100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB2540

 

Introduced 2/6/2018, 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 appropriated funds may only be expended during the fiscal year for which they were appropriated. 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 awarded grants. Sets forth provisions concerning the travel costs incurred by the employees of the recipient or subrecipient of an awarded grant. Requires nonprofit organizations to maintain State grant funds in an account which is separate from non-grant funds. Makes conforming changes. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2540LRB100 15500 RJF 30524 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, 2019, 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, 2020, 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, 2019.
 
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 in this Section, appropriated funds may only be
7expended during the fiscal year for which they were
8appropriated (including any applicable lapse period),
9regardless of whether those funds are subject to interfund
10transfers or are deposited for use in a non-appropriated fund,
11including those made through the use of vouchers or drafts, or
12warrants ordered by the State Comptroller and paid by the
13Treasurer. For purposes of this Section, "interfund transfer"
14means the transfer of monies from one fund listed in the State
15Treasury to another fund. An "interfund transfer" shall not be
16considered an expenditure for purposes of this Section.
17    (b) Outstanding liabilities as of June 30, payable from
18appropriations which have otherwise expired, may be paid out of
19the expiring appropriations during the 2-month period ending at
20the close of business on August 31. Any service involving
21professional or artistic skills or any personal services by an
22employee whose compensation is subject to income tax
23withholding must be performed as of June 30 of the fiscal year
24in order to be considered an "outstanding liability as of June
2530" that is thereby eligible for payment out of the expiring
26appropriation.

 

 

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

 

 

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1conclusion of the lapse period for fiscal year 2011, and
2interest penalties payable on those liabilities under the State
3Prompt Payment Act, may be paid out of the expiring
4appropriations until December 31, 2011, without regard to the
5fiscal year in which the payment is made, as long as vouchers
6for the liabilities are received by the Comptroller no later
7than August 31, 2011.
8    (b-2.6) All outstanding liabilities as of June 30, 2012,
9payable from appropriations that would otherwise expire at the
10conclusion of the lapse period for fiscal year 2012, and
11interest penalties payable on those liabilities under the State
12Prompt Payment Act, may be paid out of the expiring
13appropriations until December 31, 2012, without regard to the
14fiscal year in which the payment is made, as long as vouchers
15for the liabilities are received by the Comptroller no later
16than August 31, 2012.
17    (b-2.6a) All outstanding liabilities as of June 30, 2017,
18payable from appropriations that would otherwise expire at the
19conclusion of the lapse period for fiscal year 2017, and
20interest penalties payable on those liabilities under the State
21Prompt Payment Act, may be paid out of the expiring
22appropriations until December 31, 2017, without regard to the
23fiscal year in which the payment is made, as long as vouchers
24for the liabilities are received by the Comptroller no later
25than September 30, 2017.
26    (b-2.7) For fiscal years 2012, 2013, and 2014, interest

 

 

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1penalties payable under the State Prompt Payment Act associated
2with a voucher for which payment is issued after June 30 may be
3paid out of the next fiscal year's appropriation. The future
4year appropriation must be for the same purpose and from the
5same fund as the original payment. An interest penalty voucher
6submitted against a future year appropriation must be submitted
7within 60 days after the issuance of the associated voucher,
8and the Comptroller must issue the interest payment within 60
9days after acceptance of the interest voucher.
10    (b-3) Medical payments may be made by the Department of
11Veterans' Affairs from its appropriations for those purposes
12for any fiscal year, without regard to the fact that the
13medical services being compensated for by such payment may have
14been rendered in a prior fiscal year, except as required by
15subsection (j) of this Section. Beginning on June 30, 2021,
16medical payments payable from appropriations that have
17otherwise expired may be paid out of the expiring appropriation
18during the 4-month period ending at the close of business on
19October 31.
20    (b-4) Medical payments and child care payments may be made
21by the Department of Human Services (as successor to the
22Department of Public Aid) from appropriations for those
23purposes for any fiscal year, without regard to the fact that
24the medical or child care services being compensated for by
25such payment may have been rendered in a prior fiscal year; and
26payments may be made at the direction of the Department of

 

 

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

 

 

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1    (b-6) Additionally, payments may be made by the Department
2of Human Services from its appropriations, or any other State
3agency from its appropriations with the approval of the
4Department of Human Services, from the Immigration Reform and
5Control Fund for purposes authorized pursuant to the
6Immigration Reform and Control Act of 1986, without regard to
7any fiscal year limitations, except as required by subsection
8(j) of this Section. Beginning on June 30, 2021, payments made
9by the Department of Human Services from the Immigration Reform
10and Control Fund for purposes authorized pursuant to the
11Immigration Reform and Control Act of 1986 payable from
12appropriations that have otherwise expired may be paid out of
13the expiring appropriation during the 4-month period ending at
14the close of business on October 31.
15    (b-7) Payments may be made in accordance with a plan
16authorized by paragraph (11) or (12) of Section 405-105 of the
17Department of Central Management Services Law from
18appropriations for those payments without regard to fiscal year
19limitations.
20    (b-8) Reimbursements to eligible airport sponsors for the
21construction or upgrading of Automated Weather Observation
22Systems may be made by the Department of Transportation from
23appropriations for those purposes for any fiscal year, without
24regard to the fact that the qualification or obligation may
25have occurred in a prior fiscal year, provided that at the time
26the expenditure was made the project had been approved by the

 

 

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1Department of Transportation prior to June 1, 2012 and, as a
2result of recent changes in federal funding formulas, can no
3longer receive federal reimbursement.
4    (b-9) Medical payments not exceeding $150,000,000 may be
5made by the Department on Aging from its appropriations
6relating to the Community Care Program for fiscal year 2014,
7without regard to the fact that the medical services being
8compensated for by such payment may have been rendered in a
9prior fiscal year, provided the payments are made on a
10fee-for-service basis consistent with requirements established
11for Medicaid reimbursement by the Department of Healthcare and
12Family Services, except as required by subsection (j) of this
13Section.
14    (c) Further, payments may be made by the Department of
15Public Health and the Department of Human Services (acting as
16successor to the Department of Public Health under the
17Department of Human Services Act) from their respective
18appropriations for grants for medical care to or on behalf of
19premature and high-mortality risk infants and their mothers and
20for grants for supplemental food supplies provided under the
21United States Department of Agriculture Women, Infants and
22Children Nutrition Program, for any fiscal year without regard
23to the fact that the services being compensated for by such
24payment may have been rendered in a prior fiscal year, except
25as required by subsection (j) of this Section. Beginning on
26June 30, 2021, payments made by the Department of Public Health

 

 

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1and the Department of Human Services 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 payable from appropriations that
7have otherwise expired may be paid out of the expiring
8appropriations during the 4-month period ending at the close of
9business on October 31.
10    (d) The Department of Public Health and the Department of
11Human Services (acting as successor to the Department of Public
12Health under the Department of Human Services Act) shall each
13annually submit to the State Comptroller, Senate President,
14Senate Minority Leader, Speaker of the House, House Minority
15Leader, and the respective Chairmen and Minority Spokesmen of
16the Appropriations Committees of the Senate and the House, on
17or before December 31, a report of fiscal year funds used to
18pay for services provided in any prior fiscal year. This report
19shall document by program or service category those
20expenditures from the most recently completed fiscal year used
21to pay for services provided in prior fiscal years.
22    (e) The Department of Healthcare and Family Services, the
23Department of Human Services (acting as successor to the
24Department of Public Aid), and the Department of Human Services
25making fee-for-service payments relating to substance abuse
26treatment services provided during a previous fiscal year shall

 

 

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1each annually submit to the State Comptroller, Senate
2President, Senate Minority Leader, Speaker of the House, House
3Minority Leader, the respective Chairmen and Minority
4Spokesmen of the Appropriations Committees of the Senate and
5the House, on or before November 30, a report that shall
6document by program or service category those expenditures from
7the most recently completed fiscal year used to pay for (i)
8services provided in prior fiscal years and (ii) services for
9which claims were received in prior fiscal years.
10    (f) The Department of Human Services (as successor to the
11Department of Public Aid) shall annually submit to the State
12Comptroller, Senate President, Senate Minority Leader, Speaker
13of the House, House Minority Leader, and the respective
14Chairmen and Minority Spokesmen of the Appropriations
15Committees of the Senate and the House, on or before December
1631, a report of fiscal year funds used to pay for services
17(other than medical care) provided in any prior fiscal year.
18This report shall document by program or service category those
19expenditures from the most recently completed fiscal year used
20to pay for services provided in prior fiscal years.
21    (g) In addition, each annual report required to be
22submitted by the Department of Healthcare and Family Services
23under subsection (e) shall include the following information
24with respect to the State's Medicaid program:
25        (1) Explanations of the exact causes of the variance
26    between the previous year's estimated and actual

 

 

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1    liabilities.
2        (2) Factors affecting the Department of Healthcare and
3    Family Services' liabilities, including but not limited to
4    numbers of aid recipients, levels of medical service
5    utilization by aid recipients, and inflation in the cost of
6    medical services.
7        (3) The results of the Department's efforts to combat
8    fraud and abuse.
9    (h) As provided in Section 4 of the General Assembly
10Compensation Act, any utility bill for service provided to a
11General Assembly member's district office for a period
12including portions of 2 consecutive fiscal years may be paid
13from funds appropriated for such expenditure in either fiscal
14year.
15    (i) An agency which administers a fund classified by the
16Comptroller as an internal service fund may issue rules for:
17        (1) billing user agencies in advance for payments or
18    authorized inter-fund transfers based on estimated charges
19    for goods or services;
20        (2) issuing credits, refunding through inter-fund
21    transfers, or reducing future inter-fund transfers during
22    the subsequent fiscal year for all user agency payments or
23    authorized inter-fund transfers received during the prior
24    fiscal year which were in excess of the final amounts owed
25    by the user agency for that period; and
26        (3) issuing catch-up billings to user agencies during

 

 

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1    the subsequent fiscal year for amounts remaining due when
2    payments or authorized inter-fund transfers received from
3    the user agency during the prior fiscal year were less than
4    the total amount owed for that period.
5User agencies are authorized to reimburse internal service
6funds for catch-up billings by vouchers drawn against their
7respective appropriations for the fiscal year in which the
8catch-up billing was issued or by increasing an authorized
9inter-fund transfer during the current fiscal year. For the
10purposes of this Act, "inter-fund transfers" means transfers
11without the use of the voucher-warrant process, as authorized
12by Section 9.01 of the State Comptroller Act.
13    (i-1) Beginning on July 1, 2021, all outstanding
14liabilities, not payable during the 4-month lapse period as
15described in subsections (b-1), (b-3), (b-4), (b-5), (b-6), and
16(c) of this Section, that are made from appropriations for that
17purpose for any fiscal year, without regard to the fact that
18the services being compensated for by those payments may have
19been rendered in a prior fiscal year, are limited to only those
20claims that have been incurred but for which a proper bill or
21invoice as defined by the State Prompt Payment Act has not been
22received by September 30th following the end of the fiscal year
23in which the service was rendered.
24    (j) Notwithstanding any other provision of this Act, the
25aggregate amount of payments to be made without regard for
26fiscal year limitations as contained in subsections (b-1),

 

 

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1(b-3), (b-4), (b-5), (b-6), and (c) of this Section, and
2determined by using Generally Accepted Accounting Principles,
3shall not exceed the following amounts:
4        (1) $6,000,000,000 for outstanding liabilities related
5    to fiscal year 2012;
6        (2) $5,300,000,000 for outstanding liabilities related
7    to fiscal year 2013;
8        (3) $4,600,000,000 for outstanding liabilities related
9    to fiscal year 2014;
10        (4) $4,000,000,000 for outstanding liabilities related
11    to fiscal year 2015;
12        (5) $3,300,000,000 for outstanding liabilities related
13    to fiscal year 2016;
14        (6) $2,600,000,000 for outstanding liabilities related
15    to fiscal year 2017;
16        (7) $2,000,000,000 for outstanding liabilities related
17    to fiscal year 2018;
18        (8) $1,300,000,000 for outstanding liabilities related
19    to fiscal year 2019;
20        (9) $600,000,000 for outstanding liabilities related
21    to fiscal year 2020; and
22        (10) $0 for outstanding liabilities related to fiscal
23    year 2021 and fiscal years thereafter.
24    (k) Department of Healthcare and Family Services Medical
25Assistance Payments.
26        (1) Definition of Medical Assistance.

 

 

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1            For purposes of this subsection, the term "Medical
2        Assistance" shall include, but not necessarily be
3        limited to, medical programs and services authorized
4        under Titles XIX and XXI of the Social Security Act,
5        the Illinois Public Aid Code, the Children's Health
6        Insurance Program Act, the Covering ALL KIDS Health
7        Insurance Act, the Long Term Acute Care Hospital
8        Quality Improvement Transfer Program Act, and medical
9        care to or on behalf of persons suffering from chronic
10        renal disease, persons suffering from hemophilia, and
11        victims of sexual assault.
12        (2) Limitations on Medical Assistance payments that
13    may be paid from future fiscal year appropriations.
14            (A) The maximum amounts of annual unpaid Medical
15        Assistance bills received and recorded by the
16        Department of Healthcare and Family Services on or
17        before June 30th of a particular fiscal year
18        attributable in aggregate to the General Revenue Fund,
19        Healthcare Provider Relief Fund, Tobacco Settlement
20        Recovery Fund, Long-Term Care Provider Fund, and the
21        Drug Rebate Fund that may be paid in total by the
22        Department from future fiscal year Medical Assistance
23        appropriations to those funds are: $700,000,000 for
24        fiscal year 2013 and $100,000,000 for fiscal year 2014
25        and each fiscal year thereafter.
26            (B) Bills for Medical Assistance services rendered

 

 

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1        in a particular fiscal year, but received and recorded
2        by the Department of Healthcare and Family Services
3        after June 30th of that fiscal year, may be paid from
4        either appropriations for that fiscal year or future
5        fiscal year appropriations for Medical Assistance.
6        Such payments shall not be subject to the requirements
7        of subparagraph (A).
8            (C) Medical Assistance bills received by the
9        Department of Healthcare and Family Services in a
10        particular fiscal year, but subject to payment amount
11        adjustments in a future fiscal year may be paid from a
12        future fiscal year's appropriation for Medical
13        Assistance. Such payments shall not be subject to the
14        requirements of subparagraph (A).
15            (D) Medical Assistance payments made by the
16        Department of Healthcare and Family Services from
17        funds other than those specifically referenced in
18        subparagraph (A) may be made from appropriations for
19        those purposes for any fiscal year without regard to
20        the fact that the Medical Assistance services being
21        compensated for by such payment may have been rendered
22        in a prior fiscal year. Such payments shall not be
23        subject to the requirements of subparagraph (A).
24        (3) Extended lapse period for Department of Healthcare
25    and Family Services Medical Assistance payments.
26    Notwithstanding any other State law to the contrary,

 

 

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1    outstanding Department of Healthcare and Family Services
2    Medical Assistance liabilities, as of June 30th, payable
3    from appropriations which have otherwise expired, may be
4    paid out of the expiring appropriations during the 6-month
5    period ending at the close of business on December 31st.
6    (l) The changes to this Section made by Public Act 97-691
7shall be effective for payment of Medical Assistance bills
8incurred in fiscal year 2013 and future fiscal years. The
9changes to this Section made by Public Act 97-691 shall not be
10applied to Medical Assistance bills incurred in fiscal year
112012 or prior fiscal years.
12    (m) The Comptroller must issue payments against
13outstanding liabilities that were received prior to the lapse
14period deadlines set forth in this Section as soon thereafter
15as practical, but no payment may be issued after the 4 months
16following the lapse period deadline without the signed
17authorization of the Comptroller and the Governor.
18(Source: P.A. 100-23, eff. 7-6-17.)
 
19    (30 ILCS 105/35)  (from Ch. 127, par. 167.03)
20    Sec. 35. As used in this Section, "state agency" is defined
21as provided in the Illinois State Auditing Act, except that
22this Section does not apply to state colleges and universities,
23the Illinois Mathematics and Science Academy, and their
24respective governing boards.
25    When any State agency receives a grant or contract from

 

 

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1itself or another State agency from appropriated funds the
2recipient agency shall be restricted in the expenditure of
3these funds to the period during which the grantor agency was
4so restricted and to the terms and conditions under which such
5other agency received the appropriation, and to the terms,
6conditions and limitations of the appropriations to the other
7agency. For purposes of this Section, "interfund transfer"
8means the transfer of monies from one fund listed in the State
9Treasury to another fund. An "interfund transfer" shall not be
10considered an expenditure for purposes of this Section. No
11State agency may accept or expend funds under a grant or
12contract for any purpose, program or activity not within the
13scope of the agency's powers and duties under Illinois law.
14(Source: P.A. 88-9.)
 
15    Section 25. The Illinois Grant Funds Recovery Act is
16amended by adding Section 15.5 as follows:
 
17    (30 ILCS 705/15.5 new)
18    Sec. 15.5. Recommendations of the Illinois Single Audit
19Commission regarding the elimination and recovery of improper
20payments. The Illinois Single Audit Commission, in conjunction
21with the Governor's Office of Management and Budget, shall
22convene a subcommittee of the Commission to research and
23provide recommendations to the General Assembly regarding the
24adoption of legislation in accordance with the federal Improper

 

 

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1Payments Elimination and Recovery Improvement Act of 2012. The
2subcommittee's recommendations shall be included in the Annual
3Report of the Commission to be submitted to the General
4Assembly on January 1, 2019.
 
5    Section 30. The Grant Accountability and Transparency Act
6is amended by changing Sections 15, 25, 50, 55, and 95 and by
7adding Sections 105, 110, 115, 120, 125, 130, and 520 as
8follows:
 
9    (30 ILCS 708/15)
10    (Section scheduled to be repealed on July 16, 2020)
11    Sec. 15. Definitions. As used in this Act:
12    "Allowable cost" means a cost allowable to a project if:
13        (1) the costs are reasonable and necessary for the
14    performance of the award;
15        (2) the costs are allocable to the specific project;
16        (3) the costs are treated consistently in like
17    circumstances to both federally-financed and other
18    activities of the non-federal entity;
19        (4) the costs conform to any limitations of the cost
20    principles or the sponsored agreement;
21        (5) the costs are accorded consistent treatment; a cost
22    may not be assigned to a State or federal award as a direct
23    cost if any other cost incurred for the same purpose in
24    like circumstances has been allocated to the award as an

 

 

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1    indirect cost;
2        (6) the costs are determined to be in accordance with
3    generally accepted accounting principles;
4        (7) the costs are not included as a cost or used to
5    meet federal cost-sharing or matching requirements of any
6    other program in either the current or prior period;
7        (8) the costs of one State or federal grant are not
8    used to meet the match requirements of another State or
9    federal grant; and
10        (9) the costs are adequately documented.
11    "Auditee" means any non-federal entity that expends State
12or federal awards that must be audited.
13    "Auditor" means an auditor who is a public accountant or a
14federal, State, or local government audit organization that
15meets the general standards specified in generally-accepted
16government auditing standards. "Auditor" does not include
17internal auditors of nonprofit organizations.
18    "Auditor General" means the Auditor General of the State of
19Illinois.
20    "Award" means financial assistance that provides support
21or stimulation to accomplish a public purpose. "Awards" include
22grants and other agreements in the form of money, or property
23in lieu of money, by the State or federal government to an
24eligible recipient. "Award" does not include: technical
25assistance that provides services instead of money; other
26assistance in the form of loans, loan guarantees, interest

 

 

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1subsidies, or insurance; direct payments of any kind to
2individuals; or contracts that must be entered into and
3administered under State or federal procurement laws and
4regulations.
5    "Budget" means the financial plan for the project or
6program that the awarding agency or pass-through entity
7approves during the award process or in subsequent amendments
8to the award. It may include the State or federal and
9non-federal share or only the State or federal share, as
10determined by the awarding agency or pass-through entity.
11    "Catalog of Federal Domestic Assistance" or "CFDA" means a
12database that helps the federal government track all programs
13it has domestically funded.
14    "Catalog of Federal Domestic Assistance number" or "CFDA
15number" means the number assigned to a federal program in the
16CFDA.
17    "Catalog of State Financial Assistance" means the single,
18authoritative, statewide, comprehensive source document of
19State financial assistance program information maintained by
20the Governor's Office of Management and Budget.
21    "Catalog of State Financial Assistance Number" means the
22number assigned to a State program in the Catalog of State
23Financial Assistance. The first 3 digits represent the State
24agency number and the last 4 digits represent the program.
25    "Cluster of programs" means a grouping of closely related
26programs that share common compliance requirements. The types

 

 

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1of clusters of programs are research and development, student
2financial aid, and other clusters. A "cluster of programs"
3shall be considered as one program for determining major
4programs and, with the exception of research and development,
5whether a program-specific audit may be elected.
6    "Cognizant agency for audit" means the federal agency
7designated to carry out the responsibilities described in 2 CFR
8200.513(a).
9    "Contract" means a legal instrument by which a non-federal
10entity purchases property or services needed to carry out the
11project or program under an award. "Contract" does not include
12a legal instrument, even if the non-federal entity considers it
13a contract, when the substance of the transaction meets the
14definition of an award or subaward.
15    "Contractor" means an entity that receives a contract.
16    "Cooperative agreement" means a legal instrument of
17financial assistance between an awarding agency or
18pass-through entity and a non-federal entity that:
19        (1) is used to enter into a relationship with the
20    principal purpose of transferring anything of value from
21    the awarding agency or pass-through entity to the
22    non-federal entity to carry out a public purpose authorized
23    by law, but is not used to acquire property or services for
24    the awarding agency's or pass-through entity's direct
25    benefit or use; and
26        (2) is distinguished from a grant in that it provides

 

 

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1    for substantial involvement between the awarding agency or
2    pass-through entity and the non-federal entity in carrying
3    out the activity contemplated by the award.
4    "Cooperative agreement" does not include a cooperative
5research and development agreement, nor an agreement that
6provides only direct cash assistance to an individual, a
7subsidy, a loan, a loan guarantee, or insurance.
8    "Corrective action" means action taken by the auditee that
9(i) corrects identified deficiencies, (ii) produces
10recommended improvements, or (iii) demonstrates that audit
11findings are either invalid or do not warrant auditee action.
12    "Cost objective" means a program, function, activity,
13award, organizational subdivision, contract, or work unit for
14which cost data is desired and for which provision is made to
15accumulate and measure the cost of processes, products, jobs,
16and capital projects. A "cost objective" may be a major
17function of the non-federal entity, a particular service or
18project, an award, or an indirect cost activity.
19    "Cost sharing" means the portion of project costs not paid
20by State or federal funds, unless otherwise authorized by
21statute.
22    "Development" is the systematic use of knowledge and
23understanding gained from research directed toward the
24production of useful materials, devices, systems, or methods,
25including design and development of prototypes and processes.
26    "Data Universal Numbering System number" means the 9-digit

 

 

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1number established and assigned by Dun and Bradstreet, Inc. to
2uniquely identify entities and, under federal law, is required
3for non-federal entities to apply for, receive, and report on a
4federal award.
5    "Direct costs" means costs that can be identified
6specifically with a particular final cost objective, such as a
7State or federal or federal pass-through award or a particular
8sponsored project, an instructional activity, or any other
9institutional activity, or that can be directly assigned to
10such activities relatively easily with a high degree of
11accuracy.
12    "Equipment" means tangible personal property (including
13information technology systems) having a useful life of more
14than one year and a per-unit acquisition cost that equals or
15exceeds the lesser of the capitalization level established by
16the non-federal entity for financial statement purposes, or
17$5,000.
18    "Executive branch" means that branch of State government
19that is under the jurisdiction of the Governor.
20    "Federal agency" has the meaning provided for "agency"
21under 5 U.S.C. 551(1) together with the meaning provided for
22"agency" by 5 U.S.C. 552(f).
23    "Federal award" means:
24        (1) the federal financial assistance that a
25    non-federal entity receives directly from a federal
26    awarding agency or indirectly from a pass-through entity;

 

 

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1        (2) the cost-reimbursement contract under the Federal
2    Acquisition Regulations that a non-federal entity receives
3    directly from a federal awarding agency or indirectly from
4    a pass-through entity; or
5        (3) the instrument setting forth the terms and
6    conditions when the instrument is the grant agreement,
7    cooperative agreement, other agreement for assistance
8    covered in paragraph (b) of 20 CFR 200.40, or the
9    cost-reimbursement contract awarded under the Federal
10    Acquisition Regulations.
11    "Federal award" does not include other contracts that a
12federal agency uses to buy goods or services from a contractor
13or a contract to operate federal government owned,
14contractor-operated facilities.
15    "Federal awarding agency" means the federal agency that
16provides a federal award directly to a non-federal entity.
17    "Federal interest" means, for purposes of 2 CFR 200.329 or
18when used in connection with the acquisition or improvement of
19real property, equipment, or supplies under a federal award,
20the dollar amount that is the product of the federal share of
21total project costs and current fair market value of the
22property, improvements, or both, to the extent the costs of
23acquiring or improving the property were included as project
24costs.
25    "Federal program" means any of the following:
26        (1) All federal awards which are assigned a single

 

 

SB2540- 29 -LRB100 15500 RJF 30524 b

1    number in the CFDA.
2        (2) When no CFDA number is assigned, all federal awards
3    to non-federal entities from the same agency made for the
4    same purpose should be combined and considered one program.
5        (3) Notwithstanding paragraphs (1) and (2) of this
6    definition, a cluster of programs. The types of clusters of
7    programs are:
8            (A) research and development;
9            (B) student financial aid; and
10            (C) "other clusters", as described in the
11        definition of "cluster of programs".
12    "Federal share" means the portion of the total project
13costs that are paid by federal funds.
14    "Final cost objective" means a cost objective which has
15allocated to it both direct and indirect costs and, in the
16non-federal entity's accumulation system, is one of the final
17accumulation points, such as a particular award, internal
18project, or other direct activity of a non-federal entity.
19    "Financial assistance" means the following:
20        (1) For grants and cooperative agreements, "financial
21    assistance" means assistance that non-federal entities
22    receive or administer in the form of:
23            (A) grants;
24            (B) cooperative agreements;
25            (C) non-cash contributions or donations of
26        property, including donated surplus property;

 

 

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1            (D) direct appropriations;
2            (E) food commodities; and
3            (F) other financial assistance, except assistance
4        listed in paragraph (2) of this definition.
5        (2) "Financial assistance" includes assistance that
6    non-federal entities receive or administer in the form of
7    loans, loan guarantees, interest subsidies, and insurance.
8        (3) "Financial assistance" does not include amounts
9    received as reimbursement for services rendered to
10    individuals.
11    "Fixed amount awards" means a type of grant agreement under
12which the awarding agency or pass-through entity provides a
13specific level of support without regard to actual costs
14incurred under the award. "Fixed amount awards" reduce some of
15the administrative burden and record-keeping requirements for
16both the non-federal entity and awarding agency or pass-through
17entity. Accountability is based primarily on performance and
18results.
19    "Foreign public entity" means:
20        (1) a foreign government or foreign governmental
21    entity;
22        (2) a public international organization that is
23    entitled to enjoy privileges, exemptions, and immunities
24    as an international organization under the International
25    Organizations Immunities Act (22 U.S.C. 288-288f);
26        (3) an entity owned, in whole or in part, or controlled

 

 

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1    by a foreign government; or
2        (4) any other entity consisting wholly or partially of
3    one or more foreign governments or foreign governmental
4    entities.
5    "Foreign organization" means an entity that is:
6        (1) a public or private organization located in a
7    country other than the United States and its territories
8    that are subject to the laws of the country in which it is
9    located, irrespective of the citizenship of project staff
10    or place of performance;
11        (2) a private nongovernmental organization located in
12    a country other than the United States that solicits and
13    receives cash contributions from the general public;
14        (3) a charitable organization located in a country
15    other than the United States that is nonprofit and tax
16    exempt under the laws of its country of domicile and
17    operation, but is not a university, college, accredited
18    degree-granting institution of education, private
19    foundation, hospital, organization engaged exclusively in
20    research or scientific activities, church, synagogue,
21    mosque, or other similar entity organized primarily for
22    religious purposes; or
23        (4) an organization located in a country other than the
24    United States not recognized as a Foreign Public Entity.
25    "Generally Accepted Accounting Principles" has the meaning
26provided in accounting standards issued by the Government

 

 

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1Accounting Standards Board and the Financial Accounting
2Standards Board.
3    "Generally Accepted Government Auditing Standards" means
4generally accepted government auditing standards issued by the
5Comptroller General of the United States that are applicable to
6financial audits.
7    "Grant agreement" means a legal instrument of financial
8assistance between an awarding agency or pass-through entity
9and a non-federal entity that:
10        (1) is used to enter into a relationship, the principal
11    purpose of which is to transfer anything of value from the
12    awarding agency or pass-through entity to the non-federal
13    entity to carry out a public purpose authorized by law and
14    not to acquire property or services for the awarding agency
15    or pass-through entity's direct benefit or use; and
16        (2) is distinguished from a cooperative agreement in
17    that it does not provide for substantial involvement
18    between the awarding agency or pass-through entity and the
19    non-federal entity in carrying out the activity
20    contemplated by the award.
21    "Grant agreement" does not include an agreement that
22provides only direct cash assistance to an individual, a
23subsidy, a loan, a loan guarantee, or insurance.
24    "Grant application" means a specified form that is
25completed by a non-federal entity in connection with a request
26for a specific funding opportunity or a request for financial

 

 

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1support of a project or activity.
2    "Hospital" means a facility licensed as a hospital under
3the law of any state or a facility operated as a hospital by
4the United States, a state, or a subdivision of a state.
5    "Illinois Debarred and Suspended List" means the list
6maintained by the Governor's Office of Management and Budget
7that contains the names of those individuals and entities that
8are ineligible, either temporarily or permanently, from
9receiving an award of grant funds from the State.
10    "Indian tribe" (or "federally recognized Indian tribe")
11means any Indian tribe, band, nation, or other organized group
12or community, including any Alaska Native village or regional
13or village corporation as defined in or established pursuant to
14the federal Alaska Native Claims Settlement Act (43 U.S.C.
151601, et seq.) that is recognized as eligible for the special
16programs and services provided by the United States to Indians
17because of their status as Indians under 25 U.S.C. 450b(e), as
18set forth in the annually published Bureau of Indian Affairs
19list of Indian Entities Recognized and Eligible to Receive
20Services.
21    "Indirect cost" means those costs incurred for a common or
22joint purpose benefitting more than one cost objective and not
23readily assignable to the cost objectives specifically
24benefitted without effort disproportionate to the results
25achieved.
26    "Inspector General" means the Office of the Executive

 

 

SB2540- 34 -LRB100 15500 RJF 30524 b

1Inspector General for Executive branch agencies.
2    "Loan" means a State or federal loan or loan guarantee
3received or administered by a non-federal entity. "Loan" does
4not include a "program income" as defined in 2 CFR 200.80.
5    "Loan guarantee" means any State or federal government
6guarantee, insurance, or other pledge with respect to the
7payment of all or a part of the principal or interest on any
8debt obligation of a non-federal borrower to a non-federal
9lender, but does not include the insurance of deposits, shares,
10or other withdrawable accounts in financial institutions.
11    "Local government" has the meaning provided for the term
12"units of local government" under Section 1 of Article VII of
13the Illinois Constitution and includes school districts.
14    "Major program" means a federal program determined by the
15auditor to be a major program in accordance with 2 CFR 200.518
16or a program identified as a major program by a federal
17awarding agency or pass-through entity in accordance with 2 CFR
18200.503(e).
19    "Non-federal entity" means a state, local government,
20Indian tribe, institution of higher education, or
21organization, whether nonprofit or for-profit, that carries
22out a State or federal award as a recipient or subrecipient.
23    "Nonprofit organization" means any corporation, trust,
24association, cooperative, or other organization, not including
25institutions of higher education, that:
26        (1) is operated primarily for scientific, educational,

 

 

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1    service, charitable, or similar purposes in the public
2    interest;
3        (2) is not organized primarily for profit; and
4        (3) uses net proceeds to maintain, improve, or expand
5    the operations of the organization.
6    "Obligations", when used in connection with a non-federal
7entity's utilization of funds under an award, means orders
8placed for property and services, contracts and subawards made,
9and similar transactions during a given period that require
10payment by the non-federal entity during the same or a future
11period.
12    "Office of Management and Budget" means the Office of
13Management and Budget of the Executive Office of the President.
14    "Other clusters" has the meaning provided by the federal
15Office of Management and Budget in the compliance supplement or
16has the meaning as it is designated by a state for federal
17awards the state provides to its subrecipients that meet the
18definition of a cluster of programs. When designating an "other
19cluster", a state must identify the federal awards included in
20the cluster and advise the subrecipients of compliance
21requirements applicable to the cluster.
22    "Oversight agency for audit" means the federal awarding
23agency that provides the predominant amount of funding directly
24to a non-federal entity not assigned a cognizant agency for
25audit. When there is no direct funding, the awarding agency
26that is the predominant source of pass-through funding must

 

 

SB2540- 36 -LRB100 15500 RJF 30524 b

1assume the oversight responsibilities. The duties of the
2oversight agency for audit and the process for any
3reassignments are described in 2 CFR 200.513(b).
4    "Pass-through entity" means a non-federal entity that
5provides a subaward to a subrecipient to carry out part of a
6program.
7    "Private award" means an award from a person or entity
8other than a State or federal entity. Private awards are not
9subject to the provisions of this Act.
10    "Property" means real property or personal property.
11    "Project cost" means total allowable costs incurred under
12an award and all required cost sharing and voluntary committed
13cost sharing, including third-party contributions.
14    "Public institutions of higher education" has the meaning
15provided in Section 1 of the Board of Higher Education Act.
16    "Recipient" means a non-federal entity that receives an
17award directly from an awarding agency to carry out an activity
18under a program. "Recipient" does not include subrecipients.
19    "Research and Development" means all research activities,
20both basic and applied, and all development activities that are
21performed by non-federal entities.
22    "Single Audit Act" means the federal Single Audit Act
23Amendments of 1996 (31 U.S.C. 7501-7507).
24    "State agency" means an Executive branch agency. For
25purposes of this Act, "State agency" does not include public
26institutions of higher education.

 

 

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1    "State award" means the financial assistance that a
2non-federal entity receives from the State and that is funded
3with either State funds or federal funds; in the latter case,
4the State is acting as a pass-through entity.
5    "State awarding agency" means a State agency that provides
6an award to a non-federal entity.
7    "State grant-making agency" has the same meaning as "State
8awarding agency".
9    "State interest" means the acquisition or improvement of
10real property, equipment, or supplies under a State award, the
11dollar amount that is the product of the State share of the
12total project costs and current fair market value of the
13property, improvements, or both, to the extent the costs of
14acquiring or improving the property were included as project
15costs.
16    "State program" means any of the following:
17        (1) All State awards which are assigned a single number
18    in the Catalog of State Financial Assistance.
19        (2) When no Catalog of State Financial Assistance
20    number is assigned, all State awards to non-federal
21    entities from the same agency made for the same purpose are
22    considered one program.
23        (3) A cluster of programs as defined in this Section.
24    "State share" means the portion of the total project costs
25that are paid by State funds.
26    "Stop payment order" means a communication from a State

 

 

SB2540- 38 -LRB100 15500 RJF 30524 b

1grant-making agency to the Office of the Comptroller requesting
2the cessation of payments to a recipient or subrecipient as a
3result of the recipient's or subrecipient's failure to comply
4with one or more terms of the grant or subaward.
5    "Stop payment system" means the system maintained by the
6Office of the Comptroller which effects stop payment orders and
7the lifting of stop payment orders upon the direction of a
8State grant-making agency.
9    "Student Financial Aid" means federal awards under those
10programs of general student assistance, such as those
11authorized by Title IV of the Higher Education Act of 1965, as
12amended (20 U.S.C. 1070-1099d), that are administered by the
13United States Department of Education and similar programs
14provided by other federal agencies. "Student Financial Aid"
15does not include federal awards under programs that provide
16fellowships or similar federal awards to students on a
17competitive basis or for specified studies or research.
18    "Subaward" means a State or federal award provided by a
19pass-through entity to a subrecipient for the subrecipient to
20carry out part of a federal award received by the pass-through
21entity. "Subaward" does not include payments to a contractor or
22payments to an individual that is a beneficiary of a federal
23program. A "subaward" may be provided through any form of legal
24agreement, including an agreement that the pass-through entity
25considers a contract.
26    "Subrecipient" means a non-federal entity that receives a

 

 

SB2540- 39 -LRB100 15500 RJF 30524 b

1State or federal subaward from a pass-through entity to carry
2out part of a federal program. "Subrecipient" does not include
3an individual that is a beneficiary of such program. A
4"subrecipient" may also be a recipient of other State or
5federal awards directly from a State or federal awarding
6agency.
7    "Suspension" means a post-award action by the State or
8federal agency or pass-through entity that temporarily
9withdraws the State or federal agency's or pass-through
10entity's financial assistance sponsorship under an award,
11pending corrective action by the recipient or subrecipient or
12pending a decision to terminate the award.
13    "Uniform Administrative Requirements, Costs Principles,
14and Audit Requirements for Federal Awards" means those rules
15applicable to grants contained in 2 CFR 200.
16    "Voluntary committed cost sharing" means cost sharing
17specifically pledged on a voluntary basis in the proposal's
18budget or the award on the part of the non-federal entity and
19that becomes a binding requirement of the award.
20(Source: P.A. 98-706, eff. 7-16-14.)
 
21    (30 ILCS 708/25)
22    (Section scheduled to be repealed on July 16, 2020)
23    Sec. 25. Supplemental rules. On or before July 1, 2017, the
24Governor's Office of Management and Budget, with the advice and
25technical assistance of the Illinois Single Audit Commission,

 

 

SB2540- 40 -LRB100 15500 RJF 30524 b

1shall adopt supplemental rules pertaining to the following:
2        (1) Criteria to define mandatory formula-based grants
3    and discretionary grants.
4        (2) The award of one-year grants for new applicants.
5        (3) The award of competitive grants in 3-year terms
6    (one-year initial terms with the option to renew for up to
7    2 additional years) to coincide with the federal award.
8        (4) The issuance of grants, including:
9            (A) public notice of announcements of funding
10        opportunities;
11            (B) the development of uniform grant applications;
12            (C) State agency review of merit of proposals and
13        risk posed by applicants;
14            (D) specific conditions for individual recipients
15        (requiring the use of a fiscal agent and additional
16        corrective conditions);
17            (E) certifications and representations;
18            (F) pre-award costs;
19            (G) performance measures and statewide prioritized
20        goals under Section 50-25 of the State Budget Law of
21        the Civil Administrative Code of Illinois, commonly
22        referred to as "Budgeting for Results"; and
23            (H) for mandatory formula grants, the merit of the
24        proposal and the risk posed should result in additional
25        reporting, monitoring, or measures such as
26        reimbursement-basis only.

 

 

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1        (5) The development of uniform budget requirements,
2    which shall include:
3            (A) mandatory submission of budgets as part of the
4        grant application process;
5            (B) mandatory requirements regarding contents of
6        the budget including, at a minimum, common detail line
7        items specified under guidelines issued by the
8        Governor's Office of Management and Budget;
9            (C) a requirement that the budget allow
10        flexibility to add lines describing costs that are
11        common for the services provided as outlined in the
12        grant application;
13            (D) a requirement that the budget include
14        information necessary for analyzing cost and
15        performance for use in Budgeting for Results; and
16            (E) caps on the amount of salaries that may be
17        charged to grants based on the limitations imposed by
18        federal agencies.
19        (6) The development of pre-qualification requirements
20    for applicants, including the fiscal condition of the
21    organization and the provision of the following
22    information:
23            (A) organization name;
24            (B) Federal Employee Identification Number;
25            (C) Data Universal Numbering System (DUNS) number;
26            (D) fiscal condition;

 

 

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1            (E) whether the applicant is in good standing with
2        the Secretary of State;
3            (F) past performance in administering grants;
4            (G) whether the applicant is or has ever been on
5        the Debarred and Suspended List maintained by the
6        Governor's Office of Management and Budget;
7            (H) whether the applicant is or has ever been on
8        the federal Excluded Parties List; and
9            (I) whether the applicant is or has ever been on
10        the Sanctioned Party List maintained by the Illinois
11        Department of Healthcare and Family Services.
12    Nothing in this Act affects the provisions of the Fiscal
13Control and Internal Auditing Act nor the requirement that the
14management of each State agency is responsible for maintaining
15effective internal controls under that Act.
16    For public institutions of higher education, the
17provisions of this Section apply only to awards funded by State
18appropriations and federal pass-through awards from a State
19agency to public institutions of higher education.
20(Source: P.A. 98-706, eff. 7-16-14; 99-523, eff. 6-30-16.)
 
21    (30 ILCS 708/50)
22    (Section scheduled to be repealed on July 16, 2020)
23    Sec. 50. State grant-making agency responsibilities.
24    (a) The specific requirements and responsibilities of
25State grant-making agencies and non-federal entities are set

 

 

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1forth in this Act. State agencies making State awards to
2non-federal entities must adopt by rule the language in 2 CFR
3200, Subpart C through Subpart F unless different provisions
4are required by law.
5    (b) Each State grant-making agency shall appoint a Chief
6Accountability Officer who shall serve as a liaison to the
7Grant Accountability and Transparency Unit and who shall be
8responsible for the State agency's implementation of and
9compliance with the rules.
10    (c) In order to effectively measure the performance of its
11recipients and subrecipients, each State grant-making agency
12shall:
13        (1) require its recipients and subrecipients to relate
14    financial data to performance accomplishments of the award
15    and, when applicable, must require recipients and
16    subrecipients to provide cost information to demonstrate
17    cost-effective practices. The recipient's and
18    subrecipient's performance should be measured in a way that
19    will help the State agency to improve program outcomes,
20    share lessons learned, and spread the adoption of promising
21    practices; and
22        (2) provide recipients and subrecipients with clear
23    performance goals, indicators, and milestones and must
24    establish performance reporting frequency and content to
25    not only allow the State agency to understand the
26    recipient's progress, but also to facilitate

 

 

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1    identification of promising practices among recipients and
2    subrecipients and build the evidence upon which the State
3    agency's program and performance decisions are made.
4    (c-5) Each State grant-making agency shall evaluate the
5compliance of its recipients and subrecipients within the terms
6of the grant or subaward and, where appropriate, shall request
7that the Office of the Comptroller issue a stop payment order
8in accordance with Section 105 of this Act.
9    (d) The Governor's Office of Management and Budget shall
10provide such advice and technical assistance to the State
11grant-making agencies as is necessary or indicated in order to
12ensure compliance with this Act.
13(Source: P.A. 98-706, eff. 7-16-14.)
 
14    (30 ILCS 708/55)
15    (Section scheduled to be repealed on July 16, 2020)
16    Sec. 55. The Governor's Office of Management and Budget
17responsibilities.
18    (a) The Governor's Office of Management and Budget shall:
19        (1) provide technical assistance and interpretations
20    of policy requirements in order to ensure effective and
21    efficient implementation of this Act by State grant-making
22    agencies; and
23        (2) have authority to approve any exceptions to the
24    requirements of this Act and shall adopt rules governing
25    the criteria to be considered when an exception is

 

 

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1    requested; exceptions shall only be made in particular
2    cases where adequate justification is presented.
3    (b) The Governor's Office of Management and Budget shall,
4on or before July 1, 2016, establish a centralized unit within
5the Governor's Office of Management and Budget. The centralized
6unit shall be known as the Grant Accountability and
7Transparency Unit and shall be funded with a portion of the
8administrative funds provided under existing and future State
9and federal pass-through grants. The amounts charged will be
10allocated based on the actual cost of the services provided to
11State grant-making agencies and public institutions of higher
12education in accordance with the applicable federal cost
13principles contained in 2 CFR 200 and this Act will not cause
14the reduction in the amount of any State or federal grant
15awards that have been or will be directed towards State
16agencies or public institutions of higher education.
17    (c) The Governor's Office of Management and Budget, in
18conjunction with the Illinois Single Audit Commission, shall
19convene a subcommittee of the Commission to research and
20provide recommendations to the General Assembly regarding the
21adoption of legislation in accordance with the federal Improper
22Payments Elimination and Recovery Improvement Act of 2012. The
23subcommittee's recommendations shall be included in the Annual
24Report of the Commission to be submitted to the General
25Assembly on January 1, 2019.
26(Source: P.A. 98-706, eff. 7-16-14; 99-523, eff. 6-30-16.)
 

 

 

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1    (30 ILCS 708/95)
2    (Section scheduled to be repealed on July 16, 2020)
3    Sec. 95. Annual report. Effective January 1, 2016 and each
4January 1 thereafter, the Governor's Office of Management and
5Budget, in conjunction with the Illinois Single Audit
6Commission, shall submit to the Governor and the General
7Assembly a report that demonstrates the efficiencies, cost
8savings, and reductions in fraud, waste, and abuse as a result
9of the implementation of this Act and the rules adopted by the
10Governor's Office of Management and Budget in accordance with
11the provisions of this Act. The report shall include, but not
12be limited to:
13        (1) the number of entities placed on the Illinois
14    Debarred and Suspended List;
15        (2) any savings realized as a result of the
16    implementation of this Act;
17        (3) any reduction in the number of duplicative audit
18    report reviews audits;
19        (4) the number of persons trained to assist grantees
20    and subrecipients; and
21        (5) the number of grantees and subrecipients to whom a
22    fiscal agent was assigned.
23(Source: P.A. 98-706, eff. 7-16-14.)
 
24    (30 ILCS 708/105 new)

 

 

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1    Sec. 105. Stop payment system.
2    (a) On or before July 1, 2019, the Governor's Office of
3Management and Budget shall adopt rules pertaining to the
4following:
5        (1) Factors to be considered in determining whether to
6    issue a stop payment order;
7        (2) Factors to be considered in determining whether a
8    stop payment order should be lifted; and
9        (3) Procedures for notification to the recipient or
10    subrecipient of the issuance of a stop payment order, the
11    lifting of a stop payment order, and any other related
12    information.
13    (b) On or before December 31, 2019, the Governor's Office
14of Management and Budget shall, in conjunction with State
15grant-making agencies, adopt rules pertaining to the
16following:
17        (1) Policies regarding the issuance of stop payment
18    orders;
19        (2) Policies regarding the lifting of stop payment
20    orders;
21        (3) Policies regarding corrective actions required of
22    recipients and subrecipients in the event a stop payment
23    order is issued; and
24        (4) Policies regarding the coordination of
25    communications between the Office of the Comptroller and
26    State grant-making agencies regarding the issuance of stop

 

 

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1    payment orders and the lifting of such orders.
2    (c) On or before July 1, 2020, the Office of the
3Comptroller shall have established a stop payment system that
4shall cause the temporary or permanent cessation of payments to
5a recipient or subrecipient in specified circumstances. Such a
6temporary or permanent cessation of payments will occur
7pursuant to a stop payment order issued by a State grant-making
8agency and implemented by the Office of the Comptroller.
9    (d) The State grant-making agency shall maintain a file
10pertaining to all stop payment orders which shall include, at a
11minimum:
12        (1) The notice to the recipient or subrecipient that a
13    stop payment order has been issued. The notice shall
14    include:
15            (A) The name of the grant.
16            (B) The grant number.
17            (C) The name of the State agency that issued the
18        grant.
19            (D) The reason(s) for the stop payment order.
20            (E) Notification that the stop payment order
21        applies to all grants and contracts issued by the
22        State.
23            (F) Any other relevant information.
24        (2) The order lifting the stop payment order, if
25    applicable.
 

 

 

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1    (30 ILCS 708/110 new)
2    Sec. 110. Documentation of award decisions. Each award that
3is granted pursuant to an application process must include
4documentation to support the award.
5    (a) For each State or federal pass-through award that is
6granted following an application process, the State
7grant-making agency shall create a grant award file. The grant
8award file shall contain, at a minimum:
9        (1) A description of the grant.
10        (2) The Notice of Opportunity.
11        (3) All applications received in response to the Notice
12    of Opportunity.
13        (4) Copies of any written communications between an
14    applicant and the State grant-making agency.
15        (5) The criteria used to evaluate the applications.
16        (6) The scores assigned to each applicant according to
17    the criteria.
18        (7) A written determination, signed by an authorized
19    representative of the State grant-making agency, setting
20    forth the reason for the grant award decision.
21        (8) The Notice of Award.
22        (9) Any other pre-award documents.
23        (10) The grant agreement and any renewals, if
24    applicable;
25        (11) All post-award, administration, and close-out
26    documents relating to the grant.

 

 

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1        (12) Any other information relevant to the grant award.
2    (b) The grant file shall not include trade secrets or other
3competitively sensitive, confidential, or proprietary
4information.
5    (c) Each grant file shall be maintained by the State
6grant-making agency and, subject to the provisions of the
7Freedom of Information Act, shall be available for public
8inspection and copying within 7 calendar days following award
9of the grant.
 
10    (30 ILCS 708/115 new)
11    Sec. 115. Certifications and representations. Unless
12prohibited by State or federal statute, regulation, or
13administrative rule, each State awarding agency or
14pass-through entity is authorized to require the recipient or
15subrecipient to submit certifications and representations
16required by State or federal statute, regulation, or
17administrative rule.
 
18    (30 ILCS 708/120 new)
19    Sec. 120. Required certifications. To assure that
20expenditures are proper and in accordance with the terms and
21conditions of the grant award and approved project budgets, all
22periodic and final financial reports, and all payment requests
23under the grant agreement, must include a certification, signed
24by an official who is authorized to legally bind the grantee or

 

 

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1subrecipient, that reads as follows:
2        "By signing this report and/or payment request, I
3    certify to the best of my knowledge and belief that this
4    report is true, complete, and accurate; that the
5    expenditures, disbursements, and cash receipts are for the
6    purposes and objectives set forth in the terms and
7    conditions of the State or federal pass-through award; and
8    that supporting documentation has been submitted as
9    required by the grant agreement. I acknowledge that
10    approval for any item or expenditure described herein shall
11    be considered conditional subject to further review and
12    verification in accordance with the monitoring and records
13    retention provisions of the grant agreement. I am aware
14    that any false, fictitious, or fraudulent information, or
15    the omission of any material fact, may subject me to
16    criminal, civil or administrative penalties for fraud,
17    false statements, false claims or otherwise. (18 U.S.C.
18    1001; 31 U.S.C. 3729-3730 and 3801-3812; 30 ILCS 708/
19    120.)"
 
20    (30 ILCS 708/125 new)
21    Sec. 125. Expenditures prior to grant execution; reporting
22requirements.
23    (a) In the event that a recipient or subrecipient incurs
24expenses related to the grant award prior to the execution of
25the grant agreement but within the term of the grant, and the

 

 

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1grant agreement is executed more than 30 days after the
2effective date of the grant, the recipient or subrecipient must
3submit to the State grant-making agency a report that accounts
4for eligible grant expenditures and project activities from the
5effective date of the grant up to and including the date of
6execution of the grant agreement.
7    (b) The recipient or subrecipient must submit the report to
8the State grant-making agency within 30 days of execution of
9the grant agreement.
10    (c) Only those expenses that are reasonable, allowable, and
11in furtherance of the purpose of the grant award shall be
12reimbursed.
13    (d) The State grant-making agency must approve the report
14prior to issuing any payment to the recipient or subrecipient.
 
15    (30 ILCS 708/130 new)
16    Sec. 130. Travel costs.
17    (a) General. Travel costs are the expenses for
18transportation, lodging, subsistence, and related items
19incurred by the employees of the recipient or subrecipient who
20are in travel status on official business of the recipient or
21subrecipient. Such costs may only be charged to a State or
22federal pass-through grant on a per diem or mileage basis in
23accordance with the rules of the Governor's Travel Control
24Board.
25    (b) Lodging and subsistence. Costs incurred for travel,

 

 

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1including costs of lodging, other subsistence, and incidental
2expenses, must be considered reasonable and otherwise
3allowable only to the extent such costs do not exceed charges
4normally allowed by the rules of the Governor's Travel Control
5Board. In addition, if these costs are charged directly to the
6State or federal pass-through award documentation must justify
7that:
8        (1) Participation of the individual is necessary to the
9    State or federal pass-through award; and
10        (2) The costs are reasonable and consistent with the
11    rules of the Governor's Travel Control Board.
12    (c) Commercial air travel.
13        (1) Airfare costs in excess of the basic least
14    expensive unrestricted accommodations class offered by
15    commercial airlines are unallowable except when such
16    accommodations would:
17            (i) Require circuitous routing;
18            (ii) Require travel during unreasonable hours;
19            (iii) Excessively prolong travel;
20            (iv) Result in additional costs that would offset
21        the transportation savings; or
22            (v) Offer accommodations not reasonably adequate
23        for the traveler's medical needs.
 
24    (30 ILCS 708/520 new)
25    Sec. 520. Separate accounts for State grant funds.

 

 

SB2540- 54 -LRB100 15500 RJF 30524 b

1Notwithstanding any provision of law to the contrary, all
2grants made and any grant agreement entered into, renewed, or
3extended on or after the effective date of this amendatory Act
4of the 100th General Assembly, between a State grant-making
5agency and a nonprofit organization, shall require the
6nonprofit organization receiving grant funds to maintain those
7funds in an account which is separate and distinct from any
8account holding non-grant funds. Except as otherwise provided
9in an agreement between a State grant-making agency and a
10nonprofit organization, the grant funds held in a separate
11account by a nonprofit organization shall not be used for
12non-grant-related activities, and any unused grant funds shall
13be returned to the State grant-making agency.
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.

 

 

SB2540- 55 -LRB100 15500 RJF 30524 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
21    30 ILCS 708/520 new