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HB 2693

STATE AGENCY BONUS PROHIBITION

104th Regular Session Introduced by Camille Lilly

Prohibits state agencies, hospitals, and grant-funded programs from paying bonuses, requires annual bonus reporting, and caps recruitment/retention bonuses at $10,000.

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 2693

Summary — HB 2693 (State Agency and Grantee Bonus Prohibition Act) — Illinois

Note: the provided materials also included unrelated Arizona language concerning genetic‑sequencing insurance; this summary focuses on the Illinois bill titled the State Agency and Grantee Bonus Prohibition Act (sponsored by Rep. Camille Y. Lilly).

Main purpose

To prohibit the payment of employee bonuses from State funds and from certain grant funds, require annual reporting on any bonuses paid by State agencies, and limit recruitment/retention bonuses for State employment.

Key provisions

  • Bonus prohibitions
    • No State agency or State hospital may pay (from State funds, in whole or in part) bonuses as all or part of employee compensation; no employee of a State agency or hospital may receive such a bonus.
    • No grantee may pay (and no employee or contract worker of a grantee may receive) a bonus paid from grant funds awarded for operational expenses, as all or part of compensation.
  • Reporting requirement
    • State agencies that use bonuses must submit an annual report to the General Assembly itemizing each bonus awarded in the prior fiscal year. The report must include:
    • amount of each bonus;
    • purpose of the bonus;
    • position of the employee who received it;
    • overall agency fiscal impact of bonuses.
    • First report due December 1, 2025, and annually thereafter.
  • Recruitment/retention bonus cap
    • Recruitment or retention bonuses for State employment are capped at $10,000 per bonus unless the Department of Central Management Services (CMS) adopts rules increasing that limit.
  • Definitions and references
    • “Employee” excludes persons subject to a collective bargaining agreement.
    • Terms such as “grant funds,” “grantee,” “hospital,” and “State agency” are defined by reference to existing Illinois statutes (Illinois Grant Funds Recovery Act, Hospital Licensing Act, Illinois Procurement Code).
  • Effective date
    • The Act provides it takes effect upon becoming law.

Who is affected

  • State agencies and State hospitals (both paying and receiving entities)
  • Grantees that receive grant funds for operational expenses, and their employees/contract workers
  • State employees (prospective and current), to the extent bonuses are used for recruitment or retention
  • Department of Central Management Services (rulemaking authority to adjust bonus cap)
  • General Assembly (receives required reports)

Procedural status (provided)

  • Introduced: February 6, 2025 (Rep. Camille Y. Lilly)
  • Passed legislature and transmitted to Governor (late April 2025)
  • Vetoed by Governor: May 2, 2025

Because the Governor vetoed the measure on May 2, 2025, it did not become law unless the legislature subsequently overrides the veto.

Potential impacts and considerations

  • Fiscal: could reduce bonus‑related expenditures; actual savings depend on current bonus practices.
  • Workforce/hiring: limits on incentives may constrain agencies’ ability to recruit or retain specialized staff; CMS rulemaking ability to raise the cap partially addresses flexibility.
  • Grants management: grantees using operational grant funds would lose ability to pay bonuses funded by those grants; may affect contractor/employee compensation arrangements.
  • Oversight: reporting increases transparency but adds administrative burden; enforcement mechanisms and penalties are not specified in the summary text.

If you want, I can:
- Extract the exact statutory text references for the definitions cited;
- Draft a short comparison showing how common recruitment/retention bonuses in State agencies would be affected; or
- Prepare talking points for stakeholders (agency HR, grantees, lawmakers).

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

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