HB3820eng 98TH GENERAL ASSEMBLY

  
  
  

 


 
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1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the Grant
5Accountability and Transparency Act.
 
6    Section 5. Legislative intent.
7    (a) This Act, which is the product of the work of the
8Illinois Single Audit Commission, created by Public Act 98-47,
9is intended to comply with the General Assembly's directives to
10(1) develop a coordinated, non-redundant process for the
11provision of effective and efficient oversight of the selection
12and monitoring of grant recipients, thereby ensuring quality
13programs and limiting fraud, waste, and abuse, and (2) define
14the purpose, scope, applicability, and responsibilities in the
15life cycle of a grant.
16    (b) This Act is intended to increase the accountability and
17transparency in the use of grant funds from whatever source and
18to reduce administrative burdens on both State agencies and
19grantees by adopting federal guidance and regulations
20applicable to such grant funds; specifically, the Uniform
21Administrative Requirements, Cost Principles, and Audit
22Requirements for Federal Awards ("Uniform Guidance"), codified
23at 2 CFR 200.

 

 

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1    (c) This Act is consistent with the State's focus on
2improving performance and outcomes while ensuring transparency
3and the financial integrity of taxpayer dollars through such
4initiatives as the Management Improvement Initiative Committee
5created by Section 1-37a of the Department of Human Services
6Act, the State prioritized goals created under Section 50-25 of
7the State Budget Law (also known as "Budgeting for Results"),
8and the Grant Information Collection Act.
9    (d) This Act is not intended to affect the provisions of
10the Illinois State Auditing Act and does not address the
11external audit function of the Auditor General.
 
12    Section 10. Purpose. The purpose of this Act is to
13establish uniform administrative requirements, cost
14principles, and audit requirements for State and federal
15pass-through awards to non-federal entities. State awarding
16agencies shall not impose additional or inconsistent
17requirements, except as provided in 2 CFR 200.102 or as
18directed by the Governor's Office of Management and Budget,
19unless specifically required by State or federal statute or
20Executive Order.
21    This Act and the rules adopted under this Act provide the
22basis for a systematic and periodic collection and uniform
23submission to the Governor's Office of Management and Budget of
24information of all State and federal financial assistance
25programs by State grant-making agencies. This Act also

 

 

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1establishes policies related to the delivery of this
2information to the public, including through the use of
3electronic media.
 
4    Section 15. Definitions. As used in this Act:
5    "Allowable cost" means a cost allowable to a project if:
6        (1) the costs are reasonable and necessary for the
7    performance of the award;
8        (2) the costs are allocable to the specific project;
9        (3) the costs are treated consistently in like
10    circumstances to both federally-financed and other
11    activities of the non-federal entity;
12        (4) the costs conform to any limitations of the cost
13    principles or the sponsored agreement;
14        (5) the costs are accorded consistent treatment; a cost
15    may not be assigned to a State or federal award as a direct
16    cost if any other cost incurred for the same purpose in
17    like circumstances has been allocated to the award as an
18    indirect cost;
19        (6) the costs are determined to be in accordance with
20    generally accepted accounting principles;
21        (7) the costs are not included as a cost or used to
22    meet cost-sharing or matching requirements of any other
23    program in either the current or prior period; and
24        (8) the costs are adequately documented.
25    "Auditee" means any non-federal entity that expends State

 

 

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

 

 

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1database that helps the federal government track all programs
2it has domestically funded.
3    "Catalog of Federal Domestic Assistance number" or "CFDA
4number" means the number assigned to a federal program in the
5CFDA.
6    "Catalog of State Financial Assistance" means the single,
7authoritative, statewide, comprehensive source document of
8State financial assistance program information.
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 CFR
22200.513(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 it

 

 

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1a 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 authorized
11    by law, but is not used to acquire property or services for
12    the awarding agency's or pass-through entity's direct
13    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 a
18federal 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 CFDA.
16        (2) When no CFDA number is assigned, all federal awards
17    to non-federal entities from the same agency made for the
18    same purpose should be combined and considered one program.
19        (3) Notwithstanding paragraphs (1) and (2) of this
20    definition, a cluster of programs. The types of clusters of
21    programs are:
22            (A) research and development;
23            (B) student financial aid; and
24            (C) "other clusters", as described in the
25        definition of "cluster of programs".
26    "Federal share" means the portion of the total project

 

 

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

 

 

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

 

 

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

 

 

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1    entity to carry out a public purpose authorized by law and
2    not to acquire property or services for the awarding agency
3    or pass-through entity's direct benefit or use; and
4        (2) is distinguished from a cooperative agreement in
5    that it does not provide for substantial involvement
6    between the awarding agency or pass-through entity and the
7    non-federal entity in carrying out the activity
8    contemplated by the award.
9    "Grant agreement" does not include an agreement that
10provides only direct cash assistance to an individual, a
11subsidy, a loan, a loan guarantee, or insurance.
12    "Grant application" means a specified form that is
13completed by a non-federal entity in connection with a request
14for a specific funding opportunity or a request for financial
15support of a project or activity.
16    "Hospital" means a facility licensed as a hospital under
17the law of any state or a facility operated as a hospital by
18the United States, a state, or a subdivision of a state.
19    "Illinois Debarred and Suspended List" means the list
20maintained by the Governor's Office of Management and Budget
21that contains the names of those individuals and entities that
22are ineligible, either temporarily or permanently, from
23receiving an award of grant funds from the State.
24    "Indian tribe" (or "federally recognized Indian tribe")
25means any Indian tribe, band, nation, or other organized group
26or community, including any Alaska Native village or regional

 

 

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1or village corporation as defined in or established pursuant to
2the federal Alaska Native Claims Settlement Act (43 U.S.C.
31601, et seq.) that is recognized as eligible for the special
4programs and services provided by the United States to Indians
5because of their status as Indians under 25 U.S.C. 450b(e), as
6set forth in the annually published Bureau of Indian Affairs
7list of Indian Entities Recognized and Eligible to Receive
8Services.
9    "Indirect cost" means those costs incurred for a common or
10joint purpose benefitting more than one cost objective and not
11readily assignable to the cost objectives specifically
12benefitted without effort disproportionate to the results
13achieved.
14    "Inspector General" means the Office of the Executive
15Inspector General for Executive branch agencies.
16    "Institutions of Higher Education" has the meaning
17provided under 20 U.S.C. 1001.
18    "Loan" means a State or federal loan or loan guarantee
19received or administered by a non-federal entity. "Loan" does
20not include a "program income" as defined in 2 CFR 200.80.
21    "Loan guarantee" means any State or federal government
22guarantee, insurance, or other pledge with respect to the
23payment of all or a part of the principal or interest on any
24debt obligation of a non-federal borrower to a non-federal
25lender, but does not include the insurance of deposits, shares,
26or other withdrawable accounts in financial institutions.

 

 

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1    "Local government" has the meaning provided for the term
2"units of local government" under Section 1 of Article VII of
3the Illinois Constitution and includes school districts.
4    "Major program" means a federal program determined by the
5auditor to be a major program in accordance with 2 CFR 200.518
6or a program identified as a major program by a federal
7awarding agency or pass-through entity in accordance with 2 CFR
8200.503(e).
9    "Non-federal entity" means a state, local government,
10Indian tribe, institution of higher education, or
11organization, whether nonprofit or for-profit, that carries
12out a State or federal award as a recipient or subrecipient.
13    "Nonprofit organization" means any corporation, trust,
14association, cooperative, or other organization, not including
15institutions of higher education, that:
16        (1) is operated primarily for scientific, educational,
17    service, charitable, or similar purposes in the public
18    interest;
19        (2) is not organized primarily for profit; and
20        (3) uses net proceeds to maintain, improve, or expand
21    the operations of the organization.
22    "Obligations", when used in connection with a non-federal
23entity's utilization of funds under an award, means orders
24placed for property and services, contracts and subawards made,
25and similar transactions during a given period that require
26payment by the non-federal entity during the same or a future

 

 

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1period.
2    "Office of Management and Budget" means the Office of
3Management and Budget of the Executive Office of the President.
4    "Other clusters" has the meaning provided by the federal
5Office of Management and Budget in the compliance supplement or
6has the meaning as it is designated by a state for federal
7awards the state provides to its subrecipients that meet the
8definition of a cluster of programs. When designating an "other
9cluster", a state must identify the federal awards included in
10the cluster and advise the subrecipients of compliance
11requirements applicable to the cluster.
12    "Oversight agency for audit" means the federal awarding
13agency that provides the predominant amount of funding directly
14to a non-federal entity not assigned a cognizant agency for
15audit. When there is no direct funding, the awarding agency
16that is the predominant source of pass-through funding must
17assume the oversight responsibilities. The duties of the
18oversight agency for audit and the process for any
19reassignments are described in 2 CFR 200.513(b).
20    "Pass-through entity" means a non-federal entity that
21provides a subaward to a subrecipient to carry out part of a
22program.
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    "Recipient" means a non-federal entity that receives an
2award directly from an awarding agency to carry out an activity
3under a program. "Recipient" does not include subrecipients.
4    "Research and Development" means all research activities,
5both basic and applied, and all development activities that are
6performed by non-federal entities.
7    "Single Audit Act" means the federal Single Audit Act
8Amendments of 1996 (31 U.S.C. 7501-7507).
9    "State agency" means an Executive branch agency.
10    "State award" means the financial assistance that a
11non-federal entity receives from the State and that is funded
12with either State funds or federal funds; in the latter case,
13the State is acting as a pass-through entity.
14    "State awarding agency" means a State agency that provides
15an award to a non-federal entity.
16    "State grant-making agency" has the same meaning as "State
17awarding agency".
18    "State interest" means the acquisition or improvement of
19real property, equipment, or supplies under a State award, the
20dollar amount that is the product of the State share of the
21total project costs and current fair market value of the
22property, improvements, or both, to the extent the costs of
23acquiring or improving the property were included as project
24costs.
25    "State program" means any of the following:
26        (1) All State awards which are assigned a single number

 

 

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1    in the Catalog of State Financial Assistance.
2        (2) When no Catalog of State Financial Assistance
3    number is assigned, all State awards to non-federal
4    entities from the same agency made for the same purpose are
5    considered one program.
6        (3) A cluster of programs as defined in this Section.
7    "State share" means the portion of the total project costs
8that are paid by State funds.
9    "Student Financial Aid" means federal awards under those
10programs of general student assistance, such as those
11authorized by Title IV of the Higher Education Act of 1965, as
12amended (20 U.S.C. 1070-1099d), that are administered by the
13United States Department of Education and similar programs
14provided by other federal agencies. "Student Financial Aid"
15does not include federal awards under programs that provide
16fellowships or similar federal awards to students on a
17competitive basis or for specified studies or research.
18    "Subaward" means an award provided by a pass-through entity
19to a subrecipient for the subrecipient to carry out part of a
20federal award received by the pass-through entity. "Subaward"
21does not include payments to a contractor or payments to an
22individual that is a beneficiary of a federal program. A
23"subaward" may be provided through any form of legal agreement,
24including an agreement that the pass-through entity considers a
25contract.
26    "Subrecipient" means a non-federal entity that receives a

 

 

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1subaward from a pass-through entity to carry out part of a
2federal program. "Subrecipient" does not include an individual
3that is a beneficiary of such program. A "subrecipient" may
4also be a recipient of other federal awards directly from a
5federal awarding agency.
6    "Suspension" means a post-award action by the State or
7federal agency or pass-through entity that temporarily
8withdraws the State or federal agency's or pass-through
9entity's financial assistance sponsorship under an award,
10pending corrective action by the recipient or subrecipient or
11pending a decision to terminate the award.
12    "Uniform Administrative Requirements, Costs Principles,
13and Audit Requirements for Federal Awards" means those rules
14applicable to grants contained in 2 CFR 200.
15    "Voluntary committed cost sharing" means cost sharing
16specifically pledged on a voluntary basis in the proposal's
17budget or the award on the part of the non-federal entity and
18that becomes a binding requirement of the award.
 
19    Section 20. Adoption of federal rules applicable to grants.
20    (a) On or before July 1, 2015, the Governor's Office of
21Management and Budget shall by rule adopt the Uniform Guidance
22at 2 CFR 200 and apply those rules to all State and federal
23awards on and after July 1, 2015. The rules shall include the
24following:
25        (1) Administrative requirements. In accordance with

 

 

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1    Subparts B through D of 2 CFR 200, the Governor's Office of
2    Management and Budget shall by rule set forth the uniform
3    administrative requirements for grant and cooperative
4    agreements, including the requirements for the management
5    by State awarding agencies of federal grant programs before
6    State and federal pass-through awards have been made and
7    requirements that State awarding agencies may impose on
8    non-federal entities in State and federal pass-through
9    awards.
10        (2) Cost principles. In accordance with Subpart E of 2
11    CFR 200, the Governor's Office of Management and Budget
12    shall by rule establish principles for determining the
13    allowable costs incurred by non-federal entities under
14    State and federal pass-through awards. The principles are
15    intended for cost determination, but are not intended to
16    identify the circumstances or dictate the extent of State
17    or federal pass-through participation in financing a
18    particular program or project. The principles shall
19    provide that State and federal awards bear their fair share
20    of cost recognized under these principles, except where
21    restricted or prohibited by State or federal law.
22        (3) Audit and single audit requirements and audit
23    follow-up. In accordance with Subpart F of 2 CFR 200 and
24    the federal Single Audit Act Amendments of 1996, the
25    Governor's Office of Management and Budget shall by rule
26    set forth standards to obtain consistency and uniformity

 

 

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1    among State and federal pass-through awarding agencies for
2    the audit of non-federal entities expending State and
3    federal awards. These provisions shall also set forth the
4    policies and procedures for State and federal pass-through
5    entities when using the results of these audits.
6        The provisions of this item (3) do not apply to
7    for-profit subrecipients because for-profit subrecipients
8    are not subject to the requirements of OMB Circular A-133,
9    Audits of States, Local and Non-Profit Organizations.
10    Audits of for-profit subrecipients must be conducted
11    pursuant to a Program Audit Guide issued by the Federal
12    awarding agency. If a Program Audit Guide is not available,
13    the State awarding agency must prepare a Program Audit
14    Guide in accordance with the OMB Circular A-133 Compliance
15    Supplement. For-profit entities are subject to all other
16    general administrative requirements and cost principles
17    applicable to grants.
18    (b) This Act addresses only State and federal pass-through
19auditing functions and does not address the external audit
20function of the Auditor General.
21    (c) The State grant-making agency is responsible for
22establishing requirements, as necessary, to ensure compliance
23by for-profit subrecipients subject to approval by the
24Governor's Office of Management and Budget. The agreement with
25the for-profit subrecipient shall describe the applicable
26compliance requirements and the for-profit subrecipient's

 

 

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1compliance responsibility. Methods to ensure compliance for
2State and federal pass-through awards made to for-profit
3subrecipients shall include pre-award, audits, monitoring
4during the agreement, and post-award audits.
 
5    Section 25. Conflicts of interest. The Governor's Office of
6Management and Budget shall adopt rules regarding conflict of
7interest policies for awards. A non-federal entity must
8disclose in writing any potential conflict of interest to the
9Governor's Office of Management and Budget or the pass-through
10entity in accordance with applicable awarding agency policy.
 
11    Section 30. Mandatory disclosures. The Governor's Office
12of Management and Budget shall by rule require that the
13applicant for an award disclose, in a timely manner and in
14writing to the pass-through entity, all violations of State or
15federal criminal law involving fraud, bribery, or gratuity
16violations potentially affecting the award. Failure to make the
17required disclosures may result in any of the following
18remedies:
19        (1) The temporary withholding of cash payments pending
20    correction of the deficiency by the awarding agency or
21    non-federal entity or more severe enforcement action by the
22    pass-through entity.
23        (2) Disallowance of (that is, denial of both use of
24    funds and any applicable matching credit for) all or part

 

 

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1    of the cost of the activity or action not in compliance.
2        (3) Whole or partial suspension or termination of the
3    award.
4        (4) Initiation of suspension or debarment proceedings
5    as authorized under rules adopted by the Governor's Office
6    of Management and Budget under subsection (a) of Section 20
7    of this Act and awarding agency regulations (or, in the
8    case of a pass-through entity, recommendation that such a
9    proceeding be initiated by the awarding agency).
10        (5) Withholding further awards for the project or
11    program.
12        (6) Taking other remedies that may be legally
13    available.
 
14    Section 35. Supplemental rules. On or before December 31,
152015, the Governor's Office of Management and Budget shall
16adopt supplemental rules pertaining to the following:
17        (1) Criteria to define mandatory formula-based grants
18    and discretionary grants.
19        (2) The award of one-year grants for new applicants.
20        (3) The award of competitive grants in 3-year terms
21    (one-year initial terms with the option to renew for up to
22    2 additional years) to coincide with the federal award.
23        (4) The issuance of grants, including:
24            (A) public notice of announcements of funding
25        opportunities;

 

 

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1            (B) the development of uniform grant applications;
2            (C) state agency review of merit of proposals and
3        risk posed by applicants;
4            (D) specific conditions for individual recipients
5        (requiring the use of a fiscal agent and additional
6        corrective conditions);
7            (E) certifications and representations;
8            (F) pre-award costs;
9            (G) performance measures and Budgeting for Results
10        requirements; and
11            (H) for mandatory formula grants, the merit of the
12        proposal and the risk posed should result in additional
13        reporting, monitoring, or measures such as
14        reimbursement-basis only.
15        (5) The development of uniform budget requirements,
16    which shall include:
17            (A) mandatory submission of budgets as part of the
18        grant application process;
19            (B) mandatory requirements regarding contents of
20        the budget including, at a minimum, common detail line
21        items specified under guidelines issued by the
22        Governor's Office of Management and Budget;
23            (C) a requirement that the budget allow
24        flexibility to add lines describing costs that are
25        common for the services provided as outlined in the
26        grant application;

 

 

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1            (D) a requirement that the budget include
2        information necessary for analyzing cost and
3        performance for use in the Budgeting for Results
4        initiative; and
5            (E) caps on the amount of salaries that may be
6        charged to grants based on the limitations imposed by
7        Federal agencies.
8        (6) The development of pre-qualification requirements
9    for applicants, including the fiscal condition of the
10    organization and the provision of the following
11    information:
12            (A) organization name;
13            (B) Federal Employee Identification Number;
14            (C) Data Universal Numbering System (DUNS) number;
15            (D) fiscal condition;
16            (E) whether the applicant is in good standing with
17        the Secretary of State;
18            (F) past performance in administering grants;
19            (G) whether the applicant is or has ever been on
20        the Debarred and Suspended List maintained by the
21        Governor's Office of Management and Budget;
22            (H) whether the applicant is or has ever been on
23        the Federal Excluded Parties List; and
24            (I) whether the applicant is or has ever been on
25        the Sanctioned Party List maintained by the Illinois
26        Department of Healthcare and Family Services.

 

 

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1    Nothing in this Act affects the provisions of the Fiscal
2Control and Internal Auditing Act nor the requirement that the
3management of each State agency is responsible for maintaining
4effective internal controls under that Act.
 
5    Section 40. Applicability.
6    (a) The requirements established under this Act apply to
7State grant-making agencies that make State and federal
8pass-through awards to non-federal entities. These
9requirements apply to all costs related to State and federal
10pass-through awards.
11    (b) The terms and conditions of State, federal, and
12pass-through awards apply to subawards and subrecipients
13unless a particular Section of this Act or the terms and
14conditions of the State or federal award specifically indicate
15otherwise. Non-federal entities shall comply with requirements
16of this Act regardless of whether the non-federal entity is a
17recipient or subrecipient of a State or federal pass-through
18award. Pass-through entities shall comply with the
19requirements set forth under the Governor's Office of
20Management and Budget rules adopted under subsection (a) of
21Section 20 of this Act, but not to any requirements in this Act
22directed towards State or federal awarding agencies, unless the
23requirements of the State or federal awards indicate otherwise.
24    When a non-federal entity is awarded a cost-reimbursement
25contract, only 2 CFR 200.330 through 200.332 are incorporated

 

 

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1by reference into the contract. However, when the Cost
2Accounting Standards are applicable to the contract, they take
3precedence over the requirements of this Act unless they are in
4conflict with Subpart F of 2 CFR 200. In addition, costs that
5are made unallowable under 10 U.S.C. 2324(e) and 41 U.S.C.
64304(a), as described in the Federal Acquisition Regulations,
7subpart 31.2 and subpart 31.603, are always unallowable. For
8requirements other than those covered in Subpart D of 2 CFR
9200.330 through 200.332, the terms of the contract and the
10Federal Acquisition Regulations apply.
11    With the exception of Subpart F of 2 CFR 200, which is
12required by the Single Audit Act, in any circumstances where
13the provisions of federal statutes or regulations differ from
14the provisions of this Act, the provision of the federal
15statutes or regulations govern. This includes, for agreements
16with Indian tribes, the provisions of the Indian
17Self-Determination and Education and Assistance Act, as
18amended, 25 U.S.C. 450-458ddd-2.
19    (c) State grant-making agencies may apply subparts A
20through E of 2 CFR 200 to for-profit entities, foreign public
21entities, or foreign organizations, except where the awarding
22agency determines that the application of these subparts would
23be inconsistent with the international obligations of the
24United States or the statute or regulations of a foreign
25government.
26    (d) Except for 2 CFR 200.202 and 200.330 through 200.332,

 

 

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1the requirements in Subparts C, D, and E of 2 CFR 200 do not
2apply to the following programs:
3        (1) The block grant awards authorized by the Omnibus
4    Budget Reconciliation Act of 1981 (including Community
5    Services; Preventive Health and Health Services; Alcohol,
6    Drug Abuse, and Mental Health Services; Maternal and Child
7    Health Services; Social Services; Low-Income Home Energy
8    Assistance; States' Program of Community Development Block
9    Grant Awards for Small Cities; and Elementary and Secondary
10    Education, other than programs administered by the
11    Secretary of Education under Title V, Subtitle D, Chapter
12    2, Section 583 - the Secretary's discretionary award
13    program) and both the Alcohol and Drug Abuse Treatment and
14    Rehabilitation Block Grant Award (42 U.S.C. 300x-21 to
15    300x-35 and 42 U.S.C. 300x-51 to 300x-64) and the Mental
16    Health Service for the Homeless Block Grant Award (42
17    U.S.C. 300x to 300x-9) under the Public Health Services
18    Act.
19        (2) Federal awards to local education agencies under 20
20    U.S.C. 7702 through 7703b (portions of the Impact Aid
21    program).
22        (3) Payments under the Department of Veterans Affairs'
23    State Home Per Diem Program (38 U.S.C. 1741).
24        (4) Federal awards authorized under the Child Care and
25    Development Block Grant Act of 1990, as amended, including
26    the following:

 

 

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1            (A) Child Care and Development Block Grant (42
2        U.S.C. 9858).
3            (B) Child Care Mandatory and Matching Funds of the
4        Child Care and Development Fund (42 U.S.C. 9858).
5    (e) Except for the 2 CFR 200.202 requirement to provide
6public notice of federal financial assistance programs, the
7guidance in Subpart C Pre-federal Award Requirements and
8Contents of Federal Awards does not apply to the following
9programs:
10        (1) Entitlement federal awards to carry out the
11    following programs of the Social Security Act:
12            (A) Temporary Assistance to Needy Families (Title
13        IV-A of the Social Security Act, 42 U.S.C. 601-619);
14            (B) Child Support Enforcement and Establishment of
15        Paternity (Title IV-D of the Social Security Act, 42
16        U.S.C. 651-669b);
17            (C) Foster Care and Adoption Assistance (Title
18        IV-E of the Act, 42 U.S.C. 670-679c);
19            (D) Aid to the Aged, Blind, and Disabled (Titles I,
20        X, XIV, and XVI - AABD of the Act, as amended); and
21            (E) Medical Assistance (Medicaid) (42 U.S.C.
22        1396-1396w-5), not including the State Medicaid Fraud
23        Control program authorized by Section 1903(a)(6)(B) of
24        the Social Security Act (42 U.S.C. 1396b(a)(6)(B)).
25        (2) A federal award for an experimental, pilot, or
26    demonstration project that is also supported by a federal

 

 

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1    award listed in paragraph (1) of subsection (e) of this
2    Section.
3        (3) Federal awards under subsection 412(e) of the
4    Immigration and Nationality Act of 1965 and Section 501(a)
5    of the Refugee Education Assistance Act of 1980 for cash
6    assistance, medical assistance, and supplemental security
7    income benefits to refugees and entrants and the
8    administrative costs of providing the assistance and
9    benefits under 8 U.S.C. 1522(e).
10        (4) Entitlement awards under the following programs of
11    The National School Lunch Act:
12            (A) National School Lunch Program (42 U.S.C.
13        1753);
14            (B) Commodity Assistance (42 U.S.C. 1755);
15            (C) Special Meal Assistance (42 U.S.C. 1759a);
16            (D) Summer Food Service Program for Children (42
17        U.S.C. 1761); and
18            (E) Child and Adult Care Food Program (42 U.S.C.
19        1766).
20        (5) Entitlement awards under the following programs of
21    The Child Nutrition Act of 1966:
22            (A) Special Milk Program (42 U.S.C. 1772);
23            (B) School Breakfast Program (42 U.S.C. 1773); and
24            (C) State Administrative Expenses (42 U.S.C.
25        Section 1776).
26        (6) Entitlement awards for State Administrative

 

 

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1    Expenses under The Food and Nutrition Act of 2008 (7 U.S.C.
2    2025).
3        (7) Non-discretionary federal awards under the
4    following non-entitlement programs:
5            (A) Special Supplemental Nutrition Program for
6        Women, Infants and Children under the Child Nutrition
7        Act of 1966 (42 U.S.C. 1786);
8            (B) The Emergency Food Assistance Programs
9        (Emergency Food Assistance Act of 1983) (7 U.S.C.
10        7501); and
11            (C) Commodity Supplemental Food Program (7 U.S.C.
12        Section 612c).
 
13    Section 45. State grant-making agency responsibilities.
14The specific requirements and responsibilities of State
15grant-making agencies and non-federal entities are set forth in
16this Act. State agencies making State awards to non-federal
17entities must adopt by rule the language in 2 CFR 200, Subpart
18C through Subpart F unless different provisions are required by
19law or are approved by the Governor's Office of Management and
20Budget.
 
21    Section 50. The Governor's Office of Management and Budget
22responsibilities.
23    (a) The Governor's Office of Management and Budget shall
24review State grant-making agency rules and the implementation

 

 

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1of this Act and shall provide interpretations of policy
2requirements and assistance to ensure effective and efficient
3implementation. Any exceptions shall be subject to approval by
4the Governor's Office of Management and Budget. The Governor's
5Office of Management and Budget shall adopt rules governing the
6criteria to be considered when an exception is requested.
7Exceptions shall only be made in particular cases where
8adequate justification is presented.
9    (b) On or before July 1, 2014, the Governor's Office of
10Management and Budget shall establish a centralized grants
11management unit within the Governor's Office of Management and
12Budget. The centralized division shall be funded with a portion
13of the administrative funds provided under existing and future
14State and federal grants.
 
15    Section 55. Responsibilities of centralized grants
16management unit. The centralized grants management unit within
17the Governor's Office of Management and Budget shall be
18responsible for:
19        (1) The development of minimum requirements applicable
20    to the staff of grant applicants to manage and execute
21    grant awards for programmatic and administrative purposes,
22    including grant management specialists with:
23            (A) general and technical competencies;
24            (B) programmatic expertise;
25            (C) fiscal expertise and systems necessary to

 

 

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1        adequately account for the source and application of
2        grant funds for each program; and
3            (D) knowledge of compliance requirements.
4        (2) The development of minimum training requirements,
5    including annual training requirements.
6        (3) Accurate, current, and complete disclosure of the
7    financial results of each funded award, as set forth in the
8    financial monitoring and reporting Section of 2 CFR 200.
9        (4) Development of criteria for requiring the
10    retention of a fiscal agent and for becoming a fiscal
11    agent.
12        (5) Development of disclosure requirements in the
13    grant application pertaining to:
14            (A) related-party status between grantees and
15        grant-making agencies;
16            (B) past employment of applicant officers and
17        grant managers;
18            (C) disclosure of current or past employment of
19        members of immediate family; and
20            (D) disclosure of senior management of grantee
21        organization and their relationships with contracted
22        vendors.
23        (6) Implementation of rules prohibiting a grantee from
24    charging any cost allocable to a particular award or cost
25    objective to other State or federal awards to overcome fund
26    deficiencies, to avoid restrictions imposed by law or terms

 

 

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1    of the federal awards, or for other reasons.
2        (7) Implementation of rules prohibiting a non-federal
3    entity from earning or keeping any profit resulting from
4    State or federal financial assistance, unless prior
5    approval has been obtained from the Governor's Office of
6    Management and Budget and is expressly authorized by the
7    terms and conditions of the award.
8        (8) Maintenance of an Illinois Debarred and Suspended
9    List that contains the names of those individuals and
10    entities that are ineligible, either temporarily or
11    permanently, to receive an award of grant funds from the
12    State.
 
13    Section 60. Audit requirements.
14    (a) The standards set forth in the Governor's Office of
15Management and Budget rules adopted in accordance with Subpart
16F of 2 CFR 200 and any other standards that apply directly to
17federal agencies shall apply to audits of fiscal years
18beginning on or after December 26, 2015.
19    (b) Books and records must be available for review or audit
20by appropriate officials of the pass-through entity, and the
21agency, the Auditor General, the Inspector General,
22appropriate officials of the agency, and the federal Government
23Accountability Office.
24    (c) The Governor's Office of Management and Budget shall
25adopt rules for audits of grants from a pass-through entity

 

 

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1that are not subject to the Single Audit Act because the amount
2of the federal award is less than $750,000 or the subrecipient
3is an exempt entity.
4    (d) This Act does not affect the provisions of the Illinois
5State Auditing Act and does not address the external audit
6function of the Auditor General.
 
7    Section 65. Review date. The Governor's Office of
8Management and Budget shall review this Act at least once every
95 years after December 26, 2014 in conjunction with the federal
10review of the Uniform Administrative Requirements, Cost
11Principles, and Audit Requirements for Federal Awards as
12required by 2 CFR 200.109 in order to determine whether any
13existing rules need to be revised or new rules adopted.
 
14    Section 70. Exceptions.
15    (a) With the exception of the audit requirements set forth
16in 2 CFR 200.102, the Governor's Office of Management and
17Budget may allow exceptions for classes of State or federal
18pass-through awards or non-federal entities subject to the
19requirements of this Act when such exceptions are not
20prohibited by State or federal law. However, in the interest of
21maximum uniformity, exceptions from the requirements of this
22Act shall be permitted only in unusual or exceptional
23circumstances.
24    (b) The Governor's Office of Management and Budget shall

 

 

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1adopt rules governing the criteria that shall be used to
2determine when an exception may be issued. The Governor's
3Office of Management and Budget shall publish any allowed
4exceptions in the Catalogue of State Financial Assistance
5within 30 days of the exception being allowed.
 
6    Section 75. Supersession. On and after July 1, 2015, in the
7event of a conflict with the Grant Funds Recovery Act, the
8provisions of this Act shall control.
 
9    Section 80. Implementation date. The Governor's Office of
10Management and Budget shall adopt all rules required under this
11Act on or before December 31, 2015.
 
12    Section 85. Agency implementation. All State grant-making
13agencies shall implement the rules issued by the Governor's
14Office of Management and Budget on or before July 1, 2016. The
15standards set forth in this Act, which affect administration of
16State and federal pass-through awards issued by State
17grant-making agencies, become effective once implemented by
18State grant-making agencies. State grant-making agencies shall
19implement the policies and procedures applicable to State and
20federal pass-through awards by adopting rules for non-federal
21entities that shall take effect for fiscal years on and after
22December 26, 2015, unless different provisions are required by
23State or federal statute, federal rule, or approved by the

 

 

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1Governor's Office of Management and Budget.
 
2    Section 90. Annual report. Effective January 1, 2017 and
3each January 1 thereafter, the Governor's Office of Management
4and Budget, in conjunction with the Illinois Single Audit
5Commission, shall submit to the Governor and the General
6Assembly a report that demonstrates the efficiencies, cost
7savings, and reductions in fraud, waste, and abuse as a result
8of the implementation of this Act and the rules adopted by the
9Governor's Office of Management and Budget in accordance with
10the provisions of this Act. The report shall include, but not
11be limited to:
12        (1) the number of entities placed on the Illinois
13    Debarred and Suspended List;
14        (2) any savings realized as a result of the
15    implementation of this Act;
16        (3) any reduction in the number of duplicative audits;
17        (4) the number of persons trained to assist grantees
18    and subrecipients; and
19        (5) the number of grantees and subrecipients to whom a
20    fiscal agent was assigned.
 
21    Section 95. Repeal. This Act is repealed 5 years after the
22effective date of this Act.
 
23    Section 500. The Illinois Administrative Procedure Act is

 

 

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1amended by changing Section 5-45 as follows:
 
2    (5 ILCS 100/5-45)  (from Ch. 127, par. 1005-45)
3    Sec. 5-45. Emergency rulemaking.
4    (a) "Emergency" means the existence of any situation that
5any agency finds reasonably constitutes a threat to the public
6interest, safety, or welfare.
7    (b) If any agency finds that an emergency exists that
8requires adoption of a rule upon fewer days than is required by
9Section 5-40 and states in writing its reasons for that
10finding, the agency may adopt an emergency rule without prior
11notice or hearing upon filing a notice of emergency rulemaking
12with the Secretary of State under Section 5-70. The notice
13shall include the text of the emergency rule and shall be
14published in the Illinois Register. Consent orders or other
15court orders adopting settlements negotiated by an agency may
16be adopted under this Section. Subject to applicable
17constitutional or statutory provisions, an emergency rule
18becomes effective immediately upon filing under Section 5-65 or
19at a stated date less than 10 days thereafter. The agency's
20finding and a statement of the specific reasons for the finding
21shall be filed with the rule. The agency shall take reasonable
22and appropriate measures to make emergency rules known to the
23persons who may be affected by them.
24    (c) An emergency rule may be effective for a period of not
25longer than 150 days, but the agency's authority to adopt an

 

 

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1identical rule under Section 5-40 is not precluded. No
2emergency rule may be adopted more than once in any 24 month
3period, except that this limitation on the number of emergency
4rules that may be adopted in a 24 month period does not apply
5to (i) emergency rules that make additions to and deletions
6from the Drug Manual under Section 5-5.16 of the Illinois
7Public Aid Code or the generic drug formulary under Section
83.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
9emergency rules adopted by the Pollution Control Board before
10July 1, 1997 to implement portions of the Livestock Management
11Facilities Act, (iii) emergency rules adopted by the Illinois
12Department of Public Health under subsections (a) through (i)
13of Section 2 of the Department of Public Health Act when
14necessary to protect the public's health, (iv) emergency rules
15adopted pursuant to subsection (n) of this Section, (v)
16emergency rules adopted pursuant to subsection (o) of this
17Section, or (vi) emergency rules adopted pursuant to subsection
18(c-5) of this Section. Two or more emergency rules having
19substantially the same purpose and effect shall be deemed to be
20a single rule for purposes of this Section.
21    (c-5) To facilitate the maintenance of the program of group
22health benefits provided to annuitants, survivors, and retired
23employees under the State Employees Group Insurance Act of
241971, rules to alter the contributions to be paid by the State,
25annuitants, survivors, retired employees, or any combination
26of those entities, for that program of group health benefits,

 

 

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1shall be adopted as emergency rules. The adoption of those
2rules shall be considered an emergency and necessary for the
3public interest, safety, and welfare.
4    (d) In order to provide for the expeditious and timely
5implementation of the State's fiscal year 1999 budget,
6emergency rules to implement any provision of Public Act 90-587
7or 90-588 or any other budget initiative for fiscal year 1999
8may be adopted in accordance with this Section by the agency
9charged with administering that provision or initiative,
10except that the 24-month limitation on the adoption of
11emergency rules and the provisions of Sections 5-115 and 5-125
12do not apply to rules adopted under this subsection (d). The
13adoption of emergency rules authorized by this subsection (d)
14shall be deemed to be necessary for the public interest,
15safety, and welfare.
16    (e) In order to provide for the expeditious and timely
17implementation of the State's fiscal year 2000 budget,
18emergency rules to implement any provision of this amendatory
19Act of the 91st General Assembly or any other budget initiative
20for fiscal year 2000 may be adopted in accordance with this
21Section by the agency charged with administering that provision
22or initiative, except that the 24-month limitation on the
23adoption of emergency rules and the provisions of Sections
245-115 and 5-125 do not apply to rules adopted under this
25subsection (e). The adoption of emergency rules authorized by
26this subsection (e) shall be deemed to be necessary for the

 

 

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1public interest, safety, and welfare.
2    (f) In order to provide for the expeditious and timely
3implementation of the State's fiscal year 2001 budget,
4emergency rules to implement any provision of this amendatory
5Act of the 91st General Assembly or any other budget initiative
6for fiscal year 2001 may be adopted in accordance with this
7Section by the agency charged with administering that provision
8or initiative, except that the 24-month limitation on the
9adoption of emergency rules and the provisions of Sections
105-115 and 5-125 do not apply to rules adopted under this
11subsection (f). The adoption of emergency rules authorized by
12this subsection (f) shall be deemed to be necessary for the
13public interest, safety, and welfare.
14    (g) In order to provide for the expeditious and timely
15implementation of the State's fiscal year 2002 budget,
16emergency rules to implement any provision of this amendatory
17Act of the 92nd General Assembly or any other budget initiative
18for fiscal year 2002 may be adopted in accordance with this
19Section by the agency charged with administering that provision
20or initiative, except that the 24-month limitation on the
21adoption of emergency rules and the provisions of Sections
225-115 and 5-125 do not apply to rules adopted under this
23subsection (g). The adoption of emergency rules authorized by
24this subsection (g) shall be deemed to be necessary for the
25public interest, safety, and welfare.
26    (h) In order to provide for the expeditious and timely

 

 

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1implementation of the State's fiscal year 2003 budget,
2emergency rules to implement any provision of this amendatory
3Act of the 92nd General Assembly or any other budget initiative
4for fiscal year 2003 may be adopted in accordance with this
5Section by the agency charged with administering that provision
6or initiative, except that the 24-month limitation on the
7adoption of emergency rules and the provisions of Sections
85-115 and 5-125 do not apply to rules adopted under this
9subsection (h). The adoption of emergency rules authorized by
10this subsection (h) shall be deemed to be necessary for the
11public interest, safety, and welfare.
12    (i) In order to provide for the expeditious and timely
13implementation of the State's fiscal year 2004 budget,
14emergency rules to implement any provision of this amendatory
15Act of the 93rd General Assembly or any other budget initiative
16for fiscal year 2004 may be adopted in accordance with this
17Section by the agency charged with administering that provision
18or initiative, except that the 24-month limitation on the
19adoption of emergency rules and the provisions of Sections
205-115 and 5-125 do not apply to rules adopted under this
21subsection (i). The adoption of emergency rules authorized by
22this subsection (i) shall be deemed to be necessary for the
23public interest, safety, and welfare.
24    (j) In order to provide for the expeditious and timely
25implementation of the provisions of the State's fiscal year
262005 budget as provided under the Fiscal Year 2005 Budget

 

 

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1Implementation (Human Services) Act, emergency rules to
2implement any provision of the Fiscal Year 2005 Budget
3Implementation (Human Services) Act may be adopted in
4accordance with this Section by the agency charged with
5administering that provision, except that the 24-month
6limitation on the adoption of emergency rules and the
7provisions of Sections 5-115 and 5-125 do not apply to rules
8adopted under this subsection (j). The Department of Public Aid
9may also adopt rules under this subsection (j) necessary to
10administer the Illinois Public Aid Code and the Children's
11Health Insurance Program Act. The adoption of emergency rules
12authorized by this subsection (j) shall be deemed to be
13necessary for the public interest, safety, and welfare.
14    (k) In order to provide for the expeditious and timely
15implementation of the provisions of the State's fiscal year
162006 budget, emergency rules to implement any provision of this
17amendatory Act of the 94th General Assembly or any other budget
18initiative for fiscal year 2006 may be adopted in accordance
19with this Section by the agency charged with administering that
20provision or initiative, except that the 24-month limitation on
21the adoption of emergency rules and the provisions of Sections
225-115 and 5-125 do not apply to rules adopted under this
23subsection (k). The Department of Healthcare and Family
24Services may also adopt rules under this subsection (k)
25necessary to administer the Illinois Public Aid Code, the
26Senior Citizens and Disabled Persons Property Tax Relief Act,

 

 

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1the Senior Citizens and Disabled Persons Prescription Drug
2Discount Program Act (now the Illinois Prescription Drug
3Discount Program Act), and the Children's Health Insurance
4Program Act. The adoption of emergency rules authorized by this
5subsection (k) shall be deemed to be necessary for the public
6interest, safety, and welfare.
7    (l) In order to provide for the expeditious and timely
8implementation of the provisions of the State's fiscal year
92007 budget, the Department of Healthcare and Family Services
10may adopt emergency rules during fiscal year 2007, including
11rules effective July 1, 2007, in accordance with this
12subsection to the extent necessary to administer the
13Department's responsibilities with respect to amendments to
14the State plans and Illinois waivers approved by the federal
15Centers for Medicare and Medicaid Services necessitated by the
16requirements of Title XIX and Title XXI of the federal Social
17Security Act. The adoption of emergency rules authorized by
18this subsection (l) shall be deemed to be necessary for the
19public interest, safety, and welfare.
20    (m) In order to provide for the expeditious and timely
21implementation of the provisions of the State's fiscal year
222008 budget, the Department of Healthcare and Family Services
23may adopt emergency rules during fiscal year 2008, including
24rules effective July 1, 2008, in accordance with this
25subsection to the extent necessary to administer the
26Department's responsibilities with respect to amendments to

 

 

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1the State plans and Illinois waivers approved by the federal
2Centers for Medicare and Medicaid Services necessitated by the
3requirements of Title XIX and Title XXI of the federal Social
4Security Act. The adoption of emergency rules authorized by
5this subsection (m) shall be deemed to be necessary for the
6public interest, safety, and welfare.
7    (n) In order to provide for the expeditious and timely
8implementation of the provisions of the State's fiscal year
92010 budget, emergency rules to implement any provision of this
10amendatory Act of the 96th General Assembly or any other budget
11initiative authorized by the 96th General Assembly for fiscal
12year 2010 may be adopted in accordance with this Section by the
13agency charged with administering that provision or
14initiative. The adoption of emergency rules authorized by this
15subsection (n) shall be deemed to be necessary for the public
16interest, safety, and welfare. The rulemaking authority
17granted in this subsection (n) shall apply only to rules
18promulgated during Fiscal Year 2010.
19    (o) In order to provide for the expeditious and timely
20implementation of the provisions of the State's fiscal year
212011 budget, emergency rules to implement any provision of this
22amendatory Act of the 96th General Assembly or any other budget
23initiative authorized by the 96th General Assembly for fiscal
24year 2011 may be adopted in accordance with this Section by the
25agency charged with administering that provision or
26initiative. The adoption of emergency rules authorized by this

 

 

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1subsection (o) is deemed to be necessary for the public
2interest, safety, and welfare. The rulemaking authority
3granted in this subsection (o) applies only to rules
4promulgated on or after the effective date of this amendatory
5Act of the 96th General Assembly through June 30, 2011.
6    (p) In order to provide for the expeditious and timely
7implementation of the provisions of Public Act 97-689,
8emergency rules to implement any provision of Public Act 97-689
9may be adopted in accordance with this subsection (p) by the
10agency charged with administering that provision or
11initiative. The 150-day limitation of the effective period of
12emergency rules does not apply to rules adopted under this
13subsection (p), and the effective period may continue through
14June 30, 2013. The 24-month limitation on the adoption of
15emergency rules does not apply to rules adopted under this
16subsection (p). The adoption of emergency rules authorized by
17this subsection (p) is deemed to be necessary for the public
18interest, safety, and welfare.
19    (q) In order to provide for the expeditious and timely
20implementation of the provisions of Articles 7, 8, 9, 11, and
2112 of this amendatory Act of the 98th General Assembly,
22emergency rules to implement any provision of Articles 7, 8, 9,
2311, and 12 of this amendatory Act of the 98th General Assembly
24may be adopted in accordance with this subsection (q) by the
25agency charged with administering that provision or
26initiative. The 24-month limitation on the adoption of

 

 

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1emergency rules does not apply to rules adopted under this
2subsection (q). The adoption of emergency rules authorized by
3this subsection (q) is deemed to be necessary for the public
4interest, safety, and welfare.
5    (r) Should changes to the rules be required by the review
6mandated by Section 65 of the Grant Accountability and
7Transparency Act, the Governor's Office of Management and
8Budget may adopt such peremptory rules as are necessary to
9comply with changes to corresponding federal rules. All other
10rules that the Governor's Office of Management and Budget deems
11necessary to adopt in connection with the Grant Accountability
12and Transparency Act must proceed through the ordinary
13rule-making process.
14(Source: P.A. 97-689, eff. 6-14-12; 97-695, eff. 7-1-12;
1598-104, eff. 7-22-13; 98-463, eff. 8-16-13.)
 
16    Section 505. The Governor's Office of Management and Budget
17Act is amended by changing Section 2 and by adding Sections
182.8, 2.9, and 2.10 as follows:
 
19    (20 ILCS 3005/2)  (from Ch. 127, par. 412)
20    Sec. 2. There is created in the executive office of the
21Governor an Office to be known as the Governor's Office of
22Management and Budget. The Office shall be headed by a
23Director, who shall be appointed by the Governor. The functions
24of the Office shall be as prescribed in Sections 2.1 through

 

 

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12.10 2.7 of this Act.
2(Source: P.A. 93-25, eff. 6-20-03.)
 
3    (20 ILCS 3005/2.8 new)
4    Sec. 2.8. Pursuant to the Grant Accountability and
5Transparency Act, to create, on or before July 1, 2014, a
6centralized grants management unit within the Office. The
7centralized grants management unit shall report directly to the
8Director of the Governor's Office of Management and Budget.
 
9    (20 ILCS 3005/2.9 new)
10    Sec. 2.9. Pursuant to the Grant Accountability and
11Transparency Act, to maintain a list of those individuals and
12entities that are ineligible, either temporarily or
13permanently, to receive an award of grant funds from the State.
 
14    (20 ILCS 3005/2.10 new)
15    Sec. 2.10. To adopt rules on or before December 31, 2015
16necessary to comply with the Grant Accountability and
17Transparency Act.
 
18    (30 ILCS 705/4.2 rep.)
19    Section 510. The Illinois Grant Funds Recovery Act is
20amended by repealing Section 4.2.
 
21    Section 515. The Illinois Grant Funds Recovery Act is

 

 

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1amended by adding Sections 15.1 and 16 as follows:
 
2    (30 ILCS 705/15.1 new)
3    Sec. 15.1. Illinois Single Audit Commission.
4    (a) There is created the Illinois Single Audit Commission.
5The Commission shall assist the Governor's Office of Management
6and Budget in creating its annual report under Section 90 of
7the Grant Accountability and Transparency Act.
8    (b) The Commission shall be comprised of one representative
9from each of the following grant-making Departments who is an
10expert in grant subject matter, and who shall be appointed by
11the Governor, one of whom shall be designated as Chairperson:
12        (1) Department on Aging;
13        (2) Department of Children and Family Services;
14        (3) Department of Healthcare and Family Services;
15        (4) Department of Human Services;
16        (5) Department of Public Health;
17        (6) Criminal Justice Information Authority;
18        (7) Department of Commerce and Economic Opportunity;
19        (8) Department of Transportation;
20        (9) Illinois State Board of Education;
21        (10) Illinois Student Assistance Commission;
22        (11) Department of Agriculture;
23        (12) Environmental Protection Agency; and
24        (13) Department of Natural Resources.
25    In addition, a total of 4 representatives of community

 

 

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1organizations, providers, or associations may be appointed by
2the Departments listed in subsection (b) as follows: 1 member
3may be appointed by the Departments listed in subparagraphs (1)
4through (6); 1 member may be appointed by the Departments
5listed in subparagraphs (7) and (8); 1 member may be appointed
6by the Departments listed in subparagraphs (9) and (10); and 1
7member may be appointed by the Departments listed in
8subparagraphs (11) through (13).
9    Should any of the Departments listed in subparagraphs (1)
10through (13) of subsection (b) deem that additional
11representation by community organizations, providers, or
12associations is necessary, and the Commission as a whole is in
13concurrence with this decision, the Department or Departments
14may appoint additional members, provided, however, that no more
15than a total of 4 such additional members may be appointed to
16the Commission.
17    The Governor may designate representatives of additional
18Departments with grant-making authority to serve as members of
19the Commission.
20    (c) The Commission shall also include: a representative of
21the Governor's Office of Management and Budget, appointed by
22the Governor; four members of the General Assembly, one from
23the House Democratic Caucus, one from the House Republican
24Caucus, one from the Senate Democratic Caucus, and one from the
25Senate Republican Caucus, all of which shall be appointed by
26the Governor; the Co-Chairs of the relevant subcommittees

 

 

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1within the Management Initiative Improvement Committee
2(provided for under Section 1-37a of the Department of Human
3Services Act) may be included as members of the Commission if
4the Commission deems their inclusion necessary for the
5coordination of its efforts.
6    (d) This Section is repealed on July 1, 2019.
 
7    (30 ILCS 705/16 new)
8    Sec. 16. Supersession. On and after July 1, 2015, in the
9event of a conflict with the Grant Accountability and
10Transparency Act, the Grant Accountability and Transparency
11Act shall control.
 
12    Section 997. Severability. The provisions of this Act are
13severable under Section 1.31 of the Statute on Statutes.
 
14    Section 999. Effective date. This Act takes effect upon
15becoming law.