SB2540 EngrossedLRB100 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 Governor's Office of Management and Budget

 

 

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1Act is amended by adding Sections 2.11 and 2.12 as follows:
 
2    (20 ILCS 3005/2.11 new)
3    Sec. 2.11. Stop payment orders. Upon a request for a stop
4payment order from a State grant-making agency for a recipient
5or subrecipient, the Office of the Comptroller shall notify the
6Grant Accountability and Transparency Unit within 30 days of
7the request.
 
8    (20 ILCS 3005/2.12 new)
9    Sec. 2.12. Improper payment elimination recommendations.
10Pursuant to Section 15.5 of the Grant Funds Recovery Act, the
11Governor's Office of Management and Budget, in conjunction with
12the Illinois Single Audit Commission, shall research and
13provide recommendations to the General Assembly regarding the
14adoption of legislation, in accordance with the federal
15Improper Payments Elimination and Recovery Improvement Act of
162012. The recommendations shall be included in the Annual
17Report of the Commission to be submitted to the General
18Assembly on January 1, 2020. This Section is repealed January
191, 2021.
 
20    Section 15. The State Finance Act is amended by changing
21Section 35 as follows:
 
22    (30 ILCS 105/35)  (from Ch. 127, par. 167.03)

 

 

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1    Sec. 35. As used in this Section, "state agency" is defined
2as provided in the Illinois State Auditing Act, except that
3this Section does not apply to state colleges and universities,
4the Illinois Mathematics and Science Academy, and their
5respective governing boards.
6    When any State agency receives a grant or contract from
7itself or another State agency from appropriated funds the
8recipient agency shall be restricted in the expenditure of
9these funds to the period during which the grantor agency was
10so restricted and to the terms and conditions under which such
11other agency received the appropriation. , The restrictions
12shall include: any applicable restrictions in Section 25 of
13this Act, applicable federal regulations, and to the terms,
14conditions and limitations of the appropriations to the other
15agency, even if the funds are deposited or interfund
16transferred for use in a non-appropriated fund. No State agency
17may accept or expend funds under a grant or contract for any
18purpose, program or activity not within the scope of the
19agency's powers and duties under Illinois law.
20(Source: P.A. 88-9.)
 
21    Section 20. The Illinois Grant Funds Recovery Act is
22amended by adding Section 15.5 as follows:
 
23    (30 ILCS 705/15.5 new)
24    Sec. 15.5. Recommendations of the Illinois Single Audit

 

 

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1Commission regarding the elimination and recovery of improper
2payments. The Illinois Single Audit Commission, in conjunction
3with the Governor's Office of Management and Budget, shall
4research and provide recommendations to the General Assembly
5regarding the adoption of legislation in accordance with the
6federal Improper Payments Elimination and Recovery Improvement
7Act of 2012. The recommendations shall be included in the
8Annual Report of the Commission to be submitted to the General
9Assembly on January 1, 2020. This Section is repealed January
101, 2021.
 
11    Section 25. The Grant Accountability and Transparency Act
12is amended by changing Sections 15, 25, 50, 55, and 95 and by
13adding Sections 105, 110, 115, 120, 125, 130, and 520 as
14follows:
 
15    (30 ILCS 708/15)
16    (Section scheduled to be repealed on July 16, 2020)
17    Sec. 15. Definitions. As used in this Act:
18    "Allowable cost" means a cost allowable to a project if:
19        (1) the costs are reasonable and necessary for the
20    performance of the award;
21        (2) the costs are allocable to the specific project;
22        (3) the costs are treated consistently in like
23    circumstances to both federally-financed and other
24    activities of the non-federal entity;

 

 

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1        (4) the costs conform to any limitations of the cost
2    principles or the sponsored agreement;
3        (5) the costs are accorded consistent treatment; a cost
4    may not be assigned to a State or federal award as a direct
5    cost if any other cost incurred for the same purpose in
6    like circumstances has been allocated to the award as an
7    indirect cost;
8        (6) the costs are determined to be in accordance with
9    generally accepted accounting principles;
10        (7) the costs are not included as a cost or used to
11    meet federal cost-sharing or matching requirements of any
12    other program in either the current or prior period;
13        (8) the costs of one State or federal grant are not
14    used to meet the match requirements of another State or
15    federal grant; and
16        (9) the costs are adequately documented.
17    "Auditee" means any non-federal entity that expends State
18or federal awards that must be audited.
19    "Auditor" means an auditor who is a public accountant or a
20federal, State, or local government audit organization that
21meets the general standards specified in generally-accepted
22government auditing standards. "Auditor" does not include
23internal auditors of nonprofit organizations.
24    "Auditor General" means the Auditor General of the State of
25Illinois.
26    "Award" means financial assistance that provides support

 

 

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1or stimulation to accomplish a public purpose. "Awards" include
2grants and other agreements in the form of money, or property
3in lieu of money, by the State or federal government to an
4eligible recipient. "Award" does not include: technical
5assistance that provides services instead of money; other
6assistance in the form of loans, loan guarantees, interest
7subsidies, or insurance; direct payments of any kind to
8individuals; or contracts that must be entered into and
9administered under State or federal procurement laws and
10regulations.
11    "Budget" means the financial plan for the project or
12program that the awarding agency or pass-through entity
13approves during the award process or in subsequent amendments
14to the award. It may include the State or federal and
15non-federal share or only the State or federal share, as
16determined by the awarding agency or pass-through entity.
17    "Catalog of Federal Domestic Assistance" or "CFDA" means a
18database that helps the federal government track all programs
19it has domestically funded.
20    "Catalog of Federal Domestic Assistance number" or "CFDA
21number" means the number assigned to a federal program in the
22CFDA.
23    "Catalog of State Financial Assistance" means the single,
24authoritative, statewide, comprehensive source document of
25State financial assistance program information maintained by
26the Governor's Office of Management and Budget.

 

 

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1    "Catalog of State Financial Assistance Number" means the
2number assigned to a State program in the Catalog of State
3Financial Assistance. The first 3 digits represent the State
4agency number and the last 4 digits represent the program.
5    "Cluster of programs" means a grouping of closely related
6programs that share common compliance requirements. The types
7of clusters of programs are research and development, student
8financial aid, and other clusters. A "cluster of programs"
9shall be considered as one program for determining major
10programs and, with the exception of research and development,
11whether a program-specific audit may be elected.
12    "Cognizant agency for audit" means the federal agency
13designated to carry out the responsibilities described in 2 CFR
14200.513(a).
15    "Contract" means a legal instrument by which a non-federal
16entity purchases property or services needed to carry out the
17project or program under an award. "Contract" does not include
18a legal instrument, even if the non-federal entity considers it
19a contract, when the substance of the transaction meets the
20definition of an award or subaward.
21    "Contractor" means an entity that receives a contract.
22    "Cooperative agreement" means a legal instrument of
23financial assistance between an awarding agency or
24pass-through entity and a non-federal entity that:
25        (1) is used to enter into a relationship with the
26    principal purpose of transferring anything of value from

 

 

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1    the awarding agency or pass-through entity to the
2    non-federal entity to carry out a public purpose authorized
3    by law, but is not used to acquire property or services for
4    the awarding agency's or pass-through entity's direct
5    benefit or use; and
6        (2) is distinguished from a grant in that it provides
7    for substantial involvement between the awarding agency or
8    pass-through entity and the non-federal entity in carrying
9    out the activity contemplated by the award.
10    "Cooperative agreement" does not include a cooperative
11research and development agreement, nor an agreement that
12provides only direct cash assistance to an individual, a
13subsidy, a loan, a loan guarantee, or insurance.
14    "Corrective action" means action taken by the auditee that
15(i) corrects identified deficiencies, (ii) produces
16recommended improvements, or (iii) demonstrates that audit
17findings are either invalid or do not warrant auditee action.
18    "Cost objective" means a program, function, activity,
19award, organizational subdivision, contract, or work unit for
20which cost data is desired and for which provision is made to
21accumulate and measure the cost of processes, products, jobs,
22and capital projects. A "cost objective" may be a major
23function of the non-federal entity, a particular service or
24project, an award, or an indirect cost activity.
25    "Cost sharing" means the portion of project costs not paid
26by State or federal funds, unless otherwise authorized by

 

 

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1statute.
2    "Development" is the systematic use of knowledge and
3understanding gained from research directed toward the
4production of useful materials, devices, systems, or methods,
5including design and development of prototypes and processes.
6    "Data Universal Numbering System number" means the 9-digit
7number established and assigned by Dun and Bradstreet, Inc. to
8uniquely identify entities and, under federal law, is required
9for non-federal entities to apply for, receive, and report on a
10federal award.
11    "Direct costs" means costs that can be identified
12specifically with a particular final cost objective, such as a
13State or federal or federal pass-through award or a particular
14sponsored project, an instructional activity, or any other
15institutional activity, or that can be directly assigned to
16such activities relatively easily with a high degree of
17accuracy.
18    "Equipment" means tangible personal property (including
19information technology systems) having a useful life of more
20than one year and a per-unit acquisition cost that equals or
21exceeds the lesser of the capitalization level established by
22the non-federal entity for financial statement purposes, or
23$5,000.
24    "Executive branch" means that branch of State government
25that is under the jurisdiction of the Governor.
26    "Federal agency" has the meaning provided for "agency"

 

 

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1under 5 U.S.C. 551(1) together with the meaning provided for
2"agency" by 5 U.S.C. 552(f).
3    "Federal award" means:
4        (1) the federal financial assistance that a
5    non-federal entity receives directly from a federal
6    awarding agency or indirectly from a pass-through entity;
7        (2) the cost-reimbursement contract under the Federal
8    Acquisition Regulations that a non-federal entity receives
9    directly from a federal awarding agency or indirectly from
10    a pass-through entity; or
11        (3) the instrument setting forth the terms and
12    conditions when the instrument is the grant agreement,
13    cooperative agreement, other agreement for assistance
14    covered in paragraph (b) of 20 CFR 200.40, or the
15    cost-reimbursement contract awarded under the Federal
16    Acquisition Regulations.
17    "Federal award" does not include other contracts that a
18federal agency uses to buy goods or services from a contractor
19or a contract to operate federal government owned,
20contractor-operated facilities.
21    "Federal awarding agency" means the federal agency that
22provides a federal award directly to a non-federal entity.
23    "Federal interest" means, for purposes of 2 CFR 200.329 or
24when used in connection with the acquisition or improvement of
25real property, equipment, or supplies under a federal award,
26the dollar amount that is the product of the federal share of

 

 

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

 

 

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1    assistance" means assistance that non-federal entities
2    receive or administer in the form of:
3            (A) grants;
4            (B) cooperative agreements;
5            (C) non-cash contributions or donations of
6        property, including donated surplus property;
7            (D) direct appropriations;
8            (E) food commodities; and
9            (F) other financial assistance, except assistance
10        listed in paragraph (2) of this definition.
11        (2) "Financial assistance" includes assistance that
12    non-federal entities receive or administer in the form of
13    loans, loan guarantees, interest subsidies, and insurance.
14        (3) "Financial assistance" does not include amounts
15    received as reimbursement for services rendered to
16    individuals.
17    "Fixed amount awards" means a type of grant agreement under
18which the awarding agency or pass-through entity provides a
19specific level of support without regard to actual costs
20incurred under the award. "Fixed amount awards" reduce some of
21the administrative burden and record-keeping requirements for
22both the non-federal entity and awarding agency or pass-through
23entity. Accountability is based primarily on performance and
24results.
25    "Foreign public entity" means:
26        (1) a foreign government or foreign governmental

 

 

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1    entity;
2        (2) a public international organization that is
3    entitled to enjoy privileges, exemptions, and immunities
4    as an international organization under the International
5    Organizations Immunities Act (22 U.S.C. 288-288f);
6        (3) an entity owned, in whole or in part, or controlled
7    by a foreign government; or
8        (4) any other entity consisting wholly or partially of
9    one or more foreign governments or foreign governmental
10    entities.
11    "Foreign organization" means an entity that is:
12        (1) a public or private organization located in a
13    country other than the United States and its territories
14    that are subject to the laws of the country in which it is
15    located, irrespective of the citizenship of project staff
16    or place of performance;
17        (2) a private nongovernmental organization located in
18    a country other than the United States that solicits and
19    receives cash contributions from the general public;
20        (3) a charitable organization located in a country
21    other than the United States that is nonprofit and tax
22    exempt under the laws of its country of domicile and
23    operation, but is not a university, college, accredited
24    degree-granting institution of education, private
25    foundation, hospital, organization engaged exclusively in
26    research or scientific activities, church, synagogue,

 

 

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1    mosque, or other similar entity organized primarily for
2    religious purposes; or
3        (4) an organization located in a country other than the
4    United States not recognized as a Foreign Public Entity.
5    "Generally Accepted Accounting Principles" has the meaning
6provided in accounting standards issued by the Government
7Accounting Standards Board and the Financial Accounting
8Standards Board.
9    "Generally Accepted Government Auditing Standards" means
10generally accepted government auditing standards issued by the
11Comptroller General of the United States that are applicable to
12financial audits.
13    "Grant agreement" means a legal instrument of financial
14assistance between an awarding agency or pass-through entity
15and a non-federal entity that:
16        (1) is used to enter into a relationship, the principal
17    purpose of which is to transfer anything of value from the
18    awarding agency or pass-through entity to the non-federal
19    entity to carry out a public purpose authorized by law and
20    not to acquire property or services for the awarding agency
21    or pass-through entity's direct benefit or use; and
22        (2) is distinguished from a cooperative agreement in
23    that it does not provide for substantial involvement
24    between the awarding agency or pass-through entity and the
25    non-federal entity in carrying out the activity
26    contemplated by the award.

 

 

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1    "Grant agreement" does not include an agreement that
2provides only direct cash assistance to an individual, a
3subsidy, a loan, a loan guarantee, or insurance.
4    "Grant application" means a specified form that is
5completed by a non-federal entity in connection with a request
6for a specific funding opportunity or a request for financial
7support of a project or activity.
8    "Hospital" means a facility licensed as a hospital under
9the law of any state or a facility operated as a hospital by
10the United States, a state, or a subdivision of a state.
11    "Illinois Debarred and Suspended List" means the list
12maintained by the Governor's Office of Management and Budget
13that contains the names of those individuals and entities that
14are ineligible, either temporarily or permanently, from
15receiving an award of grant funds from the State.
16    "Indian tribe" (or "federally recognized Indian tribe")
17means any Indian tribe, band, nation, or other organized group
18or community, including any Alaska Native village or regional
19or village corporation as defined in or established pursuant to
20the federal Alaska Native Claims Settlement Act (43 U.S.C.
211601, et seq.) that is recognized as eligible for the special
22programs and services provided by the United States to Indians
23because of their status as Indians under 25 U.S.C. 450b(e), as
24set forth in the annually published Bureau of Indian Affairs
25list of Indian Entities Recognized and Eligible to Receive
26Services.

 

 

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1    "Indirect cost" means those costs incurred for a common or
2joint purpose benefitting more than one cost objective and not
3readily assignable to the cost objectives specifically
4benefitted without effort disproportionate to the results
5achieved.
6    "Inspector General" means the Office of the Executive
7Inspector General for Executive branch agencies.
8    "Loan" means a State or federal loan or loan guarantee
9received or administered by a non-federal entity. "Loan" does
10not include a "program income" as defined in 2 CFR 200.80.
11    "Loan guarantee" means any State or federal government
12guarantee, insurance, or other pledge with respect to the
13payment of all or a part of the principal or interest on any
14debt obligation of a non-federal borrower to a non-federal
15lender, but does not include the insurance of deposits, shares,
16or other withdrawable accounts in financial institutions.
17    "Local government" has the meaning provided for the term
18"units of local government" under Section 1 of Article VII of
19the Illinois Constitution and includes school districts.
20    "Major program" means a federal program determined by the
21auditor to be a major program in accordance with 2 CFR 200.518
22or a program identified as a major program by a federal
23awarding agency or pass-through entity in accordance with 2 CFR
24200.503(e).
25    "Non-federal entity" means a state, local government,
26Indian tribe, institution of higher education, or

 

 

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1organization, whether nonprofit or for-profit, that carries
2out a State or federal award as a recipient or subrecipient.
3    "Nonprofit organization" means any corporation, trust,
4association, cooperative, or other organization, not including
5institutions of higher education, that:
6        (1) is operated primarily for scientific, educational,
7    service, charitable, or similar purposes in the public
8    interest;
9        (2) is not organized primarily for profit; and
10        (3) uses net proceeds to maintain, improve, or expand
11    the operations of the organization.
12    "Obligations", when used in connection with a non-federal
13entity's utilization of funds under an award, means orders
14placed for property and services, contracts and subawards made,
15and similar transactions during a given period that require
16payment by the non-federal entity during the same or a future
17period.
18    "Office of Management and Budget" means the Office of
19Management and Budget of the Executive Office of the President.
20    "Other clusters" has the meaning provided by the federal
21Office of Management and Budget in the compliance supplement or
22has the meaning as it is designated by a state for federal
23awards the state provides to its subrecipients that meet the
24definition of a cluster of programs. When designating an "other
25cluster", a state must identify the federal awards included in
26the cluster and advise the subrecipients of compliance

 

 

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1requirements applicable to the cluster.
2    "Oversight agency for audit" means the federal awarding
3agency that provides the predominant amount of funding directly
4to a non-federal entity not assigned a cognizant agency for
5audit. When there is no direct funding, the awarding agency
6that is the predominant source of pass-through funding must
7assume the oversight responsibilities. The duties of the
8oversight agency for audit and the process for any
9reassignments are described in 2 CFR 200.513(b).
10    "Pass-through entity" means a non-federal entity that
11provides a subaward to a subrecipient to carry out part of a
12program.
13    "Private award" means an award from a person or entity
14other than a State or federal entity. Private awards are not
15subject to the provisions of this Act.
16    "Property" means real property or personal property.
17    "Project cost" means total allowable costs incurred under
18an award and all required cost sharing and voluntary committed
19cost sharing, including third-party contributions.
20    "Public institutions of higher education" has the meaning
21provided in Section 1 of the Board of Higher Education Act.
22    "Recipient" means a non-federal entity that receives an
23award directly from an awarding agency to carry out an activity
24under a program. "Recipient" does not include subrecipients.
25    "Research and Development" means all research activities,
26both basic and applied, and all development activities that are

 

 

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1performed by non-federal entities.
2    "Single Audit Act" means the federal Single Audit Act
3Amendments of 1996 (31 U.S.C. 7501-7507).
4    "State agency" means an Executive branch agency. For
5purposes of this Act, "State agency" does not include public
6institutions of higher education.
7    "State award" means the financial assistance that a
8non-federal entity receives from the State and that is funded
9with either State funds or federal funds; in the latter case,
10the State is acting as a pass-through entity.
11    "State awarding agency" means a State agency that provides
12an award to a non-federal entity.
13    "State grant-making agency" has the same meaning as "State
14awarding agency".
15    "State interest" means the acquisition or improvement of
16real property, equipment, or supplies under a State award, the
17dollar amount that is the product of the State share of the
18total project costs and current fair market value of the
19property, improvements, or both, to the extent the costs of
20acquiring or improving the property were included as project
21costs.
22    "State program" means any of the following:
23        (1) All State awards which are assigned a single number
24    in the Catalog of State Financial Assistance.
25        (2) When no Catalog of State Financial Assistance
26    number is assigned, all State awards to non-federal

 

 

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1    entities from the same agency made for the same purpose are
2    considered one program.
3        (3) A cluster of programs as defined in this Section.
4    "State share" means the portion of the total project costs
5that are paid by State funds.
6    "Stop payment order" means a communication from a State
7grant-making agency to the Office of the Comptroller, following
8procedures set out by the Office of the Comptroller, causing
9the cessation of payments to a recipient or subrecipient as a
10result of the recipient's or subrecipient's failure to comply
11with one or more terms of the grant or subaward.
12    "Stop payment procedure" means the procedure created by the
13Office of the Comptroller which effects a stop payment order
14and the lifting of a stop payment order upon the request of the
15State grant-making agency.
16    "Student Financial Aid" means federal awards under those
17programs of general student assistance, such as those
18authorized by Title IV of the Higher Education Act of 1965, as
19amended (20 U.S.C. 1070-1099d), that are administered by the
20United States Department of Education and similar programs
21provided by other federal agencies. "Student Financial Aid"
22does not include federal awards under programs that provide
23fellowships or similar federal awards to students on a
24competitive basis or for specified studies or research.
25    "Subaward" means a State or federal award provided by a
26pass-through entity to a subrecipient for the subrecipient to

 

 

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1carry out part of a federal award received by the pass-through
2entity. "Subaward" does not include payments to a contractor or
3payments to an individual that is a beneficiary of a federal
4program. A "subaward" may be provided through any form of legal
5agreement, including an agreement that the pass-through entity
6considers a contract.
7    "Subrecipient" means a non-federal entity that receives a
8State or federal subaward from a pass-through entity to carry
9out part of a federal program. "Subrecipient" does not include
10an individual that is a beneficiary of such program. A
11"subrecipient" may also be a recipient of other State or
12federal awards directly from a State or federal awarding
13agency.
14    "Suspension" means a post-award action by the State or
15federal agency or pass-through entity that temporarily
16withdraws the State or federal agency's or pass-through
17entity's financial assistance sponsorship under an award,
18pending corrective action by the recipient or subrecipient or
19pending a decision to terminate the award.
20    "Uniform Administrative Requirements, Costs Principles,
21and Audit Requirements for Federal Awards" means those rules
22applicable to grants contained in 2 CFR 200.
23    "Voluntary committed cost sharing" means cost sharing
24specifically pledged on a voluntary basis in the proposal's
25budget or the award on the part of the non-federal entity and
26that becomes a binding requirement of the award.

 

 

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1(Source: P.A. 98-706, eff. 7-16-14.)
 
2    (30 ILCS 708/25)
3    (Section scheduled to be repealed on July 16, 2020)
4    Sec. 25. Supplemental rules. On or before July 1, 2017, the
5Governor's Office of Management and Budget, with the advice and
6technical assistance of the Illinois Single Audit Commission,
7shall adopt supplemental rules pertaining to the following:
8        (1) Criteria to define mandatory formula-based grants
9    and discretionary grants.
10        (2) The award of one-year grants for new applicants.
11        (3) The award of competitive grants in 3-year terms
12    (one-year initial terms with the option to renew for up to
13    2 additional years) to coincide with the federal award.
14        (4) The issuance of grants, including:
15            (A) public notice of announcements of funding
16        opportunities;
17            (B) the development of uniform grant applications;
18            (C) State agency review of merit of proposals and
19        risk posed by applicants;
20            (D) specific conditions for individual recipients
21        (requiring the use of a fiscal agent and additional
22        corrective conditions);
23            (E) certifications and representations;
24            (F) pre-award costs;
25            (G) performance measures and statewide prioritized

 

 

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1        goals under Section 50-25 of the State Budget Law of
2        the Civil Administrative Code of Illinois, commonly
3        referred to as "Budgeting for Results"; and
4            (H) for mandatory formula grants, the merit of the
5        proposal and the risk posed should result in additional
6        reporting, monitoring, or measures such as
7        reimbursement-basis only.
8        (5) The development of uniform budget requirements,
9    which shall include:
10            (A) mandatory submission of budgets as part of the
11        grant application process;
12            (B) mandatory requirements regarding contents of
13        the budget including, at a minimum, common detail line
14        items specified under guidelines issued by the
15        Governor's Office of Management and Budget;
16            (C) a requirement that the budget allow
17        flexibility to add lines describing costs that are
18        common for the services provided as outlined in the
19        grant application;
20            (D) a requirement that the budget include
21        information necessary for analyzing cost and
22        performance for use in Budgeting for Results; and
23            (E) caps on the amount of salaries that may be
24        charged to grants based on the limitations imposed by
25        federal agencies.
26        (6) The development of pre-qualification requirements

 

 

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1    for applicants, including the fiscal condition of the
2    organization and the provision of the following
3    information:
4            (A) organization name;
5            (B) Federal Employee Identification Number;
6            (C) Data Universal Numbering System (DUNS) number;
7            (D) fiscal condition;
8            (E) whether the applicant is in good standing with
9        the Secretary of State;
10            (F) past performance in administering grants;
11            (G) whether the applicant is or has ever been on
12        the Debarred and Suspended List maintained by the
13        Governor's Office of Management and Budget;
14            (H) whether the applicant is or has ever been on
15        the federal Excluded Parties List; and
16            (I) whether the applicant is or has ever been on
17        the Sanctioned Party List maintained by the Illinois
18        Department of Healthcare and Family Services.
19    Nothing in this Act affects the provisions of the Fiscal
20Control and Internal Auditing Act nor the requirement that the
21management of each State agency is responsible for maintaining
22effective internal controls under that Act.
23    For public institutions of higher education, the
24provisions of this Section apply only to awards funded by State
25appropriations and federal pass-through awards from a State
26agency to public institutions of higher education.

 

 

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1(Source: P.A. 98-706, eff. 7-16-14; 99-523, eff. 6-30-16.)
 
2    (30 ILCS 708/50)
3    (Section scheduled to be repealed on July 16, 2020)
4    Sec. 50. State grant-making agency responsibilities.
5    (a) The specific requirements and responsibilities of
6State grant-making agencies and non-federal entities are set
7forth in this Act. State agencies making State awards to
8non-federal entities must adopt by rule the language in 2 CFR
9200, Subpart C through Subpart F unless different provisions
10are required by law.
11    (b) Each State grant-making agency shall appoint a Chief
12Accountability Officer who shall serve as a liaison to the
13Grant Accountability and Transparency Unit and who shall be
14responsible for the State agency's implementation of and
15compliance with the rules.
16    (c) In order to effectively measure the performance of its
17recipients and subrecipients, each State grant-making agency
18shall:
19        (1) require its recipients and subrecipients to relate
20    financial data to performance accomplishments of the award
21    and, when applicable, must require recipients and
22    subrecipients to provide cost information to demonstrate
23    cost-effective practices. The recipient's and
24    subrecipient's performance should be measured in a way that
25    will help the State agency to improve program outcomes,

 

 

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1    share lessons learned, and spread the adoption of promising
2    practices; and
3        (2) provide recipients and subrecipients with clear
4    performance goals, indicators, and milestones and must
5    establish performance reporting frequency and content to
6    not only allow the State agency to understand the
7    recipient's progress, but also to facilitate
8    identification of promising practices among recipients and
9    subrecipients and build the evidence upon which the State
10    agency's program and performance decisions are made.
11    (c-5) Each State grant-making agency shall, when it is in
12the best interests of the State, request that the Office of the
13Comptroller issue a stop payment order in accordance with
14Section 105 of this Act.
15    (c-6) Upon notification by the Grant Transparency and
16Accountability Unit that a stop payment order has been
17requested by a State grant-making agency, each State
18grant-making agency who has issued a grant to that recipient or
19subrecipient shall determine if it remains in the best
20interests of the State to continue to issue payments to the
21recipient or subrecipient.
22    (d) The Governor's Office of Management and Budget shall
23provide such advice and technical assistance to the State
24grant-making agencies as is necessary or indicated in order to
25ensure compliance with this Act.
26    (e) In accordance with this Act and the Illinois State

 

 

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1Collection Act of 1986, refunds required under the Grant Funds
2Recovery Act may be referred to the Comptroller's offset
3system.
4(Source: P.A. 98-706, eff. 7-16-14.)
 
5    (30 ILCS 708/55)
6    (Section scheduled to be repealed on July 16, 2020)
7    Sec. 55. The Governor's Office of Management and Budget
8responsibilities.
9    (a) The Governor's Office of Management and Budget shall:
10        (1) provide technical assistance and interpretations
11    of policy requirements in order to ensure effective and
12    efficient implementation of this Act by State grant-making
13    agencies; and
14        (2) have authority to approve any exceptions to the
15    requirements of this Act and shall adopt rules governing
16    the criteria to be considered when an exception is
17    requested; exceptions shall only be made in particular
18    cases where adequate justification is presented.
19    (b) The Governor's Office of Management and Budget shall,
20on or before July 1, 2016, establish a centralized unit within
21the Governor's Office of Management and Budget. The centralized
22unit shall be known as the Grant Accountability and
23Transparency Unit and shall be funded with a portion of the
24administrative funds provided under existing and future State
25and federal pass-through grants. The amounts charged will be

 

 

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1allocated based on the actual cost of the services provided to
2State grant-making agencies and public institutions of higher
3education in accordance with the applicable federal cost
4principles contained in 2 CFR 200 and this Act will not cause
5the reduction in the amount of any State or federal grant
6awards that have been or will be directed towards State
7agencies or public institutions of higher education.
8    (c) The Governor's Office of Management and Budget, in
9conjunction with the Illinois Single Audit Commission, shall
10research and provide recommendations to the General Assembly
11regarding the adoption of legislation in accordance with the
12federal Improper Payments Elimination and Recovery Improvement
13Act of 2012. The recommendations shall be included in the
14Annual Report of the Commission to be submitted to the General
15Assembly on January 1, 2020. This subsection (c) is inoperative
16on and after January 1, 2021.
17(Source: P.A. 98-706, eff. 7-16-14; 99-523, eff. 6-30-16.)
 
18    (30 ILCS 708/95)
19    (Section scheduled to be repealed on July 16, 2020)
20    Sec. 95. Annual report. Effective January 1, 2016 and each
21January 1 thereafter, the Governor's Office of Management and
22Budget, in conjunction with the Illinois Single Audit
23Commission, shall submit to the Governor and the General
24Assembly a report that demonstrates the efficiencies, cost
25savings, and reductions in fraud, waste, and abuse as a result

 

 

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1of the implementation of this Act and the rules adopted by the
2Governor's Office of Management and Budget in accordance with
3the provisions of this Act. The report shall include, but not
4be limited to:
5        (1) the number of entities placed on the Illinois
6    Debarred and Suspended List;
7        (2) any savings realized as a result of the
8    implementation of this Act;
9        (3) any reduction in the number of duplicative audit
10    report reviews audits;
11        (4) the number of persons trained to assist grantees
12    and subrecipients; and
13        (5) the number of grantees and subrecipients to whom a
14    fiscal agent was assigned.
15(Source: P.A. 98-706, eff. 7-16-14.)
 
16    (30 ILCS 708/105 new)
17    Sec. 105. Stop payment procedures.
18    (a) On or before July 1, 2019, the Governor's Office of
19Management and Budget shall adopt rules pertaining to the
20following:
21        (1) factors to be considered in determining whether to
22    issue a stop payment order shall include whether or not a
23    stop payment order is in the best interests of the State;
24        (2) factors to be considered in determining whether a
25    stop payment order should be lifted; and

 

 

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1        (3) procedures for notification to the recipient or
2    subrecipient of the issuance of a stop payment order, the
3    lifting of a stop payment order, and any other related
4    information.
5    (b) On or before December 31, 2019, the Governor's Office
6of Management and Budget shall, in conjunction with State
7grant-making agencies, adopt rules pertaining to the
8following:
9        (1) policies regarding the issuance of stop payment
10    orders;
11        (2) policies regarding the lifting of stop payment
12    orders;
13        (3) policies regarding corrective actions required of
14    recipients and subrecipients in the event a stop payment
15    order is issued; and
16        (4) policies regarding the coordination of
17    communications between the Office of the Comptroller and
18    State grant-making agencies regarding the issuance of stop
19    payment orders and the lifting of such orders.
20    (c) On or before July 1, 2020, the Office of the
21Comptroller shall establish stop payment procedures that shall
22cause the cessation of payments to a recipient or subrecipient.
23Such a temporary or permanent cessation of payments will occur
24pursuant to a stop payment order requested by a State
25grant-making agency and implemented by the Office of the
26Comptroller.

 

 

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1    (d) The State grant-making agency shall maintain a file
2pertaining to all stop payment orders which shall include, at a
3minimum:
4        (1) The notice to the recipient or subrecipient that a
5    stop payment order has been issued. The notice shall
6    include:
7            (A) The name of the grant.
8            (B) The grant number.
9            (C) The name of the State agency that issued the
10        grant.
11            (D) The reasons for the stop payment order.
12            (E) Any other relevant information.
13        (2) The order lifting the stop payment order, if
14    applicable.
15    (e) The Grant Accountability and Transparency Unit shall
16determine and disseminate factors that State agencies shall
17consider when determining whether it is in the best interests
18of the State to permanently or temporarily cease payments to a
19recipient or subrecipient who has had a stop payment order
20requested by another State agency.
21    (f) The Office of the Comptroller and the Governor's Office
22of Management and Budget grant systems shall determine if the
23recipient or subrecipient has received grants from other State
24grant-making agencies.
25    (g) Upon notice from the Office of the Comptroller, the
26Grant Accountability and Transparency Unit shall notify all

 

 

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

 

 

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1        (4) Copies of any written communications between an
2    applicant and the State grant-making agency, if
3    applicable.
4        (5) The criteria used to evaluate the applications, if
5    applicable.
6        (6) The scores assigned to each applicant according to
7    the criteria, if applicable.
8        (7) A written determination, signed by an authorized
9    representative of the State grant-making agency, setting
10    forth the reason for the grant award decision, if
11    applicable.
12        (8) The Notice of Award.
13        (9) Any other pre-award documents.
14        (10) The grant agreement and any renewals, if
15    applicable;
16        (11) All post-award, administration, and close-out
17    documents relating to the grant.
18        (12) Any other information relevant to the grant award.
19    (b) The grant file shall not include trade secrets or other
20competitively sensitive, confidential, or proprietary
21information.
22    (c) Each grant file shall be maintained by the State
23grant-making agency and, subject to the provisions of the
24Freedom of Information Act, shall be available for public
25inspection and copying within 7 calendar days following award
26of the grant.
 

 

 

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1    (30 ILCS 708/115 new)
2    Sec. 115. Certifications and representations. Unless
3prohibited by State or federal statute, regulation, or
4administrative rule, each State awarding agency or
5pass-through entity is authorized to require the recipient or
6subrecipient to submit certifications and representations
7required by State or federal statute, regulation, or
8administrative rule.
 
9    (30 ILCS 708/120 new)
10    Sec. 120. Required certifications. To assure that
11expenditures are proper and in accordance with the terms and
12conditions of the grant award and approved project budgets, all
13periodic and final financial reports, and all payment requests
14under the grant agreement, must include a certification, signed
15by an official who is authorized to legally bind the grantee or
16subrecipient, that reads as follows:
17        "By signing this report and/or payment request, I
18    certify to the best of my knowledge and belief that this
19    report is true, complete, and accurate; that the
20    expenditures, disbursements, and cash receipts are for the
21    purposes and objectives set forth in the terms and
22    conditions of the State or federal pass-through award; and
23    that supporting documentation has been submitted as
24    required by the grant agreement. I acknowledge that

 

 

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1    approval for any item or expenditure described herein shall
2    be considered conditional subject to further review and
3    verification in accordance with the monitoring and records
4    retention provisions of the grant agreement. I am aware
5    that any false, fictitious, or fraudulent information, or
6    the omission of any material fact, may subject me to
7    criminal, civil or administrative penalties for fraud,
8    false statements, false claims or otherwise. (18 U.S.C.
9    §1001; 31 U.S.C. §§3729-3730 and §§3801-3812; 30 ILCS 708/
10    120.)"
 
11    (30 ILCS 708/125 new)
12    Sec. 125. Expenditures prior to grant execution; reporting
13requirements.
14    (a) In the event that a recipient or subrecipient incurs
15expenses related to the grant award prior to the execution of
16the grant agreement but within the term of the grant, and the
17grant agreement is executed more than 30 days after the
18effective date of the grant, the recipient or subrecipient must
19submit to the State grant-making agency a report that accounts
20for eligible grant expenditures and project activities from the
21effective date of the grant up to and including the date of
22execution of the grant agreement.
23    (b) The recipient or subrecipient must submit the report to
24the State grant-making agency within 30 days of execution of
25the grant agreement.

 

 

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1    (c) Only those expenses that are reasonable, allowable, and
2in furtherance of the purpose of the grant award shall be
3reimbursed.
4    (d) The State grant-making agency must approve the report
5prior to issuing any payment to the recipient or subrecipient.
 
6    (30 ILCS 708/130 new)
7    Sec. 130. Travel costs.
8    (a) General. Travel costs are the expenses for
9transportation, lodging, subsistence, and related items
10incurred by the employees of the recipient or subrecipient who
11are in travel status on official business of the recipient or
12subrecipient. Such costs may only be charged to a State or
13federal pass-through grant on a per diem or mileage basis in
14accordance with the rules of the Governor's Travel Control
15Board.
16    (b) Lodging and subsistence. Costs incurred for travel,
17including costs of lodging, other subsistence, and incidental
18expenses, must be considered reasonable and otherwise
19allowable only to the extent such costs do not exceed charges
20normally allowed by the rules of the Governor's Travel Control
21Board. In addition, if these costs are charged directly to the
22State or federal pass-through award documentation must justify
23that:
24        (1) participation of the individual is necessary to the
25    State or federal pass-through award; and

 

 

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1        (2) the costs are reasonable and consistent with the
2    rules of the Governor's Travel Control Board.
3    (c) Commercial air travel. Airfare costs in excess of the
4basic least expensive unrestricted accommodations class
5offered by commercial airlines are unallowable except when such
6accommodations would:
7        (1) require circuitous routing;
8        (2) require travel during unreasonable hours;
9        (3) excessively prolong travel;
10        (4) result in additional costs that would offset the
11    transportation savings; or
12        (5) offer accommodations not reasonably adequate for
13    the traveler's medical needs.
 
14    (30 ILCS 708/520 new)
15    Sec. 520. Separate accounts for State grant funds.
16Notwithstanding any provision of law to the contrary, all
17grants made and any grant agreement entered into, renewed, or
18extended on or after the effective date of this amendatory Act
19of the 100th General Assembly, between a State grant-making
20agency and a nonprofit organization, shall require the
21nonprofit organization receiving grant funds to maintain those
22funds in an account which is separate and distinct from any
23account holding non-grant funds. Except as otherwise provided
24in an agreement between a State grant-making agency and a
25nonprofit organization, the grant funds held in a separate

 

 

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1account by a nonprofit organization shall not be used for
2non-grant-related activities, and any unused grant funds shall
3be returned to the State grant-making agency.
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.