SB 3397 — PROCUREMENT-HIGHER ED

SB3397 EngrossedEnrolled LRB097 17074 PJG 62272 b AN ACT concerning finance.

The IllinoisState ProcurementFinance CodeAct is amended by changing Section 1-1325 as follows:

(30 ILCS 500/1-13)105/25) (Section(from scheduledCh. to be repealed on December 31, 2014) Sec.

1-13.127, par.

Applicability161) toSec. public institutions of higher education.

(a)25. This Code shall apply to public institutions of higher education, regardless of the source of the funds with which contracts are paid, except as provided in this Section.

(b)Fiscal Exceptyear aslimitations. provided in this Section, this Code shall not apply to procurements made by or on behalf of public institutions of higher education for any of the following:

(1)(a) MembershipsAll inappropriations professional,shall academic,be oravailable athleticfor organizationsexpenditure onfor behalfthe offiscal ayear publicor institutionfor of higher education, an employee of a publiclesser institutionperiod ofif higherthe education,Act ormaking athat studentappropriation atso aspecifies. public institution of higher education.

(2)A Procurementdeficiency expendituresor foremergency eventsappropriation orshall activitiesbe paidavailable for exclusivelyexpenditure byonly revenuesthrough generatedJune by30 of the eventyear orwhen activity, gifts or donations for the eventAct ormaking activity,that SB3397appropriation Engrossedis -enacted 2unless -that LRB097Act 17074otherwise PJGprovides. 62272 b private grants, or any combination thereof.

(3)(b) ProcurementOutstanding expendituresliabilities foras eventsof orJune activities30, forpayable whichfrom theappropriations usewhich ofhave specificotherwise vendorsexpired, ismay mandatedbe orpaid identifiedout by the sponsor of the eventexpiring orappropriations activity,during provided that the sponsor2-month isperiod providingending aat majority of the fundingclose forof thebusiness eventon orAugust activity.31.

(4)Any Procurementservice expendituresinvolving necessaryprofessional toor provide artistic skills or musicalany services,personal performances,services orby productionsan heldemployee atwhose acompensation venueis operatedsubject byto aincome publictax institutionwithholding must be performed as of higherJune education.30 of the fiscal year in order to be considered an "outstanding liability as of June 30" that is thereby eligible for payment out of the expiring appropriation.

(5)SB3397 ProcurementEnrolled expenditures- for2 periodicals- andLRB097 books17074 procuredPJG 62272 b (b-1) However, payment of tuition reimbursement claims under Section 14-7.03 or 18-3 of the School Code may be made by the State Board of Education from its appropriations for usethose respective purposes for any fiscal year, even though the claims reimbursed by the payment may be claims attributable to a universityprior libraryfiscal oryear, academicand department,payments exceptmay forbe expendituresmade relatedat the direction of the State Superintendent of Education from the fund from which the appropriation is made without regard to procuringany textbooksfiscal foryear studentlimitations, useexcept oras materialsrequired forby resalesubsection or(j) rental.of this Section.

NoticeBeginning on June 30, 2021, payment of eachtuition contractreimbursement enteredclaims intounder bySection a14-7.03 publicor institution18-3 of higherthe educationSchool thatCode isas relatedof toJune the30, procurementpayable offrom goodsappropriations andthat serviceshave identifiedotherwise inexpired, itemsmay (1)be throughpaid (5)out of thisthe subsectionexpiring shallappropriation beduring publishedthe in4-month theperiod Procurementending Bulletinat withinthe 14close daysof afterbusiness contracton execution.October 31.

The(b-2) ChiefAll Procurementoutstanding Officerliabilities shallas prescribeof June 30, 2010, payable from appropriations that would otherwise expire at the formconclusion of the lapse period for fiscal year 2010, and contentinterest penalties payable on those liabilities under the State Prompt Payment Act, may be paid out of the notice.expiring appropriations until December 31, 2010, without regard to the fiscal year in which the payment is made, as long as vouchers for the liabilities are received by the Comptroller no later than August 31, 2010.

Each(b-2.5) publicAll institutionoutstanding liabilities as of higherJune education30, shall2011, providepayable from appropriations that would otherwise expire at the ChiefSB3397 ProcurementEnrolled Officer,- on3 a- monthlyLRB097 basis,17074 inPJG 62272 b conclusion of the formlapse period for fiscal year 2011, and contentinterest prescribedpenalties bypayable on those liabilities under the ChiefState ProcurementPrompt Officer,Payment aAct, reportmay be paid out of contractsthe thatexpiring areappropriations relateduntil December 31, 2011, without regard to the procurementfiscal ofyear goodsin andwhich servicesthe identifiedpayment inis thismade, subsection.as long as vouchers for the liabilities are received by the Comptroller no later than August 31, 2011.

At(b-3) aMedical minimum,payments thismay SB3397be Engrossedmade -by 3the -Department LRB097of 17074Veterans' PJGAffairs 62272from bits reportappropriations shallfor includethose thepurposes namefor ofany thefiscal contractor,year, awithout descriptionregard ofto the supplyfact orthat servicethe provided,medical theservices totalbeing amountcompensated offor theby contract,such thepayment termmay ofhave thebeen contract,rendered andin thea exceptionprior tofiscal theyear, Codeexcept utilized.as required by subsection (j) of this Section.

ABeginning copyon ofJune any30, or2021, allmedical ofpayments thesepayable contractsfrom shallappropriations that have otherwise expired may be madepaid availableout toof the Chiefexpiring Procurementappropriation Officerduring immediatelythe upon4-month request.period ending at the close of business on October 31.

The(b-4) ChiefMedical Procurementpayments Officermay shallbe submitmade aby reportthe toDepartment theof GovernorHealthcare and GeneralFamily AssemblyServices noand latermedical thanpayments Novemberand 1child ofcare eachpayments yearmay thatbe shallmade include,by atthe aDepartment minimum,of anHuman annualServices summary(as ofsuccessor to the monthlyDepartment informationof reportedPublic Aid) from appropriations for those purposes for any fiscal year, without regard to the Chieffact Procurementthat Officer.the medical or child care services being compensated for by such payment may have been rendered in a prior fiscal year;

(c)and Procurementspayments mademay bybe ormade onat behalfthe direction of publicthe institutionsDepartment of higherHealthcare educationand forFamily anyServices of(or theSB3397 followingEnrolled shall- be4 made- inLRB097 accordance17074 withPJG 62272 b successor agency) from the requirementsHealth ofInsurance thisReserve CodeFund toand the extentLocal practicalGovernment Health Insurance Reserve Fund without regard to any fiscal year limitations, except as providedrequired inby subsection (j) of this subsection:Section.

(1)Beginning Contractson withJune a30, foreign2021, entitymedical necessaryand forpayments researchmade orby educationalthe activities,Department providedof thatHealthcare and Family Services, child care payments made by the foreignDepartment entityof eitherHuman doesServices, notand maintainpayments anmade officeat inthe discretion of the UnitedDepartment Statesof orHealthcare isand Family Services (or successor agency) from the soleHealth sourceInsurance Reserve Fund and the Local Government Health Insurance Reserve Fund payable from appropriations that have otherwise expired may be paid out of the serviceexpiring orappropriation product.during the 4-month period ending at the close of business on October 31.

(2)(b-5) ProcurementsMedical payments may be made by the Department of FDA-regulatedHuman goods,Services products,from andits appropriations relating to substance abuse treatment services necessaryfor any fiscal year, without regard to the fact that the medical services being compensated for by such payment may have been rendered in a prior fiscal year, provided the deliverypayments ofare caremade andon treatmenta atfee-for-service medical,basis dental,consistent orwith veterinaryrequirements teachingestablished facilitiesfor utilizedMedicaid reimbursement by the UniversityDepartment of IllinoisHealthcare orand SouthernFamily IllinoisServices, University.except as required by subsection (j) of this Section.

(3)Beginning Contractson forJune programming30, and2021, broadcastmedical licensepayments rightsmade forby university-operatedthe radioDepartment andof televisionHuman Services relating to substance abuse treatment services payable from appropriations that have otherwise expired may be paid out of the expiring appropriation SB3397 EngrossedEnrolled - 45 - LRB097 17074 PJG 62272 b stations.during the 4-month period ending at the close of business on October 31.

(4)(b-6) ProcurementsAdditionally, requiredpayments may be made by the Department of Human Services from its appropriations, or any other State agency from its appropriations with the approval of the Department of Human Services, from the Immigration Reform and Control Fund for fulfillmentpurposes authorized pursuant to the Immigration Reform and Control Act of a1986, grant.without regard to any fiscal year limitations, except as required by subsection (j) of this Section.

UponBeginning theon writtenJune request30, of2021, apayments publicmade institutionby the Department of higherHuman education,Services from the ChiefImmigration ProcurementReform Officerand mayControl waiveFund registration,for certification,purposes authorized pursuant to the Immigration Reform and hearingControl requirementsAct of this1986 Codepayable if,from basedappropriations onthat thehave itemotherwise toexpired may be procuredpaid orout of the termsexpiring ofappropriation aduring grant,the compliance4-month isperiod impractical.ending at the close of business on October 31.

The(b-7) publicPayments institutionmay ofbe highermade educationin shallaccordance provide the Chief Procurement Officer with specifica reasonsplan forauthorized theby waiver,paragraph including(11) theor necessity(12) of contractingSection with405-105 aof particularthe vendor,Department andof shallCentral certifyManagement thatServices anLaw effortfrom wasappropriations madefor inthose goodpayments faithwithout regard to complyfiscal withyear thelimitations. provisions of this Code.

The(c) ChiefFurther, Procurementpayments Officermay shallbe providemade writtenby justificationthe Department of Public Health and , the Department of Human Services (acting as successor to the Department of Public Health under the Department of Human Services Act), and the Department of Healthcare and Family Services from their respective SB3397 Enrolled - 6 - LRB097 17074 PJG 62272 b appropriations for grants for medical care to or on behalf of persons suffering from chronic renal disease, persons suffering from hemophilia, rape victims, and premature and high-mortality risk infants and their mothers and for grants for supplemental food supplies provided under the United States Department of Agriculture Women, Infants and Children Nutrition Program, for any waivers.fiscal year without regard to the fact that the services being compensated for by such payment may have been rendered in a prior fiscal year, except as required by subsection (j) of this Section.

ByBeginning Novemberon 1June of30, each2021, year,payments themade Chiefby Procurementthe OfficerDepartment shallof filePublic aHealth reportand with, the GeneralDepartment Assemblyof identifyingHuman eachServices, contractand approvedthe withDepartment waiversof Healthcare and providingFamily theServices justificationfrom giventheir respective appropriations for anygrants waiversfor medical care to or on behalf of persons suffering from chronic renal disease, persons suffering from hemophilia, rape victims, and premature and high-mortality risk infants and their mothers and for eachgrants for supplemental food supplies provided under the United States Department of thoseAgriculture contracts.Women, Infants and Children Nutrition Program payable from appropriations that have otherwise expired may be paid out of the expiring appropriations during the 4-month period ending at the close of business on October 31.

Notice(d) The Department of eachPublic waiverHealth madeand the Department of Human Services (acting as successor to the Department of Public Health under thisthe subsectionDepartment of Human Services Act) shall beeach publishedSB3397 inEnrolled - 7 - LRB097 17074 PJG 62272 b annually submit to the ProcurementState BulletinComptroller, withinSenate 14President, daysSenate afterMinority contractLeader, execution.Speaker of the House, House Minority Leader, and the respective Chairmen and Minority Spokesmen of the Appropriations Committees of the Senate and the House, on or before December 31, a report of fiscal year funds used to pay for services provided in any prior fiscal year.

TheThis Chiefreport Procurementshall Officerdocument shallby prescribeprogram theor formservice andcategory contentthose ofexpenditures from the notice.most recently completed fiscal year used to pay for services provided in prior fiscal years.

(d)(e) NotwithstandingThe thisDepartment Section,of aHealthcare waiverand Family Services, the Department of Human Services (acting as successor to the registrationDepartment requirementsof Public Aid), and the Department of SectionHuman 20-160Services doesmaking notfee-for-service permitpayments relating to substance abuse treatment services provided during a businessprevious entityfiscal year shall each annually submit to the State Comptroller, Senate President, Senate Minority Leader, Speaker of the House, House Minority Leader, the respective Chairmen and anyMinority affiliatedSpokesmen entitiesof the Appropriations Committees of the Senate and the House, on or affiliatedbefore personsNovember 30, a report that shall document by program or service category those expenditures from the most recently completed fiscal year used to makepay campaignfor contributions(i) ifservices otherwiseprovided prohibitedin byprior Sectionfiscal 50-37.years and (ii) services for which claims were received in prior fiscal years.

(f) The totalDepartment amount of contractsHuman awardedServices in(as accordancesuccessor withto thisthe SectionDepartment of Public Aid) shall beannually includedsubmit into determiningthe State Comptroller, Senate President, Senate Minority Leader, Speaker SB3397 EngrossedEnrolled - 58 - LRB097 17074 PJG 62272 b of the aggregateHouse, amountHouse ofMinority contractsLeader, orand pendingthe bidsrespective Chairmen and Minority Spokesmen of athe businessAppropriations entityCommittees of the Senate and anythe affiliatedHouse, entitieson or affiliatedbefore persons.December 31, a report of fiscal year funds used to pay for services (other than medical care) provided in any prior fiscal year.

(e)This Notwithstandingreport subsectionshall (e)document ofby Sectionprogram 50-10.5or ofservice thiscategory Code,those theexpenditures Chieffrom Procurement Officer, with the approvalmost ofrecently thecompleted Executivefiscal Ethicsyear Commission,used may permit a public institution of higher education to acceptpay a bid or enter into a contract with a business that assisted the public institution of higher education in determining whether there is a need for aservices contract or assisted in reviewing, drafting, or preparing documents related to a bid or contract, provided that the bid or contract is essential to research administered by the public institution of higher education and it is in theprior bestfiscal interestyears. of the public institution of higher education to accept the bid or contract.

For(g) purposesIn ofaddition, thiseach subsection,annual "business"report includesrequired allto individualsbe withsubmitted whomby athe businessDepartment isof affiliated,Healthcare including,and butFamily notServices limitedunder to,subsection any(e) officer,shall agent,include employee,the consultant,following independentinformation contractor,with director,respect partner,to manager,the orState's shareholderMedicaid ofprogram: a business.

The(1) ExecutiveExplanations Ethicsof Commissionthe mayexact promulgatecauses rulesof and regulations for the implementationvariance andbetween administration of the provisionsprevious ofyear's thisestimated subsectionand (e).actual liabilities.

(f)(2) AsFactors usedaffecting the Department of Healthcare and Family Services' liabilities, including but not limited to numbers of aid recipients, levels of medical service utilization by aid recipients, and inflation in thisthe Section:cost of medical services.

"Grant"(3) meansThe non-appropriatedresults fundingof providedthe byDepartment's aefforts federal or private entity to supportcombat afraud project or program administered by a public institution of higher education and anyabuse. non-appropriated funding provided to a sub-recipient of the SB3397 Engrossed - 6 - LRB097 17074 PJG 62272 b grant.

"Public(h) institutionAs ofprovided higherin education"Section means4 Chicagoof Statethe University,General EasternAssembly IllinoisCompensation University,Act, Governorsany Stateutility University,bill Illinoisfor Stateservice University,provided Northeasternto Illinoisa University,General NorthernAssembly Illinoismember's University,district Southernoffice Illinoisfor University,a Universityperiod including portions of Illinois,2 andconsecutive Westernfiscal Illinoisyears University,may and,be forpaid purposesSB3397 ofEnrolled this- Code9 only,- theLRB097 Illinois17074 MathematicsPJG and62272 Scienceb Academy.from funds appropriated for such expenditure in either fiscal year.

(g)(i) ThisAn Sectionagency iswhich repealedadministers ona Decemberfund 31,classified 2014.by the Comptroller as an internal service fund may issue rules for:

(Source:(1) billing user agencies in advance for payments or authorized inter-fund transfers based on estimated charges for goods or services;

(2) issuing credits, refunding through inter-fund transfers, or reducing future inter-fund transfers during the subsequent fiscal year for all user agency payments or authorized inter-fund transfers received during the prior fiscal year which were in excess of the final amounts owed by the user agency for that period;