Bill Amendment: IL HB0579 | 2023-2024 | 103rd General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: REGULATION-TECH

Status: 2023-06-27 - Public Act . . . . . . . . . 103-0103 [HB0579 Detail]

Download: Illinois-2023-HB0579-House_Amendment_004.html

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Rep. Robyn Gabel

Filed: 5/4/2023

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AMENDMENT TO HOUSE BILL 579
AMENDMENT NO. ______. Amend House Bill 579 by replacing
everything after the enacting clause with the following:
"Section 5. The Department of Insurance Law is amended by
adding Section 1405-50 as follows:
(20 ILCS 1405/1405-50 new)
Sec. 1405-50. Marketplace Director of the Illinois Health
Benefits Exchange. The Governor shall appoint a person within
the Department of Insurance to serve as the Marketplace
Director of the Illinois Health Benefits Exchange. This person
may be an existing employee with other duties. The Marketplace
Director shall receive an annual salary as set by the Governor
and shall be paid out of the appropriations to the Department.
The Marketplace Director shall not be subject to the Personnel
Code. The Marketplace Director, under the direction of the
Director, shall manage the operations and staff of the

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Illinois Health Benefits Exchange to ensure optimal exchange
performance.
Section 10. The State Finance Act is amended by adding
Section 5.990 as follows:
(30 ILCS 105/5.990 new)
Sec. 5.990. The Illinois Health Benefits Exchange Fund.
Section 15. The Illinois Procurement Code is amended by
changing Section 1-10 as follows:
(30 ILCS 500/1-10)
Sec. 1-10. Application.
(a) This Code applies only to procurements for which
bidders, offerors, potential contractors, or contractors were
first solicited on or after July 1, 1998. This Code shall not
be construed to affect or impair any contract, or any
provision of a contract, entered into based on a solicitation
prior to the implementation date of this Code as described in
Article 99, including, but not limited to, any covenant
entered into with respect to any revenue bonds or similar
instruments. All procurements for which contracts are
solicited between the effective date of Articles 50 and 99 and
July 1, 1998 shall be substantially in accordance with this
Code and its intent.

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(b) This Code shall apply regardless of the source of the
funds with which the contracts are paid, including federal
assistance moneys. This Code shall not apply to:
(1) Contracts between the State and its political
subdivisions or other governments, or between State
governmental bodies, except as specifically provided in
this Code.
(2) Grants, except for the filing requirements of
Section 20-80.
(3) Purchase of care, except as provided in Section
5-30.6 of the Illinois Public Aid Code and this Section.
(4) Hiring of an individual as an employee and not as
an independent contractor, whether pursuant to an
employment code or policy or by contract directly with
that individual.
(5) Collective bargaining contracts.
(6) Purchase of real estate, except that notice of
this type of contract with a value of more than $25,000
must be published in the Procurement Bulletin within 10
calendar days after the deed is recorded in the county of
jurisdiction. The notice shall identify the real estate
purchased, the names of all parties to the contract, the
value of the contract, and the effective date of the
contract.
(7) Contracts necessary to prepare for anticipated
litigation, enforcement actions, or investigations,

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provided that the chief legal counsel to the Governor
shall give his or her prior approval when the procuring
agency is one subject to the jurisdiction of the Governor,
and provided that the chief legal counsel of any other
procuring entity subject to this Code shall give his or
her prior approval when the procuring entity is not one
subject to the jurisdiction of the Governor.
(8) (Blank).
(9) Procurement expenditures by the Illinois
Conservation Foundation when only private funds are used.
(10) (Blank).
(11) Public-private agreements entered into according
to the procurement requirements of Section 20 of the
Public-Private Partnerships for Transportation Act and
design-build agreements entered into according to the
procurement requirements of Section 25 of the
Public-Private Partnerships for Transportation Act.
(12) (A) Contracts for legal, financial, and other
professional and artistic services entered into by the
Illinois Finance Authority in which the State of Illinois
is not obligated. Such contracts shall be awarded through
a competitive process authorized by the members of the
Illinois Finance Authority and are subject to Sections
5-30, 20-160, 50-13, 50-20, 50-35, and 50-37 of this Code,
as well as the final approval by the members of the
Illinois Finance Authority of the terms of the contract.

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(B) Contracts for legal and financial services entered
into by the Illinois Housing Development Authority in
connection with the issuance of bonds in which the State
of Illinois is not obligated. Such contracts shall be
awarded through a competitive process authorized by the
members of the Illinois Housing Development Authority and
are subject to Sections 5-30, 20-160, 50-13, 50-20, 50-35,
and 50-37 of this Code, as well as the final approval by
the members of the Illinois Housing Development Authority
of the terms of the contract.
(13) Contracts for services, commodities, and
equipment to support the delivery of timely forensic
science services in consultation with and subject to the
approval of the Chief Procurement Officer as provided in
subsection (d) of Section 5-4-3a of the Unified Code of
Corrections, except for the requirements of Sections
20-60, 20-65, 20-70, and 20-160 and Article 50 of this
Code; however, the Chief Procurement Officer may, in
writing with justification, waive any certification
required under Article 50 of this Code. For any contracts
for services which are currently provided by members of a
collective bargaining agreement, the applicable terms of
the collective bargaining agreement concerning
subcontracting shall be followed.
On and after January 1, 2019, this paragraph (13),
except for this sentence, is inoperative.

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(14) Contracts for participation expenditures required
by a domestic or international trade show or exhibition of
an exhibitor, member, or sponsor.
(15) Contracts with a railroad or utility that
requires the State to reimburse the railroad or utilities
for the relocation of utilities for construction or other
public purpose. Contracts included within this paragraph
(15) shall include, but not be limited to, those
associated with: relocations, crossings, installations,
and maintenance. For the purposes of this paragraph (15),
"railroad" means any form of non-highway ground
transportation that runs on rails or electromagnetic
guideways and "utility" means: (1) public utilities as
defined in Section 3-105 of the Public Utilities Act, (2)
telecommunications carriers as defined in Section 13-202
of the Public Utilities Act, (3) electric cooperatives as
defined in Section 3.4 of the Electric Supplier Act, (4)
telephone or telecommunications cooperatives as defined in
Section 13-212 of the Public Utilities Act, (5) rural
water or waste water systems with 10,000 connections or
less, (6) a holder as defined in Section 21-201 of the
Public Utilities Act, and (7) municipalities owning or
operating utility systems consisting of public utilities
as that term is defined in Section 11-117-2 of the
Illinois Municipal Code.
(16) Procurement expenditures necessary for the

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Department of Public Health to provide the delivery of
timely newborn screening services in accordance with the
Newborn Metabolic Screening Act.
(17) Procurement expenditures necessary for the
Department of Agriculture, the Department of Financial and
Professional Regulation, the Department of Human Services,
and the Department of Public Health to implement the
Compassionate Use of Medical Cannabis Program and Opioid
Alternative Pilot Program requirements and ensure access
to medical cannabis for patients with debilitating medical
conditions in accordance with the Compassionate Use of
Medical Cannabis Program Act.
(18) This Code does not apply to any procurements
necessary for the Department of Agriculture, the
Department of Financial and Professional Regulation, the
Department of Human Services, the Department of Commerce
and Economic Opportunity, and the Department of Public
Health to implement the Cannabis Regulation and Tax Act if
the applicable agency has made a good faith determination
that it is necessary and appropriate for the expenditure
to fall within this exemption and if the process is
conducted in a manner substantially in accordance with the
requirements of Sections 20-160, 25-60, 30-22, 50-5,
50-10, 50-10.5, 50-12, 50-13, 50-15, 50-20, 50-21, 50-35,
50-36, 50-37, 50-38, and 50-50 of this Code; however, for
Section 50-35, compliance applies only to contracts or

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subcontracts over $100,000. Notice of each contract
entered into under this paragraph (18) that is related to
the procurement of goods and services identified in
paragraph (1) through (9) of this subsection shall be
published in the Procurement Bulletin within 14 calendar
days after contract execution. The Chief Procurement
Officer shall prescribe the form and content of the
notice. Each agency shall provide the Chief Procurement
Officer, on a monthly basis, in the form and content
prescribed by the Chief Procurement Officer, a report of
contracts that are related to the procurement of goods and
services identified in this subsection. At a minimum, this
report shall include the name of the contractor, a
description of the supply or service provided, the total
amount of the contract, the term of the contract, and the
exception to this Code utilized. A copy of any or all of
these contracts shall be made available to the Chief
Procurement Officer immediately upon request. The Chief
Procurement Officer shall submit a report to the Governor
and General Assembly no later than November 1 of each year
that includes, at a minimum, an annual summary of the
monthly information reported to the Chief Procurement
Officer. This exemption becomes inoperative 5 years after
June 25, 2019 (the effective date of Public Act 101-27).
(19) Acquisition of modifications or adjustments,
limited to assistive technology devices and assistive

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technology services, adaptive equipment, repairs, and
replacement parts to provide reasonable accommodations (i)
that enable a qualified applicant with a disability to
complete the job application process and be considered for
the position such qualified applicant desires, (ii) that
modify or adjust the work environment to enable a
qualified current employee with a disability to perform
the essential functions of the position held by that
employee, (iii) to enable a qualified current employee
with a disability to enjoy equal benefits and privileges
of employment as are enjoyed by other similarly situated
employees without disabilities, and (iv) that allow a
customer, client, claimant, or member of the public
seeking State services full use and enjoyment of and
access to its programs, services, or benefits.
For purposes of this paragraph (19):
"Assistive technology devices" means any item, piece
of equipment, or product system, whether acquired
commercially off the shelf, modified, or customized, that
is used to increase, maintain, or improve functional
capabilities of individuals with disabilities.
"Assistive technology services" means any service that
directly assists an individual with a disability in
selection, acquisition, or use of an assistive technology
device.
"Qualified" has the same meaning and use as provided

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under the federal Americans with Disabilities Act when
describing an individual with a disability.
(20) Procurement expenditures necessary for the
Illinois Commerce Commission to hire third-party
facilitators pursuant to Sections 16-105.17 and 16-108.18
of the Public Utilities Act or an ombudsman pursuant to
Section 16-107.5 of the Public Utilities Act, a
facilitator pursuant to Section 16-105.17 of the Public
Utilities Act, or a grid auditor pursuant to Section
16-105.10 of the Public Utilities Act.
(21) Procurement expenditures for the purchase,
renewal, and expansion of software, software licenses, or
software maintenance agreements that support the efforts
of the Illinois State Police to enforce, regulate, and
administer the Firearm Owners Identification Card Act, the
Firearm Concealed Carry Act, the Firearms Restraining
Order Act, the Firearm Dealer License Certification Act,
the Law Enforcement Agencies Data System (LEADS), the
Uniform Crime Reporting Act, the Criminal Identification
Act, the Uniform Conviction Information Act, and the Gun
Trafficking Information Act, or establish or maintain
record management systems necessary to conduct human
trafficking investigations or gun trafficking or other
stolen firearm investigations. This paragraph (21) applies
to contracts entered into on or after the effective date
of this amendatory Act of the 102nd General Assembly and

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the renewal of contracts that are in effect on the
effective date of this amendatory Act of the 102nd General
Assembly.
(22) Procurements necessary for the Department of
Insurance to implement the Illinois Health Benefits
Exchange Law if the Department of Insurance has made a
good faith determination that it is necessary and
appropriate for the expenditure to fall within this
exemption. The procurement process shall be conducted in a
manner substantially in accordance with the requirements
of Sections 20-160 and 25-60 and Article 50 of this Code. A
copy of these contracts shall be made available to the
Chief Procurement Officer immediately upon request. This
paragraph is inoperative 5 years after the effective date
of this amendatory Act of the 103rd General Assembly.
Notwithstanding any other provision of law, for contracts
with an annual value of more than $100,000 entered into on or
after October 1, 2017 under an exemption provided in any
paragraph of this subsection (b), except paragraph (1), (2),
or (5), each State agency shall post to the appropriate
procurement bulletin the name of the contractor, a description
of the supply or service provided, the total amount of the
contract, the term of the contract, and the exception to the
Code utilized. The chief procurement officer shall submit a
report to the Governor and General Assembly no later than
November 1 of each year that shall include, at a minimum, an

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annual summary of the monthly information reported to the
chief procurement officer.
(c) This Code does not apply to the electric power
procurement process provided for under Section 1-75 of the
Illinois Power Agency Act and Section 16-111.5 of the Public
Utilities Act.
(d) Except for Section 20-160 and Article 50 of this Code,
and as expressly required by Section 9.1 of the Illinois
Lottery Law, the provisions of this Code do not apply to the
procurement process provided for under Section 9.1 of the
Illinois Lottery Law.
(e) This Code does not apply to the process used by the
Capital Development Board to retain a person or entity to
assist the Capital Development Board with its duties related
to the determination of costs of a clean coal SNG brownfield
facility, as defined by Section 1-10 of the Illinois Power
Agency Act, as required in subsection (h-3) of Section 9-220
of the Public Utilities Act, including calculating the range
of capital costs, the range of operating and maintenance
costs, or the sequestration costs or monitoring the
construction of clean coal SNG brownfield facility for the
full duration of construction.
(f) (Blank).
(g) (Blank).
(h) This Code does not apply to the process to procure or
contracts entered into in accordance with Sections 11-5.2 and

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11-5.3 of the Illinois Public Aid Code.
(i) Each chief procurement officer may access records
necessary to review whether a contract, purchase, or other
expenditure is or is not subject to the provisions of this
Code, unless such records would be subject to attorney-client
privilege.
(j) This Code does not apply to the process used by the
Capital Development Board to retain an artist or work or works
of art as required in Section 14 of the Capital Development
Board Act.
(k) This Code does not apply to the process to procure
contracts, or contracts entered into, by the State Board of
Elections or the State Electoral Board for hearing officers
appointed pursuant to the Election Code.
(l) This Code does not apply to the processes used by the
Illinois Student Assistance Commission to procure supplies and
services paid for from the private funds of the Illinois
Prepaid Tuition Fund. As used in this subsection (l), "private
funds" means funds derived from deposits paid into the
Illinois Prepaid Tuition Trust Fund and the earnings thereon.
(m) This Code shall apply regardless of the source of
funds with which contracts are paid, including federal
assistance moneys. Except as specifically provided in this
Code, this Code shall not apply to procurement expenditures
necessary for the Department of Public Health to conduct the
Healthy Illinois Survey in accordance with Section 2310-431 of

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the Department of Public Health Powers and Duties Law of the
Civil Administrative Code of Illinois.
(Source: P.A. 101-27, eff. 6-25-19; 101-81, eff. 7-12-19;
101-363, eff. 8-9-19; 102-175, eff. 7-29-21; 102-483, eff
1-1-22; 102-558, eff. 8-20-21; 102-600, eff. 8-27-21; 102-662,
eff. 9-15-21; 102-721, eff. 1-1-23; 102-813, eff. 5-13-22;
102-1116, eff. 1-10-23.)
Section 20. The Illinois Health Benefits Exchange Law is
amended by changing Section 5-5 and by adding Sections 5-21,
5-22, 5-23, and 5-24 as follows:
(215 ILCS 122/5-5)
Sec. 5-5. State health benefits exchange. It is declared
that this State, beginning October 1, 2013, in accordance with
Section 1311 of the federal Patient Protection and Affordable
Care Act, shall establish a State health benefits exchange to
be known as the Illinois Health Benefits Exchange in order to
help individuals and small employers with no more than 50
employees shop for, select, and enroll in qualified,
affordable private health plans that fit their needs at
competitive prices. The Exchange shall separate coverage pools
for individuals and small employers and shall supplement and
not supplant any existing private health insurance market for
individuals and small employers. The Department of Insurance
shall operate the Illinois Health Benefits Exchange as a

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State-based exchange using the federal platform by plan year
2025 and as a State-based exchange by plan year 2026. The
Director of Insurance may require that all plans in the
individual and small group markets, other than grandfathered
health plans, be made available for comparison on the Illinois
Health Benefits Exchange, but may not require that all plans
in the individual and small group markets be purchased
exclusively on the Illinois Health Benefits Exchange. The
Director of Insurance may require that plans offered on the
exchange conform with standardized plan designs that provide
for standardized cost sharing for covered health services.
Except when it is inconsistent with State law, the Department
of Insurance shall enforce the coverage requirements under the
federal Patient Protection and Affordable Care Act, including
the coverage of all United States Preventive Services Task
Force Grade A and B preventive services without cost sharing
notwithstanding any federal overturning or repeal of 42 U.S.C.
300gg-13(a)(1), that apply to the individual and small group
markets. The Director of Insurance may elect to add a small
business health options program to the Illinois Health
Benefits Exchange to help small employers enroll their
employees in qualified health plans in the small group market.
The General Assembly shall appropriate funds to establish the
Illinois Health Benefits Exchange.
(Source: P.A. 97-142, eff. 7-14-11.)

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(215 ILCS 122/5-21 new)
Sec. 5-21. Monthly assessments.
(a) The Director of Insurance may apply a monthly
assessment to each health benefits plan sold on the Illinois
Health Benefits Exchange. The assessment shall be paid by the
issuer and to the Department of Insurance and shall be used
only for the purpose of supporting the exchange through
exchange operations, outreach, enrollment, and other means of
supporting the exchange, including any efforts that may result
in a benefit to policyholders. The assessment may be applied
at a rate of:
(1) 0.5% of the total monthly premium charged by an
issuer for each health benefits plan during any period
that the State is on a State-based exchange using the
federal platform; or
(2) 2.75% of the total monthly premium charged by an
issuer for each health benefits plan during any period
that the State is on the State-based exchange. The
Director of Insurance shall adjust this rate to ensure
that the Illinois Health Benefits Exchange is fully
funded, but in no case shall the assessment be applied at a
rate that exceeds 4% of the total monthly premium charged
by a carrier. If the Director determines it is necessary
to adjust the rate pursuant to this paragraph, the
Director shall, in advance of the adjustment, post on the
Department's website a report describing the reasons and

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justifications for the adjustment, which shall be
consistent with the purposes of supporting the Illinois
Health Benefits Exchange as provided in this Section, at
least 120 days before the implementation of the rate
adjustment.
(b) The Director of Insurance shall notify an issuer 120
days before the implementation of its assessment rate for the
subsequent year. Issuers must remit the assessment due in
monthly installments to the Department of Insurance.
(c) The assessment described in this Section shall be
considered a special purpose obligation and may not be applied
by issuers to vary premium rates at the plan level.
(d) There is created a special fund within the State
treasury to be known as the Illinois Health Benefits Exchange
Fund. The Illinois Health Benefits Exchange Fund shall be the
repository for moneys collected pursuant to fees or
assessments on exchange issuers, federal financial
participation as appropriate, and other moneys received as
grants or otherwise appropriated for the purposes of
supporting health insurance outreach, enrollment efforts, and
plan management operations through an exchange. All moneys in
the Fund shall be used, subject to appropriation, only for the
purpose of supporting the exchange through exchange
operations, outreach, enrollment, and other means of
supporting the exchange, including any efforts that may result
in a benefit to policyholders.

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(215 ILCS 122/5-22 new)
Sec. 5-22. State medical assistance program coordination.
(a) The Department of Insurance and the Department of
Healthcare and Family Services shall coordinate the operations
of the exchange with the operations of State medical
assistance programs. The Department of Healthcare and Family
Services shall oversee and operate the exchange eligibility
rules engine to ensure accurate assessments and determinations
of exchange and State medical assistance program eligibility.
(b) The exchange may determine eligibility for State
medical assistance programs that use the modified adjusted
gross income methodology.
(c) The exchange may be used for enrollment into State
medical assistance program health plans.
(d) The Department of Healthcare and Family Services shall
request federal financial participation funds from the Centers
for Medicare and Medicaid Services for any integrated
eligibility and enrollment functions of the exchange.
(215 ILCS 122/5-23 new)
Sec. 5-23. Department of Insurance and Department of
Healthcare and Family Services authority.
(a) The Department of Insurance and the Department of
Healthcare and Family Services, in addition to the powers
granted under the Illinois Insurance Code and the Illinois

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Public Aid Code, have the power necessary to establish and
operate the Illinois Health Benefits Exchange, including, but
not limited to, the authority to:
(1) adopt rules deemed necessary by the departments to
implement this Law;
(2) employ or retain sufficient personnel to provide
administration, staffing, and necessary related support
required to adequately discharge the duties described in
this Law from funds held in the Illinois Health Benefits
Exchange Fund;
(3) procure services, including a call center, and
goods for the purpose of establishing the Illinois Health
Benefits Exchange, including, but not limited to,
procurements in conformance with paragraph (22) of
subsection (b) of Section 1-10 of the Illinois Procurement
Code; and
(4) require any exchange vendor to have experience
operating a State-based exchange in another state.
(b) The Department of Insurance has the authority to
employ a Marketplace Director of the Illinois Health Benefits
Exchange.
(215 ILCS 122/5-24 new)
Sec. 5-24. Illinois Health Benefits Exchange Advisory
Committee.
(a) The Director of Insurance shall establish the Illinois

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Health Benefits Exchange Advisory Committee no later than
December 31, 2023. The Illinois Health Benefits Exchange
Advisory Committee shall be tasked with making recommendations
to the Marketplace Director of the Illinois Health Benefits
Exchange concerning the operation of the exchange, and the
Committee shall hold its first meeting no later than 90 days
following the establishment of the Committee and shall meet
quarterly thereafter. The Marketplace Director shall make a
quarterly report to the Committee.
(b) The Department of Insurance shall present regular and
timely reports to the Illinois Health Benefits Exchange
Advisory Committee regarding the progress in the development
and ongoing operations of the Illinois Health Benefits
Exchange before its establishment by plan year 2026. The
reports shall be posted to the Department of Insurance's
website and include information on the Department of
Insurance's progress toward establishing and maintaining the
Illinois Health Benefits Exchange with the goal of ensuring an
effective and efficient transition from the federal platform
to the State-based exchange for individuals, employers, and
health insurance issuers while mitigating loss of health
insurance coverage for any potential consumer. The Department
of Insurance's progress reports shall provide information
including, but not limited to, transparency, user
understandability, plan compliance, outreach and education,
systems operations, and annual fiscal projections. The

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Department of Insurance shall gather stakeholder input in
developing operational plans and preparing the reports for the
Illinois Health Benefits Exchange Advisory Committee.
(c) The Illinois Health Benefits Exchange Advisory
Committee shall include the following members:
(1) The Director of Insurance, or the Director's
designee, who shall serve ex officio and as co-chair;
(2) The Director of Healthcare and Family Services, or
the Director's designee, who shall serve ex officio and as
co-chair;
(3) The Secretary of Human Services, or the
Secretary's designee, who shall serve ex officio; and
(4) 10 public members, who shall be residents of this
State, appointed by the Director of Insurance. The
Director shall consider the diversity of this State in the
selection of the committee members. The public members
shall include:
(A) one representative of a statewide organization
representing a majority of Illinois hospitals;
(B) one representative of a statewide insurance
producer professional trade association whose
membership is primarily composed of individuals
licensed under the Illinois Insurance Code;
(C) 2 representatives of a health insurance
consumer advocacy group;
(D) one representative with expertise in

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enrollment and consumer assistance;
(E) 2 representatives of health insurance issuers
or issuer trade associations, at least one of which
represents a State-domiciled mutual health insurance
company, with a demonstrated expertise in the business
of health insurance or health benefits administration;
(F) one representative of a statewide association
representing small business owners;
(G) one representative of a statewide organization
representing physicians; and
(H) one academic or research professional with
expertise in health insurance.
(d) Members of the Illinois Health Benefits Exchange
Advisory Committee shall serve for a term of 2 years, shall
serve without compensation, and shall not be entitled to
reimbursement. The Department of Insurance shall provide
administrative support to the Illinois Health Benefits
Exchange Advisory Committee.
(e) The Committee's quarterly meetings shall be open to
the public and subject to the Open Meetings Act.
Section 99. Effective date. This Act takes effect upon
becoming law.".