Sen. Jason A. Barickman

Filed: 4/20/2018

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2540

2    AMENDMENT NO. ______. Amend Senate Bill 2540 by replacing
3everything after the enacting clause with the following:
 
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.

 

 

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1    (b) The proper name or image of any executive branch
2constitutional officer or member of the General Assembly may
3not appear on any (i) bumper stickers, (ii) commercial
4billboards, (iii) lapel pins or buttons, (iv) magnets, (v)
5stickers, and (vi) other similar promotional items, that are
6not in furtherance of the person's official State duties or
7governmental and public service functions, if designed, paid
8for, prepared, or distributed using public dollars. This
9subsection does not apply to stocks of items existing on the
10effective date of this amendatory Act of the 93rd General
11Assembly.
12    (b-5) During the period beginning September 1 of the year
13of a general election and ending the day after the general
14election, the proper name or image of any executive branch
15constitutional officer or member of the General Assembly shall
16not be included in a public announcement on behalf of an
17officer, member, or State agency related to any contract or
18grant awarded by a State agency. Nothing in this subsection
19(b-5) prohibits a State agency from issuing notification of the
20award or grant of a contract, provided the notification does
21not include the proper name or image of any executive branch
22constitutional officer or member of the General Assembly. This
23subsection (b-5) does not prohibit an executive branch
24constitutional officer or member of the General Assembly from
25attending any public or private event associated with the award
26or grant of contract or from being included on a list of

 

 

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1attendees disseminated to the public.
2    (c) This Section does not apply to communications funded
3through expenditures required to be reported under Article 9 of
4the Election Code.
5(Source: P.A. 97-13, eff. 6-16-11.)
 
6    Section 10. The Governor's Office of Management and Budget
7Act is amended by adding Sections 2.11 and 2.12 as follows:
 
8    (20 ILCS 3005/2.11 new)
9    Sec. 2.11. Stop payment orders. Upon a request for a stop
10payment order from a State grant-making agency for a recipient
11or subrecipient, the Office of the Comptroller shall notify the
12Grant Accountability and Transparency Unit within 30 days of
13the request.
 
14    (20 ILCS 3005/2.12 new)
15    Sec. 2.12. Improper payment elimination recommendations.
16Pursuant to Section 15.5 of the Grant Funds Recovery Act, the
17Governor's Office of Management and Budget, in conjunction with
18the Illinois Single Audit Commission, shall research and
19provide recommendations to the General Assembly regarding the
20adoption of legislation, in accordance with the federal
21Improper Payments Elimination and Recovery Improvement Act of
222012. The recommendations shall be included in the Annual
23Report of the Commission to be submitted to the General

 

 

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1Assembly on January 1, 2020. This Section is repealed January
21, 2021.
 
3    Section 15. The State Finance Act is amended by changing
4Section 35 as follows:
 
5    (30 ILCS 105/35)  (from Ch. 127, par. 167.03)
6    Sec. 35. As used in this Section, "state agency" is defined
7as provided in the Illinois State Auditing Act, except that
8this Section does not apply to state colleges and universities,
9the Illinois Mathematics and Science Academy, and their
10respective governing boards.
11    When any State agency receives a grant or contract from
12itself or another State agency from appropriated funds the
13recipient agency shall be restricted in the expenditure of
14these funds to the period during which the grantor agency was
15so restricted and to the terms and conditions under which such
16other agency received the appropriation. , The restrictions
17shall include: any applicable restrictions in Section 25 of
18this Act, applicable federal regulations, and to the terms,
19conditions and limitations of the appropriations to the other
20agency, even if the funds are deposited or interfund
21transferred for use in a non-appropriated fund. No State agency
22may accept or expend funds under a grant or contract for any
23purpose, program or activity not within the scope of the
24agency's powers and duties under Illinois law.

 

 

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1(Source: P.A. 88-9.)
 
2    Section 20. 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
9research and provide recommendations to the General Assembly
10regarding the adoption of legislation in accordance with the
11federal Improper Payments Elimination and Recovery Improvement
12Act of 2012. The recommendations shall be included in the
13Annual Report of the Commission to be submitted to the General
14Assembly on January 1, 2020. This Section is repealed January
151, 2021.
 
16    Section 25. 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, 130, and 520 as
19follows:
 
20    (30 ILCS 708/15)
21    (Section scheduled to be repealed on July 16, 2020)
22    Sec. 15. Definitions. As used in this Act:

 

 

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

 

 

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

 

 

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1    "Catalog of Federal Domestic Assistance number" or "CFDA
2number" means the number assigned to a federal program in the
3CFDA.
4    "Catalog of State Financial Assistance" means the single,
5authoritative, statewide, comprehensive source document of
6State financial assistance program information maintained by
7the Governor's Office of Management and Budget.
8    "Catalog of State Financial Assistance Number" means the
9number assigned to a State program in the Catalog of State
10Financial Assistance. The first 3 digits represent the State
11agency number and the last 4 digits represent the program.
12    "Cluster of programs" means a grouping of closely related
13programs that share common compliance requirements. The types
14of clusters of programs are research and development, student
15financial aid, and other clusters. A "cluster of programs"
16shall be considered as one program for determining major
17programs and, with the exception of research and development,
18whether a program-specific audit may be elected.
19    "Cognizant agency for audit" means the federal agency
20designated to carry out the responsibilities described in 2 CFR
21200.513(a).
22    "Contract" means a legal instrument by which a non-federal
23entity purchases property or services needed to carry out the
24project or program under an award. "Contract" does not include
25a legal instrument, even if the non-federal entity considers it
26a contract, when the substance of the transaction meets the

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1the federal Alaska Native Claims Settlement Act (43 U.S.C.
21601, et seq.) that is recognized as eligible for the special
3programs and services provided by the United States to Indians
4because of their status as Indians under 25 U.S.C. 450b(e), as
5set forth in the annually published Bureau of Indian Affairs
6list of Indian Entities Recognized and Eligible to Receive
7Services.
8    "Indirect cost" means those costs incurred for a common or
9joint purpose benefitting more than one cost objective and not
10readily assignable to the cost objectives specifically
11benefitted without effort disproportionate to the results
12achieved.
13    "Inspector General" means the Office of the Executive
14Inspector General for Executive branch agencies.
15    "Loan" means a State or federal loan or loan guarantee
16received or administered by a non-federal entity. "Loan" does
17not include a "program income" as defined in 2 CFR 200.80.
18    "Loan guarantee" means any State or federal government
19guarantee, insurance, or other pledge with respect to the
20payment of all or a part of the principal or interest on any
21debt obligation of a non-federal borrower to a non-federal
22lender, but does not include the insurance of deposits, shares,
23or other withdrawable accounts in financial institutions.
24    "Local government" has the meaning provided for the term
25"units of local government" under Section 1 of Article VII of
26the Illinois Constitution and includes school districts.

 

 

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1    "Major program" means a federal program determined by the
2auditor to be a major program in accordance with 2 CFR 200.518
3or a program identified as a major program by a federal
4awarding agency or pass-through entity in accordance with 2 CFR
5200.503(e).
6    "Non-federal entity" means a state, local government,
7Indian tribe, institution of higher education, or
8organization, whether nonprofit or for-profit, that carries
9out a State or federal award as a recipient or subrecipient.
10    "Nonprofit organization" means any corporation, trust,
11association, cooperative, or other organization, not including
12institutions of higher education, that:
13        (1) is operated primarily for scientific, educational,
14    service, charitable, or similar purposes in the public
15    interest;
16        (2) is not organized primarily for profit; and
17        (3) uses net proceeds to maintain, improve, or expand
18    the operations of the organization.
19    "Obligations", when used in connection with a non-federal
20entity's utilization of funds under an award, means orders
21placed for property and services, contracts and subawards made,
22and similar transactions during a given period that require
23payment by the non-federal entity during the same or a future
24period.
25    "Office of Management and Budget" means the Office of
26Management and Budget of the Executive Office of the President.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

10000SB2540sam001- 24 -LRB100 15500 RJF 39059 a

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

 

 

10000SB2540sam001- 25 -LRB100 15500 RJF 39059 a

1            (D) a requirement that the budget include
2        information necessary for analyzing cost and
3        performance for use in Budgeting for Results; and
4            (E) caps on the amount of salaries that may be
5        charged to grants based on the limitations imposed by
6        federal agencies.
7        (6) The development of pre-qualification requirements
8    for applicants, including the fiscal condition of the
9    organization and the provision of the following
10    information:
11            (A) organization name;
12            (B) Federal Employee Identification Number;
13            (C) Data Universal Numbering System (DUNS) number;
14            (D) fiscal condition;
15            (E) whether the applicant is in good standing with
16        the Secretary of State;
17            (F) past performance in administering grants;
18            (G) whether the applicant is or has ever been on
19        the Debarred and Suspended List maintained by the
20        Governor's Office of Management and Budget;
21            (H) whether the applicant is or has ever been on
22        the federal Excluded Parties List; and
23            (I) whether the applicant is or has ever been on
24        the Sanctioned Party List maintained by the Illinois
25        Department of Healthcare and Family Services.
26    Nothing in this Act affects the provisions of the Fiscal

 

 

10000SB2540sam001- 26 -LRB100 15500 RJF 39059 a

1Control and Internal Auditing Act nor the requirement that the
2management of each State agency is responsible for maintaining
3effective internal controls under that Act.
4    For public institutions of higher education, the
5provisions of this Section apply only to awards funded by State
6appropriations and federal pass-through awards from a State
7agency to public institutions of higher education.
8(Source: P.A. 98-706, eff. 7-16-14; 99-523, eff. 6-30-16.)
 
9    (30 ILCS 708/50)
10    (Section scheduled to be repealed on July 16, 2020)
11    Sec. 50. State grant-making agency responsibilities.
12    (a) The specific requirements and responsibilities of
13State grant-making agencies and non-federal entities are set
14forth in this Act. State agencies making State awards to
15non-federal entities must adopt by rule the language in 2 CFR
16200, Subpart C through Subpart F unless different provisions
17are required by law.
18    (b) Each State grant-making agency shall appoint a Chief
19Accountability Officer who shall serve as a liaison to the
20Grant Accountability and Transparency Unit and who shall be
21responsible for the State agency's implementation of and
22compliance with the rules.
23    (c) In order to effectively measure the performance of its
24recipients and subrecipients, each State grant-making agency
25shall:

 

 

10000SB2540sam001- 27 -LRB100 15500 RJF 39059 a

1        (1) require its recipients and subrecipients to relate
2    financial data to performance accomplishments of the award
3    and, when applicable, must require recipients and
4    subrecipients to provide cost information to demonstrate
5    cost-effective practices. The recipient's and
6    subrecipient's performance should be measured in a way that
7    will help the State agency to improve program outcomes,
8    share lessons learned, and spread the adoption of promising
9    practices; and
10        (2) provide recipients and subrecipients with clear
11    performance goals, indicators, and milestones and must
12    establish performance reporting frequency and content to
13    not only allow the State agency to understand the
14    recipient's progress, but also to facilitate
15    identification of promising practices among recipients and
16    subrecipients and build the evidence upon which the State
17    agency's program and performance decisions are made.
18    (c-5) Each State grant-making agency shall, when it is in
19the best interests of the State, request that the Office of the
20Comptroller issue a stop payment order in accordance with
21Section 105 of this Act.
22    (c-6) Upon notification by the Grant Transparency and
23Accountability Unit that a stop payment order has been
24requested by a State grant-making agency, each State
25grant-making agency who has issued a grant to that recipient or
26subrecipient shall determine if it remains in the best

 

 

10000SB2540sam001- 28 -LRB100 15500 RJF 39059 a

1interests of the State to continue to issue payments to the
2recipient or subrecipient.
3    (d) The Governor's Office of Management and Budget shall
4provide such advice and technical assistance to the State
5grant-making agencies as is necessary or indicated in order to
6ensure compliance with this Act.
7    (e) In accordance with this Act and the Illinois State
8Collection Act of 1986, refunds required under the Grant Funds
9Recovery Act may be referred to the Comptroller's offset
10system.
11(Source: P.A. 98-706, eff. 7-16-14.)
 
12    (30 ILCS 708/55)
13    (Section scheduled to be repealed on July 16, 2020)
14    Sec. 55. The Governor's Office of Management and Budget
15responsibilities.
16    (a) The Governor's Office of Management and Budget shall:
17        (1) provide technical assistance and interpretations
18    of policy requirements in order to ensure effective and
19    efficient implementation of this Act by State grant-making
20    agencies; and
21        (2) have authority to approve any exceptions to the
22    requirements of this Act and shall adopt rules governing
23    the criteria to be considered when an exception is
24    requested; exceptions shall only be made in particular
25    cases where adequate justification is presented.

 

 

10000SB2540sam001- 29 -LRB100 15500 RJF 39059 a

1    (b) The Governor's Office of Management and Budget shall,
2on or before July 1, 2016, establish a centralized unit within
3the Governor's Office of Management and Budget. The centralized
4unit shall be known as the Grant Accountability and
5Transparency Unit and shall be funded with a portion of the
6administrative funds provided under existing and future State
7and federal pass-through grants. The amounts charged will be
8allocated based on the actual cost of the services provided to
9State grant-making agencies and public institutions of higher
10education in accordance with the applicable federal cost
11principles contained in 2 CFR 200 and this Act will not cause
12the reduction in the amount of any State or federal grant
13awards that have been or will be directed towards State
14agencies or public institutions of higher education.
15    (c) The Governor's Office of Management and Budget, in
16conjunction with the Illinois Single Audit Commission, shall
17research and provide recommendations to the General Assembly
18regarding the adoption of legislation in accordance with the
19federal Improper Payments Elimination and Recovery Improvement
20Act of 2012. The recommendations shall be included in the
21Annual Report of the Commission to be submitted to the General
22Assembly on January 1, 2020. This subsection (c) is inoperative
23on and after January 1, 2021.
24(Source: P.A. 98-706, eff. 7-16-14; 99-523, eff. 6-30-16.)
 
25    (30 ILCS 708/95)

 

 

10000SB2540sam001- 30 -LRB100 15500 RJF 39059 a

1    (Section scheduled to be repealed on July 16, 2020)
2    Sec. 95. Annual report. Effective January 1, 2016 and each
3January 1 thereafter, the Governor's Office of Management and
4Budget, in conjunction with the Illinois Single Audit
5Commission, shall submit to the Governor and the General
6Assembly a report that demonstrates the efficiencies, cost
7savings, and reductions in fraud, waste, and abuse as a result
8of the implementation of this Act and the rules adopted by the
9Governor's Office of Management and Budget in accordance with
10the provisions of this Act. The report shall include, but not
11be limited to:
12        (1) the number of entities placed on the Illinois
13    Debarred and Suspended List;
14        (2) any savings realized as a result of the
15    implementation of this Act;
16        (3) any reduction in the number of duplicative audit
17    report reviews audits;
18        (4) the number of persons trained to assist grantees
19    and subrecipients; and
20        (5) the number of grantees and subrecipients to whom a
21    fiscal agent was assigned.
22(Source: P.A. 98-706, eff. 7-16-14.)
 
23    (30 ILCS 708/105 new)
24    Sec. 105. Stop payment procedures.
25    (a) On or before July 1, 2019, the Governor's Office of

 

 

10000SB2540sam001- 31 -LRB100 15500 RJF 39059 a

1Management and Budget shall adopt rules pertaining to the
2following:
3        (1) factors to be considered in determining whether to
4    issue a stop payment order shall include whether or not a
5    stop payment order is in the best interests of the State;
6        (2) factors to be considered in determining whether a
7    stop payment order should be lifted; and
8        (3) procedures for notification to the recipient or
9    subrecipient of the issuance of a stop payment order, the
10    lifting of a stop payment order, and any other related
11    information.
12    (b) On or before December 31, 2019, the Governor's Office
13of Management and Budget shall, in conjunction with State
14grant-making agencies, adopt rules pertaining to the
15following:
16        (1) policies regarding the issuance of stop payment
17    orders;
18        (2) policies regarding the lifting of stop payment
19    orders;
20        (3) policies regarding corrective actions required of
21    recipients and subrecipients in the event a stop payment
22    order is issued; and
23        (4) policies regarding the coordination of
24    communications between the Office of the Comptroller and
25    State grant-making agencies regarding the issuance of stop
26    payment orders and the lifting of such orders.

 

 

10000SB2540sam001- 32 -LRB100 15500 RJF 39059 a

1    (c) On or before July 1, 2020, the Office of the
2Comptroller shall establish stop payment procedures that shall
3cause the cessation of payments to a recipient or subrecipient.
4Such a temporary or permanent cessation of payments will occur
5pursuant to a stop payment order requested by a State
6grant-making agency and implemented by the Office of the
7Comptroller.
8    (d) The State grant-making agency shall maintain a file
9pertaining to all stop payment orders which shall include, at a
10minimum:
11        (1) The notice to the recipient or subrecipient that a
12    stop payment order has been issued. The notice shall
13    include:
14            (A) The name of the grant.
15            (B) The grant number.
16            (C) The name of the State agency that issued the
17        grant.
18            (D) The reasons for the stop payment order.
19            (E) Any other relevant information.
20        (2) The order lifting the stop payment order, if
21    applicable.
22    (e) The Grant Accountability and Transparency Unit shall
23determine and disseminate factors that State agencies shall
24consider when determining whether it is in the best interests
25of the State to permanently or temporarily cease payments to a
26recipient or subrecipient who has had a stop payment order

 

 

10000SB2540sam001- 33 -LRB100 15500 RJF 39059 a

1requested by another State agency.
2    (f) The Office of the Comptroller and the Governor's Office
3of Management and Budget grant systems shall determine if the
4recipient or subrecipient has received grants from other State
5grant-making agencies.
6    (g) Upon notice from the Office of the Comptroller, the
7Grant Accountability and Transparency Unit shall notify all
8State grant-making agencies who have issued grants to a
9recipient or subrecipient whose payments have been subject to a
10stop payment order that a stop payment order has been requested
11by another State grant-making agency.
12    (h) Upon notice from the Grant Accountability and
13Transparency Unit, each State grant-making agency who has
14issued a grant to a recipient or subrecipient whose payments
15have been subject to a stop payment order shall review and
16assess all grants issued to that recipient or subrecipient.
17State agencies shall use factors provided by the Governor's
18Office of Management and Budget or the Grant Accountability and
19Transparency Unit to determine whether it is the best interests
20of the State to request a stop payment order.
 
21    (30 ILCS 708/110 new)
22    Sec. 110. Documentation of award decisions. Each award that
23is granted pursuant to an application process must include
24documentation to support the award.
25    (a) For each State or federal pass-through award that is

 

 

10000SB2540sam001- 34 -LRB100 15500 RJF 39059 a

1granted following an application process, the State
2grant-making agency shall create a grant award file. The grant
3award file shall contain, at a minimum:
4        (1) A description of the grant.
5        (2) The Notice of Opportunity, if applicable.
6        (3) All applications received in response to the Notice
7    of Opportunity, if applicable.
8        (4) Copies of any written communications between an
9    applicant and the State grant-making agency, if
10    applicable.
11        (5) The criteria used to evaluate the applications, if
12    applicable.
13        (6) The scores assigned to each applicant according to
14    the criteria, if applicable.
15        (7) A written determination, signed by an authorized
16    representative of the State grant-making agency, setting
17    forth the reason for the grant award decision, if
18    applicable.
19        (8) The Notice of Award.
20        (9) Any other pre-award documents.
21        (10) The grant agreement and any renewals, if
22    applicable;
23        (11) All post-award, administration, and close-out
24    documents relating to the grant.
25        (12) Any other information relevant to the grant award.
26    (b) The grant file shall not include trade secrets or other

 

 

10000SB2540sam001- 35 -LRB100 15500 RJF 39059 a

1competitively sensitive, confidential, or proprietary
2information.
3    (c) Each grant file shall be maintained by the State
4grant-making agency and, subject to the provisions of the
5Freedom of Information Act, shall be available for public
6inspection and copying within 7 calendar days following award
7of the grant.
 
8    (30 ILCS 708/115 new)
9    Sec. 115. Certifications and representations. Unless
10prohibited by State or federal statute, regulation, or
11administrative rule, each State awarding agency or
12pass-through entity is authorized to require the recipient or
13subrecipient to submit certifications and representations
14required by State or federal statute, regulation, or
15administrative rule.
 
16    (30 ILCS 708/120 new)
17    Sec. 120. Required certifications. To assure that
18expenditures are proper and in accordance with the terms and
19conditions of the grant award and approved project budgets, all
20periodic and final financial reports, and all payment requests
21under the grant agreement, must include a certification, signed
22by an official who is authorized to legally bind the grantee or
23subrecipient, that reads as follows:
24        "By signing this report and/or payment request, I

 

 

10000SB2540sam001- 36 -LRB100 15500 RJF 39059 a

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

 

 

10000SB2540sam001- 37 -LRB100 15500 RJF 39059 a

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

 

 

10000SB2540sam001- 38 -LRB100 15500 RJF 39059 a

1allowable only to the extent such costs do not exceed charges
2normally allowed by the rules of the Governor's Travel Control
3Board. In addition, if these costs are charged directly to the
4State or federal pass-through award documentation must justify
5that:
6        (1) participation of the individual is necessary to the
7    State or federal pass-through award; and
8        (2) the costs are reasonable and consistent with the
9    rules of the Governor's Travel Control Board.
10    (c) Commercial air travel. Airfare costs in excess of the
11basic least expensive unrestricted accommodations class
12offered by commercial airlines are unallowable except when such
13accommodations would:
14        (1) require circuitous routing;
15        (2) require travel during unreasonable hours;
16        (3) excessively prolong travel;
17        (4) result in additional costs that would offset the
18    transportation savings; or
19        (5) offer accommodations not reasonably adequate for
20    the traveler's medical needs.
 
21    (30 ILCS 708/520 new)
22    Sec. 520. Separate accounts for State grant funds.
23Notwithstanding any provision of law to the contrary, all
24grants made and any grant agreement entered into, renewed, or
25extended on or after the effective date of this amendatory Act

 

 

10000SB2540sam001- 39 -LRB100 15500 RJF 39059 a

1of the 100th General Assembly, between a State grant-making
2agency and a nonprofit organization, shall require the
3nonprofit organization receiving grant funds to maintain those
4funds in an account which is separate and distinct from any
5account holding non-grant funds. Except as otherwise provided
6in an agreement between a State grant-making agency and a
7nonprofit organization, the grant funds held in a separate
8account by a nonprofit organization shall not be used for
9non-grant-related activities, and any unused grant funds shall
10be returned to the State grant-making agency.
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.".