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1    AN ACT concerning government.

 
2    Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly: 




 
 
4    Section 5. The Department of Central Management Services 
5Law of the
Civil Administrative Code of Illinois is amended  by 
6changing Section 405-105 as follows:
 



7    (20 ILCS 405/405-105)  (was 20 ILCS 405/64.1)



8    Sec. 405-105. Fidelity, surety, property, and casualty 
9insurance. The Department
shall establish and implement a 
10program to coordinate
the handling of all fidelity, surety, 
11property, and casualty insurance
exposures of the State and the 
12departments, divisions, agencies,
branches,
and universities 
13of the State.  In performing this responsibility, the
Department 
14shall have the power and duty to do the following:

15        (1) Develop and maintain loss and exposure data on all 
16    State
property.

17        (2) Study the feasibility of establishing a 
18    self-insurance plan
for
State property and prepare 
19    estimates of the costs of reinsurance for
risks beyond the 
20    realistic limits of the self-insurance.

21        (3) Prepare a plan for centralizing the purchase of 
22    property and
casualty insurance on State property under a 
23    master policy or policies
and purchase the insurance 
 
 
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1    contracted for as provided in the
Illinois Purchasing Act.

2        (4) Evaluate existing provisions for fidelity bonds 
3    required of
State employees and recommend changes that are 
4    appropriate
commensurate with risk experience and the 
5    determinations respecting
self-insurance or reinsurance so 
6    as to permit reduction of costs without
loss of coverage.

7        (5) Investigate procedures for inclusion of school 
8    districts,
public community
college districts, and other 
9    units of local government in programs for
the centralized 
10    purchase of insurance.

11        (6) Implement recommendations of the State Property

12    Insurance
Study Commission that the Department finds 
13    necessary or desirable in
the
performance of its powers and 
14    duties under this Section to achieve
efficient and 
15    comprehensive risk management.

16        (7) Prepare, and, in the discretion of the Director, 
17    implement, and, by April 1, 2011, reduce to writing and 
18    make available on its website a  plan providing for the 
19    purchase of public
liability insurance or for 
20    self-insurance for public liability or for a
combination of 
21    purchased  insurance and self-insurance for public

22    liability (i) covering the State and drivers of motor 
23    vehicles
owned,
leased, or controlled by the State of 
24    Illinois pursuant to the provisions
and limitations 
25    contained in the Illinois Vehicle Code, (ii)
covering
other 
26    public liability exposures of the State and its employees 
 
 
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1    within
the scope of their employment, and (iii) covering 
2    drivers of motor
vehicles not owned, leased, or controlled 
3    by the State but used by a
State employee on State 
4    business, in excess of liability covered by an
insurance 
5    policy obtained by the owner of the motor vehicle or in

6    excess of the dollar amounts that the Department shall

7    determine to be
reasonable.  Any contract of insurance let 
8    under this Law shall be
by
bid in accordance with the 
9    procedure set forth in the Illinois
Purchasing Act.  Any 
10    provisions for self-insurance shall conform to
subdivision 
11    (11).

12        The term "employee" as used in this subdivision (7) and 
13    in subdivision
(11)
means a person while in the employ of 
14    the State who is a member of the
staff or personnel of a 
15    State agency, bureau, board, commission,
committee, 
16    department, university, or college or who is a State 
17    officer,
elected official, commissioner, member of or ex 
18    officio member of a
State agency, bureau, board, 
19    commission, committee, department,
university, or college, 
20    or a member of the National Guard while on active
duty 
21    pursuant to orders of the Governor of the State of 
22    Illinois, or any
other person while using a licensed motor 
23    vehicle owned, leased, or
controlled by the State of 
24    Illinois with the authorization of the State
of Illinois, 
25    provided the actual use of the motor vehicle is
within the 
26    scope of that
authorization and within the course of State 
 
 
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1    service.

2        Subsequent to payment of a claim on behalf of an 
3    employee pursuant to this
Section and after reasonable 
4    advance written notice to the employee, the
Director may 
5    exclude the employee from future coverage or limit the

6    coverage under the plan if (i) the Director determines that 
7    the
claim
resulted from an incident in which the employee 
8    was grossly negligent or
had engaged in willful and wanton 
9    misconduct or (ii) the
Director
determines that the 
10    employee is no longer an acceptable risk based on a
review 
11    of prior accidents in which the employee was at fault and 
12    for which
payments were made pursuant to this Section.

13        The Director is authorized to
promulgate 
14    administrative rules that may be necessary to
establish and

15    administer the plan.

16        Appropriations from the Road Fund shall be used to pay 
17    auto liability claims
and related expenses involving 
18    employees of the Department of Transportation,
the 
19    Illinois State Police, and the Secretary of State.

20        (8) Charge, collect, and receive from all other 
21    agencies of
the State
government fees or monies equivalent 
22    to the cost of purchasing the insurance.

23        (9) Establish, through the Director, charges for risk

24    management
services
rendered to State agencies by the 
25    Department.
The State agencies so charged shall reimburse 
26    the Department by vouchers drawn
against their respective

 
 
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1    appropriations.  The reimbursement shall be determined by 
2    the Director as
amounts sufficient to reimburse the 
3    Department
for expenditures incurred in rendering the 
4    service.

5        The Department shall charge the
employing State agency 
6    or university for workers' compensation payments for

7    temporary total disability paid to any employee after the 
8    employee has
received temporary total disability payments 
9    for 120 days if the employee's
treating physician has 
10    issued a release to return to work with restrictions
and 
11    the employee is able to perform modified duty work but the 
12    employing
State agency or
university does not return the 
13    employee to work at modified duty.  Modified
duty shall be 
14    duties assigned that may or may not be delineated
as part 
15    of the duties regularly performed by the employee.  Modified 
16    duties
shall be assigned within the prescribed 
17    restrictions established by the
treating physician and the 
18    physician who performed the independent medical

19    examination.  The amount of all reimbursements
shall be 
20    deposited into the Workers' Compensation Revolving Fund 
21    which is
hereby created as a revolving fund in the State 
22    treasury.  In addition to any other purpose authorized by 
23    law, moneys in the Fund
shall be used, subject to 
24    appropriation, to pay these or other temporary
total 
25    disability claims of employees of State agencies and 
26    universities.

 
 
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1        Beginning with fiscal year 1996, all amounts recovered 
2    by the
Department through subrogation in workers' 
3    compensation and workers'
occupational disease cases shall 
4    be
deposited into the Workers' Compensation Revolving Fund 
5    created under
this subdivision (9).

6        (10) Establish rules, procedures, and forms to be used 
7    by
State agencies
in the administration and payment of 
8    workers' compensation claims.
The Department shall 
9    initially evaluate and determine the compensability of
any 
10    injury that is
the subject of a workers' compensation claim 
11    and provide for the
administration and payment of such a 
12    claim for all State agencies.  The
Director may delegate to 
13    any agency with the agreement of the agency head
the 
14    responsibility for evaluation, administration, and payment 
15    of that
agency's claims.

16        (11) Any plan for public liability self-insurance 
17    implemented
under this
Section shall provide that (i) the 
18    Department
shall attempt to settle and may settle any 
19    public liability claim filed
against the State of Illinois 
20    or any public liability claim filed
against a State 
21    employee on the basis of an occurrence in the course of
the 
22    employee's State employment; (ii) any settlement of
such a 
23    claim is not subject to fiscal year limitations and must be

24    approved by the Director and, in cases of
settlements 
25    exceeding $100,000, by the Governor; and (iii) a
settlement 
26    of
any public liability claim against the State or a State 
 
 
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1    employee shall
require an unqualified release of any right 
2    of action against the State
and the employee for acts 
3    within the scope of the employee's employment
giving rise 
4    to the claim.

5        Whenever and to the extent that a State
employee 
6    operates a  motor vehicle or engages in other activity 
7    covered
by self-insurance under this Section, the State of 
8    Illinois shall
defend, indemnify, and hold harmless the 
9    employee against any claim in
tort filed against the 
10    employee for acts or omissions within the scope
of the 
11    employee's employment in any proper judicial forum and not

12    settled pursuant
to this subdivision (11), provided that 
13    this obligation of
the State of
Illinois shall not exceed a 
14    maximum liability of $2,000,000 for any
single occurrence 
15    in connection with the operation of a motor vehicle or

16    $100,000 per person per occurrence for any other single 
17    occurrence,
or $500,000 for any single occurrence in 
18    connection with the provision of
medical care by a licensed 
19    physician employee.

20        Any
claims against the State of Illinois under a 
21    self-insurance plan that
are not settled pursuant to this 
22    subdivision (11) shall be
heard and
determined by the Court 
23    of  Claims and may not be filed or adjudicated
in any other 
24    forum.  The Attorney General of the State of Illinois or
the 
25    Attorney General's designee shall be the attorney with 
26    respect
to all public liability
self-insurance claims that 
 
 
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1    are not settled pursuant to this
subdivision (11)
and 
2    therefore result in litigation.  The payment of any award of 
3    the
Court of Claims entered against the State relating to 
4    any public
liability self-insurance claim shall act as a 
5    release against any State
employee involved in the 
6    occurrence.

7        (12) Administer a plan the purpose of which is to make 
8    payments
on final
settlements or final judgments in 
9    accordance with the State Employee
Indemnification Act.  
10    The plan shall be funded through appropriations from the

11    General Revenue Fund specifically designated for that 
12    purpose, except that
indemnification expenses for 
13    employees of the Department of Transportation,
the 
14    Illinois State Police, and the Secretary of State
shall be 
15    paid
from the Road
Fund.  The term "employee" as used in 
16    this subdivision (12) has the same
meaning as under 
17    subsection (b) of Section 1 of the State Employee

18    Indemnification Act.  Subject to sufficient appropriation, 
19    the Director shall approve payment of any claim, without 
20    regard to fiscal year limitations, presented to
the 
21    Director
that is supported by a final settlement or final 
22    judgment when the Attorney
General and the chief officer of 
23    the public body against whose employee the
claim or cause 
24    of action is asserted certify to the Director that
the 
25    claim is in
accordance with the State Employee 
26    Indemnification Act and that they
approve
of the payment.  
 
 
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1    In no event shall an amount in excess of $150,000 be paid 
2    from
this plan to or for the benefit of any claimant.

3        (13) Administer a plan the purpose of which is to make 
4    payments
on final
settlements or final judgments for 
5    employee wage claims in situations where
there was an 
6    appropriation relevant to the wage claim, the fiscal year

7    and lapse period have expired, and sufficient funds were 
8    available
to
pay the claim.  The plan shall be funded 
9    through
appropriations from the General Revenue Fund 
10    specifically designated for
that purpose.

11        Subject to sufficient appropriation, the Director is 
12    authorized to pay any wage claim presented to the
Director

13    that is supported by a final settlement or final judgment 
14    when the chief
officer of the State agency employing the 
15    claimant certifies to the
Director that
the claim is a 
16    valid wage claim and that the fiscal year and lapse period

17    have expired.  Payment for claims that are properly 
18    submitted and certified
as valid by the Director
shall 
19    include interest accrued at the rate of 7% per annum from 
20    the
forty-fifth day after the claims are received by the 
21    Department or 45 days from the date on which the amount of 
22    payment
is agreed upon, whichever is later, until the date 
23    the claims are submitted
to the Comptroller for payment. 
24    When the Attorney General has filed an
appearance in any 
25    proceeding concerning a wage claim settlement or
judgment, 
26    the Attorney General shall certify to the Director that the 
 
 
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1    wage claim is valid before any payment is
made.  In no event 
2    shall an amount in excess of $150,000 be paid from this

3    plan to or for the benefit of any claimant.

4        Nothing in Public Act 84-961 shall be construed to 
5    affect in any manner the jurisdiction of the
Court of 
6    Claims concerning wage claims made against the State of 
7    Illinois.

8        (14) Prepare and, in the discretion of the Director, 
9    implement a program for
self-insurance for official

10    fidelity and surety bonds for officers and employees as 
11    authorized by the
Official Bond Act.

12        (15) By April 1, 2011, recommend a plan to be 
13    administered by the General Assembly providing for the 
14    purchase of insurance or for self-insurance or for a 
15    combination of purchased insurance and self-insurance 
16    covering all foreseeable public liability and property 
17    exposures (including fire and casualty) of the General 
18    Assembly, its legislative district offices, and its 
19    members and employees acting within the scope of their 
20    service or employment. The plan shall be reduced to writing 
21    and filed with the Clerk of the House and the Secretary of 
22    the Senate. At a minimum, the plan shall include:
23            (A) specific reasons as to why the plan is the most 
24        economical and practical for the General Assembly;
25            (B) if the Department recommends that insurance be 
26        purchased,  a listing of responsible private entities 
 
 
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1        from which the General Assembly may procure such 
2        services;
3            (C) if the Department recommends that a system of 
4        self-insurance be established, specific procedures for 
5        the handling and settlement of claims;
6            (D) if the Department recommends that a system of 
7        self-insurance be established, an opinion as to 
8        whether additional appropriations in Fiscal Year 2011 
9        or any fiscal year thereafter are necessary to 
10        implement the system; and
11            (E) specific procedures for the leasing of 
12        legislative district office space, including, without 
13        limitation, insurance obligations to be imposed upon 
14        lessors and standard language to be incorporated into 
15        lease agreements memorializing such obligations. 
16    For purposes of this subdivision (15), "employee" means any 
17    person employed full-time, part-time, or pursuant to a 
18    contract. 
19(Source: P.A. 96-928, eff. 6-15-10.)

 
 
20    Section 99. Effective date. This Act takes effect upon 
21becoming law.