101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3703

 

Introduced , by Rep. Fred Crespo

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 705/2  from Ch. 127, par. 2302
30 ILCS 705/4  from Ch. 127, par. 2304
30 ILCS 705/6  from Ch. 127, par. 2306
30 ILCS 705/9  from Ch. 127, par. 2309

    Amends the Illinois Grant Funds Recovery Act. Modifies the term "grant funds" to allow funds disbursed by the State Comptroller under an appropriation made by the General Assembly to a named entity or person to be considered as grant funds for purposes of the Act. Provides that, at a minimum, a grant agreement must, among other requirements, (1) identify any terms for which a failure to comply may be deemed material non-compliance, and subject grant funds to recovery, and (2) specify any performance levels for which a failure to achieve may result in a determination that grant funds have been misspent and subject to recovery. Provides that a grantor agency or the Attorney General may seek recovery of grant funds when there has been material non-compliance with the grant agreement or when grant funds have been misspent or are being improperly held. Provides that the grantor agency making the grant shall take affirmative and timely action to recover all (currently, all misspent or improperly held) grant funds subject to recovery. Provides that the Attorney General, on his own volition, may act to recover any grant funds which may be recoverable under specified provisions (currently, may act to recover any grant funds which have been misapplied or are being improperly held). Defines terms. Makes conforming changes. Effective immediately.


LRB101 09989 RJF 55091 b

 

 

A BILL FOR

 

HB3703LRB101 09989 RJF 55091 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Grant Funds Recovery Act is amended
5by changing Sections 2, 4, 6, and 9 as follows:
 
6    (30 ILCS 705/2)  (from Ch. 127, par. 2302)
7    Sec. 2. Definitions. The following terms when used in this
8Act shall have the meanings ascribed to them in this Section:
9    (a) "Grantor agency" is any agency of State government
10which dispenses grant funds.
11    (b) "Grant funds" are any public funds dispensed by a
12grantor agency to any person or entity for obligation,
13expenditure, or use by that person or entity for a specific
14purpose or purposes. Funds disbursed by the State Comptroller
15pursuant to an appropriation made by the General Assembly to a
16named entity or person are not grant funds for purposes of this
17Act. Funds disbursed in accordance with a fee for service
18purchase of care contract are not grant funds for purposes of
19this Act.
20    Neither the method by which funds are dispensed whether by
21contract, agreement, grant subsidy, letter of credit, or any
22other method nor the purpose for which the funds are used can
23change the character of funds which otherwise would be

 

 

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1considered grant funds as defined in this Section.
2    (c) "Grantee" means the person or entity which may use
3grant funds.
4    (c-5) "Improperly held" means retention of grant funds by a
5grantee or its subrecipient (i) after the grantor agency has
6directed the grantee to return the funds pursuant to any
7authority or right provided to the grantor agency under any
8statute, rule, or grant agreement, or (ii) in a manner
9inconsistent with any statute, rule, or grant agreement.
10    (d) "Institution of higher education" means any
11institution which is authorized to grant degrees within the
12State of Illinois.
13    (e) "Material non-compliance" means when the grantee or its
14subrecipient has failed to comply with a term of the grant
15agreement, other than those terms relating to improperly
16holding or misspending grant funds, that is so significant that
17the grantor agency's decision to award the grant would have
18been affected had it foreseen the non-compliance. "Material
19non-compliance" includes, but shall not be limited to, any act
20that may be grounds for permanent placement on the Illinois
21Debarred and Suspended List established under the Grant
22Accountability and Transparency Act and a violation of any
23record access, recordkeeping, or audit provisions.
24    (f) "Misspent" means spent by a grantee or its subrecipient
25(i) in a manner inconsistent with the terms of any statute,
26rule, or grant agreement, or (ii) without achieving the

 

 

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1performance required by the grant agreement absent compelling
2mitigating circumstances, as determined by the grantor agency.
3    (g) "Subrecipient" means a person or entity that receives
4grant funds from a grantee to carry out part of the grant
5program. "Subrecipient" does not include a vendor.
6(Source: P.A. 86-602.)
 
7    (30 ILCS 705/4)  (from Ch. 127, par. 2304)
8    Sec. 4. Grant Application and Agreement Requirements.
9    (a) Any person or organization, public or private, desiring
10to receive grant funds must submit a grant application to the
11appropriate grantor agency. Applications for grant funds shall
12be made on prescribed forms developed by the grantor agency,
13and shall include, without being limited to, the following
14provisions:
15        (1) the name, address, chief officers, and general
16    description of the applicant;
17        (2) a general description of the program, project, or
18    use for which grant funding is requested;
19        (3) such plans, equipment lists, and other documents as
20    may be required to show the type, structure, and general
21    character of the program, project, or use for which grant
22    funding is requested;
23        (4) cost estimates of developing, constructing,
24    operating, or completing the program, project, or use for
25    which grant funding is requested; and

 

 

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1        (5) a program of proposed expenditures for the grant
2    funds.
3    (b) Grant funds may not be used except pursuant to a
4written grant agreement, and any disbursement of grant funds
5without a grant agreement is void. At a minimum, a grant
6agreement must:
7        (1) describe the purpose of the grant and be signed by
8    the grantor agency making the grant and all grantees of the
9    grant;
10        (2) specify how payments shall be made, what
11    constitutes permissible expenditure of the grant funds,
12    and the financial controls applicable to the grant,
13    including, for those grants in excess of $25,000, the
14    filing of quarterly reports describing the progress of the
15    program, project, or use and the expenditure of the grant
16    funds related thereto;
17        (3) specify the period of time for which the grant is
18    valid and, subject to the limitation of Section 5, the
19    period of time during which grant funds may be expended by
20    the grantee;
21        (4) contain a provision that any grantees receiving
22    grant funds are required to permit the grantor agency, the
23    Auditor General, or the Attorney General to inspect and
24    audit any books, records, or papers related to the program,
25    project, or use for which grant funds were provided;
26        (5) contain a provision that all funds remaining at the

 

 

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1    end of the grant agreement or at the expiration of the
2    period of time grant funds are available for expenditure or
3    obligation by the grantee shall be returned to the State
4    within 45 days; and
5        (6) contain a provision in which the grantee certifies
6    under oath that all information in the grant agreement is
7    true and correct to the best of the grantee's knowledge,
8    information, and belief; that the funds shall be used only
9    for the purposes described in the grant agreement; and that
10    the award of grant funds is conditioned upon such
11    certification; .
12        (7) identify any terms for which a failure to comply
13    may be deemed material non-compliance and subject grant
14    funds, or any portion thereof, to recovery; and
15        (8) specify any performance levels for which a failure
16    to achieve may result in a determination that grant funds,
17    or any portion thereof, have been misspent and subject to
18    recovery.
19(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
20for the effective date of changes made by P.A. 96-795).)
 
21    (30 ILCS 705/6)  (from Ch. 127, par. 2306)
22    Sec. 6. Recovery of Grant Funds. A grantor agency or the
23Attorney General may seek recovery of grant funds when there
24has been material non-compliance with the grant agreement or
25when grant funds have been misspent or are being improperly

 

 

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1held. Any grant funds which have been misspent or are being
2improperly held are subject to recovery by the grantor agency
3which made the grant or alternatively by the Attorney General.
4The grantor agency making the grant shall take affirmative and
5timely action to recover all misspent or improperly held grant
6funds subject to recovery. In order to effectuate the recovery
7of such grant funds, the grantor agency making the grant is
8authorized to use any one or a combination of the following:
9    (a) offset against existing grants of, or future grants to
10be made by, the grantor agency making the recovery;
11    (b) authorize the offset from existing grants or grants to
12be made by other grantor agencies;
13    (c) authorize the Comptroller to offset any payment from
14any funds administered by the Comptroller for payment to the
15grantee, including, but not limited to, distributions of
16appropriated funds and payment of refunds;
17    (d) initiate any debt collection method authorized by law
18to any private person; or
19    (e) remove the grantee from any of the grantor agency's
20programs and forbid the grantee's participation in any such
21future grant programs for a period not to exceed 2 years.
22    The provisions of this Section are subject to Section 14.
23(Source: P.A. 87-1262.)
 
24    (30 ILCS 705/9)  (from Ch. 127, par. 2309)
25    Sec. 9. Recovery of Grant Funds by Attorney General. Except

 

 

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1as otherwise provided by Section 14, the Attorney General, on
2his own volition, may act to recover any grant funds which may
3be recoverable under Section 6 have been misapplied or are
4being improperly held and, when doing so, has all the powers of
5collection established in this Act in addition to any other
6powers authorized by law or the Constitution.
7(Source: P.A. 87-1262.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.