State of Illinois
90th General Assembly
Legislation

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90_HB1744

      New Act
          Creates  the  Grant  and  Loan   Program   Administrative
      Expenses  Act.  Provides that when a unit of local government
      is entitled under State  or  federal  law  or  regulation  to
      recover  or  retain  funds  to  reimburse  the  unit of local
      government for its administrative expenses  incurred  in  the
      administration  of a grant or loan program, the unit of local
      government will be reimbursed for indirect and direct  costs.
      Provides  that  the  unit  of  local  government shall not be
      reimbursed  for  indirect  costs  if  that  reimbursement  is
      inconsistent   with   any   conditions,    limitations,    or
      prohibitions   imposed  under  federal  law  or  regulations.
      Effective immediately.
                                                     LRB9005072KDks
                                               LRB9005072KDks
 1        AN ACT in relation to certain grant and loan programs.
 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:
 4        Section  1.  Short  title.   This Act may be cited as the
 5    Grant and Loan Program Administrative Expense Act.
 6        Section 5.  Definitions.  As used in this Act:
 7        "Grant or loan program" means any State or federal  grant
 8    or  loan  program  administered  by  the Department of Public
 9    Health, the Department of Children and Family  Services,  the
10    Department  of Commerce and Community Affairs, the Department
11    on Aging, until July 1, 1997 the Department of Alcoholism and
12    Substance Abuse, or the Department of Human Services  at  the
13    State  level,  and  by units of local government on the local
14    level.
15        "Indirect costs" means that portion of  the  costs  to  a
16    unit  of local government that are incurred for more than one
17    purpose that is allocable to the  costs  of  administering  a
18    grant  or  loan  program under standard accounting principals
19    and, when applicable, federal law or regulations.
20        Section 10.  Reimbursement  of  administrative  expenses.
21    When  a  unit  of local government is entitled under State or
22    federal law or regulation  to  recover  or  retain  funds  to
23    reimburse the unit of local government for its administrative
24    expenses  incurred  in  the administration of a grant or loan
25    program, the administrative expenses for which  reimbursement
26    shall be made shall include the indirect costs as well as the
27    direct  costs to the unit of local government.  However, this
28    Act shall not permit the reimbursement for indirect costs  to
29    the  extent  that  the reimbursement is inconsistent with any
30    conditions, limitations,  or  prohibitions  imposed  under  a
                            -2-                LRB9005072KDks
 1    federal law or regulation.
 2        Section  99.  Effective date.  This Act takes effect upon
 3    becoming law.

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