State of Illinois
2007 and 2008


Introduced 2/1/2007, by Rep. John A. Fritchey


New Act

    Creates the Funding Accountability and Transparency Act. Requires the full disclosure of all entities and organizations receiving State funds. Requires the Governor's Office of Management and Budget (GOMB) to establish a searchable website. Creates a pilot program for sub-award data. Requires GOMB to file reports and the Governor to make recommendations to the General Assembly. Contains other provisions. Effective immediately.

LRB095 05220 RCE 25295 b






HB0473 LRB095 05220 RCE 25295 b

1     AN ACT concerning finance.
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4     Section 1. Short title. This Act may be cited as the
5 Funding Accountability and Transparency Act.
6     Section 5. Full Disclosure of entities receiving State
7 funding.
8     (a) Definitions. In this Section:
9         (1) Entity. The term "entity":
10             (A) Includes, whether for-profit or non-profit:
11                 (i) a corporation;
12                 (ii) an association;
13                 (iii) a partnership;
14                 (iv) a limited liability company;
15                 (v) a limited liability partnership;
16                 (vi) a sole proprietorship;
17                 (vii) any other legal business entity;
18                 (viii) any other grantee or contractor that is
19             not excluded by subparagraph (B) or (C); and
20                 (ix) any unit of local government or school
21             district; and
22             (B) on and after January 1, 2009, includes any
23         subcontractor or subgrantee.



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1             (C) Does not include:
2                 (i) an individual recipient of State
3             assistance; or
4                 (ii) a State employee.
5         (2) State award. The term "State award":
6             (A) means State financial assistance and
7         expenditures that include grants, contracts,
8         subgrants, subcontracts, loans, awards, cooperative
9         agreements, purchase orders, task orders, delivery
10         orders, and other forms of financial assistance;
11             (B) does not include individual transactions below
12         $25,000; and
13             (C) before October 1, 2008, does not include credit
14         card transactions.
15         (3) Searchable website. The term "searchable website"
16     means a website that allows the public to:
17             (A) search State funding by any element required by
18         subsection (b)(1);
19             (B) ascertain through a single search the total
20         amount of State funding awarded to an entity, by fiscal
21         year; and
22             (C) download data included in subparagraph (A)
23         included in the outcome from searches.
24     (b) In general:
25         (1) Website. Not later than January 1, 2008, the
26     Governor's Office of Management and Budget shall, in



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1     accordance with this Section, ensure the existence and
2     operation of a single searchable website, accessible by the
3     public at no cost to access, that includes for each State
4     award:
5             (A) the name of the entity receiving the award;
6             (B) the amount of the award;
7             (C) information on the award, including
8         transaction type, funding agency, program source, and
9         an award title descriptive of the purpose of each
10         funding action;
11             (D) the location of the entity receiving the award
12         and the primary location of performance under the
13         award, including the county, township, municipality,
14         Legislative District, and Representative District;
15             (E) a unique identifier of the entity receiving the
16         award and of the parent entity of the recipient, should
17         the entity be owned by another entity; and
18             (F) any other relevant information specified by
19         the Governor's Office of Management and Budget.
20         (2) Scope of data. The website shall include data for
21     fiscal year 2007 and each fiscal year thereafter.
22         (3) Designation of agencies. The Director of the
23     Governor's Office of Management and Budget is authorized to
24     designate one or more State agencies to participate in the
25     development, establishment, operation, and support of the
26     single website. In the initial designation, or in



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1     subsequent instructions and guidance, the Director may
2     specify the scope of the responsibilities of each agency.
3         (4) Agency responsibilities. State agencies shall
4     comply with the instructions and guidance issued by the
5     Director of the Governor's Office of Management and Budget
6     under paragraph (3), and shall provide appropriate
7     assistance to the Director upon request, so as to assist
8     the Director in ensuring the existence and operation of the
9     single website.
10     (c) Website. The website established under this Section:
11         (1) may use any other existing sources of data if these
12     data sources are searchable through the website and can be
13     accessed in a single search;
14         (2) shall not be considered in compliance if it
15     hyperlinks to other existing websites or sources of data
16     and the result is that the information elements required in
17     subsection (b)(1) cannot be searched electronically by
18     field in a single search;
19         (3) shall provide an opportunity for the public to
20     provide input about the utility of the site and
21     recommendations for improvements; and
22         (4) shall be updated not later than 30 days after the
23     award of any State award requiring a posting.
24     (d) Sub-award data.
25         (1) Pilot program.
26             (A) In general. Not later than July 1, 2007, the



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1         Director of the Governor's Office of Management and
2         Budget shall commence a pilot program to:
3                 (i) test the collection and accession of data
4             about subgrants and subcontracts;
5                 (ii) determine how to implement a sub-award
6             reporting program across State government,
7             including a reporting system under which the
8             entity issuing a sub-grant or subcontract is
9             responsible for fulfilling the sub-award reporting
10             requirement; and
11                 (iii) a mechanism for collecting and
12             incorporating agency and public feedback on the
13             design and utility of the website.
14             (B) Termination. The pilot program under
15         subparagraph (A) shall terminate not later than
16         January 1, 2009.
17         (2) Reporting of sub-awards.
18             (A) In general. Based on the pilot program
19     conducted under paragraph (1) and, except as provided in
20     subparagraph (B), not later than January 1, 2009, the
21     Director of the Governor's Office of Management and Budget:
22                 (i) shall ensure that data regarding
23             sub-awards are disclosed in the same manner as data
24             regarding other State awards, as required by this
25             Act;
26                 (ii) shall ensure that the method for



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1             collecting and distributing data about sub-awards
2             under clause (i):
3                     (I) minimizes burdens imposed on State
4                 award recipients and sub-award recipients;
5                     (II) allows State award recipients and
6                 sub-award recipients to allocate reasonable
7                 costs for the collection and reporting of
8                 sub-award data as indirect costs; and
9                     (III) establishes cost-effective
10                 requirements for collecting sub-award data
11                 under block grants, formula grants, and other
12                 types of assistance to units of local
13                 governments and school districts.
14             (B) Extension of deadline. For sub-award
15         recipients that receive State funds through units of
16         local government or school districts, the Director of
17         the Governor's Office of Management and Budget may
18         extend the deadline for ensuring that data regarding
19         such sub-awards are disclosed in the same manner as
20         data regarding other State awards for a period not to
21         exceed 18 months if the Director determines that
22         compliance would impose an undue burden on the
23         sub-award recipient.
24     (e) Exception. Any entity that demonstrates to the Director
25 of the Governor's Office of Management and Budget that the
26 gross income, from all sources, for that entity did not exceed



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1 $300,000 in the previous tax year of that entity shall be
2 exempt from the requirement to report sub-awards under
3 subsection (d) until the Director determines that the
4 imposition of that reporting requirements will not cause an
5 undue burden on that entity.
6     (f) Construction. Nothing in this Act shall prohibit the
7 Governor's Office of Management and Budget from including
8 through the website established under this Section access to
9 data that is publicly available in any other federal database.
10     (g) Report:
11         (1) In general. The Director of the Governor's Office
12     of Management and Budget shall submit to Governor an annual
13     report regarding the implementation of the website
14     established under this Section.
15         (2) Contents. Each report submitted under paragraph
16     (1) shall include:
17             (A) data regarding the usage and public feedback on
18         the utility of the site (including recommendations for
19         improving data quality and collection);
20             (B) an assessment of the reporting burden placed on
21         State award and sub-award recipients; and
22             (C) an explanation of any extension of the
23         sub-award reporting deadline under subsection
24         (d)(2)(B), if applicable.
25         (3) Recommendations. The Governor shall review the
26     report of the Governor's Office of Management and Budget



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1     and in each even-numbered year make recommendations to the
2     General Assembly on how to improve the website.
3         (4) Publication. The Director of the Governor's Office
4     of Management and Budget shall make each report submitted
5     under paragraph (1) publicly available on the website
6     established under this Section.
7     Section 10. Classified information. Nothing in this Act
8 shall require the disclosure of classified information.
9     Section 99. Effective date. This Act takes effect upon
10 becoming law.