Illinois General Assembly - Full Text of HB0002
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Full Text of HB0002  98th General Assembly


Rep. Patricia R. Bellock

Filed: 4/12/2013





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2    AMENDMENT NO. ______. Amend House Bill 2, AS AMENDED, by
3replacing everything after the enacting clause with the
5    "Section 5. The Illinois Grant Funds Recovery Act is
6amended by adding Section 15 as follows:
7    (30 ILCS 705/15 new)
8    Sec. 15. Illinois Single Audit Commission.
9    (a) There is created the Illinois Single Audit Commission.
10The Commission shall conduct research regarding the practices
11of the federal government in the administration of grants and
12create a report summarizing the Commission's recommendations
13regarding the adoption of uniform standards for the
14administration of grants in this State.
15    (b) The Commission shall be comprised of one representative
16from each of the following grant-making Departments who is an



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1expert in grant subject matter, and who shall be appointed by
2the Governor, one of whom shall be designated as Chairperson:
3        (1) Department on Aging;
4        (2) Department of Children and Family Services;
5        (3) Department of Healthcare and Family Services;
6        (4) Department of Human Services;
7        (5) Department of Public Health;
8        (6) Criminal Justice Information Authority;
9        (7) Department of Commerce and Economic Opportunity;
10        (8) Department of Transportation;
11        (9) Illinois State Board of Education;
12        (10) Illinois Student Assistance Commission;
13        (11)Department of Agriculture;
14        (12) Environmental Protection Agency; and
15        (13) Department of Natural Resources.
16    In addition, a total of 4 representatives of community
17organizations, providers, or associations may be appointed by
18the Departments listed in subsection (b) as follows: 1 member
19may be appointed by the Departments listed in subparagraphs (1)
20through (6); 1 member may be appointed by the Departments
21listed in subparagraphs (7) and (8); 1 member may be appointed
22by the Departments listed in subparagraphs (9) and (10); and 1
23member may be appointed by the Departments listed in
24subparagraphs (11) through (13).
25    Should any of the Departments listed in subparagraphs (1)
26through (13) of subsection (b) deem that additional



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1representation by community organizations, providers, or
2associations is necessary, and the Commission as a whole is in
3concurrence with this decision, the Department or Departments
4may appoint additional members, provided, however, that no more
5than a total of 4 such additional members may be appointed to
6the Commission.
7    The Governor may designate representatives of additional
8Departments with grant-making authority to serve as members of
9the Commission.
10    (c) The Commission shall also include: a representative of
11the Governor's Office of Management and Budget, appointed by
12the Governor; four members of the General Assembly, one from
13the House Democratic Caucus, one from the House Republican
14Caucus, one from the Senate Democratic Caucus, and one from the
15one from the Senate Republican Caucus, all of which shall be
16appointed by the Governor; the Co-Chairs of the relevant
17subcommittees within the Management Initiative Improvement
18Committee (provided for under Section 1-37a of the Department
19of Human Services Act) may be included as members of the
20Commission if the Commission deems their inclusion necessary
21for the coordination of its efforts.
22    (d) The recommendations in the Commission's report shall
23focus primarily on developing a coordinated, non-redundant
24process for the provision of effective and efficient oversight
25of the selection and monitoring of grant recipients, ensuring
26quality programs, and limiting fraud, waste, and abuse. The



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1report shall define the purpose, scope, applicability, and
2responsibilities in the life cycle of a grant, including the
3period before a grant is awarded, the period when a grant is
4awarded, and the period after a grant is awarded, as set forth
5in subsections (e) through (g) of this Section. To the extent
6feasible, the Commission's report shall include necessary
7statutory and rule changes required to implement any proposed
9    (e) The report shall examine and make recommendations for
10the following with regard to a grant before it is awarded:
11        (1) criteria to define mandatory formula-based grants
12    and discretionary grants;
13        (2) whether three-year discretionary grants should
14    exist in a competitive grant environment;
15        (3) the development of uniform grant applications;
16        (4) the development of uniform budget requirements;
17        (5) the development of pre-qualification requirements
18    of applicants, including the fiscal condition of the
19    organization;
20        (6) the development of minimum requirements of
21    applicant staff to manage and execute grant awards for
22    programmatic and administrative purposes;
23        (7) the development of criteria for requiring the
24    retention of a fiscal agent and for becoming a fiscal
25    agent; and
26        (8) the development of disclosure requirements



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1    pertaining to related party status between grantees and
2    grant-making agencies.
3    (f) The report shall examine and make recommendations for
4the following with regard to a grant at the time it is awarded:
5        (1) the development of uniform grant agreements;
6        (2) the development of uniform reporting requirements,
7    including budget-to-actual quarterly reports;
8        (3) the implementation of uniform monitoring,
9    including on-site fiscal and administrative control
10    reviews on a risk-based approach to determine the required
11    frequency of monitoring;
12        (4) the development of payment methods, including
13    advance and reconcile, capital advances, and
14    reimbursement;
15        (5) the development of administrative requirements;
16        (6) the development of allowable cost principles;
17        (7) the development of a conditional exemption
18    process;
19        (8) the development of standardized audit
20    requirements;
21        (9) the development of program performance reporting
22    and budgeting for results;
23        (10) the development of record retention and access
24    requirements; and
25        (11) the development of grant termination and
26    enforcement procedures.



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1    (g) The report shall examine and make recommendations for
2the following with regard to a grant after it has been awarded:
3        (1) the development of standardized closeout
4    procedures;
5        (2) the development of standardized audit
6    requirements;
7        (3) the development of subsequent grant adjustments
8    and continuing responsibilities;
9        (4) the development of a uniform method of grant
10    recovery; and
11        (5) the development of an appeals process.
12    (h) The report shall be filed with the General Assembly by
13January 1, 2014.
14    (i) Definitions. As used in this Section:
15        "Departments" means the agencies, boards, and
16    commissions listed in subparagraph (b) of this Section,
17    including any additional Departments designated by the
18    Governor.
19        "Grant" means an award of financial assistance, the
20    principal purpose of which is to transfer a thing of value
21    from a federal or state agency to a recipient to carry out
22    a public purpose of support or stimulation authorized by a
23    law of the United States or the State of Illinois. A grant
24    is distinguished from a contract, which is used to acquire
25    property or services for the federal or State government's
26    direct benefit or use as defined in Section 210 of Subpart



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1    B of federal Office of Management Board Circular A-133.
2    Notwithstanding subparagraph (b) of Section 2 of this Act,
3    fee-for-service purchase of care agreements are grants for
4    purposes of this Section.
5        Technical terms used in subsections (e) through (g)
6    shall have the same meanings as provided for by their usage
7    or definition in federal Office of Management Board
8    Circular A-110.
9    (j) The Commission shall operate with no direct costs to
10the State. The Office of the Governor shall coordinate with the
11Departments listed under subsection (b) to provide
12administrative support for the Commission.
13    (k) This Section is repealed on April 1, 2014.
14    Section 99. Effective date. This Act takes effect upon
15becoming law.".