Illinois General Assembly - Full Text of HB3820
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Full Text of HB3820  98th General Assembly

HB3820ham001 98TH GENERAL ASSEMBLY

Rep. Fred Crespo

Filed: 3/13/2014

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3820

2    AMENDMENT NO. ______. Amend House Bill 3820 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1transparency in the use of grant funds from whatever source and
2to reduce administrative burdens on both State agencies and
3grantees by adopting federal guidance and regulations
4applicable to such grant funds; specifically, the Uniform
5Administrative Requirements, Cost Principles, and Audit
6Requirements for Federal Awards ("Uniform Guidance"), codified
7at 2 CFR 200.
8    (c) This Act is consistent with the State's focus on
9improving performance and outcomes while ensuring transparency
10and the financial integrity of taxpayer dollars through such
11initiatives as the Management Improvement Initiative Committee
12created by Section 1-37a of the Department of Human Services
13Act, the State prioritized goals created under Section 50-25 of
14the State Budget Law (also known as "Budgeting for Results"),
15and the Grant Information Collection Act.
16    (d) This Act is not intended to affect the provisions of
17the Illinois State Auditing Act and does not address the
18external audit function of the Auditor General.
 
19    Section 10. Purpose. The purpose of this Act is to
20establish uniform administrative requirements, cost
21principles, and audit requirements for State and federal
22pass-through awards to non-federal entities. State awarding
23agencies shall not impose additional or inconsistent
24requirements, except as provided in 2 CFR 200.102 or as
25directed by the Governor's Office of Management and Budget,

 

 

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1unless specifically required by State or federal statute or
2Executive Order.
3    This Act and the rules adopted under this Act provide the
4basis for a systematic and periodic collection and uniform
5submission to the Governor's Office of Management and Budget of
6information of all State and federal financial assistance
7programs by State grant-making agencies. This Act also
8establishes policies related to the delivery of this
9information to the public, including through the use of
10electronic media.
 
11    Section 15. Definitions. As used in this Act:
12    "Allowable cost" means a cost allowable to a project if:
13        (1) the costs are reasonable and necessary for the
14    performance of the award;
15        (2) the costs are allocable to the specific project;
16        (3) the costs are treated consistently in like
17    circumstances to both federally-financed and other
18    activities of the non-federal entity;
19        (4) the costs conform to any limitations of the cost
20    principles or the sponsored agreement;
21        (5) the costs are accorded consistent treatment; a cost
22    may not be assigned to a State or federal award as a direct
23    cost if any other cost incurred for the same purpose in
24    like circumstances has been allocated to the award as an
25    indirect cost;

 

 

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1        (6) the costs are determined to be in accordance with
2    generally accepted accounting principles;
3        (7) the costs are not included as a cost or used to
4    meet cost-sharing or matching requirements of any other
5    program in either the current or prior period; and
6        (8) the costs are adequately documented.
7    "Auditee" means any non-federal entity that expends State
8or federal awards that must be audited.
9    "Auditor" means an auditor who is a public accountant or a
10federal, State, or local government audit organization that
11meets the general standards specified in generally-accepted
12government auditing standards. "Auditor" does not include
13internal auditors of nonprofit organizations.
14    "Auditor General" means the Auditor General of the State of
15Illinois.
16    "Award" means financial assistance that provides support
17or stimulation to accomplish a public purpose. "Awards" include
18grants and other agreements in the form of money, or property
19in lieu of money, by the State or federal government to an
20eligible recipient. "Award" does not include: technical
21assistance that provides services instead of money; other
22assistance in the form of loans, loan guarantees, interest
23subsidies, or insurance; direct payments of any kind to
24individuals; or contracts that must be entered into and
25administered under State or federal procurement laws and
26regulations.

 

 

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1    "Budget" means the financial plan for the project or
2program that the awarding agency or pass-through entity
3approves during the award process or in subsequent amendments
4to the award. It may include the State or federal and
5non-federal share or only the State or federal share, as
6determined by the awarding agency or pass-through entity.
7    "Catalog of Federal Domestic Assistance" or "CFDA" means a
8database that helps the federal government track all programs
9it has domestically funded.
10    "Catalog of Federal Domestic Assistance number" or "CFDA
11number" means the number assigned to a federal program in the
12CFDA.
13    "Catalog of State Financial Assistance" means the single,
14authoritative, statewide, comprehensive source document of
15State financial assistance program information.
16    "Catalog of State Financial Assistance Number" means the
17number assigned to a State program in the Catalog of State
18Financial Assistance. The first 3 digits represent the State
19agency number and the last 4 digits represent the program.
20    "Cluster of programs" means a grouping of closely related
21programs that share common compliance requirements. The types
22of clusters of programs are research and development, student
23financial aid, and other clusters. A "cluster of programs"
24shall be considered as one program for determining major
25programs and, with the exception of research and development,
26whether a program-specific audit may be elected.

 

 

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1    "Cognizant agency for audit" means the federal agency
2designated to carry out the responsibilities described in 2 CFR
3200.513(a).
4    "Contract" means a legal instrument by which a non-federal
5entity purchases property or services needed to carry out the
6project or program under an award. "Contract" does not include
7a legal instrument, even if the non-federal entity considers it
8a contract, when the substance of the transaction meets the
9definition of an award or subaward.
10    "Contractor" means an entity that receives a contract.
11    "Cooperative agreement" means a legal instrument of
12financial assistance between an awarding agency or
13pass-through entity and a non-federal entity that:
14        (1) is used to enter into a relationship with the
15    principal purpose of transferring anything of value from
16    the awarding agency or pass-through entity to the
17    non-federal entity to carry out a public purpose authorized
18    by law, but is not used to acquire property or services for
19    the awarding agency's or pass-through entity's direct
20    benefit or use; and
21        (2) is distinguished from a grant in that it provides
22    for substantial involvement between the awarding agency or
23    pass-through entity and the non-federal entity in carrying
24    out the activity contemplated by the award.
25    "Cooperative agreement" does not include a cooperative
26research and development agreement, nor an agreement that

 

 

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1provides only direct cash assistance to an individual, a
2subsidy, a loan, a loan guarantee, or insurance.
3    "Corrective action" means action taken by the auditee that
4(i) corrects identified deficiencies, (ii) produces
5recommended improvements, or (iii) demonstrates that audit
6findings are either invalid or do not warrant auditee action.
7    "Cost objective" means a program, function, activity,
8award, organizational subdivision, contract, or work unit for
9which cost data is desired and for which provision is made to
10accumulate and measure the cost of processes, products, jobs,
11and capital projects. A "cost objective" may be a major
12function of the non-federal entity, a particular service or
13project, an award, or an indirect cost activity.
14    "Cost sharing" means the portion of project costs not paid
15by State or federal funds, unless otherwise authorized by
16statute.
17    "Development" is the systematic use of knowledge and
18understanding gained from research directed toward the
19production of useful materials, devices, systems, or methods,
20including design and development of prototypes and processes.
21    "Data Universal Numbering System number" means the 9-digit
22number established and assigned by Dun and Bradstreet, Inc. to
23uniquely identify entities and, under federal law, is required
24for non-federal entities to apply for, receive, and report on a
25federal award.
26    "Direct costs" means costs that can be identified

 

 

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1specifically with a particular final cost objective, such as a
2State or federal or federal pass-through award or a particular
3sponsored project, an instructional activity, or any other
4institutional activity, or that can be directly assigned to
5such activities relatively easily with a high degree of
6accuracy.
7    "Equipment" means tangible personal property (including
8information technology systems) having a useful life of more
9than one year and a per-unit acquisition cost that equals or
10exceeds the lesser of the capitalization level established by
11the non-federal entity for financial statement purposes, or
12$5,000.
13    "Executive branch" means that branch of State government
14that is under the jurisdiction of the Governor.
15    "Federal agency" has the meaning provided for "agency"
16under 5 U.S.C. 551(1) together with the meaning provided for
17"agency" by 5 U.S.C. 552(f).
18    "Federal award" means:
19        (1) the federal financial assistance that a
20    non-federal entity receives directly from a federal
21    awarding agency or indirectly from a pass-through entity;
22        (2) the cost-reimbursement contract under the Federal
23    Acquisition Regulations that a non-federal entity receives
24    directly from a federal awarding agency or indirectly from
25    a pass-through entity; or
26        (3) the instrument setting forth the terms and

 

 

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1    conditions when the instrument is the grant agreement,
2    cooperative agreement, other agreement for assistance
3    covered in paragraph (b) of 20 CFR 200.40, or the
4    cost-reimbursement contract awarded under the Federal
5    Acquisition Regulations.
6    "Federal award" does not include other contracts that a
7federal agency uses to buy goods or services from a contractor
8or a contract to operate federal government owned,
9contractor-operated facilities.
10    "Federal awarding agency" means the federal agency that
11provides a federal award directly to a non-federal entity.
12    "Federal interest" means, for purposes of 2 CFR 200.329 or
13when used in connection with the acquisition or improvement of
14real property, equipment, or supplies under a federal award,
15the dollar amount that is the product of the federal share of
16total project costs and current fair market value of the
17property, improvements, or both, to the extent the costs of
18acquiring or improving the property were included as project
19costs.
20    "Federal program" means any of the following:
21        (1) All federal awards which are assigned a single
22    number in the CFDA.
23        (2) When no CFDA number is assigned, all federal awards
24    to non-federal entities from the same agency made for the
25    same purpose should be combined and considered one program.
26        (3) Notwithstanding paragraphs (1) and (2) of this

 

 

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1    definition, a cluster of programs. The types of clusters of
2    programs are:
3            (A) research and development;
4            (B) student financial aid; and
5            (C) "other clusters", as described in the
6        definition of "cluster of programs".
7    "Federal share" means the portion of the total project
8costs that are paid by federal funds.
9    "Final cost objective" means a cost objective which has
10allocated to it both direct and indirect costs and, in the
11non-federal entity's accumulation system, is one of the final
12accumulation points, such as a particular award, internal
13project, or other direct activity of a non-federal entity.
14    "Financial assistance" means the following:
15        (1) For grants and cooperative agreements, "financial
16    assistance" means assistance that non-federal entities
17    receive or administer in the form of:
18            (A) grants;
19            (B) cooperative agreements;
20            (C) non-cash contributions or donations of
21        property, including donated surplus property;
22            (D) direct appropriations;
23            (E) food commodities; and
24            (F) other financial assistance, except assistance
25        listed in paragraph (2) of this definition.
26        (2) "Financial assistance" includes assistance that

 

 

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1    non-federal entities receive or administer in the form of
2    loans, loan guarantees, interest subsidies, and insurance.
3        (3) "Financial assistance" does not include amounts
4    received as reimbursement for services rendered to
5    individuals.
6    "Fixed amount awards" means a type of grant agreement under
7which the awarding agency or pass-through entity provides a
8specific level of support without regard to actual costs
9incurred under the award. "Fixed amount awards" reduce some of
10the administrative burden and record-keeping requirements for
11both the non-federal entity and awarding agency or pass-through
12entity. Accountability is based primarily on performance and
13results.
14    "Foreign public entity" means:
15        (1) a foreign government or foreign governmental
16    entity;
17        (2) a public international organization that is
18    entitled to enjoy privileges, exemptions, and immunities
19    as an international organization under the International
20    Organizations Immunities Act (22 U.S.C. 288-288f);
21        (3) an entity owned, in whole or in part, or controlled
22    by a foreign government; or
23        (4) any other entity consisting wholly or partially of
24    one or more foreign governments or foreign governmental
25    entities.
26    "Foreign organization" means an entity that is:

 

 

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

 

 

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

 

 

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1maintained by the Governor's Office of Management and Budget
2that contains the names of those individuals and entities that
3are ineligible, either temporarily or permanently, from
4receiving an award of grant funds from the State.
5    "Indian tribe" (or "federally recognized Indian tribe")
6means any Indian tribe, band, nation, or other organized group
7or community, including any Alaska Native village or regional
8or village corporation as defined in or established pursuant to
9the federal Alaska Native Claims Settlement Act (43 U.S.C.
101601, et seq.) that is recognized as eligible for the special
11programs and services provided by the United States to Indians
12because of their status as Indians under 25 U.S.C. 450b(e), as
13set forth in the annually published Bureau of Indian Affairs
14list of Indian Entities Recognized and Eligible to Receive
15Services.
16    "Indirect cost" means those costs incurred for a common or
17joint purpose benefitting more than one cost objective and not
18readily assignable to the cost objectives specifically
19benefitted without effort disproportionate to the results
20achieved.
21    "Inspector General" means the Office of the Executive
22Inspector General for Executive branch agencies.
23    "Institutions of Higher Education" has the meaning
24provided under 20 U.S.C. 1001.
25    "Loan" means a federal loan or loan guarantee received or
26administered by a non-federal entity. "Loan" does not include a

 

 

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1"program income" as defined in 2 CFR 200.80.
2    "Loan guarantee" means any State or federal government
3guarantee, insurance, or other pledge with respect to the
4payment of all or a part of the principal or interest on any
5debt obligation of a non-federal borrower to a non-federal
6lender, but does not include the insurance of deposits, shares,
7or other withdrawable accounts in financial institutions.
8    "Local government" has the meaning provided for the term
9"units of local government" under Section 1 of Article VII of
10the Illinois Constitution and includes school districts.
11    "Major program" means a federal program determined by the
12auditor to be a major program in accordance with 2 CFR 200.518
13or a program identified as a major program by a federal
14awarding agency or pass-through entity in accordance with 2 CFR
15200.503(e).
16    "Non-federal entity" means a state, local government,
17Indian tribe, institution of higher education, or
18organization, whether nonprofit or for-profit, that carries
19out a State or federal award as a recipient or subrecipient.
20    "Nonprofit organization" means any corporation, trust,
21association, cooperative, or other organization, not including
22institutions of higher education, that:
23        (1) is operated primarily for scientific, educational,
24    service, charitable, or similar purposes in the public
25    interest;
26        (2) is not organized primarily for profit; and

 

 

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1        (3) uses net proceeds to maintain, improve, or expand
2    the operations of the organization.
3    "Obligations", when used in connection with a non-federal
4entity's utilization of funds under an award, means orders
5placed for property and services, contracts and subawards made,
6and similar transactions during a given period that require
7payment by the non-federal entity during the same or a future
8period.
9    "Office of Management and Budget" means the Office of
10Management and Budget of the Executive Office of the President.
11    "Other clusters" has the meaning provided by the federal
12Office of Management and Budget in the compliance supplement or
13has the meaning as it is designated by a state for federal
14awards the state provides to its subrecipients that meet the
15definition of a cluster of programs. When designating an "other
16cluster", a state must identify the federal awards included in
17the cluster and advise the subrecipients of compliance
18requirements applicable to the cluster.
19    "Oversight agency for audit" means the federal awarding
20agency that provides the predominant amount of funding directly
21to a non-federal entity not assigned a cognizant agency for
22audit. When there is no direct funding, the awarding agency
23that is the predominant source of pass-through funding must
24assume the oversight responsibilities. The duties of the
25oversight agency for audit and the process for any
26reassignments are described in 2 CFR 200.513(b).

 

 

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1    "Pass-through entity" means a non-federal entity that
2provides a subaward to a subrecipient to carry out part of a
3program.
4    "Property" means real property or personal property.
5    "Project cost" means total allowable costs incurred under
6an award and all required cost sharing and voluntary committed
7cost sharing, including third-party contributions.
8    "Recipient" means a non-federal entity that receives an
9award directly from an awarding agency to carry out an activity
10under a program. "Recipient" does not include subrecipients.
11    "Research and Development" means all research activities,
12both basic and applied, and all development activities that are
13performed 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.
17    "State award" means the financial assistance that a
18non-federal entity receives from the State and that is funded
19with either State funds or federal funds; in the latter case,
20the State is acting as a pass-through entity.
21    "State awarding agency" means a State agency that provides
22an award to a non-federal entity.
23    "State grant-making agency" has the same meaning as "State
24awarding agency".
25    "State interest" means the acquisition or improvement of
26real property, equipment, or supplies under a State award, the

 

 

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1dollar amount that is the product of the State share of the
2total project costs and current fair market value of the
3property, improvements, or both, to the extent the costs of
4acquiring or improving the property were included as project
5costs.
6    "State program" means any of the following:
7        (1) All State awards which are assigned a single number
8    in the Catalog of State Financial Assistance.
9        (2) When no Catalog of State Financial Assistance
10    number is assigned, all State awards to non-federal
11    entities from the same agency made for the same purpose are
12    considered one program.
13        (3) A cluster of programs as defined in this Section.
14    "State share" means the portion of the total project costs
15that are paid by State funds.
16    "Student Financial Aid" means federal awards under those
17programs of general student assistance, such as those
18authorized by Title IV of the Higher Education Act of 1965, as
19amended (20 U.S.C. 1070-1099d), that are administered by the
20United States Department of Education and similar programs
21provided by other federal agencies. "Student Financial Aid"
22does not include federal awards under programs that provide
23fellowships or similar federal awards to students on a
24competitive basis or for specified studies or research.
25    "Subaward" means an award provided by a pass-through entity
26to a subrecipient for the subrecipient to carry out part of a

 

 

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1federal award received by the pass-through entity. "Subaward"
2does not include payments to a contractor or payments to an
3individual that is a beneficiary of a federal program. A
4"subaward" may be provided through any form of legal agreement,
5including an agreement that the pass-through entity considers a
6contract.
7    "Subrecipient" means a non-federal entity that receives a
8subaward from a pass-through entity to carry out part of a
9federal program. "Subrecipient" does not include an individual
10that is a beneficiary of such program. A "subrecipient" may
11also be a recipient of other federal awards directly from a
12federal awarding agency.
13    "Suspension" means a post-award action by the State or
14federal agency or pass-through entity that temporarily
15withdraws the State or federal agency's or pass-through
16entity's financial assistance sponsorship under an award,
17pending corrective action by the recipient or subrecipient or
18pending a decision to terminate the award.
19    "Uniform Administrative Requirements, Costs Principles,
20and Audit Requirements for Federal Awards" means those rules
21applicable to grants contained in 2 CFR 200.
22    "Voluntary committed cost sharing" means cost sharing
23specifically pledged on a voluntary basis in the proposal's
24budget or the award on the part of the non-federal entity and
25that becomes a binding requirement of the award.
 

 

 

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1    Section 20. Adoption of federal rules applicable to grants.
2    (a) On or before July 1, 2015, the Governor's Office of
3Management and Budget shall by rule adopt the Uniform Guidance
4at 2 CFR 200 and apply those rules to all State and federal
5awards on and after July 1, 2015. The rules shall include the
6following:
7        (1) Administrative requirements. In accordance with
8    Subparts B through D of 2 CFR 200, the Governor's Office of
9    Management and Budget shall by rule set forth the uniform
10    administrative requirements for grant and cooperative
11    agreements, including the requirements for the management
12    by State awarding agencies of federal grant programs before
13    State and federal pass-through awards have been made and
14    requirements that State awarding agencies may impose on
15    non-federal entities in State and federal pass-through
16    awards.
17        (2) Cost principles. In accordance with Subpart E of 2
18    CFR 200, the Governor's Office of Management and Budget
19    shall by rule establish principles for determining the
20    allowable costs incurred by non-federal entities under
21    State and federal pass-through awards. The principles are
22    intended for cost determination, but are not intended to
23    identify the circumstances or dictate the extent of State
24    or federal pass-through participation in financing a
25    particular program or project. The principles shall
26    provide that State and federal awards bear their fair share

 

 

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1    of cost recognized under these principles, except where
2    restricted or prohibited by State or federal law.
3        (3) Audit and single audit requirements and audit
4    follow-up. In accordance with Subpart F of 2 CFR 200 and
5    the federal Single Audit Act Amendments of 1996, the
6    Governor's Office of Management and Budget shall by rule
7    set forth standards to obtain consistency and uniformity
8    among State and federal pass-through awarding agencies for
9    the audit of non-federal entities expending State and
10    federal awards. These provisions shall also set forth the
11    policies and procedures for State and federal pass-through
12    entities when using the results of these audits.
13        The provisions of this item (3) do not apply to
14    for-profit subrecipients because for-profit subrecipients
15    are not subject to the requirements of OMB Circular A-133,
16    Audits of States, Local and Non-Profit Organizations.
17    Audits of for-profit subrecipients must be conducted
18    pursuant to a Program Audit Guide issued by the Federal
19    awarding agency. If a Program Audit Guide is not available,
20    the State awarding agency must prepare a Program Audit
21    Guide in accordance with the OMB Circular A-133 Compliance
22    Supplement. For-profit entities are subject to all other
23    general administrative requirements and cost principles
24    applicable to grants.
25    (b) This Act addresses only State and federal pass-through
26auditing functions and does not address the external audit

 

 

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1function of the Auditor General.
2    (c) The State grant-making agency is responsible for
3establishing requirements, as necessary, to ensure compliance
4by for-profit subrecipients subject to approval by the
5Governor's Office of Management and Budget. The agreement with
6the for-profit subrecipient shall describe the applicable
7compliance requirements and the for-profit subrecipient's
8compliance responsibility. Methods to ensure compliance for
9State and federal pass-through awards made to for-profit
10subrecipients shall include pre-award, audits, monitoring
11during the agreement, and post-award audits.
 
12    Section 25. Conflicts of interest. The Governor's Office of
13Management and Budget shall adopt rules regarding conflict of
14interest policies for awards. A non-federal entity must
15disclose in writing any potential conflict of interest to the
16Governor's Office of Management and Budget or the pass-through
17entity in accordance with applicable awarding agency policy.
 
18    Section 30. Mandatory disclosures. The Governor's Office
19of Management and Budget shall by rule require that the
20applicant for an award disclose, in a timely manner and in
21writing to the pass-through entity, all violations of State or
22federal criminal law involving fraud, bribery, or gratuity
23violations potentially affecting the award. Failure to make the
24required disclosures may result in any of the following

 

 

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1remedies:
2        (1) The temporary withholding of cash payments pending
3    correction of the deficiency by the awarding agency or
4    non-federal entity or more severe enforcement action by the
5    pass-through entity.
6        (2) Disallowance of (that is, denial of both use of
7    funds and any applicable matching credit for) all or part
8    of the cost of the activity or action not in compliance.
9        (3) Whole or partial suspension or termination of the
10    award.
11        (4) Initiation of suspension or debarment proceedings
12    as authorized under rules adopted by the Governor's Office
13    of Management and Budget under subsection (a) of Section 20
14    of this Act and awarding agency regulations (or, in the
15    case of a pass-through entity, recommendation that such a
16    proceeding be initiated by the awarding agency).
17        (5) Withholding further awards for the project or
18    program.
19        (6) Taking other remedies that may be legally
20    available.
 
21    Section 35. Supplemental rules. On or before December 31,
222015, the Governor's Office of Management and Budget shall
23adopt supplemental rules pertaining to the following:
24        (1) Criteria to define mandatory formula-based grants
25    and discretionary grants.

 

 

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1        (2) The award of one-year grants for new applicants.
2        (3) The award of competitive grants in 3-year terms
3    (one-year initial terms with the option to renew for up to
4    2 additional years) to coincide with the federal award.
5        (4) The issuance of grants, including:
6            (A) public notice of announcements of funding
7        opportunities;
8            (B) the development of uniform grant applications;
9            (C) state agency review of merit of proposals and
10        risk posed by applicants;
11            (D) specific conditions for individual recipients
12        (requiring the use of a fiscal agent and additional
13        corrective conditions);
14            (E) certifications and representations;
15            (F) pre-award costs;
16            (G) performance measures and Budgeting for Results
17        requirements; and
18            (H) for mandatory formula grants, the merit of the
19        proposal and the risk posed should result in additional
20        reporting, monitoring, or measures such as
21        reimbursement-basis only.
22        (5) The development of uniform budget requirements,
23    which shall include:
24            (A) mandatory submission of budgets as part of the
25        grant application process;
26            (B) mandatory requirements regarding contents of

 

 

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1        the budget including, at a minimum, common detail line
2        items specified under guidelines issued by the
3        Governor's Office of Management and Budget;
4            (C) a requirement that the budget allow
5        flexibility to add lines describing costs that are
6        common for the services provided as outlined in the
7        grant application;
8            (D) a requirement that the budget include
9        information necessary for analyzing cost and
10        performance for use in the Budgeting for Results
11        initiative; and
12            (E) caps on the amount of salaries that may be
13        charged to grants based on the limitations imposed by
14        Federal agencies.
15        (6) The development of pre-qualification requirements
16    for applicants, including the fiscal condition of the
17    organization and the provision of the following
18    information:
19            (A) organization name;
20            (B) Federal Employee Identification Number;
21            (C) Data Universal Numbering System (DUNS) number;
22            (D) fiscal condition;
23            (E) whether the applicant is in good standing with
24        the Secretary of State;
25            (F) past performance in administering grants;
26            (G) whether the applicant is or has ever been on

 

 

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1        the Debarred and Suspended List maintained by the
2        Governor's Office of Management and Budget;
3            (H) whether the applicant is or has ever been on
4        the Federal Excluded Parties List; and
5            (I) whether the applicant is or has ever been on
6        the Sanctioned Party List maintained by the Illinois
7        Department of Healthcare and Family Services.
8    Nothing in this Act affects the provisions of the Fiscal
9Control and Internal Auditing Act nor the requirement that the
10management of each State agency is responsible for maintaining
11effective internal controls under that Act.
 
12    Section 40. Applicability.
13    (a) The requirements established under this Act apply to
14State grant-making agencies that make State and federal
15pass-through awards to non-federal entities. These
16requirements apply to all costs related to State and federal
17pass-through awards.
18    (b) The terms and conditions of State, federal, and
19pass-through awards apply to subawards and subrecipients
20unless a particular Section of this Act or the terms and
21conditions of the State or federal award specifically indicate
22otherwise. Non-federal entities shall comply with requirements
23of this Act regardless of whether the non-federal entity is a
24recipient or subrecipient of a State or federal pass-through
25award. Pass-through entities shall comply with the

 

 

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1requirements set forth under the Governor's Office of
2Management and Budget rules adopted under subsection (a) of
3Section 20 of this Act, but not to any requirements in this Act
4directed towards State or federal awarding agencies, unless the
5requirements of the State or federal awards indicate otherwise.
6    When a non-federal entity is awarded a cost-reimbursement
7contract, only 2 CFR 200.330 through 200.332 are incorporated
8by reference into the contract. However, when the Cost
9Accounting Standards are applicable to the contract, they take
10precedence over the requirements of this Act unless they are in
11conflict with Subpart F of 2 CFR 200. In addition, costs that
12are made unallowable under 10 U.S.C. 2324(e) and 41 U.S.C.
134304(a), as described in the Federal Acquisition Regulations,
14subpart 31.2 and subpart 31.603, are always unallowable. For
15requirements other than those covered in Subpart D of 2 CFR
16200.330 through 200.332, the terms of the contract and the
17Federal Acquisition Regulations apply.
18    With the exception of Subpart F of 2 CFR 200, which is
19required by the Single Audit Act, in any circumstances where
20the provisions of federal statutes or regulations differ from
21the provisions of this Act, the provision of the federal
22statutes or regulations govern. This includes, for agreements
23with Indian tribes, the provisions of the Indian
24Self-Determination and Education and Assistance Act, as
25amended, 25 U.S.C. 450-458ddd-2.
26    (c) State grant-making agencies may apply subparts A

 

 

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1through E of 2 CFR 200 to for-profit entities, foreign public
2entities, or foreign organizations, except where the awarding
3agency determines that the application of these subparts would
4be inconsistent with the international obligations of the
5United States or the statute or regulations of a foreign
6government.
7    (d) Except for 2 CFR 200.202 and 200.330 through 200.332,
8the requirements in Subparts C, D, and E of 2 CFR 200 do not
9apply to the following programs:
10        (1) The block grant awards authorized by the Omnibus
11    Budget Reconciliation Act of 1981 (including Community
12    Services; Preventive Health and Health Services; Alcohol,
13    Drug Abuse, and Mental Health Services; Maternal and Child
14    Health Services; Social Services; Low-Income Home Energy
15    Assistance; States' Program of Community Development Block
16    Grant Awards for Small Cities; and Elementary and Secondary
17    Education, other than programs administered by the
18    Secretary of Education under Title V, Subtitle D, Chapter
19    2, Section 583 - the Secretary's discretionary award
20    program) and both the Alcohol and Drug Abuse Treatment and
21    Rehabilitation Block Grant Award (42 U.S.C. 300x-21 to
22    300x-35 and 42 U.S.C. 300x-51 to 300x-64) and the Mental
23    Health Service for the Homeless Block Grant Award (42
24    U.S.C. 300x to 300x-9) under the Public Health Services
25    Act.
26        (2) Federal awards to local education agencies under 20

 

 

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1    U.S.C. 7702 through 7703b (portions of the Impact Aid
2    program).
3        (3) Payments under the Department of Veterans Affairs'
4    State Home Per Diem Program (38 U.S.C. 1741).
5        (4) Federal awards authorized under the Child Care and
6    Development Block Grant Act of 1990, as amended, including
7    the following:
8            (A) Child Care and Development Block Grant (42
9        U.S.C. 9858).
10            (B) Child Care Mandatory and Matching Funds of the
11        Child Care and Development Fund (42 U.S.C. 9858).
12    (e) Except for the 2 CFR 200.202 requirement to provide
13public notice of federal financial assistance programs, the
14guidance in Subpart C Pre-federal Award Requirements and
15Contents of Federal Awards does not apply to the following
16programs:
17        (1) Entitlement federal awards to carry out the
18    following programs of the Social Security Act:
19            (A) Temporary Assistance to Needy Families (Title
20        IV-A of the Social Security Act, 42 U.S.C. 601-619);
21            (B) Child Support Enforcement and Establishment of
22        Paternity (Title IV-D of the Social Security Act, 42
23        U.S.C. 651-669b);
24            (C) Foster Care and Adoption Assistance (Title
25        IV-E of the Act, 42 U.S.C. 670-679c);
26            (D) Aid to the Aged, Blind, and Disabled (Titles I,

 

 

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1        X, XIV, and XVI- AABD of the Act, as amended); and
2            (E) Medical Assistance (Medicaid) (42 U.S.C.
3        1396-1396w-5), not including the State Medicaid Fraud
4        Control program authorized by Section 1903(a)(6)(B) of
5        the Social Security Act (42 U.S.C. 1396b(a)(6)(B)).
6        (2) A federal award for an experimental, pilot, or
7    demonstration project that is also supported by a federal
8    award listed in paragraph (1) of subsection (e) of this
9    Section.
10        (3) Federal awards under subsection 412(e) of the
11    Immigration and Nationality Act of 1965 and Section 501(a)
12    of the Refugee Education Assistance Act of 1980 for cash
13    assistance, medical assistance, and supplemental security
14    income benefits to refugees and entrants and the
15    administrative costs of providing the assistance and
16    benefits under 8 U.S.C. 1522(e).
17        (4) Entitlement awards under the following programs of
18    The National School Lunch Act:
19            (A) National School Lunch Program (42 U.S.C.
20        1753);
21            (B) Commodity Assistance (42 U.S.C. 1755);
22            (C) Special Meal Assistance (42 U.S.C. 1759a);
23            (D) Summer Food Service Program for Children (42
24        U.S.C. 1761); and
25            (E) Child and Adult Care Food Program (42 U.S.C.
26        1766).

 

 

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1        (5) Entitlement awards under the following programs of
2    The Child Nutrition Act of 1966:
3            (A) Special Milk Program (42 U.S.C. 1772);
4            (B) School Breakfast Program (42 U.S.C. 1773); and
5            (C) State Administrative Expenses (42 U.S.C.
6        Section 1776).
7        (6) Entitlement awards for State Administrative
8    Expenses under The Food and Nutrition Act of 2008 (7 U.S.C.
9    2025).
10        (7) Non-discretionary federal awards under the
11    following non-entitlement programs:
12            (A) Special Supplemental Nutrition Program for
13        Women, Infants and Children under the Child Nutrition
14        Act of 1966 (42 U.S.C. 1786);
15            (B) The Emergency Food Assistance Programs
16        (Emergency Food Assistance Act of 1983) (7 U.S.C.
17        7501); and
18            (C) Commodity Supplemental Food Program (7 U.S.C.
19        Section 612c).
 
20    Section 45. State grant-making agency responsibilities.
21The specific requirements and responsibilities of State
22grant-making agencies and non-federal entities are set forth in
23this Act. State agencies making State awards to non-federal
24entities must adopt by rule the language in 2 CFR 200, Subpart
25C through Subpart F unless different provisions are required by

 

 

09800HB3820ham001- 32 -LRB098 15375 OMW 56916 a

1law or are approved by the Governor's Office of Management and
2Budget.
 
3    Section 50. The Governor's Office of Management and Budget
4responsibilities.
5    (a) The Governor's Office of Management and Budget shall
6review State grant-making agency rules and the implementation
7of this Act and shall provide interpretations of policy
8requirements and assistance to ensure effective and efficient
9implementation. Any exceptions shall be subject to approval by
10the Governor's Office of Management and Budget. Exceptions
11shall only be made in particular cases where adequate
12justification is presented.
13    (b) On or before July 1, 2014, the Governor's Office of
14Management and Budget shall establish a centralized grants
15management unit within the Governor's Office of Management and
16Budget. The centralized division shall be funded with a portion
17of the administrative funds provided under existing and future
18State and federal grants.
 
19    Section 55. Responsibilities of centralized grants
20management unit. The centralized grants management unit within
21the Governor's Office of Management and Budget shall be
22responsible for:
23        (1) The development of minimum requirements applicable
24    to the staff of grant applicants to manage and execute

 

 

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1    grant awards for programmatic and administrative purposes,
2    including grant management specialists with:
3            (A) general and technical competencies;
4            (B) programmatic expertise;
5            (C) fiscal expertise and systems necessary to
6        adequately account for the source and application of
7        grant funds for each program; and
8            (D) knowledge of compliance requirements.
9        (2) The development of minimum training requirements,
10    including annual training requirements.
11        (3) Accurate, current, and complete disclosure of the
12    financial results of each funded award, as set forth in the
13    financial monitoring and reporting section of 2 CFR 200.
14        (4) Development of criteria for requiring the
15    retention of a fiscal agent and for becoming a fiscal
16    agent.
17        (5) Development of disclosure requirements in the
18    grant application pertaining to:
19            (A) related-party status between grantees and
20        grant-making agencies;
21            (B) past employment of applicant officers and
22        grant managers;
23            (C) disclosure of current or past employment of
24        members of immediate family; and
25            (D) disclosure of senior management of grantee
26        organization and their relationships with contracted

 

 

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

 

 

09800HB3820ham001- 35 -LRB098 15375 OMW 56916 a

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

 

 

09800HB3820ham001- 36 -LRB098 15375 OMW 56916 a

1maximum uniformity, exceptions from the requirements of this
2Act shall be permitted only in unusual circumstances.
 
3    Section 75. Supersession. On and after July 1, 2015, in the
4event of a conflict with the Grant Funds Recovery Act, the
5provisions of this Act shall control.
 
6    Section 80. Implementation date. The Governor's Office of
7Management and Budget shall adopt all rules required under this
8Act on or before December 31, 2015.
 
9    Section 85. Agency implementation. All State grant-making
10agencies shall implement the rules issued by the Governor's
11Office of Management and Budget on or before July 1, 2016. The
12standards set forth in this Act, which affect administration of
13State and federal pass-through awards issued by State
14grant-making agencies, become effective once implemented by
15State grant-making agencies. State grant-making agencies shall
16implement the policies and procedures applicable to State and
17federal pass-through awards by adopting rules for non-federal
18entities that shall take effect for fiscal years on and after
19December 26, 2015, unless different provisions are required by
20State or federal statute, federal rule, or approved by the
21Governor's Office of Management and Budget.
 
22    Section 90. Annual report. Effective January 1, 2017 and

 

 

09800HB3820ham001- 37 -LRB098 15375 OMW 56916 a

1each January 1 thereafter, the Governor's Office of Management
2and Budget, in conjunction with the Illinois Single Audit
3Commission, shall submit to the Governor and the General
4Assembly a report that demonstrates the efficiencies, cost
5savings, and reductions in fraud, waste, and abuse as a result
6of the implementation of this Act and the rules adopted by the
7Governor's Office of Management and Budget in accordance with
8the provisions of this Act. The report shall include, but not
9be limited to:
10        (1) the number of entities placed on the Illinois
11    Debarred and Suspended List;
12        (2) any savings realized as a result of the
13    implementation of this Act;
14        (3) any reduction in the number of duplicative audits;
15        (4) the number of persons trained to assist grantees
16    and subrecipients; and
17        (5) the number of grantees and subrecipients to whom a
18    fiscal agent was assigned.
 
19    Section 95. Repeal. This Act is repealed 5 years after the
20effective date of this Act.
 
21    Section 500. The Illinois Administrative Procedure Act is
22amended by changing Section 5-45 as follows:
 
23    (5 ILCS 100/5-45)  (from Ch. 127, par. 1005-45)

 

 

09800HB3820ham001- 38 -LRB098 15375 OMW 56916 a

1    Sec. 5-45. Emergency rulemaking.
2    (a) "Emergency" means the existence of any situation that
3any agency finds reasonably constitutes a threat to the public
4interest, safety, or welfare.
5    (b) If any agency finds that an emergency exists that
6requires adoption of a rule upon fewer days than is required by
7Section 5-40 and states in writing its reasons for that
8finding, the agency may adopt an emergency rule without prior
9notice or hearing upon filing a notice of emergency rulemaking
10with the Secretary of State under Section 5-70. The notice
11shall include the text of the emergency rule and shall be
12published in the Illinois Register. Consent orders or other
13court orders adopting settlements negotiated by an agency may
14be adopted under this Section. Subject to applicable
15constitutional or statutory provisions, an emergency rule
16becomes effective immediately upon filing under Section 5-65 or
17at a stated date less than 10 days thereafter. The agency's
18finding and a statement of the specific reasons for the finding
19shall be filed with the rule. The agency shall take reasonable
20and appropriate measures to make emergency rules known to the
21persons who may be affected by them.
22    (c) An emergency rule may be effective for a period of not
23longer than 150 days, but the agency's authority to adopt an
24identical rule under Section 5-40 is not precluded. No
25emergency rule may be adopted more than once in any 24 month
26period, except that this limitation on the number of emergency

 

 

09800HB3820ham001- 39 -LRB098 15375 OMW 56916 a

1rules that may be adopted in a 24 month period does not apply
2to (i) emergency rules that make additions to and deletions
3from the Drug Manual under Section 5-5.16 of the Illinois
4Public Aid Code or the generic drug formulary under Section
53.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
6emergency rules adopted by the Pollution Control Board before
7July 1, 1997 to implement portions of the Livestock Management
8Facilities Act, (iii) emergency rules adopted by the Illinois
9Department of Public Health under subsections (a) through (i)
10of Section 2 of the Department of Public Health Act when
11necessary to protect the public's health, (iv) emergency rules
12adopted pursuant to subsection (n) of this Section, (v)
13emergency rules adopted pursuant to subsection (o) of this
14Section, or (vi) emergency rules adopted pursuant to subsection
15(c-5) of this Section. Two or more emergency rules having
16substantially the same purpose and effect shall be deemed to be
17a single rule for purposes of this Section.
18    (c-5) To facilitate the maintenance of the program of group
19health benefits provided to annuitants, survivors, and retired
20employees under the State Employees Group Insurance Act of
211971, rules to alter the contributions to be paid by the State,
22annuitants, survivors, retired employees, or any combination
23of those entities, for that program of group health benefits,
24shall be adopted as emergency rules. The adoption of those
25rules shall be considered an emergency and necessary for the
26public interest, safety, and welfare.

 

 

09800HB3820ham001- 40 -LRB098 15375 OMW 56916 a

1    (d) In order to provide for the expeditious and timely
2implementation of the State's fiscal year 1999 budget,
3emergency rules to implement any provision of Public Act 90-587
4or 90-588 or any other budget initiative for fiscal year 1999
5may be adopted in accordance with this Section by the agency
6charged with administering that provision or initiative,
7except that the 24-month limitation on the adoption of
8emergency rules and the provisions of Sections 5-115 and 5-125
9do not apply to rules adopted under this subsection (d). The
10adoption of emergency rules authorized by this subsection (d)
11shall be deemed to be necessary for the public interest,
12safety, and welfare.
13    (e) In order to provide for the expeditious and timely
14implementation of the State's fiscal year 2000 budget,
15emergency rules to implement any provision of this amendatory
16Act of the 91st General Assembly or any other budget initiative
17for fiscal year 2000 may be adopted in accordance with this
18Section by the agency charged with administering that provision
19or initiative, except that the 24-month limitation on the
20adoption of emergency rules and the provisions of Sections
215-115 and 5-125 do not apply to rules adopted under this
22subsection (e). The adoption of emergency rules authorized by
23this subsection (e) shall be deemed to be necessary for the
24public interest, safety, and welfare.
25    (f) In order to provide for the expeditious and timely
26implementation of the State's fiscal year 2001 budget,

 

 

09800HB3820ham001- 41 -LRB098 15375 OMW 56916 a

1emergency rules to implement any provision of this amendatory
2Act of the 91st General Assembly or any other budget initiative
3for fiscal year 2001 may be adopted in accordance with this
4Section by the agency charged with administering that provision
5or initiative, except that the 24-month limitation on the
6adoption of emergency rules and the provisions of Sections
75-115 and 5-125 do not apply to rules adopted under this
8subsection (f). The adoption of emergency rules authorized by
9this subsection (f) shall be deemed to be necessary for the
10public interest, safety, and welfare.
11    (g) In order to provide for the expeditious and timely
12implementation of the State's fiscal year 2002 budget,
13emergency rules to implement any provision of this amendatory
14Act of the 92nd General Assembly or any other budget initiative
15for fiscal year 2002 may be adopted in accordance with this
16Section by the agency charged with administering that provision
17or initiative, except that the 24-month limitation on the
18adoption of emergency rules and the provisions of Sections
195-115 and 5-125 do not apply to rules adopted under this
20subsection (g). The adoption of emergency rules authorized by
21this subsection (g) shall be deemed to be necessary for the
22public interest, safety, and welfare.
23    (h) In order to provide for the expeditious and timely
24implementation of the State's fiscal year 2003 budget,
25emergency rules to implement any provision of this amendatory
26Act of the 92nd General Assembly or any other budget initiative

 

 

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1for fiscal year 2003 may be adopted in accordance with this
2Section by the agency charged with administering that provision
3or initiative, except that the 24-month limitation on the
4adoption of emergency rules and the provisions of Sections
55-115 and 5-125 do not apply to rules adopted under this
6subsection (h). The adoption of emergency rules authorized by
7this subsection (h) shall be deemed to be necessary for the
8public interest, safety, and welfare.
9    (i) In order to provide for the expeditious and timely
10implementation of the State's fiscal year 2004 budget,
11emergency rules to implement any provision of this amendatory
12Act of the 93rd General Assembly or any other budget initiative
13for fiscal year 2004 may be adopted in accordance with this
14Section by the agency charged with administering that provision
15or initiative, except that the 24-month limitation on the
16adoption of emergency rules and the provisions of Sections
175-115 and 5-125 do not apply to rules adopted under this
18subsection (i). The adoption of emergency rules authorized by
19this subsection (i) shall be deemed to be necessary for the
20public interest, safety, and welfare.
21    (j) In order to provide for the expeditious and timely
22implementation of the provisions of the State's fiscal year
232005 budget as provided under the Fiscal Year 2005 Budget
24Implementation (Human Services) Act, emergency rules to
25implement any provision of the Fiscal Year 2005 Budget
26Implementation (Human Services) Act may be adopted in

 

 

09800HB3820ham001- 43 -LRB098 15375 OMW 56916 a

1accordance with this Section by the agency charged with
2administering that provision, except that the 24-month
3limitation on the adoption of emergency rules and the
4provisions of Sections 5-115 and 5-125 do not apply to rules
5adopted under this subsection (j). The Department of Public Aid
6may also adopt rules under this subsection (j) necessary to
7administer the Illinois Public Aid Code and the Children's
8Health Insurance Program Act. The adoption of emergency rules
9authorized by this subsection (j) shall be deemed to be
10necessary for the public interest, safety, and welfare.
11    (k) In order to provide for the expeditious and timely
12implementation of the provisions of the State's fiscal year
132006 budget, emergency rules to implement any provision of this
14amendatory Act of the 94th General Assembly or any other budget
15initiative for fiscal year 2006 may be adopted in accordance
16with this Section by the agency charged with administering that
17provision or initiative, except that the 24-month limitation on
18the adoption of emergency rules and the provisions of Sections
195-115 and 5-125 do not apply to rules adopted under this
20subsection (k). The Department of Healthcare and Family
21Services may also adopt rules under this subsection (k)
22necessary to administer the Illinois Public Aid Code, the
23Senior Citizens and Disabled Persons Property Tax Relief Act,
24the Senior Citizens and Disabled Persons Prescription Drug
25Discount Program Act (now the Illinois Prescription Drug
26Discount Program Act), and the Children's Health Insurance

 

 

09800HB3820ham001- 44 -LRB098 15375 OMW 56916 a

1Program Act. The adoption of emergency rules authorized by this
2subsection (k) shall be deemed to be necessary for the public
3interest, safety, and welfare.
4    (l) In order to provide for the expeditious and timely
5implementation of the provisions of the State's fiscal year
62007 budget, the Department of Healthcare and Family Services
7may adopt emergency rules during fiscal year 2007, including
8rules effective July 1, 2007, in accordance with this
9subsection to the extent necessary to administer the
10Department's responsibilities with respect to amendments to
11the State plans and Illinois waivers approved by the federal
12Centers for Medicare and Medicaid Services necessitated by the
13requirements of Title XIX and Title XXI of the federal Social
14Security Act. The adoption of emergency rules authorized by
15this subsection (l) shall be deemed to be necessary for the
16public interest, safety, and welfare.
17    (m) In order to provide for the expeditious and timely
18implementation of the provisions of the State's fiscal year
192008 budget, the Department of Healthcare and Family Services
20may adopt emergency rules during fiscal year 2008, including
21rules effective July 1, 2008, in accordance with this
22subsection to the extent necessary to administer the
23Department's responsibilities with respect to amendments to
24the State plans and Illinois waivers approved by the federal
25Centers for Medicare and Medicaid Services necessitated by the
26requirements of Title XIX and Title XXI of the federal Social

 

 

09800HB3820ham001- 45 -LRB098 15375 OMW 56916 a

1Security Act. The adoption of emergency rules authorized by
2this subsection (m) shall be deemed to be necessary for the
3public interest, safety, and welfare.
4    (n) In order to provide for the expeditious and timely
5implementation of the provisions of the State's fiscal year
62010 budget, emergency rules to implement any provision of this
7amendatory Act of the 96th General Assembly or any other budget
8initiative authorized by the 96th General Assembly for fiscal
9year 2010 may be adopted in accordance with this Section by the
10agency charged with administering that provision or
11initiative. The adoption of emergency rules authorized by this
12subsection (n) shall be deemed to be necessary for the public
13interest, safety, and welfare. The rulemaking authority
14granted in this subsection (n) shall apply only to rules
15promulgated during Fiscal Year 2010.
16    (o) In order to provide for the expeditious and timely
17implementation of the provisions of the State's fiscal year
182011 budget, emergency rules to implement any provision of this
19amendatory Act of the 96th General Assembly or any other budget
20initiative authorized by the 96th General Assembly for fiscal
21year 2011 may be adopted in accordance with this Section by the
22agency charged with administering that provision or
23initiative. The adoption of emergency rules authorized by this
24subsection (o) is deemed to be necessary for the public
25interest, safety, and welfare. The rulemaking authority
26granted in this subsection (o) applies only to rules

 

 

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1promulgated on or after the effective date of this amendatory
2Act of the 96th General Assembly through June 30, 2011.
3    (p) In order to provide for the expeditious and timely
4implementation of the provisions of Public Act 97-689,
5emergency rules to implement any provision of Public Act 97-689
6may be adopted in accordance with this subsection (p) by the
7agency charged with administering that provision or
8initiative. The 150-day limitation of the effective period of
9emergency rules does not apply to rules adopted under this
10subsection (p), and the effective period may continue through
11June 30, 2013. The 24-month limitation on the adoption of
12emergency rules does not apply to rules adopted under this
13subsection (p). The adoption of emergency rules authorized by
14this subsection (p) is deemed to be necessary for the public
15interest, safety, and welfare.
16    (q) In order to provide for the expeditious and timely
17implementation of the provisions of Articles 7, 8, 9, 11, and
1812 of this amendatory Act of the 98th General Assembly,
19emergency rules to implement any provision of Articles 7, 8, 9,
2011, and 12 of this amendatory Act of the 98th General Assembly
21may be adopted in accordance with this subsection (q) by the
22agency charged with administering that provision or
23initiative. The 24-month limitation on the adoption of
24emergency rules does not apply to rules adopted under this
25subsection (q). The adoption of emergency rules authorized by
26this subsection (q) is deemed to be necessary for the public

 

 

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1interest, safety, and welfare.
2    (r) In order to provide for the expeditious and timely
3implementation of the Grant Accountability and Transparency
4Act, the Governor's Office of Management and Budget may adopt
5emergency rules to implement the provisions of that Act for a
6period of one year after the effective date of this amendatory
7Act of the 98th General Assembly. Should changes to the rules
8be required by the review mandated by Section 65 of the Grant
9Accountability and Transparency Act, the Governor's Office of
10Management and Budget may adopt such peremptory rules as are
11necessary to comply with changes to corresponding federal
12rules. All other rules that the Governor's Office of Management
13and Budget deems necessary to adopt in connection with the
14Grant Accountability and Transparency Act must proceed through
15the ordinary rule-making process. The adoption of emergency
16rules authorized by this subsection (r) shall be deemed to be
17necessary for the public interest, safety, and welfare.
18(Source: P.A. 97-689, eff. 6-14-12; 97-695, eff. 7-1-12;
1998-104, eff. 7-22-13; 98-463, eff. 8-16-13.)
 
20    Section 505. The Governor's Office of Management and Budget
21Act is amended by changing Section 2 and by adding Sections
222.8, 2.9, and 2.10 as follows:
 
23    (20 ILCS 3005/2)  (from Ch. 127, par. 412)
24    Sec. 2. There is created in the executive office of the

 

 

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1Governor an Office to be known as the Governor's Office of
2Management and Budget. The Office shall be headed by a
3Director, who shall be appointed by the Governor. The functions
4of the Office shall be as prescribed in Sections 2.1 through
52.10 2.7 of this Act.
6(Source: P.A. 93-25, eff. 6-20-03.)
 
7    (20 ILCS 3005/2.8 new)
8    Sec. 2.8. Pursuant to the Grant Accountability and
9Transparency Act, to create, on or before July 1, 2014, a
10centralized grants management unit within the Office. The
11centralized grants management unit shall report directly to the
12Director of the Governor's Office of Management and Budget.
 
13    (20 ILCS 3005/2.9 new)
14    Sec. 2.9. Pursuant to the Grant Accountability and
15Transparency Act, to maintain a list of those individuals and
16entities that are ineligible, either temporarily or
17permanently, to receive an award of grant funds from the State.
 
18    (20 ILCS 3005/2.10 new)
19    Sec. 2.10. To adopt rules on or before December 31, 2015
20necessary to comply with the Grant Accountability and
21Transparency Act.
 
22    (30 ILCS 705/4.2 rep.)

 

 

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1    Section 510. The Illinois Grant Funds Recovery Act is
2amended by repealing Section 4.2.
 
3    Section 515. The Illinois Grant Funds Recovery Act is
4amended by changing Section 15 and by adding Section 16 as
5follows:
 
6    (30 ILCS 705/15)
7    (Section scheduled to be repealed on April 1, 2014)
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
17expert in grant subject matter, and who shall be appointed by
18the Governor, one of whom shall be designated as Chairperson:
19        (1) Department on Aging;
20        (2) Department of Children and Family Services;
21        (3) Department of Healthcare and Family Services;
22        (4) Department of Human Services;
23        (5) Department of Public Health;
24        (6) Criminal Justice Information Authority;

 

 

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1        (7) Department of Commerce and Economic Opportunity;
2        (8) Department of Transportation;
3        (9) Illinois State Board of Education;
4        (10) Illinois Student Assistance Commission;
5        (11)Department of Agriculture;
6        (12) Environmental Protection Agency; and
7        (13) Department of Natural Resources.
8    In addition, a total of 4 representatives of community
9organizations, providers, or associations may be appointed by
10the Departments listed in subsection (b) as follows: 1 member
11may be appointed by the Departments listed in subparagraphs (1)
12through (6); 1 member may be appointed by the Departments
13listed in subparagraphs (7) and (8); 1 member may be appointed
14by the Departments listed in subparagraphs (9) and (10); and 1
15member may be appointed by the Departments listed in
16subparagraphs (11) through (13).
17    Should any of the Departments listed in subparagraphs (1)
18through (13) of subsection (b) deem that additional
19representation by community organizations, providers, or
20associations is necessary, and the Commission as a whole is in
21concurrence with this decision, the Department or Departments
22may appoint additional members, provided, however, that no more
23than a total of 4 such additional members may be appointed to
24the Commission.
25    The Governor may designate representatives of additional
26Departments with grant-making authority to serve as members of

 

 

09800HB3820ham001- 51 -LRB098 15375 OMW 56916 a

1the Commission.
2    (c) The Commission shall also include: a representative of
3the Governor's Office of Management and Budget, appointed by
4the Governor; four members of the General Assembly, one from
5the House Democratic Caucus, one from the House Republican
6Caucus, one from the Senate Democratic Caucus, and one from the
7Senate Republican Caucus, all of which shall be appointed by
8the Governor; the Co-Chairs of the relevant subcommittees
9within the Management Initiative Improvement Committee
10(provided for under Section 1-37a of the Department of Human
11Services Act) may be included as members of the Commission if
12the Commission deems their inclusion necessary for the
13coordination of its efforts.
14    (d) The recommendations in the Commission's report shall
15focus primarily on developing a coordinated, non-redundant
16process for the provision of effective and efficient oversight
17of the selection and monitoring of grant recipients, ensuring
18quality programs, and limiting fraud, waste, and abuse. The
19report shall define the purpose, scope, applicability, and
20responsibilities in the life cycle of a grant, including the
21period before a grant is awarded, the period when a grant is
22awarded, and the period after a grant is awarded, as set forth
23in subsections (e) through (g) of this Section. To the extent
24feasible, the Commission's report shall include necessary
25statutory and rule changes required to implement any proposed
26actions.

 

 

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1    (e) The report shall examine and make recommendations for
2the following with regard to a grant before it is awarded:
3        (1) criteria to define mandatory formula-based grants
4    and discretionary grants;
5        (2) whether three-year discretionary grants should
6    exist in a competitive grant environment;
7        (3) the development of uniform grant applications;
8        (4) the development of uniform budget requirements;
9        (5) the development of pre-qualification requirements
10    of applicants, including the fiscal condition of the
11    organization;
12        (6) the development of minimum requirements of
13    applicant staff to manage and execute grant awards for
14    programmatic and administrative purposes;
15        (7) the development of criteria for requiring the
16    retention of a fiscal agent and for becoming a fiscal
17    agent; and
18        (8) the development of disclosure requirements
19    pertaining to related party status between grantees and
20    grant-making agencies.
21    (f) The report shall examine and make recommendations for
22the following with regard to a grant at the time it is awarded:
23        (1) the development of uniform grant agreements;
24        (2) the development of uniform reporting requirements,
25    including budget-to-actual quarterly reports;
26        (3) the implementation of uniform monitoring,

 

 

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1    including on-site fiscal and administrative control
2    reviews on a risk-based approach to determine the required
3    frequency of monitoring;
4        (4) the development of payment methods, including
5    advance and reconcile, capital advances, and
6    reimbursement;
7        (5) the development of administrative requirements;
8        (6) the development of allowable cost principles;
9        (7) the development of a conditional exemption
10    process;
11        (8) the development of standardized audit
12    requirements;
13        (9) the development of program performance reporting
14    and budgeting for results;
15        (10) the development of record retention and access
16    requirements; and
17        (11) the development of grant termination and
18    enforcement procedures.
19    (g) The report shall examine and make recommendations for
20the following with regard to a grant after it has been awarded:
21        (1) the development of standardized closeout
22    procedures;
23        (2) the development of standardized audit
24    requirements;
25        (3) the development of subsequent grant adjustments
26    and continuing responsibilities;

 

 

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1        (4) the development of a uniform method of grant
2    recovery; and
3        (5) the development of an appeals process.
4    (h) The report shall be filed with the General Assembly by
5January 1, 2014.
6    (i) Definitions. As used in this Section:
7        "Departments" means the agencies, boards, and
8    commissions listed in subparagraph (b) of this Section,
9    including any additional Departments designated by the
10    Governor.
11        "Grant" means an award of financial assistance, the
12    principal purpose of which is to transfer a thing of value
13    from a federal or state agency to a recipient to carry out
14    a public purpose of support or stimulation authorized by a
15    law of the United States or the State of Illinois. A grant
16    is distinguished from a contract, which is used to acquire
17    property or services for the federal or State government's
18    direct benefit or use as defined in Section 210 of Subpart
19    B of federal Office of Management Board Circular A-133.
20    Notwithstanding subparagraph (b) of Section 2 of this Act,
21    fee-for-service purchase of care agreements are grants for
22    purposes of this Section.
23        Technical terms used in subsections (e) through (g)
24    shall have the same meanings as provided for by their usage
25    or definition in federal Office of Management Board
26    Circular A-110.

 

 

09800HB3820ham001- 55 -LRB098 15375 OMW 56916 a

1    (j) The Commission shall operate with no direct costs to
2the State. The Office of the Governor shall coordinate with the
3Departments listed under subsection (b) to provide
4administrative support for the Commission.
5    (k) This Section is repealed on December 31 April 1, 2014.
6(Source: P.A. 98-47, eff. 7-1-13.)
 
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.".