivalency  testing  program  or vocational and occupational
23    training.
24        Each laboratory and alternative  school  shall  file,  on
25    forms  provided  by the State Superintendent of Education, an
26    annual  State  aid  claim  which  states  the  average  daily
27    attendance of the school's students by  month.   The  best  3
28    months'  average  daily attendance shall be computed for each
29    school.  The  weighted  average  daily  attendance  shall  be
30    computed  and  the  weighted average daily attendance for the
31    school's most recent 3 year average shall be compared to  the
32    most  recent  weighted  average  daily  attendance,  and  the
33    greater of the 2 shall be used for the calculation under this
34    subsection  B.   The  general  State aid entitlement shall be
35    computed by multiplying the school's  student  count  by  the
                            -34-           LRB9003523EGfgccr4
 1    foundation level as determined under this Section.
 2    (Source: P.A.  88-9;  88-45;  88-89;  88-386; 88-511; 88-537;
 3    88-555; 88-641; 88-670, eff. 12-2-94;  89-15,  eff.  5-30-95;
 4    89-235,  eff.  8-4-95;  89-397,  eff.  8-20-95;  89-610, eff.
 5    8-6-96; 89-618, eff. 8-9-96;  89-626,  eff.  8-9-96;  89-679,
 6    eff. 8-16-96; revised 9-10-96.)
 7        Section 30.  The Liquor Control Act of 1934 is amended by
 8    changing Section 3-12 and by adding Section 5-6 as follows:
 9        (235 ILCS 5/3-12) (from Ch. 43, par. 108)
10        (Text of Section before amendment by P.A. 89-507)
11        Sec. 3-12.  The State commission shall have the following
12    powers, functions and duties:
13        (1)  To  receive  applications  and  to issue licenses to
14    manufacturers,  foreign  importers,  importing  distributors,
15    distributors, non-resident dealers,  on  premise  consumption
16    retailers, off premise sale retailers, special event retailer
17    licensees,   special  use  permit  licenses,  auction  liquor
18    licenses, brew pubs, caterer retailers,  non-beverage  users,
19    railroads,  including  owners and lessees of sleeping, dining
20    and cafe cars, airplanes and boats, in  accordance  with  the
21    provisions  of  this  Act,  and  to  suspend  or  revoke such
22    licenses upon  the  State  commission's  determination,  upon
23    notice  after  hearing,  that  a  licensee  has  violated any
24    provision of this  Act  or  any  rule  or  regulation  issued
25    pursuant  thereto  and  in  effect  for 30 days prior to such
26    violation.
27        In  lieu  of  suspending  or  revoking  a  license,   the
28    commission  may  impose  a  fine, upon the State commission's
29    determination and notice after hearing, that a  licensee  has
30    violated  any provision of this Act or any rule or regulation
31    issued pursuant thereto and in effect for 30  days  prior  to
32    such  violation.   The  fine imposed under this paragraph may
33    not exceed $500  for  each  violation.   Each  day  that  the
                            -35-           LRB9003523EGfgccr4
 1    activity,  which gave rise to the original fine, continues is
 2    a separate violation.  The maximum fine that  may  be  levied
 3    against  any  licensee,  for the period of the license, shall
 4    not exceed $20,000.
 5        (2)  To adopt such rules and regulations consistent  with
 6    the  provisions of this Act which shall be necessary to carry
 7    on its functions and duties  to  the  end  that  the  health,
 8    safety  and  welfare  of  the People of the State of Illinois
 9    shall be protected  and  temperance  in  the  consumption  of
10    alcoholic  liquors  shall  be  fostered  and  promoted and to
11    distribute copies  of  such  rules  and  regulations  to  all
12    licensees affected thereby.
13        (3)  To call upon other administrative departments of the
14    State,  county  and  municipal  governments,  county and city
15    police departments and upon  prosecuting  officers  for  such
16    information  and  assistance  as  it  deems  necessary in the
17    performance of its duties.
18        (4)  To  recommend  to  local  commissioners  rules   and
19    regulations,   not   inconsistent   with  the  law,  for  the
20    distribution and sale of  alcoholic  liquors  throughout  the
21    State.
22        (5)  To  inspect,  or cause to be inspected, any premises
23    where alcoholic  liquors  are  manufactured,  distributed  or
24    sold.
25        (6)  To hear and determine appeals from orders of a local
26    commission  in accordance with the provisions of this Act, as
27    hereinafter set forth. Hearings under this  subsection  shall
28    be  held  in Springfield or Chicago, at whichever location is
29    the more convenient for  the  majority  of  persons  who  are
30    parties to the hearing.
31        (7)  The  commission  shall  establish uniform systems of
32    accounts to be kept by all retail licensees having more  than
33    4 employees, and for this purpose the commission may classify
34    all  retail  licensees  having  more  than  4  employees  and
35    establish  a  uniform  system  of accounts for each class and
                            -36-           LRB9003523EGfgccr4
 1    prescribe the manner in which such accounts  shall  be  kept.
 2    The commission may also prescribe the forms of accounts to be
 3    kept  by  all  retail licensees having more than 4 employees,
 4    including  but  not  limited  to  accounts  of  earnings  and
 5    expenses and any distribution, payment, or other distribution
 6    of earnings or assets,  and  any  other  forms,  records  and
 7    memoranda  which  in  the  judgment  of the commission may be
 8    necessary or appropriate to carry out any of  the  provisions
 9    of this Act, including but not limited to such forms, records
10    and  memoranda as will readily and accurately disclose at all
11    times  the  beneficial  ownership  of  such  retail  licensed
12    business.  The accounts, forms, records and  memoranda  shall
13    be  available  at  all  reasonable  times  for  inspection by
14    authorized representatives of the State commission or by  any
15    local  liquor  control  commissioner or his or her authorized
16    representative. The  commission,  may,  from  time  to  time,
17    alter,  amend  or  repeal,  in  whole or in part, any uniform
18    system of  accounts,  or  the  form  and  manner  of  keeping
19    accounts.
20        (8)  In  the conduct of any hearing authorized to be held
21    by the commission, to examine, or cause to be examined, under
22    oath, any licensee, and to examine or cause  to  be  examined
23    the books and records of such licensee; to hear testimony and
24    take  proof  material for its information in the discharge of
25    its  duties  hereunder;  to  administer  or   cause   to   be
26    administered  oaths;  and  for  any  such  purpose  to  issue
27    subpoena  or subpoenas to require the attendance of witnesses
28    and the production of books, which shall be effective in  any
29    part of this State.
30        Any  Circuit Court may by order duly entered, require the
31    attendance of witnesses and the production of relevant  books
32    subpoenaed  by  the State commission and the court may compel
33    obedience to its order by proceedings for contempt.
34        (9)  To  investigate  the  administration  of   laws   in
35    relation  to  alcoholic  liquors in this and other states and
                            -37-           LRB9003523EGfgccr4
 1    any foreign countries, and to recommend from time to time  to
 2    the  Governor  and  through  him or her to the legislature of
 3    this State, such amendments to this Act, if any,  as  it  may
 4    think  desirable  and  as  will  serve to further the general
 5    broad purposes contained in Section 1-2 hereof.
 6        (10)  To adopt such rules and regulations consistent with
 7    the provisions of this Act which shall be necessary  for  the
 8    control, sale or disposition of alcoholic liquor damaged as a
 9    result  of  an  accident, wreck, flood, fire or other similar
10    occurrence.
11        (11)  To develop industry educational programs related to
12    responsible serving and selling, particularly in the areas of
13    overserving consumers and  illegal  underage  purchasing  and
14    consumption of alcoholic beverages.
15        (12)  To develop and maintain a repository of license and
16    regulatory information.
17        (13)  On or before January 15, 1994, the Commission shall
18    issue  a  written report to the Governor and General Assembly
19    that is to be based on a comprehensive study of the impact on
20    and implications for the State of Illinois of Section 1926 of
21    the Federal ADAMHA Reorganization Act  of  1992  (Public  Law
22    102-321).   This  study  shall  address  the  extent to which
23    Illinois currently  complies  with  the  provisions  of  P.L.
24    102-321 and the rules promulgated pursuant thereto.
25        As  part  of its report, the Commission shall provide the
26    following essential information:
27             (i)  the number of retail  distributors  of  tobacco
28        products, by type and geographic area, in the State;
29             (ii)  the   number   of   reported   citations   and
30        successful  convictions, categorized by type and location
31        of retail distributor,  for  violation  of  the  Sale  of
32        Tobacco   to   Minors   Act  and  the  Smokeless  Tobacco
33        Limitation Act;
34             (iii)  the   extent   and   nature   of    organized
35        educational and governmental activities that are intended
                            -38-           LRB9003523EGfgccr4
 1        to promote, encourage or otherwise secure compliance with
 2        any  Illinois laws that prohibit the sale or distribution
 3        of tobacco products to minors; and
 4             (iv)  the  level  of  access  and  availability   of
 5        tobacco products to individuals under the age of 18.
 6        To   obtain   the  data  necessary  to  comply  with  the
 7    provisions of P.L.  102-321  and  the  requirements  of  this
 8    report,  the  Commission  shall  conduct  random, unannounced
 9    inspections   of   a   geographically   and    scientifically
10    representative   sample   of   the   State's  retail  tobacco
11    distributors.
12        The Commission  shall  consult  with  the  Department  of
13    Public  Health,  the  Department  of Alcoholism and Substance
14    Abuse, the Illinois State  Police  and  any  other  executive
15    branch  agency,  and  private  organizations  that  may  have
16    information relevant to this report.
17        The  Commission  may  contract  with  the  Food  and Drug
18    Administration of the U.S. Department  of  Health  and  Human
19    Services  to  conduct  unannounced investigations of Illinois
20    tobacco vendors to determine  compliance  with  federal  laws
21    relating  to  the  illegal  sale  of cigarettes and smokeless
22    tobacco products to persons under the age of 18.
23    (Source: P.A. 88-91; 88-418; 88-670, eff. 12-2-94.)
24        (Text of Section after amendment by P.A. 89-507)
25        Sec. 3-12.  The State commission shall have the following
26    powers, functions and duties:
27        (1)  To receive applications and  to  issue  licenses  to
28    manufacturers,  foreign  importers,  importing  distributors,
29    distributors,  non-resident  dealers,  on premise consumption
30    retailers, off premise sale retailers, special event retailer
31    licensees,  special  use  permit  licenses,  auction   liquor
32    licenses,  brew  pubs, caterer retailers, non-beverage users,
33    railroads, including owners and lessees of  sleeping,  dining
34    and  cafe  cars,  airplanes and boats, in accordance with the
                            -39-           LRB9003523EGfgccr4
 1    provisions of  this  Act,  and  to  suspend  or  revoke  such
 2    licenses  upon  the  State  commission's  determination, upon
 3    notice after  hearing,  that  a  licensee  has  violated  any
 4    provision  of  this  Act  or  any  rule  or regulation issued
 5    pursuant thereto and in effect for  30  days  prior  to  such
 6    violation.
 7        In   lieu  of  suspending  or  revoking  a  license,  the
 8    commission may impose a fine,  upon  the  State  commission's
 9    determination  and  notice after hearing, that a licensee has
10    violated any provision of this Act or any rule or  regulation
11    issued  pursuant  thereto  and in effect for 30 days prior to
12    such violation.  The fine imposed under  this  paragraph  may
13    not  exceed  $500  for  each  violation.   Each  day that the
14    activity, which gave rise to the original fine, continues  is
15    a  separate  violation.   The maximum fine that may be levied
16    against any licensee, for the period of  the  license,  shall
17    not exceed $20,000.
18        (2)  To  adopt such rules and regulations consistent with
19    the provisions of this Act which shall be necessary to  carry
20    on  its  functions  and  duties  to  the end that the health,
21    safety and welfare of the People of  the  State  of  Illinois
22    shall  be  protected  and  temperance  in  the consumption of
23    alcoholic liquors shall  be  fostered  and  promoted  and  to
24    distribute  copies  of  such  rules  and  regulations  to all
25    licensees affected thereby.
26        (3)  To call upon other administrative departments of the
27    State, county and  municipal  governments,  county  and  city
28    police  departments  and  upon  prosecuting officers for such
29    information and assistance  as  it  deems  necessary  in  the
30    performance of its duties.
31        (4)  To   recommend  to  local  commissioners  rules  and
32    regulations,  not  inconsistent  with  the   law,   for   the
33    distribution  and  sale  of  alcoholic liquors throughout the
34    State.
35        (5)  To inspect, or cause to be inspected,  any  premises
                            -40-           LRB9003523EGfgccr4
 1    where  alcoholic  liquors  are  manufactured,  distributed or
 2    sold.
 3        (6)  To hear and determine appeals from orders of a local
 4    commission in accordance with the provisions of this Act,  as
 5    hereinafter  set  forth. Hearings under this subsection shall
 6    be held in Springfield or Chicago, at whichever  location  is
 7    the  more  convenient  for  the  majority  of persons who are
 8    parties to the hearing.
 9        (7)  The commission shall establish  uniform  systems  of
10    accounts  to be kept by all retail licensees having more than
11    4 employees, and for this purpose the commission may classify
12    all  retail  licensees  having  more  than  4  employees  and
13    establish a uniform system of accounts  for  each  class  and
14    prescribe  the  manner  in which such accounts shall be kept.
15    The commission may also prescribe the forms of accounts to be
16    kept by all retail licensees having more  than  4  employees,
17    including  but  not  limited  to  accounts  of  earnings  and
18    expenses and any distribution, payment, or other distribution
19    of  earnings  or  assets,  and  any  other forms, records and
20    memoranda which in the judgment  of  the  commission  may  be
21    necessary  or  appropriate to carry out any of the provisions
22    of this Act, including but not limited to such forms, records
23    and memoranda as will readily and accurately disclose at  all
24    times  the  beneficial  ownership  of  such  retail  licensed
25    business.   The  accounts, forms, records and memoranda shall
26    be available  at  all  reasonable  times  for  inspection  by
27    authorized  representatives of the State commission or by any
28    local liquor control commissioner or his  or  her  authorized
29    representative.  The  commission,  may,  from  time  to time,
30    alter, amend or repeal, in whole  or  in  part,  any  uniform
31    system  of  accounts,  or  the  form  and  manner  of keeping
32    accounts.
33        (8)  In the conduct of any hearing authorized to be  held
34    by the commission, to examine, or cause to be examined, under
35    oath,  any  licensee,  and to examine or cause to be examined
                            -41-           LRB9003523EGfgccr4
 1    the books and records of such licensee; to hear testimony and
 2    take proof material for its information in the  discharge  of
 3    its   duties   hereunder;   to  administer  or  cause  to  be
 4    administered  oaths;  and  for  any  such  purpose  to  issue
 5    subpoena or subpoenas to require the attendance of  witnesses
 6    and  the production of books, which shall be effective in any
 7    part of this State.
 8        Any Circuit Court may by order duly entered, require  the
 9    attendance  of witnesses and the production of relevant books
10    subpoenaed by the State commission and the court  may  compel
11    obedience to its order by proceedings for contempt.
12        (9)  To   investigate   the  administration  of  laws  in
13    relation to alcoholic liquors in this and  other  states  and
14    any  foreign countries, and to recommend from time to time to
15    the Governor and through him or her  to  the  legislature  of
16    this  State,  such  amendments to this Act, if any, as it may
17    think desirable and as will  serve  to  further  the  general
18    broad purposes contained in Section 1-2 hereof.
19        (10)  To adopt such rules and regulations consistent with
20    the  provisions  of this Act which shall be necessary for the
21    control, sale or disposition of alcoholic liquor damaged as a
22    result of an accident, wreck, flood, fire  or  other  similar
23    occurrence.
24        (11)  To develop industry educational programs related to
25    responsible serving and selling, particularly in the areas of
26    overserving  consumers  and  illegal  underage purchasing and
27    consumption of alcoholic beverages.
28        (12)  To develop and maintain a repository of license and
29    regulatory information.
30        (13)  On or before January 15, 1994, the Commission shall
31    issue a written report to the Governor and  General  Assembly
32    that is to be based on a comprehensive study of the impact on
33    and implications for the State of Illinois of Section 1926 of
34    the  Federal  ADAMHA  Reorganization  Act of 1992 (Public Law
35    102-321).  This study  shall  address  the  extent  to  which
                            -42-           LRB9003523EGfgccr4
 1    Illinois  currently  complies  with  the  provisions  of P.L.
 2    102-321 and the rules promulgated pursuant thereto.
 3        As part of its report, the Commission shall  provide  the
 4    following essential information:
 5             (i)  the  number  of  retail distributors of tobacco
 6        products, by type and geographic area, in the State;
 7             (ii)  the   number   of   reported   citations   and
 8        successful convictions, categorized by type and  location
 9        of  retail  distributor,  for  violation  of  the Sale of
10        Tobacco  to  Minors  Act  and   the   Smokeless   Tobacco
11        Limitation Act;
12             (iii)  the    extent   and   nature   of   organized
13        educational and governmental activities that are intended
14        to promote, encourage or otherwise secure compliance with
15        any Illinois laws that prohibit the sale or  distribution
16        of tobacco products to minors; and
17             (iv)  the   level  of  access  and  availability  of
18        tobacco products to individuals under the age of 18.
19        To  obtain  the  data  necessary  to  comply   with   the
20    provisions  of  P.L.  102-321  and  the  requirements of this
21    report, the  Commission  shall  conduct  random,  unannounced
22    inspections    of   a   geographically   and   scientifically
23    representative  sample  of   the   State's   retail   tobacco
24    distributors.
25        The  Commission  shall  consult  with  the  Department of
26    Public Health, the Department of Human Services, the Illinois
27    State Police and  any  other  executive  branch  agency,  and
28    private  organizations  that may have information relevant to
29    this report.
30        The Commission  may  contract  with  the  Food  and  Drug
31    Administration  of  the  U.S.  Department of Health and Human
32    Services to conduct unannounced  investigations  of  Illinois
33    tobacco  vendors  to  determine  compliance with federal laws
34    relating to the illegal  sale  of  cigarettes  and  smokeless
35    tobacco products to persons under the age of 18.
                            -43-           LRB9003523EGfgccr4
 1    (Source:  P.A.  88-91;  88-418; 88-670, eff. 12-2-94; 89-507,
 2    eff. 7-1-97.)
 3        (235 ILCS 5/5-6 new)
 4        Sec. 5-6.  FDA grant funds.  Grant  funds  received  from
 5    the  Food  and  Drug Administration of the U.S. Department of
 6    Health  and  Human  Services   for   conducting   unannounced
 7    investigations of Illinois tobacco vendors shall be deposited
 8    into the Dram Shop Fund.
 9        Section  35.   The Illinois Public Aid Code is amended by
10    changing Sections 5-5.4 and 14-8 and adding Sections  12-4.32
11    and 12-4.201 as follows:
12        (305 ILCS 5/5-5.4) (from Ch. 23, par. 5-5.4)
13        Sec.  5-5.4.  Standards of Payment - Department of Public
14    Aid.  The Department of Public Aid shall develop standards of
15    payment of skilled nursing and intermediate care services  in
16    facilities providing such services under this Article which:
17        (1)  Provides  for  the  determination  of  a  facility's
18    payment for skilled nursing and intermediate care services on
19    a  prospective basis.  The amount of the payment rate for all
20    nursing facilities certified  under  the  medical  assistance
21    program  shall  be  prospectively established annually on the
22    basis  of  historical,  financial,   and   statistical   data
23    reflecting  actual  costs  from  prior  years, which shall be
24    applied to the current rate year and updated  for  inflation,
25    except  that  the  capital cost element for newly constructed
26    facilities  shall  be  based  upon  projected  budgets.   The
27    annually established payment rate shall take effect on July 1
28    in 1984  and  subsequent  years.   Rate  increases  shall  be
29    provided  annually  thereafter  on July 1 in 1984 and on each
30    subsequent July 1 in the following years, except that no rate
31    increase and no update for inflation shall be provided on  or
32    after  July  1,  1994,  July 1, 1995, or July 1, 1996.  Rates
                            -44-           LRB9003523EGfgccr4
 1    established effective each July 1 shall  govern  payment  for
 2    services  rendered  throughout  that fiscal year, except that
 3    rates established on July 1, 1996 shall be increased by  6.8%
 4    for  services  provided  on  or  after January 1, 1997.  Such
 5    rates will be based upon the rates calculated  for  the  year
 6    beginning  July  1, 1990, and for subsequent years thereafter
 7    shall be based on the facility cost reports for the  facility
 8    fiscal  year  ending at any point in time during the previous
 9    calendar year, updated to the midpoint of the rate year.  The
10    cost report shall be on file with  the  Department  no  later
11    than  April  1  of  the  current  rate year.  Should the cost
12    report not be on file by April 1, the Department  shall  base
13    the rate on the latest cost report filed by each skilled care
14    facility  and  intermediate  care  facility,  updated  to the
15    midpoint of the current rate year.  In determining rates  for
16    services rendered on and after July 1, 1985, fixed time shall
17    not  be computed at less than zero.  The Department shall not
18    make any alterations of regulations which  would  reduce  any
19    component  of  the  Medicaid  rate to a level below what that
20    component would have been utilizing in the rate effective  on
21    July 1, 1984.
22        (2)  Shall take into account the actual costs incurred by
23    facilities  in  providing  services for recipients of skilled
24    nursing and intermediate  care  services  under  the  medical
25    assistance program.
26        (3)  Shall    take   into   account   the   medical   and
27    psycho-social characteristics and needs of the patients.
28        (4)  Shall take into account the actual costs incurred by
29    facilities in meeting, licensing and certification  standards
30    imposed  and  prescribed by the State of Illinois, any of its
31    political subdivisions or municipalities and  by  the  United
32    States  Department  of Health, Education and Welfare pursuant
33    to Title XIX of the Social Security Act.
34        The  Department  of  Public  Aid  shall  develop  precise
35    standards for payments to reimburse  nursing  facilities  for
                            -45-           LRB9003523EGfgccr4
 1    any  utilization  of appropriate rehabilitative personnel for
 2    the provision of rehabilitative services which is  authorized
 3    by  federal regulations, including reimbursement for services
 4    provided by qualified therapists or qualified assistants, and
 5    which is in accordance with accepted professional  practices.
 6    Reimbursement  also  may  be  made  for  utilization of other
 7    supportive personnel under appropriate supervision.
 8    (Source: P.A.  88-554,  eff.  7-26-94;  89-21,  eff.  7-1-95;
 9    89-499, eff. 6-28-96.)
10        (305 ILCS 5/12-4.32 new)
11        Sec.   12-4.32.  Payments  to  noncitizens.   Subject  to
12    specific appropriation for this purpose,  the  Department  of
13    Human   Services   is   authorized  to  provide  payments  to
14    individuals age 65 or over who were  present  in  the  United
15    States  prior  to August 22, 1996 and are terminated from the
16    federal Supplemental Security Income  program  due  to  their
17    noncitizen  status.    The  payment  levels for these persons
18    shall be determined by  rule.   These  individuals  shall  be
19    required  to  pursue  continued  eligibility  for the federal
20    Supplemental Security Income program based on disability,  if
21    potentially available.
22        (305 ILCS 5/12-4.201 new)
23        Sec.  12-4.201.   Data  warehouse  concerning medical and
24    related  services.  The Illinois Department of Public Aid may
25    purchase services and  materials associated with the costs of
26    developing and implementing a data   warehouse  comprised  of
27    management  and decision making information in  regard to the
28    liability associated with, and utilization  of,  medical  and
29    related services, out of moneys available for that purpose.
30        (305 ILCS 5/14-8) (from Ch. 23, par. 14-8)
31        (Text of Section before amendment by P.A. 89-507)
32        Sec. 14-8.  Disbursements to Hospitals.
                            -46-           LRB9003523EGfgccr4
 1        (a)  For  inpatient  hospital  services  rendered  on and
 2    after  September  1,  1991,  the  Illinois  Department  shall
 3    reimburse hospitals for inpatient services  at  an  inpatient
 4    payment  rate  calculated  for  each  hospital based upon the
 5    Medicare Prospective Payment System as set forth in  Sections
 6    1886(b),  (d),  (g),  and  (h) of the federal Social Security
 7    Act,  and   the   regulations,   policies,   and   procedures
 8    promulgated  thereunder,  except as modified by this Section.
 9    Payment rates for inpatient hospital services rendered on  or
10    after  September  1, 1991 and on or before September 30, 1992
11    shall be calculated using the  Medicare  Prospective  Payment
12    rates  in  effect  on  September  1, 1991.  Payment rates for
13    inpatient hospital services rendered on or after  October  1,
14    1992  and  on  or  before  March 31, 1994 shall be calculated
15    using the Medicare Prospective Payment  rates  in  effect  on
16    September  1,  1992.    Payment  rates for inpatient hospital
17    services  rendered  on  or  after  April  1,  1994  shall  be
18    calculated  using  the  Medicare  Prospective  Payment  rates
19    (including the Medicare grouping  methodology  and  weighting
20    factors  as  adjusted  pursuant  to  paragraph  (1)  of  this
21    subsection)   in   effect  90  days  prior  to  the  date  of
22    admission.  For services rendered on or after July  1,  1995,
23    the   reimbursement   methodology   implemented   under  this
24    subsection shall not  include  those  costs  referred  to  in
25    Sections  1886(d)(5)(B)  and  1886(h)  of the Social Security
26    Act. The additional payment amounts  required  under  Section
27    1886(d)(5)(F)  of  the  Social  Security  Act,  for hospitals
28    serving a disproportionate share of  low-income  or  indigent
29    patients,  are not required under this Section.  For hospital
30    inpatient services rendered on or  after  July  1,  1995  and
31    before  July 1, 1997, the Illinois Department shall reimburse
32    hospitals using the relative weighting factors and  the  base
33    payment  rates  calculated  for  each  hospital  that were in
34    effect on June 30, 1995,  less  the  portion  of  such  rates
35    attributed  by the Illinois Department to the cost of medical
                            -47-           LRB9003523EGfgccr4
 1    education.
 2             (1)  The weighting factors established under Section
 3        1886(d)(4) of the Social Security Act shall not  be  used
 4        in   the  reimbursement  system  established  under  this
 5        Section.  Rather, the Illinois Department shall establish
 6        by rule Medicaid weighting factors  to  be  used  in  the
 7        reimbursement system established under this Section.
 8             (2)  The  Illinois  Department  shall define by rule
 9        those hospitals or distinct parts of hospitals that shall
10        be exempt from the reimbursement system established under
11        this Section.  In defining such hospitals,  the  Illinois
12        Department  shall take into consideration those hospitals
13        exempt from the Medicare Prospective Payment System as of
14        September 1, 1991.  For hospitals defined as exempt under
15        this subsection, the Illinois Department  shall  by  rule
16        establish a reimbursement system for payment of inpatient
17        hospital  services  rendered  on  and  after September 1,
18        1991.  For all hospitals that are children's hospitals as
19        defined in Section 5-5.02 of this Code, the reimbursement
20        methodology shall, through June  30,  1992,  net  of  all
21        applicable  fees, at least equal each children's hospital
22        1990 ICARE payment rates, indexed to the current year  by
23        application  of  the DRI hospital cost index from 1989 to
24        the year in which payments are  made.   Excepting  county
25        providers   as  defined  in  Article  XV  of  this  Code,
26        hospitals  licensed  under  the  University  of  Illinois
27        Hospital Act, and facilities  operated  by  the  Illinois
28        Department    of    Mental   Health   and   Developmental
29        Disabilities, for hospital inpatient services rendered on
30        or after July 1,  1995  and  before  July  1,  1997,  the
31        Illinois Department shall reimburse children's hospitals,
32        as  defined  in  89  Illinois Administrative Code Section
33        149.50(c)(3), at the rates in effect on  June  30,  1995,
34        and  shall  reimburse all other hospitals at the rates in
35        effect on June 30, 1995, less the portion of  such  rates
                            -48-           LRB9003523EGfgccr4
 1        attributed  by  the  Illinois  Department  to the cost of
 2        medical education.
 3             (3)  (Blank)
 4             (4)  Notwithstanding any  other  provision  of  this
 5        Section,  hospitals  that  on  August  31,  1991,  have a
 6        contract with the Illinois Department under  Section  3-4
 7        of  the  Illinois  Health Finance Reform Act may elect to
 8        continue  to  be  reimbursed  at  rates  stated  in  such
 9        contracts for general and specialty care.
10             (5)  In addition to any  payments  made  under  this
11        subsection  (a),  the  Illinois Department shall make the
12        adjustment payments required by Section  5-5.02  of  this
13        Code;   provided,  that  in  the  case  of  any  hospital
14        reimbursed under a per  case  methodology,  the  Illinois
15        Department  shall  add  an amount equal to the product of
16        the hospital's average length  of  stay,  less  one  day,
17        multiplied   by   20,  for  inpatient  hospital  services
18        rendered on or after September 1, 1991 and on  or  before
19        September 30, 1992.
20        (b)  (Blank)
21        (b-5)  Excepting  county  providers as defined in Article
22    XV of this Code, hospitals licensed under the  University  of
23    Illinois   Hospital  Act,  and  facilities  operated  by  the
24    Illinois  Department  of  Mental  Health  and   Developmental
25    Disabilities,  for  outpatient  services rendered on or after
26    July 1, 1995 and before July 1, 1997, the Illinois Department
27    shall reimburse  children's  hospitals,  as  defined  in  the
28    Illinois  Administrative  Code  Section  149.50(c)(3), at the
29    rates in effect on June 30, 1995, less that portion  of  such
30    rates attributed by the Illinois Department to the outpatient
31    indigent  volume  adjustment  and  shall  reimburse all other
32    hospitals at the rates in effect on June 30, 1995,  less  the
33    portions  of such rates attributed by the Illinois Department
34    to the cost  of  medical  education  and  attributed  by  the
35    Illinois   Department   to  the  outpatient  indigent  volume
                            -49-           LRB9003523EGfgccr4
 1    adjustment.
 2        (c)  In addition to any other payments under  this  Code,
 3    the    Illinois   Department   shall   develop   a   hospital
 4    disproportionate  share   reimbursement   methodology   that,
 5    effective  July  1,  1991,  through September 30, 1992, shall
 6    reimburse hospitals sufficiently to  expend  the  fee  monies
 7    described  in subsection (b) of Section 14-3 of this Code and
 8    the  federal  matching  funds  received   by   the   Illinois
 9    Department  as  a result of expenditures made by the Illinois
10    Department as required by this  subsection  (c)  and  Section
11    14-2  that  are  attributable  to fee monies deposited in the
12    Fund, less  amounts  applied  to  adjustment  payments  under
13    Section 5-5.02.
14        (d)  Critical Care Access Payments.
15             (1)  In  addition  to  any other payments made under
16        this  Code,  the  Illinois  Department  shall  develop  a
17        reimbursement methodology that shall  reimburse  Critical
18        Care  Access  Hospitals for the specialized services that
19        qualify  them  as  Critical  Care  Access  Hospitals.  No
20        adjustment payments shall be made under  this  subsection
21        on or after July 1, 1995.
22             (2)  "Critical  Care Access Hospitals" includes, but
23        is not limited to, hospitals that meet at  least  one  of
24        the following criteria:
25                  (A)  Hospitals    located    outside    of    a
26             metropolitan statistical area that are designated as
27             Level  II  Perinatal  Centers  and  that  provide  a
28             disproportionate  share  of  perinatal  services  to
29             recipients; or
30                  (B)  Hospitals  that  are designated as Level I
31             Trauma Centers  (adult  or  pediatric)  and  certain
32             Level   II  Trauma  Centers  as  determined  by  the
33             Illinois Department; or
34                  (C)  Hospitals    located    outside    of    a
35             metropolitan statistical area  and  that  provide  a
                            -50-           LRB9003523EGfgccr4
 1             disproportionate  share  of  obstetrical services to
 2             recipients.
 3        (e)  Inpatient  high  volume  adjustment.   For  hospital
 4    inpatient services, effective with rate periods beginning  on
 5    or  after  October  1,  1993,  in  addition to rates paid for
 6    inpatient services by the Illinois Department,  the  Illinois
 7    Department  shall  make  adjustment  payments  for  inpatient
 8    services  furnished  by  Medicaid high volume hospitals.  The
 9    Illinois Department shall  establish  by  rule  criteria  for
10    qualifying  as  a  Medicaid  high  volume  hospital and shall
11    establish by rule a reimbursement methodology for calculating
12    these adjustment payments to Medicaid high volume  hospitals.
13    No adjustment payment shall be made under this subsection for
14    services rendered on or after July 1, 1995.
15        (f)  The  Illinois  Department  shall  modify its current
16    rules governing  adjustment  payments  for  targeted  access,
17    critical  care  access,  and  uncompensated  care to classify
18    those  adjustment  payments  as   not   being   payments   to
19    disproportionate  share  hospitals  under  Title  XIX  of the
20    federal  Social  Security  Act.  Rules  adopted  under   this
21    subsection  shall  not  be effective with respect to services
22    rendered on or after July 1, 1995.  The  Illinois  Department
23    has no obligation to adopt or implement any rules or make any
24    payments  under  this  subsection for services rendered on or
25    after July 1, 1995.
26        (f-5)  The State recognizes that adjustment  payments  to
27    hospitals  providing  certain  services  or incurring certain
28    costs may be necessary to assure that recipients  of  medical
29    assistance   have   adequate   access  to  necessary  medical
30    services.  These adjustments include  payments  for  teaching
31    costs   and   uncompensated  care,  trauma  center  payments,
32    rehabilitation hospital payments, perinatal center  payments,
33    obstetrical care payments, targeted access payments, Medicaid
34    high   volume   payments,   and  outpatient  indigent  volume
35    payments.   On  or  before  April  1,  1995,   the   Illinois
                            -51-           LRB9003523EGfgccr4
 1    Department   shall   issue   recommendations   regarding  (i)
 2    reimbursement mechanisms or adjustment  payments  to  reflect
 3    these  costs  and  services,  including  methods by which the
 4    payments may be  calculated  and  the  method  by  which  the
 5    payments  may  be financed, and (ii) reimbursement mechanisms
 6    or adjustment payments  to  reflect  costs  and  services  of
 7    federally qualified health centers with respect to recipients
 8    of medical assistance.
 9        (g)  If  one  or  more  hospitals  file suit in any court
10    challenging  any  part  of  this  Article  XIV,  payments  to
11    hospitals under this Article XIV shall be made  only  to  the
12    extent  that  sufficient monies are available in the Fund and
13    only to the extent that  any  monies  in  the  Fund  are  not
14    prohibited from disbursement under any order of the court.
15        (h)  Payments    under   the   disbursement   methodology
16    described in this Section are  subject  to  approval  by  the
17    federal government in an appropriate State plan amendment.
18        (i)  The   Illinois  Department  may  by  rule  establish
19    criteria  for  and  develop  methodologies   for   adjustment
20    payments to hospitals participating under this Article.
21    (Source:  P.A.  88-88;  88-554,  eff.  7-26-94;  89-21,  eff.
22    7-1-95; 89-499, eff. 6-28-96; revised 8-26-96.)
23        (Text of Section after amendment by P.A. 89-507)
24        Sec. 14-8.  Disbursements to Hospitals.
25        (a)  For  inpatient  hospital  services  rendered  on and
26    after  September  1,  1991,  the  Illinois  Department  shall
27    reimburse hospitals for inpatient services  at  an  inpatient
28    payment  rate  calculated  for  each  hospital based upon the
29    Medicare Prospective Payment System as set forth in  Sections
30    1886(b),  (d),  (g),  and  (h) of the federal Social Security
31    Act,  and   the   regulations,   policies,   and   procedures
32    promulgated  thereunder,  except as modified by this Section.
33    Payment rates for inpatient hospital services rendered on  or
34    after  September  1, 1991 and on or before September 30, 1992
                            -52-           LRB9003523EGfgccr4
 1    shall be calculated using the  Medicare  Prospective  Payment
 2    rates  in  effect  on  September  1, 1991.  Payment rates for
 3    inpatient hospital services rendered on or after  October  1,
 4    1992  and  on  or  before  March 31, 1994 shall be calculated
 5    using the Medicare Prospective Payment  rates  in  effect  on
 6    September  1,  1992.    Payment  rates for inpatient hospital
 7    services  rendered  on  or  after  April  1,  1994  shall  be
 8    calculated  using  the  Medicare  Prospective  Payment  rates
 9    (including the Medicare grouping  methodology  and  weighting
10    factors  as  adjusted  pursuant  to  paragraph  (1)  of  this
11    subsection)   in   effect  90  days  prior  to  the  date  of
12    admission.  For services rendered on or after July  1,  1995,
13    the   reimbursement   methodology   implemented   under  this
14    subsection shall not  include  those  costs  referred  to  in
15    Sections  1886(d)(5)(B)  and  1886(h)  of the Social Security
16    Act. The additional payment amounts  required  under  Section
17    1886(d)(5)(F)  of  the  Social  Security  Act,  for hospitals
18    serving a disproportionate share of  low-income  or  indigent
19    patients,  are not required under this Section.  For hospital
20    inpatient services rendered on or  after  July  1,  1995  and
21    before  July 1, 1997, the Illinois Department shall reimburse
22    hospitals using the relative weighting factors and  the  base
23    payment  rates  calculated  for  each  hospital  that were in
24    effect on June 30, 1995,  less  the  portion  of  such  rates
25    attributed  by the Illinois Department to the cost of medical
26    education.
27             (1)  The weighting factors established under Section
28        1886(d)(4) of the Social Security Act shall not  be  used
29        in   the  reimbursement  system  established  under  this
30        Section.  Rather, the Illinois Department shall establish
31        by rule Medicaid weighting factors  to  be  used  in  the
32        reimbursement system established under this Section.
33             (2)  The  Illinois  Department  shall define by rule
34        those hospitals or distinct parts of hospitals that shall
35        be exempt from the reimbursement system established under
                            -53-           LRB9003523EGfgccr4
 1        this Section.  In defining such hospitals,  the  Illinois
 2        Department  shall take into consideration those hospitals
 3        exempt from the Medicare Prospective Payment System as of
 4        September 1, 1991.  For hospitals defined as exempt under
 5        this subsection, the Illinois Department  shall  by  rule
 6        establish a reimbursement system for payment of inpatient
 7        hospital  services  rendered  on  and  after September 1,
 8        1991.  For all hospitals that are children's hospitals as
 9        defined in Section 5-5.02 of this Code, the reimbursement
10        methodology shall, through June  30,  1992,  net  of  all
11        applicable  fees, at least equal each children's hospital
12        1990 ICARE payment rates, indexed to the current year  by
13        application  of  the DRI hospital cost index from 1989 to
14        the year in which payments are  made.   Excepting  county
15        providers   as  defined  in  Article  XV  of  this  Code,
16        hospitals  licensed  under  the  University  of  Illinois
17        Hospital Act, and facilities operated by  the  Department
18        of  Mental  Health and Developmental Disabilities (or its
19        successor, the Department of Human Services) for hospital
20        inpatient services rendered on or after July 1, 1995  and
21        before  July  1,  1997,  the  Illinois  Department  shall
22        reimburse children's hospitals, as defined in 89 Illinois
23        Administrative Code Section 149.50(c)(3), at the rates in
24        effect  on  June  30, 1995, and shall reimburse all other
25        hospitals at the rates in effect on June 30,  1995,  less
26        the  portion  of  such  rates  attributed by the Illinois
27        Department to the cost of medical education.
28             (3)  (Blank)
29             (4)  Notwithstanding any  other  provision  of  this
30        Section,  hospitals  that  on  August  31,  1991,  have a
31        contract with the Illinois Department under  Section  3-4
32        of  the  Illinois  Health Finance Reform Act may elect to
33        continue  to  be  reimbursed  at  rates  stated  in  such
34        contracts for general and specialty care.
35             (5)  In addition to any  payments  made  under  this
                            -54-           LRB9003523EGfgccr4
 1        subsection  (a),  the  Illinois Department shall make the
 2        adjustment payments required by Section  5-5.02  of  this
 3        Code;   provided,  that  in  the  case  of  any  hospital
 4        reimbursed under a per  case  methodology,  the  Illinois
 5        Department  shall  add  an amount equal to the product of
 6        the hospital's average length  of  stay,  less  one  day,
 7        multiplied   by   20,  for  inpatient  hospital  services
 8        rendered on or after September 1, 1991 and on  or  before
 9        September 30, 1992.
10        (b)  (Blank)
11        (b-5)  Excepting  county  providers as defined in Article
12    XV of this Code, hospitals licensed under the  University  of
13    Illinois   Hospital  Act,  and  facilities  operated  by  the
14    Illinois  Department  of  Mental  Health  and   Developmental
15    Disabilities  (or  its  successor,  the  Department  of Human
16    Services) for outpatient services rendered on or  after  July
17    1,  1995  and  before  July  1, 1997, the Illinois Department
18    shall reimburse  children's  hospitals,  as  defined  in  the
19    Illinois  Administrative  Code  Section  149.50(c)(3), at the
20    rates in effect on June 30, 1995, less that portion  of  such
21    rates attributed by the Illinois Department to the outpatient
22    indigent  volume  adjustment  and  shall  reimburse all other
23    hospitals at the rates in effect on June 30, 1995,  less  the
24    portions  of such rates attributed by the Illinois Department
25    to the cost  of  medical  education  and  attributed  by  the
26    Illinois   Department   to  the  outpatient  indigent  volume
27    adjustment.
28        (c)  In addition to any other payments under  this  Code,
29    the    Illinois   Department   shall   develop   a   hospital
30    disproportionate  share   reimbursement   methodology   that,
31    effective  July  1,  1991,  through September 30, 1992, shall
32    reimburse hospitals sufficiently to  expend  the  fee  monies
33    described  in subsection (b) of Section 14-3 of this Code and
34    the  federal  matching  funds  received   by   the   Illinois
35    Department  as  a result of expenditures made by the Illinois
                            -55-           LRB9003523EGfgccr4
 1    Department as required by this  subsection  (c)  and  Section
 2    14-2  that  are  attributable  to fee monies deposited in the
 3    Fund, less  amounts  applied  to  adjustment  payments  under
 4    Section 5-5.02.
 5        (d)  Critical Care Access Payments.
 6             (1)  In  addition  to  any other payments made under
 7        this  Code,  the  Illinois  Department  shall  develop  a
 8        reimbursement methodology that shall  reimburse  Critical
 9        Care  Access  Hospitals for the specialized services that
10        qualify  them  as  Critical  Care  Access  Hospitals.  No
11        adjustment payments shall be made under  this  subsection
12        on or after July 1, 1995.
13             (2)  "Critical  Care Access Hospitals" includes, but
14        is not limited to, hospitals that meet at  least  one  of
15        the following criteria:
16                  (A)  Hospitals    located    outside    of    a
17             metropolitan statistical area that are designated as
18             Level  II  Perinatal  Centers  and  that  provide  a
19             disproportionate  share  of  perinatal  services  to
20             recipients; or
21                  (B)  Hospitals  that  are designated as Level I
22             Trauma Centers  (adult  or  pediatric)  and  certain
23             Level   II  Trauma  Centers  as  determined  by  the
24             Illinois Department; or
25                  (C)  Hospitals    located    outside    of    a
26             metropolitan statistical area  and  that  provide  a
27             disproportionate  share  of  obstetrical services to
28             recipients.
29        (e)  Inpatient  high  volume  adjustment.   For  hospital
30    inpatient services, effective with rate periods beginning  on
31    or  after  October  1,  1993,  in  addition to rates paid for
32    inpatient services by the Illinois Department,  the  Illinois
33    Department  shall  make  adjustment  payments  for  inpatient
34    services  furnished  by  Medicaid high volume hospitals.  The
35    Illinois Department shall  establish  by  rule  criteria  for
                            -56-           LRB9003523EGfgccr4
 1    qualifying  as  a  Medicaid  high  volume  hospital and shall
 2    establish by rule a reimbursement methodology for calculating
 3    these adjustment payments to Medicaid high volume  hospitals.
 4    No adjustment payment shall be made under this subsection for
 5    services rendered on or after July 1, 1995.
 6        (f)  The  Illinois  Department  shall  modify its current
 7    rules governing  adjustment  payments  for  targeted  access,
 8    critical  care  access,  and  uncompensated  care to classify
 9    those  adjustment  payments  as   not   being   payments   to
10    disproportionate  share  hospitals  under  Title  XIX  of the
11    federal  Social  Security  Act.  Rules  adopted  under   this
12    subsection  shall  not  be effective with respect to services
13    rendered on or after July 1, 1995.  The  Illinois  Department
14    has no obligation to adopt or implement any rules or make any
15    payments  under  this  subsection for services rendered on or
16    after July 1, 1995.
17        (f-5)  The State recognizes that adjustment  payments  to
18    hospitals  providing  certain  services  or incurring certain
19    costs may be necessary to assure that recipients  of  medical
20    assistance   have   adequate   access  to  necessary  medical
21    services.  These adjustments include  payments  for  teaching
22    costs   and   uncompensated  care,  trauma  center  payments,
23    rehabilitation hospital payments, perinatal center  payments,
24    obstetrical care payments, targeted access payments, Medicaid
25    high   volume   payments,   and  outpatient  indigent  volume
26    payments.   On  or  before  April  1,  1995,   the   Illinois
27    Department   shall   issue   recommendations   regarding  (i)
28    reimbursement mechanisms or adjustment  payments  to  reflect
29    these  costs  and  services,  including  methods by which the
30    payments may be  calculated  and  the  method  by  which  the
31    payments  may  be financed, and (ii) reimbursement mechanisms
32    or adjustment payments  to  reflect  costs  and  services  of
33    federally qualified health centers with respect to recipients
34    of medical assistance.
35        (g)  If  one  or  more  hospitals  file suit in any court
                            -57-           LRB9003523EGfgccr4
 1    challenging  any  part  of  this  Article  XIV,  payments  to
 2    hospitals under this Article XIV shall be made  only  to  the
 3    extent  that  sufficient monies are available in the Fund and
 4    only to the extent that  any  monies  in  the  Fund  are  not
 5    prohibited from disbursement under any order of the court.
 6        (h)  Payments    under   the   disbursement   methodology
 7    described in this Section are  subject  to  approval  by  the
 8    federal government in an appropriate State plan amendment.
 9        (i)  The   Illinois  Department  may  by  rule  establish
10    criteria  for  and  develop  methodologies   for   adjustment
11    payments to hospitals participating under this Article.
12    (Source:  P.A.  88-88;  88-554,  eff.  7-26-94;  89-21,  eff.
13    7-1-95;  89-499,  eff.  6-28-96; 89-507, eff. 7-1-97; revised
14    8-26-96.)
15        Section 40.  The Unified Code of Corrections  is  amended
16    by changing Section 3-4-1 as follows:
17        (730 ILCS 5/3-4-1) (from Ch. 38, par. 1003-4-1)
18        Sec.  3-4-1.  Gifts  and  Grants;  Special  Trusts Funds;
19    Department of Corrections Reimbursement Fund.
20        (a)  The Department may accept, receive and use, for  and
21    in  behalf  of the State, any moneys, goods or services given
22    for general purposes of this  Code  Chapter  by  the  federal
23    government  or  from  any  other  source,  public or private,
24    including collections from inmates, reimbursement of payments
25    under the Workers' Compensation  Act,  and  commissions  from
26    inmate collect call telephone systems under an agreement with
27    the  Department  of  Central  Management Services.  For these
28    purposes the Department and may comply with  such  conditions
29    and  enter  into  such agreements upon such covenants, terms,
30    and conditions  as  the  Department  may  deem  necessary  or
31    desirable,  if  the  agreement  is not in conflict with State
32    law.
33        (b)  The Department of Corrections Reimbursement Fund  is
                            -58-           LRB9003523EGfgccr4
 1    hereby  created as a special fund in the State treasury.  The
 2    moneys  deposited  into   the   Department   of   Corrections
 3    Reimbursement Fund shall be appropriated to the Department of
 4    Corrections for the expenses of the Department.
 5        The  following  shall be deposited into the Department of
 6    Corrections Reimbursement Fund:
 7             (i)  Moneys received or recovered by the  Department
 8        of Corrections as reimbursement for expenses incurred for
 9        the incarceration of convicted persons.
10             (ii)  Moneys received or recovered by the Department
11        as  reimbursement  of  payments  made  under the Workers'
12        Compensation Act.
13             (iii)  Moneys  received   by   the   Department   as
14        commissions from inmate collect call telephone systems.
15             (iv)  Moneys received or recovered by the Department
16        as  reimbursement for expenses incurred by the employment
17        of persons referred to the Department as participants  in
18        the federal Job Training Partnership Act programs.
19             (v)  Federal  moneys,  including  reimbursement  and
20    advances  for  services rendered or to be rendered and moneys
21    for  other  than  educational  purposes,   under   grant   or
22    contract.,  shall  be  deposited with the State Treasurer and
23    held and disbursed by him under  Section  1  of  "An  Act  in
24    relation  to  the  receipt, custody and disbursement of money
25    allotted by the  United  States  of  America  or  any  agency
26    thereof for use in this State", approved July 3, 1939, as now
27    or hereafter amended.
28        (c)  Other  moneys  received by the Department, including
29    reimbursement for services rendered under grant or  contract,
30    may  be  deposited  in special trust funds established by the
31    Department with the  State  Treasurer,  to  be  held  by  him
32    outside  the  State Treasury as ex officio custodian in banks
33    or savings and loan associations which have been approved  by
34    him  as State depositories under "AN ACT in relation to State
35    moneys", and  with  respect  to  such  moneys,  he  shall  be
                            -59-           LRB9003523EGfgccr4
 1    entitled to the same rights and privileges as are provided by
 2    such  Act with respect to moneys in the Treasury of the State
 3    of Illinois.
 4    (Source: P.A. 83-541.)
 5        Section 95.  No acceleration or delay.   Where  this  Act
 6    makes changes in a statute that is represented in this Act by
 7    text  that  is not yet or no longer in effect (for example, a
 8    Section represented by multiple versions), the  use  of  that
 9    text  does  not  accelerate or delay the taking effect of (i)
10    the changes made by this Act or (ii) provisions derived  from
11    any other Public Act.
12        Section  99.  Effective date.  This Act takes effect July
13    1, 1997.".
14        Submitted on                     , 1997.
15    ______________________________  _____________________________
16    Senator Rauschenberger          Representative Hannig
17    ______________________________  _____________________________
18    Senator Donahue                 Representative Schoenberg
19    ______________________________  _____________________________
20    Senator Weaver                  Representative Currie
21    ______________________________  _____________________________
22    Senator Trotter                 Representative Churchill
23    ______________________________  _____________________________
24    Senator del Valle               Representative Rutherford
25    Committee for the Senate        Committee for the House

[ Top ]