Illinois 2023-2024 Regular Session

Illinois Senate Bill SB1962 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1962 Introduced 2/9/2023, by Sen. Ann Gillespie SYNOPSIS AS INTRODUCED: 305 ILCS 5/5-30.1 Amends the Illinois Public Aid. Makes a technical change in a Section concerning managed care protections. LRB103 30582 KTG 57019 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1962 Introduced 2/9/2023, by Sen. Ann Gillespie SYNOPSIS AS INTRODUCED: 305 ILCS 5/5-30.1 305 ILCS 5/5-30.1 Amends the Illinois Public Aid. Makes a technical change in a Section concerning managed care protections. LRB103 30582 KTG 57019 b LRB103 30582 KTG 57019 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1962 Introduced 2/9/2023, by Sen. Ann Gillespie SYNOPSIS AS INTRODUCED:
33 305 ILCS 5/5-30.1 305 ILCS 5/5-30.1
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55 Amends the Illinois Public Aid. Makes a technical change in a Section concerning managed care protections.
66 LRB103 30582 KTG 57019 b LRB103 30582 KTG 57019 b
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1111 1 AN ACT concerning public aid.
1212 2 Be it enacted by the People of the State of Illinois,
1313 3 represented in the General Assembly:
1414 4 Section 5. The Illinois Public Aid Code is amended by
1515 5 changing Section 5-30.1 as follows:
1616 6 (305 ILCS 5/5-30.1)
1717 7 Sec. 5-30.1. Managed care protections.
1818 8 (a) As used in this Section:
1919 9 "Managed care organization" or "MCO" means any entity
2020 10 which contracts with the the Department to provide services
2121 11 where payment for medical services is made on a capitated
2222 12 basis.
2323 13 "Emergency services" include:
2424 14 (1) emergency services, as defined by Section 10 of
2525 15 the Managed Care Reform and Patient Rights Act;
2626 16 (2) emergency medical screening examinations, as
2727 17 defined by Section 10 of the Managed Care Reform and
2828 18 Patient Rights Act;
2929 19 (3) post-stabilization medical services, as defined by
3030 20 Section 10 of the Managed Care Reform and Patient Rights
3131 21 Act; and
3232 22 (4) emergency medical conditions, as defined by
3333 23 Section 10 of the Managed Care Reform and Patient Rights
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3737 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1962 Introduced 2/9/2023, by Sen. Ann Gillespie SYNOPSIS AS INTRODUCED:
3838 305 ILCS 5/5-30.1 305 ILCS 5/5-30.1
3939 305 ILCS 5/5-30.1
4040 Amends the Illinois Public Aid. Makes a technical change in a Section concerning managed care protections.
4141 LRB103 30582 KTG 57019 b LRB103 30582 KTG 57019 b
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4343 A BILL FOR
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6868 1 Act.
6969 2 (b) As provided by Section 5-16.12, managed care
7070 3 organizations are subject to the provisions of the Managed
7171 4 Care Reform and Patient Rights Act.
7272 5 (c) An MCO shall pay any provider of emergency services
7373 6 that does not have in effect a contract with the contracted
7474 7 Medicaid MCO. The default rate of reimbursement shall be the
7575 8 rate paid under Illinois Medicaid fee-for-service program
7676 9 methodology, including all policy adjusters, including but not
7777 10 limited to Medicaid High Volume Adjustments, Medicaid
7878 11 Percentage Adjustments, Outpatient High Volume Adjustments,
7979 12 and all outlier add-on adjustments to the extent such
8080 13 adjustments are incorporated in the development of the
8181 14 applicable MCO capitated rates.
8282 15 (d) An MCO shall pay for all post-stabilization services
8383 16 as a covered service in any of the following situations:
8484 17 (1) the MCO authorized such services;
8585 18 (2) such services were administered to maintain the
8686 19 enrollee's stabilized condition within one hour after a
8787 20 request to the MCO for authorization of further
8888 21 post-stabilization services;
8989 22 (3) the MCO did not respond to a request to authorize
9090 23 such services within one hour;
9191 24 (4) the MCO could not be contacted; or
9292 25 (5) the MCO and the treating provider, if the treating
9393 26 provider is a non-affiliated provider, could not reach an
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104104 1 agreement concerning the enrollee's care and an affiliated
105105 2 provider was unavailable for a consultation, in which case
106106 3 the MCO must pay for such services rendered by the
107107 4 treating non-affiliated provider until an affiliated
108108 5 provider was reached and either concurred with the
109109 6 treating non-affiliated provider's plan of care or assumed
110110 7 responsibility for the enrollee's care. Such payment shall
111111 8 be made at the default rate of reimbursement paid under
112112 9 Illinois Medicaid fee-for-service program methodology,
113113 10 including all policy adjusters, including but not limited
114114 11 to Medicaid High Volume Adjustments, Medicaid Percentage
115115 12 Adjustments, Outpatient High Volume Adjustments and all
116116 13 outlier add-on adjustments to the extent that such
117117 14 adjustments are incorporated in the development of the
118118 15 applicable MCO capitated rates.
119119 16 (e) The following requirements apply to MCOs in
120120 17 determining payment for all emergency services:
121121 18 (1) MCOs shall not impose any requirements for prior
122122 19 approval of emergency services.
123123 20 (2) The MCO shall cover emergency services provided to
124124 21 enrollees who are temporarily away from their residence
125125 22 and outside the contracting area to the extent that the
126126 23 enrollees would be entitled to the emergency services if
127127 24 they still were within the contracting area.
128128 25 (3) The MCO shall have no obligation to cover medical
129129 26 services provided on an emergency basis that are not
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140140 1 covered services under the contract.
141141 2 (4) The MCO shall not condition coverage for emergency
142142 3 services on the treating provider notifying the MCO of the
143143 4 enrollee's screening and treatment within 10 days after
144144 5 presentation for emergency services.
145145 6 (5) The determination of the attending emergency
146146 7 physician, or the provider actually treating the enrollee,
147147 8 of whether an enrollee is sufficiently stabilized for
148148 9 discharge or transfer to another facility, shall be
149149 10 binding on the MCO. The MCO shall cover emergency services
150150 11 for all enrollees whether the emergency services are
151151 12 provided by an affiliated or non-affiliated provider.
152152 13 (6) The MCO's financial responsibility for
153153 14 post-stabilization care services it has not pre-approved
154154 15 ends when:
155155 16 (A) a plan physician with privileges at the
156156 17 treating hospital assumes responsibility for the
157157 18 enrollee's care;
158158 19 (B) a plan physician assumes responsibility for
159159 20 the enrollee's care through transfer;
160160 21 (C) a contracting entity representative and the
161161 22 treating physician reach an agreement concerning the
162162 23 enrollee's care; or
163163 24 (D) the enrollee is discharged.
164164 25 (f) Network adequacy and transparency.
165165 26 (1) The Department shall:
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176176 1 (A) ensure that an adequate provider network is in
177177 2 place, taking into consideration health professional
178178 3 shortage areas and medically underserved areas;
179179 4 (B) publicly release an explanation of its process
180180 5 for analyzing network adequacy;
181181 6 (C) periodically ensure that an MCO continues to
182182 7 have an adequate network in place;
183183 8 (D) require MCOs, including Medicaid Managed Care
184184 9 Entities as defined in Section 5-30.2, to meet
185185 10 provider directory requirements under Section 5-30.3;
186186 11 (E) require MCOs to ensure that any
187187 12 Medicaid-certified provider under contract with an MCO
188188 13 and previously submitted on a roster on the date of
189189 14 service is paid for any medically necessary,
190190 15 Medicaid-covered, and authorized service rendered to
191191 16 any of the MCO's enrollees, regardless of inclusion on
192192 17 the MCO's published and publicly available directory
193193 18 of available providers; and
194194 19 (F) require MCOs, including Medicaid Managed Care
195195 20 Entities as defined in Section 5-30.2, to meet each of
196196 21 the requirements under subsection (d-5) of Section 10
197197 22 of the Network Adequacy and Transparency Act; with
198198 23 necessary exceptions to the MCO's network to ensure
199199 24 that admission and treatment with a provider or at a
200200 25 treatment facility in accordance with the network
201201 26 adequacy standards in paragraph (3) of subsection
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212212 1 (d-5) of Section 10 of the Network Adequacy and
213213 2 Transparency Act is limited to providers or facilities
214214 3 that are Medicaid certified.
215215 4 (2) Each MCO shall confirm its receipt of information
216216 5 submitted specific to physician or dentist additions or
217217 6 physician or dentist deletions from the MCO's provider
218218 7 network within 3 days after receiving all required
219219 8 information from contracted physicians or dentists, and
220220 9 electronic physician and dental directories must be
221221 10 updated consistent with current rules as published by the
222222 11 Centers for Medicare and Medicaid Services or its
223223 12 successor agency.
224224 13 (g) Timely payment of claims.
225225 14 (1) The MCO shall pay a claim within 30 days of
226226 15 receiving a claim that contains all the essential
227227 16 information needed to adjudicate the claim.
228228 17 (2) The MCO shall notify the billing party of its
229229 18 inability to adjudicate a claim within 30 days of
230230 19 receiving that claim.
231231 20 (3) The MCO shall pay a penalty that is at least equal
232232 21 to the timely payment interest penalty imposed under
233233 22 Section 368a of the Illinois Insurance Code for any claims
234234 23 not timely paid.
235235 24 (A) When an MCO is required to pay a timely payment
236236 25 interest penalty to a provider, the MCO must calculate
237237 26 and pay the timely payment interest penalty that is
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248248 1 due to the provider within 30 days after the payment of
249249 2 the claim. In no event shall a provider be required to
250250 3 request or apply for payment of any owed timely
251251 4 payment interest penalties.
252252 5 (B) Such payments shall be reported separately
253253 6 from the claim payment for services rendered to the
254254 7 MCO's enrollee and clearly identified as interest
255255 8 payments.
256256 9 (4)(A) The Department shall require MCOs to expedite
257257 10 payments to providers identified on the Department's
258258 11 expedited provider list, determined in accordance with 89
259259 12 Ill. Adm. Code 140.71(b), on a schedule at least as
260260 13 frequently as the providers are paid under the
261261 14 Department's fee-for-service expedited provider schedule.
262262 15 (B) Compliance with the expedited provider requirement
263263 16 may be satisfied by an MCO through the use of a Periodic
264264 17 Interim Payment (PIP) program that has been mutually
265265 18 agreed to and documented between the MCO and the provider,
266266 19 if the PIP program ensures that any expedited provider
267267 20 receives regular and periodic payments based on prior
268268 21 period payment experience from that MCO. Total payments
269269 22 under the PIP program may be reconciled against future PIP
270270 23 payments on a schedule mutually agreed to between the MCO
271271 24 and the provider.
272272 25 (C) The Department shall share at least monthly its
273273 26 expedited provider list and the frequency with which it
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284284 1 pays providers on the expedited list.
285285 2 (g-5) Recognizing that the rapid transformation of the
286286 3 Illinois Medicaid program may have unintended operational
287287 4 challenges for both payers and providers:
288288 5 (1) in no instance shall a medically necessary covered
289289 6 service rendered in good faith, based upon eligibility
290290 7 information documented by the provider, be denied coverage
291291 8 or diminished in payment amount if the eligibility or
292292 9 coverage information available at the time the service was
293293 10 rendered is later found to be inaccurate in the assignment
294294 11 of coverage responsibility between MCOs or the
295295 12 fee-for-service system, except for instances when an
296296 13 individual is deemed to have not been eligible for
297297 14 coverage under the Illinois Medicaid program; and
298298 15 (2) the Department shall, by December 31, 2016, adopt
299299 16 rules establishing policies that shall be included in the
300300 17 Medicaid managed care policy and procedures manual
301301 18 addressing payment resolutions in situations in which a
302302 19 provider renders services based upon information obtained
303303 20 after verifying a patient's eligibility and coverage plan
304304 21 through either the Department's current enrollment system
305305 22 or a system operated by the coverage plan identified by
306306 23 the patient presenting for services:
307307 24 (A) such medically necessary covered services
308308 25 shall be considered rendered in good faith;
309309 26 (B) such policies and procedures shall be
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320320 1 developed in consultation with industry
321321 2 representatives of the Medicaid managed care health
322322 3 plans and representatives of provider associations
323323 4 representing the majority of providers within the
324324 5 identified provider industry; and
325325 6 (C) such rules shall be published for a review and
326326 7 comment period of no less than 30 days on the
327327 8 Department's website with final rules remaining
328328 9 available on the Department's website.
329329 10 The rules on payment resolutions shall include, but
330330 11 not be limited to:
331331 12 (A) the extension of the timely filing period;
332332 13 (B) retroactive prior authorizations; and
333333 14 (C) guaranteed minimum payment rate of no less
334334 15 than the current, as of the date of service,
335335 16 fee-for-service rate, plus all applicable add-ons,
336336 17 when the resulting service relationship is out of
337337 18 network.
338338 19 The rules shall be applicable for both MCO coverage
339339 20 and fee-for-service coverage.
340340 21 If the fee-for-service system is ultimately determined to
341341 22 have been responsible for coverage on the date of service, the
342342 23 Department shall provide for an extended period for claims
343343 24 submission outside the standard timely filing requirements.
344344 25 (g-6) MCO Performance Metrics Report.
345345 26 (1) The Department shall publish, on at least a
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356356 1 quarterly basis, each MCO's operational performance,
357357 2 including, but not limited to, the following categories of
358358 3 metrics:
359359 4 (A) claims payment, including timeliness and
360360 5 accuracy;
361361 6 (B) prior authorizations;
362362 7 (C) grievance and appeals;
363363 8 (D) utilization statistics;
364364 9 (E) provider disputes;
365365 10 (F) provider credentialing; and
366366 11 (G) member and provider customer service.
367367 12 (2) The Department shall ensure that the metrics
368368 13 report is accessible to providers online by January 1,
369369 14 2017.
370370 15 (3) The metrics shall be developed in consultation
371371 16 with industry representatives of the Medicaid managed care
372372 17 health plans and representatives of associations
373373 18 representing the majority of providers within the
374374 19 identified industry.
375375 20 (4) Metrics shall be defined and incorporated into the
376376 21 applicable Managed Care Policy Manual issued by the
377377 22 Department.
378378 23 (g-7) MCO claims processing and performance analysis. In
379379 24 order to monitor MCO payments to hospital providers, pursuant
380380 25 to Public Act 100-580, the Department shall post an analysis
381381 26 of MCO claims processing and payment performance on its
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392392 1 website every 6 months. Such analysis shall include a review
393393 2 and evaluation of a representative sample of hospital claims
394394 3 that are rejected and denied for clean and unclean claims and
395395 4 the top 5 reasons for such actions and timeliness of claims
396396 5 adjudication, which identifies the percentage of claims
397397 6 adjudicated within 30, 60, 90, and over 90 days, and the dollar
398398 7 amounts associated with those claims.
399399 8 (g-8) Dispute resolution process. The Department shall
400400 9 maintain a provider complaint portal through which a provider
401401 10 can submit to the Department unresolved disputes with an MCO.
402402 11 An unresolved dispute means an MCO's decision that denies in
403403 12 whole or in part a claim for reimbursement to a provider for
404404 13 health care services rendered by the provider to an enrollee
405405 14 of the MCO with which the provider disagrees. Disputes shall
406406 15 not be submitted to the portal until the provider has availed
407407 16 itself of the MCO's internal dispute resolution process.
408408 17 Disputes that are submitted to the MCO internal dispute
409409 18 resolution process may be submitted to the Department of
410410 19 Healthcare and Family Services' complaint portal no sooner
411411 20 than 30 days after submitting to the MCO's internal process
412412 21 and not later than 30 days after the unsatisfactory resolution
413413 22 of the internal MCO process or 60 days after submitting the
414414 23 dispute to the MCO internal process. Multiple claim disputes
415415 24 involving the same MCO may be submitted in one complaint,
416416 25 regardless of whether the claims are for different enrollees,
417417 26 when the specific reason for non-payment of the claims
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428428 1 involves a common question of fact or policy. Within 10
429429 2 business days of receipt of a complaint, the Department shall
430430 3 present such disputes to the appropriate MCO, which shall then
431431 4 have 30 days to issue its written proposal to resolve the
432432 5 dispute. The Department may grant one 30-day extension of this
433433 6 time frame to one of the parties to resolve the dispute. If the
434434 7 dispute remains unresolved at the end of this time frame or the
435435 8 provider is not satisfied with the MCO's written proposal to
436436 9 resolve the dispute, the provider may, within 30 days, request
437437 10 the Department to review the dispute and make a final
438438 11 determination. Within 30 days of the request for Department
439439 12 review of the dispute, both the provider and the MCO shall
440440 13 present all relevant information to the Department for
441441 14 resolution and make individuals with knowledge of the issues
442442 15 available to the Department for further inquiry if needed.
443443 16 Within 30 days of receiving the relevant information on the
444444 17 dispute, or the lapse of the period for submitting such
445445 18 information, the Department shall issue a written decision on
446446 19 the dispute based on contractual terms between the provider
447447 20 and the MCO, contractual terms between the MCO and the
448448 21 Department of Healthcare and Family Services and applicable
449449 22 Medicaid policy. The decision of the Department shall be
450450 23 final. By January 1, 2020, the Department shall establish by
451451 24 rule further details of this dispute resolution process.
452452 25 Disputes between MCOs and providers presented to the
453453 26 Department for resolution are not contested cases, as defined
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464464 1 in Section 1-30 of the Illinois Administrative Procedure Act,
465465 2 conferring any right to an administrative hearing.
466466 3 (g-9)(1) The Department shall publish annually on its
467467 4 website a report on the calculation of each managed care
468468 5 organization's medical loss ratio showing the following:
469469 6 (A) Premium revenue, with appropriate adjustments.
470470 7 (B) Benefit expense, setting forth the aggregate
471471 8 amount spent for the following:
472472 9 (i) Direct paid claims.
473473 10 (ii) Subcapitation payments.
474474 11 (iii) Other claim payments.
475475 12 (iv) Direct reserves.
476476 13 (v) Gross recoveries.
477477 14 (vi) Expenses for activities that improve health
478478 15 care quality as allowed by the Department.
479479 16 (2) The medical loss ratio shall be calculated consistent
480480 17 with federal law and regulation following a claims runout
481481 18 period determined by the Department.
482482 19 (g-10)(1) "Liability effective date" means the date on
483483 20 which an MCO becomes responsible for payment for medically
484484 21 necessary and covered services rendered by a provider to one
485485 22 of its enrollees in accordance with the contract terms between
486486 23 the MCO and the provider. The liability effective date shall
487487 24 be the later of:
488488 25 (A) The execution date of a network participation
489489 26 contract agreement.
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500500 1 (B) The date the provider or its representative
501501 2 submits to the MCO the complete and accurate standardized
502502 3 roster form for the provider in the format approved by the
503503 4 Department.
504504 5 (C) The provider effective date contained within the
505505 6 Department's provider enrollment subsystem within the
506506 7 Illinois Medicaid Program Advanced Cloud Technology
507507 8 (IMPACT) System.
508508 9 (2) The standardized roster form may be submitted to the
509509 10 MCO at the same time that the provider submits an enrollment
510510 11 application to the Department through IMPACT.
511511 12 (3) By October 1, 2019, the Department shall require all
512512 13 MCOs to update their provider directory with information for
513513 14 new practitioners of existing contracted providers within 30
514514 15 days of receipt of a complete and accurate standardized roster
515515 16 template in the format approved by the Department provided
516516 17 that the provider is effective in the Department's provider
517517 18 enrollment subsystem within the IMPACT system. Such provider
518518 19 directory shall be readily accessible for purposes of
519519 20 selecting an approved health care provider and comply with all
520520 21 other federal and State requirements.
521521 22 (g-11) The Department shall work with relevant
522522 23 stakeholders on the development of operational guidelines to
523523 24 enhance and improve operational performance of Illinois'
524524 25 Medicaid managed care program, including, but not limited to,
525525 26 improving provider billing practices, reducing claim
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536536 1 rejections and inappropriate payment denials, and
537537 2 standardizing processes, procedures, definitions, and response
538538 3 timelines, with the goal of reducing provider and MCO
539539 4 administrative burdens and conflict. The Department shall
540540 5 include a report on the progress of these program improvements
541541 6 and other topics in its Fiscal Year 2020 annual report to the
542542 7 General Assembly.
543543 8 (g-12) Notwithstanding any other provision of law, if the
544544 9 Department or an MCO requires submission of a claim for
545545 10 payment in a non-electronic format, a provider shall always be
546546 11 afforded a period of no less than 90 business days, as a
547547 12 correction period, following any notification of rejection by
548548 13 either the Department or the MCO to correct errors or
549549 14 omissions in the original submission.
550550 15 Under no circumstances, either by an MCO or under the
551551 16 State's fee-for-service system, shall a provider be denied
552552 17 payment for failure to comply with any timely submission
553553 18 requirements under this Code or under any existing contract,
554554 19 unless the non-electronic format claim submission occurs after
555555 20 the initial 180 days following the latest date of service on
556556 21 the claim, or after the 90 business days correction period
557557 22 following notification to the provider of rejection or denial
558558 23 of payment.
559559 24 (h) The Department shall not expand mandatory MCO
560560 25 enrollment into new counties beyond those counties already
561561 26 designated by the Department as of June 1, 2014 for the
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572572 1 individuals whose eligibility for medical assistance is not
573573 2 the seniors or people with disabilities population until the
574574 3 Department provides an opportunity for accountable care
575575 4 entities and MCOs to participate in such newly designated
576576 5 counties.
577577 6 (i) The requirements of this Section apply to contracts
578578 7 with accountable care entities and MCOs entered into, amended,
579579 8 or renewed after June 16, 2014 (the effective date of Public
580580 9 Act 98-651).
581581 10 (j) Health care information released to managed care
582582 11 organizations. A health care provider shall release to a
583583 12 Medicaid managed care organization, upon request, and subject
584584 13 to the Health Insurance Portability and Accountability Act of
585585 14 1996 and any other law applicable to the release of health
586586 15 information, the health care information of the MCO's
587587 16 enrollee, if the enrollee has completed and signed a general
588588 17 release form that grants to the health care provider
589589 18 permission to release the recipient's health care information
590590 19 to the recipient's insurance carrier.
591591 20 (k) The Department of Healthcare and Family Services,
592592 21 managed care organizations, a statewide organization
593593 22 representing hospitals, and a statewide organization
594594 23 representing safety-net hospitals shall explore ways to
595595 24 support billing departments in safety-net hospitals.
596596 25 (l) The requirements of this Section added by Public Act
597597 26 102-4 shall apply to services provided on or after the first
598598
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607607 SB1962 - 17 - LRB103 30582 KTG 57019 b
608608 1 day of the month that begins 60 days after April 27, 2021 (the
609609 2 effective date of Public Act 102-4).
610610 3 (Source: P.A. 101-209, eff. 8-5-19; 102-4, eff. 4-27-21;
611611 4 102-43, eff. 7-6-21; 102-144, eff. 1-1-22; 102-454, eff.
612612 5 8-20-21; 102-813, eff. 5-13-22.)
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618618 SB1962 - 17 - LRB103 30582 KTG 57019 b