HB3703 101ST GENERAL ASSEMBLY

LRB101 09989 RJF 55091 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3703

Introduced , by Rep. Fred Crespo

SYNOPSIS AS INTRODUCED:

30 ILCS 705/2	from Ch. 127, par. 2302
30 ILCS 705/4	from Ch. 127, par. 2304
30 ILCS 705/6	from Ch. 127, par. 2306
30 ILCS 705/9	from Ch. 127, par. 2309

Amends the Illinois Grant Funds Recovery Act. Modifies the term "grant funds" to allow funds disbursed by the State Comptroller under an appropriation made by the General Assembly to a named entity or person to be considered as grant funds for purposes of the Act. Provides that, at a minimum, a grant agreement must, among other requirements, (1) identify any terms for which a failure to comply may be deemed material non-compliance, and subject grant funds to recovery, and (2) specify any performance levels for which a failure to achieve may result in a determination that grant funds have been misspent and subject to recovery. Provides that a grantor agency or the Attorney General may seek recovery of grant funds when there has been material non-compliance with the grant agreement or when grant funds have been misspent or are being improperly held. Provides that the grantor agency making the grant shall take affirmative and timely action to recover all (currently, all misspent or improperly held) grant funds subject to recovery. Provides that the Attorney General, on his own volition, may act to recover any grant funds which may be recoverable under specified provisions (currently, may act to recover any grant funds which have been misapplied or are being improperly held). Defines terms. Makes conforming changes. Effective immediately.

A BILL FOR

AN ACT concerning finance.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Grant Funds Recovery Act is amended by changing Sections 2, 4, 6, and 9 as follows:

(30 ILCS 705/2) (from Ch. 127, par. 2302)

Sec. 2. Definitions. The following terms when used in this Act shall have the meanings ascribed to them in this Section:

(a) "Grantor agency" is any agency of State government which dispenses grant funds.

(b) "Grant funds" are any public funds dispensed by a grantor agency to any person or entity for obligation, expenditure, or use by that person or entity for a specific purpose or purposes. Funds disbursed by the State Comptroller pursuant to an appropriation made by the General Assembly to a named entity or person are not grant funds for purposes of this Act. Funds disbursed in accordance with a fee for service purchase of care contract are not grant funds for purposes of this Act.

Neither the method by which funds are dispensed whether by contract, agreement, grant subsidy, letter of credit, or any other method nor the purpose for which the funds are used can change the character of funds which otherwise would be considered grant funds as defined in this Section.

(c) "Grantee" means the person or entity which may use grant funds.

(c-5) "Improperly held" means retention of grant funds by a grantee or its subrecipient (i) after the grantor agency has directed the grantee to return the funds pursuant to any authority or right provided to the grantor agency under any statute, rule, or grant agreement, or (ii) in a manner inconsistent with any statute, rule, or grant agreement.

(d) "Institution of higher education" means any institution which is authorized to grant degrees within the State of Illinois.

(e) "Material non-compliance" means when the grantee or its subrecipient has failed to comply with a term of the grant agreement, other than those terms relating to improperly holding or misspending grant funds, that is so significant that the grantor agency's decision to award the grant would have been affected had it foreseen the non-compliance. "Material non-compliance" includes, but shall not be limited to, any act that may be grounds for permanent placement on the Illinois Debarred and Suspended List established under the Grant Accountability and Transparency Act and a violation of any record access, recordkeeping, or audit provisions.

(f) "Misspent" means spent by a grantee or its subrecipient (i) in a manner inconsistent with the terms of any statute, rule, or grant agreement, or (ii) without achieving the performance required by the grant agreement absent compelling mitigating circumstances, as determined by the grantor agency.

(g) "Subrecipient" means a person or entity that receives grant funds from a grantee to carry out part of the grant program. "Subrecipient" does not include a vendor.

(Source: P.A. 86-602.)

(30 ILCS 705/4) (from Ch. 127, par. 2304)

Sec. 4. Grant Application and Agreement Requirements.

(a) Any person or organization, public or private, desiring to receive grant funds must submit a grant application to the appropriate grantor agency. Applications for grant funds shall be made on prescribed forms developed by the grantor agency, and shall include, without being limited to, the following provisions:

(1) the name, address, chief officers, and general description of the applicant;

(2) a general description of the program, project, or use for which grant funding is requested;

(3) such plans, equipment lists, and other documents as may be required to show the type, structure, and general character of the program, project, or use for which grant funding is requested;

(4) cost estimates of developing, constructing, operating, or completing the program, project, or use for which grant funding is requested; and

(5) a program of proposed expenditures for the grant funds.

(b) Grant funds may not be used except pursuant to a written grant agreement, and any disbursement of grant funds without a grant agreement is void. At a minimum, a grant agreement must:

(1) describe the purpose of the grant and be signed by the grantor agency making the grant and all grantees of the grant;

(2) specify how payments shall be made, what constitutes permissible expenditure of the grant funds, and the financial controls applicable to the grant, including, for those grants in excess of $25,000, the filing of quarterly reports describing the progress of the program, project, or use and the expenditure of the grant funds related thereto;

(3) specify the period of time for which the grant is valid and, subject to the limitation of Section 5, the period of time during which grant funds may be expended by the grantee;

(4) contain a provision that any grantees receiving grant funds are required to permit the grantor agency, the Auditor General, or the Attorney General to inspect and audit any books, records, or papers related to the program, project, or use for which grant funds were provided;

(5) contain a provision that all funds remaining at the end of the grant agreement or at the expiration of the period of time grant funds are available for expenditure or obligation by the grantee shall be returned to the State within 45 days; and

(6) contain a provision in which the grantee certifies under oath that all information in the grant agreement is true and correct to the best of the grantee's knowledge, information, and belief; that the funds shall be used only for the purposes described in the grant agreement; and that the award of grant funds is conditioned upon such certification; .

(7) identify any terms for which a failure to comply may be deemed material non-compliance and subject grant funds, or any portion thereof, to recovery; and

(8) specify any performance levels for which a failure to achieve may result in a determination that grant funds, or any portion thereof, have been misspent and subject to recovery.

(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 for the effective date of changes made by P.A. 96-795).)

(30 ILCS 705/6) (from Ch. 127, par. 2306)

Sec. 6. Recovery of Grant Funds. A grantor agency or the Attorney General may seek recovery of grant funds when there has been material non-compliance with the grant agreement or when grant funds have been misspent or are being improperly held. Any grant funds which have been misspent or are being improperly held are subject to recovery by the grantor agency which made the grant or alternatively by the Attorney General. The grantor agency making the grant shall take affirmative and timely action to recover all misspent or improperly held grant funds subject to recovery. In order to effectuate the recovery of such grant funds, the grantor agency making the grant is authorized to use any one or a combination of the following:

(a) offset against existing grants of, or future grants to be made by, the grantor agency making the recovery;

(b) authorize the offset from existing grants or grants to be made by other grantor agencies;

(c) authorize the Comptroller to offset any payment from any funds administered by the Comptroller for payment to the grantee, including, but not limited to, distributions of appropriated funds and payment of refunds;

(d) initiate any debt collection method authorized by law to any private person; or

(e) remove the grantee from any of the grantor agency's programs and forbid the grantee's participation in any such future grant programs for a period not to exceed 2 years.

The provisions of this Section are subject to Section 14.

(Source: P.A. 87-1262.)

(30 ILCS 705/9) (from Ch. 127, par. 2309)

Sec. 9. Recovery of Grant Funds by Attorney General. Except as otherwise provided by Section 14, the Attorney General, on his own volition, may act to recover any grant funds which may be recoverable under Section 6 have been misapplied or are being improperly held and, when doing so, has all the powers of collection established in this Act in addition to any other powers authorized by law or the Constitution.

(Source: P.A. 87-1262.)

Section 99. Effective date. This Act takes effect upon becoming law.