IL SB2540

Requires the Office of the Comptroller to notify the Grant Accountability and Transparency Unit within 30 days of receiving a stop payment order request from a State grant-making agency for a grant recipient or subrecipient.

Directs the Governor's Office of Management and Budget and Illinois Single Audit Commission to research and recommend legislation by January 1, 2020 for implementing the federal Improper Payments Elimination and Recovery Improvement Act of 2012.

Establishes stop payment procedures allowing the Office of the Comptroller to cease payments to recipients or subrecipients upon request from State grant-making agencies, with rules to be adopted by July 1, 2020.

Requires State grant-making agencies to create grant award files containing application materials, evaluation criteria, scoring, award decisions, and supporting documentation, available for public inspection within 7 calendar days of award.

Mandates that nonprofit organizations receiving State grants after the effective date maintain grant funds in separate accounts distinct from non-grant funds, with unused funds returned to the State agency.