Rep. Barbara Flynn Currie

Filed: 11/30/2010

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 1365

2    AMENDMENT NO. ______. Amend House Bill 1365, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Department of Central Management Services
6Law of the Civil Administrative Code of Illinois is amended by
7changing Section 405-105 as follows:
 
8    (20 ILCS 405/405-105)  (was 20 ILCS 405/64.1)
9    Sec. 405-105. Fidelity, surety, property, and casualty
10insurance. The Department shall establish and implement a
11program to coordinate the handling of all fidelity, surety,
12property, and casualty insurance exposures of the State and the
13departments, divisions, agencies, branches, and universities
14of the State. In performing this responsibility, the Department
15shall have the power and duty to do the following:
16        (1) Develop and maintain loss and exposure data on all

 

 

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1    State property.
2        (2) Study the feasibility of establishing a
3    self-insurance plan for State property and prepare
4    estimates of the costs of reinsurance for risks beyond the
5    realistic limits of the self-insurance.
6        (3) Prepare a plan for centralizing the purchase of
7    property and casualty insurance on State property under a
8    master policy or policies and purchase the insurance
9    contracted for as provided in the Illinois Purchasing Act.
10        (4) Evaluate existing provisions for fidelity bonds
11    required of State employees and recommend changes that are
12    appropriate commensurate with risk experience and the
13    determinations respecting self-insurance or reinsurance so
14    as to permit reduction of costs without loss of coverage.
15        (5) Investigate procedures for inclusion of school
16    districts, public community college districts, and other
17    units of local government in programs for the centralized
18    purchase of insurance.
19        (6) Implement recommendations of the State Property
20    Insurance Study Commission that the Department finds
21    necessary or desirable in the performance of its powers and
22    duties under this Section to achieve efficient and
23    comprehensive risk management.
24        (7) Prepare, and, in the discretion of the Director,
25    implement, and, by April 1, 2011, reduce to writing and
26    make available on its website a plan providing for the

 

 

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1    purchase of public liability insurance or for
2    self-insurance for public liability or for a combination of
3    purchased insurance and self-insurance for public
4    liability (i) covering the State and drivers of motor
5    vehicles owned, leased, or controlled by the State of
6    Illinois pursuant to the provisions and limitations
7    contained in the Illinois Vehicle Code, (ii) covering other
8    public liability exposures of the State and its employees
9    within the scope of their employment, and (iii) covering
10    drivers of motor vehicles not owned, leased, or controlled
11    by the State but used by a State employee on State
12    business, in excess of liability covered by an insurance
13    policy obtained by the owner of the motor vehicle or in
14    excess of the dollar amounts that the Department shall
15    determine to be reasonable. Any contract of insurance let
16    under this Law shall be by bid in accordance with the
17    procedure set forth in the Illinois Purchasing Act. Any
18    provisions for self-insurance shall conform to subdivision
19    (11).
20        The term "employee" as used in this subdivision (7) and
21    in subdivision (11) means a person while in the employ of
22    the State who is a member of the staff or personnel of a
23    State agency, bureau, board, commission, committee,
24    department, university, or college or who is a State
25    officer, elected official, commissioner, member of or ex
26    officio member of a State agency, bureau, board,

 

 

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1    commission, committee, department, university, or college,
2    or a member of the National Guard while on active duty
3    pursuant to orders of the Governor of the State of
4    Illinois, or any other person while using a licensed motor
5    vehicle owned, leased, or controlled by the State of
6    Illinois with the authorization of the State of Illinois,
7    provided the actual use of the motor vehicle is within the
8    scope of that authorization and within the course of State
9    service.
10        Subsequent to payment of a claim on behalf of an
11    employee pursuant to this Section and after reasonable
12    advance written notice to the employee, the Director may
13    exclude the employee from future coverage or limit the
14    coverage under the plan if (i) the Director determines that
15    the claim resulted from an incident in which the employee
16    was grossly negligent or had engaged in willful and wanton
17    misconduct or (ii) the Director determines that the
18    employee is no longer an acceptable risk based on a review
19    of prior accidents in which the employee was at fault and
20    for which payments were made pursuant to this Section.
21        The Director is authorized to promulgate
22    administrative rules that may be necessary to establish and
23    administer the plan.
24        Appropriations from the Road Fund shall be used to pay
25    auto liability claims and related expenses involving
26    employees of the Department of Transportation, the

 

 

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1    Illinois State Police, and the Secretary of State.
2        (8) Charge, collect, and receive from all other
3    agencies of the State government fees or monies equivalent
4    to the cost of purchasing the insurance.
5        (9) Establish, through the Director, charges for risk
6    management services rendered to State agencies by the
7    Department. The State agencies so charged shall reimburse
8    the Department by vouchers drawn against their respective
9    appropriations. The reimbursement shall be determined by
10    the Director as amounts sufficient to reimburse the
11    Department for expenditures incurred in rendering the
12    service.
13        The Department shall charge the employing State agency
14    or university for workers' compensation payments for
15    temporary total disability paid to any employee after the
16    employee has received temporary total disability payments
17    for 120 days if the employee's treating physician has
18    issued a release to return to work with restrictions and
19    the employee is able to perform modified duty work but the
20    employing State agency or university does not return the
21    employee to work at modified duty. Modified duty shall be
22    duties assigned that may or may not be delineated as part
23    of the duties regularly performed by the employee. Modified
24    duties shall be assigned within the prescribed
25    restrictions established by the treating physician and the
26    physician who performed the independent medical

 

 

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1    examination. The amount of all reimbursements shall be
2    deposited into the Workers' Compensation Revolving Fund
3    which is hereby created as a revolving fund in the State
4    treasury. In addition to any other purpose authorized by
5    law, moneys in the Fund shall be used, subject to
6    appropriation, to pay these or other temporary total
7    disability claims of employees of State agencies and
8    universities.
9        Beginning with fiscal year 1996, all amounts recovered
10    by the Department through subrogation in workers'
11    compensation and workers' occupational disease cases shall
12    be deposited into the Workers' Compensation Revolving Fund
13    created under this subdivision (9).
14        (10) Establish rules, procedures, and forms to be used
15    by State agencies in the administration and payment of
16    workers' compensation claims. The Department shall
17    initially evaluate and determine the compensability of any
18    injury that is the subject of a workers' compensation claim
19    and provide for the administration and payment of such a
20    claim for all State agencies. The Director may delegate to
21    any agency with the agreement of the agency head the
22    responsibility for evaluation, administration, and payment
23    of that agency's claims.
24        (11) Any plan for public liability self-insurance
25    implemented under this Section shall provide that (i) the
26    Department shall attempt to settle and may settle any

 

 

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1    public liability claim filed against the State of Illinois
2    or any public liability claim filed against a State
3    employee on the basis of an occurrence in the course of the
4    employee's State employment; (ii) any settlement of such a
5    claim is not subject to fiscal year limitations and must be
6    approved by the Director and, in cases of settlements
7    exceeding $100,000, by the Governor; and (iii) a settlement
8    of any public liability claim against the State or a State
9    employee shall require an unqualified release of any right
10    of action against the State and the employee for acts
11    within the scope of the employee's employment giving rise
12    to the claim.
13        Whenever and to the extent that a State employee
14    operates a motor vehicle or engages in other activity
15    covered by self-insurance under this Section, the State of
16    Illinois shall defend, indemnify, and hold harmless the
17    employee against any claim in tort filed against the
18    employee for acts or omissions within the scope of the
19    employee's employment in any proper judicial forum and not
20    settled pursuant to this subdivision (11), provided that
21    this obligation of the State of Illinois shall not exceed a
22    maximum liability of $2,000,000 for any single occurrence
23    in connection with the operation of a motor vehicle or
24    $100,000 per person per occurrence for any other single
25    occurrence, or $500,000 for any single occurrence in
26    connection with the provision of medical care by a licensed

 

 

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1    physician employee.
2        Any claims against the State of Illinois under a
3    self-insurance plan that are not settled pursuant to this
4    subdivision (11) shall be heard and determined by the Court
5    of Claims and may not be filed or adjudicated in any other
6    forum. The Attorney General of the State of Illinois or the
7    Attorney General's designee shall be the attorney with
8    respect to all public liability self-insurance claims that
9    are not settled pursuant to this subdivision (11) and
10    therefore result in litigation. The payment of any award of
11    the Court of Claims entered against the State relating to
12    any public liability self-insurance claim shall act as a
13    release against any State employee involved in the
14    occurrence.
15        (12) Administer a plan the purpose of which is to make
16    payments on final settlements or final judgments in
17    accordance with the State Employee Indemnification Act.
18    The plan shall be funded through appropriations from the
19    General Revenue Fund specifically designated for that
20    purpose, except that indemnification expenses for
21    employees of the Department of Transportation, the
22    Illinois State Police, and the Secretary of State shall be
23    paid from the Road Fund. The term "employee" as used in
24    this subdivision (12) has the same meaning as under
25    subsection (b) of Section 1 of the State Employee
26    Indemnification Act. Subject to sufficient appropriation,

 

 

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1    the Director shall approve payment of any claim, without
2    regard to fiscal year limitations, presented to the
3    Director that is supported by a final settlement or final
4    judgment when the Attorney General and the chief officer of
5    the public body against whose employee the claim or cause
6    of action is asserted certify to the Director that the
7    claim is in accordance with the State Employee
8    Indemnification Act and that they approve of the payment.
9    In no event shall an amount in excess of $150,000 be paid
10    from this plan to or for the benefit of any claimant.
11        (13) Administer a plan the purpose of which is to make
12    payments on final settlements or final judgments for
13    employee wage claims in situations where there was an
14    appropriation relevant to the wage claim, the fiscal year
15    and lapse period have expired, and sufficient funds were
16    available to pay the claim. The plan shall be funded
17    through appropriations from the General Revenue Fund
18    specifically designated for that purpose.
19        Subject to sufficient appropriation, the Director is
20    authorized to pay any wage claim presented to the Director
21    that is supported by a final settlement or final judgment
22    when the chief officer of the State agency employing the
23    claimant certifies to the Director that the claim is a
24    valid wage claim and that the fiscal year and lapse period
25    have expired. Payment for claims that are properly
26    submitted and certified as valid by the Director shall

 

 

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1    include interest accrued at the rate of 7% per annum from
2    the forty-fifth day after the claims are received by the
3    Department or 45 days from the date on which the amount of
4    payment is agreed upon, whichever is later, until the date
5    the claims are submitted to the Comptroller for payment.
6    When the Attorney General has filed an appearance in any
7    proceeding concerning a wage claim settlement or judgment,
8    the Attorney General shall certify to the Director that the
9    wage claim is valid before any payment is made. In no event
10    shall an amount in excess of $150,000 be paid from this
11    plan to or for the benefit of any claimant.
12        Nothing in Public Act 84-961 shall be construed to
13    affect in any manner the jurisdiction of the Court of
14    Claims concerning wage claims made against the State of
15    Illinois.
16        (14) Prepare and, in the discretion of the Director,
17    implement a program for self-insurance for official
18    fidelity and surety bonds for officers and employees as
19    authorized by the Official Bond Act.
20        (15) By April 1, 2011, recommend a plan to be
21    administered by the General Assembly providing for the
22    purchase of insurance or for self-insurance or for a
23    combination of purchased insurance and self-insurance
24    covering all foreseeable public liability and property
25    exposures (including fire and casualty) of the General
26    Assembly, its legislative district offices, and its

 

 

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1    members and employees acting within the scope of their
2    service or employment. The plan shall be reduced to writing
3    and filed with the Clerk of the House and the Secretary of
4    the Senate. At a minimum, the plan shall include:
5            (A) specific reasons as to why the plan is the most
6        economical and practical for the General Assembly;
7            (B) if the Department recommends that insurance be
8        purchased, a listing of responsible private entities
9        from which the General Assembly may procure such
10        services;
11            (C) if the Department recommends that a system of
12        self-insurance be established, specific procedures for
13        the handling and settlement of claims;
14            (D) if the Department recommends that a system of
15        self-insurance be established, an opinion as to
16        whether additional appropriations in Fiscal Year 2011
17        or any fiscal year thereafter are necessary to
18        implement the system; and
19            (E) specific procedures for the leasing of
20        legislative district office space, including, without
21        limitation, insurance obligations to be imposed upon
22        lessors and standard language to be incorporated into
23        lease agreements memorializing such obligations.
24    For purposes of this subdivision (15), "employee" means any
25    person employed full-time, part-time, or pursuant to a
26    contract.

 

 

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1(Source: P.A. 96-928, eff. 6-15-10.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.".