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HB 3622

GRANT ACCOUNTABILITY

104th Regular Session Introduced by Mike Coffey and 1 co-sponsor

HB 3622 extends Grant Accountability and Transparency Act coverage to all state grant subcontractors and subrecipients, increasing audit and transparency requirements.

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Bill Summary · HB 3622

Summary — HB 3622 (Grant Accountability)

Status: Introduced (House), Rule 19(a) / Re‑referred to Rules Committee. Filed Feb–Mar 2025; placed on General State Calendar May 14, 2025.
Statute amended: 30 ILCS 708/65 (Grant Accountability and Transparency Act)

Main purpose

HB 3622 clarifies and broadens the scope of the Grant Accountability and Transparency Act by making clear that all subcontractors and subrecipients who receive State grants — whether directly or indirectly — are subject to the Act’s provisions. That includes audit authority by the Auditor General and the Act’s transparency/reporting requirements.

Key provisions

  • Amends Section 65 (Audit requirements) of the Grant Accountability and Transparency Act.
  • Reaffirms that Subpart F of 2 CFR 200 (and other applicable federal/state audit standards) applies to audits for fiscal years beginning on or after December 26, 2014.
  • Directs that books and records be available for review or audit by appropriate pass‑through entities and state/federal auditors (language in the section consolidates agency and Auditor General audit access).
  • Requires the Governor’s Office of Management and Budget, with technical advice from the Illinois Single Audit Commission, to adopt rules for audits of grants not covered by the federal Single Audit Act (e.g., federal awards less than $750,000 or exempt subrecipients), consistent with 2 CFR 200.
  • Adds an express, overriding clause: “Notwithstanding any other provision of law to the contrary, all subcontractors and subrecipients who receive State grants, whether directly or indirectly, are subject to the provisions of this Act, including auditing by the Auditor General and the transparency provisions of this Act.”
  • Notes the Act does not alter provisions of the Illinois State Auditing Act nor the Auditor General’s external audit function.

Who is affected

  • Subcontractors and subrecipients of State grant funds (including nonprofits, private vendors, local governments, school districts, universities, and other entities receiving funds indirectly).
  • Pass‑through entities/prime grantees that contract with or subgrant to others — they will need to ensure compliance and monitoring.
  • State agencies, the Auditor General, and the Governor’s Office of Management and Budget (rulemaking and audit oversight roles).

Potential impacts

  • Expands audit and transparency obligations to entities currently receiving funds indirectly or below federal thresholds, increasing oversight and potential reporting/audit workload.
  • May require pass‑through agreements to include stronger compliance and audit clauses.
  • Expected to enhance accountability and public transparency of how State grant funds are used.

Legislative timeline (selected)

  • Filed/First reading: Feb–Mar 2025.
  • Committee hearings and substitute considered: April–May 2025.
  • Reported favorably as substituted (May 6, 2025).
  • Placed on General State Calendar: May 14, 2025.

Compiled from official sources — confirm details with the bill’s official record.

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