100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB0749

 

Introduced 1/30/2017, by Sen. Jason A. Barickman

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the State Officials and Employees Ethics Act. Provides that during the period beginning September 1 of the year of a general election and ending the day after the general election, the proper name or image of any executive branch constitutional officer or member of the General Assembly shall not be included in a public announcement on behalf of an executive branch constitutional officer, member of the General Assembly, or State agency related to any contract or grant awarded by a State agency. Amends the State Finance Act. Provides that except as otherwise provided by law, court order, or the terms or conditions of a settlement, award, gift, donation, or bequest, non-appropriated funds may not be used to create new programs or expand existing programs. Provides that if any State agency receives a grant or contract from itself from appropriated funds, the recipient agency shall be restricted in the expenditure of these funds to the period during which the grantor agency was so restricted. Amends the Illinois Grant Funds Recovery Act. Provides that the Governor's Office of Management and Budget shall convene a subcommittee of the Illinois Single Audit Commission to provide recommendations to the General Assembly regarding the adoption of legislation. Amends the Grant Accountability and Transparency Act. Sets forth provisions concerning the stop payment system. Modifies a Section concerning the adoption of supplemental rules by the Governor's Office of Management and Budget. Modifies a Section concerning the annual report submitted by the Governor's Office of Management and Budget. Provides requirements for documentation, certification, and reporting of awarded grants. Sets forth provisions concerning the travel costs incurred by the employees of the recipient or subrecipient of an awarded grant who are in travel status on official business of the recipient or subrecipient. Makes conforming changes in the Governor's Office of Management and Budget Act and the State Comptroller Act. Effective immediately.


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A BILL FOR

 

SB0749LRB100 05859 RJF 15884 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Officials and Employees Ethics Act is
5amended by changing Section 5-20 as follows:
 
6    (5 ILCS 430/5-20)
7    Sec. 5-20. Public service announcements; other promotional
8material.
9    (a) Beginning January 1, 2004, no public service
10announcement or advertisement that is on behalf of any State
11administered program and contains the proper name, image, or
12voice of any executive branch constitutional officer or member
13of the General Assembly shall be (i) broadcast or aired on
14radio or television, (ii) printed in a commercial newspaper or
15a commercial magazine, or (iii) displayed on a billboard or
16electronic message board at any time.
17    (b) The proper name or image of any executive branch
18constitutional officer or member of the General Assembly may
19not appear on any (i) bumper stickers, (ii) commercial
20billboards, (iii) lapel pins or buttons, (iv) magnets, (v)
21stickers, and (vi) other similar promotional items, that are
22not in furtherance of the person's official State duties or
23governmental and public service functions, if designed, paid

 

 

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1for, prepared, or distributed using public dollars. This
2subsection does not apply to stocks of items existing on the
3effective date of this amendatory Act of the 93rd General
4Assembly.
5    (b-5) During the period beginning September 1 of the year
6of a general election and ending the day after the general
7election, the proper name or image of any executive branch
8constitutional officer or member of the General Assembly shall
9not be included in a public announcement on behalf of an
10officer, member, or State agency related to any contract or
11grant awarded by a State agency. Nothing in this subsection
12(b-5) prohibits a State agency from issuing notification of the
13award or grant of a contract, provided the notification does
14not include the proper name or image of any executive branch
15constitutional officer or member of the General Assembly. This
16subsection (b-5) does not prohibit an executive branch
17constitutional officer or member of the General Assembly from
18attending any public or private event associated with the award
19or grant of contract or from being included on a list of
20attendees disseminated to the public.
21    (c) This Section does not apply to communications funded
22through expenditures required to be reported under Article 9 of
23the Election Code.
24(Source: P.A. 97-13, eff. 6-16-11.)
 
25    Section 10. The State Comptroller Act is amended by adding

 

 

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1Section 28 as follows:
 
2    (15 ILCS 405/28 new)
3    Sec. 28. Stop payment system.
4    (a) In this Section, "recipient", "State grant-making
5agency", and "subrecipient" have the same definition as that in
6Section 15 of the Grant Accountability and Transparency Act.
7    (b) On or before July 1, 2018, the Office of the
8Comptroller shall, in conjunction with the Governor's Office of
9Management and Budget, adopt rules pertaining to the following:
10        (1) Factors to be considered in determining whether to
11    issue a stop payment order;
12        (2) Factors to be considered in determining whether a
13    stop payment order should be lifted; and
14        (3) Procedures for notification to the recipient or
15    subrecipient of the issuance of a stop payment order, the
16    lifting of a stop payment order, and any other related
17    information.
18    (c) On or before July 1, 2019, the Office of the
19Comptroller shall have established a stop payment system that
20will cause the temporary or permanent cessation of payments to
21a recipient or subrecipient in specified circumstances. Such a
22temporary or permanent cessation of payments will occur
23pursuant to a stop payment order issued by a State grant-making
24agency and implemented by the Office of the Comptroller.
25    (d) The Office of the Comptroller shall maintain a file

 

 

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1pertaining to all stop payment orders which shall include, at a
2minimum:
3        (1) The notice to the recipient or subrecipient that a
4    stop payment order has been issued. The notice shall
5    include:
6            (A) The name of the grant.
7            (B) The grant number.
8            (C) The name of the State agency that issued the
9        grant.
10            (D) The reason for the stop payment order.
11            (E) Notification that the stop payment order
12        applies to all grants and contracts issued by the
13        State.
14            (F) Any other relevant information.
15        (2) The order lifting the stop payment order, if
16    applicable.
 
17    Section 15. The Governor's Office of Management and Budget
18Act is amended by adding Section 2.11 and 2.12 as follows:
 
19    (20 ILCS 3005/2.11 new)
20    Sec. 2.11. Stop payment orders.
21    (a) In this Section, "recipient", "State grant-making
22agency", and "subrecipient" have the same definition as that in
23Section 15 of the Grant Accountability and Transparency Act.
24    (b) Pursuant to the Grant Accountability and Transparency

 

 

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1Act, the Governor's Office of Management and Budget shall adopt
2rules pertaining to the issuance of stop payment orders that
3will cause the temporary or permanent cessation of payments to
4a recipient or subrecipient in specified circumstances. Stop
5payment orders shall be issued by a State grant-making agency
6and implemented by the Office of the Comptroller.
 
7    (20 ILCS 3005/2.12 new)
8    Sec. 2.12. Subcommittee recommendations.
9    Pursuant to Section 15.5 of the Grant Funds Recovery Act,
10the Governor's Office of Management and Budget, in conjunction
11with the Illinois Single Audit Commission, shall convene a
12subcommittee of the Commission to research and provide
13recommendations to the General Assembly regarding the adoption
14of legislation, in accordance with the federal Improper
15Payments Elimination and Recovery Improvement Act of 2012. The
16subcommittee's recommendations shall be included in the Annual
17Report of the Commission to be submitted to the General
18Assembly on January 1, 2018.
 
19    Section 20. The State Finance Act is amended by changing
20Sections 25 and 35 as follows:
 
21    (30 ILCS 105/25)  (from Ch. 127, par. 161)
22    Sec. 25. Fiscal year limitations.
23    (a) All appropriations shall be available for expenditure

 

 

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1for the fiscal year or for a lesser period if the Act making
2that appropriation so specifies. A deficiency or emergency
3appropriation shall be available for expenditure only through
4June 30 of the year when the Act making that appropriation is
5enacted unless that Act otherwise provides. Except as otherwise
6provided by law, court order, or the terms or conditions of a
7settlement, award, gift, donation, or bequest,
8non-appropriated funds may not be used to create new programs
9or expand existing programs.
10    (b) Outstanding liabilities as of June 30, payable from
11appropriations which have otherwise expired, may be paid out of
12the expiring appropriations during the 2-month period ending at
13the close of business on August 31. Any service involving
14professional or artistic skills or any personal services by an
15employee whose compensation is subject to income tax
16withholding must be performed as of June 30 of the fiscal year
17in order to be considered an "outstanding liability as of June
1830" that is thereby eligible for payment out of the expiring
19appropriation.
20    (b-1) However, payment of tuition reimbursement claims
21under Section 14-7.03 or 18-3 of the School Code may be made by
22the State Board of Education from its appropriations for those
23respective purposes for any fiscal year, even though the claims
24reimbursed by the payment may be claims attributable to a prior
25fiscal year, and payments may be made at the direction of the
26State Superintendent of Education from the fund from which the

 

 

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1appropriation is made without regard to any fiscal year
2limitations, except as required by subsection (j) of this
3Section. Beginning on June 30, 2021, payment of tuition
4reimbursement claims under Section 14-7.03 or 18-3 of the
5School Code as of June 30, payable from appropriations that
6have otherwise expired, may be paid out of the expiring
7appropriation during the 4-month period ending at the close of
8business on October 31.
9    (b-2) All outstanding liabilities as of June 30, 2010,
10payable from appropriations that would otherwise expire at the
11conclusion of the lapse period for fiscal year 2010, and
12interest penalties payable on those liabilities under the State
13Prompt Payment Act, may be paid out of the expiring
14appropriations until December 31, 2010, without regard to the
15fiscal year in which the payment is made, as long as vouchers
16for the liabilities are received by the Comptroller no later
17than August 31, 2010.
18    (b-2.5) All outstanding liabilities as of June 30, 2011,
19payable from appropriations that would otherwise expire at the
20conclusion of the lapse period for fiscal year 2011, and
21interest penalties payable on those liabilities under the State
22Prompt Payment Act, may be paid out of the expiring
23appropriations until December 31, 2011, without regard to the
24fiscal year in which the payment is made, as long as vouchers
25for the liabilities are received by the Comptroller no later
26than August 31, 2011.

 

 

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1    (b-2.6) All outstanding liabilities as of June 30, 2012,
2payable from appropriations that would otherwise expire at the
3conclusion of the lapse period for fiscal year 2012, and
4interest penalties payable on those liabilities under the State
5Prompt Payment Act, may be paid out of the expiring
6appropriations until December 31, 2012, without regard to the
7fiscal year in which the payment is made, as long as vouchers
8for the liabilities are received by the Comptroller no later
9than August 31, 2012.
10    (b-2.7) For fiscal years 2012, 2013, and 2014, interest
11penalties payable under the State Prompt Payment Act associated
12with a voucher for which payment is issued after June 30 may be
13paid out of the next fiscal year's appropriation. The future
14year appropriation must be for the same purpose and from the
15same fund as the original payment. An interest penalty voucher
16submitted against a future year appropriation must be submitted
17within 60 days after the issuance of the associated voucher,
18and the Comptroller must issue the interest payment within 60
19days after acceptance of the interest voucher.
20    (b-3) Medical payments may be made by the Department of
21Veterans' Affairs from its appropriations for those purposes
22for any fiscal year, without regard to the fact that the
23medical services being compensated for by such payment may have
24been rendered in a prior fiscal year, except as required by
25subsection (j) of this Section. Beginning on June 30, 2021,
26medical payments payable from appropriations that have

 

 

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1otherwise expired may be paid out of the expiring appropriation
2during the 4-month period ending at the close of business on
3October 31.
4    (b-4) Medical payments and child care payments may be made
5by the Department of Human Services (as successor to the
6Department of Public Aid) from appropriations for those
7purposes for any fiscal year, without regard to the fact that
8the medical or child care services being compensated for by
9such payment may have been rendered in a prior fiscal year; and
10payments may be made at the direction of the Department of
11Healthcare and Family Services (or successor agency) from the
12Health Insurance Reserve Fund without regard to any fiscal year
13limitations, except as required by subsection (j) of this
14Section. Beginning on June 30, 2021, medical and child care
15payments made by the Department of Human Services and payments
16made at the discretion of the Department of Healthcare and
17Family Services (or successor agency) from the Health Insurance
18Reserve Fund and payable from appropriations that have
19otherwise expired may be paid out of the expiring appropriation
20during the 4-month period ending at the close of business on
21October 31.
22    (b-5) Medical payments may be made by the Department of
23Human Services from its appropriations relating to substance
24abuse treatment services for any fiscal year, without regard to
25the fact that the medical services being compensated for by
26such payment may have been rendered in a prior fiscal year,

 

 

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1provided the payments are made on a fee-for-service basis
2consistent with requirements established for Medicaid
3reimbursement by the Department of Healthcare and Family
4Services, except as required by subsection (j) of this Section.
5Beginning on June 30, 2021, medical payments made by the
6Department of Human Services relating to substance abuse
7treatment services payable from appropriations that have
8otherwise expired may be paid out of the expiring appropriation
9during the 4-month period ending at the close of business on
10October 31.
11    (b-6) Additionally, payments may be made by the Department
12of Human Services from its appropriations, or any other State
13agency from its appropriations with the approval of the
14Department of Human Services, from the Immigration Reform and
15Control Fund for purposes authorized pursuant to the
16Immigration Reform and Control Act of 1986, without regard to
17any fiscal year limitations, except as required by subsection
18(j) of this Section. Beginning on June 30, 2021, payments made
19by the Department of Human Services from the Immigration Reform
20and Control Fund for purposes authorized pursuant to the
21Immigration Reform and Control Act of 1986 payable from
22appropriations that have otherwise expired may be paid out of
23the expiring appropriation during the 4-month period ending at
24the close of business on October 31.
25    (b-7) Payments may be made in accordance with a plan
26authorized by paragraph (11) or (12) of Section 405-105 of the

 

 

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1Department of Central Management Services Law from
2appropriations for those payments without regard to fiscal year
3limitations.
4    (b-8) Reimbursements to eligible airport sponsors for the
5construction or upgrading of Automated Weather Observation
6Systems may be made by the Department of Transportation from
7appropriations for those purposes for any fiscal year, without
8regard to the fact that the qualification or obligation may
9have occurred in a prior fiscal year, provided that at the time
10the expenditure was made the project had been approved by the
11Department of Transportation prior to June 1, 2012 and, as a
12result of recent changes in federal funding formulas, can no
13longer receive federal reimbursement.
14    (b-9) Medical payments not exceeding $150,000,000 may be
15made by the Department on Aging from its appropriations
16relating to the Community Care Program for fiscal year 2014,
17without regard to the fact that the medical services being
18compensated for by such payment may have been rendered in a
19prior fiscal year, provided the payments are made on a
20fee-for-service basis consistent with requirements established
21for Medicaid reimbursement by the Department of Healthcare and
22Family Services, except as required by subsection (j) of this
23Section.
24    (c) Further, payments may be made by the Department of
25Public Health and the Department of Human Services (acting as
26successor to the Department of Public Health under the

 

 

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1Department of Human Services Act) from their respective
2appropriations for grants for medical care to or on behalf of
3premature and high-mortality risk infants and their mothers and
4for grants for supplemental food supplies provided under the
5United States Department of Agriculture Women, Infants and
6Children Nutrition Program, for any fiscal year without regard
7to the fact that the services being compensated for by such
8payment may have been rendered in a prior fiscal year, except
9as required by subsection (j) of this Section. Beginning on
10June 30, 2021, payments made by the Department of Public Health
11and the Department of Human Services from their respective
12appropriations for grants for medical care to or on behalf of
13premature and high-mortality risk infants and their mothers and
14for grants for supplemental food supplies provided under the
15United States Department of Agriculture Women, Infants and
16Children Nutrition Program payable from appropriations that
17have otherwise expired may be paid out of the expiring
18appropriations during the 4-month period ending at the close of
19business on October 31.
20    (d) The Department of Public Health and the Department of
21Human Services (acting as successor to the Department of Public
22Health under the Department of Human Services Act) shall each
23annually submit to the State Comptroller, Senate President,
24Senate Minority Leader, Speaker of the House, House Minority
25Leader, and the respective Chairmen and Minority Spokesmen of
26the Appropriations Committees of the Senate and the House, on

 

 

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1or before December 31, a report of fiscal year funds used to
2pay for services provided in any prior fiscal year. This report
3shall document by program or service category those
4expenditures from the most recently completed fiscal year used
5to pay for services provided in prior fiscal years.
6    (e) The Department of Healthcare and Family Services, the
7Department of Human Services (acting as successor to the
8Department of Public Aid), and the Department of Human Services
9making fee-for-service payments relating to substance abuse
10treatment services provided during a previous fiscal year shall
11each annually submit to the State Comptroller, Senate
12President, Senate Minority Leader, Speaker of the House, House
13Minority Leader, the respective Chairmen and Minority
14Spokesmen of the Appropriations Committees of the Senate and
15the House, on or before November 30, a report that shall
16document by program or service category those expenditures from
17the most recently completed fiscal year used to pay for (i)
18services provided in prior fiscal years and (ii) services for
19which claims were received in prior fiscal years.
20    (f) The Department of Human Services (as successor to the
21Department of Public Aid) shall annually submit to the State
22Comptroller, Senate President, Senate Minority Leader, Speaker
23of the House, House Minority Leader, and the respective
24Chairmen and Minority Spokesmen of the Appropriations
25Committees of the Senate and the House, on or before December
2631, a report of fiscal year funds used to pay for services

 

 

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1(other than medical care) provided in any prior fiscal year.
2This report shall document by program or service category those
3expenditures from the most recently completed fiscal year used
4to pay for services provided in prior fiscal years.
5    (g) In addition, each annual report required to be
6submitted by the Department of Healthcare and Family Services
7under subsection (e) shall include the following information
8with respect to the State's Medicaid program:
9        (1) Explanations of the exact causes of the variance
10    between the previous year's estimated and actual
11    liabilities.
12        (2) Factors affecting the Department of Healthcare and
13    Family Services' liabilities, including but not limited to
14    numbers of aid recipients, levels of medical service
15    utilization by aid recipients, and inflation in the cost of
16    medical services.
17        (3) The results of the Department's efforts to combat
18    fraud and abuse.
19    (h) As provided in Section 4 of the General Assembly
20Compensation Act, any utility bill for service provided to a
21General Assembly member's district office for a period
22including portions of 2 consecutive fiscal years may be paid
23from funds appropriated for such expenditure in either fiscal
24year.
25    (i) An agency which administers a fund classified by the
26Comptroller as an internal service fund may issue rules for:

 

 

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1        (1) billing user agencies in advance for payments or
2    authorized inter-fund transfers based on estimated charges
3    for goods or services;
4        (2) issuing credits, refunding through inter-fund
5    transfers, or reducing future inter-fund transfers during
6    the subsequent fiscal year for all user agency payments or
7    authorized inter-fund transfers received during the prior
8    fiscal year which were in excess of the final amounts owed
9    by the user agency for that period; and
10        (3) issuing catch-up billings to user agencies during
11    the subsequent fiscal year for amounts remaining due when
12    payments or authorized inter-fund transfers received from
13    the user agency during the prior fiscal year were less than
14    the total amount owed for that period.
15User agencies are authorized to reimburse internal service
16funds for catch-up billings by vouchers drawn against their
17respective appropriations for the fiscal year in which the
18catch-up billing was issued or by increasing an authorized
19inter-fund transfer during the current fiscal year. For the
20purposes of this Act, "inter-fund transfers" means transfers
21without the use of the voucher-warrant process, as authorized
22by Section 9.01 of the State Comptroller Act.
23    (i-1) Beginning on July 1, 2021, all outstanding
24liabilities, not payable during the 4-month lapse period as
25described in subsections (b-1), (b-3), (b-4), (b-5), (b-6), and
26(c) of this Section, that are made from appropriations for that

 

 

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1purpose for any fiscal year, without regard to the fact that
2the services being compensated for by those payments may have
3been rendered in a prior fiscal year, are limited to only those
4claims that have been incurred but for which a proper bill or
5invoice as defined by the State Prompt Payment Act has not been
6received by September 30th following the end of the fiscal year
7in which the service was rendered.
8    (j) Notwithstanding any other provision of this Act, the
9aggregate amount of payments to be made without regard for
10fiscal year limitations as contained in subsections (b-1),
11(b-3), (b-4), (b-5), (b-6), and (c) of this Section, and
12determined by using Generally Accepted Accounting Principles,
13shall not exceed the following amounts:
14        (1) $6,000,000,000 for outstanding liabilities related
15    to fiscal year 2012;
16        (2) $5,300,000,000 for outstanding liabilities related
17    to fiscal year 2013;
18        (3) $4,600,000,000 for outstanding liabilities related
19    to fiscal year 2014;
20        (4) $4,000,000,000 for outstanding liabilities related
21    to fiscal year 2015;
22        (5) $3,300,000,000 for outstanding liabilities related
23    to fiscal year 2016;
24        (6) $2,600,000,000 for outstanding liabilities related
25    to fiscal year 2017;
26        (7) $2,000,000,000 for outstanding liabilities related

 

 

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1    to fiscal year 2018;
2        (8) $1,300,000,000 for outstanding liabilities related
3    to fiscal year 2019;
4        (9) $600,000,000 for outstanding liabilities related
5    to fiscal year 2020; and
6        (10) $0 for outstanding liabilities related to fiscal
7    year 2021 and fiscal years thereafter.
8    (k) Department of Healthcare and Family Services Medical
9Assistance Payments.
10        (1) Definition of Medical Assistance.
11            For purposes of this subsection, the term "Medical
12        Assistance" shall include, but not necessarily be
13        limited to, medical programs and services authorized
14        under Titles XIX and XXI of the Social Security Act,
15        the Illinois Public Aid Code, the Children's Health
16        Insurance Program Act, the Covering ALL KIDS Health
17        Insurance Act, the Long Term Acute Care Hospital
18        Quality Improvement Transfer Program Act, and medical
19        care to or on behalf of persons suffering from chronic
20        renal disease, persons suffering from hemophilia, and
21        victims of sexual assault.
22        (2) Limitations on Medical Assistance payments that
23    may be paid from future fiscal year appropriations.
24            (A) The maximum amounts of annual unpaid Medical
25        Assistance bills received and recorded by the
26        Department of Healthcare and Family Services on or

 

 

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1        before June 30th of a particular fiscal year
2        attributable in aggregate to the General Revenue Fund,
3        Healthcare Provider Relief Fund, Tobacco Settlement
4        Recovery Fund, Long-Term Care Provider Fund, and the
5        Drug Rebate Fund that may be paid in total by the
6        Department from future fiscal year Medical Assistance
7        appropriations to those funds are: $700,000,000 for
8        fiscal year 2013 and $100,000,000 for fiscal year 2014
9        and each fiscal year thereafter.
10            (B) Bills for Medical Assistance services rendered
11        in a particular fiscal year, but received and recorded
12        by the Department of Healthcare and Family Services
13        after June 30th of that fiscal year, may be paid from
14        either appropriations for that fiscal year or future
15        fiscal year appropriations for Medical Assistance.
16        Such payments shall not be subject to the requirements
17        of subparagraph (A).
18            (C) Medical Assistance bills received by the
19        Department of Healthcare and Family Services in a
20        particular fiscal year, but subject to payment amount
21        adjustments in a future fiscal year may be paid from a
22        future fiscal year's appropriation for Medical
23        Assistance. Such payments shall not be subject to the
24        requirements of subparagraph (A).
25            (D) Medical Assistance payments made by the
26        Department of Healthcare and Family Services from

 

 

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1        funds other than those specifically referenced in
2        subparagraph (A) may be made from appropriations for
3        those purposes for any fiscal year without regard to
4        the fact that the Medical Assistance services being
5        compensated for by such payment may have been rendered
6        in a prior fiscal year. Such payments shall not be
7        subject to the requirements of subparagraph (A).
8        (3) Extended lapse period for Department of Healthcare
9    and Family Services Medical Assistance payments.
10    Notwithstanding any other State law to the contrary,
11    outstanding Department of Healthcare and Family Services
12    Medical Assistance liabilities, as of June 30th, payable
13    from appropriations which have otherwise expired, may be
14    paid out of the expiring appropriations during the 6-month
15    period ending at the close of business on December 31st.
16    (l) The changes to this Section made by Public Act 97-691
17shall be effective for payment of Medical Assistance bills
18incurred in fiscal year 2013 and future fiscal years. The
19changes to this Section made by Public Act 97-691 shall not be
20applied to Medical Assistance bills incurred in fiscal year
212012 or prior fiscal years.
22    (m) The Comptroller must issue payments against
23outstanding liabilities that were received prior to the lapse
24period deadlines set forth in this Section as soon thereafter
25as practical, but no payment may be issued after the 4 months
26following the lapse period deadline without the signed

 

 

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1authorization of the Comptroller and the Governor.
2(Source: P.A. 97-75, eff. 6-30-11; 97-333, eff. 8-12-11;
397-691, eff. 7-1-12; 97-732, eff. 6-30-12; 97-932, eff.
48-10-12; 98-8, eff. 5-3-13; 98-24, eff. 6-19-13; 98-215, eff.
58-9-13; 98-463, eff. 8-16-13; 98-756, eff. 7-16-14.)
 
6    (30 ILCS 105/35)  (from Ch. 127, par. 167.03)
7    Sec. 35. As used in this Section, "state agency" is defined
8as provided in the Illinois State Auditing Act, except that
9this Section does not apply to state colleges and universities,
10the Illinois Mathematics and Science Academy, and their
11respective governing boards.
12    When any State agency receives a grant or contract from
13itself or another State agency from appropriated funds the
14recipient agency shall be restricted in the expenditure of
15these funds to the period during which the grantor agency was
16so restricted and to the terms and conditions under which such
17other agency received the appropriation, and to the terms,
18conditions and limitations of the appropriations to the other
19agency. For purposes of this Section, "interfund transfer"
20means the transfer of monies from one fund listed in the State
21Treasury to another fund. An "interfund transfer" shall not be
22considered an expenditure for purposes of this Section. No
23State agency may accept or expend funds under a grant or
24contract for any purpose, program or activity not within the
25scope of the agency's powers and duties under Illinois law.

 

 

SB0749- 21 -LRB100 05859 RJF 15884 b

1(Source: P.A. 88-9.)
 
2    Section 25. The Illinois Grant Funds Recovery Act is
3amended by adding Section 15.5 as follows:
 
4    (30 ILCS 705/15.5 new)
5    Sec. 15.5. Recommendations of the Illinois Single Audit
6Commission regarding the elimination and recovery of improper
7payments. The Illinois Single Audit Commission, in conjunction
8with the Governor's Office of Management and Budget, shall
9convene a subcommittee of the Commission to research and
10provide recommendations to the General Assembly regarding the
11adoption of legislation in accordance with the federal Improper
12Payments Elimination and Recovery Improvement Act of 2012. The
13subcommittee's recommendations shall be included in the Annual
14Report of the Commission to be submitted to the General
15Assembly on January 1, 2018.
 
16    Section 30. The Grant Accountability and Transparency Act
17is amended by changing Sections 15, 25, 50, 55, and 95 and by
18adding Sections 105, 110, 115, 120, 125, and 130 as follows:
 
19    (30 ILCS 708/15)
20    (Section scheduled to be repealed on July 16, 2020)
21    Sec. 15. Definitions. As used in this Act:
22    "Allowable cost" means a cost allowable to a project if:

 

 

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1        (1) the costs are reasonable and necessary for the
2    performance of the award;
3        (2) the costs are allocable to the specific project;
4        (3) the costs are treated consistently in like
5    circumstances to both federally-financed and other
6    activities of the non-federal entity;
7        (4) the costs conform to any limitations of the cost
8    principles or the sponsored agreement;
9        (5) the costs are accorded consistent treatment; a cost
10    may not be assigned to a State or federal award as a direct
11    cost if any other cost incurred for the same purpose in
12    like circumstances has been allocated to the award as an
13    indirect cost;
14        (6) the costs are determined to be in accordance with
15    generally accepted accounting principles;
16        (7) the costs are not included as a cost or used to
17    meet federal cost-sharing or matching requirements of any
18    other program in either the current or prior period;
19        (8) the costs of one State or federal grant are not
20    used to meet the match requirements of another State or
21    federal grant; and
22        (9) the costs are adequately documented.
23    "Auditee" means any non-federal entity that expends State
24or federal awards that must be audited.
25    "Auditor" means an auditor who is a public accountant or a
26federal, State, or local government audit organization that

 

 

SB0749- 23 -LRB100 05859 RJF 15884 b

1meets the general standards specified in generally-accepted
2government auditing standards. "Auditor" does not include
3internal auditors of nonprofit organizations.
4    "Auditor General" means the Auditor General of the State of
5Illinois.
6    "Award" means financial assistance that provides support
7or stimulation to accomplish a public purpose. "Awards" include
8grants and other agreements in the form of money, or property
9in lieu of money, by the State or federal government to an
10eligible recipient. "Award" does not include: technical
11assistance that provides services instead of money; other
12assistance in the form of loans, loan guarantees, interest
13subsidies, or insurance; direct payments of any kind to
14individuals; or contracts that must be entered into and
15administered under State or federal procurement laws and
16regulations.
17    "Budget" means the financial plan for the project or
18program that the awarding agency or pass-through entity
19approves during the award process or in subsequent amendments
20to the award. It may include the State or federal and
21non-federal share or only the State or federal share, as
22determined by the awarding agency or pass-through entity.
23    "Catalog of Federal Domestic Assistance" or "CFDA" means a
24database that helps the federal government track all programs
25it has domestically funded.
26    "Catalog of Federal Domestic Assistance number" or "CFDA

 

 

SB0749- 24 -LRB100 05859 RJF 15884 b

1number" means the number assigned to a federal program in the
2CFDA.
3    "Catalog of State Financial Assistance" means the single,
4authoritative, statewide, comprehensive source document of
5State financial assistance program information maintained by
6the Governor's Office of Management and Budget.
7    "Catalog of State Financial Assistance Number" means the
8number assigned to a State program in the Catalog of State
9Financial Assistance. The first 3 digits represent the State
10agency number and the last 4 digits represent the program.
11    "Cluster of programs" means a grouping of closely related
12programs that share common compliance requirements. The types
13of clusters of programs are research and development, student
14financial aid, and other clusters. A "cluster of programs"
15shall be considered as one program for determining major
16programs and, with the exception of research and development,
17whether a program-specific audit may be elected.
18    "Cognizant agency for audit" means the federal agency
19designated to carry out the responsibilities described in 2 CFR
20200.513(a).
21    "Contract" means a legal instrument by which a non-federal
22entity purchases property or services needed to carry out the
23project or program under an award. "Contract" does not include
24a legal instrument, even if the non-federal entity considers it
25a contract, when the substance of the transaction meets the
26definition of an award or subaward.

 

 

SB0749- 25 -LRB100 05859 RJF 15884 b

1    "Contractor" means an entity that receives a contract.
2    "Cooperative agreement" means a legal instrument of
3financial assistance between an awarding agency or
4pass-through entity and a non-federal entity that:
5        (1) is used to enter into a relationship with the
6    principal purpose of transferring anything of value from
7    the awarding agency or pass-through entity to the
8    non-federal entity to carry out a public purpose authorized
9    by law, but is not used to acquire property or services for
10    the awarding agency's or pass-through entity's direct
11    benefit or use; and
12        (2) is distinguished from a grant in that it provides
13    for substantial involvement between the awarding agency or
14    pass-through entity and the non-federal entity in carrying
15    out the activity contemplated by the award.
16    "Cooperative agreement" does not include a cooperative
17research and development agreement, nor an agreement that
18provides only direct cash assistance to an individual, a
19subsidy, a loan, a loan guarantee, or insurance.
20    "Corrective action" means action taken by the auditee that
21(i) corrects identified deficiencies, (ii) produces
22recommended improvements, or (iii) demonstrates that audit
23findings are either invalid or do not warrant auditee action.
24    "Cost objective" means a program, function, activity,
25award, organizational subdivision, contract, or work unit for
26which cost data is desired and for which provision is made to

 

 

SB0749- 26 -LRB100 05859 RJF 15884 b

1accumulate and measure the cost of processes, products, jobs,
2and capital projects. A "cost objective" may be a major
3function of the non-federal entity, a particular service or
4project, an award, or an indirect cost activity.
5    "Cost sharing" means the portion of project costs not paid
6by State or federal funds, unless otherwise authorized by
7statute.
8    "Development" is the systematic use of knowledge and
9understanding gained from research directed toward the
10production of useful materials, devices, systems, or methods,
11including design and development of prototypes and processes.
12    "Data Universal Numbering System number" means the 9-digit
13number established and assigned by Dun and Bradstreet, Inc. to
14uniquely identify entities and, under federal law, is required
15for non-federal entities to apply for, receive, and report on a
16federal award.
17    "Direct costs" means costs that can be identified
18specifically with a particular final cost objective, such as a
19State or federal or federal pass-through award or a particular
20sponsored project, an instructional activity, or any other
21institutional activity, or that can be directly assigned to
22such activities relatively easily with a high degree of
23accuracy.
24    "Equipment" means tangible personal property (including
25information technology systems) having a useful life of more
26than one year and a per-unit acquisition cost that equals or

 

 

SB0749- 27 -LRB100 05859 RJF 15884 b

1exceeds the lesser of the capitalization level established by
2the non-federal entity for financial statement purposes, or
3$5,000.
4    "Executive branch" means that branch of State government
5that is under the jurisdiction of the Governor.
6    "Federal agency" has the meaning provided for "agency"
7under 5 U.S.C. 551(1) together with the meaning provided for
8"agency" by 5 U.S.C. 552(f).
9    "Federal award" means:
10        (1) the federal financial assistance that a
11    non-federal entity receives directly from a federal
12    awarding agency or indirectly from a pass-through entity;
13        (2) the cost-reimbursement contract under the Federal
14    Acquisition Regulations that a non-federal entity receives
15    directly from a federal awarding agency or indirectly from
16    a pass-through entity; or
17        (3) the instrument setting forth the terms and
18    conditions when the instrument is the grant agreement,
19    cooperative agreement, other agreement for assistance
20    covered in paragraph (b) of 20 CFR 200.40, or the
21    cost-reimbursement contract awarded under the Federal
22    Acquisition Regulations.
23    "Federal award" does not include other contracts that a
24federal agency uses to buy goods or services from a contractor
25or a contract to operate federal government owned,
26contractor-operated facilities.

 

 

SB0749- 28 -LRB100 05859 RJF 15884 b

1    "Federal awarding agency" means the federal agency that
2provides a federal award directly to a non-federal entity.
3    "Federal interest" means, for purposes of 2 CFR 200.329 or
4when used in connection with the acquisition or improvement of
5real property, equipment, or supplies under a federal award,
6the dollar amount that is the product of the federal share of
7total project costs and current fair market value of the
8property, improvements, or both, to the extent the costs of
9acquiring or improving the property were included as project
10costs.
11    "Federal program" means any of the following:
12        (1) All federal awards which are assigned a single
13    number in the CFDA.
14        (2) When no CFDA number is assigned, all federal awards
15    to non-federal entities from the same agency made for the
16    same purpose should be combined and considered one program.
17        (3) Notwithstanding paragraphs (1) and (2) of this
18    definition, a cluster of programs. The types of clusters of
19    programs are:
20            (A) research and development;
21            (B) student financial aid; and
22            (C) "other clusters", as described in the
23        definition of "cluster of programs".
24    "Federal share" means the portion of the total project
25costs that are paid by federal funds.
26    "Final cost objective" means a cost objective which has

 

 

SB0749- 29 -LRB100 05859 RJF 15884 b

1allocated to it both direct and indirect costs and, in the
2non-federal entity's accumulation system, is one of the final
3accumulation points, such as a particular award, internal
4project, or other direct activity of a non-federal entity.
5    "Financial assistance" means the following:
6        (1) For grants and cooperative agreements, "financial
7    assistance" means assistance that non-federal entities
8    receive or administer in the form of:
9            (A) grants;
10            (B) cooperative agreements;
11            (C) non-cash contributions or donations of
12        property, including donated surplus property;
13            (D) direct appropriations;
14            (E) food commodities; and
15            (F) other financial assistance, except assistance
16        listed in paragraph (2) of this definition.
17        (2) "Financial assistance" includes assistance that
18    non-federal entities receive or administer in the form of
19    loans, loan guarantees, interest subsidies, and insurance.
20        (3) "Financial assistance" does not include amounts
21    received as reimbursement for services rendered to
22    individuals.
23    "Fixed amount awards" means a type of grant agreement under
24which the awarding agency or pass-through entity provides a
25specific level of support without regard to actual costs
26incurred under the award. "Fixed amount awards" reduce some of

 

 

SB0749- 30 -LRB100 05859 RJF 15884 b

1the administrative burden and record-keeping requirements for
2both the non-federal entity and awarding agency or pass-through
3entity. Accountability is based primarily on performance and
4results.
5    "Foreign public entity" means:
6        (1) a foreign government or foreign governmental
7    entity;
8        (2) a public international organization that is
9    entitled to enjoy privileges, exemptions, and immunities
10    as an international organization under the International
11    Organizations Immunities Act (22 U.S.C. 288-288f);
12        (3) an entity owned, in whole or in part, or controlled
13    by a foreign government; or
14        (4) any other entity consisting wholly or partially of
15    one or more foreign governments or foreign governmental
16    entities.
17    "Foreign organization" means an entity that is:
18        (1) a public or private organization located in a
19    country other than the United States and its territories
20    that are subject to the laws of the country in which it is
21    located, irrespective of the citizenship of project staff
22    or place of performance;
23        (2) a private nongovernmental organization located in
24    a country other than the United States that solicits and
25    receives cash contributions from the general public;
26        (3) a charitable organization located in a country

 

 

SB0749- 31 -LRB100 05859 RJF 15884 b

1    other than the United States that is nonprofit and tax
2    exempt under the laws of its country of domicile and
3    operation, but is not a university, college, accredited
4    degree-granting institution of education, private
5    foundation, hospital, organization engaged exclusively in
6    research or scientific activities, church, synagogue,
7    mosque, or other similar entity organized primarily for
8    religious purposes; or
9        (4) an organization located in a country other than the
10    United States not recognized as a Foreign Public Entity.
11    "Generally Accepted Accounting Principles" has the meaning
12provided in accounting standards issued by the Government
13Accounting Standards Board and the Financial Accounting
14Standards Board.
15    "Generally Accepted Government Auditing Standards" means
16generally accepted government auditing standards issued by the
17Comptroller General of the United States that are applicable to
18financial audits.
19    "Grant agreement" means a legal instrument of financial
20assistance between an awarding agency or pass-through entity
21and a non-federal entity that:
22        (1) is used to enter into a relationship, the principal
23    purpose of which is to transfer anything of value from the
24    awarding agency or pass-through entity to the non-federal
25    entity to carry out a public purpose authorized by law and
26    not to acquire property or services for the awarding agency

 

 

SB0749- 32 -LRB100 05859 RJF 15884 b

1    or pass-through entity's direct benefit or use; and
2        (2) is distinguished from a cooperative agreement in
3    that it does not provide for substantial involvement
4    between the awarding agency or pass-through entity and the
5    non-federal entity in carrying out the activity
6    contemplated by the award.
7    "Grant agreement" does not include an agreement that
8provides only direct cash assistance to an individual, a
9subsidy, a loan, a loan guarantee, or insurance.
10    "Grant application" means a specified form that is
11completed by a non-federal entity in connection with a request
12for a specific funding opportunity or a request for financial
13support of a project or activity.
14    "Hospital" means a facility licensed as a hospital under
15the law of any state or a facility operated as a hospital by
16the United States, a state, or a subdivision of a state.
17    "Illinois Debarred and Suspended List" means the list
18maintained by the Governor's Office of Management and Budget
19that contains the names of those individuals and entities that
20are ineligible, either temporarily or permanently, from
21receiving an award of grant funds from the State.
22    "Indian tribe" (or "federally recognized Indian tribe")
23means any Indian tribe, band, nation, or other organized group
24or community, including any Alaska Native village or regional
25or village corporation as defined in or established pursuant to
26the federal Alaska Native Claims Settlement Act (43 U.S.C.

 

 

SB0749- 33 -LRB100 05859 RJF 15884 b

11601, et seq.) that is recognized as eligible for the special
2programs and services provided by the United States to Indians
3because of their status as Indians under 25 U.S.C. 450b(e), as
4set forth in the annually published Bureau of Indian Affairs
5list of Indian Entities Recognized and Eligible to Receive
6Services.
7    "Indirect cost" means those costs incurred for a common or
8joint purpose benefitting more than one cost objective and not
9readily assignable to the cost objectives specifically
10benefitted without effort disproportionate to the results
11achieved.
12    "Inspector General" means the Office of the Executive
13Inspector General for Executive branch agencies.
14    "Loan" means a State or federal loan or loan guarantee
15received or administered by a non-federal entity. "Loan" does
16not include a "program income" as defined in 2 CFR 200.80.
17    "Loan guarantee" means any State or federal government
18guarantee, insurance, or other pledge with respect to the
19payment of all or a part of the principal or interest on any
20debt obligation of a non-federal borrower to a non-federal
21lender, but does not include the insurance of deposits, shares,
22or other withdrawable accounts in financial institutions.
23    "Local government" has the meaning provided for the term
24"units of local government" under Section 1 of Article VII of
25the Illinois Constitution and includes school districts.
26    "Major program" means a federal program determined by the

 

 

SB0749- 34 -LRB100 05859 RJF 15884 b

1auditor to be a major program in accordance with 2 CFR 200.518
2or a program identified as a major program by a federal
3awarding agency or pass-through entity in accordance with 2 CFR
4200.503(e).
5    "Non-federal entity" means a state, local government,
6Indian tribe, institution of higher education, or
7organization, whether nonprofit or for-profit, that carries
8out a State or federal award as a recipient or subrecipient.
9    "Nonprofit organization" means any corporation, trust,
10association, cooperative, or other organization, not including
11institutions of higher education, that:
12        (1) is operated primarily for scientific, educational,
13    service, charitable, or similar purposes in the public
14    interest;
15        (2) is not organized primarily for profit; and
16        (3) uses net proceeds to maintain, improve, or expand
17    the operations of the organization.
18    "Obligations", when used in connection with a non-federal
19entity's utilization of funds under an award, means orders
20placed for property and services, contracts and subawards made,
21and similar transactions during a given period that require
22payment by the non-federal entity during the same or a future
23period.
24    "Office of Management and Budget" means the Office of
25Management and Budget of the Executive Office of the President.
26    "Other clusters" has the meaning provided by the federal

 

 

SB0749- 35 -LRB100 05859 RJF 15884 b

1Office of Management and Budget in the compliance supplement or
2has the meaning as it is designated by a state for federal
3awards the state provides to its subrecipients that meet the
4definition of a cluster of programs. When designating an "other
5cluster", a state must identify the federal awards included in
6the cluster and advise the subrecipients of compliance
7requirements applicable to the cluster.
8    "Oversight agency for audit" means the federal awarding
9agency that provides the predominant amount of funding directly
10to a non-federal entity not assigned a cognizant agency for
11audit. When there is no direct funding, the awarding agency
12that is the predominant source of pass-through funding must
13assume the oversight responsibilities. The duties of the
14oversight agency for audit and the process for any
15reassignments are described in 2 CFR 200.513(b).
16    "Pass-through entity" means a non-federal entity that
17provides a subaward to a subrecipient to carry out part of a
18program.
19    "Private award" means an award from a person or entity
20other than a State or federal entity. Private awards are not
21subject to the provisions of this Act.
22    "Property" means real property or personal property.
23    "Project cost" means total allowable costs incurred under
24an award and all required cost sharing and voluntary committed
25cost sharing, including third-party contributions.
26    "Public institutions of higher education" has the meaning

 

 

SB0749- 36 -LRB100 05859 RJF 15884 b

1provided in Section 1 of the Board of Higher Education Act.
2    "Recipient" means a non-federal entity that receives an
3award directly from an awarding agency to carry out an activity
4under a program. "Recipient" does not include subrecipients.
5    "Research and Development" means all research activities,
6both basic and applied, and all development activities that are
7performed by non-federal entities.
8    "Single Audit Act" means the federal Single Audit Act
9Amendments of 1996 (31 U.S.C. 7501-7507).
10    "State agency" means an Executive branch agency. For
11purposes of this Act, "State agency" does not include public
12institutions of higher education.
13    "State award" means the financial assistance that a
14non-federal entity receives from the State and that is funded
15with either State funds or federal funds; in the latter case,
16the State is acting as a pass-through entity.
17    "State awarding agency" means a State agency that provides
18an award to a non-federal entity.
19    "State grant-making agency" has the same meaning as "State
20awarding agency".
21    "State interest" means the acquisition or improvement of
22real property, equipment, or supplies under a State award, the
23dollar amount that is the product of the State share of the
24total project costs and current fair market value of the
25property, improvements, or both, to the extent the costs of
26acquiring or improving the property were included as project

 

 

SB0749- 37 -LRB100 05859 RJF 15884 b

1costs.
2    "State program" means any of the following:
3        (1) All State awards which are assigned a single number
4    in the Catalog of State Financial Assistance.
5        (2) When no Catalog of State Financial Assistance
6    number is assigned, all State awards to non-federal
7    entities from the same agency made for the same purpose are
8    considered one program.
9        (3) A cluster of programs as defined in this Section.
10    "State share" means the portion of the total project costs
11that are paid by State funds.
12    "Stop payment order" means a communication from a State
13grant-making agency to the Office of the Comptroller requesting
14the cessation of payments to a recipient or subrecipient as a
15result of the recipient's or subrecipient's failure to comply
16with one or more terms of the grant or subaward.
17    "Stop payment system" means the system maintained by the
18Office of the Comptroller which effects stop payment orders and
19the lifting of stop payment orders upon the direction of a
20State grant-making agency.
21    "Student Financial Aid" means federal awards under those
22programs of general student assistance, such as those
23authorized by Title IV of the Higher Education Act of 1965, as
24amended (20 U.S.C. 1070-1099d), that are administered by the
25United States Department of Education and similar programs
26provided by other federal agencies. "Student Financial Aid"

 

 

SB0749- 38 -LRB100 05859 RJF 15884 b

1does not include federal awards under programs that provide
2fellowships or similar federal awards to students on a
3competitive basis or for specified studies or research.
4    "Subaward" means a State or federal award provided by a
5pass-through entity to a subrecipient for the subrecipient to
6carry out part of a federal award received by the pass-through
7entity. "Subaward" does not include payments to a contractor or
8payments to an individual that is a beneficiary of a federal
9program. A "subaward" may be provided through any form of legal
10agreement, including an agreement that the pass-through entity
11considers a contract.
12    "Subrecipient" means a non-federal entity that receives a
13State or federal subaward from a pass-through entity to carry
14out part of a federal program. "Subrecipient" does not include
15an individual that is a beneficiary of such program. A
16"subrecipient" may also be a recipient of other State or
17federal awards directly from a State or federal awarding
18agency.
19    "Suspension" means a post-award action by the State or
20federal agency or pass-through entity that temporarily
21withdraws the State or federal agency's or pass-through
22entity's financial assistance sponsorship under an award,
23pending corrective action by the recipient or subrecipient or
24pending a decision to terminate the award.
25    "Uniform Administrative Requirements, Costs Principles,
26and Audit Requirements for Federal Awards" means those rules

 

 

SB0749- 39 -LRB100 05859 RJF 15884 b

1applicable to grants contained in 2 CFR 200.
2    "Voluntary committed cost sharing" means cost sharing
3specifically pledged on a voluntary basis in the proposal's
4budget or the award on the part of the non-federal entity and
5that becomes a binding requirement of the award.
6(Source: P.A. 98-706, eff. 7-16-14.)
 
7    (30 ILCS 708/25)
8    (Section scheduled to be repealed on July 16, 2020)
9    Sec. 25. Supplemental rules. On or before July 1, 2017, the
10Governor's Office of Management and Budget, with the advice and
11technical assistance of the Illinois Single Audit Commission,
12shall adopt supplemental rules pertaining to the following:
13        (1) Criteria to define mandatory formula-based grants
14    and discretionary grants.
15        (2) The award of one-year grants for new applicants.
16        (3) The award of competitive grants in 3-year terms
17    (one-year initial terms with the option to renew for up to
18    2 additional years) to coincide with the federal award.
19        (4) The issuance of grants, including:
20            (A) public notice of announcements of funding
21        opportunities;
22            (B) the development of uniform grant applications;
23            (C) State agency review of merit of proposals and
24        risk posed by applicants;
25            (D) specific conditions for individual recipients

 

 

SB0749- 40 -LRB100 05859 RJF 15884 b

1        (requiring the use of a fiscal agent and additional
2        corrective conditions);
3            (E) certifications and representations;
4            (F) pre-award costs;
5            (G) performance measures and statewide prioritized
6        goals under Section 50-25 of the State Budget Law of
7        the Civil Administrative Code of Illinois, commonly
8        referred to as "Budgeting for Results"; and
9            (H) for mandatory formula grants, the merit of the
10        proposal and the risk posed should result in additional
11        reporting, monitoring, or measures such as
12        reimbursement-basis only.
13        (5) The development of uniform budget requirements,
14    which shall include:
15            (A) mandatory submission of budgets as part of the
16        grant application process;
17            (B) mandatory requirements regarding contents of
18        the budget including, at a minimum, common detail line
19        items specified under guidelines issued by the
20        Governor's Office of Management and Budget;
21            (C) a requirement that the budget allow
22        flexibility to add lines describing costs that are
23        common for the services provided as outlined in the
24        grant application;
25            (D) a requirement that the budget include
26        information necessary for analyzing cost and

 

 

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1        performance for use in Budgeting for Results; and
2            (E) caps on the amount of salaries that may be
3        charged to grants based on the limitations imposed by
4        federal agencies.
5        (6) The development of pre-qualification requirements
6    for applicants, including the fiscal condition of the
7    organization and the provision of the following
8    information:
9            (A) organization name;
10            (B) Federal Employee Identification Number;
11            (C) Data Universal Numbering System (DUNS) number;
12            (D) fiscal condition;
13            (E) whether the applicant is in good standing with
14        the Secretary of State;
15            (F) past performance in administering grants;
16            (G) whether the applicant is or has ever been on
17        the Debarred and Suspended List maintained by the
18        Governor's Office of Management and Budget;
19            (H) whether the applicant is or has ever been on
20        the federal Excluded Parties List; and
21            (I) whether the applicant is or has ever been on
22        the Sanctioned Party List maintained by the Illinois
23        Department of Healthcare and Family Services.
24    Nothing in this Act affects the provisions of the Fiscal
25Control and Internal Auditing Act nor the requirement that the
26management of each State agency is responsible for maintaining

 

 

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1effective internal controls under that Act.
2    For public institutions of higher education, the
3provisions of this Section apply only to awards funded by State
4appropriations and federal pass-through awards from a State
5agency to public institutions of higher education.
6(Source: P.A. 98-706, eff. 7-16-14; 99-523, eff. 6-30-16.)
 
7    (30 ILCS 708/50)
8    (Section scheduled to be repealed on July 16, 2020)
9    Sec. 50. State grant-making agency responsibilities.
10    (a) The specific requirements and responsibilities of
11State grant-making agencies and non-federal entities are set
12forth in this Act. State agencies making State awards to
13non-federal entities must adopt by rule the language in 2 CFR
14200, Subpart C through Subpart F unless different provisions
15are required by law.
16    (b) Each State grant-making agency shall appoint a Chief
17Accountability Officer who shall serve as a liaison to the
18Grant Accountability and Transparency Unit and who shall be
19responsible for the State agency's implementation of and
20compliance with the rules.
21    (c) In order to effectively measure the performance of its
22recipients and subrecipients, each State grant-making agency
23shall:
24        (1) require its recipients and subrecipients to relate
25    financial data to performance accomplishments of the award

 

 

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1    and, when applicable, must require recipients and
2    subrecipients to provide cost information to demonstrate
3    cost-effective practices. The recipient's and
4    subrecipient's performance should be measured in a way that
5    will help the State agency to improve program outcomes,
6    share lessons learned, and spread the adoption of promising
7    practices; and
8        (2) provide recipients and subrecipients with clear
9    performance goals, indicators, and milestones and must
10    establish performance reporting frequency and content to
11    not only allow the State agency to understand the
12    recipient's progress, but also to facilitate
13    identification of promising practices among recipients and
14    subrecipients and build the evidence upon which the State
15    agency's program and performance decisions are made.
16    (c-5) Each State grant-making agency shall evaluate the
17compliance of its recipients and subrecipients within the terms
18of the grant or subaward and, where appropriate, shall request
19that the Office of the Comptroller issue a stop payment order
20in accordance with Section 105 of this Act.
21    (d) The Governor's Office of Management and Budget shall
22provide such advice and technical assistance to the State
23grant-making agencies as is necessary or indicated in order to
24ensure compliance with this Act.
25(Source: P.A. 98-706, eff. 7-16-14.)
 

 

 

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1    (30 ILCS 708/55)
2    (Section scheduled to be repealed on July 16, 2020)
3    Sec. 55. The Governor's Office of Management and Budget
4responsibilities.
5    (a) The Governor's Office of Management and Budget shall:
6        (1) provide technical assistance and interpretations
7    of policy requirements in order to ensure effective and
8    efficient implementation of this Act by State grant-making
9    agencies; and
10        (2) have authority to approve any exceptions to the
11    requirements of this Act and shall adopt rules governing
12    the criteria to be considered when an exception is
13    requested; exceptions shall only be made in particular
14    cases where adequate justification is presented.
15    (b) The Governor's Office of Management and Budget shall,
16on or before July 1, 2016, establish a centralized unit within
17the Governor's Office of Management and Budget. The centralized
18unit shall be known as the Grant Accountability and
19Transparency Unit and shall be funded with a portion of the
20administrative funds provided under existing and future State
21and federal pass-through grants. The amounts charged will be
22allocated based on the actual cost of the services provided to
23State grant-making agencies and public institutions of higher
24education in accordance with the applicable federal cost
25principles contained in 2 CFR 200 and this Act will not cause
26the reduction in the amount of any State or federal grant

 

 

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1awards that have been or will be directed towards State
2agencies or public institutions of higher education.
3    (c) The Governor's Office of Management and Budget, in
4conjunction with the Illinois Single Audit Commission, shall
5convene a subcommittee of the Commission to research and
6provide recommendations to the General Assembly regarding the
7adoption of legislation in accordance with the federal Improper
8Payments Elimination and Recovery Improvement Act of 2012. The
9subcommittee's recommendations shall be included in the Annual
10Report of the Commission to be submitted to the General
11Assembly on January 1, 2018.
12(Source: P.A. 98-706, eff. 7-16-14; 99-523, eff. 6-30-16.)
 
13    (30 ILCS 708/95)
14    (Section scheduled to be repealed on July 16, 2020)
15    Sec. 95. Annual report. Effective January 1, 2016 and each
16January 1 thereafter, the Governor's Office of Management and
17Budget, in conjunction with the Illinois Single Audit
18Commission, shall submit to the Governor and the General
19Assembly a report that demonstrates the efficiencies, cost
20savings, and reductions in fraud, waste, and abuse as a result
21of the implementation of this Act and the rules adopted by the
22Governor's Office of Management and Budget in accordance with
23the provisions of this Act. The report shall include, but not
24be limited to:
25        (1) the number of entities placed on the Illinois

 

 

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1    Debarred and Suspended List;
2        (2) any savings realized as a result of the
3    implementation of this Act;
4        (3) any reduction in the number of duplicative audit
5    report reviews audits;
6        (4) the number of persons trained to assist grantees
7    and subrecipients; and
8        (5) the number of grantees and subrecipients to whom a
9    fiscal agent was assigned.
10(Source: P.A. 98-706, eff. 7-16-14.)
 
11    (30 ILCS 708/105 new)
12    Sec. 105. Stop payment system.
13    (a) On or before July 1, 2018, the Governor's Office of
14Management and Budget shall adopt rules pertaining to the
15following:
16        (1) Factors to be considered in determining whether to
17    issue a stop payment order;
18        (2) Factors to be considered in determining whether a
19    stop payment order should be lifted; and
20        (3) Procedures for notification to the recipient or
21    subrecipient of the issuance of a stop payment order, the
22    lifting of a stop payment order, and any other related
23    information.
24    (b) On or before December 31, 2018, the Governor's Office
25of Management and Budget shall, in conjunction with State

 

 

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1grant-making agencies, adopt rules pertaining to the
2following:
3        (1) Policies regarding the issuance of stop payment
4    orders;
5        (2) Policies regarding the lifting of stop payment
6    orders;
7        (3) Policies regarding corrective actions required of
8    recipients and subrecipients in the event a stop payment
9    order is issued; and
10        (4) Policies regarding the coordination of
11    communications between the Office of the Comptroller and
12    State grant-making agencies regarding the issuance of stop
13    payment orders and the lifting of such orders.
14    (c) On or before July 1, 2019, the Office of the
15Comptroller shall have established a stop payment system that
16shall cause the temporary or permanent cessation of payments to
17a recipient or subrecipient in specified circumstances. Such a
18temporary or permanent cessation of payments will occur
19pursuant to a stop payment order issued by a State grant-making
20agency and implemented by the Office of the Comptroller.
21    (d) The State grant-making agency shall maintain a file
22pertaining to all stop payment orders which shall include, at a
23minimum:
24        (1) The notice to the recipient or subrecipient that a
25    stop payment order has been issued. The notice shall
26    include:

 

 

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1            (A) The name of the grant.
2            (B) The grant number.
3            (C) The name of the State agency that issued the
4        grant.
5            (D) The reason(s) for the stop payment order.
6            (E) Notification that the stop payment order
7        applies to all grants and contracts issued by the
8        State.
9            (F) Any other relevant information.
10        (2) The order lifting the stop payment order, if
11    applicable.
 
12    (30 ILCS 708/110 new)
13    Sec. 110. Documentation of award decisions. Each award that
14is granted pursuant to an application process must include
15documentation to support the award.
16    (a) For each State or federal pass-through award that is
17granted following an application process, the State
18grant-making agency shall create a grant award file. The grant
19award file shall contain, at a minimum:
20        (1) A description of the grant.
21        (2) The Notice of Opportunity.
22        (3) All applications received in response to the Notice
23    of Opportunity.
24        (4) Copies of any written communications between an
25    applicant and the State grant-making agency.

 

 

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1        (5) The criteria used to evaluate the applications.
2        (6) The scores assigned to each applicant according to
3    the criteria.
4        (7) A written determination, signed by an authorized
5    representative of the State grant-making agency, setting
6    forth the reason for the grant award decision.
7        (8) The Notice of Award.
8        (9) Any other pre-award documents.
9        (10) The grant agreement and any renewals, if
10    applicable;
11        (11) All post-award, administration, and close-out
12    documents relating to the grant.
13        (12) Any other information relevant to the grant award.
14    (b) The grant file shall not include trade secrets or other
15competitively sensitive, confidential, or proprietary
16information.
17    (c) Each grant file shall be maintained by the State
18grant-making agency and, subject to the provisions of the
19Freedom of Information Act, shall be available for public
20inspection and copying within 7 calendar days following award
21of the grant.
 
22    (30 ILCS 708/115 new)
23    Sec. 115. Certifications and representations. Unless
24prohibited by State or federal statute, regulation, or
25administrative rule, each State awarding agency or

 

 

SB0749- 50 -LRB100 05859 RJF 15884 b

1pass-through entity is authorized to require the recipient or
2subrecipient to submit certifications and representations
3required by State or federal statute, regulation, or
4administrative rule.
 
5    (30 ILCS 708/120 new)
6    Sec. 120. Required certifications. To assure that
7expenditures are proper and in accordance with the terms and
8conditions of the grant award and approved project budgets, all
9periodic and final financial reports, and all payment requests
10under the grant agreement, must include a certification, signed
11by an official who is authorized to legally bind the grantee or
12subrecipient, that reads as follows:
13        "By signing this report and/or payment request, I
14    certify to the best of my knowledge and belief that this
15    report is true, complete, and accurate; that the
16    expenditures, disbursements, and cash receipts are for the
17    purposes and objectives set forth in the terms and
18    conditions of the State or federal pass-through award; and
19    that supporting documentation has been submitted as
20    required by the grant agreement. I acknowledge that
21    approval for any item or expenditure described herein shall
22    be considered conditional subject to further review and
23    verification in accordance with the monitoring and records
24    retention provisions of the grant agreement. I am aware
25    that any false, fictitious, or fraudulent information, or

 

 

SB0749- 51 -LRB100 05859 RJF 15884 b

1    the omission of any material fact, may subject me to
2    criminal, civil or administrative penalties for fraud,
3    false statements, false claims or otherwise. 18 U.S.C.
4    §1001; 31 U.S.C. §§3729-3730 and §§3801-3812; 30 ILCS 708/
5    120."
 
6    (30 ILCS 708/125 new)
7    Sec. 125. Expenditures prior to grant execution; reporting
8requirements.
9    (a) In the event that a recipient or subrecipient incurs
10expenses related to the grant award prior to the execution of
11the grant agreement but within the term of the grant, and the
12grant agreement is executed more than 30 days after the
13effective date of the grant, the recipient or subrecipient must
14submit to the State grant-making agency a report that accounts
15for eligible grant expenditures and project activities from the
16effective date of the grant up to and including the date of
17execution of the grant agreement.
18    (b) The recipient or subrecipient must submit the report to
19the State grant-making agency within 30 days of execution of
20the grant agreement.
21    (c) Only those expenses that are reasonable, allowable, and
22in furtherance of the purpose of the grant award shall be
23reimbursed.
24    (d) The State grant-making agency must approve the report
25prior to issuing any payment to the recipient or subrecipient.
 

 

 

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1    (30 ILCS 708/130 new)
2    Sec. 130. Travel costs.
3    (a) General. Travel costs are the expenses for
4transportation, lodging, subsistence, and related items
5incurred by the employees of the recipient or subrecipient who
6are in travel status on official business of the recipient or
7subrecipient. Such costs may only be charged to a State or
8federal pass-through grant on a per diem or mileage basis in
9accordance with the rules of the Governor's Travel Control
10Board.
11    (b) Lodging and subsistence. Costs incurred for travel,
12including costs of lodging, other subsistence, and incidental
13expenses, must be considered reasonable and otherwise
14allowable only to the extent such costs do not exceed charges
15normally allowed by the rules of the Governor's Travel Control
16Board. In addition, if these costs are charged directly to the
17State or federal pass-through award documentation must justify
18that:
19        (1) Participation of the individual is necessary to the
20    State or federal pass-through award; and
21        (2) The costs are reasonable and consistent with the
22    rules of the Governor's Travel Control Board.
23    (c) Commercial air travel.
24        (1) Airfare costs in excess of the basic least
25    expensive unrestricted accommodations class offered by

 

 

SB0749- 53 -LRB100 05859 RJF 15884 b

1    commercial airlines are unallowable except when such
2    accommodations would:
3            (i) Require circuitous routing;
4            (ii) Require travel during unreasonable hours;
5            (iii) Excessively prolong travel;
6            (iv) Result in additional costs that would offset
7        the transportation savings; or
8            (v) Offer accommodations not reasonably adequate
9        for the traveler's medical needs.".
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.

 

 

SB0749- 54 -LRB100 05859 RJF 15884 b

1 INDEX
2 Statutes amended in order of appearance
3    5 ILCS 430/5-20
4    15 ILCS 405/28 new
5    20 ILCS 3005/2.11 new
6    20 ILCS 3005/2.12 new
7    30 ILCS 105/25from Ch. 127, par. 161
8    30 ILCS 105/35from Ch. 127, par. 167.03
9    30 ILCS 705/15.5 new
10    30 ILCS 708/15
11    30 ILCS 708/25
12    30 ILCS 708/50
13    30 ILCS 708/55
14    30 ILCS 708/95
15    30 ILCS 708/105 new
16    30 ILCS 708/110 new
17    30 ILCS 708/115 new
18    30 ILCS 708/120 new
19    30 ILCS 708/125 new
20    30 ILCS 708/130 new