Placed on Calendar Order of 3rd Reading May 19, 2017
Statutes Amended In Order of Appearance
Synopsis As Introduced Creates the Social Services Contract Notice Act. Provides that the Act applies only to non-governmental service providers who deliver social services designed to ensure the health, safety, education, or welfare of Illinois residents on behalf of the State through grants, contracts, or agreements with State agencies; and applies regardless of the source of the funds with which the grants, contracts, or agreements are paid, including federal assistance moneys. Provides that the Act does not apply to: (i) grants, contracts, or agreements with State agencies for the primary purpose of delivering or producing goods on behalf of the State; (ii) contracts between the State and its political subdivisions or other governments or between State governmental bodies; or (iii) modifications to contractor payment by the State resulting from the generally accepted accounting principles (GAAP) reconciliation process, the Illinois Grant Funds Recovery Act, or the service provider's underutilization of contract value, as determined by the State. Provides that any contract between a State agency and an authorized service provider may be terminated, suspended, or reduced by either party to the contract upon 30 days prior written notice. Permits the State to immediately terminate a contract for social services if the authorized service provider has made material misrepresentations or material omissions explicitly prohibited under State contracting requirements. Provides that the provision applies to agreements or contracts executed on or after the effective date of the Act. Requires State agencies to notify the Governor and other specified persons in writing of their intention to suspend, terminate, or reduce one or more contracts for social services. Defines terms. Effective immediately.
Fiscal Note (Dept. of Human Services)
The fiscal impact for HB 3110 cannot be determined. However, it would have an impact when the Department of Human Services and other State agencies cannot reduce expenditures by limiting contracts/grants in a timely manner.