Bill Text: IL HB3703 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Illinois Grant Funds Recovery Act. Modifies the term "grant funds" to allow funds disbursed by the State Comptroller under an appropriation made by the General Assembly to a named entity or person to be considered as grant funds for purposes of the Act. Provides that, at a minimum, a grant agreement must, among other requirements, (1) identify any terms for which a failure to comply may be deemed material non-compliance, and subject grant funds to recovery, and (2) specify any performance levels for which a failure to achieve may result in a determination that grant funds have been misspent and subject to recovery. Provides that a grantor agency or the Attorney General may seek recovery of grant funds when there has been material non-compliance with the grant agreement or when grant funds have been misspent or are being improperly held. Provides that the grantor agency making the grant shall take affirmative and timely action to recover all (currently, all misspent or improperly held) grant funds subject to recovery. Provides that the Attorney General, on his own volition, may act to recover any grant funds which may be recoverable under specified provisions (currently, may act to recover any grant funds which have been misapplied or are being improperly held). Defines terms. Makes conforming changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-04-03 - Tabled [HB3703 Detail]

Download: Illinois-2019-HB3703-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB3703 Introduced , by Rep. Fred Crespo SYNOPSIS AS INTRODUCED:
30 ILCS 705/2 from Ch. 127, par. 2302
30 ILCS 705/4 from Ch. 127, par. 2304
30 ILCS 705/6 from Ch. 127, par. 2306
30 ILCS 705/9 from Ch. 127, par. 2309
Amends the Illinois Grant Funds Recovery Act. Modifies the term "grant funds" to allow funds disbursed by the State Comptroller under an appropriation made by the General Assembly to a named entity or person to be considered as grant funds for purposes of the Act. Provides that, at a minimum, a grant agreement must, among other requirements, (1) identify any terms for which a failure to comply may be deemed material non-compliance, and subject grant funds to recovery, and (2) specify any performance levels for which a failure to achieve may result in a determination that grant funds have been misspent and subject to recovery. Provides that a grantor agency or the Attorney General may seek recovery of grant funds when there has been material non-compliance with the grant agreement or when grant funds have been misspent or are being improperly held. Provides that the grantor agency making the grant shall take affirmative and timely action to recover all (currently, all misspent or improperly held) grant funds subject to recovery. Provides that the Attorney General, on his own volition, may act to recover any grant funds which may be recoverable under specified provisions (currently, may act to recover any grant funds which have been misapplied or are being improperly held). Defines terms. Makes conforming changes. Effective immediately.
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A BILL FOR
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AN ACT concerning finance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Grant Funds Recovery Act is amended
by changing Sections 2, 4, 6, and 9 as follows:
(30 ILCS 705/2) (from Ch. 127, par. 2302)
Sec. 2. Definitions. The following terms when used in this
Act shall have the meanings ascribed to them in this Section:
(a) "Grantor agency" is any agency of State government
which dispenses grant funds.
(b) "Grant funds" are any public funds dispensed by a
grantor agency to any person or entity for obligation,
expenditure, or use by that person or entity for a specific
purpose or purposes. Funds disbursed by the State Comptroller
pursuant to an appropriation made by the General Assembly to a
named entity or person are not grant funds for purposes of this
Act. Funds disbursed in accordance with a fee for service
purchase of care contract are not grant funds for purposes of
this Act.
Neither the method by which funds are dispensed whether by
contract, agreement, grant subsidy, letter of credit, or any
other method nor the purpose for which the funds are used can
change the character of funds which otherwise would be

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considered grant funds as defined in this Section.
(c) "Grantee" means the person or entity which may use
grant funds.
(c-5) "Improperly held" means retention of grant funds by a
grantee or its subrecipient (i) after the grantor agency has
directed the grantee to return the funds pursuant to any
authority or right provided to the grantor agency under any
statute, rule, or grant agreement, or (ii) in a manner
inconsistent with any statute, rule, or grant agreement.
(d) "Institution of higher education" means any
institution which is authorized to grant degrees within the
State of Illinois.
(e) "Material non-compliance" means when the grantee or its
subrecipient has failed to comply with a term of the grant
agreement, other than those terms relating to improperly
holding or misspending grant funds, that is so significant that
the grantor agency's decision to award the grant would have
been affected had it foreseen the non-compliance. "Material
non-compliance" includes, but shall not be limited to, any act
that may be grounds for permanent placement on the Illinois
Debarred and Suspended List established under the Grant
Accountability and Transparency Act and a violation of any
record access, recordkeeping, or audit provisions.
(f) "Misspent" means spent by a grantee or its subrecipient
(i) in a manner inconsistent with the terms of any statute,
rule, or grant agreement, or (ii) without achieving the

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performance required by the grant agreement absent compelling
mitigating circumstances, as determined by the grantor agency.
(g) "Subrecipient" means a person or entity that receives
grant funds from a grantee to carry out part of the grant
program. "Subrecipient" does not include a vendor.
(Source: P.A. 86-602.)
(30 ILCS 705/4) (from Ch. 127, par. 2304)
Sec. 4. Grant Application and Agreement Requirements.
(a) Any person or organization, public or private, desiring
to receive grant funds must submit a grant application to the
appropriate grantor agency. Applications for grant funds shall
be made on prescribed forms developed by the grantor agency,
and shall include, without being limited to, the following
provisions:
(1) the name, address, chief officers, and general
description of the applicant;
(2) a general description of the program, project, or
use for which grant funding is requested;
(3) such plans, equipment lists, and other documents as
may be required to show the type, structure, and general
character of the program, project, or use for which grant
funding is requested;
(4) cost estimates of developing, constructing,
operating, or completing the program, project, or use for
which grant funding is requested; and

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(5) a program of proposed expenditures for the grant
funds.
(b) Grant funds may not be used except pursuant to a
written grant agreement, and any disbursement of grant funds
without a grant agreement is void. At a minimum, a grant
agreement must:
(1) describe the purpose of the grant and be signed by
the grantor agency making the grant and all grantees of the
grant;
(2) specify how payments shall be made, what
constitutes permissible expenditure of the grant funds,
and the financial controls applicable to the grant,
including, for those grants in excess of $25,000, the
filing of quarterly reports describing the progress of the
program, project, or use and the expenditure of the grant
funds related thereto;
(3) specify the period of time for which the grant is
valid and, subject to the limitation of Section 5, the
period of time during which grant funds may be expended by
the grantee;
(4) contain a provision that any grantees receiving
grant funds are required to permit the grantor agency, the
Auditor General, or the Attorney General to inspect and
audit any books, records, or papers related to the program,
project, or use for which grant funds were provided;
(5) contain a provision that all funds remaining at the

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end of the grant agreement or at the expiration of the
period of time grant funds are available for expenditure or
obligation by the grantee shall be returned to the State
within 45 days; and
(6) contain a provision in which the grantee certifies
under oath that all information in the grant agreement is
true and correct to the best of the grantee's knowledge,
information, and belief; that the funds shall be used only
for the purposes described in the grant agreement; and that
the award of grant funds is conditioned upon such
certification; .
(7) identify any terms for which a failure to comply
may be deemed material non-compliance and subject grant
funds, or any portion thereof, to recovery; and
(8) specify any performance levels for which a failure
to achieve may result in a determination that grant funds,
or any portion thereof, have been misspent and subject to
recovery.
(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
for the effective date of changes made by P.A. 96-795).)
(30 ILCS 705/6) (from Ch. 127, par. 2306)
Sec. 6. Recovery of Grant Funds. A grantor agency or the
Attorney General may seek recovery of grant funds when there
has been material non-compliance with the grant agreement or
when grant funds have been misspent or are being improperly

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held. Any grant funds which have been misspent or are being
improperly held are subject to recovery by the grantor agency
which made the grant or alternatively by the Attorney General.
The grantor agency making the grant shall take affirmative and
timely action to recover all misspent or improperly held grant
funds subject to recovery. In order to effectuate the recovery
of such grant funds, the grantor agency making the grant is
authorized to use any one or a combination of the following:
(a) offset against existing grants of, or future grants to
be made by, the grantor agency making the recovery;
(b) authorize the offset from existing grants or grants to
be made by other grantor agencies;
(c) authorize the Comptroller to offset any payment from
any funds administered by the Comptroller for payment to the
grantee, including, but not limited to, distributions of
appropriated funds and payment of refunds;
(d) initiate any debt collection method authorized by law
to any private person; or
(e) remove the grantee from any of the grantor agency's
programs and forbid the grantee's participation in any such
future grant programs for a period not to exceed 2 years.
The provisions of this Section are subject to Section 14.
(Source: P.A. 87-1262.)
(30 ILCS 705/9) (from Ch. 127, par. 2309)
Sec. 9. Recovery of Grant Funds by Attorney General. Except

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as otherwise provided by Section 14, the Attorney General, on
his own volition, may act to recover any grant funds which may
be recoverable under Section 6 have been misapplied or are
being improperly held and, when doing so, has all the powers of
collection established in this Act in addition to any other
powers authorized by law or the Constitution.
(Source: P.A. 87-1262.)
Section 99. Effective date. This Act takes effect upon
becoming law.