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92nd General Assembly

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Public Act 92-0597

HB4580 Enrolled                                LRB9213371REmb

    AN ACT in relation to budget implementation.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  1.  Short  title.   This Act may be cited as the
FY2003 Budget Implementation Act.

    Section 5.  Purpose.  It is the purpose of  this  Act  to
make  certain changes in State programs that are necessary to
implement the State's FY2003 budget.

    Section 10.  The Illinois Administrative Procedure Act is
amended by changing Section 5-45 as follows:

    (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
    Sec. 5-45.  Emergency rulemaking.
    (a)  "Emergency" means the  existence  of  any  situation
that  any agency finds reasonably constitutes a threat to the
public interest, safety, or welfare.
    (b)  If any agency finds that an  emergency  exists  that
requires  adoption of a rule upon fewer days than is required
by Section 5-40 and states in writing its  reasons  for  that
finding, the agency may adopt an emergency rule without prior
notice   or   hearing  upon  filing  a  notice  of  emergency
rulemaking with the Secretary of State  under  Section  5-70.
The  notice  shall include the text of the emergency rule and
shall be published in the Illinois Register.  Consent  orders
or  other  court orders adopting settlements negotiated by an
agency  may  be  adopted  under  this  Section.   Subject  to
applicable  constitutional  or   statutory   provisions,   an
emergency  rule  becomes  effective  immediately  upon filing
under Section 5-65 or at a stated date  less  than  10   days
thereafter.   The  agency's  finding  and  a statement of the
specific reasons for the finding  shall  be  filed  with  the
rule.   The  agency  shall  take  reasonable  and appropriate
measures to make emergency rules known to the persons who may
be affected by them.
    (c)  An emergency rule may be effective for a  period  of
not longer than 150 days, but the agency's authority to adopt
an  identical  rule  under Section 5-40 is not precluded.  No
emergency rule may be adopted more than once in any 24  month
period,   except  that  this  limitation  on  the  number  of
emergency rules that may be adopted in a 24 month period does
not apply to (i) emergency rules that make additions  to  and
deletions  from  the  Drug Manual under Section 5-5.16 of the
Illinois Public Aid Code or the generic drug formulary  under
Section  3.14  of the Illinois Food, Drug and Cosmetic Act or
(ii) emergency rules adopted by the Pollution  Control  Board
before  July  1,  1997 to implement portions of the Livestock
Management Facilities  Act.   Two  or  more  emergency  rules
having  substantially  the  same  purpose and effect shall be
deemed to be a single rule for purposes of this Section.
    (d)  In order to provide for the expeditious  and  timely
implementation  of  the  State's  fiscal  year  1999  budget,
emergency  rules  to  implement  any  provision of Public Act
90-587 or 90-588 or any other budget  initiative  for  fiscal
year  1999  may be adopted in accordance with this Section by
the agency  charged  with  administering  that  provision  or
initiative,  except  that  the  24-month  limitation  on  the
adoption  of  emergency  rules and the provisions of Sections
5-115 and 5-125 do not apply  to  rules  adopted  under  this
subsection  (d).   The adoption of emergency rules authorized
by this subsection (d) shall be deemed to  be  necessary  for
the public interest, safety, and welfare.
    (e)  In  order  to provide for the expeditious and timely
implementation  of  the  State's  fiscal  year  2000  budget,
emergency rules to implement any provision of this amendatory
Act  of  the  91st  General  Assembly  or  any  other  budget
initiative for fiscal year 2000 may be adopted in  accordance
with  this  Section  by the agency charged with administering
that  provision  or  initiative,  except  that  the  24-month
limitation  on  the  adoption  of  emergency  rules  and  the
provisions of Sections 5-115 and 5-125 do not apply to  rules
adopted under this subsection (e).  The adoption of emergency
rules authorized by this subsection (e) shall be deemed to be
necessary for the public interest, safety, and welfare.
    (f)  In  order  to provide for the expeditious and timely
implementation  of  the  State's  fiscal  year  2001  budget,
emergency rules to implement any provision of this amendatory
Act  of  the  91st  General  Assembly  or  any  other  budget
initiative for fiscal year 2001 may be adopted in  accordance
with  this  Section  by the agency charged with administering
that  provision  or  initiative,  except  that  the  24-month
limitation  on  the  adoption  of  emergency  rules  and  the
provisions of Sections 5-115 and 5-125 do not apply to  rules
adopted under this subsection (f).  The adoption of emergency
rules authorized by this subsection (f) shall be deemed to be
necessary for the public interest, safety, and welfare.
    (g)  In  order  to provide for the expeditious and timely
implementation  of  the  State's  fiscal  year  2002  budget,
emergency rules to implement any provision of this amendatory
Act  of  the  92nd  General  Assembly  or  any  other  budget
initiative for fiscal year 2002 may be adopted in  accordance
with  this  Section  by the agency charged with administering
that  provision  or  initiative,  except  that  the  24-month
limitation  on  the  adoption  of  emergency  rules  and  the
provisions of Sections 5-115 and 5-125 do not apply to  rules
adopted under this subsection (g).  The adoption of emergency
rules authorized by this subsection (g) shall be deemed to be
necessary for the public interest, safety, and welfare.
    (h)  In  order  to provide for the expeditious and timely
implementation  of  the  State's  fiscal  year  2003  budget,
emergency rules to implement any provision of this amendatory
Act  of  the  92nd  General  Assembly  or  any  other  budget
initiative for fiscal year 2003 may be adopted in  accordance
with  this  Section  by the agency charged with administering
that  provision  or  initiative,  except  that  the  24-month
limitation  on  the  adoption  of  emergency  rules  and  the
provisions of Sections 5-115 and 5-125 do not apply to  rules
adopted under this subsection (h).  The adoption of emergency
rules authorized by this subsection (h) shall be deemed to be
necessary for the public interest, safety, and welfare.
(Source:  P.A.  91-24,  eff.  7-1-99;  91-357,  eff. 7-29-99;
91-712, eff. 7-1-00; 92-10, eff. 6-11-01.)

    Section 15.  The Illinois Act on the Aging is amended  by
changing Section 4.02 as follows:

    (20 ILCS 105/4.02) (from Ch. 23, par. 6104.02)
    Sec.  4.02.  The  Department shall establish a program of
services  to  prevent  unnecessary  institutionalization   of
persons age 60 and older in need of long term care or who are
established as persons who suffer from Alzheimer's disease or
a  related  disorder under the Alzheimer's Disease Assistance
Act, thereby enabling them to remain in their own homes or in
other living arrangements.  Such preventive  services,  which
may  be  coordinated  with  other  programs  for the aged and
monitored by area agencies on aging in cooperation  with  the
Department,  may  include, but are not limited to, any or all
of the following:
         (a)  home health services;
         (b)  home nursing services;
         (c)  homemaker services;
         (d)  chore and housekeeping services;
         (e)  day care services;
         (f)  home-delivered meals;
         (g)  education in self-care;
         (h)  personal care services;
         (i)  adult day health services;
         (j)  habilitation services;
         (k)  respite care;
         (l)  other  nonmedical  social  services  that   may
    enable the person to become self-supporting; or
         (m)  clearinghouse   for   information  provided  by
    senior citizen home owners who want to rent rooms  to  or
    share living space with other senior citizens.
    The  Department shall establish eligibility standards for
such services taking into consideration the  unique  economic
and  social  needs of the target population for whom they are
to be provided.  Such eligibility standards shall be based on
the  recipient's  ability  to  pay  for  services;  provided,
however,  that  in  determining  the  amount  and  nature  of
services for which a person may qualify, consideration  shall
not  be  given to the value of cash, property or other assets
held in the name of the person's spouse pursuant to a written
agreement dividing marital property into equal  but  separate
shares  or pursuant to a transfer of the person's interest in
a home to his spouse, provided that the spouse's share of the
marital property is not made available to the person  seeking
such services.
    Beginning July 1, 2002, the Department shall require as a
condition  of  eligibility that all applicants and recipients
apply for medical assistance under Article V of the  Illinois
Public  Aid  Code in accordance with rules promulgated by the
Department.
    The Department shall, in conjunction with the  Department
of  Public  Aid,  seek  appropriate amendments under Sections
1915 and 1924 of the Social Security Act.  The purpose of the
amendments shall  be  to  extend  eligibility  for  home  and
community  based services under Sections 1915 and 1924 of the
Social Security Act to persons who transfer  to  or  for  the
benefit  of  a  spouse  those amounts of income and resources
allowed under  Section  1924  of  the  Social  Security  Act.
Subject  to  the  approval of such amendments, the Department
shall extend the provisions of Section 5-4  of  the  Illinois
Public Aid Code to persons who, but for the provision of home
or  community-based services, would require the level of care
provided in an institution, as is  provided  for  in  federal
law.   Those  persons  no  longer  found  to  be eligible for
receiving noninstitutional services due  to  changes  in  the
eligibility  criteria  shall be given 60 days notice prior to
actual  termination.   Those  persons  receiving  notice   of
termination  may  contact  the  Department  and  request  the
determination  be  appealed  at  any  time  during the 60 day
notice period.  With the exception of the  lengthened  notice
and  time  frame  for  the appeal request, the appeal process
shall follow the normal procedure.  In addition, each  person
affected  regardless  of  the  circumstances for discontinued
eligibility shall be given  notice  and  the  opportunity  to
purchase  the  necessary  services through the Community Care
Program.  If  the  individual  does  not  elect  to  purchase
services,  the  Department  shall  advise  the  individual of
alternative services.  The target population  identified  for
the  purposes  of  this  Section are persons age 60 and older
with an identified service need.  Priority shall be given  to
those  who are at imminent risk of institutionalization.  The
services shall be provided to eligible  persons  age  60  and
older  to  the  extent that the cost of the services together
with the other personal maintenance expenses of  the  persons
are  reasonably related to the standards established for care
in a group facility appropriate to  the  person's  condition.
These   non-institutional   services,   pilot   projects   or
experimental  facilities  may  be  provided  as part of or in
addition to those authorized by federal law or  those  funded
and  administered  by  the Department of Human Services.  The
Departments of Human Services,  Public  Aid,  Public  Health,
Veterans'  Affairs,  and  Commerce  and Community Affairs and
other  appropriate  agencies  of  State,  federal  and  local
governments shall cooperate with the Department on  Aging  in
the  establishment  and  development of the non-institutional
services.  The Department shall require an annual audit  from
all chore/housekeeping and homemaker vendors contracting with
the  Department  under  this Section.  The annual audit shall
assure  that  each  audited  vendor's   procedures   are   in
compliance  with  Department's financial reporting guidelines
requiring a 27% administrative cost split and a 73%  employee
wages  and benefits cost split.  The audit is a public record
under the Freedom of Information Act.  The  Department  shall
execute,  relative  to the nursing home prescreening project,
written inter-agency agreements with the Department of  Human
Services  and  the  Department  of  Public Aid, to effect the
following:  (1)  intake  procedures  and  common  eligibility
criteria    for    those    persons    who    are   receiving
non-institutional services; and  (2)  the  establishment  and
development  of  non-institutional  services  in areas of the
State  where  they  are  not  currently  available   or   are
undeveloped.   On  and  after  July 1, 1996, all nursing home
prescreenings for individuals 60 years of age or older  shall
be conducted by the Department.
    The  Department  is  authorized  to establish a system of
recipient copayment for services provided under this Section,
such copayment to be based upon the  recipient's  ability  to
pay  but in no case to exceed the actual cost of the services
provided. Additionally, any  portion  of  a  person's  income
which  is  equal to or less than the federal poverty standard
shall not be considered by the Department in determining  the
copayment.   The  level  of  such copayment shall be adjusted
whenever necessary to reflect any change  in  the  officially
designated federal poverty standard.
    The    Department,   or   the   Department's   authorized
representative, shall recover the amount of  moneys  expended
for  services provided to or in behalf of a person under this
Section by a claim against the person's estate or against the
estate of the person's surviving spouse, but no recovery  may
be had until after the death of the surviving spouse, if any,
and  then  only at such time when there is no surviving child
who is under  age  21,  blind,  or  permanently  and  totally
disabled.   This  paragraph, however, shall not bar recovery,
at the death of the person, of moneys for  services  provided
to  the  person or in behalf of the person under this Section
to which the person was  not  entitled;  provided  that  such
recovery  shall not be enforced against any real estate while
it is occupied as a homestead  by  the  surviving  spouse  or
other  dependent,  if  no claims by other creditors have been
filed against the estate, or, if such claims have been filed,
they remain dormant for failure of prosecution or failure  of
the  claimant  to compel administration of the estate for the
purpose of payment.  This paragraph shall  not  bar  recovery
from  the estate of a spouse, under Sections 1915 and 1924 of
the Social Security Act  and  Section  5-4  of  the  Illinois
Public  Aid  Code,  who  precedes a person receiving services
under this Section in death.  All moneys for services paid to
or in behalf of  the  person  under  this  Section  shall  be
claimed  for  recovery  from  the  deceased  spouse's estate.
"Homestead", as used in this paragraph,  means  the  dwelling
house  and  contiguous  real  estate  occupied by a surviving
spouse or relative, as defined by the rules  and  regulations
of  the  Illinois Department of Public Aid, regardless of the
value of the property.
    The  Department  shall  develop  procedures  to   enhance
availability  of  services  on  evenings, weekends, and on an
emergency basis to meet  the  respite  needs  of  caregivers.
Procedures  shall  be  developed to permit the utilization of
services in successive blocks of 24 hours up to  the  monthly
maximum  established  by  the Department.   Workers providing
these services shall be appropriately trained.
    Beginning on the effective date of this Amendatory Act of
1991, no person may perform chore/housekeeping and  homemaker
services  under  a  program authorized by this Section unless
that person has been issued a certificate of  pre-service  to
do  so  by his or her employing agency.  Information gathered
to effect such certification shall include (i)  the  person's
name,  (ii)  the  date  the  person  was  hired by his or her
current employer, and (iii) the training, including dates and
levels.  Persons engaged in the program  authorized  by  this
Section  before  the effective date of this amendatory Act of
1991 shall be issued a certificate of all pre- and in-service
training  from  his  or  her  employer  upon  submitting  the
necessary  information.   The  employing  agency   shall   be
required  to  retain records of all staff pre- and in-service
training, and shall provide such records  to  the  Department
upon  request and upon termination of the employer's contract
with the Department.  In addition, the  employing  agency  is
responsible  for the issuance of certifications of in-service
training completed to their employees.
    The Department is required to develop a system to  ensure
that  persons  working  as  homemakers and chore housekeepers
receive increases in their wages  when  the  federal  minimum
wage  is  increased by requiring vendors to certify that they
are meeting the federal minimum wage statute  for  homemakers
and  chore housekeepers.  An employer that cannot ensure that
the minimum wage increase is being given  to  homemakers  and
chore   housekeepers   shall   be   denied  any  increase  in
reimbursement costs.
    The Department on  Aging  and  the  Department  of  Human
Services shall cooperate in the development and submission of
an annual report on programs and services provided under this
Section.   Such joint report shall be filed with the Governor
and the General Assembly on or before September 30 each year.
    The requirement for reporting  to  the  General  Assembly
shall  be  satisfied  by filing copies of the report with the
Speaker, the Minority Leader and the Clerk of  the  House  of
Representatives  and  the  President, the Minority Leader and
the Secretary of the  Senate  and  the  Legislative  Research
Unit,  as  required  by  Section  3.1 of the General Assembly
Organization Act  and filing such additional copies with  the
State  Government  Report Distribution Center for the General
Assembly as is required under paragraph (t) of Section  7  of
the State Library Act.
    Those  persons  previously  found  eligible for receiving
non-institutional services whose services  were  discontinued
under  the  Emergency Budget Act of Fiscal Year 1992, and who
do not meet the eligibility standards in effect on  or  after
July  1,  1992,  shall remain ineligible on and after July 1,
1992.  Those persons previously not  required  to  cost-share
and  who were required to cost-share effective March 1, 1992,
shall continue to meet cost-share requirements on  and  after
July  1,  1992.   Beginning July 1, 1992, all clients will be
required  to  meet   eligibility,   cost-share,   and   other
requirements  and  will have services discontinued or altered
when they fail to meet these requirements.
(Source: P.A. 91-303, eff. 1-1-00; 91-798, eff. 7-9-00.)

    Section  20.   The  Mental   Health   and   Developmental
Disabilities  Administrative Act is amended by adding Section
18.4 as follows:

    (20 ILCS 1705/18.4 new)
    Sec. 18.4.  Community Mental Health Medicaid Trust  Fund;
reimbursement.
    (a)  The  Community  Mental Health Medicaid Trust Fund is
hereby created in the State Treasury.
    (b)  Any  funds  paid  to  the  State  by   the   federal
government  under  Title  XIX  or  Title  XXI  of  the Social
Security Act  for  services  delivered  by  community  mental
health  services  providers, and any interest earned thereon,
shall be deposited directly into the Community Mental  Health
Medicaid Trust Fund.
    (c)  The  Department  shall  reimburse  community  mental
health  services  providers  for  Medicaid-reimbursed  mental
health  services provided to eligible individuals.  Moneys in
the Community Mental Health Medicaid Trust Fund may  be  used
for that purpose.
    (d)  As used in this Section:
    "Medicaid-reimbursed   mental   health   services"  means
services provided by a community mental health provider under
an  agreement  with  the  Department  that  is  eligible  for
reimbursement under the federal Title XIX  program  or  Title
XXI program.
    "Provider" means a community agency that is funded by the
Department to provide a Medicaid-reimbursed service.
    "Services"  means  mental  health services provided under
one of the following programs:
         (1)  Medicaid Clinic Option;
         (2)  Medicaid Rehabilitation Option;
         (3)  Targeted Case Management.

    Section 25.  The Illinois Health Finance  Reform  Act  is
amended  by  changing  Sections  2-1,  4-1,  4-2,  and 4-4 as
follows:

    (20 ILCS 2215/2-1) (from Ch. 111 1/2, par. 6502-1)
    Sec. 2-1.   Council  abolished.   Authorized.   There  is
hereby  created  The  Illinois  Health  Care Cost Containment
Council is abolished at the close of  business  on  June  30,
2002.   Its  successor  agency, for purposes of the Successor
Agency Act and Section 9b of the State Finance  Act,  is  the
Illinois  Department of Public Health. It shall consist of 13
members appointed by the Governor with the advice and consent
of the Senate as follows: 5 members to represent providers as
follows:  2 members to represent Illinois hospitals at  least
one of which must represent a small rural hospital, 2 members
to  represent physicians licensed to practice medicine in all
its branches, and 1 member to represent  ambulatory  surgical
treatment  centers;  3  members  to  represent  consumers;  2
members  to  represent  insurance companies; and 3 members to
represent businesses.
    The members of the Council shall be appointed for  3-year
terms.
    No  more  than  7  members may be from the same political
party.
    Members shall be  appointed  within  30  days  after  the
effective date of this Act.  The additional members appointed
under the amendatory Act of the 91st General Assembly must be
appointed  within  30  days  after the effective date of this
amendatory Act of the 91st General Assembly. The  members  of
the  Council  shall  receive  reimbursement  of  their actual
expenses  incurred  in  connection  with  their  service;  in
addition, each member shall receive compensation  of  $150  a
day for each day served at regular or special meetings of the
Council,  except  that  such  compensation  shall  not exceed
$20,000 in any one year for any member.   The  Council  shall
elect  a  Chairman from among its members, and shall have the
power to organize and appoint such other officers as  it  may
deem necessary.
    All  appointments shall be made in writing and filed with
the Secretary of State as a public record.
(Source: P.A. 91-756, eff. 6-2-00.)

    (20 ILCS 2215/4-1) (from Ch. 111 1/2, par. 6504-1)
    Sec. 4-1.  Illinois Health Finance Data Collection.   The
General  Assembly finds that public sector and private sector
purchasers  of  health  care  need  health  care   cost   and
utilization  data  to  enable  them  to make informed choices
among health care providers in the market place.  The General
Assembly finds it necessary  to  create  a  mandated  uniform
system   in   Illinois  for  the  collection,  analysis,  and
distribution of health care cost and utilization data.
    The purpose of this Article is to insure  that  data  are
available   to  make  valid  comparisons  among  health  care
providers of prices and utilization of services provided  and
to  support  ongoing  analysis  of  the  health care delivery
system so that the Council can fulfill its mandate.
(Source: P.A. 91-756, eff. 6-2-00.)

    (20 ILCS 2215/4-2) (from Ch. 111 1/2, par. 6504-2)
    Sec. 4-2.  Powers and duties.
    (a)  (Blank).  The Illinois Health Care Cost  Containment
Council  may  enter  into any agreement with any corporation,
association or other entity it deems appropriate to undertake
the process described in this Article for the compilation and
analysis of data collected by the Council and to  conduct  or
contract  for studies on health-related questions carried out
in pursuance of the purposes of this Article.  The  agreement
may  provide  for  the  corporation, association or entity to
prepare and distribute or make available data to health  care
providers,   health  care  subscribers,  third-party  payors,
government and the general public,  in  accordance  with  the
rules  of  confidentiality  and  review to be developed under
this Act.
    (b)  (Blank). The input data collected by  and  furnished
to  the  Council  or  designated  corporation, association or
entity pursuant to this Section shall not be a public  record
under  the  Illinois  Freedom  of Information Act.  It is the
intent of this Act and of the regulations written pursuant to
it to  protect  the  confidentiality  of  individual  patient
information  and  the  proprietary  information of commercial
insurance carriers and health care providers.  Data specified
in subsections (e) and (e-5) shall be released on a  hospital
specific  and  licensed  ambulatory surgical treatment center
specific basis to facilitate comparisons among hospitals  and
licensed ambulatory surgical treatment centers by purchasers.
    (c)  (Blank).  The  Council shall require the Departments
of Public Health and Public Aid and hospitals located in  the
State  to  assist the Council in gathering and submitting the
following hospital-specific financial  information,  and  the
Council   is   authorized   to  share  this  data  with  both
Departments to reduce the burden  on  hospitals  by  avoiding
duplicate data collection:

OPERATING REVENUES
    (1)  Net patient service revenue
    (2)  Other revenue
    (3)  Total operating revenue

OPERATING EXPENSES
    (4)  Bad debt expense
    (5)  Total operating expenses

NON-OPERATING GAINS/LOSSES
    (6)  Total non-operating gains
    (7)  Total non-operating losses

PATIENT CARE REVENUES
    (8)  Gross inpatient revenue
    (9)  Gross outpatient revenue
    (10)  Other Patient care revenue
    (11)  Total patient revenue
    (12)  Total gross patient care revenue
    (13)  Medicare gross revenue
    (14)  Medicaid gross revenue
    (15)  Total other gross revenue

DEDUCTIONS FROM REVENUE
    (16)  Charity care
    (17)  Medicare allowance
    (18)  Medicaid allowance
    (19)  Other contractual allowances
    (20)  Other allowances
    (21)  Total Deductions

ASSETS
    (22)  Operating cash and short-term investments
    (23)  Estimated patient accounts receivable
    (24)  Other current assets
    (25)  Total current assets
    (26)  Total other assets
    (27)  Total Assets

LIABILITIES AND FUND BALANCES
    (28)  Total current liabilities
    (29)  Long Term Debt
    (30)  Other liabilities
    (31)  Total liabilities
    (32)  Total liabilities and fund balances
    All financial data collected by the Council from publicly
available  sources  such  as  the  HCFA  is releasable by the
Council on a hospital specific basis when appropriate.
    (d)  Uniform Provider Utilization and Charge Information.
The Council shall require that:
         (1)  The Department of Public Health  shall  require
    that  hospitals  licensed  to  operate  in  the  State of
    Illinois adopt a uniform system  for  submitting  patient
    charges  for  payment  from  public  and  private  payors
    effective  January  1,  1985.  This system shall be based
    upon  adoption  of  the  uniform  hospital  billing  form
    (UB-92) or its successor form developed by  the  National
    Uniform Billing Committee.
         (2)  (Blank).
         (3)  The  Department  of Insurance shall require all
    third-party  payors,  including  but  not   limited   to,
    licensed   insurers,   medical   and   hospital   service
    corporations,   health   maintenance  organizations,  and
    self-funded employee health plans, to accept the  uniform
    billing   form,   without   attachment  as  submitted  by
    hospitals pursuant to paragraph  (1)  of  subsection  (d)
    above,  effective  January  1,  1985;  provided, however,
    nothing shall prevent all such third  party  payors  from
    requesting  additional information necessary to determine
    eligibility for benefits or liability  for  reimbursement
    for services provided.
    (e)  (Blank).  The Council, in cooperation with the State
Departments of Public  Aid,  Insurance,  and  Public  Health,
shall  establish a system for the collection of the following
information from hospitals utilizing the raw  data  available
on  the  uniform  billing forms.  Such data shall include the
following  elements  and  other  elements  contained  on  the
uniform billing form or  its  successor  form  determined  as
necessary by the Council:
    (1)  Patient date of birth
    (2)  Patient sex
    (3)  Patient zip code
    (4)  Third-party coverage
    (5)  Date of admission
    (6)  Source of admission
    (7)  Type of admission
    (8)  Discharge date
    (9)  Principal and up to 8 other diagnoses
    (10)  Principal procedure and date
    (11)  Patient status
    (12)  Other procedures and dates
    (13)  Total charges and components of those charges
    (14)  Attending  and  consulting physician identification
numbers
    (15)  Hospital identification number
    (16)  An alphanumeric number based on the information  to
identify the payor
    (17)  Principal source of payment.
    (e-5)  The Council, in cooperation with the Department of
Public  Aid,  the Department of Insurance, and the Department
of Public Health, shall establish a system for the collection
of the following  information  for  each  outpatient  surgery
performed  at  hospitals  and  licensed  ambulatory  surgical
treatment  centers using the raw data available on outpatient
billing forms submitted by hospitals and licensed  ambulatory
surgical  treatment centers to payors.  The data must include
the following elements, if available on  the  billing  forms,
and  other  elements  contained on the billing forms that the
Council determines are necessary:
         (1)  patient date of birth;
         (2)  patient sex;
         (3)  patient zip code;
         (4)  third-party coverage;
         (5)  date of admission;
         (6)  source of admission;
         (7)  type of admission;
         (8)  discharge date;
         (9)  principal  diagnosis  and   up   to   8   other
    diagnoses;
         (10)  principal   procedure  and  the  date  of  the
    procedure;
         (11)  patient status;
         (12)  other  procedures  and  the  dates  of   those
    procedures;
         (13)  attending     and     consulting     physician
    identification numbers;
         (14)  hospital   or   licensed  ambulatory  surgical
    treatment center identification number;
         (15)  an   alphanumeric   number   based   on    the
    information needed to identify the payor; and
         (16)  principal source of payment.
    (f)  Extracts of the UB-92 transactions shall be prepared
by  hospitals  according  to  regulations  promulgated by the
Council and submitted in electronic format to the Council  or
the  corporation,  association  or  entity  designated by the
Council.
    For hospitals unable to  submit  extracts  in  electronic
format,  the  Council shall determine an alternate method for
submission of data.  Such extract reporting systems shall  be
in operation before January 1, 1987; however, the Council may
grant time extensions to individual hospital.
    (f-5)  Extracts of the billing forms shall be prepared by
licensed  ambulatory  surgical treatment centers according to
rules adopted by the Council and submitted to the Council  or
a  corporation,  association,  or  entity  designated  by the
Council. Electronic submissions  shall  be  encouraged.   For
licensed  ambulatory  surgical  treatment  centers  unable to
submit extracts in an  electronic  format  the  Council  must
determine an alternate method for submission of data.
    (g)  Under no circumstances shall patient name and social
security number appear on the extracts.
    (h)  Hospitals and licensed ambulatory surgical treatment
centers shall be assigned a standard identification number by
the Council to be used in the submission of all data.
    (i)  The  Council  shall  collect a 100% inpatient sample
from hospitals  annually.  The  Council  shall  require  each
hospital  in  the  State  to  submit  the UB-92 data extracts
required in  subsection  (e)  to  the  Council,  except  that
hospitals  with  fewer  than  50  beds may be exempted by the
Council from the filing requirements if  they  prove  to  the
Council's  satisfaction  that  the  requirements would impose
undue economic hardship and if the  Council  determines  that
the  data submitted from these hospitals are not essential to
its data base and its concomitant health care cost comparison
efforts.
    (i-5)  The Council shall collect up to a 100%  outpatient
sample   annually  from  hospitals  and  licensed  ambulatory
surgical treatment centers.  The Council shall  require  each
hospital and licensed ambulatory surgical treatment center in
the   State  to  submit  the  data  extracts  required  under
subsection (e-5) to the Council, except  that  hospitals  and
licensed   ambulatory   surgical  treatment  centers  may  be
exempted by the Council from the filing requirements  if  the
hospitals  or  licensed ambulatory surgical treatment centers
prove to the Council's  satisfaction  that  the  requirements
would  impose  undue  economic  hardship  and  if the Council
determines that the data submitted from those  hospitals  and
licensed   ambulatory  surgical  treatment  centers  are  not
essential to  the  Council's  database  and  its  concomitant
health care comparison efforts.
    (i-10)  The  outpatient  data  shall  be collected by the
Council on a phase-in and trial basis for a  one-year  period
beginning  on  January  1, 2001.  The Council shall implement
outpatient data collection for reporting  purposes  beginning
on January 1, 2002.
    (j)  The information submitted to the Council pursuant to
subsections  (e) and (e-5) shall be reported for each primary
payor   category,   including   Medicare,   Medicaid,   other
government programs, private  insurance,  health  maintenance
organizations,   self-insured,   private  pay  patients,  and
others.  Preferred provider organization reimbursement  shall
also be reported for each primary third party payor category.
    (k)  The   Council   shall  require  and  the  designated
corporation, association  or  entity,  if  applicable,  shall
prepare  quarterly  basic  reports in the aggregate on health
care cost and utilization trends in  Illinois.   The  Council
shall  provide  these  reports  to  the public, if requested.
These shall include,  but  not  be  limited  to,  comparative
information  on  average  charges, total and ancillary charge
components,  length  of  stay   on   diagnosis-specific   and
procedure  specific cases, and number of discharges, compiled
in aggregate by hospital  and  licensed  ambulatory  surgical
treatment   center,   by  diagnosis,  and  by  primary  payor
category.
    (l)  The  Council  shall,  from   information   submitted
pursuant  to  subsection (e), prepare an annual report in the
aggregate by hospital containing the following:
         (1)  the ratio of caesarean  section  deliveries  to
    total deliveries;
         (2)  the  average  length  of  stay for patients who
    undergo caesarean sections;
         (3)  the average total charges for patients who have
    normal deliveries without any significant complications;
         (4)  the average  total  charges  for  patients  who
    deliver by caesarean section.
The  Council  shall  provide  this  report  to the public, if
requested.
    (l-5)  (Blank).
    (m)  Prior to  the  release  or  dissemination  of  these
reports,  the  Council  or  the  designated corporation shall
permit providers the opportunity to verify  the  accuracy  of
any  information  pertaining  to the provider.  The providers
may submit to the Council any corrections or  errors  in  the
compilation  of  the  data  with  any supporting evidence and
documents  the  providers  may  submit.    The   Council   or
corporation  shall  correct  data  found  to  be in error and
include additional commentary as requested  by  the  provider
for major deviations in the charges from the average charges.
For  purposes  of  this  subsection (m), "providers" includes
physicians licensed  to  practice  medicine  in  all  of  its
branches.
    (n)  In  addition  to  the  reports  indicated above, the
Council shall respond to requests by agencies  of  government
and  organizations  in  the private sector for data products,
special studies and analysis of data  collected  pursuant  to
this  Section.   Such reports shall be undertaken only by the
agreement of a majority of the members  of  the  Council  who
shall  designate  the  form in which the information shall be
made available.  The Council or the corporation,  association
or  entity  in  consultation  with  the  Council  shall  also
determine  a  fee  to  be charged to the requesting agency or
private sector organization to cover the direct and  indirect
costs  for producing such a report, and shall permit affected
providers the rights to review the  accuracy  of  the  report
before it is released.  Such reports  shall not be subject to
The Freedom of Information Act.
(Source: P.A. 91-756, eff. 6-2-00.)

    (20 ILCS 2215/4-4) (from Ch. 111 1/2, par. 6504-4)
    Sec.   4-4.   (a)  Hospitals   shall  make  available  to
prospective  patients  information  on  the   normal   charge
incurred  for  any  procedure  or  operation  the prospective
patient is considering.
    (b)  The  Department  of  Public  Health  Council   shall
require hospitals to post in letters no more than one inch in
height   the   established   charges   for   services,  where
applicable, including  but  not  limited  to  the  hospital's
private  room  charge, semi-private room charge, charge for a
room with 3  or  more  beds,  intensive  care  room  charges,
emergency     room    charge,    operating    room    charge,
electrocardiogram  charge,  anesthesia  charge,  chest  x-ray
charge, blood sugar charge, blood  chemistry  charge,  tissue
exam  charge,  blood typing charge and Rh factor charge.  The
definitions of each charge to be posted shall  be  determined
by the Department Council.
(Source: P.A. 90-655, eff. 7-30-98.)

    (20 ILCS 2215/1-2 rep.)
    (20 ILCS 2215/2-2 rep.)
    (20 ILCS 2215/2-3 rep.)
    (20 ILCS 2215/2-4 rep.)
    (20 ILCS 2215/2-5 rep.)
    (20 ILCS 2215/2-6 rep.)
    (20 ILCS 2215/4-3 rep.)
    (20 ILCS 2215/4-5 rep.)
    (20 ILCS 2215/5-2 rep.)
    Section  26.   The  Illinois Health Finance Reform Act is
amended by repealing Sections 1-2, 2-2, 2-3, 2-4,  2-5,  2-6,
4-3, 4-5, and 5-2.

    Section  30.   The Department of Public Health Powers and
Duties Law of the Civil Administrative Code  of  Illinois  is
amended by adding Section 2310-57 as follows:

    (20 ILCS 2310/2310-57 new)
    Sec.  2310-57.  Collecting information regarding hospital
discharges and surgery.   The  Department  of  Public  Health
shall establish a system for the collection of data regarding
hospital  discharges  and  inpatient  and  outpatient surgery
performed  at  hospitals  and  licensed  ambulatory  surgical
treatment centers.
    The Department may establish a system to provide data  to
hospitals required for accreditation, including data required
by  the  Joint  Commission  on  Accreditation  of  Healthcare
Organizations.
    The Department may adopt any rules necessary to carry out
this   function,  including  reasonable  fees  for  providing
accreditation data.   The  Department  may  contract  with  a
vendor  to  collect  any data required to be submitted to the
Department under this Section.

    Section 35.  The Illinois Emergency Management Agency Act
is amended by changing Section 5 as follows:

    (20 ILCS 3305/5) (from Ch. 127, par. 1055)
    Sec. 5.  Illinois Emergency Management Agency.
    (a)  There is created within the executive branch of  the
State  Government an Illinois Emergency Management Agency and
a Director  of  the  Illinois  Emergency  Management  Agency,
herein  called  the "Director" who shall be the head thereof.
The Director shall be appointed by  the  Governor,  with  the
advice  and consent of the Senate, and shall serve for a term
of 2 years beginning on the third Monday in  January  of  the
odd-numbered year, and until a successor is appointed and has
qualified;  except  that  the  term  of  the  first  Director
appointed  under this Act shall expire on the third Monday in
January,  1989.   The  Director  shall  not  hold  any  other
remunerative public office. The  Director  shall  receive  an
annual salary as set by the Governor from time to time or the
amount  set  by  the  Compensation Review Board, whichever is
higher.  If set by the Governor, the Director's annual salary
may not exceed 85% of the Governor's annual salary.
    (b)  The  Illinois  Emergency  Management  Agency   shall
obtain,   under   the   provisions  of  the  Personnel  Code,
technical, clerical, stenographic  and  other  administrative
personnel, and may make expenditures within the appropriation
therefor as may be necessary to carry out the purpose of this
Act.   The  agency  created  by  this Act is intended to be a
successor to the agency created under the Illinois  Emergency
Services  and  Disaster Agency Act of 1975 and the personnel,
equipment, records, and appropriations  of  that  agency  are
transferred  to the successor agency as of the effective date
of this Act.
    (c)  The Director, subject to the direction  and  control
of  the Governor, shall be the executive head of the Illinois
Emergency Management Agency and the State Emergency  Response
Commission  and  shall  be responsible under the direction of
the Governor, for carrying  out  the  program  for  emergency
management  of  this State.  The Director shall also maintain
liaison  and  cooperate   with   the   emergency   management
organizations  of  this  State  and  other  states and of the
federal government.
    (d)  The Illinois Emergency Management Agency shall  take
an integral part in the development and revision of political
subdivision   emergency   operations   plans  prepared  under
paragraph (f) of Section 10.  To this end it shall employ  or
otherwise  secure  the services of professional and technical
personnel capable  of  providing  expert  assistance  to  the
emergency  services  and  disaster agencies.  These personnel
shall consult with emergency services and  disaster  agencies
on  a  regular basis and shall make field examinations of the
areas,  circumstances,   and   conditions   that   particular
political subdivision emergency operations plans are intended
to apply.
    (e)  The   Illinois    Emergency  Management  Agency  and
political  subdivisions  shall  be  encouraged  to  form   an
emergency  management  advisory committee composed of private
and public personnel representing  the  emergency  management
phases  of  mitigation, preparedness, response, and recovery.
The Local Emergency Planning Committee, as created under  the
Illinois  Emergency Planning and Community Right to Know Act,
shall  serve  as  an  advisory  committee  to  the  emergency
services and disaster agency or agencies serving  within  the
boundaries   of   that  Local  Emergency  Planning  Committee
planning district for:
         (1)  the development of  emergency  operations  plan
    provisions for hazardous chemical emergencies; and
         (2)  the    assessment    of    emergency   response
    capabilities related to hazardous chemical emergencies.
    (f)  The Illinois Emergency Management Agency shall:
         (1)  Coordinate  the  overall  emergency  management
    program of the State.
         (2)  Cooperate with local governments,  the  federal
    government  and any public or private agency or entity in
    achieving any purpose of this  Act  and  in  implementing
    emergency    management    programs    for    mitigation,
    preparedness, response, and recovery.
         (2.5)  Cooperate  with  the  Department  of  Nuclear
    Safety  in  development  of  the  comprehensive emergency
    preparedness and response plan for any  nuclear  accident
    in  accordance  with Section 2005-65 of the Department of
    Nuclear Safety Law of the Civil  Administrative  Code  of
    Illinois  and  in  development  of  the  Illinois Nuclear
    Safety Preparedness program in accordance with Section  8
    of the Illinois Nuclear Safety Preparedness Act.
         (3)  Prepare,   for   issuance   by   the  Governor,
    executive  orders,  proclamations,  and  regulations   as
    necessary or appropriate in coping with disasters.
         (4)  Promulgate rules and requirements for political
    subdivision  emergency  operations  plans  that  are  not
    inconsistent  with  and  are  at  least  as  stringent as
    applicable federal laws and regulations.
         (5)  Review and approve, in accordance with Illinois
    Emergency Management Agency rules,  emergency  operations
    plans  for  those political subdivisions required to have
    an emergency services and  disaster  agency  pursuant  to
    this Act.
         (5.5)  Promulgate  rules  and  requirements  for the
    political  subdivision  emergency  management  exercises,
    including, but not limited to, exercises of the emergency
    operations plans.
         (5.10)  Review, evaluate, and approve, in accordance
    with  Illinois   Emergency   Management   Agency   rules,
    political  subdivision emergency management exercises for
    those  political  subdivisions  required   to   have   an
    emergency  services  and disaster agency pursuant to this
    Act.
         (6)  Determine requirements of  the  State  and  its
    political  subdivisions  for  food,  clothing,  and other
    necessities in event of a disaster.
         (7)  Establish a register of persons with  types  of
    emergency  management  training and skills in mitigation,
    preparedness, response, and recovery.
         (8)  Establish a register of government and  private
    response resources available for use in a disaster.
         (9)  Expand the Earthquake Awareness Program and its
    efforts  to  distribute earthquake preparedness materials
    to schools,  political  subdivisions,  community  groups,
    civic  organizations,  and  the  media.  Emphasis will be
    placed on those areas of the State most at risk  from  an
    earthquake.   Maintain  the list of all school districts,
    hospitals,  airports,  power  plants,  including  nuclear
    power plants, lakes, dams, emergency response  facilities
    of  all  types,  and  all  other  major public or private
    structures which are at the greatest risk of damage  from
    earthquakes  under  circumstances  where the damage would
    cause subsequent harm to the surrounding communities  and
    residents.
         (10)  Disseminate  all  information,  completely and
    without delay, on water levels for rivers and streams and
    any other data pertaining to potential flooding  supplied
    by  the Division of Water Resources within the Department
    of Natural Resources to all political subdivisions to the
    maximum extent possible.
         (11)  Develop agreements, if feasible, with  medical
    supply  and  equipment  firms  to supply resources as are
    necessary to  respond  to  an  earthquake  or  any  other
    disaster as defined in this Act.  These resources will be
    made available upon notifying the vendor of the disaster.
    Payment  for  the  resources  will  be in accordance with
    Section 7 of this Act.  The Illinois Department of Public
    Health shall determine which resources will  be  required
    and requested.
         (12)  Out  of funds appropriated for these purposes,
    award  capital  and  non-capital   grants   to   Illinois
    hospitals  or health care facilities located outside of a
    city with a population in excess of 1,000,000 to be  used
    for  purposes  that  include,  but  are  not  limited to,
    preparing to respond to mass  casualties  and  disasters,
    maintaining  and  improving patient safety and quality of
    care,  and  protecting  the  confidentiality  of  patient
    information.  No single grant for a  capital  expenditure
    shall exceed $300,000.  No single grant for a non-capital
    expenditure  shall  exceed  $100,000.    In awarding such
    grants, preference shall be given to hospitals that serve
    a significant number of Medicaid recipients, but  do  not
    qualify  for  disproportionate  share hospital adjustment
    payments under the Illinois Public Aid Code.  To  receive
    such  a  grant,  a  hospital or health care facility must
    provide funding of at  least  50%  of  the  cost  of  the
    project  for  which  the  grant  is  being requested.  In
    awarding such grants the  Illinois  Emergency  Management
    Agency shall consider the recommendations of the Illinois
    Hospital Association.
         (13) (12)  Do all other things necessary, incidental
    or appropriate for the implementation of this Act.
(Source: P.A. 91-25, eff. 6-9-99; 92-73, eff. 1-1-02.)

    Section 40.  The State Finance Act is amended by changing
Sections  5.198,  6z-12,  and 6z-43, changing and renumbering
Section 6z-51 (as added by Public  Act  92-208),  and  adding
Sections 5.570 and 5.571 as follows:

    (30 ILCS 105/5.198) (from Ch. 127, par. 141.198)
    (Section scheduled to be repealed on October 15, 2002.)
    Sec.  5.198.   The  Illinois Health Care Cost Containment
Council Special Studies Fund.  This Section  is  repealed  on
October 15, 2002.
(Source: P.A. 84-1240; 84-1438.)

    (30 ILCS 105/5.570 new)
    Sec.  5.570.  The  Illinois Student Assistance Commission
Contracts and Grants Fund.

    (30 ILCS 105/5.571 new)
    Sec. 5.571.  The Career and Technical Education Fund.

    (30 ILCS 105/6z-12) (from Ch. 127, par. 142z-12)
    (Section scheduled to be repealed on October 15, 2002.)
    Sec. 6z-12.  Funds received by the Illinois  Health  Care
Cost  Containment Council for special studies pursuant to the
Illinois Health Finance Reform Act shall be deposited in  the
Illinois Health Care Cost Containment Council Special Studies
Fund.   The  General  Assembly  shall  from time to time make
appropriations from the Illinois Health Care Cost Containment
Council Special Studies Fund for the payment  of  the  direct
and  indirect  costs of special studies.  The Illinois Health
Care Cost Containment Council shall by rule, adopted pursuant
to the Illinois Administrative Procedure Act, provide for the
allocation of the direct  and  indirect  costs  of  producing
special  studies  pursuant  to  the  Illinois  Health Finance
Reform Act.
    In addition to any other permitted use of moneys  in  the
Fund,  moneys  in  the  Illinois Health Care Cost Containment
Council Special Studies Fund may  be  used  by  the  Council,
subject to appropriation, to provide services to the Illinois
Health  Care  Reform  Task Force created under Section 6-4 of
the Medicaid Revenue Act and to support Council operations.
    The Illinois Health Care Cost Containment Council Special
Studies Fund is abolished on October 15, 2002.   Any  balance
remaining  in  the  Fund on that date shall be transferred to
the Public Health Special State Projects Fund.
    This Section is repealed on October 15, 2002.
(Source: P.A. 87-838; 87-1248.)

    (30 ILCS 105/6z-43)
    Sec. 6z-43. Tobacco Settlement Recovery Fund.
    (a)  There is created in the  State  Treasury  a  special
fund  to  be  known  as the Tobacco Settlement Recovery Fund,
into which shall be deposited all monies paid  to  the  State
pursuant  to  (1)  the Master Settlement Agreement entered in
the case of People of the State of Illinois v. Philip Morris,
et al. (Circuit Court of Cook County, No. 96-L13146) and  (2)
any  settlement  with or judgment against any tobacco product
manufacturer other  than  one  participating  in  the  Master
Settlement Agreement in satisfaction of any released claim as
defined  in  the  Master Settlement Agreement, as well as any
other monies as  provided  by  law.   All  earnings  on  Fund
investments  shall  be  deposited  into  the  Fund.  Upon the
creation of the Fund, the State Comptroller shall  order  the
State  Treasurer to transfer into the Fund any monies paid to
the State as described in item (1) or  (2)  of  this  Section
before  the  creation of the Fund plus any interest earned on
the investment of those monies.  The Treasurer may invest the
moneys in the Fund in the same manner, in the same  types  of
investments,  and subject to the same limitations provided in
the Illinois Pension Code for the investment of pension funds
other than those established under Article  3  or  4  of  the
Code.
    (b)  As  soon  as  may  be practical after June 30, 2001,
upon notification from and at the direction of the  Governor,
the  State  Comptroller  shall direct and the State Treasurer
shall  transfer  the  unencumbered  balance  in  the  Tobacco
Settlement Recovery Fund as of June 30, 2001,  as  determined
by  the  Governor,  into  the Budget Stabilization Fund.  The
Treasurer may invest the moneys in the  Budget  Stabilization
Fund  in  the  same manner, in the same types of investments,
and subject to the same limitations provided in the  Illinois
Pension  Code  for the investment of pension funds other than
those established under Article 3 or 4 of the Code.
    (c)  All federal financial participation moneys  received
pursuant  to  expenditures  from  the Fund shall be deposited
into the Fund.
(Source: P.A. 91-646, eff.  11-19-99;  91-704,  eff.  7-1-00;
91-797,   eff.  6-9-00;  92-11,  eff.  6-11-01;  92-16,  eff.
6-28-01.)

    (30 ILCS 105/6z-55)
    Sec. 6z-55. 6z-51.  Statewide Economic Development Fund.
(a) The Statewide Economic Development Fund is created  as  a
special fund in the State treasury.  Moneys in the Fund shall
be  used,  subject  to  appropriation,  for  the  purpose  of
statewide  economic development activities or by the Illinois
Emergency Management Agency for awarding grants  to  Illinois
hospitals  and  health  care  facilities  to  provide for the
health and security of Illinois residents.
(Source: P.A. 92-208, eff. 8-2-01; revised 10-17-01.)

    Section 45.  The  School  Code  is  amended  by  changing
Sections 14-7.03 and 18-3 as follows:

    (105 ILCS 5/14-7.03) (from Ch. 122, par. 14-7.03)
    Sec. 14-7.03. Special Education Classes for Children from
Orphanages,  Foster  Family  Homes,  Children's  Homes, or in
State Housing Units.  If a school district maintains  special
education  classes  on  the site of orphanages and children's
homes, or if children from the orphanages, children's  homes,
foster   family   homes,   other  State  agencies,  or  State
residential units for children attend  classes  for  children
with   disabilities   in  which  the  school  district  is  a
participating member of a joint agreement, or if the children
from the orphanages, children's homes, foster  family  homes,
other  State  agencies,  or  State  residential  units attend
classes for the children with disabilities maintained by  the
school district, then reimbursement shall be paid to eligible
districts  in  accordance with the provisions of this Section
by the Comptroller as directed by the State Superintendent of
Education.
    The  amount  of  tuition  for  such  children  shall   be
determined  by  the  actual cost of maintaining such classes,
using the per  capita  cost  formula  set  forth  in  Section
14-7.01,  such  program  and  cost  to be pre-approved by the
State Superintendent of Education.
    On  forms  prepared  by  the  State   Superintendent   of
Education,   the  district  shall  certify  to  the  regional
superintendent the following:
         (1)  The name of the home or State residential  unit
    with  the  name of the owner or proprietor and address of
    those maintaining it;
         (2)  That  no  service  charges  or  other  payments
    authorized  by  law  were  collected  in  lieu  of  taxes
    therefrom or on account  thereof  during  either  of  the
    calendar  years  included  in  the  school year for which
    claim is being made;
         (3)  The number of children  qualifying  under  this
    Act  in  special education classes for instruction on the
    site of the orphanages and children's homes;
         (4)  The  number  of  children   attending   special
    education classes for children with disabilities in which
    the  district  is  a  participating  member  of a special
    education joint agreement;
         (5)  The  number  of  children   attending   special
    education   classes   for   children   with  disabilities
    maintained by the district;
         (6)  The computed amount of tuition payment  claimed
    as  due,  as  approved  by  the  State  Superintendent of
    Education, for maintaining these classes.
    If a school district  makes  a  claim  for  reimbursement
under  Section  18-3 or 18-4 of this Act it shall not include
in any claim filed  under  this  Section  a  claim  for  such
children.   Payments  authorized  by  law, including State or
federal grants for education of  children  included  in  this
Section, shall be deducted in determining the tuition amount.
    Nothing  in this Act shall be construed so as to prohibit
reimbursement for the  tuition  of  children  placed  in  for
profit facilities.  Private facilities shall provide adequate
space  at the facility for special education classes provided
by a school district or joint  agreement  for  children  with
disabilities  who are residents of the facility at no cost to
the school district or joint agreement upon  request  of  the
school  district  or  joint  agreement.   If  such  a private
facility provides space at no cost to the district  or  joint
agreement  for special education classes provided to children
with disabilities who are  residents  of  the  facility,  the
district  or  joint agreement shall not include any costs for
the use of those facilities in its claim for reimbursement.
    Reimbursement  for  tuition  may  include  the  cost   of
providing summer school programs for children with severe and
profound  disabilities  served under this Section. Claims for
that reimbursement shall be filed by November 1 and shall  be
paid  on  or  before December 15 from appropriations made for
the purposes of this Section.
    The State Board of Education shall establish  such  rules
and   regulations  as  may  be  necessary  to  implement  the
provisions of this Section.
    Claims filed on behalf of programs  operated  under  this
Section  housed  in a jail or detention center shall be on an
individual student basis  only  for  eligible  students  with
disabilities.   These  claims  shall  be  in  accordance with
applicable rules.
    Each  district  claiming  reimbursement  for  a   program
operated  as a group program shall have an approved budget on
file  with  the  State  Board  of  Education  prior  to   the
initiation  of  the  program's  operation.   On September 30,
December 31, and March 31, the State Board of Education shall
voucher payments to group programs based  upon  the  approved
budget  during the year of operation.  Final claims for group
payments shall be filed on or before July 15.   Final  claims
for  group  programs received at the State Board of Education
on or before June 15 shall be vouchered by  June  30.   Final
claims  received at the State Board of Education between June
16 and July 15 shall be vouchered by August 30.   Claims  for
group programs received after July 15 shall not be honored.
    Each   district  claiming  reimbursement  for  individual
students  shall  have  the  eligibility  of  those   students
verified  by  the State Board of Education.  On September 30,
December 31, and March 31, the State Board of Education shall
voucher  payments  for  individual  students  based  upon  an
estimated cost calculated from the prior year's claim.  Final
claims for individual students for the  regular  school  term
must  be received at the State Board of Education by July 15.
Claims for individual students received after July  15  shall
not be honored. Final claims for individual students shall be
vouchered by August 30.
    Reimbursement  shall  be  made  based upon approved group
programs or individual students.  The State Superintendent of
Education shall direct the Comptroller  to  pay  a  specified
amount  to  the  district  by  the  30th  day  of  September,
December,  March,  June,  or  August, respectively.  However,
notwithstanding any other provisions of this Section  or  the
School  Code, beginning with fiscal year 1994 and each fiscal
year thereafter through  fiscal  year  2002,  if  the  amount
appropriated  for  any  fiscal  year  is less than the amount
required for purposes of this Section, the amount required to
eliminate any insufficient reimbursement  for  each  district
claim  under this Section shall be reimbursed on August 30 of
the next fiscal year, and the. payments required to eliminate
any insufficiency for prior fiscal year claims shall be  made
before  any  claims  are  paid  for  the current fiscal year.
Notwithstanding any other provision of this Section  or  this
Code,  beginning  with  fiscal year 2003, total reimbursement
under this Section in any  fiscal  year  is  limited  to  the
amount  appropriated  for  that purpose for that fiscal year,
and if the amount appropriated for any fiscal  year  is  less
than  the  amount  required for purposes of this Section, the
insufficiency shall be apportioned pro rata among the  school
districts seeking reimbursement.
    The  claim  of a school district otherwise eligible to be
reimbursed  in  accordance  with  Section  14-12.01  for  the
1976-77 school year but for this amendatory Act of 1977 shall
not be paid unless  the  district  ceases  to  maintain  such
classes for one entire school year.
    If  a school district's current reimbursement payment for
the 1977-78 school year only is less than  the  prior  year's
reimbursement  payment  owed,  the district shall be paid the
amount of the difference between the payments in addition  to
the  current  reimbursement  payment,  and the amount so paid
shall  be  subtracted  from  the  amount  of   prior   year's
reimbursement payment owed to the district.
    Regional  superintendents  may  operate special education
classes for children from orphanages,  foster  family  homes,
children's  homes  or  State housing units located within the
educational services region upon consent of the school  board
otherwise so obligated.  In electing to assume the powers and
duties of a school district in providing and maintaining such
a  special education program, the regional superintendent may
enter into joint agreements  with  other  districts  and  may
contract  with  public  or  private schools or the orphanage,
foster family home, children's home or State housing unit for
provision of the  special  education  program.  The  regional
superintendent  exercising  the  powers  granted  under  this
Section  shall  claim  the  reimbursement  authorized by this
Section directly from the State Board of Education.
    Any child who is not a resident of Illinois who is placed
in a child  welfare  institution,  private  facility,  foster
family  home, State operated program, orphanage or children's
home shall have the payment for his educational  tuition  and
any related services assured by the placing agent.
    Commencing July 1, 1992, for each disabled student who is
placed residentially by a State agency or the courts for care
or  custody  or  both  care  and custody, welfare, medical or
mental health treatment or both  medical  and  mental  health
treatment,  rehabilitation,  and  protection,  whether placed
there on, before, or  after  July  1,  1992,  the  costs  for
educating  the  student  are eligible for reimbursement under
this Section  providing  the  placing  agency  or  court  has
notified  the  appropriate school district authorities of the
status of student residency where applicable prior to or upon
placement.
    The district of residence of  the  parent,  guardian,  or
disabled  student as defined in Sections 14-1.11 and 14-1.11a
is responsible for the actual costs of the student's  special
education  program  and  is  eligible for reimbursement under
this Section when placement is made by a State agency or  the
courts.  Payments  shall  be made by the resident district to
the district wherein the facility is  located  no  less  than
once per quarter unless otherwise agreed to in writing by the
parties.
    When  a  dispute  arises  over  the  determination of the
district of residence, the district or districts  may  appeal
the  decision  in  writing  to  the  State  Superintendent of
Education.  The  decision  of  the  State  Superintendent  of
Education shall be final.
    In  the  event a district does not make a tuition payment
to another district that is providing the  special  education
program  and  services,  the  State  Board of Education shall
immediately  withhold  125%  of  the  then  remaining  annual
tuition cost from the State aid or  categorical  aid  payment
due  to  the  school  district  that  is determined to be the
resident school district.  All funds withheld  by  the  State
Board  of  Education  shall  immediately  be forwarded to the
school district where the student is being served.
    When a child eligible for  services  under  this  Section
14-7.03 must be placed in a nonpublic facility, that facility
shall  meet  the programmatic requirements of Section 14-7.02
and its regulations, and the educational  services  shall  be
funded only in accordance with this Section 14-7.03.
(Source: P.A.  89-235,  eff.  8-4-95;  89-397,  eff. 8-20-95;
89-698, eff. 1-14-97;  90-463,  eff.  8-17-97;  90-644,  eff.
7-24-98.)

    (105 ILCS 5/18-3) (from Ch. 122, par. 18-3)
    Sec.  18-3.   Tuition  of  children  from  orphanages and
children's homes.
    When the children from any home for  orphans,  dependent,
abandoned   or   maladjusted   children   maintained  by  any
organization or association admitting to such  home  children
from  the  State  in  general  or when children residing in a
school district wherein the State of Illinois  maintains  and
operates  any  welfare or penal institution on property owned
by the State of  Illinois,  which  contains  houses,  housing
units  or  housing  accommodations  within a school district,
attend grades kindergarten through 12 of the  public  schools
maintained  by that school district, the State Superintendent
of Education shall direct the  State  Comptroller  to  pay  a
specified amount sufficient to pay the annual tuition cost of
such  children  who  attended  such public schools during the
regular school year ending on June 30 or the summer term  for
that  school  year,  and the Comptroller shall pay the amount
after  receipt  of  a  voucher   submitted   by   the   State
Superintendent of Education.
    The amount of the tuition for such children attending the
public  schools  of  the  district shall be determined by the
State Superintendent of Education by multiplying  the  number
of  such children in average daily attendance in such schools
by  1.2  times  the  total  annual   per   capita   cost   of
administering  the schools of the district. Such total annual
per capita cost shall be determined by totaling all  expenses
of  the  school  district  in the educational, operations and
maintenance,  bond  and  interest,  transportation,  Illinois
municipal retirement, and rent  funds  for  the  school  year
preceding the filing of such tuition claims less expenditures
not  applicable  to the regular K-12 program, less offsetting
revenues from State sources  except  those  from  the  common
school  fund,  less  offsetting revenues from federal sources
except those from federal impaction  aid,  less  student  and
community  service  revenues,  plus a depreciation allowance;
and dividing such total by the average daily  attendance  for
the year.
    Annually  on  or before June 30 the superintendent of the
district upon forms prepared by the State  Superintendent  of
Education  shall  certify  to the regional superintendent the
following:
         1.  The name of the home and of the organization  or
    association  maintaining  it; or the legal description of
    the real estate upon which the house, housing  units,  or
    housing  accommodations  are located and that no taxes or
    service charges or other payments authorized by law to be
    made in lieu of taxes  were  collected  therefrom  or  on
    account  thereof  during  either  of  the  calendar years
    included in the school year  for  which  claim  is  being
    made;
         2.  The  number  of children from the home or living
    in such houses, housing units or  housing  accommodations
    and attending the schools of the district;
         3.  The  total  number  of  children  attending  the
    schools of the district;
         4.  The  per  capita tuition charge of the district;
    and
         5.  The  computed  amount  of  the  tuition  payment
    claimed as due.
    Whenever the persons in charge of such home for  orphans,
dependent,  abandoned  or  maladjusted children have received
from the parent or guardian of any such child or by virtue of
an order of court a specific  allowance  for  educating  such



child,  such  persons  shall  pay  to the school board in the
district where the child attends school such  amount  of  the
allowance as is necessary to pay the tuition required by such
district  for the education of the child. If the allowance is
insufficient  to  pay  the  tuition   in   full   the   State
Superintendent  of  Education shall direct the Comptroller to
pay to the district the difference between the total  tuition
charged and the amount of the allowance.
    Whenever  the  facilities  of  a school district in which
such house,  housing  units  or  housing  accommodations  are
located, are limited, pupils may be assigned by that district
to  the  schools of any adjacent district to the limit of the
facilities of the adjacent district to properly educate  such
pupils  as  shall  be  determined  by the school board of the
adjacent district, and the State Superintendent of  Education
shall  direct  the  Comptroller  to  pay  a  specified amount
sufficient to pay the  annual  tuition  of  the  children  so
assigned  to  and  attending  public  schools in the adjacent
districts and the Comptroller shall draw his warrant upon the
State Treasurer for  the  payment  of  such  amount  for  the
benefit  of  the adjacent school districts in the same manner
as for districts  in  which  the  houses,  housing  units  or
housing accommodations are located.
    The   school   district   shall   certify  to  the  State
Superintendent of Education the report of claims due for such
tuition payments on or before July 31. Failure on the part of
the school board to  certify  its  claim  on  July  31  shall
constitute  a  forfeiture by the district of its right to the
payment of any such tuition claim for the school  year.   The
State   Superintendent   of   Education   shall   direct  the
Comptroller to pay to the district, on or before  August  15,
the amount due the district for the school year in accordance
with  the  calculation  of  the  claim  as  set forth in this
Section.
    Claims for tuition for children from any home for orphans
or dependent, abandoned, or  maladjusted  children  beginning
with  the  1993-1994  school  year shall be paid on a current
year basis.  On September 30, December 31, and March 31,  the
State Board of Education shall voucher payments for districts
with  those  students  based  on an estimated cost calculated
from the prior year's claim.  Final claims for those students
for the regular school term and summer term must be  received
at  the State Board of Education by July 31 following the end
of the regular school year.  Final claims for those  students
shall  be  vouchered  by  August 15.  During fiscal year 1994
both the 1992-1993 school year and the 1993-1994 school  year
shall  be paid in order to change the cycle of payment from a
reimbursement basis  to  a  current  year  funding  basis  of
payment.   However,  notwithstanding  any other provisions of
this Section or the School Code, beginning with  fiscal  year
1994  and  each  fiscal  year  thereafter through fiscal year
2002, if the amount appropriated for any fiscal year is  less
than  the  amount  required for purposes of this Section, the
amount required to eliminate any  insufficient  reimbursement
for   each   district  claim  under  this  Section  shall  be
reimbursed on August 30 of the next  fiscal  year,  and  the.
payments  required  to  eliminate any insufficiency for prior
fiscal year claims shall be made before any claims  are  paid
for  the  current  fiscal  year.   Notwithstanding  any other
provision of this Section or this Code, beginning with fiscal
year 2003, total reimbursement  under  this  Section  in  any
fiscal  year  is  limited to the amount appropriated for that
purpose for that fiscal year, and if the amount  appropriated
for  any  fiscal  year  is  less than the amount required for
purposes  of  this  Section,  the  insufficiency   shall   be
apportioned  pro  rata  among  the  school  districts seeking
reimbursement.
    If a school district  makes  a  claim  for  reimbursement
under  Section  18-4  or  14-7.03 it shall not include in any
claim filed under  this  Section  children  residing  on  the
property  of  State  institutions included in its claim under
Section 18-4 or 14-7.03.
    Any child who is not a resident of Illinois who is placed
in a  child  welfare  institution,  private  facility,  State
operated program, orphanage or children's home shall have the
payment  for his educational tuition and any related services
assured by the placing agent.
    In order to  provide  services  appropriate  to  allow  a
student  under the legal guardianship or custodianship of the
State to participate in  local  school  district  educational
programs,  costs  may be incurred in appropriate cases by the
district that are in excess of 1.2  times  the  district  per
capita  tuition  charge  allowed under the provisions of this
Section.  In the event such excess costs are  incurred,  they
must  be documented in accordance with cost rules established
under the authority of this Section and may then  be  claimed
for reimbursement under this Section.
    Planned  services  for students eligible for this funding
must be a collaborative effort between the appropriate  State
agency  or  the  student's  group home or institution and the
local school district.
(Source: P.A. 91-764, eff. 6-9-00; 92-94, eff. 1-1-02.)

    Section 50.  The State Aid Continuing  Appropriation  Law
is  amended  by  changing Sections 15-10, 15-15, and 15-25 as
follows:

    (105 ILCS 235/15-10)
    (Section scheduled to be repealed on June 30, 2002)
    Sec. 15-10.  Annual budget; recommendation.  The Governor
shall include a Common  School  Fund  recommendation  to  the
State Board of Education in the fiscal year 1999 through 2003
2002  annual Budgets sufficient to fund (i) the General State
Aid Formula set  forth  in  subsection  (E)  (Computation  of
General  State  Aid) and subsection (H) (Supplemental General
State Aid) of Section 18-8.05 of the School Code and (ii) the
supplementary payments for  school  districts  set  forth  in
subsection  (J)  (Supplementary  Grants  in  Aid)  of Section
18-8.05 of the School Code.
(Source: P.A. 92-7, eff. 6-29-01.)

    (105 ILCS 235/15-15)
    (Section scheduled to be repealed on June 30, 2002)
    Sec. 15-15.  State Aid  Formula;  Funding.   The  General
Assembly     shall   annually   make   Common   School   Fund
appropriations to the State  Board  of  Education  in  fiscal
years  1999  through  2003  2002  sufficient  to fund (i) the
General  State  Aid  Formula  set  forth  in  subsection  (E)
(Computation  of  General  State  Aid)  and  subsection   (H)
(Supplemental  General  State  Aid) of Section 18-8.05 of the
School Code and (ii) the supplementary  payments  for  school
districts  set  forth in subsection (J) (Supplementary Grants
in Aid) of Section 18-8.05 of the School Code.
(Source: P.A. 92-7, eff. 6-29-01.)

    (105 ILCS 235/15-25)
    (Section scheduled to be repealed on June 30, 2002)
    Sec. 15-25.  Repeal.  This Article is repealed  June  30,
2003.    Section  15-20  of this Article is repealed June 30,
2002.
(Source: P.A. 92-7, eff. 6-29-01.)

    Section 55.  The Public Community College Act is  amended
by adding Section 2-16.07 as follows:

    (110 ILCS 805/2-16.07 new)
    Sec.  2-16.07.  Career and Technical Education Fund.  The
Career and Technical Education Fund is created as  a  special
fund  in  the  State  treasury.   The Comptroller shall order
transferred and the State Treasurer shall transfer  from  the
Federal  Department  of  Education  Fund  into the Career and
Technical Education Fund such amounts as may be  directed  in
writing  by  the  State  Board  of  Education.  All moneys so
deposited into the Career and Technical Education Fund may be
used, subject  to  appropriation,  by  the  State  Board  for
operational  expenses  associated  with the administration of
Career and Technical Education, for  payment  of  Career  and
Technical  Education  grants  to colleges, and for payment of
costs relating to State leadership activities, as provided by
the United States Department of Education.

    Section 60.  The  Higher  Education  Student   Assistance
Act  is  amended  by   adding   Sections   65.56   and  77 as
follows:

    (110 ILCS 947/65.56 new)
    Sec. 65.56.  Illinois Teachers and Child  Care  Providers
Loan Repayment Program.
    (a)  In order to encourage academically talented Illinois
students  to  enter and continue teaching in Illinois schools
in low-income areas and to encourage students  to  enter  the
early  child  care profession and serve low-income areas, the
Commission   shall,   each   year,   receive   and   consider
applications  for  loan  repayment  assistance   under   this
Section. This program shall be known as the Illinois Teachers
and   Child   Care  Providers  Loan  Repayment  Program.  The
Commission shall administer the program and  shall  make  all
necessary and proper rules not inconsistent with this Section
for  the  program's  effective implementation. The Commission
may use up to 5% of the appropriation for  this  program  for
administration and promotion of teacher incentive programs.
    (b)  Beginning  January  1,  2003,  subject to a separate
appropriation made for such purposes,  the  Commission  shall
award  a grant to each qualified applicant in an amount equal
to the amount of educational loans forgiven on behalf of  the
qualified applicant pursuant to Sections 424 and 425 of Title
IV  of  the  Higher  Education  Amendments of 1998 (20 U.S.C.
1078-10  and  1078-11),  up  to  a  maximum  of  $5,000.  The
Commission shall encourage the recipient  of  a  grant  under
this  Section  to use the grant amount awarded to pay off his
or her educational loans.
    (c)  A person is a qualified applicant under this Section
if he or she meets all of the following qualifications:
         (1)  The  person  is  a  United  States  citizen  or
    eligible noncitizen.
         (2)  The person is a resident of this State.
         (3)  The person is a borrower who has had an  amount
    of  his  or  her  educational  loans forgiven pursuant to
    Sections 424 and 425 of Title IV of the Higher  Education
    Amendments of 1998.
         (4)  The  person  has  fulfilled the obligations set
    forth by Sections 424 and 425 of Title IV of  the  Higher
    Education Amendments of 1998 in this State.
    (d)  All  applications  for  grant  assistance under this
Section  shall  be  made  to  the  Commission.  The  form  of
application and the information required to be set  forth  in
the  application  shall  be determined by the Commission, and
the Commission shall require applicants to submit with  their
applications  such  supporting  documents  as  the Commission
deems necessary.
    (e)  A qualified applicant must apply for a  grant  under
this  Section within 6 months after receiving notification of
loan forgiveness pursuant to Sections 424 and 425 of Title IV
of the Higher Education Amendments of 1998.
    (110 ILCS 947/77 new)
    Sec.   77.  Illinois   Student   Assistance    Commission
Contracts and Grants Fund.
    (a)  The Illinois Student Assistance Commission Contracts
and  Grants  Fund  is  created as a special fund in the State
treasury.  All gifts, grants, or donations of money  received
by the Commission must be deposited into this Fund.
    (b)  Moneys  in  the  Fund may be used by the Commission,
subject to appropriation, for  support  of  the  Commission's
student assistance outreach activities.

    (110 ILCS 947/65.57 rep.)
    Section  65.  The Higher Education Student Assistance Act
is amended by repealing Section 65.57.

    Section 70.  The Comprehensive Health Insurance Plan  Act
is amended by changing Section 3 as follows:

    (215 ILCS 105/3) (from Ch. 73, par. 1303)
    Sec. 3.  Operation of the Plan.
    a.  There  is  hereby  created  an Illinois Comprehensive
Health Insurance Plan.
    b.  The Plan shall operate subject to the supervision and
control of the board.  The board is created  as  a  political
subdivision  and  body politic and corporate and, as such, is
not a State agency.  The board shall  consist  of  10  public
members,  appointed  by  the  Governor  with  the  advice and
consent of the Senate.
    Initial members shall be appointed to the  Board  by  the
Governor  as  follows: 2 members to serve until July 1, 1988,
and until their successors are  appointed  and  qualified;  2
members  to  serve  until  July  1,  1989,  and  until  their
successors  are  appointed  and qualified; 3 members to serve
until July 1, 1990, and until their successors are  appointed
and qualified; and 3 members to serve until July 1, 1991, and
until  their successors are appointed and qualified. As terms
of  initial  members  expire,  their  successors   shall   be
appointed  for  terms to expire the first day in July 3 years
thereafter, and until  their  successors  are  appointed  and
qualified.
    Any  vacancy  in the Board occurring for any reason other
than the expiration  of  a  term  shall  be  filled  for  the
unexpired   term   in   the   same  manner  as  the  original
appointment.
    Any member of the Board may be removed  by  the  Governor
for neglect of duty, misfeasance, malfeasance, or nonfeasance
in office.
    In addition, a representative of the Bureau of the Budget
Illinois    Health   Care   Cost   Containment   Council,   a
representative of the Office of the Attorney General and  the
Director or the Director's designated representative shall be
members  of the board.  Four members of the General Assembly,
one each appointed by the President and  Minority  Leader  of
the  Senate  and  by  the  Speaker and Minority Leader of the
House of Representatives, shall serve as nonvoting members of
the board.  At  least  2  of  the  public  members  shall  be
individuals reasonably expected to qualify for coverage under
the  Plan,  the  parent or spouse of such an individual, or a
surviving family member  of  an  individual  who  could  have
qualified  for  the plan during his lifetime. The Director or
Director's representative shall be  the  chairperson  of  the
board.   Members  of the board shall receive no compensation,
but shall be reimbursed for reasonable expenses  incurred  in
the necessary performance of their duties.
    c.  The  board  shall  make an annual report in September
and shall file the report with the Secretary  of  the  Senate
and  the  Clerk  of the House of Representatives.  The report
shall summarize the activities of the Plan in  the  preceding
calendar year, including net written and earned premiums, the
expense  of  administration, the paid and incurred losses for
the year and other information as may  be  requested  by  the
General  Assembly. The report shall also include analysis and
recommendations   regarding   utilization   review,   quality
assurance and access to cost effective quality health care.
    d.  In its plan of operation the board shall:
         (1)  Establish  procedures  for  selecting  a   plan
    administrator in accordance with Section 5 of this Act.
         (2)  Establish  procedures  for the operation of the
    board.
         (3)  Create a Plan fund,  under  management  of  the
    board,  to fund administrative, claim, and other expenses
    of the Plan.
         (4)  Establish  procedures  for  the  handling   and
    accounting of assets and monies of the Plan.
         (5)  Develop  and  implement  a program to publicize
    the existence of the Plan, the  eligibility  requirements
    and  procedures  for  enrollment  and  to maintain public
    awareness of the Plan.
         (6)  Establish procedures under which applicants and
    participants may have grievances reviewed by a  grievance
    committee  appointed  by the board.  The grievances shall
    be reported to the board immediately after completion  of
    the  review.   The  Department and the board shall retain
    all written complaints regarding the Plan for at least  3
    years.   Oral complaints shall be reduced to written form
    and maintained for at least 3 years.
         (7)  Provide for other matters as may  be  necessary
    and  proper  for  the execution of its powers, duties and
    obligations under the Plan.
    e.  No later than 5 years after the Plan is operative the
board and the Department shall conduct cooperatively a  study
of the Plan and the persons insured by the Plan to determine:
(1)  claims  experience  including  a  breakdown  of  medical
conditions   for   which   claims   were  paid;  (2)  whether
availability of the Plan  affected  employment  opportunities
for  participants;  (3)  whether  availability  of  the  Plan
affected  the  receipt of medical assistance benefits by Plan
participants; (4) whether a change occurred in the number  of
personal  bankruptcies due to medical or other health related
costs; (5) data regarding all complaints received  about  the
Plan  including its operation and services; (6) and any other
significant observations regarding utilization of  the  Plan.
The study shall culminate in a written report to be presented
to  the Governor, the President of the Senate, the Speaker of
the House and  the  chairpersons  of  the  House  and  Senate
Insurance  Committees.   The  report  shall be filed with the
Secretary of the  Senate  and  the  Clerk  of  the  House  of
Representatives.   The  report  shall  also  be  available to
members of the general public upon request.
    f.  The board may:
         (1)  Prepare   and   distribute    certificate    of
    eligibility  forms  and  enrollment  instruction forms to
    insurance producers and to the  general  public  in  this
    State.
         (2)  Provide  for  reinsurance  of risks incurred by
    the Plan  and  enter  into  reinsurance  agreements  with
    insurers  to  establish  a  reinsurance plan for risks of
    coverage described in  the  Plan,  or  obtain  commercial
    reinsurance to reduce the risk of loss through the Plan.
         (3)  Issue  additional  types  of  health  insurance
    policies  to  provide optional coverages as are otherwise
    permitted by this Act  including  a  Medicare  supplement
    policy designed to supplement Medicare.
         (4)  Provide   for   and   employ  cost  containment
    measures and requirements including, but not limited  to,
    preadmission   certification,  second  surgical  opinion,
    concurrent utilization review  programs,  and  individual
    case  management  for the purpose of making the pool more
    cost effective.
         (5)  Design, utilize, contract, or otherwise arrange
    for the delivery of cost effective health care  services,
    including  establishing  or  contracting  with  preferred
    provider organizations, health maintenance organizations,
    and other limited network provider arrangements.
         (6)  Adopt  bylaws, rules, regulations, policies and
    procedures as may be  necessary  or  convenient  for  the
    implementation of the Act and the operation of the Plan.
         (7)  Administer  separate  pools, separate accounts,
    or other plans or arrangements as required by this Act to
    separate federally  eligible  individuals  or  groups  of
    federally  eligible  individuals  who  qualify  for  plan
    coverage  under  Section  15  of  this  Act from eligible
    persons or groups of eligible  persons  who  qualify  for
    plan  coverage  under Section 7 of this Act and apportion
    the costs  of  the  administration  among  such  separate
    pools, separate accounts, or other plans or arrangements.
    g.  The  Director  may,  by  rule,  establish  additional
powers  and  duties  of the board and may adopt rules for any
other purposes, including the operation of the Plan,  as  are
necessary or proper to implement this Act.
    h.  The  board  is  not  liable for any obligation of the
Plan.  There is no liability on the part  of  any  member  or
employee  of  the  board  or  the Department, and no cause of
action of any nature may arise against them, for  any  action
taken  or  omission  made by them in the performance of their
powers and duties  under  this  Act,  unless  the  action  or
omission  constitutes willful or wanton misconduct. The board
may provide in its bylaws or rules  for  indemnification  of,
and legal representation for, its members and employees.
    i.  There  is  no  liability on the part of any insurance
producer for the failure of any applicant to be  accepted  by
the  Plan  unless the failure of the applicant to be accepted
by the Plan is due to an act or  omission  by  the  insurance
producer which constitutes willful or wanton misconduct.
(Source: P.A. 90-30, eff. 7-1-97.)

    Section  75.  The Children's Health Insurance Program Act
is amended by changing Sections 20, 40, and 97 as follows:

    (215 ILCS 106/20)
    (Section scheduled to be repealed on July 1, 2002)
    Sec. 20.  Eligibility.
    (a)  To be eligible for this Program, a person must be  a
person  who  has  a  child eligible under this Act and who is
eligible under a waiver of federal requirements  pursuant  to
an application made pursuant to subdivision (a)(1) of Section
40 of this Act or who is a child who:
         (1)  is  a  child  who  is  not eligible for medical
    assistance;
         (2)  is a child whose annual  household  income,  as
    determined  by  the  Department,  is  above  133%  of the
    federal poverty level and at or below 185% of the federal
    poverty level;
         (3)  is a  resident of the State of Illinois; and
         (4)  is a  child  who  is  either  a  United  States
    citizen or included in one of the following categories of
    non-citizens:
              (A)  unmarried  dependent  children of either a
         United States  Veteran  honorably  discharged  or  a
         person on active military duty;
              (B)  refugees   under   Section   207   of  the
         Immigration and Nationality Act;
              (C)  asylees   under   Section   208   of   the
         Immigration and Nationality Act;
              (D)  persons  for  whom  deportation  has  been
         withheld under Section  243(h)  of  the  Immigration
         and Nationality Act;
              (E)  persons  granted  conditional  entry under
         Section 203(a)(7) of the Immigration and Nationality
         Act as in effect prior to April 1, 1980;
              (F)  persons lawfully  admitted  for  permanent
         residence under the Immigration and Nationality Act;
         and
              (G)  parolees,  for  at  least  one year, under
         Section 212(d)(5) of the Immigration and Nationality
         Act.
    Those children who are in the  categories  set  forth  in
subdivisions  (4)(F) and (4)(G) of this subsection, who enter
the United States on or after August 22, 1996, shall  not  be
eligible  for 5 years beginning on the date the child entered
the United States.
    (b)  A  child  who  is  determined  to  be  eligible  for
assistance may shall remain eligible for 12 months,  provided
the  child  maintains  his or her residence in the State, has
not yet attained  19  years  of  age,  and  is  not  excluded
pursuant  to subsection (c).  A child who has been determined
to be eligible  for  assistance  must  reapply  or  otherwise
establish  eligibility  Eligibility shall be re-determined by
the Department at least annually.  An eligible child shall be
required, as determined by the Department by rule, to  report
promptly those changes in income and other circumstances that
affect  eligibility.   The  eligibility  of  a  child  may be
redetermined based on the  information  reported  or  may  be
terminated  based  on  the  failure  to  report or failure to
report  accurately.   A  child's  responsible   relative   or
caretaker  may  also be held liable to the Department for any
payments made by the Department on such child's  behalf  that
were  inappropriate.  An  applicant  shall  be  provided with
notice of these obligations.
    (c)  A child shall not be  eligible  for  coverage  under
this Program if:
         (1)  the  premium required pursuant to Section 30 of
    this Act has not been paid.  If the required premiums are
    not paid the liability of the Program shall be limited to
    benefits incurred under the Program for the  time  period
    for  which  premiums  had  been  paid.   If  the required
    monthly  premium  is  not  paid,  the  child   shall   be
    ineligible  for  re-enrollment  for a minimum period of 3
    months.  Re-enrollment shall be completed  prior  to  the
    next covered medical visit and the first month's required
    premium  shall  be  paid  in  advance of the next covered
    medical visit.  The  Department  shall  promulgate  rules
    regarding grace periods, notice requirements, and hearing
    procedures pursuant to this subsection;
         (2)  the  child is an inmate of a public institution
    or a patient in an institution for mental diseases; or
         (3)  the child is a  member  of  a  family  that  is
    eligible  for  health benefits covered under the State of
    Illinois health benefits plan on the basis of a  member's
    employment with a public agency.
(Source: P.A. 90-736, eff. 8-12-98.)

    (215 ILCS 106/40)
    (Section scheduled to be repealed on July 1, 2002)
    Sec. 40.  Waivers.
    (a)  The  Department  shall request any necessary waivers
of federal requirements in order to allow receipt of  federal
funding for:
         (1)  the coverage of families with eligible children
    under this Act; and
         (2)  for   the   coverage   of  children  who  would
    otherwise be eligible under this Act, but who have health
    insurance.
    (b)  The failure of the  responsible  federal  agency  to
approve a waiver for children who would otherwise be eligible
under  this  Act  but  who  have  health  insurance shall not
prevent  the  implementation  of  any  Section  of  this  Act
provided that there are sufficient appropriated funds.
    (c)  Eligibility of a person under an approved waiver due
to the relationship with a child pursuant to Article V of the
Illinois Public Aid Code or this Act shall be limited to such
a  person  whose  countable  income  is  determined  by   the
Department  to  be  at  or  below  65% of the federal poverty
level.  Such persons who are determined to be  eligible  must
reapply,   or   otherwise  establish  eligibility,  at  least
annually.   An  eligible  person  shall   be   required,   as
determined  by  the  Department  by  rule, to report promptly
those changes in income and other circumstances  that  affect
eligibility.  The eligibility of a person may be redetermined
based  on the information reported or may be terminated based
on the failure to report or failure to report accurately.   A
person  may  also  be  held  liable to the Department for any
payments made by the Department on such person's behalf  that
were  inappropriate.   An  applicant  shall  be provided with
notice of these obligations.
(Source: P.A. 90-736, eff. 8-12-98.)

    (215 ILCS 106/97)
    (Section scheduled to be repealed on July 1, 2002)
    Sec. 97.  Repealer.  This Act is repealed on July 1, 2003
2002.
(Source: P.A. 90-736, eff. 8-12-98; 91-712, eff. 7-1-00.)

    Section 80.  The Illinois Public Aid Code is  amended  by
changing  Sections  5-2,  5-4.1,  5-5.4, 5-5.12, 11-16, 12-3,
12-4.34, 12-10.5, and 12-13.05 as follows:
    (305 ILCS 5/5-2) (from Ch. 23, par. 5-2)
    Sec.  5-2.  Classes   of   Persons   Eligible.    Medical
assistance  under  this  Article shall be available to any of
the following classes of persons in respect to  whom  a  plan
for  coverage  has  been  submitted  to  the  Governor by the
Illinois Department and approved by him:
    1.  Recipients of basic maintenance grants under Articles
III and IV.
    2.  Persons  otherwise  eligible  for  basic  maintenance
under Articles III and IV but who fail to qualify  thereunder
on  the  basis  of need, and who have insufficient income and
resources to  meet  the  costs  of  necessary  medical  care,
including but not limited to the following:
         (a)  All   persons   otherwise  eligible  for  basic
    maintenance under Article III but  who  fail  to  qualify
    under  that  Article  on  the  basis of need and who meet
    either of the following requirements:
              (i)  their  income,  as   determined   by   the
         Illinois  Department  in accordance with any federal
         requirements, is equal to or less than 70% in fiscal
         year 2001, equal to or less than 85% in fiscal  year
         2002  and  until  a  date  to  be  determined by the
         Department by rule, and equal to or less  than  100%
         beginning  on  the date determined by the Department
         by rule, in fiscal year 2003 and thereafter  of  the
         nonfarm  income official poverty line, as defined by
         the federal Office  of  Management  and  Budget  and
         revised  annually  in accordance with Section 673(2)
         of the Omnibus Budget Reconciliation  Act  of  1981,
         applicable to families of the same size; or
              (ii)  their  income,  after  the  deduction  of
         costs  incurred for medical care and for other types
         of remedial care, is equal to or less  than  70%  in
         fiscal  year  2001,  equal  to  or  less than 85% in
         fiscal year 2002 and until a date to  be  determined
         by the Department by rule, and equal to or less than
         100%   beginning  on  the  date  determined  by  the
         Department  by  rule,  in  fiscal  year   2003   and
         thereafter  of  the  nonfarm income official poverty
         line, as defined in item (i)  of  this  subparagraph
         (a).
         (b)  All  persons  who  would be determined eligible
    for  such  basic  maintenance   under   Article   IV   by
    disregarding  the  maximum  earned  income  permitted  by
    federal law.
    3.  Persons  who  would  otherwise qualify for Aid to the
Medically Indigent under Article VII.
    4.  Persons not  eligible  under  any  of  the  preceding
paragraphs  who  fall  sick,  are injured, or die, not having
sufficient money, property or other  resources  to  meet  the
costs  of  necessary  medical  care  or  funeral  and  burial
expenses.
    5. (a)  Women   during   pregnancy,  after  the  fact  of
    pregnancy has been determined by medical  diagnosis,  and
    during the 60-day period beginning on the last day of the
    pregnancy,  together with their infants and children born
    after September 30, 1983, whose income and resources  are
    insufficient  to meet the costs of necessary medical care
    to the maximum extent possible under  Title  XIX  of  the
    Federal Social Security Act.
         (b)  The  Illinois Department and the Governor shall
    provide a plan for coverage of the persons eligible under
    paragraph 5(a) by April 1, 1990.  Such plan shall provide
    ambulatory prenatal  care  to  pregnant  women  during  a
    presumptive  eligibility  period  and establish an income
    eligibility standard that is equal to 133% of the nonfarm
    income official poverty line, as defined by  the  federal
    Office  of  Management and Budget and revised annually in
    accordance with Section  673(2)  of  the  Omnibus  Budget
    Reconciliation Act of 1981, applicable to families of the
    same  size, provided that costs incurred for medical care
    are not taken into account  in  determining  such  income
    eligibility.
         (c)  The   Illinois   Department   may   conduct   a
    demonstration  in  at  least one county that will provide
    medical assistance to pregnant women, together with their
    infants and children up to one year  of  age,  where  the
    income  eligibility  standard  is  set  up to 185% of the
    nonfarm income official poverty line, as defined  by  the
    federal  Office  of  Management  and Budget. The Illinois
    Department shall seek and obtain necessary  authorization
    provided   under   federal   law   to  implement  such  a
    demonstration.  Such demonstration may establish resource
    standards  that  are  not  more  restrictive  than  those
    established under Article IV of this Code.
    6.  Persons under the age of 18 who fail  to  qualify  as
dependent  under  Article IV and who have insufficient income
and resources to meet the costs of necessary medical care  to
the  maximum  extent permitted under Title XIX of the Federal
Social Security Act.
    7.  Persons who are 18 years of age or younger and  would
qualify as disabled as defined under the Federal Supplemental
Security  Income  Program,  provided medical service for such
persons   would   be   eligible   for    Federal    Financial
Participation,   and   provided   the   Illinois   Department
determines that:
         (a)  the person requires a level of care provided by
    a  hospital,  skilled  nursing  facility, or intermediate
    care facility, as determined by a physician  licensed  to
    practice medicine in all its branches;
         (b)  it  is appropriate to provide such care outside
    of an institution, as determined by a physician  licensed
    to practice medicine in all its branches;
         (c)  the  estimated  amount  which would be expended
    for care outside the institution is not greater than  the
    estimated   amount   which   would   be  expended  in  an
    institution.
    8.  Persons who become ineligible for  basic  maintenance
assistance   under  Article  IV  of  this  Code  in  programs
administered by the Illinois  Department  due  to  employment
earnings  and persons in assistance units comprised of adults
and children who  become  ineligible  for  basic  maintenance
assistance  under  Article  VI of this Code due to employment
earnings.  The plan for coverage for this  class  of  persons
shall:
         (a)  extend  the  medical assistance coverage for up
    to 12 months following termination of  basic  maintenance
    assistance; and
         (b)  offer  persons  who  have  initially received 6
    months of the coverage provided in paragraph  (a)  above,
    the  option  of  receiving  an  additional  6  months  of
    coverage, subject to the following:
              (i)  such   coverage   shall   be  pursuant  to
         provisions of the federal Social Security Act;
              (ii)  such coverage shall include all  services
         covered  while  the  person  was  eligible for basic
         maintenance assistance;
              (iii)  no premium shall  be  charged  for  such
         coverage; and
              (iv)  such  coverage  shall be suspended in the
         event of a person's failure without  good  cause  to
         file  in  a timely fashion reports required for this
         coverage under the Social Security Act and  coverage
         shall  be reinstated upon the filing of such reports
         if the person remains otherwise eligible.
    9.  Persons  with  acquired   immunodeficiency   syndrome
(AIDS)  or  with AIDS-related conditions with respect to whom
there  has  been  a  determination  that  but  for  home   or
community-based  services  such individuals would require the
level of care provided  in  an  inpatient  hospital,  skilled
nursing  facility  or  intermediate care facility the cost of
which is reimbursed under this Article.  Assistance shall  be
provided  to  such  persons  to  the maximum extent permitted
under Title XIX of the Federal Social Security Act.
    10.  Participants  in  the   long-term   care   insurance
partnership  program  established  under  the Partnership for
Long-Term Care Act who meet the qualifications for protection
of resources described in Section 25 of that Act.
    11.  Persons  with  disabilities  who  are  employed  and
eligible    for     Medicaid,     pursuant     to     Section
1902(a)(10)(A)(ii)(xv)   of   the  Social  Security  Act,  as
provided by the Illinois Department by rule.
    12.  Subject  to  federal  approval,  persons   who   are
eligible  for  medical  assistance  coverage under applicable
provisions of the federal Social Security Act and the federal
Breast and Cervical Cancer Prevention and  Treatment  Act  of
2000.  Those eligible persons are defined to include, but not
be limited to, the following persons:
         (1)  persons  who  have  been screened for breast or
    cervical  cancer  under  the  U.S.  Centers  for  Disease
    Control and Prevention Breast and Cervical Cancer Program
    established under Title XV of the federal  Public  Health
    Services  Act  in  accordance  with  the  requirements of
    Section 1504 of that Act as administered by the  Illinois
    Department of Public Health; and
         (2)  persons   whose   screenings  under  the  above
    program  were  funded  in  whole  or  in  part  by  funds
    appropriated to the Illinois Department of Public  Health
    for breast or cervical cancer screening.
"Medical   assistance"  under  this  paragraph  12  shall  be
identical to the benefits provided under the State's approved
plan under  Title  XIX  of  the  Social  Security  Act.   The
Department  must  request  federal  approval  of the coverage
under this paragraph 12 within 30 days  after  the  effective
date of this amendatory Act of the 92nd General Assembly.
    The  Illinois Department and the Governor shall provide a
plan for coverage of the persons eligible under  paragraph  7
as soon as possible after July 1, 1984.
    The eligibility of any such person for medical assistance
under  this  Article  is  not  affected by the payment of any
grant under the Senior Citizens and Disabled Persons Property
Tax  Relief  and  Pharmaceutical  Assistance   Act   or   any
distributions or items of income described under subparagraph
(X)  of paragraph (2) of subsection (a) of Section 203 of the
Illinois Income  Tax  Act.   The  Department  shall  by  rule
establish   the  amounts  of  assets  to  be  disregarded  in
determining eligibility for medical assistance,  which  shall
at  a  minimum  equal the amounts to be disregarded under the
Federal Supplemental Security Income Program.  The amount  of
assets of a single person to be disregarded shall not be less
than  $2,000, and the amount of assets of a married couple to
be disregarded shall not be less than $3,000.
    To the extent permitted under  federal  law,  any  person
found  guilty of a second violation of Article VIIIA shall be
ineligible for medical  assistance  under  this  Article,  as
provided in Section 8A-8.
    The  eligibility  of  any  person  for medical assistance
under this Article shall not be affected by  the  receipt  by
the person of donations or benefits from fundraisers held for
the  person  in  cases of serious illness, as long as neither
the person nor members of the  person's  family  have  actual
control over the donations or benefits or the disbursement of
the donations or benefits.
(Source: P.A.  91-676,  eff.  12-23-99;  91-699, eff. 7-1-00;
91-712,  eff.  7-1-00;  92-16,  eff.  6-28-01;  92-47,   eff.
7-3-01.)

    (305 ILCS 5/5-4.1) (from Ch. 23, par. 5-4.1)
    Sec.  5-4.1.   Co-payments.   The  Department may by rule
provide that recipients under any Article of this Code (other
than group care recipients) shall pay a fee as  a  co-payment
for  services.   Co-payments may not exceed $3 for brand name
drugs, $1 one dollar for other pharmacy services, and $2  for
physicians  services,  dental  services, optical services and
supplies,  chiropractic  services,  podiatry  services,   and
encounter  rate  clinic services.  Co-payments may not exceed
$3 three dollars for hospital outpatient and clinic services.
Provided, however, that any such rule must  provide  that  no
co-payment   requirement   can   exist  for  renal  dialysis,
radiation therapy, cancer chemotherapy, or insulin, and other
products necessary on a recurring basis, the absence of which
would be life threatening, or where  co-payment  expenditures
for required services and/or medications for chronic diseases
that  the  Illinois  Department shall by rule designate shall
cause an extensive financial burden  on  the  recipient,  and
provided   no  co-payment  shall  exist  for  emergency  room
encounters which are for medical emergencies.
(Source: P.A. 82-664.)

    (305 ILCS 5/5-5.4) (from Ch. 23, par. 5-5.4)
    Sec. 5-5.4.  Standards of Payment - Department of  Public
Aid.  The Department of Public Aid shall develop standards of
payment  of skilled nursing and intermediate care services in
facilities providing such services under this Article which:
    (1)  Provide  Provides  for  the   determination   of   a
facility's  payment for skilled nursing and intermediate care
services on a prospective basis.  The amount of  the  payment
rate  for  all nursing facilities certified under the medical
assistance  program  shall   be   prospectively   established
annually   on   the   basis  of  historical,  financial,  and
statistical data reflecting actual costs  from  prior  years,
which  shall  be applied to the current rate year and updated
for inflation, except that the capital cost element for newly
constructed facilities shall be based upon projected budgets.
The annually established payment rate shall  take  effect  on
July 1 in 1984 and subsequent years.  Rate increases shall be
provided  annually  thereafter  on July 1 in 1984 and on each
subsequent July 1 in the following years, except that no rate
increase and no update for inflation shall be provided on  or
after  July  1,  1994  and  before  July 1, 2003 2002, unless
specifically provided for in this Section.
    For facilities  licensed  by  the  Department  of  Public
Health  under  the Nursing Home Care Act as Intermediate Care
for the Developmentally Disabled facilities or Long Term Care
for Under Age 22 facilities, the rates taking effect on  July
1,  1998  shall  include  an  increase of 3%.  For facilities
licensed by the Department of Public Health under the Nursing
Home Care Act as Skilled Nursing facilities  or  Intermediate
Care  facilities,  the  rates  taking  effect on July 1, 1998
shall include an increase of 3% plus $1.10 per  resident-day,
as defined by the Department.
    For  facilities  licensed  by  the  Department  of Public
Health under the Nursing Home Care Act as  Intermediate  Care
for the Developmentally Disabled facilities or Long Term Care
for  Under Age 22 facilities, the rates taking effect on July
1, 1999 shall include an increase  of  1.6%  plus  $3.00  per
resident-day,  as  defined by the Department.  For facilities
licensed by the Department of Public Health under the Nursing
Home Care Act as Skilled Nursing facilities  or  Intermediate
Care  facilities,  the  rates  taking  effect on July 1, 1999
shall include an increase of 1.6% and, for services  provided
on  or after October 1, 1999, shall be increased by $4.00 per
resident-day, as defined by the Department.
    For facilities  licensed  by  the  Department  of  Public
Health  under  the Nursing Home Care Act as Intermediate Care
for the Developmentally Disabled facilities or Long Term Care
for Under Age 22 facilities, the rates taking effect on  July
1,  2000  shall include an increase of 2.5% per resident-day,
as defined by the Department.  For facilities licensed by the
Department of Public Health under the Nursing Home  Care  Act
as   Skilled   Nursing   facilities   or   Intermediate  Care
facilities, the rates taking effect on  July  1,  2000  shall
include  an  increase of 2.5% per resident-day, as defined by
the Department.
    For facilities  licensed  by  the  Department  of  Public
Health  under  the Nursing Home Care Act as Intermediate Care
for the Developmentally Disabled facilities or Long Term Care
for Under Age 22 facilities, the rates taking effect on March
1, 2001 shall include  a  statewide  increase  of  7.85%,  as
defined by the Department.
    For  facilities  licensed  by  the  Department  of Public
Health under the Nursing Home Care Act as  Intermediate  Care
for the Developmentally Disabled facilities or Long Term Care
for Under Age 22 facilities, the rates taking effect on April
1,  2002  shall  include  a  statewide  increase  of 2.0%, as
defined by the Department.  This increase terminates on  July
1,  2002;  beginning  July 1, 2002 these rates are reduced to
the level of the rates  in  effect  on  March  31,  2002,  as
defined by the Department.
    For  facilities  licensed  by  the  Department  of Public
Health under the Nursing Home Care  Act  as  skilled  nursing
facilities  or intermediate care facilities, the rates taking
effect on July 1, 2001, and each subsequent year  thereafter,
shall  be computed using the most recent cost reports on file
with the Department of Public Aid  no  later  than  April  1,
2000,  updated  for  inflation to January 1, 2001.  For rates
effective July 1, 2001 only, rates shall be  the  greater  of
the  rate  computed for July 1, 2001 or the rate effective on
June 30, 2001.
    Notwithstanding any other provision of this Section,  for
facilities  licensed by the Department of Public Health under
the Nursing Home Care Act as skilled  nursing  facilities  or
intermediate  care  facilities, the Illinois Department shall
determine by rule the rates taking effect on  July  1,  2002,
which shall be 5.9% less than the rates in effect on June 30,
2002.
    Rates  established  effective  each  July  1 shall govern
payment for services rendered throughout  that  fiscal  year,
except  that  rates  established  on  July  1,  1996 shall be
increased by 6.8% for services provided on or  after  January
1,  1997.  Such rates will be based upon the rates calculated
for the year beginning July 1, 1990, and for subsequent years
thereafter until June 30, 2001 shall be based on the facility
cost reports for the facility fiscal year ending at any point
in time during the previous calendar  year,  updated  to  the
midpoint  of the rate year.  The cost report shall be on file
with the Department no later than April 1 of the current rate
year.  Should the cost report not be on file by April 1,  the
Department  shall  base  the  rate  on the latest cost report
filed by each skilled care  facility  and  intermediate  care
facility,  updated  to the midpoint of the current rate year.
In determining rates for services rendered on and after  July
1,  1985, fixed time shall not be computed at less than zero.
The Department shall not make any alterations of  regulations
which  would  reduce  any component of the Medicaid rate to a
level below what that component would have been utilizing  in
the rate effective on July 1, 1984.
    (2)  Shall take into account the actual costs incurred by
facilities  in  providing  services for recipients of skilled
nursing and intermediate  care  services  under  the  medical
assistance program.
    (3)  Shall    take   into   account   the   medical   and
psycho-social characteristics and needs of the patients.
    (4)  Shall take into account the actual costs incurred by
facilities in meeting licensing and  certification  standards
imposed  and  prescribed by the State of Illinois, any of its
political subdivisions or  municipalities  and  by  the  U.S.
Department of Health and Human Services pursuant to Title XIX
of the Social Security Act.
    The  Department  of  Public  Aid  shall  develop  precise
standards  for  payments  to reimburse nursing facilities for
any utilization of appropriate rehabilitative  personnel  for
the  provision of rehabilitative services which is authorized
by federal regulations, including reimbursement for  services
provided by qualified therapists or qualified assistants, and
which  is in accordance with accepted professional practices.
Reimbursement also may  be  made  for  utilization  of  other
supportive personnel under appropriate supervision.
(Source: P.A. 91-24, eff. 7-1-99; 91-712, eff. 7-1-00; 92-10,
eff. 6-11-01; 92-31, eff. 6-28-01; revised 12-13-01.)

    (305 ILCS 5/5-5.12) (from Ch. 23, par. 5-5.12)
    Sec. 5-5.12.  Pharmacy payments.
    (a)  Every   request   submitted   by   a   pharmacy  for
reimbursement  under  this  Article  for  prescription  drugs
provided to a recipient  of  aid  under  this  Article  shall
include   the   name  of  the  prescriber  or  an  acceptable
identification number as established by the Department.
    (b)  Pharmacies providing prescription drugs  under  this
Article  shall  be reimbursed at a rate which shall include a
professional dispensing fee as  determined  by  the  Illinois
Department,   plus   the  current  acquisition  cost  of  the
prescription drug dispensed. The  Illinois  Department  shall
update  its  information  on  the  acquisition  costs  of all
prescription drugs no less frequently  than  every  30  days.
However,   the  Illinois  Department  may  set  the  rate  of
reimbursement  for  the  acquisition  cost,  by  rule,  at  a
percentage of the current average wholesale acquisition cost.
    (c)  Reimbursement under this  Article  for  prescription
drugs  shall  be  limited  to  reimbursement for 4 brand-name
prescription drugs per patient per  month.   This  subsection
applies  only  if  (i) the brand-name drug was not prescribed
for an acute or urgent condition, (ii)  the  brand-name  drug
was   not  prescribed  for  Alzheimer's  disease,  arthritis,
diabetes, HIV/AIDS, a mental health condition, or respiratory
disease,  and  (iii)  a  therapeutically  equivalent  generic
medication has been approved by the  federal  Food  and  Drug
Administration.
(Source: P.A. 88-554, eff. 7-26-94; 89-673, eff. 8-14-96.)

    (305 ILCS 5/11-16) (from Ch. 23, par. 11-16)
    Sec.    11-16.  Changes    in    grants;   cancellations,
revocations, suspensions.
    (a)  All grants of financial aid under this Code shall be
considered as frequently as may be required by the  rules  of
the  Illinois Department.  The Department of Public Aid shall
consider grants of financial aid to children who are eligible
under Article V of this Code at least annually and shall take
into account those reports filed, or required  to  be  filed,
pursuant   to   Sections   11-18   and  11-19.    After  such
investigation as may be necessary, the amount and  manner  of
giving  aid  may  be  changed  or  the  aid  may  be entirely
withdrawn if the County Department, local governmental  unit,
or   Illinois   Department   finds   that   the   recipient's
circumstances  have  altered  sufficiently  to  warrant  such
action.  Financial aid may at any time be canceled or revoked
for cause or suspended for such period as may be proper.
    (b)  Whenever  any  such  grant  of  financial   aid   is
cancelled,  revoked,  reduced,  or  terminated because of the
failure of the recipient to cooperate  with  the  Department,
including   but  not  limited  to  the  failure  to  keep  an
appointment,  attend  a  meeting,   or   produce   proof   or
verification  of  eligibility  or  need,  the  grant shall be
reinstated in full, retroactive to the date of the change  in
or  termination of the grant, provided that within 10 working
days after the first day the financial aid  would  have  been
available,  the  recipient cooperates with the Department and
is not otherwise ineligible for benefits for  the  period  in
question.   This  subsection  (b) does not apply to sanctions
imposed for the failure of any recipient  to  participate  as
required  in  the child support enforcement program or in any
educational, training, or employment program under this  Code
or  any  other  sanction  under  Section  4-21, nor does this
subsection  (b)  apply  to  any   cancellation,   revocation,
reduction,  termination,  or sanction imposed for the failure
of any  recipient  to  cooperate  in  the  monthly  reporting
process or the quarterly reporting process.
(Source: P.A. 90-17, eff. 7-1-97; 91-357, eff. 7-29-99.)

    (305 ILCS 5/12-3) (from Ch. 23, par. 12-3)
    Sec.  12-3.  Local  governmental  units.  As  provided in
Article VI, local governmental units shall provide funds  for
and administer the programs provided in that Article subject,
where  so  provided,  to  the  supervision  of  the  Illinois
Department.  Local  governmental units shall also provide the
social services and  utilize  the  rehabilitative  facilities
authorized  in  Article IX for persons served through Article
VI, and shall discharge such other duties as may be  required
by this Code or other laws of this State.
    In  counties  not under township organization, the county
shall provide funds for and administer such programs.
    In counties under township  organization  (including  any
such  counties in which the governing authority is a board of
commissioners) the various towns other than those towns lying
entirely within the corporate limits of any city, village  or
incorporated  town  having  a population of more than 500,000
inhabitants shall  provide  funds  for  and  administer  such
programs.
    Cities,   villages,   and  incorporated  towns  having  a
population of more than  500,000  inhabitants  shall  provide
funds  for  public  aid  purposes  under  Article  VI but the
Department of Human Services shall administer the program for
such municipality.  For the fiscal  year  beginning  July  1,
2003,  however, the municipality shall decrease by $5,000,000
the amount of funds it provides for public aid purposes under
Article  VI.   For   each   fiscal   year   thereafter,   the
municipality  shall  decrease the amount of funds it provides
for public aid purposes under Article VI in that fiscal  year
by  an  additional amount equal to (i) $5,000,000 or (ii) the
amount provided by the municipality in the  preceding  fiscal
year,  whichever  is  less,  until  the municipality does not
provide any funds for public aid purposes under Article VI.
    Incorporated towns which have superseded civil  townships
shall provide funds for and administer the public aid program
provided by Article VI.
    In  counties  of  less than 3 million population having a
County Veterans Assistance Commission in which there has been
levied a tax as authorized by Section 5-2006 of the  Counties
Code   for  the  purpose  of providing assistance to military
veterans and their families, the County  Veterans  Assistance
Commission  shall administer the programs provided by Article
VI for such military veterans and their families as seek  aid
through the County Veterans Assistance Commission.
(Source: P.A. 92-111, eff. 1-1-02.)

    (305 ILCS 5/12-4.34)
    (Section scheduled to be repealed on August 31, 2002)
    Sec. 12-4.34.  Services to noncitizens.
    (a)  Subject  to  specific appropriation for this purpose
and notwithstanding Sections 1-11 and 3-1 of this  Code,  the
Department   of  Human  Services  is  authorized  to  provide
services to legal immigrants, including but  not  limited  to
naturalization   and   nutrition   services   and   financial
assistance.   The  nature  of these services, payment levels,
and eligibility conditions shall be determined by rule.
    (b)  The Illinois Department is authorized to  lower  the
payment levels established under this subsection or take such
other  actions  during  the  fiscal  year as are necessary to
ensure that payments under this subsection do not exceed  the
amounts  appropriated for this purpose.  These changes may be
accomplished by emergency rule  under  Section  5-45  of  the
Illinois   Administrative  Procedure  Act,  except  that  the
limitation on the number  of  emergency  rules  that  may  be
adopted in a 24-month period shall not apply.
    (c)  This Section is repealed on August 31, 2002.
(Source: P.A. 91-24, eff. 7-1-99; 91-712, eff. 7-1-00; 92-10,
eff. 6-11-01.)

    (305 ILCS 5/12-10.5)
    Sec. 12-10.5.  Medical Special Purposes Trust Fund.
    (a)  The Medical Special Purposes Trust Fund ("the Fund")
is created.  Any grant, gift, donation, or legacy of money or
securities that the Department of Public Aid is authorized to
receive under Section 12-4.18 or Section 12-4.19, and that is
dedicated  for functions connected with the administration of
any medical program administered by the Department, shall  be
deposited  into the Fund.  All federal moneys received by the
Department as reimbursement for disbursements  authorized  to
be  made from the Fund shall also be deposited into the Fund.
In addition, federal moneys  received  on  account  of  State
expenditures  made  in  connection  with obtaining compliance
with   the   federal   Health   Insurance   Portability   and
Accountability Act (HIPAA) shall be deposited into the Fund.
    (b)  No moneys received from  a  service  provider  or  a
governmental  or  private  entity  that  is enrolled with the
Department  as  a  provider  of  medical  services  shall  be
deposited into the Fund.
    (c)  Disbursements may be made  from  the  Fund  for  the
purposes  connected  with  the  grants,  gifts, donations, or
legacies deposited into the Fund, including, but not  limited
to,   medical   quality   assessment   projects,  eligibility
population studies, medical information systems  evaluations,
and other administrative functions that assist the Department
in  fulfilling  its  health  care  mission under the Illinois
Public Aid Code and the Children's Health  Insurance  Program
Act.
(Source: P.A. 92-37, eff. 7-1-01.)

    (305 ILCS 5/12-13.05)
    Sec.  12-13.05.  Rules for Temporary Assistance for Needy
Families.  All rules regulating the Temporary Assistance  for
Needy  Families  program  and  all other rules regulating the
amendatory changes to this Code made by this  amendatory  Act
of  1997  shall be promulgated pursuant to this Section.  All
rules regulating the Temporary Assistance for Needy  Families
program and all other rules regulating the amendatory changes
to this Code made by this amendatory Act of 1997 are repealed
on  July  1  2006 January 1, 2003.  On and after July 1, 2006
January 1, 2003, the Illinois Department may  not  promulgate
any  rules  regulating  the  Temporary  Assistance  for Needy
Families program or regulating the amendatory changes to this
Code made by this amendatory Act of 1997.
(Source: P.A. 91-5, eff. 5-27-99; 92-111, eff. 1-1-02.)
    Section 85.  The Senior  Citizens  and  Disabled  Persons
Property  Tax  Relief  and  Pharmaceutical  Assistance Act is
amended by changing Section 3.16 as follows:

    (320 ILCS 25/3.16) (from Ch. 67 1/2, par. 403.16)
    Sec. 3.16.  "Reasonable  cost"  means  Average  Wholesale
Price  (AWP)  minus  10%  for products provided by authorized
pharmacies plus a professional dispensing fee  determined  by
the Department in accordance with its findings in a survey of
professional  pharmacy  dispensing  fees  conducted  at least
every 12 months.  For the purpose of this Act, AWP  shall  be
determined  from  the  latest publication of the Blue Book, a
universally subscribed pharmacist  reference  guide  annually
published by the Hearst Corporation.  AWP may also be derived
electronically from the drug pricing database synonymous with
the  latest publication of the Blue Book and furnished in the
National Drug Data File (NDDF) by First Data  Bank  (FDB),  a
service of the Hearst Corporation.  The elements of such fees
and  methodology  of  such  survey shall be promulgated as an
administrative   rule.    Effective   July   1,   1986,   the
professional dispensing fee shall be $3.60  per  prescription
and  such  amount  shall be adjusted on July 1st of each year
thereafter  in  accordance  with  a  survey  of  professional
pharmacy  dispensing  fees.   The  Department  may  establish
maximum acquisition  costs  from  time  to  time  based  upon
information  as  to the cost at which covered products may be
readily acquired by authorized pharmacies.  In no case  shall
the  reasonable  cost  of any given pharmacy exceed the price
normally charged to the general public by that pharmacy.   In
the  event  that generic equivalents for covered prescription
drugs are available  at  lower  cost,  the  Department  shall
establish  the  maximum  acquisition  costs  for such covered
prescription drugs at the lower generic cost unless, pursuant
to the conditions described in subsection (f) of Section 4, a
non-generic drug may be substituted.
    Effective July 1,  2002,  the  rates  paid  for  products
provided   by   authorized   pharmacies  and  a  professional
dispensing fee shall be determined by the Department by rule.
(Source: P.A. 91-699, eff. 1-1-01.)

    Section 99.  Effective date.  This Act takes effect  upon
becoming  law,  except  that  Sections 25, 26, 45, 60, and 65
take effect on July 1, 2002.
    Passed in the General Assembly June 02, 2002.
    Approved June 28, 2002.
    Effective June 28, 2002.
    Effective July 01, 2002.

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