COURT OF CLAIMS-PROCEDURE

Illinois General Assembly - 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,
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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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

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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
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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
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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
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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
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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.

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