Public Act 100-0153
 
HB3110 EnrolledLRB100 08886 KTG 19029 b


  
    AN ACT concerning State government.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  


 
    Section 1. Short title. This Act may be cited as the Social 
Services Contract Notice Act.
 
    Section 5. Purpose and policy.
    (a) Recognizing that the loss of vital social services 
causes turmoil and harm for the people of our State, the 
General Assembly supports: responsible fiscal foresight and 
planning to prevent such losses, advance notice to the public 
when losses to vital services are unavoidable, and addressing 
uncertainty in the State's contracting practices, all of which 
affect service providers' fiscal stability, employment 
capacity, and economic contributions to the State.
    (b) It is the purpose of this Act and is declared to be the 
policy of the State that the principles of fair and responsible 
business practices shall be applicable to provider agencies 
delivering social services on behalf of the State; and that 
Illinoisans shall be advised in advance of service reductions 
to programs that are designed to ensure the health, safety, 
education, or welfare of Illinois residents.
 
    Section 10. Definitions. As used in this Act:
    (a) "Authorized service provider"  means a non-governmental 
entity responsible for providing services on behalf of the 
State of Illinois under a contract with a State agency.
    (b) "Contract" means all types of State agreements for 
social service delivery, regardless of what they may be called, 
including grants, fee-for-service, fixed rate, 
cost-reimbursement, purchase of care, renewals, and 
amendments. It does not include agreements procured for goods.
    (c) "Direct services" means those services that are 
provided on behalf of Illinois residents by an authorized 
service provider.
    (d) "Reduction of contract" means a decrease in the defined 
or estimated contract value.  This is not inclusive of 
adjustments made by the State through the generally accepted 
accounting principles (GAAP) reconciliation process, under the 
Illinois Grant Funds Recovery Act, or on account of the service 
provider's underutilization of contract value, as determined 
by the State.
    (e) "Social services" or "services" means direct services 
that are provided by a State agency through a grant awarded to 
or service agreement or contract with an authorized service 
provider and that are designed to ensure the health, safety, 
education, or welfare of Illinois residents.
    (f) "State agency" means:
        (1) the Department on Aging or its successor agency;
        (2) the Department of Children and Family Services or 
    its successor agency;
        (3) the Department of Healthcare and Family Services or 
    its successor agency;
        (4) the Department of Human Services or its successor 
    agency;
        (5) the Department of Public Health or its successor 
    agency;
        (6) the Department of Corrections or its successor 
    agency;
        (7) the Department of Juvenile Justice or its successor 
    agency;
        (8) the Illinois Criminal Justice Information 
    Authority or its successor agency;
        (9) the Illinois State Board of Education or its 
    successor agency;
        (10) the Illinois Community College Board or its 
    successor agency;
        (11) the Illinois Housing Development Authority or its 
    successor agency;
        (12) the Department of Employment Security or its 
    successor agency;
        (13)  the Department of Veterans' Affairs or its 
    successor agency;
        (14) the Department of Military Affairs or its 
    successor agency;
        (15) the Illinois Emergency Management Agency or its 
    successor agency; 
        (16) the Department of Commerce and Economic 
    Opportunity or its successor agency;
        (17) any commission, board, or authority within the 
    State agencies or successor agencies listed in this 
    Section; or
        (18) any State agency, or its successor agency, 
    designated to enter into contracts with one or more 
    authorized service providers on behalf of a State agency 
    subject to this Act.
 
    Section 15. Application.
    (a) This 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. This Act does not apply to:
        (1) Grants, contracts, or agreements with State 
    agencies for the primary purpose of delivering or producing 
    goods on behalf of the State.
        (2) Contracts between the State and its political 
    subdivisions or other governments or between State 
    governmental bodies.
        (3) Modifications to contractor payment by the State 
    resulting from the GAAP reconciliation process, the 
    Illinois Grant Funds Recovery Act, or the service 
    provider's underutilization of contract value, as 
    determined by the State.
    (b) This Act applies regardless of the source of the funds 
with which the grants, contracts, or agreements are paid, 
including federal assistance moneys.
 
    Section 20. Reduction of contract.
    (a) Any contract between a State agency and an authorized 
service provider for the provision of social services may be 
terminated, suspended, or reduced by either party to the 
contract for any or no reason upon 30 days prior written notice 
to the other party.
    (b) A written notice issued by a State agency pursuant to 
subsection (a) shall include the date upon which the authorized 
service provider must submit its final invoice to the State 
agency for payment of services rendered.
    (c) Notwithstanding subsections (a) and (b), the State 
agency may, upon written notice, 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.
    (d) Nothing in this Section affects the parties' ability to 
immediately terminate a contract for breach of contract or if 
the actions or inactions of the service provider, its agents, 
employees, or subcontractors have caused, or reasonably could 
cause, jeopardy to health, safety, or property.
    (e)  This Section applies to agreements or contracts 
executed on or after the effective date of this Act.
 
    Section 25. Notice.
    (a) If a State agency that provides social services to 
Illinois residents through a contract with an authorized 
service provider intends to suspend, terminate, or reduce the 
amount of one or more contracts for a particular social 
services program due to the failure of appropriation or a 
reduction in the amount of available funds to support the 
program, the State agency shall notify the Governor, the 
Speaker of the House of Representatives, the Minority Leader of 
the House of Representatives, the President of the Senate, and 
the Minority Leader of the Senate in writing of its intent to 
suspend, terminate, or reduce one or more contracts. Such 
notice shall be provided no less than 45 days before the State 
agency suspends, terminates, or reduces the contract and must 
include the level of appropriations required to prevent any 
suspension, termination, or reduction.
    (b) This Section applies to contracts entered before, on, 
or after the effective date of this Act.
    (c) Failure of a State agency to submit notice to the 
General Assembly as required under this Section shall not 
prevent termination, suspension, or reduction of a contract 
entered into prior to the effective date of this Act.
 
    Section 30. Waiver. The requirements of this Act may not be 
waived by  agreement.
 

    Section 99. Effective date. This Act takes effect upon 
becoming law.