Senate Sponsors: MADIGAN,R. House Sponsors: CROSS-KENNER-WOOD-CLAYTON Short description: EMPLOYEE LEASING COMPANY ACT Synopsis of Bill as introduced: Creates the Employee Leasing Company Act to ensure that an employer that leases its workers obtains workers' compensation insurance coverage for all of its employees and that premium is paid commensurate with exposure and anticipated claim experience. Provides that an employee leasing company shall obtain a license from the Department of Insurance. Provides for registration in order to obtain a license. Provides that it is the employee leasing company's responsibility to purchase and maintain a separate policy providing standard worker's compensation and employers' liability insurance for each client company. Provides that a violation of the Act is grounds for cancellation or nonrenewal of a workers' compensation insurance policy. Provides that insurers shall audit policies issued under this Act. Contains other provisions. SENATE AMENDMENT NO. 1. Defines "long-term temporary arrangement". Provides that an employee leasing company may not engage in business in this State without first registering with the Department of Insurance (instead of without first obtaining a license from the Department). Provides that the registration shall include a list of the officers and directors of the company (instead of listing each and every person or entity who owns or owned a 5% or greater interest in the business). Provides that each registrant shall pay to the Department upon each renewal annually (instead of every 3 years) a registration fee of $500 (instead of $1,000). Removes the provision that prohibits registered organizations from referring to the registration in advertisements, marketing material, or publications. Provides that if any person is aggrieved by the misconduct of a registrant, that person may maintain an action (instead of maintaining an action, for misconduct of a licensee, in the person's own name upon the bond of the licensee or an amount not to exceed $100,000). Removes the provision that allows the Department to adjust any premiums when warranted. Provides that a person or entity that deprives one or more insurers of premiums otherwise properly payable commits a Class A misdemeanor (instead of a business offense). Includes failing to remit premiums on behalf of a client company and otherwise converting money or other funds remitted by the client company for payroll, insurance premiums, or other benefits in this penalty provision. Provides that upon conviction the person or entity shall be subject to restitution and a fine of $1,000 or the amount specified in the offense, whichever is greater (instead of a fine of not to exceed $1,000 for a natural person and not to exceed $5,000 for an organization). HOUSE AMENDMENT NO. 1. (House recedes January 12, 1999) Provides that the term "employee leasing arrangement" means an arrangement whereby one business leases all or a majority (instead of all or a significant) number of its workers from another business. Provides that the term "lessee" or "client company" means an entity that obtains all or a majority (instead of all or part) of its work force from another entity through an employee leasing arrangement. Provides that the term "long-term temporary arrangement" means an arrangement where all or a majority (instead of significant number) of employees from one company are leased to another for a certain period. Provides that an insurer may require an employee leasing company (instead of making it the employee leasing company's responsibility) to purchase and maintain a separate policy providing standard workers' compensation and employers' liability insurance for each client company. Moves the provisions requiring an employee leasing company to maintain and furnish to the insurer sufficient information to permit the calculation of an experience modification factor and requires the experience modification to be utilized in the calculation of any premium charged to the client company or lessee. Removes the provisions concerning civil penalties. Adds provisions requiring the Director of Insurance to issue an order to an employee leasing company stating the grounds upon which the removal of the registrant's eligibility is based and provides for a hearing. Makes other changes. CONFERENCE COMMITTEE REPORT NO. 1. Recommends that the House recede from House Amendment No. 1. Recommends that the bill be amended as follows: Deletes reference to: New Act Deletes reference to: 215 ILCS 5/78 from Ch. 73, par. 690 215 ILCS 152/10 Replaces the title and everything after the enacting clause. Amends the Illinois Insurance Code to authorize government reciprocals to declare dividends and to return guaranty fund or guaranty capital contributions. Amends the Service Contract Act to exempt contracts for the repair and monitoring of private alarm or private security systems that are subject to the Private Detective, Private Alarm, Private Security, and Locksmith Act of 1993. Effective immediately. Last action on Bill: PUBLIC ACT.............................. 90-0817 Last action date: 99-03-23 Location: Senate Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 1 SENATE - 1 END OF INQUIRY Full Text Bill Status