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92_HB1855ham002
LRB9204072SMdvam05
1 AMENDMENT TO HOUSE BILL 1855
2 AMENDMENT NO. . Amend House Bill 1855 by replacing
3 everything after the enacting clause with the following:
4 "Section 1. Short title. This Act may be cited as the
5 Grant and Loan Program Administrative Expense Act.
6 Section 5. Definitions. As used in this Act:
7 "Grant or loan program" means any State or federal grant
8 or loan program administered by any State agency (other than
9 the Department of Commerce and Community Affairs) at the
10 State level, and by units of local government on the local
11 level.
12 "Indirect costs" means that portion of the costs to a
13 unit of local government that are incurred for more than one
14 purpose that is allocable to the costs of administering a
15 grant or loan program under standard accounting principals
16 and, when applicable, federal law or regulations.
17 Section 10. Reimbursement of administrative expenses. If
18 a grant is awarded by the State (100% State funds) to a unit
19 of local government that has an indirect costs plan and the
20 grant terms allow the State to pass indirect costs on to the
21 unit of local government, then the State must reimburse the
-2- LRB9204072SMdvam05
1 unit of local government for its indirect costs. If a grant
2 is a pass-through of federal funds to a unit of local
3 government (federal funds passed through the State to the
4 unit of local government), then the State must reimburse the
5 unit of local government for its indirect costs based on the
6 indirect cost rate approved by the unit of local government's
7 federal cognizant agency. This Act does not, however, permit
8 the reimbursement for indirect costs to the extent that the
9 reimbursement is inconsistent with any conditions,
10 limitations, or prohibitions imposed under a federal law or
11 regulation. The reimbursement of administrative expenses made
12 by the State agency to the unit of local government receiving
13 the grant or loan must be made from the grant or loan funds
14 and may not be made from any other funding source. The
15 reimbursement of indirect costs may not exceed 15% of the
16 grant or loan.
17 Section 99. Effective date. This Act takes effect upon
18 becoming law.".
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