State of Illinois
90th General Assembly
Legislation

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


[ Introduced ][ Engrossed ][ House Amendment 001 ]
[ Conference Committee Report 001 ]

90_SB1101enr

      New Act
          Creates the FY1998 Budget Implementation  Act.   Provides
      that  the  purpose of the Act is to make the changes in State
      programs that  are  necessary  to  implement  the  Governor's
      FY1998 budget recommendations.  Effective immediately.
                                                     LRB9003523REmb
SB1101 Enrolled                                LRB9003523REmb
 1        AN  ACT in relation to implementation of the State fiscal
 2    year 1998 budget, amending named Acts.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  5.  The Illinois Administrative Procedure Act is
 6    amended by changing Sections 1-5 and 5-45 as follows:
 7        (5 ILCS 100/1-5) (from Ch. 127, par. 1001-5)
 8        Sec. 1-5.  Applicability.
 9        (a)  This Act applies to every agency as defined in  this
10    Act.   Beginning January 1, 1978, in case of conflict between
11    the provisions of this Act and the Act creating or conferring
12    power on an agency, this Act shall control.  If, however,  an
13    agency  (or its predecessor in the case of an agency that has
14    been consolidated or reorganized) has existing procedures  on
15    July  1, 1977, specifically for contested cases or licensing,
16    those existing provisions control, except that this exception
17    respecting contested cases and licensing does  not  apply  if
18    the  Act creating or conferring power on the agency adopts by
19    express reference the provisions of this Act.  Where the  Act
20    creating   or  conferring  power  on  an  agency  establishes
21    administrative procedures not  covered  by  this  Act,  those
22    procedures shall remain in effect.
23        (b)  The  provisions  of  this  Act  do  not apply to (i)
24    preliminary hearings, investigations, or practices  where  no
25    final  determinations affecting State funding are made by the
26    State Board of Education, (ii) legal  opinions  issued  under
27    Section  2-3.7 of the School Code, (iii) as to State colleges
28    and   universities,   their   disciplinary   and    grievance
29    proceedings,  academic  irregularity  and  capricious grading
30    proceedings, and admission standards and procedures, and (iv)
31    the  class  specifications  for  positions   and   individual
SB1101 Enrolled            -2-                 LRB9003523REmb
 1    position  descriptions  prepared  and  maintained  under  the
 2    Personnel  Code.   Those class specifications shall, however,
 3    be made reasonably available to the public for inspection and
 4    copying. The provisions of this Act do not apply to  hearings
 5    under  Section  20  of  the  Uniform Disposition of Unclaimed
 6    Property Act.
 7        (c)  Section 5-35 of this Act relating to procedures  for
 8    rulemaking does not apply to the following:
 9             (1)  Rules  adopted  by  the Pollution Control Board
10        that, in accordance with Section 7.2 of the Environmental
11        Protection Act, are identical  in  substance  to  federal
12        regulations    or   amendments   to   those   regulations
13        implementing the following: Sections  3001,  3002,  3003,
14        3004,  3005,  and  9003  of the Solid Waste Disposal Act;
15        Section 105 of the Comprehensive Environmental  Response,
16        Compensation, and Liability Act of 1980; Sections 307(b),
17        307(c),  307(d),  402(b)(8), and 402(b)(9) of the Federal
18        Water  Pollution  Control  Act;  and  Sections   1412(b),
19        1414(c),  1417(a), 1421, and 1445(a) of the Safe Drinking
20        Water Act.
21             (2)  Rules adopted by the  Pollution  Control  Board
22        that  establish  or  amend  standards for the emission of
23        hydrocarbons and carbon monoxide  from  gasoline  powered
24        motor   vehicles  subject  to  inspection  under  Section
25        13A-105 of the Vehicle Emissions Inspection Law and rules
26        adopted under Section 13B-20  of  the  Vehicle  Emissions
27        Inspection Law of 1995.
28             (3)  Procedural   rules  adopted  by  the  Pollution
29        Control Board governing  requests  for  exceptions  under
30        Section 14.2 of the Environmental Protection Act.
31             (4)  The  Pollution  Control Board's grant, pursuant
32        to an adjudicatory determination, of an adjusted standard
33        for persons who can justify an adjustment consistent with
34        subsection  (a)  of  Section  27  of  the   Environmental
SB1101 Enrolled            -3-                 LRB9003523REmb
 1        Protection Act.
 2             (5)  Rules  adopted  by  the Pollution Control Board
 3        that  are  identical  in  substance  to  the  regulations
 4        adopted by the Office of the  State  Fire  Marshal  under
 5        clause (ii) of paragraph (b) of subsection (3) of Section
 6        2 of the Gasoline Storage Act.
 7        (d)  Pay  rates  established  under  Section  8a  of  the
 8    Personnel  Code  shall be amended or repealed pursuant to the
 9    process set forth in Section 5-50 within  30  days  after  it
10    becomes  necessary  to  do  so  due to a conflict between the
11    rates and the terms  of  a  collective  bargaining  agreement
12    covering  the  compensation  of  an  employee subject to that
13    Code.
14    (Source: P.A. 87-823; 88-533.)
15        (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
16        Sec. 5-45.  Emergency rulemaking.
17        (a)  "Emergency" means the  existence  of  any  situation
18    that  any agency finds reasonably constitutes a threat to the
19    public interest, safety, or welfare.
20        (b)  If any agency finds that an  emergency  exists  that
21    requires  adoption of a rule upon fewer days than is required
22    by Section 5-40 and states in writing its  reasons  for  that
23    finding, the agency may adopt an emergency rule without prior
24    notice   or   hearing  upon  filing  a  notice  of  emergency
25    rulemaking with the Secretary of State  under  Section  5-70.
26    The  notice  shall include the text of the emergency rule and
27    shall be published in the Illinois Register.  Consent  orders
28    or  other  court orders adopting settlements negotiated by an
29    agency  may  be  adopted  under  this  Section.   Subject  to
30    applicable  constitutional  or   statutory   provisions,   an
31    emergency  rule  becomes  effective  immediately  upon filing
32    under Section 5-65 or at a stated date  less  than  10   days
33    thereafter.   The  agency's  finding  and  a statement of the
SB1101 Enrolled            -4-                 LRB9003523REmb
 1    specific reasons for the finding  shall  be  filed  with  the
 2    rule.   The  agency  shall  take  reasonable  and appropriate
 3    measures to make emergency rules known to the persons who may
 4    be affected by them.
 5        (c)  An emergency rule may be effective for a  period  of
 6    not longer than 150 days, but the agency's authority to adopt
 7    an  identical  rule  under Section 5-40 is not precluded.  No
 8    emergency rule may be adopted more than once in any 24  month
 9    period,   except  that  this  limitation  on  the  number  of
10    emergency rules that may be adopted in a 24 month period does
11    not apply to (i) emergency rules that make additions  to  and
12    deletions  from  the  Drug Manual under Section 5-5.16 of the
13    Illinois Public Aid Code or the generic drug formulary  under
14    Section  3.14  of the Illinois Food, Drug and Cosmetic Act or
15    (ii) emergency rules adopted by the Pollution  Control  Board
16    before  July  1,  1997 to implement portions of the Livestock
17    Management Facilities  Act.   Two  or  more  emergency  rules
18    having  substantially  the  same  purpose and effect shall be
19    deemed to be a single rule for purposes of this Section.
20        (d)  In order to provide for the expeditious  and  timely
21    implementation  of  the  State's  fiscal  year  1998  budget,
22    emergency rules to implement any provision of this amendatory
23    Act  of  1997  or any other budget initiative for fiscal year
24    1998 may be adopted in accordance with this  Section  by  the
25    agency   charged   with   administering   that  provision  or
26    initiative,  except  that  the  24-month  limitation  on  the
27    adoption of emergency rules and the  provisions  of  Sections
28    5-115  and  5-125  do  not  apply to rules adopted under this
29    subsection (d).  The adoption of emergency  rules  authorized
30    by  this  subsection  (d) shall be deemed to be necessary for
31    the public interest, safety, and welfare.
32    (Source: P.A. 89-714, eff. 2-21-97.)
33        Section 10.  The Narcotic Control Division Abolition  Act
SB1101 Enrolled            -5-                 LRB9003523REmb
 1    is amended by changing Section 7 as follows:
 2        (20 ILCS 2620/7) (from Ch. 127, par. 55j)
 3        Sec. 7.  Expenditures; evidence; forfeited property.
 4        (a)  The  Director  and  the inspectors appointed by him,
 5    when authorized by the Director, may expend such sums as  the
 6    Director  deems  necessary  in  the  purchase  of  controlled
 7    substances and cannabis for evidence and in the employment of
 8    persons to obtain evidence.
 9        Such sums to be expended shall be advanced to the officer
10    who  is  to  make  such  purchase  or  employment  from funds
11    appropriated or made available by law for the support or  use
12    of   the  Department  on  vouchers  therefor  signed  by  the
13    Director. The Director and such officers  are  authorized  to
14    maintain  one  or  more commercial checking accounts with any
15    State banking corporation or corporations organized under  or
16    subject  to  the  Illinois  Banking  Act  for the deposit and
17    withdrawal of moneys to be used for the purchase of  evidence
18    and  for  the  employment  of  persons  to  obtain  evidence;
19    provided  that  no check may be written on nor any withdrawal
20    made from any such account except on the  written  signatures
21    of  2 persons designated by the Director to write such checks
22    and make such withdrawals.
23        (b)  The Director is authorized to maintain one  or  more
24    commercial  bank  accounts with any State banking corporation
25    or corporations organized under or subject  to  the  Illinois
26    Banking  Act, as now or hereafter amended, for the deposit or
27    withdrawal  of  (i)  moneys  forfeited  to  the   Department,
28    including  the proceeds of the sale of forfeited property, as
29    provided in Section 2 of the  State  Officers  and  Employees
30    Money  Disposition  Act, as now or hereafter amended, pending
31    disbursement to participating agencies  and  deposit  of  the
32    Department's  share  as  provided in subsection (c), and (ii)
33    all moneys being held as evidence by the Department,  pending
SB1101 Enrolled            -6-                 LRB9003523REmb
 1    final  court  disposition;  provided  that  no  check  may be
 2    written on or any  withdrawal  made  from  any  such  account
 3    except  on  the written signatures of 2 persons designated by
 4    the Director to write such checks and make such withdrawals.
 5        (c)  All moneys received by the Illinois State Police  as
 6    their share of forfeited funds (including the proceeds of the
 7    sale  of  forfeited  property)  received pursuant to the Drug
 8    Asset Forfeiture Procedure Act, the Cannabis Control Act, the
 9    Illinois  Controlled  Substances   Act,   the   Environmental
10    Protection  Act, or any other Illinois law shall be deposited
11    into the State Asset Forfeiture Fund, which is hereby created
12    as an interest-bearing special fund in the State treasury.
13        All moneys received by the Illinois State Police as their
14    share of forfeited funds (including the proceeds of the  sale
15    of forfeited property) received pursuant to federal equitable
16    sharing  transfers  shall be deposited into the Federal Asset
17    Forfeiture   Fund,   which   is   hereby   created   as    an
18    interest-bearing special fund in the State treasury.
19        The moneys deposited into the State Asset Forfeiture Fund
20    and  the  Federal Asset Forfeiture Fund shall be appropriated
21    to the Department of State Police and  may  be  used  by  the
22    Illinois State Police in accordance with law.
23    (Source: P.A. 85-1291.)
24        Section  15.   The State Finance Act is amended by adding
25    Sections 5.449, 5.450, 5.451, 5.452, and 11.5 as follows:
26        (30 ILCS 105/5.449 new)
27        Sec. 5.449.   The  Department  of  Corrections  Education
28    Fund.
29        (30 ILCS 105/5.450 new)
30        Sec.  5.450.  The Department of Corrections Reimbursement
31    Fund.
SB1101 Enrolled            -7-                 LRB9003523REmb
 1        (30 ILCS 105/5.451 new)
 2        Sec. 5.451.  The State Asset Forfeiture Fund.
 3        (30 ILCS 105/5.452 new)
 4        Sec. 5.452.  The Federal Asset Forfeiture Fund.
 5        (30 ILCS 105/11.5 new)
 6        Sec. 11.5.  Agencies with procurement  authority.   If  a
 7    State agency with authority over a procurement or category of
 8    procurements   requires  its  written  signature  or  written
 9    approval on contracts subject to that authority,  the  agency
10    shall  notify  the  State  Comptroller  in  writing  of  this
11    requirement.      After  receiving  that  notice,  the  State
12    Comptroller shall neither file nor approve or issue a warrant
13    under an affected  contract,  whether  written  or  oral  and
14    regardless  of  the  dollar amount involved, unless and until
15    the contract has been signed or approved in  writing  by  the
16    agency with procurement authority.
17        (30 ILCS 105/6z-13 rep.)
18        Section   16.   The  State  Finance  Act  is  amended  by
19    repealing Section 6z-13.
20        Section 20.  The Illinois  Pension  Code  is  amended  by
21    adding Section 15-158.3 as follows:
22        (40 ILCS 5/15-158.3 new)
23        Sec.  15-158.3.   Reports  on  cost  reduction; effect on
24    retirement at any age with 30 years of service.
25        (a)  On or before November 15,  2001  and  on  or  before
26    November  15th  of each year thereafter, the Board shall have
27    the System's actuary prepare a report showing,  on  a  fiscal
28    year  by  fiscal year basis, the actual rate of participation
29    in the optional  retirement  program  authorized  by  Section
SB1101 Enrolled            -8-                 LRB9003523REmb
 1    15-158.2,  (i)  by  employees  of the System's covered higher
 2    educational institutions who  were  hired  on  or  after  the
 3    implementation  date  of  the optional retirement program and
 4    (ii) by other System participants.
 5        The actuary's report must also  quantify  the  extent  to
 6    which  employee  optional  retirement  plan participation has
 7    reduced the State's required  contributions  to  the  System,
 8    expressed  both  in  dollars  and  as a percentage of covered
 9    payroll, in relation to what the State's contributions to the
10    System would have been (1) if the optional retirement program
11    had not been implemented, and (2) if 45% of employees of  the
12    System's  covered  higher  educational  institutions who were
13    hired on or after the implementation  date  of  the  optional
14    retirement program had elected to participate in the optional
15    retirement  program  and 10% of other System participants had
16    transferred to the optional retirement program following  its
17    implementation.
18        (b)  On  or before November 15th of 2001 and on or before
19    November 15th of each year thereafter, the Illinois Board  of
20    Higher  Education,  in  conjunction  with  the  Bureau of the
21    Budget, shall prepare a report showing, on a fiscal  year  by
22    fiscal  year  basis, the amount by which the costs associated
23    with compensable sick leave have been reduced as a result  of
24    the  termination  of  compensable  sick  leave accrual on and
25    after January  1,  1998  by  employees  of  higher  education
26    institutions who are participants in the System.
27        (c)  On  or  before  November 15 of 2001 and on or before
28    November 15th of each  year  thereafter,  the  Department  of
29    Central  Management  Services shall prepare a report showing,
30    on a fiscal year by fiscal year basis, the  amount  by  which
31    the  State's  cost  for  health  insurance coverage under the
32    State Employees Group Insurance Act of 1971 for  retirees  of
33    the  State's universities and their survivors has declined as
34    a result of requiring some of those retirees and survivors to
SB1101 Enrolled            -9-                 LRB9003523REmb
 1    contribute to the  cost  of  their  basic  health  insurance.
 2    These year-by-year reductions in cost must be quantified both
 3    in  dollars  and  as a level percentage of payroll covered by
 4    the System.
 5        (d)  The reports required under subsections (a), (b), and
 6    (c) shall be disseminated to  the  Board,  the  Pension  Laws
 7    Commission,  the Illinois Economic and Fiscal Commission, the
 8    Illinois Board of Higher Education, and the Governor.
 9        (e)  The reports required under subsections (a), (b), and
10    (c)  shall  be  taken  into  account  by  the  Pension   Laws
11    Commission   in   making  any  recommendation  to  extend  by
12    legislation beyond  December  31,  2002  the  provision  that
13    allows  a  System participant to retire at any age with 30 or
14    more years of service as authorized in Section  15-135.    If
15    that  provision  is extended beyond December 31, 2002, and if
16    the most recent report under subsection  (a)  indicates  that
17    actual  State  contributions  to  the  System  for the period
18    during which the optional  retirement  program  has  been  in
19    operation  have  exceeded  the  projected State contributions
20    under the assumptions in clause (2) of subsection  (a),  then
21    any  extension of the provision beyond December 31, 2002 must
22    require that the System's higher educational institutions and
23    agencies cover  any  funding  deficiency  through  an  annual
24    payment  to  the System out of appropriate resources of their
25    own.
26        Section 25.  The  School  Code  is  amended  by  changing
27    Sections 13-44.4 and 18-8 as follows:
28        (105 ILCS 5/13-44.4) (from Ch. 122, par. 13-44.4)
29        Sec.  13-44.4.  Department of Corrections Education Fund;
30    budget.  An Educational Fund  shall  be  established  wherein
31    All  moneys received from the Common School Fund, federal aid
32    and grants, vocational and educational funds and grants,  and
SB1101 Enrolled            -10-                LRB9003523REmb
 1    gifts and grants by individuals, foundations and corporations
 2    for   educational   purposes  shall  be  deposited  into  the
 3    Department of Corrections Education  Fund,  which  is  hereby
 4    created  as  a  special  fund  in  the  State  Treasury.  The
 5    Department of Corrections Education Fund The Educational Fund
 6    shall be kept separate from general funds and shall  be  held
 7    by  the State Treasurer as ex-officio custodian in a separate
 8    fund, and shall be used, subject to appropriation, to pay the
 9    expense of the schools and school district of the  Department
10    of  Corrections  together  with  and  supplemental to regular
11    appropriations to the Department  for  educational  purposes,
12    including,  but not limited to, the cost of teacher salaries,
13    supplies  and   materials,   building   upkeep   and   costs,
14    transportation,    scholarships,    non-academic    salaries,
15    equipment and other school costs.
16        Beginning  in  1972,  the  Board  of  Education shall, by
17    November 15, adopt an annual Educational Fund budget for  the
18    use  of  education  moneys  for the next school year which it
19    deems  necessary  to  defray  all  necessary   expenses   and
20    liabilities of the district to be assumed by the Fund, and in
21    such  annual budget shall specify the objects and purposes of
22    each item and the amount needed for each object  or  purpose.
23    The  budget  shall contain a statement of cash on hand at the
24    beginning of  the  fiscal  year,  an  estimate  of  the  cash
25    expected  to  be  received  during  such fiscal year from all
26    sources, an estimate of the expenditure contemplated for such
27    fiscal year, and a statement of the estimated  cash  expected
28    to be on hand at the end of such year.  Prior to the adoption
29    of  the  annual educational budget, this the Educational Fund
30    budget shall be submitted to the  Department  of  Corrections
31    and the State Board of Education for incorporation.
32    (Source: P.A. 86-1028.)
33        (105 ILCS 5/18-8) (from Ch. 122, par. 18-8)
SB1101 Enrolled            -11-                LRB9003523REmb
 1        Sec.   18-8.  Basis   for   apportionment  to  districts,
 2    laboratory schools and alternative schools.
 3        A.  The amounts to be apportioned shall be determined for
 4    each educational  service  region  by  school  districts,  as
 5    follows:
 6        1.  General Provisions.
 7        (a)  In the computation of the amounts to be apportioned,
 8    the  average  daily  attendance  of  all  pupils  in grades 9
 9    through 12 shall be multiplied by 1.25.   The  average  daily
10    attendance  of  all  pupils  in  grades  7  and  8  shall  be
11    multiplied by 1.05.
12        (b)  The   actual  number  of  pupils  in  average  daily
13    attendance shall be computed in a one-teacher school district
14    by dividing the total aggregate days of pupil  attendance  by
15    the  actual  number of days school is in session but not more
16    than 30 such pupils shall be  accredited  for  such  type  of
17    district;  and  in  districts  of  2  or more teachers, or in
18    districts where records of attendance  are  kept  by  session
19    teachers, by taking the sum of the respective averages of the
20    units composing the group.
21        (c)  Pupils in average daily attendance shall be computed
22    upon the average of the best 3 months of pupils attendance of
23    the  current  school  year  except  as district claims may be
24    later  amended  as  provided  hereinafter  in  this  Section.
25    However,  for  any   school   district   maintaining   grades
26    kindergarten through 12, the "average daily attendance" shall
27    be  computed  on  the  average of the best 3 months of pupils
28    attendance of the current year in grades kindergarten through
29    8, added together with the average of the best  3  months  of
30    pupils attendance of the current year in grades 9 through 12,
31    except as district claims may be later amended as provided in
32    this  Section.   Days  of attendance shall be kept by regular
33    calendar months, except any  days  of  attendance  in  August
34    shall  be  added  to  the  month of September and any days of
SB1101 Enrolled            -12-                LRB9003523REmb
 1    attendance in June shall  be  added  to  the  month  of  May.
 2    Except  as  otherwise  provided  in  this  Section,  days  of
 3    attendance  by  pupils  shall be counted only for sessions of
 4    not less than 5 clock hours of  school  work  per  day  under
 5    direct  supervision  of:  (i)  teachers, or (ii) non-teaching
 6    personnel   or   volunteer   personnel   when   engaging   in
 7    non-teaching  duties  and  supervising  in  those   instances
 8    specified in subsection (a) of Section 10-22.34 and paragraph
 9    10  of  Section 34-18, with pupils of legal school age and in
10    kindergarten and grades 1 through 12.
11        (d)  Pupils regularly enrolled in  a  public  school  for
12    only  a part of the school day may be counted on the basis of
13    1/6 day for every class hour of instruction of 40 minutes  or
14    more attended pursuant to such enrollment.
15        (e)  Days of attendance may be less than 5 clock hours on
16    the  opening  and  closing  of  the school term, and upon the
17    first day of pupil attendance, if preceded by a day  or  days
18    utilized as an institute or teachers' workshop.
19        (f)  A session of 4 or more clock hours may be counted as
20    a  day  of  attendance  upon  certification  by  the regional
21    superintendent, and approved by the State  Superintendent  of
22    Education  to the extent that the district has been forced to
23    use daily multiple sessions.
24        (g)  A session of 3 or more clock hours may be counted as
25    a day of attendance (1) when the remainder of the school  day
26    or  at  least  2 hours in the evening of that day is utilized
27    for an in-service training program  for  teachers,  up  to  a
28    maximum  of  5  days  per school year of which a maximum of 4
29    days  of  such  5  days  may  be  used   for   parent-teacher
30    conferences,  provided  a  district  conducts  an  in-service
31    training  program for teachers which has been approved by the
32    State Superintendent of Education; or,  in  lieu  of  4  such
33    days,  2  full days may be used, in which event each such day
34    may be counted as a day of attendance; and (2) when  days  in
SB1101 Enrolled            -13-                LRB9003523REmb
 1    addition  to  those  provided  in item (1) are scheduled by a
 2    school pursuant to its school improvement plan adopted  under
 3    Article  34 or its revised or amended school improvement plan
 4    adopted under Article 2, provided that (i) such sessions of 3
 5    or more  clock  hours  are  scheduled  to  occur  at  regular
 6    intervals,  (ii)  the  remainder  of the school days in which
 7    such sessions occur  are  utilized  for  in-service  training
 8    programs  or other staff development activities for teachers,
 9    and (iii) a sufficient number of minutes of school work under
10    the direct supervision of teachers are added  to  the  school
11    days  between such regularly scheduled sessions to accumulate
12    not less than the number of minutes by which such sessions of
13    3 or more clock hours fall short of 5 clock hours.  Any  full
14    days  used  for  the  purposes of this paragraph shall not be
15    considered for  computing  average  daily  attendance.   Days
16    scheduled for in-service training programs, staff development
17    activities,  or  parent-teacher  conferences may be scheduled
18    separately  for  different   grade   levels   and   different
19    attendance centers of the district.
20        (h)  A  session  of not less than one clock hour teaching
21    of hospitalized or homebound pupils on-site or  by  telephone
22    to  the  classroom  may  be counted as 1/2 day of attendance,
23    however these pupils must receive 4 or more  clock  hours  of
24    instruction to be counted for a full day of attendance.
25        (i)  A  session  of at least 4 clock hours may be counted
26    as a day of attendance for first grade pupils, and pupils  in
27    full  day kindergartens, and a session of 2 or more hours may
28    be  counted  as  1/2  day  of   attendance   by   pupils   in
29    kindergartens which provide only 1/2 day of attendance.
30        (j)  For children with disabilities who are below the age
31    of  6  years  and  who  cannot attend two or more clock hours
32    because of their disability or immaturity, a session  of  not
33    less  than  one  clock  hour  may  be  counted  as 1/2 day of
34    attendance; however for such children whose educational needs
SB1101 Enrolled            -14-                LRB9003523REmb
 1    so require a session of 4 or more clock hours may be  counted
 2    as a full day of attendance.
 3        (k)  A  recognized  kindergarten  which provides for only
 4    1/2 day of attendance by each pupil shall not have more  than
 5    1/2  day  of  attendance  counted  in  any  1  day.  However,
 6    kindergartens may count 2 1/2 days of  attendance  in  any  5
 7    consecutive  school  days.   Where  a  pupil  attends  such a
 8    kindergarten for 2 half days on  any  one  school  day,  such
 9    pupil  shall  have  the  following  day  as a day absent from
10    school, unless the  school  district  obtains  permission  in
11    writing   from   the   State   Superintendent  of  Education.
12    Attendance at kindergartens which provide for a full  day  of
13    attendance  by  each  pupil  shall  be  counted  the  same as
14    attendance by first grade pupils.  Only  the  first  year  of
15    attendance  in  one  kindergarten  shall be counted except in
16    case of children who entered the kindergarten in their  fifth
17    year  whose educational development requires a second year of
18    kindergarten as determined under the rules and regulations of
19    the State Board of Education.
20        (l)  Days  of  attendance  by  tuition  pupils  shall  be
21    accredited only to the districts that pay the  tuition  to  a
22    recognized school.
23        (m)  The  greater  of  the  immediately  preceding year's
24    weighted average daily  attendance  or  the  average  of  the
25    weighted   average   daily   attendance  of  the  immediately
26    preceding year and the previous 2 years shall be used.
27        For any school year beginning July 1, 1986 or thereafter,
28    if the weighted average daily  attendance  in  either  grades
29    kindergarten  through  8 or grades 9 through 12 of a district
30    as computed for the  first  calendar  month  of  the  current
31    school  year  exceeds  by  more than 5%, but not less than 25
32    pupils, the district's weighted average daily attendance  for
33    the  first  calendar  month of the immediately preceding year
34    in, respectively, grades kindergarten through 8 or  grades  9
SB1101 Enrolled            -15-                LRB9003523REmb
 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
SB1101 Enrolled            -16-                LRB9003523REmb
 1    average daily attendance in the attendance center or  centers
 2    bear  to the average daily attendance in the school district.
 3    A "recognized school" means any public school which meets the
 4    standards as established for recognition by the  State  Board
 5    of  Education.   A  school  district or attendance center not
 6    having recognition status at the end  of  a  school  term  is
 7    entitled to receive State aid payments due upon a legal claim
 8    which was filed while it was recognized.
 9        (p)  School  district claims filed under this Section are
10    subject to Sections 18-9, 18-10 and 18-12, except  as  herein
11    otherwise provided.
12        (q)  The  State  Board of Education shall secure from the
13    Department of Revenue the value as equalized or  assessed  by
14    the  Department  of  Revenue of all taxable property of every
15    school district together with the applicable tax rate used in
16    extending taxes for the funds of the district as of September
17    30 of the previous year.  The Department of Revenue shall add
18    to the equalized assessed value of all  taxable  property  of
19    each  school district situated entirely or partially within a
20    county with 2,000,000 or more inhabitants an amount equal  to
21    the  total  amount  by which the homestead exemptions allowed
22    under Sections 15-170 and 15-175 of the Property Tax Code for
23    real property situated in that school  district  exceeds  the
24    total  amount  that  would  have  been allowed in that school
25    district as homestead exemptions under those Sections if  the
26    maximum  reduction  under  Section 15-170 of the Property Tax
27    Code was $2,000  and  the  maximum  reduction  under  Section
28    15-175 of the Property Tax Code was $3,500.  The county clerk
29    of  any  county  with  2,000,000  or  more  inhabitants shall
30    annually calculate and certify to  the  Department  for  each
31    school  district  all homestead exemption amounts required by
32    this amendatory Act of 1992.  In a new district which has not
33    had any tax rates yet determined for extension  of  taxes,  a
34    leveled uniform rate shall be computed from the latest amount
SB1101 Enrolled            -17-                LRB9003523REmb
 1    of  the  fund taxes extended on the several areas within such
 2    new district.
 3        (r)  If a school district operates  a  full  year  school
 4    under  Section  10-19.1,  the general state aid to the school
 5    district shall be determined by the State Board of  Education
 6    in accordance with this Section as near as may be applicable.
 7        2.  New  or  recomputed  claim.  The  general  State  aid
 8    entitlement for a newly created school district or a district
 9    which has annexed an entire school district shall be computed
10    using   attendance,   compensatory  pupil  counts,  equalized
11    assessed valuation, and tax rate data which would  have  been
12    used  had the district been in existence for 3 years. General
13    State aid entitlements shall  not  be  recomputed  except  as
14    permitted herein.
15        3.  Impaction.   Impaction  payments  shall  be  made  as
16    provided for in Section 18-4.2.
17        4.  Summer  school.  Summer school payments shall be made
18    as provided in Section 18-4.3.
19        5.  Computation of State aid.  The State grant  shall  be
20    determined as follows:
21        (a)  The State shall guarantee the amount of money that a
22    district's operating tax rate as limited in other Sections of
23    this  Act  would produce if every district maintaining grades
24    kindergarten through 12 had an equalized  assessed  valuation
25    equal  to  $74,791  per  weighted  ADA  pupil; every district
26    maintaining grades kindergarten through 8  had  an  equalized
27    assessed  valuation  of  $108,644 per weighted ADA pupil; and
28    every  district  maintaining  grades  9  through  12  had  an
29    equalized assessed valuation of  $187,657  per  weighted  ADA
30    pupil.   The  State  Board  of  Education  shall  adjust  the
31    equalized  assessed  valuation   amounts   stated   in   this
32    paragraph,  if  necessary,  to  conform  to the amount of the
33    appropriation approved for any fiscal year.
34        (b)  The operating tax rate to be used shall  consist  of
SB1101 Enrolled            -18-                LRB9003523REmb
 1    all district taxes extended for all purposes except community
 2    college educational purposes for the payment of tuition under
 3    Section  6-1  of  the  Public Community College Act, Bond and
 4    Interest,  Summer  School,  Rent,  Capital  Improvement   and
 5    Vocational  Education  Building.   Any  district may elect to
 6    exclude Transportation from the calculation of its  operating
 7    tax  rate.  Districts  may  include  taxes  extended  for the
 8    payment of principal and interest on bonds issued  under  the
 9    provisions  of  Sections  17-2.11a and 20-2 at a rate of .05%
10    per year for  each  purpose  or  the  actual  rate  extended,
11    whichever is less.
12        (c)  For  calculation  of  aid  under this Act a district
13    shall use the combined authorized tax rates of all funds  not
14    exempt  in (b) above, not to exceed 2.76% of the value of all
15    its  taxable  property  as  equalized  or  assessed  by   the
16    Department   of  Revenue  for  districts  maintaining  grades
17    kindergarten through 12;  1.90%  of  the  value  of  all  its
18    taxable  property  as equalized or assessed by the Department
19    of Revenue  for  districts  maintaining  grades  kindergarten
20    through  8  only;  1.10%  of  the  value  of  all its taxable
21    property as  equalized  or  assessed  by  the  Department  of
22    Revenue  for  districts maintaining grades 9 through 12 only.
23    A district may, however, as provided in Article 17,  increase
24    its  operating  tax  rate  above the maximum rate provided in
25    this subsection without affecting the amount of State aid  to
26    which it is entitled under this Act.
27        (d) (1)  For  districts  maintaining  grades kindergarten
28    through 12  with  an  operating  tax  rate  as  described  in
29    subsections  5(b)  and  (c) of less than 2.18%, and districts
30    maintaining grades kindergarten through 8 with  an  operating
31    tax  rate  of less than 1.28%, State aid shall be computed by
32    multiplying the difference between the  guaranteed  equalized
33    assessed  valuation per weighted ADA pupil in subsection 5(a)
34    and the equalized assessed valuation per weighted  ADA  pupil
SB1101 Enrolled            -19-                LRB9003523REmb
 1    in  the district by the operating tax rate, multiplied by the
 2    weighted average daily attendance of the district;  provided,
 3    however,  that  for  the 1989-1990 school year only, a school
 4    district maintaining  grades  kindergarten  through  8  whose
 5    operating  tax rate with reference to which its general State
 6    aid for the 1989-1990 school year is determined is less  than
 7    1.28%  and  more  than 1.090%, and which had an operating tax
 8    rate of 1.28% or more for the previous year, shall  have  its
 9    general  State  aid  computed  according to the provisions of
10    subsection 5(d)(2).
11        (2)  For  districts   maintaining   grades   kindergarten
12    through  12  with  an  operating  tax  rate  as  described in
13    subsection 5(b) and (c) of 2.18% and  above,  the  State  aid
14    shall  be  computed  as provided in subsection (d) (1) but as
15    though the district had an operating tax rate  of  2.76%;  in
16    K-8  districts with an operating tax rate of 1.28% and above,
17    the State aid shall be computed as provided in subsection (d)
18    (1) but as though the district had an operating tax  rate  of
19    1.90%; and in 9-12 districts, the State aid shall be computed
20    by   multiplying   the   difference  between  the  guaranteed
21    equalized  assessed  valuation  per  weighted  average  daily
22    attendance  pupil  in  subsection  5(a)  and  the   equalized
23    assessed  valuation  per  weighted  average  daily attendance
24    pupil in the district by  the  operating  tax  rate,  not  to
25    exceed  1.10%,  multiplied  by  the  weighted  average  daily
26    attendance  of  the  district.   State aid computed under the
27    provisions of this subsection (d) (2)  shall  be  treated  as
28    separate  from  all  other  payments  made  pursuant  to this
29    Section.  The State Comptroller  and  State  Treasurer  shall
30    transfer  from  the General Revenue Fund to the Common School
31    Fund the amounts necessary to permit these claims to be  paid
32    in  equal  installments  along  with other State aid payments
33    remaining to be made for the 1983-1984 school year under this
34    Section.
SB1101 Enrolled            -20-                LRB9003523REmb
 1        (3)  For  any  school  district  whose   1995   equalized
 2    assessed  valuation  is  at  least  6%  less  than  its  1994
 3    equalized  assessed valuation as the result of a reduction in
 4    the equalized assessed  valuation  of  the  taxable  property
 5    within  such  district  of  any  one  taxpayer  whose taxable
 6    property within the district has a  1994  equalized  assessed
 7    valuation  constituting  at  least  20% of the 1994 equalized
 8    assessed  valuation  of  all  taxable  property  within   the
 9    district,  the  1996-97  State  aid of such district shall be
10    computed using its 1995 equalized assessed valuation.
11        (4)  For  any  school  district  whose   1988   equalized
12    assessed  valuation  is  55%  or  less  of its 1981 equalized
13    assessed valuation, the 1990-91 State aid  of  such  district
14    shall  be computed by multiplying the 1988 equalized assessed
15    valuation by a factor of .8.  Any such school district  which
16    is  reorganized  effective  for the 1991-92 school year shall
17    use the formula provided in this subparagraph for purposes of
18    the calculation made  pursuant  to  subsection  (m)  of  this
19    Section.
20        (e)  The  amount of State aid shall be computed under the
21    provisions of subsections  5(a)  through  5(d)  provided  the
22    equalized  assessed  valuation per weighted ADA pupil is less
23    than .87 of the amounts in subsection 5(a). If the  equalized
24    assessed  valuation  per  weighted  ADA  pupil is equal to or
25    greater than .87 of the amounts in subsection 5(a), the State
26    aid shall be computed  under  the  provisions  of  subsection
27    5(f).
28        (f)  If the equalized assessed valuation per weighted ADA
29    pupil  is  equal  to  or  greater  than .87 of the amounts in
30    subsection 5(a), the State aid per weighted ADA  pupil  shall
31    be  computed  by  multiplying  the  product  of .13 times the
32    maximum per pupil amount computed  under  the  provisions  of
33    subsections  5(a)  through  5(d)  by  an  amount equal to the
34    quotient of .87 times the equalized  assessed  valuation  per
SB1101 Enrolled            -21-                LRB9003523REmb
 1    weighted  ADA  pupil  in  subsection  5(a)  for  that type of
 2    district divided by  the  district  equalized  valuation  per
 3    weighted  ADA  pupil  except  in  no  case shall the district
 4    receive State aid per weighted ADA pupil  of  less  than  .07
 5    times  the  maximum  per  pupil  amount  computed  under  the
 6    provisions of subsections 5(a) through 5(d).
 7        (g)  In  addition  to  the  above  grants,  summer school
 8    grants shall be made based upon the calculation  as  provided
 9    in subsection 4 of this Section.
10        (h)  The  board  of  any  district  receiving  any of the
11    grants provided for in this Section may apply those funds  to
12    any  fund  so  received for which that board is authorized to
13    make expenditures by law.
14        (i) (1) (a)  In school districts with  an  average  daily
15    attendance  of  50,000  or more, the amount which is provided
16    under subsection 1(n) of this Section by the application of a
17    base Chapter 1 weighting factor of .375 shall be  distributed
18    to  the  attendance centers within the district in proportion
19    to the number of pupils enrolled at  each  attendance  center
20    who  are eligible to receive free or reduced-price lunches or
21    breakfasts under the federal Child Nutrition Act of 1966  and
22    under  the  National  School Lunch Act during the immediately
23    preceding school year.  The  amount  of  State  aid  provided
24    under  subsection  1(n) of this Section by the application of
25    the Chapter 1 weighting factor in excess  of  .375  shall  be
26    distributed  to the attendance centers within the district in
27    proportion to the total enrollment at each attendance center.
28    Beginning with school year  1989-90,  and  each  school  year
29    thereafter, all funds provided under subsection 1 (n) of this
30    Section  by the application of the Chapter 1 weighting factor
31    which are in excess of the level of  non-targeted  Chapter  1
32    funds   in  school  year  1988-89  shall  be  distributed  to
33    attendance centers, and only to  attendance  centers,  within
34    the  district  in proportion to the number of pupils enrolled
SB1101 Enrolled            -22-                LRB9003523REmb
 1    at each attendance center who are eligible to receive free or
 2    reduced price lunches or breakfasts under the  Federal  Child
 3    Nutrition  Act and under the National School Lunch Act during
 4    the immediately preceding school year.  Beginning  in  school
 5    year  1989-90,  25%  of the previously non-targeted Chapter 1
 6    funds as established for school year 1988-89  shall  also  be
 7    distributed to the attendance centers, and only to attendance
 8    centers,  in  the  district  in  proportion  to the number of
 9    pupils enrolled at each attendance center who are eligible to
10    receive free or reduced price lunches or breakfasts under the
11    Federal Child Nutrition Act and  under  the  National  School
12    Lunch  Act  during  the immediately preceding school year; in
13    school year  1990-91,  50%  of  the  previously  non-targeted
14    Chapter  1 funds as established for school year 1988-89 shall
15    be distributed to attendance centers, and only to  attendance
16    centers,  in  the  district  in  proportion  to the number of
17    pupils enrolled at each attendance center who are eligible to
18    receive such free or  reduced  price  lunches  or  breakfasts
19    during  the immediately preceding school year; in school year
20    1991-92, 75% of the previously non-targeted Chapter  1  funds
21    as  established  for school year 1988-89 shall be distributed
22    to attendance centers, and only to attendance centers, in the
23    district in proportion to the number of  pupils  enrolled  at
24    each  attendance center who are eligible to receive such free
25    or reduced price lunches or breakfasts during the immediately
26    preceding school year; in school year 1992-93 and thereafter,
27    all funds provided under subsection 1 (n) of this Section  by
28    the  application  of  the Chapter 1 weighting factor shall be
29    distributed to attendance centers,  and  only  to  attendance
30    centers,  in  the  district  in  proportion  to the number of
31    pupils enrolled at each attendance center who are eligible to
32    receive free or reduced price lunches or breakfasts under the
33    Federal Child Nutrition Act and  under  the  National  School
34    Lunch  Act  during  the  immediately  preceding  school year;
SB1101 Enrolled            -23-                LRB9003523REmb
 1    provided, however, that the distribution  formula  in  effect
 2    beginning with school year 1989-90 shall not be applicable to
 3    such  portion of State aid provided under subsection 1 (n) of
 4    this Section by the application of the  Chapter  1  weighting
 5    formula  as  is  set  aside  and  appropriated  by the school
 6    district for the purpose of providing desegregation  programs
 7    and  related  transportation to students (which portion shall
 8    not exceed 5% of the total  amount  of  State  aid  which  is
 9    provided   under   subsection   1  (n)  of  this  Section  by
10    application of the Chapter  1  weighting  formula),  and  the
11    relevant  percentages  shall  be  applied  to  the  remaining
12    portion  of  such  State  aid.   The  distribution  of  these
13    portions  of  general  State  aid  among  attendance  centers
14    according  to these requirements shall not be compensated for
15    or contravened by adjustments of the  total  of  other  funds
16    appropriated  to  any  attendance centers.   (b) The Board of
17    Education shall utilize funding from one or  several  sources
18    in  order to fully implement this provision annually prior to
19    the opening of school.  The Board of  Education  shall  apply
20    savings  from  reduced  administrative  costs  required under
21    Section 34-43.1 and growth in non-Chapter 1 State  and  local
22    funds  to  assure that all attendance centers receive funding
23    to replace losses due to redistribution of Chapter 1 funding.
24    The distribution formula and funding to replace losses due to
25    the distribution formula shall occur, in full, using any  and
26    all  sources available, including, if necessary, revenue from
27    administrative reductions beyond those  required  in  Section
28    34-43.1,  in  order to provide the necessary funds.  (c) Each
29    attendance center shall be provided by the school district  a
30    distribution  of  noncategorical  funds and other categorical
31    funds to which an attendance center is entitled under law  in
32    order  that  the  State  aid  provided  by application of the
33    Chapter 1 weighting factor and  required  to  be  distributed
34    among  attendance  centers  according  to the requirements of
SB1101 Enrolled            -24-                LRB9003523REmb
 1    this  paragraph  supplements  rather   than   supplants   the
 2    noncategorical  funds and other categorical funds provided by
 3    the   school   district   to    the    attendance    centers.
 4    Notwithstanding  the  foregoing provisions of this subsection
 5    5(i)(1) or any other law to the contrary, beginning with  the
 6    1995-1996  school  year  and for each school year thereafter,
 7    the board of a school district to  which  the  provisions  of
 8    this  subsection  apply  shall  be  required  to  allocate or
 9    provide to attendance centers of the  district  in  any  such
10    school  year,  from  the  State aid provided for the district
11    under this Section by application of the Chapter 1  weighting
12    factor,  an aggregate amount of not less than $261,000,000 of
13    State Chapter 1 funds. Any State  Chapter  1  funds  that  by
14    reason  of  the provisions of this paragraph are not required
15    to be allocated and provided to  attendance  centers  may  be
16    used  and  appropriated  by the board of the district for any
17    lawful school purpose.    Chapter  1  funds  received  by  an
18    attendance   center   (except   those  funds  set  aside  for
19    desegregation  programs   and   related   transportation   to
20    students) shall be used on the schedule cited in this Section
21    at  the  attendance center at the discretion of the principal
22    and local school council for programs to improve  educational
23    opportunities  at  qualifying  schools  through the following
24    programs and services:  early  childhood  education,  reduced
25    class  size  or  improved  adult  to student classroom ratio,
26    enrichment   programs,   remedial   assistance,    attendance
27    improvement  and  other educationally beneficial expenditures
28    which supplement the regular and basic programs as determined
29    by the State Board of Education.  Chapter 1 funds  shall  not
30    be expended for any political or lobbying purposes as defined
31    by board rule. (d) Each district subject to the provisions of
32    this  paragraph  shall  submit an acceptable plan to meet the
33    educational needs of disadvantaged  children,  in  compliance
34    with  the  requirements of this paragraph, to the State Board
SB1101 Enrolled            -25-                LRB9003523REmb
 1    of Education prior to July 15 of each year. This  plan  shall
 2    be  consistent  with  the  decisions of local school councils
 3    concerning  the  school  expenditure   plans   developed   in
 4    accordance  with  part  4 of Section 34-2.3.  The State Board
 5    shall approve or reject the plan within  60  days  after  its
 6    submission.   If the plan is rejected the district shall give
 7    written notice of intent to modify the plan within 15 days of
 8    the notification of rejection and then submit a modified plan
 9    within 30 days after the date of the written notice of intent
10    to modify.  Districts may amend approved  plans  pursuant  to
11    rules promulgated by the State Board of Education.
12        Upon  notification  by  the State Board of Education that
13    the district has not submitted a plan prior to July 15  or  a
14    modified  plan  within  the time period specified herein, the
15    State aid funds affected by said plan or modified plan  shall
16    be  withheld  by the State Board of Education until a plan or
17    modified plan is submitted.
18        If  the  district  fails  to  distribute  State  aid   to
19    attendance  centers  in accordance with an approved plan, the
20    plan for the following year shall allocate funds, in addition
21    to the funds otherwise  required  by  this  subparagraph,  to
22    those  attendance  centers  which were underfunded during the
23    previous year in amounts equal to such underfunding.
24        For  purposes  of  determining   compliance   with   this
25    subsection  in  relation  to  Chapter  1  expenditures,  each
26    district  subject  to the provisions of this subsection shall
27    submit as a separate document by December 1 of  each  year  a
28    report  of  Chapter  1 expenditure data for the prior year in
29    addition to any modification of its current plan.  If  it  is
30    determined  that  there has been a failure to comply with the
31    expenditure   provisions   of   this   subsection   regarding
32    contravention or supplanting,  the  State  Superintendent  of
33    Education  shall,  within  60  days of receipt of the report,
34    notify the district and any affected  local  school  council.
SB1101 Enrolled            -26-                LRB9003523REmb
 1    The  district  shall  within  45  days  of  receipt  of  that
 2    notification  inform the State Superintendent of Education of
 3    the remedial or corrective action to be  taken,  whether   by
 4    amendment  of the current plan, if feasible, or by adjustment
 5    in the plan for the following year.  Failure to  provide  the
 6    expenditure   report  or  the  notification  of  remedial  or
 7    corrective action in  a  timely  manner  shall  result  in  a
 8    withholding of the affected funds.
 9        The  State  Board of Education shall promulgate rules and
10    regulations to implement the provisions  of  this  subsection
11    5(i)(1).  No funds shall be released under subsection 1(n) of
12    this Section or under this subsection 5(i)(1) to any district
13    which has not submitted a plan which has been approved by the
14    State Board of Education.
15        (2)  School districts with an average daily attendance of
16    more  than 1,000 and less than 50,000 and having a low income
17    pupil weighting factor in excess of .53 shall submit  a  plan
18    to  the  State Board of Education prior to October 30 of each
19    year for the use of the funds resulting from the  application
20    of  subsection  1(n)  of  this Section for the improvement of
21    instruction  in  which  priority  is  given  to  meeting  the
22    education needs of disadvantaged children.  Such  plan  shall
23    be   submitted  in  accordance  with  rules  and  regulations
24    promulgated by the State Board of Education.
25        (j)  For the purposes of calculating State aid under this
26    Section, with respect to any part of a school district within
27    a  redevelopment  project  area  in  respect   to   which   a
28    municipality  has  adopted tax increment allocation financing
29    pursuant to the Tax Increment Allocation  Redevelopment  Act,
30    Sections   11-74.4-1   through  11-74.4-11  of  the  Illinois
31    Municipal Code or the Industrial Jobs Recovery Law,  Sections
32    11-74.6-1  through 11-74.6-50 of the Illinois Municipal Code,
33    no part of the current equalized assessed valuation  of  real
34    property   located   in   any  such  project  area  which  is
SB1101 Enrolled            -27-                LRB9003523REmb
 1    attributable to an increase above the total initial equalized
 2    assessed  valuation  of  such  property  shall  be  used   in
 3    computing  the  equalized assessed valuation per weighted ADA
 4    pupil in the district, until such time as  all  redevelopment
 5    project   costs  have  been  paid,  as  provided  in  Section
 6    11-74.4-8 of the Tax Increment Allocation  Redevelopment  Act
 7    or in Section 11-74.6-35 of the Industrial Jobs Recovery Law.
 8    For the purpose of computing the equalized assessed valuation
 9    per  weighted  ADA  pupil  in  the district the total initial
10    equalized  assessed  valuation  or  the   current   equalized
11    assessed  valuation,  whichever is lower, shall be used until
12    such time as all redevelopment project costs have been paid.
13        (k)  For a school district operating under the  financial
14    supervision  of  an  Authority created under Article 34A, the
15    State aid otherwise  payable  to  that  district  under  this
16    Section,  other  than  State  aid  attributable  to Chapter 1
17    students, shall be reduced by an amount equal to  the  budget
18    for  the  operations  of  the  Authority  as certified by the
19    Authority to the State Board  of  Education,  and  an  amount
20    equal  to  such  reduction  shall  be  paid  to the Authority
21    created for such district for its operating expenses  in  the
22    manner  provided  in  Section  18-11.  The remainder of State
23    school aid for any such district shall be paid in  accordance
24    with Article 34A when that Article provides for a disposition
25    other than that provided by this Article.
26        (l)  For  purposes  of  calculating  State aid under this
27    Section,  the  equalized  assessed  valuation  for  a  school
28    district used to compute State aid  shall  be  determined  by
29    adding  to the real property equalized assessed valuation for
30    the district an amount computed by  dividing  the  amount  of
31    money  received  by  the district under the provisions of "An
32    Act in relation to  the  abolition  of  ad  valorem  personal
33    property  tax  and the replacement of revenues lost thereby",
34    certified August 14, 1979, by the  total  tax  rate  for  the
SB1101 Enrolled            -28-                LRB9003523REmb
 1    district.  For  purposes  of  this  subsection 1976 tax rates
 2    shall be used for school districts in the county of Cook  and
 3    1977  tax  rates  shall  be  used for school districts in all
 4    other counties.
 5        (m) (1)  For a new school district  formed  by  combining
 6    property   included  totally  within  2  or  more  previously
 7    existing school districts, for its first year of existence or
 8    if the new district was formed after  October  31,  1982  and
 9    prior  to  September  23,  1985,  for  the  year  immediately
10    following  September 23, 1985, the State aid calculated under
11    this Section shall be computed for the new district  and  for
12    the  previously  existing  districts  for  which  property is
13    totally included within the new district.  If the computation
14    on the basis of the previously existing districts is greater,
15    a supplementary payment equal to the difference shall be made
16    for the first 3 years of existence of the new district or  if
17    the  new district was formed after October 31, 1982 and prior
18    to September 23, 1985, for the 3 years immediately  following
19    September 23, 1985.
20        (2)  For  a  school  district  which  annexes  all of the
21    territory of one or more entire other school  districts,  for
22    the   first  year  during  which  the  change  of  boundaries
23    attributable to such annexation  becomes  effective  for  all
24    purposes  as  determined under Section 7-9 or 7A-8, the State
25    aid calculated under this Section shall be computed  for  the
26    annexing district as constituted after the annexation and for
27    the  annexing  and each annexed district as constituted prior
28    to the annexation; and if the computation on the basis of the
29    annexing and annexed districts as constituted  prior  to  the
30    annexation  is  greater, a supplementary payment equal to the
31    difference shall be made for the first 3 years  of  existence
32    of  the  annexing  school  district  as constituted upon such
33    annexation.
34        (3)  For 2 or more school districts which  annex  all  of
SB1101 Enrolled            -29-                LRB9003523REmb
 1    the  territory  of one or more entire other school districts,
 2    and for 2 or more community unit districts which result  upon
 3    the  division  (pursuant  to petition under Section 11A-2) of
 4    one or more other unit school districts into 2 or more  parts
 5    and  which  together include all of the parts into which such
 6    other unit school district or districts are so  divided,  for
 7    the   first  year  during  which  the  change  of  boundaries
 8    attributable to such annexation or division becomes effective
 9    for all purposes as determined under Section 7-9  or  11A-10,
10    as  the  case  may  be,  the  State aid calculated under this
11    Section shall be computed  for  each  annexing  or  resulting
12    district  as constituted after the annexation or division and
13    for each annexing and annexed district, or for each resulting
14    and divided district, as constituted prior to the  annexation
15    or  division;  and  if  the  aggregate of the State aid as so
16    computed  for  the  annexing  or   resulting   districts   as
17    constituted after the annexation or division is less than the
18    aggregate  of  the  State aid as so computed for the annexing
19    and annexed districts,  or  for  the  resulting  and  divided
20    districts,   as   constituted  prior  to  the  annexation  or
21    division,  then  a  supplementary  payment   equal   to   the
22    difference  shall  be made and allocated between or among the
23    annexing or resulting districts,  as  constituted  upon  such
24    annexation  or  division,  for  the  first  3  years of their
25    existence.  The total difference payment shall  be  allocated
26    between  or  among the annexing or resulting districts in the
27    same ratio as the pupil enrollment from that portion  of  the
28    annexed  or divided district or districts which is annexed to
29    or included in each such annexing or resulting district bears
30    to the total pupil enrollment  from  the  entire  annexed  or
31    divided  district  or  districts, as such pupil enrollment is
32    determined for the school year last ending prior to the  date
33    when  the change of boundaries attributable to the annexation
34    or division becomes effective for all purposes.   The  amount
SB1101 Enrolled            -30-                LRB9003523REmb
 1    of  the total difference payment and the amount thereof to be
 2    allocated to the annexing or  resulting  districts  shall  be
 3    computed  by  the  State  Board  of Education on the basis of
 4    pupil enrollment and other data which shall be  certified  to
 5    the State Board of Education, on forms which it shall provide
 6    for  that  purpose, by the regional superintendent of schools
 7    for each educational service region in which the annexing and
 8    annexed districts, or resulting  and  divided  districts  are
 9    located.
10        (4)  If  a unit school district annexes all the territory
11    of another unit school district effective  for  all  purposes
12    pursuant  to  Section 7-9 on July 1, 1988, and if part of the
13    annexed territory is detached within 90 days  after  July  1,
14    1988,  then  the detachment shall be disregarded in computing
15    the supplementary State aid payments under this paragraph (m)
16    for the entire 3 year period and the supplementary State  aid
17    payments shall not be diminished because of the detachment.
18        (5)  Any  supplementary State aid payment made under this
19    paragraph (m) shall be treated as  separate  from  all  other
20    payments made pursuant to this Section.
21        (n)  For the purposes of calculating State aid under this
22    Section, the real property equalized assessed valuation for a
23    school district used to compute State aid shall be determined
24    by  subtracting  from the real property value as equalized or
25    assessed by the Department of Revenue  for  the  district  an
26    amount  computed  by  dividing the amount of any abatement of
27    taxes under Section 18-170 of the Property Tax  Code  by  the
28    maximum  operating  tax rates specified in subsection 5(c) of
29    this Section and an amount computed by dividing the amount of
30    any abatement of taxes under subsection (a) of Section 18-165
31    of the Property Tax Code by the maximum operating  tax  rates
32    specified in subsection 5(c) of this Section.
33        (o)  Notwithstanding   any   other   provisions  of  this
34    Section, for the 1996-1997 school  year  the  amount  of  the
SB1101 Enrolled            -31-                LRB9003523REmb
 1    aggregate  general  State  aid  entitlement  that is received
 2    under this Section by each school district  for  that  school
 3    year  shall  be  not  less  than  the amount of the aggregate
 4    general State  aid  entitlement  that  was  received  by  the
 5    district  under  this  Section for the 1995-1996 school year.
 6    If a school district is to receive an aggregate general State
 7    aid entitlement under this Section for the  1996-1997  school
 8    year  that  is  less than the amount of the aggregate general
 9    State aid entitlement that the district received  under  this
10    Section  for  the  1995-1996 school year, the school district
11    shall also receive, from a separate  appropriation  made  for
12    purposes  of this paragraph (o), a supplementary payment that
13    is equal to  the  amount  by  which  the  general  State  aid
14    entitlement  received  by the district under this Section for
15    the 1995-1996 school  year  exceeds  the  general  State  aid
16    entitlement  that  the  district  is  to  receive  under this
17    Section for the 1996-1997 school year.
18        Notwithstanding any other provisions of this Section, for
19    the 1997-1998 school year the amount of the aggregate general
20    State aid entitlement that is received under this Section  by
21    each  school  district for that school year shall be not less
22    than  the  amount  of  the  aggregate   general   State   aid
23    entitlement  that  was  received  by  the district under this
24    Section for the 1996-1997 school year.  If a school  district
25    is  to  receive  an  aggregate  general State aid entitlement
26    under this Section for the 1997-1998 school year that is less
27    than  the  amount  of  the  aggregate   general   State   aid
28    entitlement that the district received under this Section for
29    the  1996-1997  school  year,  the school district shall also
30    receive, from a separate appropriation made for  purposes  of
31    this  paragraph (o), a supplementary payment that is equal to
32    the  amount  by  which  the  general  State  aid  entitlement
33    received by the district under this Section for the 1996-1997
34    school year exceeds the general State  aid  entitlement  that
SB1101 Enrolled            -32-                LRB9003523REmb
 1    the  district  is  to  receive  under  this  Section  for the
 2    1997-1998 school year.
 3        If the amount appropriated for supplementary payments  to
 4    school districts under this paragraph (o) is insufficient for
 5    that  purpose,  the supplementary payments that districts are
 6    to receive under this paragraph shall be  prorated  according
 7    to  the  aggregate  amount  of  the  appropriation  made  for
 8    purposes of this paragraph.
 9        (p)  For   the  1997-1998  school  year,  a  supplemental
10    general  State  aid  grant  shall  be  provided  for   school
11    districts as follows:
12             (i)  The  general  State  aid  received  by a school
13        district under this Section for the 1997-1998 school year
14        shall be added to the sum of (A) the result  obtained  by
15        multiplying  the  1995 equalized valuation of all taxable
16        property in the district by  the  fixed  calculation  tax
17        rates  of  3.0%  for  unit districts, 2.0% for elementary
18        districts and 1.0% for high school districts plus (B) the
19        aggregate   corporate   personal   property   replacement
20        revenues received by the district  during  the  1996-1997
21        school year;
22             (ii)  The aggregate amount determined under item (i)
23        of  this  subsection 5(p) shall be divided by the average
24        of the best 3 months of pupil attendance in the  district
25        for the 1996-1997 school year; and
26             (iii)  If   the  result  obtained  by  dividing  the
27        aggregate  amount  determined  under  item  (i)  of  this
28        subsection 5(p) by the average of the best  3  months  of
29        pupil attendance in the district as provided in item (ii)
30        of   this  subsection  5(p)  is  less  than  $3,600,  the
31        supplemental general State aid grant  that  the  district
32        shall   receive   under  this  subsection  5(p)  for  the
33        1997-1998 school  year  shall  be  equal  to  the  amount
34        determined by subtracting from $3,600 the result obtained
SB1101 Enrolled            -33-                LRB9003523REmb
 1        by  dividing  the  aggregate amount determined under item
 2        (i) of this subsection by  the  average  of  the  best  3
 3        months of pupil attendance in the district as provided in
 4        item  (ii)  of  this  subsection, and by multiplying that
 5        difference by the average of the best 3 months  of  pupil
 6        attendance in the district for the 1996-1997 school year.
 7        If the moneys appropriated in a separate line item by the
 8    General   Assembly  to  the  State  Board  of  Education  for
 9    supplementary payments required to be made and distributed to
10    school districts for any school year  under  this  subsection
11    5(p)  are  insufficient,  the  amount  of  the  supplementary
12    payments  required to be made and distributed to those school
13    districts under this subsection 5(p)  for  that  school  year
14    shall abate proportionately.
15        B.  In calculating the amount to be paid to the governing
16    board  of  a  public  university  that  operates a laboratory
17    school under this Section or to any alternative  school  that
18    is  operated by a regional superintendent, the State Board of
19    Education shall require by rule such  reporting  requirements
20    as it deems necessary.
21        As  used  in  this  Section,  "laboratory school" means a
22    public school which is  created  and  operated  by  a  public
23    university and approved by the State Board of Education.  The
24    governing  board  of a public university which receives funds
25    from the State Board under this subsection B may not increase
26    the number of students enrolled in its laboratory school from
27    a single district, if that district is already sending 50  or
28    more  students,  except  under a mutual agreement between the
29    school board of a student's district  of  residence  and  the
30    university   which   operates   the   laboratory  school.   A
31    laboratory school may not  have  more  than  1,000  students,
32    excluding  students  with disabilities in a special education
33    program.
34        As used in this Section,  "alternative  school"  means  a
SB1101 Enrolled            -34-                LRB9003523REmb
 1    public  school  which  is  created and operated by a Regional
 2    Superintendent of Schools and approved by the State Board  of
 3    Education.  Such  alternative  schools  may  offer courses of
 4    instruction for which  credit  is  given  in  regular  school
 5    programs,  courses  to  prepare  students for the high school
 6    equivalency testing program or  vocational  and  occupational
 7    training.
 8        Each  laboratory  and  alternative  school shall file, on
 9    forms provided by the State Superintendent of  Education,  an
10    annual  State  aid  claim  which  states  the  average  daily
11    attendance  of  the  school's  students by month.  The best 3
12    months' average daily attendance shall be computed  for  each
13    school.   The  weighted  average  daily  attendance  shall be
14    computed and the weighted average daily  attendance  for  the
15    school's  most recent 3 year average shall be compared to the
16    most  recent  weighted  average  daily  attendance,  and  the
17    greater of the 2 shall be used for the calculation under this
18    subsection B.  The general State  aid  entitlement  shall  be
19    computed  by  multiplying  the  school's student count by the
20    foundation level as determined under this Section.
21    (Source: P.A. 88-9; 88-45;  88-89;  88-386;  88-511;  88-537;
22    88-555;  88-641;  88-670,  eff. 12-2-94; 89-15, eff. 5-30-95;
23    89-235, eff.  8-4-95;  89-397,  eff.  8-20-95;  89-610,  eff.
24    8-6-96;  89-618,  eff.  8-9-96;  89-626, eff. 8-9-96; 89-679,
25    eff. 8-16-96; revised 9-10-96.)
26        Section 30.  The Liquor Control Act of 1934 is amended by
27    changing Section 3-12 and by adding Section 5-6 as follows:
28        (235 ILCS 5/3-12) (from Ch. 43, par. 108)
29        (Text of Section before amendment by P.A. 89-507)
30        Sec. 3-12.  The State commission shall have the following
31    powers, functions and duties:
32        (1)  To receive applications and  to  issue  licenses  to
SB1101 Enrolled            -35-                LRB9003523REmb
 1    manufacturers,  foreign  importers,  importing  distributors,
 2    distributors,  non-resident  dealers,  on premise consumption
 3    retailers, off premise sale retailers, special event retailer
 4    licensees,  special  use  permit  licenses,  auction   liquor
 5    licenses,  brew  pubs, caterer retailers, non-beverage users,
 6    railroads, including owners and lessees of  sleeping,  dining
 7    and  cafe  cars,  airplanes and boats, in accordance with the
 8    provisions of  this  Act,  and  to  suspend  or  revoke  such
 9    licenses  upon  the  State  commission's  determination, upon
10    notice after  hearing,  that  a  licensee  has  violated  any
11    provision  of  this  Act  or  any  rule  or regulation issued
12    pursuant thereto and in effect for  30  days  prior  to  such
13    violation.
14        In   lieu  of  suspending  or  revoking  a  license,  the
15    commission may impose a fine,  upon  the  State  commission's
16    determination  and  notice after hearing, that a licensee has
17    violated any provision of this Act or any rule or  regulation
18    issued  pursuant  thereto  and in effect for 30 days prior to
19    such violation.  The fine imposed under  this  paragraph  may
20    not  exceed  $500  for  each  violation.   Each  day that the
21    activity, which gave rise to the original fine, continues  is
22    a  separate  violation.   The maximum fine that may be levied
23    against any licensee, for the period of  the  license,  shall
24    not exceed $20,000.
25        (2)  To  adopt such rules and regulations consistent with
26    the provisions of this Act which shall be necessary to  carry
27    on  its  functions  and  duties  to  the end that the health,
28    safety and welfare of the People of  the  State  of  Illinois
29    shall  be  protected  and  temperance  in  the consumption of
30    alcoholic liquors shall  be  fostered  and  promoted  and  to
31    distribute  copies  of  such  rules  and  regulations  to all
32    licensees affected thereby.
33        (3)  To call upon other administrative departments of the
34    State, county and  municipal  governments,  county  and  city
SB1101 Enrolled            -36-                LRB9003523REmb
 1    police  departments  and  upon  prosecuting officers for such
 2    information and assistance  as  it  deems  necessary  in  the
 3    performance of its duties.
 4        (4)  To   recommend  to  local  commissioners  rules  and
 5    regulations,  not  inconsistent  with  the   law,   for   the
 6    distribution  and  sale  of  alcoholic liquors throughout the
 7    State.
 8        (5)  To inspect, or cause to be inspected,  any  premises
 9    where  alcoholic  liquors  are  manufactured,  distributed or
10    sold.
11        (6)  To hear and determine appeals from orders of a local
12    commission in accordance with the provisions of this Act,  as
13    hereinafter  set  forth. Hearings under this subsection shall
14    be held in Springfield or Chicago, at whichever  location  is
15    the  more  convenient  for  the  majority  of persons who are
16    parties to the hearing.
17        (7)  The commission shall establish  uniform  systems  of
18    accounts  to be kept by all retail licensees having more than
19    4 employees, and for this purpose the commission may classify
20    all  retail  licensees  having  more  than  4  employees  and
21    establish a uniform system of accounts  for  each  class  and
22    prescribe  the  manner  in which such accounts shall be kept.
23    The commission may also prescribe the forms of accounts to be
24    kept by all retail licensees having more  than  4  employees,
25    including  but  not  limited  to  accounts  of  earnings  and
26    expenses and any distribution, payment, or other distribution
27    of  earnings  or  assets,  and  any  other forms, records and
28    memoranda which in the judgment  of  the  commission  may  be
29    necessary  or  appropriate to carry out any of the provisions
30    of this Act, including but not limited to such forms, records
31    and memoranda as will readily and accurately disclose at  all
32    times  the  beneficial  ownership  of  such  retail  licensed
33    business.   The  accounts, forms, records and memoranda shall
34    be available  at  all  reasonable  times  for  inspection  by
SB1101 Enrolled            -37-                LRB9003523REmb
 1    authorized  representatives of the State commission or by any
 2    local liquor control commissioner or his  or  her  authorized
 3    representative.  The  commission,  may,  from  time  to time,
 4    alter, amend or repeal, in whole  or  in  part,  any  uniform
 5    system  of  accounts,  or  the  form  and  manner  of keeping
 6    accounts.
 7        (8)  In the conduct of any hearing authorized to be  held
 8    by the commission, to examine, or cause to be examined, under
 9    oath,  any  licensee,  and to examine or cause to be examined
10    the books and records of such licensee; to hear testimony and
11    take proof material for its information in the  discharge  of
12    its   duties   hereunder;   to  administer  or  cause  to  be
13    administered  oaths;  and  for  any  such  purpose  to  issue
14    subpoena or subpoenas to require the attendance of  witnesses
15    and  the production of books, which shall be effective in any
16    part of this State.
17        Any Circuit Court may by order duly entered, require  the
18    attendance  of witnesses and the production of relevant books
19    subpoenaed by the State commission and the court  may  compel
20    obedience to its order by proceedings for contempt.
21        (9)  To   investigate   the  administration  of  laws  in
22    relation to alcoholic liquors in this and  other  states  and
23    any  foreign countries, and to recommend from time to time to
24    the Governor and through him or her  to  the  legislature  of
25    this  State,  such  amendments to this Act, if any, as it may
26    think desirable and as will  serve  to  further  the  general
27    broad purposes contained in Section 1-2 hereof.
28        (10)  To adopt such rules and regulations consistent with
29    the  provisions  of this Act which shall be necessary for the
30    control, sale or disposition of alcoholic liquor damaged as a
31    result of an accident, wreck, flood, fire  or  other  similar
32    occurrence.
33        (11)  To develop industry educational programs related to
34    responsible serving and selling, particularly in the areas of
SB1101 Enrolled            -38-                LRB9003523REmb
 1    overserving  consumers  and  illegal  underage purchasing and
 2    consumption of alcoholic beverages.
 3        (12)  To develop and maintain a repository of license and
 4    regulatory information.
 5        (13)  On or before January 15, 1994, the Commission shall
 6    issue a written report to the Governor and  General  Assembly
 7    that is to be based on a comprehensive study of the impact on
 8    and implications for the State of Illinois of Section 1926 of
 9    the  Federal  ADAMHA  Reorganization  Act of 1992 (Public Law
10    102-321).  This study  shall  address  the  extent  to  which
11    Illinois  currently  complies  with  the  provisions  of P.L.
12    102-321 and the rules promulgated pursuant thereto.
13        As part of its report, the Commission shall  provide  the
14    following essential information:
15             (i)  the  number  of  retail distributors of tobacco
16        products, by type and geographic area, in the State;
17             (ii)  the   number   of   reported   citations   and
18        successful convictions, categorized by type and  location
19        of  retail  distributor,  for  violation  of  the Sale of
20        Tobacco  to  Minors  Act  and   the   Smokeless   Tobacco
21        Limitation Act;
22             (iii)  the    extent   and   nature   of   organized
23        educational and governmental activities that are intended
24        to promote, encourage or otherwise secure compliance with
25        any Illinois laws that prohibit the sale or  distribution
26        of tobacco products to minors; and
27             (iv)  the   level  of  access  and  availability  of
28        tobacco products to individuals under the age of 18.
29        To  obtain  the  data  necessary  to  comply   with   the
30    provisions  of  P.L.  102-321  and  the  requirements of this
31    report, the  Commission  shall  conduct  random,  unannounced
32    inspections    of   a   geographically   and   scientifically
33    representative  sample  of   the   State's   retail   tobacco
34    distributors.
SB1101 Enrolled            -39-                LRB9003523REmb
 1        The  Commission  shall  consult  with  the  Department of
 2    Public Health, the Department  of  Alcoholism  and  Substance
 3    Abuse,  the  Illinois  State  Police  and any other executive
 4    branch  agency,  and  private  organizations  that  may  have
 5    information relevant to this report.
 6        The Commission  may  contract  with  the  Food  and  Drug
 7    Administration  of  the  U.S.  Department of Health and Human
 8    Services to conduct unannounced  investigations  of  Illinois
 9    tobacco  vendors  to  determine  compliance with federal laws
10    relating to the illegal  sale  of  cigarettes  and  smokeless
11    tobacco products to persons under the age of 18.
12    (Source: P.A. 88-91; 88-418; 88-670, eff. 12-2-94.)
13        (Text of Section after amendment by P.A. 89-507)
14        Sec. 3-12.  The State commission shall have the following
15    powers, functions and duties:
16        (1)  To  receive  applications  and  to issue licenses to
17    manufacturers,  foreign  importers,  importing  distributors,
18    distributors, non-resident dealers,  on  premise  consumption
19    retailers, off premise sale retailers, special event retailer
20    licensees,   special  use  permit  licenses,  auction  liquor
21    licenses, brew pubs, caterer retailers,  non-beverage  users,
22    railroads,  including  owners and lessees of sleeping, dining
23    and cafe cars, airplanes and boats, in  accordance  with  the
24    provisions  of  this  Act,  and  to  suspend  or  revoke such
25    licenses upon  the  State  commission's  determination,  upon
26    notice  after  hearing,  that  a  licensee  has  violated any
27    provision of this  Act  or  any  rule  or  regulation  issued
28    pursuant  thereto  and  in  effect  for 30 days prior to such
29    violation.
30        In  lieu  of  suspending  or  revoking  a  license,   the
31    commission  may  impose  a  fine, upon the State commission's
32    determination and notice after hearing, that a  licensee  has
33    violated  any provision of this Act or any rule or regulation
34    issued pursuant thereto and in effect for 30  days  prior  to
SB1101 Enrolled            -40-                LRB9003523REmb
 1    such  violation.   The  fine imposed under this paragraph may
 2    not exceed $500  for  each  violation.   Each  day  that  the
 3    activity,  which gave rise to the original fine, continues is
 4    a separate violation.  The maximum fine that  may  be  levied
 5    against  any  licensee,  for the period of the license, shall
 6    not exceed $20,000.
 7        (2)  To adopt such rules and regulations consistent  with
 8    the  provisions of this Act which shall be necessary to carry
 9    on its functions and duties  to  the  end  that  the  health,
10    safety  and  welfare  of  the People of the State of Illinois
11    shall be protected  and  temperance  in  the  consumption  of
12    alcoholic  liquors  shall  be  fostered  and  promoted and to
13    distribute copies  of  such  rules  and  regulations  to  all
14    licensees affected thereby.
15        (3)  To call upon other administrative departments of the
16    State,  county  and  municipal  governments,  county and city
17    police departments and upon  prosecuting  officers  for  such
18    information  and  assistance  as  it  deems  necessary in the
19    performance of its duties.
20        (4)  To  recommend  to  local  commissioners  rules   and
21    regulations,   not   inconsistent   with  the  law,  for  the
22    distribution and sale of  alcoholic  liquors  throughout  the
23    State.
24        (5)  To  inspect,  or cause to be inspected, any premises
25    where alcoholic  liquors  are  manufactured,  distributed  or
26    sold.
27        (6)  To hear and determine appeals from orders of a local
28    commission  in accordance with the provisions of this Act, as
29    hereinafter set forth. Hearings under this  subsection  shall
30    be  held  in Springfield or Chicago, at whichever location is
31    the more convenient for  the  majority  of  persons  who  are
32    parties to the hearing.
33        (7)  The  commission  shall  establish uniform systems of
34    accounts to be kept by all retail licensees having more  than
SB1101 Enrolled            -41-                LRB9003523REmb
 1    4 employees, and for this purpose the commission may classify
 2    all  retail  licensees  having  more  than  4  employees  and
 3    establish  a  uniform  system  of accounts for each class and
 4    prescribe the manner in which such accounts  shall  be  kept.
 5    The commission may also prescribe the forms of accounts to be
 6    kept  by  all  retail licensees having more than 4 employees,
 7    including  but  not  limited  to  accounts  of  earnings  and
 8    expenses and any distribution, payment, or other distribution
 9    of earnings or assets,  and  any  other  forms,  records  and
10    memoranda  which  in  the  judgment  of the commission may be
11    necessary or appropriate to carry out any of  the  provisions
12    of this Act, including but not limited to such forms, records
13    and  memoranda as will readily and accurately disclose at all
14    times  the  beneficial  ownership  of  such  retail  licensed
15    business.  The accounts, forms, records and  memoranda  shall
16    be  available  at  all  reasonable  times  for  inspection by
17    authorized representatives of the State commission or by  any
18    local  liquor  control  commissioner or his or her authorized
19    representative. The  commission,  may,  from  time  to  time,
20    alter,  amend  or  repeal,  in  whole or in part, any uniform
21    system of  accounts,  or  the  form  and  manner  of  keeping
22    accounts.
23        (8)  In  the conduct of any hearing authorized to be held
24    by the commission, to examine, or cause to be examined, under
25    oath, any licensee, and to examine or cause  to  be  examined
26    the books and records of such licensee; to hear testimony and
27    take  proof  material for its information in the discharge of
28    its  duties  hereunder;  to  administer  or   cause   to   be
29    administered  oaths;  and  for  any  such  purpose  to  issue
30    subpoena  or subpoenas to require the attendance of witnesses
31    and the production of books, which shall be effective in  any
32    part of this State.
33        Any  Circuit Court may by order duly entered, require the
34    attendance of witnesses and the production of relevant  books
SB1101 Enrolled            -42-                LRB9003523REmb
 1    subpoenaed  by  the State commission and the court may compel
 2    obedience to its order by proceedings for contempt.
 3        (9)  To  investigate  the  administration  of   laws   in
 4    relation  to  alcoholic  liquors in this and other states and
 5    any foreign countries, and to recommend from time to time  to
 6    the  Governor  and  through  him or her to the legislature of
 7    this State, such amendments to this Act, if any,  as  it  may
 8    think  desirable  and  as  will  serve to further the general
 9    broad purposes contained in Section 1-2 hereof.
10        (10)  To adopt such rules and regulations consistent with
11    the provisions of this Act which shall be necessary  for  the
12    control, sale or disposition of alcoholic liquor damaged as a
13    result  of  an  accident, wreck, flood, fire or other similar
14    occurrence.
15        (11)  To develop industry educational programs related to
16    responsible serving and selling, particularly in the areas of
17    overserving consumers and  illegal  underage  purchasing  and
18    consumption of alcoholic beverages.
19        (12)  To develop and maintain a repository of license and
20    regulatory information.
21        (13)  On or before January 15, 1994, the Commission shall
22    issue  a  written report to the Governor and General Assembly
23    that is to be based on a comprehensive study of the impact on
24    and implications for the State of Illinois of Section 1926 of
25    the Federal ADAMHA Reorganization Act  of  1992  (Public  Law
26    102-321).   This  study  shall  address  the  extent to which
27    Illinois currently  complies  with  the  provisions  of  P.L.
28    102-321 and the rules promulgated pursuant thereto.
29        As  part  of its report, the Commission shall provide the
30    following essential information:
31             (i)  the number of retail  distributors  of  tobacco
32        products, by type and geographic area, in the State;
33             (ii)  the   number   of   reported   citations   and
34        successful  convictions, categorized by type and location
SB1101 Enrolled            -43-                LRB9003523REmb
 1        of retail distributor,  for  violation  of  the  Sale  of
 2        Tobacco   to   Minors   Act  and  the  Smokeless  Tobacco
 3        Limitation Act;
 4             (iii)  the   extent   and   nature   of    organized
 5        educational and governmental activities that are intended
 6        to promote, encourage or otherwise secure compliance with
 7        any  Illinois laws that prohibit the sale or distribution
 8        of tobacco products to minors; and
 9             (iv)  the  level  of  access  and  availability   of
10        tobacco products to individuals under the age of 18.
11        To   obtain   the  data  necessary  to  comply  with  the
12    provisions of P.L.  102-321  and  the  requirements  of  this
13    report,  the  Commission  shall  conduct  random, unannounced
14    inspections   of   a   geographically   and    scientifically
15    representative   sample   of   the   State's  retail  tobacco
16    distributors.
17        The Commission  shall  consult  with  the  Department  of
18    Public Health, the Department of Human Services, the Illinois
19    State  Police  and  any  other  executive  branch agency, and
20    private organizations that may have information  relevant  to
21    this report.
22        The  Commission  may  contract  with  the  Food  and Drug
23    Administration of the U.S. Department  of  Health  and  Human
24    Services  to  conduct  unannounced investigations of Illinois
25    tobacco vendors to determine  compliance  with  federal  laws
26    relating  to  the  illegal  sale  of cigarettes and smokeless
27    tobacco products to persons under the age of 18.
28    (Source: P.A. 88-91; 88-418; 88-670,  eff.  12-2-94;  89-507,
29    eff. 7-1-97.)
30        (235 ILCS 5/5-6 new)
31        Sec.  5-6.   FDA  grant funds.  Grant funds received from
32    the Food and Drug Administration of the  U.S.  Department  of
33    Health   and   Human   Services  for  conducting  unannounced
SB1101 Enrolled            -44-                LRB9003523REmb
 1    investigations of Illinois tobacco vendors shall be deposited
 2    into the Dram Shop Fund.
 3        Section 35.  The Illinois Public Aid Code is  amended  by
 4    changing  Sections 5-5.4 and 14-8 and adding Sections 12-4.32
 5    and 12-4.201 as follows:
 6        (305 ILCS 5/5-5.4) (from Ch. 23, par. 5-5.4)
 7        Sec. 5-5.4.  Standards of Payment - Department of  Public
 8    Aid.  The Department of Public Aid shall develop standards of
 9    payment  of skilled nursing and intermediate care services in
10    facilities providing such services under this Article which:
11        (1)  Provides  for  the  determination  of  a  facility's
12    payment for skilled nursing and intermediate care services on
13    a prospective basis.  The amount of the payment rate for  all
14    nursing  facilities  certified  under  the medical assistance
15    program shall be prospectively established  annually  on  the
16    basis   of   historical,   financial,  and  statistical  data
17    reflecting actual costs from  prior  years,  which  shall  be
18    applied  to  the current rate year and updated for inflation,
19    except that the capital cost element  for  newly  constructed
20    facilities  shall  be  based  upon  projected  budgets.   The
21    annually established payment rate shall take effect on July 1
22    in  1984  and  subsequent  years.   Rate  increases  shall be
23    provided annually thereafter on July 1 in 1984  and  on  each
24    subsequent July 1 in the following years, except that no rate
25    increase  and no update for inflation shall be provided on or
26    after July 1, 1994, July 1, 1995, or  July  1,  1996.   Rates
27    established  effective  each  July 1 shall govern payment for
28    services rendered throughout that fiscal  year,  except  that
29    rates  established on July 1, 1996 shall be increased by 6.8%
30    for services provided on or  after  January  1,  1997.   Such
31    rates  will  be  based upon the rates calculated for the year
32    beginning July 1, 1990, and for subsequent  years  thereafter
SB1101 Enrolled            -45-                LRB9003523REmb
 1    shall  be based on the facility cost reports for the facility
 2    fiscal year ending at any point in time during  the  previous
 3    calendar year, updated to the midpoint of the rate year.  The
 4    cost  report  shall  be  on file with the Department no later
 5    than April 1 of the  current  rate  year.   Should  the  cost
 6    report  not  be on file by April 1, the Department shall base
 7    the rate on the latest cost report filed by each skilled care
 8    facility and  intermediate  care  facility,  updated  to  the
 9    midpoint  of the current rate year.  In determining rates for
10    services rendered on and after July 1, 1985, fixed time shall
11    not be computed at less than zero.  The Department shall  not
12    make  any  alterations  of regulations which would reduce any
13    component of the Medicaid rate to a  level  below  what  that
14    component  would have been utilizing in the rate effective on
15    July 1, 1984.
16        (2)  Shall take into account the actual costs incurred by
17    facilities in providing services for  recipients  of  skilled
18    nursing  and  intermediate  care  services  under the medical
19    assistance program.
20        (3)  Shall   take   into   account   the   medical    and
21    psycho-social characteristics and needs of the patients.
22        (4)  Shall take into account the actual costs incurred by
23    facilities  in meeting, licensing and certification standards
24    imposed and prescribed by the State of Illinois, any  of  its
25    political  subdivisions  or  municipalities and by the United
26    States Department of Health, Education and  Welfare  pursuant
27    to Title XIX of the Social Security Act.
28        The  Department  of  Public  Aid  shall  develop  precise
29    standards  for  payments  to reimburse nursing facilities for
30    any utilization of appropriate rehabilitative  personnel  for
31    the  provision of rehabilitative services which is authorized
32    by federal regulations, including reimbursement for  services
33    provided by qualified therapists or qualified assistants, and
34    which  is in accordance with accepted professional practices.
SB1101 Enrolled            -46-                LRB9003523REmb
 1    Reimbursement also may  be  made  for  utilization  of  other
 2    supportive personnel under appropriate supervision.
 3    (Source:  P.A.  88-554,  eff.  7-26-94;  89-21,  eff. 7-1-95;
 4    89-499, eff. 6-28-96.)
 5        (305 ILCS 5/12-4.32 new)
 6        Sec.  12-4.32.  Payments  to  noncitizens.   Subject   to
 7    specific  appropriation  for  this purpose, the Department of
 8    Human  Services  is  authorized  to   provide   payments   to
 9    individuals  age  65  or  over who were present in the United
10    States prior to August 22, 1996 and are terminated  from  the
11    federal  Supplemental  Security  Income  program due to their
12    noncitizen status.  The  payment  levels  for  these  persons
13    shall  be  determined  by  rule.   These individuals shall be
14    required to pursue  continued  eligibility  for  the  federal
15    Supplemental  Security Income program based on disability, if
16    potentially available.
17        (305 ILCS 5/12-4.201 new)
18        Sec. 12-4.201.  Data  warehouse  concerning  medical  and
19    related  services.  The Illinois Department of Public Aid may
20    purchase services and  materials associated with the costs of
21    developing  and  implementing  a data  warehouse comprised of
22    management and decision making information in  regard to  the
23    liability  associated  with,  and utilization of, medical and
24    related services, out of moneys available for that purpose.
25        (305 ILCS 5/14-8) (from Ch. 23, par. 14-8)
26        (Text of Section before amendment by P.A. 89-507)
27        Sec. 14-8.  Disbursements to Hospitals.
28        (a)  For inpatient  hospital  services  rendered  on  and
29    after  September  1,  1991,  the  Illinois  Department  shall
30    reimburse  hospitals  for  inpatient services at an inpatient
31    payment rate calculated for  each  hospital  based  upon  the
SB1101 Enrolled            -47-                LRB9003523REmb
 1    Medicare  Prospective Payment System as set forth in Sections
 2    1886(b), (d), (g), and (h) of  the  federal  Social  Security
 3    Act,   and   the   regulations,   policies,   and  procedures
 4    promulgated thereunder, except as modified by  this  Section.
 5    Payment  rates for inpatient hospital services rendered on or
 6    after September 1, 1991 and on or before September  30,  1992
 7    shall  be  calculated  using the Medicare Prospective Payment
 8    rates in effect on September  1,  1991.   Payment  rates  for
 9    inpatient  hospital  services rendered on or after October 1,
10    1992 and on or before March  31,  1994  shall  be  calculated
11    using  the  Medicare  Prospective  Payment rates in effect on
12    September 1, 1992.   Payment  rates  for  inpatient  hospital
13    services  rendered  on  or  after  April  1,  1994  shall  be
14    calculated  using  the  Medicare  Prospective  Payment  rates
15    (including  the  Medicare  grouping methodology and weighting
16    factors  as  adjusted  pursuant  to  paragraph  (1)  of  this
17    subsection)  in   effect  90  days  prior  to  the  date   of
18    admission.   For  services rendered on or after July 1, 1995,
19    the  reimbursement   methodology   implemented   under   this
20    subsection  shall  not  include  those  costs  referred to in
21    Sections 1886(d)(5)(B) and 1886(h)  of  the  Social  Security
22    Act.  The  additional  payment amounts required under Section
23    1886(d)(5)(F) of  the  Social  Security  Act,  for  hospitals
24    serving  a  disproportionate  share of low-income or indigent
25    patients, are not required under this Section.  For  hospital
26    inpatient  services  rendered  on  or  after July 1, 1995 and
27    before July 1, 1997, the Illinois Department shall  reimburse
28    hospitals  using  the relative weighting factors and the base
29    payment rates calculated  for  each  hospital  that  were  in
30    effect  on  June  30,  1995,  less  the portion of such rates
31    attributed by the Illinois Department to the cost of  medical
32    education.
33             (1)  The weighting factors established under Section
34        1886(d)(4)  of  the Social Security Act shall not be used
SB1101 Enrolled            -48-                LRB9003523REmb
 1        in  the  reimbursement  system  established  under   this
 2        Section.  Rather, the Illinois Department shall establish
 3        by  rule  Medicaid  weighting  factors  to be used in the
 4        reimbursement system established under this Section.
 5             (2)  The Illinois Department shall  define  by  rule
 6        those hospitals or distinct parts of hospitals that shall
 7        be exempt from the reimbursement system established under
 8        this  Section.   In defining such hospitals, the Illinois
 9        Department shall take into consideration those  hospitals
10        exempt from the Medicare Prospective Payment System as of
11        September 1, 1991.  For hospitals defined as exempt under
12        this  subsection,  the  Illinois Department shall by rule
13        establish a reimbursement system for payment of inpatient
14        hospital services rendered  on  and  after  September  1,
15        1991.  For all hospitals that are children's hospitals as
16        defined in Section 5-5.02 of this Code, the reimbursement
17        methodology  shall,  through  June  30,  1992, net of all
18        applicable fees, at least equal each children's  hospital
19        1990  ICARE payment rates, indexed to the current year by
20        application of the DRI hospital cost index from  1989  to
21        the  year  in  which payments are made.  Excepting county
22        providers  as  defined  in  Article  XV  of  this   Code,
23        hospitals  licensed  under  the  University  of  Illinois
24        Hospital  Act,  and  facilities  operated by the Illinois
25        Department   of   Mental   Health    and    Developmental
26        Disabilities, for hospital inpatient services rendered on
27        or  after  July  1,  1995  and  before  July 1, 1997, the
28        Illinois Department shall reimburse children's hospitals,
29        as defined in 89  Illinois  Administrative  Code  Section
30        149.50(c)(3),  at  the  rates in effect on June 30, 1995,
31        and shall reimburse all other hospitals at the  rates  in
32        effect  on  June 30, 1995, less the portion of such rates
33        attributed by the Illinois  Department  to  the  cost  of
34        medical education.
SB1101 Enrolled            -49-                LRB9003523REmb
 1             (3)  (Blank)
 2             (4)  Notwithstanding  any  other  provision  of this
 3        Section, hospitals  that  on  August  31,  1991,  have  a
 4        contract  with  the Illinois Department under Section 3-4
 5        of the Illinois Health Finance Reform Act  may  elect  to
 6        continue  to  be  reimbursed  at  rates  stated  in  such
 7        contracts for general and specialty care.
 8             (5)  In  addition  to  any  payments made under this
 9        subsection (a), the Illinois Department  shall  make  the
10        adjustment  payments  required  by Section 5-5.02 of this
11        Code;  provided,  that  in  the  case  of  any   hospital
12        reimbursed  under  a  per  case methodology, the Illinois
13        Department shall add an amount equal to  the  product  of
14        the  hospital's  average  length  of  stay, less one day,
15        multiplied  by  20,  for  inpatient   hospital   services
16        rendered  on  or after September 1, 1991 and on or before
17        September 30, 1992.
18        (b)  (Blank)
19        (b-5)  Excepting county providers as defined  in  Article
20    XV  of  this Code, hospitals licensed under the University of
21    Illinois  Hospital  Act,  and  facilities  operated  by   the
22    Illinois   Department  of  Mental  Health  and  Developmental
23    Disabilities, for outpatient services rendered  on  or  after
24    July 1, 1995 and before July 1, 1997, the Illinois Department
25    shall  reimburse  children's  hospitals,  as  defined  in the
26    Illinois Administrative Code  Section  149.50(c)(3),  at  the
27    rates  in  effect on June 30, 1995, less that portion of such
28    rates attributed by the Illinois Department to the outpatient
29    indigent volume adjustment  and  shall  reimburse  all  other
30    hospitals  at  the rates in effect on June 30, 1995, less the
31    portions of such rates attributed by the Illinois  Department
32    to  the  cost  of  medical  education  and  attributed by the
33    Illinois  Department  to  the  outpatient   indigent   volume
34    adjustment.
SB1101 Enrolled            -50-                LRB9003523REmb
 1        (c)  In  addition  to any other payments under this Code,
 2    the   Illinois   Department   shall   develop   a    hospital
 3    disproportionate   share   reimbursement   methodology  that,
 4    effective July 1, 1991, through  September  30,  1992,  shall
 5    reimburse  hospitals  sufficiently  to  expend the fee monies
 6    described in subsection (b) of Section 14-3 of this Code  and
 7    the   federal   matching   funds  received  by  the  Illinois
 8    Department as a result of expenditures made by  the  Illinois
 9    Department  as  required  by  this subsection (c) and Section
10    14-2 that are attributable to fee  monies  deposited  in  the
11    Fund,  less  amounts  applied  to  adjustment  payments under
12    Section 5-5.02.
13        (d)  Critical Care Access Payments.
14             (1)  In addition to any other  payments  made  under
15        this  Code,  the  Illinois  Department  shall  develop  a
16        reimbursement  methodology  that shall reimburse Critical
17        Care Access Hospitals for the specialized  services  that
18        qualify  them  as  Critical  Care  Access  Hospitals.  No
19        adjustment  payments  shall be made under this subsection
20        on or after July 1, 1995.
21             (2)  "Critical Care Access Hospitals" includes,  but
22        is  not  limited  to, hospitals that meet at least one of
23        the following criteria:
24                  (A)  Hospitals    located    outside    of    a
25             metropolitan statistical area that are designated as
26             Level  II  Perinatal  Centers  and  that  provide  a
27             disproportionate  share  of  perinatal  services  to
28             recipients; or
29                  (B)  Hospitals that are designated as  Level  I
30             Trauma  Centers  (adult  or  pediatric)  and certain
31             Level  II  Trauma  Centers  as  determined  by   the
32             Illinois Department; or
33                  (C)  Hospitals    located    outside    of    a
34             metropolitan  statistical  area  and  that provide a
SB1101 Enrolled            -51-                LRB9003523REmb
 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
SB1101 Enrolled            -52-                LRB9003523REmb
 1    payments.    On   or  before  April  1,  1995,  the  Illinois
 2    Department  shall   issue   recommendations   regarding   (i)
 3    reimbursement  mechanisms  or  adjustment payments to reflect
 4    these costs and services,  including  methods  by  which  the
 5    payments  may  be  calculated  and  the  method  by which the
 6    payments may be financed, and (ii)  reimbursement  mechanisms
 7    or  adjustment  payments  to  reflect  costs  and services of
 8    federally qualified health centers with respect to recipients
 9    of medical assistance.
10        (g)  If one or more hospitals  file  suit  in  any  court
11    challenging  any  part  of  this  Article  XIV,  payments  to
12    hospitals  under  this  Article XIV shall be made only to the
13    extent that sufficient monies are available in the  Fund  and
14    only  to  the  extent  that  any  monies  in the Fund are not
15    prohibited from disbursement under any order of the court.
16        (h)  Payments   under   the   disbursement    methodology
17    described  in  this  Section  are  subject to approval by the
18    federal government in an appropriate State plan amendment.
19        (i)  The  Illinois  Department  may  by  rule   establish
20    criteria   for   and  develop  methodologies  for  adjustment
21    payments to hospitals participating under this Article.
22    (Source:  P.A.  88-88;  88-554,  eff.  7-26-94;  89-21,  eff.
23    7-1-95; 89-499, eff. 6-28-96; revised 8-26-96.)
24        (Text of Section after amendment by P.A. 89-507)
25        Sec. 14-8.  Disbursements to Hospitals.
26        (a)  For inpatient  hospital  services  rendered  on  and
27    after  September  1,  1991,  the  Illinois  Department  shall
28    reimburse  hospitals  for  inpatient services at an inpatient
29    payment rate calculated for  each  hospital  based  upon  the
30    Medicare  Prospective Payment System as set forth in Sections
31    1886(b), (d), (g), and (h) of  the  federal  Social  Security
32    Act,   and   the   regulations,   policies,   and  procedures
33    promulgated thereunder, except as modified by  this  Section.
34    Payment  rates for inpatient hospital services rendered on or
SB1101 Enrolled            -53-                LRB9003523REmb
 1    after September 1, 1991 and on or before September  30,  1992
 2    shall  be  calculated  using the Medicare Prospective Payment
 3    rates in effect on September  1,  1991.   Payment  rates  for
 4    inpatient  hospital  services rendered on or after October 1,
 5    1992 and on or before March  31,  1994  shall  be  calculated
 6    using  the  Medicare  Prospective  Payment rates in effect on
 7    September 1, 1992.   Payment  rates  for  inpatient  hospital
 8    services  rendered  on  or  after  April  1,  1994  shall  be
 9    calculated  using  the  Medicare  Prospective  Payment  rates
10    (including  the  Medicare  grouping methodology and weighting
11    factors  as  adjusted  pursuant  to  paragraph  (1)  of  this
12    subsection)  in   effect  90  days  prior  to  the  date   of
13    admission.   For  services rendered on or after July 1, 1995,
14    the  reimbursement   methodology   implemented   under   this
15    subsection  shall  not  include  those  costs  referred to in
16    Sections 1886(d)(5)(B) and 1886(h)  of  the  Social  Security
17    Act.  The  additional  payment amounts required under Section
18    1886(d)(5)(F) of  the  Social  Security  Act,  for  hospitals
19    serving  a  disproportionate  share of low-income or indigent
20    patients, are not required under this Section.  For  hospital
21    inpatient  services  rendered  on  or  after July 1, 1995 and
22    before July 1, 1997, the Illinois Department shall  reimburse
23    hospitals  using  the relative weighting factors and the base
24    payment rates calculated  for  each  hospital  that  were  in
25    effect  on  June  30,  1995,  less  the portion of such rates
26    attributed by the Illinois Department to the cost of  medical
27    education.
28             (1)  The weighting factors established under Section
29        1886(d)(4)  of  the Social Security Act shall not be used
30        in  the  reimbursement  system  established  under   this
31        Section.  Rather, the Illinois Department shall establish
32        by  rule  Medicaid  weighting  factors  to be used in the
33        reimbursement system established under this Section.
34             (2)  The Illinois Department shall  define  by  rule
SB1101 Enrolled            -54-                LRB9003523REmb
 1        those hospitals or distinct parts of hospitals that shall
 2        be exempt from the reimbursement system established under
 3        this  Section.   In defining such hospitals, the Illinois
 4        Department shall take into consideration those  hospitals
 5        exempt from the Medicare Prospective Payment System as of
 6        September 1, 1991.  For hospitals defined as exempt under
 7        this  subsection,  the  Illinois Department shall by rule
 8        establish a reimbursement system for payment of inpatient
 9        hospital services rendered  on  and  after  September  1,
10        1991.  For all hospitals that are children's hospitals as
11        defined in Section 5-5.02 of this Code, the reimbursement
12        methodology  shall,  through  June  30,  1992, net of all
13        applicable fees, at least equal each children's  hospital
14        1990  ICARE payment rates, indexed to the current year by
15        application of the DRI hospital cost index from  1989  to
16        the  year  in  which payments are made.  Excepting county
17        providers  as  defined  in  Article  XV  of  this   Code,
18        hospitals  licensed  under  the  University  of  Illinois
19        Hospital  Act,  and facilities operated by the Department
20        of Mental Health and Developmental Disabilities  (or  its
21        successor, the Department of Human Services) for hospital
22        inpatient  services rendered on or after July 1, 1995 and
23        before  July  1,  1997,  the  Illinois  Department  shall
24        reimburse children's hospitals, as defined in 89 Illinois
25        Administrative Code Section 149.50(c)(3), at the rates in
26        effect on June 30, 1995, and shall  reimburse  all  other
27        hospitals  at  the rates in effect on June 30, 1995, less
28        the portion of such  rates  attributed  by  the  Illinois
29        Department to the cost of medical education.
30             (3)  (Blank)
31             (4)  Notwithstanding  any  other  provision  of this
32        Section, hospitals  that  on  August  31,  1991,  have  a
33        contract  with  the Illinois Department under Section 3-4
34        of the Illinois Health Finance Reform Act  may  elect  to
SB1101 Enrolled            -55-                LRB9003523REmb
 1        continue  to  be  reimbursed  at  rates  stated  in  such
 2        contracts for general and specialty care.
 3             (5)  In  addition  to  any  payments made under this
 4        subsection (a), the Illinois Department  shall  make  the
 5        adjustment  payments  required  by Section 5-5.02 of this
 6        Code;  provided,  that  in  the  case  of  any   hospital
 7        reimbursed  under  a  per  case methodology, the Illinois
 8        Department shall add an amount equal to  the  product  of
 9        the  hospital's  average  length  of  stay, less one day,
10        multiplied  by  20,  for  inpatient   hospital   services
11        rendered  on  or after September 1, 1991 and on or before
12        September 30, 1992.
13        (b)  (Blank)
14        (b-5)  Excepting county providers as defined  in  Article
15    XV  of  this Code, hospitals licensed under the University of
16    Illinois  Hospital  Act,  and  facilities  operated  by   the
17    Illinois   Department  of  Mental  Health  and  Developmental
18    Disabilities (or  its  successor,  the  Department  of  Human
19    Services)  for  outpatient services rendered on or after July
20    1, 1995 and before July  1,  1997,  the  Illinois  Department
21    shall  reimburse  children's  hospitals,  as  defined  in the
22    Illinois Administrative Code  Section  149.50(c)(3),  at  the
23    rates  in  effect on June 30, 1995, less that portion of such
24    rates attributed by the Illinois Department to the outpatient
25    indigent volume adjustment  and  shall  reimburse  all  other
26    hospitals  at  the rates in effect on June 30, 1995, less the
27    portions of such rates attributed by the Illinois  Department
28    to  the  cost  of  medical  education  and  attributed by the
29    Illinois  Department  to  the  outpatient   indigent   volume
30    adjustment.
31        (c)  In  addition  to any other payments under this Code,
32    the   Illinois   Department   shall   develop   a    hospital
33    disproportionate   share   reimbursement   methodology  that,
34    effective July 1, 1991, through  September  30,  1992,  shall
SB1101 Enrolled            -56-                LRB9003523REmb
 1    reimburse  hospitals  sufficiently  to  expend the fee monies
 2    described in subsection (b) of Section 14-3 of this Code  and
 3    the   federal   matching   funds  received  by  the  Illinois
 4    Department as a result of expenditures made by  the  Illinois
 5    Department  as  required  by  this subsection (c) and Section
 6    14-2 that are attributable to fee  monies  deposited  in  the
 7    Fund,  less  amounts  applied  to  adjustment  payments under
 8    Section 5-5.02.
 9        (d)  Critical Care Access Payments.
10             (1)  In addition to any other  payments  made  under
11        this  Code,  the  Illinois  Department  shall  develop  a
12        reimbursement  methodology  that shall reimburse Critical
13        Care Access Hospitals for the specialized  services  that
14        qualify  them  as  Critical  Care  Access  Hospitals.  No
15        adjustment  payments  shall be made under this subsection
16        on or after July 1, 1995.
17             (2)  "Critical Care Access Hospitals" includes,  but
18        is  not  limited  to, hospitals that meet at least one of
19        the following criteria:
20                  (A)  Hospitals    located    outside    of    a
21             metropolitan statistical area that are designated as
22             Level  II  Perinatal  Centers  and  that  provide  a
23             disproportionate  share  of  perinatal  services  to
24             recipients; or
25                  (B)  Hospitals that are designated as  Level  I
26             Trauma  Centers  (adult  or  pediatric)  and certain
27             Level  II  Trauma  Centers  as  determined  by   the
28             Illinois Department; or
29                  (C)  Hospitals    located    outside    of    a
30             metropolitan  statistical  area  and  that provide a
31             disproportionate share of  obstetrical  services  to
32             recipients.
33        (e)  Inpatient  high  volume  adjustment.   For  hospital
34    inpatient  services, effective with rate periods beginning on
SB1101 Enrolled            -57-                LRB9003523REmb
 1    or after October 1, 1993,  in  addition  to  rates  paid  for
 2    inpatient  services  by the Illinois Department, the Illinois
 3    Department  shall  make  adjustment  payments  for  inpatient
 4    services furnished by Medicaid high  volume  hospitals.   The
 5    Illinois  Department  shall  establish  by  rule criteria for
 6    qualifying as a  Medicaid  high  volume  hospital  and  shall
 7    establish by rule a reimbursement methodology for calculating
 8    these  adjustment payments to Medicaid high volume hospitals.
 9    No adjustment payment shall be made under this subsection for
10    services rendered on or after July 1, 1995.
11        (f)  The Illinois Department  shall  modify  its  current
12    rules  governing  adjustment  payments  for  targeted access,
13    critical care access,  and  uncompensated  care  to  classify
14    those   adjustment   payments   as   not  being  payments  to
15    disproportionate share  hospitals  under  Title  XIX  of  the
16    federal   Social  Security  Act.  Rules  adopted  under  this
17    subsection shall not be effective with  respect  to  services
18    rendered  on  or after July 1, 1995.  The Illinois Department
19    has no obligation to adopt or implement any rules or make any
20    payments under this subsection for services  rendered  on  or
21    after July 1, 1995.
22        (f-5)  The  State  recognizes that adjustment payments to
23    hospitals providing certain  services  or  incurring  certain
24    costs  may  be necessary to assure that recipients of medical
25    assistance  have  adequate  access   to   necessary   medical
26    services.   These  adjustments  include payments for teaching
27    costs  and  uncompensated  care,  trauma   center   payments,
28    rehabilitation  hospital payments, perinatal center payments,
29    obstetrical care payments, targeted access payments, Medicaid
30    high  volume  payments,  and   outpatient   indigent   volume
31    payments.    On   or  before  April  1,  1995,  the  Illinois
32    Department  shall   issue   recommendations   regarding   (i)
33    reimbursement  mechanisms  or  adjustment payments to reflect
34    these costs and services,  including  methods  by  which  the
SB1101 Enrolled            -58-                LRB9003523REmb
 1    payments  may  be  calculated  and  the  method  by which the
 2    payments may be financed, and (ii)  reimbursement  mechanisms
 3    or  adjustment  payments  to  reflect  costs  and services of
 4    federally qualified health centers with respect to recipients
 5    of medical assistance.
 6        (g)  If one or more hospitals  file  suit  in  any  court
 7    challenging  any  part  of  this  Article  XIV,  payments  to
 8    hospitals  under  this  Article XIV shall be made only to the
 9    extent that sufficient monies are available in the  Fund  and
10    only  to  the  extent  that  any  monies  in the Fund are not
11    prohibited from disbursement under any order of the court.
12        (h)  Payments   under   the   disbursement    methodology
13    described  in  this  Section  are  subject to approval by the
14    federal government in an appropriate State plan amendment.
15        (i)  The  Illinois  Department  may  by  rule   establish
16    criteria   for   and  develop  methodologies  for  adjustment
17    payments to hospitals participating under this Article.
18    (Source:  P.A.  88-88;  88-554,  eff.  7-26-94;  89-21,  eff.
19    7-1-95; 89-499, eff. 6-28-96; 89-507,  eff.  7-1-97;  revised
20    8-26-96.)
21        Section  40.   The Unified Code of Corrections is amended
22    by changing Section 3-4-1 as follows:
23        (730 ILCS 5/3-4-1) (from Ch. 38, par. 1003-4-1)
24        Sec. 3-4-1.  Gifts  and  Grants;  Special  Trusts  Funds;
25    Department of Corrections Reimbursement Fund.
26        (a)  The  Department may accept, receive and use, for and
27    in behalf of the State, any moneys, goods or  services  given
28    for  general  purposes  of  this  Code Chapter by the federal
29    government or from  any  other  source,  public  or  private,
30    including collections from inmates, reimbursement of payments
31    under  the  Workers'  Compensation  Act, and commissions from
32    inmate collect call telephone systems under an agreement with
SB1101 Enrolled            -59-                LRB9003523REmb
 1    the Department of Central  Management  Services.   For  these
 2    purposes  the  Department and may comply with such conditions
 3    and enter into such agreements upon  such  covenants,  terms,
 4    and  conditions  as  the  Department  may  deem  necessary or
 5    desirable, if the agreement is not  in  conflict  with  State
 6    law.
 7        (b)  The  Department of Corrections Reimbursement Fund is
 8    hereby created as a special fund in the State treasury.   The
 9    moneys   deposited   into   the   Department  of  Corrections
10    Reimbursement Fund shall be appropriated to the Department of
11    Corrections for the expenses of the Department.
12        The following shall be deposited into the  Department  of
13    Corrections Reimbursement Fund:
14             (i)  Moneys  received or recovered by the Department
15        of Corrections as reimbursement for expenses incurred for
16        the incarceration of convicted persons.
17             (ii)  Moneys received or recovered by the Department
18        as reimbursement of  payments  made  under  the  Workers'
19        Compensation Act.
20             (iii)  Moneys   received   by   the   Department  as
21        commissions from inmate collect call telephone systems.
22             (iv)  Moneys received or recovered by the Department
23        as reimbursement for expenses incurred by the  employment
24        of  persons referred to the Department as participants in
25        the federal Job Training Partnership Act programs.
26             (v)  Federal  moneys,  including  reimbursement  and
27    advances for services rendered or to be rendered  and  moneys
28    for   other   than   educational  purposes,  under  grant  or
29    contract., shall be deposited with the  State  Treasurer  and
30    held  and  disbursed  by  him  under  Section 1 of "An Act in
31    relation to the receipt, custody and  disbursement  of  money
32    allotted  by  the  United  States  of  America  or any agency
33    thereof for use in this State", approved July 3, 1939, as now
34    or hereafter amended.
SB1101 Enrolled            -60-                LRB9003523REmb
 1        (c)  Other moneys received by the  Department,  including
 2    reimbursement  for services rendered under grant or contract,
 3    may be deposited in special trust funds  established  by  the
 4    Department  with  the  State  Treasurer,  to  be  held by him
 5    outside the State Treasury as ex officio custodian  in  banks
 6    or  savings and loan associations which have been approved by
 7    him as State depositories under "AN ACT in relation to  State
 8    moneys",  and  with  respect  to  such  moneys,  he  shall be
 9    entitled to the same rights and privileges as are provided by
10    such Act with respect to moneys in the Treasury of the  State
11    of Illinois.
12    (Source: P.A. 83-541.)
13        Section  95.   No  acceleration or delay.  Where this Act
14    makes changes in a statute that is represented in this Act by
15    text that is not yet or no longer in effect (for  example,  a
16    Section  represented  by  multiple versions), the use of that
17    text does not accelerate or delay the taking  effect  of  (i)
18    the  changes made by this Act or (ii) provisions derived from
19    any other Public Act.
20        Section 99. Effective date.  This Act takes  effect  July
21    1, 1997.

[ Top ]