Public Act 093-0674
 		





HB0953 Enrolled
LRB093 05762 RCE 05855 b






    AN ACT in relation to State finances. 

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


 
    Section 5. The State Finance Act is amended  by changing 
Section 8h and  by adding Sections 5.625 and 6z-62 as follows:
 
    (30 ILCS 105/5.625  new)
    Sec. 5.625. The Medicaid Provider Relief Fund.
 
    (30 ILCS 105/6z-62  new)
    Sec. 6z-62. Medicaid Provider Relief Fund.
    (a) The Medicaid Provider Relief Fund ("the Fund") is 
created as a special fund in the State treasury. The Fund is 
created for the purpose of paying medical bills for which the 
State is responsible under Title XIX of the Social Security Act 
and under the Children's Health Insurance Program Act.
    (b) The Fund shall consist of the following:
        (1) All moneys received by the State from short-term 
    borrowing pursuant to the Short Term Borrowing Act or the 
    Medicaid Liability Liquidity Borrowing Act on or after the 
    effective date of this amendatory Act of the 93rd General 
    Assembly and before July 1, 2004.
        (2) All federal matching funds received as a result of 
    expenditures that are attributable to moneys deposited 
    into the Fund.
        (3) Interest earned on moneys in the Fund.
    (c) On July 1, 2004, the State Treasurer and the 
Comptroller shall transfer the balance in the Medicaid Provider 
Relief Fund to the General Revenue Fund. After July 1, 2004, 
the State Treasurer and the Comptroller shall automatically 
transfer all moneys deposited into the Medicaid Provider Relief 
Fund from that Fund to the General Revenue Fund.
    (d) This Section is repealed on June 30, 2005, and the 
State Treasurer and the Comptroller shall promptly transfer the 
balance remaining in the Fund on that date to the General 
Revenue Fund.
 
    (30 ILCS 105/8h)


    Sec. 8h. Transfers to General Revenue Fund.  
Notwithstanding any other
State law to the contrary, the 
Director of the
Governor's Office of Management and Budget

may 
from time to time direct the State Treasurer and Comptroller to 
transfer
a specified sum from any fund held by the State 
Treasurer to the General
Revenue Fund in order to help defray 
the State's operating costs for the
fiscal year.  The total 
transfer under this Section from any fund in any
fiscal year 
shall not exceed the lesser of 8% of the revenues to be 
deposited
into the fund during that year or 25% of the 
beginning balance in the fund.
No transfer may be made from a 
fund under this Section that would have the
effect of reducing 
the available balance in the fund to an amount less than
the 
amount remaining unexpended and unreserved from the total 
appropriation
from that fund for that fiscal year.  This Section 
does not apply to any
funds that are restricted by federal law 
to a specific use or to any funds in
the Motor Fuel Tax Fund,
or

the Hospital Provider Fund, or the Medicaid Provider Relief 
Fund.  Notwithstanding any
other provision of this Section,
the 
total transfer under this Section from the Road Fund or the 
State
Construction Account Fund shall not exceed 5% of the 
revenues to be deposited
into the fund during that year.


    In determining the available balance in a fund, the 
Director of the
Governor's Office of Management and Budget

may 
include receipts, transfers into the fund, and other
resources 
anticipated to be available in the fund in that fiscal year.


    The State Treasurer and Comptroller shall transfer the 
amounts designated
under this Section as soon as may be 
practicable after receiving the direction
to transfer from the 
Director of the Governor's Office of Management and
Budget.


(Source: P.A. 93-32, eff. 6-20-03; 93-659, eff. 2-3-04.)

 
    Section 10. The Short Term Borrowing Act is amended  by 
changing Section 3 as follows:
 



    (30 ILCS 340/3)  (from Ch. 120, par. 408)


    Sec. 3. There shall be prepared under the direction of the 
officers
named in this Act such form of bonds or certificates 
as they shall deem
advisable, which, when issued, shall be 
signed by the Governor, Comptroller
and Treasurer, and shall be 
recorded by the Comptroller in a
book to be kept by him or her 
for that purpose.  The interest and principal
of such loan shall 
be paid by the treasurer out of the General Obligation Bond

Retirement and Interest Fund.

    There is hereby appropriated out of any money in the 
Treasury a sum
sufficient for the payment of the interest and 
principal of any debts
contracted under this Act.

    The Governor, Comptroller, and Treasurer are
authorized to 
order pursuant to the proceedings authorizing those debts the

transfer of any moneys on deposit in the treasury into the 
General
Obligation Bond Retirement and Interest Fund at times 
and in amounts they
deem necessary to provide for the payment 
of that interest and principal.

    The Comptroller is hereby authorized and directed to draw 
his warrant on
the State Treasurer for the amount of all such 
payments.

    The directive authorizing borrowing under Section 1 or 1.1 
of this Act
shall set forth a pro forma cash flow statement 
that identifies estimated
monthly receipts and expenditures 
with identification of sources for
repaying the borrowed funds.

    All proceeds from any borrowing under this Act received by 
the State on or after the effective date of this amendatory Act 
of the 93rd General Assembly and before July 1, 2004 shall be 
deposited into the Medicaid Provider Relief Fund.

(Source: P.A. 87-838; 87-860; 88-669, eff. 11-29-94.)



 
    Section 15. The Medicaid Liability Liquidity Borrowing Act 
is amended  by changing Sections 5 and 10 as follows:
 



    (30 ILCS 342/5)



    Sec. 5. Borrowing authorized. For the period June 9, 2004

July 1, 1994 through June 30,
2004
1995, borrowing pursuant to 
this Section is authorized under subsection (b) of Section 9 of 
Article IX of the Illinois Constitution.  The purpose of the 
borrowing shall be
Whenever casual
deficits or failures in 
revenues of the State occur, and those casual deficits
or 
failures in revenues affect the State's ability to pay for 
medical services
provided under the Illinois Public Aid Code or 
the Children's Health Insurance Program Act , in order to meet

those casual deficits or failures in revenues, and the 
Governor, after having obtained the written consent of both the 
Comptroller and the Treasurer, may contract debts,
under this 
Section, for principal amounts not to exceed $850,000,000, as 
supported by properly enacted State fiscal year 2004 
appropriations for this purpose
$900,000,000.  This contracted

debt, when added to amounts borrowed under the Short Term 
Borrowing Act during the then current fiscal year, may not 
exceed 15%
of the State's appropriations for that fiscal year.  
Moneys thus borrowed shall
be applied to the purpose of paying 
for medical services as described in this
Section, or to pay 
the debts and associated expenses thus incurred
created, and to 
no other purpose.  All proceeds from any borrowing under this 
Act received by the State on or after the effective date of 
this amendatory Act of the 93rd General Assembly and before 
July 1, 2004 shall be deposited into the Medicaid Provider 
Relief Fund.
The
Governor shall direct the proceeds of this 
borrowing into any State fund from
which there are 
appropriations for medical assistance under the Illinois 
Public
Aid Code.  All moneys so borrowed shall be borrowed for 
no longer time than one
year.
(Source: P.A. 88-554, eff. 7-26-94; 89-626, eff. 8-9-96.)

 



    (30 ILCS 342/10)



    Sec. 10. Advertising for loan. Whenever the borrowing of 
money under
Section 5 is contemplated, it is the duty of the 
Director of the
Governor's Office of Management and Budget

Bureau of the
Budget acting at the direction of the Governor
to 
advertise for proposals for the loan in the manner that is 
determined by the
Director of the
Governor's Office of 
Management and Budget
Bureau of the Budget to give reasonable 
notice of the request
for proposals.  The advertisements shall 
set forth the amount of debt proposed
to be contracted and the 
time and place for the payment of the principal and
interest.  
The loan shall be awarded to the person or persons agreeing to 
take
it at the lowest rate of interest not exceeding the 
maximum rate authorized by
the Bond Authorization Act, as 
amended at the time of the making of the
contract.

(Source: P.A. 88-554, eff. 7-26-94; revised 8-23-03.)

 
    Section 20. The Illinois Public Aid Code is amended  by 
adding Section 5-16.13 as follows:
 
    (305 ILCS 5/5-16.13  new)
    Sec. 5-16.13. Medicaid Managed Care Task Force.
    (a) Medicaid, the medical assistance program jointly 
administered by the State of Illinois and the United States 
governments for low-income and uninsured populations, is the 
largest single insurance provider in the State.  In Illinois, 
one in every 7 adults, one in 3 children, and 2 of every 3 
nursing home residents are all provided health care under the 
State's Medicaid program.
    Over the past 10 years, Medicaid in Illinois has grown an 
average of 8% annually, which requires at least $500,000,000 in 
additional State resources every year.
    Medicaid in Illinois is a cost-reimbursement system that 
does little to promote health or encourage improvements in the 
quality of health care services being delivered to the growing 
populations needing assistance.
    The advent of managed care plans in the insurance industry 
has driven down health care costs for many while amply managing 
individual needs in a system to deliver cost-efficient health 
care services.
    (b) To better examine and evaluate the application of 
managed care within the State's Medicaid program, there is 
hereby established the bipartisan Medicaid Managed Care Task 
Force.
    The Task Force shall consist of 8 voting members, as 
follows: 2 members of the Senate appointed by the President of 
the Senate, 2 members of the Senate appointed by the Senate 
Minority Leader, 2 members of the House of Representatives 
appointed by the Speaker of the House of Representatives, and 2 
members of the House of Representatives appointed by the House 
Minority Leader.  All actions of the Task Force require the 
affirmative vote of at least 5 voting members.
    Members appointed to the Task Force shall elect from among 
themselves 2 co-chairs.
    Members appointed by the legislative leaders shall be 
appointed for the duration of the Task Force; in the event of a 
vacancy, the appointment to fill the vacancy shall be made by 
the same legislative leader who made the original appointment.
    The following persons shall serve, ex officio, as nonvoting 
members of the Task Force: the Director of the Governor's 
Office of Management and Budget, the Director of Public Aid, 
and the Secretary of Human Services.
    The Task Force shall begin to conduct business upon the 
appointment of a majority of the voting members. If the 
co-chairs have not both been appointed, the co-chair that has 
been appointed shall preside.
    Members shall serve without compensation but may be 
reimbursed for their expenses from appropriations for that 
purpose.
    (c) The Task Force shall gather information and make 
recommendations relating to the financing and expenditures of 
the Illinois Medicaid program and the program's level of 
ability to provide quality health care services in the most 
cost-efficient manner.  The Task Force shall examine and 
evaluate the application of managed care within the State's 
Medicaid program. The Task Force shall further assess whether 
the State's Medicaid services delivery system meets or exceeds 
the goals of quality, efficiency, accountability, and 
financial responsibility and shall make recommendations in 
keeping with those goals concerning the cost-efficient 
delivery of Medicaid services throughout Illinois.
    (d)  The Task Force shall conduct at least 6 public hearings 
beginning the later of July 2004 or upon the appointment of a 
majority of its members, through October 2004.
    Locations for public hearings are to be different and 
determined by the co-chairs in consultation with the other 
members of the Task Force.
    Comment and testimony at public hearing is to be sought 
from Medicaid recipients, health care providers and other 
health care
professionals, related advocates, health care 
finance experts, insurance industry professionals, and public 
officials from throughout the State.
    (e) The Governor's Office of Management and Budget, the 
Department of Public Aid, and the Department of Human Services 
are directed to provide information and assistance to the Task 
Force.
    (f) The Task Force shall submit a full report of its 
findings and recommendations to the General Assembly not later 
than November 8, 2004.  It may submit other reports as it deems 
appropriate.
    (g) The Task Force is abolished and this Section is 
repealed on December 31, 2004.
 

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