Public Act 0721 93RD GENERAL ASSEMBLY

HB6648 Enrolled LRB093 14310 WGH 47256 b

Public Act 093-0721

AN ACT concerning workers' compensation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Intergovernmental Cooperation Act is

amended by changing Section 6 as follows:

(5 ILCS 220/6) (from Ch. 127, par. 746)

Sec. 6. Joint self-insurance. An intergovernmental

contract may, among other undertakings, authorize public

agencies to jointly self-insure and authorize each public

agency member of the contract to utilize its funds to pay to a

joint insurance pool its costs and reserves to protect, wholly

or partially, itself or any public agency member of the

contract against liability or loss in the designated insurable

area. A joint insurance pool shall have an annual audit

performed by an independent certified public accountant and

shall file an annual audited financial report with the Director

of Insurance no later than 150 days after the end of the pool's

immediately preceding fiscal year. The Director of Insurance

shall issue rules necessary to implement this audit and report

requirement. The rule shall establish the due date for filing

the initial annual audited financial report. Within 30 days

after January 1, 1991, and within 30 days after each January 1

thereafter, public agencies that are jointly self-insured to

protect against liability under the Workers' Compensation Act

and the Workers' Occupational Diseases Act shall file with the

Illinois Workers' Compensation Industrial Commission a report

indicating an election to self-insure.

For purposes of this Section, "public agency member" means

any public agency defined or created under this Act, any local

public entity as defined in Section 1-206 of the Local

Governmental and Governmental Employees Tort Immunity Act, and

any public agency, authority, instrumentality, council, board,

service region, district, unit, bureau, or, commission, or any

municipal corporation, college, or university, whether

corporate or otherwise, and any other local governmental body

or similar entity that is presently existing or created after

the effective date of this amendatory Act of the 92nd General

Assembly, whether or not specified in this Section. Only public

agency members with tax receipts, tax revenues, taxing

authority, or other resources sufficient to pay costs and to

service debt related to intergovernmental activities described

in this Section, or public agency members created by or as part

of a public agency with these powers, may enter into contracts

or otherwise associate among themselves as permitted in this

Section.

(Source: P.A. 92-530, eff. 2-8-02.)

Section 10. The Illinois Governmental Ethics Act is amended

by changing Section 2-104 as follows:

(5 ILCS 420/2-104) (from Ch. 127, par. 602-104)

Sec. 2-104. No legislator may accept or participate in any

way in any representation case, as that term is defined in

Section 1-113, before (1) the Court of Claims of this State or

(2) before the Illinois Workers' Compensation Industrial

Commission of this State, when the State of Illinois is the

respondent.

This Section does not prohibit participation in such a

representation case by a person with whom the legislator

maintains a close economic association, unless the fact of that

association is used to influence or attempt to influence the

State agency in the rendering of its decision.

A violation of this Section is a Class A misdemeanor.

(Source: P. A. 78-695.)

Section 15. The Executive Reorganization Implementation

Act is amended by changing Section 3.1 as follows:

(15 ILCS 15/3.1) (from Ch. 127, par. 1803.1)

Sec. 3.1. "Agency directly responsible to the Governor" or

"agency" means any office, officer, division, or part thereof,

and any other office, nonelective officer, department,

division, bureau, board, or commission in the executive branch

of State government, except that it does not apply to any

agency whose primary function is service to the General

Assembly or the Judicial Branch of State government, or to any

agency administered by the Attorney General, Secretary of

State, State Comptroller or State Treasurer. In addition the

term does not apply to the following agencies created by law

with the primary responsibility of exercising regulatory or

adjudicatory functions independently of the Governor:

(1) the State Board of Elections;

(2) the State Board of Education;

(3) the Illinois Commerce Commission;

(4) the Illinois Workers' Compensation Industrial

Commission;

(5) the Civil Service Commission;

(6) the Fair Employment Practices Commission;

(7) the Pollution Control Board;

(8) the Department of State Police Merit Board.

(Source: P.A. 84-25.)

Section 20. The Personnel Code is amended by changing

Sections 4c, 4d, and 11 as follows:

(20 ILCS 415/4c) (from Ch. 127, par. 63b104c)

Sec. 4c. General exemptions. The following positions in

State service shall be exempt from jurisdictions A, B, and C,

unless the jurisdictions shall be extended as provided in this

Act:

(1) All officers elected by the people.

(2) All positions under the Lieutenant Governor,

Secretary of State, State Treasurer, State Comptroller,

State Board of Education, Clerk of the Supreme Court, and

Attorney General.

(3) Judges, and officers and employees of the courts,

and notaries public.

(4) All officers and employees of the Illinois General

Assembly, all employees of legislative commissions, all

officers and employees of the Illinois Legislative

Reference Bureau, the Legislative Research Unit, and the

Legislative Printing Unit.

(5) All positions in the Illinois National Guard and

Illinois State Guard, paid from federal funds or positions

in the State Military Service filled by enlistment and paid

from State funds.

(6) All employees of the Governor at the executive

mansion and on his immediate personal staff.

(7) Directors of Departments, the Adjutant General,

the Assistant Adjutant General, the Director of the

Illinois Emergency Management Agency, members of boards

and commissions, and all other positions appointed by the

Governor by and with the consent of the Senate.

(8) The presidents, other principal administrative

officers, and teaching, research and extension faculties

of Chicago State University, Eastern Illinois University,

Governors State University, Illinois State University,

Northeastern Illinois University, Northern Illinois

University, Western Illinois University, the Illinois

Community College Board, Southern Illinois University,

Illinois Board of Higher Education, University of

Illinois, State Universities Civil Service System,

University Retirement System of Illinois, and the

administrative officers and scientific and technical staff

of the Illinois State Museum.

(9) All other employees except the presidents, other

principal administrative officers, and teaching, research

and extension faculties of the universities under the

jurisdiction of the Board of Regents and the colleges and

universities under the jurisdiction of the Board of

Governors of State Colleges and Universities, Illinois

Community College Board, Southern Illinois University,

Illinois Board of Higher Education, Board of Governors of

State Colleges and Universities, the Board of Regents,

University of Illinois, State Universities Civil Service

System, University Retirement System of Illinois, so long

as these are subject to the provisions of the State

Universities Civil Service Act.

(10) The State Police so long as they are subject to

the merit provisions of the State Police Act.

(11) The scientific staff of the State Scientific

Surveys and the Waste Management and Research Center.

(12) The technical and engineering staffs of the

Department of Transportation, the Department of Nuclear

Safety, the Pollution Control Board, and the Illinois

Commerce Commission, and the technical and engineering

staff providing architectural and engineering services in

the Department of Central Management Services.

(13) All employees of the Illinois State Toll Highway

Authority.

(14) The Secretary of the Illinois Workers'

Compensation Industrial Commission.

(15) All persons who are appointed or employed by the

Director of Insurance under authority of Section 202 of the

Illinois Insurance Code to assist the Director of Insurance

in discharging his responsibilities relating to the

rehabilitation, liquidation, conservation, and dissolution

of companies that are subject to the jurisdiction of the

Illinois Insurance Code.

(16) All employees of the St. Louis Metropolitan Area

Airport Authority.

(17) All investment officers employed by the Illinois

State Board of Investment.

(18) Employees of the Illinois Young Adult

Conservation Corps program, administered by the Illinois

Department of Natural Resources, authorized grantee under

Title VIII of the Comprehensive Employment and Training Act

of 1973, 29 USC 993.

(19) Seasonal employees of the Department of

Agriculture for the operation of the Illinois State Fair

and the DuQuoin State Fair, no one person receiving more

than 29 days of such employment in any calendar year.

(20) All "temporary" employees hired under the

Department of Natural Resources' Illinois Conservation

Service, a youth employment program that hires young people

to work in State parks for a period of one year or less.

(21) All hearing officers of the Human Rights

Commission.

(22) All employees of the Illinois Mathematics and

Science Academy.

(23) All employees of the Kankakee River Valley Area

Airport Authority.

(Source: P.A. 90-490, eff. 8-17-97; 91-214, eff. 1-1-00;

91-357, eff. 7-29-99.)

(20 ILCS 415/4d) (from Ch. 127, par. 63b104d)

Sec. 4d. Partial exemptions. The following positions in

State service are exempt from jurisdictions A, B, and C to the

extent stated for each, unless those jurisdictions are extended

as provided in this Act:

(1) In each department, board or commission that now

maintains or may hereafter maintain a major administrative

division, service or office in both Sangamon County and Cook

County, 2 private secretaries for the director or chairman

thereof, one located in the Cook County office and the other

located in the Sangamon County office, shall be exempt from

jurisdiction B; in all other departments, boards and

commissions one private secretary for the director or chairman

thereof shall be exempt from jurisdiction B. In all

departments, boards and commissions one confidential assistant

for the director or chairman thereof shall be exempt from

jurisdiction B. This paragraph is subject to such modifications

or waiver of the exemptions as may be necessary to assure the

continuity of federal contributions in those agencies

supported in whole or in part by federal funds.

(2) The resident administrative head of each State

charitable, penal and correctional institution, the chaplains

thereof, and all member, patient and inmate employees are

exempt from jurisdiction B.

(3) The Civil Service Commission, upon written

recommendation of the Director of Central Management Services,

shall exempt from jurisdiction B other positions which, in the

judgment of the Commission, involve either principal

administrative responsibility for the determination of policy

or principal administrative responsibility for the way in which

policies are carried out, except positions in agencies which

receive federal funds if such exemption is inconsistent with

federal requirements, and except positions in agencies

supported in whole by federal funds.

(4) All beauticians and teachers of beauty culture and

teachers of barbering, and all positions heretofore paid under

Section 1.22 of "An Act to standardize position titles and

salary rates", approved June 30, 1943, as amended, shall be

exempt from jurisdiction B.

(5) Licensed attorneys in positions as legal or technical

advisors, positions in the Department of Natural Resources

requiring incumbents to be either a registered professional

engineer or to hold a bachelor's degree in engineering from a

recognized college or university, licensed physicians in

positions of medical administrator or physician or physician

specialist (including psychiatrists), and registered nurses

(except those registered nurses employed by the Department of

Public Health), except those in positions in agencies which

receive federal funds if such exemption is inconsistent with

federal requirements and except those in positions in agencies

supported in whole by federal funds, are exempt from

jurisdiction B only to the extent that the requirements of

Section 8b.1, 8b.3 and 8b.5 of this Code need not be met.

(6) All positions established outside the geographical

limits of the State of Illinois to which appointments of other

than Illinois citizens may be made are exempt from jurisdiction

B.

(7) Staff attorneys reporting directly to individual

Commissioners of the Illinois Workers' Compensation Industrial

Commission are exempt from jurisdiction B.

(Source: P.A. 89-77, eff. 6-30-95; 89-439, eff. 6-1-96; 89-626,

eff. 8-9-96.)

(20 ILCS 415/11) (from Ch. 127, par. 63b111)

Sec. 11. Hearing - Disciplinary action. No officer or

employee under jurisdiction B, relating to merit and fitness,

who has been appointed under the rules and after examination,

shall be removed discharged or demoted, or be suspended for a

period of more than 30 days, in any 12 month period, except for

cause, upon written charges approved by the Director of Central

Management Services, and after an opportunity to be heard in

his own defense if he makes written request to the Commission

within 15 days after the serving of the written charges upon

him. Upon the filing of such a request for a hearing, the

Commission shall grant a hearing within 30 days. The time and

place of the hearing shall be fixed by the Commission, and due

notice thereof given the appointing officer and the employee.

The hearing shall be public, and the officer or employee is

entitled to call witnesses in his own defense and to have the

aid of counsel. The finding and decision of the Commission, or

the approval by the Commission of the finding and decision of

the officer or board appointed by it to conduct such

investigation, shall be rendered within 60 days after the

receipt of the transcript of the proceedings. If the finding

and decision is not rendered within 60 days after receipt of

the transcript of the proceedings, the employee shall be

considered to be reinstated and shall receive full compensation

for the period for which he was suspended. The finding and

decision of the Commission or officer or board appointed by it

to conduct investigation, when approved by the Commission,

shall be certified to the Director, and shall be forthwith

enforced by the Director. In making its finding and decision,

or in approving the finding and decision of some officer or

board appointed by it to conduct such investigation, the Civil

Service Commission may, for disciplinary purposes, suspend an

employee for a period of time not to exceed 90 days, and in no

event to exceed a period of 120 days from the date of any

suspension of such employee, pending investigation of such

charges. If the Commission certifies a decision that an officer

or employee is to be retained in his position and if it does

not order a suspension for disciplinary purposes, the officer

or employee shall receive full compensation for any period

during which he was suspended pending the investigation of the

charges.

Nothing in this Section shall limit the authority to

suspend an employee for a reasonable period not exceeding 30

days, in any 12 month period.

Notwithstanding the provisions of this Section, an

arbitrator of the Illinois Workers' Compensation Industrial

Commission, appointed pursuant to Section 14 of the Workers'

Compensation Act, may be removed by the Governor upon the

recommendation of the Commission Review Board pursuant to

Section 14.1 of such Act.

Notwithstanding the provisions of this Section, a policy

making officer of a State agency, as defined in the Employee

Rights Violation Act, shall be discharged from State employment

as provided in the Employee Rights Violation Act, enacted by

the 85th General Assembly.

(Source: P.A. 85-1436.)

Section 25. The State Finance Act is amended by changing

Sections 5.454 and 8.3 as follows:

(30 ILCS 105/5.454)

Sec. 5.454. The Illinois Workers' Compensation Industrial

Commission Operations Fund.

(Source: P.A. 90-109, eff. 1-1-98; 90-655, eff. 7-30-98.)

(30 ILCS 105/8.3) (from Ch. 127, par. 144.3)

Sec. 8.3. Money in the Road Fund shall, if and when the

State of Illinois incurs any bonded indebtedness for the

construction of permanent highways, be set aside and used for

the purpose of paying and discharging annually the principal

and interest on that bonded indebtedness then due and payable,

and for no other purpose. The surplus, if any, in the Road Fund

after the payment of principal and interest on that bonded

indebtedness then annually due shall be used as follows:

first -- to pay the cost of administration of Chapters

2 through 10 of the Illinois Vehicle Code, except the cost

of administration of Articles I and II of Chapter 3 of that

Code; and

secondly -- for expenses of the Department of

Transportation for construction, reconstruction,

improvement, repair, maintenance, operation, and

administration of highways in accordance with the

provisions of laws relating thereto, or for any purpose

related or incident to and connected therewith, including

the separation of grades of those highways with railroads

and with highways and including the payment of awards made

by the Illinois Workers' Compensation Industrial

Commission under the terms of the Workers' Compensation Act

or Workers' Occupational Diseases Act for injury or death

of an employee of the Division of Highways in the

Department of Transportation; or for the acquisition of

land and the erection of buildings for highway purposes,

including the acquisition of highway right-of-way or for

investigations to determine the reasonably anticipated

future highway needs; or for making of surveys, plans,

specifications and estimates for and in the construction

and maintenance of flight strips and of highways necessary

to provide access to military and naval reservations, to

defense industries and defense-industry sites, and to the

sources of raw materials and for replacing existing

highways and highway connections shut off from general

public use at military and naval reservations and

defense-industry sites, or for the purchase of

right-of-way, except that the State shall be reimbursed in

full for any expense incurred in building the flight

strips; or for the operating and maintaining of highway

garages; or for patrolling and policing the public highways

and conserving the peace; or for any of those purposes or

any other purpose that may be provided by law.

Appropriations for any of those purposes are payable from

the Road Fund. Appropriations may also be made from the Road

Fund for the administrative expenses of any State agency that

are related to motor vehicles or arise from the use of motor

vehicles.

Beginning with fiscal year 1980 and thereafter, no Road

Fund monies shall be appropriated to the following Departments

or agencies of State government for administration, grants, or

operations; but this limitation is not a restriction upon

appropriating for those purposes any Road Fund monies that are

eligible for federal reimbursement;

1. Department of Public Health;

2. Department of Transportation, only with respect to

subsidies for one-half fare Student Transportation and

Reduced Fare for Elderly;

3. Department of Central Management Services, except

for expenditures incurred for group insurance premiums of

appropriate personnel;

4. Judicial Systems and Agencies.

Beginning with fiscal year 1981 and thereafter, no Road

Fund monies shall be appropriated to the following Departments

or agencies of State government for administration, grants, or

operations; but this limitation is not a restriction upon

appropriating for those purposes any Road Fund monies that are

eligible for federal reimbursement:

1. Department of State Police, except for expenditures

with respect to the Division of Operations;

2. Department of Transportation, only with respect to

Intercity Rail Subsidies and Rail Freight Services.

Beginning with fiscal year 1982 and thereafter, no Road

Fund monies shall be appropriated to the following Departments

or agencies of State government for administration, grants, or

operations; but this limitation is not a restriction upon

appropriating for those purposes any Road Fund monies that are

eligible for federal reimbursement: Department of Central

Management Services, except for awards made by the Illinois

Workers' Compensation Industrial Commission under the terms of

the Workers' Compensation Act or Workers' Occupational

Diseases Act for injury or death of an employee of the Division

of Highways in the Department of Transportation.

Beginning with fiscal year 1984 and thereafter, no Road

Fund monies shall be appropriated to the following Departments

or agencies of State government for administration, grants, or

operations; but this limitation is not a restriction upon

appropriating for those purposes any Road Fund monies that are

eligible for federal reimbursement:

1. Department of State Police, except not more than 40%

of the funds appropriated for the Division of Operations;

2. State Officers.

Beginning with fiscal year 1984 and thereafter, no Road

Fund monies shall be appropriated to any Department or agency

of State government for administration, grants, or operations

except as provided hereafter; but this limitation is not a

restriction upon appropriating for those purposes any Road Fund

monies that are eligible for federal reimbursement. It shall

not be lawful to circumvent the above appropriation limitations

by governmental reorganization or other methods.

Appropriations shall be made from the Road Fund only in

accordance with the provisions of this Section.

Money in the Road Fund shall, if and when the State of

Illinois incurs any bonded indebtedness for the construction of

permanent highways, be set aside and used for the purpose of

paying and discharging during each fiscal year the principal

and interest on that bonded indebtedness as it becomes due and

payable as provided in the Transportation Bond Act, and for no

other purpose. The surplus, if any, in the Road Fund after the

payment of principal and interest on that bonded indebtedness

then annually due shall be used as follows:

first -- to pay the cost of administration of Chapters

2 through 10 of the Illinois Vehicle Code; and

secondly -- no Road Fund monies derived from fees,

excises, or license taxes relating to registration,

operation and use of vehicles on public highways or to

fuels used for the propulsion of those vehicles, shall be

appropriated or expended other than for costs of

administering the laws imposing those fees, excises, and

license taxes, statutory refunds and adjustments allowed

thereunder, administrative costs of the Department of

Transportation, payment of debts and liabilities incurred

in construction and reconstruction of public highways and

bridges, acquisition of rights-of-way for and the cost of

construction, reconstruction, maintenance, repair, and

operation of public highways and bridges under the

direction and supervision of the State, political

subdivision, or municipality collecting those monies, and

the costs for patrolling and policing the public highways

(by State, political subdivision, or municipality

collecting that money) for enforcement of traffic laws. The

separation of grades of such highways with railroads and

costs associated with protection of at-grade highway and

railroad crossing shall also be permissible.

Appropriations for any of such purposes are payable from

the Road Fund or the Grade Crossing Protection Fund as provided

in Section 8 of the Motor Fuel Tax Law.

Except as provided in this paragraph, beginning with fiscal

year 1991 and thereafter, no Road Fund monies shall be

appropriated to the Department of State Police for the purposes

of this Section in excess of its total fiscal year 1990 Road

Fund appropriations for those purposes unless otherwise

provided in Section 5g of this Act. For fiscal years 2003 and

2004 only, no Road Fund monies shall be appropriated to the

Department of State Police for the purposes of this Section in

excess of $97,310,000. It shall not be lawful to circumvent

this limitation on appropriations by governmental

reorganization or other methods unless otherwise provided in

Section 5g of this Act.

In fiscal year 1994, no Road Fund monies shall be

appropriated to the Secretary of State for the purposes of this

Section in excess of the total fiscal year 1991 Road Fund

appropriations to the Secretary of State for those purposes,

plus $9,800,000. It shall not be lawful to circumvent this

limitation on appropriations by governmental reorganization or

other method.

Beginning with fiscal year 1995 and thereafter, no Road

Fund monies shall be appropriated to the Secretary of State for

the purposes of this Section in excess of the total fiscal year

1994 Road Fund appropriations to the Secretary of State for

those purposes. It shall not be lawful to circumvent this

limitation on appropriations by governmental reorganization or

other methods.

Beginning with fiscal year 2000, total Road Fund

appropriations to the Secretary of State for the purposes of

this Section shall not exceed the amounts specified for the

following fiscal years:

It shall not be lawful to circumvent this limitation on

appropriations by governmental reorganization or other

methods.

No new program may be initiated in fiscal year 1991 and

thereafter that is not consistent with the limitations imposed

by this Section for fiscal year 1984 and thereafter, insofar as

appropriation of Road Fund monies is concerned.

Nothing in this Section prohibits transfers from the Road

Fund to the State Construction Account Fund under Section 5e of

this Act; nor to the General Revenue Fund, as authorized by

this amendatory Act of the 93rd General Assembly.

The additional amounts authorized for expenditure in this

Section by this amendatory Act of the 92nd General Assembly

shall be repaid to the Road Fund from the General Revenue Fund

in the next succeeding fiscal year that the General Revenue

Fund has a positive budgetary balance, as determined by

generally accepted accounting principles applicable to

government.

The additional amounts authorized for expenditure by the

Secretary of State and the Department of State Police in this

Section by this amendatory Act of the 93rd General Assembly

shall be repaid to the Road Fund from the General Revenue Fund

in the next succeeding fiscal year that the General Revenue

Fund has a positive budgetary balance, as determined by

generally accepted accounting principles applicable to

government.

(Source: P.A. 92-600, eff. 6-28-02; 93-25, eff. 6-20-03.)

Section 30. The State Employee Industrial Commission

Awards Act is amended by changing Sections 0.01, 3, and 4 as

follows:

(30 ILCS 260/0.01) (from Ch. 127, par. 179.9)

Sec. 0.01. Short title. This Act may be cited as the State

Employee Illinois Workers' Compensation Industrial Commission

Awards Act.

(Source: P.A. 86-1324.)

(30 ILCS 260/3) (from Ch. 127, par. 180)

Sec. 3. Whenever the Illinois Workers' Compensation

Industrial Commission or the Court of Claims makes an award

under the terms of the Workers' Compensation Act or the

Workers' Occupational Diseases Act for personal injuries or

death of any State employee, and such award is approved by the

Department of Central Management Services, such award shall be

certified to the State Comptroller. Upon the approval of such

award by the Department of Central Management Services, the

Comptroller is directed to draw his warrant payable to the

payee named, for the amount so certified, payable from the

General Revenue Fund, except in cases of compensation of

employees of the Division of Highways, Department of

Transportation, which shall be paid from the Road Fund.

(Source: P.A. 83-316.)

(30 ILCS 260/4) (from Ch. 127, par. 181)

Sec. 4. In the event the award provides for payments in

installments, the Illinois Workers' Compensation Industrial

Commission or the clerk of the Court of Claims, as the case may

be, shall furnish the State Comptroller and the Department of

Central Management Services with a certified copy of such award

and upon receipt thereof the Comptroller and the Department of

Central Management Services shall pay such award at such

intervals and in such amount as awarded.

(Source: P.A. 82-789.)

Section 35. The Illinois Income Tax Act is amended by

changing Section 917 as follows:

(35 ILCS 5/917) (from Ch. 120, par. 9-917)

Sec. 917. Confidentiality and information sharing.

(a) Confidentiality. Except as provided in this Section,

all information received by the Department from returns filed

under this Act, or from any investigation conducted under the

provisions of this Act, shall be confidential, except for

official purposes within the Department or pursuant to official

procedures for collection of any State tax or pursuant to an

investigation or audit by the Illinois State Scholarship

Commission of a delinquent student loan or monetary award or

enforcement of any civil or criminal penalty or sanction

imposed by this Act or by another statute imposing a State tax,

and any person who divulges any such information in any manner,

except for such purposes and pursuant to order of the Director

or in accordance with a proper judicial order, shall be guilty

of a Class A misdemeanor. However, the provisions of this

paragraph are not applicable to information furnished to a

licensed attorney representing the taxpayer where an appeal or

a protest has been filed on behalf of the taxpayer.

(b) Public information. Nothing contained in this Act shall

prevent the Director from publishing or making available to the

public the names and addresses of persons filing returns under

this Act, or from publishing or making available reasonable

statistics concerning the operation of the tax wherein the

contents of returns are grouped into aggregates in such a way

that the information contained in any individual return shall

not be disclosed.

(c) Governmental agencies. The Director may make available

to the Secretary of the Treasury of the United States or his

delegate, or the proper officer or his delegate of any other

state imposing a tax upon or measured by income, for

exclusively official purposes, information received by the

Department in the administration of this Act, but such

permission shall be granted only if the United States or such

other state, as the case may be, grants the Department

substantially similar privileges. The Director may exchange

information with the Illinois Department of Public Aid and the

Department of Human Services (acting as successor to the

Department of Public Aid under the Department of Human Services

Act) for the purpose of verifying sources and amounts of income

and for other purposes directly connected with the

administration of this Act and the Illinois Public Aid Code.

The Director may exchange information with the Director of the

Department of Employment Security for the purpose of verifying

sources and amounts of income and for other purposes directly

connected with the administration of this Act and Acts

administered by the Department of Employment Security. The

Director may make available to the Illinois Workers'

Compensation Industrial Commission information regarding

employers for the purpose of verifying the insurance coverage

required under the Workers' Compensation Act and Workers'

Occupational Diseases Act.

The Director may make available to any State agency,

including the Illinois Supreme Court, which licenses persons to

engage in any occupation, information that a person licensed by

such agency has failed to file returns under this Act or pay

the tax, penalty and interest shown therein, or has failed to

pay any final assessment of tax, penalty or interest due under

this Act. The Director may make available to any State agency,

including the Illinois Supreme Court, information regarding

whether a bidder, contractor, or an affiliate of a bidder or

contractor has failed to file returns under this Act or pay the

tax, penalty, and interest shown therein, or has failed to pay

any final assessment of tax, penalty, or interest due under

this Act, for the limited purpose of enforcing bidder and

contractor certifications. For purposes of this Section, the

term "affiliate" means any entity that (1) directly,

indirectly, or constructively controls another entity, (2) is

directly, indirectly, or constructively controlled by another

entity, or (3) is subject to the control of a common entity.

For purposes of this subsection (a), an entity controls another

entity if it owns, directly or individually, more than 10% of

the voting securities of that entity. As used in this

subsection (a), the term "voting security" means a security

that (1) confers upon the holder the right to vote for the

election of members of the board of directors or similar

governing body of the business or (2) is convertible into, or

entitles the holder to receive upon its exercise, a security

that confers such a right to vote. A general partnership

interest is a voting security.

The Director may make available to any State agency,

including the Illinois Supreme Court, units of local

government, and school districts, information regarding

whether a bidder or contractor is an affiliate of a person who

is not collecting and remitting Illinois Use taxes, for the

limited purpose of enforcing bidder and contractor

certifications.

The Director may also make available to the Secretary of

State information that a corporation which has been issued a

certificate of incorporation by the Secretary of State has

failed to file returns under this Act or pay the tax, penalty

and interest shown therein, or has failed to pay any final

assessment of tax, penalty or interest due under this Act. An

assessment is final when all proceedings in court for review of

such assessment have terminated or the time for the taking

thereof has expired without such proceedings being instituted.

For taxable years ending on or after December 31, 1987, the

Director may make available to the Director or principal

officer of any Department of the State of Illinois, information

that a person employed by such Department has failed to file

returns under this Act or pay the tax, penalty and interest

shown therein. For purposes of this paragraph, the word

"Department" shall have the same meaning as provided in Section

3 of the State Employees Group Insurance Act of 1971.

(d) The Director shall make available for public inspection

in the Department's principal office and for publication, at

cost, administrative decisions issued on or after January 1,

1995. These decisions are to be made available in a manner so

that the following taxpayer information is not disclosed:

(1) The names, addresses, and identification numbers

of the taxpayer, related entities, and employees.

(2) At the sole discretion of the Director, trade

secrets or other confidential information identified as

such by the taxpayer, no later than 30 days after receipt

of an administrative decision, by such means as the

Department shall provide by rule.

The Director shall determine the appropriate extent of the

deletions allowed in paragraph (2). In the event the taxpayer

does not submit deletions, the Director shall make only the

deletions specified in paragraph (1).

The Director shall make available for public inspection and

publication an administrative decision within 180 days after

the issuance of the administrative decision. The term

"administrative decision" has the same meaning as defined in

Section 3-101 of Article III of the Code of Civil Procedure.

Costs collected under this Section shall be paid into the Tax

Compliance and Administration Fund.

(e) Nothing contained in this Act shall prevent the

Director from divulging information to any person pursuant to a

request or authorization made by the taxpayer, by an authorized

representative of the taxpayer, or, in the case of information

related to a joint return, by the spouse filing the joint

return with the taxpayer.

(Source: P.A. 93-25, eff. 6-20-03.)

Section 40. The Illinois Pension Code is amended by

changing Sections 9-159, 12-141, 13-309, 14-123, 14-123.1,

14-128, 14-129, 16-149.1, and 17-117.1 as follows:

(40 ILCS 5/9-159) (from Ch. 108 1/2, par. 9-159)

Sec. 9-159. When disability benefit not payable. (a) If an

employee receiving duty disability or ordinary disability

benefit refuses to submit to examination by a physician

appointed by the board, he shall have no further right to

receive the benefit.

(b) Disability benefit shall not be paid for any time for

which the employee receives any part of his salary, or while

employed by any public body supported in whole or in part by

taxation.

(c) If an employee who shall be disabled, or his widow or

children receive any compensation or payment from the county

for specific loss, disability or death under the Workers'

Compensation Act or Workers' Occupational Diseases Act, the

disability benefit or any annuity for him or his widow or

children payable as the result of such specific loss,

disability or death shall be reduced by any amount so received

or recoverable. If the amount received as such compensation or

payment exceeds such disability benefit or other annuity

payable as the result of such specific loss, disability or

death, no payment of disability benefit or other annuity shall

be made until the accumulative amounts thereof equals the

amount of such compensation or payment. In such calculation no

interest shall be considered. In adjusting the amount of any

annuity in relation to compensation received or recoverable

during any period of time, the annuity to the widow shall be

first reduced.

If any employee, or widow shall be denied compensation by

such county under the aforesaid Acts, or if such county shall

fail to act, such denial or failure to act shall not be

considered final until the claim has been adjudicated by the

Illinois Workers' Compensation Industrial Commission of the

State of Illinois.

(Source: P.A. 81-992.)

(40 ILCS 5/12-141) (from Ch. 108 1/2, par. 12-141)

Sec. 12-141. Workers' compensation offset. If an employee

or surviving spouse and minor children receive any compensation

or payment for specific loss, disability or death under or by

virtue of the Workers' Compensation Act or the Workers'

Occupational Diseases Act on account of disability or death

resulting from the performance of an act of duty, the benefit

payable to them under this Article shall be reduced by the

amount of such compensation. If the amount received as

compensation exceeds such benefits, no payment shall be made to

the employee or surviving spouse until the expiration of the

period during which the benefit payments, accumulated at the

rates herein stated, becomes equal to the sum received as

compensation; provided, that the commutation of compensation

to a lump sum basis as provided by the aforesaid Acts shall not

increase the benefits payable by the fund but such benefits

shall be adjusted to the amount of the compensation awarded

under the aforesaid Acts prior to any commutation of such

compensation. No interest shall be considered in these

calculations.

If any employee or surviving spouse and children are denied

compensation by the park or city under those Acts, or if the

park or city fails to act, the denial or failure to act shall

not be considered final until the claim has been adjudicated by

the Illinois Workers' Compensation Industrial Commission of

the State of Illinois.

(Source: P.A. 87-1265.)

(40 ILCS 5/13-309) (from Ch. 108 1/2, par. 13-309)

Sec. 13-309. Duty disability benefit.

(a) Any employee who becomes disabled, which disability is

the result of an injury or illness compensable under the

Illinois Workers' Compensation Act or the Illinois Workers'

Occupational Diseases Act, is entitled to a duty disability

benefit during the period of disability for which the employee

does not receive any part of salary, or any part of a

retirement annuity under this Article; except that in the case

of an employee who first enters service on or after the

effective date of this amendatory Act of 1997, a duty

disability benefit is not payable for the first 3 days of

disability that would otherwise be payable under this Section

if the disability does not continue for at least 11 additional

days. This benefit shall be 75% of salary at the date

disability begins. However, if the disability in any measure

resulted from any physical defect or disease which existed at

the time such injury was sustained or such illness commenced,

the duty disability benefit shall be 50% of salary.

Unless the employer acknowledges that the disability is a

result of injury or illness compensable under the Workers'

Compensation Act or the Workers' Occupational Diseases Act, the

duty disability benefit shall not be payable until the issue of

compensability under those Acts is finally adjudicated. The

period of disability shall be as determined by the Illinois

Workers' Compensation Industrial Commission or acknowledged by

the employer.

The first payment shall be made not later than one month

after the benefit is granted, and subsequent payments shall be

made at least monthly. The Board shall by rule prescribe for

the payment of such benefits on the basis of the amount of

salary lost during the period of disability.

(b) The benefit shall be allowed only if the following

requirements are met by the employee:

(1) Application is made to the Board within 90 days

from the date disability begins;

(2) A medical report is submitted by at least one

licensed and practicing physician as part of the employee's

application; and

(3) The employee is examined by at least one licensed

and practicing physician appointed by the Board and found

to be in a disabled physical condition, and shall be

re-examined at least annually thereafter during the

continuance of disability. The employee need not be

re-examined by a licensed and practicing physician if the

attorney for the district certifies in writing that the

employee is entitled to receive compensation under the

Workers' Compensation Act or the Workers' Occupational

Diseases Act.

(c) The benefit shall terminate when:

(1) The employee returns to work or receives a

retirement annuity paid wholly or in part under this

Article;

(2) The disability ceases;

(3) The employee attains age 65, but if the employee

becomes disabled at age 60 or later, benefits may be

extended for a period of no more than 5 years after

disablement;

(4) The employee (i) refuses to submit to reasonable

examinations by physicians or other health professionals

appointed by the Board, (ii) fails or refuses to consent to

and sign an authorization allowing the Board to receive

copies of or to examine the employee's medical and hospital

records, or (iii) fails or refuses to provide complete

information regarding any other employment for

compensation he or she has received since becoming

disabled; or

(5) The employee willfully and continuously refuses to

follow medical advice and treatment to enable the employee

to return to work. However this provision does not apply to

an employee who relies in good faith on treatment by prayer

through spiritual means alone in accordance with the tenets

and practice of a recognized church or religious

denomination, by a duly accredited practitioner thereof.

In the case of a duty disability recipient who returns to

work, the employee must make application to the Retirement

Board within 2 years from the date the employee last received

duty disability benefits in order to become again entitled to

duty disability benefits based on the injury for which a duty

disability benefit was theretofore paid.

(Source: P.A. 90-12, eff. 6-13-97; 91-887, eff. 7-6-00.)

(40 ILCS 5/14-123) (from Ch. 108 1/2, par. 14-123)

Sec. 14-123. Occupational disability benefits. A member

who becomes incapacitated to perform the duties of his position

as the proximate result of bodily injuries sustained or a

hazard undergone while in the performance and within the scope

of the member's duties, shall receive an occupational

disability benefit; provided:

(a) application is made within 12 months after the date

that such disability results in the loss of pay, or 12 months

after the date that the Illinois Workers' Compensation

Industrial Commission of Illinois rules on the application for

an occupational disability, or 12 months after the occurrence

of disablement if an occupational disease; and

(b) proper proof is received from one or more physicians

designated by the Board certifying that the member is mentally

or physically incapacitated.

The benefit shall be 75% of the member's final average

compensation at date of disability and shall be payable until

the first of the following dates occurs:

(1) the date on which disability ceases;

(2) the date on which the member engages in gainful

employment;

(3) the end of the month in which the member attains age

65, in the case of benefits commencing prior to attainment of

age 60;

(4) the end of the month following the fifth anniversary of

the effective date of the benefit, or of the temporary

disability benefit if one was received, in the case of benefits

commencing on or after attainment of age 60; or

(5) the end of the month in which the death of the member

occurs.

At the end of the month in which the benefits cease as

prescribed in paragraphs (3) or (4) above, if the member is

still disabled, he shall become entitled to a retirement

annuity and the minimum period of service prescribed for the

receipt of such annuity shall be waived.

In the event that a temporary disability benefit has been

received, the benefit paid under this Section shall be subject

to adjustment by the Board under Section 14-123.1.

The Board shall prescribe rules and regulations governing

the filing of claims for occupational disability benefits, and

the investigation, control and supervision of such claims.

(Source: P.A. 86-272.)

(40 ILCS 5/14-123.1) (from Ch. 108 1/2, par. 14-123.1)

Sec. 14-123.1. Temporary disability benefit.

(a) A member who has at least 18 months of creditable

service and who becomes physically or mentally incapacitated to

perform the duties of his position shall receive a temporary

disability benefit, provided that:

(1) the agency responsible for determining the

liability of the State (i) has formally denied all

employer-paid temporary total disability benefits under

the Workers' Compensation Act or the Workers' Occupational

Diseases Act and an appeal of that denial is pending before

the Illinois Workers' Compensation Industrial Commission

of Illinois, or (ii) has granted and then terminated for

any reason an employer-paid temporary total disability

benefit and the member has filed a petition for emergency

hearing under Section 19(b-1) of the Workers' Compensation

Act or Section 19(b-1) of the Workers' Occupational

Diseases Act; and

(2) application is made not later than (i) 12 months

after the date that the disability results in loss of pay,

(ii) 12 months after the date the agency responsible for

determining the liability of the State under the Workers'

Compensation Act or Workers' Occupational Diseases Act has

formally denied or terminated the employer-paid temporary

total disability benefit, or (iii) in the case of

termination of an employer-paid temporary total disability

benefit, 12 months after the effective date of this

amendatory Act of 1995, whichever occurs last; and

(3) proper proof is received from one or more

physicians designated by the Board certifying that the

member is mentally or physically incapacitated.

(b) In the case of a denial of benefits, the temporary

disability benefit shall begin to accrue on the 31st day of

absence from work on account of disability, but the benefit

shall not become actually payable to the member until the

expiration of 31 days from the day upon which the member last

received or had a right to receive any compensation.

In the case of termination of an employer-paid temporary

total disability benefit, the temporary disability benefit

under this Section shall be calculated from the day following

the date of termination of the employer-paid benefit or the

31st day of absence from work on account of disability,

whichever is later, but shall not become payable to the member

until (i) the member's right to an employer-paid temporary

total disability benefit is denied as a result of the emergency

hearing held under Section 19(b-1) of the Workers' Compensation

Act or Section 19(b-1) of the Workers' Occupational Diseases

Act or (ii) the expiration of 150 days from the date of

termination of the employer-paid benefit, whichever occurs

first. If a terminated employer-paid temporary total

disability benefit is resumed or replaced with another

employer-paid disability benefit and the resumed or

replacement benefit is later terminated and the member again

files a petition for emergency hearing under Section 19(b-1) of

the Workers' Compensation Act or Section 19(b-1) of the

Workers' Occupational Diseases Act, the member may again become

eligible to receive a temporary disability benefit under this

Section. The waiting period before the temporary disability

benefit under this Section becomes payable applies each time

that the benefit is reinstated.

The benefit shall continue to accrue until the first of the

following events occurs:

(1) the disability ceases;

(2) the member engages in gainful employment;

(3) the end of the month in which the member attains

age 65, in the case of benefits commencing prior to

attainment of age 60;

(4) the end of the month following the fifth

anniversary of the effective date of the benefit in the

case of benefits commencing on or after attainment of age

60;

(5) the end of the month in which the death of the

member occurs;

(6) the end of the month in which the aggregate period

for which temporary disability payments have been made

becomes equal to 1/2 of the member's total period of

creditable service, not including the time for which he has

received a temporary disability benefit or nonoccupational

disability benefit; for purposes of this item (6) only, in

the case of a member to whom Section 14-108.2a or 14-108.2b

applies and who, at the time disability commences, is

performing services for the Illinois Department of Public

Health or the Department of State Police relating to the

transferred functions referred to in that Section and has

less than 10 years of creditable service under this

Article, the member's "total period of creditable service"

shall be augmented by an amount equal to (i) one half of

the member's period of creditable service in the Fund

established under Article 8 (excluding any creditable

service over 20 years), minus (ii) the amount of the

member's creditable service under this Article;

(7) a payment is made on the member's claim pursuant to

a determination made by the agency responsible for

determining the liability of the State under the Workers'

Compensation Act or the Workers' Occupational Diseases

Act;

(8) a final determination is made on the member's claim

by the Illinois Workers' Compensation Industrial

Commission of Illinois.

(c) The temporary disability benefit shall be 50% of the

member's final average compensation at the date of disability.

If a covered employee is eligible under the Social Security

Act for a disability benefit before attaining age 65, or a

retirement benefit on or after attaining age 65, then the

amount of the member's temporary disability benefit shall be

reduced by the amount of primary benefit the member is eligible

to receive under the Social Security Act, whether or not such

eligibility came about as the result of service as a covered

employee under this Article. The Board may make such reduction

pending a determination of eligibility if it appears that the

employee may be so eligible, and shall make an appropriate

adjustment if necessary after such determination has been made.

The amount of temporary disability benefit payable under this

Article shall not be reduced by reason of any increase in

benefits payable under the Social Security Act which occurs

after the reduction required by this paragraph has been

applied.

(d) The temporary disability benefit provided under this

Section is intended as a temporary payment of occupational or

nonoccupational disability benefit, whichever is appropriate,

in cases in which the occupational or nonoccupational character

of the disability has not been finally determined.

When an employer-paid disability benefit is paid or

resumed, the Board shall calculate the benefit that is payable

under Section 14-123 and shall deduct from the benefit payable

under Section 14-123 the amounts already paid under this

Section; those amounts shall then be treated as if they had

been paid under Section 14-123.

When a final determination of the character of the

disability has been made by the Illinois Workers' Compensation

Industrial Commission of Illinois, or by settlement between the

parties to the disputed claim, the Board shall calculate the

benefit that is payable under Section 14-123 or 14-124,

whichever is applicable, and shall deduct from such benefit the

amounts already paid under this Section; such amounts shall

then be treated as if they had been paid under such Section

14-123 or 14-124.

(e) Any excess benefits paid under this Section shall be

subject to recovery by the System from benefits payable under

the Workers' Compensation Act or the Workers' Occupational

Diseases Act or from third parties as provided in Section

14-129, or from any other benefits payable either to the member

or on his behalf under this Article. A member who accepts

benefits under this Section acknowledges and authorizes these

recovery rights of the System.

(f) Service credits under the State Universities

Retirement System and the Teachers' Retirement System of the

State of Illinois shall be considered for the purposes of

determining temporary disability benefit eligibility under

this Section, and for determining the total period of time for

which such benefits are payable.

(g) The Board shall prescribe rules and regulations

governing the filing of claims for temporary disability

benefits, and the investigation, control and supervision of

such claims.

(h) References in this Section to employer-paid benefits

include benefits paid for by the State, either directly or

through a program of insurance or self-insurance, whether paid

through the member's own department or through some other

department or entity; but the term does not include benefits

paid by the System under this Article.

(Source: P.A. 88-535; 89-136, eff. 7-14-95; 89-246, eff.

8-4-95; 89-626, eff. 8-9-96.)

(40 ILCS 5/14-128) (from Ch. 108 1/2, par. 14-128)

Sec. 14-128. Occupational death benefit. An occupational

death benefit is provided for a member of the System whose

death, prior to retirement, is the proximate result of bodily

injuries sustained or a hazard undergone while in the

performance and within the scope of the member's duties.

(a) Conditions for payment.

Exclusive of the lump sum payment provided for herein, all

annuities under this Section shall accrue and be payable for

complete calendar months, beginning on the first day of the

month next following the month in which the initiating event

occurs and ending on the last day of the month in which the

terminating event occurs.

The following named survivors of the member may be eligible

for an annuity under this Section:

(i) The member's spouse.

(ii) An unmarried child of the member under age 18

(under age 22 if a full-time student); an unmarried

stepchild under age 18 (under age 22 if a full-time

student) who has been such for at least one year at the

date of the member's death; an unmarried adopted child

under age 18 (under age 22 if a full-time student) if the

adoption proceedings were initiated at least one year prior

to the death of the member; and an unmarried child over age

18 who is dependent by reason of a physical or mental

disability, for so long as such physical or mental

disability continues. For the purposes of this Section

disability means inability to engage in any substantial

gainful activity by reason of any medically determinable

physical or mental impairment which can be expected to

result in death or which has lasted or can be expected to

last for a continuous period of not less than 12 months.

(iii) If no spouse or eligible children survive: a

dependent parent of the member; a dependent step-parent by

a marriage contracted before the member attained age 18; or

a dependent adopting parent by whom the member was adopted

before he or she attained age 18.

The term "dependent" relating to an occupational death

benefit means a survivor of the member who was receiving from

the member at the date of the member's death at least 1/2 of

the support for maintenance including board, lodging, medical

care and like living costs.

Payment of the annuity shall continue until the occurrence

of the following:

(1) remarriage before age 55 that occurs before the

effective date of this amendatory Act of the 91st General

Assembly or death, in the case of a surviving spouse;

(2) attainment of age 18 or termination of disability,

death, or marriage, in the case of an eligible child;

(3) remarriage before age 55 or death, in the case of a

dependent parent.

If none of the aforementioned beneficiaries is living at

the date of death of the member, no occupational death benefit

shall be payable, but the nonoccupational death benefit shall

be payable as provided in this Article.

The change made to this subsection by this amendatory Act

of the 91st General Assembly (pertaining to remarriage prior to

age 55) applies without regard to whether the deceased member

was in service on or after the effective date of this

amendatory Act.

(b) Amount of benefit.

The member's accumulated contributions plus credited

interest shall be payable in a lump sum to such person as the

member has nominated by written direction, duly acknowledged

and filed with the Board, or if no such nomination to the

estate of the member. When an annuitant is re-employed by a

Department, the accumulated contributions plus credited

interest payable on the member's account shall, if the member

has not previously elected a reversionary annuity, consist of

the excess, if any, of the member's total accumulated

contributions plus credited interest for all creditable

service over the total amount of all retirement annuity

payments received by the member prior to death.

In addition to the foregoing payment, an annuity is

provided for eligible survivors as follows:

(1) If the survivor is a spouse only, the annuity shall

be 50% of the member's final average compensation.

(2) If the spouse has in his or her care an eligible

child or children, the annuity shall be increased by an

amount equal to 15% of the final average compensation on

account of each such child, subject to a limitation on the

combined annuities to a surviving spouse and children of

75% of final average compensation.

(3) If there is no surviving spouse, or if the

surviving spouse dies or remarries while a child remains

eligible, then each such child shall be entitled to an

annuity of 15% of the deceased member's final average

compensation, subject to a limitation of 50% of final

average compensation to all such children.

(4) If there is no surviving spouse or eligible

children, then an annuity shall be payable to the member's

dependent parents, equal to 25% of final average

compensation to each such beneficiary.

If any annuity payable under this Section is less than the

corresponding survivors annuity, the beneficiary or

beneficiaries of the annuity under this Section may elect to

receive the survivors annuity and the nonoccupational death

benefit provided for in this Article in lieu of the annuity

provided under this Section.

(c) Occupational death claims pending adjudication by the

Illinois Workers' Compensation Industrial Commission or a

ruling by the agency responsible for determining the liability

of the State under the "Workers' Compensation Act" or "Workers'

Occupational Diseases Act" shall be payable under Sections

14-120 and 14-121 until a ruling or adjudication occurs, if the

beneficiary or beneficiaries: (1) meet all conditions for

payment as prescribed in this Article; and (2) execute an

assignment of benefits payable as a result of adjudication by

the Illinois Workers' Compensation Industrial Commission or a

ruling by the agency responsible for determining the liability

of the State under such Acts. The assignment shall be made to

the System and shall be for an amount equal to the excess of

benefits paid under Sections 14-120 and 14-121 over benefits

payable as a result of adjudication of the workers'

compensation claim computed from the date of death of the

member.

(d) Every occupational death annuity payable under this

Section shall be increased on each January 1 occurring on or

after (i) January 1, 1990, or (ii) the first anniversary of the

commencement of the annuity, whichever occurs later, by an

amount equal to 3% of the current amount of the annuity,

including any previous increases under this Article, without

regard to whether the deceased member was in service on the

effective date of this amendatory Act of 1991.

(Source: P.A. 90-448, eff. 8-16-97; 91-887, eff. 7-6-00.)

(40 ILCS 5/14-129) (from Ch. 108 1/2, par. 14-129)

Sec. 14-129. Determination of compensability - Offset -

Subrogation. Except as provided in Section 14-128 of this Act

with respect to occupational death claims, and except as

provided in Section 14-123.1 for temporary disability

benefits, before the board takes any action on an application

for an occupational disability or occupational death benefit,

adjudication by the Illinois Workers' Compensation Industrial

Commission of Illinois or a ruling by the agency responsible

for determining the liability of the State under the Workers'

Compensation Act or the Workers' Occupational Diseases Act

shall be had on a claim to establish that the disability or

death was incurred while in the performance and within the

scope of the member's duties, under the terms of the Illinois

Workers' Compensation Act or the Workers' Occupational

Diseases Act, whichever applies. The system shall make payment

of an occupational disability or occupational death benefit

only if the claim is found to be compensable under one or both

of those Acts.

Any amounts provided for a member or his dependents under

those Acts shall be applied for the period of time prescribed

by such Acts for payments thereunder as an offset to any

occupational disability or occupational death benefit or to a

survivors annuity or annuities provided in this Article in such

manner as may be prescribed by the rules of the board.

In those cases where the injury or death for which an

occupational disability or death benefit is payable under this

Article was caused under circumstances creating a legal

liability for damages on the part of some person other than the

employer, all of the rights and privileges, including the right

to notice of suit brought against such other person and the

right to commence or join in such suit, as given the employer,

together with the conditions or obligations imposed under

paragraph (b) of Section 5 of the "Workers' Compensation Act",

are also given and granted to the System, to the end that the

System created by this Article may be paid or reimbursed for

the amount of temporary disability, occupational disability or

death benefit paid or to be paid by the System to the injured

employee, or his personal representative in the event of death,

including any contribution amounts credited to the account of

the member under Section 14-127, out of any judgment,

settlement, or payment for such injury or death obtained by

such injured employee or his personal representative from such

other person, or be paid or reimbursed for such amount paid or

to be paid by the System to the surviving spouse or children of

such employee by virtue of the injury or the death of such

employee from such injury.

(Source: P.A. 84-1028.)

(40 ILCS 5/16-149.1) (from Ch. 108 1/2, par. 16-149.1)

Sec. 16-149.1. Occupational disability benefit.

(a) A member who becomes totally and immediately

incapacitated for duty as the proximate result of bodily

injuries sustained or a hazard undergone while in the

performance and within the scope of his or her duties, if such

injuries or hazard were not the consequence of the member's

willful negligence, shall receive an occupational disability

benefit upon making proper application. If application is made

more than 90 days subsequent to the later of the commencement

of disability or the date eligibility for salary ceases,

benefits shall begin to accrue from the date of application,

but service credit and credit for contributions will be earned

from the date of disability. The benefit is not payable to, and

credit for service and contributions may not be earned under

this Section by, a member who is receiving a benefit under

Section 16-133, 16-149, or 16-149.2, or who is receiving salary

as a teacher, or is employed in any capacity as a teacher by

the employers included under this System or in an equivalent

capacity in any other public or private school, college or

university.

Proper proof of disability shall consist of: (1) a written

certificate by at least 2 licensed and practicing physicians

designated by the System, certifying that member is disabled

and unable to perform assigned duties; (2) a written statement

from the employer certifying that the member is disabled and

not receiving a salary, and related information as to the cause

and commencement of disability; and (3) a written statement

from the member certifying that the member is not and has not

been engaged in gainful employment.

Occupational disability benefits under this Section shall

be payable only if (1) on the basis of a claim filed by the

applicant with the Illinois Workers' Compensation Industrial

Commission of Illinois, it is determined by the Commission that

the disability was incurred while in the performance and within

the scope of assigned duties, under the terms of the Illinois

Workers' Compensation or Occupational Diseases Act, whichever

applies, and the claim is adjudicated as compensable by the

Commission under either of the aforesaid Acts; or (2) on the

basis of a claim filed by the applicant with an insurance

carrier with which the employer of the applicant has a workers'

compensation insurance policy, it is determined under the terms

of the aforesaid policy that the disability was incurred while

in the performance and within the scope of the member's

assigned duties and the claim is approved as compensable.

(b) The occupational disability benefit shall be the

greater of 60% of the member's contract salary rate at the time

the disability benefit becomes payable or the member's annual

contract rate on the date the disability commenced, and shall

be payable monthly in equal installments. For part-time and

substitute teachers after June 30, 1990, the benefit shall be

the greater of the member's most recent annualized salary rate

at the time the disability benefit becomes payable or the

annualized salary rate or annual contract rate at the time the

disability commenced.

Any amounts provided for a member or a member's dependents

under the Illinois Workers' Compensation Act, the Illinois

Occupational Diseases Act or a workers' compensation insurance

policy provided by the employer shall be applied as an offset

to any occupational benefit provided under this Section in such

manner as may be prescribed by the board.

In addition to the above benefit, the member shall receive

creditable service and credit for contributions that the member

would have made in active employment during the period of

disability. Creditable service and credit for contributions

shall be calculated on the basis of the annual salary rate used

in computing the benefit; however, such credit shall not be

used in the determination of the period for which disability

benefits are payable. A member who remains disabled after the

termination of benefits due to age or the expiration of the

maximum period for which benefits are payable shall be entitled

to the retirement annuity provided under Section 16-133,

notwithstanding that the member may not have the required

minimum period of creditable service prescribed for such

annuity.

(c) Effective January 1, 1988, the occupational disability

benefit shall continue until the time one of the following

first occurs: (1) disability ceases; (2) the member requests

termination of the benefit; or (3) the member is engaged or

found to be able to engage in gainful employment. If the

disability benefit is discontinued under item (3) but the

member is subsequently found to be unable to be gainfully

employed due to the disability which was the cause for his or

her most recent incapacity to perform the duties of a teacher,

the disability benefit will be resumed, upon notification of

the System, as soon as the member is not eligible to receive

salary.

(d) The board shall prescribe rules governing the filing,

investigation, control, and supervision of disability claims.

Costs incurred by a claimant in connection with completing a

claim for disability benefits shall be paid by the claimant.

(Source: P.A. 86-272; 86-273; 86-1488; 87-794; 87-1265.)

(40 ILCS 5/17-117.1) (from Ch. 108 1/2, par. 17-117.1)

Sec. 17-117.1. Duty disability. A teacher who becomes

wholly and presumably permanently incapacitated for duty while

under age 65 as the proximate result of injuries sustained or a

hazardous condition encountered in the performance and within

the scope of his duties, if such injury or hazard was not the

result of his own negligence, shall be entitled to a duty

disability benefit, provided:

(1) application for the benefit is made to the Board

not more than 6 months after a final settlement or an award

from the Illinois Workers' Compensation Industrial

Commission or within 6 months of the manifestation of an

injury or illness that can be traced directly to an injury

or illness for which a claim was filed with the Illinois

Workers' Compensation Industrial Commission;

(2) certification is received from 2 or more physicians

designated by the Board that the teacher is physically

incapacitated for teaching service; and

(3) the teacher provides the Board with a copy of the

notice of the occurrence that was filed with the Employer

within the time provided by law.

The benefit shall be payable during disability and shall be

75% of the salary in effect at date of disability, payable

until the teacher's attainment of age 65. At such time if

disability still exists, the teacher shall become entitled to a

service retirement pension. Creditable service shall accrue

during the period the disability benefit is payable.

Before any action is taken by the Board on an application

for a duty disability benefit, the teacher shall file a claim

with the Illinois Workers' Compensation Industrial Commission

to establish that the disability was incurred while the teacher

was acting within the scope of and in the course of his duties

under the terms of the Workers' Compensation or Occupational

Diseases Acts, whichever may be applicable. The benefit shall

be payable after a finding by the Commission that the claim was

compensable under either of the aforesaid Acts; but if such

finding is appealed the benefit shall be payable only upon

affirmance of the Commission's finding. After the teacher has

made timely application for a duty disability benefit supported

by the certificate of two or more physicians, he shall be

entitled to a disability retirement pension provided in Section

17-117 of this Act until such time as the Illinois Workers'

Compensation Industrial Commission award finding that his

disability is duty-connected as provided in this Section

becomes final.

Any amounts provided for the teacher under such Acts shall

be applied as an offset to the duty disability benefit payable

hereunder in such manner as may be prescribed by the rules of

the Board.

(Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)

Section 45. The Nursing Education Scholarship Law is

amended by changing Section 3 as follows:

(110 ILCS 975/3) (from Ch. 144, par. 2753)

Sec. 3. Definitions.

The following terms, whenever used or referred to, have the

following meanings except where the context clearly indicates

otherwise:

(1) "Board" means the Board of Higher Education created by

the Board of Higher Education Act.

(2) "Department" means the Illinois Department of Public

Health.

(3) "Approved institution" means a public community

college, private junior college, hospital-based diploma in

nursing program, or public or private college or university

located in this State that has approval by the Department of

Professional Regulation for an associate degree in nursing

program, associate degree in applied sciences in nursing

program, hospital-based diploma in nursing program,

baccalaureate degree in nursing program, or certificate in

practical nursing program.

(4) "Baccalaureate degree in nursing program" means a

program offered by an approved institution and leading to a

bachelor of science degree in nursing.

(5) "Enrollment" means the establishment and maintenance

of an individual's status as a student in an approved

institution, regardless of the terms used at the institution to

describe such status.

(6) "Academic year" means the period of time from September

1 of one year through August 31 of the next year or as

otherwise defined by the academic institution.

(7) "Associate degree in nursing program or hospital-based

diploma in nursing program" means a program offered by an

approved institution and leading to an associate degree in

nursing, associate degree in applied sciences in nursing, or

hospital-based diploma in nursing.

(8) "Director" means the Director of the Illinois

Department of Public Health.

(9) "Accepted for admission" means a student has completed

the requirements for entry into an associate degree in nursing

program, associate degree in applied sciences in nursing

program, hospital-based diploma in nursing program,

baccalaureate degree in nursing program, or certificate in

practical nursing program at an approved institution, as

documented by the institution.

(10) "Fees" means those mandatory charges, in addition to

tuition, that all enrolled students must pay, including

required course or lab fees.

(11) "Full-time student" means a student enrolled for at

least 12 hours per term or as otherwise determined by the

academic institution.

(12) "Law" means the Nursing Education Scholarship Law.

(13) "Nursing employment obligation" means employment in

this State as a registered professional nurse or licensed

practical nurse in direct patient care for at least one year

for each year of scholarship assistance received through the

Nursing Education Scholarship Program.

(14) "Part-time student" means a person who is enrolled for

at least one-third of the number of hours required per term by

a school for its full-time students.

(15) "Practical nursing program" means a program offered by

an approved institution leading to a certificate in practical

nursing.

(16) "Registered professional nurse" means a person who is

currently licensed as a registered professional nurse by the

Department of Professional Regulation under the Nursing and

Advanced Practice Nursing Act.

(17) "Licensed practical nurse" means a person who is

currently licensed as a licensed practical nurse by the

Department of Professional Regulation under the Nursing and

Advanced Practice Nursing Act.

(18) "School term" means an academic term, such as a

semester, quarter, trimester, or number of clock hours, as

defined by an approved institution.

(19) "Student in good standing" means a student maintaining

a cumulative grade point average equivalent to at least the

academic grade of a "C".

(20) "Total and permanent disability" means a physical or

mental impairment, disease, or loss of a permanent nature that

prevents nursing employment with or without reasonable

accommodation. Proof of disability shall be a declaration from

the social security administration, Illinois Workers'

Compensation Industrial Commission, Department of Defense, or

an insurer authorized to transact business in Illinois who is

providing disability insurance coverage to a contractor.

(21) "Tuition" means the established charges of an

institution of higher learning for instruction at that

institution.

(Source: P.A. 92-43, eff. 1-1-02.)

Section 50. The Illinois Insurance Code is amended by

changing Section 416 as follows:

(215 ILCS 5/416)

Sec. 416. Illinois Workers' Compensation Industrial

Commission Operations Fund Surcharge.

(a) As of the effective date of this amendatory Act of the

93rd General Assembly, every company licensed or authorized by

the Illinois Department of Insurance and insuring employers'

liabilities arising under the Workers' Compensation Act or the

Workers' Occupational Diseases Act shall remit to the Director

a surcharge based upon the annual direct written premium, as

reported under Section 136 of this Act, of the company in the

manner provided in this Section. Such proceeds shall be

deposited into the Illinois Workers' Compensation Industrial

Commission Operations Fund as established in the Workers'

Compensation Act. If a company survives or was formed by a

merger, consolidation, reorganization, or reincorporation, the

direct written premiums of all companies party to the merger,

consolidation, reorganization, or reincorporation shall, for

purposes of determining the amount of the fee imposed by this

Section, be regarded as those of the surviving or new company.

(b)(1) Except as provided in subsection (b)(2) of this

Section, beginning on July 1, 2004 and each year thereafter,

the Director shall charge an annual Illinois Workers'

Compensation Industrial Commission Operations Fund Surcharge

from every company subject to subsection (a) of this Section

equal to 1.5% of its direct written premium for insuring

employers' liabilities arising under the Workers' Compensation

Act or Workers' Occupational Diseases Act as reported in each

company's annual statement filed for the previous year as

required by Section 136. The Illinois Workers' Compensation

Industrial Commission Operations Fund Surcharge shall be

collected by companies subject to subsection (a) of this

Section as a separately stated surcharge on insured employers

at the rate of 1.5% of direct written premium. All sums

collected by the Department of Insurance under the provisions

of this Section shall be paid promptly after the receipt of the

same, accompanied by a detailed statement thereof, into the

Illinois Workers' Compensation Industrial Commission

Operations Fund in the State treasury.

(b)(2) Prior to July 1, 2004, the Director shall charge and

collect the surcharge set forth in subparagraph (b)(1) of this

Section on or before September 1, 2003, December 1, 2003, March

1, 2004 and June 1, 2004. For purposes of this subsection

(b)(2), the company shall remit the amounts to the Director

based on estimated direct premium for each quarter beginning on

July 1, 2003, together with a sworn statement attesting to the

reasonableness of the estimate, and the estimated amount of

direct premium written forming the bases of the remittance.

(c) In addition to the authority specifically granted under

Article XXV of this Code, the Director shall have such

authority to adopt rules or establish forms as may be

reasonably necessary for purposes of enforcing this Section.

The Director shall also have authority to defer, waive, or

abate the surcharge or any penalties imposed by this Section if

in the Director's opinion the company's solvency and ability to

meet its insured obligations would be immediately threatened by

payment of the surcharge due.

(d) When a company fails to pay the full amount of any

annual Illinois Workers' Compensation Industrial Commission

Operations Fund Surcharge of $100 or more due under this

Section, there shall be added to the amount due as a penalty

the greater of $1,000 or an amount equal to 5% of the

deficiency for each month or part of a month that the

deficiency remains unpaid.

(e) The Department of Insurance may enforce the collection

of any delinquent payment, penalty, or portion thereof by legal

action or in any other manner by which the collection of debts

due the State of Illinois may be enforced under the laws of

this State.

(f) Whenever it appears to the satisfaction of the Director

that a company has paid pursuant to this Act an Illinois

Workers' Compensation Industrial Commission Operations Fund

Surcharge in an amount in excess of the amount legally

collectable from the company, the Director shall issue a credit

memorandum for an amount equal to the amount of such

overpayment. A credit memorandum may be applied for the 2-year

period from the date of issuance, against the payment of any

amount due during that period under the surcharge imposed by

this Section or, subject to reasonable rule of the Department

of Insurance including requirement of notification, may be

assigned to any other company subject to regulation under this

Act. Any application of credit memoranda after the period

provided for in this Section is void.

(g) Annually, the Governor may direct a transfer of up to

2% of all moneys collected under this Section to the Insurance

Financial Regulation Fund.

(Source: P.A. 93-32, eff. 6-20-03.)

Section 55. The Local Governmental and Governmental

Employees Tort Immunity Act is amended by changing Section

9-103 as follows:

(745 ILCS 10/9-103) (from Ch. 85, par. 9-103)

Sec. 9-103. (a) A local public entity may protect itself

against any property damage or against any liability or loss

which may be imposed upon it or one of its employees for a

tortious act under Federal or State common or statutory law, or

imposed upon it under the Workers' Compensation Act, the

Workers' Occupational Diseases Act, or the Unemployment

Insurance Act by means including, but not limited to,

insurance, individual or joint self-insurance, including all

operating and administrative costs and expenses directly

associated therewith, claims services and risk management

directly attributable to loss prevention and loss reduction,

legal services directly attributable to the insurance,

self-insurance, or joint self-insurance program, educational,

inspectional, and supervisory services directly relating to

loss prevention and loss reduction, or participation in a

reciprocal insurer as provided in Sections 72, 76 and 81 of the

Illinois Insurance Code. Insurance shall be carried with a

company authorized by the Department of Insurance to write such

insurance coverage in Illinois.

(a-5) A local public entity may individually or jointly

self-insure provided it complies with any other statutory

requirements specifically related to individual or joint

self-insurance by local public entities. Whenever the terms

"self-insure" or "self-insurance" are utilized within this

Act, such term shall apply to both individual and joint

self-insurance. The expenditure of funds of a local public

entity to protect itself or its employees against liability is

proper for any local public entity. A local public entity that

has individually self-insured may establish reserves for

expected losses for any liability or loss for which the local

public entity is authorized to purchase insurance under this

Act. The decision of the local public entity to establish a

reserve and the amount of the reserve shall be based on

reasonable actuarial or insurance underwriting evidence.

Property taxes shall not be levied or extended if the effect is

to increase the reserve beyond 125% of the actuary's or

insurance underwriter's estimated ultimate losses at the 95%

confidence level. Certification of the amount of the reserve

shall be made by the independent auditor, actuary, or insurance

underwriter and included in an annual report. The annual report

shall also list all expenditures from the reserve or from

property taxes levied or extended for tort immunity purposes.

Total claims payments and total reserves must be listed in

aggregate amounts. All other expenditures must be identified

individually. A local public entity that maintains a

self-insurance reserve or that levies and extends a property

tax for tort immunity purposes must include in its audit or

annual report any expenditures made from the property tax levy

or self-insurance reserve within the scope of the audit or

annual report.

(b) A local public entity may contract for or purchase any

of the guaranteed fund certificates or shares of guaranteed

capital as provided for in Section 56 of the Illinois Insurance

Code. The expenditure of funds of the local public entity for

said contract or purchase is proper for any local public

entity.

(c) Any insurance company that provides insurance coverage

to a local public entity shall utilize any immunities or may

assert any defenses to which the insured local public entity or

its employees are entitled. Public entities which are

individually or jointly self-insured shall be entitled to

assert all of the immunities provided by this Act or by common

law or statute on behalf of themselves or their employees

unless the local public entities shall elect by action of their

corporate authorities or specifically contract to waive in

whole or in part such immunities.

(d) Within 30 days after January 1, 1991, and within 30

days after each January 1 thereafter, local public entities

that are individually or jointly self-insured to protect

against liability under the Workers' Compensation Act and the

Workers' Occupational Diseases Act shall file with the Illinois

Workers' Compensation Industrial Commission a report

indicating an election to self-insure.

(Source: P.A. 91-628, eff. 1-1-00.)

Section 60. The Child Labor Law is amended by changing

Section 17.6 as follows:

(820 ILCS 205/17.6)

Sec. 17.6. Reports of work related death, injury, or

illness. If an employer is required to file a report with the

Illinois Workers' Compensation Industrial Commission under

Section 6 of the Workers' Compensation Act or Section 6 of the

Workers' Occupational Diseases Act, and the report relates to

the work related death, injury, or illness of a minor, the

employer shall file a copy of the report with the Department of

Labor. The Department may, by rule, require other employers to

submit reports of work related deaths, injuries and illnesses

of minors to the Department.

(Source: P.A. 88-365.)

Section 70. The Workers' Compensation Act is amended by

changing Sections 1, 4, 4a-2, 4a-3, 4a-7, 4d, 6, 7, 8, 13, 14,

14.1, 16a, 17, 19, 23, and 26 as follows:

(820 ILCS 305/1) (from Ch. 48, par. 138.1)

Sec. 1. This Act may be cited as the Workers' Compensation

Act.

(a) The term "employer" as used in this Act means:

1. The State and each county, city, town, township,

incorporated village, school district, body politic, or

municipal corporation therein.

2. Every person, firm, public or private corporation,

including hospitals, public service, eleemosynary, religious

or charitable corporations or associations who has any person

in service or under any contract for hire, express or implied,

oral or written, and who is engaged in any of the enterprises

or businesses enumerated in Section 3 of this Act, or who at or

prior to the time of the accident to the employee for which

compensation under this Act may be claimed, has in the manner

provided in this Act elected to become subject to the

provisions of this Act, and who has not, prior to such

accident, effected a withdrawal of such election in the manner

provided in this Act.

3. Any one engaging in any business or enterprise referred

to in subsections 1 and 2 of Section 3 of this Act who

undertakes to do any work enumerated therein, is liable to pay

compensation to his own immediate employees in accordance with

the provisions of this Act, and in addition thereto if he

directly or indirectly engages any contractor whether

principal or sub-contractor to do any such work, he is liable

to pay compensation to the employees of any such contractor or

sub-contractor unless such contractor or sub-contractor has

insured, in any company or association authorized under the

laws of this State to insure the liability to pay compensation

under this Act, or guaranteed his liability to pay such

compensation. With respect to any time limitation on the filing

of claims provided by this Act, the timely filing of a claim

against a contractor or subcontractor, as the case may be,

shall be deemed to be a timely filing with respect to all

persons upon whom liability is imposed by this paragraph.

In the event any such person pays compensation under this

subsection he may recover the amount thereof from the

contractor or sub-contractor, if any, and in the event the

contractor pays compensation under this subsection he may

recover the amount thereof from the sub-contractor, if any.

This subsection does not apply in any case where the

accident occurs elsewhere than on, in or about the immediate

premises on which the principal has contracted that the work be

done.

4. Where an employer operating under and subject to the

provisions of this Act loans an employee to another such

employer and such loaned employee sustains a compensable

accidental injury in the employment of such borrowing employer

and where such borrowing employer does not provide or pay the

benefits or payments due such injured employee, such loaning

employer is liable to provide or pay all benefits or payments

due such employee under this Act and as to such employee the

liability of such loaning and borrowing employers is joint and

several, provided that such loaning employer is in the absence

of agreement to the contrary entitled to receive from such

borrowing employer full reimbursement for all sums paid or

incurred pursuant to this paragraph together with reasonable

attorneys' fees and expenses in any hearings before the

Illinois Workers' Compensation Industrial Commission or in any

action to secure such reimbursement. Where any benefit is

provided or paid by such loaning employer the employee has the

duty of rendering reasonable cooperation in any hearings,

trials or proceedings in the case, including such proceedings

for reimbursement.

Where an employee files an Application for Adjustment of

Claim with the Illinois Workers' Compensation Industrial

Commission alleging that his claim is covered by the provisions

of the preceding paragraph, and joining both the alleged

loaning and borrowing employers, they and each of them, upon

written demand by the employee and within 7 days after receipt

of such demand, shall have the duty of filing with the Illinois

Workers' Compensation Industrial Commission a written

admission or denial of the allegation that the claim is covered

by the provisions of the preceding paragraph and in default of

such filing or if any such denial be ultimately determined not

to have been bona fide then the provisions of Paragraph K of

Section 19 of this Act shall apply.

An employer whose business or enterprise or a substantial

part thereof consists of hiring, procuring or furnishing

employees to or for other employers operating under and subject

to the provisions of this Act for the performance of the work

of such other employers and who pays such employees their

salary or wages notwithstanding that they are doing the work of

such other employers shall be deemed a loaning employer within

the meaning and provisions of this Section.

(b) The term "employee" as used in this Act means:

1. Every person in the service of the State, including

members of the General Assembly, members of the Commerce

Commission, members of the Illinois Workers' Compensation

Industrial Commission, and all persons in the service of the

University of Illinois, county, including deputy sheriffs and

assistant state's attorneys, city, town, township,

incorporated village or school district, body politic, or

municipal corporation therein, whether by election, under

appointment or contract of hire, express or implied, oral or

written, including all members of the Illinois National Guard

while on active duty in the service of the State, and all

probation personnel of the Juvenile Court appointed pursuant to

Article VI of the Juvenile Court Act of 1987, and including any

official of the State, any county, city, town, township,

incorporated village, school district, body politic or

municipal corporation therein except any duly appointed member

of a police department in any city whose population exceeds

200,000 according to the last Federal or State census, and

except any member of a fire insurance patrol maintained by a

board of underwriters in this State. A duly appointed member of

a fire department in any city, the population of which exceeds

200,000 according to the last federal or State census, is an

employee under this Act only with respect to claims brought

under paragraph (c) of Section 8.

One employed by a contractor who has contracted with the

State, or a county, city, town, township, incorporated village,

school district, body politic or municipal corporation

therein, through its representatives, is not considered as an

employee of the State, county, city, town, township,

incorporated village, school district, body politic or

municipal corporation which made the contract.

2. Every person in the service of another under any

contract of hire, express or implied, oral or written,

including persons whose employment is outside of the State of

Illinois where the contract of hire is made within the State of

Illinois, persons whose employment results in fatal or

non-fatal injuries within the State of Illinois where the

contract of hire is made outside of the State of Illinois, and

persons whose employment is principally localized within the

State of Illinois, regardless of the place of the accident or

the place where the contract of hire was made, and including

aliens, and minors who, for the purpose of this Act are

considered the same and have the same power to contract,

receive payments and give quittances therefor, as adult

employees.

3. Every sole proprietor and every partner of a business

may elect to be covered by this Act.

An employee or his dependents under this Act who shall have

a cause of action by reason of any injury, disablement or death

arising out of and in the course of his employment may elect to

pursue his remedy in the State where injured or disabled, or in

the State where the contract of hire is made, or in the State

where the employment is principally localized.

However, any employer may elect to provide and pay

compensation to any employee other than those engaged in the

usual course of the trade, business, profession or occupation

of the employer by complying with Sections 2 and 4 of this Act.

Employees are not included within the provisions of this Act

when excluded by the laws of the United States relating to

liability of employers to their employees for personal injuries

where such laws are held to be exclusive.

The term "employee" does not include persons performing

services as real estate broker, broker-salesman, or salesman

when such persons are paid by commission only.

(c) "Commission" means the Industrial Commission created

by Section 5 of "The Civil Administrative Code of Illinois",

approved March 7, 1917, as amended, or the Illinois Workers'

Compensation Industrial Commission created by Section 13 of

this Act.

(Source: P.A. 85-1209.)

(820 ILCS 305/4) (from Ch. 48, par. 138.4)

Sec. 4. (a) Any employer, including but not limited to

general contractors and their subcontractors, who shall come

within the provisions of Section 3 of this Act, and any other

employer who shall elect to provide and pay the compensation

provided for in this Act shall:

(1) File with the Commission annually an application

for approval as a self-insurer which shall include a

current financial statement, and annually, thereafter, an

application for renewal of self-insurance, which shall

include a current financial statement. Said application

and financial statement shall be signed and sworn to by the

president or vice president and secretary or assistant

secretary of the employer if it be a corporation, or by all

of the partners, if it be a copartnership, or by the owner

if it be neither a copartnership nor a corporation. All

initial applications and all applications for renewal of

self-insurance must be submitted at least 60 days prior to

the requested effective date of self-insurance. An

employer may elect to provide and pay compensation as

provided for in this Act as a member of a group workers'

compensation pool under Article V 3/4 of the Illinois

Insurance Code. If an employer becomes a member of a group

workers' compensation pool, the employer shall not be

relieved of any obligations imposed by this Act.

If the sworn application and financial statement of any

such employer does not satisfy the Commission of the

financial ability of the employer who has filed it, the

Commission shall require such employer to,

(2) Furnish security, indemnity or a bond guaranteeing

the payment by the employer of the compensation provided

for in this Act, provided that any such employer whose

application and financial statement shall not have

satisfied the commission of his or her financial ability

and who shall have secured his liability in part by excess

liability insurance shall be required to furnish to the

Commission security, indemnity or bond guaranteeing his or

her payment up to the effective limits of the excess

coverage, or

(3) Insure his entire liability to pay such

compensation in some insurance carrier authorized,

licensed, or permitted to do such insurance business in

this State. Every policy of an insurance carrier, insuring

the payment of compensation under this Act shall cover all

the employees and the entire compensation liability of the

insured: Provided, however, that any employer may insure

his or her compensation liability with 2 or more insurance

carriers or may insure a part and qualify under subsection

1, 2, or 4 for the remainder of his or her liability to pay

such compensation, subject to the following two

provisions:

Firstly, the entire compensation liability of the

employer to employees working at or from one location

shall be insured in one such insurance carrier or shall

be self-insured, and

Secondly, the employer shall submit evidence

satisfactorily to the Commission that his or her entire

liability for the compensation provided for in this Act

will be secured. Any provisions in any policy, or in

any endorsement attached thereto, attempting to limit

or modify in any way, the liability of the insurance

carriers issuing the same except as otherwise provided

herein shall be wholly void.

Nothing herein contained shall apply to policies of

excess liability carriage secured by employers who have

been approved by the Commission as self-insurers, or

(4) Make some other provision, satisfactory to the

Commission, for the securing of the payment of compensation

provided for in this Act, and

(5) Upon becoming subject to this Act and thereafter as

often as the Commission may in writing demand, file with

the Commission in form prescribed by it evidence of his or

her compliance with the provision of this Section.

(a-1) Regardless of its state of domicile or its principal

place of business, an employer shall make payments to its

insurance carrier or group self-insurance fund, where

applicable, based upon the premium rates of the situs where the

work or project is located in Illinois if:

(A) the employer is engaged primarily in the building

and construction industry; and

(B) subdivision (a)(3) of this Section applies to the

employer or the employer is a member of a group

self-insurance plan as defined in subsection (1) of Section

4a.

The Illinois Workers' Compensation Industrial Commission

shall impose a penalty upon an employer for violation of this

subsection (a-1) if:

(i) the employer is given an opportunity at a hearing

to present evidence of its compliance with this subsection

(a-1); and

(ii) after the hearing, the Commission finds that the

employer failed to make payments upon the premium rates of

the situs where the work or project is located in Illinois.

The penalty shall not exceed $1,000 for each day of work

for which the employer failed to make payments upon the premium

rates of the situs where the work or project is located in

Illinois, but the total penalty shall not exceed $50,000 for

each project or each contract under which the work was

performed.

Any penalty under this subsection (a-1) must be imposed not

later than one year after the expiration of the applicable

limitation period specified in subsection (d) of Section 6 of

this Act. Penalties imposed under this subsection (a-1) shall

be deposited into the Illinois Workers' Compensation

Industrial Commission Operations Fund, a special fund that is

created in the State treasury. Subject to appropriation, moneys

in the Fund shall be used solely for the operations of the

Illinois Workers' Compensation Industrial Commission.

(b) The sworn application and financial statement, or

security, indemnity or bond, or amount of insurance, or other

provisions, filed, furnished, carried, or made by the employer,

as the case may be, shall be subject to the approval of the

Commission.

Deposits under escrow agreements shall be cash, negotiable

United States government bonds or negotiable general

obligation bonds of the State of Illinois. Such cash or bonds

shall be deposited in escrow with any State or National Bank or

Trust Company having trust authority in the State of Illinois.

Upon the approval of the sworn application and financial

statement, security, indemnity or bond or amount of insurance,

filed, furnished or carried, as the case may be, the Commission

shall send to the employer written notice of its approval

thereof. The certificate of compliance by the employer with the

provisions of subparagraphs (2) and (3) of paragraph (a) of

this Section shall be delivered by the insurance carrier to the

Illinois Workers' Compensation Industrial Commission within

five days after the effective date of the policy so certified.

The insurance so certified shall cover all compensation

liability occurring during the time that the insurance is in

effect and no further certificate need be filed in case such

insurance is renewed, extended or otherwise continued by such

carrier. The insurance so certified shall not be cancelled or

in the event that such insurance is not renewed, extended or

otherwise continued, such insurance shall not be terminated

until at least 10 days after receipt by the Illinois Workers'

Compensation Industrial Commission of notice of the

cancellation or termination of said insurance; provided,

however, that if the employer has secured insurance from

another insurance carrier, or has otherwise secured the payment

of compensation in accordance with this Section, and such

insurance or other security becomes effective prior to the

expiration of the 10 days, cancellation or termination may, at

the option of the insurance carrier indicated in such notice,

be effective as of the effective date of such other insurance

or security.

(c) Whenever the Commission shall find that any

corporation, company, association, aggregation of individuals,

reciprocal or interinsurers exchange, or other insurer

effecting workers' compensation insurance in this State shall

be insolvent, financially unsound, or unable to fully meet all

payments and liabilities assumed or to be assumed for

compensation insurance in this State, or shall practice a

policy of delay or unfairness toward employees in the

adjustment, settlement, or payment of benefits due such

employees, the Commission may after reasonable notice and

hearing order and direct that such corporation, company,

association, aggregation of individuals, reciprocal or

interinsurers exchange, or insurer, shall from and after a date

fixed in such order discontinue the writing of any such

workers' compensation insurance in this State. Subject to such

modification of the order as the Commission may later make on

review of the order, as herein provided, it shall thereupon be

unlawful for any such corporation, company, association,

aggregation of individuals, reciprocal or interinsurers

exchange, or insurer to effect any workers' compensation

insurance in this State. A copy of the order shall be served

upon the Director of Insurance by registered mail. Whenever the

Commission finds that any service or adjustment company used or

employed by a self-insured employer or by an insurance carrier

to process, adjust, investigate, compromise or otherwise

handle claims under this Act, has practiced or is practicing a

policy of delay or unfairness toward employees in the

adjustment, settlement or payment of benefits due such

employees, the Commission may after reasonable notice and

hearing order and direct that such service or adjustment

company shall from and after a date fixed in such order be

prohibited from processing, adjusting, investigating,

compromising or otherwise handling claims under this Act.

Whenever the Commission finds that any self-insured

employer has practiced or is practicing delay or unfairness

toward employees in the adjustment, settlement or payment of

benefits due such employees, the Commission may, after

reasonable notice and hearing, order and direct that after a

date fixed in the order such self-insured employer shall be

disqualified to operate as a self-insurer and shall be required

to insure his entire liability to pay compensation in some

insurance carrier authorized, licensed and permitted to do such

insurance business in this State, as provided in subparagraph 3

of paragraph (a) of this Section.

All orders made by the Commission under this Section shall

be subject to review by the courts, said review to be taken in

the same manner and within the same time as provided by Section

19 of this Act for review of awards and decisions of the

Commission, upon the party seeking the review filing with the

clerk of the court to which said review is taken a bond in an

amount to be fixed and approved by the court to which the

review is taken, conditioned upon the payment of all

compensation awarded against the person taking said review

pending a decision thereof and further conditioned upon such

other obligations as the court may impose. Upon the review the

Circuit Court shall have power to review all questions of fact

as well as of law. The penalty hereinafter provided for in this

paragraph shall not attach and shall not begin to run until the

final determination of the order of the Commission.

(d) Upon a finding by the Commission, after reasonable

notice and hearing, of the knowing and wilful failure or

refusal of an employer to comply with any of the provisions of

paragraph (a) of this Section or the failure or refusal of an

employer, service or adjustment company, or an insurance

carrier to comply with any order of the Illinois Workers'

Compensation Industrial Commission pursuant to paragraph (c)

of this Section disqualifying him or her to operate as a self

insurer and requiring him or her to insure his or her

liability, the Commission may assess a civil penalty of up to

$500 per day for each day of such failure or refusal after the

effective date of this amendatory Act of 1989. The minimum

penalty under this Section shall be the sum of $10,000. Each

day of such failure or refusal shall constitute a separate

offense. The Commission may assess the civil penalty personally

and individually against the corporate officers and directors

of a corporate employer, the partners of an employer

partnership, and the members of an employer limited liability

company, after a finding of a knowing and willful refusal or

failure of each such named corporate officer, director,

partner, or member to comply with this Section. The liability

for the assessed penalty shall be against the named employer

first, and if the named employer fails or refuses to pay the

penalty to the Commission within 30 days after the final order

of the Commission, then the named corporate officers,

directors, partners, or members who have been found to have

knowingly and willfully refused or failed to comply with this

Section shall be liable for the unpaid penalty or any unpaid

portion of the penalty. All penalties collected under this

Section shall be deposited in the Illinois Workers'

Compensation Industrial Commission Operations Fund.

Upon the failure or refusal of any employer, service or

adjustment company or insurance carrier to comply with the

provisions of this Section and with the orders of the

Commission under this Section, or the order of the court on

review after final adjudication, the Commission may bring a

civil action to recover the amount of the penalty in Cook

County or in Sangamon County in which litigation the Commission

shall be represented by the Attorney General. The Commission

shall send notice of its finding of non-compliance and

assessment of the civil penalty to the Attorney General. It

shall be the duty of the Attorney General within 30 days after

receipt of the notice, to institute prosecutions and promptly

prosecute all reported violations of this Section.

(e) This Act shall not affect or disturb the continuance of

any existing insurance, mutual aid, benefit, or relief

association or department, whether maintained in whole or in

part by the employer or whether maintained by the employees,

the payment of benefits of such association or department being

guaranteed by the employer or by some person, firm or

corporation for him or her: Provided, the employer contributes

to such association or department an amount not less than the

full compensation herein provided, exclusive of the cost of the

maintenance of such association or department and without any

expense to the employee. This Act shall not prevent the

organization and maintaining under the insurance laws of this

State of any benefit or insurance company for the purpose of

insuring against the compensation provided for in this Act, the

expense of which is maintained by the employer. This Act shall

not prevent the organization or maintaining under the insurance

laws of this State of any voluntary mutual aid, benefit or

relief association among employees for the payment of

additional accident or sick benefits.

(f) No existing insurance, mutual aid, benefit or relief

association or department shall, by reason of anything herein

contained, be authorized to discontinue its operation without

first discharging its obligations to any and all persons

carrying insurance in the same or entitled to relief or

benefits therein.

(g) Any contract, oral, written or implied, of employment

providing for relief benefit, or insurance or any other device

whereby the employee is required to pay any premium or premiums

for insurance against the compensation provided for in this Act

shall be null and void. Any employer withholding from the wages

of any employee any amount for the purpose of paying any such

premium shall be guilty of a Class B misdemeanor.

In the event the employer does not pay the compensation for

which he or she is liable, then an insurance company,

association or insurer which may have insured such employer

against such liability shall become primarily liable to pay to

the employee, his or her personal representative or beneficiary

the compensation required by the provisions of this Act to be

paid by such employer. The insurance carrier may be made a

party to the proceedings in which the employer is a party and

an award may be entered jointly against the employer and the

insurance carrier.

(h) It shall be unlawful for any employer, insurance

company or service or adjustment company to interfere with,

restrain or coerce an employee in any manner whatsoever in the

exercise of the rights or remedies granted to him or her by

this Act or to discriminate, attempt to discriminate, or

threaten to discriminate against an employee in any way because

of his or her exercise of the rights or remedies granted to him

or her by this Act.

It shall be unlawful for any employer, individually or

through any insurance company or service or adjustment company,

to discharge or to threaten to discharge, or to refuse to

rehire or recall to active service in a suitable capacity an

employee because of the exercise of his or her rights or

remedies granted to him or her by this Act.

(i) If an employer elects to obtain a life insurance policy

on his employees, he may also elect to apply such benefits in

satisfaction of all or a portion of the death benefits payable

under this Act, in which case, the employer's compensation

premium shall be reduced accordingly.

(j) Within 45 days of receipt of an initial application or

application to renew self-insurance privileges the

Self-Insurers Advisory Board shall review and submit for

approval by the Chairman of the Commission recommendations of

disposition of all initial applications to self-insure and all

applications to renew self-insurance privileges filed by

private self-insurers pursuant to the provisions of this

Section and Section 4a-9 of this Act. Each private self-insurer

shall submit with its initial and renewal applications the

application fee required by Section 4a-4 of this Act.

The Chairman of the Commission shall promptly act upon all

initial applications and applications for renewal in full

accordance with the recommendations of the Board or, should the

Chairman disagree with any recommendation of disposition of the

Self-Insurer's Advisory Board, he shall within 30 days of

receipt of such recommendation provide to the Board in writing

the reasons supporting his decision. The Chairman shall also

promptly notify the employer of his decision within 15 days of

receipt of the recommendation of the Board.

If an employer is denied a renewal of self-insurance

privileges pursuant to application it shall retain said

privilege for 120 days after receipt of a notice of

cancellation of the privilege from the Chairman of the

Commission.

All orders made by the Chairman under this Section shall be

subject to review by the courts, such review to be taken in the

same manner and within the same time as provided by subsection

(f) of Section 19 of this Act for review of awards and

decisions of the Commission, upon the party seeking the review

filing with the clerk of the court to which such review is

taken a bond in an amount to be fixed and approved by the court

to which the review is taken, conditioned upon the payment of

all compensation awarded against the person taking such review

pending a decision thereof and further conditioned upon such

other obligations as the court may impose. Upon the review the

Circuit Court shall have power to review all questions of fact

as well as of law.

(Source: P.A. 91-375, eff. 1-1-00; 91-757, eff. 1-1-01; 92-324,

eff. 8-9-01.)

(820 ILCS 305/4a-2) (from Ch. 48, par. 138.4a-2)

Sec. 4a-2. As used in Sections 4a-1 through 4a-9:

(a) "Board" means the Self-Insurers Advisory Board created

by Section 4a-1.

(b) "Chairman" means the Chairman of the Illinois Workers'

Compensation Industrial Commission.

(c) "Private self-insurer" means a private employer that

has been authorized to self-insure its payment of workers'

compensation benefits pursuant to subsection (a) of Section 4

of this Act or to self-insure its payment of occupational

disease benefits pursuant to subsection (a) of Section 4 of the

Workers' Occupational Diseases Act but does not include group

self-insured employers under Section 4a of this Act or Section

4a of the Workers' Occupational Diseases Act or the State of

Illinois, any political subdivision of the State, unit of local

government or school district, or any other public authorities

or quasi-governmental bodies including any subunits of the

foregoing entities.

(d) "Insolvent self-insurer" means a private self-insurer

financially unable to pay compensation due under this Act,

which (i) has filed either prior to or after the effective date

of this Section or (ii) is the subject party in any proceeding

under the Federal Bankruptcy Reform Act of 1978, or is the

subject party in any proceeding in which a receiver, custodian,

liquidator, rehabilitator, sequestrator, trustee or similar

officer has been appointed by any Court to act in lieu of or on

behalf of that self-insurer.

(e) "Fund" means the Self-Insurers Security Fund

established by Section 4a-5.

(f) "Trustee" means a member of the Self-Insurers Advisory

Board.

(g) "Self-Insurers Administration Fund" means the Fund

established by Section 4a-6.1.

(h) "Application fee" means the application fee provided

for in Section 4a-4.

(Source: P.A. 85-1385.)

(820 ILCS 305/4a-3) (from Ch. 48, par. 138.4a-3)

Sec. 4a-3. (a) The Board shall consist of the Chairman of

the Illinois Workers' Compensation Industrial Commission, as

Chairman of the Board, and six other members appointed by the

Chairman who shall be expert in matters of self-insurance for

workers' compensation liability. One such member shall

represent the general public. The Trustees shall initially be

appointed by the Chairman within 30 days of the effective date

of this amendatory Act of 1985. Three of the Trustees initially

appointed by the Chairman shall serve for a two-year term

ending January 1, 1988, and three shall serve for a four-year

term ending January 1, 1990. Thereafter, each Trustee shall be

appointed to a four-year term and shall continue to serve until

his successor is appointed.

(b) A vacancy in the office of any appointed member shall

occur upon his resignation, death, or conviction of a felony.

The Chairman may remove any member from office on a formal

finding of incompetence, neglect of duty or malfeasance in

office. Within 30 days after the office of any appointed member

becomes vacant for any reason, the Chairman shall fill that

vacancy for the unexpired term in the same manner as that in

which appointments are made.

(Source: P.A. 84-1097.)

(820 ILCS 305/4a-7) (from Ch. 48, par. 138.4a-7)

Sec. 4a-7. (a) The Commission may upon direction of the

Board from time to time assess each of the private

self-insurers a pro rata share of the funding reasonably

necessary to carry out its activities under this Section. The

prorations shall be made on the basis of each self-insured's

most recent payment into the rate adjustment fund under Section

7(f) of this Act. In no event shall a private self-insurer be

assessed at one time in excess of .6% of the compensation paid

by that private self-insurer during the previous calendar year

for claims incurred as a self-insurer. Total assessments

against it in any calendar year shall not exceed 1.2% of the

compensation it has paid during the previous calendar year as a

self-insurer for claims incurred. Funds obtained by such

assessments shall be used only for the purposes set forth in

this Section, and shall be deposited upon receipt by the

Commission into the Self-Insurers Security Fund. If payment of

any assessment made under this subsection is not made within 30

days of the sending of the notice to the private self-insurer,

the Commission at the direction of the Board shall proceed in

circuit court for judgment against that private self-insurer

which judgment shall include the amount of the assessment, the

costs of suit, interest and reasonable attorneys' fees.

(b) A private self-insurer which ceases to be a

self-insurer shall be liable for any and all assessments made

pursuant to this Section during the period following the date

its certificate of authority to self-insure is withdrawn,

revoked or surrendered until such time as it has discharged all

obligations to pay compensation which arose during the period

of time said former self-insurer was self-insured. Assessments

of such a former private self-insurer shall be based on the

compensation paid by the former private self-insurer during the

preceding calendar year on claims that arose during the period

of time said former private self-insurer was self-insured.

(c) The Board on behalf of the Commission shall annually

contract for an independent certified audit of the financial

activities of the Fund, and an annual report as of June 30

shall be submitted promptly by the Board to the Chairman of the

Illinois Workers' Compensation Industrial Commission and to

each Trustee. Written reports of all activities shall be

submitted to the Commission by the Board on a monthly basis.

(d) If there are monies remaining in the Fund after all

outstanding obligations of all insolvent self-insurers have

been satisfied and the costs of administration and defense have

been paid, such amounts shall be returned by the Commission

from the Fund as directed by the Board to the then private

self-insurers in that proportion which each said private

self-insurer has contributed to the Fund one year thereafter,

provided no outstanding liabilities remain against the Fund.

(e) Each private self-insurer shall be subject to the

direction of the Commission as provided in this Section as a

condition of obtaining and maintaining its certificate of

authority to self-insure.

(Source: P.A. 85-1385.)

(820 ILCS 305/4d)

Sec. 4d. Illinois Workers' Compensation Industrial

Commission Operations Fund Fee.

(a) As of the effective date of this amendatory Act of the

93rd General Assembly, each employer that self-insures its

liabilities arising under this Act or Workers' Occupational

Diseases Act shall pay a fee measured by the annual actual

wages paid in this State of such an employer in the manner

provided in this Section. Such proceeds shall be deposited in

the Illinois Workers' Compensation Industrial Commission

Operations Fund. If an employer survives or was formed by a

merger, consolidation, reorganization, or reincorporation, the

actual wages paid in this State of all employers party to the

merger, consolidation, reorganization, or reincorporation

shall, for purposes of determining the amount of the fee

imposed by this Section, be regarded as those of the surviving

or new employer.

(b) Beginning on the effective date of this amendatory Act

of the 93rd General Assembly and on July 1 of each year

thereafter, the Chairman shall charge and collect an annual

Illinois Workers' Compensation Industrial Commission

Operations Fund Fee from every employer subject to subsection

(a) of this Section equal to 0.045% of its annual actual wages

paid in this State as reported in each employer's annual

self-insurance renewal filed for the previous year as required

by Section 4 of this Act and Section 4 of the Workers'

Occupational Diseases Act. All sums collected by the Commission

under the provisions of this Section shall be paid promptly

after the receipt of the same, accompanied by a detailed

statement thereof, into the Illinois Workers' Compensation

Industrial Commission Operations Fund.

(c) In addition to the authority specifically granted under

Section 16, the Chairman shall have such authority to adopt

rules or establish forms as may be reasonably necessary for

purposes of enforcing this Section. The Commission shall have

authority to defer, waive, or abate the fee or any penalties

imposed by this Section if in the Commission's opinion the

employer's solvency and ability to meet its obligations to pay

workers' compensation benefits would be immediately threatened

by payment of the fee due.

(d) When an employer fails to pay the full amount of any

annual Illinois Workers' Compensation Industrial Commission

Operations Fund Fee of $100 or more due under this Section,

there shall be added to the amount due as a penalty the greater

of $1,000 or an amount equal to 5% of the deficiency for each

month or part of a month that the deficiency remains unpaid.

(e) The Commission may enforce the collection of any

delinquent payment, penalty or portion thereof by legal action

or in any other manner by which the collection of debts due the

State of Illinois may be enforced under the laws of this State.

(f) Whenever it appears to the satisfaction of the Chairman

that an employer has paid pursuant to this Act an Illinois

Workers' Compensation Industrial Commission Operations Fund

Fee in an amount in excess of the amount legally collectable

from the employer, the Chairman shall issue a credit memorandum

for an amount equal to the amount of such overpayment. A credit

memorandum may be applied for the 2-year period from the date

of issuance against the payment of any amount due during that

period under the fee imposed by this Section or, subject to

reasonable rule of the Commission including requirement of

notification, may be assigned to any other employer subject to

regulation under this Act. Any application of credit memoranda

after the period provided for in this Section is void.

(Source: P.A. 93-32, eff. 6-20-03.)

(820 ILCS 305/6) (from Ch. 48, par. 138.6)

Sec. 6. (a) Every employer within the provisions of this

Act, shall, under the rules and regulations prescribed by the

Commission, post printed notices in their respective places of

employment in such number and at such places as may be

determined by the Commission, containing such information

relative to this Act as in the judgment of the Commission may

be necessary to aid employees to safeguard their rights under

this Act in event of injury.

In addition thereto, the employer shall post in a

conspicuous place on the place of the employment a printed or

typewritten notice stating whether he is insured or whether he

has qualified and is operating as a self-insured employer. In

the event the employer is insured, the notice shall state the

name and address of his insurance carrier, the number of the

insurance policy, its effective date and the date of

termination. In the event of the termination of the policy for

any reason prior to the termination date stated, the posted

notice shall promptly be corrected accordingly. In the event

the employer is operating as a self-insured employer the notice

shall state the name and address of the company, if any,

servicing the compensation payments of the employer, and the

name and address of the person in charge of making compensation

payments.

(b) Every employer subject to this Act shall maintain

accurate records of work-related deaths, injuries and illness

other than minor injuries requiring only first aid treatment

and which do not involve medical treatment, loss of

consciousness, restriction of work or motion, or transfer to

another job and file with the Commission, in writing, a report

of all accidental deaths, injuries and illnesses arising out of

and in the course of the employment resulting in the loss of

more than 3 scheduled work days. In the case of death such

report shall be made no later than 2 working days following the

accidental death. In all other cases such report shall be made

between the 15th and 25th of each month unless required to be

made sooner by rule of the Commission. In case the injury

results in permanent disability, a further report shall be made

as soon as it is determined that such permanent disability has

resulted or will result from the injury. All reports shall

state the date of the injury, including the time of day or

night, the nature of the employer's business, the name,

address, age, sex, conjugal condition of the injured person,

the specific occupation of the injured person, the direct cause

of the injury and the nature of the accident, the character of

the injury, the length of disability, and in case of death the

length of disability before death, the wages of the injured

person, whether compensation has been paid to the injured

person, or to his or her legal representative or his heirs or

next of kin, the amount of compensation paid, the amount paid

for physicians', surgeons' and hospital bills, and by whom

paid, and the amount paid for funeral or burial expenses if

known. The reports shall be made on forms and in the manner as

prescribed by the Commission and shall contain such further

information as the Commission shall deem necessary and require.

The making of these reports releases the employer from making

such reports to any other officer of the State and shall

satisfy the reporting provisions as contained in the "Health

and Safety Act" and "An Act in relation to safety inspections

and education in industrial and commercial establishments and

to repeal an Act therein named", approved July 18, 1955, as now

or hereafter amended. The reports filed with the Commission

pursuant to this Section shall be made available by the

Commission to the Director of Labor or his representatives and

to all other departments of the State of Illinois which shall

require such information for the proper discharge of their

official duties. Failure to file with the Commission any of the

reports required in this Section is a petty offense.

Except as provided in this paragraph, all reports filed

hereunder shall be confidential and any person having access to

such records filed with the Illinois Workers' Compensation

Industrial Commission as herein required, who shall release any

information therein contained including the names or otherwise

identify any persons sustaining injuries or disabilities, or

give access to such information to any unauthorized person,

shall be subject to discipline or discharge, and in addition

shall be guilty of a Class B misdemeanor. The Commission shall

compile and distribute to interested persons aggregate

statistics, taken from the reports filed hereunder. The

aggregate statistics shall not give the names or otherwise

identify persons sustaining injuries or disabilities or the

employer of any injured or disabled person.

(c) Notice of the accident shall be given to the employer

as soon as practicable, but not later than 45 days after the

accident. Provided:

(1) In case of the legal disability of the employee or any

dependent of a deceased employee who may be entitled to

compensation under the provisions of this Act, the limitations

of time by this Act provided do not begin to run against such

person under legal disability until a guardian has been

appointed.

(2) In cases of injuries sustained by exposure to

radiological materials or equipment, notice shall be given to

the employer within 90 days subsequent to the time that the

employee knows or suspects that he has received an excessive

dose of radiation.

No defect or inaccuracy of such notice shall be a bar to

the maintenance of proceedings on arbitration or otherwise by

the employee unless the employer proves that he is unduly

prejudiced in such proceedings by such defect or inaccuracy.

Notice of the accident shall give the approximate date and

place of the accident, if known, and may be given orally or in

writing.

(d) Every employer shall notify each injured employee who

has been granted compensation under the provisions of Section 8

of this Act of his rights to rehabilitation services and advise

him of the locations of available public rehabilitation centers

and any other such services of which the employer has

knowledge.

In any case, other than one where the injury was caused by

exposure to radiological materials or equipment or asbestos

unless the application for compensation is filed with the

Commission within 3 years after the date of the accident, where

no compensation has been paid, or within 2 years after the date

of the last payment of compensation, where any has been paid,

whichever shall be later, the right to file such application

shall be barred.

In any case of injury caused by exposure to radiological

materials or equipment or asbestos, unless application for

compensation is filed with the Commission within 25 years after

the last day that the employee was employed in an environment

of hazardous radiological activity or asbestos, the right to

file such application shall be barred.

If in any case except one where the injury was caused by

exposure to radiological materials or equipment or asbestos,

the accidental injury results in death application for

compensation for death may be filed with the Commission within

3 years after the date of death where no compensation has been

paid or within 2 years after the date of the last payment of

compensation where any has been paid, whichever shall be later,

but not thereafter.

If an accidental injury caused by exposure to radiological

material or equipment or asbestos results in death within 25

years after the last day that the employee was so exposed

application for compensation for death may be filed with the

Commission within 3 years after the date of death, where no

compensation has been paid, or within 2 years after the date of

the last payment of compensation where any has been paid,

whichever shall be later, but not thereafter.

(e) Any contract or agreement made by any employer or his

agent or attorney with any employee or any other beneficiary of

any claim under the provisions of this Act within 7 days after

the injury shall be presumed to be fraudulent.

(Source: P.A. 84-981.)

(820 ILCS 305/7) (from Ch. 48, par. 138.7)

Sec. 7. The amount of compensation which shall be paid for

an accidental injury to the employee resulting in death is:

(a) If the employee leaves surviving a widow, widower,

child or children, the applicable weekly compensation rate

computed in accordance with subparagraph 2 of paragraph (b) of

Section 8, shall be payable during the life of the widow or

widower and if any surviving child or children shall not be

physically or mentally incapacitated then until the death of

the widow or widower or until the youngest child shall reach

the age of 18, whichever shall come later; provided that if

such child or children shall be enrolled as a full time student

in any accredited educational institution, the payments shall

continue until such child has attained the age of 25. In the

event any surviving child or children shall be physically or

mentally incapacitated, the payments shall continue for the

duration of such incapacity.

The term "child" means a child whom the deceased employee

left surviving, including a posthumous child, a child legally

adopted, a child whom the deceased employee was legally

obligated to support or a child to whom the deceased employee

stood in loco parentis. The term "children" means the plural of

"child".

The term "physically or mentally incapacitated child or

children" means a child or children incapable of engaging in

regular and substantial gainful employment.

In the event of the remarriage of a widow or widower, where

the decedent did not leave surviving any child or children who,

at the time of such remarriage, are entitled to compensation

benefits under this Act, the surviving spouse shall be paid a

lump sum equal to 2 years compensation benefits and all further

rights of such widow or widower shall be extinguished.

If the employee leaves surviving any child or children

under 18 years of age who at the time of death shall be

entitled to compensation under this paragraph (a) of this

Section, the weekly compensation payments herein provided for

such child or children shall in any event continue for a period

of not less than 6 years.

Any beneficiary entitled to compensation under this

paragraph (a) of this Section shall receive from the special

fund provided in paragraph (f) of this Section, in addition to

the compensation herein provided, supplemental benefits in

accordance with paragraph (g) of Section 8.

(b) If no compensation is payable under paragraph (a) of

this Section and the employee leaves surviving a parent or

parents who at the time of the accident were totally dependent

upon the earnings of the employee then weekly payments equal to

the compensation rate payable in the case where the employee

leaves surviving a widow or widower, shall be paid to such

parent or parents for the duration of their lives, and in the

event of the death of either, for the life of the survivor.

(c) If no compensation is payable under paragraphs (a) or

(b) of this Section and the employee leaves surviving any child

or children who are not entitled to compensation under the

foregoing paragraph (a) but who at the time of the accident

were nevertheless in any manner dependent upon the earnings of

the employee, or leaves surviving a parent or parents who at

the time of the accident were partially dependent upon the

earnings of the employee, then there shall be paid to such

dependent or dependents for a period of 8 years weekly

compensation payments at such proportion of the applicable rate

if the employee had left surviving a widow or widower as such

dependency bears to total dependency. In the event of the death

of any such beneficiary the share of such beneficiary shall be

divided equally among the surviving beneficiaries and in the

event of the death of the last such beneficiary all the rights

under this paragraph shall be extinguished.

(d) If no compensation is payable under paragraphs (a), (b)

or (c) of this Section and the employee leaves surviving any

grandparent, grandparents, grandchild or grandchildren or

collateral heirs dependent upon the employee's earnings to the

extent of 50% or more of total dependency, then there shall be

paid to such dependent or dependents for a period of 5 years

weekly compensation payments at such proportion of the

applicable rate if the employee had left surviving a widow or

widower as such dependency bears to total dependency. In the

event of the death of any such beneficiary the share of such

beneficiary shall be divided equally among the surviving

beneficiaries and in the event of the death of the last such

beneficiary all rights hereunder shall be extinguished.

(e) The compensation to be paid for accidental injury which

results in death, as provided in this Section, shall be paid to

the persons who form the basis for determining the amount of

compensation to be paid by the employer, the respective shares

to be in the proportion of their respective dependency at the

time of the accident on the earnings of the deceased. The

Commission or an Arbitrator thereof may, in its or his

discretion, order or award the payment to the parent or

grandparent of a child for the latter's support the amount of

compensation which but for such order or award would have been

paid to such child as its share of the compensation payable,

which order or award may be modified from time to time by the

Commission in its discretion with respect to the person to whom

shall be paid the amount of the order or award remaining unpaid

at the time of the modification.

The payments of compensation by the employer in accordance

with the order or award of the Commission discharges such

employer from all further obligation as to such compensation.

(f) The sum of $4200 for burial expenses shall be paid by

the employer to the widow or widower, other dependent, next of

kin or to the person or persons incurring the expense of

burial.

In the event the employer failed to provide necessary first

aid, medical, surgical or hospital service, he shall pay the

cost thereof to the person or persons entitled to compensation

under paragraphs (a), (b), (c) or (d) of this Section, or to

the person or persons incurring the obligation therefore, or

providing the same.

On January 15 and July 15, 1981, and on January 15 and July

15 of each year thereafter the employer shall within 60 days

pay a sum equal to 1/8 of 1% of all compensation payments made

by him after July 1, 1980, either under this Act or the

Workers' Occupational Diseases Act, whether by lump sum

settlement or weekly compensation payments, but not including

hospital, surgical or rehabilitation payments, made during the

first 6 months and during the second 6 months respectively of

the fiscal year next preceding the date of the payments, into a

special fund which shall be designated the "Second Injury

Fund", of which the State Treasurer is ex-officio custodian,

such special fund to be held and disbursed for the purposes

hereinafter stated in paragraphs (f) and (g) of Section 8,

either upon the order of the Commission or of a competent

court. Said special fund shall be deposited the same as are

State funds and any interest accruing thereon shall be added

thereto every 6 months. It is subject to audit the same as

State funds and accounts and is protected by the General bond

given by the State Treasurer. It is considered always

appropriated for the purposes of disbursements as provided in

Section 8, paragraph (f), of this Act, and shall be paid out

and disbursed as therein provided and shall not at any time be

appropriated or diverted to any other use or purpose.

On January 15, 1991, the employer shall further pay a sum

equal to one half of 1% of all compensation payments made by

him from January 1, 1990 through June 30, 1990 either under

this Act or under the Workers' Occupational Diseases Act,

whether by lump sum settlement or weekly compensation payments,

but not including hospital, surgical or rehabilitation

payments, into an additional Special Fund which shall be

designated as the "Rate Adjustment Fund". On March 15, 1991,

the employer shall pay into the Rate Adjustment Fund a sum

equal to one half of 1% of all such compensation payments made

from July 1, 1990 through December 31, 1990. Within 60 days

after July 15, 1991, the employer shall pay into the Rate

Adjustment Fund a sum equal to one half of 1% of all such

compensation payments made from January 1, 1991 through June

30, 1991. Within 60 days after January 15 of 1992 and each

subsequent year through 1996, the employer shall pay into the

Rate Adjustment Fund a sum equal to one half of 1% of all such

compensation payments made in the last 6 months of the

preceding calendar year. Within 60 days after July 15 of 1992

and each subsequent year through 1995, the employer shall pay

into the Rate Adjustment Fund a sum equal to one half of 1% of

all such compensation payments made in the first 6 months of

the same calendar year. Within 60 days after January 15 of 1997

and each subsequent year, the employer shall pay into the Rate

Adjustment Fund a sum equal to three-fourths of 1% of all such

compensation payments made in the last 6 months of the

preceding calendar year. Within 60 days after July 15 of 1996

and each subsequent year, the employer shall pay into the Rate

Adjustment Fund a sum equal to three-fourths of 1% of all such

compensation payments made in the first 6 months of the same

calendar year. The administrative costs of collecting

assessments from employers for the Rate Adjustment Fund shall

be paid from the Rate Adjustment Fund. The cost of an actuarial

audit of the Fund shall be paid from the Rate Adjustment Fund

and the audit shall be completed no later than July 1, 1997.

The State Treasurer is ex officio custodian of such Special

Fund and the same shall be held and disbursed for the purposes

hereinafter stated in paragraphs (f) and (g) of Section 8 upon

the order of the Commission or of a competent court. The Rate

Adjustment Fund shall be deposited the same as are State funds

and any interest accruing thereon shall be added thereto every

6 months. It shall be subject to audit the same as State funds

and accounts and shall be protected by the general bond given

by the State Treasurer. It is considered always appropriated

for the purposes of disbursements as provided in paragraphs (f)

and (g) of Section 8 of this Act and shall be paid out and

disbursed as therein provided and shall not at any time be

appropriated or diverted to any other use or purpose. Within 5

days after the effective date of this amendatory Act of 1990,

the Comptroller and the State Treasurer shall transfer

$1,000,000 from the General Revenue Fund to the Rate Adjustment

Fund. By February 15, 1991, the Comptroller and the State

Treasurer shall transfer $1,000,000 from the Rate Adjustment

Fund to the General Revenue Fund. The Comptroller and Treasurer

are authorized to make transfers at the request of the Chairman

up to a total of $15,000,000 from the Second Injury Fund, the

General Revenue Fund, and the Workers' Compensation Benefit

Trust Fund to the Rate Adjustment Fund to the extent that there

is insufficient money in the Rate Adjustment Fund to pay claims

and obligations. Amounts may be transferred from the General

Revenue Fund only if the funds in the Second Injury Fund or the

Workers' Compensation Benefit Trust Fund are insufficient to

pay claims and obligations of the Rate Adjustment Fund. All

amounts transferred from the Second Injury Fund, the General

Revenue Fund, and the Workers' Compensation Benefit Trust Fund

shall be repaid from the Rate Adjustment Fund within 270 days

of a transfer, together with interest at the rate earned by

moneys on deposit in the Fund or Funds from which the moneys

were transferred.

Upon a finding by the Commission, after reasonable notice

and hearing, that any employer has willfully and knowingly

failed to pay the proper amounts into the Second Injury Fund or

the Rate Adjustment Fund required by this Section or if such

payments are not made within the time periods prescribed by

this Section, the employer shall, in addition to such payments,

pay a penalty of 20% of the amount required to be paid or

$2,500, whichever is greater, for each year or part thereof of

such failure to pay. This penalty shall only apply to

obligations of an employer to the Second Injury Fund or the

Rate Adjustment Fund accruing after the effective date of this

amendatory Act of 1989. All or part of such a penalty may be

waived by the Commission for good cause shown.

Any obligations of an employer to the Second Injury Fund

and Rate Adjustment Fund accruing prior to the effective date

of this amendatory Act of 1989 shall be paid in full by such

employer within 5 years of the effective date of this

amendatory Act of 1989, with at least one-fifth of such

obligation to be paid during each year following the effective

date of this amendatory Act of 1989. If the Commission finds,

following reasonable notice and hearing, that an employer has

failed to make timely payment of any obligation accruing under

the preceding sentence, the employer shall, in addition to all

other payments required by this Section, be liable for a

penalty equal to 20% of the overdue obligation or $2,500,

whichever is greater, for each year or part thereof that

obligation is overdue. All or part of such a penalty may be

waived by the Commission for good cause shown.

The Chairman of the Illinois Workers' Compensation

Industrial Commission shall, annually, furnish to the Director

of the Department of Insurance a list of the amounts paid into

the Second Injury Fund and the Rate Adjustment Fund by each

insurance company on behalf of their insured employers. The

Director shall verify to the Chairman that the amounts paid by

each insurance company are accurate as best as the Director can

determine from the records available to the Director. The

Chairman shall verify that the amounts paid by each

self-insurer are accurate as best as the Chairman can determine

from records available to the Chairman. The Chairman may

require each self-insurer to provide information concerning

the total compensation payments made upon which contributions

to the Second Injury Fund and the Rate Adjustment Fund are

predicated and any additional information establishing that

such payments have been made into these funds. Any deficiencies

in payments noted by the Director or Chairman shall be subject

to the penalty provisions of this Act.

The State Treasurer, or his duly authorized

representative, shall be named as a party to all proceedings in

all cases involving claim for the loss of, or the permanent and

complete loss of the use of one eye, one foot, one leg, one arm

or one hand.

The State Treasurer or his duly authorized agent shall have

the same rights as any other party to the proceeding, including

the right to petition for review of any award. The reasonable

expenses of litigation, such as medical examinations,

testimony, and transcript of evidence, incurred by the State

Treasurer or his duly authorized representative, shall be borne

by the Second Injury Fund.

If the award is not paid within 30 days after the date the

award has become final, the Commission shall proceed to take

judgment thereon in its own name as is provided for other

awards by paragraph (g) of Section 19 of this Act and take the

necessary steps to collect the award.

Any person, corporation or organization who has paid or

become liable for the payment of burial expenses of the

deceased employee may in his or its own name institute

proceedings before the Commission for the collection thereof.

For the purpose of administration, receipts and

disbursements, the Special Fund provided for in paragraph (f)

of this Section shall be administered jointly with the Special

Fund provided for in Section 7, paragraph (f) of the Workers'

Occupational Diseases Act.

(g) All compensation, except for burial expenses provided

in this Section to be paid in case accident results in death,

shall be paid in installments equal to the percentage of the

average earnings as provided for in Section 8, paragraph (b) of

this Act, at the same intervals at which the wages or earnings

of the employees were paid. If this is not feasible, then the

installments shall be paid weekly. Such compensation may be

paid in a lump sum upon petition as provided in Section 9 of

this Act. However, in addition to the benefits provided by

Section 9 of this Act where compensation for death is payable

to the deceased's widow, widower or to the deceased's widow,

widower and one or more children, and where a partial lump sum

is applied for by such beneficiary or beneficiaries within 18

months after the deceased's death, the Commission may, in its

discretion, grant a partial lump sum of not to exceed 100 weeks

of the compensation capitalized at their present value upon the

basis of interest calculated at 3% per annum with annual rests,

upon a showing that such partial lump sum is for the best

interest of such beneficiary or beneficiaries.

(h) In case the injured employee is under 16 years of age

at the time of the accident and is illegally employed, the

amount of compensation payable under paragraphs (a), (b), (c),

(d) and (f) of this Section shall be increased 50%.

Nothing herein contained repeals or amends the provisions

of the Child Labor Law relating to the employment of minors

under the age of 16 years.

However, where an employer has on file an employment

certificate issued pursuant to the Child Labor Law or work

permit issued pursuant to the Federal Fair Labor Standards Act,

as amended, or a birth certificate properly and duly issued,

such certificate, permit or birth certificate is conclusive

evidence as to the age of the injured minor employee for the

purposes of this Section only.

(i) Whenever the dependents of a deceased employee are

aliens not residing in the United States, Mexico or Canada, the

amount of compensation payable is limited to the beneficiaries

described in paragraphs (a), (b) and (c) of this Section and is

50% of the compensation provided in paragraphs (a), (b) and (c)

of this Section, except as otherwise provided by treaty.

In a case where any of the persons who would be entitled to

compensation is living at any place outside of the United

States, then payment shall be made to the personal

representative of the deceased employee. The distribution by

such personal representative to the persons entitled shall be

made to such persons and in such manner as the Commission

orders.

(Source: P.A. 92-714, eff. 1-1-03.)

(820 ILCS 305/8) (from Ch. 48, par. 138.8)

Sec. 8. The amount of compensation which shall be paid to

the employee for an accidental injury not resulting in death

is:

(a) The employer shall provide and pay for all the

necessary first aid, medical and surgical services, and all

necessary medical, surgical and hospital services thereafter

incurred, limited, however, to that which is reasonably

required to cure or relieve from the effects of the accidental

injury. The employer shall also pay for treatment, instruction

and training necessary for the physical, mental and vocational

rehabilitation of the employee, including all maintenance

costs and expenses incidental thereto. If as a result of the

injury the employee is unable to be self-sufficient the

employer shall further pay for such maintenance or

institutional care as shall be required.

The employee may at any time elect to secure his own

physician, surgeon and hospital services at the employer's

expense, or,

Upon agreement between the employer and the employees, or

the employees' exclusive representative, and subject to the

approval of the Illinois Workers' Compensation Industrial

Commission, the employer shall maintain a list of physicians,

to be known as a Panel of Physicians, who are accessible to the

employees. The employer shall post this list in a place or

places easily accessible to his employees. The employee shall

have the right to make an alternative choice of physician from

such Panel if he is not satisfied with the physician first

selected. If, due to the nature of the injury or its occurrence

away from the employer's place of business, the employee is

unable to make a selection from the Panel, the selection

process from the Panel shall not apply. The physician selected

from the Panel may arrange for any consultation, referral or

other specialized medical services outside the Panel at the

employer's expense. Provided that, in the event the Commission

shall find that a doctor selected by the employee is rendering

improper or inadequate care, the Commission may order the

employee to select another doctor certified or qualified in the

medical field for which treatment is required. If the employee

refuses to make such change the Commission may relieve the

employer of his obligation to pay the doctor's charges from the

date of refusal to the date of compliance.

Every hospital, physician, surgeon or other person

rendering treatment or services in accordance with the

provisions of this Section shall upon written request furnish

full and complete reports thereof to, and permit their records

to be copied by, the employer, the employee or his dependents,

as the case may be, or any other party to any proceeding for

compensation before the Commission, or their attorneys.

Notwithstanding the foregoing, the employer's liability to

pay for such medical services selected by the employee shall be

limited to:

(1) all first aid and emergency treatment; plus

(2) all medical, surgical and hospital services

provided by the physician, surgeon or hospital initially

chosen by the employee or by any other physician,

consultant, expert, institution or other provider of

services recommended by said initial service provider or

any subsequent provider of medical services in the chain of

referrals from said initial service provider; plus

(3) all medical, surgical and hospital services

provided by any second physician, surgeon or hospital

subsequently chosen by the employee or by any other

physician, consultant, expert, institution or other

provider of services recommended by said second service

provider or any subsequent provider of medical services in

the chain of referrals from said second service provider.

Thereafter the employer shall select and pay for all

necessary medical, surgical and hospital treatment and the

employee may not select a provider of medical services at

the employer's expense unless the employer agrees to such

selection. At any time the employee may obtain any medical

treatment he desires at his own expense. This paragraph

shall not affect the duty to pay for rehabilitation

referred to above.

When an employer and employee so agree in writing, nothing

in this Act prevents an employee whose injury or disability has

been established under this Act, from relying in good faith, on

treatment by prayer or spiritual means alone, in accordance

with the tenets and practice of a recognized church or

religious denomination, by a duly accredited practitioner

thereof, and having nursing services appropriate therewith,

without suffering loss or diminution of the compensation

benefits under this Act. However, the employee shall submit to

all physical examinations required by this Act. The cost of

such treatment and nursing care shall be paid by the employee

unless the employer agrees to make such payment.

Where the accidental injury results in the amputation of an

arm, hand, leg or foot, or the enucleation of an eye, or the

loss of any of the natural teeth, the employer shall furnish an

artificial of any such members lost or damaged in accidental

injury arising out of and in the course of employment, and

shall also furnish the necessary braces in all proper and

necessary cases. In cases of the loss of a member or members by

amputation, the employer shall, whenever necessary, maintain

in good repair, refit or replace the artificial limbs during

the lifetime of the employee. Where the accidental injury

accompanied by physical injury results in damage to a denture,

eye glasses or contact eye lenses, or where the accidental

injury results in damage to an artificial member, the employer

shall replace or repair such denture, glasses, lenses, or

artificial member.

The furnishing by the employer of any such services or

appliances is not an admission of liability on the part of the

employer to pay compensation.

The furnishing of any such services or appliances or the

servicing thereof by the employer is not the payment of

compensation.

(b) If the period of temporary total incapacity for work

lasts more than 3 working days, weekly compensation as

hereinafter provided shall be paid beginning on the 4th day of

such temporary total incapacity and continuing as long as the

total temporary incapacity lasts. In cases where the temporary

total incapacity for work continues for a period of 14 days or

more from the day of the accident compensation shall commence

on the day after the accident.

1. The compensation rate for temporary total

incapacity under this paragraph (b) of this Section shall

be equal to 66 2/3% of the employee's average weekly wage

computed in accordance with Section 10, provided that it

shall be not less than the following amounts in the

following cases:

$100.90 in case of a single person;

$105.50 in case of a married person with no

children;

$108.30 in case of one child;

$113.40 in case of 2 children;

$117.40 in case of 3 children;

$124.30 in case of 4 or more children;

nor exceed the employee's average weekly wage computed in

accordance with the provisions of Section 10, whichever is

less.

2. The compensation rate in all cases other than for

temporary total disability under this paragraph (b), and

other than for serious and permanent disfigurement under

paragraph (c) and other than for permanent partial

disability under subparagraph (2) of paragraph (d) or under

paragraph (e), of this Section shall be equal to 66 2/3% of

the employee's average weekly wage computed in accordance

with the provisions of Section 10, provided that it shall

be not less than the following amounts in the following

cases:

$80.90 in case of a single person;

$83.20 in case of a married person with no

children;

$86.10 in case of one child;

$88.90 in case of 2 children;

$91.80 in case of 3 children;

$96.90 in case of 4 or more children;

nor exceed the employee's average weekly wage computed in

accordance with the provisions of Section 10, whichever is

less.

2.1. The compensation rate in all cases of serious and

permanent disfigurement under paragraph (c) and of

permanent partial disability under subparagraph (2) of

paragraph (d) or under paragraph (e) of this Section shall

be equal to 60% of the employee's average weekly wage

computed in accordance with the provisions of Section 10,

provided that it shall be not less than the following

amounts in the following cases:

$80.90 in case of a single person;

$83.20 in case of a married person with no

children;

$86.10 in case of one child;

$88.90 in case of 2 children;

$91.80 in case of 3 children;

$96.90 in case of 4 or more children;

nor exceed the employee's average weekly wage computed in

accordance with the provisions of Section 10, whichever is

less.

3. As used in this Section the term "child" means a

child of the employee including any child legally adopted

before the accident or whom at the time of the accident the

employee was under legal obligation to support or to whom

the employee stood in loco parentis, and who at the time of

the accident was under 18 years of age and not emancipated.

The term "children" means the plural of "child".

4. All weekly compensation rates provided under

subparagraphs 1, 2 and 2.1 of this paragraph (b) of this

Section shall be subject to the following limitations:

The maximum weekly compensation rate from July 1, 1975,

except as hereinafter provided, shall be 100% of the

State's average weekly wage in covered industries under the

Unemployment Insurance Act, that being the wage that most

closely approximates the State's average weekly wage.

The maximum weekly compensation rate, for the period

July 1, 1984, through June 30, 1987, except as hereinafter

provided, shall be $293.61. Effective July 1, 1987 and on

July 1 of each year thereafter the maximum weekly

compensation rate, except as hereinafter provided, shall

be determined as follows: if during the preceding 12 month

period there shall have been an increase in the State's

average weekly wage in covered industries under the

Unemployment Insurance Act, the weekly compensation rate

shall be proportionately increased by the same percentage

as the percentage of increase in the State's average weekly

wage in covered industries under the Unemployment

Insurance Act during such period.

The maximum weekly compensation rate, for the period

January 1, 1981 through December 31, 1983, except as

hereinafter provided, shall be 100% of the State's average

weekly wage in covered industries under the Unemployment

Insurance Act in effect on January 1, 1981. Effective

January 1, 1984 and on January 1, of each year thereafter

the maximum weekly compensation rate, except as

hereinafter provided, shall be determined as follows: if

during the preceding 12 month period there shall have been

an increase in the State's average weekly wage in covered

industries under the Unemployment Insurance Act, the

weekly compensation rate shall be proportionately

increased by the same percentage as the percentage of

increase in the State's average weekly wage in covered

industries under the Unemployment Insurance Act during

such period.

From July 1, 1977 and thereafter such maximum weekly

compensation rate in death cases under Section 7, and

permanent total disability cases under paragraph (f) or

subparagraph 18 of paragraph (3) of this Section and for

temporary total disability under paragraph (b) of this

Section and for amputation of a member or enucleation of an

eye under paragraph (e) of this Section shall be increased

to 133-1/3% of the State's average weekly wage in covered

industries under the Unemployment Insurance Act.

4.1. Any provision herein to the contrary

notwithstanding, the weekly compensation rate for

compensation payments under subparagraph 18 of paragraph

(e) of this Section and under paragraph (f) of this Section

and under paragraph (a) of Section 7, shall in no event be

less than 50% of the State's average weekly wage in covered

industries under the Unemployment Insurance Act.

4.2. Any provision to the contrary notwithstanding,

the total compensation payable under Section 7 shall not

exceed the greater of $250,000 or 20 years.

5. For the purpose of this Section this State's average

weekly wage in covered industries under the Unemployment

Insurance Act on July 1, 1975 is hereby fixed at $228.16

per week and the computation of compensation rates shall be

based on the aforesaid average weekly wage until modified

as hereinafter provided.

6. The Department of Employment Security of the State

shall on or before the first day of December, 1977, and on

or before the first day of June, 1978, and on the first day

of each December and June of each year thereafter, publish

the State's average weekly wage in covered industries under

the Unemployment Insurance Act and the Illinois Workers'

Compensation Industrial Commission shall on the 15th day of

January, 1978 and on the 15th day of July, 1978 and on the

15th day of each January and July of each year thereafter,

post and publish the State's average weekly wage in covered

industries under the Unemployment Insurance Act as last

determined and published by the Department of Employment

Security. The amount when so posted and published shall be

conclusive and shall be applicable as the basis of

computation of compensation rates until the next posting

and publication as aforesaid.

7. The payment of compensation by an employer or his

insurance carrier to an injured employee shall not

constitute an admission of the employer's liability to pay

compensation.

(c) For any serious and permanent disfigurement to the

hand, head, face, neck, arm, leg below the knee or the chest

above the axillary line, the employee is entitled to

compensation for such disfigurement, the amount determined by

agreement at any time or by arbitration under this Act, at a

hearing not less than 6 months after the date of the accidental

injury, which amount shall not exceed 150 weeks at the

applicable rate provided in subparagraph 2.1 of paragraph (b)

of this Section.

No compensation is payable under this paragraph where

compensation is payable under paragraphs (d), (e) or (f) of

this Section.

A duly appointed member of a fire department in a city, the

population of which exceeds 200,000 according to the last

federal or State census, is eligible for compensation under

this paragraph only where such serious and permanent

disfigurement results from burns.

(d) 1. If, after the accidental injury has been sustained,

the employee as a result thereof becomes partially

incapacitated from pursuing his usual and customary line of

employment, he shall, except in cases compensated under the

specific schedule set forth in paragraph (e) of this Section,

receive compensation for the duration of his disability,

subject to the limitations as to maximum amounts fixed in

paragraph (b) of this Section, equal to 66-2/3% of the

difference between the average amount which he would be able to

earn in the full performance of his duties in the occupation in

which he was engaged at the time of the accident and the

average amount which he is earning or is able to earn in some

suitable employment or business after the accident.

2. If, as a result of the accident, the employee sustains

serious and permanent injuries not covered by paragraphs (c)

and (e) of this Section or having sustained injuries covered by

the aforesaid paragraphs (c) and (e), he shall have sustained

in addition thereto other injuries which injuries do not

incapacitate him from pursuing the duties of his employment but

which would disable him from pursuing other suitable

occupations, or which have otherwise resulted in physical

impairment; or if such injuries partially incapacitate him from

pursuing the duties of his usual and customary line of

employment but do not result in an impairment of earning

capacity, or having resulted in an impairment of earning

capacity, the employee elects to waive his right to recover

under the foregoing subparagraph 1 of paragraph (d) of this

Section then in any of the foregoing events, he shall receive

in addition to compensation for temporary total disability

under paragraph (b) of this Section, compensation at the rate

provided in subparagraph 2.1 of paragraph (b) of this Section

for that percentage of 500 weeks that the partial disability

resulting from the injuries covered by this paragraph bears to

total disability. If the employee shall have sustained a

fracture of one or more vertebra or fracture of the skull, the

amount of compensation allowed under this Section shall be not

less than 6 weeks for a fractured skull and 6 weeks for each

fractured vertebra, and in the event the employee shall have

sustained a fracture of any of the following facial bones:

nasal, lachrymal, vomer, zygoma, maxilla, palatine or

mandible, the amount of compensation allowed under this Section

shall be not less than 2 weeks for each such fractured bone,

and for a fracture of each transverse process not less than 3

weeks. In the event such injuries shall result in the loss of a

kidney, spleen or lung, the amount of compensation allowed

under this Section shall be not less than 10 weeks for each

such organ. Compensation awarded under this subparagraph 2

shall not take into consideration injuries covered under

paragraphs (c) and (e) of this Section and the compensation

provided in this paragraph shall not affect the employee's

right to compensation payable under paragraphs (b), (c) and (e)

of this Section for the disabilities therein covered.

(e) For accidental injuries in the following schedule, the

employee shall receive compensation for the period of temporary

total incapacity for work resulting from such accidental

injury, under subparagraph 1 of paragraph (b) of this Section,

and shall receive in addition thereto compensation for a

further period for the specific loss herein mentioned, but

shall not receive any compensation under any other provisions

of this Act. The following listed amounts apply to either the

loss of or the permanent and complete loss of use of the member

specified, such compensation for the length of time as follows:

1. Thumb-70 weeks.

2. First, or index finger-40 weeks.

3. Second, or middle finger-35 weeks.

4. Third, or ring finger-25 weeks.

5. Fourth, or little finger-20 weeks.

6. Great toe-35 weeks.

7. Each toe other than great toe-12 weeks.

8. The loss of the first or distal phalanx of the thumb

or of any finger or toe shall be considered to be equal to

the loss of one-half of such thumb, finger or toe and the

compensation payable shall be one-half of the amount above

specified. The loss of more than one phalanx shall be

considered as the loss of the entire thumb, finger or toe.

In no case shall the amount received for more than one

finger exceed the amount provided in this schedule for the

loss of a hand.

9. Hand-190 weeks. The loss of 2 or more digits, or one

or more phalanges of 2 or more digits, of a hand may be

compensated on the basis of partial loss of use of a hand,

provided, further, that the loss of 4 digits, or the loss

of use of 4 digits, in the same hand shall constitute the

complete loss of a hand.

10. Arm-235 weeks. Where an accidental injury results

in the amputation of an arm below the elbow, such injury

shall be compensated as a loss of an arm. Where an

accidental injury results in the amputation of an arm above

the elbow, compensation for an additional 15 weeks shall be

paid, except where the accidental injury results in the

amputation of an arm at the shoulder joint, or so close to

shoulder joint that an artificial arm cannot be used, or

results in the disarticulation of an arm at the shoulder

joint, in which case compensation for an additional 65

weeks shall be paid.

11. Foot-155 weeks.

12. Leg-200 weeks. Where an accidental injury results

in the amputation of a leg below the knee, such injury

shall be compensated as loss of a leg. Where an accidental

injury results in the amputation of a leg above the knee,

compensation for an additional 25 weeks shall be paid,

except where the accidental injury results in the

amputation of a leg at the hip joint, or so close to the

hip joint that an artificial leg cannot be used, or results

in the disarticulation of a leg at the hip joint, in which

case compensation for an additional 75 weeks shall be paid.

13. Eye-150 weeks. Where an accidental injury results

in the enucleation of an eye, compensation for an

additional 10 weeks shall be paid.

14. Loss of hearing of one ear-50 weeks; total and

permanent loss of hearing of both ears-200 weeks.

15. Testicle-50 weeks; both testicles-150 weeks.

16. For the permanent partial loss of use of a member

or sight of an eye, or hearing of an ear, compensation

during that proportion of the number of weeks in the

foregoing schedule provided for the loss of such member or

sight of an eye, or hearing of an ear, which the partial

loss of use thereof bears to the total loss of use of such

member, or sight of eye, or hearing of an ear.

(a) Loss of hearing for compensation purposes

shall be confined to the frequencies of 1,000, 2,000

and 3,000 cycles per second. Loss of hearing ability

for frequency tones above 3,000 cycles per second are

not to be considered as constituting disability for

hearing.

(b) The percent of hearing loss, for purposes of

the determination of compensation claims for

occupational deafness, shall be calculated as the

average in decibels for the thresholds of hearing for

the frequencies of 1,000, 2,000 and 3,000 cycles per

second. Pure tone air conduction audiometric

instruments, approved by nationally recognized

authorities in this field, shall be used for measuring

hearing loss. If the losses of hearing average 30

decibels or less in the 3 frequencies, such losses of

hearing shall not then constitute any compensable

hearing disability. If the losses of hearing average 85

decibels or more in the 3 frequencies, then the same

shall constitute and be total or 100% compensable

hearing loss.

(c) In measuring hearing impairment, the lowest

measured losses in each of the 3 frequencies shall be

added together and divided by 3 to determine the

average decibel loss. For every decibel of loss

exceeding 30 decibels an allowance of 1.82% shall be

made up to the maximum of 100% which is reached at 85

decibels.

(d) If a hearing loss is established to have

existed on July 1, 1975 by audiometric testing the

employer shall not be liable for the previous loss so

established nor shall he be liable for any loss for

which compensation has been paid or awarded.

(e) No consideration shall be given to the question

of whether or not the ability of an employee to

understand speech is improved by the use of a hearing

aid.

(f) No claim for loss of hearing due to industrial

noise shall be brought against an employer or allowed

unless the employee has been exposed for a period of

time sufficient to cause permanent impairment to noise

levels in excess of the following:

This subparagraph (f) shall not be applied in cases of

hearing loss resulting from trauma or explosion.

17. In computing the compensation to be paid to any

employee who, before the accident for which he claims

compensation, had before that time sustained an injury

resulting in the loss by amputation or partial loss by

amputation of any member, including hand, arm, thumb or

fingers, leg, foot or any toes, such loss or partial loss

of any such member shall be deducted from any award made

for the subsequent injury. For the permanent loss of use or

the permanent partial loss of use of any such member or the

partial loss of sight of an eye, for which compensation has

been paid, then such loss shall be taken into consideration

and deducted from any award for the subsequent injury.

18. The specific case of loss of both hands, both arms,

or both feet, or both legs, or both eyes, or of any two

thereof, or the permanent and complete loss of the use

thereof, constitutes total and permanent disability, to be

compensated according to the compensation fixed by

paragraph (f) of this Section. These specific cases of

total and permanent disability do not exclude other cases.

Any employee who has previously suffered the loss or

permanent and complete loss of the use of any of such

members, and in a subsequent independent accident loses

another or suffers the permanent and complete loss of the

use of any one of such members the employer for whom the

injured employee is working at the time of the last

independent accident is liable to pay compensation only for

the loss or permanent and complete loss of the use of the

member occasioned by the last independent accident.

19. In a case of specific loss and the subsequent death

of such injured employee from other causes than such injury

leaving a widow, widower, or dependents surviving before

payment or payment in full for such injury, then the amount

due for such injury is payable to the widow or widower and,

if there be no widow or widower, then to such dependents,

in the proportion which such dependency bears to total

dependency.

Beginning July 1, 1980, and every 6 months thereafter, the

Commission shall examine the Second Injury Fund and when, after

deducting all advances or loans made to such Fund, the amount

therein is $500,000 then the amount required to be paid by

employers pursuant to paragraph (f) of Section 7 shall be

reduced by one-half. When the Second Injury Fund reaches the

sum of $600,000 then the payments shall cease entirely.

However, when the Second Injury Fund has been reduced to

$400,000, payment of one-half of the amounts required by

paragraph (f) of Section 7 shall be resumed, in the manner

herein provided, and when the Second Injury Fund has been

reduced to $300,000, payment of the full amounts required by

paragraph (f) of Section 7 shall be resumed, in the manner

herein provided. The Commission shall make the changes in

payment effective by general order, and the changes in payment

become immediately effective for all cases coming before the

Commission thereafter either by settlement agreement or final

order, irrespective of the date of the accidental injury.

On August 1, 1996 and on February 1 and August 1 of each

subsequent year, the Commission shall examine the special fund

designated as the "Rate Adjustment Fund" and when, after

deducting all advances or loans made to said fund, the amount

therein is $4,000,000, the amount required to be paid by

employers pursuant to paragraph (f) of Section 7 shall be

reduced by one-half. When the Rate Adjustment Fund reaches the

sum of $5,000,000 the payment therein shall cease entirely.

However, when said Rate Adjustment Fund has been reduced to

$3,000,000 the amounts required by paragraph (f) of Section 7

shall be resumed in the manner herein provided.

(f) In case of complete disability, which renders the

employee wholly and permanently incapable of work, or in the

specific case of total and permanent disability as provided in

subparagraph 18 of paragraph (e) of this Section, compensation

shall be payable at the rate provided in subparagraph 2 of

paragraph (b) of this Section for life.

An employee entitled to benefits under paragraph (f) of

this Section shall also be entitled to receive from the Rate

Adjustment Fund provided in paragraph (f) of Section 7 of the

supplementary benefits provided in paragraph (g) of this

Section 8.

If any employee who receives an award under this paragraph

afterwards returns to work or is able to do so, and earns or is

able to earn as much as before the accident, payments under

such award shall cease. If such employee returns to work, or is

able to do so, and earns or is able to earn part but not as much

as before the accident, such award shall be modified so as to

conform to an award under paragraph (d) of this Section. If

such award is terminated or reduced under the provisions of

this paragraph, such employees have the right at any time

within 30 months after the date of such termination or

reduction to file petition with the Commission for the purpose

of determining whether any disability exists as a result of the

original accidental injury and the extent thereof.

Disability as enumerated in subdivision 18, paragraph (e)

of this Section is considered complete disability.

If an employee who had previously incurred loss or the

permanent and complete loss of use of one member, through the

loss or the permanent and complete loss of the use of one hand,

one arm, one foot, one leg, or one eye, incurs permanent and

complete disability through the loss or the permanent and

complete loss of the use of another member, he shall receive,

in addition to the compensation payable by the employer and

after such payments have ceased, an amount from the Second

Injury Fund provided for in paragraph (f) of Section 7, which,

together with the compensation payable from the employer in

whose employ he was when the last accidental injury was

incurred, will equal the amount payable for permanent and

complete disability as provided in this paragraph of this

Section.

The custodian of the Second Injury Fund provided for in

paragraph (f) of Section 7 shall be joined with the employer as

a party respondent in the application for adjustment of claim.

The application for adjustment of claim shall state briefly and

in general terms the approximate time and place and manner of

the loss of the first member.

In its award the Commission or the Arbitrator shall

specifically find the amount the injured employee shall be

weekly paid, the number of weeks compensation which shall be

paid by the employer, the date upon which payments begin out of

the Second Injury Fund provided for in paragraph (f) of Section

7 of this Act, the length of time the weekly payments continue,

the date upon which the pension payments commence and the

monthly amount of the payments. The Commission shall 30 days

after the date upon which payments out of the Second Injury

Fund have begun as provided in the award, and every month

thereafter, prepare and submit to the State Comptroller a

voucher for payment for all compensation accrued to that date

at the rate fixed by the Commission. The State Comptroller

shall draw a warrant to the injured employee along with a

receipt to be executed by the injured employee and returned to

the Commission. The endorsed warrant and receipt is a full and

complete acquittance to the Commission for the payment out of

the Second Injury Fund. No other appropriation or warrant is

necessary for payment out of the Second Injury Fund. The Second

Injury Fund is appropriated for the purpose of making payments

according to the terms of the awards.

As of July 1, 1980 to July 1, 1982, all claims against and

obligations of the Second Injury Fund shall become claims

against and obligations of the Rate Adjustment Fund to the

extent there is insufficient money in the Second Injury Fund to

pay such claims and obligations. In that case, all references

to "Second Injury Fund" in this Section shall also include the

Rate Adjustment Fund.

(g) Every award for permanent total disability entered by

the Commission on and after July 1, 1965 under which

compensation payments shall become due and payable after the

effective date of this amendatory Act, and every award for

death benefits or permanent total disability entered by the

Commission on and after the effective date of this amendatory

Act shall be subject to annual adjustments as to the amount of

the compensation rate therein provided. Such adjustments shall

first be made on July 15, 1977, and all awards made and entered

prior to July 1, 1975 and on July 15 of each year thereafter.

In all other cases such adjustment shall be made on July 15 of

the second year next following the date of the entry of the

award and shall further be made on July 15 annually thereafter.

If during the intervening period from the date of the entry of

the award, or the last periodic adjustment, there shall have

been an increase in the State's average weekly wage in covered

industries under the Unemployment Insurance Act, the weekly

compensation rate shall be proportionately increased by the

same percentage as the percentage of increase in the State's

average weekly wage in covered industries under the

Unemployment Insurance Act. The increase in the compensation

rate under this paragraph shall in no event bring the total

compensation rate to an amount greater than the prevailing

maximum rate. Such increase shall be paid in the same manner as

herein provided for payments under the Second Injury Fund to

the injured employee, or his dependents, as the case may be,

out of the Rate Adjustment Fund provided in paragraph (f) of

Section 7 of this Act. Payments shall be made at the same

intervals as provided in the award or, at the option of the

Commission, may be made in quarterly payment on the 15th day of

January, April, July and October of each year. In the event of

a decrease in such average weekly wage there shall be no change

in the then existing compensation rate. The within paragraph

shall not apply to cases where there is disputed liability and

in which a compromise lump sum settlement between the employer

and the injured employee, or his dependents, as the case may

be, has been duly approved by the Illinois Workers'

Compensation Industrial Commission.

Provided, that in cases of awards entered by the Commission

for injuries occurring before July 1, 1975, the increases in

the compensation rate adjusted under the foregoing provision of

this paragraph (g) shall be limited to increases in the State's

average weekly wage in covered industries under the

Unemployment Insurance Act occurring after July 1, 1975.

(h) In case death occurs from any cause before the total

compensation to which the employee would have been entitled has

been paid, then in case the employee leaves any widow, widower,

child, parent (or any grandchild, grandparent or other lineal

heir or any collateral heir dependent at the time of the

accident upon the earnings of the employee to the extent of 50%

or more of total dependency) such compensation shall be paid to

the beneficiaries of the deceased employee and distributed as

provided in paragraph (g) of Section 7.

(h-1) In case an injured employee is under legal disability

at the time when any right or privilege accrues to him or her

under this Act, a guardian may be appointed pursuant to law,

and may, on behalf of such person under legal disability, claim

and exercise any such right or privilege with the same effect

as if the employee himself or herself had claimed or exercised

the right or privilege. No limitations of time provided by this

Act run so long as the employee who is under legal disability

is without a conservator or guardian.

(i) In case the injured employee is under 16 years of age

at the time of the accident and is illegally employed, the

amount of compensation payable under paragraphs (b), (c), (d),

(e) and (f) of this Section is increased 50%.

However, where an employer has on file an employment

certificate issued pursuant to the Child Labor Law or work

permit issued pursuant to the Federal Fair Labor Standards Act,

as amended, or a birth certificate properly and duly issued,

such certificate, permit or birth certificate is conclusive

evidence as to the age of the injured minor employee for the

purposes of this Section.

Nothing herein contained repeals or amends the provisions

of the Child Labor Law relating to the employment of minors

under the age of 16 years.

(j) 1. In the event the injured employee receives benefits,

including medical, surgical or hospital benefits under any

group plan covering non-occupational disabilities contributed

to wholly or partially by the employer, which benefits should

not have been payable if any rights of recovery existed under

this Act, then such amounts so paid to the employee from any

such group plan as shall be consistent with, and limited to,

the provisions of paragraph 2 hereof, shall be credited to or

against any compensation payment for temporary total

incapacity for work or any medical, surgical or hospital

benefits made or to be made under this Act. In such event, the

period of time for giving notice of accidental injury and

filing application for adjustment of claim does not commence to

run until the termination of such payments. This paragraph does

not apply to payments made under any group plan which would

have been payable irrespective of an accidental injury under

this Act. Any employer receiving such credit shall keep such

employee safe and harmless from any and all claims or

liabilities that may be made against him by reason of having

received such payments only to the extent of such credit.

Any excess benefits paid to or on behalf of a State

employee by the State Employees' Retirement System under

Article 14 of the Illinois Pension Code on a death claim or

disputed disability claim shall be credited against any

payments made or to be made by the State of Illinois to or on

behalf of such employee under this Act, except for payments for

medical expenses which have already been incurred at the time

of the award. The State of Illinois shall directly reimburse

the State Employees' Retirement System to the extent of such

credit.

2. Nothing contained in this Act shall be construed to give

the employer or the insurance carrier the right to credit for

any benefits or payments received by the employee other than

compensation payments provided by this Act, and where the

employee receives payments other than compensation payments,

whether as full or partial salary, group insurance benefits,

bonuses, annuities or any other payments, the employer or

insurance carrier shall receive credit for each such payment

only to the extent of the compensation that would have been

payable during the period covered by such payment.

3. The extension of time for the filing of an Application

for Adjustment of Claim as provided in paragraph 1 above shall

not apply to those cases where the time for such filing had

expired prior to the date on which payments or benefits

enumerated herein have been initiated or resumed. Provided

however that this paragraph 3 shall apply only to cases wherein

the payments or benefits hereinabove enumerated shall be

received after July 1, 1969.

(Source: P.A. 89-470, eff. 6-13-96.)

(820 ILCS 305/13) (from Ch. 48, par. 138.13)

Sec. 13. There is created an Illinois Workers' Compensation

Industrial Commission consisting of 7 members to be appointed

by the Governor, by and with the consent of the Senate, 2 of

whom shall be representative citizens of the employing class

operating under this Act and 2 of whom shall be representative

citizens of the class of employees covered under this Act, and

3 of whom shall be representative citizens not identified with

either the employing or employee classes. Not more than 4

members of the Commission shall be of the same political party.

One of the 3 members not identified with either the

employing or employee classes shall be designated by the

Governor as Chairman. The Chairman shall be the chief

administrative and executive officer of the Commission; and he

or she shall have general supervisory authority over all

personnel of the Commission, including arbitrators and

Commissioners, and the final authority in all administrative

matters relating to the Commissioners, including but not

limited to the assignment and distribution of cases and

assignment of Commissioners to the panels, except in the

promulgation of procedural rules and orders under Section 16

and in the determination of cases under this Act.

Notwithstanding the general supervisory authority of the

Chairman, each Commissioner, except those assigned to the

temporary panel, shall have the authority to hire and supervise

2 staff attorneys each. Such staff attorneys shall report

directly to the individual Commissioner.

A formal training program for newly-appointed

Commissioners shall be implemented. The training program shall

include the following:

(a) substantive and procedural aspects of the office of

Commissioner;

(b) current issues in workers' compensation law and

practice;

(c) medical lectures by specialists in areas such as

orthopedics, ophthalmology, psychiatry, rehabilitation

counseling;

(d) orientation to each operational unit of the

Illinois Workers' Compensation Industrial Commission;

(e) observation of experienced arbitrators and

Commissioners conducting hearings of cases, combined with

the opportunity to discuss evidence presented and rulings

made;

(f) the use of hypothetical cases requiring the

newly-appointed Commissioner to issue judgments as a means

to evaluating knowledge and writing ability;

(g) writing skills.

A formal and ongoing professional development program

including, but not limited to, the above-noted areas shall be

implemented to keep Commissioners informed of recent

developments and issues and to assist them in maintaining and

enhancing their professional competence.

The Commissioner candidates, other than the Chairman, must

meet one of the following qualifications: (a) licensed to

practice law in the State of Illinois; or (b) served as an

arbitrator at the Illinois Workers' Compensation Industrial

Commission for at least 3 years; or (c) has at least 4 years of

professional labor relations experience. The Chairman

candidate must have public or private sector management and

budget experience, as determined by the Governor.

Each Commissioner shall devote full time to his duties and

any Commissioner who is an attorney-at-law shall not engage in

the practice of law, nor shall any Commissioner hold any other

office or position of profit under the United States or this

State or any municipal corporation or political subdivision of

this State, nor engage in any other business, employment, or

vocation.

The term of office of each member of the Commission holding

office on the effective date of this amendatory Act of 1989 is

abolished, but the incumbents shall continue to exercise all of

the powers and be subject to all of the duties of Commissioners

until their respective successors are appointed and qualified.

The Illinois Workers' Compensation Industrial Commission

shall administer this Act.

The members shall be appointed by the Governor, with the

advice and consent of the Senate, as follows:

(a) After the effective date of this amendatory Act of

1989, 3 members, at least one of each political party, and

one of whom shall be a representative citizen of the

employing class operating under this Act, one of whom shall

be a representative citizen of the class of employees

covered under this Act, and one of whom shall be a

representative citizen not identified with either the

employing or employee classes, shall be appointed to hold

office until the third Monday in January of 1993, and until

their successors are appointed and qualified, and 4

members, one of whom shall be a representative citizen of

the employing class operating under this Act, one of whom

shall be a representative citizen of the class of employees

covered in this Act, and two of whom shall be

representative citizens not identified with either the

employing or employee classes, one of whom shall be

designated by the Governor as Chairman (at least one of

each of the two major political parties) shall be appointed

to hold office until the third Monday of January in 1991,

and until their successors are appointed and qualified.

(a-5) Notwithstanding any other provision of this

Section, the term of each member of the Commission who was

appointed by the Governor and is in office on June 30, 2003

shall terminate at the close of business on that date or

when all of the successor members to be appointed pursuant

to this amendatory Act of the 93rd General Assembly have

been appointed by the Governor, whichever occurs later. As

soon as possible, the Governor shall appoint persons to

fill the vacancies created by this amendatory Act. Of the

initial commissioners appointed pursuant to this

amendatory Act of the 93rd General Assembly, 3 shall be

appointed for terms ending on the third Monday in January,

2005, and 4 shall be appointed for terms ending on the

third Monday in January, 2007.

(b) Members shall thereafter be appointed to hold

office for terms of 4 years from the third Monday in

January of the year of their appointment, and until their

successors are appointed and qualified. All such

appointments shall be made so that the composition of the

Commission is in accordance with the provisions of the

first paragraph of this Section.

The Chairman shall receive an annual salary of $42,500, or

a salary set by the Compensation Review Board, whichever is

greater, and each other member shall receive an annual salary

of $38,000, or a salary set by the Compensation Review Board,

whichever is greater.

In case of a vacancy in the office of a Commissioner during

the recess of the Senate, the Governor shall make a temporary

appointment until the next meeting of the Senate, when he shall

nominate some person to fill such office. Any person so

nominated who is confirmed by the Senate shall hold office

during the remainder of the term and until his successor is

appointed and qualified.

The Illinois Workers' Compensation Industrial Commission

created by this amendatory Act of 1989 shall succeed to all the

rights, powers, duties, obligations, records and other

property and employees of the Industrial Commission which it

replaces as modified by this amendatory Act of 1989 and all

applications and reports to actions and proceedings of such

prior Industrial Commission shall be considered as

applications and reports to actions and proceedings of the

Illinois Workers' Compensation Industrial Commission created

by this amendatory Act of 1989.

Notwithstanding any other provision of this Act, in the

event the Chairman shall make a finding that a member is or

will be unavailable to fulfill the responsibilities of his or

her office, the Chairman shall advise the Governor and the

member in writing and shall designate a certified arbitrator to

serve as acting Commissioner. The certified arbitrator shall

act as a Commissioner until the member resumes the duties of

his or her office or until a new member is appointed by the

Governor, by and with the consent of the Senate, if a vacancy

occurs in the office of the Commissioner, but in no event shall

a certified arbitrator serve in the capacity of Commissioner

for more than 6 months from the date of appointment by the

Chairman. A finding by the Chairman that a member is or will be

unavailable to fulfill the responsibilities of his or her

office shall be based upon notice to the Chairman by a member

that he or she will be unavailable or facts and circumstances

made known to the Chairman which lead him to reasonably find

that a member is unavailable to fulfill the responsibilities of

his or her office. The designation of a certified arbitrator to

act as a Commissioner shall be considered representative of

citizens not identified with either the employing or employee

classes and the arbitrator shall serve regardless of his or her

political affiliation. A certified arbitrator who serves as an

acting Commissioner shall have all the rights and powers of a

Commissioner, including salary.

Notwithstanding any other provision of this Act, the

Governor shall appoint a special panel of Commissioners

comprised of 3 members who shall be chosen by the Governor, by

and with the consent of the Senate, from among the current

ranks of certified arbitrators. Three members shall hold office

until the Commission in consultation with the Governor

determines that the caseload on review has been reduced

sufficiently to allow cases to proceed in a timely manner or

for a term of 18 months from the effective date of their

appointment by the Governor, whichever shall be earlier. The 3

members shall be considered representative of citizens not

identified with either the employing or employee classes and

shall serve regardless of political affiliation. Each of the 3

members shall have only such rights and powers of a

Commissioner necessary to dispose of those cases assigned to

the special panel. Each of the 3 members appointed to the

special panel shall receive the same salary as other

Commissioners for the duration of the panel.

The Commission may have an Executive Director; if so, the

Executive Director shall be appointed by the Governor with the

advice and consent of the Senate. The salary and duties of the

Executive Director shall be fixed by the Commission.

On the effective date of this amendatory Act of the 93rd

General Assembly, the name of the Industrial Commission is

changed to the Illinois Workers' Compensation Commission.

References in any law, appropriation, rule, form, or other

document: (i) to the Industrial Commission are deemed, in

appropriate contexts, to be references to the Illinois Workers'

Compensation Commission for all purposes; (ii) to the

Industrial Commission Operations Fund are deemed, in

appropriate contexts, to be references to the Illinois Workers'

Compensation Commission Operations Fund for all purposes;

(iii) to the Industrial Commission Operations Fund Fee are

deemed, in appropriate contexts, to be references to the

Illinois Workers' Compensation Commission Operations Fund Fee

for all purposes; and (iv) to the Industrial Commission

Operations Fund Surcharge are deemed, in appropriate contexts,

to be references to the Illinois Workers' Compensation

Commission Operations Fund Surcharge for all purposes.

(Source: P.A. 93-509, eff. 8-11-03.)

(820 ILCS 305/14) (from Ch. 48, par. 138.14)

Sec. 14. The Commission shall appoint a secretary, an

assistant secretary, and arbitrators and shall employ such

assistants and clerical help as may be necessary.

Each arbitrator appointed after November 22, 1977 shall be

required to demonstrate in writing and in accordance with the

rules and regulations of the Illinois Department of Central

Management Services his or her knowledge of and expertise in

the law of and judicial processes of the Workers' Compensation

Act and the Occupational Diseases Act.

A formal training program for newly-hired arbitrators

shall be implemented. The training program shall include the

following:

(a) substantive and procedural aspects of the arbitrator

position;

(b) current issues in workers' compensation law and

practice;

(c) medical lectures by specialists in areas such as

orthopedics, ophthalmology, psychiatry, rehabilitation

counseling;

(d) orientation to each operational unit of the Illinois

Workers' Compensation Industrial Commission;

(e) observation of experienced arbitrators conducting

hearings of cases, combined with the opportunity to discuss

evidence presented and rulings made;

(f) the use of hypothetical cases requiring the trainee to

issue judgments as a means to evaluating knowledge and writing

ability;

(g) writing skills.

A formal and ongoing professional development program

including, but not limited to, the above-noted areas shall be

implemented to keep arbitrators informed of recent

developments and issues and to assist them in maintaining and

enhancing their professional competence.

Each arbitrator shall devote full time to his or her duties

and shall serve when assigned as an acting Commissioner when a

Commissioner is unavailable in accordance with the provisions

of Section 13 of this Act. Any arbitrator who is an

attorney-at-law shall not engage in the practice of law, nor

shall any arbitrator hold any other office or position of

profit under the United States or this State or any municipal

corporation or political subdivision of this State.

Notwithstanding any other provision of this Act to the

contrary, an arbitrator who serves as an acting Commissioner in

accordance with the provisions of Section 13 of this Act shall

continue to serve in the capacity of Commissioner until a

decision is reached in every case heard by that arbitrator

while serving as an acting Commissioner.

Each arbitrator appointed after the effective date of this

amendatory Act of 1989 shall be appointed for a term of 6

years. Each arbitrator shall be appointed for a subsequent term

unless the Chairman makes a recommendation to the Commission,

no later than 60 days prior to the expiration of the term, not

to reappoint the arbitrator. Notice of such a recommendation

shall also be given to the arbitrator no later than 60 days

prior to the expiration of the term. Upon such recommendation

by the Chairman, the arbitrator shall be appointed for a

subsequent term unless 5 of 7 members of the Commission,

including the Chairman, vote not to reappoint the arbitrator.

All arbitrators shall be subject to the provisions of the

Personnel Code, and the performance of all arbitrators shall be

reviewed by the Chairman on an annual basis. The Chairman shall

allow input from the Commissioners in all such reviews.

The Secretary and each arbitrator shall receive a per annum

salary of $4,000 less than the per annum salary of members of

The Illinois Workers' Compensation Industrial Commission as

provided in Section 13 of this Act, payable in equal monthly

installments.

The members of the Commission, Arbitrators and other

employees whose duties require them to travel, shall have

reimbursed to them their actual traveling expenses and

disbursements made or incurred by them in the discharge of

their official duties while away from their place of residence

in the performance of their duties.

The Commission shall provide itself with a seal for the

authentication of its orders, awards and proceedings upon which

shall be inscribed the name of the Commission and the words

"Illinois--Seal".

The Secretary or Assistant Secretary, under the direction

of the Commission, shall have charge and custody of the seal of

the Commission and also have charge and custody of all records,

files, orders, proceedings, decisions, awards and other

documents on file with the Commission. He shall furnish

certified copies, under the seal of the Commission, of any such

records, files, orders, proceedings, decisions, awards and

other documents on file with the Commission as may be required.

Certified copies so furnished by the Secretary or Assistant

Secretary shall be received in evidence before the Commission

or any Arbitrator thereof, and in all courts, provided that the

original of such certified copy is otherwise competent and

admissible in evidence. The Secretary or Assistant Secretary

shall perform such other duties as may be prescribed from time

to time by the Commission.

(Source: P.A. 86-998.)

(820 ILCS 305/14.1) (from Ch. 48, par. 138.14-1)

Sec. 14.1. There is created a Commission Review Board

consisting of the Chairman of the Illinois Workers'

Compensation Industrial Commission, the Commissioner with the

most seniority who is a representative citizen of the class of

employees covered under this Act, the Commissioner with the

most seniority who is a representative citizen of the employing

class operating under this Act, two Arbitrators, one assigned

to hear cases filed in counties with a population of 3,000,000

or more and one assigned to hear cases in any other county,

both selected by a vote of a majority of the appointed

Arbitrators pursuant to an election conducted by the Chairman,

and 2 members designated by the Governor who are not

commissioners, Arbitrators or employees of the Illinois

Workers' Compensation Industrial Commission. Members of the

Board shall serve without compensation, but shall be reimbursed

for actual expenses incurred. All appointments for the initial

terms shall be made and elections concluded by October 1, 1984,

with each initial term commencing on October 1, 1984 and

extending through February 28, 1987, until the office holder's

successor is appointed or elected and qualified. Thereafter

each term shall commence on March 1 of each odd-numbered year

and extend through March 1 of the next succeeding odd-numbered

year, until the office holder's successor is appointed or

elected and qualified. The Governor shall certify his

appointments, and the Chairman shall certify the results of the

elections by the Arbitrators, to the Secretary of the Illinois

Workers' Compensation Industrial Commission. A vacancy in the

office of a member of the Commission Review Board shall be

filled for the remainder of the vacating member's term in the

same manner as that in which the member was appointed or

elected.

The Chairman of the Illinois Workers' Compensation

Industrial Commission shall serve as the Chairman of the

Commission Review Board. It shall be the duty of the Chairman

to compile, audit, and retain complaints registered against

Commissioners and Arbitrators. The Chairman shall immediately

advise a Commissioner or Arbitrator in writing of the nature of

any and all complaints filed against him, preserving the

identity of the complainant.

At a proceeding before the Commission Review Board, it

shall then become the duty of any complainant to testify

regarding his or her previously filed complaint, or said

complaint shall be considered null and void.

The Commission Review Board shall advise any Commissioner

or Arbitrator in writing of necessary remedial action to

correct any deficiency and shall afford said individual the

opportunity to report or respond to a complaint within a

prescribed period of time.

In matters of serious concern to the State, the Commission

Review Board may recommend that the Governor: 1) dismiss any

Arbitrator who is found unfit to serve; or 2) not reappoint a

Commissioner who it finds unfit to serve. This action shall

require a record vote of at least 5 members of the Board. The

Governor, in his discretion, may act on the recommendation of

the Commission Review Board.

(Source: P.A. 83-1125.)

(820 ILCS 305/16a) (from Ch. 48, par. 138.16a)

Sec. 16a. (A) In the establishment or approval of

attorney's fees in relation to claims brought under this Act,

the Commission shall be guided by the provisions of this

Section and by the legislative intent, hereby declared, to

encourage settlement and prompt administrative handling of

such claims and thereby reduce expenses to claimants for

compensation under this Act.

(B) With respect to any and all proceedings in connection

with any initial or original claim under this Act, no claim of

any attorney for services rendered in connection with the

securing of compensation for an employee or his dependents,

whether secured by agreement, order, award or a judgment in any

court shall exceed 20% of the amount of compensation recovered

and paid, unless further fees shall be allowed to the attorney

upon a hearing by the Commission fixing fees, and subject to

the other provisions of this Section. However, except as

hereinafter provided in this Section, in death cases, total

disability cases and partial disability cases, the amount of an

attorney's fees shall not exceed 20% of the sum which would be

due under this Act for 364 weeks of permanent total disability

based upon the employee's average gross weekly wage prior to

the date of the accident and subject to the maximum weekly

benefits provided in this Act unless further fees shall be

allowed to the attorney upon a hearing by the Commission fixing

fees.

(C) All attorneys' fees in connection with the initial or

original claim for compensation shall be fixed pursuant to a

written contract on forms prescribed by the Commission between

the attorney and the employee or his dependents, and every

attorney, whether the disposition of the original claim is by

agreement, settlement, award, judgment or otherwise, shall

file his contract with the Chairman of the Commission who shall

approve the contract only if it is in accordance with all

provisions of this Section.

(D) No attorneys' fees shall be charged with respect to

compensation for undisputed medical expenses.

(E) No attorneys' fees shall be charged in connection with

any temporary total disability compensation unless the payment

of such compensation in a timely manner or in the proper amount

is refused, or unless such compensation is terminated by the

employer and the payment of such compensation is obtained or

reinstated by the efforts of the attorney, whether by

agreement, settlement, award or judgment.

(F) In the following cases in which there is no dispute

between the parties as to the liability of the respondent to

pay compensation in a timely manner or in the proper amount and

there is no dispute that the accident has resulted in:

(1) the death of the employee; or

(2) a statutory permanent disability; or

(3) the amputation of a finger, toe, or member; or

(4) the removal of a testicle; or

(5) the enucleation of or 100% loss of vision of an eye;

the legal fees, if any, for services rendered are to be fixed

by the Illinois Workers' Compensation Industrial Commission at

a nominal amount, not exceeding $100.

(G) In the following cases in which there is no dispute

between the parties as to the liability of the respondent to

pay compensation and there is no dispute that the accident has

resulted in:

(1) a fracture of one or more vertebrae; or

(2) a skull fracture; or

(3) a fracture of one or more spinous or transverse

processes; or

(4) a fracture of one or more facial bones; or

(5) the removal of a kidney, spleen or lung;

the legal fees, if any, for services rendered are to be fixed

by the Illinois Workers' Compensation Industrial Commission at

a nominal amount, not exceeding $100, provided that the

employee is awarded the minimum amount for the above injuries

as specified in Section 8(d)2.

(H) With regard to any claim where the amount to be paid

for compensation does not exceed the written offer made to the

claimant or claimants by the employer or his agent prior to

representation by an attorney, no fees shall be paid to any

such attorney.

(I) All attorneys' fees for representation of an employee

or his dependents shall be only recoverable from compensation

actually paid to such employee or dependents.

(J) Any and all disputes regarding attorneys' fees, whether

such disputes relate to which one or more attorneys represents

the claimant or claimants or is entitled to the attorneys'

fees, or a division of attorneys' fees where the claimant or

claimants are or have been represented by more than one

attorney, or any other disputes concerning attorneys' fees or

contracts for attorneys' fees, shall be heard and determined by

the Commission after reasonable notice to all interested

parties and attorneys.

(K) After reasonable notice and hearing before the

Commission, any attorney found to be in violation of any

provision of this Section shall be required to make restitution

of any excess fees charged plus interest at a reasonable rate

as determined by the Commission.

(Source: P.A. 84-1438.)

(820 ILCS 305/17) (from Ch. 48, par. 138.17)

Sec. 17. The Commission shall cause to be printed and

furnish free of charge upon request by any employer or employee

such blank forms as may facilitate or promote efficient

administration and the performance of the duties of the

Commission. It shall provide a proper record in which shall be

entered and indexed the name of any employer who shall file a

notice of declination or withdrawal under this Act, and the

date of the filing thereof; and a proper record in which shall

be entered and indexed the name of any employee who shall file

such notice of declination or withdrawal, and the date of the

filing thereof; and such other notices as may be required by

this Act; and records in which shall be recorded all

proceedings, orders and awards had or made by the Commission or

by the arbitration committees, and such other books or records

as it shall deem necessary, all such records to be kept in the

office of the Commission.

The Commission may destroy all papers and documents which

have been on file for more than 5 years where there is no claim

for compensation pending or where more than 2 years have

elapsed since the termination of the compensation period.

The Commission shall compile and distribute to interested

persons aggregate statistics, taken from any records and

reports in the possession of the Commission. The aggregate

statistics shall not give the names or otherwise identify

persons sustaining injuries or disabilities or the employer of

any injured or disabled person.

The Commission is authorized to establish reasonable fees

and methods of payment limited to covering only the costs to

the Commission for processing, maintaining and generating

records or data necessary for the computerized production of

documents, records and other materials except to the extent of

any salaries or compensation of Commission officers or

employees.

All fees collected by the Commission under this Section

shall be deposited in the Statistical Services Revolving Fund

and credited to the account of the Illinois Workers'

Compensation Industrial Commission.

(Source: P.A. 83-489.)

(820 ILCS 305/19) (from Ch. 48, par. 138.19)

Sec. 19. Any disputed questions of law or fact shall be

determined as herein provided.

(a) It shall be the duty of the Commission upon

notification that the parties have failed to reach an

agreement, to designate an Arbitrator.

1. Whenever any claimant misconceives his remedy and

files an application for adjustment of claim under this Act

and it is subsequently discovered, at any time before final

disposition of such cause, that the claim for disability or

death which was the basis for such application should

properly have been made under the Workers' Occupational

Diseases Act, then the provisions of Section 19, paragraph

(a-1) of the Workers' Occupational Diseases Act having

reference to such application shall apply.

2. Whenever any claimant misconceives his remedy and

files an application for adjustment of claim under the

Workers' Occupational Diseases Act and it is subsequently

discovered, at any time before final disposition of such

cause that the claim for injury or death which was the

basis for such application should properly have been made

under this Act, then the application so filed under the

Workers' Occupational Diseases Act may be amended in form,

substance or both to assert claim for such disability or

death under this Act and it shall be deemed to have been so

filed as amended on the date of the original filing

thereof, and such compensation may be awarded as is

warranted by the whole evidence pursuant to this Act. When

such amendment is submitted, further or additional

evidence may be heard by the Arbitrator or Commission when

deemed necessary. Nothing in this Section contained shall

be construed to be or permit a waiver of any provisions of

this Act with reference to notice but notice if given shall

be deemed to be a notice under the provisions of this Act

if given within the time required herein.

(b) The Arbitrator shall make such inquiries and

investigations as he or they shall deem necessary and may

examine and inspect all books, papers, records, places, or

premises relating to the questions in dispute and hear such

proper evidence as the parties may submit.

The hearings before the Arbitrator shall be held in the

vicinity where the injury occurred after 10 days' notice of the

time and place of such hearing shall have been given to each of

the parties or their attorneys of record.

The Arbitrator may find that the disabling condition is

temporary and has not yet reached a permanent condition and may

order the payment of compensation up to the date of the

hearing, which award shall be reviewable and enforceable in the

same manner as other awards, and in no instance be a bar to a

further hearing and determination of a further amount of

temporary total compensation or of compensation for permanent

disability, but shall be conclusive as to all other questions

except the nature and extent of said disability.

The decision of the Arbitrator shall be filed with the

Commission which Commission shall immediately send to each

party or his attorney a copy of such decision, together with a

notification of the time when it was filed. Beginning January

1, 1981, all decisions of the Arbitrator shall set forth in

writing findings of fact and conclusions of law, separately

stated. Unless a petition for review is filed by either party

within 30 days after the receipt by such party of the copy of

the decision and notification of time when filed, and unless

such party petitioning for a review shall within 35 days after

the receipt by him of the copy of the decision, file with the

Commission either an agreed statement of the facts appearing

upon the hearing before the Arbitrator, or if such party shall

so elect a correct transcript of evidence of the proceedings at

such hearings, then the decision shall become the decision of

the Commission and in the absence of fraud shall be conclusive.

The Petition for Review shall contain a statement of the

petitioning party's specific exceptions to the decision of the

arbitrator. The jurisdiction of the Commission to review the

decision of the arbitrator shall not be limited to the

exceptions stated in the Petition for Review. The Commission,

or any member thereof, may grant further time not exceeding 30

days, in which to file such agreed statement or transcript of

evidence. Such agreed statement of facts or correct transcript

of evidence, as the case may be, shall be authenticated by the

signatures of the parties or their attorneys, and in the event

they do not agree as to the correctness of the transcript of

evidence it shall be authenticated by the signature of the

Arbitrator designated by the Commission.

(b-1) If the employee is not receiving medical, surgical or

hospital services as provided in paragraph (a) of Section 8 or

compensation as provided in paragraph (b) of Section 8, the

employee, in accordance with Commission Rules, may file a

petition for an emergency hearing by an Arbitrator on the issue

of whether or not he is entitled to receive payment of such

compensation or services as provided therein. Such petition

shall have priority over all other petitions and shall be heard

by the Arbitrator and Commission with all convenient speed.

Such petition shall contain the following information and

shall be served on the employer at least 15 days before it is

filed:

(i) the date and approximate time of accident;

(ii) the approximate location of the accident;

(iii) a description of the accident;

(iv) the nature of the injury incurred by the employee;

(v) the identity of the person, if known, to whom the

accident was reported and the date on which it was

reported;

(vi) the name and title of the person, if known,

representing the employer with whom the employee conferred

in any effort to obtain compensation pursuant to paragraph

(b) of Section 8 of this Act or medical, surgical or

hospital services pursuant to paragraph (a) of Section 8 of

this Act and the date of such conference;

(vii) a statement that the employer has refused to pay

compensation pursuant to paragraph (b) of Section 8 of this

Act or for medical, surgical or hospital services pursuant

to paragraph (a) of Section 8 of this Act;

(viii) the name and address, if known, of each witness

to the accident and of each other person upon whom the

employee will rely to support his allegations;

(ix) the dates of treatment related to the accident by

medical practitioners, and the names and addresses of such

practitioners, including the dates of treatment related to

the accident at any hospitals and the names and addresses

of such hospitals, and a signed authorization permitting

the employer to examine all medical records of all

practitioners and hospitals named pursuant to this

paragraph;

(x) a copy of a signed report by a medical

practitioner, relating to the employee's current inability

to return to work because of the injuries incurred as a

result of the accident or such other documents or

affidavits which show that the employee is entitled to

receive compensation pursuant to paragraph (b) of Section 8

of this Act or medical, surgical or hospital services

pursuant to paragraph (a) of Section 8 of this Act. Such

reports, documents or affidavits shall state, if possible,

the history of the accident given by the employee, and

describe the injury and medical diagnosis, the medical

services for such injury which the employee has received

and is receiving, the physical activities which the

employee cannot currently perform as a result of any

impairment or disability due to such injury, and the

prognosis for recovery;

(xi) complete copies of any reports, records,

documents and affidavits in the possession of the employee

on which the employee will rely to support his allegations,

provided that the employer shall pay the reasonable cost of

reproduction thereof;

(xii) a list of any reports, records, documents and

affidavits which the employee has demanded by subpoena and

on which he intends to rely to support his allegations;

(xiii) a certification signed by the employee or his

representative that the employer has received the petition

with the required information 15 days before filing.

Fifteen days after receipt by the employer of the petition

with the required information the employee may file said

petition and required information and shall serve notice of the

filing upon the employer. The employer may file a motion

addressed to the sufficiency of the petition. If an objection

has been filed to the sufficiency of the petition, the

arbitrator shall rule on the objection within 2 working days.

If such an objection is filed, the time for filing the final

decision of the Commission as provided in this paragraph shall

be tolled until the arbitrator has determined that the petition

is sufficient.

The employer shall, within 15 days after receipt of the

notice that such petition is filed, file with the Commission

and serve on the employee or his representative a written

response to each claim set forth in the petition, including the

legal and factual basis for each disputed allegation and the

following information: (i) complete copies of any reports,

records, documents and affidavits in the possession of the

employer on which the employer intends to rely in support of

his response, (ii) a list of any reports, records, documents

and affidavits which the employer has demanded by subpoena and

on which the employer intends to rely in support of his

response, (iii) the name and address of each witness on whom

the employer will rely to support his response, and (iv) the

names and addresses of any medical practitioners selected by

the employer pursuant to Section 12 of this Act and the time

and place of any examination scheduled to be made pursuant to

such Section.

Any employer who does not timely file and serve a written

response without good cause may not introduce any evidence to

dispute any claim of the employee but may cross examine the

employee or any witness brought by the employee and otherwise

be heard.

No document or other evidence not previously identified by

either party with the petition or written response, or by any

other means before the hearing, may be introduced into evidence

without good cause. If, at the hearing, material information is

discovered which was not previously disclosed, the Arbitrator

may extend the time for closing proof on the motion of a party

for a reasonable period of time which may be more than 30 days.

No evidence may be introduced pursuant to this paragraph as to

permanent disability. No award may be entered for permanent

disability pursuant to this paragraph. Either party may

introduce into evidence the testimony taken by deposition of

any medical practitioner.

The Commission shall adopt rules, regulations and

procedures whereby the final decision of the Commission is

filed not later than 90 days from the date the petition for

review is filed but in no event later than 180 days from the

date the petition for an emergency hearing is filed with the

Illinois Workers' Compensation Industrial Commission.

All service required pursuant to this paragraph (b-1) must

be by personal service or by certified mail and with evidence

of receipt. In addition for the purposes of this paragraph, all

service on the employer must be at the premises where the

accident occurred if the premises are owned or operated by the

employer. Otherwise service must be at the employee's principal

place of employment by the employer. If service on the employer

is not possible at either of the above, then service shall be

at the employer's principal place of business. After initial

service in each case, service shall be made on the employer's

attorney or designated representative.

(c) (1) At a reasonable time in advance of and in

connection with the hearing under Section 19(e) or 19(h), the

Commission may on its own motion order an impartial physical or

mental examination of a petitioner whose mental or physical

condition is in issue, when in the Commission's discretion it

appears that such an examination will materially aid in the

just determination of the case. The examination shall be made

by a member or members of a panel of physicians chosen for

their special qualifications by the Illinois State Medical

Society. The Commission shall establish procedures by which a

physician shall be selected from such list.

(2) Should the Commission at any time during the hearing

find that compelling considerations make it advisable to have

an examination and report at that time, the commission may in

its discretion so order.

(3) A copy of the report of examination shall be given to

the Commission and to the attorneys for the parties.

(4) Either party or the Commission may call the examining

physician or physicians to testify. Any physician so called

shall be subject to cross-examination.

(5) The examination shall be made, and the physician or

physicians, if called, shall testify, without cost to the

parties. The Commission shall determine the compensation and

the pay of the physician or physicians. The compensation for

this service shall not exceed the usual and customary amount

for such service.

(6) The fees and payment thereof of all attorneys and

physicians for services authorized by the Commission under this

Act shall, upon request of either the employer or the employee

or the beneficiary affected, be subject to the review and

decision of the Commission.

(d) If any employee shall persist in insanitary or

injurious practices which tend to either imperil or retard his

recovery or shall refuse to submit to such medical, surgical,

or hospital treatment as is reasonably essential to promote his

recovery, the Commission may, in its discretion, reduce or

suspend the compensation of any such injured employee. However,

when an employer and employee so agree in writing, the

foregoing provision shall not be construed to authorize the

reduction or suspension of compensation of an employee who is

relying in good faith, on treatment by prayer or spiritual

means alone, in accordance with the tenets and practice of a

recognized church or religious denomination, by a duly

accredited practitioner thereof.

(e) This paragraph shall apply to all hearings before the

Commission. Such hearings may be held in its office or

elsewhere as the Commission may deem advisable. The taking of

testimony on such hearings may be had before any member of the

Commission. If a petition for review and agreed statement of

facts or transcript of evidence is filed, as provided herein,

the Commission shall promptly review the decision of the

Arbitrator and all questions of law or fact which appear from

the statement of facts or transcript of evidence.

In all cases in which the hearing before the arbitrator is

held after December 18, 1989, no additional evidence shall be

introduced by the parties before the Commission on review of

the decision of the Arbitrator. In reviewing decisions of an

arbitrator the Commission shall award such temporary

compensation, permanent compensation and other payments as are

due under this Act. The Commission shall file in its office its

decision thereon, and shall immediately send to each party or

his attorney a copy of such decision and a notification of the

time when it was filed. Decisions shall be filed within 60 days

after the Statement of Exceptions and Supporting Brief and

Response thereto are required to be filed or oral argument

whichever is later.

In the event either party requests oral argument, such

argument shall be had before a panel of 3 members of the

Commission (or before all available members pursuant to the

determination of 5 members of the Commission that such argument

be held before all available members of the Commission)

pursuant to the rules and regulations of the Commission. A

panel of 3 members, which shall be comprised of not more than

one representative citizen of the employing class and not more

than one representative citizen of the employee class, shall

hear the argument; provided that if all the issues in dispute

are solely the nature and extent of the permanent partial

disability, if any, a majority of the panel may deny the

request for such argument and such argument shall not be held;

and provided further that 5 members of the Commission may

determine that the argument be held before all available

members of the Commission. A decision of the Commission shall

be approved by a majority of Commissioners present at such

hearing if any; provided, if no such hearing is held, a

decision of the Commission shall be approved by a majority of a

panel of 3 members of the Commission as described in this

Section. The Commission shall give 10 days' notice to the

parties or their attorneys of the time and place of such taking

of testimony and of such argument.

In any case the Commission in its decision may find

specially upon any question or questions of law or fact which

shall be submitted in writing by either party whether ultimate

or otherwise; provided that on issues other than nature and

extent of the disability, if any, the Commission in its

decision shall find specially upon any question or questions of

law or fact, whether ultimate or otherwise, which are submitted

in writing by either party; provided further that not more than

5 such questions may be submitted by either party. Any party

may, within 20 days after receipt of notice of the Commission's

decision, or within such further time, not exceeding 30 days,

as the Commission may grant, file with the Commission either an

agreed statement of the facts appearing upon the hearing, or,

if such party shall so elect, a correct transcript of evidence

of the additional proceedings presented before the Commission,

in which report the party may embody a correct statement of

such other proceedings in the case as such party may desire to

have reviewed, such statement of facts or transcript of

evidence to be authenticated by the signature of the parties or

their attorneys, and in the event that they do not agree, then

the authentication of such transcript of evidence shall be by

the signature of any member of the Commission.

If a reporter does not for any reason furnish a transcript

of the proceedings before the Arbitrator in any case for use on

a hearing for review before the Commission, within the

limitations of time as fixed in this Section, the Commission

may, in its discretion, order a trial de novo before the

Commission in such case upon application of either party. The

applications for adjustment of claim and other documents in the

nature of pleadings filed by either party, together with the

decisions of the Arbitrator and of the Commission and the

statement of facts or transcript of evidence hereinbefore

provided for in paragraphs (b) and (c) shall be the record of

the proceedings of the Commission, and shall be subject to

review as hereinafter provided.

At the request of either party or on its own motion, the

Commission shall set forth in writing the reasons for the

decision, including findings of fact and conclusions of law

separately stated. The Commission shall by rule adopt a format

for written decisions for the Commission and arbitrators. The

written decisions shall be concise and shall succinctly state

the facts and reasons for the decision. The Commission may

adopt in whole or in part, the decision of the arbitrator as

the decision of the Commission. When the Commission does so

adopt the decision of the arbitrator, it shall do so by order.

Whenever the Commission adopts part of the arbitrator's

decision, but not all, it shall include in the order the

reasons for not adopting all of the arbitrator's decision. When

a majority of a panel, after deliberation, has arrived at its

decision, the decision shall be filed as provided in this

Section without unnecessary delay, and without regard to the

fact that a member of the panel has expressed an intention to

dissent. Any member of the panel may file a dissent. Any

dissent shall be filed no later than 10 days after the decision

of the majority has been filed.

Decisions rendered by the Commission and dissents, if any,

shall be published together by the Commission. The conclusions

of law set out in such decisions shall be regarded as

precedents by arbitrators for the purpose of achieving a more

uniform administration of this Act.

(f) The decision of the Commission acting within its

powers, according to the provisions of paragraph (e) of this

Section shall, in the absence of fraud, be conclusive unless

reviewed as in this paragraph hereinafter provided. However,

the Arbitrator or the Commission may on his or its own motion,

or on the motion of either party, correct any clerical error or

errors in computation within 15 days after the date of receipt

of any award by such Arbitrator or any decision on review of

the Commission and shall have the power to recall the original

award on arbitration or decision on review, and issue in lieu

thereof such corrected award or decision. Where such correction

is made the time for review herein specified shall begin to run

from the date of the receipt of the corrected award or

decision.

(1) Except in cases of claims against the State of

Illinois, in which case the decision of the Commission

shall not be subject to judicial review, the Circuit Court

of the county where any of the parties defendant may be

found, or if none of the parties defendant can be found in

this State then the Circuit Court of the county where the

accident occurred, shall by summons to the Commission have

power to review all questions of law and fact presented by

such record.

A proceeding for review shall be commenced within 20

days of the receipt of notice of the decision of the

Commission. The summons shall be issued by the clerk of

such court upon written request returnable on a designated

return day, not less than 10 or more than 60 days from the

date of issuance thereof, and the written request shall

contain the last known address of other parties in interest

and their attorneys of record who are to be served by

summons. Service upon any member of the Commission or the

Secretary or the Assistant Secretary thereof shall be

service upon the Commission, and service upon other parties

in interest and their attorneys of record shall be by

summons, and such service shall be made upon the Commission

and other parties in interest by mailing notices of the

commencement of the proceedings and the return day of the

summons to the office of the Commission and to the last

known place of residence of other parties in interest or

their attorney or attorneys of record. The clerk of the

court issuing the summons shall on the day of issue mail

notice of the commencement of the proceedings which shall

be done by mailing a copy of the summons to the office of

the Commission, and a copy of the summons to the other

parties in interest or their attorney or attorneys of

record and the clerk of the court shall make certificate

that he has so sent said notices in pursuance of this

Section, which shall be evidence of service on the

Commission and other parties in interest.

The Commission shall not be required to certify the

record of their proceedings to the Circuit Court, unless

the party commencing the proceedings for review in the

Circuit Court as above provided, shall pay to the

Commission the sum of 80¢ per page of testimony taken

before the Commission, and 35¢ per page of all other

matters contained in such record, except as otherwise

provided by Section 20 of this Act. Payment for photostatic

copies of exhibit shall be extra. It shall be the duty of

the Commission upon such payment, or failure to pay as

permitted under Section 20 of this Act, to prepare a true

and correct typewritten copy of such testimony and a true

and correct copy of all other matters contained in such

record and certified to by the Secretary or Assistant

Secretary thereof.

In its decision on review the Commission shall

determine in each particular case the amount of the

probable cost of the record to be filed as a part of the

summons in that case and no request for a summons may be

filed and no summons shall issue unless the party seeking

to review the decision of the Commission shall exhibit to

the clerk of the Circuit Court proof of payment by filing a

receipt showing payment or an affidavit of the attorney

setting forth that payment has been made of the sums so

determined to the Secretary or Assistant Secretary of the

Commission, except as otherwise provided by Section 20 of

this Act.

(2) No such summons shall issue unless the one against

whom the Commission shall have rendered an award for the

payment of money shall upon the filing of his written

request for such summons file with the clerk of the court a

bond conditioned that if he shall not successfully

prosecute the review, he will pay the award and the costs

of the proceedings in the courts. The amount of the bond

shall be fixed by any member of the Commission and the

surety or sureties of the bond shall be approved by the

clerk of the court. The acceptance of the bond by the clerk

of the court shall constitute evidence of his approval of

the bond.

Every county, city, town, township, incorporated

village, school district, body politic or municipal

corporation against whom the Commission shall have

rendered an award for the payment of money shall not be

required to file a bond to secure the payment of the award

and the costs of the proceedings in the court to authorize

the court to issue such summons.

The court may confirm or set aside the decision of the

Commission. If the decision is set aside and the facts

found in the proceedings before the Commission are

sufficient, the court may enter such decision as is

justified by law, or may remand the cause to the Commission

for further proceedings and may state the questions

requiring further hearing, and give such other

instructions as may be proper. Appeals shall be taken to

the Industrial Commission Division of the Appellate Court

in accordance with Supreme Court Rules 22(g) and 303.

Appeals shall be taken from the Industrial Commission

Division of the Appellate Court to the Supreme Court in

accordance with Supreme Court Rule 315.

It shall be the duty of the clerk of any court

rendering a decision affecting or affirming an award of the

Commission to promptly furnish the Commission with a copy

of such decision, without charge.

The decision of a majority of the members of the panel

of the Commission, shall be considered the decision of the

Commission.

(g) Except in the case of a claim against the State of

Illinois, either party may present a certified copy of the

award of the Arbitrator, or a certified copy of the decision of

the Commission when the same has become final, when no

proceedings for review are pending, providing for the payment

of compensation according to this Act, to the Circuit Court of

the county in which such accident occurred or either of the

parties are residents, whereupon the court shall enter a

judgment in accordance therewith. In a case where the employer

refuses to pay compensation according to such final award or

such final decision upon which such judgment is entered the

court shall in entering judgment thereon, tax as costs against

him the reasonable costs and attorney fees in the arbitration

proceedings and in the court entering the judgment for the

person in whose favor the judgment is entered, which judgment

and costs taxed as therein provided shall, until and unless set

aside, have the same effect as though duly entered in an action

duly tried and determined by the court, and shall with like

effect, be entered and docketed. The Circuit Court shall have

power at any time upon application to make any such judgment

conform to any modification required by any subsequent decision

of the Supreme Court upon appeal, or as the result of any

subsequent proceedings for review, as provided in this Act.

Judgment shall not be entered until 15 days' notice of the

time and place of the application for the entry of judgment

shall be served upon the employer by filing such notice with

the Commission, which Commission shall, in case it has on file

the address of the employer or the name and address of its

agent upon whom notices may be served, immediately send a copy

of the notice to the employer or such designated agent.

(h) An agreement or award under this Act providing for

compensation in installments, may at any time within 18 months

after such agreement or award be reviewed by the Commission at

the request of either the employer or the employee, on the

ground that the disability of the employee has subsequently

recurred, increased, diminished or ended.

However, as to accidents occurring subsequent to July 1,

1955, which are covered by any agreement or award under this

Act providing for compensation in installments made as a result

of such accident, such agreement or award may at any time

within 30 months after such agreement or award be reviewed by

the Commission at the request of either the employer or the

employee on the ground that the disability of the employee has

subsequently recurred, increased, diminished or ended.

On such review, compensation payments may be

re-established, increased, diminished or ended. The Commission

shall give 15 days' notice to the parties of the hearing for

review. Any employee, upon any petition for such review being

filed by the employer, shall be entitled to one day's notice

for each 100 miles necessary to be traveled by him in attending

the hearing of the Commission upon the petition, and 3 days in

addition thereto. Such employee shall, at the discretion of the

Commission, also be entitled to 5 cents per mile necessarily

traveled by him within the State of Illinois in attending such

hearing, not to exceed a distance of 300 miles, to be taxed by

the Commission as costs and deposited with the petition of the

employer.

When compensation which is payable in accordance with an

award or settlement contract approved by the Commission, is

ordered paid in a lump sum by the Commission, no review shall

be had as in this paragraph mentioned.

(i) Each party, upon taking any proceedings or steps

whatsoever before any Arbitrator, Commission or court, shall

file with the Commission his address, or the name and address

of any agent upon whom all notices to be given to such party

shall be served, either personally or by registered mail,

addressed to such party or agent at the last address so filed

with the Commission. In the event such party has not filed his

address, or the name and address of an agent as above provided,

service of any notice may be had by filing such notice with the

Commission.

(j) Whenever in any proceeding testimony has been taken or

a final decision has been rendered and after the taking of such

testimony or after such decision has become final, the injured

employee dies, then in any subsequent proceedings brought by

the personal representative or beneficiaries of the deceased

employee, such testimony in the former proceeding may be

introduced with the same force and effect as though the witness

having so testified were present in person in such subsequent

proceedings and such final decision, if any, shall be taken as

final adjudication of any of the issues which are the same in

both proceedings.

(k) In case where there has been any unreasonable or

vexatious delay of payment or intentional underpayment of

compensation, or proceedings have been instituted or carried on

by the one liable to pay the compensation, which do not present

a real controversy, but are merely frivolous or for delay, then

the Commission may award compensation additional to that

otherwise payable under this Act equal to 50% of the amount

payable at the time of such award. Failure to pay compensation

in accordance with the provisions of Section 8, paragraph (b)

of this Act, shall be considered unreasonable delay.

(l) In case the employer or his insurance carrier shall

without good and just cause fail, neglect, refuse or

unreasonably delay the payment of weekly compensation benefits

due to an injured employee during the period of temporary total

disability the arbitrator or the Commission shall allow to the

employee additional compensation in the sum of $10 per day for

each day that a weekly compensation payment has been so

withheld or refused, provided that such additional

compensation shall not exceed the sum of $2,500. A delay in

payment of 14 days or more shall create a rebuttable

presumption of unreasonable delay.

(m) If the commission finds that an accidental injury was

directly and proximately caused by the employer's wilful

violation of a health and safety standard under the Health and

Safety Act in force at the time of the accident, the arbitrator

or the Commission shall allow to the injured employee or his

dependents, as the case may be, additional compensation equal

to 25% of the amount which otherwise would be payable under the

provisions of this Act exclusive of this paragraph. The

additional compensation herein provided shall be allowed by an

appropriate increase in the applicable weekly compensation

rate.

(n) After June 30, 1984, decisions of the Illinois Workers'

Compensation Industrial Commission reviewing an award of an

arbitrator of the Commission shall draw interest at a rate

equal to the yield on indebtedness issued by the United States

Government with a 26-week maturity next previously auctioned on

the day on which the decision is filed. Said rate of interest

shall be set forth in the Arbitrator's Decision. Interest shall

be drawn from the date of the arbitrator's award on all accrued

compensation due the employee through the day prior to the date

of payments. However, when an employee appeals an award of an

Arbitrator or the Commission, and the appeal results in no

change or a decrease in the award, interest shall not further

accrue from the date of such appeal.

The employer or his insurance carrier may tender the

payments due under the award to stop the further accrual of

interest on such award notwithstanding the prosecution by

either party of review, certiorari, appeal to the Supreme Court

or other steps to reverse, vacate or modify the award.

(o) By the 15th day of each month each insurer providing

coverage for losses under this Act shall notify each insured

employer of any compensable claim incurred during the preceding

month and the amounts paid or reserved on the claim including a

summary of the claim and a brief statement of the reasons for

compensability. A cumulative report of all claims incurred

during a calendar year or continued from the previous year

shall be furnished to the insured employer by the insurer

within 30 days after the end of that calendar year.

The insured employer may challenge, in proceeding before

the Commission, payments made by the insurer without

arbitration and payments made after a case is determined to be

noncompensable. If the Commission finds that the case was not

compensable, the insurer shall purge its records as to that

employer of any loss or expense associated with the claim,

reimburse the employer for attorneys' fees arising from the

challenge and for any payment required of the employer to the

Rate Adjustment Fund or the Second Injury Fund, and may not

reflect the loss or expense for rate making purposes. The

employee shall not be required to refund the challenged

payment. The decision of the Commission may be reviewed in the

same manner as in arbitrated cases. No challenge may be

initiated under this paragraph more than 3 years after the

payment is made. An employer may waive the right of challenge

under this paragraph on a case by case basis.

(p) After filing an application for adjustment of claim but

prior to the hearing on arbitration the parties may voluntarily

agree to submit such application for adjustment of claim for

decision by an arbitrator under this subsection (p) where such

application for adjustment of claim raises only a dispute over

temporary total disability, permanent partial disability or

medical expenses. Such agreement shall be in writing in such

form as provided by the Commission. Applications for adjustment

of claim submitted for decision by an arbitrator under this

subsection (p) shall proceed according to rule as established

by the Commission. The Commission shall promulgate rules

including, but not limited to, rules to ensure that the parties

are adequately informed of their rights under this subsection

(p) and of the voluntary nature of proceedings under this

subsection (p). The findings of fact made by an arbitrator

acting within his or her powers under this subsection (p) in

the absence of fraud shall be conclusive. However, the

arbitrator may on his own motion, or the motion of either

party, correct any clerical errors or errors in computation

within 15 days after the date of receipt of such award of the

arbitrator and shall have the power to recall the original

award on arbitration, and issue in lieu thereof such corrected

award. The decision of the arbitrator under this subsection (p)

shall be considered the decision of the Commission and

proceedings for review of questions of law arising from the

decision may be commenced by either party pursuant to

subsection (f) of Section 19. The Advisory Board established

under Section 13.1 shall compile a list of certified Commission

arbitrators, each of whom shall be approved by at least 7

members of the Advisory Board. The chairman shall select 5

persons from such list to serve as arbitrators under this

subsection (p). By agreement, the parties shall select one

arbitrator from among the 5 persons selected by the chairman

except that if the parties do not agree on an arbitrator from

among the 5 persons, the parties may, by agreement, select an

arbitrator of the American Arbitration Association, whose fee

shall be paid by the State in accordance with rules promulgated

by the Commission. Arbitration under this subsection (p) shall

be voluntary.

(Source: P.A. 86-998; 87-435; 87-799.)

(820 ILCS 305/23) (from Ch. 48, par. 138.23)

Sec. 23. No employee, personal representative, or

beneficiary shall have power to waive any of the provisions of

this Act in regard to the amount of compensation which may be

payable to such employee, personal representative or

beneficiary hereunder except after approval by the Commission

and any employer, individually or by his agent, service company

or insurance carrier who shall enter into any payment

purporting to compromise or settle the compensation rights of

an employee, personal representative or beneficiary without

first obtaining the approval of the Illinois Workers'

Compensation Industrial Commission as aforesaid shall be

barred from raising the defense of limitation in any

proceedings subsequently brought by such employee, personal

representative or beneficiary.

A minor death beneficiary, by parent or grandparent as next

friend, may compromise disputes and may enter into and submit a

settlement contract or lump sum petition, and upon approval by

the Commission such settlement contract or lump sum order shall

have the same force and effect as though such minor had been an

adult.

(Source: P.A. 79-79.)

(820 ILCS 305/26) (from Ch. 48, par. 138.26)

Sec. 26. Any wilful neglect, refusal or failure to do the

things required to be done by any section, clause or provision

of this Act, on the part of the persons herein required to do

them, or any violation of any of the provisions or requirements

hereof, or any attempt to obstruct or interfere with any court

officer, or any other person charged with the duty of

administering or enforcing this Act, is a petty offense.

The Attorney General and the State's Attorney of each

county, upon the request of the Illinois Workers' Compensation

Industrial Commission, shall enforce any penalties set forth in

this Act.

(Source: P. A. 78-255.)

Section 75. The Workers' Occupational Diseases Act is

amended by changing Sections 1, 2, 3, 4, 6, 13, 17, 19, 23, and

26 as follows:

(820 ILCS 310/1) (from Ch. 48, par. 172.36)

Sec. 1. This Act shall be known and may be cited as the

"Workers' Occupational Diseases Act".

(a) The term "employer" as used in this Act shall be

construed to be:

1. The State and each county, city, town, township,

incorporated village, school district, body politic, or

municipal corporation therein.

2. Every person, firm, public or private corporation,

including hospitals, public service, eleemosynary, religious

or charitable corporations or associations, who has any person

in service or under any contract for hire, express or implied,

oral or written.

3. Where an employer operating under and subject to the

provisions of this Act loans an employee to another such

employer and such loaned employee sustains a compensable

occupational disease in the employment of such borrowing

employer and where such borrowing employer does not provide or

pay the benefits or payments due such employee, such loaning

employer shall be liable to provide or pay all benefits or

payments due such employee under this Act and as to such

employee the liability of such loaning and borrowing employers

shall be joint and several, provided that such loaning employer

shall in the absence of agreement to the contrary be entitled

to receive from such borrowing employer full reimbursement for

all sums paid or incurred pursuant to this paragraph together

with reasonable attorneys' fees and expenses in any hearings

before the Illinois Workers' Compensation Industrial

Commission or in any action to secure such reimbursement. Where

any benefit is provided or paid by such loaning employer, the

employee shall have the duty of rendering reasonable

co-operation in any hearings, trials or proceedings in the

case, including such proceedings for reimbursement.

Where an employee files an Application for Adjustment of

Claim with the Illinois Workers' Compensation Industrial

Commission alleging that his or her claim is covered by the

provisions of the preceding paragraph, and joining both the

alleged loaning and borrowing employers, they and each of them,

upon written demand by the employee and within 7 days after

receipt of such demand, shall have the duty of filing with the

Illinois Workers' Compensation Industrial Commission a written

admission or denial of the allegation that the claim is covered

by the provisions of the preceding paragraph and in default of

such filing or if any such denial be ultimately determined not

to have been bona fide then the provisions of Paragraph K of

Section 19 of this Act shall apply.

An employer whose business or enterprise or a substantial

part thereof consists of hiring, procuring or furnishing

employees to or for other employers operating under and subject

to the provisions of this Act for the performance of the work

of such other employers and who pays such employees their

salary or wage notwithstanding that they are doing the work of

such other employers shall be deemed a loaning employer within

the meaning and provisions of this Section.

(b) The term "employee" as used in this Act, shall be

construed to mean:

1. Every person in the service of the State, county, city,

town, township, incorporated village or school district, body

politic or municipal corporation therein, whether by election,

appointment or contract of hire, express or implied, oral or

written, including any official of the State, or of any county,

city, town, township, incorporated village, school district,

body politic or municipal corporation therein and except any

duly appointed member of the fire department in any city whose

population exceeds 500,000 according to the last Federal or

State census, and except any member of a fire insurance patrol

maintained by a board of underwriters in this State. One

employed by a contractor who has contracted with the State, or

a county, city, town, township, incorporated village, school

district, body politic or municipal corporation therein,

through its representatives, shall not be considered as an

employee of the State, county, city, town, township,

incorporated village, school district, body politic or

municipal corporation which made the contract.

2. Every person in the service of another under any

contract of hire, express or implied, oral or written, who

contracts an occupational disease while working in the State of

Illinois, or who contracts an occupational disease while

working outside of the State of Illinois but where the contract

of hire is made within the State of Illinois, and any person

whose employment is principally localized within the State of

Illinois, regardless of the place where the disease was

contracted or place where the contract of hire was made,

including aliens, and minors who, for the purpose of this Act,

except Section 3 hereof, shall be considered the same and have

the same power to contract, receive payments and give

quittances therefor, as adult employees. An employee or his or

her dependents under this Act who shall have a cause of action

by reason of an occupational disease, disablement or death

arising out of and in the course of his or her employment may

elect or pursue his or her remedy in the State where the

disease was contracted, or in the State where the contract of

hire is made, or in the State where the employment is

principally localized.

(c) "Commission" means the Illinois Workers' Compensation

Industrial Commission created by the Workers' Compensation

Act, approved July 9, 1951, as amended.

(d) In this Act the term "Occupational Disease" means a

disease arising out of and in the course of the employment or

which has become aggravated and rendered disabling as a result

of the exposure of the employment. Such aggravation shall arise

out of a risk peculiar to or increased by the employment and

not common to the general public.

A disease shall be deemed to arise out of the employment if

there is apparent to the rational mind, upon consideration of

all the circumstances, a causal connection between the

conditions under which the work is performed and the

occupational disease. The disease need not to have been

foreseen or expected but after its contraction it must appear

to have had its origin or aggravation in a risk connected with

the employment and to have flowed from that source as a

rational consequence.

An employee shall be conclusively deemed to have been

exposed to the hazards of an occupational disease when, for any

length of time however short, he or she is employed in an

occupation or process in which the hazard of the disease

exists; provided however, that in a claim of exposure to atomic

radiation, the fact of such exposure must be verified by the

records of the central registry of radiation exposure

maintained by the Department of Public Health or by some other

recognized governmental agency maintaining records of such

exposures whenever and to the extent that the records are on

file with the Department of Public Health or the agency.

The employer liable for the compensation in this Act

provided shall be the employer in whose employment the employee

was last exposed to the hazard of the occupational disease

claimed upon regardless of the length of time of such last

exposure, except, in cases of silicosis or asbestosis, the only

employer liable shall be the last employer in whose employment

the employee was last exposed during a period of 60 days or

more after the effective date of this Act, to the hazard of

such occupational disease, and, in such cases, an exposure

during a period of less than 60 days, after the effective date

of this Act, shall not be deemed a last exposure. If a miner

who is suffering or suffered from pneumoconiosis was employed

for 10 years or more in one or more coal mines there shall,

effective July 1, 1973 be a rebuttable presumption that his or

her pneumoconiosis arose out of such employment.

If a deceased miner was employed for 10 years or more in

one or more coal mines and died from a respirable disease there

shall, effective July 1, 1973, be a rebuttable presumption that

his or her death was due to pneumoconiosis.

The insurance carrier liable shall be the carrier whose

policy was in effect covering the employer liable on the last

day of the exposure rendering such employer liable in

accordance with the provisions of this Act.

(e) "Disablement" means an impairment or partial

impairment, temporary or permanent, in the function of the body

or any of the members of the body, or the event of becoming

disabled from earning full wages at the work in which the

employee was engaged when last exposed to the hazards of the

occupational disease by the employer from whom he or she claims

compensation, or equal wages in other suitable employment; and

"disability" means the state of being so incapacitated.

(f) No compensation shall be payable for or on account of

any occupational disease unless disablement, as herein

defined, occurs within two years after the last day of the last

exposure to the hazards of the disease, except in cases of

occupational disease caused by berylliosis or by the inhalation

of silica dust or asbestos dust and, in such cases, within 3

years after the last day of the last exposure to the hazards of

such disease and except in the case of occupational disease

caused by exposure to radiological materials or equipment, and

in such case, within 25 years after the last day of last

exposure to the hazards of such disease.

(Source: P.A. 81-992.)

(820 ILCS 310/2) (from Ch. 48, par. 172.37)

Sec. 2. (a) Where any employer in this State is

automatically and without election subject to and bound by the

provisions of the Workers' Compensation Act by reason of the

provisions of Section 3 thereof, as heretofore or hereafter

amended, then such employer and all of his employees working

within this State shall be automatically and without election

subject to and bound by the compensation provisions of this Act

with respect to all cases in which the last day of the last

exposure to the hazards of the disease claimed upon shall have

been on or after July 1, 1957. However, nothing contained in

this Act shall be construed to apply to any business,

enterprise, household or residence which is exempt from the

compensation provisions of the Workers' Compensation Act under

paragraphs 17, 18 and 19 of Section 3 of that Act.

(b) Any employer in this State who does not come within the

classes enumerated by Section 2 (a) of this Act may elect to

provide and pay compensation according to the provisions of

this Act, for disability or death resulting from occupational

diseases, and such election, when effective, shall apply to all

cases in which the last day of the last exposure as defined in

this Act to the hazards of the occupational disease claimed

upon shall have occurred on or after the effective date of such

election, and shall relieve such employer of all liability

under Section 3 of this Act and all other liability with

respect to injury to health or death therefrom by reason of any

disease contracted or sustained in the course of the

employment. The State of Illinois hereby elects to provide and

pay compensation according to the provisions of this Act.

(c) Election by any employer, pursuant to paragraph (b) of

this Section shall be made by filing notice of such election

with the Illinois Workers' Compensation Industrial Commission

or by insuring his liability to pay compensation under this Act

in some insurance carrier authorized, licensed or permitted to

do such insurance business in this State. Such employer shall

either furnish to his employees personally or post in a

conspicuous place in the place of employment notice of his

election.

(d) Every employer who has elected pursuant to paragraphs

(b) and (c) of this section to provide and pay compensation

shall, from and after the effective date of such election be

and operate under all provisions of this Act except Section 3

hereof, with respect to all his employees except those who have

rejected in due time as provided in paragraph (e). Any employer

having elected, prior to October 1, 1941, not to provide and

pay compensation may at any time thereafter again elect

pursuant to paragraphs (b) and (c) to provide and pay

compensation, but having thus elected for the second time to

provide and pay compensation such employer shall, from and

after the effective date of such last said election, be and

operate under all provisions of this Act, except Section 3

hereof, with respect to all employees except those who have

rejected in due time as provided in paragraph (e) of this

section.

(e) If any employer elects, pursuant to paragraph (b) and

(c) of this section, then every employee of such employer, who

may be employed at the time of such election by such employer,

shall be deemed to have accepted all the compensation

provisions of this Act and shall be bound thereby unless within

30 days after such election he shall file a notice to the

contrary with the Commission whose duty it shall be immediately

to notify the employer, and until such notice is given to the

employer, the measure of liability of such employer shall be

determined according to the compensation provisions of this

Act; and every employee of such employer, hired after such

employer's election, as a part of his contract of hiring shall

be deemed to have accepted all of the compensation provisions

of this Act, and shall have no right of rejection.

(f) Every employer within the provisions of this Act who

has elected to provide any pay compensation according to the

provisions of this Act by filing notice of such election with

the Commission, shall be bound thereby as to all his employees

until January 1st of the next succeeding year and for terms of

each year thereafter.

Any such employer who may have once elected, may elect not

to provide and pay the compensation herein provided for

accidents resulting in either injury or death and occurring

after the expiration of any such calendar year by filing notice

of such election with the Commission at least 60 days prior to

the expiration of any such calendar year, and by posting such

notice at a conspicuous place in the plant, shop, office, room

or place where such employee is employed, or by personal

service, in written or printed form, upon such employees, at

least 60 days prior to the expiration of any such calendar

year.

Every employer within the provisions of this Act who has

elected to provide and pay compensation according to the

provisions of this Act by insuring his liability to pay

compensation under this Act, as above provided, shall be bound

thereby as to all his employees until the date of expiration or

cancellation of such policy of insurance, or any renewal

thereof.

(Source: P.A. 81-992.)

(820 ILCS 310/3) (from Ch. 48, par. 172.38)

Sec. 3. Where an employee in this State sustains injury to

health or death by reason of a disease contracted or sustained

in the course of the employment and proximately caused by the

negligence of the employer, unless such employer shall be

subject to this Act under the provisions of paragraph (a) of

Section 2 of this Act or shall have elected to provide and pay

compensation as provided in Section 2 of this Act, a right of

action shall accrue to the employee whose health has been so

injured for any damages sustained thereby; and in case of

death, a right of action shall accrue to the widow or widower

of such deceased person, his or her lineal heirs or adopted

children, or to any person or persons who were, before such

loss of life, dependent for support upon such deceased person,

for a like recovery of damages for the injury sustained by

reason of such death not to exceed the sum of $10,000.

Violation by any employer of any effective rule or rules made

by the Illinois Workers' Compensation Industrial Commission

pursuant to the "Health and Safety Act", approved March 16,

1936, as amended, or violation by the employer of any statute

of this State, intended for the protection of the health of

employees shall be and constitute negligence of the employer

within the meaning of this Section. Every such action for

damage for injury to the health shall be commenced within 3

years after the last day of the last exposure to the hazards of

the disease and every such action for damages in case of death

shall be commenced within one year after the death of such

employee and within 5 years after the last day of the last

exposure to the hazards of the disease except where the disease

is caused by atomic radiation, in which case, every action for

damages for injury to health shall be commenced within 15 years

after the last day of last exposure to the hazard of such

disease and every action for damages in case of death shall be

commenced within one year after the death of such employee and

within 15 years after last exposure to the hazards of the

disease. In any action to recover damages under this Section,

it shall not be a defense that the employee either expressly or

impliedly assumed the risk of the employment, or that the

contraction or sustaining of the disease or death was caused in

whole or in part by the negligence of a fellow servant or

fellow servants, or that the contraction or sustaining of the

disease or death resulting was caused in whole or in part by

the contributory negligence of the employee, where such

contributory negligence was not wilful.

(Source: P.A. 80-328.)

(820 ILCS 310/4) (from Ch. 48, par. 172.39)

Sec. 4. (a) Any employer, including but not limited to

general contractors and their subcontractors, required by the

terms of this Act or by election to pay the compensation

provided for in this Act shall:

(1) File with the Commission an application for

approval as a self-insurer which shall include a current

financial statement. The application and financial

statement shall be signed and sworn to by the president or

vice-president and secretary or assistant secretary of the

employer if it be a corporation, or by all of the partners

if it be a copartnership, or by the owner if it be neither

a copartnership nor a corporation. An employer may elect to

provide and pay compensation as provided for in this Act as

a member of a group workers' compensation pool under

Article V 3/4 of the Illinois Insurance Code. If an

employer becomes a member of a group workers' compensation

pool, the employer shall not be relieved of any obligations

imposed by this Act.

If the sworn application and financial statement of any

such employer does not satisfy the Commission of the

financial ability of the employer who has filed it, the

Commission shall require such employer to:

(2) Furnish security, indemnity or a bond guaranteeing

the payment by the employer of the compensation provided

for in this Act, provided that any such employer who shall

have secured his or her liability in part by excess

liability coverage shall be required to furnish to the

Commission security, indemnity or bond guaranteeing his or

her payment up to the amount of the effective limits of the

excess coverage in accordance with the provisions of this

paragraph, or

(3) Insure his or her entire liability to pay such

compensation in some insurance carrier authorized,

licensed or permitted to do such insurance business in this

State. All policies of such insurance carriers insuring the

payment of compensation under this Act shall cover all the

employees and all such employer's compensation liability

in all cases in which the last day of the last exposure to

the occupational disease involved is within the effective

period of the policy, anything to the contrary in the

policy notwithstanding. Provided, however, that any

employer may insure his or her compensation liability under

this Act with 2 or more insurance carriers or may insure a

part and qualify under Subsection 1, 2, or 4 for the

remainder of his liability to pay such compensation,

subject to the following two provisions:

Firstly, the entire liability of the employer to

employees working at or from one location shall be

insured in one such insurance carrier or shall be

self-insured.

Secondly, the employer shall submit evidence

satisfactory to the Commission that his or her entire

liability for the compensation provided for in this Act

will be secured.

Any provision in a policy or in any endorsement

attached thereto attempting to limit or modify in any way

the liability of the insurance carrier issuing the same,

except as otherwise provided herein, shall be wholly void.

The insurance or security in force to cover

compensation liability under this Act shall be separate and

distinct from the insurance or security under the "Workers'

Compensation Act" and any insurance contract covering

liability under either Act need not cover any liability

under the other. Nothing herein contained shall apply to

policies of excess liability carriage secured by employers

who have been approved by the Commission as self-insurers,

or

(4) Make some other provision, satisfactory to the

Commission, for the securing of the payment of compensation

provided for in this Act, and

(5) Upon becoming subject to this Act and thereafter as

often as the Commission may in writing demand, file with

the Commission in form prescribed by it evidence of his or

her compliance with the provision of this Section.

(a-1) Regardless of its state of domicile or its principal

place of business, an employer shall make payments to its

insurance carrier or group self-insurance fund, where

applicable, based upon the premium rates of the situs where the

work or project is located in Illinois if:

(A) the employer is engaged primarily in the building

and construction industry; and

(B) subdivision (a)(3) of this Section applies to the

employer or the employer is a member of a group

self-insurance plan as defined in subsection (1) of Section

4a.

The Illinois Workers' Compensation Industrial Commission

shall impose a penalty upon an employer for violation of this

subsection (a-1) if:

(i) the employer is given an opportunity at a hearing

to present evidence of its compliance with this subsection

(a-1); and

(ii) after the hearing, the Commission finds that the

employer failed to make payments upon the premium rates of

the situs where the work or project is located in Illinois.

The penalty shall not exceed $1,000 for each day of work

for which the employer failed to make payments upon the premium

rates of the situs where the work or project is located in

Illinois, but the total penalty shall not exceed $50,000 for

each project or each contract under which the work was

performed.

Any penalty under this subsection (a-1) must be imposed not

later than one year after the expiration of the applicable

limitation period specified in subsection (c) of Section 6 of

this Act. Penalties imposed under this subsection (a-1) shall

be deposited into the Illinois Workers' Compensation

Industrial Commission Operations Fund created under Section 4

of the Workers' Compensation Act.

(b) The sworn application and financial statement, or

security, indemnity or bond, or amount of insurance, or other

provisions, filed, furnished, carried, or made by the employer,

as the case may be, shall be subject to the approval of the

Commission.

Deposits under escrow agreements shall be cash, negotiable

United States government bonds or negotiable general

obligation bonds of the State of Illinois. Such cash or bonds

shall be deposited in escrow with any State or National Bank or

Trust Company having trust authority in the State of Illinois.

Upon the approval of the sworn application and financial

statement, security, indemnity or bond or amount of insurance,

filed, furnished, or carried, as the case may be, the

Commission shall send to the employer written notice of its

approval thereof. Said certificate of compliance by the

employer with the provisions of subparagraphs (2) and (3) of

paragraph (a) of this Section shall be delivered by the

insurance carrier to the Illinois Workers' Compensation

Industrial Commission within 5 days after the effective date of

the policy so certified. The insurance so certified shall cover

all compensation liability occurring during the time that the

insurance is in effect and no further certificate need be filed

in case such insurance is renewed, extended or otherwise

continued by such carrier. The insurance so certified shall not

be cancelled or in the event that such insurance is not

renewed, extended or otherwise continued, such insurance shall

not be terminated until at least 10 days after receipt by the

Illinois Workers' Compensation Industrial Commission of notice

of the cancellation or termination of said insurance; provided,

however, that if the employer has secured insurance from

another insurance carrier, or has otherwise secured the payment

of compensation in accordance with this Section, and such

insurance or other security becomes effective prior to the

expiration of said 10 days, cancellation or termination may, at

the option of the insurance carrier indicated in such notice,

be effective as of the effective date of such other insurance

or security.

(c) Whenever the Commission shall find that any

corporation, company, association, aggregation of individuals,

reciprocal or interinsurers exchange, or other insurer

effecting workers' occupational disease compensation insurance

in this State shall be insolvent, financially unsound, or

unable to fully meet all payments and liabilities assumed or to

be assumed for compensation insurance in this State, or shall

practice a policy of delay or unfairness toward employees in

the adjustment, settlement, or payment of benefits due such

employees, the Commission may after reasonable notice and

hearing order and direct that such corporation, company,

association, aggregation of individuals, reciprocal or

interinsurers exchange, or insurer, shall from and after a date

fixed in such order discontinue the writing of any such

workers' occupational disease compensation insurance in this

State. It shall thereupon be unlawful for any such corporation,

company, association, aggregation of individuals, reciprocal

or interinsurers exchange, or insurer to effect any workers'

occupational disease compensation insurance in this State. A

copy of the order shall be served upon the Director of

Insurance by registered mail. Whenever the Commission finds

that any service or adjustment company used or employed by a

self-insured employer or by an insurance carrier to process,

adjust, investigate, compromise or otherwise handle claims

under this Act, has practiced or is practicing a policy of

delay or unfairness toward employees in the adjustment,

settlement or payment of benefits due such employees, the

Commission may after reasonable notice and hearing order and

direct that such service or adjustment company shall from and

after a date fixed in such order be prohibited from processing,

adjusting, investigating, compromising or otherwise handling

claims under this Act.

Whenever the Commission finds that any self-insured

employer has practiced or is practicing delay or unfairness

toward employees in the adjustment, settlement or payment of

benefits due such employees, the Commission may after

reasonable notice and hearing order and direct that after a

date fixed in the order such self-insured employer shall be

disqualified to operate as a self-insurer and shall be required

to insure his entire liability to pay compensation in some

insurance carrier authorized, licensed and permitted to do such

insurance business in this State as provided in subparagraph

(3) of paragraph (a) of this Section.

All orders made by the Commission under this Section shall

be subject to review by the courts, the review to be taken in

the same manner and within the same time as provided by Section

19 of this Act for review of awards and decisions of the

Commission, upon the party seeking the review filing with the

clerk of the court to which said review is taken a bond in an

amount to be fixed and approved by the court to which said

review is taken, conditioned upon the payment of all

compensation awarded against the person taking the review

pending a decision thereof and further conditioned upon such

other obligations as the court may impose. Upon the review the

Circuit Court shall have power to review all questions of fact

as well as of law. The penalty hereinafter provided for in this

paragraph shall not attach and shall not begin to run until the

final determination of the order of the Commission.

(d) Upon a finding by the Commission, after reasonable

notice and hearing, of the knowing and wilful failure of an

employer to comply with any of the provisions of paragraph (a)

of this Section or the failure or refusal of an employer,

service or adjustment company, or insurance carrier to comply

with any order of the Illinois Workers' Compensation Industrial

Commission pursuant to paragraph (c) of this Section the

Commission may assess a civil penalty of up to $500 per day for

each day of such failure or refusal after the effective date of

this amendatory Act of 1989. Each day of such failure or

refusal shall constitute a separate offense.

Upon the failure or refusal of any employer, service or

adjustment company or insurance carrier to comply with the

provisions of this Section and orders of the Commission under

this Section, or the order of the court on review after final

adjudication, the Commission may bring a civil action to

recover the amount of the penalty in Cook County or in Sangamon

County in which litigation the Commission shall be represented

by the Attorney General. The Commission shall send notice of

its finding of non-compliance and assessment of the civil

penalty to the Attorney General. It shall be the duty of the

Attorney General within 30 days after receipt of the notice, to

institute prosecutions and promptly prosecute all reported

violations of this Section.

(e) This Act shall not affect or disturb the continuance of

any existing insurance, mutual aid, benefit, or relief

association or department, whether maintained in whole or in

part by the employer or whether maintained by the employees,

the payment of benefits of such association or department being

guaranteed by the employer or by some person, firm or

corporation for him or her: Provided, the employer contributes

to such association or department an amount not less than the

full compensation herein provided, exclusive of the cost of the

maintenance of such association or department and without any

expense to the employee. This Act shall not prevent the

organization and maintaining under the insurance laws of this

State of any benefit or insurance company for the purpose of

insuring against the compensation provided for in this Act, the

expense of which is maintained by the employer. This Act shall

not prevent the organization or maintaining under the insurance

laws of this State of any voluntary mutual aid, benefit or

relief association among employees for the payment of

additional accident or sick benefits.

(f) No existing insurance, mutual aid, benefit or relief

association or department shall, by reason of anything herein

contained, be authorized to discontinue its operation without

first discharging its obligations to any and all persons

carrying insurance in the same or entitled to relief or

benefits therein.

(g) Any contract, oral, written or implied, of employment

providing for relief benefit, or insurance or any other device

whereby the employee is required to pay any premium or premiums

for insurance against the compensation provided for in this Act

shall be null and void. Any employer withholding from the wages

of any employee any amount for the purpose of paying any such

premium shall be guilty of a Class B misdemeanor.

In the event the employer does not pay the compensation for

which he or she is liable, then an insurance company,

association or insurer which may have insured such employer

against such liability shall become primarily liable to pay to

the employee, his personal representative or beneficiary the

compensation required by the provisions of this Act to be paid

by such employer. The insurance carrier may be made a party to

the proceedings in which the employer is a party and an award

may be entered jointly against the employer and the insurance

carrier.

(h) It shall be unlawful for any employer, insurance

company or service or adjustment company to interfere with,

restrain or coerce an employee in any manner whatsoever in the

exercise of the rights or remedies granted to him or her by

this Act or to discriminate, attempt to discriminate, or

threaten to discriminate against an employee in any way because

of his exercise of the rights or remedies granted to him by

this Act.

It shall be unlawful for any employer, individually or

through any insurance company or service or adjustment company,

to discharge or to threaten to discharge, or to refuse to

rehire or recall to active service in a suitable capacity an

employee because of the exercise of his or her rights or

remedies granted to him or her by this Act.

(i) If an employer elects to obtain a life insurance policy

on his employees, he may also elect to apply such benefits in

satisfaction of all or a portion of the death benefits payable

under this Act, in which case, the employer's premium for

coverage for benefits under this Act shall be reduced

accordingly.

(Source: P.A. 90-109, eff. 1-1-98; 91-375, eff. 1-1-00; 91-757,

eff. 1-1-01.)

(820 ILCS 310/6) (from Ch. 48, par. 172.41)

Sec. 6. (a) Every employer operating under the compensation

provisions of this Act, shall post printed notices in their

respective places of employment in conspicuous places and in

such number and at such places as may be determined by the

Commission, containing such information relative to this Act as

in the judgment of the Commission may be necessary to aid

employees to safeguard their rights under this Act.

In addition thereto, the employer shall post in a

conspicuous place on the premises of the employment a printed

or typewritten notice stating whether he is insured or whether

he has qualified and is operating as a self-insured employer.

In the event the employer is insured, the notice shall state

the name and address of his or her insurance carrier, the

number of the insurance policy, its effective date and the date

of termination. In the event of the termination of the policy

for any reason prior to the termination date stated, the posted

notice shall promptly be corrected accordingly. In the event

the employer is operating as a self-insured employer the notice

shall state the name and address of the company, if any,

servicing the compensation payments of the employer, and the

name and address of the person in charge of making compensation

payments.

(b) Every employer subject to this Act shall maintain

accurate records of work-related deaths, injuries and

illnesses other than minor injuries requiring only first aid

treatment and which do not involve medical treatment, loss of

consciousness, restriction of work or motion or transfer to

another job and file with the Illinois Workers' Compensation

Industrial Commission, in writing, a report of all occupational

diseases arising out of and in the course of the employment and

resulting in death, or disablement or illness resulting in the

loss of more than 3 scheduled work days. In the case of death

such report shall be made no later than 2 working days

following the occupational death. In all other cases such

report shall be made between the 15th and 25th of each month

unless required to be made sooner by rule of the Illinois

Workers' Compensation Industrial Commission. In case the

occupational disease results in permanent disability, a

further report shall be made as soon as it is determined that

such permanent disability has resulted or will result

therefrom. All reports shall state the date of the disablement,

the nature of the employer's business, the name, address, the

age, sex, conjugal condition of the disabled person, the

specific occupation of the person, the nature and character of

the occupational disease, the length of disability, and, in

case of death, the length of disability before death, the wages

of the employee, whether compensation has been paid to the

employee, or to his legal representative or his heirs or next

of kin, the amount of compensation paid, the amount paid for

physicians', surgeons' and hospital bills, and by whom paid,

and the amount paid for funeral or burial expenses, if known.

The reports shall be made on forms and in the manner as

prescribed by the Illinois Workers' Compensation Industrial

Commission and shall contain such further information as the

Commission shall deem necessary and require. The making of such

reports releases the employer from making such reports to any

other officer of the State and shall satisfy the reporting

provisions as contained in the "Health And Safety Act" and "An

Act in relation to safety inspections and education in

industrial and commercial establishments and to repeal an Act

therein named", approved July 18, 1955, as amended. The report

filed with the Illinois Workers' Compensation Industrial

Commission pursuant to the provisions of this Section shall be

made available by the Illinois Workers' Compensation

Industrial Commission to the Director of Labor or his

representatives, to the Department of Public Health pursuant to

the Illinois Health and Hazardous Substances Registry Act, and

to all other departments of the State of Illinois which shall

require such information for the proper discharge of their

official duties. Failure to file with the Commission any of the

reports required in this Section is a petty offense.

Except as provided in this paragraph, all reports filed

hereunder shall be confidential and any person having access to

such records filed with the Illinois Workers' Compensation

Industrial Commission as herein required, who shall release the

names or otherwise identify any persons sustaining injuries or

disabilities, or gives access to such information to any

unauthorized person, shall be subject to discipline or

discharge, and in addition shall be guilty of a Class B

misdemeanor. The Commission shall compile and distribute to

interested persons aggregate statistics, taken from the

reports filed hereunder. The aggregate statistics shall not

give the names or otherwise identify persons sustaining

injuries or disabilities or the employer of any injured or

disabled person.

(c) There shall be given notice to the employer of

disablement arising from an occupational disease as soon as

practicable after the date of the disablement. If the

Commission shall find that the failure to give such notice

substantially prejudices the rights of the employer the

Commission in its discretion may order that the right of the

employee to proceed under this Act shall be barred.

In case of legal disability of the employee or any

dependent of a deceased employee who may be entitled to

compensation, under the provisions of this Act, the limitations

of time in this Section of this Act provided shall not begin to

run against such person who is under legal disability until a

conservator or guardian has been appointed. No defect or

inaccuracy of such notice shall be a bar to the maintenance of

proceedings on arbitration or otherwise by the employee unless

the employer proves that he or she is unduly prejudiced in such

proceedings by such defect or inaccuracy. Notice of the

disabling disease may be given orally or in writing. In any

case, other than injury or death caused by exposure to

radiological materials or equipment or asbestos, unless

application for compensation is filed with the Commission

within 3 years after the date of the disablement, where no

compensation has been paid, or within 2 years after the date of

the last payment of compensation, where any has been paid,

whichever shall be later, the right to file such application

shall be barred. If the occupational disease results in death,

application for compensation for death may be filed with the

Commission within 3 years after the date of death where no

compensation has been paid, or within 3 years after the last

payment of compensation, where any has been paid, whichever is

later, but not thereafter.

Effective July 1, 1973 in cases of disability caused by

coal miners pneumoconiosis unless application for compensation

is filed with the Commission within 5 years after the employee

was last exposed where no compensation has been paid, or within

5 years after the last payment of compensation where any has

been paid, the right to file such application shall be barred.

In cases of disability caused by exposure to radiological

materials or equipment or asbestos, unless application for

compensation is filed with the Commission within 25 years after

the employee was so exposed, the right to file such application

shall be barred.

In cases of death occurring within 25 years from the last

exposure to radiological material or equipment or asbestos,

application for compensation must be filed within 3 years of

death where no compensation has been paid, or within 3 years,

after the date of the last payment where any has been paid, but

not thereafter.

(d) Any contract or agreement made by any employer or his

agent or attorney with any employee or any other beneficiary of

any claim under the provisions of this Act within 7 days after

the disablement shall be presumed to be fraudulent.

(Source: P.A. 84-981.)

(820 ILCS 310/13) (from Ch. 48, par. 172.48)

Sec. 13. The Illinois Workers' Compensation Industrial

Commission shall have jurisdiction over the operation and

administration of this Act and it shall have, exercise, perform

and discharge the same rights, powers and duties with reference

to this Act as it shall have, exercise, perform and discharge

with reference to the Workers' Compensation Act or any

amendment thereto or modification thereof.

(Source: P.A. 81-992.)

(820 ILCS 310/17) (from Ch. 48, par. 172.52)

Sec. 17. The Commission shall cause to be printed and shall

furnish free of charge upon request by any employer or employee

such blank forms as it shall deem requisite to facilitate or

promote the efficient administration of this Act, and the

performance of the duties of the Commission. It shall provide a

proper record in which shall be entered and indexed the name of

any employer who shall file a notice of election under this

Act, and the date of the filing thereof; and a proper record in

which shall be entered and indexed the name of any employee who

shall file a notice of election, and the date of the filing

thereof; and such other notices as may be required by this Act;

and records in which shall be recorded all proceedings, orders

and awards had or made by the Commission, or by the arbitration

committees, and such other books or records as it shall deem

necessary, all such records to be kept in the office of the

Commission. The Commission, in its discretion, may destroy all

papers and documents except notices of election and waivers

which have been on file for more than five years where there is

no claim for compensation pending, or where more than two years

have elapsed since the termination of the compensation period.

The Commission shall compile and distribute to interested

persons aggregate statistics, taken from any records and

reports in the possession of the Commission. The aggregate

statistics shall not give the names or otherwise identify

persons sustaining injuries or disabilities or the employer of

any injured or disabled person.

The Commission is authorized to establish reasonable fees

and methods of payment limited to covering only the costs to

the Commission for processing, maintaining and generating

records or data necessary for the computerized production of

documents, records and other materials except to the extent of

any salaries or compensation of Commission officers or

employees.

All fees collected by the Commission under this Section

shall be deposited in the Statistical Services Revolving Fund

and credited to the account of the Illinois Workers'

Compensation Industrial Commission.

(Source: P.A. 83-489.)

(820 ILCS 310/19) (from Ch. 48, par. 172.54)

Sec. 19. Any disputed questions of law or fact shall be

determined as herein provided.

(a) It shall be the duty of the Commission upon

notification that the parties have failed to reach an agreement

to designate an Arbitrator.

(1) The application for adjustment of claim filed with

the Commission shall state:

A. The approximate date of the last day of the last

exposure and the approximate date of the disablement.

B. The general nature and character of the illness

or disease claimed.

C. The name and address of the employer by whom

employed on the last day of the last exposure and if

employed by any other employer after such last exposure

and before disablement the name and address of such

other employer or employers.

D. In case of death, the date and place of death.

(2) Amendments to applications for adjustment of claim

which relate to the same disablement or disablement

resulting in death originally claimed upon may be allowed

by the Commissioner or an Arbitrator thereof, in their

discretion, and in the exercise of such discretion, they

may in proper cases order a trial de novo; such amendment

shall relate back to the date of the filing of the original

application so amended.

(3) Whenever any claimant misconceives his remedy and

files an application for adjustment of claim under this Act

and it is subsequently discovered, at any time before final

disposition of such cause, that the claim for disability or

death which was the basis for such application should

properly have been made under the Workers' Compensation

Act, then the provisions of Section 19 paragraph (a-1) of

the Workers' Compensation Act having reference to such

application shall apply.

Whenever any claimant misconceives his remedy and

files an application for adjustment of claim under the

Workers' Compensation Act and it is subsequently

discovered, at any time before final disposition of such

cause that the claim for injury or death which was the

basis for such application should properly have been made

under this Act, then the application so filed under the

Workers' Compensation Act may be amended in form, substance

or both to assert claim for such disability or death under

this Act and it shall be deemed to have been so filed as

amended on the date of the original filing thereof, and

such compensation may be awarded as is warranted by the

whole evidence pursuant to the provisions of this Act. When

such amendment is submitted, further or additional

evidence may be heard by the Arbitrator or Commission when

deemed necessary; provided, that nothing in this Section

contained shall be construed to be or permit a waiver of

any provisions of this Act with reference to notice, but

notice if given shall be deemed to be a notice under the

provisions of this Act if given within the time required

herein.

(b) The Arbitrator shall make such inquiries and

investigations as he shall deem necessary and may examine and

inspect all books, papers, records, places, or premises

relating to the questions in dispute and hear such proper

evidence as the parties may submit.

The hearings before the Arbitrator shall be held in the

vicinity where the last exposure occurred, after 10 days'

notice of the time and place of such hearing shall have been

given to each of the parties or their attorneys of record.

The Arbitrator may find that the disabling condition is

temporary and has not yet reached a permanent condition and may

order the payment of compensation up to the date of the

hearing, which award shall be reviewable and enforceable in the

same manner as other awards, and in no instance be a bar to a

further hearing and determination of a further amount of

temporary total compensation or of compensation for permanent

disability, but shall be conclusive as to all other questions

except the nature and extent of such disability.

The decision of the Arbitrator shall be filed with the

Commission which Commission shall immediately send to each

party or his attorney a copy of such decision, together with a

notification of the time when it was filed. Beginning January

1, 1981, all decisions of the Arbitrator shall set forth in

writing findings of fact and conclusions of law, separately

stated. Unless a petition for review is filed by either party

within 30 days after the receipt by such party of the copy of

the decision and notification of time when filed, and unless

such party petitioning for a review shall within 35 days after

the receipt by him of the copy of the decision, file with the

Commission either an agreed statement of the facts appearing

upon the hearing before the Arbitrator, or if such party shall

so elect a correct transcript of evidence of the proceedings at

such hearings, then the decision shall become the decision of

the Commission and in the absence of fraud shall be conclusive.

The Petition for Review shall contain a statement of the

petitioning party's specific exceptions to the decision of the

arbitrator. The jurisdiction of the Commission to review the

decision of the arbitrator shall not be limited to the

exceptions stated in the Petition for Review. The Commission,

or any member thereof, may grant further time not exceeding 30

days, in which to file such agreed statement or transcript of

evidence. Such agreed statement of facts or correct transcript

of evidence, as the case may be, shall be authenticated by the

signatures of the parties or their attorneys, and in the event

they do not agree as to the correctness of the transcript of

evidence it shall be authenticated by the signature of the

Arbitrator designated by the Commission.

(b-1) If the employee is not receiving, pursuant to Section

7, medical, surgical or hospital services of the type provided

for in paragraph (a) of Section 8 of the Workers' Compensation

Act or compensation of the type provided for in paragraph (b)

of Section 8 of the Workers' Compensation Act, the employee, in

accordance with Commission Rules, may file a petition for an

emergency hearing by an Arbitrator on the issue of whether or

not he is entitled to receive payment of such compensation or

services as provided therein. Such petition shall have priority

over all other petitions and shall be heard by the Arbitrator

and Commission with all convenient speed.

Such petition shall contain the following information and

shall be served on the employer at least 15 days before it is

filed:

(i) the date and approximate time of the last exposure;

(ii) the approximate location of the last exposure;

(iii) a description of the last exposure;

(iv) the nature of the disability incurred by the

employee;

(v) the identity of the person, if known, to whom the

disability was reported and the date on which it was

reported;

(vi) the name and title of the person, if known,

representing the employer with whom the employee conferred

in any effort to obtain pursuant to Section 7 compensation

of the type provided for in paragraph (b) of Section 8 of

the Workers' Compensation Act or medical, surgical or

hospital services of the type provided for in paragraph (a)

of Section 8 of the Workers' Compensation Act and the date

of such conference;

(vii) a statement that the employer has refused to pay

compensation pursuant to Section 7 of the type provided for

in paragraph (b) of Section 8 of the Workers' Compensation

Act or for medical, surgical or hospital services pursuant

to Section 7 of the type provided for in paragraph (a) of

Section 8 of the Workers' Compensation Act;

(viii) the name and address, if known, of each witness

to the last exposure and of each other person upon whom the

employee will rely to support his allegations;

(ix) the dates of treatment related to the disability

by medical practitioners, and the names and addresses of

such practitioners, including the dates of treatment

related to the disability at any hospitals and the names

and addresses of such hospitals, and a signed authorization

permitting the employer to examine all medical records of

all practitioners and hospitals named pursuant to this

paragraph;

(x) a copy of a signed report by a medical

practitioner, relating to the employee's current inability

to return to work because of the disability incurred as a

result of the exposure or such other documents or

affidavits which show that the employee is entitled to

receive pursuant to Section 7 compensation of the type

provided for in paragraph (b) of Section 8 of the Workers'

Compensation Act or medical, surgical or hospital services

of the type provided for in paragraph (a) of Section 8 of

the Workers' Compensation Act. Such reports, documents or

affidavits shall state, if possible, the history of the

exposure given by the employee, and describe the disability

and medical diagnosis, the medical services for such

disability which the employee has received and is

receiving, the physical activities which the employee

cannot currently perform as a result of such disability,

and the prognosis for recovery;

(xi) complete copies of any reports, records,

documents and affidavits in the possession of the employee

on which the employee will rely to support his allegations,

provided that the employer shall pay the reasonable cost of

reproduction thereof;

(xii) a list of any reports, records, documents and

affidavits which the employee has demanded by subpoena and

on which he intends to rely to support his allegations;

(xiii) a certification signed by the employee or his

representative that the employer has received the petition

with the required information 15 days before filing.

Fifteen days after receipt by the employer of the petition

with the required information the employee may file said

petition and required information and shall serve notice of the

filing upon the employer. The employer may file a motion

addressed to the sufficiency of the petition. If an objection

has been filed to the sufficiency of the petition, the

arbitrator shall rule on the objection within 2 working days.

If such an objection is filed, the time for filing the final

decision of the Commission as provided in this paragraph shall

be tolled until the arbitrator has determined that the petition

is sufficient.

The employer shall, within 15 days after receipt of the

notice that such petition is filed, file with the Commission

and serve on the employee or his representative a written

response to each claim set forth in the petition, including the

legal and factual basis for each disputed allegation and the

following information: (i) complete copies of any reports,

records, documents and affidavits in the possession of the

employer on which the employer intends to rely in support of

his response, (ii) a list of any reports, records, documents

and affidavits which the employer has demanded by subpoena and

on which the employer intends to rely in support of his

response, (iii) the name and address of each witness on whom

the employer will rely to support his response, and (iv) the

names and addresses of any medical practitioners selected by

the employer pursuant to Section 12 of this Act and the time

and place of any examination scheduled to be made pursuant to

such Section.

Any employer who does not timely file and serve a written

response without good cause may not introduce any evidence to

dispute any claim of the employee but may cross examine the

employee or any witness brought by the employee and otherwise

be heard.

No document or other evidence not previously identified by

either party with the petition or written response, or by any

other means before the hearing, may be introduced into evidence

without good cause. If, at the hearing, material information is

discovered which was not previously disclosed, the Arbitrator

may extend the time for closing proof on the motion of a party

for a reasonable period of time which may be more than 30 days.

No evidence may be introduced pursuant to this paragraph as to

permanent disability. No award may be entered for permanent

disability pursuant to this paragraph. Either party may

introduce into evidence the testimony taken by deposition of

any medical practitioner.

The Commission shall adopt rules, regulations and

procedures whereby the final decision of the Commission is

filed not later than 90 days from the date the petition for

review is filed but in no event later than 180 days from the

date the petition for an emergency hearing is filed with the

Illinois Workers' Compensation Industrial Commission.

All service required pursuant to this paragraph (b-1) must

be by personal service or by certified mail and with evidence

of receipt. In addition, for the purposes of this paragraph,

all service on the employer must be at the premises where the

accident occurred if the premises are owned or operated by the

employer. Otherwise service must be at the employee's principal

place of employment by the employer. If service on the employer

is not possible at either of the above, then service shall be

at the employer's principal place of business. After initial

service in each case, service shall be made on the employer's

attorney or designated representative.

(c) (1) At a reasonable time in advance of and in

connection with the hearing under Section 19(e) or 19(h), the

Commission may on its own motion order an impartial physical or

mental examination of a petitioner whose mental or physical

condition is in issue, when in the Commission's discretion it

appears that such an examination will materially aid in the

just determination of the case. The examination shall be made

by a member or members of a panel of physicians chosen for

their special qualifications by the Illinois State Medical

Society. The Commission shall establish procedures by which a

physician shall be selected from such list.

(2) Should the Commission at any time during the hearing

find that compelling considerations make it advisable to have

an examination and report at that time, the Commission may in

its discretion so order.

(3) A copy of the report of examination shall be given to

the Commission and to the attorneys for the parties.

(4) Either party or the Commission may call the examining

physician or physicians to testify. Any physician so called

shall be subject to cross-examination.

(5) The examination shall be made, and the physician or

physicians, if called, shall testify, without cost to the

parties. The Commission shall determine the compensation and

the pay of the physician or physicians. The compensation for

this service shall not exceed the usual and customary amount

for such service.

The fees and payment thereof of all attorneys and

physicians for services authorized by the Commission under this

Act shall, upon request of either the employer or the employee

or the beneficiary affected, be subject to the review and

decision of the Commission.

(d) If any employee shall persist in insanitary or

injurious practices which tend to either imperil or retard his

recovery or shall refuse to submit to such medical, surgical,

or hospital treatment as is reasonably essential to promote his

recovery, the Commission may, in its discretion, reduce or

suspend the compensation of any such employee; provided, that

when an employer and employee so agree in writing, the

foregoing provision shall not be construed to authorize the

reduction or suspension of compensation of an employee who is

relying in good faith, on treatment by prayer or spiritual

means alone, in accordance with the tenets and practice of a

recognized church or religious denomination, by a duly

accredited practitioner thereof.

(e) This paragraph shall apply to all hearings before the

Commission. Such hearings may be held in its office or

elsewhere as the Commission may deem advisable. The taking of

testimony on such hearings may be had before any member of the

Commission. If a petition for review and agreed statement of

facts or transcript of evidence is filed, as provided herein,

the Commission shall promptly review the decision of the

Arbitrator and all questions of law or fact which appear from

the statement of facts or transcripts of evidence. In all cases

in which the hearing before the arbitrator is held after the

effective date of this amendatory Act of 1989, no additional

evidence shall be introduced by the parties before the

Commission on review of the decision of the Arbitrator. The

Commission shall file in its office its decision thereon, and

shall immediately send to each party or his attorney a copy of

such decision and a notification of the time when it was filed.

Decisions shall be filed within 60 days after the Statement of

Exceptions and Supporting Brief and Response thereto are

required to be filed or oral argument whichever is later.

In the event either party requests oral argument, such

argument shall be had before a panel of 3 members of the

Commission (or before all available members pursuant to the

determination of 5 members of the Commission that such argument

be held before all available members of the Commission)

pursuant to the rules and regulations of the Commission. A

panel of 3 members, which shall be comprised of not more than

one representative citizen of the employing class and not more

than one representative citizen of the employee class, shall

hear the argument; provided that if all the issues in dispute

are solely the nature and extent of the permanent partial

disability, if any, a majority of the panel may deny the

request for such argument and such argument shall not be held;

and provided further that 5 members of the Commission may

determine that the argument be held before all available

members of the Commission. A decision of the Commission shall

be approved by a majority of Commissioners present at such

hearing if any; provided, if no such hearing is held, a

decision of the Commission shall be approved by a majority of a

panel of 3 members of the Commission as described in this

Section. The Commission shall give 10 days' notice to the

parties or their attorneys of the time and place of such taking

of testimony and of such argument.

In any case the Commission in its decision may in its

discretion find specially upon any question or questions of law

or facts which shall be submitted in writing by either party

whether ultimate or otherwise; provided that on issues other

than nature and extent of the disablement, if any, the

Commission in its decision shall find specially upon any

question or questions of law or fact, whether ultimate or

otherwise, which are submitted in writing by either party;

provided further that not more than 5 such questions may be

submitted by either party. Any party may, within 20 days after

receipt of notice of the Commission's decision, or within such

further time, not exceeding 30 days, as the Commission may

grant, file with the Commission either an agreed statement of

the facts appearing upon the hearing, or, if such party shall

so elect, a correct transcript of evidence of the additional

proceedings presented before the Commission in which report the

party may embody a correct statement of such other proceedings

in the case as such party may desire to have reviewed, such

statement of facts or transcript of evidence to be

authenticated by the signature of the parties or their

attorneys, and in the event that they do not agree, then the

authentication of such transcript of evidence shall be by the

signature of any member of the Commission.

If a reporter does not for any reason furnish a transcript

of the proceedings before the Arbitrator in any case for use on

a hearing for review before the Commission, within the

limitations of time as fixed in this Section, the Commission

may, in its discretion, order a trial de novo before the

Commission in such case upon application of either party. The

applications for adjustment of claim and other documents in the

nature of pleadings filed by either party, together with the

decisions of the Arbitrator and of the Commission and the

statement of facts or transcript of evidence hereinbefore

provided for in paragraphs (b) and (c) shall be the record of

the proceedings of the Commission, and shall be subject to

review as hereinafter provided.

At the request of either party or on its own motion, the

Commission shall set forth in writing the reasons for the

decision, including findings of fact and conclusions of law,

separately stated. The Commission shall by rule adopt a format

for written decisions for the Commission and arbitrators. The

written decisions shall be concise and shall succinctly state

the facts and reasons for the decision. The Commission may

adopt in whole or in part, the decision of the arbitrator as

the decision of the Commission. When the Commission does so

adopt the decision of the arbitrator, it shall do so by order.

Whenever the Commission adopts part of the arbitrator's

decision, but not all, it shall include in the order the

reasons for not adopting all of the arbitrator's decision. When

a majority of a panel, after deliberation, has arrived at its

decision, the decision shall be filed as provided in this

Section without unnecessary delay, and without regard to the

fact that a member of the panel has expressed an intention to

dissent. Any member of the panel may file a dissent. Any

dissent shall be filed no later than 10 days after the decision

of the majority has been filed.

Decisions rendered by the Commission after the effective

date of this amendatory Act of 1980 and dissents, if any, shall

be published together by the Commission. The conclusions of law

set out in such decisions shall be regarded as precedents by

arbitrators, for the purpose of achieving a more uniform

administration of this Act.

(f) The decision of the Commission acting within its

powers, according to the provisions of paragraph (e) of this

Section shall, in the absence of fraud, be conclusive unless

reviewed as in this paragraph hereinafter provided. However,

the Arbitrator or the Commission may on his or its own motion,

or on the motion of either party, correct any clerical error or

errors in computation within 15 days after the date of receipt

of any award by such Arbitrator or any decision on review of

the Commission, and shall have the power to recall the original

award on arbitration or decision on review, and issue in lieu

thereof such corrected award or decision. Where such correction

is made the time for review herein specified shall begin to run

from the date of the receipt of the corrected award or

decision.

(1) Except in cases of claims against the State of

Illinois, in which case the decision of the Commission

shall not be subject to judicial review, the Circuit Court

of the county where any of the parties defendant may be

found, or if none of the parties defendant be found in this

State then the Circuit Court of the county where any of the

exposure occurred, shall by summons to the Commission have

power to review all questions of law and fact presented by

such record.

A proceeding for review shall be commenced within 20

days of the receipt of notice of the decision of the

Commission. The summons shall be issued by the clerk of

such court upon written request returnable on a designated

return day, not less than 10 or more than 60 days from the

date of issuance thereof, and the written request shall

contain the last known address of other parties in interest

and their attorneys of record who are to be served by

summons. Service upon any member of the Commission or the

Secretary or the Assistant Secretary thereof shall be

service upon the Commission, and service upon other parties

in interest and their attorneys of record shall be by

summons, and such service shall be made upon the Commission

and other parties in interest by mailing notices of the

commencement of the proceedings and the return day of the

summons to the office of the Commission and to the last

known place of residence of other parties in interest or

their attorney or attorneys of record. The clerk of the

court issuing the summons shall on the day of issue mail

notice of the commencement of the proceedings which shall

be done by mailing a copy of the summons to the office of

the Commission, and a copy of the summons to the other

parties in interest or their attorney or attorneys of

record and the clerk of the court shall make certificate

that he has so sent such notices in pursuance of this

Section, which shall be evidence of service on the

Commission and other parties in interest.

The Commission shall not be required to certify the

record of their proceedings in the Circuit Court unless the

party commencing the proceedings for review in the Circuit

Court as above provided, shall pay to the Commission the

sum of 80 cents per page of testimony taken before the

Commission, and 35 cents per page of all other matters

contained in such record, except as otherwise provided by

Section 20 of this Act. Payment for photostatic copies of

exhibit shall be extra. It shall be the duty of the

Commission upon such payment, or failure to pay as

permitted under Section 20 of this Act, to prepare a true

and correct typewritten copy of such testimony and a true

and correct copy of all other matters contained in such

record and certified to by the Secretary or Assistant

Secretary thereof.

In its decision on review the Commission shall

determine in each particular case the amount of the

probable cost of the record to be filed as a return to the

summons in that case and no request for a summons may be

filed and no summons shall issue unless the party seeking

to review the decision of the Commission shall exhibit to

the clerk of the Circuit Court proof of payment by filing a

receipt showing payment or an affidavit of the attorney

setting forth that payment has been made of the sums so

determined to the Secretary or Assistant Secretary of the

Commission.

(2) No such summons shall issue unless the one against

whom the Commission shall have rendered an award for the

payment of money shall upon the filing of his written

request for such summons file with the clerk of the court a

bond conditioned that if he shall not successfully

prosecute the review, he will pay the award and the costs

of the proceedings in the court. The amount of the bond

shall be fixed by any member of the Commission and the

surety or sureties of the bond shall be approved by the

clerk of the court. The acceptance of the bond by the clerk

of the court shall constitute evidence of his approval of

the bond.

Every county, city, town, township, incorporated

village, school district, body politic or municipal

corporation having a population of 500,000 or more against

whom the Commission shall have rendered an award for the

payment of money shall not be required to file a bond to

secure the payment of the award and the costs of the

proceedings in the court to authorize the court to issue

such summons.

The court may confirm or set aside the decision of the

Commission. If the decision is set aside and the facts

found in the proceedings before the Commission are

sufficient, the court may enter such decision as is

justified by law, or may remand the cause to the Commission

for further proceedings and may state the questions

requiring further hearing, and give such other

instructions as may be proper. Appeals shall be taken to

the Industrial Commission Division of the Appellate Court

in accordance with Supreme Court Rules 22(g) and 303.

Appeals shall be taken from the Industrial Commission

Division of the Appellate Court to the Supreme Court in

accordance with Supreme Court Rule 315.

It shall be the duty of the clerk of any court

rendering a decision affecting or affirming an award of the

Commission to promptly furnish the Commission with a copy

of such decision, without charge.

The decision of a majority of the members of the panel

of the Commission, shall be considered the decision of the

Commission.

(g) Except in the case of a claim against the State of

Illinois, either party may present a certified copy of the

award of the Arbitrator, or a certified copy of the decision of

the Commission when the same has become final, when no

proceedings for review are pending, providing for the payment

of compensation according to this Act, to the Circuit Court of

the county in which such exposure occurred or either of the

parties are residents, whereupon the court shall enter a

judgment in accordance therewith. In case where the employer

refuses to pay compensation according to such final award or

such final decision upon which such judgment is entered, the

court shall in entering judgment thereon, tax as costs against

him the reasonable costs and attorney fees in the arbitration

proceedings and in the court entering the judgment for the

person in whose favor the judgment is entered, which judgment

and costs taxed as herein provided shall, until and unless set

aside, have the same effect as though duly entered in an action

duly tried and determined by the court, and shall with like

effect, be entered and docketed. The Circuit Court shall have

power at any time upon application to make any such judgment

conform to any modification required by any subsequent decision

of the Supreme Court upon appeal, or as the result of any

subsequent proceedings for review, as provided in this Act.

Judgment shall not be entered until 15 days' notice of the

time and place of the application for the entry of judgment

shall be served upon the employer by filing such notice with

the Commission, which Commission shall, in case it has on file

the address of the employer or the name and address of its

agent upon whom notices may be served, immediately send a copy

of the notice to the employer or such designated agent.

(h) An agreement or award under this Act providing for

compensation in installments, may at any time within 18 months

after such agreement or award be reviewed by the Commission at

the request of either the employer or the employee on the

ground that the disability of the employee has subsequently

recurred, increased, diminished or ended.

However, as to disablements occurring subsequently to July

1, 1955, which are covered by any agreement or award under this

Act providing for compensation in installments made as a result

of such disablement, such agreement or award may at any time

within 30 months after such agreement or award be reviewed by

the Commission at the request of either the employer or the

employee on the ground that the disability of the employee has

subsequently recurred, increased, diminished or ended.

On such review compensation payments may be

re-established, increased, diminished or ended. The Commission

shall give 15 days' notice to the parties of the hearing for

review. Any employee, upon any petition for such review being

filed by the employer, shall be entitled to one day's notice

for each 100 miles necessary to be traveled by him in attending

the hearing of the Commission upon the petition, and 3 days in

addition thereto. Such employee shall, at the discretion of the

Commission, also be entitled to 5 cents per mile necessarily

traveled by him within the State of Illinois in attending such

hearing, not to exceed a distance of 300 miles, to be taxed by

the Commission as costs and deposited with the petition of the

employer.

When compensation which is payable in accordance with an

award or settlement contract approved by the Commission, is

ordered paid in a lump sum by the Commission, no review shall

be had as in this paragraph mentioned.

(i) Each party, upon taking any proceedings or steps

whatsoever before any Arbitrator, Commission or court, shall

file with the Commission his address, or the name and address

of any agent upon whom all notices to be given to such party

shall be served, either personally or by registered mail,

addressed to such party or agent at the last address so filed

with the Commission. In the event such party has not filed his

address, or the name and address of an agent as above provided,

service of any notice may be had by filing such notice with the

Commission.

(j) Whenever in any proceeding testimony has been taken or

a final decision has been rendered, and after the taking of

such testimony or after such decision has become final, the

employee dies, then in any subsequent proceeding brought by the

personal representative or beneficiaries of the deceased

employee, such testimony in the former proceeding may be

introduced with the same force and effect as though the witness

having so testified were present in person in such subsequent

proceedings and such final decision, if any, shall be taken as

final adjudication of any of the issues which are the same in

both proceedings.

(k) In any case where there has been any unreasonable or

vexatious delay of payment or intentional underpayment of

compensation, or proceedings have been instituted or carried on

by one liable to pay the compensation, which do not present a

real controversy, but are merely frivolous or for delay, then

the Commission may award compensation additional to that

otherwise payable under this Act equal to 50% of the amount

payable at the time of such award. Failure to pay compensation

in accordance with the provisions of Section 8, paragraph (b)

of this Act, shall be considered unreasonable delay.

(l) By the 15th day of each month each insurer providing

coverage for losses under this Act shall notify each insured

employer of any compensable claim incurred during the preceding

month and the amounts paid or reserved on the claim including a

summary of the claim and a brief statement of the reasons for

compensability. A cumulative report of all claims incurred

during a calendar year or continued from the previous year

shall be furnished to the insured employer by the insurer

within 30 days after the end of that calendar year.

The insured employer may challenge, in proceeding before

the Commission, payments made by the insurer without

arbitration and payments made after a case is determined to be

noncompensable. If the Commission finds that the case was not

compensable, the insurer shall purge its records as to that

employer of any loss or expense associated with the claim,

reimburse the employer for attorneys fee arising from the

challenge and for any payment required of the employer to the

Rate Adjustment Fund or the Second Injury Fund, and may not

effect the loss or expense for rate making purposes. The

employee shall not be required to refund the challenged

payment. The decision of the Commission may be reviewed in the

same manner as in arbitrated cases. No challenge may be

initiated under this paragraph more than 3 years after the

payment is made. An employer may waive the right of challenge

under this paragraph on a case by case basis.

(m) After filing an application for adjustment of claim but

prior to the hearing on arbitration the parties may voluntarily

agree to submit such application for adjustment of claim for

decision by an arbitrator under this subsection (m) where such

application for adjustment of claim raises only a dispute over

temporary total disability, permanent partial disability or

medical expenses. Such agreement shall be in writing in such

form as provided by the Commission. Applications for adjustment

of claim submitted for decision by an arbitrator under this

subsection (m) shall proceed according to rule as established

by the Commission. The Commission shall promulgate rules

including, but not limited to, rules to ensure that the parties

are adequately informed of their rights under this subsection

(m) and of the voluntary nature of proceedings under this

subsection (m). The findings of fact made by an arbitrator

acting within his or her powers under this subsection (m) in

the absence of fraud shall be conclusive. However, the

arbitrator may on his own motion, or the motion of either

party, correct any clerical errors or errors in computation

within 15 days after the date of receipt of such award of the

arbitrator and shall have the power to recall the original

award on arbitration, and issue in lieu thereof such corrected

award. The decision of the arbitrator under this subsection (m)

shall be considered the decision of the Commission and

proceedings for review of questions of law arising from the

decision may be commenced by either party pursuant to

subsection (f) of Section 19. The Advisory Board established

under Section 13.1 of the Workers' Compensation Act shall

compile a list of certified Commission arbitrators, each of

whom shall be approved by at least 7 members of the Advisory

Board. The chairman shall select 5 persons from such list to

serve as arbitrators under this subsection (m). By agreement,

the parties shall select one arbitrator from among the 5

persons selected by the chairman except, that if the parties do

not agree on an arbitrator from among the 5 persons, the

parties may, by agreement, select an arbitrator of the American

Arbitration Association, whose fee shall be paid by the State

in accordance with rules promulgated by the Commission.

Arbitration under this subsection (m) shall be voluntary.

(Source: P.A. 86-998; 87-435.)

(820 ILCS 310/23) (from Ch. 48, par. 172.58)

Sec. 23. No employee, personal representative, or

beneficiary shall have power to waive any of the provisions of

this Act in regard to the amount of compensation which may be

payable to such employee, personal representative or

beneficiary hereunder except after approval by the Commission,

and any employer, individually, or by his agent, service

company, or insurance carrier who shall enter into an agreement

purporting to compromise or settle the compensation rights of

an employee, personal representative or beneficiary without

first obtaining the approval of the Illinois Workers'

Compensation Industrial Commission as aforesaid shall be

barred from raising the defense of limitation in any

proceedings subsequently brought by such employee, personal

representative or beneficiary.

A minor death beneficiary, by parent or grandparent as next

friend, may compromise disputes and may enter into and submit a

settlement contract or lump sum petition, and upon approval by

the Illinois Workers' Compensation Industrial Commission such

settlement contract or lump sum order shall have the same force

and effect as though such minor had been an adult.

(Source: P.A. 79-78.)

(820 ILCS 310/26) (from Ch. 48, par. 172.61)

Sec. 26. No repeal of any Act or part thereof herein

contained shall extinguish or in any way affect any right of

action thereunder, existing at the time this Act takes effect.

No employer shall be liable for compensation or damages under

this Act in any case in which the disablement on which claim is

predicated shall have occurred prior to the date this Act

becomes effective. Any claims, disagreement or controversy

existing or arising under "An Act to promote the general

welfare of the people of this state by providing remedies for

injuries suffered or death resulting from occupational

diseases incurred in the course of employment; providing for

enforcement and administration thereof, and to repeal an Act

and a part of a certain Act herein named", approved March 16,

1936, as amended, shall be adjusted in accordance with the

provisions of said Act, notwithstanding the repeal thereof, or

may by agreement of the parties be adjusted in accordance with

the method of procedure provided in this Act for the adjustment

of differences, jurisdiction to adjust such differences so

submitted by the parties being hereby conferred upon the

Commission. Nothing in this section shall affect any case in

which exposure as defined in this Act shall have taken place

after the effective date of this Act.

The Attorney General and the State's Attorney of each

county, upon request of the Illinois Workers' Compensation

Industrial Commission, shall enforce any penalties set forth in

this Act.

(Source: P.A. 83-1125.)

Section 80. The Unemployment Insurance Act is amended by

changing Section 1900 as follows:

(820 ILCS 405/1900) (from Ch. 48, par. 640)

Sec. 1900. Disclosure of information.

A. Except as provided in this Section, information obtained

from any individual or employing unit during the administration

of this Act shall:

1. be confidential,

2. not be published or open to public inspection,

3. not be used in any court in any pending action or

proceeding,

4. not be admissible in evidence in any action or

proceeding other than one arising out of this Act.

B. No finding, determination, decision, ruling or order

(including any finding of fact, statement or conclusion made

therein) issued pursuant to this Act shall be admissible or

used in evidence in any action other than one arising out of

this Act, nor shall it be binding or conclusive except as

provided in this Act, nor shall it constitute res judicata,

regardless of whether the actions were between the same or

related parties or involved the same facts.

C. Any officer or employee of this State, any officer or

employee of any entity authorized to obtain information

pursuant to this Section, and any agent of this State or of

such entity who, except with authority of the Director under

this Section, shall disclose information shall be guilty of a

Class B misdemeanor and shall be disqualified from holding any

appointment or employment by the State.

D. An individual or his duly authorized agent may be

supplied with information from records only to the extent

necessary for the proper presentation of his claim for benefits

or with his existing or prospective rights to benefits.

Discretion to disclose this information belongs solely to the

Director and is not subject to a release or waiver by the

individual. Notwithstanding any other provision to the

contrary, an individual or his or her duly authorized agent may

be supplied with a statement of the amount of benefits paid to

the individual during the 18 months preceding the date of his

or her request.

E. An employing unit may be furnished with information,

only if deemed by the Director as necessary to enable it to

fully discharge its obligations or safeguard its rights under

the Act. Discretion to disclose this information belongs solely

to the Director and is not subject to a release or waiver by

the employing unit.

F. The Director may furnish any information that he may

deem proper to any public officer or public agency of this or

any other State or of the federal government dealing with:

1. the administration of relief,

2. public assistance,

3. unemployment compensation,

4. a system of public employment offices,

5. wages and hours of employment, or

6. a public works program.

The Director may make available to the Illinois Workers'

Compensation Industrial Commission information regarding

employers for the purpose of verifying the insurance coverage

required under the Workers' Compensation Act and Workers'

Occupational Diseases Act.

G. The Director may disclose information submitted by the

State or any of its political subdivisions, municipal

corporations, instrumentalities, or school or community

college districts, except for information which specifically

identifies an individual claimant.

H. The Director shall disclose only that information

required to be disclosed under Section 303 of the Social

Security Act, as amended, including:

1. any information required to be given the United

States Department of Labor under Section 303(a)(6); and

2. the making available upon request to any agency of

the United States charged with the administration of public

works or assistance through public employment, the name,

address, ordinary occupation and employment status of each

recipient of unemployment compensation, and a statement of

such recipient's right to further compensation under such

law as required by Section 303(a)(7); and

3. records to make available to the Railroad Retirement

Board as required by Section 303(c)(1); and

4. information that will assure reasonable cooperation

with every agency of the United States charged with the

administration of any unemployment compensation law as

required by Section 303(c)(2); and

5. information upon request and on a reimbursable basis

to the United States Department of Agriculture and to any

State food stamp agency concerning any information

required to be furnished by Section 303(d); and

6. any wage information upon request and on a

reimbursable basis to any State or local child support

enforcement agency required by Section 303(e); and

7. any information required under the income

eligibility and verification system as required by Section

303(f); and

8. information that might be useful in locating an

absent parent or that parent's employer, establishing

paternity or establishing, modifying, or enforcing child

support orders for the purpose of a child support

enforcement program under Title IV of the Social Security

Act upon the request of and on a reimbursable basis to the

public agency administering the Federal Parent Locator

Service as required by Section 303(h); and

9. information, upon request, to representatives of

any federal, State or local governmental public housing

agency with respect to individuals who have signed the

appropriate consent form approved by the Secretary of

Housing and Urban Development and who are applying for or

participating in any housing assistance program

administered by the United States Department of Housing and

Urban Development as required by Section 303(i).

I. The Director, upon the request of a public agency of

Illinois, of the federal government or of any other state

charged with the investigation or enforcement of Section 10-5

of the Criminal Code of 1961 (or a similar federal law or

similar law of another State), may furnish the public agency

information regarding the individual specified in the request

as to:

1. the current or most recent home address of the

individual, and

2. the names and addresses of the individual's

employers.

J. Nothing in this Section shall be deemed to interfere

with the disclosure of certain records as provided for in

Section 1706 or with the right to make available to the

Internal Revenue Service of the United States Department of the

Treasury, or the Department of Revenue of the State of

Illinois, information obtained under this Act.

K. The Department shall make available to the Illinois

Student Assistance Commission, upon request, information in

the possession of the Department that may be necessary or

useful to the Commission in the collection of defaulted or

delinquent student loans which the Commission administers.

L. The Department shall make available to the State

Employees' Retirement System, the State Universities

Retirement System, and the Teachers' Retirement System of the

State of Illinois, upon request, information in the possession

of the Department that may be necessary or useful to the System

for the purpose of determining whether any recipient of a

disability benefit from the System is gainfully employed.

M. This Section shall be applicable to the information

obtained in the administration of the State employment service,

except that the Director may publish or release general labor

market information and may furnish information that he may deem

proper to an individual, public officer or public agency of

this or any other State or the federal government (in addition

to those public officers or public agencies specified in this

Section) as he prescribes by Rule.

N. The Director may require such safeguards as he deems

proper to insure that information disclosed pursuant to this

Section is used only for the purposes set forth in this

Section.

O. (Blank).

P. Within 30 days after the effective date of this

amendatory Act of 1993 and annually thereafter, the Department

shall provide to the Department of Financial Institutions a

list of individuals or entities that, for the most recently

completed calendar year, report to the Department as paying

wages to workers. The lists shall be deemed confidential and

may not be disclosed to any other person.

Q. The Director shall make available to an elected federal

official the name and address of an individual or entity that

is located within the jurisdiction from which the official was

elected and that, for the most recently completed calendar

year, has reported to the Department as paying wages to

workers, where the information will be used in connection with

the official duties of the official and the official requests

the information in writing, specifying the purposes for which

it will be used. For purposes of this subsection, the use of

information in connection with the official duties of an

official does not include use of the information in connection

with the solicitation of contributions or expenditures, in

money or in kind, to or on behalf of a candidate for public or

political office or a political party or with respect to a

public question, as defined in Section 1-3 of the Election

Code, or in connection with any commercial solicitation. Any

elected federal official who, in submitting a request for

information covered by this subsection, knowingly makes a false

statement or fails to disclose a material fact, with the intent

to obtain the information for a purpose not authorized by this

subsection, shall be guilty of a Class B misdemeanor.

R. The Director may provide to any State or local child

support agency, upon request and on a reimbursable basis,

information that might be useful in locating an absent parent

or that parent's employer, establishing paternity, or

establishing, modifying, or enforcing child support orders.

S. The Department shall make available to a State's

Attorney of this State or a State's Attorney's investigator,

upon request, the current address or, if the current address is

unavailable, current employer information, if available, of a

victim of a felony or a witness to a felony or a person against

whom an arrest warrant is outstanding.

(Source: P.A. 93-311, eff. 1-1-04.)