Bill Text: IL HB0333 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the State Finance Act. Provides that notwithstanding any provision of law to the contrary and to the extent permitted by federal law, for fiscal year 2017 and each fiscal year thereafter, outstanding liabilities as of June 30, payable from appropriations which have otherwise expired, may be paid out of the expiring appropriations only during the 2-month period ending at the close of business on August 31. Provides for an exception for a proper bill or invoice as defined by the State Prompt Payment Act. Effective immediately.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced) 2017-03-31 - Rule 19(a) / Re-referred to Rules Committee [HB0333 Detail]

Download: Illinois-2017-HB0333-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB0333

Introduced , by Rep. Scott Drury

SYNOPSIS AS INTRODUCED:
30 ILCS 105/25 from Ch. 127, par. 161

Amends the State Finance Act. Provides that notwithstanding any provision of law to the contrary and to the extent permitted by federal law, for fiscal year 2017 and each fiscal year thereafter, outstanding liabilities as of June 30, payable from appropriations which have otherwise expired, may be paid out of the expiring appropriations only during the 2-month period ending at the close of business on August 31. Provides for an exception for a proper bill or invoice as defined by the State Prompt Payment Act. Effective immediately.
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FISCAL NOTE ACT MAY APPLY

A BILL FOR

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1 AN ACT concerning finance.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The State Finance Act is amended by changing
5Section 25 as follows:
6 (30 ILCS 105/25) (from Ch. 127, par. 161)
7 Sec. 25. Fiscal year limitations.
8 (a) All appropriations shall be available for expenditure
9for the fiscal year or for a lesser period if the Act making
10that appropriation so specifies. A deficiency or emergency
11appropriation shall be available for expenditure only through
12June 30 of the year when the Act making that appropriation is
13enacted unless that Act otherwise provides.
14 (b) Outstanding liabilities as of June 30, payable from
15appropriations which have otherwise expired, may be paid out of
16the expiring appropriations during the 2-month period ending at
17the close of business on August 31. Any service involving
18professional or artistic skills or any personal services by an
19employee whose compensation is subject to income tax
20withholding must be performed as of June 30 of the fiscal year
21in order to be considered an "outstanding liability as of June
2230" that is thereby eligible for payment out of the expiring
23appropriation.

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1 (b-1) However, payment of tuition reimbursement claims
2under Section 14-7.03 or 18-3 of the School Code may be made by
3the State Board of Education from its appropriations for those
4respective purposes for any fiscal year, even though the claims
5reimbursed by the payment may be claims attributable to a prior
6fiscal year, and payments may be made at the direction of the
7State Superintendent of Education from the fund from which the
8appropriation is made without regard to any fiscal year
9limitations, except as required by subsection (j) of this
10Section. Beginning on June 30, 2021, payment of tuition
11reimbursement claims under Section 14-7.03 or 18-3 of the
12School Code as of June 30, payable from appropriations that
13have otherwise expired, may be paid out of the expiring
14appropriation during the 4-month period ending at the close of
15business on October 31.
16 (b-2) All outstanding liabilities as of June 30, 2010,
17payable from appropriations that would otherwise expire at the
18conclusion of the lapse period for fiscal year 2010, and
19interest penalties payable on those liabilities under the State
20Prompt Payment Act, may be paid out of the expiring
21appropriations until December 31, 2010, without regard to the
22fiscal year in which the payment is made, as long as vouchers
23for the liabilities are received by the Comptroller no later
24than August 31, 2010.
25 (b-2.5) All outstanding liabilities as of June 30, 2011,
26payable from appropriations that would otherwise expire at the

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1conclusion of the lapse period for fiscal year 2011, and
2interest penalties payable on those liabilities under the State
3Prompt Payment Act, may be paid out of the expiring
4appropriations until December 31, 2011, without regard to the
5fiscal year in which the payment is made, as long as vouchers
6for the liabilities are received by the Comptroller no later
7than August 31, 2011.
8 (b-2.6) All outstanding liabilities as of June 30, 2012,
9payable from appropriations that would otherwise expire at the
10conclusion of the lapse period for fiscal year 2012, and
11interest penalties payable on those liabilities under the State
12Prompt Payment Act, may be paid out of the expiring
13appropriations until December 31, 2012, without regard to the
14fiscal year in which the payment is made, as long as vouchers
15for the liabilities are received by the Comptroller no later
16than August 31, 2012.
17 (b-2.7) For fiscal years 2012, 2013, and 2014, interest
18penalties payable under the State Prompt Payment Act associated
19with a voucher for which payment is issued after June 30 may be
20paid out of the next fiscal year's appropriation. The future
21year appropriation must be for the same purpose and from the
22same fund as the original payment. An interest penalty voucher
23submitted against a future year appropriation must be submitted
24within 60 days after the issuance of the associated voucher,
25and the Comptroller must issue the interest payment within 60
26days after acceptance of the interest voucher.

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1 (b-3) Medical payments may be made by the Department of
2Veterans' Affairs from its appropriations for those purposes
3for any fiscal year, without regard to the fact that the
4medical services being compensated for by such payment may have
5been rendered in a prior fiscal year, except as required by
6subsection (j) of this Section. Beginning on June 30, 2021,
7medical payments payable from appropriations that have
8otherwise expired may be paid out of the expiring appropriation
9during the 4-month period ending at the close of business on
10October 31.
11 (b-4) Medical payments and child care payments may be made
12by the Department of Human Services (as successor to the
13Department of Public Aid) from appropriations for those
14purposes for any fiscal year, without regard to the fact that
15the medical or child care services being compensated for by
16such payment may have been rendered in a prior fiscal year; and
17payments may be made at the direction of the Department of
18Healthcare and Family Services (or successor agency) from the
19Health Insurance Reserve Fund without regard to any fiscal year
20limitations, except as required by subsection (j) of this
21Section. Beginning on June 30, 2021, medical and child care
22payments made by the Department of Human Services and payments
23made at the discretion of the Department of Healthcare and
24Family Services (or successor agency) from the Health Insurance
25Reserve Fund and payable from appropriations that have
26otherwise expired may be paid out of the expiring appropriation

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1during the 4-month period ending at the close of business on
2October 31.
3 (b-5) Medical payments may be made by the Department of
4Human Services from its appropriations relating to substance
5abuse treatment services for any fiscal year, without regard to
6the fact that the medical services being compensated for by
7such payment may have been rendered in a prior fiscal year,
8provided the payments are made on a fee-for-service basis
9consistent with requirements established for Medicaid
10reimbursement by the Department of Healthcare and Family
11Services, except as required by subsection (j) of this Section.
12Beginning on June 30, 2021, medical payments made by the
13Department of Human Services relating to substance abuse
14treatment services payable from appropriations that have
15otherwise expired may be paid out of the expiring appropriation
16during the 4-month period ending at the close of business on
17October 31.
18 (b-6) Additionally, payments may be made by the Department
19of Human Services from its appropriations, or any other State
20agency from its appropriations with the approval of the
21Department of Human Services, from the Immigration Reform and
22Control Fund for purposes authorized pursuant to the
23Immigration Reform and Control Act of 1986, without regard to
24any fiscal year limitations, except as required by subsection
25(j) of this Section. Beginning on June 30, 2021, payments made
26by the Department of Human Services from the Immigration Reform

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1and Control Fund for purposes authorized pursuant to the
2Immigration Reform and Control Act of 1986 payable from
3appropriations that have otherwise expired may be paid out of
4the expiring appropriation during the 4-month period ending at
5the close of business on October 31.
6 (b-7) Payments may be made in accordance with a plan
7authorized by paragraph (11) or (12) of Section 405-105 of the
8Department of Central Management Services Law from
9appropriations for those payments without regard to fiscal year
10limitations.
11 (b-8) Reimbursements to eligible airport sponsors for the
12construction or upgrading of Automated Weather Observation
13Systems may be made by the Department of Transportation from
14appropriations for those purposes for any fiscal year, without
15regard to the fact that the qualification or obligation may
16have occurred in a prior fiscal year, provided that at the time
17the expenditure was made the project had been approved by the
18Department of Transportation prior to June 1, 2012 and, as a
19result of recent changes in federal funding formulas, can no
20longer receive federal reimbursement.
21 (b-9) Medical payments not exceeding $150,000,000 may be
22made by the Department on Aging from its appropriations
23relating to the Community Care Program for fiscal year 2014,
24without regard to the fact that the medical services being
25compensated for by such payment may have been rendered in a
26prior fiscal year, provided the payments are made on a

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1fee-for-service basis consistent with requirements established
2for Medicaid reimbursement by the Department of Healthcare and
3Family Services, except as required by subsection (j) of this
4Section.
5 (b-10) Notwithstanding any provision of law to the contrary
6and to the extent permitted by federal law, for fiscal year
72017 and each fiscal year thereafter, outstanding liabilities
8as of June 30, payable from appropriations which have otherwise
9expired, may be paid out of the expiring appropriations only
10during the 2-month period ending at the close of business on
11August 31, except that claims that have been incurred for which
12a proper bill or invoice as defined by the State Prompt Payment
13Act has not been received by August 31 may be paid out of the
14expiring appropriations only during the period ending at the
15close of business on October 15. Any service involving
16professional or artistic skills or any personal services by an
17employee whose compensation is subject to income tax
18withholding must be performed as of June 30 of the fiscal year
19in order to be considered an "outstanding liability as of June
2030" that is thereby eligible for payment out of the expiring
21appropriation.
22 (c) Further, payments may be made by the Department of
23Public Health and the Department of Human Services (acting as
24successor to the Department of Public Health under the
25Department of Human Services Act) from their respective
26appropriations for grants for medical care to or on behalf of

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1premature and high-mortality risk infants and their mothers and
2for grants for supplemental food supplies provided under the
3United States Department of Agriculture Women, Infants and
4Children Nutrition Program, for any fiscal year without regard
5to the fact that the services being compensated for by such
6payment may have been rendered in a prior fiscal year, except
7as required by subsection (j) of this Section. Beginning on
8June 30, 2021, payments made by the Department of Public Health
9and the Department of Human Services from their respective
10appropriations for grants for medical care to or on behalf of
11premature and high-mortality risk infants and their mothers and
12for grants for supplemental food supplies provided under the
13United States Department of Agriculture Women, Infants and
14Children Nutrition Program payable from appropriations that
15have otherwise expired may be paid out of the expiring
16appropriations during the 4-month period ending at the close of
17business on October 31.
18 (d) The Department of Public Health and the Department of
19Human Services (acting as successor to the Department of Public
20Health under the Department of Human Services Act) shall each
21annually submit to the State Comptroller, Senate President,
22Senate Minority Leader, Speaker of the House, House Minority
23Leader, and the respective Chairmen and Minority Spokesmen of
24the Appropriations Committees of the Senate and the House, on
25or before December 31, a report of fiscal year funds used to
26pay for services provided in any prior fiscal year. This report

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1shall document by program or service category those
2expenditures from the most recently completed fiscal year used
3to pay for services provided in prior fiscal years.
4 (e) The Department of Healthcare and Family Services, the
5Department of Human Services (acting as successor to the
6Department of Public Aid), and the Department of Human Services
7making fee-for-service payments relating to substance abuse
8treatment services provided during a previous fiscal year shall
9each annually submit to the State Comptroller, Senate
10President, Senate Minority Leader, Speaker of the House, House
11Minority Leader, the respective Chairmen and Minority
12Spokesmen of the Appropriations Committees of the Senate and
13the House, on or before November 30, a report that shall
14document by program or service category those expenditures from
15the most recently completed fiscal year used to pay for (i)
16services provided in prior fiscal years and (ii) services for
17which claims were received in prior fiscal years.
18 (f) The Department of Human Services (as successor to the
19Department of Public Aid) shall annually submit to the State
20Comptroller, Senate President, Senate Minority Leader, Speaker
21of the House, House Minority Leader, and the respective
22Chairmen and Minority Spokesmen of the Appropriations
23Committees of the Senate and the House, on or before December
2431, a report of fiscal year funds used to pay for services
25(other than medical care) provided in any prior fiscal year.
26This report shall document by program or service category those

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1expenditures from the most recently completed fiscal year used
2to pay for services provided in prior fiscal years.
3 (g) In addition, each annual report required to be
4submitted by the Department of Healthcare and Family Services
5under subsection (e) shall include the following information
6with respect to the State's Medicaid program:
7 (1) Explanations of the exact causes of the variance
8 between the previous year's estimated and actual
9 liabilities.
10 (2) Factors affecting the Department of Healthcare and
11 Family Services' liabilities, including but not limited to
12 numbers of aid recipients, levels of medical service
13 utilization by aid recipients, and inflation in the cost of
14 medical services.
15 (3) The results of the Department's efforts to combat
16 fraud and abuse.
17 (h) As provided in Section 4 of the General Assembly
18Compensation Act, any utility bill for service provided to a
19General Assembly member's district office for a period
20including portions of 2 consecutive fiscal years may be paid
21from funds appropriated for such expenditure in either fiscal
22year.
23 (i) An agency which administers a fund classified by the
24Comptroller as an internal service fund may issue rules for:
25 (1) billing user agencies in advance for payments or
26 authorized inter-fund transfers based on estimated charges

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1 for goods or services;
2 (2) issuing credits, refunding through inter-fund
3 transfers, or reducing future inter-fund transfers during
4 the subsequent fiscal year for all user agency payments or
5 authorized inter-fund transfers received during the prior
6 fiscal year which were in excess of the final amounts owed
7 by the user agency for that period; and
8 (3) issuing catch-up billings to user agencies during
9 the subsequent fiscal year for amounts remaining due when
10 payments or authorized inter-fund transfers received from
11 the user agency during the prior fiscal year were less than
12 the total amount owed for that period.
13User agencies are authorized to reimburse internal service
14funds for catch-up billings by vouchers drawn against their
15respective appropriations for the fiscal year in which the
16catch-up billing was issued or by increasing an authorized
17inter-fund transfer during the current fiscal year. For the
18purposes of this Act, "inter-fund transfers" means transfers
19without the use of the voucher-warrant process, as authorized
20by Section 9.01 of the State Comptroller Act.
21 (i-1) Beginning on July 1, 2021, all outstanding
22liabilities, not payable during the 4-month lapse period as
23described in subsections (b-1), (b-3), (b-4), (b-5), (b-6), and
24(c) of this Section, that are made from appropriations for that
25purpose for any fiscal year, without regard to the fact that
26the services being compensated for by those payments may have

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1been rendered in a prior fiscal year, are limited to only those
2claims that have been incurred but for which a proper bill or
3invoice as defined by the State Prompt Payment Act has not been
4received by September 30th following the end of the fiscal year
5in which the service was rendered.
6 (j) Notwithstanding any other provision of this Act, the
7aggregate amount of payments to be made without regard for
8fiscal year limitations as contained in subsections (b-1),
9(b-3), (b-4), (b-5), (b-6), and (c) of this Section, and
10determined by using Generally Accepted Accounting Principles,
11shall not exceed the following amounts:
12 (1) $6,000,000,000 for outstanding liabilities related
13 to fiscal year 2012;
14 (2) $5,300,000,000 for outstanding liabilities related
15 to fiscal year 2013;
16 (3) $4,600,000,000 for outstanding liabilities related
17 to fiscal year 2014;
18 (4) $4,000,000,000 for outstanding liabilities related
19 to fiscal year 2015;
20 (5) $3,300,000,000 for outstanding liabilities related
21 to fiscal year 2016;
22 (6) $2,600,000,000 for outstanding liabilities related
23 to fiscal year 2017;
24 (7) $2,000,000,000 for outstanding liabilities related
25 to fiscal year 2018;
26 (8) $1,300,000,000 for outstanding liabilities related

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1 to fiscal year 2019;
2 (9) $600,000,000 for outstanding liabilities related
3 to fiscal year 2020; and
4 (10) $0 for outstanding liabilities related to fiscal
5 year 2021 and fiscal years thereafter.
6 (k) Department of Healthcare and Family Services Medical
7Assistance Payments.
8 (1) Definition of Medical Assistance.
9 For purposes of this subsection, the term "Medical
10 Assistance" shall include, but not necessarily be
11 limited to, medical programs and services authorized
12 under Titles XIX and XXI of the Social Security Act,
13 the Illinois Public Aid Code, the Children's Health
14 Insurance Program Act, the Covering ALL KIDS Health
15 Insurance Act, the Long Term Acute Care Hospital
16 Quality Improvement Transfer Program Act, and medical
17 care to or on behalf of persons suffering from chronic
18 renal disease, persons suffering from hemophilia, and
19 victims of sexual assault.
20 (2) Limitations on Medical Assistance payments that
21 may be paid from future fiscal year appropriations.
22 (A) The maximum amounts of annual unpaid Medical
23 Assistance bills received and recorded by the
24 Department of Healthcare and Family Services on or
25 before June 30th of a particular fiscal year
26 attributable in aggregate to the General Revenue Fund,

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1 Healthcare Provider Relief Fund, Tobacco Settlement
2 Recovery Fund, Long-Term Care Provider Fund, and the
3 Drug Rebate Fund that may be paid in total by the
4 Department from future fiscal year Medical Assistance
5 appropriations to those funds are: $700,000,000 for
6 fiscal year 2013 and $100,000,000 for fiscal year 2014
7 and each fiscal year thereafter.
8 (B) Bills for Medical Assistance services rendered
9 in a particular fiscal year, but received and recorded
10 by the Department of Healthcare and Family Services
11 after June 30th of that fiscal year, may be paid from
12 either appropriations for that fiscal year or future
13 fiscal year appropriations for Medical Assistance.
14 Such payments shall not be subject to the requirements
15 of subparagraph (A).
16 (C) Medical Assistance bills received by the
17 Department of Healthcare and Family Services in a
18 particular fiscal year, but subject to payment amount
19 adjustments in a future fiscal year may be paid from a
20 future fiscal year's appropriation for Medical
21 Assistance. Such payments shall not be subject to the
22 requirements of subparagraph (A).
23 (D) Medical Assistance payments made by the
24 Department of Healthcare and Family Services from
25 funds other than those specifically referenced in
26 subparagraph (A) may be made from appropriations for

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1 those purposes for any fiscal year without regard to
2 the fact that the Medical Assistance services being
3 compensated for by such payment may have been rendered
4 in a prior fiscal year. Such payments shall not be
5 subject to the requirements of subparagraph (A).
6 (3) Extended lapse period for Department of Healthcare
7 and Family Services Medical Assistance payments.
8 Notwithstanding any other State law to the contrary,
9 outstanding Department of Healthcare and Family Services
10 Medical Assistance liabilities, as of June 30th, payable
11 from appropriations which have otherwise expired, may be
12 paid out of the expiring appropriations during the 6-month
13 period ending at the close of business on December 31st.
14 (l) The changes to this Section made by Public Act 97-691
15shall be effective for payment of Medical Assistance bills
16incurred in fiscal year 2013 and future fiscal years. The
17changes to this Section made by Public Act 97-691 shall not be
18applied to Medical Assistance bills incurred in fiscal year
192012 or prior fiscal years.
20 (m) The Comptroller must issue payments against
21outstanding liabilities that were received prior to the lapse
22period deadlines set forth in this Section as soon thereafter
23as practical, but no payment may be issued after the 4 months
24following the lapse period deadline without the signed
25authorization of the Comptroller and the Governor.
26(Source: P.A. 97-75, eff. 6-30-11; 97-333, eff. 8-12-11;

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197-691, eff. 7-1-12; 97-732, eff. 6-30-12; 97-932, eff.
28-10-12; 98-8, eff. 5-3-13; 98-24, eff. 6-19-13; 98-215, eff.
38-9-13; 98-463, eff. 8-16-13; 98-756, eff. 7-16-14.)
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