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Public Act 100-0153


 

Public Act 0153 100TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 100-0153
 
HB3110 EnrolledLRB100 08886 KTG 19029 b

    AN ACT concerning State government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 1. Short title. This Act may be cited as the Social
Services Contract Notice Act.
 
    Section 5. Purpose and policy.
    (a) Recognizing that the loss of vital social services
causes turmoil and harm for the people of our State, the
General Assembly supports: responsible fiscal foresight and
planning to prevent such losses, advance notice to the public
when losses to vital services are unavoidable, and addressing
uncertainty in the State's contracting practices, all of which
affect service providers' fiscal stability, employment
capacity, and economic contributions to the State.
    (b) It is the purpose of this Act and is declared to be the
policy of the State that the principles of fair and responsible
business practices shall be applicable to provider agencies
delivering social services on behalf of the State; and that
Illinoisans shall be advised in advance of service reductions
to programs that are designed to ensure the health, safety,
education, or welfare of Illinois residents.
 
    Section 10. Definitions. As used in this Act:
    (a) "Authorized service provider" means a non-governmental
entity responsible for providing services on behalf of the
State of Illinois under a contract with a State agency.
    (b) "Contract" means all types of State agreements for
social service delivery, regardless of what they may be called,
including grants, fee-for-service, fixed rate,
cost-reimbursement, purchase of care, renewals, and
amendments. It does not include agreements procured for goods.
    (c) "Direct services" means those services that are
provided on behalf of Illinois residents by an authorized
service provider.
    (d) "Reduction of contract" means a decrease in the defined
or estimated contract value. This is not inclusive of
adjustments made by the State through the generally accepted
accounting principles (GAAP) reconciliation process, under the
Illinois Grant Funds Recovery Act, or on account of the service
provider's underutilization of contract value, as determined
by the State.
    (e) "Social services" or "services" means direct services
that are provided by a State agency through a grant awarded to
or service agreement or contract with an authorized service
provider and that are designed to ensure the health, safety,
education, or welfare of Illinois residents.
    (f) "State agency" means:
        (1) the Department on Aging or its successor agency;
        (2) the Department of Children and Family Services or
    its successor agency;
        (3) the Department of Healthcare and Family Services or
    its successor agency;
        (4) the Department of Human Services or its successor
    agency;
        (5) the Department of Public Health or its successor
    agency;
        (6) the Department of Corrections or its successor
    agency;
        (7) the Department of Juvenile Justice or its successor
    agency;
        (8) the Illinois Criminal Justice Information
    Authority or its successor agency;
        (9) the Illinois State Board of Education or its
    successor agency;
        (10) the Illinois Community College Board or its
    successor agency;
        (11) the Illinois Housing Development Authority or its
    successor agency;
        (12) the Department of Employment Security or its
    successor agency;
        (13) the Department of Veterans' Affairs or its
    successor agency;
        (14) the Department of Military Affairs or its
    successor agency;
        (15) the Illinois Emergency Management Agency or its
    successor agency;
        (16) the Department of Commerce and Economic
    Opportunity or its successor agency;
        (17) any commission, board, or authority within the
    State agencies or successor agencies listed in this
    Section; or
        (18) any State agency, or its successor agency,
    designated to enter into contracts with one or more
    authorized service providers on behalf of a State agency
    subject to this Act.
 
    Section 15. Application.
    (a) This 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. This Act does not apply to:
        (1) Grants, contracts, or agreements with State
    agencies for the primary purpose of delivering or producing
    goods on behalf of the State.
        (2) Contracts between the State and its political
    subdivisions or other governments or between State
    governmental bodies.
        (3) Modifications to contractor payment by the State
    resulting from the GAAP reconciliation process, the
    Illinois Grant Funds Recovery Act, or the service
    provider's underutilization of contract value, as
    determined by the State.
    (b) This Act applies regardless of the source of the funds
with which the grants, contracts, or agreements are paid,
including federal assistance moneys.
 
    Section 20. Reduction of contract.
    (a) Any contract between a State agency and an authorized
service provider for the provision of social services may be
terminated, suspended, or reduced by either party to the
contract for any or no reason upon 30 days prior written notice
to the other party.
    (b) A written notice issued by a State agency pursuant to
subsection (a) shall include the date upon which the authorized
service provider must submit its final invoice to the State
agency for payment of services rendered.
    (c) Notwithstanding subsections (a) and (b), the State
agency may, upon written notice, 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.
    (d) Nothing in this Section affects the parties' ability to
immediately terminate a contract for breach of contract or if
the actions or inactions of the service provider, its agents,
employees, or subcontractors have caused, or reasonably could
cause, jeopardy to health, safety, or property.
    (e) This Section applies to agreements or contracts
executed on or after the effective date of this Act.
 
    Section 25. Notice.
    (a) If a State agency that provides social services to
Illinois residents through a contract with an authorized
service provider intends to suspend, terminate, or reduce the
amount of one or more contracts for a particular social
services program due to the failure of appropriation or a
reduction in the amount of available funds to support the
program, the State agency shall notify the Governor, the
Speaker of the House of Representatives, the Minority Leader of
the House of Representatives, the President of the Senate, and
the Minority Leader of the Senate in writing of its intent to
suspend, terminate, or reduce one or more contracts. Such
notice shall be provided no less than 45 days before the State
agency suspends, terminates, or reduces the contract and must
include the level of appropriations required to prevent any
suspension, termination, or reduction.
    (b) This Section applies to contracts entered before, on,
or after the effective date of this Act.
    (c) Failure of a State agency to submit notice to the
General Assembly as required under this Section shall not
prevent termination, suspension, or reduction of a contract
entered into prior to the effective date of this Act.
 
    Section 30. Waiver. The requirements of this Act may not be
waived by agreement.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/18/2017