HB 4340

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Full Text of HB4340
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	HB4340 - 104th General Assembly
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		HB4340 Enrolled		LRB104 17556 JRC 30984 b
1    AN ACT concerning civil law.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. This Act may be referred to as the Community
5Partner Fair Contracting Act.
6    Section 5. The State Prompt Payment Act is amended by
7changing Sections 3-2, 3-6, and 7 as follows:
8    (30 ILCS 540/3-2)
9    Sec. 3-2. In [Beginning July 1, 1993, in] any instance where
10a State official or agency is late in payment of a vendor's
11bill or invoice for goods or services furnished to the State,
12as defined in Section 1, properly approved in accordance with
13rules promulgated under Section 3-3, the State official or
14agency shall pay interest to the vendor in accordance with the
15following:
16        (1) (Blank). [Any bill, except a bill submitted under ]
17    [Article V of the Illinois Public Aid Code and except as ]
18    [provided under paragraph (1.05) of this Section, approved ]
19    [for payment under this Section must be paid or the payment ]
20    [issued to the payee within 60 days of receipt of a proper ]
21    [bill or invoice. If payment is not issued to the payee ]
22    [within this 60-day period, an interest penalty of 1.0% of ]
		HB4340 Enrolled	- 2 -	LRB104 17556 JRC 30984 b
1    [any amount approved and unpaid shall be added for each ]
2    [month or fraction thereof after the end of this 60-day ]
3    [period, until final payment is made. Any bill, except a ]
4    [bill for pharmacy or nursing facility services or goods, ]
5    [and except as provided under paragraph (1.05) of this ]
6    [Section, submitted under Article V of the Illinois Public ]
7    [Aid Code approved for payment under this Section must be ]
8    [paid or the payment issued to the payee within 60 days ]
9    [after receipt of a proper bill or invoice, and, if payment ]
10    [is not issued to the payee within this 60-day period, an ]
11    [interest penalty of 2.0% of any amount approved and unpaid ]
12    [shall be added for each month or fraction thereof after ]
13    [the end of this 60-day period, until final payment is ]
14    [made. Any bill for pharmacy or nursing facility services ]
15    [or goods submitted under Article V of the Illinois Public ]
16    [Aid Code, except as provided under paragraph (1.05) of ]
17    [this Section, and approved for payment under this Section ]
18    [must be paid or the payment issued to the payee within 60 ]
19    [days of receipt of a proper bill or invoice. If payment is ]
20    [not issued to the payee within this 60-day period, an ]
21    [interest penalty of 1.0% of any amount approved and unpaid ]
22    [shall be added for each month or fraction thereof after ]
23    [the end of this 60-day period, until final payment is ]
24    [made.]
25        (1.05) For State fiscal year 2012 and future fiscal
26    years, any bill approved for payment under this Section
		HB4340 Enrolled	- 3 -	LRB104 17556 JRC 30984 b
1    must be paid or the payment issued to the payee within 90
2    days of receipt of a proper bill or invoice. If payment is
3    not issued to the payee within this 90-day period, an
4    interest penalty of 1.0% of any amount approved and unpaid
5    shall be added for each month, or 0.033% (one-thirtieth of
6    one percent) of any amount approved and unpaid for each
7    day, after the end of this 90-day period, until final
8    payment is made.
9        (1.1) A State agency shall review [in a timely manner]
10    each bill or invoice within 30 calendar days after its
11    receipt. If the State agency determines that the bill or
12    invoice contains a defect making it unable to process the
13    payment request, the agency shall notify the vendor
14    requesting payment [as soon as possible after discovering ]
15    [the defect pursuant to rules promulgated under Section ]
16    [3-3; provided, however, that the notice for construction ]
17    [related bills or invoices must be given] not later than 30
18    days after the bill or invoice was first submitted. The
19    notice shall identify the defect and any additional
20    information necessary to correct the defect. If one or
21    more items on a construction related bill or invoice are
22    disapproved, but not the entire bill or invoice, then the
23    portion that is not disapproved shall be paid in 
24    accordance with the requirements of this Act.
25        (2) Where a State official or agency is late in
26    payment of a vendor's bill or invoice properly approved in
		HB4340 Enrolled	- 4 -	LRB104 17556 JRC 30984 b
1    accordance with this Act, and different late payment terms
2    are not reduced to writing as a contractual agreement, the
3    State official or agency shall automatically pay interest
4    penalties required by this Section amounting to $50 or
5    more to the appropriate vendor. Each agency shall be
6    responsible for determining whether an interest penalty is
7    owed and for paying the interest to the vendor. Except as
8    provided in paragraph (4), an individual interest payment
9    amounting to $5 or less shall not be paid by the State.
10    Interest due to a vendor that amounts to greater than $5
11    and less than $50 shall not be paid but shall be accrued
12    until all interest due the vendor for all similar warrants
13    exceeds $50, at which time the accrued interest shall be
14    payable and interest will begin accruing again, except
15    that interest accrued as of the end of the fiscal year that
16    does not exceed $50 shall be payable at that time. In the
17    event an individual has paid a vendor for services in
18    advance, the provisions of this Section shall apply until
19    payment is made to that individual.
20        (3) The provisions of Public Act 96-1501 reducing the
21    interest rate on pharmacy claims under Article V of the
22    Illinois Public Aid Code to 1.0% per month shall apply to
23    any pharmacy bills for services and goods under Article V
24    of the Illinois Public Aid Code received on or after the
25    date 60 days before January 25, 2011 (the effective date
26    of Public Act 96-1501) except as provided under paragraph
		HB4340 Enrolled	- 5 -	LRB104 17556 JRC 30984 b
1    (1.05) of this Section.
2        (4) Interest amounting to less than $5 shall not be
3    paid by the State, except for claims (i) to the Department
4    of Healthcare and Family Services or the Department of
5    Human Services, (ii) pursuant to Article V of the Illinois
6    Public Aid Code, the Covering ALL KIDS Health Insurance
7    Act, or the Children's Health Insurance Program Act, and
8    (iii) made (A) by pharmacies for prescriptive services or
9    (B) by any federally qualified health center for
10    prescriptive services or any other services.
11    Notwithstanding any provision to the contrary, interest
12may not be paid under this Act when: (1) a Chief Procurement
13Officer has voided the underlying contract for goods or
14services under Article 50 of the Illinois Procurement Code; or
15(2) the Auditor General is conducting a performance or program
16audit and the Comptroller has held or is holding for review a
17related contract or vouchers for payment of goods or services
18in the exercise of duties under Section 9 of the State
19Comptroller Act. In such event, interest shall not accrue
20during the pendency of the Auditor General's review.
21(Source: P.A. 100-1064, eff. 8-24-18.)
22    (30 ILCS 540/3-6)
23    Sec. 3-6. Federal funds; lack of authority. If an agency
24incurs an interest liability under this Act that cannot be
25charged to the same expenditure authority account to which the
		HB4340 Enrolled	- 6 -	LRB104 17556 JRC 30984 b
1related goods or services were charged due to federal
2prohibitions, the agency is authorized to pay the interest
3from its available appropriations from the General Revenue
4Fund or from any other fund in the State treasury that is not 
5otherwise prohibited from being used to pay interest, except
6that the Department of Transportation is authorized to pay the
7interest from its available appropriations from the Road Fund,
8as long as the original goods or services were for purposes
9consistent with Section 11 of Article IX of the Illinois
10Constitution.
11(Source: P.A. 103-588, eff. 6-5-24.)
12    (30 ILCS 540/7)  (from Ch. 127, par. 132.407)
13    Sec. 7. Payments to subcontractors and material suppliers.
14    (a) When a State official or agency responsible for
15administering a contract receives a proper bill or invoice 
16from a contractor, that State official or agency shall 
17transmit any approved amount to the Comptroller within 30 
18calendar days of receipt.
19    (a-1) When a State official or agency responsible for 
20administering a contract submits a voucher to the Comptroller
21for payment to a contractor, that State official or agency
22shall promptly make available electronically the voucher
23number, the date of the voucher, and the amount of the voucher.
24The State official or agency responsible for administering the
25contract shall provide subcontractors and material suppliers,
		HB4340 Enrolled	- 7 -	LRB104 17556 JRC 30984 b
1known to the State official or agency, with instructions on
2how to access the electronic information on the Comptroller's 
3website.
4    (a-5) When a contractor receives any payment, the
5contractor shall pay each subcontractor and material supplier
6electronically within 10 business days or 15 calendar days,
7whichever occurs earlier, or, if paid by a printed check, the
8printed check must be postmarked within 10 business days or 15
9calendar days, whichever occurs earlier, after receiving
10payment in proportion to the work completed by each
11subcontractor and material supplier according to its
12application or pay estimate, plus interest received under this
13Act. When a contractor receives any payment, the contractor
14shall pay each lower-tiered subcontractor and material
15supplier and each subcontractor and material supplier shall
16make payment to its own respective subcontractors and material
17suppliers. If the contractor receives less than the full
18payment due under the public construction contract, the
19contractor shall be obligated to disburse on a pro rata basis
20those funds received, plus interest received under this Act,
21with the contractor, subcontractors and material suppliers
22each receiving a prorated portion based on the amount of
23payment each has earned. When, however, the State official or
24agency does not release the full payment due under the
25contract because there are specific areas of work or materials
26the State agency or official has determined are not suitable
		HB4340 Enrolled	- 8 -	LRB104 17556 JRC 30984 b
1for payment, then those specific subcontractors or material
2suppliers involved shall not be paid for that portion of work
3rejected or deemed not suitable for payment and all other
4subcontractors and suppliers shall be paid based upon the
5amount of payment each has earned, plus interest received
6under this Act.
7    (a-10) For construction contracts with the Department of
8Transportation, the contractor, subcontractor, or material
9supplier, regardless of tier, shall not offset, decrease, or
10diminish payment or payments that are due to its
11subcontractors or material suppliers without reasonable cause.
12    A contractor, who refuses to make prompt payment within 10
13business days or 15 calendar days, whichever occurs earlier,
14after receiving payment, in whole or in part, shall provide to
15the subcontractor or material supplier and the public owner or
16its agent, a written notice of that refusal. The written
17notice shall be made by a contractor no later than 5 calendar
18days after payment is received by the contractor. The written
19notice shall identify the Department of Transportation's
20contract, any subcontract or material purchase agreement, a
21detailed reason for refusal, the value of the payment to be
22withheld, and the specific remedial actions required of the
23subcontractor or material supplier so that payment may be
24made. Written notice of refusal may be given in a form and
25method which is acceptable to the parties and public owner.
26    (b) If the contractor, without reasonable cause, fails to
		HB4340 Enrolled	- 9 -	LRB104 17556 JRC 30984 b
1make full payment of amounts due under subsection (a) to its
2subcontractors and material suppliers within 10 business days
3or 15 calendar days, whichever occurs earlier, after receipt
4of payment from the State official or agency, the contractor
5shall pay to its subcontractors and material suppliers, in
6addition to the payment due them, interest in the amount of 2%
7per month, calculated from the expiration of the
810-business-day period or the 15-calendar-day period until
9fully paid. This subsection shall further apply to any
10payments made by subcontractors and material suppliers to
11their subcontractors and material suppliers and to all
12payments made to lower tier subcontractors and material
13suppliers throughout the contracting chain.
14        (1) If a contractor, without reasonable cause, fails
15    to make payment in full as provided in subsection (a-5)
16    within 10 business days or 15 calendar days, whichever
17    occurs earlier, after receipt of payment under the public
18    construction contract, any subcontractor or material
19    supplier to whom payments are owed may file a written
20    notice and request for administrative hearing with the
21    State official or agency setting forth the amount owed by
22    the contractor and the contractor's failure to timely pay
23    the amount owed. The written notice and request for
24    administrative hearing shall identify the public
25    construction contract, the contractor, and the amount
26    owed, and shall contain a sworn statement or attestation
		HB4340 Enrolled	- 10 -	LRB104 17556 JRC 30984 b
1    to verify the accuracy of the notice. The notice and
2    request for administrative hearing shall be filed with the
3    State official for the public construction contract, with
4    a copy of the notice concurrently provided to the
5    contractor. Notice to the State official may be made by
6    certified or registered mail, messenger service, or
7    personal service, and must include proof of delivery to
8    the State official.
9        (2) The State official or agency, within 15 calendar
10    days after receipt of a subcontractor's or material
11    supplier's written notice and request for administrative
12    hearing, shall hold a hearing convened by an
13    administrative law judge to determine whether the
14    contractor withheld payment, without reasonable cause,
15    from the subcontractors or material suppliers and what
16    amount, if any, is due to the subcontractors or material
17    suppliers, and the reasonable cause or causes asserted by
18    the contractor. The State official or agency shall provide
19    appropriate notice to the parties of the date, time, and
20    location of the hearing. Each contractor, subcontractor,
21    or material supplier has the right to be represented by
22    counsel at a hearing and to cross-examine witnesses and
23    challenge documents. Upon the request of the subcontractor
24    or material supplier and a showing of good cause,
25    reasonable continuances may be granted by the
26    administrative law judge.
		HB4340 Enrolled	- 11 -	LRB104 17556 JRC 30984 b
1        (3) Upon a finding by the administrative law judge
2    that the contractor failed to make payment in full,
3    without reasonable cause, as provided in subsection
4    (a-10), then the administrative law judge shall, in
5    writing, order the contractor to pay the amount owed to
6    the subcontractors or material suppliers plus interest
7    within 15 calendar days after the order.
8        (4) If a contractor fails to make full payment as
9    ordered under paragraph (3) of this subsection (b) within
10    15 days after the administrative law judge's order, then
11    the contractor shall be barred from entering into a State
12    public construction contract for a period of one year
13    beginning on the date of the administrative law judge's
14    order.
15        (5) If, on 2 or more occasions within a
16    3-calendar-year period, there is a finding by an
17    administrative law judge that the contractor failed to
18    make payment in full, without reasonable cause, and a
19    written order was issued to a contractor under paragraph
20    (3) of this subsection (b), then the contractor shall be
21    barred from entering into a State public construction
22    contract for a period of 6 months beginning on the date of
23    the administrative law judge's second written order, even
24    if the payments required under the orders were made in
25    full.
26        (6) If a contractor fails to make full payment as
		HB4340 Enrolled	- 12 -	LRB104 17556 JRC 30984 b
1    ordered under paragraph (4) of this subsection (b), the
2    subcontractor or material supplier may, within 30 days of
3    the date of that order, petition the State agency for an
4    order for reasonable attorney's fees and costs incurred in
5    the prosecution of the action under this subsection (b).
6    Upon that petition and taking of additional evidence, as
7    may be required, the administrative law judge may issue a
8    supplemental order directing the contractor to pay those
9    reasonable attorney's fees and costs.
10        (7) The written order of the administrative law judge
11    shall be final and appealable under the Administrative
12    Review Law.
13    (b-5) On or before July 2021, the Department of
14Transportation shall publish on its website a searchable
15database that allows for queries for each active construction
16contract by the name of a subcontractor or the pay item such
17that each pay item is associated with either the prime
18contractor or a subcontractor.
19    (c) This Section shall not be construed to in any manner
20diminish, negate, or interfere with the
21contractor-subcontractor or contractor-material supplier
22relationship or commercially useful function.
23    (d) This Section shall not preclude, bar, or stay the
24rights, remedies, and defenses available to the parties by way
25of the operation of their contract, purchase agreement, the
26Mechanics Lien Act, or the Public Construction Bond Act.
		HB4340 Enrolled	- 13 -	LRB104 17556 JRC 30984 b
1    (e) State officials and agencies may adopt rules as may be
2deemed necessary in order to establish the formal procedures
3required under this Section.
4    (f) As used in this Section:
5    "Payment" means the discharge of an obligation in money or
6other valuable consideration or thing delivered in full or
7partial satisfaction of an obligation to pay. "Payment" shall
8include interest paid pursuant to this Act.
9    "Reasonable cause" may include, but is not limited to,
10unsatisfactory workmanship or materials; failure to provide
11documentation required by the contract, subcontract, or
12material purchase agreement; claims made against the
13Department of Transportation or the subcontractor pursuant to
14subsection (c) of Section 23 of the Mechanics Lien Act or the
15Public Construction Bond Act; judgments, levies, garnishments,
16or other court-ordered assessments or offsets in favor of the
17Department of Transportation or other State agency entered
18against a subcontractor or material supplier. "Reasonable
19cause" does not include payments issued to the contractor that
20create a negative or reduced valuation pay application or pay
21estimate due to a reduction of contract quantities or work not
22performed or provided by the subcontractor or material
23supplier; the interception or withholding of funds for reasons
24not related to the subcontractor's or material supplier's work
25on the contract; anticipated claims or assessments of third
26parties not a party related to the contract or subcontract;
		HB4340 Enrolled	- 14 -	LRB104 17556 JRC 30984 b
1asserted claims or assessments of third parties that are not
2authorized by court order, administrative tribunal, or
3statute. "Reasonable cause" further does not include the
4withholding, offset, or reduction of payment, in whole or in
5part, due to the assessment of liquidated damages or penalties
6assessed by the Department of Transportation against the
7contractor, unless the subcontractor's performance or supplied
8materials were the sole and proximate cause of the liquidated
9damage or penalty.
10(Source: P.A. 100-43, eff. 8-9-17; 100-376, eff. 1-1-18;
11100-863, eff. 8-14-18; 101-524, eff. 1-1-20.)
12    Section 10. The Grant Accountability and Transparency Act
13is amended by changing Section 50 as follows:
14    (30 ILCS 708/50)
15    Sec. 50. State grant-making agency responsibilities.
16    (a) The specific requirements and responsibilities of
17State grant-making agencies and non-federal entities are set
18forth in this Act. State agencies making State awards to
19non-federal entities must adopt by rule the language in 2 CFR
20Part 200, Subpart C through Subpart F unless different
21provisions are required by law.
22    (b) Each State grant-making agency shall appoint a Chief
23Accountability Officer who shall serve as a liaison to the
24Grant Accountability and Transparency Unit and who shall be
		HB4340 Enrolled	- 15 -	LRB104 17556 JRC 30984 b
1responsible for the State agency's implementation of and
2compliance with the rules.
3    (c) In order to effectively measure the performance of its
4recipients and subrecipients, each State grant-making agency
5shall:
6        (1) require its recipients and subrecipients to relate
7    financial data to performance accomplishments of the award
8    and, when applicable, must require recipients and
9    subrecipients to provide cost information to demonstrate
10    cost-effective practices. The recipient's and
11    subrecipient's performance should be measured in a way
12    that will help the State agency to improve program
13    outcomes, share lessons learned, and spread the adoption
14    of promising practices; and
15        (2) provide recipients and subrecipients with clear
16    performance goals, indicators, and milestones and must
17    establish performance reporting frequency and content to
18    not only allow the State agency to understand the
19    recipient's progress, but also to facilitate
20    identification of promising practices among recipients and
21    subrecipients and build the evidence upon which the State
22    agency's program and performance decisions are made. The
23    frequency of reports on performance goals, indicators, and
24    milestones required under this Section shall not be more
25    frequent than quarterly. Nothing in this Section is
26    intended to prohibit more frequent reporting to assess
		HB4340 Enrolled	- 16 -	LRB104 17556 JRC 30984 b
1    items such as service needs, gaps, or capacity, as
2    indicated by a corrective action plan or by a risk
3    assessment.
4        (3) Each State grant-making agency shall, when it is
5    in the best interests of the State, request that the
6    Office of the Comptroller issue a stop payment order in
7    accordance with Section 105 of this Act.
8        (4) Upon notification by the Grant Accountability and 
9    Transparency [Transparency and Accountability] Unit that a
10    stop payment order has been requested by a State
11    grant-making agency, each State grant-making agency who
12    has issued a grant to that recipient or subrecipient shall
13    determine if it remains in the best interests of the State
14    to continue to issue payments to the recipient or
15    subrecipient.
16    (c-5) Each State grant-making agency shall specify in each 
17grant agreement whether the applicable payment methodology is 
18advance payment, reimbursement, or working capital advance. If 
19advance payment is not the applicable payment methodology, the 
20grant agreement shall specify why an alternative payment 
21methodology applies.
22    (d) The Governor's Office of Management and Budget shall
23provide such advice and technical assistance to the State
24grant-making agencies as is necessary or indicated in order to
25ensure compliance with this Act. The advice and technical 
26assistance provided to State grant-making agencies by the 
		HB4340 Enrolled	- 17 -	LRB104 17556 JRC 30984 b
1Governor's Office of Management and Budget shall include an 
2explanation of how to determine if the awardee is eligible for 
3advance payments, reimbursement, or working capital advances.
4    (d-5) Grant agreements issued by State grant-making 
5agencies regarding awards to qualified grantees pursuant to a 
6Notice of Funding Opportunity are subject to the following 
7provisions:
8        (1) Except as provided in item (3), if the State 
9    grant-making agency has determined that the grantee has 
10    submitted all of the documentation required for the State 
11    grant-making agency to issue the Notice of State-Issued 
12    Award to the grantee, the State grant-making agency shall 
13    issue the grant agreement within 60 calendar days after 
14    the beginning of the applicable fiscal year or within 60 
15    calendar days after issuing the Notice of State-Issued 
16    Award, whichever is later.
17        (2) Except as provided in item (3), if the State 
18    grant-making agency determines that the grantee has not 
19    submitted all of the documentation required to issue a 
20    grant agreement or if the submitted documentation has 
21    defects, the State grant-making agency shall notify the 
22    grantee of the missing or defective documentation as soon 
23    as practical. The State grant-making agency shall issue 
24    the grant agreement within 60 calendar days after the 
25    beginning of the applicable fiscal year or within 60 
26    calendar days after determining that all documentation has 
		HB4340 Enrolled	- 18 -	LRB104 17556 JRC 30984 b
1    been received and there are no remaining defects, 
2    whichever is later.
3        (3) The 60-day deadlines established in items (1) and 
4    (2) may be tolled by the State grant-making agency if the 
5    State grant-making agency and the grantee must negotiate 
6    any of the required contents of the Uniform Grant 
7    Agreement, as established by this Act or in administrative 
8    rule adopted pursuant to this Act, including, but not 
9    limited to:
10            (A) the project description;
11            (B) the period of performance;
12            (C) the amount of the grant;
13            (D) the estimated budget;
14            (E) the indirect cost rate;
15            (F) general terms and conditions;
16            (G) agency-specific, program-specific, or 
17        grant-specific terms;
18            (H) grant performance goals;
19            (I) reporting requirements; or
20            (J) any other factors identified in administrative 
21        rules adopted pursuant to this Act.
22    Nothing in this subsection applies to grants that are 
23solely for the purpose of capital projects or to grants that 
24the grantee declines to accept.
25    (e) In accordance with this Act and the Illinois State
26Collection Act of 1986, refunds required under the Grant Funds
		HB4340 Enrolled	- 19 -	LRB104 17556 JRC 30984 b
1Recovery Act may be referred to the Comptroller's offset
2system.
3(Source: P.A. 103-1068, eff. 3-21-25.)
4    Section 15. The Court of Claims Act is amended by changing
5Sections 9, 11, 18, 19, and 24 and by adding Section 8.2 as
6follows:
7    (705 ILCS 505/8.2 new)
8    Sec. 8.2. Contractual claims.
9    (a) A State agency must confirm, reject, or identify a 
10defect within a claim arising under subsection (b) of Section 
118 of this Act that is from a lapsed appropriation and valued at 
12less than $2,500 within 60 calendar days after being notified 
13in writing of the claim by the Attorney General. If the State 
14agency confirms the claim, then the court must enter an award 
15for the claim within 30 calendar days of being notified.
16    (b) If the State agency determines that it is unable to 
17process a claim under this Section because the bill or invoice 
18contains a defect, the State agency must notify the vendor and 
19the Attorney General in writing of the defect no later than 60 
20calendar days after receiving notice of the claim from the 
21Attorney General's office pursuant to subsection (a). The 
22notice must identify the defect and any additional information 
23necessary to correct the defect, if possible. If one or more 
24items on a bill or invoice are disapproved, but not the entire 
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1bill or invoice, then the portion that is not disapproved must 
2be transmitted to the Court for processing. For disapproved 
3portions of a claim, the Attorney General must allow vendors 
4to submit documentation to the Attorney General's office 
5showing amendments and cured defects.
6    (c) The Court of Claims may adopt rules to implement this 
7Section.
8    (705 ILCS 505/9)  (from Ch. 37, par. 439.9)
9    Sec. 9. Powers and duties. [The court may:]
10    (a) The court shall confirm receipt of a claim to the 
11vendor within 30 calendar days for all claims arising under 
12subsection (b) of Section 8 of this Act.
13    (b) The court may establish [A. Establish] rules for its
14government and for the regulation of practice therein; appoint
15commissioners to assist the court in such manner as it directs
16and discharge them at will; and exercise such powers as are
17necessary to carry into effect the powers granted in this
18Section. Any Commissioner appointed shall be an attorney
19licensed to practice law in the State of Illinois. The rules
20established hereunder shall not be waived, and any extension
21of time authorized by such rules shall only be allowed on
22motion duly filed within the time limitation for which the
23extension is requested.
24    (c) The court may issue [B. Issue] subpoenas through the
25Chief Justice or one of its judges or commissioners to require
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1the attendance of witnesses for the purpose of testifying
2before it, or before any judge of the court, or before any
3notary public, or any of its commissioners, and to require the
4production of any books, records, papers or documents that may
5be material or relevant as evidence in any matter pending
6before it. In case any person refuses to comply with any
7subpoena issued in the name of the chief justice, or one of the
8judges or commissioners, attested by the clerk, with the seal
9of the court attached, and served upon the person named
10therein as a summons in a civil action is served, the circuit
11court of the proper county, on application of the party at
12whose instance the subpoena was issued, shall compel obedience
13by attachment proceedings, as for contempt, as in a case of a
14disobedience of the requirements of a subpoena from such court
15on a refusal to testify therein.
16    [C.] The court may adopt administrative rules to provide for
17remote or electronic filing of a claim or other motion,
18participation in any capacity before the court, taking of
19evidence or testimony, conducting any business of the court,
20or payment of any fees to the court.
21(Source: P.A. 104-188, eff. 1-1-26.)
22    (705 ILCS 505/11)  (from Ch. 37, par. 439.11)
23    Sec. 11. Filing claims.
24    (a) Except as otherwise provided in subsection (b) of this
25Section and subsection (4) of Section 24, the claimant shall
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1in all cases set forth fully in his or her petition the claim,
2the action thereon, if any, on behalf of the State, what
3persons are owners or trustees as defined under Section 3 of 
4the Charitable Trust Act thereof or interested therein, when
5and upon what consideration such persons became so interested;
6that no assignment or transfer of the claim or any part thereof
7or interest therein has been made, except as stated in the
8petition; that the claimant is justly entitled to the amount
9therein claimed from the State of Illinois, after allowing all
10just credits; and that claimant believes the facts stated in
11the petition to be true. The petition shall be verified, as to
12statements of facts, by the affidavit of the claimant, his
13agent, or attorney.
14    (b) Whenever a person has served a term of imprisonment
15and has received a pardon by the Governor stating that such
16pardon was issued on the ground of innocence of the crime for
17which he or she was imprisoned, the Prisoner Review Board
18shall transmit this information to the clerk of the Court of
19Claims, together with the claimant's current address. Whenever
20a person has served a term of imprisonment and has received a
21certificate of innocence from the Circuit Court as provided in
22Section 2-702 of the Code of Civil Procedure, the clerk of the
23issuing Circuit Court shall transmit this information to the
24clerk of the Court of Claims, together with the claimant's
25current address. The clerk of the Court of Claims shall
26immediately docket the case for consideration by the Court of
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1Claims, and shall provide notice to the claimant of such
2docketing together with all hearing dates and applicable
3deadlines. The Court of Claims shall hear the case and render a
4decision within 90 days after its docketing.
5(Source: P.A. 95-970, eff. 9-22-08; 96-328, eff. 8-11-09.)
6    (705 ILCS 505/18)  (from Ch. 37, par. 439.18)
7    Sec. 18. The court shall provide, by rule, for the
8maintenance of separate records of claims which arise solely
9due to lapsed appropriations and for claims for which amount
10of recovery sought is less than $50,000. In all other cases,
11the court or Commissioner as the case may be, shall file with
12its clerk a written opinion in each case upon final
13disposition thereof. All opinions shall be compiled and
14published annually by the clerk of the court.
15    Beginning December 31, 2027, and every December 31st 
16thereafter, the Court shall produce an annual report to the 
17General Assembly on claims arising from lapsed appropriations. 
18The report shall include data on the number of claims 
19submitted each year, the number of claims resolved, the number 
20and dollar amount of claims paid and pending, the State 
21agencies associated with the lapsed claims, the average length 
22of time from claim submission to resolution for each State 
23agency, and the number and age of unresolved claims that are 
24older than 12 months, by State agency.
25(Source: P.A. 100-1124, eff. 11-27-18.)
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1    (705 ILCS 505/19)  (from Ch. 37, par. 439.19)
2    Sec. 19. The Attorney General, or his or her assistants
3under his or her direction, shall appear for the defense and
4protection of the interests of the State of Illinois in all
5cases filed in the court, and may make claim for recoupment by
6the State. Except as provided in Section 8.2, for all claims 
7arising under subsection (b) of Section 8 of this Act that are 
8from lapsed appropriations and are equal to or greater than 
9$2,500:
10        (1) the State agency must confirm, reject, or identify 
11    a defect within the claim in writing with the Attorney 
12    General's office within 90 calendar days of being 
13    contacted by the Attorney General; and
14        (2) the Attorney General must file a stipulation or 
15    motion with the Court within 90 calendar days of the State 
16    agency confirming or rejecting the claim.
17(Source: Laws 1945, p. 660.)
18    (705 ILCS 505/24)  (from Ch. 37, par. 439.24)
19    Sec. 24. Payment of awards.
20    (1) From funds appropriated by the General Assembly for
21the purposes of this Section the Court may direct immediate
22payment of:
23        (a) All claims arising solely as a result of the
24    lapsing of an appropriation out of which the obligation
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1    could have been paid.
2        (b) All claims pursuant to the Line of Duty
3    Compensation Act.
4        (c) All claims pursuant to the "Illinois National
5    Guardsman's and Naval Militiaman's Compensation Act",
6    approved August 12, 1971, as amended.
7        (d) All claims pursuant to the "Crime Victims
8    Compensation Act", approved August 23, 1973, as amended.
9        (d-5) All claims against the State for unjust
10    imprisonment as provided in subsection (c) of Section 8 of
11    this Act.
12        (e) All other claims wherein the amount of the award
13    of the Court is less than $50,000.
14    (2) The court may, from funds specifically appropriated
15from the General Revenue Fund for this purpose, direct the
16payment of awards less than $100,000 [$50,000] solely as a
17result of the lapsing of an appropriation originally made from
18any fund held by the State Treasurer. For any such award paid
19from the General Revenue Fund, the court shall thereafter seek
20an appropriation from the fund from which the liability
21originally accrued in reimbursement of the General Revenue
22Fund.
23    (3) In directing payment of a claim pursuant to the Line of
24Duty Compensation Act, the Court must direct the Comptroller
25to add an interest penalty if payment of a claim is not made
26within 6 months after a claim is filed in accordance with
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1Section 3 of the Line of Duty Compensation Act and all
2information has been submitted as required under Section 4 of
3the Line of Duty Compensation Act. If payment is not issued
4within the 6-month period, an interest penalty of 1% of the
5amount of the award shall be added for each month or fraction
6thereof after the end of the 6-month period, until final
7payment is made. This interest penalty shall be added
8regardless of whether the payment is not issued within the
96-month period because of the appropriation process, the
10consideration of the matter by the Court, or any other reason.
11    (3.5) The interest penalty payment provided for in
12subsection (3) shall be added to all claims for which benefits
13were not paid as of the effective date of P.A. 95-928. The
14interest penalty shall be calculated starting from the
15effective date of P.A. 95-928, provided that the effective
16date of P.A. 95-928 is at least 6 months after the date on
17which the claim was filed in accordance with Section 3 of the
18Line of Duty Compensation Act. In the event that the date 6
19months after the date on which the claim was filed is later
20than the effective date of P.A. 95-928, the Court shall
21calculate the interest payment penalty starting from the date
226 months after the date on which the claim was filed in
23accordance with Section 3 of the Line of Duty Compensation
24Act. This subsection (3.5) of this amendatory Act of the 96th
25General Assembly is declarative of existing law.
26    (3.6) In addition to the interest payments provided for in
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1subsections (3) and (3.5), the Court shall direct the
2Comptroller to add a "catch-up" payment to the claims of
3eligible claimants. For the purposes of this subsection (3.6),
4an "eligible claimant" is a claimant whose claim is not paid in
5the year in which it was filed. For purposes of this subsection
6(3.6), "'catch-up' payment" is defined as the difference
7between the amount paid to claimants whose claims were filed
8in the year in which the eligible claimant's claim is paid and
9the amount paid to claimants whose claims were filed in the
10year in which the eligible claimant filed his or her claim. The
11"catch-up" payment is payable simultaneously with the claim
12award.
13    (4) From funds appropriated by the General Assembly for
14the purposes of paying claims under paragraph (c) of Section
158, the court must direct payment of each claim and the payment
16must be received by the claimant within 60 days after the date
17that the funds are appropriated for that purpose.
18(Source: P.A. 100-1124, eff. 11-27-18.)
19    Section 99. Effective date. This Act takes effect July 1,
202027.