Bill Amendment: IL HB5064 | 2023-2024 | 103rd General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

---

Bill Title: FAIR CONTRACTING-VARIOUS

Status: 2024-05-09 - Added Co-Sponsor Rep. Katie Stuart [HB5064 Detail]

Download: Illinois-2023-HB5064-House_Amendment_001.html

---

Rep. Dagmara Avelar

Filed: 4/1/2024

10300HB5064ham001 LRB103 37557 HLH 71567 a
AMENDMENT TO HOUSE BILL 5064
AMENDMENT NO. ______. Amend House Bill 5064 by replacing
everything after the enacting clause with the following:
"Section 1. This Act may be referred to as the Community
Partner Fair Contracting Act.
Section 5. The State Comptroller Act is amended by
changing Sections 9 and 9.03 as follows:
(15 ILCS 405/9) (from Ch. 15, par. 209)
Sec. 9. Warrants; vouchers; preaudit.
(a) No payment may be made from public funds held by the
State Treasurer in or outside of the State treasury, except by
warrant drawn by the Comptroller and presented by him to the
treasurer to be countersigned except for payments made
pursuant to Section 9.03 or 9.05 of this Act.
(b) No warrant for the payment of money by the State

10300HB5064ham001 - 2 - LRB103 37557 HLH 71567 a
Treasurer may be drawn by the Comptroller without the
presentation of itemized vouchers indicating that the
obligation or expenditure is pursuant to law and authorized,
and authorizing the Comptroller to order payment.
(b-1) An itemized voucher for under $5 that is presented
to the Comptroller for payment may be paid through electronic
funds transfer unless the recipient is unable to receive an
electronic funds transfer or requests another form of payment.
This subsection (b-1) does not apply to (i) vouchers presented
by the legislative branch of State government, (ii) vouchers
presented by the State Treasurer's Office for the payment of
unclaimed property claims authorized under the Revised Uniform
Unclaimed Property Act, or (iii) vouchers presented by the
Department of Revenue for the payment of refunds of taxes
administered by the Department.
(c) The Comptroller shall examine each voucher required by
law to be filed with him and determine whether unencumbered
appropriations or unencumbered obligational or expenditure
authority other than by appropriation are legally available to
incur the obligation or to make the expenditure of public
funds. If he determines that unencumbered appropriations or
other obligational or expenditure authority are not available
from which to incur the obligation or make the expenditure,
the Comptroller shall refuse to draw a warrant.
(d) The Comptroller shall examine each voucher and all
other documentation required to accompany the voucher, and

10300HB5064ham001 - 3 - LRB103 37557 HLH 71567 a
shall ascertain whether the voucher and documentation meet all
requirements established by or pursuant to law. If the
Comptroller determines that the voucher and documentation do
not meet applicable requirements established by or pursuant to
law, he shall refuse to draw a warrant. As used in this
Section, "requirements established by or pursuant to law"
includes statutory enactments and requirements established by
rules and regulations adopted pursuant to this Act.
(e) Prior to drawing a warrant, the Comptroller may review
the voucher, any documentation accompanying the voucher, and
any other documentation related to the transaction on file
with him, and determine if the transaction is in accordance
with the law. If based on his review the Comptroller has reason
to believe that such transaction is not in accordance with the
law, he shall refuse to draw a warrant.
(f) Where the Comptroller refuses to draw a warrant
pursuant to this Section, he shall maintain separate records
of such transactions.
(g) State agencies shall have the principal responsibility
for the preaudit of their encumbrances, expenditures, and
other transactions as otherwise required by law.
(Source: P.A. 103-266, eff. 1-1-24.)
(15 ILCS 405/9.03) (from Ch. 15, par. 209.03)
Sec. 9.03. Direct deposit of State payments.
(a) The Comptroller, with the approval of the State

10300HB5064ham001 - 4 - LRB103 37557 HLH 71567 a
Treasurer, shall may provide by rule or regulation for the
direct deposit of any payment lawfully payable from the State
Treasury and in accordance with federal banking regulations
including but not limited to payments to (i) persons paid from
personal services, (ii) persons receiving benefit payments
from the Comptroller under the State pension systems, (iii)
individuals who receive assistance under Articles III, IV, and
VI of the Illinois Public Aid Code, (iv) providers of services
under the Mental Health and Developmental Disabilities
Administrative Act, (v) providers of community-based mental
health services, and (vi) providers of services under programs
administered by the State Board of Education, in the accounts
of those persons or entities maintained at a bank, savings and
loan association, or credit union, where authorized by the
payee. The Comptroller also may deposit public aid payments
for individuals who receive assistance under Articles III, IV,
VI, and X of the Illinois Public Aid Code directly into an
electronic benefits transfer account in a financial
institution approved by the State Treasurer as prescribed by
the Illinois Department of Human Services and in accordance
with the rules and regulations of that Department and the
rules and regulations adopted by the Comptroller and the State
Treasurer. The Comptroller, with the approval of the State
Treasurer, shall may provide by rule for the electronic direct
deposit of payments to public agencies and any other payee of
the State. The electronic direct deposits may be made to the

10300HB5064ham001 - 5 - LRB103 37557 HLH 71567 a
designated account in those financial institutions specified
in this Section for the direct deposit of payments. Within 6
months after the effective date of this amendatory Act of
1994, the Comptroller shall establish a pilot program for the
electronic direct deposit of payments to local school
districts, municipalities, and units of local government. The
payments may be made without the use of the voucher-warrant
system, provided that documentation of approval by the
Treasurer of each group of payments made by direct deposit
shall be retained by the Comptroller. The form and method of
the Treasurer's approval shall be established by the rules or
regulations adopted by the Comptroller under this Section.
(b) Except as provided in subsection (b-5), all State
payments for an employee's payroll or an employee's expense
reimbursement must be made through direct deposit. It is the
responsibility of the paying State agency to ensure compliance
with this mandate. If a State agency pays an employee's
payroll or an employee's expense reimbursement without using
direct deposit, the Comptroller may charge that employee a
processing fee of $2.50 per paper warrant. The processing fee
may be withheld from the employee's payment or reimbursement.
The amount collected from the fee shall be deposited into the
Comptroller's Administrative Fund.
(b-5) If an employee wants his or her payments deposited
into a secure check account, the employee must submit a direct
deposit form to the paying State agency for his or her payroll

10300HB5064ham001 - 6 - LRB103 37557 HLH 71567 a
or to the Comptroller for his or her expense reimbursements.
Upon acceptance of the direct deposit form, the Comptroller
shall disburse those funds to the secure check account. For
the purposes of this Section, "secure check account" means an
account established with a financial institution for the
employee that allows the dispensing of the funds in the
account through a third party who dispenses to the employee a
paper check.
(c) All State payments to a vendor that exceed the
allowable limit of paper warrants in a fiscal year, by the same
agency, must be made through direct deposit. It is the
responsibility of the paying State agency to ensure compliance
with this mandate. If a State agency pays a vendor more times
than the allowable limit in a single fiscal year without using
direct deposit, the Comptroller may charge the vendor a
processing fee of $2.50 per paper warrant. The processing fee
may be withheld from the vendor's payment. The amount
collected from the processing fee shall be deposited into the
Comptroller's Administrative Fund. The Office of the
Comptroller shall define "allowable limit" in the
Comptroller's Statewide Accounting Management System (SAMS)
manual, except that the allowable limit shall not be less than
30 paper warrants. The Office of the Comptroller shall also
provide reasonable notice to all State agencies of the
allowable limit of paper warrants.
(c-1) All State payments to an entity from a payroll or

10300HB5064ham001 - 7 - LRB103 37557 HLH 71567 a
retirement voluntary deduction must be made through direct
deposit. If an entity receives a payment from a payroll or
retirement voluntary deduction without using direct deposit,
the Comptroller may charge the entity a processing fee of
$2.50 per paper warrant. The processing fee may be withheld
from the entity's payment or billed to the entity at a later
date. The amount collected from the processing fee shall be
deposited into the Comptroller's Administrative Fund. The
Comptroller shall provide reasonable notice to all entities
impacted by this requirement. Any new entities that receive a
payroll or retirement voluntary deduction must sign up for
direct deposit during the application process.
(c-2) The detail information, such as names, identifiers,
and amounts, associated with a State payment to an entity from
a payroll or retirement voluntary deduction must be retrieved
by the entity from the Comptroller's designated Internet
website or an electronic alternative approved by the
Comptroller. If the entity requires the Comptroller to mail
the detail information, the Comptroller may charge the entity
a processing fee up to $25.00 per mailing. Any processing fee
will be billed to the entity at a later date. The amount
collected from the processing fee shall be deposited into the
Comptroller's Administrative Fund. The Comptroller shall
provide reasonable notice to all entities impacted by this
requirement.
(d) State employees covered by provisions in collective

10300HB5064ham001 - 8 - LRB103 37557 HLH 71567 a
bargaining agreements that do not require direct deposit of
paychecks are exempt from this mandate. No later than 60 days
after the effective date of this amendatory Act of the 97th
General Assembly, all State agencies must provide to the
Office of the Comptroller a list of employees that are exempt
under this subsection (d) from the direct deposit mandate. In
addition, a State employee or vendor may file a hardship
petition with the Office of the Comptroller requesting an
exemption from the direct deposit mandate under this Section.
A hardship petition shall be made available for download on
the Comptroller's official Internet website.
(e) Notwithstanding any provision of law to the contrary,
the direct deposit of State payments under this Section for an
employee's payroll, an employee's expense reimbursement, or a
State vendor's payment does not authorize the State to
automatically withdraw funds from those accounts.
(f) For the purposes of this Section, "vendor" means a
non-governmental entity with a taxpayer identification number
issued by the Social Security Administration or Internal
Revenue Service that receives payments through the
Comptroller's commercial system. The term does not include
State agencies.
(g) The requirements of this Section do not apply to the
legislative or judicial branches of State government.
(Source: P.A. 97-348, eff. 8-12-11; 97-993, eff. 9-16-12;
98-463, eff. 8-16-13; 98-1043, eff. 8-25-14.)

10300HB5064ham001 - 9 - LRB103 37557 HLH 71567 a
Section 10. The State Finance Act is amended by changing
Section 25 as follows:
(30 ILCS 105/25) (from Ch. 127, par. 161)
Sec. 25. Fiscal year limitations.
(a) All appropriations shall be available for expenditure
for the fiscal year or for a lesser period if the Act making
that appropriation so specifies. A deficiency or emergency
appropriation shall be available for expenditure only through
June 30 of the year when the Act making that appropriation is
enacted unless that Act otherwise provides.
(b) Outstanding liabilities as of June 30, payable from
appropriations which have otherwise expired, may be paid out
of the expiring appropriations during the 3-month 2-month
period ending at the close of business on September 30 August
31. Any service involving professional or artistic skills or
any personal services by an employee whose compensation is
subject to income tax withholding must be performed as of June
30 of the fiscal year in order to be considered an "outstanding
liability as of June 30" that is thereby eligible for payment
out of the expiring appropriation.
(b-1) However, payment of tuition reimbursement claims
under Section 14-7.03 or 18-3 of the School Code may be made by
the State Board of Education from its appropriations for those
respective purposes for any fiscal year, even though the

10300HB5064ham001 - 10 - LRB103 37557 HLH 71567 a
claims reimbursed by the payment may be claims attributable to
a prior fiscal year, and payments may be made at the direction
of the State Superintendent of Education from the fund from
which the appropriation is made without regard to any fiscal
year limitations, except as required by subsection (j) of this
Section. Beginning on June 30, 2021, payment of tuition
reimbursement claims under Section 14-7.03 or 18-3 of the
School Code as of June 30, payable from appropriations that
have otherwise expired, may be paid out of the expiring
appropriation during the 4-month period ending at the close of
business on October 31.
(b-2) (Blank).
(b-2.5) (Blank).
(b-2.6) (Blank).
(b-2.6a) (Blank).
(b-2.6b) (Blank).
(b-2.6c) (Blank).
(b-2.6d) All outstanding liabilities as of June 30, 2020,
payable from appropriations that would otherwise expire at the
conclusion of the lapse period for fiscal year 2020, and
interest penalties payable on those liabilities under the
State Prompt Payment Act, may be paid out of the expiring
appropriations until December 31, 2020, without regard to the
fiscal year in which the payment is made, as long as vouchers
for the liabilities are received by the Comptroller no later
than September 30, 2020.

10300HB5064ham001 - 11 - LRB103 37557 HLH 71567 a
(b-2.6e) All outstanding liabilities as of June 30, 2021,
payable from appropriations that would otherwise expire at the
conclusion of the lapse period for fiscal year 2021, and
interest penalties payable on those liabilities under the
State Prompt Payment Act, may be paid out of the expiring
appropriations until September 30, 2021, without regard to the
fiscal year in which the payment is made.
(b-2.7) For fiscal years 2012, 2013, 2014, 2018, and each
fiscal year thereafter, interest penalties payable under the
State Prompt Payment Act associated with a voucher for which
payment is issued after June 30 may be paid out of the next
fiscal year's appropriation. The future year appropriation
must be for the same purpose and from the same fund as the
original payment. An interest penalty voucher submitted
against a future year appropriation must be submitted within
60 days after the issuance of the associated voucher, except
that, for fiscal year 2018 only, an interest penalty voucher
submitted against a future year appropriation must be
submitted within 60 days of June 5, 2019 (the effective date of
Public Act 101-10). The Comptroller must issue the interest
payment within 60 days after acceptance of the interest
voucher.
(b-3) Medical payments may be made by the Department of
Veterans' Affairs from its appropriations for those purposes
for any fiscal year, without regard to the fact that the
medical services being compensated for by such payment may

10300HB5064ham001 - 12 - LRB103 37557 HLH 71567 a
have been rendered in a prior fiscal year, except as required
by subsection (j) of this Section. Beginning on June 30, 2021,
medical payments payable from appropriations that have
otherwise expired may be paid out of the expiring
appropriation during the 4-month period ending at the close of
business on October 31.
(b-4) Medical payments and child care payments may be made
by the Department of Human Services (as successor to the
Department of Public Aid) from appropriations for those
purposes for any fiscal year, without regard to the fact that
the medical or child care services being compensated for by
such payment may have been rendered in a prior fiscal year; and
payments may be made at the direction of the Department of
Healthcare and Family Services (or successor agency) from the
Health Insurance Reserve Fund without regard to any fiscal
year limitations, except as required by subsection (j) of this
Section. Beginning on June 30, 2021, medical and child care
payments made by the Department of Human Services and payments
made at the discretion of the Department of Healthcare and
Family Services (or successor agency) from the Health
Insurance Reserve Fund and payable from appropriations that
have otherwise expired may be paid out of the expiring
appropriation during the 4-month period ending at the close of
business on October 31.
(b-5) Medical payments may be made by the Department of
Human Services from its appropriations relating to substance

10300HB5064ham001 - 13 - LRB103 37557 HLH 71567 a
abuse treatment services for any fiscal year, without regard
to the fact that the medical services being compensated for by
such payment may have been rendered in a prior fiscal year,
provided the payments are made on a fee-for-service basis
consistent with requirements established for Medicaid
reimbursement by the Department of Healthcare and Family
Services, except as required by subsection (j) of this
Section. Beginning on June 30, 2021, medical payments made by
the Department of Human Services relating to substance abuse
treatment services payable from appropriations that have
otherwise expired may be paid out of the expiring
appropriation during the 4-month period ending at the close of
business on October 31.
(b-6) (Blank).
(b-7) Payments may be made in accordance with a plan
authorized by paragraph (11) or (12) of Section 405-105 of the
Department of Central Management Services Law from
appropriations for those payments without regard to fiscal
year limitations.
(b-8) Reimbursements to eligible airport sponsors for the
construction or upgrading of Automated Weather Observation
Systems may be made by the Department of Transportation from
appropriations for those purposes for any fiscal year, without
regard to the fact that the qualification or obligation may
have occurred in a prior fiscal year, provided that at the time
the expenditure was made the project had been approved by the

10300HB5064ham001 - 14 - LRB103 37557 HLH 71567 a
Department of Transportation prior to June 1, 2012 and, as a
result of recent changes in federal funding formulas, can no
longer receive federal reimbursement.
(b-9) (Blank).
(c) Further, payments may be made by the Department of
Public Health and the Department of Human Services (acting as
successor to the Department of Public Health under the
Department of Human Services Act) from their respective
appropriations for grants for medical care to or on behalf of
premature and high-mortality risk infants and their mothers
and for grants for supplemental food supplies provided under
the United States Department of Agriculture Women, Infants and
Children Nutrition Program, for any fiscal year without regard
to the fact that the services being compensated for by such
payment may have been rendered in a prior fiscal year, except
as required by subsection (j) of this Section. Beginning on
June 30, 2021, payments made by the Department of Public
Health and the Department of Human Services from their
respective appropriations for grants for medical care to or on
behalf of premature and high-mortality risk infants and their
mothers and for grants for supplemental food supplies provided
under the United States Department of Agriculture Women,
Infants and Children Nutrition Program payable from
appropriations that have otherwise expired may be paid out of
the expiring appropriations during the 4-month period ending
at the close of business on October 31.

10300HB5064ham001 - 15 - LRB103 37557 HLH 71567 a
(d) The Department of Public Health and the Department of
Human Services (acting as successor to the Department of
Public Health under the Department of Human Services Act)
shall each annually submit to the State Comptroller, Senate
President, Senate Minority Leader, Speaker of the House, House
Minority Leader, and the respective Chairmen and Minority
Spokesmen of the Appropriations Committees of the Senate and
the House, on or before December 31, a report of fiscal year
funds used to pay for services provided in any prior fiscal
year. This report shall document by program or service
category those expenditures from the most recently completed
fiscal year used to pay for services provided in prior fiscal
years.
(e) The Department of Healthcare and Family Services, the
Department of Human Services (acting as successor to the
Department of Public Aid), and the Department of Human
Services making fee-for-service payments relating to substance
abuse treatment services provided during a previous fiscal
year shall each annually submit to the State Comptroller,
Senate President, Senate Minority Leader, Speaker of the
House, House Minority Leader, the respective Chairmen and
Minority Spokesmen of the Appropriations Committees of the
Senate and the House, on or before November 30, a report that
shall document by program or service category those
expenditures from the most recently completed fiscal year used
to pay for (i) services provided in prior fiscal years and (ii)

10300HB5064ham001 - 16 - LRB103 37557 HLH 71567 a
services for which claims were received in prior fiscal years.
(f) The Department of Human Services (as successor to the
Department of Public Aid) shall annually submit to the State
Comptroller, Senate President, Senate Minority Leader, Speaker
of the House, House Minority Leader, and the respective
Chairmen and Minority Spokesmen of the Appropriations
Committees of the Senate and the House, on or before December
31, a report of fiscal year funds used to pay for services
(other than medical care) provided in any prior fiscal year.
This report shall document by program or service category
those expenditures from the most recently completed fiscal
year used to pay for services provided in prior fiscal years.
(g) In addition, each annual report required to be
submitted by the Department of Healthcare and Family Services
under subsection (e) shall include the following information
with respect to the State's Medicaid program:
(1) Explanations of the exact causes of the variance
between the previous year's estimated and actual
liabilities.
(2) Factors affecting the Department of Healthcare and
Family Services' liabilities, including, but not limited
to, numbers of aid recipients, levels of medical service
utilization by aid recipients, and inflation in the cost
of medical services.
(3) The results of the Department's efforts to combat
fraud and abuse.

10300HB5064ham001 - 17 - LRB103 37557 HLH 71567 a
(h) As provided in Section 4 of the General Assembly
Compensation Act, any utility bill for service provided to a
General Assembly member's district office for a period
including portions of 2 consecutive fiscal years may be paid
from funds appropriated for such expenditure in either fiscal
year.
(i) An agency which administers a fund classified by the
Comptroller as an internal service fund may issue rules for:
(1) billing user agencies in advance for payments or
authorized inter-fund transfers based on estimated charges
for goods or services;
(2) issuing credits, refunding through inter-fund
transfers, or reducing future inter-fund transfers during
the subsequent fiscal year for all user agency payments or
authorized inter-fund transfers received during the prior
fiscal year which were in excess of the final amounts owed
by the user agency for that period; and
(3) issuing catch-up billings to user agencies during
the subsequent fiscal year for amounts remaining due when
payments or authorized inter-fund transfers received from
the user agency during the prior fiscal year were less
than the total amount owed for that period.
User agencies are authorized to reimburse internal service
funds for catch-up billings by vouchers drawn against their
respective appropriations for the fiscal year in which the
catch-up billing was issued or by increasing an authorized

10300HB5064ham001 - 18 - LRB103 37557 HLH 71567 a
inter-fund transfer during the current fiscal year. For the
purposes of this Act, "inter-fund transfers" means transfers
without the use of the voucher-warrant process, as authorized
by Section 9.01 of the State Comptroller Act.
(i-1) Beginning on July 1, 2021, all outstanding
liabilities, not payable during the 4-month lapse period as
described in subsections (b-1), (b-3), (b-4), (b-5), and (c)
of this Section, that are made from appropriations for that
purpose for any fiscal year, without regard to the fact that
the services being compensated for by those payments may have
been rendered in a prior fiscal year, are limited to only those
claims that have been incurred but for which a proper bill or
invoice as defined by the State Prompt Payment Act has not been
received by September 30th following the end of the fiscal
year in which the service was rendered.
(j) Notwithstanding any other provision of this Act, the
aggregate amount of payments to be made without regard for
fiscal year limitations as contained in subsections (b-1),
(b-3), (b-4), (b-5), and (c) of this Section, and determined
by using Generally Accepted Accounting Principles, shall not
exceed the following amounts:
(1) $6,000,000,000 for outstanding liabilities related
to fiscal year 2012;
(2) $5,300,000,000 for outstanding liabilities related
to fiscal year 2013;
(3) $4,600,000,000 for outstanding liabilities related

10300HB5064ham001 - 19 - LRB103 37557 HLH 71567 a
to fiscal year 2014;
(4) $4,000,000,000 for outstanding liabilities related
to fiscal year 2015;
(5) $3,300,000,000 for outstanding liabilities related
to fiscal year 2016;
(6) $2,600,000,000 for outstanding liabilities related
to fiscal year 2017;
(7) $2,000,000,000 for outstanding liabilities related
to fiscal year 2018;
(8) $1,300,000,000 for outstanding liabilities related
to fiscal year 2019;
(9) $600,000,000 for outstanding liabilities related
to fiscal year 2020; and
(10) $0 for outstanding liabilities related to fiscal
year 2021 and fiscal years thereafter.
(k) Department of Healthcare and Family Services Medical
Assistance Payments.
(1) Definition of Medical Assistance.
For purposes of this subsection, the term "Medical
Assistance" shall include, but not necessarily be
limited to, medical programs and services authorized
under Titles XIX and XXI of the Social Security Act,
the Illinois Public Aid Code, the Children's Health
Insurance Program Act, the Covering ALL KIDS Health
Insurance Act, the Long Term Acute Care Hospital
Quality Improvement Transfer Program Act, and medical

10300HB5064ham001 - 20 - LRB103 37557 HLH 71567 a
care to or on behalf of persons suffering from chronic
renal disease, persons suffering from hemophilia, and
victims of sexual assault.
(2) Limitations on Medical Assistance payments that
may be paid from future fiscal year appropriations.
(A) The maximum amounts of annual unpaid Medical
Assistance bills received and recorded by the
Department of Healthcare and Family Services on or
before June 30th of a particular fiscal year
attributable in aggregate to the General Revenue Fund,
Healthcare Provider Relief Fund, Tobacco Settlement
Recovery Fund, Long-Term Care Provider Fund, and the
Drug Rebate Fund that may be paid in total by the
Department from future fiscal year Medical Assistance
appropriations to those funds are: $700,000,000 for
fiscal year 2013 and $100,000,000 for fiscal year 2014
and each fiscal year thereafter.
(B) Bills for Medical Assistance services rendered
in a particular fiscal year, but received and recorded
by the Department of Healthcare and Family Services
after June 30th of that fiscal year, may be paid from
either appropriations for that fiscal year or future
fiscal year appropriations for Medical Assistance.
Such payments shall not be subject to the requirements
of subparagraph (A).
(C) Medical Assistance bills received by the

10300HB5064ham001 - 21 - LRB103 37557 HLH 71567 a
Department of Healthcare and Family Services in a
particular fiscal year, but subject to payment amount
adjustments in a future fiscal year may be paid from a
future fiscal year's appropriation for Medical
Assistance. Such payments shall not be subject to the
requirements of subparagraph (A).
(D) Medical Assistance payments made by the
Department of Healthcare and Family Services from
funds other than those specifically referenced in
subparagraph (A) may be made from appropriations for
those purposes for any fiscal year without regard to
the fact that the Medical Assistance services being
compensated for by such payment may have been rendered
in a prior fiscal year. Such payments shall not be
subject to the requirements of subparagraph (A).
(3) Extended lapse period for Department of Healthcare
and Family Services Medical Assistance payments.
Notwithstanding any other State law to the contrary,
outstanding Department of Healthcare and Family Services
Medical Assistance liabilities, as of June 30th, payable
from appropriations which have otherwise expired, may be
paid out of the expiring appropriations during the 4-month
period ending at the close of business on October 31st.
(l) The changes to this Section made by Public Act 97-691
shall be effective for payment of Medical Assistance bills
incurred in fiscal year 2013 and future fiscal years. The

10300HB5064ham001 - 22 - LRB103 37557 HLH 71567 a
changes to this Section made by Public Act 97-691 shall not be
applied to Medical Assistance bills incurred in fiscal year
2012 or prior fiscal years.
(m) The Comptroller must issue payments against
outstanding liabilities that were received prior to the lapse
period deadlines set forth in this Section as soon thereafter
as practical, but no payment may be issued after the 4 months
following the lapse period deadline without the signed
authorization of the Comptroller and the Governor or as
provided by Section 18 of the Court of Claims Act.
(Source: P.A. 102-16, eff. 6-17-21; 102-291, eff. 8-6-21;
102-699, eff. 4-19-22; 102-813, eff. 5-13-22; 103-8, eff.
6-7-23.)
Section 15. The State Prompt Payment Act is amended by
changing Sections 1, 3-2, 3-3, 3-6, 5, and 7 as follows:
(30 ILCS 540/1) (from Ch. 127, par. 132.401)
Sec. 1. This Act applies to any State official or agency
authorized to provide for payment from State funds, by virtue
of any appropriation of the General Assembly, for goods or
services furnished to the State.
For purposes of this Act, "goods or services furnished to
the State" include but are not limited to (i) covered health
care provided to eligible members and their covered dependents
in accordance with the State Employees Group Insurance Act of

10300HB5064ham001 - 23 - LRB103 37557 HLH 71567 a
1971, including coverage through a physician-owned health
maintenance organization under Section 6.1 of that Act, (ii)
prevention, intervention, or treatment services and supports
for persons with developmental disabilities, mental health
services, alcohol and substance abuse services, rehabilitation
services, and early intervention services provided by a
vendor, and (iii) prevention, intervention, or treatment
services and supports for youth provided by a vendor by virtue
of a contractual grant agreement. For the purposes of items
(ii) and (iii), a vendor includes but is not limited to sellers
of goods and services, including community-based organizations
that are licensed to provide prevention, intervention, or
treatment services and supports for persons with developmental
disabilities, mental illness, and substance abuse problems, or
that provides prevention, intervention, or treatment services
and supports for youth.
For the purposes of this Act, "appropriate State official
or agency" is defined as the Director or Chief Executive or his
designee of that State agency or department or facility of
such agency or department. With respect to covered health care
provided to eligible members and their dependents in
accordance with the State Employees Group Insurance Act of
1971, "appropriate State official or agency" also includes an
administrator of a program of health benefits under that Act.
As used in this Act, "eligible member" means a member who
is eligible for health benefits under the State Employees

10300HB5064ham001 - 24 - LRB103 37557 HLH 71567 a
Group Insurance Act of 1971, and "member" and "dependent" have
the meanings ascribed to those terms in that Act.
As used in this Act, "a proper bill or invoice" means a
bill or invoice, including, but not limited to, an invoice
issued under a contractual grant agreement, that includes the
information necessary for processing the payment as may be
specified by a State agency and in rules adopted in accordance
with this Act. Beginning on and after July 1, 2021, "a proper
bill or invoice" shall also include the names of all
subcontractors or subconsultants to be paid from the bill or
invoice and the amounts due to each of them, if any.
(Source: P.A. 100-549, eff. 1-1-18; 101-524, eff. 1-1-20.)
(30 ILCS 540/3-2)
Sec. 3-2. Beginning July 1, 1993, in any instance where a
State official or agency is late in payment of a vendor's bill
or invoice for goods or services furnished to the State, as
defined in Section 1, properly approved in accordance with
rules promulgated under Section 3-3, the State official or
agency shall pay interest to the vendor in accordance with the
following:
(1) (Blank). Any bill, except a bill submitted under
Article V of the Illinois Public Aid Code and except as
provided under paragraph (1.05) of this Section, approved
for payment under this Section must be paid or the payment
issued to the payee within 60 days of receipt of a proper

10300HB5064ham001 - 25 - LRB103 37557 HLH 71567 a
bill or invoice. If payment is not issued to the payee
within this 60-day period, an interest penalty of 1.0% of
any amount approved and unpaid shall be added for each
month or fraction thereof after the end of this 60-day
period, until final payment is made. Any bill, except a
bill for pharmacy or nursing facility services or goods,
and except as provided under paragraph (1.05) of this
Section, submitted under Article V of the Illinois Public
Aid Code approved for payment under this Section must be
paid or the payment issued to the payee within 60 days
after receipt of a proper bill or invoice, and, if payment
is not issued to the payee within this 60-day period, an
interest penalty of 2.0% of any amount approved and unpaid
shall be added for each month or fraction thereof after
the end of this 60-day period, until final payment is
made. Any bill for pharmacy or nursing facility services
or goods submitted under Article V of the Illinois Public
Aid Code, except as provided under paragraph (1.05) of
this Section, and approved for payment under this Section
must be paid or the payment issued to the payee within 60
days of receipt of a proper bill or invoice. If payment is
not issued to the payee within this 60-day period, an
interest penalty of 1.0% of any amount approved and unpaid
shall be added for each month or fraction thereof after
the end of this 60-day period, until final payment is
made.

10300HB5064ham001 - 26 - LRB103 37557 HLH 71567 a
(1.05) Except as provided in paragraph (3) of this
Section, for For State fiscal years year 2012 through 2024
and future fiscal years, any bill approved for payment
under this Section must be paid or the payment issued to
the payee within 90 days of receipt of a proper bill or
invoice. If payment is not issued to the payee within this
90-day period, an interest penalty of 1.0% of any amount
approved and unpaid shall be added for each month, or
0.033% (one-thirtieth of one percent) of any amount
approved and unpaid for each day, after the end of this
90-day period, until final payment is made.
For State fiscal year 2025 and future fiscal years,
any bill approved for payment under this Section must be
paid or the payment issued to the payee within 60 days of
receipt of a proper bill or invoice. If payment is not
issued to the payee within this 60-day period, an interest
penalty of 1% of any amount approved and unpaid shall be
added for each month, or 0.033% (one-thirtieth of one
percent) of any amount approved and unpaid for each day,
after the end of this 60-day period, until final payment
is made.
(1.1) A State agency shall review in a timely manner
each bill or invoice within 30 days after its receipt. If
the State agency determines that the bill or invoice
contains a defect making it unable to process the payment
request, the agency shall notify the vendor requesting

10300HB5064ham001 - 27 - LRB103 37557 HLH 71567 a
payment as soon as possible after discovering the defect
pursuant to rules promulgated under Section 3-3; provided,
however, that the notice for construction related bills or
invoices must be given not later than 30 days after the
bill or invoice was first submitted. The notice shall
identify the defect and any additional information
necessary to correct the defect. If one or more items on a
construction related bill or invoice are disapproved, but
not the entire bill or invoice, then the portion that is
not disapproved shall be paid in accordance with the
requirements of this Act.
(2) Where a State official or agency is late in
payment of a vendor's bill or invoice properly approved in
accordance with this Act, and different late payment terms
are not reduced to writing as a contractual agreement, the
State official or agency shall automatically pay interest
penalties required by this Section amounting to $50 or
more to the appropriate vendor. Each agency shall be
responsible for determining whether an interest penalty is
owed and for paying the interest to the vendor. Except as
provided in paragraph (4), an individual interest payment
amounting to $5 or less shall not be paid by the State.
Interest due to a vendor that amounts to greater than $5
and less than $50 shall not be paid but shall be accrued
until all interest due the vendor for all similar warrants
exceeds $50, at which time the accrued interest shall be

10300HB5064ham001 - 28 - LRB103 37557 HLH 71567 a
payable and interest will begin accruing again, except
that interest accrued as of the end of the fiscal year that
does not exceed $50 shall be payable at that time. In the
event an individual has paid a vendor for services in
advance, the provisions of this Section shall apply until
payment is made to that individual.
(3) The provisions of Public Act 96-1501 reducing the
interest rate on pharmacy claims under Article V of the
Illinois Public Aid Code to 1.0% per month shall apply to
any pharmacy bills for services and goods under Article V
of the Illinois Public Aid Code received on or after the
date 60 days before January 25, 2011 (the effective date
of Public Act 96-1501) except as provided under paragraph
(1.05) of this Section.
(4) Interest amounting to less than $5 shall not be
paid by the State, except for claims (i) to the Department
of Healthcare and Family Services or the Department of
Human Services, (ii) pursuant to Article V of the Illinois
Public Aid Code, the Covering ALL KIDS Health Insurance
Act, or the Children's Health Insurance Program Act, and
(iii) made (A) by pharmacies for prescriptive services or
(B) by any federally qualified health center for
prescriptive services or any other services.
Notwithstanding any provision to the contrary, interest
may not be paid under this Act when: (1) a Chief Procurement
Officer has voided the underlying contract for goods or

10300HB5064ham001 - 29 - LRB103 37557 HLH 71567 a
services under Article 50 of the Illinois Procurement Code; or
(2) the Auditor General is conducting a performance or program
audit and the Comptroller has held or is holding for review a
related contract or vouchers for payment of goods or services
in the exercise of duties under Section 9 of the State
Comptroller Act. In such event, interest shall not accrue
during the pendency of the Auditor General's review.
(Source: P.A. 100-1064, eff. 8-24-18.)
(30 ILCS 540/3-3) (from Ch. 127, par. 132.403-3)
Sec. 3-3. The State Comptroller and the Department of
Central Management Services shall jointly promulgate rules and
policies to govern the uniform application of this Act. These
rules and policies shall include procedures and time frames
for approving a bill or invoice from a vendor for goods or
services furnished to the State. Those rules shall require
that action to approve or reject a bill or invoice shall be
taken not more than 30 days after receiving the bill or invoice
from the vendor. These rules and policies shall provide for
procedures and time frames applicable to payment plans as may
be agreed upon between State agencies and vendors. These rules
and policies shall be binding on all officials and agencies
under this Act's jurisdiction. These rules and policies may be
made effective no earlier than July 1, 1993.
(Source: P.A. 92-384, eff. 7-1-02.)

10300HB5064ham001 - 30 - LRB103 37557 HLH 71567 a
(30 ILCS 540/3-6)
Sec. 3-6. Federal funds; lack of authority. If an agency
incurs an interest liability under this Act that cannot be
charged to the same expenditure authority account to which the
related goods or services were charged due to federal
prohibitions, the agency is authorized to pay the interest
from its available appropriations from any funding source the
General Revenue Fund.
(Source: P.A. 100-587, eff. 6-4-18.)
(30 ILCS 540/5) (from Ch. 127, par. 132.405)
Sec. 5. The State remittance and the grant agreement shall
indicate that payment of interest may be available for failure
to comply with this Act.
(Source: P.A. 92-384, eff. 7-1-02.)
(30 ILCS 540/7) (from Ch. 127, par. 132.407)
Sec. 7. Payments to subcontractors and material suppliers.
(a) When a State official or agency responsible for
administering a contract receives a bill or invoice from a
contractor, that State official or agency shall confirm the
date on which the bill or invoice was received within 5
business days of receipt, and shall transmit any approved
amount to the Comptroller within 30 days of receipt.
(a-1) When a State official or agency responsible for
administering a contract submits a voucher to the Comptroller

10300HB5064ham001 - 31 - LRB103 37557 HLH 71567 a
for payment to a contractor, that State official or agency
shall promptly make available electronically the voucher
number, the date of the voucher, and the amount of the voucher
within 5 business days of submitting the voucher to the
Comptroller. The State official or agency responsible for
administering the contract shall provide subcontractors and
material suppliers, known to the State official or agency,
with instructions on how to access the electronic information
on the Comptroller's website.
(a-5) When a contractor receives any payment, the
contractor shall pay each subcontractor and material supplier
electronically within 10 business days or 15 calendar days,
whichever occurs earlier, or, if paid by a printed check, the
printed check must be postmarked within 10 business days or 15
calendar days, whichever occurs earlier, after receiving
payment in proportion to the work completed by each
subcontractor and material supplier its application or pay
estimate, plus interest received under this Act. When a
contractor receives any payment, the contractor shall pay each
lower-tiered subcontractor and material supplier and each
subcontractor and material supplier shall make payment to its
own respective subcontractors and material suppliers. If the
contractor receives less than the full payment due under the
public construction contract, the contractor shall be
obligated to disburse on a pro rata basis those funds
received, plus interest received under this Act, with the

10300HB5064ham001 - 32 - LRB103 37557 HLH 71567 a
contractor, subcontractors and material suppliers each
receiving a prorated portion based on the amount of payment
each has earned. When, however, the State official or agency
does not release the full payment due under the contract
because there are specific areas of work or materials the
State agency or official has determined are not suitable for
payment, then those specific subcontractors or material
suppliers involved shall not be paid for that portion of work
rejected or deemed not suitable for payment and all other
subcontractors and suppliers shall be paid based upon the
amount of payment each has earned, plus interest received
under this Act.
(a-10) For construction contracts with the Department of
Transportation, the contractor, subcontractor, or material
supplier, regardless of tier, shall not offset, decrease, or
diminish payment or payments that are due to its
subcontractors or material suppliers without reasonable cause.
A contractor, who refuses to make prompt payment within 10
business days or 15 calendar days, whichever occurs earlier,
after receiving payment, in whole or in part, shall provide to
the subcontractor or material supplier and the public owner or
its agent, a written notice of that refusal. The written
notice shall be made by a contractor no later than 5 calendar
days after payment is received by the contractor. The written
notice shall identify the Department of Transportation's
contract, any subcontract or material purchase agreement, a

10300HB5064ham001 - 33 - LRB103 37557 HLH 71567 a
detailed reason for refusal, the value of the payment to be
withheld, and the specific remedial actions required of the
subcontractor or material supplier so that payment may be
made. Written notice of refusal may be given in a form and
method which is acceptable to the parties and public owner.
(b) If the contractor, without reasonable cause, fails to
make full payment of amounts due under subsection (a) to its
subcontractors and material suppliers within 10 business days
or 15 calendar days, whichever occurs earlier, after receipt
of payment from the State official or agency, the contractor
shall pay to its subcontractors and material suppliers, in
addition to the payment due them, interest in the amount of 2%
per month, calculated from the expiration of the
10-business-day period or the 15-calendar-day period until
fully paid. This subsection shall further apply to any
payments made by subcontractors and material suppliers to
their subcontractors and material suppliers and to all
payments made to lower tier subcontractors and material
suppliers throughout the contracting chain.
(1) If a contractor, without reasonable cause, fails
to make payment in full as provided in subsection (a-5)
within 10 business days or 15 calendar days, whichever
occurs earlier, after receipt of payment under the public
construction contract, any subcontractor or material
supplier to whom payments are owed may file a written
notice and request for administrative hearing with the

10300HB5064ham001 - 34 - LRB103 37557 HLH 71567 a
State official or agency setting forth the amount owed by
the contractor and the contractor's failure to timely pay
the amount owed. The written notice and request for
administrative hearing shall identify the public
construction contract, the contractor, and the amount
owed, and shall contain a sworn statement or attestation
to verify the accuracy of the notice. The notice and
request for administrative hearing shall be filed with the
State official for the public construction contract, with
a copy of the notice concurrently provided to the
contractor. Notice to the State official may be made by
certified or registered mail, messenger service, or
personal service, and must include proof of delivery to
the State official.
(2) The State official or agency, within 15 calendar
days after receipt of a subcontractor's or material
supplier's written notice and request for administrative
hearing, shall hold a hearing convened by an
administrative law judge to determine whether the
contractor withheld payment, without reasonable cause,
from the subcontractors or material suppliers and what
amount, if any, is due to the subcontractors or material
suppliers, and the reasonable cause or causes asserted by
the contractor. The State official or agency shall provide
appropriate notice to the parties of the date, time, and
location of the hearing. Each contractor, subcontractor,

10300HB5064ham001 - 35 - LRB103 37557 HLH 71567 a
or material supplier has the right to be represented by
counsel at a hearing and to cross-examine witnesses and
challenge documents. Upon the request of the subcontractor
or material supplier and a showing of good cause,
reasonable continuances may be granted by the
administrative law judge.
(3) Upon a finding by the administrative law judge
that the contractor failed to make payment in full,
without reasonable cause, as provided in subsection
(a-10), then the administrative law judge shall, in
writing, order the contractor to pay the amount owed to
the subcontractors or material suppliers plus interest
within 15 calendar days after the order.
(4) If a contractor fails to make full payment as
ordered under paragraph (3) of this subsection (b) within
15 days after the administrative law judge's order, then
the contractor shall be barred from entering into a State
public construction contract for a period of one year
beginning on the date of the administrative law judge's
order.
(5) If, on 2 or more occasions within a
3-calendar-year period, there is a finding by an
administrative law judge that the contractor failed to
make payment in full, without reasonable cause, and a
written order was issued to a contractor under paragraph
(3) of this subsection (b), then the contractor shall be

10300HB5064ham001 - 36 - LRB103 37557 HLH 71567 a
barred from entering into a State public construction
contract for a period of 6 months beginning on the date of
the administrative law judge's second written order, even
if the payments required under the orders were made in
full.
(6) If a contractor fails to make full payment as
ordered under paragraph (4) of this subsection (b), the
subcontractor or material supplier may, within 30 days of
the date of that order, petition the State agency for an
order for reasonable attorney's fees and costs incurred in
the prosecution of the action under this subsection (b).
Upon that petition and taking of additional evidence, as
may be required, the administrative law judge may issue a
supplemental order directing the contractor to pay those
reasonable attorney's fees and costs.
(7) The written order of the administrative law judge
shall be final and appealable under the Administrative
Review Law.
(b-5) On or before July 2021, the Department of
Transportation shall publish on its website a searchable
database that allows for queries for each active construction
contract by the name of a subcontractor or the pay item such
that each pay item is associated with either the prime
contractor or a subcontractor.
(c) This Section shall not be construed to in any manner
diminish, negate, or interfere with the

10300HB5064ham001 - 37 - LRB103 37557 HLH 71567 a
contractor-subcontractor or contractor-material supplier
relationship or commercially useful function.
(d) This Section shall not preclude, bar, or stay the
rights, remedies, and defenses available to the parties by way
of the operation of their contract, purchase agreement, the
Mechanics Lien Act, or the Public Construction Bond Act.
(e) State officials and agencies may adopt rules as may be
deemed necessary in order to establish the formal procedures
required under this Section.
(f) As used in this Section:
"Payment" means the discharge of an obligation in money or
other valuable consideration or thing delivered in full or
partial satisfaction of an obligation to pay. "Payment" shall
include interest paid pursuant to this Act.
"Reasonable cause" may include, but is not limited to,
unsatisfactory workmanship or materials; failure to provide
documentation required by the contract, subcontract, or
material purchase agreement; claims made against the
Department of Transportation or the subcontractor pursuant to
subsection (c) of Section 23 of the Mechanics Lien Act or the
Public Construction Bond Act; judgments, levies, garnishments,
or other court-ordered assessments or offsets in favor of the
Department of Transportation or other State agency entered
against a subcontractor or material supplier. "Reasonable
cause" does not include payments issued to the contractor that
create a negative or reduced valuation pay application or pay

10300HB5064ham001 - 38 - LRB103 37557 HLH 71567 a
estimate due to a reduction of contract quantities or work not
performed or provided by the subcontractor or material
supplier; the interception or withholding of funds for reasons
not related to the subcontractor's or material supplier's work
on the contract; anticipated claims or assessments of third
parties not a party related to the contract or subcontract;
asserted claims or assessments of third parties that are not
authorized by court order, administrative tribunal, or
statute. "Reasonable cause" further does not include the
withholding, offset, or reduction of payment, in whole or in
part, due to the assessment of liquidated damages or penalties
assessed by the Department of Transportation against the
contractor, unless the subcontractor's performance or supplied
materials were the sole and proximate cause of the liquidated
damage or penalty.
(Source: P.A. 100-43, eff. 8-9-17; 100-376, eff. 1-1-18;
100-863, eff. 8-14-18; 101-524, eff. 1-1-20.)
Section 20. The Grant Accountability and Transparency Act
is amended by changing Sections 15, 25, 30, 50, 65, 97, and 125
and by adding Section 135 as follows:
(30 ILCS 708/15)
Sec. 15. Definitions. As used in this Act:
"Administrative costs" has the same meaning as given to
that term in 20 CFR 641.856.

10300HB5064ham001 - 39 - LRB103 37557 HLH 71567 a
"Allowable cost" means a cost allowable to a project if:
(1) the costs are reasonable and necessary for the
performance of the award;
(2) the costs are allocable to the specific project;
(3) the costs are treated consistently in like
circumstances to both federally-financed and other
activities of the non-federal entity;
(4) the costs conform to any limitations of the cost
principles or the sponsored agreement;
(5) the costs are accorded consistent treatment; a
cost may not be assigned to a State or federal award as a
direct cost if any other cost incurred for the same
purpose in like circumstances has been allocated to the
award as an indirect cost;
(6) the costs are determined to be in accordance with
generally accepted accounting principles;
(7) the costs are not included as a cost or used to
meet federal cost-sharing or matching requirements of any
other program in either the current or prior period;
(8) the costs of one State or federal grant are not
used to meet the match requirements of another State or
federal grant; and
(9) the costs are adequately documented.
"Assistance listing" means the database that helps the
federal government track all programs it has domestically
funded.

10300HB5064ham001 - 40 - LRB103 37557 HLH 71567 a
"Assistance listing number" or "ALN" means the number
assigned to a federal program in the assistance listing.
"Auditee" means any non-federal entity that expends State
or federal awards that must be audited.
"Auditor" means an auditor who is a public accountant or a
federal, State, or local government audit organization that
meets the general standards specified in generally-accepted
government auditing standards. "Auditor" does not include
internal auditors of not-for-profit nonprofit organizations.
"Auditor General" means the Auditor General of the State
of Illinois.
"Award" means financial assistance that provides support
or stimulation to accomplish a public purpose. "Awards"
include grants and other agreements in the form of money, or
property in lieu of money, by the State or federal government
to an eligible recipient. "Award" does not include: technical
assistance that provides services instead of money; other
assistance in the form of loans, loan guarantees, interest
subsidies, or insurance; direct payments of any kind to
individuals; or contracts that must be entered into and
administered under State or federal procurement laws and
regulations.
"Budget" means the financial plan for the project or
program that the awarding agency or pass-through entity
approves during the award process or in subsequent amendments
to the award. It may include the State or federal and

10300HB5064ham001 - 41 - LRB103 37557 HLH 71567 a
non-federal share or only the State or federal share, as
determined by the awarding agency or pass-through entity.
"Catalog of Federal Domestic Assistance" or "CFDA" means a
database that helps the federal government track all programs
it has domestically funded.
"Catalog of Federal Domestic Assistance number" or "CFDA
number" means the number assigned to a federal program in the
CFDA.
"Catalog of State Financial Assistance" means the single,
authoritative, statewide, comprehensive source document of
State financial assistance program information maintained by
the Governor's Office of Management and Budget.
"Catalog of State Financial Assistance Number" means the
number assigned to a State program in the Catalog of State
Financial Assistance. The first 3 digits represent the State
agency number and the last 4 digits represent the program.
"Cluster of programs" means a grouping of closely related
programs that share common compliance requirements. The types
of clusters of programs are research and development, student
financial aid, and other clusters. A "cluster of programs"
shall be considered as one program for determining major
programs and, with the exception of research and development,
whether a program-specific audit may be elected.
"Cognizant agency for audit" means the federal agency
designated to carry out the responsibilities described in 2
CFR 200.513(a).

10300HB5064ham001 - 42 - LRB103 37557 HLH 71567 a
"Contract" means a legal instrument by which a non-federal
entity purchases property or services needed to carry out the
project or program under an award. "Contract" does not include
a legal instrument, even if the non-federal entity considers
it a contract, when the substance of the transaction meets the
definition of an award or subaward.
"Contractor" means an entity that receives a contract.
"Cooperative agreement" means a legal instrument of
financial assistance between an awarding agency or
pass-through entity and a non-federal entity that:
(1) is used to enter into a relationship with the
principal purpose of transferring anything of value from
the awarding agency or pass-through entity to the
non-federal entity to carry out a public purpose
authorized by law, but is not used to acquire property or
services for the awarding agency's or pass-through
entity's direct benefit or use; and
(2) is distinguished from a grant in that it provides
for substantial involvement between the awarding agency or
pass-through entity and the non-federal entity in carrying
out the activity contemplated by the award.
"Cooperative agreement" does not include a cooperative
research and development agreement, nor an agreement that
provides only direct cash assistance to an individual, a
subsidy, a loan, a loan guarantee, or insurance.
"Corrective action" means action taken by the auditee that

10300HB5064ham001 - 43 - LRB103 37557 HLH 71567 a
(i) corrects identified deficiencies, (ii) produces
recommended improvements, or (iii) demonstrates that audit
findings are either invalid or do not warrant auditee action.
"Cost objective" means a program, function, activity,
award, organizational subdivision, contract, or work unit for
which cost data is desired and for which provision is made to
accumulate and measure the cost of processes, products, jobs,
and capital projects. A "cost objective" may be a major
function of the non-federal entity, a particular service or
project, an award, or an indirect cost activity.
"Cost sharing" means the portion of project costs not paid
by State or federal funds, unless otherwise authorized by
statute.
"Development" is the systematic use of knowledge and
understanding gained from research directed toward the
production of useful materials, devices, systems, or methods,
including design and development of prototypes and processes.
"Data Universal Numbering System number" means the 9-digit
number established and assigned by Dun and Bradstreet, Inc. to
uniquely identify entities and, under federal law, is required
for non-federal entities to apply for, receive, and report on
a federal award.
"Direct costs" means costs that can be identified
specifically with a particular final cost objective, such as a
State or federal or federal pass-through award or a particular
sponsored project, an instructional activity, or any other

10300HB5064ham001 - 44 - LRB103 37557 HLH 71567 a
institutional activity, or that can be directly assigned to
such activities relatively easily with a high degree of
accuracy. "Direct costs" includes direct administrative costs
for employees who can be identified with a particular award
and who provide project activities, instructional activity,
project management, supervisory activity, clerical support,
and administrative activity; those costs are not considered
costs incurred for a common or joint purpose if all of the
following conditions are met: (1) the individual's services
are integral to a project or activity; (2) the individual can
be specifically identified with the project or activity; (3)
the costs are explicitly included in the budget or have the
prior written approval of the State awarding agency; and (4)
the costs are not also recovered as indirect costs.
"Equipment" means tangible personal property (including
information technology systems) having a useful life of more
than one year and a per-unit acquisition cost that equals or
exceeds the lesser of the capitalization level established by
the non-federal entity for financial statement purposes, or
$5,000.
"Executive branch" means that branch of State government
that is under the jurisdiction of the Governor.
"Federal agency" has the meaning provided for "agency"
under 5 U.S.C. 551(1) together with the meaning provided for
"agency" by 5 U.S.C. 552(f).
"Federal award" means:

10300HB5064ham001 - 45 - LRB103 37557 HLH 71567 a
(1) the federal financial assistance that a
non-federal entity receives directly from a federal
awarding agency or indirectly from a pass-through entity;
(2) the cost-reimbursement contract under the Federal
Acquisition Regulations that a non-federal entity receives
directly from a federal awarding agency or indirectly from
a pass-through entity; or
(3) the instrument setting forth the terms and
conditions when the instrument is the grant agreement,
cooperative agreement, other agreement for assistance
covered in paragraph (b) of 20 CFR 200.40, or the
cost-reimbursement contract awarded under the Federal
Acquisition Regulations.
"Federal award" does not include other contracts that a
federal agency uses to buy goods or services from a contractor
or a contract to operate federal government owned,
contractor-operated facilities.
"Federal awarding agency" means the federal agency that
provides a federal award directly to a non-federal entity.
"Federal interest" means, for purposes of 2 CFR 200.329 or
when used in connection with the acquisition or improvement of
real property, equipment, or supplies under a federal award,
the dollar amount that is the product of the federal share of
total project costs and current fair market value of the
property, improvements, or both, to the extent the costs of
acquiring or improving the property were included as project

10300HB5064ham001 - 46 - LRB103 37557 HLH 71567 a
costs.
"Federal program" means any of the following:
(1) All federal awards which are assigned a single
number in the assistance listing CFDA.
(2) When no ALN CFDA number is assigned, all federal
awards to non-federal entities from the same agency made
for the same purpose should be combined and considered one
program.
(3) Notwithstanding paragraphs (1) and (2) of this
definition, a cluster of programs. The types of clusters
of programs are:
(A) research and development;
(B) student financial aid; and
(C) "other clusters", as described in the
definition of "cluster of programs".
"Federal share" means the portion of the total project
costs that are paid by federal funds.
"Final cost objective" means a cost objective which has
allocated to it both direct and indirect costs and, in the
non-federal entity's accumulation system, is one of the final
accumulation points, such as a particular award, internal
project, or other direct activity of a non-federal entity.
"Financial assistance" means the following:
(1) For grants and cooperative agreements, "financial
assistance" means assistance that non-federal entities
receive or administer in the form of:

10300HB5064ham001 - 47 - LRB103 37557 HLH 71567 a
(A) grants;
(B) cooperative agreements;
(C) non-cash contributions or donations of
property, including donated surplus property;
(D) direct appropriations;
(E) food commodities; and
(F) other financial assistance, except assistance
listed in paragraph (2) of this definition.
(2) "Financial assistance" includes assistance that
non-federal entities receive or administer in the form of
loans, loan guarantees, interest subsidies, and insurance.
(3) "Financial assistance" does not include amounts
received as reimbursement for services rendered to
individuals.
"Fixed amount awards" means a type of grant agreement
under which the awarding agency or pass-through entity
provides a specific level of support without regard to actual
costs incurred under the award. "Fixed amount awards" reduce
some of the administrative burden and record-keeping
requirements for both the non-federal entity and awarding
agency or pass-through entity. Accountability is based
primarily on performance and results.
"Foreign public entity" means:
(1) a foreign government or foreign governmental
entity;
(2) a public international organization that is

10300HB5064ham001 - 48 - LRB103 37557 HLH 71567 a
entitled to enjoy privileges, exemptions, and immunities
as an international organization under the International
Organizations Immunities Act (22 U.S.C. 288-288f);
(3) an entity owned, in whole or in part, or
controlled by a foreign government; or
(4) any other entity consisting wholly or partially of
one or more foreign governments or foreign governmental
entities.
"Foreign organization" means an entity that is:
(1) a public or private organization located in a
country other than the United States and its territories
that are subject to the laws of the country in which it is
located, irrespective of the citizenship of project staff
or place of performance;
(2) a private nongovernmental organization located in
a country other than the United States that solicits and
receives cash contributions from the general public;
(3) a charitable organization located in a country
other than the United States that is not-for-profit
nonprofit and tax exempt under the laws of its country of
domicile and operation, but is not a university, college,
accredited degree-granting institution of education,
private foundation, hospital, organization engaged
exclusively in research or scientific activities, church,
synagogue, mosque, or other similar entity organized
primarily for religious purposes; or

10300HB5064ham001 - 49 - LRB103 37557 HLH 71567 a
(4) an organization located in a country other than
the United States not recognized as a Foreign Public
Entity.
"Fringe benefits" has the meaning given to that term in 2
CFR 200.431.
"Generally Accepted Accounting Principles" has the meaning
provided in accounting standards issued by the Government
Accounting Standards Board and the Financial Accounting
Standards Board.
"Generally Accepted Government Auditing Standards" means
generally accepted government auditing standards issued by the
Comptroller General of the United States that are applicable
to financial audits.
"Grant agreement" means a legal instrument of financial
assistance between an awarding agency or pass-through entity
and a non-federal entity that:
(1) is used to enter into a relationship, the
principal purpose of which is to transfer anything of
value from the awarding agency or pass-through entity to
the non-federal entity to carry out a public purpose
authorized by law and not to acquire property or services
for the awarding agency or pass-through entity's direct
benefit or use; and
(2) is distinguished from a cooperative agreement in
that it does not provide for substantial involvement
between the awarding agency or pass-through entity and the

10300HB5064ham001 - 50 - LRB103 37557 HLH 71567 a
non-federal entity in carrying out the activity
contemplated by the award.
"Grant agreement" does not include an agreement that
provides only direct cash assistance to an individual, a
subsidy, a loan, a loan guarantee, or insurance.
"Grant application" means a specified form that is
completed by a non-federal entity in connection with a request
for a specific funding opportunity or a request for financial
support of a project or activity.
"Hospital" means a facility licensed as a hospital under
the law of any state or a facility operated as a hospital by
the United States, a state, or a subdivision of a state.
"Illinois Debarred and Suspended List" means the list
maintained by the Governor's Office of Management and Budget
that contains the names of those individuals and entities that
are ineligible, either temporarily or permanently, from
receiving an award of grant funds from the State.
"Indirect cost" means those costs incurred for a common or
joint purpose benefitting more than one cost objective and not
readily assignable to the cost objectives specifically
benefitted without effort disproportionate to the results
achieved.
"Inspector General" means the Office of the Executive
Inspector General for Executive branch agencies.
"Loan" means a State or federal loan or loan guarantee
received or administered by a non-federal entity. "Loan" does

10300HB5064ham001 - 51 - LRB103 37557 HLH 71567 a
not include a "program income" as defined in 2 CFR 200.80.
"Loan guarantee" means any State or federal government
guarantee, insurance, or other pledge with respect to the
payment of all or a part of the principal or interest on any
debt obligation of a non-federal borrower to a non-federal
lender, but does not include the insurance of deposits,
shares, or other withdrawable accounts in financial
institutions.
"Local government" has the meaning provided for the term
"units of local government" under Section 1 of Article VII of
the Illinois Constitution and includes school districts.
"Major program" means a federal program determined by the
auditor to be a major program in accordance with 2 CFR 200.518
or a program identified as a major program by a federal
awarding agency or pass-through entity in accordance with 2
CFR 200.503(e).
"Non-federal entity" means a state, local government,
Indian tribe, institution of higher education, or
organization, whether nonprofit or for-profit, that carries
out a State or federal award as a recipient or subrecipient.
"Nonprofit organization" means any corporation, trust,
association, cooperative, or other organization, not including
institutions of higher education, that:
(1) is operated primarily for scientific, educational,
service, charitable, or similar purposes in the public
interest;

10300HB5064ham001 - 52 - LRB103 37557 HLH 71567 a
(2) is not organized primarily for profit; and
(3) uses net proceeds to maintain, improve, or expand
the operations of the organization.
"Not-for-profit corporation" has the meaning given to that
term in Section 101.80 of the General Not For Profit
Corporation Act of 1986.
"Obligations", when used in connection with a non-federal
entity's utilization of funds under an award, means orders
placed for property and services, contracts and subawards
made, and similar transactions during a given period that
require payment by the non-federal entity during the same or a
future period.
"Office of Management and Budget" means the Office of
Management and Budget of the Executive Office of the
President.
"Other clusters" has the meaning provided by the federal
Office of Management and Budget in the compliance supplement
or has the meaning as it is designated by a state for federal
awards the state provides to its subrecipients that meet the
definition of a cluster of programs. When designating an
"other cluster", a state must identify the federal awards
included in the cluster and advise the subrecipients of
compliance requirements applicable to the cluster.
"Oversight agency for audit" means the federal awarding
agency that provides the predominant amount of funding
directly to a non-federal entity not assigned a cognizant

10300HB5064ham001 - 53 - LRB103 37557 HLH 71567 a
agency for audit. When there is no direct funding, the
awarding agency that is the predominant source of pass-through
funding must assume the oversight responsibilities. The duties
of the oversight agency for audit and the process for any
reassignments are described in 2 CFR 200.513(b).
"Pass-through entity" means a non-federal entity that
provides a subaward to a subrecipient to carry out part of a
program.
"Private award" means an award from a person or entity
other than a State or federal entity. Private awards are not
subject to the provisions of this Act.
"Property" means real property or personal property.
"Project cost" means total allowable costs incurred under
an award and all required cost sharing and voluntary committed
cost sharing, including third-party contributions.
"Public institutions of higher education" has the meaning
provided in Section 1 of the Board of Higher Education Act.
"Recipient" means a non-federal entity that receives an
award directly from an awarding agency to carry out an
activity under a program. "Recipient" does not include
subrecipients.
"Research and Development" means all research activities,
both basic and applied, and all development activities that
are performed by non-federal entities.
"Single Audit Act" means the federal Single Audit Act
Amendments of 1996 (31 U.S.C. 7501-7507).

10300HB5064ham001 - 54 - LRB103 37557 HLH 71567 a
"State agency" means an Executive branch agency. For
purposes of this Act, "State agency" does not include public
institutions of higher education.
"State award" means the financial assistance that a
non-federal entity receives from the State and that is funded
with either State funds or federal funds; in the latter case,
the State is acting as a pass-through entity.
"State awarding agency" means a State agency that provides
an award to a non-federal entity.
"State grant-making agency" has the same meaning as "State
awarding agency".
"State interest" means the acquisition or improvement of
real property, equipment, or supplies under a State award, the
dollar amount that is the product of the State share of the
total project costs and current fair market value of the
property, improvements, or both, to the extent the costs of
acquiring or improving the property were included as project
costs.
"State program" means any of the following:
(1) All State awards which are assigned a single
number in the Catalog of State Financial Assistance.
(2) When no Catalog of State Financial Assistance
number is assigned, all State awards to non-federal
entities from the same agency made for the same purpose
are considered one program.
(3) A cluster of programs as defined in this Section.

10300HB5064ham001 - 55 - LRB103 37557 HLH 71567 a
"State share" means the portion of the total project costs
that are paid by State funds.
"Stop payment order" means a communication from a State
grant-making agency to the Office of the Comptroller,
following procedures set out by the Office of the Comptroller,
causing the cessation of payments to a recipient or
subrecipient as a result of the recipient's or subrecipient's
failure to comply with one or more terms of the grant or
subaward.
"Stop payment procedure" means the procedure created by
the Office of the Comptroller which effects a stop payment
order and the lifting of a stop payment order upon the request
of the State grant-making agency.
"Student Financial Aid" means federal awards under those
programs of general student assistance, such as those
authorized by Title IV of the Higher Education Act of 1965, as
amended (20 U.S.C. 1070-1099d), that are administered by the
United States Department of Education and similar programs
provided by other federal agencies. "Student Financial Aid"
does not include federal awards under programs that provide
fellowships or similar federal awards to students on a
competitive basis or for specified studies or research.
"Subaward" means a State or federal award provided by a
pass-through entity to a subrecipient for the subrecipient to
carry out part of a federal award received by the pass-through
entity. "Subaward" does not include payments to a contractor

10300HB5064ham001 - 56 - LRB103 37557 HLH 71567 a
or payments to an individual that is a beneficiary of a federal
program. A "subaward" may be provided through any form of
legal agreement, including an agreement that the pass-through
entity considers a contract.
"Subrecipient" means a non-federal entity that receives a
State or federal subaward from a pass-through entity to carry
out part of a federal program. "Subrecipient" does not include
an individual that is a beneficiary of such program. A
"subrecipient" may also be a recipient of other State or
federal awards directly from a State or federal awarding
agency.
"Suspension" means a post-award action by the State or
federal agency or pass-through entity that temporarily
withdraws the State or federal agency's or pass-through
entity's financial assistance sponsorship under an award,
pending corrective action by the recipient or subrecipient or
pending a decision to terminate the award.
"Uniform Administrative Requirements, Costs Principles,
and Audit Requirements for Federal Awards" means those rules
applicable to grants contained in 2 CFR 200.
"Unique entity ID" means the number established and
assigned by the federal government utilizing the SAM.gov
website to uniquely identify entities that apply to receive
and report on a federal award.
"Voluntary committed cost sharing" means cost sharing
specifically pledged on a voluntary basis in the proposal's

10300HB5064ham001 - 57 - LRB103 37557 HLH 71567 a
budget or the award on the part of the non-federal entity and
that becomes a binding requirement of the award.
(Source: P.A. 100-997, eff. 8-20-18.)
(30 ILCS 708/25)
Sec. 25. Supplemental rules. On or before July 1, 2017,
the Governor's Office of Management and Budget, with the
advice and technical assistance of the Illinois Single Audit
Commission, shall adopt supplemental rules pertaining to the
following:
(1) Criteria to define mandatory formula-based grants
and discretionary grants.
(2) The award of one-year grants for new applicants.
(3) The award of competitive grants in 3-year terms
(one-year initial terms with the option to renew for up to
2 additional years) to coincide with the federal award.
(4) The issuance of grants, including:
(A) public notice of announcements of funding
opportunities;
(B) the development of uniform grant applications;
(C) State agency review of merit of proposals and
risk posed by applicants;
(D) specific conditions for individual recipients
(including the use of a fiscal agent and additional
corrective conditions);
(E) certifications and representations;

10300HB5064ham001 - 58 - LRB103 37557 HLH 71567 a
(F) pre-award costs;
(G) performance measures and statewide prioritized
goals under Section 50-25 of the State Budget Law of
the Civil Administrative Code of Illinois, commonly
referred to as "Budgeting for Results"; and
(H) for mandatory formula grants, the merit of the
proposal and the risk posed should result in
additional reporting, monitoring, or measures such as
reimbursement-basis only.
(5) The development of uniform budget requirements,
which shall include:
(A) mandatory submission of budgets as part of the
grant application process;
(B) mandatory requirements regarding contents of
the budget including, at a minimum, common detail line
items specified under guidelines issued by the
Governor's Office of Management and Budget;
(C) a requirement that the budget allow
flexibility to add lines describing costs that are
common for the services provided as outlined in the
grant application;
(D) a requirement that the budget include
information necessary for analyzing cost and
performance for use in Budgeting for Results; and
(E) caps on the amount of salaries that may be
charged to grants, which shall not be less than based

10300HB5064ham001 - 59 - LRB103 37557 HLH 71567 a
on the limitations imposed by federal agencies.
(6) The development of pre-qualification requirements
for applicants, including the fiscal condition of the
organization and the provision of the following
information:
(A) organization name;
(B) Federal Employee Identification Number;
(C) unique entity ID Data Universal Numbering
System (DUNS) number;
(D) fiscal condition;
(E) whether the applicant is in good standing with
the Secretary of State;
(F) (blank); past performance in administering
grants;
(G) whether the applicant is on the Debarred and
Suspended List maintained by the Governor's Office of
Management and Budget;
(H) whether the applicant is on the federal
Excluded Parties List; and
(I) whether the applicant is on the Sanctioned
Party List maintained by the Illinois Department of
Healthcare and Family Services.
Pre-qualification requirements may include consideration
of past performance in administering grants if past
performance failed to meet performance goals, indicators, and
milestones.

10300HB5064ham001 - 60 - LRB103 37557 HLH 71567 a
Nothing in this Act affects the provisions of the Fiscal
Control and Internal Auditing Act nor the requirement that the
management of each State agency is responsible for maintaining
effective internal controls under that Act.
For public institutions of higher education, the
provisions of this Section apply only to awards funded by
federal pass-through awards from a State agency to public
institutions of higher education.
(Source: P.A. 101-81, eff. 7-12-19; 102-626, eff. 8-27-21.)
(30 ILCS 708/30)
Sec. 30. Catalog of State Financial Assistance. The
Catalog of State Financial Assistance is a single,
authoritative, statewide, comprehensive source document of
State financial assistance program information. The Catalog
shall contain, at a minimum, the following information:
(1) An introductory section that contains Catalog
highlights, an explanation of how to use the Catalog, an
explanation of the Catalog and its contents, and suggested
grant proposal writing methods and grant application
procedures.
(2) A comprehensive indexing system that categorizes
programs by issuing agency, eligible applicant,
application deadlines, function, popular name, and subject
area.
(3) Comprehensive appendices showing State assistance

10300HB5064ham001 - 61 - LRB103 37557 HLH 71567 a
programs that require coordination through this Act and
regulatory, legislative, and Executive Order authority for
each program, commonly used abbreviations and acronyms,
agency regional and local office addresses, and sources of
additional information.
(4) A list of programs that have been added to or
deleted from the Catalog and the various program numbers
and title changes.
(5) Program number, title, and popular name, if
applicable.
(6) The name of the State department or agency or
independent agency and primary organization sub-unit
administering the program.
(7) The enabling legislation, including popular name
of the Act, titles and Sections, Public Act number, and
citation to the Illinois Compiled Statutes.
(8) The type or types of financial and nonfinancial
assistance offered by the program.
(9) Uses and restrictions placed upon the program.
(10) Eligibility requirements, including applicant
eligibility criteria, beneficiary eligibility criteria,
and required credentials and documentation.
(11) Objectives and goals of the program.
(12) Information regarding application and award
processing; application deadlines; range of approval or
disapproval time; appeal procedure; and availability of a

10300HB5064ham001 - 62 - LRB103 37557 HLH 71567 a
renewal or extension of assistance.
(13) Assistance considerations, including an
explanation of the award formula, matching requirements,
and the length and time phasing of the assistance.
(14) Post-assistance requirements, including any
reports, audits, and records that may be required.
(15) Program accomplishments (where available)
describing quantitative measures of program performance.
(16) Regulations, guidelines, and literature
containing citations to the Illinois Administrative Code,
the Code of Federal Regulations, and other pertinent
informational materials.
(17) The names, telephone numbers, and e-mail
addresses of persons to be contacted for detailed program
information at the headquarters, regional, and local
levels.
(18) Criteria for Prompt Payment Act eligibility and
advanced payment eligibility.
(Source: P.A. 98-706, eff. 7-16-14.)
(30 ILCS 708/50)
Sec. 50. State grant-making agency responsibilities.
(a) The specific requirements and responsibilities of
State grant-making agencies and non-federal entities are set
forth in this Act. State agencies making State awards to
non-federal entities must adopt by rule the language in 2 CFR

10300HB5064ham001 - 63 - LRB103 37557 HLH 71567 a
200, Subpart C through Subpart F unless different provisions
are required by law.
(b) Each State grant-making agency shall appoint a Chief
Accountability Officer who shall serve as a liaison to the
Grant Accountability and Transparency Unit and who shall be
responsible for the State agency's implementation of and
compliance with the rules.
(c) In order to effectively measure the performance of its
recipients and subrecipients, each State grant-making agency
shall:
(1) require its recipients and subrecipients to relate
financial data to performance accomplishments of the award
and, when applicable, must require recipients and
subrecipients to provide cost information to demonstrate
cost-effective practices. The recipient's and
subrecipient's performance should be measured in a way
that will help the State agency to improve program
outcomes, share lessons learned, and spread the adoption
of promising practices; and
(2) provide recipients and subrecipients with clear
performance goals, indicators, and milestones and must
establish performance reporting frequency and content to
not only allow the State agency to understand the
recipient's progress, but also to facilitate
identification of promising practices among recipients and
subrecipients and build the evidence upon which the State

10300HB5064ham001 - 64 - LRB103 37557 HLH 71567 a
agency's program and performance decisions are made. The
frequency of reports on performance goals, indicators, and
milestones required under this Section shall not be more
frequent than quarterly. Nothing in this Section is
intended to prohibit more frequent reporting to assess
items such as service needs, gaps, or capacity.
(c-5) Each State grant-making agency shall, when it is in
the best interests of the State, request that the Office of the
Comptroller issue a stop payment order in accordance with
Section 105 of this Act.
(c-6) Upon notification by the Grant Transparency and
Accountability Unit that a stop payment order has been
requested by a State grant-making agency, each State
grant-making agency who has issued a grant to that recipient
or subrecipient shall determine if it remains in the best
interests of the State to continue to issue payments to the
recipient or subrecipient.
(d) The Governor's Office of Management and Budget shall
provide such advice and technical assistance to the State
grant-making agencies as is necessary or indicated in order to
ensure compliance with this Act. Advice and technical
assistance to State grant-making agencies shall include:
(1) training for State agency staff about the criteria
for Prompt Payment Act eligibility and advanced payment
eligibility;
(2) best practices for disseminating information about

10300HB5064ham001 - 65 - LRB103 37557 HLH 71567 a
grant opportunities statewide, with an emphasis on
reaching previously underserved communities and new
vendors, and
(3) the Court of Claims' jurisdiction and process
under the Court of Claims Act.
(e) In accordance with this Act and the Illinois State
Collection Act of 1986, refunds required under the Grant Funds
Recovery Act may be referred to the Comptroller's offset
system.
(Source: P.A. 100-997, eff. 8-20-18.)
(30 ILCS 708/65)
Sec. 65. Audit requirements.
(a) The standards set forth in Subpart F of 2 CFR 200 and
any other standards that apply directly to State or federal
agencies shall apply to audits of fiscal years beginning on or
after December 26, 2014.
(b) Books and records must be available for review or
audit by appropriate officials of the pass-through entity, and
the agency, the Auditor General, the Inspector General,
appropriate officials of the agency, and the federal
Government Accountability Office.
(c) The Governor's Office of Management and Budget, with
the advice and technical assistance of the Illinois Single
Audit Commission, shall adopt rules for audits of grants from
a State or federal pass-through entity that are not subject to

10300HB5064ham001 - 66 - LRB103 37557 HLH 71567 a
the Single Audit Act because the amount of the federal award is
less than the amount specified in subparts (a) and (b) of 2 CFR
200.501 $750,000 or the subrecipient is an exempt entity and
that are reasonably consistent with 2 CFR 200.
(d) This Act does not affect the provisions of the
Illinois State Auditing Act and does not address the external
audit function of the Auditor General.
(Source: P.A. 98-706, eff. 7-16-14.)
(30 ILCS 708/97) (was 30 ILCS 708/520)
Sec. 97. Separate accounts for State grant funds.
Notwithstanding any provision of law to the contrary, all
grants for which advance payments are made and any grant
agreement entered into, renewed, or extended on or after
August 20, 2018 (the effective date of Public Act 100-997)
that permits advanced payments, between a State grant-making
agency and a not-for-profit nonprofit organization, shall
require the not-for-profit nonprofit organization receiving
grant funds to maintain those funds in an account which is
separate and distinct from any account holding non-grant
funds. Except as otherwise provided in an agreement between a
State grant-making agency and a nonprofit organization, the
grant funds held in a separate account by a nonprofit
organization shall not be used for non-grant-related
activities, and any unused grant funds shall be returned to
the State grant-making agency. This Section does not apply to

10300HB5064ham001 - 67 - LRB103 37557 HLH 71567 a
grant payments that are made as reimbursements.
(Source: P.A. 100-997, eff. 8-20-18; 101-81, eff. 7-12-19.)
(30 ILCS 708/125)
Sec. 125. Expenditures prior to grant execution; reporting
requirements.
(a) In the event that a recipient or subrecipient incurs
expenses related to the grant award prior to the execution of
the grant agreement but within the term of the grant, and the
grant agreement is executed more than 30 days after the
effective date of the grant, the recipient or subrecipient
must submit to the State grant-making agency a report that
accounts for eligible grant expenditures and project
activities from the effective date of the grant up to and
including the date of execution of the grant agreement. If the
State grant-making agency does not issue the grant agreement
to the recipient within 60 days of the effective date of the
grant, interest penalties shall apply pursuant to Section 3-4
of the State Prompt Payment Act.
(b) The recipient or subrecipient must submit the report
to the State grant-making agency within 30 days of execution
of the grant agreement.
(c) Only those expenses that are reasonable, allowable,
and in furtherance of the purpose of the grant award shall be
reimbursed.
(d) The State grant-making agency must approve the report

10300HB5064ham001 - 68 - LRB103 37557 HLH 71567 a
prior to issuing any payment to the recipient or subrecipient.
(Source: P.A. 100-997, eff. 8-20-18.)
(30 ILCS 708/135 new)
Sec. 135. Grant Agreement specifications.
(a) A grant agreement shall include:
(1) the dates on which the State grant-making agency
will transmit vouchers to the Comptroller; and
(2) whether the grant is eligible under the Prompt
Payment Act or for advanced payments.
(b) A State agency shall not restrict the amount of money
used to pay for fringe benefits.
(c) A State agency shall not restrict indirect costs to
less than 20% of the grant agreement or the federally
negotiated rate, whichever is higher, unless the recipient
prefers a lower rate.
(d) A State agency shall not restrict direct
administrative costs to less than 20% of direct costs in the
grant agreement unless the recipient prefers a lower rate.
(e) Nothing in this Section shall apply to grants that are
solely for the purpose of capital projects.
(f) Nothing in this Section shall apply if the grant
conflicts with requirements due to federal law or federal
grant obligations.
Section 25. The Court of Claims Act is amended by changing

10300HB5064ham001 - 69 - LRB103 37557 HLH 71567 a
Sections 4, 6, 9, 10, 11, 13, 16, 19, 21, 22, 23, and 24 and by
adding Section 8.1 as follows:
(705 ILCS 505/4) (from Ch. 37, par. 439.4)
Sec. 4. Each judge shall receive an annual salary of:
$68,000 $20,900 from the third Monday in January, 1979 to the
third Monday in January, 1980; $22,100 from the third Monday
in January, 1980 to the third Monday in January, 1981; $23,400
from the third Monday in January, 1981 to the third Monday in
January, 1982, and $25,000 thereafter, or as set by the
Compensation Review Board, whichever is greater, payable in
equal monthly installments.
(Source: P.A. 83-1177.)
(705 ILCS 505/6) (from Ch. 37, par. 439.6)
Sec. 6. The court shall hold sessions at such places as it
deems necessary to expedite the business of the court and may
hold sessions in person or remotely. The court may adopt
administrative rules to provide for remote participation and
electronic filing in any proceeding and for the conduct of any
business of the court.
(Source: P.A. 90-492, eff. 8-17-97.)
(705 ILCS 505/8.1 new)
Sec. 8.1. Confirmation of claims. The court must confirm
receipt of claim to the vendor within 30 days for all claims

10300HB5064ham001 - 70 - LRB103 37557 HLH 71567 a
arising under paragraph (b) of Section 8 of this Act. The State
agency must confirm or reject all claims arising under
paragraph (b) of Section 8 of this Act within 30 days after
being contacted by the Attorney General. If the State agency
does not confirm or reject a claim within 30 days, the State
agency forfeits the right to reject or contest the claim. The
Comptroller must issue payment to vendors within 30 days of
the court entering an award for claims arising under paragraph
(b) of Section 8 of this Act, subject to available
appropriation.
(705 ILCS 505/9) (from Ch. 37, par. 439.9)
Sec. 9. Court powers and duties. The court may:
(a) The court may establish A. Establish rules for its
government and for the regulation of practice therein; appoint
commissioners to assist the court in such manner as it directs
and discharge them at will; and exercise such powers as are
necessary to carry into effect the powers granted in this
Section. Any Commissioner appointed shall be an attorney
licensed to practice law in the State of Illinois. The rules
established hereunder shall not be waived, and any extension
of time authorized by such rules shall only be allowed on
motion duly filed within the time limitation for which the
extension is requested.
(b) The court may issue B. Issue subpoenas through the
Chief Justice or one of its judges or commissioners to require

10300HB5064ham001 - 71 - LRB103 37557 HLH 71567 a
the attendance of witnesses for the purpose of testifying
before it, or before any judge of the court, or before any
notary public, or any of its commissioners, and to require the
production of any books, records, papers or documents that may
be material or relevant as evidence in any matter pending
before it. In case any person refuses to comply with any
subpoena issued in the name of the chief justice, or one of the
judges or commissioners, attested by the clerk, with the seal
of the court attached, and served upon the person named
therein as a summons in a civil action is served, the circuit
court of the proper county, on application of the party at
whose instance the subpoena was issued, shall compel obedience
by attachment proceedings, as for contempt, as in a case of a
disobedience of the requirements of a subpoena from such court
on a refusal to testify therein.
(c) The court shall create an online portal that allows
vendors to submit claims electronically under subsection (b)
of Section 8 of this Act, and to view and track the status of
their claim and any related documentation.
(d) If the court determines that it is unable to process a
claim because the bill or invoice contains a defect, the court
shall notify the vendor requesting payment not later than 30
days after the bill or invoice was first submitted. The notice
shall identify the defect and any additional information
necessary to correct the defect. If one or more items on a bill
or invoice are disapproved, but not the entire bill or

10300HB5064ham001 - 72 - LRB103 37557 HLH 71567 a
invoice, then the portion that is not disapproved shall be
paid. For disapproved portions of a claim, the court shall
allow claimants to electronically submit documentation to
amend and cure defects through the online portal created by
this Act within 30 days after receipt of notice of denied
claim.
(Source: P.A. 83-865.)
(705 ILCS 505/10) (from Ch. 37, par. 439.10)
Sec. 10. (a) The judges, commissioners and the clerk of
the court may administer oaths and affirmations, take
acknowledgments of instruments in writing, and give
certificates of them.
(b) The clerk of the court may administratively determine
certain claims against the State if the claim possesses all of
the following characteristics:
(1) The claim does not arise under an appropriation
for the current fiscal year.
(2) The State agency concerned concurs in the claim.
(3) The amount claimed does not exceed $2,500.
(4) The claim has been approved by the Attorney
General as one that, in view of the purposes of this Act,
should be paid.
The State agency concerned shall prepare the record of the
claim consisting of all papers, stipulations, and evidential
documents required by the rules of the court and file the same

10300HB5064ham001 - 73 - LRB103 37557 HLH 71567 a
with the clerk. The clerk shall consider the claim informally
upon the record submitted. If the clerk determines that the
claim should be entered as an approved claim and an award made,
the clerk shall so order and shall file a statement with the
court. If the clerk finds that the record is inadequate, or
that the claim should not be paid, the clerk shall reject the
claim. The rejection of a claim under this Section does not bar
its resubmission under the regular procedure.
(c) The judges, commissioners, and the clerk of the court
may conduct any activity of the court remotely.
(d) The Court of Claims may adopt administrative rules to
implement this Section.
(Source: Laws 1945, p. 660.)
(705 ILCS 505/11) (from Ch. 37, par. 439.11)
Sec. 11. Filing claims.
(a) Except as otherwise provided in subsection (b) of this
Section and subsection (4) of Section 24, the claimant shall
in all cases set forth fully in his petition the claim, the
action thereon, if any, on behalf of the State, what persons
are owners or trustees as defined under Section 3 of the
Charitable Trust Act thereof or interested therein, when and
upon what consideration such persons became so interested;
that no assignment or transfer of the claim or any part thereof
or interest therein has been made, except as stated in the
petition; that the claimant is justly entitled to the amount

10300HB5064ham001 - 74 - LRB103 37557 HLH 71567 a
therein claimed from the State of Illinois, after allowing all
just credits; and that claimant believes the facts stated in
the petition to be true. The petition shall be verified, as to
statements of facts, by the affidavit of the claimant, his
agent, or attorney.
(b) Whenever a person has served a term of imprisonment
and has received a pardon by the Governor stating that such
pardon was issued on the ground of innocence of the crime for
which he or she was imprisoned, the Prisoner Review Board
shall transmit this information to the clerk of the Court of
Claims, together with the claimant's current address. Whenever
a person has served a term of imprisonment and has received a
certificate of innocence from the Circuit Court as provided in
Section 2-702 of the Code of Civil Procedure, the clerk of the
issuing Circuit Court shall transmit this information to the
clerk of the Court of Claims, together with the claimant's
current address. The clerk of the Court of Claims shall
immediately docket the case for consideration by the Court of
Claims, and shall provide notice to the claimant of such
docketing together with all hearing dates and applicable
deadlines. The Court of Claims shall hear the case and render a
decision within 90 days after its docketing.
(Source: P.A. 95-970, eff. 9-22-08; 96-328, eff. 8-11-09.)
(705 ILCS 505/13) (from Ch. 37, par. 439.13)
Sec. 13. Evidence. Any judge or commissioner of the court

10300HB5064ham001 - 75 - LRB103 37557 HLH 71567 a
may sit at any place within the State to take evidence in any
case in the court. Any judge or commissioner may take evidence
remotely.
(Source: Laws 1945, p. 660.)
(705 ILCS 505/16) (from Ch. 37, par. 439.16)
Sec. 16. Concurrence of judges. Concurrence of 4 judges is
necessary to the decision of any case; provided, however, the
court in its discretion may assign any case to a commissioner
for hearing and final decision, subject to whatever right of
review the court by rule may choose to exercise. In matters
involving claims made with respect to lapsed appropriations or
the award of emergency funds under the Crime Victims
Compensation Act, the decision of only one judge is necessary
to award emergency funds.
(Source: P.A. 92-286, eff. 1-1-02.)
(705 ILCS 505/19) (from Ch. 37, par. 439.19)
Sec. 19. The Attorney General, or his assistants under his
direction, shall appear for the defense and protection of the
interests of the State of Illinois in all cases filed in the
court, and may make claim for recoupment by the State.
For all claims arising under paragraph (b) of Section 8 of
this Act:
(1) the Attorney General must confirm receipt of the
claim to the claimant and contact the State agency within

10300HB5064ham001 - 76 - LRB103 37557 HLH 71567 a
5 days of receiving the claim from the court to confirm or
reject the veracity of the claim.
(2) the State agency must confirm or reject the
veracity of the claim with the Attorney General's office
within 45 days of being contacted by the Attorney General.
(3) The Attorney General must notify the claimant of
the State agency's decision and file a stipulation or
motion with the Court within 30 days of the State agency
confirming or rejecting the claim.
(Source: Laws 1945, p. 660.)
(705 ILCS 505/21) (from Ch. 37, par. 439.21)
Sec. 21. The court is authorized to impose, by uniform
rules, a fee of $15 for the filing of a petition in any case in
which the award sought is more than $500 $50 and less than
$10,000 $1,000 and $35 in any case in which the award sought is
$10,000 $1,000 or more; and to charge and collect for copies of
opinions or other documents filed in the Court of Claims such
fees as may be prescribed by the rules of the Court. All fees
and charges so collected shall be forthwith paid into the
State Treasury. For claims arising from paragraph (b) of
Section 8 of this Act, when the Court rules in favor of the
vendor, the filing fee shall be refunded to the claimant. The
court may determine the form and manner of all filing fees and
other charges due the court by rule.
A petitioner who is a prisoner in an Illinois Department

10300HB5064ham001 - 77 - LRB103 37557 HLH 71567 a
of Corrections facility who files a pleading, motion, or other
filing that purports to be a legal document against the State,
the Illinois Department of Corrections, the Prisoner Review
Board, or any of their officers or employees in which the court
makes a specific finding that it is frivolous shall pay all
filing fees and court costs in the manner provided in Article
XXII of the Code of Civil Procedure.
In claims based upon lapsed appropriations or lost warrant
or in claims filed under the Line of Duty Compensation Act, the
Illinois National Guardsman's Compensation Act, or the Crime
Victims Compensation Act or in claims filed by medical vendors
for medical services rendered by the claimant to persons
eligible for Medical Assistance under programs administered by
the Department of Healthcare and Family Services, no filing
fee shall be required.
(Source: P.A. 95-331, eff. 8-21-07.)
(705 ILCS 505/23) (from Ch. 37, par. 439.23)
Sec. 23. Notwithstanding the exceptions for lapsed
appropriations as stipulated by subsection (b) of Section 8 of
this Act, it It is the policy of the General Assembly to make
no appropriation to pay any claim against the State,
cognizable by the court, unless an award therefor has been
made by the court.
(Source: Laws 1945, p. 660.)

10300HB5064ham001 - 78 - LRB103 37557 HLH 71567 a
(705 ILCS 505/24) (from Ch. 37, par. 439.24)
Sec. 24. Payment of awards.
(1) From funds appropriated by the General Assembly for
the purposes of this Section the Court may direct immediate
payment of:
(a) All claims arising solely as a result of the
lapsing of an appropriation out of which the obligation
could have been paid.
(b) All claims pursuant to the Line of Duty
Compensation Act.
(c) All claims pursuant to the "Illinois National
Guardsman's and Naval Militiaman's Compensation Act",
approved August 12, 1971, as amended.
(d) All claims pursuant to the "Crime Victims
Compensation Act", approved August 23, 1973, as amended.
(d-5) All claims against the State for unjust
imprisonment as provided in subsection (c) of Section 8 of
this Act.
(e) All other claims wherein the amount of the award
of the Court is less than $50,000.
(2) The court may, from funds specifically appropriated
from the General Revenue Fund for this purpose, direct the
payment of awards less than $100,000 $50,000 solely as a
result of the lapsing of an appropriation originally made from
any fund held by the State Treasurer. For any such award paid
from the General Revenue Fund, the court shall thereafter seek

10300HB5064ham001 - 79 - LRB103 37557 HLH 71567 a
an appropriation from the fund from which the liability
originally accrued in reimbursement of the General Revenue
Fund.
(3) In directing payment of a claim pursuant to the Line of
Duty Compensation Act, the Court must direct the Comptroller
to add an interest penalty if payment of a claim is not made
within 6 months after a claim is filed in accordance with
Section 3 of the Line of Duty Compensation Act and all
information has been submitted as required under Section 4 of
the Line of Duty Compensation Act. If payment is not issued
within the 6-month period, an interest penalty of 1% of the
amount of the award shall be added for each month or fraction
thereof after the end of the 6-month period, until final
payment is made. This interest penalty shall be added
regardless of whether the payment is not issued within the
6-month period because of the appropriation process, the
consideration of the matter by the Court, or any other reason.
(3.5) The interest penalty payment provided for in
subsection (3) shall be added to all claims for which benefits
were not paid as of the effective date of P.A. 95-928. The
interest penalty shall be calculated starting from the
effective date of P.A. 95-928, provided that the effective
date of P.A. 95-928 is at least 6 months after the date on
which the claim was filed in accordance with Section 3 of the
Line of Duty Compensation Act. In the event that the date 6
months after the date on which the claim was filed is later

10300HB5064ham001 - 80 - LRB103 37557 HLH 71567 a