Public Act 096-0928
 
SB3288 Enrolled LRB096 16578 JAM 31852 b

    AN ACT concerning State government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Department of Central Management Services
Law of the Civil Administrative Code of Illinois is amended by
changing Section 405-105 as follows:
 
    (20 ILCS 405/405-105)  (was 20 ILCS 405/64.1)
    Sec. 405-105. Fidelity, surety, property, and casualty
insurance. The Department shall establish and implement a
program to coordinate the handling of all fidelity, surety,
property, and casualty insurance exposures of the State and the
departments, divisions, agencies, branches, and universities
of the State. In performing this responsibility, the Department
shall have the power and duty to do the following:
    (1) Develop and maintain loss and exposure data on all
State property.
    (2) Study the feasibility of establishing a self-insurance
plan for State property and prepare estimates of the costs of
reinsurance for risks beyond the realistic limits of the
self-insurance.
    (3) Prepare a plan for centralizing the purchase of
property and casualty insurance on State property under a
master policy or policies and purchase the insurance contracted
for as provided in the Illinois Purchasing Act.
    (4) Evaluate existing provisions for fidelity bonds
required of State employees and recommend changes that are
appropriate commensurate with risk experience and the
determinations respecting self-insurance or reinsurance so as
to permit reduction of costs without loss of coverage.
    (5) Investigate procedures for inclusion of school
districts, public community college districts, and other units
of local government in programs for the centralized purchase of
insurance.
    (6) Implement recommendations of the State Property
Insurance Study Commission that the Department finds necessary
or desirable in the performance of its powers and duties under
this Section to achieve efficient and comprehensive risk
management.
    (7) Prepare and, in the discretion of the Director,
implement a plan providing for the purchase of public liability
insurance or for self-insurance for public liability or for a
combination of purchased insurance and self-insurance for
public liability (i) covering the State and drivers of motor
vehicles owned, leased, or controlled by the State of Illinois
pursuant to the provisions and limitations contained in the
Illinois Vehicle Code, (ii) covering other public liability
exposures of the State and its employees within the scope of
their employment, and (iii) covering drivers of motor vehicles
not owned, leased, or controlled by the State but used by a
State employee on State business, in excess of liability
covered by an insurance policy obtained by the owner of the
motor vehicle or in excess of the dollar amounts that the
Department shall determine to be reasonable. Any contract of
insurance let under this Law shall be by bid in accordance with
the procedure set forth in the Illinois Purchasing Act. Any
provisions for self-insurance shall conform to subdivision
(11).
    The term "employee" as used in this subdivision (7) and in
subdivision (11) means a person while in the employ of the
State who is a member of the staff or personnel of a State
agency, bureau, board, commission, committee, department,
university, or college or who is a State officer, elected
official, commissioner, member of or ex officio member of a
State agency, bureau, board, commission, committee,
department, university, or college, or a member of the National
Guard while on active duty pursuant to orders of the Governor
of the State of Illinois, or any other person while using a
licensed motor vehicle owned, leased, or controlled by the
State of Illinois with the authorization of the State of
Illinois, provided the actual use of the motor vehicle is
within the scope of that authorization and within the course of
State service.
    Subsequent to payment of a claim on behalf of an employee
pursuant to this Section and after reasonable advance written
notice to the employee, the Director may exclude the employee
from future coverage or limit the coverage under the plan if
(i) the Director determines that the claim resulted from an
incident in which the employee was grossly negligent or had
engaged in willful and wanton misconduct or (ii) the Director
determines that the employee is no longer an acceptable risk
based on a review of prior accidents in which the employee was
at fault and for which payments were made pursuant to this
Section.
    The Director is authorized to promulgate administrative
rules that may be necessary to establish and administer the
plan.
    Appropriations from the Road Fund shall be used to pay auto
liability claims and related expenses involving employees of
the Department of Transportation, the Illinois State Police,
and the Secretary of State.
    (8) Charge, collect, and receive from all other agencies of
the State government fees or monies equivalent to the cost of
purchasing the insurance.
    (9) Establish, through the Director, charges for risk
management services rendered to State agencies by the
Department. The State agencies so charged shall reimburse the
Department by vouchers drawn against their respective
appropriations. The reimbursement shall be determined by the
Director as amounts sufficient to reimburse the Department for
expenditures incurred in rendering the service.
    The Department shall charge the employing State agency or
university for workers' compensation payments for temporary
total disability paid to any employee after the employee has
received temporary total disability payments for 120 days if
the employee's treating physician has issued a release to
return to work with restrictions and the employee is able to
perform modified duty work but the employing State agency or
university does not return the employee to work at modified
duty. Modified duty shall be duties assigned that may or may
not be delineated as part of the duties regularly performed by
the employee. Modified duties shall be assigned within the
prescribed restrictions established by the treating physician
and the physician who performed the independent medical
examination. The amount of all reimbursements shall be
deposited into the Workers' Compensation Revolving Fund which
is hereby created as a revolving fund in the State treasury. In
addition to any other purpose authorized by law, moneys in the
Fund shall be used, subject to appropriation, to pay these or
other temporary total disability claims of employees of State
agencies and universities.
    Beginning with fiscal year 1996, all amounts recovered by
the Department through subrogation in workers' compensation
and workers' occupational disease cases shall be deposited into
the Workers' Compensation Revolving Fund created under this
subdivision (9).
    (10) Establish rules, procedures, and forms to be used by
State agencies in the administration and payment of workers'
compensation claims. The Department shall initially evaluate
and determine the compensability of any injury that is the
subject of a workers' compensation claim and provide for the
administration and payment of such a claim for all State
agencies. The Director may delegate to any agency with the
agreement of the agency head the responsibility for evaluation,
administration, and payment of that agency's claims.
    (11) Any plan for public liability self-insurance
implemented under this Section shall provide that (i) the
Department shall attempt to settle and may settle any public
liability claim filed against the State of Illinois or any
public liability claim filed against a State employee on the
basis of an occurrence in the course of the employee's State
employment; (ii) any settlement of such a claim is not subject
to fiscal year limitations and must be approved by the Director
and, in cases of settlements exceeding $100,000, by the
Governor; and (iii) a settlement of any public liability claim
against the State or a State employee shall require an
unqualified release of any right of action against the State
and the employee for acts within the scope of the employee's
employment giving rise to the claim.
    Whenever and to the extent that a State employee operates a
motor vehicle or engages in other activity covered by
self-insurance under this Section, the State of Illinois shall
defend, indemnify, and hold harmless the employee against any
claim in tort filed against the employee for acts or omissions
within the scope of the employee's employment in any proper
judicial forum and not settled pursuant to this subdivision
(11), provided that this obligation of the State of Illinois
shall not exceed a maximum liability of $2,000,000 for any
single occurrence in connection with the operation of a motor
vehicle or $100,000 per person per occurrence for any other
single occurrence, or $500,000 for any single occurrence in
connection with the provision of medical care by a licensed
physician employee.
    Any claims against the State of Illinois under a
self-insurance plan that are not settled pursuant to this
subdivision (11) shall be heard and determined by the Court of
Claims and may not be filed or adjudicated in any other forum.
The Attorney General of the State of Illinois or the Attorney
General's designee shall be the attorney with respect to all
public liability self-insurance claims that are not settled
pursuant to this subdivision (11) and therefore result in
litigation. The payment of any award of the Court of Claims
entered against the State relating to any public liability
self-insurance claim shall act as a release against any State
employee involved in the occurrence.
    (12) Administer a plan the purpose of which is to make
payments on final settlements or final judgments in accordance
with the State Employee Indemnification Act. The plan shall be
funded through appropriations from the General Revenue Fund
specifically designated for that purpose, except that
indemnification expenses for employees of the Department of
Transportation, the Illinois State Police, and the Secretary of
State shall be paid from the Road Fund. The term "employee" as
used in this subdivision (12) has the same meaning as under
subsection (b) of Section 1 of the State Employee
Indemnification Act. Subject to sufficient appropriation, the
Director shall approve payment of any claim, without regard to
fiscal year limitations, presented to the Director that is
supported by a final settlement or final judgment when the
Attorney General and the chief officer of the public body
against whose employee the claim or cause of action is asserted
certify to the Director that the claim is in accordance with
the State Employee Indemnification Act and that they approve of
the payment. In no event shall an amount in excess of $150,000
be paid from this plan to or for the benefit of any claimant.
    (13) Administer a plan the purpose of which is to make
payments on final settlements or final judgments for employee
wage claims in situations where there was an appropriation
relevant to the wage claim, the fiscal year and lapse period
have expired, and sufficient funds were available to pay the
claim. The plan shall be funded through appropriations from the
General Revenue Fund specifically designated for that purpose.
    Subject to sufficient appropriation, the Director is
authorized to pay any wage claim presented to the Director that
is supported by a final settlement or final judgment when the
chief officer of the State agency employing the claimant
certifies to the Director that the claim is a valid wage claim
and that the fiscal year and lapse period have expired. Payment
for claims that are properly submitted and certified as valid
by the Director shall include interest accrued at the rate of
7% per annum from the forty-fifth day after the claims are
received by the Department or 45 days from the date on which
the amount of payment is agreed upon, whichever is later, until
the date the claims are submitted to the Comptroller for
payment. When the Attorney General has filed an appearance in
any proceeding concerning a wage claim settlement or judgment,
the Attorney General shall certify to the Director that the
wage claim is valid before any payment is made. In no event
shall an amount in excess of $150,000 be paid from this plan to
or for the benefit of any claimant.
    Nothing in Public Act 84-961 shall be construed to affect
in any manner the jurisdiction of the Court of Claims
concerning wage claims made against the State of Illinois.
    (14) Prepare and, in the discretion of the Director,
implement a program for self-insurance for official fidelity
and surety bonds for officers and employees as authorized by
the Official Bond Act.
(Source: P.A. 93-839, eff. 7-30-04.)
 
    Section 10. The State Finance Act is amended by changing
Section 25 as follows:
 
    (30 ILCS 105/25)  (from Ch. 127, par. 161)
    Sec. 25. Fiscal year limitations.
    (a) All appropriations shall be available for expenditure
for the fiscal year or for a lesser period if the Act making
that appropriation so specifies. A deficiency or emergency
appropriation shall be available for expenditure only through
June 30 of the year when the Act making that appropriation is
enacted unless that Act otherwise provides.
    (b) Outstanding liabilities as of June 30, payable from
appropriations which have otherwise expired, may be paid out of
the expiring appropriations during the 2-month period ending at
the close of business on August 31. Any service involving
professional or artistic skills or any personal services by an
employee whose compensation is subject to income tax
withholding must be performed as of June 30 of the fiscal year
in order to be considered an "outstanding liability as of June
30" that is thereby eligible for payment out of the expiring
appropriation.
    However, payment of tuition reimbursement claims under
Section 14-7.03 or 18-3 of the School Code may be made by the
State Board of Education from its appropriations for those
respective purposes for any fiscal year, even though the claims
reimbursed by the payment may be claims attributable to a prior
fiscal year, and payments may be made at the direction of the
State Superintendent of Education from the fund from which the
appropriation is made without regard to any fiscal year
limitations.
    Medical payments may be made by the Department of Veterans'
Affairs from its appropriations for those purposes for any
fiscal year, without regard to the fact that the medical
services being compensated for by such payment may have been
rendered in a prior fiscal year.
    Medical payments may be made by the Department of
Healthcare and Family Services and medical payments and child
care payments may be made by the Department of Human Services
(as successor to the Department of Public Aid) from
appropriations for those purposes for any fiscal year, without
regard to the fact that the medical or child care services
being compensated for by such payment may have been rendered in
a prior fiscal year; and payments may be made at the direction
of the Department of Central Management Services from the
Health Insurance Reserve Fund and the Local Government Health
Insurance Reserve Fund without regard to any fiscal year
limitations.
    Medical payments may be made by the Department of Human
Services from its appropriations relating to substance abuse
treatment services for any fiscal year, without regard to the
fact that the medical services being compensated for by such
payment may have been rendered in a prior fiscal year, provided
the payments are made on a fee-for-service basis consistent
with requirements established for Medicaid reimbursement by
the Department of Healthcare and Family Services.
    Additionally, payments may be made by the Department of
Human Services from its appropriations, or any other State
agency from its appropriations with the approval of the
Department of Human Services, from the Immigration Reform and
Control Fund for purposes authorized pursuant to the
Immigration Reform and Control Act of 1986, without regard to
any fiscal year limitations.
    Further, with respect to costs incurred in fiscal years
2002 and 2003 only, payments may be made by the State Treasurer
from its appropriations from the Capital Litigation Trust Fund
without regard to any fiscal year limitations.
    Lease payments may be made by the Department of Central
Management Services under the sale and leaseback provisions of
Section 7.4 of the State Property Control Act with respect to
the James R. Thompson Center and the Elgin Mental Health Center
and surrounding land from appropriations for that purpose
without regard to any fiscal year limitations.
    Lease payments may be made under the sale and leaseback
provisions of Section 7.5 of the State Property Control Act
with respect to the Illinois State Toll Highway Authority
headquarters building and surrounding land without regard to
any fiscal year limitations.
    Payments may be made in accordance with a plan authorized
by paragraph (11) or (12) of Section 405-105 of the Department
of Central Management Services Law from appropriations for
those payments without regard to fiscal year limitations.
    (c) Further, payments may be made by the Department of
Public Health and the Department of Human Services (acting as
successor to the Department of Public Health under the
Department of Human Services Act) from their respective
appropriations for grants for medical care to or on behalf of
persons suffering from chronic renal disease, persons
suffering from hemophilia, rape victims, and premature and
high-mortality risk infants and their mothers and for grants
for supplemental food supplies provided under the United States
Department of Agriculture Women, Infants and Children
Nutrition Program, for any fiscal year without regard to the
fact that the services being compensated for by such payment
may have been rendered in a prior fiscal year.
    (d) The Department of Public Health and the Department of
Human Services (acting as successor to the Department of Public
Health under the Department of Human Services Act) shall each
annually submit to the State Comptroller, Senate President,
Senate Minority Leader, Speaker of the House, House Minority
Leader, and the respective Chairmen and Minority Spokesmen of
the Appropriations Committees of the Senate and the House, on
or before December 31, a report of fiscal year funds used to
pay for services provided in any prior fiscal year. This report
shall document by program or service category those
expenditures from the most recently completed fiscal year used
to pay for services provided in prior fiscal years.
    (e) The Department of Healthcare and Family Services, the
Department of Human Services (acting as successor to the
Department of Public Aid), and the Department of Human Services
making fee-for-service payments relating to substance abuse
treatment services provided during a previous fiscal year shall
each annually submit to the State Comptroller, Senate
President, Senate Minority Leader, Speaker of the House, House
Minority Leader, the respective Chairmen and Minority
Spokesmen of the Appropriations Committees of the Senate and
the House, on or before November 30, a report that shall
document by program or service category those expenditures from
the most recently completed fiscal year used to pay for (i)
services provided in prior fiscal years and (ii) services for
which claims were received in prior fiscal years.
    (f) The Department of Human Services (as successor to the
Department of Public Aid) shall annually submit to the State
Comptroller, Senate President, Senate Minority Leader, Speaker
of the House, House Minority Leader, and the respective
Chairmen and Minority Spokesmen of the Appropriations
Committees of the Senate and the House, on or before December
31, a report of fiscal year funds used to pay for services
(other than medical care) provided in any prior fiscal year.
This report shall document by program or service category those
expenditures from the most recently completed fiscal year used
to pay for services provided in prior fiscal years.
    (g) In addition, each annual report required to be
submitted by the Department of Healthcare and Family Services
under subsection (e) shall include the following information
with respect to the State's Medicaid program:
        (1) Explanations of the exact causes of the variance
    between the previous year's estimated and actual
    liabilities.
        (2) Factors affecting the Department of Healthcare and
    Family Services' liabilities, including but not limited to
    numbers of aid recipients, levels of medical service
    utilization by aid recipients, and inflation in the cost of
    medical services.
        (3) The results of the Department's efforts to combat
    fraud and abuse.
    (h) As provided in Section 4 of the General Assembly
Compensation Act, any utility bill for service provided to a
General Assembly member's district office for a period
including portions of 2 consecutive fiscal years may be paid
from funds appropriated for such expenditure in either fiscal
year.
    (i) An agency which administers a fund classified by the
Comptroller as an internal service fund may issue rules for:
        (1) billing user agencies in advance for payments or
    authorized inter-fund transfers based on estimated charges
    for goods or services;
        (2) issuing credits, refunding through inter-fund
    transfers, or reducing future inter-fund transfers during
    the subsequent fiscal year for all user agency payments or
    authorized inter-fund transfers received during the prior
    fiscal year which were in excess of the final amounts owed
    by the user agency for that period; and
        (3) issuing catch-up billings to user agencies during
    the subsequent fiscal year for amounts remaining due when
    payments or authorized inter-fund transfers received from
    the user agency during the prior fiscal year were less than
    the total amount owed for that period.
User agencies are authorized to reimburse internal service
funds for catch-up billings by vouchers drawn against their
respective appropriations for the fiscal year in which the
catch-up billing was issued or by increasing an authorized
inter-fund transfer during the current fiscal year. For the
purposes of this Act, "inter-fund transfers" means transfers
without the use of the voucher-warrant process, as authorized
by Section 9.01 of the State Comptroller Act.
(Source: P.A. 95-331, eff. 8-21-07.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.