IL HB3703

Removes the exclusion that funds disbursed by the State Comptroller under a General Assembly appropriation to a named entity or person are not grant funds, allowing such funds to be subject to grant recovery provisions.

Requires grant agreements to identify terms where failure to comply constitutes material non-compliance subject to fund recovery, and to specify performance levels where failure to achieve may result in funds being deemed misspent and recoverable.

Defines new terms including "material non-compliance," "misspent," "improperly held," and "subrecipient" to establish clear standards for when grant funds may be recovered.

Authorizes both grantor agencies and the Attorney General to seek recovery of grant funds for material non-compliance or misspent/improperly held funds, with grantor agencies required to take affirmative and timely action to recover all eligible funds.

Takes effect immediately upon becoming law.