Illinois General Assembly - Bill Status for HB0581

Replaces everything after the enacting clause. Creates the Social Services Contract Notice Act. Provides that a grant agreement, service agreement, or contract between a State agency and an authorized service provider for the provision of social services may be terminated by either party to the agreement, contract, or grant for any or no reason upon 30 days' prior written notice to the other party. Provides that, unless the Illinois Grant Funds Recovery Act provides otherwise, a suspension or reduction in the estimated amount of the grant agreement, service agreement, or contract is subject to 30 days' prior written notice to the other party. Requires a written notice issued by a State agency to include the date upon which the authorized service provider must submit its final invoice to the State agency for payment for services rendered. Permits a State agency, upon written notice, to immediately terminate a grant agreement, service agreement, or contract for social services if the authorized service provider has made material misrepresentations or material omissions explicitly prohibited under the designated agreement or contract. Permits an authorized service provider, upon written notice, to immediately terminate or suspend a grant, contract, or agreement if the State agency owes the provider funds under the grant agreement, service agreement, or contract that are over 90 days past due. Provides that these provisions concerning the termination of the contract or agreement (i) do not affect the parties' ability to immediately terminate a grant agreement, service agreement, or contract for breach of contract and (ii) apply to agreements or contracts executed on or after the effective date of the Act. Requires a State agency to notify the Governor, the Speaker of the House of Representatives, the Minority Leader of the House of Representatives, the President of the Senate, and the Minority Leader of the Senate in writing of its intent to suspend, terminate, or reduce the amount of a grant agreement, service agreement, or contract for a particular social services program due to the failure of appropriation or a reduction in the amount of available funds to support the program. Provides that such notice shall be provided no less than 120 days before the State agency suspends, terminates, or reduces the grant agreement, service agreement, or contract and must include the level of appropriations required to prevent the suspension, termination, or reduction. Provides that the provisions concerning notifications apply to agreements and contracts entered before, on, or after the effective date of the Act and that the requirements of the Act may not be waived by agreement. Provides that the failure of a State agency to submit notice to the General Assembly as required shall not prevent termination of a contract or agreement entered into prior to the effective date of the Act. Defines terms. Effective immediately.

Recommends: (i) changing the definitions of "social services" and "State agency"; (ii) providing that "any suspension or reduction in the estimated amount of the grant agreement, service agreement, or contract, due to the failure of an appropriation or a reduction in the amount of available funds to support the program, shall be subject to 30 days' prior written notice to the other party" (rather than "any suspension or reduction in the estimated amount of the grant agreement, service agreement, or contract shall be subject to 30 days' prior written notice to the other party"); (iii) adding a provision that a State agency may, upon written notice, immediately terminate a grant agreement, service agreement, or contract for social services as provided under the Grant Accountability and Transparency Act; (iv) providing that if a State agency that provides social services through a grant awarded to or service agreement or contract with an authorized service provider intends to suspend, terminate, or reduce the amount of a grant agreement, service agreement, or contract for a particular social services program due to the failure of appropriation or a reduction in the amount of available funds to support the program, the State agency shall provide notice no less than 30 (rather than 120) days before the State agency suspends, terminates, or reduces the grant agreement; and (v) providing that the notice provisions apply to "agreements and contracts entered on or after the effective date of this Act" (rather than "agreements and contracts entered before, on, or after the effective date of this Act").

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