Illinois General Assembly - Full Text of SB2540
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Full Text of SB2540  100th General Assembly




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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 Governor's Office of Management and Budget
5Act is amended by adding Sections 2.11 and 2.12 as follows:
6    (20 ILCS 3005/2.11 new)
7    Sec. 2.11. Stop payment orders. Upon a request for a stop
8payment order from a State grant-making agency for a recipient
9or subrecipient, the Office of the Comptroller shall notify the
10Grant Accountability and Transparency Unit within 30 days of
11the request.
12    (20 ILCS 3005/2.12 new)
13    Sec. 2.12. Improper payment elimination recommendations.
14Pursuant to Section 15.5 of the Grant Funds Recovery Act, the
15Governor's Office of Management and Budget, in conjunction with
16the Illinois Single Audit Commission, shall research and
17provide recommendations to the General Assembly regarding the
18adoption of legislation, in accordance with the federal
19Improper Payments Elimination and Recovery Improvement Act of
202012. The recommendations shall be included in the Annual
21Report of the Commission to be submitted to the General
22Assembly on January 1, 2020. The report to the General Assembly



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1shall be filed with the Clerk of the House of Representatives
2and the Secretary of the Senate in electronic form only, in the
3manner that the Clerk and the Secretary shall direct. This
4Section is repealed January 1, 2021.
5    Section 10. The State Finance Act is amended by changing
6Section 35 as follows:
7    (30 ILCS 105/35)  (from Ch. 127, par. 167.03)
8    Sec. 35. As used in this Section, "state agency" is defined
9as provided in the Illinois State Auditing Act, except that
10this Section does not apply to state colleges and universities,
11the Illinois Mathematics and Science Academy, and their
12respective governing boards.
13    When any State agency receives a grant or contract from
14itself or another State agency from appropriated funds the
15recipient agency shall be restricted in the expenditure of
16these funds to the period during which the grantor agency was
17so restricted and to the terms and conditions under which such
18other agency received the appropriation. , The restrictions
19shall include: any applicable restrictions in Section 25 of
20this Act, applicable federal regulations, and to the terms,
21conditions and limitations of the appropriations to the other
22agency, even if the funds are deposited or interfund
23transferred for use in a non-appropriated fund. No State agency
24may accept or expend funds under a grant or contract for any



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1purpose, program or activity not within the scope of the
2agency's powers and duties under Illinois law.
3(Source: P.A. 88-9.)
4    Section 15. The Illinois Grant Funds Recovery Act is
5amended by adding Section 15.5 as follows:
6    (30 ILCS 705/15.5 new)
7    Sec. 15.5. Recommendations of the Illinois Single Audit
8Commission regarding the elimination and recovery of improper
9payments. The Illinois Single Audit Commission, in conjunction
10with the Governor's Office of Management and Budget, shall
11research and provide recommendations to the General Assembly
12regarding the adoption of legislation in accordance with the
13federal Improper Payments Elimination and Recovery Improvement
14Act of 2012. The recommendations shall be included in the
15Annual Report of the Commission to be submitted to the General
16Assembly on January 1, 2020. The report to the General Assembly
17shall be filed with the Clerk of the House of Representatives
18and the Secretary of the Senate in electronic form only, in the
19manner that the Clerk and the Secretary shall direct. This
20Section is repealed January 1, 2021.
21    Section 20. The Grant Accountability and Transparency Act
22is amended by changing Sections 15, 25, 50, 55, and 95 and by
23adding Sections 105, 110, 115, 120, 125, 130, and 520 as



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2    (30 ILCS 708/15)
3    (Section scheduled to be repealed on July 16, 2020)
4    Sec. 15. Definitions. As used in this Act:
5    "Allowable cost" means a cost allowable to a project if:
6        (1) the costs are reasonable and necessary for the
7    performance of the award;
8        (2) the costs are allocable to the specific project;
9        (3) the costs are treated consistently in like
10    circumstances to both federally-financed and other
11    activities of the non-federal entity;
12        (4) the costs conform to any limitations of the cost
13    principles or the sponsored agreement;
14        (5) the costs are accorded consistent treatment; a cost
15    may not be assigned to a State or federal award as a direct
16    cost if any other cost incurred for the same purpose in
17    like circumstances has been allocated to the award as an
18    indirect cost;
19        (6) the costs are determined to be in accordance with
20    generally accepted accounting principles;
21        (7) the costs are not included as a cost or used to
22    meet federal cost-sharing or matching requirements of any
23    other program in either the current or prior period;
24        (8) the costs of one State or federal grant are not
25    used to meet the match requirements of another State or



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



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



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



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



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1institutional activity, or that can be directly assigned to
2such activities relatively easily with a high degree of
4    "Equipment" means tangible personal property (including
5information technology systems) having a useful life of more
6than one year and a per-unit acquisition cost that equals or
7exceeds the lesser of the capitalization level established by
8the non-federal entity for financial statement purposes, or
10    "Executive branch" means that branch of State government
11that is under the jurisdiction of the Governor.
12    "Federal agency" has the meaning provided for "agency"
13under 5 U.S.C. 551(1) together with the meaning provided for
14"agency" by 5 U.S.C. 552(f).
15    "Federal award" means:
16        (1) the federal financial assistance that a
17    non-federal entity receives directly from a federal
18    awarding agency or indirectly from a pass-through entity;
19        (2) the cost-reimbursement contract under the Federal
20    Acquisition Regulations that a non-federal entity receives
21    directly from a federal awarding agency or indirectly from
22    a pass-through entity; or
23        (3) the instrument setting forth the terms and
24    conditions when the instrument is the grant agreement,
25    cooperative agreement, other agreement for assistance
26    covered in paragraph (b) of 20 CFR 200.40, or the



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



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1            (B) student financial aid; and
2            (C) "other clusters", as described in the
3        definition of "cluster of programs".
4    "Federal share" means the portion of the total project
5costs that are paid by federal funds.
6    "Final cost objective" means a cost objective which has
7allocated to it both direct and indirect costs and, in the
8non-federal entity's accumulation system, is one of the final
9accumulation points, such as a particular award, internal
10project, or other direct activity of a non-federal entity.
11    "Financial assistance" means the following:
12        (1) For grants and cooperative agreements, "financial
13    assistance" means assistance that non-federal entities
14    receive or administer in the form of:
15            (A) grants;
16            (B) cooperative agreements;
17            (C) non-cash contributions or donations of
18        property, including donated surplus property;
19            (D) direct appropriations;
20            (E) food commodities; and
21            (F) other financial assistance, except assistance
22        listed in paragraph (2) of this definition.
23        (2) "Financial assistance" includes assistance that
24    non-federal entities receive or administer in the form of
25    loans, loan guarantees, interest subsidies, and insurance.
26        (3) "Financial assistance" does not include amounts



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1    received as reimbursement for services rendered to
2    individuals.
3    "Fixed amount awards" means a type of grant agreement under
4which the awarding agency or pass-through entity provides a
5specific level of support without regard to actual costs
6incurred under the award. "Fixed amount awards" reduce some of
7the administrative burden and record-keeping requirements for
8both the non-federal entity and awarding agency or pass-through
9entity. Accountability is based primarily on performance and
11    "Foreign public entity" means:
12        (1) a foreign government or foreign governmental
13    entity;
14        (2) a public international organization that is
15    entitled to enjoy privileges, exemptions, and immunities
16    as an international organization under the International
17    Organizations Immunities Act (22 U.S.C. 288-288f);
18        (3) an entity owned, in whole or in part, or controlled
19    by a foreign government; or
20        (4) any other entity consisting wholly or partially of
21    one or more foreign governments or foreign governmental
22    entities.
23    "Foreign organization" means an entity that is:
24        (1) a public or private organization located in a
25    country other than the United States and its territories
26    that are subject to the laws of the country in which it is



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



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



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1receiving an award of grant funds from the State.
2    "Indian tribe" (or "federally recognized Indian tribe")
3means any Indian tribe, band, nation, or other organized group
4or community, including any Alaska Native village or regional
5or village corporation as defined in or established pursuant to
6the federal Alaska Native Claims Settlement Act (43 U.S.C.
71601, et seq.) that is recognized as eligible for the special
8programs and services provided by the United States to Indians
9because of their status as Indians under 25 U.S.C. 450b(e), as
10set forth in the annually published Bureau of Indian Affairs
11list of Indian Entities Recognized and Eligible to Receive
13    "Indirect cost" means those costs incurred for a common or
14joint purpose benefitting more than one cost objective and not
15readily assignable to the cost objectives specifically
16benefitted without effort disproportionate to the results
18    "Inspector General" means the Office of the Executive
19Inspector General for Executive branch agencies.
20    "Loan" means a State or federal loan or loan guarantee
21received or administered by a non-federal entity. "Loan" does
22not include a "program income" as defined in 2 CFR 200.80.
23    "Loan guarantee" means any State or federal government
24guarantee, insurance, or other pledge with respect to the
25payment of all or a part of the principal or interest on any
26debt obligation of a non-federal borrower to a non-federal



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



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



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



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1    "State interest" means the acquisition or improvement of
2real property, equipment, or supplies under a State award, the
3dollar amount that is the product of the State share of the
4total project costs and current fair market value of the
5property, improvements, or both, to the extent the costs of
6acquiring or improving the property were included as project
8    "State program" means any of the following:
9        (1) All State awards which are assigned a single number
10    in the Catalog of State Financial Assistance.
11        (2) When no Catalog of State Financial Assistance
12    number is assigned, all State awards to non-federal
13    entities from the same agency made for the same purpose are
14    considered one program.
15        (3) A cluster of programs as defined in this Section.
16    "State share" means the portion of the total project costs
17that are paid by State funds.
18    "Stop payment order" means a communication from a State
19grant-making agency to the Office of the Comptroller, following
20procedures set out by the Office of the Comptroller, causing
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 procedure" means the procedure created by the
25Office of the Comptroller which effects a stop payment order
26and the lifting of a stop payment order upon the request of the



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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
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 708/25)
15    (Section scheduled to be repealed on July 16, 2020)
16    Sec. 25. Supplemental rules. On or before July 1, 2017, the
17Governor's Office of Management and Budget, with the advice and
18technical assistance of the Illinois Single Audit Commission,
19shall adopt supplemental rules pertaining to the following:
20        (1) Criteria to define mandatory formula-based grants
21    and discretionary grants.
22        (2) The award of one-year grants for new applicants.
23        (3) The award of competitive grants in 3-year terms
24    (one-year initial terms with the option to renew for up to
25    2 additional years) to coincide with the federal award.



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1        (4) The issuance of grants, including:
2            (A) public notice of announcements of funding
3        opportunities;
4            (B) the development of uniform grant applications;
5            (C) State agency review of merit of proposals and
6        risk posed by applicants;
7            (D) specific conditions for individual recipients
8        (requiring the use of a fiscal agent and additional
9        corrective conditions);
10            (E) certifications and representations;
11            (F) pre-award costs;
12            (G) performance measures and statewide prioritized
13        goals under Section 50-25 of the State Budget Law of
14        the Civil Administrative Code of Illinois, commonly
15        referred to as "Budgeting for Results"; and
16            (H) for mandatory formula grants, the merit of the
17        proposal and the risk posed should result in additional
18        reporting, monitoring, or measures such as
19        reimbursement-basis only.
20        (5) The development of uniform budget requirements,
21    which shall include:
22            (A) mandatory submission of budgets as part of the
23        grant application process;
24            (B) mandatory requirements regarding contents of
25        the budget including, at a minimum, common detail line
26        items specified under guidelines issued by the



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1        Governor's Office of Management and Budget;
2            (C) a requirement that the budget allow
3        flexibility to add lines describing costs that are
4        common for the services provided as outlined in the
5        grant application;
6            (D) a requirement that the budget include
7        information necessary for analyzing cost and
8        performance for use in Budgeting for Results; and
9            (E) caps on the amount of salaries that may be
10        charged to grants based on the limitations imposed by
11        federal agencies.
12        (6) The development of pre-qualification requirements
13    for applicants, including the fiscal condition of the
14    organization and the provision of the following
15    information:
16            (A) organization name;
17            (B) Federal Employee Identification Number;
18            (C) Data Universal Numbering System (DUNS) number;
19            (D) fiscal condition;
20            (E) whether the applicant is in good standing with
21        the Secretary of State;
22            (F) past performance in administering grants;
23            (G) whether the applicant is or has ever been on
24        the Debarred and Suspended List maintained by the
25        Governor's Office of Management and Budget;
26            (H) whether the applicant is or has ever been on



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1        the federal Excluded Parties List; and
2            (I) whether the applicant is or has ever been on
3        the Sanctioned Party List maintained by the Illinois
4        Department of Healthcare and Family Services.
5    Nothing in this Act affects the provisions of the Fiscal
6Control and Internal Auditing Act nor the requirement that the
7management of each State agency is responsible for maintaining
8effective internal controls under that Act.
9    For public institutions of higher education, the
10provisions of this Section apply only to awards funded by State
11appropriations and federal pass-through awards from a State
12agency to public institutions of higher education.
13(Source: P.A. 98-706, eff. 7-16-14; 99-523, eff. 6-30-16.)
14    (30 ILCS 708/50)
15    (Section scheduled to be repealed on July 16, 2020)
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



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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
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, when it is in
24the best interests of the State, request that the Office of the
25Comptroller issue a stop payment order in accordance with
26Section 105 of this Act.



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1    (c-6) Upon notification by the Grant Transparency and
2Accountability Unit that a stop payment order has been
3requested by a State grant-making agency, each State
4grant-making agency who has issued a grant to that recipient or
5subrecipient shall determine if it remains in the best
6interests of the State to continue to issue payments to the
7recipient or subrecipient.
8    (d) The Governor's Office of Management and Budget shall
9provide such advice and technical assistance to the State
10grant-making agencies as is necessary or indicated in order to
11ensure compliance with this Act.
12    (e) In accordance with this Act and the Illinois State
13Collection Act of 1986, refunds required under the Grant Funds
14Recovery Act may be referred to the Comptroller's offset
16(Source: P.A. 98-706, eff. 7-16-14.)
17    (30 ILCS 708/55)
18    (Section scheduled to be repealed on July 16, 2020)
19    Sec. 55. The Governor's Office of Management and Budget
21    (a) The Governor's Office of Management and Budget shall:
22        (1) provide technical assistance and interpretations
23    of policy requirements in order to ensure effective and
24    efficient implementation of this Act by State grant-making
25    agencies; and



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1        (2) have authority to approve any exceptions to the
2    requirements of this Act and shall adopt rules governing
3    the criteria to be considered when an exception is
4    requested; exceptions shall only be made in particular
5    cases where adequate justification is presented.
6    (b) The Governor's Office of Management and Budget shall,
7on or before July 1, 2016, establish a centralized unit within
8the Governor's Office of Management and Budget. The centralized
9unit shall be known as the Grant Accountability and
10Transparency Unit and shall be funded with a portion of the
11administrative funds provided under existing and future State
12and federal pass-through grants. The amounts charged will be
13allocated based on the actual cost of the services provided to
14State grant-making agencies and public institutions of higher
15education in accordance with the applicable federal cost
16principles contained in 2 CFR 200 and this Act will not cause
17the reduction in the amount of any State or federal grant
18awards that have been or will be directed towards State
19agencies or public institutions of higher education.
20    (c) The Governor's Office of Management and Budget, in
21conjunction with the Illinois Single Audit Commission, shall
22research and provide recommendations to the General Assembly
23regarding the adoption of legislation in accordance with the
24federal Improper Payments Elimination and Recovery Improvement
25Act of 2012. The recommendations shall be included in the
26Annual Report of the Commission to be submitted to the General



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1Assembly on January 1, 2020. The report to the General Assembly
2shall be filed with the Clerk of the House of Representatives
3and the Secretary of the Senate in electronic form only, in the
4manner that the Clerk and the Secretary shall direct. This
5subsection (c) is inoperative on and after January 1, 2021.
6(Source: P.A. 98-706, eff. 7-16-14; 99-523, eff. 6-30-16.)
7    (30 ILCS 708/95)
8    (Section scheduled to be repealed on July 16, 2020)
9    Sec. 95. Annual report. Effective January 1, 2016 and each
10January 1 thereafter, the Governor's Office of Management and
11Budget, in conjunction with the Illinois Single Audit
12Commission, shall submit to the Governor and the General
13Assembly a report that demonstrates the efficiencies, cost
14savings, and reductions in fraud, waste, and abuse as a result
15of the implementation of this Act and the rules adopted by the
16Governor's Office of Management and Budget in accordance with
17the provisions of this Act. The report shall include, but not
18be limited to:
19        (1) the number of entities placed on the Illinois
20    Debarred and Suspended List;
21        (2) any savings realized as a result of the
22    implementation of this Act;
23        (3) any reduction in the number of duplicative audit
24    report reviews audits;
25        (4) the number of persons trained to assist grantees



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1    and subrecipients; and
2        (5) the number of grantees and subrecipients to whom a
3    fiscal agent was assigned.
4(Source: P.A. 98-706, eff. 7-16-14.)
5    (30 ILCS 708/105 new)
6    Sec. 105. Stop payment procedures.
7    (a) On or before July 1, 2019, the Governor's Office of
8Management and Budget shall adopt rules pertaining to the
10        (1) factors to be considered in determining whether to
11    issue a stop payment order shall include whether or not a
12    stop payment order is in the best interests of the State;
13        (2) factors to be considered in determining whether a
14    stop payment order should be lifted; and
15        (3) procedures for notification to the recipient or
16    subrecipient of the issuance of a stop payment order, the
17    lifting of a stop payment order, and any other related
18    information.
19    (b) On or before December 31, 2019, the Governor's Office
20of Management and Budget shall, in conjunction with State
21grant-making agencies, adopt rules pertaining to the
23        (1) policies regarding the issuance of stop payment
24    orders;
25        (2) policies regarding the lifting of stop payment



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1    orders;
2        (3) policies regarding corrective actions required of
3    recipients and subrecipients in the event a stop payment
4    order is issued; and
5        (4) policies regarding the coordination of
6    communications between the Office of the Comptroller and
7    State grant-making agencies regarding the issuance of stop
8    payment orders and the lifting of such orders.
9    (c) On or before July 1, 2020, the Office of the
10Comptroller shall establish stop payment procedures that shall
11cause the cessation of payments to a recipient or subrecipient.
12Such a temporary or permanent cessation of payments will occur
13pursuant to a stop payment order requested by a State
14grant-making agency and implemented by the Office of the
16    (d) The State grant-making agency shall maintain a file
17pertaining to all stop payment orders which shall include, at a
19        (1) The notice to the recipient or subrecipient that a
20    stop payment order has been issued. The notice shall
21    include:
22            (A) The name of the grant.
23            (B) The grant number.
24            (C) The name of the State agency that issued the
25        grant.
26            (D) The reasons for the stop payment order.



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1            (E) Any other relevant information.
2        (2) The order lifting the stop payment order, if
3    applicable.
4    (e) The Grant Accountability and Transparency Unit shall
5determine and disseminate factors that State agencies shall
6consider when determining whether it is in the best interests
7of the State to permanently or temporarily cease payments to a
8recipient or subrecipient who has had a stop payment order
9requested by another State agency.
10    (f) The Office of the Comptroller and the Governor's Office
11of Management and Budget grant systems shall determine if the
12recipient or subrecipient has received grants from other State
13grant-making agencies.
14    (g) Upon notice from the Office of the Comptroller, the
15Grant Accountability and Transparency Unit shall notify all
16State grant-making agencies who have issued grants to a
17recipient or subrecipient whose payments have been subject to a
18stop payment order that a stop payment order has been requested
19by another State grant-making agency.
20    (h) Upon notice from the Grant Accountability and
21Transparency Unit, each State grant-making agency who has
22issued a grant to a recipient or subrecipient whose payments
23have been subject to a stop payment order shall review and
24assess all grants issued to that recipient or subrecipient.
25State agencies shall use factors provided by the Governor's
26Office of Management and Budget or the Grant Accountability and



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1Transparency Unit to determine whether it is the best interests
2of the State to request a stop payment order.
3    (30 ILCS 708/110 new)
4    Sec. 110. Documentation of award decisions. Each award that
5is granted pursuant to an application process must include
6documentation to support the award.
7    (a) For each State or federal pass-through award that is
8granted following an application process, the State
9grant-making agency shall create a grant award file. The grant
10award file shall contain, at a minimum:
11        (1) A description of the grant.
12        (2) The Notice of Opportunity, if applicable.
13        (3) All applications received in response to the Notice
14    of Opportunity, if applicable.
15        (4) Copies of any written communications between an
16    applicant and the State grant-making agency, if
17    applicable.
18        (5) The criteria used to evaluate the applications, if
19    applicable.
20        (6) The scores assigned to each applicant according to
21    the criteria, if applicable.
22        (7) A written determination, signed by an authorized
23    representative of the State grant-making agency, setting
24    forth the reason for the grant award decision, if
25    applicable.



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1        (8) The Notice of Award.
2        (9) Any other pre-award documents.
3        (10) The grant agreement and any renewals, if
4    applicable;
5        (11) All post-award, administration, and close-out
6    documents relating to the grant.
7        (12) Any other information relevant to the grant award.
8    (b) The grant file shall not include trade secrets or other
9competitively sensitive, confidential, or proprietary
11    (c) Each grant file shall be maintained by the State
12grant-making agency and, subject to the provisions of the
13Freedom of Information Act, shall be available for public
14inspection and copying within 7 calendar days following award
15of the grant.
16    (30 ILCS 708/115 new)
17    Sec. 115. Certifications and representations. Unless
18prohibited by State or federal statute, regulation, or
19administrative rule, each State awarding agency or
20pass-through entity is authorized to require the recipient or
21subrecipient to submit certifications and representations
22required by State or federal statute, regulation, or
23administrative rule.
24    (30 ILCS 708/120 new)



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1    Sec. 120. Required certifications. To assure that
2expenditures are proper and in accordance with the terms and
3conditions of the grant award and approved project budgets, all
4periodic and final financial reports, and all payment requests
5under the grant agreement, must include a certification, signed
6by an official who is authorized to legally bind the grantee or
7subrecipient, that reads as follows:
8        "By signing this report and/or payment request, I
9    certify to the best of my knowledge and belief that this
10    report is true, complete, and accurate; that the
11    expenditures, disbursements, and cash receipts are for the
12    purposes and objectives set forth in the terms and
13    conditions of the State or federal pass-through award; and
14    that supporting documentation has been submitted as
15    required by the grant agreement. I acknowledge that
16    approval for any item or expenditure described herein shall
17    be considered conditional subject to further review and
18    verification in accordance with the monitoring and records
19    retention provisions of the grant agreement. I am aware
20    that any false, fictitious, or fraudulent information, or
21    the omission of any material fact, may subject me to
22    criminal, civil or administrative penalties for fraud,
23    false statements, false claims or otherwise. (18 U.S.C.
24    §1001; 31 U.S.C. §§3729-3730 and §§3801-3812; 30 ILCS 708/
25    120.)"



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1    (30 ILCS 708/125 new)
2    Sec. 125. Expenditures prior to grant execution; reporting
4    (a) In the event that a recipient or subrecipient incurs
5expenses related to the grant award prior to the execution of
6the grant agreement but within the term of the grant, and the
7grant agreement is executed more than 30 days after the
8effective date of the grant, the recipient or subrecipient must
9submit to the State grant-making agency a report that accounts
10for eligible grant expenditures and project activities from the
11effective date of the grant up to and including the date of
12execution of the grant agreement.
13    (b) The recipient or subrecipient must submit the report to
14the State grant-making agency within 30 days of execution of
15the grant agreement.
16    (c) Only those expenses that are reasonable, allowable, and
17in furtherance of the purpose of the grant award shall be
19    (d) The State grant-making agency must approve the report
20prior to issuing any payment to the recipient or subrecipient.
21    (30 ILCS 708/130 new)
22    Sec. 130. Travel costs.
23    (a) General. Travel costs are the expenses for
24transportation, lodging, subsistence, and related items
25incurred by the employees of the recipient or subrecipient who



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1are in travel status on official business of the recipient or
2subrecipient. Such costs may only be charged to a State or
3federal pass-through grant based on an adopted policy by the
4recipient's or subrecipient's governing board. Absent a
5policy, the recipient or subrecipient must follow the rules of
6the Governor's Travel Control Board or the Higher Education
7Travel Control Board, whichever the granting agency follows. No
8policy can exceed federal travel regulations.
9    (b) Lodging and subsistence. Costs incurred for travel,
10including costs of lodging, other subsistence, and incidental
11expenses, must be considered reasonable and otherwise
12allowable only to the extent such costs do not exceed charges
13normally allowed by the Governor's Travel Control Board or the
14Higher Education Travel Control Board, whichever is the
15appropriate travel board. If the recipient or subrecipient does
16not have an adopted travel policy, the recipient or
17subrecipient must follow the rules of the Governor's Travel
18Control Board or the Higher Education Travel Control Board,
19whichever the granting agency follows. No policy can exceed
20federal travel regulations.
21    (30 ILCS 708/520 new)
22    Sec. 520. Separate accounts for State grant funds.
23Notwithstanding any provision of law to the contrary, all
24grants made and any grant agreement entered into, renewed, or
25extended on or after the effective date of this amendatory Act



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1of the 100th General Assembly, between a State grant-making
2agency and a nonprofit organization, shall require the
3nonprofit organization receiving grant funds to maintain those
4funds in an account which is separate and distinct from any
5account holding non-grant funds. Except as otherwise provided
6in an agreement between a State grant-making agency and a
7nonprofit organization, the grant funds held in a separate
8account by a nonprofit organization shall not be used for
9non-grant-related activities, and any unused grant funds shall
10be returned to the State grant-making agency.
11    Section 99. Effective date. This Act takes effect upon
12becoming law.