HB0473 95TH GENERAL ASSEMBLY

LRB095 05220 RCE 25295 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB0473

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

SYNOPSIS AS INTRODUCED:

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.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning finance.

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

Section 1. Short title. This Act may be cited as the Funding Accountability and Transparency Act.

Section 5. Full Disclosure of entities receiving State funding.

(a) Definitions. In this Section:

(1) Entity. The term "entity":

(A) Includes, whether for-profit or non-profit:

(i) a corporation;

(ii) an association;

(iii) a partnership;

(iv) a limited liability company;

(v) a limited liability partnership;

(vi) a sole proprietorship;

(vii) any other legal business entity;

(viii) any other grantee or contractor that is not excluded by subparagraph (B) or (C); and

(ix) any unit of local government or school district; and

(B) on and after January 1, 2009, includes any subcontractor or subgrantee.

(C) Does not include:

(i) an individual recipient of State assistance; or

(ii) a State employee.

(2) State award. The term "State award":

(A) means State financial assistance and expenditures that include grants, contracts, subgrants, subcontracts, loans, awards, cooperative agreements, purchase orders, task orders, delivery orders, and other forms of financial assistance;

(B) does not include individual transactions below $25,000; and

(C) before October 1, 2008, does not include credit card transactions.

(3) Searchable website. The term "searchable website" means a website that allows the public to:

(A) search State funding by any element required by subsection (b)(1);

(B) ascertain through a single search the total amount of State funding awarded to an entity, by fiscal year; and

(C) download data included in subparagraph (A) included in the outcome from searches.

(b) In general:

(1) Website. Not later than January 1, 2008, the Governor's Office of Management and Budget shall, in accordance with this Section, ensure the existence and operation of a single searchable website, accessible by the public at no cost to access, that includes for each State award:

(A) the name of the entity receiving the award;

(B) the amount of the award;

(C) information on the award, including transaction type, funding agency, program source, and an award title descriptive of the purpose of each funding action;

(D) the location of the entity receiving the award and the primary location of performance under the award, including the county, township, municipality, Legislative District, and Representative District;

(E) a unique identifier of the entity receiving the award and of the parent entity of the recipient, should the entity be owned by another entity; and

(F) any other relevant information specified by the Governor's Office of Management and Budget.

(2) Scope of data. The website shall include data for fiscal year 2007 and each fiscal year thereafter.

(3) Designation of agencies. The Director of the Governor's Office of Management and Budget is authorized to designate one or more State agencies to participate in the development, establishment, operation, and support of the single website. In the initial designation, or in subsequent instructions and guidance, the Director may specify the scope of the responsibilities of each agency.

(4) Agency responsibilities. State agencies shall comply with the instructions and guidance issued by the Director of the Governor's Office of Management and Budget under paragraph (3), and shall provide appropriate assistance to the Director upon request, so as to assist the Director in ensuring the existence and operation of the single website.

(c) Website. The website established under this Section:

(1) may use any other existing sources of data if these data sources are searchable through the website and can be accessed in a single search;

(2) shall not be considered in compliance if it hyperlinks to other existing websites or sources of data and the result is that the information elements required in subsection (b)(1) cannot be searched electronically by field in a single search;

(3) shall provide an opportunity for the public to provide input about the utility of the site and recommendations for improvements; and

(4) shall be updated not later than 30 days after the award of any State award requiring a posting.

(d) Sub-award data.

(1) Pilot program.

(A) In general. Not later than July 1, 2007, the Director of the Governor's Office of Management and Budget shall commence a pilot program to:

(i) test the collection and accession of data about subgrants and subcontracts;

(ii) determine how to implement a sub-award reporting program across State government, including a reporting system under which the entity issuing a sub-grant or subcontract is responsible for fulfilling the sub-award reporting requirement; and

(iii) a mechanism for collecting and incorporating agency and public feedback on the design and utility of the website.

(B) Termination. The pilot program under subparagraph (A) shall terminate not later than January 1, 2009.

(2) Reporting of sub-awards.

(A) In general. Based on the pilot program conducted under paragraph (1) and, except as provided in subparagraph (B), not later than January 1, 2009, the Director of the Governor's Office of Management and Budget:

(i) shall ensure that data regarding sub-awards are disclosed in the same manner as data regarding other State awards, as required by this Act;

(ii) shall ensure that the method for collecting and distributing data about sub-awards under clause (i):

(I) minimizes burdens imposed on State award recipients and sub-award recipients;

(II) allows State award recipients and sub-award recipients to allocate reasonable costs for the collection and reporting of sub-award data as indirect costs; and

(III) establishes cost-effective requirements for collecting sub-award data under block grants, formula grants, and other types of assistance to units of local governments and school districts.

(B) Extension of deadline. For sub-award recipients that receive State funds through units of local government or school districts, the Director of the Governor's Office of Management and Budget may extend the deadline for ensuring that data regarding such sub-awards are disclosed in the same manner as data regarding other State awards for a period not to exceed 18 months if the Director determines that compliance would impose an undue burden on the sub-award recipient.

(e) Exception. Any entity that demonstrates to the Director of the Governor's Office of Management and Budget that the gross income, from all sources, for that entity did not exceed $300,000 in the previous tax year of that entity shall be exempt from the requirement to report sub-awards under subsection (d) until the Director determines that the imposition of that reporting requirements will not cause an undue burden on that entity.

(f) Construction. Nothing in this Act shall prohibit the Governor's Office of Management and Budget from including through the website established under this Section access to data that is publicly available in any other federal database.

(g) Report:

(1) In general. The Director of the Governor's Office of Management and Budget shall submit to Governor an annual report regarding the implementation of the website established under this Section.

(2) Contents. Each report submitted under paragraph (1) shall include:

(A) data regarding the usage and public feedback on the utility of the site (including recommendations for improving data quality and collection);

(B) an assessment of the reporting burden placed on State award and sub-award recipients; and

(C) an explanation of any extension of the sub-award reporting deadline under subsection (d)(2)(B), if applicable.

(3) Recommendations. The Governor shall review the report of the Governor's Office of Management and Budget and in each even-numbered year make recommendations to the General Assembly on how to improve the website.

(4) Publication. The Director of the Governor's Office of Management and Budget shall make each report submitted under paragraph (1) publicly available on the website established under this Section.

Section 10. Classified information. Nothing in this Act shall require the disclosure of classified information.

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