(a) Before any action is instituted pursuant to this Act, the State or local governmental unit shall make a good faith attempt to collect amounts owed to it by using informal procedures and methods. Civil recoveries provided for in this Article shall be recoverable only: (1) in actions on behalf of the State, by the Attorney General; (2) in actions on behalf of a municipality with a population over 500,000, by the corporation counsel of such municipality; and (3) in actions on behalf of any other local governmental unit, by counsel designated by the local government unit or, if so requested by the local governmental unit and the state's attorney so agrees, by the state's attorney. However, nothing in clause (3) of this subsection (a) shall affect agreements made pursuant to the State's Attorneys Appellate Prosecutor's Act. If the state's attorney of a county brings an action on behalf of another unit of local government pursuant to this Section, the county shall be reimbursed by the unit of local government in an amount mutually agreed upon before the action is initiated. (b) Notwithstanding any other provision in this Section, any private citizen residing within the boundaries of the governmental unit affected may bring an action to recover the damages authorized in this Article on behalf of such governmental unit if: (a) the citizen has sent a letter by certified mail, return receipt requested, to the appropriate government official stating his intention to file suit for recovery under this Article and (b) the appropriate governmental official has not, within 60 days of the date of delivery on the citizen's return receipt, either instituted an action for recovery or sent notice to the citizen by certified mail, return receipt requested, that the official has arranged for a settlement with the party alleged to have illegally obtained the compensation or that the official intends to commence suit within 60 days of the date of the notice. A denial by the official of the liability of the party alleged liable by the citizen, failure to have actually arranged for a settlement as stated, or failure to commence a suit within the designated period after having stated the intention in the notice to do so shall also permit the citizen to commence the action. For purposes of this subsection (b), "appropriate government official" shall mean: (1) the Attorney General, where the government unit alleged damaged is the State; (2) the corporation counsel where the government unit alleged damaged is a municipality with a population of over 500,000; and (3) the chief executive officer of any other local government unit where that unit is alleged damaged. Any private citizen commencing an action in compliance with this subsection which is reasonable and commenced in good faith shall be entitled to recover court costs and litigation expenses, including reasonable attorney's fees, from any defendant found liable under this Article.
20-104.
Article XX. Recovery of Fraudulently Obtained Public Funds · Last amended 2021 · Last verified July 20, 2026
In one sentenceRequires a good-faith attempt at informal collection before suing under this Article, designates who may bring the action for the State and local units, and lets a private citizen sue after notifying officials who fail to act within 60 days.
Full Text of 735 ILCS 5/20-104
Plain-English Summary
Before the State or a local governmental unit sues to recover fraudulently obtained public funds under this Article, subsection (a) requires a good-faith attempt to collect through informal procedures and methods first. Once that step is taken, the section designates who may bring the civil recovery action: the Attorney General for the State, the corporation counsel for a municipality with a population over 500,000, and counsel designated by the local governmental unit — or, in some cases, the State's Attorney by agreement — for any other local unit. If a State's Attorney sues on behalf of another local government, that unit reimburses the county under a mutually agreed amount set before the action begins.
Subsection (b) opens the door to private enforcement. A citizen residing within the affected governmental unit's boundaries may bring the recovery action on that unit's behalf, but only after sending certified mail, return receipt requested, to the appropriate official announcing the intent to sue, and only if that official doesn't respond within 60 days by suing, arranging a settlement, or announcing an intent to sue within 60 more days.
If the official denies liability, fails to follow through on a promised settlement, or misses a stated deadline to sue, the citizen may proceed. And a citizen who brings a reasonable, good-faith action under this subsection can recover court costs, litigation expenses, and reasonable attorney's fees from a defendant found liable — an incentive for private citizens to help enforce the article when public officials don't act.
Frequently Asked Questions
What must happen before a government sues to recover funds under this Article?
A good-faith attempt to collect the amount owed through informal procedures and methods.
Who can bring a recovery action on behalf of the State under Section 20-104?
The Attorney General.
Who can bring a recovery action for a large municipality?
The corporation counsel of a municipality with a population over 500,000.
Can a private citizen sue to recover fraudulently obtained public funds?
Yes, on behalf of the affected governmental unit, but only after notifying the appropriate official by certified mail and waiting 60 days without the official suing, settling, or announcing an intent to sue.
Can a citizen who brings this kind of suit recover attorney's fees?
Yes. A citizen who brings a reasonable, good-faith action under subsection (b) can recover court costs, litigation expenses, and reasonable attorney's fees from a defendant found liable.
Amendment History
(Source: P.A. 102-558, eff. 8-20-21.)
Source & verification. Section text and amendment history are
reproduced verbatim from the Illinois Compiled Statutes, published by the
Illinois Compiled Statutes, Illinois General Assembly / Legislative Reference Bureau. Last verified July 20, 2026.
· Official source
Also known as: illinois citizen suit public funds fraudwho can sue for fraudulent public benefits illinoisattorney general recovery public funds illinoiscitizen enforcement public funds fraud