103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3457

 

Introduced 2/8/2024, by Sen. Michael W. Halpin

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the State Comptroller Act. Provides an exception for vendors to receive payment by non-electronic means. Provides that outstanding liabilities as of June 30, payable from appropriations which have otherwise expired and interest penalties payable on those liabilities under the State Prompt Payment Act, may be paid out of the expiring appropriations during the 4-month period ending at the close of business on October 31 of each year, without regard to the fiscal year in which the payment is made. Amends the Prompt Payment Act. Removes provisions concerning payments made under the Public Aid Code. Provides that when a State official or agency responsible for administering a contract receives a bill or invoice from a contractor, that State official or agency shall electronically confirm the date on which the bill or invoice was received within 5 business days of receipt, and shall transmit any approved amount to the Comptroller within 30 days of receipt. Amends the Grant Accountability and Transparency Act. Provides that a pre-qualification requirement may include consideration of past performance in administering grants if past performance failed to meet performance goals, indicators, and milestones. Amends the Court of Claims Act. Provides that all claims against the State founded upon any contract entered into with the State of Illinois, except that undisputed individual claims below $2,500 resulting from lapsed appropriations do not fall under the jurisdiction of Court of Claims. State agencies may pay undisputed individual claims below $2,500 resulting from lapsed appropriations from current fiscal year appropriations. Sets forth that the provisions are not intended to prohibit more frequent reporting to assess items such as service needs, gaps, or capacity. Sets forth other provisions concerning grant agreement specifications, separate accounts for State grant funds, expenditures prior to grant execution and reporting requirements.


LRB103 37556 MXP 67681 b

 

 

A BILL FOR

 

SB3457LRB103 37556 MXP 67681 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 State Comptroller Act is amended by
5changing Sections 9 and 9.03 as follows:
 
6    (15 ILCS 405/9)  (from Ch. 15, par. 209)
7    Sec. 9. Warrants; vouchers; preaudit.
8    (a) No payment may be made from public funds held by the
9State Treasurer in or outside of the State treasury, except by
10warrant drawn by the Comptroller and presented by him to the
11treasurer to be countersigned except for payments made
12pursuant to Section 9.03 or 9.05 of this Act.
13    (b) No warrant for the payment of money by the State
14Treasurer may be drawn by the Comptroller without the
15presentation of itemized vouchers indicating that the
16obligation or expenditure is pursuant to law and authorized,
17and authorizing the Comptroller to order payment.
18    (b-1) An itemized voucher for under $5 that is presented
19to the Comptroller for payment may be paid through electronic
20funds transfer unless the recipient is unable to receive an
21electronic funds transfer or requests another form of payment.
22This subsection (b-1) does not apply to (i) vouchers presented
23by the legislative branch of State government, (ii) vouchers

 

 

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1presented by the State Treasurer's Office for the payment of
2unclaimed property claims authorized under the Revised Uniform
3Unclaimed Property Act, or (iii) vouchers presented by the
4Department of Revenue for the payment of refunds of taxes
5administered by the Department.
6    (c) The Comptroller shall examine each voucher required by
7law to be filed with him and determine whether unencumbered
8appropriations or unencumbered obligational or expenditure
9authority other than by appropriation are legally available to
10incur the obligation or to make the expenditure of public
11funds. If he determines that unencumbered appropriations or
12other obligational or expenditure authority are not available
13from which to incur the obligation or make the expenditure,
14the Comptroller shall refuse to draw a warrant.
15    (d) The Comptroller shall examine each voucher and all
16other documentation required to accompany the voucher, and
17shall ascertain whether the voucher and documentation meet all
18requirements established by or pursuant to law. If the
19Comptroller determines that the voucher and documentation do
20not meet applicable requirements established by or pursuant to
21law, he shall refuse to draw a warrant. As used in this
22Section, "requirements established by or pursuant to law"
23includes statutory enactments and requirements established by
24rules and regulations adopted pursuant to this Act.
25    (e) Prior to drawing a warrant, the Comptroller may review
26the voucher, any documentation accompanying the voucher, and

 

 

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1any other documentation related to the transaction on file
2with him, and determine if the transaction is in accordance
3with the law. If based on his review the Comptroller has reason
4to believe that such transaction is not in accordance with the
5law, he shall refuse to draw a warrant.
6    (f) Where the Comptroller refuses to draw a warrant
7pursuant to this Section, he shall maintain separate records
8of such transactions.
9    (g) State agencies shall have the principal responsibility
10for the preaudit of their encumbrances, expenditures, and
11other transactions as otherwise required by law.
12(Source: P.A. 103-266, eff. 1-1-24.)
 
13    (15 ILCS 405/9.03)  (from Ch. 15, par. 209.03)
14    Sec. 9.03. Direct deposit of State payments.
15    (a) The Comptroller, with the approval of the State
16Treasurer, shall may provide by rule or regulation for the
17direct deposit of any payment lawfully payable from the State
18Treasury and in accordance with federal banking regulations
19including but not limited to payments to (i) persons paid from
20personal services, (ii) persons receiving benefit payments
21from the Comptroller under the State pension systems, (iii)
22individuals who receive assistance under Articles III, IV, and
23VI of the Illinois Public Aid Code, (iv) providers of services
24under the Mental Health and Developmental Disabilities
25Administrative Act, (v) providers of community-based mental

 

 

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1health services, and (vi) providers of services under programs
2administered by the State Board of Education, in the accounts
3of those persons or entities maintained at a bank, savings and
4loan association, or credit union, where authorized by the
5payee. The Comptroller also may deposit public aid payments
6for individuals who receive assistance under Articles III, IV,
7VI, and X of the Illinois Public Aid Code directly into an
8electronic benefits transfer account in a financial
9institution approved by the State Treasurer as prescribed by
10the Illinois Department of Human Services and in accordance
11with the rules and regulations of that Department and the
12rules and regulations adopted by the Comptroller and the State
13Treasurer. The Comptroller, with the approval of the State
14Treasurer, shall may provide by rule for the electronic direct
15deposit of payments to public agencies and any other payee of
16the State. The electronic direct deposits may be made to the
17designated account in those financial institutions specified
18in this Section for the direct deposit of payments. Within 6
19months after the effective date of this amendatory Act of
201994, the Comptroller shall establish a pilot program for the
21electronic direct deposit of payments to local school
22districts, municipalities, and units of local government. The
23payments may be made without the use of the voucher-warrant
24system, provided that documentation of approval by the
25Treasurer of each group of payments made by direct deposit
26shall be retained by the Comptroller. The form and method of

 

 

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1the Treasurer's approval shall be established by the rules or
2regulations adopted by the Comptroller under this Section.
3    (b) Except as provided in subsection (b-5), all State
4payments for an employee's payroll or an employee's expense
5reimbursement must be made through direct deposit. It is the
6responsibility of the paying State agency to ensure compliance
7with this mandate. If a State agency pays an employee's
8payroll or an employee's expense reimbursement without using
9direct deposit, the Comptroller may charge that employee a
10processing fee of $2.50 per paper warrant. The processing fee
11may be withheld from the employee's payment or reimbursement.
12The amount collected from the fee shall be deposited into the
13Comptroller's Administrative Fund.
14    (b-5) If an employee wants his or her payments deposited
15into a secure check account, the employee must submit a direct
16deposit form to the paying State agency for his or her payroll
17or to the Comptroller for his or her expense reimbursements.
18Upon acceptance of the direct deposit form, the Comptroller
19shall disburse those funds to the secure check account. For
20the purposes of this Section, "secure check account" means an
21account established with a financial institution for the
22employee that allows the dispensing of the funds in the
23account through a third party who dispenses to the employee a
24paper check.
25    (c) All State payments to a vendor that exceed the
26allowable limit of paper warrants in a fiscal year, by the same

 

 

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1agency, must be made through direct deposit. It is the
2responsibility of the paying State agency to ensure compliance
3with this mandate. If a State agency pays a vendor more times
4than the allowable limit in a single fiscal year without using
5direct deposit, the Comptroller may charge the vendor a
6processing fee of $2.50 per paper warrant. The processing fee
7may be withheld from the vendor's payment. The amount
8collected from the processing fee shall be deposited into the
9Comptroller's Administrative Fund. The Office of the
10Comptroller shall define "allowable limit" in the
11Comptroller's Statewide Accounting Management System (SAMS)
12manual, except that the allowable limit shall not be less than
1330 paper warrants. The Office of the Comptroller shall also
14provide reasonable notice to all State agencies of the
15allowable limit of paper warrants.
16    (c-1) All State payments to an entity from a payroll or
17retirement voluntary deduction must be made through direct
18deposit. If an entity receives a payment from a payroll or
19retirement voluntary deduction without using direct deposit,
20the Comptroller may charge the entity a processing fee of
21$2.50 per paper warrant. The processing fee may be withheld
22from the entity's payment or billed to the entity at a later
23date. The amount collected from the processing fee shall be
24deposited into the Comptroller's Administrative Fund. The
25Comptroller shall provide reasonable notice to all entities
26impacted by this requirement. Any new entities that receive a

 

 

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1payroll or retirement voluntary deduction must sign up for
2direct deposit during the application process.
3    (c-2) The detail information, such as names, identifiers,
4and amounts, associated with a State payment to an entity from
5a payroll or retirement voluntary deduction must be retrieved
6by the entity from the Comptroller's designated Internet
7website or an electronic alternative approved by the
8Comptroller. If the entity requires the Comptroller to mail
9the detail information, the Comptroller may charge the entity
10a processing fee up to $25.00 per mailing. Any processing fee
11will be billed to the entity at a later date. The amount
12collected from the processing fee shall be deposited into the
13Comptroller's Administrative Fund. The Comptroller shall
14provide reasonable notice to all entities impacted by this
15requirement.
16    (d) State employees covered by provisions in collective
17bargaining agreements that do not require direct deposit of
18paychecks are exempt from this mandate. No later than 60 days
19after the effective date of this amendatory Act of the 97th
20General Assembly, all State agencies must provide to the
21Office of the Comptroller a list of employees that are exempt
22under this subsection (d) from the direct deposit mandate. In
23addition, a State employee or vendor may file a hardship
24petition with the Office of the Comptroller requesting an
25exemption from the direct deposit mandate under this Section.
26A hardship petition shall be made available for download on

 

 

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1the Comptroller's official Internet website.
2    (e) Notwithstanding any provision of law to the contrary,
3the direct deposit of State payments under this Section for an
4employee's payroll, an employee's expense reimbursement, or a
5State vendor's payment does not authorize the State to
6automatically withdraw funds from those accounts.
7    (f) For the purposes of this Section, "vendor" means a
8non-governmental entity with a taxpayer identification number
9issued by the Social Security Administration or Internal
10Revenue Service that receives payments through the
11Comptroller's commercial system. The term does not include
12State agencies.
13    (g) The requirements of this Section do not apply to the
14legislative or judicial branches of State government.
15(Source: P.A. 97-348, eff. 8-12-11; 97-993, eff. 9-16-12;
1698-463, eff. 8-16-13; 98-1043, eff. 8-25-14.)
 
17    Section 10. The State Finance Act is amended by changing
18Section 25 as follows:
 
19    (30 ILCS 105/25)  (from Ch. 127, par. 161)
20    Sec. 25. Fiscal year limitations.
21    (a) All appropriations shall be available for expenditure
22for the fiscal year or for a lesser period if the Act making
23that appropriation so specifies. A deficiency or emergency
24appropriation shall be available for expenditure only through

 

 

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1June 30 of the year when the Act making that appropriation is
2enacted unless that Act otherwise provides.
3    (b) Outstanding liabilities as of June 30, payable from
4appropriations which have otherwise expired, and interest
5penalties payable on those liabilities under the State Prompt
6Payment Act, may be paid out of the expiring appropriations
7during the 4-month period ending at the close of business on
8October 31 of each year, without regard to the fiscal year in
9which the payment is made , may be paid out of the expiring
10appropriations during the 2-month period ending at the close
11of business on August 31. Any service involving professional
12or artistic skills or any personal services by an employee
13whose compensation is subject to income tax withholding must
14be performed as of June 30 of the fiscal year in order to be
15considered an "outstanding liability as of June 30" that is
16thereby eligible for payment out of the expiring
17appropriation.
18    (b-1) However, payment of tuition reimbursement claims
19under Section 14-7.03 or 18-3 of the School Code may be made by
20the State Board of Education from its appropriations for those
21respective purposes for any fiscal year, even though the
22claims reimbursed by the payment may be claims attributable to
23a prior fiscal year, and payments may be made at the direction
24of the State Superintendent of Education from the fund from
25which the appropriation is made without regard to any fiscal
26year limitations, except as required by subsection (j) of this

 

 

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1Section. Beginning on June 30, 2021, payment of tuition
2reimbursement claims under Section 14-7.03 or 18-3 of the
3School Code as of June 30, payable from appropriations that
4have otherwise expired, may be paid out of the expiring
5appropriation during the 4-month period ending at the close of
6business on October 31.
7    (b-2) (Blank).
8    (b-2.5) (Blank).
9    (b-2.6) (Blank).
10    (b-2.6a) (Blank).
11    (b-2.6b) (Blank).
12    (b-2.6c) (Blank).
13    (b-2.6d) All outstanding liabilities as of June 30, 2020,
14payable from appropriations that would otherwise expire at the
15conclusion of the lapse period for fiscal year 2020, and
16interest penalties payable on those liabilities under the
17State Prompt Payment Act, may be paid out of the expiring
18appropriations until December 31, 2020, without regard to the
19fiscal year in which the payment is made, as long as vouchers
20for the liabilities are received by the Comptroller no later
21than September 30, 2020.
22    (b-2.6e) All outstanding liabilities as of June 30, 2021,
23payable from appropriations that would otherwise expire at the
24conclusion of the lapse period for fiscal year 2021, and
25interest penalties payable on those liabilities under the
26State Prompt Payment Act, may be paid out of the expiring

 

 

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1appropriations until September 30, 2021, without regard to the
2fiscal year in which the payment is made.
3    (b-2.7) For fiscal years 2012, 2013, 2014, 2018, and each
4fiscal year thereafter, interest penalties payable under the
5State Prompt Payment Act associated with a voucher for which
6payment is issued after June 30 may be paid out of the next
7fiscal year's appropriation. The future year appropriation
8must be for the same purpose and from the same fund as the
9original payment. An interest penalty voucher submitted
10against a future year appropriation must be submitted within
1160 days after the issuance of the associated voucher, except
12that, for fiscal year 2018 only, an interest penalty voucher
13submitted against a future year appropriation must be
14submitted within 60 days of June 5, 2019 (the effective date of
15Public Act 101-10). The Comptroller must issue the interest
16payment within 60 days after acceptance of the interest
17voucher.
18    (b-3) Medical payments may be made by the Department of
19Veterans' Affairs from its appropriations for those purposes
20for any fiscal year, without regard to the fact that the
21medical services being compensated for by such payment may
22have been rendered in a prior fiscal year, except as required
23by subsection (j) of this Section. Beginning on June 30, 2021,
24medical payments payable from appropriations that have
25otherwise expired may be paid out of the expiring
26appropriation during the 4-month period ending at the close of

 

 

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1business on October 31.
2    (b-4) Medical payments and child care payments may be made
3by the Department of Human Services (as successor to the
4Department of Public Aid) from appropriations for those
5purposes for any fiscal year, without regard to the fact that
6the medical or child care services being compensated for by
7such payment may have been rendered in a prior fiscal year; and
8payments may be made at the direction of the Department of
9Healthcare and Family Services (or successor agency) from the
10Health Insurance Reserve Fund without regard to any fiscal
11year limitations, except as required by subsection (j) of this
12Section. Beginning on June 30, 2021, medical and child care
13payments made by the Department of Human Services and payments
14made at the discretion of the Department of Healthcare and
15Family Services (or successor agency) from the Health
16Insurance Reserve Fund and payable from appropriations that
17have otherwise expired may be paid out of the expiring
18appropriation during the 4-month period ending at the close of
19business on October 31.
20    (b-5) Medical payments may be made by the Department of
21Human Services from its appropriations relating to substance
22abuse treatment services for any fiscal year, without regard
23to the fact that the medical services being compensated for by
24such payment may have been rendered in a prior fiscal year,
25provided the payments are made on a fee-for-service basis
26consistent with requirements established for Medicaid

 

 

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1reimbursement by the Department of Healthcare and Family
2Services, except as required by subsection (j) of this
3Section. Beginning on June 30, 2021, medical payments made by
4the Department of Human Services relating to substance abuse
5treatment services payable from appropriations that have
6otherwise expired may be paid out of the expiring
7appropriation during the 4-month period ending at the close of
8business on October 31.
9    (b-6) (Blank).
10    (b-7) Payments may be made in accordance with a plan
11authorized by paragraph (11) or (12) of Section 405-105 of the
12Department of Central Management Services Law from
13appropriations for those payments without regard to fiscal
14year limitations.
15    (b-8) Reimbursements to eligible airport sponsors for the
16construction or upgrading of Automated Weather Observation
17Systems may be made by the Department of Transportation from
18appropriations for those purposes for any fiscal year, without
19regard to the fact that the qualification or obligation may
20have occurred in a prior fiscal year, provided that at the time
21the expenditure was made the project had been approved by the
22Department of Transportation prior to June 1, 2012 and, as a
23result of recent changes in federal funding formulas, can no
24longer receive federal reimbursement.
25    (b-9) (Blank).
26    (c) Further, payments may be made by the Department of

 

 

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1Public Health and the Department of Human Services (acting as
2successor to the Department of Public Health under the
3Department of Human Services Act) from their respective
4appropriations for grants for medical care to or on behalf of
5premature and high-mortality risk infants and their mothers
6and for grants for supplemental food supplies provided under
7the United States Department of Agriculture Women, Infants and
8Children Nutrition Program, for any fiscal year without regard
9to the fact that the services being compensated for by such
10payment may have been rendered in a prior fiscal year, except
11as required by subsection (j) of this Section. Beginning on
12June 30, 2021, payments made by the Department of Public
13Health and the Department of Human Services from their
14respective appropriations for grants for medical care to or on
15behalf of premature and high-mortality risk infants and their
16mothers and for grants for supplemental food supplies provided
17under the United States Department of Agriculture Women,
18Infants and Children Nutrition Program payable from
19appropriations that have otherwise expired may be paid out of
20the expiring appropriations during the 4-month period ending
21at the close of business on October 31.
22    (d) The Department of Public Health and the Department of
23Human Services (acting as successor to the Department of
24Public Health under the Department of Human Services Act)
25shall each annually submit to the State Comptroller, Senate
26President, Senate Minority Leader, Speaker of the House, House

 

 

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1Minority Leader, and the respective Chairmen and Minority
2Spokesmen of the Appropriations Committees of the Senate and
3the House, on or before December 31, a report of fiscal year
4funds used to pay for services provided in any prior fiscal
5year. This report shall document by program or service
6category those expenditures from the most recently completed
7fiscal year used to pay for services provided in prior fiscal
8years.
9    (e) The Department of Healthcare and Family Services, the
10Department of Human Services (acting as successor to the
11Department of Public Aid), and the Department of Human
12Services making fee-for-service payments relating to substance
13abuse treatment services provided during a previous fiscal
14year shall each annually submit to the State Comptroller,
15Senate President, Senate Minority Leader, Speaker of the
16House, House Minority Leader, the respective Chairmen and
17Minority Spokesmen of the Appropriations Committees of the
18Senate and the House, on or before November 30, a report that
19shall document by program or service category those
20expenditures from the most recently completed fiscal year used
21to pay for (i) services provided in prior fiscal years and (ii)
22services for which claims were received in prior fiscal years.
23    (f) The Department of Human Services (as successor to the
24Department of Public Aid) shall annually submit to the State
25Comptroller, Senate President, Senate Minority Leader, Speaker
26of the House, House Minority Leader, and the respective

 

 

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1Chairmen and Minority Spokesmen of the Appropriations
2Committees of the Senate and the House, on or before December
331, a report of fiscal year funds used to pay for services
4(other than medical care) provided in any prior fiscal year.
5This report shall document by program or service category
6those expenditures from the most recently completed fiscal
7year used to pay for services provided in prior fiscal years.
8    (g) In addition, each annual report required to be
9submitted by the Department of Healthcare and Family Services
10under subsection (e) shall include the following information
11with respect to the State's Medicaid program:
12        (1) Explanations of the exact causes of the variance
13    between the previous year's estimated and actual
14    liabilities.
15        (2) Factors affecting the Department of Healthcare and
16    Family Services' liabilities, including, but not limited
17    to, numbers of aid recipients, levels of medical service
18    utilization by aid recipients, and inflation in the cost
19    of medical services.
20        (3) The results of the Department's efforts to combat
21    fraud and abuse.
22    (h) As provided in Section 4 of the General Assembly
23Compensation Act, any utility bill for service provided to a
24General Assembly member's district office for a period
25including portions of 2 consecutive fiscal years may be paid
26from funds appropriated for such expenditure in either fiscal

 

 

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1year.
2    (i) An agency which administers a fund classified by the
3Comptroller as an internal service fund may issue rules for:
4        (1) billing user agencies in advance for payments or
5    authorized inter-fund transfers based on estimated charges
6    for goods or services;
7        (2) issuing credits, refunding through inter-fund
8    transfers, or reducing future inter-fund transfers during
9    the subsequent fiscal year for all user agency payments or
10    authorized inter-fund transfers received during the prior
11    fiscal year which were in excess of the final amounts owed
12    by the user agency for that period; and
13        (3) issuing catch-up billings to user agencies during
14    the subsequent fiscal year for amounts remaining due when
15    payments or authorized inter-fund transfers received from
16    the user agency during the prior fiscal year were less
17    than the total amount owed for that period.
18User agencies are authorized to reimburse internal service
19funds for catch-up billings by vouchers drawn against their
20respective appropriations for the fiscal year in which the
21catch-up billing was issued or by increasing an authorized
22inter-fund transfer during the current fiscal year. For the
23purposes of this Act, "inter-fund transfers" means transfers
24without the use of the voucher-warrant process, as authorized
25by Section 9.01 of the State Comptroller Act.
26    (i-1) Beginning on July 1, 2021, all outstanding

 

 

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1liabilities, not payable during the 4-month lapse period as
2described in subsections (b-1), (b-3), (b-4), (b-5), and (c)
3of this Section, that are made from appropriations for that
4purpose for any fiscal year, without regard to the fact that
5the services being compensated for by those payments may have
6been rendered in a prior fiscal year, are limited to only those
7claims that have been incurred but for which a proper bill or
8invoice as defined by the State Prompt Payment Act has not been
9received by September 30th following the end of the fiscal
10year in which the service was rendered.
11    (j) Notwithstanding any other provision of this Act, the
12aggregate amount of payments to be made without regard for
13fiscal year limitations as contained in subsections (b-1),
14(b-3), (b-4), (b-5), and (c) of this Section, and determined
15by using Generally Accepted Accounting Principles, shall not
16exceed the following amounts:
17        (1) $6,000,000,000 for outstanding liabilities related
18    to fiscal year 2012;
19        (2) $5,300,000,000 for outstanding liabilities related
20    to fiscal year 2013;
21        (3) $4,600,000,000 for outstanding liabilities related
22    to fiscal year 2014;
23        (4) $4,000,000,000 for outstanding liabilities related
24    to fiscal year 2015;
25        (5) $3,300,000,000 for outstanding liabilities related
26    to fiscal year 2016;

 

 

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1        (6) $2,600,000,000 for outstanding liabilities related
2    to fiscal year 2017;
3        (7) $2,000,000,000 for outstanding liabilities related
4    to fiscal year 2018;
5        (8) $1,300,000,000 for outstanding liabilities related
6    to fiscal year 2019;
7        (9) $600,000,000 for outstanding liabilities related
8    to fiscal year 2020; and
9        (10) $0 for outstanding liabilities related to fiscal
10    year 2021 and fiscal years thereafter.
11    (k) Department of Healthcare and Family Services Medical
12Assistance Payments.
13        (1) Definition of Medical Assistance.
14            For purposes of this subsection, the term "Medical
15        Assistance" shall include, but not necessarily be
16        limited to, medical programs and services authorized
17        under Titles XIX and XXI of the Social Security Act,
18        the Illinois Public Aid Code, the Children's Health
19        Insurance Program Act, the Covering ALL KIDS Health
20        Insurance Act, the Long Term Acute Care Hospital
21        Quality Improvement Transfer Program Act, and medical
22        care to or on behalf of persons suffering from chronic
23        renal disease, persons suffering from hemophilia, and
24        victims of sexual assault.
25        (2) Limitations on Medical Assistance payments that
26    may be paid from future fiscal year appropriations.

 

 

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1            (A) The maximum amounts of annual unpaid Medical
2        Assistance bills received and recorded by the
3        Department of Healthcare and Family Services on or
4        before June 30th of a particular fiscal year
5        attributable in aggregate to the General Revenue Fund,
6        Healthcare Provider Relief Fund, Tobacco Settlement
7        Recovery Fund, Long-Term Care Provider Fund, and the
8        Drug Rebate Fund that may be paid in total by the
9        Department from future fiscal year Medical Assistance
10        appropriations to those funds are: $700,000,000 for
11        fiscal year 2013 and $100,000,000 for fiscal year 2014
12        and each fiscal year thereafter.
13            (B) Bills for Medical Assistance services rendered
14        in a particular fiscal year, but received and recorded
15        by the Department of Healthcare and Family Services
16        after June 30th of that fiscal year, may be paid from
17        either appropriations for that fiscal year or future
18        fiscal year appropriations for Medical Assistance.
19        Such payments shall not be subject to the requirements
20        of subparagraph (A).
21            (C) Medical Assistance bills received by the
22        Department of Healthcare and Family Services in a
23        particular fiscal year, but subject to payment amount
24        adjustments in a future fiscal year may be paid from a
25        future fiscal year's appropriation for Medical
26        Assistance. Such payments shall not be subject to the

 

 

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1        requirements of subparagraph (A).
2            (D) Medical Assistance payments made by the
3        Department of Healthcare and Family Services from
4        funds other than those specifically referenced in
5        subparagraph (A) may be made from appropriations for
6        those purposes for any fiscal year without regard to
7        the fact that the Medical Assistance services being
8        compensated for by such payment may have been rendered
9        in a prior fiscal year. Such payments shall not be
10        subject to the requirements of subparagraph (A).
11        (3) Extended lapse period for Department of Healthcare
12    and Family Services Medical Assistance payments.
13    Notwithstanding any other State law to the contrary,
14    outstanding Department of Healthcare and Family Services
15    Medical Assistance liabilities, as of June 30th, payable
16    from appropriations which have otherwise expired, may be
17    paid out of the expiring appropriations during the 4-month
18    period ending at the close of business on October 31st.
19    (l) The changes to this Section made by Public Act 97-691
20shall be effective for payment of Medical Assistance bills
21incurred in fiscal year 2013 and future fiscal years. The
22changes to this Section made by Public Act 97-691 shall not be
23applied to Medical Assistance bills incurred in fiscal year
242012 or prior fiscal years.
25    (m) The Comptroller must issue payments against
26outstanding liabilities that were received prior to the lapse

 

 

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1period deadlines set forth in this Section as soon thereafter
2as practical, but no payment may be issued after the 4 months
3following the lapse period deadline without the signed
4authorization of the Comptroller and the Governor or as
5provided by Section 18 of the Court of Claims Act.
6(Source: P.A. 102-16, eff. 6-17-21; 102-291, eff. 8-6-21;
7102-699, eff. 4-19-22; 102-813, eff. 5-13-22; 103-8, eff.
86-7-23.)
 
9    Section 15. The State Prompt Payment Act is amended by
10changing Sections 1, 3-2, 3-3, 3-4, 3-5, 3-6, 5, and 7 as
11follows:
 
12    (30 ILCS 540/1)  (from Ch. 127, par. 132.401)
13    Sec. 1. This Act applies to any State official or agency
14authorized to provide for payment from State funds, by virtue
15of any appropriation of the General Assembly, for goods or
16services furnished to the State.
17    For purposes of this Act, "goods or services furnished to
18the State" include but are not limited to (i) covered health
19care provided to eligible members and their covered dependents
20in accordance with the State Employees Group Insurance Act of
211971, including coverage through a physician-owned health
22maintenance organization under Section 6.1 of that Act, (ii)
23prevention, intervention, or treatment services and supports
24for persons with developmental disabilities, mental health

 

 

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1services, alcohol and substance abuse services, rehabilitation
2services, and early intervention services provided by a
3vendor, and (iii) prevention, intervention, or treatment
4services and supports for youth provided by a vendor by virtue
5of a contractual grant agreement. For the purposes of items
6(ii) and (iii), a vendor includes but is not limited to sellers
7of goods and services, including community-based organizations
8that are licensed to provide prevention, intervention, or
9treatment services and supports for persons with developmental
10disabilities, mental illness, and substance abuse problems, or
11that provides prevention, intervention, or treatment services
12and supports for youth.
13    For the purposes of this Act, "appropriate State official
14or agency" is defined as the Director or Chief Executive or his
15designee of that State agency or department or facility of
16such agency or department. With respect to covered health care
17provided to eligible members and their dependents in
18accordance with the State Employees Group Insurance Act of
191971, "appropriate State official or agency" also includes an
20administrator of a program of health benefits under that Act.
21    As used in this Act, "eligible member" means a member who
22is eligible for health benefits under the State Employees
23Group Insurance Act of 1971, and "member" and "dependent" have
24the meanings ascribed to those terms in that Act.
25    As used in this Act, "a proper bill or invoice" means a
26bill or invoice, including, but not limited to, an invoice

 

 

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1issued under a contractual grant agreement, that includes the
2information necessary for processing the payment as may be
3specified by a State agency and in rules adopted in accordance
4with this Act. Beginning on and after July 1, 2021, "a proper
5bill or invoice" shall also include the names of all
6subcontractors or subconsultants to be paid from the bill or
7invoice and the amounts due to each of them, if any.
8(Source: P.A. 100-549, eff. 1-1-18; 101-524, eff. 1-1-20.)
 
9    (30 ILCS 540/3-2)
10    Sec. 3-2. Beginning July 1, 1993, in any instance where a
11State official or agency is late in payment of a vendor's bill
12or invoice for goods or services furnished to the State, as
13defined in Section 1, properly approved in accordance with
14rules promulgated under Section 3-3, the State official or
15agency shall pay interest to the vendor in accordance with the
16following:
17        (1) (Blank). Any bill, except a bill submitted under
18    Article V of the Illinois Public Aid Code and except as
19    provided under paragraph (1.05) of this Section, approved
20    for payment under this Section must be paid or the payment
21    issued to the payee within 60 days of receipt of a proper
22    bill or invoice. If payment is not issued to the payee
23    within this 60-day period, an interest penalty of 1.0% of
24    any amount approved and unpaid shall be added for each
25    month or fraction thereof after the end of this 60-day

 

 

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1    period, until final payment is made. Any bill, except a
2    bill for pharmacy or nursing facility services or goods,
3    and except as provided under paragraph (1.05) of this
4    Section, submitted under Article V of the Illinois Public
5    Aid Code approved for payment under this Section must be
6    paid or the payment issued to the payee within 60 days
7    after receipt of a proper bill or invoice, and, if payment
8    is not issued to the payee within this 60-day period, an
9    interest penalty of 2.0% of any amount approved and unpaid
10    shall be added for each month or fraction thereof after
11    the end of this 60-day period, until final payment is
12    made. Any bill for pharmacy or nursing facility services
13    or goods submitted under Article V of the Illinois Public
14    Aid Code, except as provided under paragraph (1.05) of
15    this Section, and approved for payment under this Section
16    must be paid or the payment issued to the payee within 60
17    days of receipt of a proper bill or invoice. If payment is
18    not issued to the payee within this 60-day period, an
19    interest penalty of 1.0% of any amount approved and unpaid
20    shall be added for each month or fraction thereof after
21    the end of this 60-day period, until final payment is
22    made.
23        (1.05) Except as provided in paragraph (3) of this
24    Section, for For State fiscal years year 2012 through 2024
25    and future fiscal years, any bill approved for payment
26    under this Section must be paid or the payment issued to

 

 

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1    the payee within 90 days of receipt of a proper bill or
2    invoice. If payment is not issued to the payee within this
3    90-day period, an interest penalty of 1.0% of any amount
4    approved and unpaid shall be added for each month, or
5    0.033% (one-thirtieth of one percent) of any amount
6    approved and unpaid for each day, after the end of this
7    90-day period, until final payment is made.
8        For State fiscal year 2025 and future fiscal years,
9    any bill approved for payment under this Section must be
10    paid or the payment issued to the payee within 45 days of
11    receipt of a proper bill or invoice. If payment is not
12    issued to the payee within this 45-day period, an interest
13    penalty of 1.0% of any amount approved and unpaid shall be
14    added for each month, or 0.033% (one-thirtieth of one
15    percent) of any amount approved and unpaid for each day,
16    after the end of this 45-day period, until final payment
17    is made.
18        (1.1) A State agency shall review in a timely manner
19    each bill or invoice within 30 days after its receipt. If
20    the State agency determines that the bill or invoice
21    contains a defect making it unable to process the payment
22    request, the agency shall notify the vendor requesting
23    payment as soon as possible after discovering the defect
24    pursuant to rules promulgated under Section 3-3; provided,
25    however, that the notice for construction related bills or
26    invoices must be given not later than 30 days after the

 

 

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1    bill or invoice was first submitted. The notice shall
2    identify the defect and any additional information
3    necessary to correct the defect. If one or more items on a
4    construction related bill or invoice are disapproved, but
5    not the entire bill or invoice, then the portion that is
6    not disapproved shall be paid in accordance with the
7    requirements of this Act.
8        (2) Where a State official or agency is late in
9    payment of a vendor's bill or invoice properly approved in
10    accordance with this Act, and different late payment terms
11    are not reduced to writing as a contractual agreement, the
12    State official or agency shall automatically pay interest
13    penalties required by this Section amounting to $50 or
14    more to the appropriate vendor. Each agency shall be
15    responsible for determining whether an interest penalty is
16    owed and for paying the interest to the vendor. Except as
17    provided in paragraph (4), an individual interest payment
18    amounting to $5 or less shall not be paid by the State.
19    Interest due to a vendor that amounts to greater than $5
20    and less than $50 shall not be paid but shall be accrued
21    until all interest due the vendor for all similar warrants
22    exceeds $50, at which time the accrued interest shall be
23    payable and interest will begin accruing again, except
24    that interest accrued as of the end of the fiscal year that
25    does not exceed $50 shall be payable at that time. In the
26    event an individual has paid a vendor for services in

 

 

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1    advance, the provisions of this Section shall apply until
2    payment is made to that individual.
3        (3) The provisions of Public Act 96-1501 reducing the
4    interest rate on pharmacy claims under Article V of the
5    Illinois Public Aid Code to 1.0% per month shall apply to
6    any pharmacy bills for services and goods under Article V
7    of the Illinois Public Aid Code received on or after the
8    date 60 days before January 25, 2011 (the effective date
9    of Public Act 96-1501) except as provided under paragraph
10    (1.05) of this Section.
11        (4) Interest amounting to less than $5 shall not be
12    paid by the State, except for claims (i) to the Department
13    of Healthcare and Family Services or the Department of
14    Human Services, (ii) pursuant to Article V of the Illinois
15    Public Aid Code, the Covering ALL KIDS Health Insurance
16    Act, or the Children's Health Insurance Program Act, and
17    (iii) made (A) by pharmacies for prescriptive services or
18    (B) by any federally qualified health center for
19    prescriptive services or any other services.
20    Notwithstanding any provision to the contrary, interest
21may not be paid under this Act when: (1) a Chief Procurement
22Officer has voided the underlying contract for goods or
23services under Article 50 of the Illinois Procurement Code; or
24(2) the Auditor General is conducting a performance or program
25audit and the Comptroller has held or is holding for review a
26related contract or vouchers for payment of goods or services

 

 

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1in the exercise of duties under Section 9 of the State
2Comptroller Act. In such event, interest shall not accrue
3during the pendency of the Auditor General's review.
4(Source: P.A. 100-1064, eff. 8-24-18.)
 
5    (30 ILCS 540/3-3)  (from Ch. 127, par. 132.403-3)
6    Sec. 3-3. The State Comptroller and the Department of
7Central Management Services shall jointly promulgate rules and
8policies to govern the uniform application of this Act. These
9rules and policies shall include procedures and time frames
10for approving a bill or invoice from a vendor for goods or
11services furnished to the State. Those rules shall require
12that action to approve or reject a bill or invoice shall be
13taken not more than 30 days after receiving the bill or invoice
14from the vendor. These rules and policies shall provide for
15procedures and time frames applicable to payment plans as may
16be agreed upon between State agencies and vendors. These rules
17and policies shall be binding on all officials and agencies
18under this Act's jurisdiction. These rules and policies may be
19made effective no earlier than July 1, 1993.
20(Source: P.A. 92-384, eff. 7-1-02.)
 
21    (30 ILCS 540/3-4)
22    Sec. 3-4. The State Comptroller must specify the manner in
23which State agencies shall record interest penalty payments
24made under this Act. The State Comptroller may require

 

 

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1vouchers submitted for payment, including submission by
2electronic or other means approved by the Comptroller, to
3indicate the appropriate date from which interest penalties
4may be calculated as required under this Act. The date from
5which interest penalties for late payments may be calculated
6may be the effective date of the grant, if work included in the
7grant agreement began on or after the effective date of the
8grant.
9(Source: P.A. 92-384, eff. 7-1-02.)
 
10    (30 ILCS 540/3-5)
11    Sec. 3-5. Budget Stabilization Fund; insufficient
12appropriation. If an agency incurs an interest liability under
13this Act that is ordinarily payable from the Budget
14Stabilization Fund, but the agency has insufficient
15appropriation authority from the Budget Stabilization Fund to
16make the interest payment at the time the interest payment is
17due, the agency is authorized to pay the interest from its
18available appropriations from any funding source the General
19Revenue Fund.
20(Source: P.A. 100-23, eff. 7-6-17.)
 
21    (30 ILCS 540/3-6)
22    Sec. 3-6. Federal funds; lack of authority. If an agency
23incurs an interest liability under this Act that cannot be
24charged to the same expenditure authority account to which the

 

 

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1related goods or services were charged due to federal
2prohibitions, the agency is authorized to pay the interest
3from its available appropriations from any funding source the
4General Revenue Fund.
5(Source: P.A. 100-587, eff. 6-4-18.)
 
6    (30 ILCS 540/5)  (from Ch. 127, par. 132.405)
7    Sec. 5. The State remittance and the grant agreement shall
8indicate that payment of interest may be available for failure
9to comply with this Act.
10(Source: P.A. 92-384, eff. 7-1-02.)
 
11    (30 ILCS 540/7)  (from Ch. 127, par. 132.407)
12    Sec. 7. Payments to subcontractors and material suppliers.
13    (a) When a State official or agency responsible for
14administering a contract receives a bill or invoice from a
15contractor, that State official or agency shall electronically
16confirm the date on which the bill or invoice was received
17within 5 business days of receipt, and shall transmit any
18approved amount to the Comptroller within 30 days of receipt.
19    (a-1) When a State official or agency responsible for
20administering a contract submits a voucher to the Comptroller
21for payment to a contractor, that State official or agency
22shall promptly make available electronically the voucher
23number, the date of the voucher, and the amount of the voucher
24within 5 business days of submitting the voucher to the

 

 

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1Comptroller. The State official or agency responsible for
2administering the contract shall provide subcontractors and
3material suppliers, known to the State official or agency,
4with instructions on how to access the electronic information
5on the Comptroller's website.
6    (a-5) When a contractor receives any payment, the
7contractor shall pay each subcontractor and material supplier
8electronically within 10 business days or 15 calendar days,
9whichever occurs earlier, or, if paid by a printed check, the
10printed check must be postmarked within 10 business days or 15
11calendar days, whichever occurs earlier, after receiving
12payment in proportion to the work completed by each
13subcontractor and material supplier its application or pay
14estimate, plus interest received under this Act. When a
15contractor receives any payment, the contractor shall pay each
16lower-tiered subcontractor and material supplier and each
17subcontractor and material supplier shall make payment to its
18own respective subcontractors and material suppliers. If the
19contractor receives less than the full payment due under the
20public construction contract, the contractor shall be
21obligated to disburse on a pro rata basis those funds
22received, plus interest received under this Act, with the
23contractor, subcontractors and material suppliers each
24receiving a prorated portion based on the amount of payment
25each has earned. When, however, the State official or agency
26does not release the full payment due under the contract

 

 

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1because there are specific areas of work or materials the
2State agency or official has determined are not suitable for
3payment, then those specific subcontractors or material
4suppliers involved shall not be paid for that portion of work
5rejected or deemed not suitable for payment and all other
6subcontractors and suppliers shall be paid based upon the
7amount of payment each has earned, plus interest received
8under this Act.
9    (a-10) For construction contracts with the Department of
10Transportation, the contractor, subcontractor, or material
11supplier, regardless of tier, shall not offset, decrease, or
12diminish payment or payments that are due to its
13subcontractors or material suppliers without reasonable cause.
14    A contractor, who refuses to make prompt payment within 10
15business days or 15 calendar days, whichever occurs earlier,
16after receiving payment, in whole or in part, shall provide to
17the subcontractor or material supplier and the public owner or
18its agent, a written notice of that refusal. The written
19notice shall be made by a contractor no later than 5 calendar
20days after payment is received by the contractor. The written
21notice shall identify the Department of Transportation's
22contract, any subcontract or material purchase agreement, a
23detailed reason for refusal, the value of the payment to be
24withheld, and the specific remedial actions required of the
25subcontractor or material supplier so that payment may be
26made. Written notice of refusal may be given in a form and

 

 

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1method which is acceptable to the parties and public owner.
2    (b) If the contractor, without reasonable cause, fails to
3make full payment of amounts due under subsection (a) to its
4subcontractors and material suppliers within 10 business days
5or 15 calendar days, whichever occurs earlier, after receipt
6of payment from the State official or agency, the contractor
7shall pay to its subcontractors and material suppliers, in
8addition to the payment due them, interest in the amount of 2%
9per month, calculated from the expiration of the
1010-business-day period or the 15-calendar-day period until
11fully paid. This subsection shall further apply to any
12payments made by subcontractors and material suppliers to
13their subcontractors and material suppliers and to all
14payments made to lower tier subcontractors and material
15suppliers throughout the contracting chain.
16        (1) If a contractor, without reasonable cause, fails
17    to make payment in full as provided in subsection (a-5)
18    within 10 business days or 15 calendar days, whichever
19    occurs earlier, after receipt of payment under the public
20    construction contract, any subcontractor or material
21    supplier to whom payments are owed may file a written
22    notice and request for administrative hearing with the
23    State official or agency setting forth the amount owed by
24    the contractor and the contractor's failure to timely pay
25    the amount owed. The written notice and request for
26    administrative hearing shall identify the public

 

 

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1    construction contract, the contractor, and the amount
2    owed, and shall contain a sworn statement or attestation
3    to verify the accuracy of the notice. The notice and
4    request for administrative hearing shall be filed with the
5    State official for the public construction contract, with
6    a copy of the notice concurrently provided to the
7    contractor. Notice to the State official may be made by
8    certified or registered mail, messenger service, or
9    personal service, and must include proof of delivery to
10    the State official.
11        (2) The State official or agency, within 15 calendar
12    days after receipt of a subcontractor's or material
13    supplier's written notice and request for administrative
14    hearing, shall hold a hearing convened by an
15    administrative law judge to determine whether the
16    contractor withheld payment, without reasonable cause,
17    from the subcontractors or material suppliers and what
18    amount, if any, is due to the subcontractors or material
19    suppliers, and the reasonable cause or causes asserted by
20    the contractor. The State official or agency shall provide
21    appropriate notice to the parties of the date, time, and
22    location of the hearing. Each contractor, subcontractor,
23    or material supplier has the right to be represented by
24    counsel at a hearing and to cross-examine witnesses and
25    challenge documents. Upon the request of the subcontractor
26    or material supplier and a showing of good cause,

 

 

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1    reasonable continuances may be granted by the
2    administrative law judge.
3        (3) Upon a finding by the administrative law judge
4    that the contractor failed to make payment in full,
5    without reasonable cause, as provided in subsection
6    (a-10), then the administrative law judge shall, in
7    writing, order the contractor to pay the amount owed to
8    the subcontractors or material suppliers plus interest
9    within 15 calendar days after the order.
10        (4) If a contractor fails to make full payment as
11    ordered under paragraph (3) of this subsection (b) within
12    15 days after the administrative law judge's order, then
13    the contractor shall be barred from entering into a State
14    public construction contract for a period of one year
15    beginning on the date of the administrative law judge's
16    order.
17        (5) If, on 2 or more occasions within a
18    3-calendar-year period, there is a finding by an
19    administrative law judge that the contractor failed to
20    make payment in full, without reasonable cause, and a
21    written order was issued to a contractor under paragraph
22    (3) of this subsection (b), then the contractor shall be
23    barred from entering into a State public construction
24    contract for a period of 6 months beginning on the date of
25    the administrative law judge's second written order, even
26    if the payments required under the orders were made in

 

 

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1    full.
2        (6) If a contractor fails to make full payment as
3    ordered under paragraph (4) of this subsection (b), the
4    subcontractor or material supplier may, within 30 days of
5    the date of that order, petition the State agency for an
6    order for reasonable attorney's fees and costs incurred in
7    the prosecution of the action under this subsection (b).
8    Upon that petition and taking of additional evidence, as
9    may be required, the administrative law judge may issue a
10    supplemental order directing the contractor to pay those
11    reasonable attorney's fees and costs.
12        (7) The written order of the administrative law judge
13    shall be final and appealable under the Administrative
14    Review Law.
15    (b-5) On or before July 2021, the Department of
16Transportation shall publish on its website a searchable
17database that allows for queries for each active construction
18contract by the name of a subcontractor or the pay item such
19that each pay item is associated with either the prime
20contractor or a subcontractor.
21    (c) This Section shall not be construed to in any manner
22diminish, negate, or interfere with the
23contractor-subcontractor or contractor-material supplier
24relationship or commercially useful function.
25    (d) This Section shall not preclude, bar, or stay the
26rights, remedies, and defenses available to the parties by way

 

 

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1of the operation of their contract, purchase agreement, the
2Mechanics Lien Act, or the Public Construction Bond Act.
3    (e) State officials and agencies may adopt rules as may be
4deemed necessary in order to establish the formal procedures
5required under this Section.
6    (f) As used in this Section:
7    "Payment" means the discharge of an obligation in money or
8other valuable consideration or thing delivered in full or
9partial satisfaction of an obligation to pay. "Payment" shall
10include interest paid pursuant to this Act.
11    "Reasonable cause" may include, but is not limited to,
12unsatisfactory workmanship or materials; failure to provide
13documentation required by the contract, subcontract, or
14material purchase agreement; claims made against the
15Department of Transportation or the subcontractor pursuant to
16subsection (c) of Section 23 of the Mechanics Lien Act or the
17Public Construction Bond Act; judgments, levies, garnishments,
18or other court-ordered assessments or offsets in favor of the
19Department of Transportation or other State agency entered
20against a subcontractor or material supplier. "Reasonable
21cause" does not include payments issued to the contractor that
22create a negative or reduced valuation pay application or pay
23estimate due to a reduction of contract quantities or work not
24performed or provided by the subcontractor or material
25supplier; the interception or withholding of funds for reasons
26not related to the subcontractor's or material supplier's work

 

 

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1on the contract; anticipated claims or assessments of third
2parties not a party related to the contract or subcontract;
3asserted claims or assessments of third parties that are not
4authorized by court order, administrative tribunal, or
5statute. "Reasonable cause" further does not include the
6withholding, offset, or reduction of payment, in whole or in
7part, due to the assessment of liquidated damages or penalties
8assessed by the Department of Transportation against the
9contractor, unless the subcontractor's performance or supplied
10materials were the sole and proximate cause of the liquidated
11damage or penalty.
12(Source: P.A. 100-43, eff. 8-9-17; 100-376, eff. 1-1-18;
13100-863, eff. 8-14-18; 101-524, eff. 1-1-20.)
 
14    Section 20. The Grant Accountability and Transparency Act
15is amended by changing Sections 15, 25, 30, 50, 65, 97, and 125
16and by adding Section 135 as follows:
 
17    (30 ILCS 708/15)
18    Sec. 15. Definitions. As used in this Act:
19    "Administrative costs" has the same meaning as given to
20that term in 20 CFR 641.856.
21    "Allowable cost" means a cost allowable to a project if:
22        (1) the costs are reasonable and necessary for the
23    performance of the award;
24        (2) the costs are allocable to the specific project;

 

 

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1        (3) the costs are treated consistently in like
2    circumstances to both federally-financed and other
3    activities of the non-federal entity;
4        (4) the costs conform to any limitations of the cost
5    principles or the sponsored agreement;
6        (5) the costs are accorded consistent treatment; a
7    cost may not be assigned to a State or federal award as a
8    direct cost if any other cost incurred for the same
9    purpose in like circumstances has been allocated to the
10    award as an indirect cost;
11        (6) the costs are determined to be in accordance with
12    generally accepted accounting principles;
13        (7) the costs are not included as a cost or used to
14    meet federal cost-sharing or matching requirements of any
15    other program in either the current or prior period;
16        (8) the costs of one State or federal grant are not
17    used to meet the match requirements of another State or
18    federal grant; and
19        (9) the costs are adequately documented.
20    "Assistance listing" means the database that helps the
21federal government track all programs it has domestically
22funded.
23    "Assistance listing number" or "ALN" means the number
24assigned to a federal program in the assistance listing.
25    "Auditee" means any non-federal entity that expends State
26or federal awards that must be audited.

 

 

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1    "Auditor" means an auditor who is a public accountant or a
2federal, State, or local government audit organization that
3meets the general standards specified in generally-accepted
4government auditing standards. "Auditor" does not include
5internal auditors of not-for-profit nonprofit organizations.
6    "Auditor General" means the Auditor General of the State
7of Illinois.
8    "Award" means financial assistance that provides support
9or stimulation to accomplish a public purpose. "Awards"
10include grants and other agreements in the form of money, or
11property in lieu of money, by the State or federal government
12to an eligible recipient. "Award" does not include: technical
13assistance that provides services instead of money; other
14assistance in the form of loans, loan guarantees, interest
15subsidies, or insurance; direct payments of any kind to
16individuals; or contracts that must be entered into and
17administered under State or federal procurement laws and
18regulations.
19    "Budget" means the financial plan for the project or
20program that the awarding agency or pass-through entity
21approves during the award process or in subsequent amendments
22to the award. It may include the State or federal and
23non-federal share or only the State or federal share, as
24determined by the awarding agency or pass-through entity.
25    "Catalog of Federal Domestic Assistance" or "CFDA" means a
26database that helps the federal government track all programs

 

 

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1it has domestically funded.
2    "Catalog of Federal Domestic Assistance number" or "CFDA
3number" means the number assigned to a federal program in the
4CFDA.
5    "Catalog of State Financial Assistance" means the single,
6authoritative, statewide, comprehensive source document of
7State financial assistance program information maintained by
8the Governor's Office of Management and Budget.
9    "Catalog of State Financial Assistance Number" means the
10number assigned to a State program in the Catalog of State
11Financial Assistance. The first 3 digits represent the State
12agency number and the last 4 digits represent the program.
13    "Cluster of programs" means a grouping of closely related
14programs that share common compliance requirements. The types
15of clusters of programs are research and development, student
16financial aid, and other clusters. A "cluster of programs"
17shall be considered as one program for determining major
18programs and, with the exception of research and development,
19whether a program-specific audit may be elected.
20    "Cognizant agency for audit" means the federal agency
21designated to carry out the responsibilities described in 2
22CFR 200.513(a).
23    "Contract" means a legal instrument by which a non-federal
24entity purchases property or services needed to carry out the
25project or program under an award. "Contract" does not include
26a legal instrument, even if the non-federal entity considers

 

 

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1it a contract, when the substance of the transaction meets the
2definition of an award or subaward.
3    "Contractor" means an entity that receives a contract.
4    "Cooperative agreement" means a legal instrument of
5financial assistance between an awarding agency or
6pass-through entity and a non-federal entity that:
7        (1) is used to enter into a relationship with the
8    principal purpose of transferring anything of value from
9    the awarding agency or pass-through entity to the
10    non-federal entity to carry out a public purpose
11    authorized by law, but is not used to acquire property or
12    services for the awarding agency's or pass-through
13    entity's direct benefit or use; and
14        (2) is distinguished from a grant in that it provides
15    for substantial involvement between the awarding agency or
16    pass-through entity and the non-federal entity in carrying
17    out the activity contemplated by the award.
18    "Cooperative agreement" does not include a cooperative
19research and development agreement, nor an agreement that
20provides only direct cash assistance to an individual, a
21subsidy, a loan, a loan guarantee, or insurance.
22    "Corrective action" means action taken by the auditee that
23(i) corrects identified deficiencies, (ii) produces
24recommended improvements, or (iii) demonstrates that audit
25findings are either invalid or do not warrant auditee action.
26    "Cost objective" means a program, function, activity,

 

 

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1award, organizational subdivision, contract, or work unit for
2which cost data is desired and for which provision is made to
3accumulate and measure the cost of processes, products, jobs,
4and capital projects. A "cost objective" may be a major
5function of the non-federal entity, a particular service or
6project, an award, or an indirect cost activity.
7    "Cost sharing" means the portion of project costs not paid
8by State or federal funds, unless otherwise authorized by
9statute.
10    "Development" is the systematic use of knowledge and
11understanding gained from research directed toward the
12production of useful materials, devices, systems, or methods,
13including design and development of prototypes and processes.
14    "Data Universal Numbering System number" means the 9-digit
15number established and assigned by Dun and Bradstreet, Inc. to
16uniquely identify entities and, under federal law, is required
17for non-federal entities to apply for, receive, and report on
18a federal award.
19    "Direct costs" means costs that can be identified
20specifically with a particular final cost objective, such as a
21State or federal or federal pass-through award or a particular
22sponsored project, an instructional activity, or any other
23institutional activity, or that can be directly assigned to
24such activities relatively easily with a high degree of
25accuracy.
26    "Equipment" means tangible personal property (including

 

 

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1information technology systems) having a useful life of more
2than one year and a per-unit acquisition cost that equals or
3exceeds the lesser of the capitalization level established by
4the non-federal entity for financial statement purposes, or
5$5,000.
6    "Executive branch" means that branch of State government
7that is under the jurisdiction of the Governor.
8    "Federal agency" has the meaning provided for "agency"
9under 5 U.S.C. 551(1) together with the meaning provided for
10"agency" by 5 U.S.C. 552(f).
11    "Federal award" means:
12        (1) the federal financial assistance that a
13    non-federal entity receives directly from a federal
14    awarding agency or indirectly from a pass-through entity;
15        (2) the cost-reimbursement contract under the Federal
16    Acquisition Regulations that a non-federal entity receives
17    directly from a federal awarding agency or indirectly from
18    a pass-through entity; or
19        (3) the instrument setting forth the terms and
20    conditions when the instrument is the grant agreement,
21    cooperative agreement, other agreement for assistance
22    covered in paragraph (b) of 20 CFR 200.40, or the
23    cost-reimbursement contract awarded under the Federal
24    Acquisition Regulations.
25    "Federal award" does not include other contracts that a
26federal agency uses to buy goods or services from a contractor

 

 

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1or a contract to operate federal government owned,
2contractor-operated facilities.
3    "Federal awarding agency" means the federal agency that
4provides a federal award directly to a non-federal entity.
5    "Federal interest" means, for purposes of 2 CFR 200.329 or
6when used in connection with the acquisition or improvement of
7real property, equipment, or supplies under a federal award,
8the dollar amount that is the product of the federal share of
9total project costs and current fair market value of the
10property, improvements, or both, to the extent the costs of
11acquiring or improving the property were included as project
12costs.
13    "Federal program" means any of the following:
14        (1) All federal awards which are assigned a single
15    number in the assistance listing CFDA.
16        (2) When no ALN CFDA number is assigned, all federal
17    awards to non-federal entities from the same agency made
18    for the same purpose should be combined and considered one
19    program.
20        (3) Notwithstanding paragraphs (1) and (2) of this
21    definition, a cluster of programs. The types of clusters
22    of programs are:
23            (A) research and development;
24            (B) student financial aid; and
25            (C) "other clusters", as described in the
26        definition of "cluster of programs".

 

 

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1    "Federal share" means the portion of the total project
2costs that are paid by federal funds.
3    "Final cost objective" means a cost objective which has
4allocated to it both direct and indirect costs and, in the
5non-federal entity's accumulation system, is one of the final
6accumulation points, such as a particular award, internal
7project, or other direct activity of a non-federal entity.
8    "Financial assistance" means the following:
9        (1) For grants and cooperative agreements, "financial
10    assistance" means assistance that non-federal entities
11    receive or administer in the form of:
12            (A) grants;
13            (B) cooperative agreements;
14            (C) non-cash contributions or donations of
15        property, including donated surplus property;
16            (D) direct appropriations;
17            (E) food commodities; and
18            (F) other financial assistance, except assistance
19        listed in paragraph (2) of this definition.
20        (2) "Financial assistance" includes assistance that
21    non-federal entities receive or administer in the form of
22    loans, loan guarantees, interest subsidies, and insurance.
23        (3) "Financial assistance" does not include amounts
24    received as reimbursement for services rendered to
25    individuals.
26    "Fixed amount awards" means a type of grant agreement

 

 

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1under which the awarding agency or pass-through entity
2provides a specific level of support without regard to actual
3costs incurred under the award. "Fixed amount awards" reduce
4some of the administrative burden and record-keeping
5requirements for both the non-federal entity and awarding
6agency or pass-through entity. Accountability is based
7primarily on performance and results.
8    "Foreign public entity" means:
9        (1) a foreign government or foreign governmental
10    entity;
11        (2) a public international organization that is
12    entitled to enjoy privileges, exemptions, and immunities
13    as an international organization under the International
14    Organizations Immunities Act (22 U.S.C. 288-288f);
15        (3) an entity owned, in whole or in part, or
16    controlled by a foreign government; or
17        (4) any other entity consisting wholly or partially of
18    one or more foreign governments or foreign governmental
19    entities.
20    "Foreign organization" means an entity that is:
21        (1) a public or private organization located in a
22    country other than the United States and its territories
23    that are subject to the laws of the country in which it is
24    located, irrespective of the citizenship of project staff
25    or place of performance;
26        (2) a private nongovernmental organization located in

 

 

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1    a country other than the United States that solicits and
2    receives cash contributions from the general public;
3        (3) a charitable organization located in a country
4    other than the United States that is not-for-profit
5    nonprofit and tax exempt under the laws of its country of
6    domicile and operation, but is not a university, college,
7    accredited degree-granting institution of education,
8    private foundation, hospital, organization engaged
9    exclusively in research or scientific activities, church,
10    synagogue, mosque, or other similar entity organized
11    primarily for religious purposes; or
12        (4) an organization located in a country other than
13    the United States not recognized as a Foreign Public
14    Entity.
15    "Fringe benefits" has the meaning given to that term in
16CFR 200.431.
17    "Generally Accepted Accounting Principles" has the meaning
18provided in accounting standards issued by the Government
19Accounting Standards Board and the Financial Accounting
20Standards Board.
21    "Generally Accepted Government Auditing Standards" means
22generally accepted government auditing standards issued by the
23Comptroller General of the United States that are applicable
24to financial audits.
25    "Grant agreement" means a legal instrument of financial
26assistance between an awarding agency or pass-through entity

 

 

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1and a non-federal entity that:
2        (1) is used to enter into a relationship, the
3    principal purpose of which is to transfer anything of
4    value from the awarding agency or pass-through entity to
5    the non-federal entity to carry out a public purpose
6    authorized by law and not to acquire property or services
7    for the awarding agency or pass-through entity's direct
8    benefit or use; and
9        (2) is distinguished from a cooperative agreement in
10    that it does not provide for substantial involvement
11    between the awarding agency or pass-through entity and the
12    non-federal entity in carrying out the activity
13    contemplated by the award.
14    "Grant agreement" does not include an agreement that
15provides only direct cash assistance to an individual, a
16subsidy, a loan, a loan guarantee, or insurance.
17    "Grant application" means a specified form that is
18completed by a non-federal entity in connection with a request
19for a specific funding opportunity or a request for financial
20support of a project or activity.
21    "Hospital" means a facility licensed as a hospital under
22the law of any state or a facility operated as a hospital by
23the United States, a state, or a subdivision of a state.
24    "Illinois Debarred and Suspended List" means the list
25maintained by the Governor's Office of Management and Budget
26that contains the names of those individuals and entities that

 

 

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1are ineligible, either temporarily or permanently, from
2receiving an award of grant funds from the State.
3    "Indirect cost" means those costs incurred for a common or
4joint purpose benefitting more than one cost objective and not
5readily assignable to the cost objectives specifically
6benefitted without effort disproportionate to the results
7achieved.
8    "Inspector General" means the Office of the Executive
9Inspector General for Executive branch agencies.
10    "Loan" means a State or federal loan or loan guarantee
11received or administered by a non-federal entity. "Loan" does
12not include a "program income" as defined in 2 CFR 200.80.
13    "Loan guarantee" means any State or federal government
14guarantee, insurance, or other pledge with respect to the
15payment of all or a part of the principal or interest on any
16debt obligation of a non-federal borrower to a non-federal
17lender, but does not include the insurance of deposits,
18shares, or other withdrawable accounts in financial
19institutions.
20    "Local government" has the meaning provided for the term
21"units of local government" under Section 1 of Article VII of
22the Illinois Constitution and includes school districts.
23    "Major program" means a federal program determined by the
24auditor to be a major program in accordance with 2 CFR 200.518
25or a program identified as a major program by a federal
26awarding agency or pass-through entity in accordance with 2

 

 

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1CFR 200.503(e).
2    "Non-federal entity" means a state, local government,
3Indian tribe, institution of higher education, or
4organization, whether nonprofit or for-profit, that carries
5out a State or federal award as a recipient or subrecipient.
6    "Nonprofit organization" means any corporation, trust,
7association, cooperative, or other organization, not including
8institutions of higher education, that:
9        (1) is operated primarily for scientific, educational,
10    service, charitable, or similar purposes in the public
11    interest;
12        (2) is not organized primarily for profit; and
13        (3) uses net proceeds to maintain, improve, or expand
14    the operations of the organization.
15    "Not-for-profit corporation" has the meaning given to that
16term in Section 101.80 of the General Not For Profit
17Corporation Act of 1986.
18    "Obligations", when used in connection with a non-federal
19entity's utilization of funds under an award, means orders
20placed for property and services, contracts and subawards
21made, and similar transactions during a given period that
22require payment by the non-federal entity during the same or a
23future period.
24    "Office of Management and Budget" means the Office of
25Management and Budget of the Executive Office of the
26President.

 

 

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1    "Other clusters" has the meaning provided by the federal
2Office of Management and Budget in the compliance supplement
3or has the meaning as it is designated by a state for federal
4awards the state provides to its subrecipients that meet the
5definition of a cluster of programs. When designating an
6"other cluster", a state must identify the federal awards
7included in the cluster and advise the subrecipients of
8compliance requirements applicable to the cluster.
9    "Oversight agency for audit" means the federal awarding
10agency that provides the predominant amount of funding
11directly to a non-federal entity not assigned a cognizant
12agency for audit. When there is no direct funding, the
13awarding agency that is the predominant source of pass-through
14funding must assume the oversight responsibilities. The duties
15of the oversight agency for audit and the process for any
16reassignments are described in 2 CFR 200.513(b).
17    "Pass-through entity" means a non-federal entity that
18provides a subaward to a subrecipient to carry out part of a
19program.
20    "Private award" means an award from a person or entity
21other than a State or federal entity. Private awards are not
22subject to the provisions of this Act.
23    "Property" means real property or personal property.
24    "Project cost" means total allowable costs incurred under
25an award and all required cost sharing and voluntary committed
26cost sharing, including third-party contributions.

 

 

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1    "Public institutions of higher education" has the meaning
2provided in Section 1 of the Board of Higher Education Act.
3    "Unique entity ID" means the number established and
4assigned by the federal government utilizing the SAM.gov
5website to uniquely identify entities that apply to receive
6and report on a federal award.
7    "Recipient" means a non-federal entity that receives an
8award directly from an awarding agency to carry out an
9activity under a program. "Recipient" does not include
10subrecipients.
11    "Research and Development" means all research activities,
12both basic and applied, and all development activities that
13are performed by non-federal entities.
14    "Single Audit Act" means the federal Single Audit Act
15Amendments of 1996 (31 U.S.C. 7501-7507).
16    "State agency" means an Executive branch agency. For
17purposes of this Act, "State agency" does not include public
18institutions of higher education.
19    "State award" means the financial assistance that a
20non-federal entity receives from the State and that is funded
21with either State funds or federal funds; in the latter case,
22the State is acting as a pass-through entity.
23    "State awarding agency" means a State agency that provides
24an award to a non-federal entity.
25    "State grant-making agency" has the same meaning as "State
26awarding agency".

 

 

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1    "State interest" means the acquisition or improvement of
2real property, equipment, or supplies under a State award, the
3dollar amount that is the product of the State share of the
4total project costs and current fair market value of the
5property, improvements, or both, to the extent the costs of
6acquiring or improving the property were included as project
7costs.
8    "State program" means any of the following:
9        (1) All State awards which are assigned a single
10    number in the Catalog of State Financial Assistance.
11        (2) When no Catalog of State Financial Assistance
12    number is assigned, all State awards to non-federal
13    entities from the same agency made for the same purpose
14    are considered one program.
15        (3) A cluster of programs as defined in this Section.
16    "State share" means the portion of the total project costs
17that are paid by State funds.
18    "Stop payment order" means a communication from a State
19grant-making agency to the Office of the Comptroller,
20following procedures set out by the Office of the Comptroller,
21causing the cessation of payments to a recipient or
22subrecipient as a result of the recipient's or subrecipient's
23failure to comply with one or more terms of the grant or
24subaward.
25    "Stop payment procedure" means the procedure created by
26the Office of the Comptroller which effects a stop payment

 

 

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1order and the lifting of a stop payment order upon the request
2of the State grant-making agency.
3    "Student Financial Aid" means federal awards under those
4programs of general student assistance, such as those
5authorized by Title IV of the Higher Education Act of 1965, as
6amended (20 U.S.C. 1070-1099d), that are administered by the
7United States Department of Education and similar programs
8provided by other federal agencies. "Student Financial Aid"
9does not include federal awards under programs that provide
10fellowships or similar federal awards to students on a
11competitive basis or for specified studies or research.
12    "Subaward" means a State or federal award provided by a
13pass-through entity to a subrecipient for the subrecipient to
14carry out part of a federal award received by the pass-through
15entity. "Subaward" does not include payments to a contractor
16or payments to an individual that is a beneficiary of a federal
17program. A "subaward" may be provided through any form of
18legal agreement, including an agreement that the pass-through
19entity considers a contract.
20    "Subrecipient" means a non-federal entity that receives a
21State or federal subaward from a pass-through entity to carry
22out part of a federal program. "Subrecipient" does not include
23an individual that is a beneficiary of such program. A
24"subrecipient" may also be a recipient of other State or
25federal awards directly from a State or federal awarding
26agency.

 

 

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1    "Suspension" means a post-award action by the State or
2federal agency or pass-through entity that temporarily
3withdraws the State or federal agency's or pass-through
4entity's financial assistance sponsorship under an award,
5pending corrective action by the recipient or subrecipient or
6pending a decision to terminate the award.
7    "Uniform Administrative Requirements, Costs Principles,
8and Audit Requirements for Federal Awards" means those rules
9applicable to grants contained in 2 CFR 200.
10    "Voluntary committed cost sharing" means cost sharing
11specifically pledged on a voluntary basis in the proposal's
12budget or the award on the part of the non-federal entity and
13that becomes a binding requirement of the award.
14(Source: P.A. 100-997, eff. 8-20-18.)
 
15    (30 ILCS 708/25)
16    Sec. 25. Supplemental rules. On or before July 1, 2017,
17the Governor's Office of Management and Budget, with the
18advice and technical assistance of the Illinois Single Audit
19Commission, shall adopt supplemental rules pertaining to the
20following:
21        (1) Criteria to define mandatory formula-based grants
22    and discretionary grants.
23        (2) The award of one-year grants for new applicants.
24        (3) The award of competitive grants in 3-year terms
25    (one-year initial terms with the option to renew for up to

 

 

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1    2 additional years) to coincide with the federal award.
2        (4) The issuance of grants, including:
3            (A) public notice of announcements of funding
4        opportunities;
5            (B) the development of uniform grant applications;
6            (C) State agency review of merit of proposals and
7        risk posed by applicants;
8            (D) specific conditions for individual recipients
9        (including the use of a fiscal agent and additional
10        corrective conditions);
11            (E) certifications and representations;
12            (F) pre-award costs;
13            (G) performance measures and statewide prioritized
14        goals under Section 50-25 of the State Budget Law of
15        the Civil Administrative Code of Illinois, commonly
16        referred to as "Budgeting for Results"; and
17            (H) for mandatory formula grants, the merit of the
18        proposal and the risk posed should result in
19        additional reporting, monitoring, or measures such as
20        reimbursement-basis only.
21        (5) The development of uniform budget requirements,
22    which shall include:
23            (A) mandatory submission of budgets as part of the
24        grant application process;
25            (B) mandatory requirements regarding contents of
26        the budget including, at a minimum, common detail line

 

 

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1        items specified under guidelines issued by the
2        Governor's Office of Management and Budget;
3            (C) a requirement that the budget allow
4        flexibility to add lines describing costs that are
5        common for the services provided as outlined in the
6        grant application;
7            (D) a requirement that the budget include
8        information necessary for analyzing cost and
9        performance for use in Budgeting for Results; and
10            (E) caps on the amount of salaries that may be
11        charged to grants, which shall not be less than based
12        on the limitations imposed by federal agencies.
13        (6) The development of pre-qualification requirements
14    for applicants, including the fiscal condition of the
15    organization and the provision of the following
16    information:
17            (A) organization name;
18            (B) Federal Employee Identification Number;
19            (C) unique entity ID Data Universal Numbering
20        System (DUNS) number;
21            (D) fiscal condition;
22            (E) whether the applicant is in good standing with
23        the Secretary of State;
24            (F) (blank); past performance in administering
25        grants;
26            (G) whether the applicant is on the Debarred and

 

 

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1        Suspended List maintained by the Governor's Office of
2        Management and Budget;
3            (H) whether the applicant is on the federal
4        Excluded Parties List; and
5            (I) whether the applicant is on the Sanctioned
6        Party List maintained by the Illinois Department of
7        Healthcare and Family Services.
8    Pre-qualification requirements may include consideration
9of past performance in administering grants if past
10performance failed to meet performance goals, indicators, and
11milestones.
12    Nothing in this Act affects the provisions of the Fiscal
13Control and Internal Auditing Act nor the requirement that the
14management of each State agency is responsible for maintaining
15effective internal controls under that Act.
16    For public institutions of higher education, the
17provisions of this Section apply only to awards funded by
18federal pass-through awards from a State agency to public
19institutions of higher education.
20(Source: P.A. 101-81, eff. 7-12-19; 102-626, eff. 8-27-21.)
 
21    (30 ILCS 708/30)
22    Sec. 30. Catalog of State Financial Assistance. The
23Catalog of State Financial Assistance is a single,
24authoritative, statewide, comprehensive source document of
25State financial assistance program information. The Catalog

 

 

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1shall contain, at a minimum, the following information:
2        (1) An introductory section that contains Catalog
3    highlights, an explanation of how to use the Catalog, an
4    explanation of the Catalog and its contents, and suggested
5    grant proposal writing methods and grant application
6    procedures.
7        (2) A comprehensive indexing system that categorizes
8    programs by issuing agency, eligible applicant,
9    application deadlines, function, popular name, and subject
10    area.
11        (3) Comprehensive appendices showing State assistance
12    programs that require coordination through this Act and
13    regulatory, legislative, and Executive Order authority for
14    each program, commonly used abbreviations and acronyms,
15    agency regional and local office addresses, and sources of
16    additional information.
17        (4) A list of programs that have been added to or
18    deleted from the Catalog and the various program numbers
19    and title changes.
20        (5) Program number, title, and popular name, if
21    applicable.
22        (6) The name of the State department or agency or
23    independent agency and primary organization sub-unit
24    administering the program.
25        (7) The enabling legislation, including popular name
26    of the Act, titles and Sections, Public Act number, and

 

 

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1    citation to the Illinois Compiled Statutes.
2        (8) The type or types of financial and nonfinancial
3    assistance offered by the program.
4        (9) Uses and restrictions placed upon the program.
5        (10) Eligibility requirements, including applicant
6    eligibility criteria, beneficiary eligibility criteria,
7    and required credentials and documentation.
8        (11) Objectives and goals of the program.
9        (12) Information regarding application and award
10    processing; application deadlines; range of approval or
11    disapproval time; appeal procedure; and availability of a
12    renewal or extension of assistance.
13        (13) Assistance considerations, including an
14    explanation of the award formula, matching requirements,
15    and the length and time phasing of the assistance.
16        (14) Post-assistance requirements, including any
17    reports, audits, and records that may be required.
18        (15) Program accomplishments (where available)
19    describing quantitative measures of program performance.
20        (16) Regulations, guidelines, and literature
21    containing citations to the Illinois Administrative Code,
22    the Code of Federal Regulations, and other pertinent
23    informational materials.
24        (17) The names, telephone numbers, and e-mail
25    addresses of persons to be contacted for detailed program
26    information at the headquarters, regional, and local

 

 

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1    levels.
2        (18) Criteria for Prompt Payment Act eligibility and
3    advanced payment eligibility.
4(Source: P.A. 98-706, eff. 7-16-14.)
 
5    (30 ILCS 708/50)
6    Sec. 50. State grant-making agency responsibilities.
7    (a) The specific requirements and responsibilities of
8State grant-making agencies and non-federal entities are set
9forth in this Act. State agencies making State awards to
10non-federal entities must adopt by rule the language in 2 CFR
11200, Subpart C through Subpart F unless different provisions
12are required by law.
13    (b) Each State grant-making agency shall appoint a Chief
14Accountability Officer who shall serve as a liaison to the
15Grant Accountability and Transparency Unit and who shall be
16responsible for the State agency's implementation of and
17compliance with the rules.
18    (c) In order to effectively measure the performance of its
19recipients and subrecipients, each State grant-making agency
20shall:
21        (1) require its recipients and subrecipients to relate
22    financial data to performance accomplishments of the award
23    and, when applicable, must require recipients and
24    subrecipients to provide cost information to demonstrate
25    cost-effective practices. The recipient's and

 

 

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1    subrecipient's performance should be measured in a way
2    that will help the State agency to improve program
3    outcomes, share lessons learned, and spread the adoption
4    of promising practices; and
5        (2) provide recipients and subrecipients with clear
6    performance goals, indicators, and milestones and must
7    establish performance reporting frequency and content to
8    not only allow the State agency to understand the
9    recipient's progress, but also to facilitate
10    identification of promising practices among recipients and
11    subrecipients and build the evidence upon which the State
12    agency's program and performance decisions are made. The
13    frequency of reports on performance goals, indicators, and
14    milestones required under this Section shall not be more
15    frequent than quarterly. Nothing in this Section is
16    intended to prohibit more frequent reporting to assess
17    items such as service needs, gaps, or capacity.
18    (c-5) Each State grant-making agency shall, when it is in
19the best interests of the State, request that the Office of the
20Comptroller issue a stop payment order in accordance with
21Section 105 of this Act.
22    (c-6) Upon notification by the Grant Transparency and
23Accountability Unit that a stop payment order has been
24requested by a State grant-making agency, each State
25grant-making agency who has issued a grant to that recipient
26or subrecipient shall determine if it remains in the best

 

 

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1interests of the State to continue to issue payments to the
2recipient or subrecipient.
3    (d) The Governor's Office of Management and Budget shall
4provide such advice and technical assistance to the State
5grant-making agencies as is necessary or indicated in order to
6ensure compliance with this Act. Advice and technical
7assistance to State grant-making agencies shall include:
8        (1) training for State agency staff about the criteria
9    for Prompt Payment Act eligibility and advanced payment
10    eligibility;
11        (2) best practices for disseminating information about
12    grant opportunities statewide, with an emphasis on
13    reaching previously underserved communities and new
14    vendors, and
15        (3) the Court of Claims' jurisdiction and process
16    under the Court of Claims Act.
17    (e) In accordance with this Act and the Illinois State
18Collection Act of 1986, refunds required under the Grant Funds
19Recovery Act may be referred to the Comptroller's offset
20system.
21(Source: P.A. 100-997, eff. 8-20-18.)
 
22    (30 ILCS 708/65)
23    Sec. 65. Audit requirements.
24    (a) The standards set forth in Subpart F of 2 CFR 200 and
25any other standards that apply directly to State or federal

 

 

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1agencies shall apply to audits of fiscal years beginning on or
2after December 26, 2014.
3    (b) Books and records must be available for review or
4audit by appropriate officials of the pass-through entity, and
5the agency, the Auditor General, the Inspector General,
6appropriate officials of the agency, and the federal
7Government Accountability Office.
8    (c) The Governor's Office of Management and Budget, with
9the advice and technical assistance of the Illinois Single
10Audit Commission, shall adopt rules for audits of grants from
11a State or federal pass-through entity that are not subject to
12the Single Audit Act because the amount of the federal award is
13less than the amount specified in subparts (a) and (b) of 2 CFR
14200.501 $750,000 or the subrecipient is an exempt entity and
15that are reasonably consistent with 2 CFR 200.
16    (d) This Act does not affect the provisions of the
17Illinois State Auditing Act and does not address the external
18audit function of the Auditor General.
19(Source: P.A. 98-706, eff. 7-16-14.)
 
20    (30 ILCS 708/97)  (was 30 ILCS 708/520)
21    Sec. 97. Separate accounts for State grant funds.
22Notwithstanding any provision of law to the contrary, all
23grants for which advance payments are made and any grant
24agreement entered into, renewed, or extended on or after
25August 20, 2018 (the effective date of Public Act 100-997)

 

 

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1that permits advanced payments, between a State grant-making
2agency and a not-for-profit nonprofit organization, shall
3require the not-for-profit nonprofit organization receiving
4grant funds to maintain those funds in an account which is
5separate and distinct from any account holding non-grant
6funds. Except as otherwise provided in an agreement between a
7State grant-making agency and a nonprofit organization, the
8grant funds held in a separate account by a nonprofit
9organization shall not be used for non-grant-related
10activities, and any unused grant funds shall be returned to
11the State grant-making agency. This Section does not apply to
12grant payments that are made as reimbursements.
13(Source: P.A. 100-997, eff. 8-20-18; 101-81, eff. 7-12-19.)
 
14    (30 ILCS 708/125)
15    Sec. 125. Expenditures prior to grant execution; reporting
16requirements.
17    (a) In the event that a recipient or subrecipient incurs
18expenses related to the grant award prior to the execution of
19the grant agreement but within the term of the grant, and the
20grant agreement is executed more than 30 days after the
21effective date of the grant, the recipient or subrecipient
22must submit to the State grant-making agency a report that
23accounts for eligible grant expenditures and project
24activities from the effective date of the grant up to and
25including the date of execution of the grant agreement. If the

 

 

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1State grant-making agency does not issue the grant agreement
2to the recipient within 30 days of the effective date of the
3grant, interest penalties shall apply pursuant to Section 3-4
4of the State Prompt Payment Act.
5    (b) The recipient or subrecipient must submit the report
6to the State grant-making agency within 30 days of execution
7of the grant agreement.
8    (c) Only those expenses that are reasonable, allowable,
9and in furtherance of the purpose of the grant award shall be
10reimbursed.
11    (d) The State grant-making agency must approve the report
12prior to issuing any payment to the recipient or subrecipient.
13(Source: P.A. 100-997, eff. 8-20-18.)
 
14    (30 ILCS 708/135 new)
15    Sec. 135. Grant Agreement specifications.
16    (a) A grant agreement shall include:
17        (1) the dates on which the State grant-making agency
18    will transmit vouchers to the Comptroller; and
19        (2) whether the grant is eligible under the Prompt
20    Payment Act or for advanced payments.
21    (b) A State agency shall not restrict the amount of money
22used to pay for fringe benefits.
23    (c) A State agency shall not restrict indirect costs to
24less than 20% of the grant agreement or the federally
25negotiated rate, whichever is higher, unless the recipient

 

 

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1prefers a lower rate.
2    (d) A State agency shall not restrict direct
3administrative costs to less than 20% of direct costs in the
4grant agreement unless the recipient prefers a lower rate.
5    (e) Nothing in this Section shall apply to grants that are
6solely for the purpose of capital projects.
7    (f) Nothing in this Section shall apply if the grant
8conflicts with requirements due to federal law or federal
9grant obligations.
 
10    Section 25. The Court of Claims Act is amended by changing
11Sections 4, 6, 8, 9, 11, 19, 21, 22, 23, and 24 as follows:
 
12    (705 ILCS 505/4)  (from Ch. 37, par. 439.4)
13    Sec. 4. Each judge shall receive an annual salary of:
14$68,000 $20,900 from the third Monday in January, 1979 to the
15third Monday in January, 1980; $22,100 from the third Monday
16in January, 1980 to the third Monday in January, 1981; $23,400
17from the third Monday in January, 1981 to the third Monday in
18January, 1982, and $25,000 thereafter, or as set by the
19Compensation Review Board, whichever is greater, payable in
20equal monthly installments.
21(Source: P.A. 83-1177.)
 
22    (705 ILCS 505/6)  (from Ch. 37, par. 439.6)
23    Sec. 6. The court shall hold sessions at such places as it

 

 

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1deems necessary to expedite the business of the court. The
2Court shall permit virtual hearings for claims arising from
3paragraph (b) of Section 8 of this Act.
4(Source: P.A. 90-492, eff. 8-17-97.)
 
5    (705 ILCS 505/8)  (from Ch. 37, par. 439.8)
6    Sec. 8. Court of Claims jurisdiction; deliberation
7periods. The court shall have exclusive jurisdiction to hear
8and determine the following matters:
9        (a) All claims against the State founded upon any law
10    of the State of Illinois or upon any regulation adopted
11    thereunder by an executive or administrative officer or
12    agency; provided, however, the court shall not have
13    jurisdiction (i) to hear or determine claims arising under
14    the Workers' Compensation Act or the Workers' Occupational
15    Diseases Act, or claims for expenses in civil litigation,
16    or (ii) to review administrative decisions for which a
17    statute provides that review shall be in the circuit or
18    appellate court.
19        (b) All claims against the State founded upon any
20    contract entered into with the State of Illinois, except
21    that undisputed individual claims of less than $2,500
22    resulting from lapsed appropriations do not fall under the
23    jurisdiction of Court of Claims. State agencies may pay
24    undisputed individual claims of less than $2,500 resulting
25    from lapsed appropriations from current fiscal year

 

 

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1    appropriations.
2        (c) All claims against the State for time unjustly
3    served in prisons of this State when the person imprisoned
4    received a pardon from the Governor stating that such
5    pardon is issued on the ground of innocence of the crime
6    for which he or she was imprisoned or he or she received a
7    certificate of innocence from the Circuit Court as
8    provided in Section 2-702 of the Code of Civil Procedure;
9    provided, the amount of the award is at the discretion of
10    the court; and provided, the court shall make no award in
11    excess of the following amounts: for imprisonment of 5
12    years or less, not more than $85,350; for imprisonment of
13    14 years or less but over 5 years, not more than $170,000;
14    for imprisonment of over 14 years, not more than $199,150;
15    and provided further, the court shall fix attorney's fees
16    not to exceed 25% of the award granted. On or after the
17    effective date of this amendatory Act of the 95th General
18    Assembly, the court shall annually adjust the maximum
19    awards authorized by this subsection (c) to reflect the
20    increase, if any, in the Consumer Price Index For All
21    Urban Consumers for the previous calendar year, as
22    determined by the United States Department of Labor,
23    except that no annual increment may exceed 5%. For the
24    annual adjustments, if the Consumer Price Index decreases
25    during a calendar year, there shall be no adjustment for
26    that calendar year. The transmission by the Prisoner

 

 

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1    Review Board or the clerk of the circuit court of the
2    information described in Section 11(b) to the clerk of the
3    Court of Claims is conclusive evidence of the validity of
4    the claim. The changes made by this amendatory Act of the
5    95th General Assembly apply to all claims pending on or
6    filed on or after the effective date.
7        (d) All claims against the State for damages in cases
8    sounding in tort, if a like cause of action would lie
9    against a private person or corporation in a civil suit,
10    and all like claims sounding in tort against the Medical
11    Center Commission, the Board of Trustees of the University
12    of Illinois, the Board of Trustees of Southern Illinois
13    University, the Board of Trustees of Chicago State
14    University, the Board of Trustees of Eastern Illinois
15    University, the Board of Trustees of Governors State
16    University, the Board of Trustees of Illinois State
17    University, the Board of Trustees of Northeastern Illinois
18    University, the Board of Trustees of Northern Illinois
19    University, the Board of Trustees of Western Illinois
20    University, or the Board of Trustees of the Illinois
21    Mathematics and Science Academy; provided, that an award
22    for damages in a case sounding in tort, other than certain
23    cases involving the operation of a State vehicle described
24    in this paragraph, shall not exceed the sum of $2,000,000
25    to or for the benefit of any claimant. The $2,000,000
26    limit prescribed by this Section does not apply to an

 

 

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1    award of damages in any case sounding in tort arising out
2    of the operation by a State employee of a vehicle owned,
3    leased or controlled by the State. The defense that the
4    State or the Medical Center Commission or the Board of
5    Trustees of the University of Illinois, the Board of
6    Trustees of Southern Illinois University, the Board of
7    Trustees of Chicago State University, the Board of
8    Trustees of Eastern Illinois University, the Board of
9    Trustees of Governors State University, the Board of
10    Trustees of Illinois State University, the Board of
11    Trustees of Northeastern Illinois University, the Board of
12    Trustees of Northern Illinois University, the Board of
13    Trustees of Western Illinois University, or the Board of
14    Trustees of the Illinois Mathematics and Science Academy
15    is not liable for the negligence of its officers, agents,
16    and employees in the course of their employment is not
17    applicable to the hearing and determination of such
18    claims. The changes to this Section made by this
19    amendatory Act of the 100th General Assembly apply only to
20    claims filed on or after July 1, 2015.
21        The court shall annually adjust the maximum awards
22    authorized by this subsection to reflect the increase, if
23    any, in the Consumer Price Index For All Urban Consumers
24    for the previous calendar year, as determined by the
25    United States Department of Labor. The Comptroller shall
26    make the new amount resulting from each annual adjustment

 

 

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1    available to the public via the Comptroller's official
2    website by January 31 of every year.
3        (e) All claims for recoupment made by the State of
4    Illinois against any claimant.
5        (f) All claims pursuant to the Line of Duty
6    Compensation Act. A claim under that Act must be heard and
7    determined within one year after the application for that
8    claim is filed with the Court as provided in that Act.
9        (g) All claims filed pursuant to the Crime Victims
10    Compensation Act.
11        (h) All claims pursuant to the Illinois National
12    Guardsman's Compensation Act. A claim under that Act must
13    be heard and determined within one year after the
14    application for that claim is filed with the Court as
15    provided in that Act.
16        (i) All claims authorized by subsection (a) of Section
17    10-55 of the Illinois Administrative Procedure Act for the
18    expenses incurred by a party in a contested case on the
19    administrative level.
20(Source: P.A. 100-1124, eff. 11-27-18.)
 
21    (705 ILCS 505/9)  (from Ch. 37, par. 439.9)
22    Sec. 9. Court powers and duties. The court may:
23    (a) The court may establish A. Establish rules for its
24government and for the regulation of practice therein; appoint
25commissioners to assist the court in such manner as it directs

 

 

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1and discharge them at will; and exercise such powers as are
2necessary to carry into effect the powers granted in this
3Section. Any Commissioner appointed shall be an attorney
4licensed to practice law in the State of Illinois. The rules
5established hereunder shall not be waived, and any extension
6of time authorized by such rules shall only be allowed on
7motion duly filed within the time limitation for which the
8extension is requested.
9    (b) The court may issue B. Issue subpoenas through the
10Chief Justice or one of its judges or commissioners to require
11the attendance of witnesses for the purpose of testifying
12before it, or before any judge of the court, or before any
13notary public, or any of its commissioners, and to require the
14production of any books, records, papers or documents that may
15be material or relevant as evidence in any matter pending
16before it. In case any person refuses to comply with any
17subpoena issued in the name of the chief justice, or one of the
18judges or commissioners, attested by the clerk, with the seal
19of the court attached, and served upon the person named
20therein as a summons in a civil action is served, the circuit
21court of the proper county, on application of the party at
22whose instance the subpoena was issued, shall compel obedience
23by attachment proceedings, as for contempt, as in a case of a
24disobedience of the requirements of a subpoena from such court
25on a refusal to testify therein.
26    (c) The court shall create an online portal that allows

 

 

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1vendors to submit claims electronically under subsection (b)
2of Section 8 of this Act, and to view and track the status of
3their claim.
4(Source: P.A. 83-865.)
 
5    (705 ILCS 505/11)  (from Ch. 37, par. 439.11)
6    Sec. 11. Filing claims.
7    (a) Except as otherwise provided in subsection (b) of this
8Section and subsection (4) of Section 24, the claimant shall
9in all cases set forth fully in his petition the claim, the
10action thereon, if any, on behalf of the State, what persons
11are owners or trustees as defined under Section 3 of the
12Charitable Trust Act thereof or interested therein, when and
13upon what consideration such persons became so interested;
14that no assignment or transfer of the claim or any part thereof
15or interest therein has been made, except as stated in the
16petition; that the claimant is justly entitled to the amount
17therein claimed from the State of Illinois, after allowing all
18just credits; and that claimant believes the facts stated in
19the petition to be true. The petition shall be verified, as to
20statements of facts, by the affidavit of the claimant, his
21agent, or attorney.
22    (b) Whenever a person has served a term of imprisonment
23and has received a pardon by the Governor stating that such
24pardon was issued on the ground of innocence of the crime for
25which he or she was imprisoned, the Prisoner Review Board

 

 

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1shall transmit this information to the clerk of the Court of
2Claims, together with the claimant's current address. Whenever
3a person has served a term of imprisonment and has received a
4certificate of innocence from the Circuit Court as provided in
5Section 2-702 of the Code of Civil Procedure, the clerk of the
6issuing Circuit Court shall transmit this information to the
7clerk of the Court of Claims, together with the claimant's
8current address. The clerk of the Court of Claims shall
9immediately docket the case for consideration by the Court of
10Claims, and shall provide notice to the claimant of such
11docketing together with all hearing dates and applicable
12deadlines. The Court of Claims shall hear the case and render a
13decision within 90 days after its docketing.
14(Source: P.A. 95-970, eff. 9-22-08; 96-328, eff. 8-11-09.)
 
15    (705 ILCS 505/19)  (from Ch. 37, par. 439.19)
16    Sec. 19. The Attorney General, or his assistants under his
17direction, shall appear for the defense and protection of the
18interests of the State of Illinois in all cases filed in the
19court, and may make claim for recoupment by the State.
20    For all claims arising under paragraph (b) of Section 8 of
21this Act:
22        (1) the Attorney General must electronically confirm
23    receipt of the Claim to the claimant and contact the State
24    agency within 5 days of receiving the claim from the Court
25    to confirm or reject the veracity of the claim.

 

 

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1        (2) the State agency must confirm or reject the
2    veracity of the claim with the Attorney General's office
3    within 30 days of being contacted by the Attorney General.
4        (3) The Attorney General must electronically notify
5    the claimant of the State agency's decision and file a
6    stipulation or motion with the Court within 30 days of the
7    State agency confirming or rejecting the claim.
8(Source: Laws 1945, p. 660.)
 
9    (705 ILCS 505/21)  (from Ch. 37, par. 439.21)
10    Sec. 21. The court is authorized to impose, by uniform
11rules, a fee of $15 for the filing of a petition in any case in
12which the award sought is more than $500 $50 and less than
13$10,000 $1,000 and $35 in any case in which the award sought is
14$10,000 $1,000 or more; and to charge and collect for copies of
15opinions or other documents filed in the Court of Claims such
16fees as may be prescribed by the rules of the Court. All fees
17and charges so collected shall be forthwith paid into the
18State Treasury. For claims arising from paragraph (b) of
19Section 8 of this Act, when the Court rules in favor of the
20vendor, the filing fee shall be refunded to the claimant.
21    A petitioner who is a prisoner in an Illinois Department
22of Corrections facility who files a pleading, motion, or other
23filing that purports to be a legal document against the State,
24the Illinois Department of Corrections, the Prisoner Review
25Board, or any of their officers or employees in which the court

 

 

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1makes a specific finding that it is frivolous shall pay all
2filing fees and court costs in the manner provided in Article
3XXII of the Code of Civil Procedure.
4    In claims based upon lapsed appropriations or lost warrant
5or in claims filed under the Line of Duty Compensation Act, the
6Illinois National Guardsman's Compensation Act, or the Crime
7Victims Compensation Act or in claims filed by medical vendors
8for medical services rendered by the claimant to persons
9eligible for Medical Assistance under programs administered by
10the Department of Healthcare and Family Services, no filing
11fee shall be required.
12(Source: P.A. 95-331, eff. 8-21-07.)
 
13    (705 ILCS 505/22)  (from Ch. 37, par. 439.22)
14    Sec. 22. Every claim cognizable by the court and not
15otherwise sooner barred by law shall be forever barred from
16prosecution therein unless it is filed with the clerk of the
17court within the time set forth as follows:
18        (a) All claims arising out of a contract must be filed
19    within 5 years after it first accrues, saving to minors,
20    and persons under legal disability at the time the claim
21    accrues, in which cases the claim must be filed within 5
22    years from the time the disability ceases.
23        (b) All claims cognizable against the State by vendors
24    of goods or services under the Illinois Public Aid Code
25    must be filed within one year after the accrual of the

 

 

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1    cause of action, as provided in Section 11-13 of that
2    Code.
3        (c) All claims arising under paragraph (c) of Section
4    8 of this Act must be automatically heard by the court
5    within 120 days after the person asserting such claim is
6    either issued a certificate of innocence from the circuit
7    court as provided in Section 2-702 of the Code of Civil
8    Procedure, or is granted a pardon by the Governor,
9    whichever occurs later, without the person asserting the
10    claim being required to file a petition under Section 11
11    of this Act, except as otherwise provided by the Crime
12    Victims Compensation Act. Any claims filed by the claimant
13    under paragraph (c) of Section 8 of this Act must be filed
14    within 2 years after the person asserting such claim is
15    either issued a certificate of innocence as provided in
16    Section 2-702 of the Code of Civil Procedure, or is
17    granted a pardon by the Governor, whichever occurs later.
18        (d) All claims arising under paragraph (f) of Section
19    8 of this Act must be filed within the time set forth in
20    Section 3 of the Line of Duty Compensation Act.
21        (e) All claims arising under paragraph (h) of Section
22    8 of this Act must be filed within one year of the date of
23    the death of the guardsman or militiaman as provided in
24    Section 3 of the Illinois National Guardsman's
25    Compensation Act.
26        (f) All claims arising under paragraph (g) of Section

 

 

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1    8 of this Act must be filed within one year of the crime on
2    which a claim is based as provided in Section 6.1 of the
3    Crime Victims Compensation Act.
4        (g) All claims arising from the Comptroller's refusal
5    to issue a replacement warrant pursuant to Section 10.10
6    of the State Comptroller Act must be filed within 5 years
7    after the date of the Comptroller's refusal.
8        (h) All other claims must be filed within 2 years
9    after it first accrues, saving to minors, and persons
10    under legal disability at the time the claim accrues, in
11    which case the claim must be filed within 2 years from the
12    time the disability ceases.
13        (i) The changes made by Public Act 86-458 apply to all
14    warrants issued within the 5-year period preceding August
15    31, 1989 (the effective date of Public Act 86-458). The
16    changes made to this Section by Public Act 100-1124 apply
17    to claims pending on November 27, 2018 (the effective date
18    of Public Act 100-1124) and to claims filed thereafter.
19        (j) All time limitations established under this Act
20    and the rules promulgated under this Act shall be binding
21    and jurisdictional, except upon extension authorized by
22    law or rule and granted pursuant to a motion timely filed.
23    (k) The Court must electronically confirm receipt of claim
24to the vendor within 30 days for all claims arising under
25paragraph (b) of Section 8 of this Act.
26        (1) The State agency must electronically confirm or

 

 

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1    reject all claims arising under paragraph (b) of Section 8
2    of this Act within 30 days of being contacted by the
3    Attorney General. If the state agency does not confirm or
4    reject a claim within 30 days, the State agency forfeits
5    the right to reject or contest the claim.
6        (2) The Comptroller must issue payment to vendors
7    within 30 days of the Court entering an award for claims
8    arising under paragraph (b) of Section 8 of this Act,
9    subject to available appropriation.
10(Source: P.A. 102-558, eff. 8-20-21; 102-813, eff. 5-13-22.)
 
11    (705 ILCS 505/23)  (from Ch. 37, par. 439.23)
12    Sec. 23. Notwithstanding the exceptions for lapsed
13appropriations as stipulated by 705 ILCS 505/8(b), it It is
14the policy of the General Assembly to make no appropriation to
15pay any claim against the State, cognizable by the court,
16unless an award therefor has been made by the court.
17(Source: Laws 1945, p. 660.)
 
18    (705 ILCS 505/24)  (from Ch. 37, par. 439.24)
19    Sec. 24. Payment of awards.
20    (1) From funds appropriated by the General Assembly for
21the purposes of this Section the Court may direct immediate
22payment of:
23        (a) All claims arising solely as a result of the
24    lapsing of an appropriation out of which the obligation

 

 

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1    could have been paid.
2        (b) All claims pursuant to the Line of Duty
3    Compensation Act.
4        (c) All claims pursuant to the "Illinois National
5    Guardsman's and Naval Militiaman's Compensation Act",
6    approved August 12, 1971, as amended.
7        (d) All claims pursuant to the "Crime Victims
8    Compensation Act", approved August 23, 1973, as amended.
9        (d-5) All claims against the State for unjust
10    imprisonment as provided in subsection (c) of Section 8 of
11    this Act.
12        (e) All other claims wherein the amount of the award
13    of the Court is less than $50,000.
14    (2) The court may, from funds specifically appropriated
15from the General Revenue Fund for this purpose, direct the
16payment of awards less than $100,000 $50,000 solely as a
17result of the lapsing of an appropriation originally made from
18any fund held by the State Treasurer. For any such award paid
19from the General Revenue Fund, the court shall thereafter seek
20an appropriation from the fund from which the liability
21originally accrued in reimbursement of the General Revenue
22Fund. For awards that are less than $2,500, the relevant State
23agency may pay from current year appropriations.
24    (3) In directing payment of a claim pursuant to the Line of
25Duty Compensation Act, the Court must direct the Comptroller
26to add an interest penalty if payment of a claim is not made

 

 

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1within 6 months after a claim is filed in accordance with
2Section 3 of the Line of Duty Compensation Act and all
3information has been submitted as required under Section 4 of
4the Line of Duty Compensation Act. If payment is not issued
5within the 6-month period, an interest penalty of 1% of the
6amount of the award shall be added for each month or fraction
7thereof after the end of the 6-month period, until final
8payment is made. This interest penalty shall be added
9regardless of whether the payment is not issued within the
106-month period because of the appropriation process, the
11consideration of the matter by the Court, or any other reason.
12    (3.5) The interest penalty payment provided for in
13subsection (3) shall be added to all claims for which benefits
14were not paid as of the effective date of P.A. 95-928. The
15interest penalty shall be calculated starting from the
16effective date of P.A. 95-928, provided that the effective
17date of P.A. 95-928 is at least 6 months after the date on
18which the claim was filed in accordance with Section 3 of the
19Line of Duty Compensation Act. In the event that the date 6
20months after the date on which the claim was filed is later
21than the effective date of P.A. 95-928, the Court shall
22calculate the interest payment penalty starting from the date
236 months after the date on which the claim was filed in
24accordance with Section 3 of the Line of Duty Compensation
25Act. This subsection (3.5) of this amendatory Act of the 96th
26General Assembly is declarative of existing law.

 

 

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1    (3.6) In addition to the interest payments provided for in
2subsections (3) and (3.5), the Court shall direct the
3Comptroller to add a "catch-up" payment to the claims of
4eligible claimants. For the purposes of this subsection (3.6),
5an "eligible claimant" is a claimant whose claim is not paid in
6the year in which it was filed. For purposes of this subsection
7(3.6), "'catch-up' payment" is defined as the difference
8between the amount paid to claimants whose claims were filed
9in the year in which the eligible claimant's claim is paid and
10the amount paid to claimants whose claims were filed in the
11year in which the eligible claimant filed his or her claim. The
12"catch-up" payment is payable simultaneously with the claim
13award.
14    (4) From funds appropriated by the General Assembly for
15the purposes of paying claims under paragraph (c) of Section
168, the court must direct payment of each claim and the payment
17must be received by the claimant within 60 days after the date
18that the funds are appropriated for that purpose.
19(Source: P.A. 100-1124, eff. 11-27-18.)

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    15 ILCS 405/9from Ch. 15, par. 209
4    15 ILCS 405/9.03from Ch. 15, par. 209.03
5    30 ILCS 105/25from Ch. 127, par. 161
6    30 ILCS 540/1from Ch. 127, par. 132.401
7    30 ILCS 540/3-2
8    30 ILCS 540/3-3from Ch. 127, par. 132.403-3
9    30 ILCS 540/3-4
10    30 ILCS 540/3-5
11    30 ILCS 540/3-6
12    30 ILCS 540/5from Ch. 127, par. 132.405
13    30 ILCS 540/7from Ch. 127, par. 132.407
14    30 ILCS 708/15
15    30 ILCS 708/25
16    30 ILCS 708/30
17    30 ILCS 708/50
18    30 ILCS 708/65
19    30 ILCS 708/97was 30 ILCS 708/520
20    30 ILCS 708/125
21    30 ILCS 708/135 new
22    705 ILCS 505/4from Ch. 37, par. 439.4
23    705 ILCS 505/6from Ch. 37, par. 439.6
24    705 ILCS 505/8from Ch. 37, par. 439.8
25    705 ILCS 505/9from Ch. 37, par. 439.9

 

 

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1    705 ILCS 505/11from Ch. 37, par. 439.11
2    705 ILCS 505/19from Ch. 37, par. 439.19
3    705 ILCS 505/21from Ch. 37, par. 439.21
4    705 ILCS 505/22from Ch. 37, par. 439.22
5    705 ILCS 505/23from Ch. 37, par. 439.23
6    705 ILCS 505/24from Ch. 37, par. 439.24