Rep. Barbara Flynn Currie
Filed: 11/30/2010
 
 

 

 

 
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1
AMENDMENT TO HOUSE BILL 1365




2    AMENDMENT NO. ______. Amend House Bill 1365, AS AMENDED, by 
3replacing everything after the enacting clause with the 
4following:


 
 
5    "Section 5. The Department of Central Management Services 
6Law of the
Civil Administrative Code of Illinois is amended  by 
7changing Section 405-105 as follows:
 



8    (20 ILCS 405/405-105)  (was 20 ILCS 405/64.1)



9    Sec. 405-105. Fidelity, surety, property, and casualty 
10insurance. The Department
shall establish and implement a 
11program to coordinate
the handling of all fidelity, surety, 
12property, and casualty insurance
exposures of the State and the 
13departments, divisions, agencies,
branches,
and universities 
14of the State.  In performing this responsibility, the
Department 
15shall have the power and duty to do the following:

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

2        (2) Study the feasibility of establishing a 
3    self-insurance plan
for
State property and prepare 
4    estimates of the costs of reinsurance for
risks beyond the 
5    realistic limits of the self-insurance.

6        (3) Prepare a plan for centralizing the purchase of 
7    property and
casualty insurance on State property under a 
8    master policy or policies
and purchase the insurance 
9    contracted for as provided in the
Illinois Purchasing Act.

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

15        (5) Investigate procedures for inclusion of school 
16    districts,
public community
college districts, and other 
17    units of local government in programs for
the centralized 
18    purchase of insurance.

19        (6) Implement recommendations of the State Property

20    Insurance
Study Commission that the Department finds 
21    necessary or desirable in
the
performance of its powers and 
22    duties under this Section to achieve
efficient and 
23    comprehensive risk management.

24        (7) Prepare, and, in the discretion of the Director, 
25    implement, and, by April 1, 2011, reduce to writing and 
26    make available on its website a  plan providing for the 
 
 
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1    purchase of public
liability insurance or for 
2    self-insurance for public liability or for a
combination of 
3    purchased  insurance and self-insurance for public

4    liability (i) covering the State and drivers of motor 
5    vehicles
owned,
leased, or controlled by the State of 
6    Illinois pursuant to the provisions
and limitations 
7    contained in the Illinois Vehicle Code, (ii)
covering
other 
8    public liability exposures of the State and its employees 
9    within
the scope of their employment, and (iii) covering 
10    drivers of motor
vehicles not owned, leased, or controlled 
11    by the State but used by a
State employee on State 
12    business, in excess of liability covered by an
insurance 
13    policy obtained by the owner of the motor vehicle or in

14    excess of the dollar amounts that the Department shall

15    determine to be
reasonable.  Any contract of insurance let 
16    under this Law shall be
by
bid in accordance with the 
17    procedure set forth in the Illinois
Purchasing Act.  Any 
18    provisions for self-insurance shall conform to
subdivision 
19    (11).

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

10        Subsequent to payment of a claim on behalf of an 
11    employee pursuant to this
Section and after reasonable 
12    advance written notice to the employee, the
Director may 
13    exclude the employee from future coverage or limit the

14    coverage under the plan if (i) the Director determines that 
15    the
claim
resulted from an incident in which the employee 
16    was grossly negligent or
had engaged in willful and wanton 
17    misconduct or (ii) the
Director
determines that the 
18    employee is no longer an acceptable risk based on a
review 
19    of prior accidents in which the employee was at fault and 
20    for which
payments were made pursuant to this Section.

21        The Director is authorized to
promulgate 
22    administrative rules that may be necessary to
establish and

23    administer the plan.

24        Appropriations from the Road Fund shall be used to pay 
25    auto liability claims
and related expenses involving 
26    employees of the Department of Transportation,
the 
 
 
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1    Illinois State Police, and the Secretary of State.

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

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

6    management
services
rendered to State agencies by the 
7    Department.
The State agencies so charged shall reimburse 
8    the Department by vouchers drawn
against their respective

9    appropriations.  The reimbursement shall be determined by 
10    the Director as
amounts sufficient to reimburse the 
11    Department
for expenditures incurred in rendering the 
12    service.

13        The Department shall charge the
employing State agency 
14    or university for workers' compensation payments for

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

 
 
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1    examination.  The amount of all reimbursements
shall be 
2    deposited into the Workers' Compensation Revolving Fund 
3    which is
hereby created as a revolving fund in the State 
4    treasury.  In addition to any other purpose authorized by 
5    law, moneys in the Fund
shall be used, subject to 
6    appropriation, to pay these or other temporary
total 
7    disability claims of employees of State agencies and 
8    universities.

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

14        (10) Establish rules, procedures, and forms to be used 
15    by
State agencies
in the administration and payment of 
16    workers' compensation claims.
The Department shall 
17    initially evaluate and determine the compensability of
any 
18    injury that is
the subject of a workers' compensation claim 
19    and provide for the
administration and payment of such a 
20    claim for all State agencies.  The
Director may delegate to 
21    any agency with the agreement of the agency head
the 
22    responsibility for evaluation, administration, and payment 
23    of that
agency's claims.

24        (11) Any plan for public liability self-insurance 
25    implemented
under this
Section shall provide that (i) the 
26    Department
shall attempt to settle and may settle any 
 
 
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1    public liability claim filed
against the State of Illinois 
2    or any public liability claim filed
against a State 
3    employee on the basis of an occurrence in the course of
the 
4    employee's State employment; (ii) any settlement of
such a 
5    claim is not subject to fiscal year limitations and must be

6    approved by the Director and, in cases of
settlements 
7    exceeding $100,000, by the Governor; and (iii) a
settlement 
8    of
any public liability claim against the State or a State 
9    employee shall
require an unqualified release of any right 
10    of action against the State
and the employee for acts 
11    within the scope of the employee's employment
giving rise 
12    to the claim.

13        Whenever and to the extent that a State
employee 
14    operates a  motor vehicle or engages in other activity 
15    covered
by self-insurance under this Section, the State of 
16    Illinois shall
defend, indemnify, and hold harmless the 
17    employee against any claim in
tort filed against the 
18    employee for acts or omissions within the scope
of the 
19    employee's employment in any proper judicial forum and not

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

24    $100,000 per person per occurrence for any other single 
25    occurrence,
or $500,000 for any single occurrence in 
26    connection with the provision of
medical care by a licensed 
 
 
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1    physician employee.

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

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

19    General Revenue Fund specifically designated for that 
20    purpose, except that
indemnification expenses for 
21    employees of the Department of Transportation,
the 
22    Illinois State Police, and the Secretary of State
shall be 
23    paid
from the Road
Fund.  The term "employee" as used in 
24    this subdivision (12) has the same
meaning as under 
25    subsection (b) of Section 1 of the State Employee

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

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

15    and lapse period have expired, and sufficient funds were 
16    available
to
pay the claim.  The plan shall be funded 
17    through
appropriations from the General Revenue Fund 
18    specifically designated for
that purpose.

19        Subject to sufficient appropriation, the Director is 
20    authorized to pay any wage claim presented to the
Director

21    that is supported by a final settlement or final judgment 
22    when the chief
officer of the State agency employing the 
23    claimant certifies to the
Director that
the claim is a 
24    valid wage claim and that the fiscal year and lapse period

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

11    plan to or for the benefit of any claimant.

12        Nothing in Public Act 84-961 shall be construed to 
13    affect in any manner the jurisdiction of the
Court of 
14    Claims concerning wage claims made against the State of 
15    Illinois.

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

18    fidelity and surety bonds for officers and employees as 
19    authorized by the
Official Bond Act.

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

 
 
2    Section 99. Effective date. This Act takes effect upon 
3becoming law.".