Rep. Barbara Flynn Currie
Filed: 11/30/2010
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1 | AMENDMENT TO HOUSE BILL 1365
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2 | AMENDMENT NO. ______. Amend House Bill 1365, AS AMENDED, by | ||||||
3 | replacing everything after the enacting clause with the | ||||||
4 | following:
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5 | "Section 5. The Department of Central Management Services | ||||||
6 | Law of the
Civil Administrative Code of Illinois is amended by | ||||||
7 | changing Section 405-105 as follows:
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8 | (20 ILCS 405/405-105) (was 20 ILCS 405/64.1)
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9 | Sec. 405-105. Fidelity, surety, property, and casualty | ||||||
10 | insurance. The Department
shall establish and implement a | ||||||
11 | program to coordinate
the handling of all fidelity, surety, | ||||||
12 | property, and casualty insurance
exposures of the State and the | ||||||
13 | departments, divisions, agencies,
branches,
and universities | ||||||
14 | of the State. In performing this responsibility, the
Department | ||||||
15 | shall have the power and duty to do the following:
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16 | (1) Develop and maintain loss and exposure data on all |
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1 | State
property.
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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.
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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.
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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.
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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.
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19 | (6) Implement recommendations of the State Property
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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.
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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
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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
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14 | excess of the dollar amounts that the Department shall
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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).
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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.
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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
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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.
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21 | The Director is authorized to
promulgate | ||||||
22 | administrative rules that may be necessary to
establish and
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23 | administer the plan.
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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.
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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.
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5 | (9) Establish, through the Director, charges for risk
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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
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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.
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13 | The Department shall charge the
employing State agency | ||||||
14 | or university for workers' compensation payments for
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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.
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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).
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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.
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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
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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.
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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
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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
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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.
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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.
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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
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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
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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.
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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
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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.
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19 | Subject to sufficient appropriation, the Director is | ||||||
20 | authorized to pay any wage claim presented to the
Director
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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
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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
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11 | plan to or for the benefit of any claimant.
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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.
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16 | (14) Prepare and, in the discretion of the Director, | ||||||
17 | implement a program for
self-insurance for official
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18 | fidelity and surety bonds for officers and employees as | ||||||
19 | authorized by the
Official Bond Act.
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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.)
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2 | Section 99. Effective date. This Act takes effect upon | ||||||
3 | becoming law.".
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