COURT OF CLAIMS-PROCEDURE

Full Bill Text

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, 3 represented in the General Assembly: 4 Section 1. This Act may be referred to as the Community 5 Partner Fair Contracting Act. 6 Section 5. The State Prompt Payment Act is amended by 7 changing 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 10 a State official or agency is late in payment of a vendor's 11 bill or invoice for goods or services furnished to the State, 12 as defined in Section 1, properly approved in accordance with 13 rules promulgated under Section 3-3, the State official or 14 agency shall pay interest to the vendor in accordance with the 15 following: 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 12 may not be paid under this Act when: (1) a Chief Procurement 13 Officer has voided the underlying contract for goods or 14 services under Article 50 of the Illinois Procurement Code; or 15 (2) the Auditor General is conducting a performance or program 16 audit and the Comptroller has held or is holding for review a 17 related contract or vouchers for payment of goods or services 18 in the exercise of duties under Section 9 of the State 19 Comptroller Act. In such event, interest shall not accrue 20 during 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 24 incurs an interest liability under this Act that cannot be 25 charged to the same expenditure authority account to which the HB4340 Enrolled - 6 - LRB104 17556 JRC 30984 b 1 related goods or services were charged due to federal 2 prohibitions, the agency is authorized to pay the interest 3 from its available appropriations from the General Revenue 4 Fund or from any other fund in the State treasury that is not 5 otherwise prohibited from being used to pay interest , except 6 that the Department of Transportation is authorized to pay the 7 interest from its available appropriations from the Road Fund, 8 as long as the original goods or services were for purposes 9 consistent with Section 11 of Article IX of the Illinois 10 Constitution. 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 15 administering a contract receives a proper bill or invoice 16 from a contractor, that State official or agency shall 17 transmit any approved amount to the Comptroller within 30 18 calendar days of receipt. 19 (a-1) When a State official or agency responsible for 20 administering a contract submits a voucher to the Comptroller 21 for payment to a contractor, that State official or agency 22 shall promptly make available electronically the voucher 23 number, the date of the voucher, and the amount of the voucher. 24 The State official or agency responsible for administering the 25 contract shall provide subcontractors and material suppliers, HB4340 Enrolled - 7 - LRB104 17556 JRC 30984 b 1 known to the State official or agency, with instructions on 2 how to access the electronic information on the Comptroller's 3 website . 4 (a-5) When a contractor receives any payment, the 5 contractor shall pay each subcontractor and material supplier 6 electronically within 10 business days or 15 calendar days, 7 whichever occurs earlier, or, if paid by a printed check, the 8 printed check must be postmarked within 10 business days or 15 9 calendar days, whichever occurs earlier, after receiving 10 payment in proportion to the work completed by each 11 subcontractor and material supplier according to its 12 application or pay estimate, plus interest received under this 13 Act. When a contractor receives any payment, the contractor 14 shall pay each lower-tiered subcontractor and material 15 supplier and each subcontractor and material supplier shall 16 make payment to its own respective subcontractors and material 17 suppliers. If the contractor receives less than the full 18 payment due under the public construction contract, the 19 contractor shall be obligated to disburse on a pro rata basis 20 those funds received, plus interest received under this Act, 21 with the contractor, subcontractors and material suppliers 22 each receiving a prorated portion based on the amount of 23 payment each has earned. When, however, the State official or 24 agency does not release the full payment due under the 25 contract because there are specific areas of work or materials 26 the State agency or official has determined are not suitable HB4340 Enrolled - 8 - LRB104 17556 JRC 30984 b 1 for payment, then those specific subcontractors or material 2 suppliers involved shall not be paid for that portion of work 3 rejected or deemed not suitable for payment and all other 4 subcontractors and suppliers shall be paid based upon the 5 amount of payment each has earned, plus interest received 6 under this Act. 7 (a-10) For construction contracts with the Department of 8 Transportation, the contractor, subcontractor, or material 9 supplier, regardless of tier, shall not offset, decrease, or 10 diminish payment or payments that are due to its 11 subcontractors or material suppliers without reasonable cause. 12 A contractor, who refuses to make prompt payment within 10 13 business days or 15 calendar days, whichever occurs earlier, 14 after receiving payment, in whole or in part, shall provide to 15 the subcontractor or material supplier and the public owner or 16 its agent, a written notice of that refusal. The written 17 notice shall be made by a contractor no later than 5 calendar 18 days after payment is received by the contractor. The written 19 notice shall identify the Department of Transportation's 20 contract, any subcontract or material purchase agreement, a 21 detailed reason for refusal, the value of the payment to be 22 withheld, and the specific remedial actions required of the 23 subcontractor or material supplier so that payment may be 24 made. Written notice of refusal may be given in a form and 25 method 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 1 make full payment of amounts due under subsection (a) to its 2 subcontractors and material suppliers within 10 business days 3 or 15 calendar days, whichever occurs earlier, after receipt 4 of payment from the State official or agency, the contractor 5 shall pay to its subcontractors and material suppliers, in 6 addition to the payment due them, interest in the amount of 2% 7 per month, calculated from the expiration of the 8 10-business-day period or the 15-calendar-day period until 9 fully paid. This subsection shall further apply to any 10 payments made by subcontractors and material suppliers to 11 their subcontractors and material suppliers and to all 12 payments made to lower tier subcontractors and material 13 suppliers 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 14 Transportation shall publish on its website a searchable 15 database that allows for queries for each active construction 16 contract by the name of a subcontractor or the pay item such 17 that each pay item is associated with either the prime 18 contractor or a subcontractor. 19 (c) This Section shall not be construed to in any manner 20 diminish, negate, or interfere with the 21 contractor-subcontractor or contractor-material supplier 22 relationship or commercially useful function. 23 (d) This Section shall not preclude, bar, or stay the 24 rights, remedies, and defenses available to the parties by way 25 of the operation of their contract, purchase agreement, the 26 Mechanics 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 2 deemed necessary in order to establish the formal procedures 3 required under this Section. 4 (f) As used in this Section: 5 "Payment" means the discharge of an obligation in money or 6 other valuable consideration or thing delivered in full or 7 partial satisfaction of an obligation to pay. "Payment" shall 8 include interest paid pursuant to this Act. 9 "Reasonable cause" may include, but is not limited to, 10 unsatisfactory workmanship or materials; failure to provide 11 documentation required by the contract, subcontract, or 12 material purchase agreement; claims made against the 13 Department of Transportation or the subcontractor pursuant to 14 subsection (c) of Section 23 of the Mechanics Lien Act or the 15 Public Construction Bond Act; judgments, levies, garnishments, 16 or other court-ordered assessments or offsets in favor of the 17 Department of Transportation or other State agency entered 18 against a subcontractor or material supplier. "Reasonable 19 cause" does not include payments issued to the contractor that 20 create a negative or reduced valuation pay application or pay 21 estimate due to a reduction of contract quantities or work not 22 performed or provided by the subcontractor or material 23 supplier; the interception or withholding of funds for reasons 24 not related to the subcontractor's or material supplier's work 25 on the contract; anticipated claims or assessments of third 26 parties not a party related to the contract or subcontract; HB4340 Enrolled - 14 - LRB104 17556 JRC 30984 b 1 asserted claims or assessments of third parties that are not 2 authorized by court order, administrative tribunal, or 3 statute. "Reasonable cause" further does not include the 4 withholding, offset, or reduction of payment, in whole or in 5 part, due to the assessment of liquidated damages or penalties 6 assessed by the Department of Transportation against the 7 contractor, unless the subcontractor's performance or supplied 8 materials were the sole and proximate cause of the liquidated 9 damage or penalty. 10 (Source: P.A. 100-43, eff. 8-9-17; 100-376, eff. 1-1-18; 11 100-863, eff. 8-14-18; 101-524, eff. 1-1-20 .) 12 Section 10. The Grant Accountability and Transparency Act 13 is 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 17 State grant-making agencies and non-federal entities are set 18 forth in this Act. State agencies making State awards to 19 non-federal entities must adopt by rule the language in 2 CFR 20 Part 200, Subpart C through Subpart F unless different 21 provisions are required by law. 22 (b) Each State grant-making agency shall appoint a Chief 23 Accountability Officer who shall serve as a liaison to the 24 Grant Accountability and Transparency Unit and who shall be HB4340 Enrolled - 15 - LRB104 17556 JRC 30984 b 1 responsible for the State agency's implementation of and 2 compliance with the rules. 3 (c) In order to effectively measure the performance of its 4 recipients and subrecipients, each State grant-making agency 5 shall: 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 17 grant agreement whether the applicable payment methodology is 18 advance payment, reimbursement, or working capital advance. If 19 advance payment is not the applicable payment methodology, the 20 grant agreement shall specify why an alternative payment 21 methodology applies. 22 (d) The Governor's Office of Management and Budget shall 23 provide such advice and technical assistance to the State 24 grant-making agencies as is necessary or indicated in order to 25 ensure compliance with this Act. The advice and technical 26 assistance provided to State grant-making agencies by the HB4340 Enrolled - 17 - LRB104 17556 JRC 30984 b 1 Governor's Office of Management and Budget shall include an 2 explanation of how to determine if the awardee is eligible for 3 advance payments, reimbursement, or working capital advances. 4 (d-5) Grant agreements issued by State grant-making 5 agencies regarding awards to qualified grantees pursuant to a 6 Notice of Funding Opportunity are subject to the following 7 provisions: 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 23 solely for the purpose of capital projects or to grants that 24 the grantee declines to accept. 25 (e) In accordance with this Act and the Illinois State 26 Collection Act of 1986, refunds required under the Grant Funds HB4340 Enrolled - 19 - LRB104 17556 JRC 30984 b 1 Recovery Act may be referred to the Comptroller's offset 2 system. 3 (Source: P.A. 103-1068, eff. 3-21-25.) 4 Section 15. The Court of Claims Act is amended by changing 5 Sections 9, 11, 18, 19, and 24 and by adding Section 8.2 as 6 follows: 7 (705 ILCS 505/8.2 new) 8 Sec. 8.2. Contractual claims. 9 (a) A State agency must confirm, reject, or identify a 10 defect within a claim arising under subsection (b) of Section 11 8 of this Act that is from a lapsed appropriation and valued at 12 less than $2,500 within 60 calendar days after being notified 13 in writing of the claim by the Attorney General. If the State 14 agency confirms the claim, then the court must enter an award 15 for the claim within 30 calendar days of being notified. 16 (b) If the State agency determines that it is unable to 17 process a claim under this Section because the bill or invoice 18 contains a defect, the State agency must notify the vendor and 19 the Attorney General in writing of the defect no later than 60 20 calendar days after receiving notice of the claim from the 21 Attorney General's office pursuant to subsection (a). The 22 notice must identify the defect and any additional information 23 necessary to correct the defect, if possible. If one or more 24 items on a bill or invoice are disapproved, but not the entire HB4340 Enrolled - 20 - LRB104 17556 JRC 30984 b 1 bill or invoice, then the portion that is not disapproved must 2 be transmitted to the Court for processing. For disapproved 3 portions of a claim, the Attorney General must allow vendors 4 to submit documentation to the Attorney General's office 5 showing amendments and cured defects. 6 (c) The Court of Claims may adopt rules to implement this 7 Section. 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 11 vendor within 30 calendar days for all claims arising under 12 subsection (b) of Section 8 of this Act. 13 (b) The court may establish A. Establish rules for its 14 government and for the regulation of practice therein; appoint 15 commissioners to assist the court in such manner as it directs 16 and discharge them at will; and exercise such powers as are 17 necessary to carry into effect the powers granted in this 18 Section. Any Commissioner appointed shall be an attorney 19 licensed to practice law in the State of Illinois. The rules 20 established hereunder shall not be waived, and any extension 21 of time authorized by such rules shall only be allowed on 22 motion duly filed within the time limitation for which the 23 extension is requested. 24 (c) The court may issue B. Issue subpoenas through the 25 Chief Justice or one of its judges or commissioners to require HB4340 Enrolled - 21 - LRB104 17556 JRC 30984 b 1 the attendance of witnesses for the purpose of testifying 2 before it, or before any judge of the court, or before any 3 notary public, or any of its commissioners, and to require the 4 production of any books, records, papers or documents that may 5 be material or relevant as evidence in any matter pending 6 before it. In case any person refuses to comply with any 7 subpoena issued in the name of the chief justice, or one of the 8 judges or commissioners, attested by the clerk, with the seal 9 of the court attached, and served upon the person named 10 therein as a summons in a civil action is served, the circuit 11 court of the proper county, on application of the party at 12 whose instance the subpoena was issued, shall compel obedience 13 by attachment proceedings, as for contempt, as in a case of a 14 disobedience of the requirements of a subpoena from such court 15 on a refusal to testify therein. 16 C. The court may adopt administrative rules to provide for 17 remote or electronic filing of a claim or other motion, 18 participation in any capacity before the court, taking of 19 evidence or testimony, conducting any business of the court, 20 or 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 25 Section and subsection (4) of Section 24, the claimant shall HB4340 Enrolled - 22 - LRB104 17556 JRC 30984 b 1 in all cases set forth fully in his or her petition the claim, 2 the action thereon, if any, on behalf of the State, what 3 persons are owners or trustees as defined under Section 3 of 4 the Charitable Trust Act thereof or interested therein, when 5 and upon what consideration such persons became so interested; 6 that no assignment or transfer of the claim or any part thereof 7 or interest therein has been made, except as stated in the 8 petition; that the claimant is justly entitled to the amount 9 therein claimed from the State of Illinois, after allowing all 10 just credits; and that claimant believes the facts stated in 11 the petition to be true. The petition shall be verified, as to 12 statements of facts, by the affidavit of the claimant, his 13 agent, or attorney. 14 (b) Whenever a person has served a term of imprisonment 15 and has received a pardon by the Governor stating that such 16 pardon was issued on the ground of innocence of the crime for 17 which he or she was imprisoned, the Prisoner Review Board 18 shall transmit this information to the clerk of the Court of 19 Claims, together with the claimant's current address. Whenever 20 a person has served a term of imprisonment and has received a 21 certificate of innocence from the Circuit Court as provided in 22 Section 2-702 of the Code of Civil Procedure, the clerk of the 23 issuing Circuit Court shall transmit this information to the 24 clerk of the Court of Claims, together with the claimant's 25 current address. The clerk of the Court of Claims shall 26 immediately docket the case for consideration by the Court of HB4340 Enrolled - 23 - LRB104 17556 JRC 30984 b 1 Claims, and shall provide notice to the claimant of such 2 docketing together with all hearing dates and applicable 3 deadlines. The Court of Claims shall hear the case and render a 4 decision 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 8 maintenance of separate records of claims which arise solely 9 due to lapsed appropriations and for claims for which amount 10 of recovery sought is less than $50,000. In all other cases, 11 the court or Commissioner as the case may be, shall file with 12 its clerk a written opinion in each case upon final 13 disposition thereof. All opinions shall be compiled and 14 published annually by the clerk of the court. 15 Beginning December 31, 2027, and every December 31st 16 thereafter, the Court shall produce an annual report to the 17 General Assembly on claims arising from lapsed appropriations. 18 The report shall include data on the number of claims 19 submitted each year, the number of claims resolved, the number 20 and dollar amount of claims paid and pending, the State 21 agencies associated with the lapsed claims, the average length 22 of time from claim submission to resolution for each State 23 agency, and the number and age of unresolved claims that are 24 older than 12 months, by State agency. 25 (Source: P.A. 100-1124, eff. 11-27-18.) HB4340 Enrolled - 24 - LRB104 17556 JRC 30984 b 1 (705 ILCS 505/19) (from Ch. 37, par. 439.19) 2 Sec. 19. The Attorney General, or his or her assistants 3 under his or her direction, shall appear for the defense and 4 protection of the interests of the State of Illinois in all 5 cases filed in the court, and may make claim for recoupment by 6 the State. Except as provided in Section 8.2, for all claims 7 arising under subsection (b) of Section 8 of this Act that are 8 from 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 21 the purposes of this Section the Court may direct immediate 22 payment of: 23 (a) All claims arising solely as a result of the 24 lapsing of an appropriation out of which the obligation HB4340 Enrolled - 25 - LRB104 17556 JRC 30984 b 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 15 from the General Revenue Fund for this purpose, direct the 16 payment of awards less than $100,000 $50,000 solely as a 17 result of the lapsing of an appropriation originally made from 18 any fund held by the State Treasurer. For any such award paid 19 from the General Revenue Fund, the court shall thereafter seek 20 an appropriation from the fund from which the liability 21 originally accrued in reimbursement of the General Revenue 22 Fund. 23 (3) In directing payment of a claim pursuant to the Line of 24 Duty Compensation Act, the Court must direct the Comptroller 25 to add an interest penalty if payment of a claim is not made 26 within 6 months after a claim is filed in accordance with HB4340 Enrolled - 26 - LRB104 17556 JRC 30984 b 1 Section 3 of the Line of Duty Compensation Act and all 2 information has been submitted as required under Section 4 of 3 the Line of Duty Compensation Act. If payment is not issued 4 within the 6-month period, an interest penalty of 1% of the 5 amount of the award shall be added for each month or fraction 6 thereof after the end of the 6-month period, until final 7 payment is made. This interest penalty shall be added 8 regardless of whether the payment is not issued within the 9 6-month period because of the appropriation process, the 10 consideration of the matter by the Court, or any other reason. 11 (3.5) The interest penalty payment provided for in 12 subsection (3) shall be added to all claims for which benefits 13 were not paid as of the effective date of P.A. 95-928. The 14 interest penalty shall be calculated starting from the 15 effective date of P.A. 95-928, provided that the effective 16 date of P.A. 95-928 is at least 6 months after the date on 17 which the claim was filed in accordance with Section 3 of the 18 Line of Duty Compensation Act. In the event that the date 6 19 months after the date on which the claim was filed is later 20 than the effective date of P.A. 95-928, the Court shall 21 calculate the interest payment penalty starting from the date 22 6 months after the date on which the claim was filed in 23 accordance with Section 3 of the Line of Duty Compensation 24 Act. This subsection (3.5) of this amendatory Act of the 96th 25 General Assembly is declarative of existing law. 26 (3.6) In addition to the interest payments provided for in HB4340 Enrolled - 27 - LRB104 17556 JRC 30984 b 1 subsections (3) and (3.5), the Court shall direct the 2 Comptroller to add a "catch-up" payment to the claims of 3 eligible claimants. For the purposes of this subsection (3.6), 4 an "eligible claimant" is a claimant whose claim is not paid in 5 the year in which it was filed. For purposes of this subsection 6 (3.6), "'catch-up' payment" is defined as the difference 7 between the amount paid to claimants whose claims were filed 8 in the year in which the eligible claimant's claim is paid and 9 the amount paid to claimants whose claims were filed in the 10 year in which the eligible claimant filed his or her claim. The 11 "catch-up" payment is payable simultaneously with the claim 12 award. 13 (4) From funds appropriated by the General Assembly for 14 the purposes of paying claims under paragraph (c) of Section 15 8, the court must direct payment of each claim and the payment 16 must be received by the claimant within 60 days after the date 17 that 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, 20 2027.