Bill Text: IL SB1697 | 2021-2022 | 102nd General Assembly | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Reinserts the provisions of the engrossed bill with changes. Provides that the requirements established under the Grant Accountability and Transparency Act do not apply to allocations of State revenues paid over by the Comptroller to units of local government and other taxing districts pursuant to the State Revenue Sharing Act from the Local Government Distributive Fund or the Personal Property Tax Replacement Fund, or to allotments of State motor fuel tax revenues distributed by the Department of Transportation to units of local government pursuant to the Motor Fuel Tax Law from the Motor Fuel Tax Fund or the Transportation Renewal Fund. Amends the Downstate Public Transportation Act. Provides that commencing with State fiscal year 2022 programs, and for each fiscal year thereafter, all appropriations made under the provisions of the Act shall not constitute a grant program subject to the requirements of the Grant Accountability and Transparency Act. Provides that the Department of Transportation shall approve programs of proposed expenditures and services submitted by participants under specified provisions. Provides that in the event the Department is prevented from processing applications or certifying that a participant meets specified requirements due to extraordinary circumstances beyond its control, the certification deadline for that application shall be stayed until the Department is able to process and certify the same. Provides that notice from the Department, as well as an explanation of the extraordinary circumstances, shall be provided to each participant affected by such delay. Provides for the adoption of rules to govern participants. Provides requirements for participant applications for funding concerning a program of proposed expenditures and services. Provides additional requirements for specified units of local government when applying for the approval of the program of proposed expenditures and services. Specifies further requirements for participants to receive funding. Makes conforming changes. Effective immediately.

Spectrum: Moderate Partisan Bill (Democrat 7-2)

Status: (Passed) 2021-08-27 - Public Act . . . . . . . . . 102-0626 [SB1697 Detail]

Download: Illinois-2021-SB1697-Engrossed.html

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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 Grant Accountability and Transparency Act
is amended by changing Sections 20, 25, and 45 as follows:
(30 ILCS 708/20)
Sec. 20. Adoption of federal rules applicable to grants.
(a) On or before July 1, 2016, the Governor's Office of
Management and Budget, with the advice and technical
assistance of the Illinois Single Audit Commission, shall
adopt rules which adopt the Uniform Guidance at 2 CFR 200. The
rules, which shall apply to all State and federal pass-through
awards effective on and after July 1, 2016, shall include the
following:
(1) Administrative requirements. In accordance with
Subparts B through D of 2 CFR 200, the rules shall set
forth the uniform administrative requirements for grant
and cooperative agreements, including the requirements for
the management by State awarding agencies of federal grant
programs before State and federal pass-through awards have
been made and requirements that State awarding agencies
may impose on non-federal entities in State and federal
pass-through awards.

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(2) Cost principles. In accordance with Subpart E of 2
CFR 200, the rules shall establish principles for
determining the allowable costs incurred by non-federal
entities under State and federal pass-through awards. The
principles are intended for cost determination, but are
not intended to identify the circumstances or dictate the
extent of State or federal pass-through participation in
financing a particular program or project. The principles
shall provide that State and federal awards bear their
fair share of cost recognized under these principles,
except where restricted or prohibited by State or federal
law.
(3) Audit and single audit requirements and audit
follow-up. In accordance with Subpart F of 2 CFR 200 and
the federal Single Audit Act Amendments of 1996, the rules
shall set forth standards to obtain consistency and
uniformity among State and federal pass-through awarding
agencies for the audit of non-federal entities expending
State and federal awards. These provisions shall also set
forth the policies and procedures for State and federal
pass-through entities when using the results of these
audits.
The provisions of this item (3) do not apply to
for-profit subrecipients because for-profit subrecipients
are not subject to the requirements of 2 CFR 200, Subpart
F, Audits of States, Local and Non-Profit Organizations.

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Audits of for-profit subrecipients must be conducted
pursuant to a Program Audit Guide issued by the Federal
awarding agency. If a Program Audit Guide is not
available, the State awarding agency must prepare a
Program Audit Guide in accordance with the 2 CFR 200,
Subpart F – Audit Requirements - Compliance Supplement.
For-profit entities are subject to all other general
administrative requirements and cost principles applicable
to grants.
(b) This Act addresses only State and federal pass-through
auditing functions and does not address the external audit
function of the Auditor General.
(c) For public institutions of higher education, the
provisions of this Section apply only to awards funded by
State appropriations and federal pass-through awards from a
State agency to public institutions of higher education.
Federal pass-through awards from a State agency to public
institutions of higher education are governed by and must
comply with federal guidelines under 2 CFR 200.
(d) The State grant-making agency is responsible for
establishing requirements, as necessary, to ensure compliance
by for-profit subrecipients. The agreement with the for-profit
subrecipient shall describe the applicable compliance
requirements and the for-profit subrecipient's compliance
responsibility. Methods to ensure compliance for State and
federal pass-through awards made to for-profit subrecipients

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shall include pre-award, audits, monitoring during the
agreement, and post-award audits. The Governor's Office of
Management and Budget shall provide such advice and technical
assistance to the State grant-making agency as is necessary or
indicated.
(Source: P.A. 99-523, eff. 6-30-16; 100-676, eff. 1-1-19.)
(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

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(including the use of a fiscal agent and additional
corrective conditions);
(E) certifications and representations;
(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

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performance for use in Budgeting for Results; and
(E) caps on the amount of salaries that may be
charged to grants based 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) Data Universal Numbering System (DUNS) number;
(D) fiscal condition;
(E) whether the applicant is in good standing with
the Secretary of State;
(F) 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.
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

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effective internal controls under that Act.
For public institutions of higher education, the
provisions of this Section apply only to awards funded by
State appropriations and federal pass-through awards from a
State agency to public institutions of higher education.
(Source: P.A. 100-676, eff. 1-1-19; 100-997, eff. 8-20-18;
101-81, eff. 7-12-19.)
(30 ILCS 708/45)
Sec. 45. Applicability.
(a) The requirements established under this Act apply to
State grant-making agencies that make State and federal
pass-through awards to non-federal entities. These
requirements apply to all costs related to State and federal
pass-through awards. The requirements established under this
Act do not apply to private awards.
(a-5) Nothing in this Act shall prohibit the use of State
funds for purposes of federal match or maintenance of effort.
(b) The terms and conditions of State, federal, and
pass-through awards apply to subawards and subrecipients
unless a particular Section of this Act or the terms and
conditions of the State or federal award specifically indicate
otherwise. Non-federal entities shall comply with requirements
of this Act regardless of whether the non-federal entity is a
recipient or subrecipient of a State or federal pass-through
award. Pass-through entities shall comply with the

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requirements set forth under the rules adopted under
subsection (a) of Section 20 of this Act, but not to any
requirements in this Act directed towards State or federal
awarding agencies, unless the requirements of the State or
federal awards indicate otherwise.
When a non-federal entity is awarded a cost-reimbursement
contract, only 2 CFR 200.330 through 200.332 are incorporated
by reference into the contract. However, when the Cost
Accounting Standards are applicable to the contract, they take
precedence over the requirements of this Act unless they are
in conflict with Subpart F of 2 CFR 200. In addition, costs
that are made unallowable under 10 U.S.C. 2324(e) and 41
U.S.C. 4304(a), as described in the Federal Acquisition
Regulations, subpart 31.2 and subpart 31.603, are always
unallowable. For requirements other than those covered in
Subpart D of 2 CFR 200.330 through 200.332, the terms of the
contract and the Federal Acquisition Regulations apply.
With the exception of Subpart F of 2 CFR 200, which is
required by the Single Audit Act, in any circumstances where
the provisions of federal statutes or regulations differ from
the provisions of this Act, the provision of the federal
statutes or regulations govern. This includes, for agreements
with Indian tribes, the provisions of the Indian
Self-Determination and Education and Assistance Act, as
amended, 25 U.S.C. 450-458ddd-2.
(c) State grant-making agencies may apply subparts A

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through E of 2 CFR 200 to for-profit entities, foreign public
entities, or foreign organizations, except where the awarding
agency determines that the application of these subparts would
be inconsistent with the international obligations of the
United States or the statute or regulations of a foreign
government.
(d) 2 CFR 200.101 specifies how 2 CFR 200 is applicable to
different types of awards. The same applicability applies to
this Act.
(e) (Blank).
(f) For public institutions of higher education, the
provisions of this Act apply only to awards funded by State
appropriations and federal pass-through awards from a State
agency to public institutions of higher education. This Act
shall recognize provisions in 2 CFR 200 as applicable to
public institutions of higher education, including Appendix
III of Part 200 and the cost principles under Subpart E.
(g) Each grant-making agency shall enhance its processes
to monitor and address noncompliance with reporting
requirements and with program performance standards. Where
applicable, the process may include a corrective action plan.
The monitoring process shall include a plan for tracking and
documenting performance-based contracting decisions.
(Source: P.A. 100-676, eff. 1-1-19; 100-863, eff. 8-14-18;
101-81, eff. 7-12-19.)
Section 99. Effective date. This Act takes effect upon

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becoming law.