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Full Text of SB2764  99th General Assembly

SB2764 99TH GENERAL ASSEMBLY

  
  

 


 
99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2764

 

Introduced 2/17/2016, by Sen. Jason A. Barickman

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the State Officials and Employees Ethics Act. Provides that during the period beginning September 1 of the year of a general election and ending the day after the general election, the proper name or image of any executive branch constitutional officer or member of the General Assembly shall not be included in a public announcement on behalf of an executive branch constitutional officer, member of the General Assembly, or State agency related to any contract or grant awarded by a State agency. Amends the Finance Act. Provides that appropriated funds may only be expended during the fiscal year for which they were appropriated. Provides that if any State agency receives a grant or contract from itself from appropriated funds, the recipient agency shall be restricted in the expenditure of these funds to the period during which the grantor agency was so restricted. Amends the Illinois Grant Funds Recovery Act. Provides that the Governor's Office of Management and Budget shall convene a subcommittee of the Illinois Single Audit Commission to provide recommendations to the General Assembly regarding the adoption of legislation. Amends the Grant Accountability and Transparency Act. Sets forth provisions concerning the stop payment system. Provides requirements for documentation, certification, and reporting of awarded grants. Sets forth provisions concerning the travel costs incurred by the employees of the recipient or subrecipient of an awarded grant who are in travel status on official business of the recipient or subrecipient. Makes conforming changes in the Governor's Office of Management and Budget Act and the State Comptroller Act. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2764LRB099 18570 RJF 42949 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Officials and Employees Ethics Act is
5amended by changing Section 5-20 as follows:
 
6    (5 ILCS 430/5-20)
7    Sec. 5-20. Public service announcements; other promotional
8material.
9    (a) Beginning January 1, 2004, no public service
10announcement or advertisement that is on behalf of any State
11administered program and contains the proper name, image, or
12voice of any executive branch constitutional officer or member
13of the General Assembly shall be (i) broadcast or aired on
14radio or television, (ii) printed in a commercial newspaper or
15a commercial magazine, or (iii) displayed on a billboard or
16electronic message board at any time.
17    (b) The proper name or image of any executive branch
18constitutional officer or member of the General Assembly may
19not appear on any (i) bumper stickers, (ii) commercial
20billboards, (iii) lapel pins or buttons, (iv) magnets, (v)
21stickers, and (vi) other similar promotional items, that are
22not in furtherance of the person's official State duties or
23governmental and public service functions, if designed, paid

 

 

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1for, prepared, or distributed using public dollars. This
2subsection does not apply to stocks of items existing on the
3effective date of this amendatory Act of the 93rd General
4Assembly.
5    (b-5) During the period beginning September 1 of the year
6of a general election and ending the day after the general
7election, the proper name or image of any executive branch
8constitutional officer or member of the General Assembly shall
9not be included in a public announcement on behalf of an
10officer, member, or State agency related to any contract or
11grant awarded by a State agency. Nothing in this subsection
12(b-5) prohibits a State agency from issuing notification of the
13award or grant of a contract, provided the notification does
14not include the proper name or image of any executive branch
15constitutional officer or member of the General Assembly. This
16subsection (b-5) does not prohibit an executive branch
17constitutional officer or member of the General Assembly from
18attending any public or private event associated with the award
19or grant of contract or from being included on a list of
20attendees disseminated to the public.
21    (c) This Section does not apply to communications funded
22through expenditures required to be reported under Article 9 of
23the Election Code.
24(Source: P.A. 97-13, eff. 6-16-11.)
 
25    Section 10. The State Comptroller Act is amended by adding

 

 

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1Section 28 as follows:
 
2    (15 ILCS 405/28 new)
3    Sec. 28. Stop payment system.
4    (a) In this Section, "recipient", "State grant-making
5agency", and "subrecipient" have the same definition as that in
6Section 15 of the Grant Accountability and Transparency Act.
7    (b) On or before July 1, 2017, the Office of the
8Comptroller shall, in conjunction with the Governor's Office of
9Management and Budget, adopt rules pertaining to the following:
10        (1) Factors to be considered in determining whether to
11    issue a stop payment order;
12        (2) Factors to be considered in determining whether a
13    stop payment order should be lifted; and
14        (3) Procedures for notification to the recipient or
15    subrecipient of the issuance of a stop payment order, the
16    lifting of a stop payment order, and any other related
17    information.
18    (c) On or before July 1, 2018, the Office of the
19Comptroller shall have established a stop payment system that
20will cause the temporary or permanent cessation of payments to
21a recipient or subrecipient in specified circumstances. Such a
22temporary or permanent cessation of payments will occur
23pursuant to a stop payment order issued by a State grant-making
24agency and implemented by the Office of the Comptroller.
25    (d) The Office of the Comptroller shall maintain a file

 

 

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1pertaining to all stop payment orders which shall include, at a
2minimum:
3        (1) The notice to the recipient or subrecipient that a
4    stop payment order has been issued. The notice shall
5    include:
6            (A) The name of the grant.
7            (B) The grant number.
8            (C) The name of the State agency that issued the
9        grant.
10            (D) The reason for the stop payment order.
11            (E) Notification that the stop payment order
12        applies to all grants and contracts issued by the
13        State.
14            (F) Any other relevant information.
15        (2) The order lifting the stop payment order, if
16    applicable.
 
17    Section 15. The Governor's Office of Management and Budget
18Act is amended by adding Section 2.11 and 2.12 as follows:
 
19    (20 ILCS 3005/2.11 new)
20    Sec. 2.11. Stop payment orders.
21    (a) In this Section, "recipient", "State grant-making
22agency", and "subrecipient" have the same definition as that in
23Section 15 of the Grant Accountability and Transparency Act.
24    (b) Pursuant to the Grant Accountability and Transparency

 

 

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1Act, the Governor's Office of Management and Budget shall adopt
2rules pertaining to the issuance of stop payment orders that
3will cause the temporary or permanent cessation of payments to
4a recipient or subrecipient in specified circumstances. Stop
5payment orders shall be issued by a State grant-making agency
6and implemented by the Office of the Comptroller.
 
7    (20 ILCS 3005/2.12 new)
8    Sec. 2.12. Subcommittee recommendations.
9    Pursuant to Section 15.5 of the Grant Funds Recovery Act,
10the Governor's Office of Management and Budget, in conjunction
11with the Illinois Single Audit Commission, shall convene a
12subcommittee of the Commission to research and provide
13recommendations to the General Assembly regarding the adoption
14of legislation, in accordance with the federal Improper
15Payments Elimination and Recovery Improvement Act of 2012. The
16subcommittee's recommendations shall be included in the Annual
17Report of the Commission to be submitted to the General
18Assembly on January 1, 2017.
 
19    Section 20. The State Finance Act is amended by changing
20Sections 25 and 35 as follows:
 
21    (30 ILCS 105/25)  (from Ch. 127, par. 161)
22    Sec. 25. Fiscal year limitations.
23    (a) All appropriations shall be available for expenditure

 

 

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1for the fiscal year or for a lesser period if the Act making
2that appropriation so specifies. A deficiency or emergency
3appropriation shall be available for expenditure only through
4June 30 of the year when the Act making that appropriation is
5enacted unless that Act otherwise provides. Except as otherwise
6provided in this section, appropriated funds may only be
7expended during the fiscal year for which they were
8appropriated (including any applicable lapse period),
9regardless of whether those funds are subject to interfund
10transfers or are deposited for use in a non-appropriated fund,
11including those made through the use of vouchers or drafts, or
12warrants ordered by the State Comptroller and paid by the
13Treasurer. For purposes of this Section, "interfund transfer"
14means the transfer of monies from one fund listed in the State
15Treasury to another fund. An "interfund transfer" shall not be
16considered an expenditure for purposes of this Section.
17    (b) Outstanding liabilities as of June 30, payable from
18appropriations which have otherwise expired, may be paid out of
19the expiring appropriations during the 2-month period ending at
20the close of business on August 31. Any service involving
21professional or artistic skills or any personal services by an
22employee whose compensation is subject to income tax
23withholding must be performed as of June 30 of the fiscal year
24in order to be considered an "outstanding liability as of June
2530" that is thereby eligible for payment out of the expiring
26appropriation.

 

 

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1    (b-1) However, payment of tuition reimbursement claims
2under Section 14-7.03 or 18-3 of the School Code may be made by
3the State Board of Education from its appropriations for those
4respective purposes for any fiscal year, even though the claims
5reimbursed by the payment may be claims attributable to a prior
6fiscal year, and payments may be made at the direction of the
7State Superintendent of Education from the fund from which the
8appropriation is made without regard to any fiscal year
9limitations, except as required by subsection (j) of this
10Section. Beginning on June 30, 2021, payment of tuition
11reimbursement claims under Section 14-7.03 or 18-3 of the
12School Code as of June 30, payable from appropriations that
13have otherwise expired, may be paid out of the expiring
14appropriation during the 4-month period ending at the close of
15business on October 31.
16    (b-2) All outstanding liabilities as of June 30, 2010,
17payable from appropriations that would otherwise expire at the
18conclusion of the lapse period for fiscal year 2010, and
19interest penalties payable on those liabilities under the State
20Prompt Payment Act, may be paid out of the expiring
21appropriations until December 31, 2010, without regard to the
22fiscal year in which the payment is made, as long as vouchers
23for the liabilities are received by the Comptroller no later
24than August 31, 2010.
25    (b-2.5) All outstanding liabilities as of June 30, 2011,
26payable from appropriations that would otherwise expire at the

 

 

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1conclusion of the lapse period for fiscal year 2011, and
2interest penalties payable on those liabilities under the State
3Prompt Payment Act, may be paid out of the expiring
4appropriations until December 31, 2011, without regard to the
5fiscal year in which the payment is made, as long as vouchers
6for the liabilities are received by the Comptroller no later
7than August 31, 2011.
8    (b-2.6) All outstanding liabilities as of June 30, 2012,
9payable from appropriations that would otherwise expire at the
10conclusion of the lapse period for fiscal year 2012, and
11interest penalties payable on those liabilities under the State
12Prompt Payment Act, may be paid out of the expiring
13appropriations until December 31, 2012, without regard to the
14fiscal year in which the payment is made, as long as vouchers
15for the liabilities are received by the Comptroller no later
16than August 31, 2012.
17    (b-2.7) For fiscal years 2012, 2013, and 2014, interest
18penalties payable under the State Prompt Payment Act associated
19with a voucher for which payment is issued after June 30 may be
20paid out of the next fiscal year's appropriation. The future
21year appropriation must be for the same purpose and from the
22same fund as the original payment. An interest penalty voucher
23submitted against a future year appropriation must be submitted
24within 60 days after the issuance of the associated voucher,
25and the Comptroller must issue the interest payment within 60
26days after acceptance of the interest voucher.

 

 

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1    (b-3) Medical payments may be made by the Department of
2Veterans' Affairs from its appropriations for those purposes
3for any fiscal year, without regard to the fact that the
4medical services being compensated for by such payment may have
5been rendered in a prior fiscal year, except as required by
6subsection (j) of this Section. Beginning on June 30, 2021,
7medical payments payable from appropriations that have
8otherwise expired may be paid out of the expiring appropriation
9during the 4-month period ending at the close of business on
10October 31.
11    (b-4) Medical payments and child care payments may be made
12by the Department of Human Services (as successor to the
13Department of Public Aid) from appropriations for those
14purposes for any fiscal year, without regard to the fact that
15the medical or child care services being compensated for by
16such payment may have been rendered in a prior fiscal year; and
17payments may be made at the direction of the Department of
18Healthcare and Family Services (or successor agency) from the
19Health Insurance Reserve Fund without regard to any fiscal year
20limitations, except as required by subsection (j) of this
21Section. Beginning on June 30, 2021, medical and child care
22payments made by the Department of Human Services and payments
23made at the discretion of the Department of Healthcare and
24Family Services (or successor agency) from the Health Insurance
25Reserve Fund and payable from appropriations that have
26otherwise expired may be paid out of the expiring appropriation

 

 

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1during the 4-month period ending at the close of business on
2October 31.
3    (b-5) Medical payments may be made by the Department of
4Human Services from its appropriations relating to substance
5abuse treatment services for any fiscal year, without regard to
6the fact that the medical services being compensated for by
7such payment may have been rendered in a prior fiscal year,
8provided the payments are made on a fee-for-service basis
9consistent with requirements established for Medicaid
10reimbursement by the Department of Healthcare and Family
11Services, except as required by subsection (j) of this Section.
12Beginning on June 30, 2021, medical payments made by the
13Department of Human Services relating to substance abuse
14treatment services payable from appropriations that have
15otherwise expired may be paid out of the expiring appropriation
16during the 4-month period ending at the close of business on
17October 31.
18    (b-6) Additionally, payments may be made by the Department
19of Human Services from its appropriations, or any other State
20agency from its appropriations with the approval of the
21Department of Human Services, from the Immigration Reform and
22Control Fund for purposes authorized pursuant to the
23Immigration Reform and Control Act of 1986, without regard to
24any fiscal year limitations, except as required by subsection
25(j) of this Section. Beginning on June 30, 2021, payments made
26by the Department of Human Services from the Immigration Reform

 

 

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1and Control Fund for purposes authorized pursuant to the
2Immigration Reform and Control Act of 1986 payable from
3appropriations that have otherwise expired may be paid out of
4the expiring appropriation during the 4-month period ending at
5the close of business on October 31.
6    (b-7) Payments may be made in accordance with a plan
7authorized by paragraph (11) or (12) of Section 405-105 of the
8Department of Central Management Services Law from
9appropriations for those payments without regard to fiscal year
10limitations.
11    (b-8) Reimbursements to eligible airport sponsors for the
12construction or upgrading of Automated Weather Observation
13Systems may be made by the Department of Transportation from
14appropriations for those purposes for any fiscal year, without
15regard to the fact that the qualification or obligation may
16have occurred in a prior fiscal year, provided that at the time
17the expenditure was made the project had been approved by the
18Department of Transportation prior to June 1, 2012 and, as a
19result of recent changes in federal funding formulas, can no
20longer receive federal reimbursement.
21    (b-9) Medical payments not exceeding $150,000,000 may be
22made by the Department on Aging from its appropriations
23relating to the Community Care Program for fiscal year 2014,
24without regard to the fact that the medical services being
25compensated for by such payment may have been rendered in a
26prior fiscal year, provided the payments are made on a

 

 

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1fee-for-service basis consistent with requirements established
2for Medicaid reimbursement by the Department of Healthcare and
3Family Services, except as required by subsection (j) of this
4Section.
5    (c) Further, payments may be made by the Department of
6Public Health and the Department of Human Services (acting as
7successor to the Department of Public Health under the
8Department of Human Services Act) from their respective
9appropriations for grants for medical care to or on behalf of
10premature and high-mortality risk infants and their mothers and
11for grants for supplemental food supplies provided under the
12United States Department of Agriculture Women, Infants and
13Children Nutrition Program, for any fiscal year without regard
14to the fact that the services being compensated for by such
15payment may have been rendered in a prior fiscal year, except
16as required by subsection (j) of this Section. Beginning on
17June 30, 2021, payments made by the Department of Public Health
18and the Department of Human Services from their respective
19appropriations for grants for medical care to or on behalf of
20premature and high-mortality risk infants and their mothers and
21for grants for supplemental food supplies provided under the
22United States Department of Agriculture Women, Infants and
23Children Nutrition Program payable from appropriations that
24have otherwise expired may be paid out of the expiring
25appropriations during the 4-month period ending at the close of
26business on October 31.

 

 

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1    (d) The Department of Public Health and the Department of
2Human Services (acting as successor to the Department of Public
3Health under the Department of Human Services Act) shall each
4annually submit to the State Comptroller, Senate President,
5Senate Minority Leader, Speaker of the House, House Minority
6Leader, and the respective Chairmen and Minority Spokesmen of
7the Appropriations Committees of the Senate and the House, on
8or before December 31, a report of fiscal year funds used to
9pay for services provided in any prior fiscal year. This report
10shall document by program or service category those
11expenditures from the most recently completed fiscal year used
12to pay for services provided in prior fiscal years.
13    (e) The Department of Healthcare and Family Services, the
14Department of Human Services (acting as successor to the
15Department of Public Aid), and the Department of Human Services
16making fee-for-service payments relating to substance abuse
17treatment services provided during a previous fiscal year shall
18each annually submit to the State Comptroller, Senate
19President, Senate Minority Leader, Speaker of the House, House
20Minority Leader, the respective Chairmen and Minority
21Spokesmen of the Appropriations Committees of the Senate and
22the House, on or before November 30, a report that shall
23document by program or service category those expenditures from
24the most recently completed fiscal year used to pay for (i)
25services provided in prior fiscal years and (ii) services for
26which claims were received in prior fiscal years.

 

 

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1    (f) The Department of Human Services (as successor to the
2Department of Public Aid) shall annually submit to the State
3Comptroller, Senate President, Senate Minority Leader, Speaker
4of the House, House Minority Leader, and the respective
5Chairmen and Minority Spokesmen of the Appropriations
6Committees of the Senate and the House, on or before December
731, a report of fiscal year funds used to pay for services
8(other than medical care) provided in any prior fiscal year.
9This report shall document by program or service category those
10expenditures from the most recently completed fiscal year used
11to pay for services provided in prior fiscal years.
12    (g) In addition, each annual report required to be
13submitted by the Department of Healthcare and Family Services
14under subsection (e) shall include the following information
15with respect to the State's Medicaid program:
16        (1) Explanations of the exact causes of the variance
17    between the previous year's estimated and actual
18    liabilities.
19        (2) Factors affecting the Department of Healthcare and
20    Family Services' liabilities, including but not limited to
21    numbers of aid recipients, levels of medical service
22    utilization by aid recipients, and inflation in the cost of
23    medical services.
24        (3) The results of the Department's efforts to combat
25    fraud and abuse.
26    (h) As provided in Section 4 of the General Assembly

 

 

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1Compensation Act, any utility bill for service provided to a
2General Assembly member's district office for a period
3including portions of 2 consecutive fiscal years may be paid
4from funds appropriated for such expenditure in either fiscal
5year.
6    (i) An agency which administers a fund classified by the
7Comptroller as an internal service fund may issue rules for:
8        (1) billing user agencies in advance for payments or
9    authorized inter-fund transfers based on estimated charges
10    for goods or services;
11        (2) issuing credits, refunding through inter-fund
12    transfers, or reducing future inter-fund transfers during
13    the subsequent fiscal year for all user agency payments or
14    authorized inter-fund transfers received during the prior
15    fiscal year which were in excess of the final amounts owed
16    by the user agency for that period; and
17        (3) issuing catch-up billings to user agencies during
18    the subsequent fiscal year for amounts remaining due when
19    payments or authorized inter-fund transfers received from
20    the user agency during the prior fiscal year were less than
21    the total amount owed for that period.
22User agencies are authorized to reimburse internal service
23funds for catch-up billings by vouchers drawn against their
24respective appropriations for the fiscal year in which the
25catch-up billing was issued or by increasing an authorized
26inter-fund transfer during the current fiscal year. For the

 

 

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1purposes of this Act, "inter-fund transfers" means transfers
2without the use of the voucher-warrant process, as authorized
3by Section 9.01 of the State Comptroller Act.
4    (i-1) Beginning on July 1, 2021, all outstanding
5liabilities, not payable during the 4-month lapse period as
6described in subsections (b-1), (b-3), (b-4), (b-5), (b-6), and
7(c) of this Section, that are made from appropriations for that
8purpose for any fiscal year, without regard to the fact that
9the services being compensated for by those payments may have
10been rendered in a prior fiscal year, are limited to only those
11claims that have been incurred but for which a proper bill or
12invoice as defined by the State Prompt Payment Act has not been
13received by September 30th following the end of the fiscal year
14in which the service was rendered.
15    (j) Notwithstanding any other provision of this Act, the
16aggregate amount of payments to be made without regard for
17fiscal year limitations as contained in subsections (b-1),
18(b-3), (b-4), (b-5), (b-6), and (c) of this Section, and
19determined by using Generally Accepted Accounting Principles,
20shall not exceed the following amounts:
21        (1) $6,000,000,000 for outstanding liabilities related
22    to fiscal year 2012;
23        (2) $5,300,000,000 for outstanding liabilities related
24    to fiscal year 2013;
25        (3) $4,600,000,000 for outstanding liabilities related
26    to fiscal year 2014;

 

 

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1        (4) $4,000,000,000 for outstanding liabilities related
2    to fiscal year 2015;
3        (5) $3,300,000,000 for outstanding liabilities related
4    to fiscal year 2016;
5        (6) $2,600,000,000 for outstanding liabilities related
6    to fiscal year 2017;
7        (7) $2,000,000,000 for outstanding liabilities related
8    to fiscal year 2018;
9        (8) $1,300,000,000 for outstanding liabilities related
10    to fiscal year 2019;
11        (9) $600,000,000 for outstanding liabilities related
12    to fiscal year 2020; and
13        (10) $0 for outstanding liabilities related to fiscal
14    year 2021 and fiscal years thereafter.
15    (k) Department of Healthcare and Family Services Medical
16Assistance Payments.
17        (1) Definition of Medical Assistance.
18            For purposes of this subsection, the term "Medical
19        Assistance" shall include, but not necessarily be
20        limited to, medical programs and services authorized
21        under Titles XIX and XXI of the Social Security Act,
22        the Illinois Public Aid Code, the Children's Health
23        Insurance Program Act, the Covering ALL KIDS Health
24        Insurance Act, the Long Term Acute Care Hospital
25        Quality Improvement Transfer Program Act, and medical
26        care to or on behalf of persons suffering from chronic

 

 

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1        renal disease, persons suffering from hemophilia, and
2        victims of sexual assault.
3        (2) Limitations on Medical Assistance payments that
4    may be paid from future fiscal year appropriations.
5            (A) The maximum amounts of annual unpaid Medical
6        Assistance bills received and recorded by the
7        Department of Healthcare and Family Services on or
8        before June 30th of a particular fiscal year
9        attributable in aggregate to the General Revenue Fund,
10        Healthcare Provider Relief Fund, Tobacco Settlement
11        Recovery Fund, Long-Term Care Provider Fund, and the
12        Drug Rebate Fund that may be paid in total by the
13        Department from future fiscal year Medical Assistance
14        appropriations to those funds are: $700,000,000 for
15        fiscal year 2013 and $100,000,000 for fiscal year 2014
16        and each fiscal year thereafter.
17            (B) Bills for Medical Assistance services rendered
18        in a particular fiscal year, but received and recorded
19        by the Department of Healthcare and Family Services
20        after June 30th of that fiscal year, may be paid from
21        either appropriations for that fiscal year or future
22        fiscal year appropriations for Medical Assistance.
23        Such payments shall not be subject to the requirements
24        of subparagraph (A).
25            (C) Medical Assistance bills received by the
26        Department of Healthcare and Family Services in a

 

 

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1        particular fiscal year, but subject to payment amount
2        adjustments in a future fiscal year may be paid from a
3        future fiscal year's appropriation for Medical
4        Assistance. Such payments shall not be subject to the
5        requirements of subparagraph (A).
6            (D) Medical Assistance payments made by the
7        Department of Healthcare and Family Services from
8        funds other than those specifically referenced in
9        subparagraph (A) may be made from appropriations for
10        those purposes for any fiscal year without regard to
11        the fact that the Medical Assistance services being
12        compensated for by such payment may have been rendered
13        in a prior fiscal year. Such payments shall not be
14        subject to the requirements of subparagraph (A).
15        (3) Extended lapse period for Department of Healthcare
16    and Family Services Medical Assistance payments.
17    Notwithstanding any other State law to the contrary,
18    outstanding Department of Healthcare and Family Services
19    Medical Assistance liabilities, as of June 30th, payable
20    from appropriations which have otherwise expired, may be
21    paid out of the expiring appropriations during the 6-month
22    period ending at the close of business on December 31st.
23    (l) The changes to this Section made by Public Act 97-691
24shall be effective for payment of Medical Assistance bills
25incurred in fiscal year 2013 and future fiscal years. The
26changes to this Section made by Public Act 97-691 shall not be

 

 

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1applied to Medical Assistance bills incurred in fiscal year
22012 or prior fiscal years.
3    (m) The Comptroller must issue payments against
4outstanding liabilities that were received prior to the lapse
5period deadlines set forth in this Section as soon thereafter
6as practical, but no payment may be issued after the 4 months
7following the lapse period deadline without the signed
8authorization of the Comptroller and the Governor.
9(Source: P.A. 97-75, eff. 6-30-11; 97-333, eff. 8-12-11;
1097-691, eff. 7-1-12; 97-732, eff. 6-30-12; 97-932, eff.
118-10-12; 98-8, eff. 5-3-13; 98-24, eff. 6-19-13; 98-215, eff.
128-9-13; 98-463, eff. 8-16-13; 98-756, eff. 7-16-14.)
 
13    (30 ILCS 105/35)  (from Ch. 127, par. 167.03)
14    Sec. 35. As used in this Section, "state agency" is defined
15as provided in the Illinois State Auditing Act, except that
16this Section does not apply to state colleges and universities,
17the Illinois Mathematics and Science Academy, and their
18respective governing boards.
19    When any State agency receives a grant or contract from
20itself or another State agency from appropriated funds the
21recipient agency shall be restricted in the expenditure of
22these funds to the period during which the grantor agency was
23so restricted and to the terms and conditions under which such
24other agency received the appropriation, and to the terms,
25conditions and limitations of the appropriations to the other

 

 

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1agency. For purposes of this Section, "interfund transfer"
2means the transfer of monies from one fund listed in the State
3Treasury to another fund. An "interfund transfer" shall not be
4considered an expenditure for purposes of this Section. No
5State agency may accept or expend funds under a grant or
6contract for any purpose, program or activity not within the
7scope of the agency's powers and duties under Illinois law.
8(Source: P.A. 88-9.)
 
9    Section 25. The Illinois Grant Funds Recovery Act is
10amended by adding Section 15.5 as follows:
 
11    (30 ILCS 705/15.5 new)
12    Sec. 15.5. Recommendations of the Illinois Single Audit
13Commission regarding the elimination and recovery of improper
14payments. The Illinois Single Audit Commission, in conjunction
15with the Governor's Office of Management and Budget, shall
16convene a subcommittee of the Commission to research and
17provide recommendations to the General Assembly regarding the
18adoption of legislation in accordance with the federal Improper
19Payments Elimination and Recovery Improvement Act of 2012. The
20subcommittee's recommendations shall be included in the Annual
21Report of the Commission to be submitted to the General
22Assembly on January 1, 2017.
 
23    Section 30. The Grant Accountability and Transparency Act

 

 

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1is amended by changing Sections 15, 50, and 55 and by adding
2Sections 105, 110, 115, 120, 125, and 130 as follows:
 
3    (30 ILCS 708/15)
4    (Section scheduled to be repealed on July 16, 2019)
5    Sec. 15. Definitions. As used in this Act:
6    "Allowable cost" means a cost allowable to a project if:
7        (1) the costs are reasonable and necessary for the
8    performance of the award;
9        (2) the costs are allocable to the specific project;
10        (3) the costs are treated consistently in like
11    circumstances to both federally-financed and other
12    activities of the non-federal entity;
13        (4) the costs conform to any limitations of the cost
14    principles or the sponsored agreement;
15        (5) the costs are accorded consistent treatment; a cost
16    may not be assigned to a State or federal award as a direct
17    cost if any other cost incurred for the same purpose in
18    like circumstances has been allocated to the award as an
19    indirect cost;
20        (6) the costs are determined to be in accordance with
21    generally accepted accounting principles;
22        (7) the costs are not included as a cost or used to
23    meet federal cost-sharing or matching requirements of any
24    other program in either the current or prior period;
25        (8) the costs of one State or federal grant are not

 

 

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

 

 

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

 

 

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1200.513(a).
2    "Contract" means a legal instrument by which a non-federal
3entity purchases property or services needed to carry out the
4project or program under an award. "Contract" does not include
5a legal instrument, even if the non-federal entity considers it
6a contract, when the substance of the transaction meets the
7definition of an award or subaward.
8    "Contractor" means an entity that receives a contract.
9    "Cooperative agreement" means a legal instrument of
10financial assistance between an awarding agency or
11pass-through entity and a non-federal entity that:
12        (1) is used to enter into a relationship with the
13    principal purpose of transferring anything of value from
14    the awarding agency or pass-through entity to the
15    non-federal entity to carry out a public purpose authorized
16    by law, but is not used to acquire property or services for
17    the awarding agency's or pass-through entity's direct
18    benefit or use; and
19        (2) is distinguished from a grant in that it provides
20    for substantial involvement between the awarding agency or
21    pass-through entity and the non-federal entity in carrying
22    out the activity contemplated by the award.
23    "Cooperative agreement" does not include a cooperative
24research and development agreement, nor an agreement that
25provides only direct cash assistance to an individual, a
26subsidy, a loan, a loan guarantee, or insurance.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB2764- 30 -LRB099 18570 RJF 42949 b

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

 

 

SB2764- 31 -LRB099 18570 RJF 42949 b

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

 

 

SB2764- 32 -LRB099 18570 RJF 42949 b

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

 

 

SB2764- 33 -LRB099 18570 RJF 42949 b

1are ineligible, either temporarily or permanently, from
2receiving an award of grant funds from the State.
3    "Indian tribe" (or "federally recognized Indian tribe")
4means any Indian tribe, band, nation, or other organized group
5or community, including any Alaska Native village or regional
6or village corporation as defined in or established pursuant to
7the federal Alaska Native Claims Settlement Act (43 U.S.C.
81601, et seq.) that is recognized as eligible for the special
9programs and services provided by the United States to Indians
10because of their status as Indians under 25 U.S.C. 450b(e), as
11set forth in the annually published Bureau of Indian Affairs
12list of Indian Entities Recognized and Eligible to Receive
13Services.
14    "Indirect cost" means those costs incurred for a common or
15joint purpose benefitting more than one cost objective and not
16readily assignable to the cost objectives specifically
17benefitted without effort disproportionate to the results
18achieved.
19    "Inspector General" means the Office of the Executive
20Inspector General for Executive branch agencies.
21    "Loan" means a State or federal loan or loan guarantee
22received or administered by a non-federal entity. "Loan" does
23not include a "program income" as defined in 2 CFR 200.80.
24    "Loan guarantee" means any State or federal government
25guarantee, insurance, or other pledge with respect to the
26payment of all or a part of the principal or interest on any

 

 

SB2764- 34 -LRB099 18570 RJF 42949 b

1debt obligation of a non-federal borrower to a non-federal
2lender, but does not include the insurance of deposits, shares,
3or other withdrawable accounts in financial institutions.
4    "Local government" has the meaning provided for the term
5"units of local government" under Section 1 of Article VII of
6the Illinois Constitution and includes school districts.
7    "Major program" means a federal program determined by the
8auditor to be a major program in accordance with 2 CFR 200.518
9or a program identified as a major program by a federal
10awarding agency or pass-through entity in accordance with 2 CFR
11200.503(e).
12    "Non-federal entity" means a state, local government,
13Indian tribe, institution of higher education, or
14organization, whether nonprofit or for-profit, that carries
15out a State or federal award as a recipient or subrecipient.
16    "Nonprofit organization" means any corporation, trust,
17association, cooperative, or other organization, not including
18institutions of higher education, that:
19        (1) is operated primarily for scientific, educational,
20    service, charitable, or similar purposes in the public
21    interest;
22        (2) is not organized primarily for profit; and
23        (3) uses net proceeds to maintain, improve, or expand
24    the operations of the organization.
25    "Obligations", when used in connection with a non-federal
26entity's utilization of funds under an award, means orders

 

 

SB2764- 35 -LRB099 18570 RJF 42949 b

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

 

 

SB2764- 36 -LRB099 18570 RJF 42949 b

1other than a State or federal entity. Private awards are not
2subject to the provisions of this Act.
3    "Property" means real property or personal property.
4    "Project cost" means total allowable costs incurred under
5an award and all required cost sharing and voluntary committed
6cost sharing, including third-party contributions.
7    "Public institutions of higher education" has the meaning
8provided in Section 1 of the Board of Higher Education Act.
9    "Recipient" means a non-federal entity that receives an
10award directly from an awarding agency to carry out an activity
11under a program. "Recipient" does not include subrecipients.
12    "Research and Development" means all research activities,
13both basic and applied, and all development activities that are
14performed by non-federal entities.
15    "Single Audit Act" means the federal Single Audit Act
16Amendments of 1996 (31 U.S.C. 7501-7507).
17    "State agency" means an Executive branch agency. For
18purposes of this Act, "State agency" does not include public
19institutions of higher education.
20    "State award" means the financial assistance that a
21non-federal entity receives from the State and that is funded
22with either State funds or federal funds; in the latter case,
23the State is acting as a pass-through entity.
24    "State awarding agency" means a State agency that provides
25an award to a non-federal entity.
26    "State grant-making agency" has the same meaning as "State

 

 

SB2764- 37 -LRB099 18570 RJF 42949 b

1awarding agency".
2    "State interest" means the acquisition or improvement of
3real property, equipment, or supplies under a State award, the
4dollar amount that is the product of the State share of the
5total project costs and current fair market value of the
6property, improvements, or both, to the extent the costs of
7acquiring or improving the property were included as project
8costs.
9    "State program" means any of the following:
10        (1) All State awards which are assigned a single number
11    in the Catalog of State Financial Assistance.
12        (2) When no Catalog of State Financial Assistance
13    number is assigned, all State awards to non-federal
14    entities from the same agency made for the same purpose are
15    considered one program.
16        (3) A cluster of programs as defined in this Section.
17    "State share" means the portion of the total project costs
18that are paid by State funds.
19    "Stop payment order" means a communication from a State
20grant-making agency to the Office of the Comptroller requesting
21the cessation of payments to a recipient or subrecipient as a
22result of the recipient's or subrecipient's failure to comply
23with one or more terms of the grant or subaward.
24    "Stop payment system" means the system maintained by the
25Office of the Comptroller which effects stop payment orders and
26the lifting of stop payment orders upon the direction of a

 

 

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1State grant-making agency.
2    "Student Financial Aid" means federal awards under those
3programs of general student assistance, such as those
4authorized by Title IV of the Higher Education Act of 1965, as
5amended (20 U.S.C. 1070-1099d), that are administered by the
6United States Department of Education and similar programs
7provided by other federal agencies. "Student Financial Aid"
8does not include federal awards under programs that provide
9fellowships or similar federal awards to students on a
10competitive basis or for specified studies or research.
11    "Subaward" means a State or federal award provided by a
12pass-through entity to a subrecipient for the subrecipient to
13carry out part of a federal award received by the pass-through
14entity. "Subaward" does not include payments to a contractor or
15payments to an individual that is a beneficiary of a federal
16program. A "subaward" may be provided through any form of legal
17agreement, including an agreement that the pass-through entity
18considers a contract.
19    "Subrecipient" means a non-federal entity that receives a
20State or federal subaward from a pass-through entity to carry
21out part of a federal program. "Subrecipient" does not include
22an individual that is a beneficiary of such program. A
23"subrecipient" may also be a recipient of other State or
24federal awards directly from a State or federal awarding
25agency.
26    "Suspension" means a post-award action by the State or

 

 

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1federal agency or pass-through entity that temporarily
2withdraws the State or federal agency's or pass-through
3entity's financial assistance sponsorship under an award,
4pending corrective action by the recipient or subrecipient or
5pending a decision to terminate the award.
6    "Uniform Administrative Requirements, Costs Principles,
7and Audit Requirements for Federal Awards" means those rules
8applicable to grants contained in 2 CFR 200.
9    "Voluntary committed cost sharing" means cost sharing
10specifically pledged on a voluntary basis in the proposal's
11budget or the award on the part of the non-federal entity and
12that becomes a binding requirement of the award.
13(Source: P.A. 98-706, eff. 7-16-14.)
 
14    (30 ILCS 708/50)
15    (Section scheduled to be repealed on July 16, 2019)
16    Sec. 50. State grant-making agency responsibilities.
17    (a) The specific requirements and responsibilities of
18State grant-making agencies and non-federal entities are set
19forth in this Act. State agencies making State awards to
20non-federal entities must adopt by rule the language in 2 CFR
21200, Subpart C through Subpart F unless different provisions
22are required by law.
23    (b) Each State grant-making agency shall appoint a Chief
24Accountability Officer who shall serve as a liaison to the
25Grant Accountability and Transparency Unit and who shall be

 

 

SB2764- 40 -LRB099 18570 RJF 42949 b

1responsible for the State agency's implementation of and
2compliance with the rules.
3    (c) In order to effectively measure the performance of its
4recipients and subrecipients, each State grant-making agency
5shall:
6        (1) require its recipients and subrecipients to relate
7    financial data to performance accomplishments of the award
8    and, when applicable, must require recipients and
9    subrecipients to provide cost information to demonstrate
10    cost-effective practices. The recipient's and
11    subrecipient's performance should be measured in a way that
12    will help the State agency to improve program outcomes,
13    share lessons learned, and spread the adoption of promising
14    practices; and
15        (2) provide recipients and subrecipients with clear
16    performance goals, indicators, and milestones and must
17    establish performance reporting frequency and content to
18    not only allow the State agency to understand the
19    recipient's progress, but also to facilitate
20    identification of promising practices among recipients and
21    subrecipients and build the evidence upon which the State
22    agency's program and performance decisions are made.
23    (c-5) Each State grant-making agency shall evaluate the
24compliance of its recipients and subrecipients within the terms
25of the grant or subaward and, where appropriate, shall request
26that the Office of the Comptroller issue a stop payment order

 

 

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1in accordance with Section 105 of this Act.
2    (d) The Governor's Office of Management and Budget shall
3provide such advice and technical assistance to the State
4grant-making agencies as is necessary or indicated in order to
5ensure compliance with this Act.
6(Source: P.A. 98-706, eff. 7-16-14.)
 
7    (30 ILCS 708/55)
8    (Section scheduled to be repealed on July 16, 2019)
9    Sec. 55. The Governor's Office of Management and Budget
10responsibilities.
11    (a) The Governor's Office of Management and Budget shall:
12        (1) provide technical assistance and interpretations
13    of policy requirements in order to ensure effective and
14    efficient implementation of this Act by State grant-making
15    agencies; and
16        (2) have authority to approve any exceptions to the
17    requirements of this Act and shall adopt rules governing
18    the criteria to be considered when an exception is
19    requested; exceptions shall only be made in particular
20    cases where adequate justification is presented.
21    (b) The Governor's Office of Management and Budget shall,
22on or before July 1, 2014, establish a centralized unit within
23the Governor's Office of Management and Budget. The centralized
24unit shall be known as the Grant Accountability and
25Transparency Unit and shall be funded with a portion of the

 

 

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1administrative funds provided under existing and future State
2and federal pass-through grants. The amounts charged will be
3allocated based on the actual cost of the services provided to
4State grant-making agencies and public institutions of higher
5education in accordance with the applicable federal cost
6principles contained in 2 CFR 200 and this Act will not cause
7the reduction in the amount of any State or federal grant
8awards that have been or will be directed towards State
9agencies or public institutions of higher education.
10    (c) The Governor's Office of Management and Budget, in
11conjunction with the Illinois Single Audit Commission, shall
12convene a subcommittee of the Commission to research and
13provide recommendations to the General Assembly regarding the
14adoption of legislation in accordance with the federal Improper
15Payments Elimination and Recovery Improvement Act of 2012. The
16subcommittee's recommendations shall be included in the Annual
17Report of the Commission to be submitted to the General
18Assembly on January 1, 2017.
19(Source: P.A. 98-706, eff. 7-16-14.)
 
20    (30 ILCS 708/105 new)
21    Sec. 105. Stop payment system.
22    (a) On or before July 1, 2017, the Governor's Office of
23Management and Budget shall adopt rules pertaining to the
24following:
25        (1) Factors to be considered in determining whether to

 

 

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1    issue a stop payment order;
2        (2) Factors to be considered in determining whether a
3    stop payment order should be lifted; and
4        (3) Procedures for notification to the recipient or
5    subrecipient of the issuance of a stop payment order, the
6    lifting of a stop payment order, and any other related
7    information.
8    (b) On or before December 31, 2017, the Governor's Office
9of Management and Budget shall, in conjunction with State
10grant-making agencies, adopt rules pertaining to the
11following:
12        (1) Policies regarding the issuance of stop payment
13    orders;
14        (2) Policies regarding the lifting of stop payment
15    orders;
16        (3) Policies regarding corrective actions required of
17    recipients and subrecipients in the event a stop payment
18    order is issued; and
19        (4) Policies regarding the coordination of
20    communications between the Office of the Comptroller and
21    State grant-making agencies regarding the issuance of stop
22    payment orders and the lifting of such orders.
23    (c) On or before July 1, 2018, the Office of the
24Comptroller shall have established a stop payment system that
25shall cause the temporary or permanent cessation of payments to
26a recipient or subrecipient in specified circumstances. Such a

 

 

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1temporary or permanent cessation of payments will occur
2pursuant to a stop payment order issued by a State grant-making
3agency and implemented by the Office of the Comptroller.
4    (d) The State grant-making agency shall maintain a file
5pertaining to all stop payment orders which shall include, at a
6minimum:
7        (1) The notice to the recipient or subrecipient that a
8    stop payment order has been issued. The notice shall
9    include:
10            (A) The name of the grant.
11            (B) The grant number.
12            (C) The name of the State agency that issued the
13        grant.
14            (D) The reason(s) for the stop payment order.
15            (E) Notification that the stop payment order
16        applies to all grants and contracts issued by the
17        State.
18            (F) Any other relevant information.
19        (2) The order lifting the stop payment order, if
20    applicable.
 
21    (30 ILCS 708/110 new)
22    Sec. 110. Documentation of award decisions. Each award that
23is granted pursuant to an application process must include
24documentation to support the award.
25    (a) For each State or federal pass-through award that is

 

 

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1granted following an application process, the State
2grant-making agency shall create a grant award file. The grant
3award file shall contain, at a minimum:
4        (1) A description of the grant.
5        (2) The Notice of Opportunity.
6        (3) All applications received in response to the Notice
7    of Opportunity.
8        (4) Copies of any written communications between an
9    applicant and the State grant-making agency.
10        (5) The criteria used to evaluate the applications.
11        (6) The scores assigned to each applicant according to
12    the criteria.
13        (7) A written determination, signed by an authorized
14    representative of the State grant-making agency, setting
15    forth the reason for the grant award decision.
16        (8) The Notice of Award.
17        (9) Any other pre-award documents.
18        (10) The grant agreement and any renewals, if
19    applicable;
20        (11) All post-award, administration, and close-out
21    documents relating to the grant.
22        (12) Any other information relevant to the grant award.
23    (b) The grant file shall not include trade secrets or other
24competitively sensitive, confidential, or proprietary
25information.
26    (c) Each grant file shall be maintained by the State

 

 

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1grant-making agency and, subject to the provisions of the
2Freedom of Information Act, shall be available for public
3inspection and copying within 7 calendar days following award
4of the grant.
 
5    (30 ILCS 708/115 new)
6    Sec. 115. Certifications and representations. Unless
7prohibited by State or federal statute, regulation, or
8administrative rule, each State awarding agency or
9pass-through entity is authorized to require the recipient or
10subrecipient to submit certifications and representations
11required by State or federal statute, regulation, or
12administrative rule.
 
13    (30 ILCS 708/120 new)
14    Sec. 120. Required certifications. To assure that
15expenditures are proper and in accordance with the terms and
16conditions of the grant award and approved project budgets, all
17periodic and final financial reports, and all payment requests
18under the grant agreement, must include a certification, signed
19by an official who is authorized to legally bind the grantee or
20subrecipient, that reads as follows:
21        "By signing this report and/or payment request, I
22    certify to the best of my knowledge and belief that this
23    report is true, complete, and accurate; that the
24    expenditures, disbursements, and cash receipts are for the

 

 

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1    purposes and objectives set forth in the terms and
2    conditions of the State or federal pass-through award; and
3    that supporting documentation has been submitted as
4    required by the grant agreement. I acknowledge that
5    approval for any item or expenditure described herein shall
6    be considered conditional subject to further review and
7    verification in accordance with the monitoring and records
8    retention provisions of the grant agreement. I am aware
9    that any false, fictitious, or fraudulent information, or
10    the omission of any material fact, may subject me to
11    criminal, civil or administrative penalties for fraud,
12    false statements, false claims or otherwise. 18 U.S.C.
13    §1001; 31 U.S.C. §§3729-3730 and §§3801-3812; 30 ILCS 708/
14    120."
 
15    (30 ILCS 708/125 new)
16    Sec. 125. Expenditures prior to grant execution; reporting
17requirements.
18    (a) In the event that a recipient or subrecipient incurs
19expenses related to the grant award prior to the execution of
20the grant agreement but within the term of the grant, and the
21grant agreement is executed more than 30 days after the
22effective date of the grant, the recipient or subrecipient must
23submit to the State grant-making agency a report that accounts
24for eligible grant expenditures and project activities from the
25effective date of the grant up to and including the date of

 

 

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1execution of the grant agreement.
2    (b) The recipient or subrecipient must submit the report to
3the State grant-making agency within 30 days of execution of
4the grant agreement.
5    (c) Only those expenses that are reasonable, allowable, and
6in furtherance of the purpose of the grant award shall be
7reimbursed.
8    (d) The State grant-making agency must approve the report
9prior to issuing any payment to the recipient or subrecipient.
 
10    (30 ILCS 708/130 new)
11    Sec. 130. Travel costs.
12    (a) General. Travel costs are the expenses for
13transportation, lodging, subsistence, and related items
14incurred by the employees of the recipient or subrecipient who
15are in travel status on official business of the recipient or
16subrecipient. Such costs may only be charged to a State or
17federal pass-through grant on a per diem or mileage basis in
18accordance with the rules of the Governor's Travel Control
19Board.
20    (b) Lodging and subsistence. Costs incurred for travel,
21including costs of lodging, other subsistence, and incidental
22expenses, must be considered reasonable and otherwise
23allowable only to the extent such costs do not exceed charges
24normally allowed by the rules of the Governor's Travel Control
25Board. In addition, if these costs are charged directly to the

 

 

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1State or federal pass-through award documentation must justify
2that:
3        (1) Participation of the individual is necessary to the
4    State or federal pass-through award; and
5        (2) The costs are reasonable and consistent with the
6    rules of the Governor's Travel Control Board.
7    (c) Commercial air travel.
8        (1) Airfare costs in excess of the basic least
9    expensive unrestricted accommodations class offered by
10    commercial airlines are unallowable except when such
11    accommodations would:
12            (i) Require circuitous routing;
13            (ii) Require travel during unreasonable hours;
14            (iii) Excessively prolong travel;
15            (iv) Result in additional costs that would offset
16        the transportation savings; or
17            (v) Offer accommodations not reasonably adequate
18        for the traveler's medical needs.".
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    5 ILCS 430/5-20
4    15 ILCS 405/28 new
5    20 ILCS 3005/2.11 new
6    20 ILCS 3005/2.12 new
7    30 ILCS 105/25from Ch. 127, par. 161
8    30 ILCS 105/35from Ch. 127, par. 167.03
9    30 ILCS 705/15.5 new
10    30 ILCS 708/15
11    30 ILCS 708/50
12    30 ILCS 708/55
13    30 ILCS 708/105 new
14    30 ILCS 708/110 new
15    30 ILCS 708/115 new
16    30 ILCS 708/120 new
17    30 ILCS 708/125 new
18    30 ILCS 708/130 new