Bill Text: IL HB3110 | 2017-2018 | 100th General Assembly | Engrossed


Bill Title: Creates the Social Services Contract Notice Act. Provides that the Act applies only to non-governmental service providers who deliver social services designed to ensure the health, safety, education, or welfare of Illinois residents on behalf of the State through grants, contracts, or agreements with State agencies; and applies regardless of the source of the funds with which the grants, contracts, or agreements are paid, including federal assistance moneys. Provides that the Act does not apply to: (i) grants, contracts, or agreements with State agencies for the primary purpose of delivering or producing goods on behalf of the State; (ii) contracts between the State and its political subdivisions or other governments or between State governmental bodies; or (iii) modifications to contractor payment by the State resulting from the generally accepted accounting principles (GAAP) reconciliation process, the Illinois Grant Funds Recovery Act, or the service provider's underutilization of contract value, as determined by the State. Provides that any contract between a State agency and an authorized service provider may be terminated, suspended, or reduced by either party to the contract upon 30 days prior written notice. Permits the State to immediately terminate a contract for social services if the authorized service provider has made material misrepresentations or material omissions explicitly prohibited under State contracting requirements. Provides that the provision applies to agreements or contracts executed on or after the effective date of the Act. Requires State agencies to notify the Governor and other specified persons in writing of their intention to suspend, terminate, or reduce one or more contracts for social services. Defines terms. Effective immediately.

Spectrum: Moderate Partisan Bill (Democrat 35-6)

Status: (Engrossed) 2017-05-18 - Placed on Calendar Order of 3rd Reading May 19, 2017 [HB3110 Detail]

Download: Illinois-2017-HB3110-Engrossed.html



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1 AN ACT concerning State government.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the Social
5Services Contract Notice Act.
6 Section 5. Purpose and policy.
7 (a) Recognizing that the loss of vital social services
8causes turmoil and harm for the people of our State, the
9General Assembly supports: responsible fiscal foresight and
10planning to prevent such losses, advance notice to the public
11when losses to vital services are unavoidable, and addressing
12uncertainty in the State's contracting practices, all of which
13affect service providers' fiscal stability, employment
14capacity, and economic contributions to the State.
15 (b) It is the purpose of this Act and is declared to be the
16policy of the State that the principles of fair and responsible
17business practices shall be applicable to provider agencies
18delivering social services on behalf of the State; and that
19Illinoisans shall be advised in advance of service reductions
20to programs that are designed to ensure the health, safety,
21education, or welfare of Illinois residents.
22 Section 10. Definitions. As used in this Act:

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1 (a) "Authorized service provider" means a non-governmental
2entity responsible for providing services on behalf of the
3State of Illinois under a contract with a State agency.
4 (b) "Contract" means all types of State agreements for
5social service delivery, regardless of what they may be called,
6including grants, fee-for-service, fixed rate,
7cost-reimbursement, purchase of care, renewals, and
8amendments. It does not include agreements procured for goods.
9 (c) "Direct services" means those services that are
10provided on behalf of Illinois residents by an authorized
11service provider.
12 (d) "Reduction of contract" means a decrease in the defined
13or estimated contract value. This is not inclusive of
14adjustments made by the State through the generally accepted
15accounting principles (GAAP) reconciliation process, under the
16Illinois Grant Funds Recovery Act, or on account of the service
17provider's underutilization of contract value, as determined
18by the State.
19 (e) "Social services" or "services" means direct services
20that are provided by a State agency through a grant awarded to
21or service agreement or contract with an authorized service
22provider and that are designed to ensure the health, safety,
23education, or welfare of Illinois residents.
24 (f) "State agency" means:
25 (1) the Department on Aging or its successor agency;
26 (2) the Department of Children and Family Services or

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1 its successor agency;
2 (3) the Department of Healthcare and Family Services or
3 its successor agency;
4 (4) the Department of Human Services or its successor
5 agency;
6 (5) the Department of Public Health or its successor
7 agency;
8 (6) the Department of Corrections or its successor
9 agency;
10 (7) the Department of Juvenile Justice or its successor
11 agency;
12 (8) the Illinois Criminal Justice Information
13 Authority or its successor agency;
14 (9) the Illinois State Board of Education or its
15 successor agency;
16 (10) the Illinois Community College Board or its
17 successor agency;
18 (11) the Illinois Housing Development Authority or its
19 successor agency;
20 (12) the Department of Employment Security or its
21 successor agency;
22 (13) the Department of Veterans' Affairs or its
23 successor agency;
24 (14) the Department of Military Affairs or its
25 successor agency;
26 (15) the Illinois Emergency Management Agency or its

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1 successor agency;
2 (16) the Department of Commerce and Economic
3 Opportunity or its successor agency;
4 (17) any commission, board, or authority within the
5 State agencies or successor agencies listed in this
6 Section; or
7 (18) any State agency, or its successor agency,
8 designated to enter into contracts with one or more
9 authorized service providers on behalf of a State agency
10 subject to this Act.
11 Section 15. Application.
12 (a) This Act applies only to non-governmental service
13providers who deliver social services designed to ensure the
14health, safety, education, or welfare of Illinois residents on
15behalf of the State through grants, contracts, or agreements
16with State agencies. This Act does not apply to:
17 (1) Grants, contracts, or agreements with State
18 agencies for the primary purpose of delivering or producing
19 goods on behalf of the State.
20 (2) Contracts between the State and its political
21 subdivisions or other governments or between State
22 governmental bodies.
23 (3) Modifications to contractor payment by the State
24 resulting from the GAAP reconciliation process, the
25 Illinois Grant Funds Recovery Act, or the service

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1 provider's underutilization of contract value, as
2 determined by the State.
3 (b) This Act applies regardless of the source of the funds
4with which the grants, contracts, or agreements are paid,
5including federal assistance moneys.
6 Section 20. Reduction of contract.
7 (a) Any contract between a State agency and an authorized
8service provider for the provision of social services may be
9terminated, suspended, or reduced by either party to the
10contract for any or no reason upon 30 days prior written notice
11to the other party.
12 (b) A written notice issued by a State agency pursuant to
13subsection (a) shall include the date upon which the authorized
14service provider must submit its final invoice to the State
15agency for payment of services rendered.
16 (c) Notwithstanding subsections (a) and (b), the State
17agency may, upon written notice, immediately terminate a
18contract for social services if the authorized service provider
19has made material misrepresentations or material omissions
20explicitly prohibited under State contracting requirements.
21 (d) Nothing in this Section affects the parties' ability to
22immediately terminate a contract for breach of contract or if
23the actions or inactions of the service provider, its agents,
24employees, or subcontractors have caused, or reasonably could
25cause, jeopardy to health, safety, or property.

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1 (e) This Section applies to agreements or contracts
2executed on or after the effective date of this Act.
3 Section 25. Notice.
4 (a) If a State agency that provides social services to
5Illinois residents through a contract with an authorized
6service provider intends to suspend, terminate, or reduce the
7amount of one or more contracts for a particular social
8services program due to the failure of appropriation or a
9reduction in the amount of available funds to support the
10program, the State agency shall notify the Governor, the
11Speaker of the House of Representatives, the Minority Leader of
12the House of Representatives, the President of the Senate, and
13the Minority Leader of the Senate in writing of its intent to
14suspend, terminate, or reduce one or more contracts. Such
15notice shall be provided no less than 45 days before the State
16agency suspends, terminates, or reduces the contract and must
17include the level of appropriations required to prevent any
18suspension, termination, or reduction.
19 (b) This Section applies to contracts entered before, on,
20or after the effective date of this Act.
21 (c) Failure of a State agency to submit notice to the
22General Assembly as required under this Section shall not
23prevent termination, suspension, or reduction of a contract
24entered into prior to the effective date of this Act.

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1 Section 30. Waiver. The requirements of this Act may not be
2waived by agreement.
3 Section 99. Effective date. This Act takes effect upon
4becoming law.
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