Here is Phil’s summary of important disability legislation. You should pay particular
attention to:

  • SB 220 which raises the personal needs allowance for persons residing in
    CILA or ICFDD’s for FY 2015 only
  • SB 822 offers below market rate loans to nonprofits for capital needs
  • HB 2747 which adopts federal rules for all grants
  • HB 3793 the capitol projects bill
  • HB 4407 provides for “stay put” rules for children in Early Intervention
  • HB 5307 the CILA Recipient’s Fund Protection Bill
  • HB 6096 the Fy 2015 Human Services Budget Bill



JUNE 6, 2014
Phil Milsk, Arc Governmental Affairs Consultant

The following bills of interest passed both houses of the General Assembly this

SB 220 (Kotowski) (Madigan)
Passed both houses 5/30/14

FY 2015 Budget Implementation Bill includes:

  •  Interfund Borrowing and Transfers
  • PACE/ADA Paratransit grant of $3.825 million
  • Extending until July 1, 2015, indefinite grants suspension
  •  Adds “other eligible primary care providers” to address health care
    disparities in underserved areas under the Family Practice Residency Act
  • Raises the grant level for refugees and asylees who are elderly or
    disabled who do not qualify for SSI under Federal Law from $500/month to
    90% of the maximum SSI payment amount per month (applies to about
    150 persons)
  • Raises the personal needs allowance for persons residing in a CILA or
    ICF-DD to $60/month for FY 2015 only.


SB 229(Delgado) (Golar)
Passed both houses 5/30/14

Requires the uniform application to serve on a board or commission to include a
data field where the applicant shall disclose his or her ethnicity, gender, and
disability status for reporting purposes.  Requires the Governor to file an annual
report with the General Assembly detailing the demographic information.

SB 741(Trotter) (G. Harris)
Passed both houses 5/29/14

Omnibus Medicaid Bill includes:

  • New hospital rate methodology
  • Extends hospital assessment programs to July 1, 2018
  • HFS to request federal approval for new federal dollars for hospitals
    serving newly eligible Medicaid recipients who are reimbursed at 100%
    match and will raise roughly $400 million annually.  This will be distributed
    to hospitals across the state.
  • Clarifies the responsibilities of MCOs and ACEs and hospitals regarding
    enrollment of Medicaid clients into managed care
  • Clarifies the responsibilities of MCOs and nursing homes for Medicaid
    clients enrolled in the Medicare-Medicaid Alignment Initiative (dual
  • Expedited Long Term Care eligibility processing by simplifying eligibility
    verification policies, redeploying caseworkers trained in LTC eligibility,
    foregoing resource review for some cases and transmitting certain
    information and Medicaid applications electronically.
  • Changes for SMHRFs:  Allows Health Facilities and Services Review
    Board to relocate SMHRF to an underserved area of the State.  State
    will develop and implement a service authorization system available 24
    hours/day 7 days/week for approval of services in the 3 levels of care in
    SMHRFs. SMHRFs may locate a triage unit, or short-term crisis
    stabilization center, in a separate facility within 1,000 feet of the SMHRF.
  • Benefits changes include:  (1) Restoration of adult dental services; (2)
    Restoration of adult podiatry services; (3) Elimination of prior
    authorization under the 4 prescription drug policy for anti-psychotic drugs
    ;  (4) Elimination of 4 prescription drug policy for children with complex
    medical needs who are enrolled in a care coordination entity (CCE) solely
    to coordinate care for the children, if the CCE has a comprehensive drug
    reconciliation program; (5) Eliminates the maximum 20 visits for speech
    , hearing, language, OT, PT, and replaces with a prior approval process;
    (6) Coverage for one or more vendors procured by CPS to manufacture
    eyeglasses for CPS students; (7) Coverage for kidney transplants for
    non-citizens with end-stage renal disease who are otherwise not eligible
    for Medicaid coverage, with some restrictions.
  • Rate increases for nursing homes, supported living facilities, residential
    facilities and transitional facilities serving children with clinically complex
    needs, home health services and SMHRFs (one-time payment for FY
  • Brings State  into compliance with federal law by providing coverage for
    children without private insurance for 3 months (instead of 12 months)
  • Brings State into compliance with federal law regarding reinstatement
    of client who is cancelled during redetermination if documentation is
    produced within 3 months (instead of 1 month).
  • Gives HFS and contracted MCEs access to IDPH’s immunization data,
    essential for care coordination.
SB 822(Hastings) (K. Burke)
Passed both houses 5/14/14

Changes provisions in the Mental Health and Developmental Disabilities
Administrative Act regarding the net proceeds of the sale of real estate when a
state facility is closed.  Provides that a portion of the proceeds may be set
aside by the Department for deposit into the Human Services Priority Capital
Program Fund.  The portion set aside may be used to make grants to the Illinois
Facilities Fund to make long term below market rate loans to nonprofit human
services providers working under contract with the State to assist providers in
meeting their capital needs.

SB 2586(Steans) (Gabel)
Passed both house 5/16/14

CBHA bill that requires the Governor’s Office of Health Innovation and
Transformation (GOHIT) to oversee a process for identifying needed mental
health services in different geographic regions of the State and identifying
financing strategies for developing needed services.  Report of findings and
recommendations due July 1, 2016.

HB 8(Flowers) (Hutchinson)
Passed both houses 5/28/14

Amends the IL Human Rights Act.  Makes it a violation to discriminate in
employment based on pregnancy.  “Pregnancy” is defined as pregnancy and
medical or common   conditions related to pregnancy or childbirth.  Provides
that it is a human rights violation if an employer (1) fails to make reasonable
accommodations as requested unless undue hardship on the ordinary
operation of the business can be shown; (2) denies employment opportunities
or benefits or takes adverse action against an otherwise qualified employee
or applicant based on pregnancy; (3) requires a job applicant or employee to
accept an accommodation that the applicant or employee chooses not to
accept; (4) requires the employee to take leave if another reasonable
accommodation can be provided. Prohibits retaliation against a person for
requesting an accommodation or attempting to use a reasonable
accommodation.  Requires the employee seeking accommodation to submit
documentation to the employer that is properly requested.  Effective January 1,

HB 2747(Crespo) (Kotowski)
Passed both houses 5/30/14

Creates the Grant Accountability and Transparency Act.  Purpose is to establish
uniform administrative requirements, cost principles, and audit requirements for
State and federal pass-through awards to non-federal entities.   Provides that
on or before July 1, 2015, GOMB, with the advice and technical assistance of
the Single Audit Commission, shall adopt rules which adopt the Uniform
Guidance at 2 CFR 200.  Addresses:

  • Adoption of federal rules applicable to grants
  • Conflicts of Interest provisions
  • Mandatory Disclosures
  • Supplemental Rules
  • Applicability of Act
  • State grant-making agency responsibilities
  • State program exceptions
  • Annual report that demonstrates the efficiencies, cost savings, and
    reduction in waste, fraud and abuse as a result of the implementation of
    the Act.
  • Recreates the Single Audit Commission with some changes
  • Sunsets 5 years from effective date
  • Immediate effective date
HB 3638(Fine) (Kotowski)
Passed both houses 5/28/14

Creates the Health Insurance Consumer Protection Act of 2014.  Requires
certain information to be provided to health insurance consumers with respect
toqualified health insurance plans offered on the State’s health insurance

  • For each plan offered, a recently published prescription drug formulary,
    information on tiering and cost-sharing structure for each tier and where
    consumers can obtain additional information about co-payments
  • Most recently published provider directory and other information about
    providers, medical groups, institutional affiliations, etc.
  • Make information available on the Internet and through other means for
    persons who do not have Internet access.
  • Requires Department of Insurance to ensure that State-operated
    websites provide links to Internet-based materials and tools to help
    consumers be informed purchasers of health insurance.
  • Requirements apply to all plans made available on and after January 1,
  • Same requirements apply to Managed Care Plans
  • Includes a “medical exceptions” requirement and process that would
    allow consumers to obtain prescription drugs not on the formulary
  • Establishes a prior authorization form and process and 72 hour timeline
    for approval or denial, and a 24 hour timeline in the case of an
    expedited coverage determination (does not apply to Medicaid or
    Medicare recipients)
  • Immediate effective date.
HB 3700 (Osmond) (Bush)
Passed both houses 5/20/14

Amends the School Code to require the State Board of Education to amend its
administrative rules on special education to incorporate an international
definition ofdyslexia.  Further provides that, subject to specific appropriation or
the availability of private donations, the State Board of Education shall establish
an advisory group to develop a training module or modules to provide education
and professional development to teachers, school administrators and other
education professionals regarding multi-sensory, systematic, and sequential
instruction in reading.  The advisory group is abolished on July 31, 2015.
Effective immediately.

HB 3793(Currie)(Kotowski)
Passed both houses 5/30/14

This is the 1,100+ page capital projects bill.

HB 3830(Golar) (Hunter)
Passed both houses 5/20/14

Amends the Department of Human Services Act regarding the Inspector General
by requiring the IG to report a finding of financial exploitation of an individual to
the Department of Public Health.  Effective immediately.

HB 4033(Golar) (Hunter)
Passed both Houses 5/20/14

Removes the requirement of ID badges for staff of ICF-DDs and CILA.

HB 4327(G. Harris) (Haine)
Passed both houses 5/28/14

Clean up bill to Adult Protective Services Act passed in 2013.  Effective

HB 4407(Gabel) (Morrison)
Passed both houses 5/29/14

Provides that the “stay-put” placement rule applicable to children in the Early
Intervention program applies to cases in which the parent has requested a
due process hearing, filed a State Complaint with DHS, or asked for Mediation.
(NOTE: Other matters raised in the introduced bill such as service
implementation timelines and notification of rights to parents were negotiated
with DHS and amended out of the bill.)  Effective immediately.

HB 4527(Chapa Lavia) (Lightford)
Passed both houses 5/29/14

State Board of Education bill that requires charter schools to comply with all
State and federal special education and English Language Learner
requirements. Effective immediately.

HB 5307(G. Harris) (Steans)
Passed both houses 5/29/14

CILA recipient’s fund protection bill.  Provides as follows:

  • Service provider may accept recipient’s funds for safekeeping and
    management upon written authorization from recipient or recipient’s
  • Provider must maintain a written record of all financial arrangements
    and transactions involving each recipient and shall allow recipient or
    recipient’s guardian to have access to the written record;
  • Provider shall provide each recipient, recipient’s guardian or the
    recipient’s immediate family member (in order of priority) with a written
    itemized statement of all financial transactions involving the recipient’s
    funds or a copy of the recipient’s checking or savings account register
    at least quarterly or for a requested period of time;
  • Provider shall purchase a surety bond or other commercial policy with
    crime coverage in an amount equal to or greater than all of the
    recipient’s personal funds deposited with the service provider to which
    employees of the provider have access;
  • The insurance company shall notify  DHS-DDD of any policy
    cancellation or reduction of coverage;
  • Shall keep recipients’ funds in an account or accounts separate from
    the service provider’s funds
  • Provider shall not withdraw all of recipient’s funds unless the service
    provider is (1) returning the funds to the recipient upon the request of the
    recipient or another person authorized to make the request, (2) paying the
    recipient his or her allowance or (3) making any other payment authorized
    by the recipient or another person entitled to make the authorization.
  • All funds in excess of $100 must be deposited in an interest-bearing
    account insured by agencies of or corporations chartered by the State or
    federal government, and clearly indicate that provider has only a fiduciary
    interest in the account
  • Up to $100 may be kept in a non-interest bearing account or petty cash
    fund for ready availability for recipient’s current expenditures
  • Provider shall return all funds upon request
  • Makes other changes
  • Effective immediately


HB 5598(Feigenholtz) (Morrison)
Passed both houses 5/22/14

Creates the Custody Relinquishment Prevention Act.  Requires an interagency
agreement of DHS, DCFS, ISBE, HFS, DJJ and IDPH to address the problem of
parents seeking to relinquish custody of children with serious mental illness to
DCFS in order to protect the family and obtain services for the child.   There is
$7 million in the FY 2015 budget for services for these children that was taken
out of the budget line for Individual Care Grants. (The ICG program lapsed $7
million in FY 2013).  Effective January 1, 2015.

HB 5707 (Cassidy) (Steans)
Passed both houses 5/29/14

Makes changes to the School Code with respect to school district bullying
prevention policies.  Requires each policy to have a reporting and investigation
process, and notification to parents and to the school principal.  Requires
schools to make all reasonable efforts to investigate and address reported
incidents within 10 school days.  Emphasizes the need for restorative measures
and interventions for both the victim and the student who engages in bullying
behaviors.   Requires a policy evaluation process every two years.   Effective

HB 6060(G. Harris) (Steans)
Passed both houses 5/30/14

FY 2014 supplemental appropriations  bill.  Includes $60 million for DHS Child
Care, $10 million for community-based addiction treatment and $8 million for
Early Intervention.

HB 6096(Madigan)(Cullerton)
Passed both houses 5/30/14

FY 2015 human services budget bill.   DD services are essentially flat funded.
GRF cuts to community based services made up with special fund appropriation.

Tony Paulauski
Executive Director
The Arc of Illinois
20901 S. LaGrange Rd. Suite 209
Frankfort, IL 60423
815-464-1832 (OFFICE)
815-464-1832 (CELL)