HB0289ham001 96TH GENERAL ASSEMBLY

State Government Administration Committee

Filed: 2/19/2009

09600HB0289ham001 LRB096 04276 JAM 19183 a

AMENDMENT TO HOUSE BILL 289

AMENDMENT NO. ______. Amend House Bill 289 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois State Auditing Act is amended by adding Section 2-15 as follows:

(30 ILCS 5/2-15 new)

Sec. 2-15. Appropriation Earmarks Unit.

(a) As used in this Section:

"Earmarked appropriation" means an appropriation for a grant or distribution to a specific unit of local government, specific school district, specific not-for-profit organization, or specific non-governmental entity for infrastructure improvements or operating expenses. The term shall also include a grant or distribution made from a lump sum appropriation to a specific unit of local government, specific school district, specific not-for-profit organization, or specific non-governmental entity for infrastructure improvements or operating expenses. Appropriations that are part of a statewide program and are based on generally applicable standards of eligibility are not earmarked appropriations.

"Infrastructure improvements" include without limitation capital improvements, capital projects, planning, construction, reconstruction, equipment, utilities, vehicles, and all costs associated with economic development, community programs, educational programs, public health, and public safety.

"Operating expenses" includes expenditures made by the recipient entity for its own administrative purposes, including but not limited to personal services, equipment, real property, debt service, travel, and commodities.

"Unit" means the Appropriation Earmarks Unit of the Office of the Auditor General, established by this Section.

(b) The Office of the Auditor General shall establish and administer within the Office an Appropriation Earmarks Unit. The primary function of the Unit shall be the review and auditing of earmarked appropriations of State funds.

(c) On or before July 31 of each fiscal year, every State agency shall provide a list to the Auditor General of all grants and distributions meeting this Section's definition of "earmarked appropriation" made by the State agency during the previous fiscal year. The list shall contain each recipient's name and address, the date and amount of distribution, the fund from which the distribution was made, and the purpose of the distribution. For purposes of this Section, "State agency" shall include agencies in the executive or legislative branch of State government created by the Illinois Constitution or State statute.

(d) To the extent resources permit, the Unit shall select a sample of earmarked appropriations reported to it by the State agencies and conduct a review to determine whether the State agencies distributed the earmarked appropriation in accordance with all applicable laws and whether the recipient entity used the earmarked appropriation for its intended purpose and complied with all applicable requirements. The Auditor General's conclusions may be published in a single report or in multiple reports, which shall include a complete list of all earmarked appropriations reported to it by the State agencies.

(e) The Unit shall include operation of a telephone hot line through which suggestions for audits of State-funded grant programs or earmarked appropriations may be made. To the extent possible, the identity of individuals contacting the hotline shall be kept confidential. The Auditor General may refer suggestions for audits of State-funded grant programs or earmarked appropriations to the State agency involved in the distribution.

(f) Notwithstanding any provision of law to the contrary, the Legislative Audit Commission may direct the Auditor General to conduct a performance audit of an earmarked appropriation upon a majority vote of the Commission.

(g) Audits conducted under this Section and reports prepared under this Section shall be public records and shall be filed with the Legislative Audit Commission as provided by rule of the Commission.

Section 99. Effective date. This Act takes effect July 1, 2009.".